REGULAR MEETING AGENDA
OF THE CITY OF DEL REY OAKS CITY COUNCIL
TUESDAY, FEBRUARY 24, 2026 AT 6:00 PM
Del Rey Oaks City Hall is inviting you to an IN-PERSON MEETING AT CITY HALL
PLEASE NOTE THIS WILL BE LIVE STREAMED FOR VIEWING ONLY
YOU WILL NOT BE ABLE TO MAKE PUBLIC COMMENTS ON ZOOM
Join Live Stream
http://bit.ly/4q8aLjm
1. ROLL CALL - Council
2. PLEDGE OF ALLEGIANCE
3. PUBLIC COMMENTS: General Public Comment must deal with matters subject to the jurisdiction of the City and the Council that are not on the Agenda. Anyone wishing to address the City Council on matters not appearing on the Agenda may do so now. The public may comment on any other matter listed on the Agenda at the time the matter is being considered. There will be a time limit of not more than three minutes for each speaker. No action will be taken on matters brought up under this item and all comments will be referred to staff.
4. PROCLAMATION:
A. Honoring Black History Month
B. Honoring Women's History Month
5. PRESENTATION:
A. Certificate of Recognition to Moose Lodge Members:
Estrellitah "Star" Hernandez - Seaside High School and Idil Aktan - Monterey High School B. Monterey One Water:
Informational Update on Capital Projects and Rate Study and Strategic Priorities Paul A. Sciuto, Executive Officer
1 6. CONSENT AGENDA:
A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Consider Approval of the January 27, 2026 City Council Minutes B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Financial Reports for January 2026
2. Police Department Response Report for January 2026
3. Fire Department Response Report for January 2026
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Consider Approval of a new contract with Monterey Bay Technologies for City IT Services
2. Approval of Resolution 2026-01 to Honor Robin McCrae of Community Human Services
7. OLD BUSINESS:
G. None
8. NEW BUSINESS:
A. Status of Development of City Owned Parcels (APN 031-191-026) on the Former Fort Ord B. Receive a Status Update on the Former Garden Center Building in Work Memorial Park C. Consider 1st Reading by Title Only of an Ordinance to Add Del Rey Oaks City Code Chapter
15.48, Section 140 to Prohibit Metal Detecting Activity on City Property That Was Part of the Former Fort Ord (Exempt from CEQA per Article 19, Section 15308, Class 8)
9. STAFF REPORTS:
A. Council Reports in Packet
10. CORRESPONDENCE:
A. Correspondence in Packet
2 11. NEXT MEETING DATE:
Tuesday March 24, 2026 at 6:00pm
12. ADJOURNMENT
Information distributed to the Council at the meeting becomes part of the public record. A copy of written material, pictures, etc. must be provided to the secretary for this purpose.
All enclosures and materials regarding these agenda items are available for public review at the Del Rey Oaks City Hall, 650 Canyon Del Rey Road, Del Rey Oaks. 3 PROCLAMATION
Honoring Black History Month
February 2026
WHEREAS, the city of Del Rey Oaksis committed to diversity, equity, inclusion and mutual respect as a fundamental aspect of a healthy, thriving community; and WHEREAS, In 1976, as part of the nation's bicentennial, Black History Month was formally adopted to honor and affirm the importance of African American History throughout our American experience, and serves to promote cultural enrichment, ethnic pride, and self-esteem; and
WHEREAS, During Black History Month, we celebrate the many achievements and contributions made by African Americans to our economic, cultural, spiritual and political development: and WHEREAS, Black History Month is a time for all Americansto remember the stories and teachings of those who helped build our nation, took a stance against prejudice to build lives of dignity and opportunity, advanced the cause of civil rights and strengthened families and communities; and WHEREAS, the Black community has been the target of discrimination and violence based on identity, which conflicts with our core values as a community; and WHEREAS, The observance of Black History Month calls our Nation's attention to the continued need to battle racism and look to the future to continue to improve society so that we live up to the ideals of freedom, equality and justice;
NOW, THEREFORE, I, Mayor Scott Donaldson, do hereby proclaim February 2026 as Black History Month. I urge all citizens to celebrate our diverse heritage and culture and continue our efforts to create a world that is more just, peaceful and prosperous for all.
IN WITNESS WHEREOF I have hereunto set my hand this 24th day of February, 2026.
Signed
Scott Donaldson, Mayor
4 Item A.
PROCLAMATION
The City of Del Rey Oaks City Council
Celebrating March 2026 Women’s History Month
WHEREAS, March is National Women’s History Month; and
WHEREAS, we recognize the invaluable contributions of women who have dedicated themselves to advocating for equity, diversity, and inclusion in all aspects of society; and WHEREAS women from diverse backgrounds have long been at the forefront of efforts to address systemic inequities and promote a more inclusive and just society; and WHEREAS the courageous advocacy of women for practical goals such as equity, diversity, and inclusion serves as a beacon of inspiration for all individuals and communities; and WHEREAS, in 2026, we honor the women who have tirelessly worked to dismantle barriers, challenge prejudices, and create opportunities for all individuals, regardless of their background and attacks against Diversity, Equity, and Inclusion programs and training in our institutions;
NOW, THEREFORE BE IT RESOLVED, that I, Mayor Scott Donaldson, do hereby proclaim March 2025 as Women's History Month in The City of Del Rey Oaks; and BE IT FURTHER RESOLVED THAT, we encourage our communities to celebrate the achievements of women who have championed equity, diversity, and inclusion, and reaffirm our commitment to advancing these principles in our society. Let us honor the women who have dedicated themselves to advocating for equity, diversity, and inclusion, and let us continue to work together to build a more just, equitable, and inclusive world.
Signed this 24
th day of February 2026
________________________________
Scott Donaldson, Mayor
5 Item B.
CERTIFICATE
O F R E C O G N I T I O N
This certificate is given to :
In recognition of being chosen to attend the 2026 Moose International Youth Awareness Scholarship Program representing the Monterey Moose Lodge. As one of only 5 students in California to attend, your hard work and dedication are commendable!
Estrellitah “Star” Hernandez
Seaside High School
Scott Donaldson Mayor of Del Rey Oaks
6 Item A.
CERTIFICATE
O F R E C O G N I T I O N
This certificate is given to :
In recognition of being chosen to attend the 2026 Moose International Youth Awareness Scholarship Program representing the Monterey Moose Lodge. As one of only 5 students in California to attend, your hard work and dedication are commendable!
Idil Aktan
Monterey High School
Scott Donaldson Mayor of Del Rey Oaks
7 Item A.
1 Capital Projects, Rate Study, and Strategic Priorities Paul A. Sciuto, Executive Officer
INFORMATIONAL
UPDATE:
8 Item B.
2 OUR ROLE
MONTEREY ONE WATER
Water & Energy
Industry Policy & Position
Technology
Employer of Choice
Community Mission
Working together for
safe, resilient water
solutions that benefit
our community and
environment
9 Item B.
3 SERVICES & FACILITIES
MONTEREY ONE WATER
WASTEWATER
CONVEYANCE
WASTEWATER
TREATMENT
RESOURCE
RECOVERY
Recycled Water
Agriculture
Recycled Water
Potable + Landscape
Energy
Wastewater Solids
+ Food Waste
10 Item B.
4 SERVICES & FACILITIES
MONTEREY ONE WATER
WASTEWATER
CONVEYANCE
WASTEWATER
TREATMENT
RESOURCE
RECOVERY
Recycled Water
Agriculture
Recycled Water
Potable + Landscape
Energy
Wastewater Solids
+ Food Waste
35 Years Old
11 Item B.
5 PUBLIC WORKS IN ACTION
MONTEREY ONE WATER
PUMP STATION
UPGRADE
TREATMENT PLANT
MAINTENANCE
REPLACEMENT &
EFFICIENCIES
Example:
Rebuild of two coastal
pump stations (new pumps,
electrical, instrumentation)
Example:
Cleaning and inspection of
treatment steps
Example:
New instrumentation
for power generation
12 Item B.
6 WHAT’S IN THE WORKS
MONTEREY ONE WATER
Current Priorities
Electrical Reliability
Biosolids Management
Treatment Master Plan
13 Item B.
7 CUSTOMER GROUPS
MONTEREY ONE WATER
WASTEWATER
Funding “Bank Accounts”
RECYCLED WATER
RECYCLED WATER
ENERGY
Municipal Non-Potable
Potable Onsite
14 Item B.
8 SUPPORTING OUR PRIORITIES
MONTEREY ONE WATER
Wastewater Rate Study
RATE
MODEL
Projects revenue needs based
on O&M and capital needs
RATE
STRUCTURE
Rate calculation/formula
E.g., flat, consumption,
fixture count
RATE
SCHEDULE
Monthly rate(s)
over set period
15 Item B.
9 SUPPORTING OUR PRIORITIES
MONTEREY ONE WATER
Wastewater Rate Study
RATE
MODEL
Projects revenue needs based
on O&M and capital needs
RATE
STRUCTURE
Rate calculation/formula
E.g., flat, consumption,
fixture count
RATE
SCHEDULE
Monthly rate(s)
over set period
WHAT DRIVES RATES?
Reliable Service • Rising Costs (chemicals/power) • Capital Projects 16 Item B.
10 PUBLIC RATE SETTING
MONTEREY ONE WATER
MARCH 2026
Board of Directors Meeting
Public comment on Rate Study
APRIL 2026
Notice of proposed rate change
mailed to all parcel owners
JUNE 2026
Board of Directors Meeting
Public Hearing
Written public protest period
(parcel owners)
17 Item B.
11 BIG FUTURE ... WE’RE READY
MONTEREY ONE WATER
Community Driven • Proven Record • Experienced Team
18 Item B.
12 PURE WATER MONTEREY
MONTEREY ONE WATER
EXPANSION
PROJECT
Expanded Facility Size:
7.6 million gallons per day
US EPA WIFIA Loan:
$21 million
Grant Funding:
$42 million
19 Item B.
13 Paul A. Sciuto
Executive Officer
[email protected]
THANK YOU
20 Item B.
City of Del Rey Oaks
City Hall
650 Canyon Del Rey Blvd
Del Rey Oaks, CA 93940
Action Minutes
Tuesday, January 27, 2026
6:00 PM
City Council – Regular Meeting
Del Rey Oaks City Council
Scott Donaldson – Mayor
Jeremy Hallock – Vice Mayor
John Uy – Councilmember
Kim Shirley – Councilmember
Mike Burger – Councilmember
21 Item 1.
6:00 PM – Called to Order:
The meeting was called to order by Vice Mayor Hallock
Roll Call: Present: Vice Mayor Hallock, Councilmember Shirley, and Councilmember Burger
Absent: Councilmember Uy and Mayor Donaldson
Also Present: City Manager Guertin, City Attorney Lorca, City Clerk Minami, Administrative Services Technician Matthews
Pledge of Allegiance:
Led by Vice Mayor Hallock
Public Comment:
Helen Birdsong: Wants a letter from the city to be sent out to all Oaks residents regarding the nosmoking ordinance.
Chris Fuggit: Wants to know how long the FORTAG project will take, especially on Carlton. Asks the city to reconsider closing Carlton onto Seaside to reduce traffic in front of his house.
PRESENTATION:
Chief Bourquin to give Annual Update on 2025 Police Statistics:
Monthly breakdown for the City - January to June
January: 149 calls for service. 26 reports. 4 arrests. 3 in-field cite and releases February: 155 calls for service. 24 reports. 4 arrests. 1 in-field cite and releases March: 204 calls for service. 15 reports. 2 arrests. 1 in-field cite and releases April: 195 calls for service. 22 reports. 2 arrests. 6 in-field cite and releases May: 199 calls for service. 17 reports. 3 arrests. 1 in-field cite and release June: 139 calls for service. 15 reports. 4 arrests. 3 in-field cite and releases Monthly breakdown for the City – July to December
July: 150 calls for service. 18 reports. 0 arrests. 2 in-field cite and releases August: 168 calls for service. 23 reports. 2 arrests. 1 in-field cite and release September: 160 calls for service. 20 reports. 0 arrests. 3 in-field cite and releases October: 181 calls for service. 15 reports. 4 arrests. 3 in-field cite and releases November: 138 calls for service. 22 reports. 3 arrests. 0 in-field cite and releases December: 148 calls for service. 34 reports. 3 arrests. 3 in-field cite and releases Monthly breakdown for the Airport – January to June
January: 70 calls for service. 4 reports
February: 90 calls for service. 10 reports
March: 86 calls for service. 5 reports
April: 68 calls for service. 6 reports
May: 82 calls for service. 5 reports. 1 arrest
June: 54 calls for service. 6 reports
22 Item 1.
Monthly breakdown for the Airport – July to December
July: 58 calls for service. 3 reports
August: 89 calls for service. 12 reports
September: 70 calls for service. 5 reports
October: 70 calls for service. 10 reports. 1 in-field cite and release November: 72 calls for service. 8 reports. 1 in-field cite and release December: 83 calls for service. 5 reports
Arrests by violations
Stolen Vehicles: 2
Probation violations: 14
Unlicensed drivers: 19
Conspiracy: 4
Petty theft with priors (666.1 PC): 9
Grand theft: 4
2025 versus 2024 Statistics
2025 2024
Aggravated Assault: 3 Aggravated Assault: 3
Simple Assault: 7 Simple Assault: 11
Robbery: 1 Robbery: 0
Burglary/Breaking and Entering: 1 Burglary/Breaking and Entering: 2 Theft Offenses: 18 Theft Offenses: 36
Motor Vehicle theft: 2 Motor Vehicle theft: 1
Partnership with DEA
July 2025: Task Force members made an undercover purchase of 500 counterfeit M30 pills that were found to contain deadly Fentanyl. The subject, a local resident, was arrested on Federal drug trafficking charges.
July 2025: Task Force members made multiple undercover purchases of cocaine from a local resident. An arrest and search warrant was served which led to the arrest and seizure of over $80,000 of cash.
August 2025: Task Force members received information of a vehicle traveling with narcotics. A traffic stop was coordinated that lead to the arrest of the driver and lead to discovery of a pound of methamphetamine and unregistered handgun.
Chief Bourquin: Reviewed some of the 2025 Case Highlights and shared pictures and videos of the public details of some cases.
Questions and Comments:
City Attorney Lorca: How do they obtain the video from a Tesla? Chief Bourquin: Through the owner of the vehicle.
City Manager Guertin: As of December, the PD had a 70% closure rate, that’s great! Chief Bourquin: Because of good people, hard work, and technology.
City Manager Guertin: This PD is the poster child for doing the right thing, according to our joint powers group for insurance. First in the area to be trained and to become trainers, in the “ABLE” (Active Bystandership for Law Enforcement) program. Helps with liability coverage.
Vice Mayor Hallock: Thanks them for excellence in duty. 23 Item 1.
Councilmember Shirley: Asks about less dumping. How about speeding on Portola? A discussion between the Council, the public and the Chief follows regarding perceived speeding cars on Portola, Work, and once FORTAG finishes, Carlton Drive. The implications of doing a traffic speed survey. There is simply no easy answer. Both Del Rey Oaks residents and nonresidents can be speeding on the streets of Del Rey Oaks and running through stop signs. The desire for speed bumps and the implications of having speed bumps. Again, the desire to have Carlton closed and the issues that came up when the city closed it years ago.
Chief Bourquin: Explains what the Vision Zero group does in the county.
Councilmember Shirley: Asks the Chief what the biggest challenge is in the police department? Chief Bourquin: Lack of administrative staff, like all of the other police departments. Everyone here pitches in on every case.
CONSENT AGENDA:
A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. December 16, 2025 City Council Meeting Minutes
B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Fire Department Response Report, December 2025
2. Police Activity Report, December 2025
3. Financial Reports, December 2025
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Consider Adoption of the Revision of the 2025-26 Salary Schedule
2. Consider approval of the appointment of Councilmember Mike Burger as Vice Mayor starting on February 1, 2026 for the rest of 2026 calendar year.
PUBLIC COMMENT:
None
A motion was made by Councilmember Shirley, seconded by Councilmember Burger, to approve the Consent Agenda as presented.
Motion passed unanimously 3-0
24 Item 1.
OLD BUSINESS: None
NEW BUSINESS:
Consider Approval of the FY 2024-25 Annual City Audit
Paul Pham from Shevon and Associates Auditing firm: He reviewed the fiscal year 2024 annual city audit, which showed a strong financial position with a net position increase of $100,000. The audit results included an unmodified opinion on financial statements and no significant concerns, though there was one finding related to data compliance, which was addressed and won't be repeated. Thanks to Karen and her team, and to Beth and her team, for a job well done.
City Manager Guertin: The one finding in the audit was not anyone's fault. We all wear a lot of hats, and the team just digs in and does the tasks at hand.
Councilmember Burger: Thanks everyone.
Councilmember Shirley: Wants to look at spending some of the unappropriated fund balance.
PUBLIC COMMENT:
None
A motion was made by Councilmember Burger and seconded by Councilmember Shirley to approve the FY 2024-25 Annual City Audit, as presented.
Motion passed unanimously 3-0
STAFF REPORTS: In the packet with the correspondence
ADJOURNMENT to Closed Session: 7:05 pm
Closed Session: As permitted by Government Code Section 54956 et. seq. the Council may adjourn to a Closed Session to consider specific matters dealing with certain litigation, personnel, or labor/real property negotiations.
A. Public Comment on Closed Session Items: Anyone wishing to address the City Council on an item to be discussed in closed session may do so now. There will be a time limit of not more than three minutes for each speaker. No action will be taken on matters brought up under this public comment period.
B. Closed Session Items:
1. Conference with Legal Counsel – Existing Litigation (Gov’t Code § 54956.9) Brian Perez v. City of Del Rey Oaks United States District Court Northern District of California Case No: 5:25-cv-07592
25 Item 1.
PUBLIC COMMENT:
None
The meeting came back to open session:
City Attorney Lorca reported that the item was considered with Special Council, direction was given, and no reportable action was taken.
NEXT MEETING DATE: Tuesday, February 24, 2026 at 6:00 pm ADJOURNMENT: 7:55 pm
Attest:___________________________________________ Date:--------------------------------------- 26 Item 1.
Staff Report
DATE: February 24, 2026
TO: Honorable Mayor and Members of the City Council
FROM: John Guertin, City Manager
SUBJECT: Receive January 2026 Financial Reports
CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378 as it is an administrative activity of the City that will not result in direct or indirect physical changes in the environment.
Consideration
Review of January 2026 Financial Reports.
Summary & Discussion
Attached are the January 2026 financial reports.
• January 2026 Cash and Investments – The report shows where the City’s funds are invested.
The City continues to have a healthy cash balance of $13,199,381, much of which is restricted for specific purposes.
• January 2026 Check Register –This is a listing of all the payments issued during the month.
The total checks issued are $419,717.
• January 2026 General Fund Summary – This is a one-page summary of the General Fund summarized as follows:
At 58% of the year (7 months) the revenues are at 62%. Expenditure is 61% of the budget.
For the month of January 2026, the General Fund shows a deficit net revenue over expenditure of $282,807 due to the final payment made to MBSIA and year-to-date surplus of $6,407.
27 Item 1.
• January 2026 Statement of Revenues and Expenditures – shows fiscal year-to-date actuals in comparison with FY 2026 Budget.
• Encumbrance Summary Report represents the purchase orders with a total outstanding balance of $937,754 as of January 31, 2026.
Fiscal Impacts
None. This is informational only.
Recommendation
Staff recommends approval of the reports.
ATTACHMENTS:
• Cash and Investments 2025-12
• Check/Voucher Register 2025-12
• General Fund Summary 2025-12
• Statement of Revenues & Expenditures 2025-12
• Encumbrance Summary 2025-12
Respectfully Submitted,
______________________________
John Guertin, City Manager
28 Item 1.
Accounts
Unrestricted
General Checking $ 1,220,422
Cash with TDS-Parking 500
Local Agency Investment Fund
Reserve for Economic Uncertainties 1,652,182 3.931%
Unappropriated Funds 1,595,574 3.931%
Total Unrestricted $ 4,468,678
Restricted
PARS-115 Trust Fund $ 395,659
Dev - Monterey Peninsula Partner 9,063
Fidelity Title Escrow Acct - GJM/SBR Intersection 1,056,168 Fidelity Title Escrow Acct - SBR Construction 7,269,813 Total Restricted $ 8,730,703
Total Cash and Investments $ 13,199,381
City of Del Rey Oaks
Summary of Cash & Investments
As of January 31, 2026
29 Item 1.
Check
Number Payee Transaction Description
Check
Amount
23358 AFLAC Premium 2025-12 $ 1,216.16 1/8/2026
23359 AMERICAN LOCK & KEY PW DND Keys 13.93 1/8/2026
23360 AMERICAN SUPPLY COMPANY Supplies 226.31 1/8/2026
23361 AT&T Airport Internet Service Period 12/25/25 to 01/24/26 74.90 1/8/2026 AT&T Internet City Hall & PD Service Period 12-13-25 to 01-12- 25 203.30 1/8/2026
23362 AT&T CAL NET 2 Outside PD Phone Service Periods 11-19-25 to12-18-25 31.97 1/8/2026 23363 AT&T MOBIILITY Aircard PW Service Period11/3/25 to 12/2/25 40.24 1/8/2026 AT&T MOBIILITY Internet Service Period 10-19 to 12-18-25 139.01 1/8/2026 AT&T MOBIILITY Telephone Service Period 12-03-25 to 1-02-26 44.90 1/8/2026 23364 Avenue Insights & Analystics, LLC ADM-0039 Tax & License Administration Short Term Rental SEt Up Fee 8/1/2025 - 7/31/2026
15,000.00 1/8/2026
23365 BLUE360 MEDIA California Vehicle Code Book 2026 222.11 1/8/2026 23366 CALIFORNIA-AMERICAN WATER Service Period 11/20/2025 - 12/18/2025 725.04 1/8/2026 CALIFORNIA-AMERICAN WATER Service Period 11/20/2025 to 12/18/2025 418.82 1/8/2026 23367 CORONADO DEISEL MOBILE SERVICES, INC. Dodge Durango #94 PM Lub/Safety Inspections & Front and Rear Breaks
1,937.38 1/8/2026
23368 David Mora Reimbursment - Retiring City Manager Awards 408.60 1/8/2026 23369 Elizabeth Aliotti Old Town Hall - Permit Refund 175.00 1/8/2026 23370 Granite Rock Company Supplies 123.80 1/8/2026
23371 HOME DEPOT CRC Supplies 112.08 1/8/2026
23372 I.M.P.A.C.GOVERNM'T SER 5564-9924 2025-12 3,709.14 1/8/2026 23373 JAMES DE CHALK Janitorial Services - City Hall and Park Restrooms 2025-12 1,400.00 1/8/2026 23374 MONTEREY BAY TECHNOLOGIES, INC. FY25/26 IT Services Retainer 1,800.00 1/8/2026 23375 MONTEREY COUNTY SHERIFF CLETS -7/1/2025 to 6/30/2026 121.83 1/8/2026 MONTEREY COUNTY SHERIFF Crminal Justice Infomration System July 1 - Sept 30, 2025 2,432.51 1/8/2026 23376 PG&E Service Period 11/20/2025 to 12/21/2025 3,033.93 1/8/2026 23377 PORAC HEADQUARTERS PD Legal Defense Fund 2026-01 990.90 1/8/2026 23378 PURE WATER Supplies 2025-12 96.00 1/8/2026
23379 REGIONAL GOVERNMENT SERIVCES FY25/26 Accounting Services 12,406.52 1/8/2026 23380 RingCentral, Inc. Service Period 12/29/2025 to 01/28/2026 331.39 1/8/2026 23381 SOUTH BAY REGIONAL PUBLIC SAFETY
TRAINING
Field Training Officer Update 11/3-11/5/25 337.00 1/8/2026 23382 US Bank Equipment Finance Konika Minolta Copier Lease 2025-12 397.84 1/8/2026 23383 Verizon Service Period 11/24/25-12/23/25 118.03 1/8/2026 23384 VSP Vision Perium 2026-01 234.63 1/8/2026
23385 WOODY'S AT THE AIRPORT DRO Holiday Dinner 3,399.00 1/8/2026 23386 FLAHERTY'S City Manager Retirement Dinner 12/5/25 710.13 1/12/2026 23387 G.P.S. SOLUTIONS FY25/26 Plan Checking & Building Inspection Services - 2025-12
3,923.00 1/12/2026
23388 ANGEL ARMOR Body Armor Vests and Accessories, I Garcia and J Andoy 3,281.38 1/22/2026 23389 AT&T MOBIILITY Aircard PW Service Period12/3/25 to 1/2/26 40.74 1/22/2026 AT&T MOBIILITY Telephone Service Period 01-03-26 to 02-02-26 312.36 1/22/2026 AT&T MOBIILITY Telephone Service Period 01-03-26 to 2-02-26 45.49 1/22/2026 23390 CALIFORNIA BUILDING STANDARDS
COMMISSION
Building Permit Fee QTR 2 FY 2025/2026 30.37 1/22/2026
23391 CHAVAN AND ASSOCIATES, LLP City Audit Services 24-25 7,265.00 1/22/2026 23392 CoPower Dental Premiums 2026-02 2,754.08 1/22/2026 City of Del Rey Oaks
