Agenda packet — Del Rey Oaks City Council, August 25, 2026

REGULAR MEETING AGENDA

OF THE CITY OF DEL REY OAKS CITY COUNCIL
TUESDAY, AUGUST 25, 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
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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 Former City Councilmember Patricia "Pat" Lintell

5. PRESENTATION:

A. Mike O'Brien of the Del Rey Oaks Chess Club
B. Bradley Strawser, Founder/CEO Compass Ethicards
C. Swearing in Ceremony for Del Rey Oaks Police Officer John O'Neil

6. CONSENT AGENDA:
1 A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. City Council Minutes June 23, 2026

2. Planning Commission Minutes April 8, 2026
B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. Police Department Monthly Response Reports June and July 2026

2. Fire Department Monthly Response Reports June and July 2026

3. Monthly Financial Reports July, 2026
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)-None

7. OLD BUSINESS: None

8. NEW BUSINESS:

A. Consider Waiving the First Reading, Conduct a Public Hearing and Adopt an Ordinance to City of Del Rey Oaks Municipal Code and Replace it with a new Chapter 17.70 Regarding the Accessory Dwelling Units (ADU) Ordinance.

9. STAFF REPORTS:

A. Council Reports in the packet

10. CORRESPONDENCE:

A. In the packet

11. 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:
2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov. Code § 54956.8)
Property: 899 Rosita Rd. Del Rey Oaks, CA 93940
Agency negotiator: City Manager John Guertin
Negotiating parties: Coastal Paving and Excavating Mike Melicia, Owner Under negotiation: Price and terms of payment

12. NEXT MEETING DATE: Tuesday, September 22, 2026 at 6:00pm

13. ADJOURNMENT in honor of Former City Council Member Patricia "Pat" Lintell 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 FORMER CITY COUNCILMEMBER
PATRICIA “PAT” LINTELL
WHEREAS, it is with great sadness and loving appreciation that we recognize Mrs.

Patricia “Pat” Lintell for her many years of devoted service to the City of Del Rey Oaks.

WHEREAS she moved to Del Rey Oaks in 2001 and initially got involved with the city as a concerned citizen with an interest in shaping the city’s future and helping others.

WHEREAS Pat Lintell was a dedicated public servant who was elected to and served as a member of the Del Rey Oaks City Council during the years 2014 to 2023.

WHEREAS Pat was a loyal friend who could often be seen walking in the neighborhood and speaking with residents to gain a better understanding of their needs and desires so she could properly represent them.

WHEREAS having an open mind and a keen intellect, Pat was an influential voice on the City Council, and her actions continue to positively impact our entire community.

WHEREAS her competitive nature was evident in her love for the game of Bridge and the challenge of Jigsaw puzzles, which she would easily dedicate hours to those activities.

WHEREAS Pat cared deeply for the less fortunate members of our community and volunteered to serve on the Monterey County Community Human Services Board where she made major contributions to those in need.

WHEREAS she was a member of the Del Rey Oaks Citizens Action Group (DROCAG) from 2012 to 2022, and at 84 years old organized “The Pony Express” and participated in distributing The Acorn Newsletter and DROCAG announcements to each house in the city.

THEREFORE, now be it resolved that Pat Lintell has left behind friends, family, and a legacy of service and dedication to others, and she will be deeply missed.

Signed this 25th day of August, 2026
_________________________
Scott Donaldson, Mayor
4 Item A.

City of Del Rey Oaks
City Hall
650 Canyon Del Rey Blvd
Del Rey Oaks, CA 93940
Action Minutes
Tuesday, June 23, 2026
6:00 PM
City Council – Regular Meeting
Del Rey Oaks City Council
Scott Donaldson – Mayor
Mike Burger – Vice Mayor
John Uy – Councilmember
Kim Shirley – Councilmember
Jeremy Hallock – Councilmember
5 Item 1.
6:00 PM – Called to Order:

The meeting was called to order by Mayor Donaldson
Roll Call: Present: Mayor Donaldson, Vice Mayor Burger, Councilmember Shirley, Councilmember Hallock and Councilmember Uy

Absent: None
Also Present: City Manager Guertin, City Attorney Lorca, City Clerk Minami, Deputy City Clerk Batra and Police Chief Bourquin
Pledge of Allegiance:

Led by Mayor Donaldson
Public Comment:

Gary Kreeger: There will be a tragedy on the bike path on HWY 218 if nothing is done; it’s only a matter of time.

Kristin: Doesn’t want to have the STR cap increased; raise the tax instead. Los Encinos is impacted with two already on the small street.

CONSENT AGENDA:

A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. May 19, 2026 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, May 2026

2. Police Activity Report, May 2026

3. Financial Reports, May 2026
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. Consider Approval of the FY 2026-27 Budget Documents

2. Consider Approval of Resolution 2026-17, to Call and provide for a General Municipal Election to be held in the City of Del Rey Oaks on Tuesday, November 3, 2026

3. Adopt Resolution 2026-18, Amending Conflict of Interest Code

4. Adopt Resolution 2026-16 Approving a 3.03 percent rate increase to charges by the City's franchised hauler, Greenwaste Recovery, for the collection of solid waste, recycling and organics, effective July 1, 2026

5. Adopt Resolution 2026-21 Amending Exhibit A&B of the Memorandum of Understanding between ReGen Monterey and Member Agencies for FY 2026-27 6 Item 1.

PUBLIC COMMENT:

None
A motion was made by Councilmember Burger, seconded by Councilmember Uy, to approve the Consent Agenda as presented.

Motion passed unanimously 5-0
OLD BUSINESS: None
NEW BUSINESS:

A. Consider Annual AB 2561 Staffing Vacancies Report and Adopt Resolution 2026-20, to comply with Government Code Section 3502.3
Chief Bourquin: Reviewed the annual AB2561 staff vacancy report and adopted Resolution 2026-20 to comply with the Government Code. Currently have two unfilled positions but plan to cover a third vacancy. Needs to get them here and keep them here. Thanks the council for always being supportive.

The discussion included a conversation about police department staffing challenges and retention strategies, with the Chief highlighting the department's family-oriented culture and training opportunities as key retention factors despite lower salaries compared to other agencies.

PUBLIC COMMENT:

None
A motion was made by Councilmember Hallock, seconded by Councilmember Uy, to approve item 6.A. Annual AB 2561 Staffing Vacancies Report as presented.

Motion passed unanimously 5-0

B. Selection of Development Partner for Former Fort Ord Properties and Authorization to Negotiate an Exclusive Negotiating Agreement with Shea Homes
City Manager Guertin: Presents the item. Explains that any of the 3 potential developers would be able to get to the finish line with the city on this project. Reviewed the selection of a development partner for the former Fort Ord properties. This process will be more like a “courtship,” so we have time to learn about each other. The ENA doesn’t lock the city into anything. The ENA process will take approximately 18 months to complete and will include multiple opportunities for public input before any final development agreement is reached.
7 Item 1.

David Zhender of Economic & Planning Systems (EPS): Presented the item by highlighting parts of the staff report in the packet. He focused on evaluating three developer proposals for the project, with the city seeking a partner to ensure fiscal sustainability, community development, and fair market value. Asked robust questions to all 3 developers. The discussion highlighted key evaluation criteria including funding sources, planning approach, and public-private partnership capabilities. Reviewed the selection of a development partner for the former Fort Ord properties, focusing on authorizing negotiations with Shea Homes. After thorough evaluation, IL and Shea Homes were identified as the top candidates, with Urban Mix coming in third place due to their more ambitious proposal involving a surf park as a town center, which was considered premature for the current stage of development. After rigorous evaluation, Shea Homes was selected as the preferred developer due to their strong financial capacity, comprehensive understanding of the project's physical and financial realities, and demonstrated ability to work collaboratively with the city. The city team recommended moving forward with an exclusive right to negotiate with Shea Homes to develop a formal development disposition agreement.

Councilmember Hallock: Thanks them all and really appreciated the individual updates prior to this meeting. Totally supports this item.

Councilmember Shirley: Her questions have been answered, appreciates all of the details.

Councilmember Burger: Confident in this decision; we are well informed, and it is best for the community.

Councilmember Uy: Excited and interested in the “courtship” phase. What to expect? David Zhender: It will be taken in phases and explains the ENA process. After due diligence, items will be rolled out over time.

Mayor Donaldson: Impressive details. Best partner for the long haul. How will they handle economic downturn?
City Manager Guertin: Can’t speak for Shea, but they have multiple channels and capabilities. Shea is family-owned, and financial decision-making is streamlined.

PUBLIC COMMENTS:

Andrew: Revenue from the sale?
John: Additional revenue is crucial. Hotel is the best option. No idea should be off the table.

Gary: Sooner there is resident buy-in, the better. Water and endangered plant issues.

City Manager Guertin: Reads from John Gaglioti’s letter: this should be considered as a gate-opening discussion and not a gate-closing discussion.

A motion was made by Councilmember Burger, seconded by Councilmember Hallock, to approve item 6.B. Selection of Development Partner for Former Fort Ord Properties and Authorization to Negotiate an Exclusive Negotiating Agreement with Shea Homes.

Motion passed unanimously 5-0
8 Item 1.

STAFF REPORTS: In the packet with the correspondence
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.

B. Closed Session Items:

1. Conference with Legal Counsel – Existing Litigation (Government Code § 54956.9(a)) California Native Plant Society vs. Fort Ord Reuse Authority, et al Superior Court of the State of California, County of Monterey, Case No. 20CV001529
Attachments:

Settlement Agreement and General Release dated May 15, 2023; Enforcement Settlement Letter dated June 11, 2026 Regarding APN 031-191-013 PUBLIC COMMENT:

Beth: Spirit of the law. This is a black eye on the city.

Nicki: CNPS sued the city and now has an agreement with the city. No action is an action.

This is a little ridiculous; it’s just common sense.

Patrice: This is getting silly. Where is the stewardship? Brian: CNPS for 30 years. Ridiculous that we are still talking about it.

ADJOURNMENT INTO CLOSED SESSION: 7:16PM
BACK INTO OPEN SESSION: 8:30PM
City Attorney Lorca reported that the item was review and an update was given and no reportable action was taken.

NEXT MEETING DATE: Tuesday, August 25, 2026 at 6:00 pm
Attest:___________________________________________ Date:--------------------------------------- 9 Item 1.
10 Item 1.

City of Del Rey Oaks
City Hall
650 Canyon Del Rey Blvd
Del Rey Oaks, CA 93940
Action Minutes
Wednesday, April 8, 2026 - 6:00 PM
Planning Commission – Regular Meeting
Del Rey Oaks Planning Commission
Mike Hayworth – Chair
Denise Wood – Vice Chair
Gary Kreeger – Commissioner
Louise Goetzelt - Commissioner
Ann Ahmadi – Commissioner
Celine Pinet – Commissioner
Vince Machi – Commissioner
11 Item 2.
6:01PM – Called to Order:

The meeting was called to order by Chair Hayworth.

Roll Call:

Present: Commissioner Kreeger, Commissioner Goetzelt, Commissioner Ahmadi, Commissioner Pinet, Commissioner Machi, Vice Chair Wood, and Chair Hayworth.

Absent: None
Staff Present:

City Clerk Minami, Administrative Services Technician Matthews and City Attorney Alex Lorca.

Pledge of Allegiance:

Chair Hayworth led the Pledge of Allegiance.

Consent Agenda:

Adopt February 11, 2026, Planning Commission Meeting Minutes A motion to approve was made by Commissioner Goetzelt and seconded by Commissioner Ahmadi. Minutes were approved 7-0.

Public Comment:

Alice Green: At the pedestrian crossing on 218, the sign is covered up by a tree that needs trimming.

Reports:

Building Activity Reports for February 2026 were accepted unanimously.

Commissioner Ahmadi: Excited to see so many ADU’s on list.

Old Business:

None
New Business:

A. Applicant’s Name: George McGuire
Owner’s Name: Banyan Group Construction, Inc.

File Number: ARC #26-02, VAR #26-01 & CUP #26-01
Site Location: 120 Del Rey Gardens
Planning Area: APN #012-601-024-000
CEQA Determination: Categorically Exempt pursuant to
CEQA Guidelines §§ 15301 and 15303
Project Description: Requesting Architectural Review, Variance, and Conditional Use Permit to remodel and
expand the floor area of the existing two-story
12 Item 2.
commercial/office building, with a private
automobile design studio, sales showroom,
and event venue on the first floor, and
residential apartments on the second floor
proposed for Short-term rentals. Additional
installation of new entry tower, construction
of covered garages for the residential units,
new ADA accessible parking space, and new
concrete patio adjacent to main entry, with a
concrete sidewalk leading to new entrance.

Recommended Action: Analyze provided material, make appropriate findings, impose conditions as appropriate, and
give direction to staff.

Commissioner Goetzelt recused herself and left the council chambers, as she owns property just outside of the 500 ft radius from the proposed project.

Robyn Simpson of Denise Duffy and Associates reads from the staff report:

Project Description: Mr. George McGuire, on behalf of Banyan Group Construction, Inc. (Applicant), submitted an Architectural Review application for alterations to an existing commercial/office building, including a variance request for parking and building additions on the property located at 120 Del Rey Gardens Drive (project). The project proposes to remodel and expand the floor area of the existing twostory commercial/office building and convert the second floor into two residential apartmentsto be made available for short-term rental use. The first floor would be converted into a private automobile design studio and sales showroom. In addition, the project proposes to use the ground floor for automobilerelated events throughout the year. A new four-car garage is proposed for construction the parcel, within the footprint of the existing parking lot. The proposed project also requests variances from parking standards and a reduction in setback requirements. The proposed use permit and variance requests are further addressed below.

An aerial view of the site is shown on Figure 1. The existing commercial property site is located within an area of office, light industrial, and service commercial uses along Del Rey Gardens Drive, with access to Canyon Del Rey Boulevard. Multi-family residential condominiums are located nearby. The property is next to the Monterey Regional Airport. Review of the Airport Safety Zones in the Airport Land Use Plan indicates the property is outside the Airport safety zones, restricting residential use.

Discussion: The following discussion centers on the components of the application materials and variance request submitted by the Applicant. All materials are included in the Planning Commission packet attached to this staff report.

Proposed Construction: Construction will include the demolition of existing wood-framed walls on both the first and second floors. The first floor will be expanded to increase usable space and enhance the visual depth of the building’s north facade. Additional work includes the installation of a new entry tower, construction of covered garages for the short-term residential units, a new handicap-accessible van parking space, and a new concrete patio adjacent to the main entry, along with a concrete sidewalk leading to the new entrance.

The scope of construction will incorporate new wood-framed walls with drywall finishes, insulation, drywall ceilings, complete electrical, plumbing, and heating, ventilation, and air conditioning (HVAC) 13 Item 2.
systems. Interior and exterior finishes will include ceramic tile flooring, cabinetry, granite countertops, paint; wood doors and frames, windows, restrooms, bathtubs and showers with accessories, roofing, waterproofing, second floor decks/balconies, wrought iron elements, and new concrete foundations and sidewalls.

Site Plan: Please refer to Sheet A100 of the project plan sheet, the Applicant submitted a Site Plan at 1/8” = 1’ scale. The Site Plan identifies existing and proposed building square footage, landscaped areas, location and zoning details, occupancy type, and a parking analysis including identification of parking spaces and area. The Site plan also indicates rear, side, and front setbacks for the existing and proposed structures on-site.

Floor Plan: Sheet A200 depicts the floorplans for the existing building. Sheet A201 depicts the First Floor Plan for the remodeled main structure, Sheet A202 shows the Second Floor Plan for the remodeled main structure, and the Garage Floor Plan is identified on Sheet A301. Each Floor Plan is depicted at a scale of 1/4” = 1’. The Floor Plans identify the layout of the existing and proposed building spaces.

Plot Plans: Sheet A300 illustrates the Plot Plan for the main structure showing elevations at the appropriate scale (i.e., 3/16” = 1’). Sheet A301 illustrates the Plot Plan for the garage structure showing elevations at the appropriate scale (i.e., 1/4” = 1’). The location of existing trees in relation to the remodeled building are shown on Sheet A300.

Landscape Plans: Sheet L100 depicts the landscape plan for the project at the appropriate scale (i.e., 1/8” = 1’). The landscape plan indicates that the majority of the existing site landscape will remain in place and that removal of one tree is required for the project. The landscape plan also notes that certain portions of the existing landscape, including the planters at the front of the parcel, will be replanted with Cityapproved drought-resistant species.