Check/Voucher Register
From 12/01/2025 Through 12/31/2025
30 Item 1.
Check
Number Payee Transaction Description
Check
Amount
City of Del Rey Oaks
Check/Voucher Register
From 12/01/2025 Through 12/31/2025
23393 COASTAL PAVING & EXCAVATING, INC. Emergency work on Rosita Rd: Put Plastic over hillside 5,770.74 1/22/2026 23394 COLANTUONO, HIGHSMITH & WHATLEY, PC Legal - Advice Re: Ballot Measure 38.50 1/22/2026 23395 CORELOGIC SOLUTIONS, LLC. Software 2025-12 163.91 1/22/2026 23396 DEPT OF CONSERVATION SMIP Fees 10/01/25 to 12/31/2025 68.72 1/22/2026 23397 DIVISION OF THE STATE ARCHITECT DSA 786 Fees 10/01 - 12/31/2025 8.40 1/22/2026 23398 FENTON & KELLER City Attorney General Services 3,413.25 1/22/2026 FENTON & KELLER Employment Matters 267.80 1/22/2026
23399 MONTEREY BAY AREA INSURANCE FUND FY 25/26 Remaining Premium WC, Liability Insurance Balance
258,725.00 1/22/2026
23400 MONTEREY COUNTY ANIMAL Acct# 4000-8601-8072-5750 2ND QTR FY 2025-26 275.00 1/22/2026 23401 NEILL ENGINEERS CORP City Hall Parking Lot/Embankment Repair FY 25-26 6,396.00 1/22/2026 23402 ODP Business Solutions, LLC Supplies 127.91 1/22/2026 23403 PG&E Service Period 12/12/2025 - 01/12/2026 88.53 1/22/2026 23404 PRECISION ALARMS AND AUTOMATION, INC. Alarm Inspections & Monitoring 2026-01 170.00 1/22/2026 23405 SAFEGUARD BUSINESS SYSTEMS, INC. Banking Supplies 352.83 1/22/2026 23406 SMITH & ENRIGHT LANDSCAPING, INC. FY25-26 Weekly Landscape Maintenance 1,540.00 1/22/2026 23407 Stericycle, Inc. Shred Service 2025-12 198.06 1/22/2026 23408 TERMINIX, INC. Pest Control 2025-12 115.24 1/22/2026 23409 US Bank Equipment Finance Konika Minolta Copier Lease 2025-12 135.64 1/22/2026 ACH 2025-01-08 7-Eleven Mastercard PD & PW Fuel Charges 2025-12 1,957.03 1/8/2026 ACH 2025-01-09 P.E.R.S.-HEALTH CalPERS 1800 Health 2026-01 41,949.27 1/8/2026 ACH 2025-01-16 PERS CalPERS 1900 457 (01/02) Contribution 01/15/2026 3,200.00 1/16/2026 PERS PERS 3100 Contribution Retirement 12/27-01/09/26 -Plan 1364
650.32 1/16/2026
PERS PERS 3100 Contribution Retirement 12/27-01/09/26 -Plan 25623
4,401.85 1/16/2026
PERS PERS 3100 Contribution Retirement 12/27/25-01/09/26 - Plan 26934
1,800.27 1/16/2026
PERS PERS 3100 Contribution Retirment 12/27-01/09/26 -Plan 1365
3,782.07 1/16/2026
ACH 2026-01-02 PERS PERS 3100 Contribution Retirement PP 12/13/25 - 12/26/25 - Plan 1364
637.08 1/2/2026
PERS PERS 3100 Contribution Retirement PP 12/13/25 -
12/26/25 - Plan 1365
3,867.96 1/2/2026
PERS PERS 3100 Contribution Retirement PP 12/13/25 -
12/26/25 - Plan 25623
4,212.15 1/2/2026
PERS PERS 3100 Contribution Retirement PP 12/13/25 -
12/26/25 - Plan 26934
2,540.68 1/2/2026
ACH 2026-01-16 ADP ADP fees 785.55 1/16/2026
ACH 2026-01-20 ADP ADP FED-FUTA 76.80 1/20/2026
ADP ADP Fees Fed-FUTA 1,715.78 1/20/2026
$ 419,717.16
31 Item 1.
FY 2026
Budget
January
2026
Actual
FY 2026
YTD Actual
Percent
Collected
/Spent
Revenues
Property Taxes 000 867,500.00 0.00 493,237.22 57%
Sales Tax 000 1,189,000.00 86,011.16 712,743.92 60%
Other Taxes 000 551,400.00 88,118.16 361,870.38 66%
Licenses and Permits 000 322,700.00 14,760.45 304,170.02 94% Fines and Forfeitures 000 25,100.00 1,181.26 13,411.72 53% Other Revenue 000 205,700.00 34,031.27 132,480.57 64%
Grants 000 247,500.00 11,053.84 188,299.01 76%
Airport Police Services 210 1,489,000.00 124,083.00 856,340.50 58% Current Services 000 193,300.00 5,603.51 98,173.83 51%
Total Revenues 5,091,200.00 364,842.65 3,160,727.17 62% Expenditures
Council 110 30,400.00 2,153.90 10,144.47 33%
City Clerk 111 648,200.00 90,868.73 437,406.75 67%
City Manager 120 338,400.00 64,444.76 230,679.95 68%
Finance 130 236,000.00 22,513.59 171,671.50 73%
Legal 150 89,300.00 3,451.75 24,793.32 28%
Planning & Building Reg 160 150,400.00 327.42 66,141.46 44% Government Buildings 180 20,200.00 544.98 4,571.90 23%
Non-Departmental 190 56,800.00 1,226.22 25,434.92 45%
Police 210 2,998,900.00 424,241.11 1,932,879.48 64%
Fire/Animal Control 220 243,300.00 0.00 60,928.25 25%
Public Works/Streets 311 256,800.00 35,266.17 157,809.22 61% Parks/Recreation 411 109,600.00 2,610.98 22,099.09 20%
Total Expenditures 5,178,300.00 647,649.61 3,144,560.31 61% Excess(Deficit) of Revenue Over
Expenditures
(87,100.00) (282,806.96) 16,166.86
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 01/01/2026 Through 01/31/2026
32 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
P/T-Secured 41110 599,800.00 0.00 338,949.67 56.51%
P/T-Unsecured 41120 31,200.00 0.00 30,865.67 98.92%
P/T-Prior Secured 41130 6,200.00 0.00 3,454.44 55.71%
Prior Unsecured 41140 100.00 0.00 0.00 0.00%
P/T-Unitary Tax 41150 12,500.00 0.00 7,454.70 59.63%
P/T-Supplemental Roll (SB813) 41160 12,400.00 0.00 7,078.58 57.08% Property Tax - VLF 41170 204,500.00 0.00 103,918.50 50.81% Prop Tax-Interest/Penalty 41180 800.00 0.00 1,515.66 189.45% Sales Tax 42210 409,000.00 29,566.48 235,781.10 57.64%
Sales Tax - 145 (Measure S-1%) 42220 520,000.00 37,627.98 318,328.55 61.21% Sales Tax -409 (Measure R 1/2%) 42221 260,000.00 18,816.70 158,634.27 61.01% Cannabis Tax 42222 100,000.00 13,285.46 53,738.98 53.73% Transient Occupancy Tax 42230 229,500.00 46,304.81 210,786.80 91.84% STR Annual Licenses Fee 42231 0.00 2,000.00 8,368.24 0.00% Property Transfer Tax 42250 8,700.00 330.00 3,437.23 39.50% Sewer Impact 42290 22,000.00 0.00 0.00 0.00%
Business Licenses 42310 225,000.00 1,228.00 232,137.23 103.17% HOUP (Home Occupational User Permit) 42311 0.00 480.00 2,400.00 0.00% Gas Franchises 42761 8,200.00 0.00 0.00 0.00%
Electric Franchises 42762 22,000.00 0.00 0.00 0.00%
Garbage Franchises 42763 110,000.00 28,197.89 83,367.48 75.78% Cable Tv Franchises 42764 26,000.00 0.00 10,539.89 40.53% Water Franchises 42765 25,000.00 0.00 0.00 0.00%
SB1186 Disability Access Fund 43311 1,000.00 44.00 593.00 59.30% SB1473 Environmental Assessment Fee 43312 100.00 9.00 85.35 85.35% Architectural Review (ARC) 43319 0.00 400.00 400.00 0.00% Building Permits 43320 59,000.00 5,727.46 40,317.84 68.33% Strong-Motion Instrumental Program (SMIP)
Fees
43322 200.00 24.85 233.88 116.94%
Cannabis Business Permit 43325 5,000.00 0.00 0.00 0.00% Plan Check Fees 43330 18,000.00 1,103.22 11,158.68 61.99% Encroachment/Street Opening Permits Fees 43340 8,000.00 2,100.00 2,700.00 33.75% Plumbing Permits 43350 3,400.00 371.92 1,009.92 29.70%
Electrical Permits 43360 3,000.00 255.00 2,167.88 72.26% Tree Removal Permits 43361 0.00 706.00 1,406.00 0.00%
AVAILABLE 43362 0.00 0.00 300.00 0.00%
Other Licenses/Permits 43390 1,000.00 0.00 0.00 0.00%
Fines & Forfeitures 45000 2,600.00 207.26 1,715.72 65.98% Vehicle Code Fines 45510 5,500.00 974.00 2,144.00 38.98% Parking and Admin Fines 45512 17,000.00 0.00 9,552.00 56.18% Interest Earned 46100 185,000.00 33,981.27 103,149.62 55.75% Interest Earned-PARS 46101 15,000.00 0.00 17,880.56 119.20% Rental Income - Garden Center 46815 18,000.00 0.00 15,000.00 83.33% Rental Income - Airport RV 46816 39,600.00 3,939.86 27,616.10 69.73% Rental Income - PW Bldg (CHC Enterprise) 46817 24,000.00 0.00 6,000.00 25.00% HOPTR 47130 1,200.00 0.00 324.51 27.04%
Vehicle License Collection 47140 2,500.00 0.00 2,414.14 96.56% COPS 47240 194,000.00 8,333.33 159,869.96 82.40%
SB1383 Organics Recycling 47243 14,000.00 1,250.00 3,750.00 26.78% Prop 172 47750 20,000.00 1,470.51 10,878.28 54.39%
Wellness Program 47760 7,500.00 0.00 10,772.04 143.62%
33 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Police Grants & Other Reimbursements 47780 5,000.00 0.00 2,503.23 50.06% POST Reimbursements 47781 7,000.00 0.00 525.50 7.50%
Police Service Fees 48210 1,000.00 120.00 640.00 64.00% Police Services-Special Events 48211 35,000.00 0.00 34,920.00 99.77% Public Events 48212 5,000.00 0.00 0.00 0.00%
Use Permits 48805 52,000.00 50.00 2,590.00 4.98%
Maps/Publications 48810 100.00 0.00 0.00 0.00%
Property Inspections 48825 4,500.00 255.00 1,780.00 39.55% Miscellaneous Revenue 48840 10,000.00 600.00 4,463.52 44.63% Credit Card Processing Fee 48841 0.00 288.65 2,134.21 0.00% LAFCO Refund & Interest for FORA 48842 400.00 0.00 0.00 0.00% Rental - Park 48910 3,700.00 350.00 3,030.00 81.89%
Day Use Permits (Park only) 48911 0.00 180.00 720.00 0.00% Old Town Hall Rental Fee 48912 0.00 175.00 765.00 0.00% Miscellaneous Refunds 48930 1,000.00 6.00 8,118.74 811.87% Total Non Department Specific 3,602,200.00 240,759.65 2,304,386.67 63.97% Police 210
Airport Police Services 48220 1,489,000.00 124,083.00 856,340.50 57.51% Total Police 1,489,000.00 124,083.00 856,340.50 57.51%
Total Revenue 5,091,200.00 364,842.65 3,160,727.17 62.08% Expenditures
Council 110
Council Member Stipend 61115 7,500.00 525.00 3,675.00 49.00% Medicare-ER 61130 200.00 43.31 88.97 44.48%
Social Security-ER 61131 500.00 0.00 195.30 39.06%
Unemployment Ins-Fed & State 61132 100.00 6.83 25.73 25.73% Dental Expense 61135 8,900.00 638.01 5,104.08 57.34%
Materials/Supply 62410 200.00 540.75 540.75 270.37%
Membership Dues-Professional Org 64550 2,500.00 0.00 0.00 0.00% Strategic Planning 64570 5,000.00 0.00 0.00 0.00%
Misc Expenses 64580 2,500.00 0.00 114.64 4.58%
Travel Expenses 64610 3,000.00 400.00 400.00 13.33%
Total Council 30,400.00 2,153.90 10,144.47 33.37%
City Clerk 111
Payroll 61105 252,300.00 29,988.37 159,237.47 63.11%
Overtime 61110 5,000.00 154.08 2,013.57 40.27%
PERS UAL - After 06/30/18 61123 11,100.00 0.00 890.00 8.01% PERS UAL-Before 06/30/2018 61124 41,000.00 0.00 51,139.00 124.72% PERS Retirement 61125 26,700.00 2,435.63 12,897.03 48.30% Medicare-ER 61130 3,800.00 561.31 2,455.40 64.61%
Unemployment Ins-Fed & State 61132 1,200.00 363.99 363.99 30.33% Dental Expense 61135 5,700.00 447.25 3,578.00 62.77%
Health Insurance 61140 122,800.00 11,056.71 68,123.75 55.47% Vision Ins 61145 800.00 59.60 417.20 52.15%
Workers Comp and EAP 61150 4,000.00 6,967.05 10,029.05 250.72% Wellness Program 61155 1,500.00 0.00 919.72 61.31%
Educational Incentive Pay 61157 6,000.00 692.31 3,644.32 60.73% Longevity Pay 61158 3,700.00 493.05 2,572.20 69.51%
Materials/Supply 62410 4,000.00 1,979.25 2,221.15 55.52% Office Supplies 62430 7,000.00 1,294.14 4,159.01 59.41% Repair/Maintenance 63505 1,000.00 0.00 801.66 80.16%
Other Outside Services 63508 6,000.00 540.46 5,919.19 98.65% 34 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Shredding Services 63509 1,000.00 99.03 647.18 64.71%
Short Term Rental Services 63511 17,500.00 0.00 17,500.00 100.00% Telephone 63530 3,000.00 216.23 1,507.14 50.23%
Internet 63531 1,500.00 101.65 659.25 43.95%
Website Design & Maintenance 63535 1,000.00 0.00 0.00 0.00% Postage / Shipping 63540 2,000.00 0.00 1,101.67 55.08%
Training 63605 11,000.00 278.01 2,278.01 20.70%
Insurance-Liability 63620 62,400.00 31,841.70 63,683.40 102.05% Contract Services - IT 63635 10,000.00 900.00 5,400.00 54.00% Software/Server Subscription 64310 15,500.00 163.91 5,600.12 36.12% Agenda Management System 64315 7,000.00 0.00 4,920.00 70.28% Municipal Code Service 64320 5,000.00 0.00 881.17 17.62% Membership Dues-Professional Org 64550 1,000.00 0.00 337.78 33.77% Membership Dues-Government Agency 64552 700.00 60.00 75.00 10.71% Printing / Publications 64575 2,000.00 0.00 0.00 0.00%
Misc Expenses 64580 500.00 175.00 999.62 199.92%
Election Cost 64588 500.00 0.00 0.00 0.00%
Travel Expenses 64610 3,000.00 0.00 434.70 14.49%
Total City Clerk 648,200.00 90,868.73 437,406.75 67.48% City Manager 120
Payroll 61105 202,100.00 20,520.80 114,715.48 56.76%
PERS UAL - After 06/30/18 61123 500.00 0.00 445.00 89.00% PERS Retirement 61125 16,100.00 1,514.06 8,539.97 53.04% Medicare-ER 61130 2,900.00 420.84 1,862.33 64.21%
Unemployment Ins-Fed & State 61132 100.00 0.00 0.00 0.00% Dental Expense 61135 2,400.00 193.29 1,546.32 64.43%
Health Insurance 61140 48,400.00 4,342.36 27,508.52 56.83% Health Insurance -Retiree 61141 1,900.00 162.00 1,110.00 58.42% Vision Ins 61145 400.00 15.71 109.97 27.49%
Workers Comp and EAP 61150 3,000.00 5,573.64 7,615.64 253.85% Wellness Program 61155 500.00 0.00 0.00 0.00%
Educational Incentive Pay 61157 0.00 0.00 461.55 0.00%
Admin Leave 61175 0.00 5,605.60 10,845.12 0.00%
Auto Allowance 61180 5,400.00 623.10 3,278.20 60.70%
Office Supplies 62430 300.00 0.00 30.94 10.31%
Insurance-Liability 63620 51,000.00 25,473.36 50,946.72 99.89% Membership Dues-Professional Org 64550 1,700.00 0.00 1,660.00 97.64% Membership Dues-Government Agency 64552 700.00 0.00 0.00 0.00% Travel Expenses 64610 1,000.00 0.00 4.19 0.41%
Total City Manager 338,400.00 64,444.76 230,679.95 68.17% Finance 130
ADP Payroll Fees 62310 8,500.00 2,578.13 7,657.78 90.09% Bank Service Charges 62320 4,000.00 263.94 3,590.44 89.76% Credit Card Fees 62321 5,000.00 0.00 3,208.95 64.17%
Accounting Software 62431 5,000.00 0.00 281.25 5.62%
Budget Software 62433 14,000.00 0.00 14,000.00 100.00%
Audit-General 63625 40,000.00 7,265.00 32,925.00 82.31% Audit -Sales Tax 63626 5,000.00 0.00 0.00 0.00%
Actuarial Services 63627 4,500.00 0.00 1,550.00 34.44%
Accounting Services-RGS 63645 150,000.00 12,406.52 108,458.08 72.30% Total Finance 236,000.00 22,513.59 171,671.50 72.74%
Legal 150
Legal Services 63650 86,000.00 3,451.75 23,089.58 26.84% 35 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Legal Advert 64560 2,300.00 0.00 1,703.74 74.07%
Misc Expenses 64580 1,000.00 0.00 0.00 0.00%
Total Legal 89,300.00 3,451.75 24,793.32 27.76%
Planning & Building Regulation 160
Economic Development Services 63639 20,000.00 0.00 0.00 0.00% Planning Services 63640 40,000.00 0.00 19,619.00 49.04% Contract Services - Housing Element 63642 50,000.00 0.00 11,697.25 23.39% Building Inspections Services 63648 32,400.00 327.42 34,525.21 106.55% Engineering Services 63649 5,000.00 0.00 300.00 6.00%
Code Enforcement Services 63656 2,000.00 0.00 0.00 0.00% Travel Expenses 64610 1,000.00 0.00 0.00 0.00%
Total Planning & Building Regulation 150,400.00 327.42 66,141.46 43.98% Government Buildings 180
Materials/Supply 62410 2,000.00 0.00 0.00 0.00%
Repair/Maintenance 63505 5,000.00 0.00 424.35 8.48%
Other Outside Services 63508 1,000.00 0.00 0.00 0.00%
Utilities - PG&E 63520 8,000.00 544.98 2,397.55 29.96%
Janitorial Services 63660 4,200.00 0.00 1,750.00 41.66% Total Government Buildings 20,200.00 544.98 4,571.90 22.63% Non-Departmental 190
Materials/Supply 62410 500.00 0.00 177.78 35.55%
Insurance-Liability 63620 25,000.00 0.00 (4,091.10) (16.36)% Insurance-Property 63621 9,000.00 0.00 7,812.76 86.80%
Membership Dues-Professional Org 64550 500.00 0.00 500.00 100.00% Membership Dues-Non Profit Agency Contrib 64551 15,000.00 0.00 13,575.00 90.50% Membership Dues-Government Agency 64552 5,500.00 0.00 5,161.71 93.84% Misc Expenses 64580 1,000.00 1,127.13 2,033.82 203.38%
S.M.I.P. 64930 200.00 68.72 198.58 99.29%
SB 1473 64940 100.00 30.37 66.37 66.37%
Total Non-Departmental 56,800.00 1,226.22 25,434.92 44.78% Police 210
Payroll 61105 1,167,800.00 106,887.32 574,723.10 49.21% Overtime 61110 150,000.00 32,179.67 181,965.65 121.31%
Reserves Payroll 61120 95,000.00 22,925.67 83,670.65 88.07% PERS UAL - After 06/30/18 61123 30,400.00 0.00 25,476.01 83.80% PERS UAL-Before 06/30/2018 61124 111,000.00 0.00 115,906.99 104.42% PERS Retirement 61125 163,000.00 14,726.55 77,830.44 47.74% PERS 457 Expense 61126 32,400.00 3,600.00 17,250.00 53.24% Medicare-ER 61130 17,400.00 3,248.35 13,497.91 77.57%
Social Security-ER 61131 1,000.00 0.00 234.61 23.46%
Unemployment Ins-Fed & State 61132 13,000.00 1,055.55 1,131.52 8.70% Dental Expense 61135 16,200.00 1,348.55 8,082.34 49.89% Health Insurance 61140 342,300.00 23,047.92 150,717.91 44.03% Vision Ins 61145 2,500.00 143.61 1,005.27 40.21%
Workers Comp and EAP 61150 141,500.00 31,583.96 127,540.96 90.13% Wellness Program 61155 5,000.00 0.00 3,272.04 65.44%
Educational Incentive Pay 61157 16,800.00 2,076.96 9,291.54 55.30% Longevity Pay 61158 9,300.00 1,307.58 6,870.45 73.87%
Uniform Allowance 61160 10,000.00 0.00 6,000.00 60.00%
Admin Leave 61175 0.00 19,118.28 19,898.40 0.00%
Materials/Supply 62410 15,000.00 1,927.66 5,935.45 39.56% Ammunition 62420 5,000.00 0.00 0.00 0.00%
Body Armor Vests 62422 1,500.00 3,281.38 3,281.38 218.75% 36 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Office Supplies 62430 5,000.00 169.59 3,069.98 61.39%
Auto Operations - Supplies / Equip 62710 1,000.00 0.00 0.00 0.00% Auto Operations - Fuel 62720 30,000.00 1,696.25 12,678.80 42.26% Repair/Maintenance 63505 2,000.00 0.00 2,092.65 104.63% Other Outside Services 63508 5,000.00 278.26 2,726.56 54.53% Shredding Services 63509 1,000.00 99.03 647.21 64.72%
Utilities - PG&E 63520 8,000.00 545.00 2,458.51 30.73%
Telephone 63530 8,000.00 598.50 3,522.06 44.02%
Internet 63531 6,000.00 294.58 2,011.47 33.52%
Annual Maintenance-Records Mgmt Software 63537 5,000.00 0.00 0.00 0.00% Record Management-Historical 63538 3,400.00 0.00 3,512.38 103.30% Postage / Shipping 63540 500.00 0.00 234.10 46.82%
Training 63605 5,000.00 568.35 6,681.96 133.63%
Insurance-Liability 63620 290,200.00 144,349.04 286,763.68 98.81% Insurance-Property 63621 9,000.00 0.00 7,812.75 86.80%
Insurance-Vehicles 63622 2,550.00 0.00 0.00 0.00%
Insurance-ADWRP 63624 0.00 0.00 829.00 0.00%
Audit-General 63625 5,000.00 0.00 0.00 0.00%
Actuarial Services 63627 2,500.00 0.00 1,550.00 62.00%
Professional Services 63628 12,000.00 0.00 0.00 0.00%
Contract Services - IT 63635 12,900.00 900.00 5,400.00 41.86% Contract Services-Others 63637 4,200.00 0.00 2,625.33 62.50% Legal Services 63650 3,800.00 267.80 1,730.30 45.53%
Janitorial Services 63660 4,200.00 0.00 1,750.00 41.66% 911-NGEN Phase II Upgrade 63664 7,000.00 0.00 0.00 0.00% 911-Radio Dispatch 63665 61,800.00 0.00 46,320.00 74.95% 911-Inform MDT Terminal Service 63666 1,000.00 0.00 0.00 0.00% 911-Notification System 63667 400.00 0.00 0.00 0.00%
911-NGEN O&M 63668 14,400.00 0.00 10,734.00 74.54%
911-NGEN Debt (Capital Fee) 63669 8,000.00 0.00 8,045.00 100.56% Auto Repair/Maintenance 63730 23,000.00 1,937.38 13,210.74 57.43% Parking & Admin Citations Services 63812 9,000.00 0.00 5,305.07 58.94% Animal Regulation Fire 63820 500.00 0.00 0.00 0.00%
Fund Jail & Prisoner 63830 200.00 275.00 983.00 491.50% ACJIS System 63840 9,000.00 2,432.51 2,432.51 27.02%
Software/Server Subscription 64310 22,700.00 121.83 18,959.44 83.52% Computer Server 64318 0.00 0.00 5,276.34 0.00%
Personnel Recruit & Pre-Employment 64545 3,000.00 0.00 1,499.00 49.96% Membership Dues-Professional Org 64550 9,000.00 990.90 5,235.48 58.17% Membership Dues-Non Profit Agency Contrib 64551 500.00 0.00 500.00 100.00% Membership Dues-Government Agency 64552 5,000.00 0.00 5,170.00 103.40% Books and Periodicals 64565 900.00 222.11 430.96 47.88% Printing / Publications 64575 2,000.00 0.00 0.00 0.00%
Misc Expenses 64580 1,000.00 35.97 2,121.30 212.13%
Travel Expenses 64610 13,000.00 0.00 3,657.96 28.13%
Principal-Motorola Lease-Cameras 65104 21,350.00 0.00 21,319.32 99.85% Principal-Dell 65105 5,000.00 0.00 0.00 0.00%
Principal-Sunridge Records Mgmt 65106 8,500.00 0.00 0.00 0.00% Interest-Sunridge Records Mgmt 65107 300.00 0.00 0.00 0.00% Total Police 2,998,900.00 424,241.11 1,932,879.48 64.45% Fire/Animal Control 220
Fire Seaside 63810 243,300.00 0.00 60,928.25 25.04%
Total Fire/Animal Control 243,300.00 0.00 60,928.25 25.04% 37 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Public Works/Streets 311
Payroll 61105 87,800.00 10,123.20 53,122.40 60.50%
PERS UAL - After 06/30/18 61123 500.00 0.00 445.00 89.00% PERS Retirement 61125 7,100.00 686.40 3,593.47 50.61%
Medicare-ER 61130 1,300.00 188.80 812.57 62.50%
Unemployment Ins-Fed & State 61132 100.00 91.01 91.01 91.01% Dental Expense 61135 1,600.00 126.98 1,015.84 63.49%
Health Insurance 61140 37,200.00 3,340.28 21,914.66 58.91% Vision Ins 61145 300.00 15.71 109.97 36.65%
Workers Comp and EAP 61150 1,500.00 2,322.35 3,545.35 236.35% Wellness Program 61155 500.00 0.00 0.00 0.00%
Educational Incentive Pay 61157 1,200.00 138.45 728.40 60.70% Materials/Supply 62410 10,000.00 249.81 5,459.85 54.59% Office Supplies 62430 1,500.00 61.76 265.70 17.71%
Auto Operations - Supplies / Equip 62710 2,500.00 0.00 8.18 0.32% Auto Operations - Fuel 62720 5,000.00 260.78 1,465.39 29.30% Repair/Maintenance 63505 17,900.00 5,770.74 16,044.74 89.63% Other Outside Services 63508 1,000.00 0.00 100.00 10.00% Gabilan Crew 63515 3,000.00 0.00 0.00 0.00%
Utilities - PG&E 63520 5,000.00 99.04 3,187.59 63.75%
Utilities - Water 63525 5,000.00 299.19 1,971.11 39.42% Telephone 63530 200.00 90.39 180.19 90.09%
Internet 63531 600.00 80.98 241.94 40.32%
Training 63605 2,000.00 706.40 726.35 36.31%
Insurance-Liability 63620 21,200.00 10,613.90 21,227.80 100.13% Insurance-Vehicles 63622 5,000.00 0.00 4,766.00 95.32%
SB1383 Organics Waste Regs Services 63654 14,000.00 0.00 4,500.00 32.14% Hazardous Waste Disposal 63655 500.00 0.00 0.00 0.00%
Auto Repair/Maintenance 63730 5,000.00 0.00 1,762.58 35.25% Street Lighting 63910 0.00 0.00 1,630.59 0.00%
Printing / Publications 64575 1,300.00 0.00 0.00 0.00%
Storm Water Project - Phase 4 64920 15,000.00 0.00 8,892.54 59.28% Equipment 66302 2,000.00 0.00 0.00 0.00%
Total Public Works/Streets 256,800.00 35,266.17 157,809.22 61.45% Parks/Recreation 411
Materials/Supply 62410 10,000.00 226.31 5,522.63 55.22% Office Supplies 62430 1,000.00 0.00 106.23 10.62%
Repair/Maintenance 63505 20,000.00 1,540.00 11,297.18 56.48% Utilities - Water 63525 3,500.00 844.67 5,173.05 147.80% Contract Services - Consultant 63612 75,000.00 0.00 0.00 0.00% Travel Expenses 64610 100.00 0.00 0.00 0.00%
Total Parks/Recreation 109,600.00 2,610.98 22,099.09 20.16% Total Expenditures 5,178,300.00 647,649.61 3,144,560.31 60.73% Net Revenues (87,100.00) (282,806.96) 16,166.86 (18.56)% Other Financing Sources and Uses
Non Department Specific 000
Transfers Out to CIP 81003 (375,446.00) 0.00 (9,759.64) 2.59% Total Non Department Specific (375,446.00) 0.00 (9,759.64) 2.60% Total Other Financing Sources and Uses (375,446.00) 0.00 (9,759.64) 2.60% Net Revenues After Other Financing Sources and
Uses
(462,546.00) (282,806.96) 6,407.22
38 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
210 - Gas Tax Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
Gas Tax 2103 47010 15,000.00 911.62 9,119.58 60.79%
Gas Tax 2105 47020 10,100.00 740.33 5,694.52 56.38%
Gas Tax 2106 47030 9,200.00 694.89 5,271.39 57.29%
Gas Tax 2107 47040 13,700.00 1,034.85 7,684.88 56.09%
Gas Tax 2107.5 47050 1,000.00 0.00 1,000.00 100.00%
Total Non Department Specific 49,000.00 3,381.69 28,770.37 58.72% Total Revenue 49,000.00 3,381.69 28,770.37 58.72%
Expenditures
Public Works/Streets 311
Street Sweeping 63510 12,070.00 0.00 0.00 0.00%
Street Lighting 63910 20,400.00 1,722.61 8,149.76 39.94% Principal-PG&E 65751 2,550.00 210.83 1,264.98 49.60%
Total Public Works/Streets 35,020.00 1,933.44 9,414.74 26.88% Total Expenditures 35,020.00 1,933.44 9,414.74 26.88%
Net Revenues 13,980.00 1,448.25 19,355.63
Net Revenues After Other Financing Sources and
Uses
13,980.00 1,448.25 19,355.63
39 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
211 - SB1 Fund-RMRA
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
SB 1 Funds 47777 41,300.00 3,450.32 25,553.63 61.87%
Total Non Department Specific 41,300.00 3,450.32 25,553.63 61.87% Total Revenue 41,300.00 3,450.32 25,553.63 61.87%
Expenditures
Saucito Rd & Work Ave Improvement Project 537
Curb and Gutter Repair 66327 24,046.50 0.00 0.00 0.00%
Total Saucito Rd & Work Ave Improvement
Project
24,046.50 0.00 0.00 0.00%
Rosita Emergency Repairs 539
Curb and Gutter Repair 66327 65,000.00 0.00 0.00 0.00%
Total Rosita Emergency Repairs 65,000.00 0.00 0.00 0.00% Total Expenditures 89,046.50 0.00 0.00 0.00%
Net Revenues (47,746.50) 3,450.32 25,553.63 (53.51)%
Other Financing Sources and Uses
Non Department Specific 000
Transfers Out to CIP 81003 (13,550.00) 0.00 (13,550.00) 100.00% Total Non Department Specific (13,550.00) 0.00 (13,550.00) 100.00% Total Other Financing Sources and Uses (13,550.00) 0.00 (13,550.00) 100.00% Net Revenues After Other Financing Sources and
Uses
(61,296.50) 3,450.32 12,003.63
40 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
212 - Measure X Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
Measure X 47775 95,900.00 0.00 27,517.73 28.69%
Total Non Department Specific 95,900.00 0.00 27,517.73 28.69% Total Revenue 95,900.00 0.00 27,517.73 28.69%
Expenditures
Debt Service - Measure X 610
Principal - Measure X Loan 65103 83,900.00 0.00 4,531.12 5.40% Interest - Measure X 65203 12,000.00 0.00 22,986.61 191.55% Total Debt Service - Measure X 95,900.00 0.00 27,517.73 28.69% Total Expenditures 95,900.00 0.00 27,517.73 28.69%
Net Revenues 0.00 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
0.00 0.00 0.00 0.00%
41 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
214 - RSTP
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
RSTP Funds 47776 67,602.00 0.00 0.00 0.00%
Total Non Department Specific 67,602.00 0.00 0.00 0.00% Total Revenue 67,602.00 0.00 0.00 0.00%
Net Revenues 67,602.00 0.00 0.00 0.00%
Other Financing Sources and Uses
Non Department Specific 000
Transfers Out to CIP 81003 (67,602.00) 0.00 (67,600.00) 99.99% Total Non Department Specific (67,602.00) 0.00 (67,600.00) 100.00% Total Other Financing Sources and Uses (67,602.00) 0.00 (67,600.00) 100.00% Net Revenues After Other Financing Sources and
Uses
0.00 0.00 (67,600.00) 0.00%
42 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
221 - FORA Habitat Management Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Expenditures
Planning & Building Regulation 160
Contract Services - Habitat Management Plan 63646 14,448.00 0.00 0.00 0.00% Total Planning & Building Regulation 14,448.00 0.00 0.00 0.00% Total Expenditures 14,448.00 0.00 0.00 0.00%
Net Revenues (14,448.00) 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
(14,448.00) 0.00 0.00 0.00%
43 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
222 - FORA Land Development
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Expenditures
Planning & Building Regulation 160
Economic Development Services 63639 (2,031.00) 0.00 0.00 0.00% Legal Services 63650 2,031.00 0.00 0.00 0.00%
Misc Expenses 64580 0.00 0.00 8,120.23 0.00%
Total Planning & Building Regulation 0.00 0.00 8,120.23 0.00% Total Expenditures 0.00 0.00 8,120.23 0.00%
Net Revenues 0.00 0.00 (8,120.23) 0.00%
Net Revenues After Other Financing Sources and
Uses
0.00 0.00 (8,120.23) 0.00%
44 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
231 - BSCC-Officer Wellness & Mental Health Grant
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Expenditures
Police 210
Law Enforcement Wellness App 64314 2,000.00 0.00 10,835.00 541.75% Total Police 2,000.00 0.00 10,835.00 541.75%
Total Expenditures 2,000.00 0.00 10,835.00 541.75%
Net Revenues (2,000.00) 0.00 (10,835.00)
Net Revenues After Other Financing Sources and
Uses
(2,000.00) 0.00 (10,835.00)
45 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
235 - Asset Forfeitures
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Police 210
Police Grants & Other Reimbursements 47780 0.00 0.00 1,846.26 0.00% Total Police 0.00 0.00 1,846.26 0.00%
Total Revenue 0.00 0.00 1,846.26 0.00%
Net Revenues 0.00 0.00 1,846.26 0.00%
Net Revenues After Other Financing Sources and
Uses
0.00 0.00 1,846.26 0.00%
46 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
236 - Drug Enforcement Administration (DEA)
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Police 210
DEA Reimbursements 47782 46,128.26 0.00 12,112.68 26.25% Total Police 46,128.26 0.00 12,112.68 26.26%
Total Revenue 46,128.26 0.00 12,112.68 26.26%
Expenditures
Police 210
Overtime-DEA 61111 46,128.26 3,891.11 32,331.79 70.09%
Total Police 46,128.26 3,891.11 32,331.79 70.09%
Total Expenditures 46,128.26 3,891.11 32,331.79 70.09%
Net Revenues 0.00 (3,891.11) (20,219.11) 0.00%
Net Revenues After Other Financing Sources and
Uses
0.00 (3,891.11) (20,219.11) 0.00%
47 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
260 - CDBG Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Parks/Recreation 411
CDBG Grant 47765 90,000.00 0.00 0.00 0.00%
Total Parks/Recreation 90,000.00 0.00 0.00 0.00%
Total Revenue 90,000.00 0.00 0.00 0.00%
Expenditures
Parks/Recreation 411
Park Improvements 66420 90,000.00 0.00 0.00 0.00%
Total Parks/Recreation 90,000.00 0.00 0.00 0.00%
Total Expenditures 90,000.00 0.00 0.00 0.00%
Net Revenues 0.00 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
0.00 0.00 0.00 0.00%
48 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
301 - Capital Projects
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Expenditures
Vehicle Replacement 533
Vehicle Replacement 66735 90,000.00 0.00 0.00 0.00%
Total Vehicle Replacement 90,000.00 0.00 0.00 0.00%
Saucito Rd & Work Ave Improvement Project 537
Repairs and Improvements 66322 81,150.00 0.00 81,150.00 100.00% Total Saucito Rd & Work Ave Improvement
Project
81,150.00 0.00 81,150.00 100.00%
City Hall Facility Repairs & Upgrades 541
Repairs and Improvements 66322 20,000.00 0.00 7,373.64 36.86% Total City Hall Facility Repairs & Upgrades 20,000.00 0.00 7,373.64 36.87% Council Chamber Technology Project 542
Technology Upgrades 66323 5,000.00 0.00 0.00 0.00%
Total Council Chamber Technology Project 5,000.00 0.00 0.00 0.00% PD Radio Replacement 543
PD Radio Replacement 66736 20,000.00 0.00 0.00 0.00%
Total PD Radio Replacement 20,000.00 0.00 0.00 0.00%
Technology Replacement 544
Technology Replacement 66324 3,000.00 0.00 0.00 0.00%
Total Technology Replacement 3,000.00 0.00 0.00 0.00%
City Hall Sewer Upgrades 545
City Hall Sewer Upgrades 66426 40,000.00 0.00 0.00 0.00% Total City Hall Sewer Upgrades 40,000.00 0.00 0.00 0.00% City Hall Chamber Renovations 546
City Hall Chamber Renovations 66427 50,000.00 0.00 0.00 0.00% Total City Hall Chamber Renovations 50,000.00 0.00 0.00 0.00% City Hall Fence Replacement 547
City Hall Fence Replacement 66428 20,000.00 0.00 0.00 0.00% Total City Hall Fence Replacement 20,000.00 0.00 0.00 0.00% City Hall Parking Lot Improvements 548
City Hall Parking Lot Impvts 66429 167,446.00 6,396.00 6,396.00 3.81% Total City Hall Parking Lot Improvements 167,446.00 6,396.00 6,396.00 3.82% Adair Stairs Repairs 549
Adair Stairs Repairs 66430 15,000.00 0.00 0.00 0.00%
Total Adair Stairs Repairs 15,000.00 0.00 0.00 0.00%
Del Rey Oaks Garden Center 550
Repair/Maintenance 63505 0.00 0.00 2,386.00 0.00%
Total Del Rey Oaks Garden Center 0.00 0.00 2,386.00 0.00% Total Expenditures 511,596.00 6,396.00 97,305.64 19.02% Net Revenues (511,596.00) (6,396.00) (97,305.64) 19.02% Other Financing Sources and Uses
Vehicle Replacement 533
Transfers In from GF 82003 90,000.00 0.00 0.00 0.00%
Total Vehicle Replacement 90,000.00 0.00 0.00 0.00%
Saucito Rd & Work Ave Improvement Project 537
Transfers In from RSTP 82006 67,602.00 0.00 67,600.00 99.99% Transfers In from SB1-RMRA 82007 13,550.00 0.00 13,550.00 100.00% Total Saucito Rd & Work Ave Improvement
Project
81,152.00 0.00 81,150.00 100.00%
City Hall Facility Repairs & Upgrades 541
Transfers In from GF 82003 20,000.00 0.00 7,373.64 36.86% Total City Hall Facility Repairs & Upgrades 20,000.00 0.00 7,373.64 36.87% 49 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
301 - Capital Projects
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Council Chamber Technology Project 542
Transfers In from GF 82003 5,000.00 0.00 0.00 0.00%
Total Council Chamber Technology Project 5,000.00 0.00 0.00 0.00% PD Radio Replacement 543
Transfers In from GF 82003 20,000.00 0.00 0.00 0.00%
Total PD Radio Replacement 20,000.00 0.00 0.00 0.00%
Technology Replacement 544
Transfers In from GF 82003 3,000.00 0.00 0.00 0.00%
Total Technology Replacement 3,000.00 0.00 0.00 0.00%
City Hall Sewer Upgrades 545
Transfers In from GF 82003 40,000.00 0.00 0.00 0.00%
Total City Hall Sewer Upgrades 40,000.00 0.00 0.00 0.00% City Hall Chamber Renovations 546
Transfers In from GF 82003 50,000.00 0.00 0.00 0.00%
Total City Hall Chamber Renovations 50,000.00 0.00 0.00 0.00% City Hall Fence Replacement 547
Transfers In from GF 82003 20,000.00 0.00 0.00 0.00%
Total City Hall Fence Replacement 20,000.00 0.00 0.00 0.00% City Hall Parking Lot Improvements 548
Transfers In from GF 82003 167,446.00 0.00 0.00 0.00%
Total City Hall Parking Lot Improvements 167,446.00 0.00 0.00 0.00% Adair Stairs Repairs 549
Transfers In from GF 82003 15,000.00 0.00 0.00 0.00%
Total Adair Stairs Repairs 15,000.00 0.00 0.00 0.00%
Del Rey Oaks Garden Center 550
Transfers In from GF 82003 0.00 0.00 2,386.00 0.00%
Total Del Rey Oaks Garden Center 0.00 0.00 2,386.00 0.00% Total Other Financing Sources and Uses 511,598.00 0.00 90,909.64 17.77% Net Revenues After Other Financing Sources and
Uses
2.00 (6,396.00) (6,396.00)
50 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
321 - SBR Engineering Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Expenditures
SBR Contract-Engineering & Others 518
Contract Services - Engineering 63611 423,075.00 0.00 12,322.70 2.91% Total SBR Contract-Engineering & Others 423,075.00 0.00 12,322.70 2.91% Total Expenditures 423,075.00 0.00 12,322.70 2.91%
Net Revenues (423,075.00) 0.00 (12,322.70)
Net Revenues After Other Financing Sources and
Uses
(423,075.00) 0.00 (12,322.70)
51 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
331 - FHA Grant Fund
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
FHWA Grant 47523 543,400.00 501,655.54 501,655.54 92.31% Total Non Department Specific 543,400.00 501,655.54 501,655.54 92.32% Total Revenue 543,400.00 501,655.54 501,655.54 92.32%
Expenditures
Rosita Emergency Repairs 539
Contract Services - Engineering 63611 4,019.19 0.00 1,421.00 35.35% Road Construction 66411 48,806.78 0.00 0.00 0.00%
Total Rosita Emergency Repairs 52,825.97 0.00 1,421.00 2.69% Total Expenditures 52,825.97 0.00 1,421.00 2.69%
Net Revenues 490,574.03 501,655.54 500,234.54
Net Revenues After Other Financing Sources and
Uses
490,574.03 501,655.54 500,234.54
52 Item 1.
City of Del Rey Oaks
Statement of Revenues and Expenditures
332 - FEMA & OES
From 1/1/2026 Through 1/31/2026
Budget
FY 2026
Actual
January 2026
Actual
FY 2026 YTD
Collected/Spent
Percent
Expenditures
City Hall Facility Repairs & Upgrades 541
Repairs and Improvements 66322 4,853.09 0.00 0.00 0.00% Total City Hall Facility Repairs & Upgrades 4,853.09 0.00 0.00 0.00% Total Expenditures 4,853.09 0.00 0.00 0.00%
Net Revenues (4,853.09) 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
(4,853.09) 0.00 0.00 0.00%
53 Item 1.
Vendor Name PO Number Encumbrance Description Enc Date Encumbrance Amount Current Balance Fund
Code
DeptProject
Code
GL
Code
Access Monterey Penninsula, Inc. PO2526-36 Video operators to produce, braodcst, record and live stream DRO meetings
7/1/2025 7,200.00 6,900.00 100 111 63508
CHAVAN AND ASSOCIATES, LLP PO2526-37 City Audit Services FY 2026 7/1/2025 34,125.00 5,590.00 100 130 63625 Dell Financial Services LLC PO2526-38 Power Edge R660xs Server 8/26/2025 5,276.35 0.01 100 210 64318 G.P.S. SOLUTIONS PO2526-39 FY25/26 Plan Checking & Building Inspection Services
7/1/2025 54,849.28 29,672.58 100 160 63648
MONTEREY BAY TECHNOLOGIES, INC. PO2526-41 FY25/26 IT Services Retainer 7/1/2025 9,000.00 5,400.00 100 111 63635 MONTEREY BAY TECHNOLOGIES, INC. PO2526-41 FY25/26 IT Services Retainer 7/1/2025 9,000.00 5,400.00 100 210 63635 Total PO2526-41 FY25/26 IT Services Retainer 7/1/2025 18,000.00 10,800.00 SMITH & ENRIGHT LANDSCAPING, INCPO2526-42 FY25-26 Weekly Landscape Maintenance 8/26/2025 16,680.00 8,980.00 100 411 63505 FENTON & KELLER PO2526-44 FY25/26 Legal Services 7/1/2025 80,000.00 60,847.17 100 150 63650 FENTON & KELLER PO2526-44 FY25/26 Legal Services 7/1/2025 3,000.00 1,269.70 100 210 63650 Total PO2526-44 FY25/26 Legal Services 7/1/2025 83,000.00 62,116.87 REGIONAL GOVERNMENT SERIVCES PO2526-45 FY25/26 Accounting Services 9/11/2025 150,000.00 41,541.92 100 130 63645 CITY OF SEASIDE PO2526-46 FY 25/26 Fire Protection 7/1/2025 243,713.00 182,784.75 100 220 63810 County of Monterey PO2526-47 FY25/26 9-1-1 Dispatch & Related Services
7/1/2025 46,360.00 15,480.00 100 210 63665
County of Monterey PO2526-47 FY25/26 9-1-1 Dispatch & Related Services
7/1/2025 10,822.00 3,666.00 100 210 63668
County of Monterey PO2526-47 FY25/26 9-1-1 Dispatch & Related Services
7/1/2025 315.00 0.00 100 210 63669
Total PO2526-47 FY25/26 9-1-1 Dispatch & Related
Services
7/1/2025 57,497.00 19,146.00
MONTEREY PENINSULA ENGINEERING, PO2526-48 Slurry & restripig of the road and intersection
7/1/2025 35,000.00 35,000.00 211 539 66327
DENISE DUFFY & ASSOCIATES PO2526-52 Task 772 Former Fort Ord Planning 7/1/2025 5,000.00 2,675.00 100 160 63640 DENISE DUFFY & ASSOCIATES PO2526-53 Task 776 Planning & Consulting 7/1/2025 30,000.00 15,856.00 100 160 63640 DENISE DUFFY & ASSOCIATES PO2526-54 Task 779-D Adoption & Finalization HCD 7/1/2025 7,000.00 4.50 100 160 63642 DENISE DUFFY & ASSOCIATES PO2526-55 Task 779-E Housing Element Implementation
7/1/2025 43,000.00 38,298.25 100 160 63642
DENISE DUFFY & ASSOCIATES PO2526-56 Task 782 Habitat Managment Plan 7/1/2025 30,000.00 30,000.00 221 160 63646 DENISE DUFFY & ASSOCIATES PO2526-57 Task 4 - Project 2024-40 South Boundary Road Realignment
7/1/2025 90,500.00 88,110.30 321 518 63611
Whitson Engineers PO2526-59 SBR Engineering - Contract Services 7/1/2025 320,000.00 310,067.00 321 518 63611 City of Seaside PO2526-61 Street Sweeeping 9/3/2025 12,068.16 12,068.16 210 311 63510 Coronado PO2526-62 Mobile Car Repairs 12/16/2025 13,342.97 11,405.59 100 210 63730 Coronado PO2526-62 Mobile Car Repairs 12/16/2025 1,133.17 1,133.17 100 311 63730 14,476.14 12,538.76
Neil Engineering PO2526-63 Engineering Services 10/1/2025 25,000.00 18,604.00 301 548 66429 Monterey Regional PO2526-64 FY 2026 SB1383 Implementation 7/1/2025 14,000.00 7,000.00 100 311 63654 Report Balance $ 1,296,384.93 $ 937,754.10
City of Del Rey Oaks
Encumbrance Summary
Balance as of 01/31/2026
54 Item 1.
1 City Council Report
Jan 2026
Case # Date Offense Code 1 Offense Code Description
DROMPADOJResidentialCommercial
26-001 01/03/2026 273.5(A) PC Inflict corporal injury on spouse X X 26-002 01/04/2026 Animal Animal related X X
26-003 01/05/2026 242 PC Battery on person X X
26-004 01/05/2026 Animal Bite Report Animal bite X X
26-005 01/09/2026 Death Investigation Death Investigation X X 26-006 01/09/2026 23152(B) VC DUI arrest X X
26-007 01/09/2026 Information Only Informational X X
26-008 01/10/2026 Animal Bite Report Animal bite X X
26-009 01/10/2026 Found Property Found Property X X
26-010 01/12/2026 Information Only Informational X X
26-011 01/13/2026 5150 W&I 72 Hour Hold X X
26-012 01/14/2026 Information Only Informational X X
26-013 01/16/2026 Civil Civil X X
26-014 01/16/2026 Information Only Informational X X
26-015 01/16/2026 Towed Vehicle Towed X X
26-016 01/19/2026 4463(A)(1) VC Forge/Alter vehicle registration X X 26-017 01/19/2026 Found Property Found Property X X
26-018 01/19/2026 4000(a) VC Towed Vehicle X X
26-019 01/21/2026 12500(A) VC Unlicensed Driver X X
26-020 01/25/2026 459 PC Burglary X X
26-021 01/26/2026 Death Investigation Death Investigation X X 26-022 01/26/2026 Susp Circ Suspicious Circumstances X X 26-023 01/27/2026 Information Only Informational Only X X 26-024 01/29/2026 484(A) PC Theft of personal property X X 26-025 01/29/2026 666.1(A)(1) PC Arrest X X
26-026 01/29/2026 Lost Property Lost Property X X
26-027 01/30/2026 Information Only Information X X
26-028 01/31/2026 Medical Emergency Medical Emergency X X 26-029 01/31/2026 Medical Emergency Medical Emergency X X 29 Cases
Chris Bourquin - Chief
55 Item 2.
2 Calls for Service Case Reports
Month YTD Month YTD
251 251 29 29
Alarms Citations
Residential Commercial MPAD Moving Parking Warning
Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD
0 0 2 2 6 6 17 17 22 22 14 14
56 Item 2.
Offense Reported
in 2026
Reported
in 2025
Percent
Change
Offenses
Cleared
Percent
Cleared
Percent Of
Category
Rate Per
100,000*
Murder 0 0 NA 0 0.00% 0.00% NA
Negligent Manslaughter 0 0 NA 0 0.00% 0.00% NA
Justifiable Homicide 0 0 NA 0 0.00% 0.00% NA
Non-consensual Sex Offenses:
Rape 0 0 NA 0 0.00% 0.00% NA
Sodomy 0 0 NA 0 0.00% 0.00% NA
Sexual Assault with Object 0 0 NA 0 0.00% 0.00% NA
Fondling 0 0 NA 0 0.00% 0.00% NA
Aggravated Assault 0 0 NA 0 0.00% 0.00% NA
Simple Assault 3 0 NA 1 33.33% 100.00% NA
Intimidation 0 0 NA 0 0.00% 0.00% NA
Kidnapping/Abduction 0 0 NA 0 0.00% 0.00% NA
Consensual Sex Offenses:
Incest 0 0 NA 0 0.00% 0.00% NA
Statutory Rape 0 0 NA 0 0.00% 0.00% NA
Human Trafficking, Commercial
Sex Acts
0 0 NA 0 0.00% 0.00% NA
Human Trafficking, Involuntary
Servitude
0 0 NA 0 0.00% 0.00% NA
Crimes Against Persons Total 3 0 NA 1 33.33% 50% NA
Robbery 0 0 NA 0 0.00% 0.00% NA
Burglary/Breaking & Entering 1 0 NA 0 0.00% 33.33% NA
Larceny/Theft Offenses 1 1 0.00% 0 0.00% 33.33% NA
Motor Vehicle Theft 0 1 -100.00% 0 0.00% 0.00% NA
Arson 0 0 NA 0 0.00% 0.00% NA
Destruction Of Property 0 0 NA 0 0.00% 0.00% NA
Counterfeiting/Forgery 1 0 NA 1 100.00% 33.33% NA
Fraud Offense 0 0 NA 0 0.00% 0.00% NA
Embezzlement 0 0 NA 0 0.00% 0.00% NA
Extortion/Blackmail 0 0 NA 0 0.00% 0.00% NA
Bribery 0 0 NA 0 0.00% 0.00% NA
Stolen Property Offenses 0 0 NA 0 0.00% 0.00% NA
Crimes Against Property Total 3 2 50% 1 33.33% 50% NA
Drug/Narcotic Violations 0 1 -100.00% 0 0.00% 0.00% NA
Drug Equipment Violations 0 0 NA 0 0.00% 0.00% NA
Gambling Offenses 0 0 NA 0 0.00% 0.00% NA
Pornography/Obscene Material 0 0 NA 0 0.00% 0.00% NA
Prostitution 0 0 NA 0 0.00% 0.00% NA
Weapons Law Violation 0 0 NA 0 0.00% 0.00% NA
Animal Cruelty 0 0 NA 0 0.00% 0.00% NA
Crimes Against Society Total 0 1 -100% 0 0.00% 0.00% NA Agency: All
Total Group "A" Offenses 6 3 100% 2 33.33% 100% NA
Statewide Crime Profile * Adjusted population base: 1 2026 Crime in California
Note: The Rate per 100,000 will be 'NA' when the Adjusted Population Base is Zero.