Color and Materials Samples: Color and material samples for building paint, window glazing, window mullion, building accent colors, and roof tiles are provided on Sheet A300.

Street Designations, North Arrow, Graphic Scale: The Site Plan (Sheet A100) depicts the property address, 120 Del Rey Gardens Drive, and depicts the property line and existing on-site driveways. A north arrow is depicted on the Site Plan (Sheet A100), Floor Plans (Sheets A200, A201, A202, A301), and Landscape Plan (Sheet L100). Graphic scales are shown on all plans (i.e., Site Plan, Floor Plans, Landscape Plan, and Plotting Plans).

Netting and Ribbon: The Applicant has installed orange-colored netting on the property to show the outline and height of the proposed new structure, second story additions, changes to the existing roof line, and changes in building footprint as required by the City’s Architectural Review process.

Parking Plan: Site Plan, Sheet A100, identifies off-street parking spaces, and includes a calculation for determination of required parking. The plan also illustrates ingress and egress between the street and parking spaces on the property. The project proposes to construct a four-car garage within the existing footprint of the existing off-site parking facilities. Section 17.24.040(2)(a) and (e) require parking for professional services to equal one parking space for every 300 square feet. Residential parking must provide one covered parking space consisting of one attached or detached enclosed garage space measuring no less than 288 sf, per residential unit (Section 17.08.090). 14 Item 2.

Table 1
Parking Required (Section 17.24.040(2)(a) and (e))
Uses Square
Footage
Ratio (parking space/square
footage) Parking
Professional Services 5,405 1/300 18
2 Residential Units 4,815 N/A 2
Total Required 20
Table 2
Site Plan Parking
Uses Parking Spaces
Professional Services 13 uncovered and 2 covered
Accessible Parking 1 uncovered
Residential 2 covered
Total Parking Spaces 18
The parking calculations are inconsistent with C-1 parking requirements (Section 17.24.040), with a total deficit of two spaces for the professional services use. The Applicant has applied for a variance for the professional services parking shortfall and the addition of the covered residential parking.

Signage Plan: Planning and Building Department Guidelines require an Applicant prepare a Signage Plan and apply for a Sign Permit for projects before any sign is placed, displayed, painted, posted, printed, tacked, fastened, erected, relocated, or constructed (Sections 17.59.020 and 17.59.040). The Applicant has indicated that signage is not included as part of this project, and no signage is shown on the Architectural Plans or application materials provided by the Applicant. Any future signage installed on the project site would require preparation of a Signage Plan and approval of a Sign Permit by the Planning Commission.

Analysis:

Variance: Development standards for the C-1 zoning district are described in Section 17.24.040 of the City’s Municipal Code. Specifically, lot area and dimensions shall comply with the following minimum standards except where variance is granted by the City Council (Section 17.24.040(A)):

1. Lot Area. Ten thousand square feet minimum.

2. Lot Width. 50 feet and depth – 100 feet.

3. Yards. Front 35 feet; side 10 feet, and rear 15 feet set-back.

4. Building Height. No principal structure building shall exceed two stories or 30 feet in height and no accessory building shall exceed one story or 15 feet in height, except as approved by a variance.

The front setback of the existing building does not meet the C-1 standard of 35 feet. The Applicant is applying for a building variance since the project would further reduce the front setback of the remodeled building to approximately 17.9 feet. The variance is necessary due to the unique physical characteristics of the subject property and the functional requirements of the proposed mixed-use development, specifically the ability to provide adequate on-site parking, functional access, and usable open space. The side and rear setbacks of the remodeled building and the new garage structure would meet their 15 Item 2.
respective minimum setbacks of 10 feet and 15 feet (Section 17.24.040). The Applicant proposes to construct the proposed garage within the footprint of the existing southern parking facility to reduce the construction footprint. No other configuration of the garage within the existing developed footprint of the property would meet the required 10-foot minimum side yard setback or the required 15-foot minimum rear setback.

The Applicant is requesting a variance related to meeting parking requirements in the City Code.1 The project proposes the addition of the two short-term residential units to the property, and may in the future, rent these as residential units on a year-round basis. Under City Code, the project would be required to add covered parking spaces, consisting of one attached or detached enclosed garage space measuring no less than 288 sf, at a rate of one garage space per residential unit (Section 17.08.090). In addition, the project would have a shortfall of two professional services parking spaces as described above (Sheet A100). Section 17.24.040(2) (e) requires parking for professional services to equal one parking space for every 300 square feet of floor area.

Standards for Approving Variances: Pursuant to Del Rey Oaks Municipal Code Section 17.44.020, an application for a variance shall include a statement and adequate evidence showing the following three standards below:

A. That there are exceptional or extraordinary circumstances or conditions applying to the land, building or use referred to in the application, which circumstances or conditions do not apply generally to land, buildings and/or uses in the same district; B. That the granting of the application is necessary for the preservation and enjoyment of substantial property rights of the petitioner;
C. That the granting of such application will not, under the circumstances of the particular case, materially affect adversely the health or safety of persons residing or working in the neighborhood of the property of the applicant and will not, under the circumstances of the particular case, be materially detrimental to the public welfare or injurious to the property or improvements in said neighborhood.

Variance and Special Circumstances: The Applicant has provided information to support the findings for approval of variances (included in the packet). The project incorporates appropriate site planning measures, including adequate parking for the proposed uses, safe vehicular and pedestrian circulation, and designated open space, which collectively promote safe and functional use of the property. The scale, intensity, and design of the proposed development are consistent with the uses permitted within the zoning district and are not anticipated to generate significant increases in traffic, noise, or other potential impacts compared to the office commercial uses currently allowed on the site. Additionally, the project is reconstruction of existing commercial space to allow for mixed-use, on a site that is already developed, has adequate infrastructure, access and available land area for the proposed use. The applicant has noted that the variance is necessary due to the unique physical characteristics of the subject property and the functional requirements of the proposed mixed-use development, specifically the ability to provide adequate on-site parking, functional access, and usable open space Use Permit and Zoning: The subject property is located in the City’s C-1 zoning district and carries a Neighborhood Commercial land use designation (NC[C-1]). Allowable and permitted uses in the R-1, C, and C-1 zoning districts as they relate to the project are summarized in several sections in the Zoning 16 Item 2.

Code. Section 17.24.030 of the Zoning Ordinance states that residential uses are a conditional use in the C-1 district, and would require a conditional use permit. Pursuant to the Del Rey Oaks Municipal Code, the C-1 (Neighborhood Commercial) district is intended to accommodate limited retail, service, and office uses that serve local needs, while maintaining compatibility with surrounding development (Sections

17.24.010 and 17.20.010). The code permits all uses allowed in residential (“R”) districts within commercial zones (Section 17.20.020), and allows residential uses in the C-1 district subject to a Conditional Use Permit and compliance with applicable residential standards (Section 17.24.030).

Additionally, certain residential activities, such as short-term rentals in the R-1 district, require a Conditional Use Permit (Section 17.08.025).

Short-term residential rentals require a conditional permit and the proposed short term residential rental is therefore not considered a “permitted” use. Short-term rentals are defined in City Ordinance No. 293 as “a privately owned residential dwelling, such as, but not limited to… apartment house, condominium, cooperative apartment, [or] duplex… rented for occupancy for dwelling, lodging, or sleeping purposes for any period less than thirty (30) consecutive days”. The project would create residential units on the top floor of the building. Therefore, a conditional use permit would be required to accommodate the proposed short-term residential uses and residential units proposed in the C-1 district.

George McQuire, applicant, further explained the details of the proposed project.

The project involves remodeling and expanding an existing two-story commercial office building to include a private automobile design studio, sales showroom, and event venue on the first floor, and two residential apartments for short-term rental on the second floor. The venue would primarily serve car enthusiasts and restoration company clients, with limited public access, and could generate approximately $350,000-400,000 in sales annually. The building currently requires 20 parking spaces but only 18 are proposed, necessitating a variance. The proposed expansion would nearly double the current 7,610 square foot building to approximately 14,610 square feet, with space for 2-3 car displays, a conference table, and design displays.

Following this, there was a robust conversation with questions and comments from Planning Commissioners regarding the use of the building, how many events will be hosted, the short-term use of the apartments, sales tax, working on cars, variance for parking spaces, and the use and size of the venue showroom. The need for a parking signage plan to be submitted and reviewed by City staff. Key concerns raised included parking impacts on neighboring Oaks Condominiums, the significant reduction in front setback requirements, and questions about short-term rental permit limitations.

Public Comment:

Helen Birdsong: All of the Oaks condominiums should have been notified, including the HOA Board of Directors. No one knew about this project until the flagging and netting went up.

A representative from the local Union: Asking the applicant to use local workers.

Public Comment Closed
17 Item 2.

Commissioner Kreeger moves to Approve ARC 26-02 as submitted, and Commissioner Wood seconds the motion.

Motion passed unanimously by roll call vote: 6-0
Commissioner Kreeger- Yay
Commissioner Ahmadi- Yay
Commissioner Wood- Yay
Commissioner Pinet- Yay
Commissioner Machi- Yay
Chairman Hayworth- Yay
Commissioner Kreeger moves to Approve VAR 26-01, including a parking plan to be approved by city staff and the planning consultant, and Commissioner Wood seconds the motion.

Motion passed unanimously by roll call vote: 6-0
Commissioner Kreeger- Yay
Commissioner Ahmadi- Yay
Commissioner Wood- Yay
Commissioner Pinet- Yay
Commissioner Machi- Yay
Chairman Hayworth- Yay
Commissioner Wood moves to Approve CUP 26-01 as submitted, and Commissioner Machi seconds the motion.

Motion passed unanimously by roll call vote: 6-0
Commissioner Kreeger- Yay
Commissioner Ahmadi- Yay
Commissioner Wood- Yay
Commissioner Pinet- Yay
Commissioner Machi- Yay
Chairman Hayworth- Yay
Commissioner Goetzelt returns to the council chamber
B. City Attorney Overview – Brown Act and Commissioner Roles Recommended Action: Receive the presentation.

The following slide show was reviewed. City Attorney explained them in detail and answered questions from the Planning Commissioners.
18 Item 2.
19 Item 2.

Commissioner Ahmadi: Asks City Attorney for clarification regarding an issue from the February Planning Commission meeting. Wants to agendize housing element programs.

City Clerk Minami: City Manager would be the person to talk with about that.

Announcements:

Chairman Hayworth: Thanks Alex
Next Meeting:

Wednesday, May 13, 2026 at 6pm
Adjournment:
7:50 pm
All enclosures and materials regarding this agenda are available for public review at Del Rey Oaks City Hall. Information distributed to the Planning Commission at the meeting becomes part of the public Record. A copy of written material, pictures, etc. should be provided to the Secretary for this purpose.
20 Item 2.
1 City Council Report
June 2026
Case # Date Offense Code 1 Offense Code Description
DROMPADOJResidentialCommercial
26-146 06/01/2026 243(D) PC X X
26-147 06/01/2026 Information Only X X
26-148 06/02/2026 14601.1(A) VC Suspended Drivers License X X 26-149 06/02/2026 Fire Call X X
26-150 06/05/2026 Information Only X X
26-151 06/05/2026 Lost Property X X
26-152 06/06/2026 Information Only X X
26-153 06/07/2026 12500(A) VC Unlicensed Driver X X
26-154 06/07/2026 Information Only X X
26-155 06/07/2026 11350(A) HS Narcotics Possession X X
26-156 06/07/2026 23152(A) VC Drive Under Influence X X 26-157 06/08/2026 Information Only X X
26-158 06/09/2026 484(A) PC Petty Theft X X
26-159 06/10/2026 Information Only X X
26-160 06/10/2026 12500(A) VC Unlicensed Driver X X
26-161 06/13/2026 12500(A) VC Unlicensed Driver X X
26-162 06/16/2026 Information Only X X
26-163 06/17/2026 Information Only X X
26-164 06/17/2026 Information Only X X
26-165 06/17/2026 ACN Non-Injury Traffic Collision X X
26-166 06/18/2026 Information Only X X
26-167 06/19/2026 Information Only X X
26-168 06/21/2026 Medical Emergency X X
26-169 06/23/2026 ACN Non-Injury Traffic Collision X X
26-170 06/23/2026 Information Only X X
26-171 06/24/2026 Susp Circ X X
26-172 06/25/2026 Lost Property X X
26-173 06/25/2026 ACI Injury Traffic Collision X X
26-174 06/28/2026 Information Only X X
26-175 06/29/2026 Susp Circ X X
26-176 06/30/2026 Information Only X X
26-188 06/11/2026 Information Only X X
32 Cases
Chris Bourquin - Chief
21 Item 1.
2 Calls for Service Case Reports
Month YTD Month YTD
179 1,630 33 188
Alarms Citations
Residential Commercial MPAD Moving Parking Warning
Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD
0 2 6 15 2 29 12 93 25 137 11 55
22 Item 1.

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 1 1 0.00% 0 0.00% 100.00% NA
Simple Assault 0 1 -100.00% 0 0.00% 0.00% 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 1 2 -50% 0 0.00% 20% NA
Robbery 0 0 NA 0 0.00% 0.00% NA
Burglary/Breaking & Entering 0 1 -100.00% 0 0.00% 0.00% NA Larceny/Theft Offenses 1 1 0.00% 0 0.00% 33.33% NA
Motor Vehicle Theft 0 0 NA 0 0.00% 0.00% NA
Arson 0 0 NA 0 0.00% 0.00% NA
Destruction Of Property 1 1 0.00% 0 0.00% 33.33% 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 2 -100.00% 0 0.00% 0.00% NA
Crimes Against Property Total 3 5 -40% 1 33.33% 60% NA
Drug/Narcotic Violations 1 0 NA 1 100.00% 100.00% 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 1 0 NA 1 100% 20% NA
Agency: All
Total Group "A" Offenses 5 7 -28.57% 2 40% 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: 06/01/2026 Ending Date: 06/30/2026
Printed On: 07/01/2026

Page 1 of 1 ends

23 Item 1.

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 2 2 0.00% 0 0.00% 33.33% NA
Simple Assault 4 3 33.33% 2 50.00% 66.67% NA
Intimidation 0 2 -100.00% 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 6 7 -14.29% 2 33.33% 21.43% NA Robbery 1 1 0.00% 1 100.00% 7.14% NA
Burglary/Breaking & Entering 1 1 0.00% 0 0.00% 7.14% NA Larceny/Theft Offenses 8 7 14.29% 2 25.00% 57.14% NA
Motor Vehicle Theft 0 2 -100.00% 0 0.00% 0.00% NA
Arson 0 0 NA 0 0.00% 0.00% NA
Destruction Of Property 1 4 -75.00% 0 0.00% 7.14% NA
Counterfeiting/Forgery 2 1 100.00% 2 100.00% 14.29% NA
Fraud Offense 0 4 -100.00% 0 0.00% 0.00% NA
Embezzlement 1 0 NA 0 0.00% 7.14% 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 2 -100.00% 0 0.00% 0.00% NA
Crimes Against Property Total 14 22 -36.36% 5 35.71% 50% NA Drug/Narcotic Violations 4 1 300.00% 3 75.00% 50.00% NA Drug Equipment Violations 2 0 NA 2 100.00% 25.00% 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 2 0 NA 1 50.00% 25.00% NA
Animal Cruelty 0 0 NA 0 0.00% 0.00% NA
Crimes Against Society Total 8 1 700% 6 75% 28.57% NA
Agency: All
Total Group "A" Offenses 28 30 -6.67% 13 46.43% 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: 06/30/2026
Printed On: 07/01/2026

Page 1 of 1 ends

24 Item 1.
1 City Council Report
July 2026
Case # Date Offense Code 1 Offense Code Description
DROMPADOJResidentialCommercial
26-177 07/01/2026 Information Only X X
26-178 07/02/2026 Information Only X X
26-179 07/02/2026 23152(B) VC Drive Under Influence X X 26-180 07/03/2026 12500(A) VC Unlicensed Driver X X
26-181 07/05/2026 Lost Property X X
26-182 07/06/2026 Elder Abuse X X
26-183 07/06/2026 Information Only X X
26-184 07/06/2026 484(A) PC Petty Theft X X
26-185 07/06/2026 484(A) PC Petty Theft X X
26-186 07/07/2026 Lost Property X X
26-187 07/07/2026 Surrendered Property X X
26-189 07/09/2026 20002(A)(1) VC Hit & Run X X
26-190 07/10/2026 Lost Property X X
26-191 07/10/2026 Void X X
26-192 07/10/2026 ACN Non-Injury Traffic Collision X X
26-193 07/11/2026 Outside Warrant/M Warrant Arrest X X
26-194 07/12/2026 485 PC Appropriate Lost Property X X
26-195 07/14/2026 DROMC 8.16.030 Littering X X
26-196 07/14/2026 DROMC 6.04.020 Dog at Large X X
26-197 07/15/2026 Information Only X X
26-198 07/15/2026 14601.5(A) VC Suspended Driver’s License X X 26-199 07/17/2026 DROMC 10.16.110 Vehicle Abated X X
26-200 07/17/2026 Lost Property X X
26-201 07/20/2026 Information Only X X
26-202 07/20/2026 Information Only X X
26-203 07/21/2026 532(A) PC Theft by False Pretenses X X 26-204 07/22/2026 Information Only X X
26-205 07/22/2026 Information Only X X
26-206 07/23/2026 20002(A)(1) VC Hit & Run X X
26-207 07/23/2026 647(F) PC Public Intoxication X X
26-208 07/24/2026 Information Only X X
26-209 07/25/2026 Lost Property X X
26-210 07/25/2026 12500(A) VC Unlicensed Driver X X
26-211 07/27/2026 Lost Property X X
26-212 07/27/2026 20002(A)(2) VC Hit & Run X X
26-213 07/27/2026 Animal Bite Report X X
26-214 07/29/2026 Outside Warrant/M Warrant Arrest X X
26-215 07/30/2026 Information Only X X
Chris Bourquin - Chief
25 Item 1.
2 26-216 07/30/2026 23152(B) VC Drive Under Influence X X 26-217 07/30/2026 Information Only X X
40 Cases
Calls for Service Case Reports
Month YTD Month YTD
300 1,930 40 217
Alarms Citations
Residential Commercial MPAD Moving Parking Warning
Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD
2 4 2 17 6 35 19 112 24 161 10 65
26 Item 1.