Group A Offense Report
Beginning Date: 01/01/2026 Ending Date: 01/31/2026
Printed On: 02/01/2026
57 Item 2.
58 Item 3.
59 Item 3.
60 Item 3.
DATE: February 24, 2026
TO: City Council
FROM: John Guertin, City Manager
SUBJECT: Professional Services Contracts for Information Technology Services Agreement with Monterey Bay Technologies.
CEQA: This Action is not subject to the California Environmental Quality Act (CEQA) as it is not a project pursuant to Guidelines Section 15378 (b)(5) because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment.
Recommendation
Approve the attached professional services contract for Information Technology (IT) Services with Monterey Bay Technologies.
Background
The City relies extensively on its technology systems to conduct daily operations, maintain public records, ensure cybersecurity, support public safety communications, and facilitate public meetings.
These systems include network infrastructure, servers, workstations, cloud-based applications, security systems, backup and disaster recovery protocols, and teleconferencing capabilities.
Since 2008, the City has contracted with Monterey Bay Technologies to provide professional IT services. The firm has supported the City through multiple infrastructure upgrades, cybersecurity enhancements, system expansions, and the implementation of remote access and hybrid meeting technologies.
The City’s technology footprint has expanded significantly over the past several years. Key drivers of this growth include:
• Expansion of public safety operations and associated technology systems • Increased cybersecurity requirements and threat mitigation measures • Implementation of digital agenda management and electronic records systems • Ongoing cloud integration and data backup modernization • Expanded budget development and management systems
These expanded responsibilities require a higher level of proactive system monitoring, maintenance, and strategic IT planning.
Staff Report
61 Item 1.
Discussion
The attached agreement formalizes the continued provision of comprehensive IT services, including:
• Network and server maintenance
• Cybersecurity monitoring and response
• Data backup and disaster recovery management
• Hardware and software support
• User technical assistance
• Strategic technology planning and system upgrades
Over the course of the City’s longstanding relationship with Monterey Bay Technologies, the firm has demonstrated reliability, technical competence, and responsiveness. The company maintains familiarity with the City’s infrastructure, which allows for efficient troubleshooting and proactive system management.
Continuing this professional services agreement ensures operational continuity, protects sensitive City data, and supports the reliable delivery of municipal services to the public.
Fiscal Impacts
The agreement establishes:
• A monthly retainer of $2,100 for up to 10 hours of service • Additional services billed at $135 per hour
The increased retainer reflects the expanded scope and complexity of the City’s current technology systems and the level of service required to maintain secure and reliable operations.
Sufficient funding is included in the adopted budget within the Information Technology services line item.
Respectfully Submitted,
__________________________
John Guertin, City Manager
62 Item 1.
63 Item 1.
64 Item 1.
RESOLUTION NO. 2026-01
A RESOLUTION OF THE CITY OF DEL REY OAKS CITY COUNCIL HONORING ROBIN McCRAE UPON THE SELECTION AS THE RECIPENT OF THE 2025 RUTH
VREELAND MEMORIAL PUBLIC OFFICIAL OF THE YEAR
WHEREAS, Robin was born and raised in Salinas. She graduated from Salinas High School and studied English at the University of California, Davis, where she earned a bachelor’s degree in creative writing and a master’s degree in poetry.
WHEREAS, She started her career at KSBW as Programming and Promotions Coordinator and Public Service Director. She has also worked at the SPCA of Monterey County as Public Relations and Development Director, Northridge Mall as Marketing Director, Monterey County Office of Education as Public Information Officer, and California School Employees Association as a Labor Representative.
WHEREAS, Robin started at Community Human Services in 1992 as Administrative Assistant where she also managed grant writing and human resources. She has served as the Chief Executive Officer of Community Human Services, a nonprofit Joint Powers Agency, for the past 32 years.
WHEREAS, She is responsible for delivering high quality mental health, substance use, and homeless programs to the youth and families of Monterey County with a staff of 150 employees and a $18M budget.
WHEREAS, Community Human Services helps over 4,500 Monterey County residents each year overcome personal challenges and create lasting change in their lives.
WHEREAS, Robin McCrae’s retirement, effective March 2026, will mark the end of a remarkable 34-year tenure with the organization, during which she transformed Community Human Services into a regional leader in community-based social services.
NOW, THEREFORE BE IT RESOLVED, that the City of Del Rey Oaks, on behalf of all the City and its citizens thereof, hereby congratulates Robin McCrae upon their selection as the recipient of the 2025 Ruth Vreeland Memorial Public Official of the Year.
PASSED AND ADOPTED this 24th day of February 2026, by the following vote, AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED:________________ ATTEST:___________________
Scott Donaldson, Mayor Karen Minami, City Clerk
65 Item 2.
DATE: February 26, 2026
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Status of Development of City Owned Parcels (APN 031-191-026) on the Former Fort Ord.
CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.
RECOMMENDATION
That Council receive a report and provide direction to staff.
BACKGROUND
In 2005 the City acquired a tract of land on the former Fort Ord from the Fort Order Reuse Authority. The tract is composed of several parcels, which are shown on the attached Tentative Parcel Map, and are known individually as Parcels A, B, C, D, and the “CalTrans Right of Way Parcel” (together the “Parcels”).
In 2014 the City sold Parcels A, D, and the Cal Trans Right of Way Parcel to Monterey Peninsula Partners (“MPP”) for $3M, with the option to purchase Parcels B and C for $17M.
In 2016 MPP entitled the Monument RV Park by initiative measure on Parcel D and the CalTrans Right of Way Parcel. Currently, there is no planned development on Parcel A though it is reasonable to assume it may be developed in conjunction with the Parcels B & C. Development has awaited the extension of public infrastructure including water, sewer, electricity and gas to the properties.
In 2018 MPP and Three Cedars, LLC formed Oak Ridge Development Group, LLC to pursue development of Parcels B & C; however, Oak Ridge ultimately informed the City it would not proceed.
In 2024, the City entered into an Exclusive Right to Negotiate (ERN) Agreement with City Ventures to explore the potential development of the City-owned parcels. The City and City Ventures engaged in due diligence and preliminary discussions regarding project feasibility and Staff Report
66 Item A.
terms of a potential development agreement. However, the parties were not successful in reaching mutually acceptable terms, and the ERN expired and was not extended.
Since expiration of the ERN, additional developers—particularly firms experienced in development on former Fort Ord lands—have contacted the City expressing interest in pursuing development opportunities on the remaining City-owned parcels.
SUMMARY AND DISCUSSION
With the expiration of the ERN and renewed market interest in development opportunities, staff is seeking City Council direction regarding the preferred process for selecting a development partner for the City’s remaining former Fort Ord properties.
Several potential pathways are available to the City:
Option 1: Coordinate with MPP and IL Housing Solutions, Inc.
The City could explore working collaboratively with MPP and their development partner, IL Housing Solutions to evaluate expansion of their proposed project to incorporate the City-owned parcels.
Under this approach:
• The City would enter into discussions to determine whether a unified or coordinated development concept is feasible.
• Potential benefits could include master planning efficiencies, shared infrastructure costs, improved site design integration, and coordinated entitlements. • This approach may streamline environmental review and infrastructure phasing. • However, it would limit the City’s ability to solicit broader proposals and may reduce competitive leverage in negotiating financial and community benefit terms.
Council direction would be required to authorize staff to enter into exploratory negotiations and determine whether an Exclusive Negotiating Agreement should be pursued.
Option 2: Targeted Solicitation from Interested Former Fort Ord Developers Currently, three development firms familiar with development on former Fort Ord have contacted staff and expressed interest in pursuing projects on the City’s parcels.
Under this approach:
• The City would solicit high-level conceptual proposals from those firms. • The City’s development team would work collaboratively with the interested developers to refine concepts.
• Staff would conduct a structured review and comparative analysis process. • Staff would return to Council with a recommendation regarding how, and with whom, to proceed.
• This option maintains competitive tension while allowing a more streamlined and targeted process than a full public RFP.
• The timeline would likely be shorter than issuing a new RFP. 67 Item A.
This option provides flexibility while leveraging developer familiarity with Fort Ord regulatory, infrastructure, and environmental constraints. This option also offers a shorter timeline, allowing the City to more quickly engage developers during what appears to be a favorable investment cycle in the development industry.
Option 3: Revisit and Reissue a Formal Request for Proposals (RFP) The City may elect to revisit the 2018 Request for Proposals, update it to reflect current market conditions, infrastructure status, housing policy requirements, and City objectives, and issue a new RFP to the broader development community.
Under this approach:
• The City would cast a wider net and potentially attract new and varied development teams.
• The competitive process may result in stronger financial returns or enhanced community benefits.
• However, preparation, advertising, proposal review, interviews, and negotiations would necessitate a longer timeline.
• This process would require significant staff and consultant resources.
This option is more time-intensive but may offer more competitive exposure.
FISCAL IMPACT
There is no direct fiscal impact associated with receiving this report and providing direction.
Depending on Council direction, future fiscal impacts may include:
• Option 1 (Coordination with MPP and IL Housing Solutions): Staff and consultant time associated with negotiation of a potential Exclusive Negotiating Agreement (ENA), preliminary planning analysis, and legal review. Costs would be offset through developerfunded deposits and reimbursement agreements as negotiations proceed. • Option 2 (Targeted Solicitation): Moderate staff and consultant time to manage proposal submissions, conduct evaluation and interviews, and prepare comparative analysis. Costs would be relatively limited compared to a full RFP process and would be offset through developer-funded deposits and reimbursement agreements as negotiations proceed.. • Option 3 (New RFP): Greater staff and consultant resources required to prepare updated procurement documents, advertise broadly, evaluate proposals, conduct interviews, and negotiate terms. This option would likely require the longest timeline and the highest upfront administrative cost, though such costs could be structured for partial reimbursement by the selected development partner.
Ultimately, successful disposition and development of the properties is expected to generate longterm fiscal benefits to the City, including property tax revenue, development impact fees, and potential land sale or participation proceeds, depending on the development structure approved by Council.
REQUESTED COUCNIL DIRECTION
68 Item A.
Staff requests that the City Council provide direction regarding the preferred process for moving forward with selection of a development partner for the City’s former Fort Ord parcels.
Specifically, Council may:
• Direct staff to pursue coordinated discussions with MPP and IL Housing Solutions; • Direct staff to conduct a targeted solicitation and review process with interested Fort Ordexperienced developers; or • Direct staff to prepare and issue a new, comprehensive Request for Proposals.
Staff will proceed consistent with Council’s direction and return with appropriate agreements and recommendations for consideration.
Respectfully Submitted,
_______________________________
John Guertin
City Manager
Attachments:
• IL Housing Solutions Letter of Interest
• Del Rey Oaks Master Development Opportunity (2018 RFP) 69 Item A.
Developing the future of Del Rey Oaks
The City of Del Rey Oaks is pleased to present the opportunity to engage in a public-private partnership to master develop a location on the Monterey peninsula located on the former Fort Ord Military Installation. Del Rey Oaks envisions an addition to our community that incorporates cultural, recreational, residential, and commercial uses. Public investment in the area will include $8 million for road improvements on South Boundary Road and additional funding for trail and utility infrastructure. 70 Item A.
Del Rey Oaks California
Development Opportunity
The City invites Letters of Interest for a master planned development that complements our existing community.
Developers are encouraged to consider a development with combination of the following priority elements (not all elements have to be included):
Cultural - Community Center with Performing Arts and Art Exhibition Space, Nature Center, and Library.
Recreational - Recreational Trail, Parks, Sports Fields, and Courts.
Commercial and Residential– Café, Restaurants, Local Vendor Market, Mixed-Income Multifamily and Single Family Residential, Flex Industrial, and Hotel.
Community Serving– Outdoor Space/Public Plaza, Teen Activity Center, Primary School, Classroom, and PreSchool/Day Care.
Developer Submittal Requirements
Qualified developers are asked to submit a Letter of Interest with the following:
• General site concept or ideas that conform with the above vision. This may include overview of design, proposed land uses, renderings, etc. Detailed site plans are not required at this time. • Project team member qualifications
• Demonstration of financial capacity to develop the Project as proposed. • At least three representative projects of similar scale and type. • Experience with California development and Federal reuse development. • Contact information for public-agency references from previous projects.
Further information will be requested from selected development teams.
Preliminary Timeline
• Release of Offering Memorandum…………………………………………………………………….……October 4. 2019 • Submittals Due………..……………………………………………………………………………………..October 25, 2019 • Developers Notified of Preliminary Determination……………………….…………………………...November 15. 2019 • Selected Applicants Present to Council…………………………………….………………………….November 26, 2019 Additional steps may be identified throughout the application review process. The City reserves the right to interview selected applicants and request additional information such as detailed site and financial plans.
If you would like more information, including detailed instructions on submit a proposal, please contact Kim Carvalho at [email protected] or 831.394.8511. More information can be found on the Del Rey Oaks website at www.delreyoaks.org/development
71 Item A.
The Opportunity:
Partner with the City of Del Rey
Oaks to Master develop a 230 acre
community. The City has $8 million
dedicated for the improvement of
South Boundary Road.
The Environment:
The site is central to the Monterey Peninsula and is the sunbelt which enjoys more sunny days that its’ neighbors. The location borders the 14,650 acre Fort Ord National Monument with 86 miles of rugged trail. It is the gateway to the Laguna Seca Raceway which is home to annual races such as the Sea Otter Classic, Rolex Monterey Motorsports Reunion, Monterey Grand Prix, Superbikes World Championship, and the Trans Am SpeedFest. This location is minutes away from the Monterey Peninsula Regional Airport, Cannery Row, Fisherman’s Wharf, and Pebble Beach, home of the world famous Pebble Beach Pro Am and Concours d’Elegance.
72 Item A.
Del Rey Oaks California
The Space
APN 031-191-026
Acreage +/- 230
Zoning Neighborhood Commercial with Visitor Overlay
(C-1-V)
Water 183 acre feet of Potable Water
Max Building Height 30 Feet
Ownership City of Del Rey Oaks
The City will consider zoning changes to make the right project feasible. 73 Item A.
74 Item A.
75 Item A.
DATE: February 24, 2026
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Receive a Status Update on the Former Garden Center Building in Work Memorial Park
CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378 as it is an organizational activity of the City that will not result in direct or indirect physical changes in the environment.
Recommendation
Receive a status update regarding the former Garden Center location.
Discussion
Staff will provide a verbal report regarding:
• the status of the Garden Center
• potential economic development opportunities and constraints of the parcel • interpretation of the deed restriction
Fiscal Impacts
There are no fiscal impacts associated with receiving this report.
Respectfully Submitted,
______________________________
John Guertin
City Manager
Attachment:
1. 2021 EPS Market Potential & Development Outlook Report Staff Report
76 Item B.
M E M O R A N D U M
To: John Guertin, City of Del Rey Oaks
From: David Zehnder and Tom Martens
Subject: City of Del Rey Oaks-Owned Property Opportunities and Constraints Review; EPS #212028
Date: December 9, 2021
I n t r o d u c t i o n
The City of Del Rey Oaks (City) retained Economic & Planning Systems, Inc. (EPS) and subcontractor Denise Duffy & Associates (DD&A) to assess the market potential and development/reuse outlook for 4 Cityowned parcels.
As part of the assessment, EPS has analyzed demand and supply characteristics and trends in the City and surrounding areas to evaluate potential market demand for both residential and nonresidential space.
This memorandum includes:
Assessment of the physical and planning attributes of the sites. Assessment of key demographic trends related to demand for housing.
A review of the existing housing stock in the City and housing market in the City and surrounding areas.
Assessment of local nonresidential real estate market indicators. Estimate of existing retail leakage and implications for additional retail support.
Identification of potential development options for City and community consideration.
Summary charts and figures are provided in the text of this memorandum; detailed tables are provided in the Appendix and referenced as needed.
77 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 2
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx E c o n om i c S umm a r y , S i t e A n a l y s i s , a n d R e c omm e n d a t i o n s
The City has the ability to address housing needs and pursue a more balanced community through a strategic approach to the disposition and development of 4 City-owned sites (Figure 1). Goals for development may include fiscal sustainability, habitat protection, inclusionary housing, and others. The City has both a resource-constrained situation and an advantageous regional market position, and there is ample ability to use public-private partnerships (P3) in the evaluation and implementation of development on all of its parcels.
Figure 1. Key Sites
Source: Denise Duffy & Associates, Inc.
Based on analysis by DD&A, the following four tables provide an evaluation of the City-owned land assets.
78 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 3
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Land Inventory—Site 1
Land Inventory/Summary of Key Sites
Location 1 Summary Description
Map Designation
(2019 HE)
Consistent with 2019 Housing
Element (See Figure 4)
APN 031-191-026-000
Acreage 232.03
Description of Existing
Use
The site is currently undeveloped,
and a part of former Fort Ord.
Surrounding Land Uses No developed land uses surround the site. The site is bound by South Boundary Road to the south.
An approved RV Resort is planned for the area located directly east of the site. The site is bound on the west by General Jim Moore Boulevard to the southwest, vacant property owned by the Kranyaks further to the north, and Fort Ord National Monument to the northeast.
Land Use Designation General Commercial –
Neighborhood Commercial with
Visitor overlay – (GC (C-1-V))
Access/Circulation The site has current access via a dirt road on the south side of the parcel on South Boundary Road, a two-lane road.
General Jim Moore Boulevard, an arterial two-lane road, is can also provide future access to the site.
Zoning Neighborhood Commercial with
Visitor Overlay – (C-1-V)
Infrastructure
Development constraints
(environmental,
floodplains, etc.)
The site was previously used by former Fort Ord Military Base and portions of the property were found to have Unexploded Ordnances (UXO). Removal of UXO was conducted by the Army. However, in accordance with regulatory restrictions, additional environmental insurance and clearance by Department of Toxic Substances Control (DTSC) regulatory agencies as well as restrictive covenants on use of the site are required consistent with the State requirements.
Development Restrictions
(easements/covenants)
Covenants and restrictions required per DTSC requirements for residential use.
Monterey County GIS
Data/Potential Concerns
Moderate to High Erosion Hazard, within the 660' buffer of Active/Potentially Active Faults, Moderate Archaeological Sensitivity, and Monterey Spineflower Critical Habitat.
Source: Denise Duffy & Associates, Inc.; EPS.
Water/Sewer: The site is vacant and has no infrastructure onsite. Underground water, recycled water and wastewater pipeline improvements are located along General Jim Moore Blvd and are planned to continue on South Boundary Road.
Water service is provided by the Marina Coast Water District (MCWD). Sanitary sewer is to be provided by the Seaside Sanitation District with connection to regional system.
Other Utilities: There are no visible above-ground power lines on site. Energy would be provided by Pacific Gas & Electric (PG&E). Cable, Internet & Phone would be provided by Comcast or AT&T.
The site is approximately 232 acres of vacant, undeveloped land with gradual slopes dominated by chaparral and oak trees/oak woodland in the interior of the site. Currently, the City’s adopted Redevelopment Plan identifies up to 200 residential units onsite. The City would need to complete a general plan amendment or specific plan and rezoning to specifically allow residential development. The parcel is bordered by the City of Seaside to the north, Fort Ord National Monument to the east, and City of Monterey to the south along South Boundary Road. The site is partially level towards South Boundary Road. Through the Fort Ord Base Reuse Plan Capital Improvement Program, water and sewer is available adjacent to the site along General Jim Moore Blvd. Infrastructure for non-potable water is currently not available; proposed developments relying on the use of non-potable water will be responsible for obtaining delivery of the water to the development site. Supplemental water sources are considered unlikely in the foreseeable future. 79 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 4
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Land Inventory—Site 1A
Land Inventory/Summary of Key Sites
Location 1A Summary Description
Map Designation
(2019 HE)
Consistent with 2019 Housing
Element (See Figure 4)
APN 031-091-027-000, 031-191-028-000
Acreage 6.03, 11.84
Description of Existing
Use
The site is currently undeveloped,
and a part of former Fort Ord.
Surrounding Land Uses An undeveloped open space/habitat is to the northwest between the site and General Jim Moore Blvd. Further west across Gen Jim Moor Blvd is the Monterey Peninsula Regional Park District (MPRPD) Frog Pond Wetland Preserve. Development near the site is a City of Monterey storage yard to the southeast on Ryan Ranch Road. Undeveloped land is to the north, west, and east of the site.
Land Use Designation General Commercial –
Neighborhood Commercial with
Visitor overlay – (GC (C-1-V))
Access/Circulation Existing access to the site is available via South Boundary Road, on the northern side of the site. There is no direct access to the southern portion of the site from Hy 218.
Zoning Neighborhood Commercial with
Visitor Overlay – (C-1-V)
Infrastructure
Development constraints
(environmental,
floodplains, etc.)
The primary physical constraint to the site is its sloping grade toward 218. However, approximately half of the site is gently sloping and would be considered developable.
Development Restrictions
(easements/covenants)
Covenants and restrictions required per DTSC requirements for residential use.
Monterey County GIS
Data/Potential Concerns
Moderate to High Erosion Hazard, within the 660' buffer of Active/Potentially Active Faults, possessing Slopes Greater Than 25%, Moderate Archaeological Sensitivity, and Monterey Spineflower Critical Habitat.
Source: Denise Duffy & Associates, Inc.; EPS.
Water/Sewer: The site is vacant and has no infrastructure onsite. Underground water, recycled water and wastewater pipeline improvements are located along General Jim Moore Blvd and are planned to continue on South Boundary Road.
The Water Allocation for the site is 10 acre-feet per year. Water service is provided by the Marina Coast Water District (MCWD).
Other Utilities: There are no visible above-ground power lines on site. Energy would be provided by Pacific Gas & Electric (PG&E). Cable, Internet & Phone would be provided by Comcast or AT&T.
The entire site is approximately 18 acres of undeveloped land with rolling slopes dominated by chaparral and oaks near South Boundary Road. The site is steep along a trail on the south boundary near the City of Monterey storage yard and bordering Site 2 and slopes downward to South Boundary Road. The City would need to designate this site to allow residential use. There are no water or sewer lines serving the site. Site constraints are similar to the Site 1, but fewer issues related to UXO. The site is partially level near South Boundary Road, sloping to the hillside visible from that roadway. A portion of the site slopes steeply toward Highway 218). The site is near a former Fort Ord property owned by the City of Monterey and adjacent to the City of Monterey storage yard. 80 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 5
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Land Inventory—Site 2
Land Inventory/Summary of Key Sites
Location 2 Summary Description
Map Designation
(2019 HE)
Consistent with 2019 Housing
Element (See Figure 4)
APN 259-011-025-000
Acreage 17.7
Surrounding Land Uses
Land Use Designation
Access/Circulation
Zoning Neighborhood Commercial with
Visitor Overlay – (C-1-V)
Infrastructure
Development constraints
(environmental,
floodplains, etc.)
The shape is triangular and narrows at the north end of the property at the Hy 218/General Jim Moore Boulevard intersection.
A portion of the site is considered wetlands and within a floodplain. There is also steep terrain and existing trees/forest. The site environmental considerations, access and steep terrain significantly limit developable acreage. Biological and habitat are major constraints to the site as well. Depending on the design and type of development, noise from 218 and Monterey Airport present possible constraints on the portion of the site closest to 218.
Development Restrictions
(easements/covenants)
Covenants and restrictions required per DTSC requirements for residential use.
Monterey County GIS
Data/Potential Concerns
Low to High Erosion Hazard, Low to High Liquefaction Susceptibility, within the 660' buffer of Active/Potentially Active Faults, Slopes Greater Than 25%, Moderate Archaeological Sensitivity, and Monterey Spineflower Critical Habitat.
Source: Denise Duffy & Associates, Inc.; EPS.
The site is currently undeveloped
and not used.
The site is approximately 17.7 acres of undeveloped land forested with oaks. Approximately 3 to 4 acres may be considered for development due to natural resource constraints and steep terrain on a portion of the site. There is no existing site access although it is accessible from Hy 218 or its intersection with General Jim Moore Blvd. The viewshed looking southwest from the site would include condominiums, the Monterey Airport, and the Loyal Order of Moose building. The site is owned by the City and zoned for visitor serving uses, per the City’s General Plan. Improvements are needed for access from the roadway Canyon Del Rey/Hy 218. Rezoning for residential use would be required. Development onsite is considerably constrained by environmental factors and water availability. The site was the subject of a City RFP, and two submittals were received.
Caltrans would require an encroachment permit and upgrade to access would be extensive to meet their standards.
Water/Sewer: The City’s allocation under the Monterey Peninsula Water Management District (MPWMD) and within the CalAm service area. There is a Cal-Am water distribution main in Canyon Del Rey Boulevard; however, a moratorium is currently in effect on new connections within the Cal-Am system. Without prior water usage, it is unlikely that this property would be able to connect to the Cal-Am system in the near term or unless/until a supplemental water source can be secured and permitted. A water source is not developed on the property. Two test wells were drilled over two decades ago. [1] Other Utilities: There are visible above-ground power lines at the northern and southern ends of the site along Hy 218. Cable, Internet & Phone would be provided by Comcast or AT&T.
[1] Two test wells were drilled over two decades ago; however, the wells were never completed. During an RFP process for use of this property, one of the wells on the property was located (1999 well) and results of a December 1999 test for water capacity and quality was found. According to the document, the well produced a sustainable discharge rate of about 10 gallons per minute and the quality was determined to be quite poor due to high salinity. New tests and well expansion/updating would be needed to confirm yield from the well and the water would need to be treated to meet county standards, assuming MPWMD allowed use of this well on the site.
Access is not currently provided by General Jim Moore Blvd as the subject's frontage is below road grade and within the floodway. The southern boundary fronts along Del Rey Gardens Drive, a private driveway that extends from Canyon Del Rey Blvd to the Monterey City School District's equipment yard. This driveway is a two-lane road with curbs and gutters, and the intersection is improved with a center tum lane. Access from this road is not currently provided and the border is fenced with cyclone fencing. The ability to utilize this driveway for access is limited by the relatively steep topography throughout the southern end of subject's property, which includes slopes greater than 30 percent. Without a title report, it is also unknown if the subject has also rights to this private driveway. The property has 1,900± feet of frontage along the east side of Hy 218/Canyon Del Rey Blvd. There is no existing improved access to the site from 218.
An undeveloped open space/habitat is to the northwest. Also, to the northeast is undeveloped Site 1A. To the immediate south are the Monterey Peninsula Unified School District's administrative offices and maintenance yard and the Ryan Ranch Business Park. The Monterey Peninsula Unified School District Services Center and City of Monterey storage yard includes several buildings and parking areas. Residential and some commercial uses border the site across Hy 218 to the west of the site.
Description of Existing
Use
General Commercial –
Neighborhood Commercial with
Visitor overlay – (GC (C-1-V))
81 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 6
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Land Inventory—Site 3
Land Inventory/Summary of Key Sites
Location 3 Summary Description
Map Designation
(2019 HE)
Consistent with 2019 Housing
Element (See Figure 4)
APN 012-551-006-000
Acreage 13.5
Surrounding Land Uses
Land Use Designation Public/Quasi-Public – P
Zoning City Parkland – (C-1-V) Access/Circulation
Infrastructure
Development constraints
(environmental,
floodplains, etc.)
The site contains a flood zone along Canyon del Rey Creek in the southern portion of the site. Constraints also include wetlands/ riparian vegetation growing on most of the site. The site is downgrade from neighboring parcels on all sides.
Development Restrictions
(easements/covenants)
Part of a larger parcel which include portions of the City Work Memorial Park. The parcel was dedicated to the City and there may be restrictions on use based upon dedication/covenant on the site.
Monterey County GIS
Data/Potential Concerns
Monterey County GIS lists Low to High Variable Liquefaction Susceptibility, within the 660' buffer of Active/Potentially Active Faults, featuring Slopes Greater Than 25%, and being within a Flood Zone/Floodway. [1] A nearby small, trianglular, City-owned parcel was omitted from those identified for analysis by the City for this study as it was deemed too small and irregular to support development.
Source: Denise Duffy & Associates, Inc.; EPS.
Description of Existing
Use
There are two ways to access the site: Angelus Way to the east by the garden center, and off of Hy 218 to the west behind the Safeway grocery.
Water/Sewer: Water is currently provided to the building(s) through California American Water (Cal-Am). Future expansion of water service for development would depend upon water availability, including existing restrictions of water allocations being lifted and extension of utility service. While the property has an on-site well, it is not known if this may be repurposed for development use (subject to MWPMD and State Division of Drinking Water and local environmental health requirements).
Other Utilities: All other services are currently provided on the site.
The area focus for this study is between Wilson Drive behind the Safeway on the west edge of the parcel to the cul-de-sac below the Church of the Oaks to the east, which is approximately 13.5 acres. There are two existing buildings on the site and the surrounding grounds are used to serve the retail business. Canyon del Rey Creek runs along the southern portion of the property and a portion of the site is floodplain, between the west boundary of the site (potentially out of the floodplain) and the garden center to the east. The site is in a small depression and a row of trees, and an uphill slope separates the site from housing to the south. The property is accessed off Angelus Way to the south of Canyon Del Rey Road (Hy 218) where it meets Rosita Road. There is some availability of land outside the existing development and resource constraints; water, floodplain and creek resources are constraints to any development in the vacant area or land near the creek. FORTAG has proposed a trail segment through the site to separate active transportation from Hy 218. A secondary driveway access is available on the western side of the property behind Safeway and the commercial center and would require further Portion of interest currently used as circulation improvements. The site was previously used as a golf driving range. open space. Other existing uses of
the site include Hana Gardens Del
Rey Oaks garden center and public
tennis courts. Residential neighborhoods are situated to the north across Hy 218, to the east, and along the south perimeter of the property, behind a buffer of trees; a large commercial shopping center with parking, restaurants, grocery store, and gas station, sits approximately ¼-mile to the west of the site; the Hana Gardens Del Rey Oaks garden center and Church of the Oaks are located east of the site on Angelus Way.
82 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 7
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Land Inventory—Site 4
Land Inventory/Summary of Key Sites
Location 4 Summary Description
Map Designation
(2019 HE)
Consistent with 2019 Housing
Element (See Figure 4)
APN 012-521-004-000
Acreage 10.33
Surrounding Land Uses
Access/Circulation
Land Use Designation Public/Quasi-Public – P Infrastructure Zoning City Parkland – (C-1-V)
Development constraints
Development Restrictions
(easements/covenants)
Part of a larger parcel which include portions of the City Work Memorial Park. The parcel was dedicated to the City and there may be restrictions on use based upon dedication/covenant on the site.
Monterey County GIS
Data/Potential Concerns
Low, Moderate, High Erosion Hazard; Low to High Liquefaction Susceptibility; Slopes Greater Than 25%; and within the 660' buffer of Active/Potentially Active Faults.
Source: Denise Duffy & Associates, Inc.; EPS.
The area of interest is approximately 1.5 acres of developed land on the east side of Del Rey Park. The site is currently a flat, paved parking lot used for City of Del Rey Oaks vehicles. It is downslope from Hy 218 and the Del Rey Oaks City Hall as well as downslope from housing separated by trees and greenspace south of the site along Via Verde. A Fort Ord Regional Trail and Greenway (FORTAG) trail has been proposed along the south boundary the site, following the existing service road and would cross Hy 218. The site has been previously developed and likely has existing utility access. There is a potential hazard for road noise from Hy 218 as well as hazardous cleanups due to the current use as a vehicle storage lot.
Adjacent and nearby land uses include residences and park space. To the west of the site is Del Rey Park as well as residential housing separated from the site by a wall of trees and an uphill grade. To the east across Hy 218 is the Monterey Peninsula Regional Park District (MPRPD) Frog Pond Wetland Preserve.
The portion of interest is currently a
fenced paved parking lot for the
City of Del Rey Oaks.
Del Rey Park comprises the rest of
the parcel.
Description of Existing
Use
Although the southern edge of the site borders Canyon del Rey Creek and is within its Flood Zone/Floodway, the creek appears to be deep and narrow and poses less of a developmental constraint compared to Site 3.
Water/Sewer: Water is provided via an existing well.
Other Utilities: There is existing electricity service. Cable, Internet & Phone would be provided by Comcast or AT&T.
Current access is from Hy 218 to the east. Potential access from the west via existing gated service road south of the site, which connects Hy 218 and Angelus Way/parking for Del Rey Park. 83 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 8
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx S um m a r y o f F i n d i n g s
Market Context
The population of Del Rey Oaks is older, wealthier, more educated, and less diverse than in the surrounding areas, although these contrasts are decreasing. With the exception of former Fort Ord land, the City is mostly built out and has not increased its housing supply significantly in the last 30 years. The City’s housing prices, while higher than the immediate surrounding area, are typical for the coastal Monterey County cities between Marina and Carmel-by-the-Sea.
The local economy of coastal Monterey continues to be heavily reliant on tourism, with more than a quarter of current jobs in the area in accommodation and food services, although there is a growing health care and social assistance sector. In the immediate areas around the City, there has also been strong growth in the professional, scientific, and technical services sector. The growth in these sectors combined with high occupancy rates in newer, quality office and flex spaces indicate potential demand for additional workspace development. However, rents have not increased to the level that would likely support construction of new speculative space without a primary tenant identified. More than 55 percent of employees in the coastal cities in Monterey County live outside the area, commuting in for work and residing in communities that are more affordable. The current draft Regional Housing Needs Allocation calls for 396 housing units across 4 affordable income categories to be added in the City between 2023 to 2031.
The City’s small size and somewhat peripheral location limit the potential for additional retail space. Existing shopping nodes outside the City that are able to capture a significant share of regional household spending are expected to continue to dominate brick-and-mortar spending for comparison shopping goods, such as apparel and home furnishings. However, the City currently captures significantly more grocery sales than supported by its residents because of the existing Safeway pulling household grocery spending from surrounding communities. In addition, the City receives an influx of restaurant spending because of a handful of high-volume establishments that are able to capitalize on the visibility and accessibility to motorists entering and exiting the area on Monterey-Salinas Highway (SR 68). Specific findings include:
Static population and household growth despite great need. Housing production in Del Rey Oaks has been minimal. Moderately rising incomes, in the 2- and 3-mile radius of Del Rey Oaks, point to continued growth in demand for new housing, while a growing cohort of seniors in the City points to a potential need for specialized housing types and health and social services to support this population. However, incomes in the surrounding areas are likely not high enough to support the purchase of new construction of high-end housing, although estate or executive housing could be feasible, given the views available from the sites to the northeast of SR 218. There is an inflow/outflow ratio of about 230 percent, with more than half of the employees in the coastal cities living outside the area, many likely living in a “drive until you qualify” market that offers housing opportunities more accessible to low-income earners. See Figure 2.
Ability to capture tourism and visitor-based sectors. These are key economic drivers in the broader area. Although the City is generally insulated from most of the tourism and visitor-related activity, it is well-positioned to capture spending from visitors and commuters 84 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 9
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) accessing the area via SR 68, as well as WeatherTech Raceway Laguna Seca crews and spectators. In addition, there could be an opportunity to capitalize on existing nearby military and educational sectors or capture some of the growth in health care and professional, scientific, and technical services employment.
Mid-range residential price niche. Del Rey Oaks provides a middle-ground alternative to the very affluent Monterey Peninsula communities to the west and the less affluent cities along the southern Monterey Bay shoreline, with relatively moderate housing prices overall compared with the region. However, the lack of significant housing production throughout the region suggests that housing prices, both regionally and in the City, will continue to rise. Slow and deliberate performance in the Commercial Real Estate (CRE) sector.
Strong occupancy has not yet led to significant rent growth to support new construction across the general commercial real estate market. Higher occupancy rates and rents in newer buildings built since 1990 suggest additional demand for new-construction commercial space.
However, rents have not increased to the level that would likely support construction of new speculative space without a primary tenant identified.
For hotels, the Monterey-Seaside area consistently performed strongly before the pandemic-induced downturn. Occupancy levels have improved significantly since the depth of the pandemic but not fully to their pre-pandemic levels, likely because of reduced 29,682
Other Residents
Commuting to Jobs in
the Coastal Area
23,431
Coastal Area
Residents
Commuting
to Jobs
Outside of
the Area
24,000
Coastal Area Residents Who
Live and Work in the Area
Figure 2. Monterey County Coastal Cities Inflow/Outflow Commute Patterns Source: U.S. Census OnTheMap 2019; EPS.
85 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 10
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx business travel. Despite the moderated occupancy recovery, recent average room rates have surpassed their pre-pandemic levels.
Site Recommendations
Site 1 (Main Fort Ord Parcel). The primary use being considered for this parcel, from an economic development feasibility perspective, is residential.1 Accordingly, the City has issued a Request for Qualifications (RFQ) and has qualified two competing development entities, with the developer selection process expected to culminate in 2022. Although, the adopted Redevelopment Plan allocated 200 units to the site, market changes transpiring in the interim have eliminated golf course resort uses from consideration, with primary focus on a variety of residential prototypes. Current Marina Coast Water District (MCWD)2 water demand factors indicate potential for more than 200 units, though this and other assumptions for development and disposition will be vetted through a detailed due diligence phase by the selected site developer. The location of development will be driven by the approvals already granted by Department of Toxic Substances Control (DTSC) relating to the Army’s area of remediation. At this stage, topics for City/community consideration include:
Range of development prototypes and amount of affordable housing. The site has the capacity to accommodate a wide variety of residential unit types. Overall preferences for single-family versus multifamily products, the importance of creating a robust mix to help meet Regional Housing Needs Allocation (RHNA) figures, and community preferences may influence the degree to which various categories of affordable housing are sought within the overall development envelope.
Activating commercial uses. As discussed below, other nearby parcels may have the ability to house various facets of commercial development sought by existing and new residents of Del Rey Oaks. These uses may be located off-site or on the Fort Ord parcel. Open space, parks, and community amenities. Beyond the planned Fort Ord Regional Trail and Greenway (FORTAG) trail, the City has the ability to influence the type and magnitude of recreational, civic, and cultural amenities to be included on the site.
Sites 1A and 2 (“18-acre parcel” and “17-acre parcel”). These parcels are being considered as a potential regional park, with early discussions revolving around the potential sale to habitat interests. As an option, and dependent on the resolution of the Cal-Am moratorium, these sites each have the ability to also include some modicum of commercial development, potentially positioned as a way to offset or help fund the improvement and maintenance of the sites. The late Don Orosco developed a project vision for the site, included in Appendix Figure A-8, illustrating one approach that could be taken to activating and adding value to these 1 The topography of the site, in combination with market factors, makes large-scale commercial uses very unlikely to be feasible. Detailed feasibility metrics are not appropriate for this memorandum, as it is anticipated the City will enter into negotiations with a qualified development entity, where land price and other transaction terms will be negotiated.
2 MCWD currently provides water services; Seaside County Sanitation is the current provider of wastewater services.
86 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 11
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) sites as a potential additional source of City cash flow. As discussed in the market review, a small hotel, coupled with select retail and commercial enterprises, could be a viable concept if skillfully implemented. The combination of habitat, recreation, and experiential retail and accommodations could be a compelling adjunct to the City and substantially improve the City’s budget. For example, a 50-room hotel could provide annual transient occupancy tax (TOT) exceeding $200,000 per annum, assuming average room rates of $160 per night or higher and 70 percent occupancy.
Site 3 (old driving range behind Safeway). This 13.5-acre parcel is being positioned to accommodate a creative proposal to create a high-end boutique garden center, potentially activated with cafés and other commercial uses along the FORTAG trail. With all services available, assuming the on-site well is viable, this site has an unusual combination of an excellent regional retail location—the only parcel owned by the City to have that—combined with very challenging and unique development conditions. The adjacent Safeway, at some point, may be up for revisioning/repositioning, at which time potential exists to “think big” about a larger mixed-use concept. In the foreseeable future, the City may want to retain control of the parcel by extending a shorter term ground lease, while it explores the ultimate development/disposition strategy for this site and this important entry to Del Rey Oaks.
Site 4 (RV storage behind City Hall). This 1.5-acre parcel is situated behind the City Hall building and has all infrastructure on site. It is well-situated to house industrial and storage uses not dependent on large traffic volumes. This parcel has been considered for small-scale cannabis businesses in the past as a potential ground lease. The site is also an attractive near-term sale option in its as-is state. Specific attention will need to be paid to the interface between potential industrial uses and the FORTAG trail.
S u p p o r t i n g A n a l y s i s : D em o g r a p h i c a n d M a r k e t C o n d i t i o n s
Key demographic findings and real estate market conditions are presented below. For several topics, Esri’s Business Analyst was used to compare the City’s demographics with those of the surrounding areas, using 2-mile and 3-mile rings from the center of the City.3 As shown in Figure 3, the 2-mile circle contains nearly the entire City and a significant portion of Seaside, north of Del Rey Oaks. The 3-mile circle contains nearly all of Seaside and a portion of southeast Monterey, as well as portions of unincorporated Monterey County. Detailed demographic trends are summarized in Table A-1.
3 These areas are defined as a circle with a radius of 2 miles or 3 miles as measured from a point at the intersection of Canyon Del Rey Boulevard (State Route 218) and Work Avenue. This geography is used for demographic analyses throughout this report. Except as noted, the larger geographies include the smaller geographies.
87 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 12
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Figure 3. Demographic Study Areas
Population and Households
The overall number of City residents has been relatively stable since 2010. Current population estimates show that the City lost residents between 2010 and 2021, although the overall change (-0.2 percent) is negligible. These trends hold for the surrounding areas as well. The areas within the 2-mile and 3-mile rings experienced population growth rates of 0.1 percent or less. The City also lost households over this timeframe, going from 701 households in 2010 to an estimated 689 in 2021. The areas within the 2-mile and 3-mile rings experienced negligible household growth during this period. One area where the City does differ significantly from the surrounding area is in the average household size. Del Rey Oaks’ average household size of 2.3 people is notably lower than the surrounding area, with average household sizes of 2.8 to 2.9 persons.
These trends—stable or declining population and household growth and a smaller average household size than the surrounding area—are projected to continue through 2026.
The City’s lower average household size is driven by a large share of 1- and 2-person households compared to the surrounding area. Households with 2 people or fewer make up 71.7 percent of all households in the City, compared to just 57.2 percent of households within 2 miles of the City.
88 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 13
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) In addition, Del Rey Oaks has a much smaller concentration of larger (4 or more people) households. Households with 4 or more people are only 15.5 percent of all households in Del Rey Oaks, compared to 26.5 percent of households in the 2-mile ring surrounding the City. Lastly, Del Rey Oaks has a higher concentration of seniors living alone (15.5 percent of all households) than the area within 2 miles of the City (11.4 percent of all households).
Race
Mirroring trends occurring through metropolitan areas in California,4 the City is becoming more racially and ethnically diverse. Between 2010 and 2021, the share of residents identifying as non-Hispanic White fell from 76.2 percent to 70.7 percent, as shown in Figure 4. Over the same time period, the share of Hispanic or Latino residents increased from 10.4 percent to
14.3 percent. The significant growth in the Hispanic or Latino population was accompanied by more modest growth in the Asian and multiracial population. These trends in racial and ethnic change are comparable to trends occurring in the surrounding areas. However, the City has a much larger share of White residents and a much smaller share of Hispanic or Latino and Black residents than the surrounding area. For example, the area within 3 miles of the City is
49.4 percent Hispanic or Latino, while the City is 14.3 percent Hispanic or Latino. The difference in the share of non-White residents between the City and surrounding areas has been decreasing over time. Between 2010 and 2021, the share of Hispanic or Latino residents in the City increased by 37.6 percent. Over the same time period, the share of Hispanic or Latino residents in the area within 3 miles of the City increased by only 14.7 percent.
Figure 4. Race and Ethnicity in the City of Del Rey Oaks and Surrounding Areas 4 https://bayareaequityatlas.org/sites/default/files/Final_9_County_BayAreaProfile_0.pdf 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
City of Del Rey
Oaks
2-Mile Ring 3-Mile Ring
Race and Ethnicity in the City of Del Rey Oaks and
Surrounding Areas
Some other race
Native Hawaiian and Other
Pacific Islander
American Indian and Alaska
Native
Two or more races
Black or African American
Asian
Hispanic or Latino origin (of
any race)
White
89 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 14
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Age
As shown in Table A-1, the median age of residents in Del Rey Oaks increased from 46.0 to
49.4 between 2010 and 2021. Previous research on other jurisdictions in the United States suggests that this increase is the result of existing residents aging in place, rather than the in-migration of older residents.5 6 Del Rey Oaks’ median age is also significantly higher than the surrounding area—the area within 2 miles of the City has a median age of 36.3, and the area within 3 miles of the City has a median age of 36.9. As shown in Figure 5, the increase in Del Rey Oaks’ median age is largely driven by a significant growth in the share of residents aged 65 and older, which increased from 19.0 percent in 2010 to 26.6 percent in 2021. This cohort of residents was the only age group to increase their relative share of Del Rey Oaks’ residents over this time period. The areas surrounding the City also saw significant growth in their 65 and older population, although both the growth rate and relative share of this population is lower in surrounding areas than in the City.
Figure 5. Age Distribution in the City of Del Rey Oaks and Surrounding Areas Educational Attainment
As shown in Figure 6, Del Rey Oaks’ population is more highly educated than the surrounding area. While only 24.7 percent of adults in Monterey County have a bachelor’s degree or higher,7
55.9 percent of Del Rey Oaks residents have a bachelor’s degree, including the 22.6 percent of the City’s population that has a graduate or professional degree. Similarly, the share of residents 5 https://www.huduser.gov/publications/pdf/hud-11687.pdf 6 https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2016/06/20/can-car-centric-suburbsadjust-to-aging-baby-boomers 7 https://www.ppic.org/blog/geography-of-educational-attainment-in-california/ 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
City of Del Rey Oaks 2-Mile Ring 3-Mile Ring
2021 Age Distribution
65 + years
55 - 64 years
45 - 54 years
35 - 44 years
20 - 34 years
5 - 19 years
0 - 4 years
90 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 15
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) who have not graduated high school is much lower in the City (2.4 percent) than the area within 2 miles of the City (18.0 percent).
Figure 6. Educational Attainment in Del Rey Oaks and Surrounding Areas Income
The City’s median household income is also much higher than the surrounding area. Between 2010 and 2021, the median household income grew by $6,420, adjusting for inflation, as shown in Table A-1. The estimated 2021 median household income for Del Rey Oaks of $103,703 is 48 percent higher than the median household income for the area within 2 miles of the City, which is $70,066. As shown in Figure 7, more than a quarter of the City’s households have incomes above $150,000, while just 10 percent of households earn under $25,000. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
City of Del Rey
Oaks
2-Mile Ring 3 - Mile Ring
Educational Attainment
Graduate or
professional degree
Bachelor's degree
Some college or
associate's degree
High school graduate
(includes equivalency)
Less than high school
graduate
91 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 16
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Figure 7. City of Del Rey Oaks Household Income Distribution Conclusions from Demographic Analysis
Population and household growth, combined with moderately rising incomes, in the 2- and 3-mile radius of Del Rey Oaks point to continued growth in demand for new housing, while a growing cohort of seniors in the City points to a potential need for specialized housing types and health and social services to support this population. However, incomes in the surrounding areas are likely not high enough to support the purchase of new construction of high-end housing, although estate or executive housing could be feasible, given the views available from the sites to the northeast of SR 218.
K e y E c o n om i c T r e n d s
Employment
As Del Rey Oaks is largely composed of residential land uses, employment in the City is limited.
The Census Bureau’s OnTheMap service estimated that in 2018, the latest year for which data are available, there were approximately 290 jobs within the city limits, as shown in Table A-3.
The largest group of jobs in the City is in the retail trade sector, which includes workers employed at grocery stores, gas stations, and pharmacies. Within a 3-mile radius of the City, where there were 23,867 jobs in 2018, the largest sectors are retail trade, professional, scientific, and technical services, health care and social assistance, and accommodation and food services. Retail Trade jobs experienced little growth in this time, growing only 6.6 percent, but Health Care and Social Assistance jobs grew by more than 70 percent, and professional, scientific, and technical services jobs grew by more than 30 percent. Educational services, which was a significant source of jobs in 2010 in this geography, lost nearly one-fifth of its jobs between 2010 and 2018.