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 0 0 NA 0 0.00% 0.00% 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 0 0 NA 0 0.00% 0.00% NA
Robbery 0 0 NA 0 0.00% 0.00% NA
Burglary/Breaking & Entering 0 0 NA 0 0.00% 0.00% NA
Larceny/Theft Offenses 3 1 200.00% 1 33.33% 75.00% NA
Motor Vehicle Theft 0 0 NA 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 0 0 NA 0 0.00% 0.00% NA
Fraud Offense 1 1 0.00% 0 0.00% 25.00% 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 4 2 100% 1 25% 100% NA
Drug/Narcotic Violations 0 0 NA 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 0 NA 0 0.00% 0.00% NA
Agency: All
Total Group "A" Offenses 4 2 100% 1 25% 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: 07/01/2026 Ending Date: 07/31/2026
Printed On: 08/01/2026

Page 1 of 1 ends

27 Item 1.

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 6 7 -14.29% 2 33.33% 17.14% NA Robbery 1 1 0.00% 1 100.00% 4.76% NA
Burglary/Breaking & Entering 1 1 0.00% 0 0.00% 4.76% NA Larceny/Theft Offenses 12 8 50.00% 4 33.33% 57.14% NA
Motor Vehicle Theft 0 2 -100.00% 0 0.00% 0.00% NA
Arson 0 0 NA 0 0.00% 0.00% NA
Destruction Of Property 1 4 -75.00% 0 0.00% 4.76% NA
Counterfeiting/Forgery 3 1 200.00% 3 100.00% 14.29% NA
Fraud Offense 1 5 -80.00% 0 0.00% 4.76% NA
Embezzlement 1 0 NA 0 0.00% 4.76% 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 1 2 -50.00% 1 100.00% 4.76% NA Crimes Against Property Total 21 24 -12.5% 9 42.86% 60% NA Drug/Narcotic Violations 4 1 300.00% 3 75.00% 50.00% NA Drug Equipment Violations 2 0 NA 2 100.00% 25.00% 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 2 0 NA 1 50.00% 25.00% NA
Animal Cruelty 0 0 NA 0 0.00% 0.00% NA
Crimes Against Society Total 8 1 700% 6 75% 22.86% NA
Agency: All
Total Group "A" Offenses 35 32 9.38% 17 48.57% 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: 07/31/2026
Printed On: 08/01/2026

Page 1 of 1 ends

28 Item 1.
29 Item 2.
30 Item 2.

Incident Date Incident Number Alarm Time Arrival Time
Response
Time
(Minutes)
Incident Type Code District Street Or Highway
Name Priority
7/1/2026 260701-SEA01553 10:38:00 PM 10:46:00 PM 8.00 Cancelled 29 Pheasant Ridge Emergent 7/2/2026 260702-SEA01557 9:37:00 AM N/A N/A Cancelled 29 Serrano Non emergent 7/5/2026 260705-SEA01587 2:28:00 AM 2:37:00 AM 9.00 Smoke investigation 29 Del Rey Non emergent 7/6/2026 260706-SEA01594 8:01:00 AM 8:07:00 AM 6.00 No appropriate choice (medical response) 29 Pheasant Ridge Emergent 7/9/2026 260709-SEA01622 8:46:00 AM 8:53:00 AM 7.00 Abdominal pain / problems 29 Work Emergent 7/13/2026 260713-SEA01658 1:16:00 AM N/A N/A Sick case 29 Portola Emergent 7/15/2026 260715-SEA01676 12:28:00 PM 12:35:00 PM 7.00 Convulsions / seizures 29 Mty Sns Emergent 7/15/2026 260715-SEA01677 12:30:00 PM 12:38:00 PM 8.00 Unknown problem (medical) 29 Canyon Del Rey Emergent 7/17/2026 260717-SEA01686 8:06:00 AM 8:13:00 AM 7.00 No appropriate choice (medical response) 29 Carlton Emergent 7/22/2026 260722-SEA01725 8:04:00 PM 8:11:00 PM 7.00 Unknown problem (medical) 29 Pheasant Ridge Emergent 7/23/2026 260723-SEA01730 9:36:00 AM 9:41:00 AM 5.00 Accidental alarm 29 Pheasant Ridge Emergent 7/23/2026 260723-SEA01734 1:45:00 PM 1:53:00 PM 8.00 Cancelled 29 Canyon Del Rey Non emergent 7/23/2026 260723-SEA01738 8:38:00 PM 8:45:00 PM 7.00 Fall 29 Carlton Emergent 7/27/2026 260727-SEA01763 3:55:00 PM 4:02:00 PM 7.00 Lift assist 29 Pheasant Ridge Emergent Total Calls 14

SEASIDE FIRE DEPARTMENT
City of Del Rey Oaks - Response Report
31 Item 2.

FIRE DEPARTMENT
1635 Broadway Avenue Telephone (831) 899-6790
Seaside, CA 93955 FAX (831) 899-6261
August 11, 2026
John Guertin, City Manager
Del Rey Oaks City Hall
650 Canyon Del Rey
Del Rey Oaks, CA 93940
Dear Mr. Guertin:

Enclosed is a copy of the response reports for the Seaside Fire Department response to Del Rey Oaks for the period of July 1, 2026, through July 31, 2026.

The Seaside Fire Department responded to the following incidents in July:

Incident #
260701-SEA01553 260713-SEA01658 260723-SEA01730
260702-SEA01557 260715-SEA01676 260723-SEA01734
260705-SEA01587 260715-SEA01677 260723-SEA01738
260706-SEA01594 260717-SEA01686 260727-SEA01763
260709-SEA01622 260722-SEA01725
There are fourteen (14) fire calls for July. If you have any questions, please contact me.

Sincerely,
Paul Blaha
Fire Chief
CC: File
32 Item 2.

Staff Report
DATE: August 25, 2026
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Receive July 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
Receive July 2026 Financial Reports.

Background
The Members of the Budget and Finance Committee routinely receive financial reports for the previous month.

Summary & Discussion
Attached are the July 2026 financial reports.
• July 2026 Cash and Investments – The report shows where the City’s funds are invested.

The City continues to have a healthy cash balance of $12,863,079, much of which is restricted for specific purposes.
• July 2026 Check Register –This is a listing of all the payments issued during the month. The total checks issued are $710,607.
• July 2026 General Fund Summary – This is a one-page summary of the General Fund summarized as follows:
1 33
Item 3.

At 8.33% of the year (1 month) the revenues are at 8%. Expenditure is 18% of the budget due to all the payments made at the beginning of the year for FY 2027 UAL, InsurancesLiability, Workers Comp & Property. For the month of July 2026, the General Fund shows a deficit net revenue over expenditure of $596,115.
• July 2026 Statement of Revenues and Expenditures – shows fiscal year-to-date actuals in comparison with FY 2027 Budget.
• Encumbrance Summary Report represents the purchase orders with a total outstanding balance of $173,215 as of July 30, 2026. The carryover purchase orders from FY 2026 in the amount of $560,157 will be recorded after review.

Fiscal Impacts
None. This is informational only.

Recommendation
Staff recommend receiving the reports.

ATTACHMENTS:
• Cash and Investments 2026-07
• Check/Voucher Register 2026-07
• General Fund Summary 2026-07
• Statement of Revenues & Expenditures 2026-07
• Encumbrance Summary 2026-07
Respectfully Submitted,
______________________________
John Guertin, City Manager
2 34
Item 3.

Accounts
Unrestricted
General Checking $ 805,097
Cash with TDS-Parking 500
Local Agency Investment Fund
Reserve for Economic Uncertainties 1,652,182 3.840%
Unappropriated Funds 1,659,414 3.840%
Total Unrestricted $ 4,117,193
Restricted
PARS-115 Trust Fund $ 410,842
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 $ 8,745,886
Total Cash and Investments $ 12,863,079
City of Del Rey Oaks
Summary of Cash & Investments
As of July 31, 2026
3 35
Item 3.

Check NumbePayee Transaction Description Check Amount
23741 ALLIANT INSURANCE Policy Renewal 7/1/26 to 7/1/2027 $ 4,791.00 23742 AMBAG Member Jurisdiction Dues FY 2026-27 858.66
23743 City of Sand City Monterey Peninusla Regional SRU FY 2026 - 2027 5,000.00 23744 CivicPlus, LLC Municode Meetings Premium Annual 06-01-26 to 05-31-27 4,920.00 CivicPlus, LLC Online Code Hosting, Muni Codificaiton Ord Bank & Ord Link 925.23 23745 ClearGOV FY 26-27 Budget Software 11,330.00
23746 CoPower Dental Premiums 2026-07 2,687.19
23747 Compass Ethics One Years Access to Compass EthiCards 1,250.00 23748 ICMA Membership Renewal for FY 07/01/26 to 06/30/27 960 23749 MONTEREY BAY TECHNOLOGIES, INC. IT Services Retainer 2026-07 2,100.00 23750 MONTEREY COUNTY WEEKLY CLASSIFIEDS Notice of Election 175.5 23751 PRECISION ALARMS AND AUTOMATION, INC. Alarm Inspections & Monitoring 2026-07 170 23752 PORAC LEGAL DEFENSE FUND Legal Defense Fund 2026-07 1,073.25 PORAC LEGAL DEFENSE FUND Legal Defense Fund Reserves 2026-07 168 23753 Peace Officers Research Association of California ASSN ID#3162 PORAC 2026-07 283 Peace Officers Research Association of California ASSN ID#3163 PORAC Reserve 2026-07 72 23754 PURE WATER Supplies 2026-07 81.5
23755 RingCentral, Inc. Service Period 06/29/2025 to 07/28/2026 337.15 23756 US Bank Equipment Finance Konika Minolta Copier Lease 2026-07 135.8 23757 Veritone, Inc Tech Services 7/17/26 - 7/16/27 1,700.00 23758 VSP Vision Premium 2026-07 262.81
23773 AMERICAN LOCK & KEY Dog Park Keys 245.82
23774 AT&T Internet City Hall & PD Service Period 07-13-26 to 08-12-26 203.3 23775 AT&T MOBIILITY Telephone Service Period 07/03 - 08/02/2026 CM 50.57 AT&T MOBIILITY Telephone Service Period 07/03/26 to 08/02/26 307.49 23776 BECK'S SHOES #2 Safety Shoes - Ron PW 302.89
23777 CoPower Dental Premiums 2026-08 2,450.70
23778 COASTAL PAVING & EXCAVATING, INC. Remove Plastic and Sand Bags from Hillside - Rosita Rd. 762.28 23779 JEREMY HALLOCK Jeremy Hallock - Reimbursement CHS Annual Lunch 2026-07 75 23780 MONTEREY BAY AREA INSURANCE FUND FY 26/27 Premium WC, Property, Liability Insurance 375,965.61 23781 MONTEREY COUNTY AUDITOR/CONTROLLER LAFCO Budget Allocation 2026-2027 2,799.66 23782 ODP Business Solutions, LLC Supplies 79.83
23783 TAMC CMP/Regional Transporation Planning Assessment FY 26-27 508 ACH 2026-
07-01 P.E.R.S.-HEALTH CalPERS 1800 Health 07/2026 45,292.23 ACH 2026-
07-02 PERS PERS 3100 Contribution Retirement 06/15-06/28/24 -Plan 26934 2,469.61 PERS PERS 3100 Contribution Retirement 6/13-6/26/26 -Plan 1364 671.93 PERS PERS 3100 Contribution Retirement 6/13/2026-6/26/2026 -Plan 25623 5,244.02 PERS PERS 3100 Contribution Retirment 6/13-6/26/26 -Plan 1365 4,072.91 ACH 2026-
07-29 PERS PERS UAL FY26/27 Annual Lump Sum Prepayment - Misc 26934 PEPRA 58,882.00 PERS PERS UAL FY26/27 Annual Lump Sum Prepayment -25623 Safety PEPRA 155,673.00 APS 2026-
07-31 PERS CalPERS 1900 457 (07/31) Contribution 07/31/2026 3,200.00 PERS PERS 3100 Contribution Retirement 07/11-07/24/26 -Plan 26934 2,464.89 PERS PERS 3100 Contribution Retirement 7/11-7/24/26 -Plan 1364 671.54 PERS PERS 3100 Contribution Retirement 7/11-7/24/26 -Plan 25623 5,350.96 PERS PERS 3100 Contribution Retirment 7/11-7/24/26 -Plan 1365 3,581.43 Report Total $ 710,606.76
City of Del Rey Oaks
Check/Voucher Register
From 07/01/2026 Through 07/31/2026
4 36
Item 3.

FY 2027
Budget
July
2026
Actual
FY 2027
YTD Actual
Percent
Collected
/Spent
Revenues
Property Taxes 000 887,435.00 0.00 0.00 0.00%
Sales Tax 000 1,206,835.00 117,183.05 117,183.05 9.70%
Other Taxes 000 610,600.00 83,882.44 83,882.44 13.73%
Licenses and Permits 000 370,400.00 44,495.35 44,495.35 12.01% Fines and Forfeitures 000 28,100.00 3,195.17 3,195.17 11.37% Other Revenue 000 194,700.00 32,547.39 32,547.39 16.71% Grants 000 238,600.00 11,105.98 11,105.98 4.65%
Airport Police Services 000 1,665,780.00 124,083.00 124,083.00 7.44% Current Services 210 118,100.00 20,581.50 20,581.50 17.42% Total Revenues 5,320,550.00 437,073.88 437,073.88 8.21% Expenditures
Council 110 110 19,950.00 2,557.34 2,557.34 12.81%
City Clerk 111 111 727,700.00 158,085.87 158,085.87 21.72% City Manager 120 120 377,550.00 66,065.87 66,065.87 17.49% Finance 130 130 273,208.51 12,305.71 12,305.71 4.50%
Legal 150 150 128,065.30 497.25 497.25 0.38%
Planning & Building Regulation 160 160 188,526.75 0.00 0.00 0.00% Government Buildings 180 180 22,800.00 806.10 806.10 3.53% Non-Departmental 190 190 57,800.00 21,828.30 21,828.30 37.76% Police 210 210 3,292,281.04 734,757.25 734,757.25 22.31% Fire/Animal Control 220 220 251,700.00 0.00 0.00 0.00%
Public Works/Streets 311 311 269,300.00 33,495.52 33,495.52 12.43% Parks/Recreation 411 411 37,200.00 2,789.63 2,789.63 7.49% Total Expenditures 5,646,081.60 1,033,188.84 1,033,188.84 18.30% Excess(Deficit) of Revenue Over Expenditures (325,531.60) (596,114.96) (596,114.96) 183.12% City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 07/01/2026 Through 07/31/2026
5 37
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
P/T-Secured 41110 611,800.00 0.00 0.00 0.00%
P/T-Unsecured 41120 31,850.00 0.00 0.00 0.00%
P/T-Prior Secured 41130 6,325.00 0.00 0.00 0.00%
Prior Unsecured 41140 100.00 0.00 0.00 0.00%
P/T-Unitary Tax 41150 13,770.00 0.00 0.00 0.00%
P/T-Supplemental Roll (SB813) 41160 12,650.00 0.00 0.00 0.00% Property Tax - VLF 41170 208,590.00 0.00 0.00 0.00%
Prop Tax-Interest/Penalty 41180 2,350.00 0.00 0.00 0.00% Sales Tax 42210 415,135.00 38,950.96 38,950.96 9.38%
Sales Tax - 145 (Measure S-1%) 42220 527,800.00 52,154.98 52,154.98 9.88% Sales Tax -409 (Measure R 1/2%) 42221 263,900.00 26,077.11 26,077.11 9.88% Cannabis Tax 42222 100,000.00 7,373.28 7,373.28 7.37%
Transient Occupancy Tax 42230 275,000.00 48,221.87 48,221.87 17.53% STR Annual Licenses Fee 42231 13,600.00 1,019.00 1,019.00 7.49% Property Transfer Tax 42250 8,700.00 369.05 369.05 4.24% Sewer Impact 42290 22,200.00 0.00 0.00 0.00%
Business Licenses 42310 235,000.00 20,716.35 20,716.35 8.81% HOUP (Home Occupational User Permit) 42311 3,500.00 650.00 650.00 18.57% Gas Franchises 42761 8,700.00 0.00 0.00 0.00%
Electric Franchises 42762 25,000.00 0.00 0.00 0.00%
Garbage Franchises 42763 120,000.00 27,918.24 27,918.24 23.26% Cable Tv Franchises 42764 26,000.00 0.00 0.00 0.00%
Water Franchises 42765 25,000.00 0.00 0.00 0.00%
SB1186 Disability Access Fund 43311 1,000.00 232.00 232.00 23.20% SB1473 Environmental Assessment Fee 43312 150.00 46.00 46.00 30.66% Variance Fee 43318 4,000.00 0.00 0.00 0.00%
Architectural Review (ARC) 43319 1,500.00 0.00 0.00 0.00% Building Permits 43320 71,000.00 19,468.00 19,468.00 27.41% Strong-Motion Instrumental Program (SMIP)
Fees
43322 350.00 254.93 254.93 72.83%
Cannabis Business Permit 43325 6,200.00 0.00 0.00 0.00% Plan Check Fees 43330 17,000.00 0.00 0.00 0.00%
Encroachment/Street Opening Permits Fees 43340 7,100.00 2,211.00 2,211.00 31.14% Plumbing Permits 43350 1,800.00 0.00 0.00 0.00%
Electrical Permits 43360 3,500.00 0.00 0.00 0.00%
Tree Removal Permits 43361 2,300.00 309.00 309.00 13.43% Other Licenses/Permits 43390 1,000.00 0.00 0.00 0.00%
Fines & Forfeitures 45000 2,600.00 208.17 208.17 8.00%
Vehicle Code Fines 45510 5,500.00 1,043.00 1,043.00 18.96% Parking and Admin Fines 45512 20,000.00 1,944.00 1,944.00 9.72% Interest Earned 46100 160,000.00 32,014.46 32,014.46 20.00% Interest Earned-PARS 46101 28,500.00 0.00 0.00 0.00%
Rental Income - Airport RV 46816 43,000.00 4,002.50 4,002.50 9.30% HOPTR 47130 1,200.00 0.00 0.00 0.00%
Vehicle License Collection 47140 2,500.00 0.00 0.00 0.00% COPS 47240 194,000.00 8,333.33 8,333.33 4.29%
SB1383 Organics Recycling 47243 6,000.00 1,250.00 1,250.00 20.83% Prop 172 47750 20,000.00 1,522.65 1,522.65 7.61%
Wellness Program 47760 7,500.00 0.00 0.00 0.00%
Police Grants & Other Reimbursements 47780 2,500.00 0.00 0.00 0.00% POST Reimbursements 47781 7,000.00 0.00 0.00 0.00%
Grant Other Agencies 47783 1,600.00 0.00 0.00 0.00%
6 38
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Police Service Fees 48210 1,600.00 242.00 242.00 15.12% Police Services-Special Events 48211 43,500.00 14,040.00 14,040.00 32.27% Use Permits 48805 9,400.00 62.00 62.00 0.65%
Maps/Publications 48810 100.00 0.00 0.00 0.00%
Property Inspections 48825 2,600.00 519.00 519.00 19.96% Miscellaneous Revenue 48840 6,500.00 122.00 122.00 1.87% Credit Card Processing Fee 48841 4,000.00 668.00 668.00 16.70% LAFCO Refund & Interest for FORA 48842 400.00 0.00 0.00 0.00% Rental - Park 48910 7,000.00 926.00 926.00 13.22%
Day Use Permits (Park only) 48911 1,500.00 122.00 122.00 8.13% Old Town Hall Rental Fee 48912 1,400.00 0.00 0.00 0.00% Miscellaneous Refunds 48930 1,000.00 0.00 0.00 0.00%
Total Non Department Specific 3,654,770.00 312,990.88 312,990.88 8.56% Police 210 210
Airport Police Services 48220 1,665,780.00 124,083.00 124,083.00 7.44% Total Police 210 1,665,780.00 124,083.00 124,083.00 7.45% Total Revenue 5,320,550.00 437,073.88 437,073.88 8.21%
Expenditures
Council 110 110
Council Member Stipend 61115 7,500.00 525.00 525.00 7.00% Medicare-ER 61130 200.00 43.31 43.31 21.65%
Social Security-ER 61131 500.00 0.00 0.00 0.00%
Unemployment Ins-Fed & State 61132 100.00 0.00 0.00 0.00% Dental Expense 61135 8,100.00 1,914.03 1,914.03 23.63%
Materials/Supply 62410 550.00 0.00 0.00 0.00%
Membership Dues-Professional Org 64550 2,500.00 0.00 0.00 0.00% Misc Expenses 64580 500.00 0.00 0.00 0.00%
Travel Expenses 64610 0.00 75.00 75.00 0.00%
Total Council 110 19,950.00 2,557.34 2,557.34 12.82%
City Clerk 111 111
Payroll 61105 265,500.00 30,139.19 30,139.19 11.35%
Overtime 61110 5,000.00 1,078.56 1,078.56 21.57%
PERS UAL - After 06/30/18 61123 17,679.00 16,760.53 16,760.53 94.80% PERS UAL-Before 06/30/2018 61124 42,121.00 42,121.47 42,121.47 100.00% PERS Retirement 61125 28,100.00 2,465.17 2,465.17 8.77% Medicare-ER 61130 4,000.00 450.90 450.90 11.27%
Unemployment Ins-Fed & State 61132 1,200.00 0.00 0.00 0.00% Dental Expense 61135 5,700.00 1,341.75 1,341.75 23.53%
Health Insurance 61140 138,900.00 11,059.39 11,059.39 7.96% Vision Ins 61145 800.00 119.20 119.20 14.90%
Workers Comp and EAP 61150 4,000.00 3,068.00 3,068.00 76.70% Wellness Program 61155 1,500.00 60.17 60.17 4.01%
Educational Incentive Pay 61157 6,000.00 738.46 738.46 12.30% Longevity Pay 61158 3,700.00 493.05 493.05 13.32%
Materials/Supply 62410 4,500.00 40.75 40.75 0.90%
Office Supplies 62430 7,000.00 496.97 496.97 7.09%
Repair/Maintenance 63505 1,000.00 0.00 0.00 0.00%
Other Outside Services 63508 14,500.00 147.00 147.00 1.01% Shredding Services 63509 1,000.00 0.00 0.00 0.00%
Short Term Rental Services 63511 15,000.00 0.00 0.00 0.00% Telephone 63530 3,000.00 388.03 388.03 12.93%
Internet 63531 1,500.00 101.65 101.65 6.77%
Website Design & Maintenance 63535 1,000.00 0.00 0.00 0.00% 7 39
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Postage / Shipping 63540 2,000.00 0.00 0.00 0.00%
Training 63605 6,000.00 133.57 133.57 2.22%
Insurance-Liability 63620 87,800.00 38,768.00 38,768.00 44.15% Contract Services - IT 63635 11,200.00 2,100.00 2,100.00 18.75% Software/Server Subscription 64310 15,500.00 168.83 168.83 1.08% Agenda Management System 64315 12,700.00 4,920.00 4,920.00 38.74% Municipal Code Service 64320 5,000.00 925.23 925.23 18.50% Membership Dues-Professional Org 64550 1,000.00 0.00 0.00 0.00% Membership Dues-Government Agency 64552 800.00 0.00 0.00 0.00% Printing / Publications 64575 1,000.00 0.00 0.00 0.00%
Misc Expenses 64580 500.00 0.00 0.00 0.00%
Election Cost 64588 10,000.00 0.00 0.00 0.00%
Travel Expenses 64610 1,500.00 0.00 0.00 0.00%
Total City Clerk 111 727,700.00 158,085.87 158,085.87 21.72% City Manager 120 120
Payroll 61105 214,035.00 24,024.00 24,024.00 11.22%
PERS UAL - After 06/30/18 61123 500.00 0.00 0.00 0.00%
PERS Retirement 61125 17,000.00 1,788.40 1,788.40 10.52% Medicare-ER 61130 3,100.00 348.36 348.36 11.23%
Unemployment Ins-Fed & State 61132 100.00 0.00 0.00 0.00% Dental Expense 61135 2,400.00 579.87 579.87 24.16%
Health Insurance 61140 54,700.00 4,342.36 4,342.36 7.93% Health Insurance -Retiree 61141 1,900.00 162.00 162.00 8.52% Vision Ins 61145 400.00 31.42 31.42 7.85%
Workers Comp and EAP 61150 3,000.00 2,045.00 2,045.00 68.16% Wellness Program 61155 500.00 0.00 0.00 0.00%
Educational Incentive Pay 61157 465.00 0.00 0.00 0.00%
Auto Allowance 61180 5,400.00 623.10 623.10 11.53%
Office Supplies 62430 50.00 0.00 0.00 0.00%
Insurance-Liability 63620 68,400.00 31,014.00 31,014.00 45.34% Economic Development Services 63639 0.00 147.36 147.36 0.00% Membership Dues-Professional Org 64550 2,800.00 960.00 960.00 34.28% Membership Dues-Government Agency 64552 800.00 0.00 0.00 0.00% Travel Expenses 64610 1,000.00 0.00 0.00 0.00%
Training 64611 1,000.00 0.00 0.00 0.00%
Total City Manager 120 377,550.00 66,065.87 66,065.87 17.50% Finance 130 130
ADP Payroll Fees 62310 9,000.00 641.35 641.35 7.12%
Bank Service Charges 62320 6,000.00 334.36 334.36 5.57% Credit Card Fees 62321 5,000.00 0.00 0.00 0.00%
Accounting Software 62431 6,000.00 0.00 0.00 0.00%
Budget Software 62433 11,000.00 11,330.00 11,330.00 103.00% Audit-General 63625 50,215.00 0.00 0.00 0.00%
Audit -Sales Tax 63626 5,000.00 0.00 0.00 0.00%
Actuarial Services 63627 4,500.00 0.00 0.00 0.00%
Accounting Services-RGS 63645 176,493.51 0.00 0.00 0.00% Total Finance 130 273,208.51 12,305.71 12,305.71 4.50%
Legal 150 150
Legal Services 63650 124,765.30 0.00 0.00 0.00%
Legal Advert 64560 3,300.00 497.25 497.25 15.06%
Total Legal 150 128,065.30 497.25 497.25 0.39%
Planning & Building Regulation 160 160
Economic Development Services 63639 67,295.00 0.00 0.00 0.00% Planning Services 63640 40,000.00 0.00 0.00 0.00%
8 40
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Contract Services - Housing Element 63642 16,831.75 0.00 0.00 0.00% Building Inspections Services 63648 62,400.00 0.00 0.00 0.00% Code Enforcement Services 63656 2,000.00 0.00 0.00 0.00% Total Planning & Building Regulation 160 188,526.75 0.00 0.00 0.00% Government Buildings 180 180
Materials/Supply 62410 2,000.00 0.00 0.00 0.00%
Repair/Maintenance 63505 5,000.00 0.00 0.00 0.00%
Other Outside Services 63508 1,000.00 0.00 0.00 0.00%
Utilities - PG&E 63520 8,000.00 456.10 456.10 5.70%
Janitorial Services 63660 6,800.00 350.00 350.00 5.14%
Total Government Buildings 180 22,800.00 806.10 806.10 3.54% Non-Departmental 190 190
Materials/Supply 62410 500.00 0.00 0.00 0.00%
Insurance-Liability 63620 25,000.00 0.00 0.00 0.00%
Insurance-Property 63621 10,000.00 7,010.63 7,010.63 70.10% Membership Dues-Professional Org 64550 500.00 0.00 0.00 0.00% Membership Dues-Non Profit Agency Contrib 64551 15,000.00 3,000.00 3,000.00 20.00% Membership Dues-Government Agency 64552 5,500.00 10,491.67 10,491.67 190.75% Misc Expenses 64580 1,000.00 1,326.00 1,326.00 132.60%
S.M.I.P. 64930 200.00 0.00 0.00 0.00%
SB 1473 64940 100.00 0.00 0.00 0.00%
Total Non-Departmental 190 57,800.00 21,828.30 21,828.30 37.77% Police 210 210
Payroll 61105 1,188,900.00 118,557.37 118,557.37 9.97%
Overtime 61110 200,000.00 25,406.84 25,406.84 12.70%
Reserves Payroll 61120 120,000.00 22,413.68 22,413.68 18.67% PERS UAL - After 06/30/18 61123 41,684.00 41,600.79 41,600.79 99.80% PERS UAL-Before 06/30/2018 61124 119,016.00 114,072.21 114,072.21 95.84% PERS Retirement 61125 167,100.00 15,805.61 15,805.61 9.45% PERS 457 Expense 61126 32,400.00 2,400.00 2,400.00 7.40% Medicare-ER 61130 17,700.00 3,245.34 3,245.34 18.33%
Social Security-ER 61131 1,000.00 0.00 0.00 0.00%
Unemployment Ins-Fed & State 61132 13,000.00 0.00 0.00 0.00% Dental Expense 61135 16,200.00 3,931.87 3,931.87 24.27% Health Insurance 61140 387,300.00 26,388.20 26,388.20 6.81% Vision Ins 61145 2,400.00 381.50 381.50 15.89%
Workers Comp and EAP 61150 141,900.00 96,132.36 96,132.36 67.74% Wellness Program 61155 5,000.00 0.00 0.00 0.00%
Educational Incentive Pay 61157 18,000.00 1,846.19 1,846.19 10.25% Longevity Pay 61158 11,400.00 1,348.23 1,348.23 11.82%
Uniform Allowance 61160 10,000.00 2,250.00 2,250.00 22.50% Admin Leave 61175 0.00 13,295.52 13,295.52 0.00%
Materials/Supply 62410 10,000.00 552.75 552.75 5.52%
Ammunition 62420 5,000.00 0.00 0.00 0.00%
Body Armor Vests 62422 5,000.00 0.00 0.00 0.00%
Office Supplies 62430 5,000.00 254.28 254.28 5.08%
Auto Operations - Supplies / Equip 62710 1,000.00 0.00 0.00 0.00% Auto Operations - Fuel 62720 30,000.00 0.00 0.00 0.00%
Repair/Maintenance 63505 2,200.00 0.00 0.00 0.00%
Other Outside Services 63508 8,000.00 282.80 282.80 3.53% Shredding Services 63509 1,000.00 0.00 0.00 0.00%
Utilities - PG&E 63520 8,000.00 456.10 456.10 5.70%
Telephone 63530 8,000.00 631.83 631.83 7.89%
Internet 63531 6,000.00 482.56 482.56 8.04%
9 41
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Annual Maintenance-Records Mgmt Software 63537 5,000.00 0.00 0.00 0.00% Record Management-Historical 63538 3,600.00 3,863.62 3,863.62 107.32% Postage / Shipping 63540 750.00 0.00 0.00 0.00%
Training 63605 6,000.00 780.07 780.07 13.00%
Insurance-Liability 63620 388,400.00 175,745.00 175,745.00 45.24% Insurance-Property 63621 10,000.00 7,010.62 7,010.62 70.10% Insurance-Vehicles 63622 2,550.00 2,395.50 2,395.50 93.94% Insurance-ADWRP 63624 1,000.00 1,226.00 1,226.00 122.60% Audit-General 63625 5,275.00 0.00 0.00 0.00%
Actuarial Services 63627 2,500.00 0.00 0.00 0.00%
Professional Services 63628 16,000.00 0.00 0.00 0.00%
Contract Services - IT 63635 14,100.00 2,100.00 2,100.00 14.89% Contract Services-Others 63637 9,200.00 2,500.00 2,500.00 27.17% Legal Services 63650 3,800.00 932.50 932.50 24.53%
Janitorial Services 63660 6,300.00 700.00 700.00 11.11% 911-NGEN Phase II Upgrade 63664 7,000.00 0.00 0.00 0.00% 911-Radio Dispatch 63665 61,100.00 15,267.00 15,267.00 24.98% 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 14,300.00 3,559.00 3,559.00 24.88%
911-NGEN Debt (Capital Fee) 63669 8,100.00 7,689.00 7,689.00 94.92% Auto Repair/Maintenance 63730 32,326.04 3,285.73 3,285.73 10.16% Parking & Admin Citations Services 63812 9,000.00 873.59 873.59 9.70% Animal Regulation Fire 63820 500.00 0.00 0.00 0.00%
Fund Jail & Prisoner 63830 1,500.00 0.00 0.00 0.00%
ACJIS System 63840 12,000.00 0.00 0.00 0.00%
Software/Server Subscription 64310 22,700.00 2,950.00 2,950.00 12.99% Personnel Recruit & Pre-Employment 64545 3,000.00 0.00 0.00 0.00% Membership Dues-Professional Org 64550 10,500.00 1,596.25 1,596.25 15.20% Membership Dues-Non Profit Agency Contrib 64551 500.00 0.00 0.00 0.00% Membership Dues-Government Agency 64552 6,300.00 5,000.00 5,000.00 79.36% Books and Periodicals 64565 900.00 0.00 0.00 0.00%
Printing / Publications 64575 2,000.00 0.00 0.00 0.00%
Misc Expenses 64580 2,200.00 0.00 0.00 0.00%
Travel Expenses 64610 13,000.00 271.00 271.00 2.08%
Principal-Motorola Lease-Cameras 65104 21,350.00 0.00 0.00 0.00% Principal-Dell 65105 5,300.00 5,276.34 5,276.34 99.55%
Interest-Dell 65205 630.00 0.00 0.00 0.00%
Total Police 210 3,292,281.04 734,757.25 734,757.25 22.32% Fire/Animal Control 220 220
Fire Seaside 63810 251,700.00 0.00 0.00 0.00%
Total Fire/Animal Control 220 251,700.00 0.00 0.00 0.00% Public Works/Streets 311 311
Payroll 61105 87,800.00 10,123.20 10,123.20 11.52%
Overtime 61110 0.00 126.54 126.54 0.00%
PERS UAL - After 06/30/18 61123 500.00 0.00 0.00 0.00%
PERS Retirement 61125 7,100.00 684.68 684.68 9.64%
Medicare-ER 61130 1,300.00 148.62 148.62 11.43%
Unemployment Ins-Fed & State 61132 100.00 0.00 0.00 0.00% Dental Expense 61135 1,600.00 380.94 380.94 23.80%
Health Insurance 61140 42,100.00 3,340.28 3,340.28 7.93% Vision Ins 61145 200.00 31.42 31.42 15.71%
Workers Comp and EAP 61150 1,300.00 1,023.00 1,023.00 78.69% Wellness Program 61155 500.00 168.00 168.00 33.60%
10 42
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
100 - General Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Educational Incentive Pay 61157 1,200.00 138.45 138.45 11.53% Materials/Supply 62410 10,000.00 495.49 495.49 4.95%
Office Supplies 62430 800.00 0.00 0.00 0.00%
Auto Operations - Supplies / Equip 62710 1,500.00 0.00 0.00 0.00% Auto Operations - Fuel 62720 4,000.00 0.00 0.00 0.00%
Repair/Maintenance 63505 17,900.00 762.28 762.28 4.25%
Other Outside Services 63508 500.00 0.00 0.00 0.00%
Gabilan Crew 63515 1,500.00 0.00 0.00 0.00%
Utilities - PG&E 63520 5,000.00 9.53 9.53 0.19%
Utilities - Water 63525 6,250.00 665.68 665.68 10.65%
Telephone 63530 300.00 45.52 45.52 15.17%
Internet 63531 600.00 0.00 0.00 0.00%
Training 63605 1,000.00 33.39 33.39 3.33%
Insurance-Liability 63620 28,400.00 12,923.00 12,923.00 45.50% Insurance-Vehicles 63622 5,000.00 2,395.50 2,395.50 47.91% Engineering Services 63649 3,600.00 0.00 0.00 0.00%
SB1383 Organics Waste Regs Services 63654 21,000.00 0.00 0.00 0.00% Hazardous Waste Disposal 63655 250.00 0.00 0.00 0.00%
Auto Repair/Maintenance 63730 2,500.00 0.00 0.00 0.00%
Storm Water Project - Phase 4 64920 15,000.00 0.00 0.00 0.00% Equipment 66302 500.00 0.00 0.00 0.00%
Total Public Works/Streets 311 269,300.00 33,495.52 33,495.52 12.44% Parks/Recreation 411 411
Materials/Supply 62410 10,000.00 245.82 245.82 2.45%
Office Supplies 62430 100.00 0.00 0.00 0.00%
Repair/Maintenance 63505 20,000.00 1,540.00 1,540.00 7.70% Utilities - Water 63525 7,000.00 653.81 653.81 9.34%
Janitorial Services 63660 0.00 350.00 350.00 0.00%
Travel Expenses 64610 100.00 0.00 0.00 0.00%
Total Parks/Recreation 411 37,200.00 2,789.63 2,789.63 7.50% Total Expenditures 5,646,081.60 1,033,188.84 1,033,188.84 18.30% Net Revenues (325,531.60) (596,114.96) (596,114.96) 183.12% Other Financing Sources and Uses
Non Department Specific 000
Transfers Out to CIP 81003 (78,000.00) 0.00 0.00 0.00%
Total Non Department Specific (78,000.00) 0.00 0.00 0.00% Total Other Financing Sources and Uses (78,000.00) 0.00 0.00 0.00% Net Revenues After Other Financing Sources and
Uses
(403,531.60) (596,114.96) (596,114.96) 147.72%
11 43
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
210 - Gas Tax Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
Gas Tax 2103 47010 15,000.00 1,064.64 1,064.64 7.09%
Gas Tax 2105 47020 10,100.00 822.28 822.28 8.14%
Gas Tax 2106 47030 9,200.00 757.17 757.17 8.23%
Gas Tax 2107 47040 13,700.00 1,134.35 1,134.35 8.27%
Gas Tax 2107.5 47050 1,000.00 0.00 0.00 0.00%
Total Non Department Specific 49,000.00 3,778.44 3,778.44 7.71% Total Revenue 49,000.00 3,778.44 3,778.44 7.71%
Expenditures
Public Works/Streets 311 311
Repair/Maintenance 63505 5,000.00 0.00 0.00 0.00%
Street Sweeping 63510 12,070.00 0.00 0.00 0.00%
Street Lighting 63910 21,900.00 1,654.00 1,654.00 7.55% Principal-PG&E 65751 2,550.00 210.83 210.83 8.26%
Total Public Works/Streets 311 41,520.00 1,864.83 1,864.83 4.49% Total Expenditures 41,520.00 1,864.83 1,864.83 4.49%
Net Revenues 7,480.00 1,913.61 1,913.61 25.58%
Net Revenues After Other Financing Sources and
Uses
7,480.00 1,913.61 1,913.61 25.58%
12 44
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
211 - SB1 Fund-RMRA
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
SB 1 Funds 47777 44,305.00 3,673.59 3,673.59 8.29%
Total Non Department Specific 44,305.00 3,673.59 3,673.59 8.29% Total Revenue 44,305.00 3,673.59 3,673.59 8.29%
Net Revenues 44,305.00 3,673.59 3,673.59 8.29%
Net Revenues After Other Financing Sources and
Uses
44,305.00 3,673.59 3,673.59 8.29%
13 45
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
212 - Measure X Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
Measure X 47775 100,705.00 0.00 0.00 0.00%
Total Non Department Specific 100,705.00 0.00 0.00 0.00% Total Revenue 100,705.00 0.00 0.00 0.00%
Expenditures
Debt Service - Measure X 610
Principal - Measure X Loan 65103 87,705.00 0.00 0.00 0.00% Interest - Measure X 65203 13,000.00 0.00 0.00 0.00%
Total Debt Service - Measure X 100,705.00 0.00 0.00 0.00% Total Expenditures 100,705.00 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%
14 46
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
214 - RSTP
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Revenue
Non Department Specific 000
RSTP Funds 47776 15,600.00 0.00 0.00 0.00%
Total Non Department Specific 15,600.00 0.00 0.00 0.00% Total Revenue 15,600.00 0.00 0.00 0.00%
Net Revenues 15,600.00 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
15,600.00 0.00 0.00 0.00%
15 47
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
221 - FORA Habitat Management Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Expenditures
Planning & Building Regulation 160 160
Contract Services - Habitat Management Plan 63646 32,764.20 0.00 0.00 0.00% Total Planning & Building Regulation 160 32,764.20 0.00 0.00 0.00% Total Expenditures 32,764.20 0.00 0.00 0.00%
Net Revenues (32,764.20) 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
(32,764.20) 0.00 0.00 0.00%
16 48
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
236 - Drug Enforcement Administration (DEA)
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Revenue
Police 210 210
DEA Reimbursements 47782 40,000.00 0.00 0.00 0.00%
Total Police 210 40,000.00 0.00 0.00 0.00%
Total Revenue 40,000.00 0.00 0.00 0.00%
Expenditures
Police 210 210
Overtime-DEA 61111 40,000.00 1,638.36 1,638.36 4.09%
Total Police 210 40,000.00 1,638.36 1,638.36 4.10%
Total Expenditures 40,000.00 1,638.36 1,638.36 4.10%
Net Revenues 0.00 (1,638.36) (1,638.36) 0.00%
Net Revenues After Other Financing Sources and
Uses