Less than
$25,000,
10%
$25,000 -
$75,000,
24%
$75,000 -
$150,000,
40%
More than
$150,000,
26%
Del Rey Oaks Household Income Distribution
92 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 17
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) In the larger South Monterey Bay Cities8 geography, accommodation and food services, which make up more than a quarter of all jobs, experienced 37.3 percent growth between 2010 and 2018, highlighting the recovery of the tourism industry following the recession. Retail trade jobs also experienced stronger growth in this geography compared to the City and immediate surroundings. Figure 8 illustrates the change in employment by sector between 2010 and 2018 for the larger South Monterey Bay area.
Figure 8. South Monterey Bay Cities Employment by Sector, 2010 & 2018 Table 1 shows employment projections by industry for Monterey County. Both educational, health care, and social assistance services and leisure and hospitality are projected to have double-digit growth between 2018 and 2028. As these industries represent a significant share of total employment in the vicinity of the City, as well as the larger South Monterey Bay Cities area, strong primary employment growth in these sectors is expected for these areas. 8 Includes the Cities of Marina, Seaside, Sand City, Del Rey Oaks, Monterey, Pacific Grove, Carmel bythe-Sea, and the Census Designated Place of Del Monte.
Construction
Retail Trade
Professional, Scientific,
and Technical Services
Administration & Support,
Waste Mgmt. and Remed.
Educational Services
Health Care and Social
Assistance
Arts, Entertainment,
and Recreation
Accommodation and
Food Services
Other Services
Public Administration
0 10,000
20,000
30,000
40,000
50,000
60,000
2010 2018
South Monterey Bay Cities Employment By Sector,
2010 & 2018
Note: Includes Marina through Carmel. Only larger sectors identified. For more detail see Appendix. 93 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 18
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Table 1. Employment Projections for Monterey County, 2018–2028 Retail Spending
Figure 9 illustrates the relative alignment of potential retail spending by Del Rey Oaks households and the captured retail spending in the City.9 Spending categories in which the City captures greater spending than its population would support are depicted as a retail surplus; those in which greater spending flows out of the City are depicted as deficits (i.e., gaps). The most notable characteristic of retail spending is the large amount of grocery spending in the city limits that comes from outside Del Rey Oaks. This large grocery surplus is driven by the Safeway at the corner of N Fremont Street and Canyon Del Rey Boulevard, which attracts the bulk of its shoppers from outside the City and benefits from its location at the corner of two major thoroughfares.
Large retail gaps are noted both in the City and surrounding areas in the furniture and home furnishings, clothing and clothing accessories, and sporting goods, hobby, book, and music categories. These types of goods tend to be purchased at big box stores or large regional shopping malls with good access to regional/subregional trade area households, or online. The City’s current retail voids would not necessarily support additional retailers in those categories; however, any strong retail concept that is well executed and able to pull spending from the larger area (i.e., a destination retailer) could potentially succeed, assuming adequate access and visibility. Additional household spending from new residential development on the Fort Ord site and beyond could help support additional specialty grocery retail, particularly if it is positioned to 9 Retail gap analysis based on Esri Business Analyst estimates, which are based on Bureau of Labor Statistics (BLS) spending estimates and household characteristics from the Census Bureau. Esri is a highly regarded national GIS-based data provider that compiles source data from numerous government and other sources, which are then estimated to the current date and projected forward for user-selected geographies using proprietary algorithms.
Growth
Item Total Share Total Share 2018 - 2028
Mining and Logging 0% 200 200 0% 0%
Total Farm 28% 61,400 55,000 29% 12%
Construction 3% 7,100 6,400 3% 11%
Manufacturing 3% 5,300 5,400 2% -2%
Trade, Transportation, and Utilities 13% 27,700 26,700 13% 4% Information 1% 1,000 1,000 0% 0%
Financial Activities 2% 4,400 4,500 2% -2%
Professional and Business Services 7% 14,900 14,000 7% 6% Educational Services (Private), Health Care, and Social Assist. 10% 23,400 19,900 11% 18% Leisure and Hospitality 13% 28,100 25,300 13% 11%
Other Services (excludes 814-Private Household Workers) 3% 5,300 5,100 2% 4% Government 17% 35,700 34,500 17% 3%
Total Employment 214,500 198,000 8%
Source: State of California Economic Development Department Local Employment Projections 2018 2028
94 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 19
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) also draw additional shoppers seeking specialty items from beyond Del Rey Oaks. The detailed retail spending data are located in Table A-2.
Figure 9. Retail Spending Gap Analysis
Source: Esri; EPS.
Conclusions from Economic Trends
Tourism and visitor-based sectors are key economic drivers in the broader area. The City is generally insulated from most of the tourism and visitor-related activity. However, the City is well-positioned to capture spending from visitors and commuters accessing the area via SR 68, as well as WeatherTech Raceway Laguna Seca crews and spectators. In addition to potential TOT, visitor spending on prepared meals and other retail goods can add significant sales tax revenues. In addition, as evidenced by activity in Ryan Ranch, there could be an opportunity to capture some of the growth in health care and social services and professional, scientific, and technical services employment.
R e s i d e n t i a l R e a l E s t a t e M a r k e t
Housing Stock
According to the California Department of Finance, Del Rey Oaks’ housing stock consists of 741 units, with no units produced or demolished since 2010, as shown in Table 2. Of those 741 units, the vast majority (79 percent) are single-family detached units, while all multifamily housing represents less than a fifth (18 percent) of housing units. Table 3 shows that nearly all housing units in Del Rey Oaks were built before 1985, with nearly three quarters (74 percent) being built before 1965. Building permit data from the City confirm that no new units were built ($5 M) $0 M $5 M $10 M $15 M $20 M $25 M
Auto Parts, Accessories & Tires
Furniture & Home Furnishings
Electronics & Appliances
Grocery Stores
Specialty Food Stores
Beer, Wine & Liquor
Health & Personal Care
Clothing & Clothing Accessories
Sporting Goods, Hobby, Book, Music
Miscellaneous Retail
Food Services & Drinking Places
Retail Deficit and Surplus
Deficit | Surplus
95 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 20
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx between 2015 and 2019, as shown in Table 4. However, the City did permit one new housing unit, an accessory dwelling unit, in 2020. Among its neighbors, the City has the lowest absolute and population-adjusted housing production numbers between 2015 and 2019.
Table 2. Units in Structure—City of Del Rey Oaks
Table 3. Units by Age of Structure
Item
Total
Housing
Units
Single
Detached
Single
Attached
Two to
Four Five Plus
Mobile
Homes
Item
2010 741 79% 3% 3% 15% 0%
2021 741 79% 3% 3% 15% 0%
Source: California Department of Finance E-5 Series; EPS.
Note: California Department of Finance estimate does not include the Accessory Dwelling Unit that the City of Del Rey Oaks permitted in 2020.
Age of Structure Total Units [1] Percent
Less than 10 years 3 0%
10 - 19 years 0 0%
20 - 29 years 17 2%
30 - 39 years 116 16%
40 - 49 years 59 8%
50 or more years 550 74%
Total 745 100%
[1] American Community Survey estimates for total unit count are not consistent with California Department of Finance estimates. This table provides a reasonable estimate of the proportion of units within various age categories, not an exact count.
Source: American Community Survey 5-Years Estimates 2015 - 2019 Table B25034; EPS.
96 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 21
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Table 4. Housing Units Permitted by Year, 2015—2020
Housing Price
Since 2005, overall trends in housing price in Del Rey Oaks have been comparable to the surrounding cities, as shown in Figure 10. As recorded by the Zillow Home Value Index (ZHVI), which measures the typical value for homes in the 35th to 65th percentile of a given geography, home prices experienced steadily increasing growth from 2005 to 2006. After peaking in 2006, home prices declined rapidly during the Great Recession, reaching their nadir in 2012. As of 2020, the latest year for which the ZHVI data are available, home prices in Del Rey Oaks and surrounding cities still had not reached their inflation-adjusted peak prices of 2006.
Total 2010 Units per
Item 2015 2016 2017 2018 2019 2020 2015 - 2020 Population 1,000 residents Del Rey Oaks 0 0 0 0 0 1 1 1,624 0.6
Carmel 0 0 0 7 0 0 7 3,722 1.9
Marina 61 74 217 121 76 75 624 19,718 31.6
Pacific Grove 25 4 1 13 5 33 81 15,041 5.4
Sand City 0 0 0 0 4 0 4 334 12.0
Seaside 1 1 1 3 5 238 249 33,025 7.5
Salinas 53 93 78 166 108 210 708 150,441 4.7
Monterey 57 2 29 4 3 13 108 27,810 3.9
Source: California Department of Housing and Community Development 5th Cycle Housing Element Annual Progress Report; 2010 Decennial Census; EPS.
97 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 22
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Figure 10. Zillow Home Value Index, 2005—2020
As shown in Table 5, Del Rey Oaks’ housing prices and price growth have consistently been towards the median when compared to neighboring coastal cities in Monterey County, including Marina, Pacific Grove, Sand City, Seaside, and Monterey.
Table 5. Zillow Home Value Index by Year, 1996-2020
Conclusions from Residential Real Estate Market
Del Rey Oaks provides a middle-ground alternative to the very affluent Monterey Peninsula communities to the west and the less affluent cities along the southern Monterey Bay shoreline, $-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Zillow Home Value Index, 2005 - 2020
Del Rey Oaks Marina Pacific Grove
Sand City Seaside Monterey
City 1996 2000 2005 2010 2015 2020 % Growth
Item (2010 - 2020)
Del Rey Oaks 218,450 $ 333,517 $ 715,988 $ 442,138 $ 511,931 $ 680,763 $ 54% Marina 196,149 $ 293,690 $ 676,689 $ 375,342 $ 469,975 $ 646,310 $ 72% Pacific Grove 341,061 $ 539,225 $ 998,878 $ 706,077 $ 799,069 $ 987,793 $ 40% Sand City 190,682 $ 301,346 $ 662,171 $ 375,447 $ 434,894 $ 589,636 $ 57% Seaside 184,170 $ 284,715 $ 689,450 $ 333,056 $ 423,678 $ 594,220 $ 78% Monterey 293,446 $ 466,961 $ 883,392 $ 606,453 $ 690,654 $ 853,196 $ 41% Source: Zillow; EPS.
[2] All values in nominal dollars.
[1] The Zillow Home Value Index reflects the typical value for homes in the 35th to 65th percentile range. 98 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 23
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) with relatively moderate housing prices overall compared with the region. However, the lack of significant housing production throughout the region suggests that housing prices, both regionally and in the City, will continue to rise.
C omm e r c i a l R e a l E s t a t e M a r k e t
Table A-4 shows trends in the commercial real estate market in the 2-mile radius around the City between 2010 and 2019. The retail space market has been extremely tight, with occupancy above 97 percent every year since 2015 and only 5,800 square feet of new space coming onto the market in that same time. Usually, this low level of vacancy would drive significant price increases for retail space, followed by new construction to capture these higher rents. Rents increased notably between 2015 and 2017 but have not increased significantly since 2017 and are not high enough to support new construction. The stability of retail rent levels could be a function of the quality of space available or long-term leases that stabilize rents at the time of lease signings. Indeed, when examining commercial real estate buildings constructed after 1990, as shown in Table A-5, which are presumed to be of higher quality than the average retail space, rents are approximately $6 per square foot higher than the general sample. However, even among those spaces, rents stabilized after 2018.
Among all office spaces, significant vacancy rates have been the most noteworthy trend between 2010 and 2020. Since 2014, the occupancy rate has not exceeded 92 percent, as shown in Figure 11. However, higher quality office space built since 1990 has had occupancy rates above 98 percent for the past 2 years, as shown in Figure 12, and data from 2021 show that rents have increased significantly since 2018.
Figure 11. Commercial Real Estate Occupancy
Source: Costar; EPS.
Occupied
Vacant
0.0 MSF
0.5 MSF
1.0 MSF
1.5 MSF
2.0 MSF
2.5 MSF
2016 2017 2018 2019 2020
Occupied and Vacant Commercial Real Estate,
2016 - 2020
Office Retail Industrial/Flex
99 Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 24
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Figure 12. Commercial Real Estate Occupancy, Buildings Constructed Since 1990 Source: Costar; EPS.
Relative to office and retail space, there is a lower supply of industrial space in the 2-mile radius around Del Rey Oaks, with the total inventory of industrial space being approximately 55 percent of the total retail space. Occupancy was strong above 98 percent between 2015 and 2018, even with the delivery of 65,000 square feet of new space in 2017. However, the addition of approximately 18,000 square feet in 2019 combined with another approximately 18,000 square feet of negative net absorption in 2020 and 2021 has pushed the current occupancy rate down to 93 percent. Rents for industrial space did increase from $13.14 per square foot to $16.56 per square foot since 2016, even with the higher vacancy rate over the last 2 years. Only 77,342 square feet of industrial space has been constructed since 1990, and rents are not significantly higher for newer industrial space. The map in Figure 13 illustrates the locations of industrial properties in the area that are included in the Costar data accessed for this analysis.
Occupied
Vacant
0.0 MSF
0.2 MSF
0.4 MSF
0.6 MSF
0.8 MSF
1.0 MSF
2016 2017 2018 2019 2020
Occupied and Vacant Commercial Real Estate,
2016 - 2020
Office Retail Industrial/Flex
Note: Includes spaces in buildings constructed 1990 or later. 100
Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 25
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Figure 13. Industrial Properties Within 3-Mile Radius of Del Rey Oaks Source: Costar.
(Note: Blue pins indicate properties known to be actively leasing or selling.) Flex space is the smallest category of commercial space examined in this report, with fewer than 600,000 square feet of total space across the 2-mile radius. Rent levels have been volatile, spiking to $18.55 per square foot in 2015 before dropping to $13.80 the very next year. Since 2018, rents have steadily increased each year to their current level of $18.30. Much of this volatility likely is due to the small sample size of flex space, whereby one or two lease signings can greatly impact the average rent for the overall category of space. Occupancy has been mostly stable since 2015, never dipping below 95 percent in this time frame. In 2020, approximately 54,000 square feet of new construction became available and was leased, pushing the average rent for post-1990 constructed flex space to $27.60 per square foot.
Hotel Market
The Monterey-Seaside area hotel market consistently performed strongly before the pandemicinduced downturn. Occupancy levels have improved significantly since the depth of the pandemic but not fully to their pre-pandemic levels, likely because of reduced business travel. Despite the moderated occupancy recovery, recent average room rates have surpassed their pre-pandemic levels as demand for drive-to destinations has increased. Figures 14 and 15 illustrate the local area hotel occupancy and room rate trends.
101
Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 26
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Figure 14. Hotel Occupancy
Figure 15. Hotel Room Rates
Comparable Land Sales
Analysis completed in 2019 for potential industrial use of the public works site identified several industrial or flex use comparable land sales with a per-acre value averaging about $400,000.
More recent land sales in the area indicate a wide range of potential value, based on specific location and intended land use, with prime retail and hotel sites garnering more than $1 million per acre. Less well-located commercial sites have seen sales in the $200,000 to $400,000 peracre range. The most recent comparable sales data for nearby Ryan Ranch were in the $200,000 range; however, several years have elapsed since any land sales occurred in the project.
Table 6 summarizes the comparable land sales data identified. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2015 2016 2017 2018 2019 2020 2021 YTD
Area Hotel Occupancy
Luxury - Upper Upscale - Upscale Upper Midscale - Midscale Source: Costar; EPS.
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
2015 2016 2017 2018 2019 2020 YTD
Area Hotel Average Daily Rates
Luxury - Upper Upscale - Upscale Upper Midscale - Midscale Source: Costar; EPS.
102
Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 27
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Table 6. Comparable Land Sales
Sale Date City Address Sale Price Acres Price per Acre On Market Proposed Use Sales Since 2019
5/11/21 Monterey 200 Barnet Segal Ln $ 4,750,000 16.96 $ 280,071 649 days Commercial/PUD 10/2/20 Seaside Fairway Dr & Fairway Ct $ 7,150,000 12.23 $ 584,628 NA SF Residential 9/30/20 Marina 3043 MacArthur Dr $ 17,114,000 77.40 $ 221,111 NA SF Residential 8/11/20 Seaside 1271 Canyon Del Rey $ 1,063,840 0.94 $ 1,131,745 1,439 days Retail - Hold 7/14/20 Seaside Broadway Ave $ 1,000,000 2.57 $ 389,105 1,405 days Commercial 5/19/20 Monterey 590 Perry Ln $ 2,420,000 1.82 $ 1,329,670 NA "Redevelopment"/Hold 12/20/19 Marina 120 Reservation Rd $ 2,700,000 1.92 $ 1,406,250 NA Hotel Average of per Acre Sale Price $ 763,226
Weighted Average Sale Price per Acre $ 317,971
Ryan Ranch Sales
3/16/18 Monterey 8 Lower Radsdale Dr $ 2,200,000 14.08 $ 156,250 268 days Commercial/Medical 8/5/17 Monterey 15 Ryan Ct $ 350,000 1.00 $ 350,000 316 days Office 3/17/16 Monterey 10 Ryan Ct $ 1,700,000 6.94 $ 244,957 NA Commercial 8/24/15 Monterey 6-8 Lower Ragsdale Dr $ 1,850,000 10.42 $ 177,543 426 days Office/Medical Average of per Acre Sale Price $ 232,187
Weighted Average Sale Price per Acre $ 188,039
2018 Industrial Analysis
12/21/18 Carmel Valley 00 Carmel Valley Rd $ 2,500,000 5.80 $ 431,034 8/13/18 Monterey 2969 Monterey Salinas Hwy $ 1,850,000 5.95 $ 310,924 8/15/18 Castroville 10241 Tembladera St $ 850,000 1.80 $ 472,222 12/29/17 Marina 3016 Del Monte Blvd $ 550,000 0.88 $ 625,000 8/5/17 Monterey 15 Ryan Ct $ 350,000 1.00 $ 350,000
Average of per Acre Sale Price $ 437,836
Weighted Average Sale Price per Acre $ 395,334
Source: Costar; EPS.
103
Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 28
Economic & Planning Systems, Inc. (EPS) Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Locations of the identified land sales are shown in Figure 16.
Figure 16. Map of Comparable Land Sales
104
Item B.
Memorandum: Del Rey Oaks City-Owned Property Market Overview December 9, 2021
Page | 29
Z:\Shared\Projects\SAC\212000\212028 DRO Parcel Evaluation\Report\212028 Parcel m01.1 12-09-21.docx Economic & Planning Systems, Inc. (EPS) Conclusions from Commercial Real Estate Market
Strong occupancy has not yet led to significant rent growth to support new construction across the general commercial real estate market. Higher occupancy rates and rents in newer buildings built since 1990 suggest additional demand for new-construction commercial space. However, rents have not increased to the level that would likely support construction of new speculative space without a primary tenant secured.
The hotel market in the area has exhibited consistently solid performance in the years leading up to the pandemic and appears on course to return to a similar level of performance. While hotel sector performance has been strong, historic occupancy rates do not indicate a significant undersupply of rooms. Therefore, hotel sizing should respond to localized demand factors. A moderate sized mid-range hotel in Del Rey Oaks could be positioned to capitalize on WeatherTech Raceway event attendees and other visitors to the Monterey Region, particularly those entering the area via SR 68.
A combination of limited supply and limited demand have historically resulted in a low volume of land sale activity in the area. Sales prices vary considerably depending on location and proposed use, with prime retail, hotel, and residential sites garnering the highest sales values. 105
Item B.
APPENDIX
106
Item B.
Prepared by EPS 12/9/2021 A-1
Table A-1 Demographic Assessment: Key Characteristics – City of Del Rey Oaks, 1-Mile Ring, and 2-Mile Ring Average Average
Item Estimated Annual Rate Projected Annual Rate
Census/ACS Estimated Projected Change of Change Change of Change Category 2010 2021 2026 2010-2021 2010-2021 2020-2026 2020-2026 City of Del Rey Oaks
Population 1,624 1,585 1,575 (39) -0.2% (10) -0.1%
Households 701 689 686 (12) -0.2% (3) -0.1%
Average Household Size 2.32 2.30 2.30 (0.02) -0.1% 0.00 0.0% Percent Owner-Occupied Units 73.8% 77.4% 77.7% 3.6% 0.4% 0.3% 0.1% Median Age 46.0 49.4 49.4 3.4 0.7% 0.0 0.0%
Median Household Income - nominal$ $81,154 $103,703 $108,378 $22,549 2.3% $4,675 0.9% Median Household Income - 2021$ [3] $97,283 $103,703 $99,311 $6,420 0.6% -$4,392 -0.9% 2-Mile Ring [1]
Population 15,981 16,152 16,257 171 0.1% 105 0.1%
Households 5,518 5,628 5,675 110 0.2% 47 0.2%
Average Household Size 2.9 2.8 2.8 (0.03) -0.1% 0.00 0.0% Percent Owner-Occupied Units 46.3% 50.6% 50.7% 4.2% 0.8% 0.1% 0.0% Median Age 35.0 36.3 36.8 1.3 0.3% 0.5 0.3%
Median Household Income - nominal$ N/A $70,066 $80,119 N/A N/A $10,053 2.7% Median Household Income - 2021$ [3] N/A $70,066 $73,416 N/A N/A $3,350 0.9% 3-Mile Ring [1]
Population 34,589 34,694 34,859 105 0.0% 165 0.1%
Households 11,947 12,074 12,145 127 0.1% 71 0.1%
Average Household Size 2.9 2.9 2.9 (0.02) -0.1% 0.00 0.0% Percent Owner-Occupied Units 48.1% 52.4% 52.8% 4.3% 0.8% 0.3% 0.1% Median Age 35.5 36.9 37.6 1.4 0.4% 0.7 0.4%
Median Household Income - nominal$ N/A $73,547 $82,918 N/A N/A $9,371 2.4% Median Household Income - 2021$ [3] N/A $73,547 $75,981 N/A N/A $2,434 0.7% Source: Esri; EPS.
[1] Based on a central point at the intersection of Canyon Del Rey Boulevard (State Route 218) and Work Avenue. [2] Esri household income forecasts adjusted to 2021$ based on annual average CPI change from 2015-2020 for West region urban workers in metros of 2.5 million or less. Median income shown for 2010 is 2011 figure from previous study, inflated/deflated per CPI change from 2011-2020. 107
Item B.
Prepared by EPS 12/9/2021 A-2
Table A-2 Retail Demand and Supply – City of Del Rey Oaks, 2-Mile Ring and 3-Mile Ring Retail Leakage/
Item Gap / (Surplus) Number of
Retail Industry Group [1] Demand Supply (Surplus) Factor Businesses City of Del Rey Oaks
Auto Parts, Accessories & Tires $608,712 $0 $608,712 100.0 0 Furniture & Home Furnishings $1,270,683 $0 $1,270,683 100.0 0 Electronics & Appliances $1,234,942 $757,672 $477,270 24.0 2 Grocery Stores $4,634,705 $25,822,970 ($21,188,265) (69.6) 2 Specialty Food Stores $382,350 $0 $382,350 100.0 0
Beer, Wine & Liquor $409,052 $0 $409,052 100.0 0
Health & Personal Care $2,380,268 $2,250,353 $129,915 2.8 1 Clothing & Clothing Accessories $2,377,524 $417,730 $1,959,794 70.1 1 Sporting Goods, Hobby, Book & Music $1,057,905 $669,883 $388,022 22.5 1 Miscellaneous Retail $1,281,209 $510,629 $770,580 43.0 1 Food Services & Drinking Places $3,654,220 $11,031,030 ($7,376,810) (50.2) 9 Subtotal [1] $19,291,570 $41,460,267 ($22,168,697) NA 17 2 - Mile Ring [2]
Auto Parts, Accessories & Tires $3,323,322 $3,771,207 ($447,885) (6.3) 4 Furniture & Home Furnishings $6,734,090 $3,006,849 $3,727,241 38.3 4 Electronics & Appliances $6,777,436 $8,700,006 ($1,922,570) (12.4) 7 Grocery Stores $26,477,189 $39,551,000 ($13,073,811) (19.8) 12 Specialty Food Stores $2,205,770 $6,234,080 ($4,028,310) (47.7) 3 Beer, Wine & Liquor $2,283,788 $1,305,380 $978,408 27.3 2 Health & Personal Care $12,768,054 $9,450,197 $3,317,857 14.9 4 Clothing & Clothing Accessories $13,728,654 $3,153,928 $10,574,726 62.6 8 Sporting Goods, Hobby, Book & Music $6,004,005 $4,673,442 $1,330,563 12.5 5 Miscellaneous Retail $6,845,815 $10,640,939 ($3,795,124) (21.7) 10 Food Services & Drinking Places $20,579,445 $29,732,591 ($9,153,146) (18.2) 34 Subtotal [1] $107,727,568 $120,219,619 ($12,492,051) NA 93 3 - Mile Ring [2]
Auto Parts, Accessories & Tires $7,294,090 $24,127,391 ($16,833,301) (53.6) 19 Furniture & Home Furnishings $14,822,381 $10,575,482 $4,246,899 16.7 15 Electronics & Appliances $14,939,007 $23,733,370 ($8,794,363) (22.7) 13 Grocery Stores $57,290,628 $118,028,649 ($60,738,021) (34.6) 28 Specialty Food Stores $4,764,003 $16,567,040 ($11,803,037) (55.3) 8 Beer, Wine & Liquor $4,987,767 $2,292,523 $2,695,244 37.0 4 Health & Personal Care $27,980,375 $34,312,807 ($6,332,432) (10.2) 14 Clothing & Clothing Accessories $29,960,892 $11,648,777 $18,312,115 44.0 20 Sporting Goods, Hobby, Book & Music $13,081,279 $12,021,444 $1,059,835 4.2 15 Miscellaneous Retail $14,978,950 $47,702,007 ($32,723,057) (52.2) 36 Food Services & Drinking Places $44,782,955 $87,243,047 ($42,460,092) (32.2) 113 Subtotal [1] $234,882,327 $388,252,537 ($153,370,210) NA 285 Source: Esri; EPS.