0.00 (1,638.36) (1,638.36) 0.00%
17 49
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
301 - Capital Projects
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Expenditures
Vehicle Replacement 533
Vehicle Replacement 66735 45,000.00 0.00 0.00 0.00%
Total Vehicle Replacement 45,000.00 0.00 0.00 0.00%
Server Replacement 540
Server Replacement 66303 20,000.00 0.00 0.00 0.00%
Total Server Replacement 20,000.00 0.00 0.00 0.00%
PD Radio Replacement 543
PD Radio Replacement 66736 10,000.00 0.00 0.00 0.00%
Total PD Radio Replacement 10,000.00 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 Parking Lot Improvements 548
City Hall Parking Lot Impvts 66429 13,114.00 0.00 0.00 0.00% Total City Hall Parking Lot Improvements 13,114.00 0.00 0.00 0.00% Total Expenditures 91,114.00 0.00 0.00 0.00%
Net Revenues (91,114.00) 0.00 0.00 0.00%
Other Financing Sources and Uses
Vehicle Replacement 533
Transfers In from GF 82003 45,000.00 0.00 0.00 0.00%
Total Vehicle Replacement 45,000.00 0.00 0.00 0.00%
Server Replacement 540
Transfers In from GF 82003 20,000.00 0.00 0.00 0.00%
Total Server Replacement 20,000.00 0.00 0.00 0.00%
PD Radio Replacement 543
Transfers In from GF 82003 10,000.00 0.00 0.00 0.00%
Total PD Radio Replacement 10,000.00 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%
Total Other Financing Sources and Uses 78,000.00 0.00 0.00 0.00% Net Revenues After Other Financing Sources and
Uses
(13,114.00) 0.00 0.00 0.00%
18 50
Item 3.

City of Del Rey Oaks
Statement of Revenues and Expenditures
321 - SBR Engineering Fund
From 7/1/2026 Through 7/31/2026
Budget
FY 2027
Actual
July 2026
Actual
FY 2027 YTD
Collected/Spent
Percent
Expenditures
SBR Contract-Engineering & Others 518
Contract Services - Engineering 63611 389,825.48 0.00 0.00 0.00% Total SBR Contract-Engineering & Others 389,825.48 0.00 0.00 0.00% Total Expenditures 389,825.48 0.00 0.00 0.00%
Net Revenues (389,825.48) 0.00 0.00 0.00%
Net Revenues After Other Financing Sources and
Uses
(389,825.48) 0.00 0.00 0.00%
19 51
Item 3.

Vendor Name PO Number Encumbrance Description Enc Date
Encumbrance
Amount
Current
Balance Fund Code
DeptProject
Code GL Code
MONTEREY BAY TECHNOLOGIES, INC. PO2627-2 FY 26-27 It Service Retainer 7/1/2026 12,600.00 10,500.00 100 111 63635 MONTEREY BAY TECHNOLOGIES, INC. PO2627-2 FY 26-27 It Service Retainer 7/1/2026 12,600.00 10,500.00 100 210 63635 Total PO2627-2 FY 26-27 It Service Retainer 7/1/2026 21,000.00 21,000.00 ClearGOV PO2627-3 FY 26-27 Budget Software 7/1/2026 11,330.00 0.00 100 130 62433 JAMES DE CHALK PO2627-4 FY26-27 Janitorial Services 7/1/2026 4,200.00 3,850.00 100 180 63660 JAMES DE CHALK PO2627-4 FY26-27 Janitorial Services 7/1/2026 8,400.00 7,700.00 100 210 63660 JAMES DE CHALK PO2627-4 FY26-27 Janitorial Services 7/1/2026 4,200.00 3,850.00 100 411 63660 Total PO2627-4 FY26-27 Janitorial Services 7/1/2026 16,800.00 15,400.00 G.P.S. SOLUTIONS PO2627-5 FY26/27 Plan Checking/Building Inspection Si
7/1/2026 62,400.00 62,400.00 100 160 63648
Dell Financial Services LLC PO2627-6 Power Edge R660xs Server 7/1/2026 5,276.34 0.00 100 210 65105 County of Monterey PO2627-7 FY26/27 9-1-1 Dispatch & Related Svcs 7/1/2026 1,326.00 0.00 100 190 64580 County of Monterey PO2627-7 FY26/27 9-1-1 Dispatch & Related Svcs 7/1/2026 61,067.00 45,800.00 100 210 63665 County of Monterey PO2627-7 FY26/27 9-1-1 Dispatch & Related Svcs 7/1/2026 1,000.00 1,000.00 100 210 63666 County of Monterey PO2627-7 FY26/27 9-1-1 Dispatch & Related Svcs 7/1/2026 14,234.00 10,675.00 100 210 63668 County of Monterey PO2627-7 FY26/27 9-1-1 Dispatch & Related Svcs 7/1/2026 7,689.00 0.00 100 210 63669 Total PO2627-7 FY26/27 9-1-1 Dispatch & Related Svcs 7/1/2026 85,316.00 57,475.00 SMITH & ENRIGHT LANDSCAPING, INC. PO2627-8 FY 26-27 Landscape Maintenance 7/1/2026 18,480.00 16,940.00 100 411 63505 Report Balance $ 209,272.34 $ 173,215.00
City of Del Rey Oaks
Encumbrance Summary
Balance as of 07/31/2026
20 52
Item 3.

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Denise Duffy & Associates, City Planning Consultant DATE: August 25, 2026
Subject: Waive the First Reading, Conduct a Public Hearing, and Adopt an Ordinance to Repeal and Replace Chapter 17.70 of the City of Del Rey Oaks Municipal Code for Consistency with State Law (Government Code Sections 66310–66342).

Recommendation: That the City Council waive the first reading, conduct a public hearing, and adopt an ordinance to the City of Del Rey Oaks Municipal Code and replace it with a new Chapter

17.70 regarding the Accessory Dwelling Units (ADU) ordinance (Attachment 1). The proposed ordinance will modify the City’s ADU regulations for consistency with State law, incorporating technical assistance provided by the California Department of Housing and Community Development (HCD) and promote the development of ADUs.

The Purpose of Local ADU Ordinances: Under California housing law and policy, ADUs and JADUs are recognized as critical components to expanding the infill housing supply. The replacement ADU ordinance will bring the City’s ADU law into regulatory compliance with the State’s recent ADU laws passed between 2022 and 2025, prevent State preemption (Government Code Section 66326(d)), and provide a clear framework for local property owners.

Background and Current Summary of State Legislation: Between 2022 and 2025, the State Legislature adopted a series of laws that reduce barriers to ADU development and require local jurisdictions to ministerially approve qualifying applications. Although the City previously adopted ADU regulations (Ordinance No. 308), subsequent statutory changes established new requirements and clarified existing provisions concerning development standards, permitting timelines, and the allowance of ADUs and JADUs.

While the City of Del Rey Oaks currently enforces and follows all applicable State housing statutes in its daily operations, the City’s ordinance has not yet been amended to reflect these mandates.

To address this and to respond to State requirements, the Municipal Code is proposed to be formally amended, consistent with State law.
53 Item A.

This action also satisfies the requirements communicated in two technical assistance letters from HCD: an initial HCD Findings Letter dated August 14, 2024, and a subsequent HCD Letter of Technical Assistance dated February 27, 2026. Together, these communications track legislative mandates and provide the direction on compliance with the recent updated HCD ADU Handbook (March 2026). The August 2024 letter listed non-compliant sections of Del Rey Oaks Ordinance No. 308—such as outdated statutory numbering following the passage of Senate Bill 477. The subsequent February 27, 2026, letter provides a follow-up technical assistance notice, adding the new 2025 statutory updates.

The proposed ADU ordinance integrates both State mandates and the recommendations provided in HCD’s 2024 and 2026 communications with the City. The ADU ordinance amendments would ensure compliance with current state regulations, specifically Government Code Sections 66310-66342. The amendment is also consistent with the City’s adopted 2023-2031 6th Cycle Housing Element Update, including Program C.2, Encourage the Construction of Accessory Dwelling Units. In addition to promoting the development of ADUs, the program provides that the City will continue to review and update the ADU ordinance in compliance with updated State regulations.

The Planning Commission held a public hearing on August 12, 2026, and considered the revisions to Del Rey Oaks Municipal Code Chapter 17.70 regarding ADUs. The Commission unanimously approved a motion to recommend that the City Council repeal and replace the existing ADU ordinance. The Planning Commission Staff Report is included as Attachment 2.

Environmental Determination (CEQA): The adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17, which provides that CEQA does not apply to the adoption of an ordinance by a city or county to implement Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of the Government Code, which is State ADU and JADU law. This ordinance implements State law governing ADU and JADUs, and is, therefore, statutorily exempt from CEQA.

Recommended Action
City Council waive the first reading, conduct a public hearing, and adopt an ordinance to City of Del Rey Oaks Municipal Code and replace it with a new Chapter 17.70 regarding the Accessory Dwelling Units (ADU) ordinance (Attachment 1).

Attachments

1. Draft City Council Ordinance Del Rey Oaks Municipal Code Chapter 17.70 (Accessory Dwelling Units and Junior Accessory Dwelling Units).

2. Planning Commission Staff Report, August 12, 2026.
54 Item A.

Attachment 1
Draft City Council Ordinance Del Rey Oaks Municipal Code Chapter 17.70 (Accessory Dwelling Units and Junior Accessory Dwelling Units). 55 Item A.

DRAFT CITY COUNCIL ORDINANCE NO. 2026-325

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DEL REY OAKS

REPEALING THE EXISTING ACCESSORY DWELLING UNIT ORDINANCE IN ITS

ENTIRETY AND APPROVING A COMPREHENSIVE REPLACEMENT TO CHAPTER

17.70 OF THE DEL REY OAKS MUNICIPAL CODE TO ENSURE FORMAL TEXTUAL

COMPLIANCE WITH REVISED CALIFORNIAN STATE HOUSING MANDATES (GOVERNMENT CODE SECTIONS 66310–66342)
WHEREAS, the State of California is experiencing a housing supply crisis, with housing demand far outstripping supply; and
WHEREAS, the California Department of Housing and Community Development (HCD) issued an official Ordinance Findings Letter on August 14, 2024, followed by a subsequent Letter of Technical Assistance to the City of Del Rey Oaks on February 27, 2026, noting that while the City adheres to current state law in its administrative practices, the formal ordinance text on file remains outdated; and [1]
WHEREAS, the California Legislature passed Senate Bill 477 (2024), which completely repealed the former statutory chapters governing local secondary dwellings and renumbered them into an entire newly consolidated state framework under California Government Code Sections 66310 through 66342; and [1]
WHEREAS, the State has enacted legislation to encourage the construction of Accessory Dwelling Units (“ADU”), which includes new standards that limit how municipalities can regulate the permitting and development of ADUs; and
WHEREAS, California Government Code Section 66326(d) provides that if a local agency fails to update its municipal code or timely respond to state corrections, its existing local zoning rules are rendered entirely null and void as a matter of law, stripping the City of all local development controls; and
WHEREAS, the City currently implements all state-mandated ADU and Junior ADU streamlined requirements, but recognizes that amending the formal municipal text is necessary to align the Del Rey Oaks Municipal Code with active statutory structures; and WHEREAS, the Planning Commission of the City of Del Rey Oaks conducted a duly noticed public hearing on August 12, 2026, reviewed the text amendments, and recommended the approval of the replacement ordinance text for City Council approval.

WHEREAS, the City Council (“Council”) recognizes that ADU can provide additional affordable housing opportunities in the City; and
WHEREAS, the Council finds that it is appropriate to repeal Chapter 17.70 regarding “Accessory Dwelling Units” and replace this code with new standards for ADU; and 56 Item A.

WHEREAS, on August 25, 2026, the Council conducted a public hearing to consider the Commission’s recommendation, and after considering public testimony, the staff report and all submitted evidence, the Council now desires to approve the proposed ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DEL REY OAKS DOES HEREBY ORDAIN AS FOLLOWS:
57 Item A.

SECTION 1: REPEAL AND REPLACEMENT OF CHAPTER 17.70
Chapter 17.70 of the Del Rey Oaks Municipal Code is hereby amended, repealed in parts, and replaced to read in its entirety as follows:

CHAPTER 17.70 - ACCESSORY DWELLING UNITS

17.70.010 - Purpose and Intent
The purpose of this chapter is to regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in conformity with California Government Code Title 7, Division 1, Chapter 13 (Sections 66310 through 66342). These provisions are designed to allow infill housing production while protecting the established public health, safety, and singlefamily/multifamily residential parameters of Del Rey Oaks.

17.70.020 - Definitions
• "Accessory Dwelling Unit" or "ADU" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single family or multifamily dwelling is or will be situated. An ADU also includes the following (Government Code Section 66313(a)):
o An efficiency unit.
o A manufactured home as defined in Section 18007 of the Health and Safety Code. • “Efficiency Unit” means a dwelling unit that contains a minimum of 190 square feet in living space, a separate closet, kitchen sink, cooking appliance, refrigerator, and a separate bathroom containing a water closet, lavatory, bathtub, or shower (Government Code Section 66313(c); Health and Safety Code Section 17958.1). • “Manufactured Home” means a structure that was constructed on or after June 15, 1976, is transportable in one (1) or more sections, is eight (8) body feet or more in width, or 40 body feet or more in length, in the traveling mode, or, when erected on site, is 320 or more square feet, is built on a permanent chassis and designed to be used as a singlefamily dwelling with or without a foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained therein (Health and Safety Code Section 18007(a)).
• "Junior Accessory Dwelling Unit" or "JADU" means a unit that is no more than 500 square feet in interior livable space and contained entirely within a single-family residence. A JADU may include separate sanitation facilities or may share sanitation facilities with the existing structure (Government Code Section 66313(d)). • "Livable Space" means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation (Government Code Section 66313(e)). • “Objective Development Standards” means standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an 58 Item A.
external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.

17.70.030 - Processing, Timelines, and Rolling Objections • A. Application and Fee: Application for an ADU shall be processed ministerially and shall be accompanied by the appropriate fee. An ADU shall be permitted through the issuance of a building permit.
• B. Completeness Review: Within fifteen (15) business days of receiving an application for an ADU or JADU, the City shall issue a written determination to the applicant specifying whether the application is complete or incomplete (Government Code Section 66317(a)(1)-(2)).
• C. Deemed Complete: If the City fails to provide a written determination of incompleteness within fifteen (15) business days, the application shall be deemed complete by operation of law as of the sixteenth (16th) business day, and the mandatory 60-day ministerial clock to approve or deny the permit shall commence (Government Code Section 66317(a)(2)(F) and 66317(a)(3)).
• D. Prohibition on Rolling Objections: If an application is deemed incomplete, the City's written notice shall itemize all missing or non-compliant elements. When the applicant resubmits corrected plans, the City shall not raise any new objections, comments, or requests for information that were not explicitly cited in the initial written notice of incompleteness. The City is subject to the same review timelines described under subparagraph (B). (Government Code Section 66317(a)(2)(B)-(F). • E. Approval Process: The City shall approve or deny the application within 60 days from the date the City received the completed application if there is an existing singlefamily or multifamily dwelling on the lot. If the permit application to create or sever an ADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the City may delay approving or denying the permit application for the ADU until the City approves or denies the permit application to create the new singlefamily or multifamily dwelling, but the application to create or sever the ADU shall be considered without discretionary review or hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the City has not approved or denied the completed application within 60 days, the application shall be deemed approved. The City may charge a fee to reimburse it for costs incurred to implement this section, including the costs of adopting or amending any ordinance that provides for the creation of an ADU (Government Code Section 66317(a)(3)). • F. Appeals: An applicant may appeal a completeness determination pursuant to Section

17.70.030(D) or denial pursuant Section 17.70.030(E) in writing to the Planning Commission, no later than 15 calendar days from either action. The Planning Commission must issue a written determination on the appeal within 60 business days of the City’s receipt of the written appeal. The Planning Commission’s decision is final and not appealable.
• G. Right to Appeal: If a permit application for an ADU or JADU is deemed incomplete or is denied, the permitting agency is required to establish a process allowing the 59 Item A.
applicant to appeal the decision in writing. This appeal must be directed to the Planning Commission per section 17.70.030(F) of this Chapter.

17.70.040 – Permitted Uses, Requirements, and Restrictions • A. Permitted Zones: ADUs and JADUs are permitted ministerially in any zone where residential or mixed-use developments are allowed by right or conditional use. • B. Ownership and Separate Sale: An ADU or JADU shall not be sold or otherwise conveyed separately from the primary dwelling, except as authorized by California Government Code Section 66341 for properties built or developed by qualified housing non-profit corporations, or if the City explicitly adopts an AB 1033 partition framework. • C. Owner Occupancy:

1. ADUs: Owner occupancy is not required for an ADU.

2. JADUs: Owner occupancy is required in either the remaining portion of the primary residence or the JADU itself where the JADU unit has shared sanitation facilities with the existing structure. Owner-occupancy shall not be required if the JADU unit has separate sanitation facilities, or if the owner is another governmental agency, land trust, or housing organization (Government Code Section 66333(b)).
• D. Short-Term Rental Restriction: No ADU or JADU shall be rented or offered for rent for a period of less than thirty (30) consecutive days (Government Code Section 66323(e)).

17.70.050 – Spatial and Design Configurations
• A. Statewide Exempt ADUs ("66323 Units"): The City shall ministerially approve a building permit for ADUs and JADUs conforming with Government Code Section 66323. 66323 Units need only comply with the development standards set forth in this subsection. Lots with existing or proposed single family developments are entitled to no more than three (3) 66323 Units: one (1) internal ADU, one (1) JADU, and one (1) detached ADU, as more specifically described below:
o 1. Single-Family Developments:
i. One (1) internal ADU and (1) JADU. For a lot with an existing or proposed single-family dwelling, one (1) internal ADU and/or one (1) JADU if all of the following requirements are met.
a. The ADU or JADU is within the proposed space of a single-family dwelling or existing space of a single-family dwelling, accessory building, or accessory structure. ADUs converted from an accessory building or structure are eligible for a 150-square-foot expansion. An expansion beyond the physical dimensions of the existing accessory building or structure shall be limited to accommodating ingress and egress.
60 Item A.
b. The space has exterior access from the proposed or existing singlefamily dwelling. c. The side and rear setbacks are sufficient for fire and safety. d. The JADU complies with the requirements of Government Code Section 66333 et seq.
e. Internal ADUs and JADUs, constructed concurrently with the primary dwelling unit, shall not exceed the maximum allowed floor area limit or floor area ratio of the zoning district. f. The height of an attached unit shall not exceed a height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower. This subparagraph shall not require the City to allow an ADU to exceed two (2) stories (Government Code Section 66321(b)(4)(D).
ii. One (1) detached ADU. For a lot with an existing or proposed singlefamily dwelling, one (1) detached, new construction ADU that meets all the following requirements.
a. The ADU shall not exceed 800 square feet of interior livable space. b. The ADU shall have a minimum rear and side setback of four (4) feet.
c. The ADU shall conform to the following maximum height limitations (Government Code Section 66321):
▪ A height of 16 feet for a detached ADU on a lot with an existing or proposed single family dwelling unit.
▪ A height of 18 feet for a detached ADU on a lot with an existing or proposed single family dwelling unit that is within one-half of one (1) mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code.

The City shall also allow an additional two (2) feet in height to accommodate a roof pitch on the ADU that is
aligned with the roof pitch of the primary dwelling unit. o 2. Multifamily Developments:
i. Internal Multifamily ADUs. ADUs are permitted within portions of existing multifamily residential structures not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, provided each unit complies with building standards. At least one (1) internal ADU and up to twenty-five percent (25%) of the existing number of multifamily dwelling units are permitted. 61 Item A.
ii. Detached Multifamily ADUs. ADUs that are located on a lot that has an existing or proposed multifamily dwelling, but are detached from that multifamily dwelling, are subject to the following:
a. On a lot with an existing multifamily dwelling, not more than eight (8) detached ADUs. However, the number of ADUs allowable pursuant to this clause shall not exceed the number of existing units on the lot.
b. On a lot with a proposed multifamily dwelling, not more than two (2) detached ADUs. Once two (2) detached ADUs have been constructed as part of a new or proposed multifamily development, no additional detached ADUs can be constructed on-site. c. The ADU shall have a minimum rear and side setback of four (4) feet. However, if the existing multifamily dwelling has a rear or side setback of less than four (4) feet, no modification of the existing multifamily dwelling shall be required as a condition of approving the application to construct an ADU that satisfies the requirements of this subsection.
d. The ADU shall conform to the following maximum height limitations (Government Code Section 66321):
▪ A height of 16 feet for a detached ADU on a lot with an existing or proposed multifamily dwelling unit.
▪ A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily dwelling unit that is
within one-half of one (1) mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code.

The City shall also allow an additional two (2) feet in height to accommodate a roof pitch on the ADU that is
aligned with the roof pitch of the primary dwelling unit. ▪ A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily, multistory dwelling.
• B. Non-Exempt ADU Standards: For units exceeding 800 square feet, the following limits apply, provided they do not physically block the assembly of an 800-square-foot unit:

1. One (1) bedroom or studio: Maximum of 1,000 square feet.

2. Two (2) or more bedrooms: Maximum of 1,200 square feet.

3. Setbacks: A minimum of four (4) feet for rear and side property lines is required for any new construction. Zero (0) feet setback is required for conversions of existing legal structures or structures rebuilt in the exact same location and footprint.
62 Item A.
• C. Objective Design Standards: No objective development or design standard shall be imposed on an ADU authorized by this section unless expressly authorized by Government Code Section 66323(b). Correction of nonconforming zoning conditions shall not be required as a condition of ministerial ADU or JADU approval, consistent with Government Code Section 66323(c).
• D. Fire Sprinklers: The installation of fire sprinklers shall not be required in an ADU or a JADU if sprinklers are not required for the primary residence. The construction of an ADU or a JADU shall not trigger a requirement for fire sprinklers to be installed in the existing multifamily dwelling (Government Code Section 66323(d)).