[1] Excludes auto dealers and repair shops, gasoline stations, and nonstore retailers. [2] Based on a central point at the intersection of Canyon Del Rey Boulevard (State Route 218) and Work Avenue. 108
Item B.
Prepared by EPS 12/9/2021 A-3
Table A-3 Employment by Industry for Del Rey Oaks and Surrounding Areas Item 2010 2018 Change 2010 2018 Change 2010 2018 Change 2010 2018 Change Total Total
(2010 to
2018) Total Total
(2010 to
2018) Total Total
(2010 to
2018) Total Total
(2010 to
2018)
Agriculture, Forestry, Fishing and Hunting 0 0 - 90 67 (25.6%) 101 345 241.6% 457 174 (61.9%) Mining, Quarrying, and Oil and Gas Extraction 0 0 - 0 0 - 0 0 - 0 0 - Utilities 0 0 - 59 465 688.1% 66 465 604.5% 164 898 447.6% Construction 25 18 (28.0%) 759 1,119 47.4% 849 1,251 47.3% 1,469 2,135 45.3% Manufacturing 0 0 - 725 541 (25.4%) 782 718 (8.2%) 719 765 6.4% Wholesale Trade 0 0 - 397 182 (54.2%) 732 361 (50.7%) 815 423 (48.1%) Retail Trade 25 113 352.0% 2,180 2,256 3.5% 2,467 2,629 6.6% 4,239 4,980 17.5% Transportation and Warehousing 0 0 - 885 926 4.6% 918 993 8.2% 603 446 (26.0%) Information 0 2 - 826 250 (69.7%) 847 271 (68.0%) 653 404 (38.1%) Finance and Insurance 17 8 (52.9%) 325 506 55.7% 593 735 23.9% 777 847 9.0% Real Estate and Rental and Leasing 1 0 (100.0%) 171 168 (1.8%) 417 466 11.8% 718 744 3.6% Professional, Scientific, and Technical Services 10 7 (30.0%) 1,268 1,715 35.3% 1,715 2,259 31.7% 2,425 2,895 19.4% Management of Companies and Enterprises 0 0 - 361 582 61.2% 406 671 65.3% 623 680 9.1% Administration & Support, Waste Mgmt. and Remed. 9 7 (22.2%) 715 783 9.5% 1,133 899 (20.7%) 1,572 2,793 77.7% Educational Services 0 0 - 1,013 696 (31.3%) 2,033 1,645 (19.1%) 4,777 5,318 11.3% Health Care and Social Assistance 9 26 188.9% 907 2,008 121.4% 1,765 3,002 70.1% 5,580 7,205 29.1% Arts, Entertainment, and Recreation 0 0 - 106 233 119.8% 387 636 64.3% 1,162 1,555 33.8% Accommodation and Food Services 19 44 131.6% 2,102 2,195 4.4% 3,653 4,430 21.3% 9,140 12,549 37.3% Other Services (excluding Public Administration) 35 50 42.9% 715 1,153 61.3% 1,246 1,590 27.6% 2,412 2,319 (3.9%) Public Administration 0 15 - 265 475 79.2% 311 501 61.1% 1,511 1,810 19.8% Total Jobs 150 290 93.3% 13,869 16,320 17.7% 20,421 23,867 16.9% 39,816 48,940 22.9% Source: US Census OnTheMap; EPS.
[1] Based on a central point at the intersection of Canyon Del Rey Boulevard (State Route 218) and Work Avenue. [2] Includes the cities of Marina, Seaside, Sand City, Del Rey Oaks, Monterey, Pacific Grove, Carmel By-the-Sea, and the Census Designated Place of Del Monte Forest City of Del Rey Oaks 2-Mile Radius [1] 3-Mile Radius [1] South Monterey Bay Cities 109
Item B.
Prepared by EPS 12/9/2021 A-4
Table A-4 Commercial Real Estate Market Summary: 2-Mile Radius – All Building Ages 2015-20 2015-20
Item Absolute Annual Rate
Category 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Change of Change Retail Inventory (Sq Ft) 2,120,548 2,150,820 2,155,576 2,168,576 2,168,576 2,168,576 2,168,576 2,169,476 2,163,664 2,168,564 2,168,564 2,168,564 (12) 0% Occupancy (Percent) 95% 95% 96% 96% 96% 97% 97% 97% 98% 98% 98% 99% 2% NA Net Absorption Sq Ft (Total) (39,741) 16,461 20,510 19,318 7,357 13,953 6,090 (5,599) 13,377 17,334 1,553 9,834 (12,400) NA Deliveries (Sq Ft) - 30,272 6,000 13,000 - - - 900 - 4,900 - - - NA NNN Rent (Overall) $22.36 $19.33 $20.16 $19.25 $17.15 $15.66 $19.48 $22.17 $23.84 $22.67 $21.41 $21.50 $5.75 8% Office
Inventory (Sq Ft) 1,874,928 1,874,928 1,874,928 1,874,928 1,874,928 1,874,928 1,874,928 1,874,928 1,884,659 1,884,659 1,884,659 1,884,659 9,731 0% Occupancy (Percent) 91% 94% 92% 93% 90% 91% 86% 86% 87% 92% 89% 90% -2% NA Net Absorption Sq Ft (Total) (3,525) 43,488 (32,386) 21,788 (52,024) 5,634 (97,656) 15,213 19,499 86,127 (46,217) 9,091 (51,851) NA Deliveries (Sq Ft) - - - - - - - - 9,731 - - - - NA
NNN Rent (Overall) $21.08 $20.37 $20.74 $21.88 $21.00 $21.75 $21.41 $21.21 $21.54 $21.50 $22.17 $22.03 $0.42 0% Industrial Inventory (Sq Ft) 1,105,917 1,105,917 1,107,558 1,107,558 1,107,558 1,107,558 1,107,558 1,172,558 1,172,558 1,190,542 1,190,542 1,190,542 82,984 2% Occupancy (Percent) 94% 96% 98% 97% 96% 98% 98% 99% 100% 95% 94% 93% -4% NA Net Absorption Sq Ft (Total) 21,385 17,292 28,951 (11,867) (16,505) 24,972 (1,264) 80,942 3,592 (37,616) (12,621) (9,059) (37,593) NA Deliveries (Sq Ft) - - 7,631 - - - - 65,000 - 17,984 - - - NA NNN Rent (Overall) $8.39 $8.52 $8.50 $10.71 $11.53 - $13.14 $12.85 $15.10 $13.68 $15.60 $16.56 - 8% [1] Flex Inventory (Sq Ft) 539,982 539,982 539,982 539,982 539,982 539,982 539,982 539,982 539,982 539,982 593,934 593,934 53,952 2% Occupancy (Percent) 92% 91% 92% 94% 94% 96% 98% 98% 97% 97% 95% 95% -1% NA Net Absorption Sq Ft (Total) (10,154) (6,250) 5,236 13,926 (929) 11,020 7,707 4,604 (8,306) (1,469) 45,250 (940) 34,230 NA Deliveries (Sq Ft) - - - - - - - - - - 53,952 - - NA
NNN Rent (Overall) $13.20 $13.20 $12.56 $15.00 $17.06 $18.55 $13.80 - $15.89 $17.40 $18.30 $18.30 ($0.25) 0% Source: CoStar; EPS.
[1] Industrial NNN Rent Growth measures 2014 - 2020 growth due to lack of data for 2015. Notes 110
Item B.
Prepared by EPS 12/9/2021 A-5
Table A-5 Commercial Real Estate Market Summary: 2-Mile Radius – Buildings Constructed Since 1990 111
Item B.
Prepared by EPS 12/9/2021 A-6
Table A-6 Hotel Performance Trend Metrics
2021 Difference
Item [1] 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD (2011-2021) [2] Total % Inventory (Rooms)
Luxury - Upper Upscale - Upscale 3,783 3,783 3,783 3,783 3,781 3,775 3,810 3,810 3,810 3,820 3,814 3 31 0.1% Upper Midscale - Midscale 1,172 1,172 1,172 1,172 1,155 1,156 1,165 1,165 1,165 1,165 1,165 (1) (7) (0.1%) Inventory (Buildings)
Luxury - Upper Upscale - Upscale 23 23 23 23 23 23 23 23 23 23 23 - - 0.0% Upper Midscale - Midscale 26 26 26 26 25 25 25 25 25 25 25 (0) (1) (0.4%) Occupancy Rate (Percentage)
Luxury - Upper Upscale - Upscale 67.2% 70.7% 72.0% 74.1% 75.3% 75.5% 74.8% 76.6% 75.9% 44.5% 62.5% -5% (0) - Upper Midscale - Midscale 60.5% 62.6% 64.1% 66.8% 69.9% 72.2% 73.4% 72.8% 71.9% 46.7% 63.5% 3% 0 - Average Daily Rate Luxury - Upper Upscale - Upscale $184.74 $193.42 $198.75 $209.38 $220.92 $227.85 $233.32 $250.87 $267.90 $223.11 $317.76 $38.37 $4.26 - Upper Midscale - Midscale $124.37 $130.78 $135.55 $142.01 $151.80 $158.68 $161.91 $172.44 $182.05 $137.10 $194.24 $12.73 $1.41 - Source: CoStar data retrieved November 2021; EPS.
[1] Reflects hotels in the cities of Monterey, Seaside, Pacific Grove, Pebble Beach, and Sand City. Unless otherwise noted, data is for each year ending in December. [2] YTD Rev PAR difference is for 2011-2020 as data for 2021 is not yet available.
Average Annual
Change (2011-2021)
112
Item B.
Prepared by EPS 12/9/2021 A-7
Table A-7 Included Hotel Inventory
Hotels by Class and Location Address Hotels by Class and Location Address Luxury - Upper Upscale - Upscale Upper Midscale - Midscale Monterey Monterey
Hotel Abrego 755 Abrego St 2012 93 Best Western Plus Monterey Inn 825 Abrego St 1937 80 Hilton Garden Inn Monterey 1000 Aguajito Rd 2006 204 Monterey Bay Lodge 1042 Del Monte Ave 1967 45 Portola Hotel & Spa At Monterey 271 Alvarado St 2006 379 Hotel 1110 1110 Del Monte Ave 1929 15 Marriott Monterey 350 Calle Principal 2005 341 Cannery Row Inn 200 Foam St 1987 32 Monterey Plaza Hotel 400 Cannery Row 1985 290 Blu Pacific Hotel 2050 Fremont St 1968 47 Spindrift Inn 648-654 Cannery Row 1984 45 Ramada Monterey 2058 Fremont St 1978 47 InterContinental The Clement Monterey 750 Cannery Row 2008 208 Quality Inn Monterey 2075 Fremont St 1977 42 The Casa Munras Hotel & Spa 700 Munras Ave 1948 154 Best Western De Anza Inn 2141 Fremont St 1979 43 Hyatt Regency 1 Old Golf Course Rd 2012 560 The Stevenson Monterey 675 Munras Ave 1962 51 Hotel Pacific 300 Pacific St 2006 105 Munras Inn 1010 Munras Ave 1980 29 Monterey Tides 2600 Sand Dunes Dr 2001 196 Best Western Park Crest Inn 1100 Munras Ave 1954 53 Wave Street Inn 571-585 Wave St 1988 32 Comfort Inn Monterey Peninsula Airport 1200 Olmsted Rd 1981 46 Monterey Bay Inn 242 Cannery Row 1984 49 Merritt House Inn 386 Pacific St 1979 25 Mariposa Inn & Suites 1386 Munras Ave 1982 50 Colton Inn 707 Pacific St 1979 50 Bide-A-Wee Inn & Cottages 221 Asilomar Ave 2002 18 Holiday Inn Express Monterey Cannery Row 443 Wave St 1995 43 Hampton Inn Monterey 2401 Del Monte Ave 1986 49
Pacific Grove Victorian Inn 487 Foam St 1976 70
Asilomar Conference Center 800 Asilomar Blvd 1915 312 Avid Monterey 2113 N Fremont St 2022 42 Gosby House Inn 643 Lighthouse Ave 1887 22 Red Lion Hotel Monterey 1425 Munras Ave 1967 80 Martine Inn 255 Ocean View Blvd 1900 25
Green Gables Inn 301 Ocean View Blvd 1960 11 Pacific Grove Butterfly Grove Inn 1073 Lighthouse Ave 1959 31
Pebble Beach Seven Gables Inn 555 Ocean View Blvd 2000 25 The Inn At Spanish Bay 2700 17 Mile Dr 1987 269 Rosedale Inn 775 Asilomar Blvd 1989 19 Casa Palmero Pebble Beach 1518 Cypress Dr 1999 24 Best Western The Inn & Suites Pacific Grove 660 Dennett St 1981 30 Lodge at Pebble Beach 17 Mile Dr 1919 202 Clarion Collection Hotel Pacific Grove 1038 Lighthouse Ave 1953 25 Sea Breeze Inn and Cottages 1100 Lighthouse Ave 1937 45 Sand City
Courtyard By Marriott Salinas Seaside 705 Tioga Ave 2023 126 Seaside Holiday Inn Express At Monterey Bay 1400 Del Monte Blvd 1983 143 Seaside
Embassy Suites by Hilton Monterey Bay Seaside 1441 Canyon del Rey Blvd 1995 225 Average 1973 46 Cambria Hotels & Suites Seaside Lightfighter Dr 2023 138 Residence Inn Salinas Seaside 740 Tioga Ave 2023 90 Total 1,207 Average 1983 160
Total 4,168
Source: Costar; EPS.
Year Built /
Renovated
No. of
Rooms
Year Built /
Renovated
No. of
Rooms
113
Item B.
Prepared by EPS 12/9/2021 A-8
Figure A-8
114
Item B.
Staff Report
DATE: February 24, 2026
TO: Honorable Mayor and Council Members
FROM: John Guertin, City Manager
SUBJECT: D1st Reading by Title Only of an Ordinance to Add Del Rey Oaks City Code Chapter
15.48, Section 140 to Prohibit Metal Detecting Activity on City Property That Was Part of the Former Fort Ord (Exempt from CEQA per Article 19, Section 15308, Class 8) CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378 as it is an administrative activity of the City that will not result in direct or indirect physical changes in the environment.
RECOMMENDATION
That the City Council introduce by title only, waive full reading, and pass a first reading of an ordinance to add Del Rey Oaks Code Chapter 15.48, Section 140 to prohibit metal detecting activity on City property that was part of the former Fort Ord.
POLICY IMPLICATIONS:
The mission of the Del Rey Oaks City Council is to “provide visionary policy and legislative leadership that assures a safe, healthy, and economically vibrant community.” The Council is also “committed to ensuring that Del Rey Oaks remains a safe and welcoming place to live, work, and visit.” This ordinance addition would place a prohibition on metal detecting activities on lands known to have unexploded ordnance.
FISCAL IMPLICATIONS:
There is no fiscal impact to the City beyond the codification costs for the ordinance.
ENVIRONMENTAL DETERMINATION:
The City of Del Rey Oaks has determined that the proposed action is categorically exempt from the California Environmental Quality Act (CEQA) 115
Item C.
pursuant to CEQA Guidelines Article 19, Section 15308, Class 8 because the ordinance involves procedures for protection of the environment.
ALTERNATIVES CONSIDERED:
The City Council could choose not to add Del Rey Oaks City Code Chapter
15.48, Section 140.
DISCUSSION:
The United States Army has completed the transfer of various former Fort Ord parcels to the City, some of which are known or suspected to be contaminated with unexploded ordnance and explosives (UXO). Prior to transferring such parcels, the Army completed UXO response actions as required by law.
However, even following the Army’s completion of UXO response actions, it is possible that some UXO materials may remain on the parcels.
In 2003, the City adopted Ordinance No. 259 (codified as Del Rey Oaks City Code Chapter 15.48) to regulate digging and excavation on the former Fort Ord due to the risks associated with potential remaining UXO. As part of that Ordinance, the City was required by resolution to designate all real property within the City’s land use jurisdiction that was formerly part of Fort Ord and which had been identified as the possible location of UXO as an ordnance remediation district (“ORD”. Pursuant to Del Rey Oaks Code Chapter 15.48, Sections 10-130, all of the regulations in Chapter 15.48 apply to Ordnance Remediation Districts (ORD).
In 2026, it was discovered that although excavation on Fort Ord parcels is prohibited in the City’s digging and excavation ordinance (Del Rey Oaks Code Chapter 15.48), metal detection was not specifically prohibited.
The City desires to amend Del Rey Oaks Code Chapter 15.48 to add a prohibition on unauthorized metal detecting activities on the former Fort Ord in the City’s land use jurisdiction to protect the public health and safety because unauthorized entry and/or metal detecting may result in lay persons encountering UXO, which puts them at immediate risk of death or injury if they do not have proper training, experience, or equipment to handle UXO safely.
As required by Del Rey Oaks Code Chapter 15.48, Section 130, City staff have consulted with the California Department of Toxic Substances Control (DTSC), who found the proposed ordinance changes to be adequate.
Attachments: Ordinance 323
Respectfully Submitted,
______________________________
John Guertin, City Manager
116
Item C.
ORDINANCE NO. _323_
AN ORDINANCE OF THE COUNCIL OF THE CITY OF DEL REY OAKS
PROHIBITING METAL DETECTING ACTIVITY ON CITY PROPERTY THAT WAS PART OF THE
FORMER FORT ORD
THE COUNCIL OF THE CITY OF DEL REY OAKS DOES ORDAIN, as follows:
SECTION 1:
WHEREAS, the United States Army transferred various parcels of the former Fort Ord military installation (“Fort Ord”) to multiple local governmental entities, including the City of Del Rey Oaks;
WHEREAS, some parcels on Fort Ord were contaminated with unexploded ordnance and explosives (“UXO”), which can be hazardous. Prior to transferring such parcels, the Army completed UXO response actions as required by law. However, even following the Army’s completion of UXO response actions, it is possible that some UXO materials may remain on the parcels;
WHEREAS, in 2003 the City adopted Ordinance No. 259 (codified as Del Rey Oaks City Code Chapter 15.48) to regulate digging and excavation on the former Fort Ord due to the risks associated with potential remaining UXO. As part of that Ordinance, the City was required by resolution to designate all real property within the City’s land use jurisdiction that was formerly part of Fort Ord and which had been identified as the possible location of UXO as an ordnance remediation district (“ORD”). Pursuant to Del Rey Oaks City Code Chapter 15.48 section 10-130, all of the regulations in Chapter 15.48 apply to ORD districts; WHEREAS, in 2026, it was discovered that although excavation on Fort Ord parcels is prohibited in the City’s digging and excavation ordinance (Del Rey Oaks City Code Chapter
15.48, Article 8), metal detection was not specifically prohibited; WHEREAS, the City desires to amend Del Rey Oaks City Code Chapter 15.48, to add a prohibition on unauthorized metal detecting activities on the former Fort Ord in the City’s land use jurisdiction to protect the public health and safety because unauthorized entry and/or metal detecting may result in lay persons encountering UXO, which puts them at immediate risk of death or injury if they do not have proper training, experience, or equipment to handle UXO safely;
WHEREAS, the City of Del Rey Oaks determined that the proposed action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Article 19, Section 15308, Class 8 because the ordinance involves procedures for protection of the environment.
NOW THEREFORE, the Del Rey Oaks 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. 117
Item C.
SECTION 3: Chapter 15.48, Section 140 is hereby added to read as follows:
“140 Prohibition of Metal Detection Activity.
It is unlawful for any person to engage in any unauthorized metal detection activity of any type on any property located within the district. This prohibition does not prevent metal detection activity if specifically authorized by the City as part of (1) a permit for development, (2) a City project on City land, or (3) if authorized by a state and/or federal agency for remediation or similar purposes.”
SECTION 4: All ordinances and parts of ordinances in conflict herewith are hereby repealed.
SECTION 5: If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason declared unconstitutional, invalid, or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or the effectiveness of the remaining portions of this chapter or any part thereof. The City Council hereby declares that it would have adopted this chapter notwithstanding the unconstitutionality, invalidity, or ineffectiveness of any one or more of its sections, subsections, sentences, clauses, or phrases.
SECTION 6: 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 Del Rey Oaks this _____ day of _______, 202_, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
APPROVED:
Mayor
118
Item C.
119
Item C.
Mayor Donaldson Report
Below is a summary of board meetings:
Transportation Agency for Monterey County
(TAMC)
January 28, 2026
TAMC Board Elects New Officers and Executive Committee Members The Board of Directors of the Transportation Agency for Monterey County elected the following members to serve as their officers and members of the Executive Committee:
• Chaps Poduri, Chair
• Luis Alejo, 1st Vice Chair
• Jose Rios, 2nd Vice Chair
• Wendy Root Askew, Past Chair
• Glenn Church, County Representative
• Dennis Donohue, City Representative
Their terms began upon their election at the beginning of January 28, 2026, Board meeting through the next election of officers in January 2027.
Draft 2026 Regional Transportation Plan Presentation and Public Hearing The Transportation Agency’s Board of Directors received a presentation on the Draft 2026 Monterey County Regional Transportation Plan, which sets the framework for future transportation investments and policies, aligning local projects with regional goals for safety, sustainability, and multimodal access.
The Transportation Agency prepares a Regional Transportation Plan (RTP) every four years, in coordination with the Association of Monterey Bay Area Governments (AMBAG), which prepares a Metropolitan Transportation Plan (MTP) and Sustainable Communities Strategy (SCS) for the three- county Monterey Bay region. These plans outline the region's priorities 120
Item A.
for meeting future transportation and mobility needs, consistent with the policy goals and objectives adopted by the Board, within the constraints of a transportation revenue forecast over the planning horizon of the documents.
The three components of the Regional Transportation Plan are:
• Policy Element communicates the goals and measurable objectives for improving the transportation system.
• Financial Element includes a forecast of revenues over the life of the plan. • Action Element includes a list of projects funded within the capacity of the funding forecast and meeting the goals and objectives identified in the document.
The Plan establishes a regional framework that influences transportation planning and investment decisions at the local level. Key implications for cities and the County include:
1. Consistency with Regional Goals
2. Integration with Sustainable Communities Strategy (SCS)
3. Funding Prioritization
4. Performance Monitoring
Following the presentation, the Board opened a public hearing on the Draft 2026 Regional Plan to receive public comments and noted that the deadline to submit written public comments on the Draft 2026 Regional Plan is January 31, 2026.
Draft 2026 Monterey County Regional Transportation Plan:
https://www.tamcmonterey.org/files/11b8701e1/2026+Monterey+County+Regional+Trans portation+Plan+-+DRAFT.pdf
TAMC Board Holds Gas Tax Replacement Study Session
The Transportation Agency’s Board of Directors received a presentation on revenue alternatives to replace the Gas Tax. The presentation is a follow-up to the Board’s request at their September 2025 meeting to have an in-depth study session on the topic to discuss how the alternatives would impact Monterey County residents.
Under the current Transportation Funding System, Transportation in California is financed through a blend of federal, state, regional, and local sources. In the "State and Local Transportation Full Needs Assessment – May 2025" California’s 10-year transportation funding needs total $756.8 billion, based on Regional Transportation Plans, fiscal needs surveys, and assessments of transit, climate adaptation, and tribal transportation.
Projected 10-year revenues are $541 billion after accounting for a $31 billion decline from reduced fuel consumption. This results in an estimated $215.7 billion shortfall. 121
Item A.
Declining statewide gas tax revenues will reduce the long-term funding available for transportation projects in Monterey County. Any future changes to the gas tax system, including a shift to a road user charge or higher vehicle registration fees, would directly influence the county’s ability to maintain stable revenue for roadway maintenance and improvements. At a high level, choosing a sustainable replacement mechanism will be essential to offset the projected statewide funding shortfall.
The two options that have the greatest potential to meet the need as presented to the TAMC Board of Directors were:
(1) A New Road User Charge. A road user charge is a fee based on the number of miles traveled, regardless of vehicle fuel source. Because the road charge will not diminish as drivers shift to zero-emission vehicles, it is regarded as a sustainable revenue source.
(2) Increasing Vehicle Registration Fees. An increase in the vehicle registration fee is a fee based on a vehicle's value and is agnostic to fuel source, fuel economy, and travel patterns. This source of revenue is regarded as sustainable because it would not diminish as drivers shift to zero-emission vehicles.
After an extensive and robust discussion, the TAMC Board of Directors directed staff to begin conversing with regional partners on the replacement to statewide gas tax that includes a Vehicle Registration Fee option that prioritizes affordability for rural residents.
Adaptive Systems are Installed on SR 68
Caltrans reported that the equipment and software for the adaptive AI system has been installed at the nine signalized intersections along Scenic Route 68. It is expected to be operational starting in May after Caltrans completes training and calibrates the system.
Data collection to be used for analysis will begin in May and will be ongoing for the next five years. Caltrans will provide TAMC’s Board of Directors with an update on the progress of the adaptive systems in the spring.