17.70.060 - Parking Mandates
• A. Parking requirements for an ADU shall not exceed one (1) parking space per unit or per bedroom, whichever is less.
• B. No parking space shall be required for an ADU if it is:

1. Located within a one-half mile walking distance of public transit.

2. Located within an architecturally and historically significant historic district.

3. Part of the proposed or existing primary residence or an accessory structure.

4. When on-street parking permits are required but not offered to the occupant of the ADU.

5. When there is a car share vehicle located within one (1) block of the ADU.

6. When a permit application for an ADU is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the ADU or the parcel satisfies any other criteria listed in Government Code section 66322, subdivision (a)(1)-(5).

7. ADUs subject to Government Code Section 66323.
• C. When a garage, carport, or covered parking structure is demolished or converted in conjunction with the construction of an ADU, the City shall not require the property owner to replace or re-establish those displaced vehicular parking spaces.

17.70.070 - Fees and Utility Exemptions.
• A. Impact Fees: No development impact fees (including traffic, parks, and public facilities) shall be assessed by the City for any ADU under 750 square feet. Development impact fees for units 750 square feet or larger shall be assessed proportionally relative to the square footage of the primary dwelling (Government Code Section 66311.5(a)-(d). • B. School District Fees: Any ADU or JADU containing five hundred (500) square feet or less of interior livable space shall be completely exempt from school impact fees, in strict compliance with current state handbook protections (Government Code Section 66311.5(c)).
63 Item A.

17.70.080 – Utilities.
• A. Utility Connections: The City cannot require ADUs and JADUs that qualify under Government Code Section 66323(a)(1) created from the existing space of a primary dwelling or accessory structure to install a new or separate connection unless the ADU or JADU is constructed concurrently with a new single-family dwelling. For all other ADUs and JADUs not created pursuant to Government Code Section 66323(a)(1), a new or separate connection directly from the utility to the ADU or JADU may be required (Government Code Section 66311.5(d)(e)).
• B. Utility Fees: Consistent with Government Code Section 66013, a utility connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed ADU. This fee or charge shall not exceed the reasonable cost of providing this service.

SECTION 2: SEVERABILITY
If any provision, section, paragraph, sentence, clause, or phrase of this ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses, or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 3: SUBMISSION TO STATE HCD
The City Clerk is hereby directed to submit a clean copy of this adopted ordinance to the California Department of Housing and Community Development (HCD) within sixty (60) days of passage to finalize the City’s statutory compliance file.

SECTION 4. This ordinance shall take effect thirty (30) days following its final adoption.

SECTION 5. The City Manager and City Clerk are directed to perform all tasks necessary to implement this ordinance.

SECTION 6: PUBLICATION. The City Clerk is hereby directed to publish in a newspaper of general circulation.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Del Rey Oaks, California, at its regular meeting held on the _____ day of _________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
64 Item A.
____________________________
Scott Donaldson, Mayor
ATTEST:
____________________________
Karen Minami, City Clerk
65 Item A.

Attachment 2
Planning Commission Staff Report
August 12, 2026
66 Item A.

PLANNING COMMISSION STAFF REPORT
TO: Chairperson and Members of the Planning Commission
John Guertin, City Manager
FROM: Denise Duffy & Associates, City Planning Consultants DATE: August 12, 2026
SUBJECT: Consider Revisions to Del Rey Oaks Municipal Code Chapter 17.70 Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units

RECOMMENDATION
That the Planning Commission receive the staff report, conduct a public hearing, review the proposed text amendments, and vote to recommend that the City Council repeal Chapter 17.70 of the Del Rey Oaks Municipal Code regarding Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) in its entirety, and adopt a replacement ordinance (please refer to Exhibit 1).

The Purpose of Local ADU Ordinances: Under California housing law and policy, ADUs and JADUs are recognized as critical components to expanding infill housing supply. The State Legislature has adopted a series of laws that reduce barriers to ADU development and require local jurisdictions to ministerially approve qualifying applications. Although the City previously adopted ADU regulations, subsequent statutory changes established new requirements and clarified existing provisions concerning development standards, permitting timelines, and the allowance of ADUs and JADUs.

Background Ordinance Compliance: The City of Del Rey Oaks last updated its ADU ordinance in 2021 through Ordinance No. 308. Since then, the California Legislature has revised ADU and JADU requirements, permitting rights, and review procedures. The proposed replacement ordinance updates Chapter 17.70 to conform to Government Code Sections 66310–66342. The proposed replacement ordinance will also implement a provision of Program C.2, Encourage the Construction of Accessory Dwelling Units, in the adopted 2023–2031 Sixth Cycle Housing Element, which directs the City to continue reviewing and updating its ADU ordinance as State requirements change.

Regulatory Feedback: Correspondence from the California Department of Housing and Community Development (HCD) identified requirements to meet State law. HCD issued an initial compliance letter based upon its review of the City’s adopted ADU Ordinance, notifying the City that portions of Ordinance No. 308 were out of compliance with State criteria (August 14, 2024 HCD Findings Letter)(please refer to Exhibit 2). Following receipt of the letter, the City continued communication with HCD staff regarding needed ADU updates while also working to achieve a compliant Housing Element. In 2025, the State legislature passed another round of housing bills focused on ADUs, rendering some of the HCD 2024 recommendations outdated. HCD sent a separate letter in 2026 to identify more recent changes to the 67 Item A.

ADU requirements statewide. The 2026 letter notified the City that the City’s ADU Ordinance was outdated and conflicted directly with newly enacted statutes (February 27, 2026 HCD Letter of Technical Assistance)(please refer to Exhibit 3). The action before the Planning Commission responds directly to the concerns raised by HCD in their February 2026 letter and achieves stated objectives of the City’s Housing Element (Program C.2, Encourage the Construction of Accessory Dwelling Units).

The State Preemption (Government Code Section 66326(d)): The City of Del Rey Oaks currently processes and reviews all incoming ADU and JADU applications in accordance with State law. However, the outdated text in the existing ordinance creates administrative confusion. Under Government Code Section 66326(d), if a local agency fails to update its formal ordinance or fails to respond to HCD findings within the statutory timelines, that local ordinance is rendered null and void by operation of law. Adoption of the replacement ordinance consistent with State law will address State preemption and avoid administrative confusion.

ENVIRONMENTAL DETERMINATION (CEQA)
The adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17, which provides that CEQA does not apply to the adoption of an ordinance by a city or county to implement Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of the Government Code, which is State ADU and JADU law. This ordinance implements State law governing ADU and JADUs, and is, therefore, statutorily exempt from CEQA.

ACTION
The Planning Commission may vote to recommend approval to the City Council, instead of a separate written resolution. This action satisfies the requirement under Government Code Section 65855 for a written recommendation to the City Council, using the verified meeting minutes and a transmittal memo to the Council. The adoption sequence is as follows:

1. Planning Commission Review and Recommendation (Current Step): The Commission opens a public hearing and votes whether to recommend approval of the Replacement ADU and JADU Ordinance.

2. City Council Action: The recommendation will be transmitted to the City Council for their upcoming public hearing (currently scheduled for Tuesday, August 25, 2026), where the Replacement ADU and JADU Ordinance will be considered. Upon formal and final adoption, the staff will upload the adopted ordinance directly to the HCD portal to satisfy the 60-day legal submission window.

CONCLUSION
The proposed replacement ordinance will bring the City of Del Rey Oaks into formal, textual alignment with active California housing mandates. It resolves outstanding items flagged in HCD’s 2024 and 2026 letters, protects the City from State preemption, and provides a clear framework for local property owners.

RECOMMENDATION
Staff recommend that the Commission vote by direct motion and direct staff to reflect this recommendation to the City Council in the meeting minutes. 68 Item A.

LIST OF EXHIBITS
• Exhibit 1: Draft City Council Ordinance Del Rey Oaks Municipal Code Chapter 17.70 (Accessory Dwelling Units and Junior Accessory Dwelling Units)
• Exhibit 2: State HCD Technical Assistance Letter 2024 • Exhibit 3: State HCD Technical Assistance Letter 2026 69 Item A.

Exhibit 1
Draft City Council Ordinance Del Rey Oaks Municipal Code Chapter 17.70 (Accessory Dwelling Units and Junior Accessory Dwelling Units) 70 Item A.

DRAFT CITY COUNCIL ORDINANCE NO. 2026-___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DEL REY OAKS

REPEALING THE EXISTING ACCESSORY DWELLING UNIT CODE IN ITS

ENTIRETY AND APPROVING A COMPREHENSIVE REPLACEMENT AMENDMENT TO CHAPTER 17.70 OF THE DEL REY OAKS MUNICIPAL CODE TO ENSURE

FORMAL TEXTUAL COMPLIANCE WITH REVISED CALIFORNIAN STATE HOUSING MANDATES (GOVERNMENT CODE SECTIONS 66310–66342) WHEREAS, the State of California is experiencing a housing supply crisis, with housing demand far outstripping supply; and
WHEREAS, the California Department of Housing and Community Development (HCD) issued an official Ordinance Findings Letter on August 14, 2024, followed by a subsequent Letter of Technical Assistance to the City of Del Rey Oaks on February 27, 2026, noting that while the City adheres to current state law in its administrative practices, the formal ordinance text on file remains outdated; and [1]
WHEREAS, the California Legislature passed Senate Bill 477 (2024), which completely repealed the former statutory chapters governing local secondary dwellings and renumbered them into an entire newly consolidated state framework under California Government Code Sections 66310 through 66342; and [1]
WHEREAS, the State has enacted legislation to encourage the construction of Accessory Dwelling Units (“ADU”), which includes new standards that limit how municipalities can regulate the permitting and development of ADUs; and
WHEREAS, California Government Code Section 66326(d) provides that if a local agency fails to update its municipal code or timely respond to state corrections, its existing local zoning rules are rendered entirely null and void as a matter of law, stripping the City of all local development controls; and
WHEREAS, the City currently implements all state-mandated ADU and Junior ADU streamlined requirements, but recognizes that amending the formal municipal text is necessary to align the Del Rey Oaks Municipal Code with active statutory structures; and WHEREAS, the Planning Commission of the City of Del Rey Oaks conducted a duly noticed public hearing on August 12, 2026, reviewed the text amendments, and recommended the approval of the replacement ordinance text for City Council approval.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DEL REY OAKS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The City Council hereby finds and determines that all the foregoing recitals are true, accurate, and are incorporated into the body of this Ordinance.

SECTION 2. Complete Code Repeal & Replacement. The City Council hereby completely repeals the City's existing Accessory Dwelling Unit code frame (Ordinance No. 308) and replaces Chapter 17.70 of the Del Rey Oaks Municipal Code in its entirety with the text set forth within this Ordinance No. _______.

SECTION 3. Authority to Transmit. The City Council hereby directs the City Manager, or their designated representative, to transmit a copy of this adopted ordinance directly to California HCD within sixty (60) days of local adoption in accordance with state submittal mandates. 72 Item A.

CHAPTER 17.70 OF THE DEL REY OAKS MUNICIPAL CODE IN ITS ENTIRETY AND ADOPTING A REPLACEMENT CHAPTER 17.70 REGARDING ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS IN

COMPLIANCE WITH STATE LAW AND STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) MANDATES:

SECTION 1: REPEAL AND REPLACEMENT OF CHAPTER 17.70
Chapter 17.70 of the Del Rey Oaks Municipal Code is hereby amended, repealed in parts, and replaced to read in its entirety as follows:

CHAPTER 17.70 - ACCESSORY DWELLING UNITS

17.70.020 - Definitions
• "Accessory Dwelling Unit" or "ADU" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single family or multifamily dwelling is or will be situated. An ADU also includes the following (Government Code Section 66313(a)):
o An efficiency unit.
o A manufactured home as defined in Section 18007 of the Health and Safety Code. • “Efficiency Unit” means a dwelling unit that contains a minimum of 190 square feet in living space, a separate closet, kitchen sink, cooking appliance, refrigerator, and a separate bathroom containing a water closet, lavatory, bathtub, or shower (Government Code Section 66313(c); Health and Safety Code Section 17958.1). • “Manufactured Home” means a structure that was constructed on or after June 15, 1976, is transportable in one (1) or more sections, is eight (8) body feet or more in width, or 40 body feet or more in length, in the traveling mode, or, when erected on site, is 320 or more square feet, is built on a permanent chassis and designed to be used as a single-family dwelling with or without a foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained therein (Health and Safety Code Section 18007(a)).
• "Junior Accessory Dwelling Unit" or "JADU" means a unit that is no more than 500 square feet in interior livable space and contained entirely within a single-family residence. A JADU may include separate sanitation facilities or may share sanitation facilities with the existing structure (Government Code Section 66313(d)). 73 Item A.
• "Livable Space" means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation (Government Code Section 66313(e)). • “Objective Development Standards” means standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.

17.70.030(D) or denial pursuant Section 17.70.030(E) in writing to the Planning Commission, no later than 15 calendar days from either action. The Planning Commission must issue a written determination on the appeal within 60 business days of 74 Item A.
the City’s receipt of the written appeal. The Planning Commission’s decision is final and not appealable.
• G. Right to Appeal: If a permit application for an ADU or JADU is deemed incomplete or is denied, the permitting agency is required to establish a process allowing the applicant to appeal the decision in writing. This appeal must be directed to the Planning Commission per section 17.70.030(F) of this Chapter.

1. ADUs: Owner occupancy is not required for an ADU.

17.70.050 – Spatial and Design Configurations
• A. Statewide Exempt ADUs ("66323 Units"): The City shall ministerially approve a building permit for ADUs and JADUs conforming with Government Code Section 66323. 66323 Units need only comply with the development standards set forth in this subsection. Lots with existing or proposed single family developments are entitled to no more than three (3) 66323 Units: one (1) internal ADU, one (1) JADU, and one (1) detached ADU, as more specifically described below:
o 1. Single-Family Developments:
i. One (1) internal ADU and (1) JADU. For a lot with an existing or proposed single-family dwelling, one (1) internal ADU and/or one (1) JADU if all of the following requirements are met.
a. The ADU or JADU is within the proposed space of a single-family dwelling or existing space of a single-family dwelling, accessory building, or accessory structure. ADUs converted from an accessory building or structure are eligible for a 150-square-foot 75 Item A.
expansion. An expansion beyond the physical dimensions of the existing accessory building or structure shall be limited to accommodating ingress and egress.
b. The space has exterior access from the proposed or existing singlefamily dwelling. c. The side and rear setbacks are sufficient for fire and safety. d. The JADU complies with the requirements of Government Code Section 66333 et seq.
e. Internal ADUs and JADUs, constructed concurrently with the primary dwelling unit, shall not exceed the maximum allowed floor area limit or floor area ratio of the zoning district. f. The height of an attached unit shall not exceed a height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower. This subparagraph shall not require the City to allow an ADU to exceed two (2) stories (Government Code Section 66321(b)(4)(D).
ii. One (1) detached ADU. For a lot with an existing or proposed singlefamily dwelling, one (1) detached, new construction ADU that meets all the following requirements.
a. The ADU shall not exceed 800 square feet of interior livable space. b. The ADU shall have a minimum rear and side setback of four (4) feet.
c. The ADU shall conform to the following maximum height limitations (Government Code Section 66321):
▪ A height of 16 feet for a detached ADU on a lot with an existing or proposed single family dwelling unit.
▪ A height of 18 feet for a detached ADU on a lot with an existing or proposed single family dwelling unit that is within one-half of one (1) mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code.

The City shall also allow an additional two (2) feet in height to accommodate a roof pitch on the ADU that is
aligned with the roof pitch of the primary dwelling unit. o 2. Multifamily Developments:
i. Internal Multifamily ADUs. ADUs are permitted within portions of existing multifamily residential structures not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, provided each unit complies with building 76 Item A.
standards. At least one (1) internal ADU and up to twenty-five percent (25%) of the existing number of multifamily dwelling units are permitted. ii. Detached Multifamily ADUs. ADUs that are located on a lot that has an existing or proposed multifamily dwelling, but are detached from that multifamily dwelling, are subject to the following:
a. On a lot with an existing multifamily dwelling, not more than eight (8) detached ADUs. However, the number of ADUs allowable pursuant to this clause shall not exceed the number of existing units on the lot.
b. On a lot with a proposed multifamily dwelling, not more than two (2) detached ADUs. Once two (2) detached ADUs have been constructed as part of a new or proposed multifamily development, no additional detached ADUs can be constructed on-site. c. The ADU shall have a minimum rear and side setback of four (4) feet. However, if the existing multifamily dwelling has a rear or side setback of less than four (4) feet, no modification of the existing multifamily dwelling shall be required as a condition of approving the application to construct an ADU that satisfies the requirements of this subsection.
d. The ADU shall conform to the following maximum height limitations (Government Code Section 66321):
▪ A height of 16 feet for a detached ADU on a lot with an existing or proposed multifamily dwelling unit.
▪ A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily dwelling unit that is
within one-half of one (1) mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code.