122
Item A.
Monterey One Water (M1W)
January 26, 2026
123
Item A.
Kim Shirley’s Council Report
for Tuesday, February 24, 2026
Monday, January 19th- Martin Luther King, Jr. March, Seaside- Kevin and I were grateful to march today along our fellow MPC colleagues and students. It was a large and heartwarming turnout. Given the state of our nation, it meant so much to walk among people who are dedicated to equality, kindness, and civil rights for everyone in our country.
Thank you, Seaside, for always hosting such an important event! Friday, January 23rd- ReGen Monterey Board Meeting- If there’s ever an award for “most likely to cry on the dais,” I’m pretty sure I’d sweep the category. My goodness! Beginning today’s meeting was a presentation of the winners for the SB1383 Edible Food Recovery Grants for FY 25/26. First, a little background, as you well know (hopefully!) SB 1383 is the legislation that directs organic waste into our yard waste stream for composting so as to avoid methane production that would occur if it were directed into our landfill.
Another part of this legislation is to also collect edible food from stores, restaurants, events, etc., which is still safe to eat, and deliver it to organizations that will collect the food and provide it to people in need. Every year, the city of Del Rey Oaks, along with all of the other jurisdictions on our peninsula, pays ReGen to help manage our efforts for this legislation. And part of that funding gets portioned out for grants to help support the edible food recovery actions. This year, we gave away 7 grants to the following agencies:
CSUMB Basic Needs, Gathering for Women, Meals on Wheels of the Monterey Peninsula, Veterans Transition Center of CA, All-In Monterey County, Christian Social Concerns, and the YWCA. The stories we heard of the need that was being filled by these organizations were so touching and impactful. We were all so happy that what was meant to be climate legislation is also making such a difference for those who need additional help throughout our communities. Granted, we were sad to hear the stories of such need, but we were happy that we could make a difference by supporting these organization who are doing great things for thousands of people. Tears of joy were abundant! Next, we kept the good vibes continuing in a different way by learning about the landfill emission research that’s being done by researchers from UC Davis and UC Berkeley. The purpose of their work is to study new technologies that can measure landfill methane emissions more accurately. In other words, we are lucky enough to try firsthand all of the fancy technology and learn a lot about our landfill through this partnership. The researcher who was presenting made it clear that it was ReGen’s willingness to share our information that made this partnership possible (makes me proud!). In the end, this participation will help other landfills manage their emissions and will help support the understanding of future emissions regulations, while allowing us to be a leader in this field.
I was grateful today to also receive an award of recognition for 5 years of service to ReGen Monterey. Vice Chair, Mayor Delgado, presented me with the award (“iron fist in a velvet 1 124
Item A.
glove”). My appointment to the ReGen board has been one of the most fulfilling positions I’ve ever held, so it’s truly been my honor. And after I received the award, I was lucky enough to present Supervisor Wendy Root Askew with her 5-year service award! We are so lucky to have her guidance, wisdom, and thoughtfulness on our board. Her contributions to our agency and board are always meaningful and well-respected by everyone.
The rest of the meeting was made up of updates from our Franchise Planning Committee and Technical Advisory Committee. In regards to the franchise planning group, please be aware that they will be seeking input from residents regarding our waste hauler, Green Waste Recovery. So if you’re one of the lucky ones to be asked to complete a survey (online, phone, or mail), please do so, as it will greatly inform this committee as they work towards our next steps for choosing our next garbage hauler. In addition, there will also be community meetings to provide additional input and thoughts on our current service, so make sure you watch for those dates (2/24, 2/25, and 2/26–check out the DRO website for details).
Tuesday, January 27th- City Council Meeting- We began tonight’s meeting with a presentation from Police Chief Chris Brouquin about our 2025 police statistics. In general, it seems that our number of arrests and violations has remained consistent over the years.
In the end, I had a few questions, one of which was asking him to address the issue of speeding in our city. The reason I asked was that I had a resident share about an incident he saw with someone speeding on Portola, and we also had a Carlton resident give a public comment, worried about the potential speeding we’ll see once Carlton is opened. In that conversation, I learned that we’d need to do surveys along our roads in order for our police to use speed radar guns, which would be an expensive process. I know we’ve talked in the past about speed bumps, but those slow down emergency vehicles and can be loud to those houses that surround the bumps. I also learned that when the city downloads the data from our speed radar signs, we don’t reach nearly the number of speeders as we might expect. I realize it might seem like a bigger issue, but unfortunately, there don’t seem to be many other options for interventions.
After the presentation and passing of the consent agenda, we addressed our new business of approving the FY 24/25 Annual City Audit. I spoke about this audit when I wrote about our finance committee meeting last month (I listed the meeting date as 1/16, but it was actually Thursday, 1/15). Nothing new was presented this evening, and again we’re all happy with the state of our city’s finances and its fiscal processes. I’m grateful for our city’s staff and the work they do to help prepare for this big task. I did comment on this item and pointed out the large unappropriated fund balance that we had at the end of the year ($2,039,478). I made the point of saying that I do appreciate how fiscally conservative our staff is, and I realize that we’re earning interest on that money. I also recognize that we’re limited in our revenue sources in Del Rey Oaks, but I also believe that the council should have discussions in our upcoming budget talks about how we might want to 2 125
Item A.
appropriate that money. It’s our residents’ tax money, and it should be used in ways that benefit them instead of having such a large amount sitting in the bank. If you feel this way, too, please reach out to me to share your thoughts! And also make sure you’re involved in our discussions as we enter into mid-year budget adjustments and budget planning in the spring. Ideally, we’d be doing our strategic planning in March, which you know I’ve been advocating for for many years now. It would be a perfect opportunity to engage our residents and the council on this topic. We’ll see if it happens! Wednesday, Feb. 4th- ReGen Monterey Finance Committee Meeting- Our first item of business was electing a new chair and vice chair. I was happy to pass off the chairship to Mayor Bruce Delgado, and Director Jerry Blackwelder continued on as vice chair. Next we reviewed a new purchasing policy which was far more detailed than our last one and increased the threshold for purchases that need to go to the Board for approval (went from $75,000 to $200,00). Some of the additional details included procurement processes, an emphasis on local preferences, and the incorporation of environmental considerations into purchasing. I’m grateful for our staff and our legal counsel for creating a policy that’s so detailed, providing clear direction for purchasing to both the staff and the board. With a few minor edits in wording, we voted to review this policy at the Board level.
Next was a discussion about a potential contract with Valley Recycling to bring in 5yrs worth of residual waste due to their expansion. Over the 5 yrs, it would use roughly 70% of 1 year of landfill space and bring in over $2 million/year. ReGen would be able to handle this increase in waste with our current staffing level. Given our needs for capital projects and planning in the next few years, our committee was in support of staff moving forward with negotiations for this contract, which will come before the full board this month.
Lastly, we reviewed our finance committee bylaws (no changes) and learned that there were no findings for our most recent audit, which is great news.
Monday, Feb. 9th- Monterey-Salinas Transit Board Meeting- Please see the MST board highlights in our agenda packet.
Wednesday, Feb. 11th- Seaside Groundwater Basin Watermaster Technical Advisory Committee- Today’s meeting mainly had a focus on our Sentinel Well #4. First, we learned that the Water Management District will be allowed continued access to that well to do induction logging every year. There were some questions about whether the truck would be able to go into the area with the revegetation that they’re doing, but it sounds like they’re keeping the road clear for our access.
Next was a big discussion regarding our need for testing chloride levels at a shallow depth (140-200 ft) in the area of Sentinel Well #4. Currently, we’re not able to isolate water samples at the depth needed, and so the discussion was whether we’d need to put in a separate monitoring well in this area. After talking to consultants who have worked on 3 126
Item A.
these wells before, and given the cost of a new well, the staff recommendation was that we did not need to pursue a new monitoring well at this time. He felt that when the Seawater Intrusions Response Plan is further updated after we do the modeling this year, the location and need for a new well could be made at that time.
During this discussion item, we also had Mike McCullough from the Water Management District on the line, as well as our consultant for our Seawater Intrusion Response Plan.
Mike thought his board would be interested in paying for half of the monitoring well because they see this as an important data point for this area, where we’re seeing an increase in conductivity. With their interest, and our absolute need for getting a water sample from this particular depth, and given that this would be a good time to put in a well since the trail is closed due to construction, I ultimately made the pitch to move forward with plans for a monitoring well and having the costs shared with the Water Management District. I just couldn’t imagine that we would ever not need it, and I certainly wouldn’t want to regret not getting this type of data sooner rather than later, given the increase in conductivity in the area. My pitch turned into a motion, which passed unanimously.
Our last item was discussing whether we needed to start doing stable isotope testing in our deep water aquifers in conjunction with the deep aquifer monitoring that’s taking place in the other aquifers. Since we felt that this type of testing wouldn’t change anything we were doing in the Seaside Basin, we decided that we wouldn’t move forward with regular testing, but that we would be interested in our deep aquifers being one of their test sites if they deemed it necessary.
4 127
Item A.
Council Report from Councilmember John Uy, Ed.D. 1
Council Report from Councilmember John Uy
February 24, 2026 Meeting
I. Council Report: Regular Meeting of the Seaside County Sanitation District (SCSD) Board of Directors – February 10, 2026
Dear Del Rey Oaks neighbors,
Here are the key takeaways, in plain language, from the Seaside County Sanitation District (SCSD) meeting on
February 10, 2026.
What the Board Covered
This meeting focused on two bread-and-butter items that directly affect day-to-day service:
• Approval of prior meeting minutes (standard accountability and recordkeeping). • Receiving the January 2026 Operations Report so the Board and the public can see what maintenance was completed, where issues occurred, and how the system is performing overall.
Operations Update: What Happened in January 2026
The monthly report shows the District’s ongoing emphasis on preventive maintenance—the less “glamorous” work (jetting/cleaning lines) that helps avoid backups and overflows. 1) Preventive cleaning (jetting)
• In January, SCSD jetted 50,728 feet of sewer mainlines districtwide. • Of that total, Del Rey Oaks accounted for 1,260 feet jetted in January. • Fiscal year-to-date (FY 2025/26), SCSD has jetted 328,476 feet districtwide, showing a strong, consistent maintenance cadence.
2) Stoppages and overflows
• For January, the report reflects no Del Rey Oaks stoppages or overflow locations. • The District recorded one mainline stoppage in Seaside in January, and an overflow location noted at 2045 Waring St (Seaside).
• FY-to-date, the report reflects 3 total SSOs across the District, with 1 recorded in Del Rey Oaks earlier in the fiscal year (not in January).
128
Item A.
Council Report from Councilmember John Uy, Ed.D. 2
Why This Matters to Del Rey Oaks
Nobody wakes up excited to read a sewer operations report until something goes wrong. These maintenance metrics matter because:
• Jetting = prevention. Routine cleaning helps reduce clogs, grease buildup, roots, and line blockages that can lead to backups into homes and businesses. • Transparency builds trust. These monthly reports let residents see what work is being done and where issues are occurring.
• Shared system, shared responsibility. Because the system serves multiple cities, SCSD’s preventive approach helps protect Del Rey Oaks as part of the broader network.
A Helpful Note for Residents
While SCSD is doing its part on mainlines, the most common avoidable causes of problems are still:
• grease/oil down the drain,
• “flushable” wipes (they aren’t),
• and improper disposal of food scraps.
Small habits at home can save major headaches for the whole community.
What’s Next
The next regular SCSD meeting is scheduled for March 10, 2026 at 9:30 AM.
As always, if you experience a sewer issue or notice something concerning, please report it right away so it can be addressed before it becomes a bigger problem.
II. Council Report: AMBAG Board of Directors Meeting – February 11, 2026 I want to share a quick but important update
regarding the AMBAG Board of Directors meeting
scheduled for February 11, 2026: the meeting was
cancelled due to a lack of quorum.
What “lack of quorum” means (in plain terms)
A quorum is the minimum number of Board
members required to be present so the Board can
129
Item A.
Council Report from Councilmember John Uy, Ed.D. 3
legally conduct business, take votes, and make decisions. When too few directors are present, the Board cannot proceed, so the meeting must be cancelled or adjourned.
Why this matters to Del Rey Oaks
AMBAG’s work affects our region in ways that touch everyday life, including:
• Regional transportation planning and funding priorities • Housing and land-use coordination
• Long-range planning goals that shape grants and major infrastructure decisions When a meeting is cancelled, it doesn’t mean the work stops, but it can mean decisions are delayed, discussions are postponed, and items may be pushed to a future agenda.
What happens next
Typically, when a meeting is cancelled for lack of quorum:
• No votes are taken
• No formal Board direction is given
• Agenda items are either carried to the next meeting or rescheduled, depending on timing and urgency
I will continue to monitor the rescheduling and ensure Del Rey Oaks is represented and informed once the Board reconvenes.
130
Item A.
MST HIGHLIGHTS
Board of Directors Meeting
February 9, 2026
RECOGNIZED FEBRUARY EMPLOYEE OF THE MONTH
The MST Board adopted Resolution 2026-13 recognizing Curtis Wilson, Coach Operator as the February 2026 Employee of the Month for his outstanding contribution to MST and the entire community.
RECEIVED ANNUAL COMPREHENSIVE FINANCIAL REPORT
The MST Board received the Annual Comprehensive Financial Report for fiscal years ending June 30, 2025 and 2024.
APPROVED MEASURE Q OVERSIGHT COMMITTEE MEMBER APPOINTMENTS The MST Board reappointed Bobby Merritt and Steve Macias each to new 3-year terms.
APPROVED REALLOCATION OF LOW CARBON TRANSIT OPERATIONS
PROGRAM FUNDS
The MST Board adopted Resolution 2026-14 and authorized the General Manager/CEO to reallocate up to $1.3 million in Low Carbon Transit Operations Program Funds from the Discontinued Hydrogen Facility Upgrade Project to the procurement of 13 GILLIG battery electric buses.
APPROVED GILLIG REQUEST FOR TARIFF RELATED COST INCREASE The MST Board approved the GILLIG request for tariff related cost increase of up to $332,445.60 for 13 battery-electric buses, contingent upon a ruling of legality by the Supreme Court of the United States.
NEXT MST BOARD MEETING
The next regular MST Board meeting is scheduled for March 9, 2026. 131
Item A.
926 East Blanco Road
Salinas, CA 93901
(831) 422-6438 p
Office Hours:
Monday – Friday
8 a.m. – 4:30 p.m.
Jeff Cecilio
Board Chair
County at Large
Don Cranford
Vice Chair
County at Large
Jennifer McAdams
City of Marina
Ian Oglesby
Trustee
City of Seaside
Ray Coopersmith
Trustee
County at Large
MaryAnn Carbone
Trustee
CityofSandCity
LouiseGoetzelt
Trustee
CityofDelReyOaks
JimTashiro
Trustee
City of Salinas
Jeff Glass
Trustee
City of Monterey
883rd REGULAR MEETING
OF THE
BOARD OF TRUSTEES
926 East Blanco Road
Salinas, CA. 93901
January 13th, 2026 ~AGENDA~ 12:00 P.M. Noon
We strive to host inclusive, accessible meetings that enable all individuals, including individuals with disabilities, to engage fully. To request an accommodation or for inquiries about accessibility, please contact the District.
A. CALL TO ORDER:
B. AGENDA MANAGEMENT:
C. ROLL CALL – ESTABLISHMENT OF QUORUM:
D. PUBLIC INPUT: (Limited to 3 minutes)
The consent calendar includes routine items than can be approved with a single motion and vote. A member of the Board of Trustees may request that any item be pulled from the Consent Calendar for separate consideration
E. CONSENT CALENDAR:
A. APPROVAL OF THE MINUTES:
B. PAYROLL WARRANTS: November/December: $80,048.48/$77,088.60 C. COMMERICAL WARRANTS: November/December; $239,920.86/$22,877.85 D. UMPQUA BANK: November 2025 $2,921.41/December 2025 $6,265.47 E. BALANCE SHEET: November/December
F. SCHEDULE OF EXPENDITURES: November/December
F. BUSINESS ITEMS:
A. Per Policy 4040 Election of Officers shall be conducted in January of even years B. Consideration, Discussion, and Possible Approval of Building Gutter Repair C. Kelli Gutierrez to confirm transportation for the MVCAC Annual Conference D. Update on Policy Book overhaul
E. 700 Forms reminder
F. Discussion of National Annual Conference
G. SDA Dinner January 20th Speaker TBA
G. MONTHLY ADMINISTRATIVE REPORT: Ken Klemme, District Manager H. TRUSTEE COMMENTS:
Adjournment to: February 10, 2026
132
Item A.
MINUTES OF THE 882nd REGULAR
MEETING OF THE BOARD OF TRUSTEES OF THE
MONTEREY COUNTY MOSQUITO ABATEMENT DISTRICT
November 12th, 2025
A meeting of the Board of Trustees of the Monterey County Mosquito Abatement District was held on October 14th, 2025, at the District Office in Salinas, California.
MEMBERS PRESENT: STAFF PRESENT:
Jeff Cecilio, Chair, County of Monterey Ken Klemme, District Manager Don Cranford, Vice Chair, County of Monterey Kelli Gutierrez, Administrative Assistant Jeff Glass, City of Monterey
Jim Tashiro, City of Salinas
Louise Goetzelt, City of Del Rey Oaks
Nancy Amadeo, City of Marina
Jeff Glass, City of Monterey
Guests Present ABSENT:
Ian Oglesby, City of Seaside
Nancy Amadeo, City of Marina
Mary Ann Carbone, City of Sand City
1. CALL TO ORDER:
Board Chair Jeff Cecilio called the 882th Regular Meeting to order at 12:00PM
2. AGENDA MANAGEMENT: NONE
3. ROLL CALL:
Administrative Assistant Kelli Gutierrez called roll; it was determined that a quorum was present
4. PUBLIC COMMENTS: NONE
5. CONSENT CALENDAR:
A. APPROVAL OF THE MINUTES: October
B. PAYROLL WARRANTS: October 2025 $70,970.82
C. COMMERCIAL WARRANTS: October $56,720.67
D. UMPQUA BANK: October 2025 $9,795.61
E. BALANCE SHEET: October 2025
F. SCHEDULE OF EXPENDITURES: October 2025
133
Item A.
With no further inquiries , Trustee Tashiro moved to approve the consent calendar as presented, Trustee Goetzelt seconded; the motion was passed unanimously.
6. BUSINESS ITEMS:
A. Update on Policy Book Review
District Manger Klemme gave an update about our insureance company V.C.J.P.A.
Can review our Policy Book for no charge
B. Removal of 13 Federal Parcels from District Assessment Roll ( Federal Sovereign Exemption)
District Manger Klemme informed the Board that Navy wants our Vector Control Tax be removed. The Navy did want to be reimbursement from 2013 to current; Funds were allocated appropriately. We will be removing the Vector Control Tax going forward.
C. Discussion of Christmas lunch for December 9th, 2025 It was decided by the group to meet at The Pub
7. Monthly Field Rreport: Silvestre Onofre-Zamudio, Mosquito Technician Technician gave an update about field work going on.
8. MONTHLY ADMINISTRATIVE REPORT: Ken Klemme, District Manager District Manger gave updates about the field and upcoming meetings.
9. TRUSTEE COMMENTS:
None
10. ADJOURNMENT:
With no further inquiries, Board Chair Cecilio adjourned the meeting at 12:15 PM.
_______________________________ ______________________________________ Jeff Cecilio, Board Chair Don Cranford, Vice Chair
134
Item A.
926 East Blanco Road
Salinas, CA 93901
(831) 422-6438 p
Office Hours:
Monday – Friday
8 a.m. – 4:30 p.m.
Jeff Cecilio
Board Chair
County at Large
Don Cranford
Vice Chair
County at Large
Jennifer McAdams
City of Marina
Ian Oglesby
Trustee
City of Seaside
Ray Coopersmith
Trustee
County at Large
MaryAnn Carbone
Trustee
CityofSandCity
LouiseGoetzelt
Trustee
CityofDelReyOaks
JimTashiro
Trustee
City of Salinas
Jeff Glass
Trustee
City of Monterey
884th REGULAR MEETING
OF THE
BOARD OF TRUSTEES
926 East Blanco Road
Salinas, CA. 93901
February 10th, 2026 ~AGENDA~ 12:00 P.M. Noon
We strive to host inclusive, accessible meetings that enable all individuals, including individuals with disabilities, to engage fully. To request an accommodation or for inquiries about accessibility, please contact the District.
A. CALL TO ORDER:
B. AGENDA MANAGEMENT:
C. ROLL CALL – ESTABLISHMENT OF QUORUM:
D. PUBLIC INPUT: (Limited to 3 minutes)
The consent calendar includes routine items than can be approved with a single motion and vote. A member of the Board of Trustees may request that any item be pulled from the Consent Calendar for separate consideration
E. CONSENT CALENDAR:
A. APPROVAL OF THE MINUTES:
B. PAYROLL WARRANTS: January 2026 $82,372.24
C. COMMERICAL WARRANTS: January 2026 $65,423.00
D. UMPQUA BANK: January 2026 $6,806.47
E. BALANCE SHEET: January 2026
F. SCHEDULE OF EXPENDITURES: January 2026
F. BUSINESS ITEMS:
A. Trustee Amadeo Farewell
B. Bill Lipe letter to the Board
C. LAFCO Elections for Special District Seat – Speaker Mary Ann Leffel D. SB 827 Fiscal & Financial Training - Webinar
G. MVCAC CONFERENCE REPORT:
H. MONTHLY ADMINISTRATIVE REPORT: Ken Klemme, District Manager I. TRUSTEE COMMENTS:
Adjournment to: March 10th, 2026
135
Item A.
DRAFT MINUTES OF THE 883rd REGULAR
MEETING OF THE BOARD OF TRUSTEES OF THE
MONTEREY COUNTY MOSQUITO ABATEMENT DISTRICT
January 13th, 2026
A meeting of the Board of Trustees of the Monterey County Mosquito Abatement District was held on January 13th, 2026, at the District Office in Salinas, California.
MEMBERS PRESENT: STAFF PRESENT:
Jeff Cecilio, Chair, County of Monterey Ken Klemme, District Manager Don Cranford, Vice Chair, County of Monterey Kelli Gutierrez, Administrative Assistant Jenny McAdams, Secretary, City of Marina
Ray Coopersmith, County of Monterey
Jeff Glass, City of Monterey
Louise Goetzelt, City of Del Rey Oaks
Jenny McAdams, City of Marina
Guests Present ABSENT:
Mary Ann Carbone, City of Sand City
Jim Tashiro, City of Salinas
1. CALL TO ORDER:
Board Chair Jeff Cecilio called the 883th Regular Meeting to order at 12:00PM
2. AGENDA MANAGEMENT: NONE
3. ROLL CALL:
Administrative Assistant Kelli Gutierrez called roll; it was determined that a quorum was present
4. PUBLIC COMMENTS: NONE
5. CONSENT CALENDAR:
A. APPROVAL OF THE MINUTES: November 2025
B. PAYROLL WARRANTS: November/December 2025 $80,048.48/$77,088.60 C. COMMERCIAL WARRANTS: November/December 2025 $239,920.86/$22,877.85 D. UMPQUA BANK: November/December 2025 $2,921.41/$6,265.47 E. BALANCE SHEET: November/December 2025
F. SCHEDULE OF EXPENDITURES: November/December 2025
136
Item A.
Louise Goetzelt Pulled Item A, Trustee Goetzelt moved to approve the consent calendar with corrections, Trustee Oglesby seconded; the motion was passed unanimously.
6. BUSINESS ITEMS:
A. Election Slate for Fiscal Years 2026 -2028 Per Policy 4040.30.
Following Discussion to seated officers; Jeff Cecilio Board Chair, Don Cranford Vice Chair and Jennifer McAdams as Board Secretary
With no further inquiries, Trustee Goetzelt moved to approve the decision as presented, Trustee Glass seconded; the motion was passed unanimously.
B. Consideration, Discussion and possible Approval of Building Gutter Repair
Manager Klemme presented a bid from another contractor.
Board Chair Cecilio informed Manager Klemme about talking with the building contractor Dildeck to seeing if there is a warranty for the roof.
With no further inquiries, Trustee Goetzelt moved to approve the contract with pending contact with Dilbeck first, Trustee Oglesby seconded; the motion was passed unanimously.
C. Admin Asst. Gutierrez to give confirmation about transportation for the MVCAC Annual Conference.
Admin Asst. Gutierrez wanted to confirm all Trustees had airfare for the upcoming Conference.
D. Update on Policy Book overhaul
Manager Klemme gave an update on the policy book and how he is starting on the changes. Once changes are made, he will give a copy to the policy committee to review.
137
Item A.
E. 700 Form Reminder
Manager Klemme wanted to remind all Trustees about their 700 Form to be given to Admin Asst. Gutierrez once completed F. Discussion of National Annual Conference
Manager Klemme gave the Board information on the upcoming Conference. March 23 -27th, 2026. Only 2 Trustees will be able to attend. Trustee Cranford requested to go. Trustee Goetzelt volunteered to go.
G. SDA Dinner January 20th
Manager Klemme and Admin. Asst. Gutierrez confirmed on their attendance.
8. MONTHLY ADMINISTRATIVE REPORT: Ken Klemme, District Manager District Manger gave updates about the field
9. TRUSTEE COMMENTS:
None
10. ADJOURNMENT:
With no further inquiries, Board Chair Cecilio adjourned the meeting at 12:20 PM.
_______________________________
Jeff Cecilio, Board Chair
ATTEST:______________________________
Don Cranford, Vice Chair
138
Item A.