1. One (1) bedroom or studio: Maximum of 1,000 square feet.

2. Two (2) or more bedrooms: Maximum of 1,200 square feet.

3. Setbacks: A minimum of four (4) feet for rear and side property lines is required for any new construction. Zero (0) feet setback is required for conversions of 77 Item A.
existing legal structures or structures rebuilt in the exact same location and footprint.
• C. Objective Design Standards: No objective development or design standard shall be imposed on an ADU authorized by this section unless expressly authorized by Government Code Section 66323(b). Correction of nonconforming zoning conditions shall not be required as a condition of ministerial ADU or JADU approval, consistent with Government Code Section 66323(c).
• D. Fire Sprinklers: The installation of fire sprinklers shall not be required in an ADU or a JADU if sprinklers are not required for the primary residence. The construction of an ADU or a JADU shall not trigger a requirement for fire sprinklers to be installed in the existing multifamily dwelling (Government Code Section 66323(d)).

1. Located within a one-half mile walking distance of public transit.

2. Located within an architecturally and historically significant historic district.

3. Part of the proposed or existing primary residence or an accessory structure.

4. When on-street parking permits are required but not offered to the occupant of the ADU.

5. When there is a car share vehicle located within one (1) block of the ADU.

17.70.070 - Fees and Utility Exemptions.
• A. Impact Fees: No development impact fees (including traffic, parks, and public facilities) shall be assessed by the City for any ADU under 750 square feet. Development impact fees for units 750 square feet or larger shall be assessed proportionally relative to the square footage of the primary dwelling (Government Code Section 66311.5(a)-(d). • B. School District Fees: Any ADU or JADU containing five hundred (500) square feet or less of interior livable space shall be completely exempt from school impact fees, in 78 Item A.
strict compliance with current state handbook protections (Government Code Section 66311.5(c)).

SECTION 2: SEVERABILITY
If any section, sentence, clause, or phrase of this ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter.

Exhibit 2
State HCD Technical Assistance Letter 2024
80 Item A.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 14, 2024
John Guertin, City Manager
City of Del Rey Oaks
650 Canyon Del Rey Blvd.

Del Rey Oaks, CA 93940
Dear John Guertin:

RE: Review of City of Del Rey Oak’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66310 – 66342)
Please Note: As of March 25, 2024, with the Chaptering of Senate Bill (SB) 477 (Chapter 7, Statutes of 2024), the sections of Government Code relevant to State ADU and junior accessory dwelling unit (JADU) Law have been re-numbered (Enclosure 1).

Thank you for submitting the City Del Rey Oak’s (City) ADU Ordinance No. 308 (Ordinance), adopted October 26, 2021, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 66326, subdivision (a). HCD finds that the Ordinance does not comply with State ADU and JADU Laws in the manner noted below. Under section 66326, subdivision (b)(1), the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than September 13, 2024.

The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects:

1. Statutory Numbering - The Ordinance contains several references to code sections that were deleted by SB 477, effective March 25, 2024. These include Government Code sections 65852.2, 65852.22 and 65852.26. The contents of these sections were relocated to Government Code, Title 7, Division 1, Chapter 13 (sections 66310-66342, see Enclosure). The City must amend the Ordinance to refer to the correct code sections.

2. Sections 17.70.020, 17.70.40(A) 17.70.050 (B)(3) - Definitions & General JADU Requirements - The Ordinance defines a Junior Accessory Dwelling Unit (JADU) as, “a unit…contained entirely within a single-family residence…” However, this definition omits reference to the conditions required in Government Code 66333, subdivision (d): “For purposes of this subdivision, 81 Item A.

John Guertin, City Manager

Page 2 ends

enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence.” The City must amend the Ordinance to note the allowance.

Additionally, Government Code section 66333, subdivision (e) states, “If a permitted junior accessory dwelling unit does not include a separate bathroom, the permitted junior accessory dwelling unit shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.” This requirement does not appear in the Ordinance, which must be amended accordingly.

3. Section 17.70.030 - Denial - The Ordinance states that the City shall “approve or deny [an] application within 60 days of receipt of the application…” However, there is no reference to the requirements stated in Government Code section 66317, subdivision (b): “If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.” The City must amend the Ordinance accordingly.

4. Section 17.70.40(B) - General ADU and JADU Requirements - The Ordinance states that, “ADUs and JADUs may not be sold separately from the primary dwelling.” However, Government Code section 66341 creates a narrow exception to allow separate conveyance of an ADU to a qualified buyer if the property was built or developed by a qualified nonprofit corporation, among other things. The City must amend the Ordinance to comply with State ADU Law.

5. Section 17.70.040 (C) - JADU Terms - The Ordinance states, “ADUs and JADUs shall not be rented for a period of less than thirty (30) days.” However, Government Code section 66333 does not require rental term minimums for JADUs and therefore such a requirement would be inconsistent with State JADU Law. The City must amend the Ordinance accordingly.

6. Section 17.70.050 (A)(1) - Design Standards - The Ordinance states, “ADUs are subject to the same requirements that apply to primary dwellings on the same lot in the applicable zoning district except as specified in this section.” However, Government Code section 66315 states, “Section 66314 establishes the maximum standards that a local agency shall use to evaluate a proposed accessory dwelling unit on a lot that includes a proposed or existing singlefamily dwelling. No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer.”
82 Item A.

John Guertin, City Manager

Page 3 ends

Additionally, Government Code section 66321, subdivision (b)(3) prohibits, “Any requirement for a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” Lastly, local development standards may not preclude the development of any unit subject to Government Code section 66323. The City must amend the Ordinance to note these exceptions.

7. Section 17.70.050 (C) (1) and (2) - Height - The Ordinance states, "1. A singlestory attached or detached ADU may not exceed 16 feet in height above grade, measured to the peak of the structure." and "2. A second story or two-story attached ADU addition may be permitted subject to an architectural permit and may not exceed the height of the zoning district. The minimum allowed height shall be 16 feet." However, Government Code section 66321, subdivision (b)(4) states that “Notwithstanding subdivision (a), a local agency shall not establish by ordinance any of the following…(4) Any height limitation that does not allow at least the following, as applicable…” The applicable height limits are 16, 18, 20 or 25 feet. Therefore, the City must amend the minimum height requirements in the Ordinance to comply with State ADU Law. Additionally, the City should align height measurement with the definitions stated in the California Building Code.

8. Section 17.70.050 (C)(2) - Architectural Permit - The Ordinance states, “A second story or two-story attached ADU addition may be permitted subject to an architectural permit…” However, pursuant to Government Code section 65852.2, subdivision (a)(3)(A), “A permit application for an accessory dwelling unit or a junior accessory dwelling unit shall be considered and approved ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits.” The Ordinance should only require ministerial provisions for the approval of accessory dwelling units. The City must amend their Ordinance to comply with State ADU Law.

9. Section 17.70.50 (F)(6) - Parking - The Ordinance states that, “No on-site parking is required for an ADU in the following cases…” It then describes conditions that match Government Code section 66322, subdivision (a)(1) through (a)(4) but omits reference to the conditions of (a)(5) and (a)(6).

Therefore, the City must amend the Ordinance to add the additional parking exceptions.
83 Item A.

John Guertin, City Manager

Page 4 ends

10.Section 17.70.50 (G)(2) - Sprinklers - The Ordinance states, “The installation of fire sprinklers shall not be required in an ADU if sprinklers are not required for the primary residence.” However, Government Code sections 66314, subdivision (d)(12) and 66323, subdivision (c) expand on this to require that “The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.” Therefore, the City must amend the Ordinance to note the allowance.

Please note that the City has two options in response to this letter1. The City can either amend the Ordinance to comply with State ADU Law2 or adopt the Ordinance without changes and include findings in its resolution adopting the Ordinance that explain the reasons the City believes that the Ordinance complies with State ADU Law despite HCD’s findings3. If the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD must notify the City and may notify the California Office of the Attorney General that the City is in violation of State ADU Law4.

HCD appreciates the City of Del Rey Oaks’ efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Mike Van Gorder at [email protected] if you have any questions.

Sincerely,
Jamie Candelaria
Senior Housing Accountability Unit Manager
Housing Policy Development Division
1 Gov. Code, § 66326, subd. (c)(1).
2 Gov. Code, § 66326, subd. (b)(2)(A).
3 Gov. Code, § 66326, subd. (b)(2)(B).
4 Gov. Code, § 66326, subd. (c)(1).
84 Item A.

State ADU/JADU Law Statutory Conversion Table
New Government Code Sections Previous Government Code Sections Article 1. General Provisions
66310 65852.150 (a)
66311 65852.150 (b)
66312 65852.150 (c)
66313 General Definition Section
65852.2 (j)
65852.22 (j)
Article 2. Accessory Dwelling Unit Approvals
66314 65852.2(a)(1)(A), (D)(i)-(xii), (a)(4)-(5)
66315 65852.2 (a)(8)
66316 65852.2 (a)(6)
66317 65852.2 (a)(3), (a)(7)
66318 65852.2 (a)(9), 65852.2 (a)(2)
66319 65852.2 (a)(10)
66320 65852.2 (b)
66321 65852.2 (c)
66322 65852.2 (d)
66323 65852.2 (e)
66324 65852.2 (f)
66325 65852.2 (g)
66326 65852.2 (h)
66327 65852.2 (i)
66328 65852.2 (k)
66329 65852.2 (l)
66330 65852.2 (m)
66331 65852.2 (n)
66332 65852.23.

Article 3. Junior Accessory Dwelling Units
66333 65852.22 (a)
66334 65852.22 (b)
66335 65852.22 (c)
66336 65852.22 (d)
66337 65852.22 (e)
66338 65852.22 (f)-(g)
66339 65852.22 (h)
Article 4. Accessory Dwelling Unit Sales
66340 65852.26 (b)
66341 65852.26 (a)
66342 65852.2 (a)(10)
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Exhibit 3
State HCD Technical Assistance Letter 2026
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
February 27, 2026
John Guertin
Planning Department Contact
City of Del Rey Oaks
650 Canyon Del Rey Blvd.

Del Rey Oaks, CA 93940
Dear John Guertin:

RE: City of Del Rey Oaks – Accessory Dwelling Unit (ADU) Ordinance Updates – Letter of Technical Assistance
The most recent ADU ordinance on file for the City of Del Rey Oaks with the California Department of Housing and Community Development (HCD) is from 2021. Given the numerous changes to State ADU Law since the adoption of the ordinance, the ordinance may be outdated and out of compliance with State ADU Law. If HCD’s records are incorrect, and a new ordinance has been adopted, please submit it to the ADU Portal for HCD’s review.

Below are the changes to State ADU Law that have occurred in recent years and may warrant an update to the City of Del Rey Oaks ADU ordinance:

Updates to the ADU Handbook (2025)
• Clarifies that ADU Law prohibits deed restrictions on ADUs. A deed restriction would be an “additional standard” and thus cannot be imposed on ADUs (Gov.

Code, § 66315).
• Clarifies that homeowners’ associations (HOAs), as a third party, cannot influence the approval of an application to create an ADU. Third party reviews by an HOA or their representatives or agents would violate State ADU Law. (Gov.

Code, § 66315.) No other local ordinances, policies, or regulations may be applied in the approval or denial of an ADU or junior ADU (JADU) permit application (Gov. Code, § 66317, subd. (c)).
• Clarifies that a local agency may not require parking as a condition to permitting a JADU, even when the JADU is converted from an attached garage (Gov. Code, § 66334, subd. (a)).
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Changes to ADU Law in 2025:
• Specifies that if a JADU has shared sanitation facilities with the primary structure, owner-occupancy will be required. If the JADU does not have shared sanitation facilities, owner-occupancy will not be required (Gov. Code, § 66333, subd. (b)).
• Requires rental terms for JADUs for terms longer than 30 days (Gov. Code, § 66333, subd. (g)).
• Specifies that if a local agency fails to submit an adopted ADU ordinance to HCD within the 60-day timeline or fails to respond to HCD’s findings regarding their ordinance within the 30-day timeline, that ordinance is null and void and the local agency must only apply State ADU Law when permitting ADUs (Gov.

Code, § 66326, subd. (d)).
• Revises the definition of a “junior accessory dwelling unit” to require the size of a JADU to be no more than 500 square feet of interior livable space (Gov. Code, § 66313, subd. (d)).
• Revises the limitations on impact fees to, instead, prohibit impact fees upon the development of an ADU that has 750 square feet of interior livable space or less or a JADU that has 500 square feet of interior livable space or less, and to require that any impact fee on an ADU that has more than 750 square feet of interior livable space be charged proportionately in relation to the square footage of the primary dwelling unit (Gov. Code, § 66311.5, subds. (a) – (d)). • Requires a permitting agency to determine whether an application for an ADU or JADU is complete and provide written notice of the determination not later than 15 business days after the permitting agency received the application (Gov.

Code, § 66317, subd. (a)(2)(A)).
• Requires the permitting agency to provide the applicant with a list of incomplete items and a description of how the application can be made complete in the written notice and authorizes the applicant to cure and address the application, as specified, if it is determined that an application is incomplete (Gov. Code, § 66317, subd. (a)(2)(B)).
• Requires the permitting agency to provide a process for the applicant to appeal a denied application, as provided, and requires the permitting agency to provide a final written determination by not later than 60 business days after receipt of the written appeal if a permit application is determined to be incomplete or is denied (Gov. Code, § 66317, subd. (d)(1)).
• Specifies that an ADU or JADU that contains less than 500 square feet of interior livable space does not increase assessable space. • Revises size limitations to be based on the square footage of interior living space of the ADU (Gov. Code, § 66321, subds. (b)(2)(A), (b)(2)(B), and (b)(3)). 88 Item A.

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• Specifies the number of allowable ADUs per lot with a proposed or existing single-family dwelling (Gov. Code, § 66323, subd. (a).
• Clarifies that fire sprinklers are not required for a JADU if the primary residence does not have fire sprinklers and that the addition of a JADU cannot trigger the requirement for fire sprinklers (Gov. Code, § 66323, subd. (d)). • Adds section 66333.5, which specifies that if a local agency fails to submit an adopted JADU ordinance to HCD within the 60-day timeline or fails to respond to HCD’s findings regarding their ordinance within the 30-day timeline, that ordinance is null and void and the local agency must only apply State ADU Law when processing applications for ADUs.
• Requires a local agency to issue a certificate of occupancy for an ADU constructed in a county that is subject to a proclamation of a state of emergency made by the Governor on or after February 1, 2025, even if the primary dwelling has not yet been issued a certificate of occupancy, if certain requirements are met, including that the primary dwelling was substantially damaged or destroyed by an event referenced in the state of emergency proclamation (Gov. Code, § 66328).
• Creates an exception to areas that fall under the California Coastal Act by requiring a local government or the Coastal Commission, as specified, to either approve or deny a coastal development permit application for an ADU within 60 days of receiving a completed application (Gov. Code, § 66329, subd. (a).) • Specifies that no reimbursement is required for school service charges, fees, or assessments sufficient to pay for the program or level of service within the meaning of Government Code section 17556 (Gov. Code, § 66329). • Specifies that reasonable restrictions in covenants, restrictions, and conditions, as described in the Civil Code, shall not include any fees or other financial requirements (Civil Code, § 714.3, subd. (b)).

Changes to ADU Law in 2024:
• SB 477 (Chapter 7, Statutes of 2024) made changes to the numbering of the sections of the Government Code for State ADU and JADU Laws. • Prohibits a local agency from denying a permit for an unpermitted ADU or JADU that was constructed before January 1, 2020, for building code violations, unless the local agency makes a finding that correcting the violation is necessary to comply with conditions that would otherwise deem a building substandard (Gov.

Code, § 66332, subds. (a)-(c)).
• Defines “livable space” as a space in a dwelling intended for human habitation, as the term appears in Government Code sections 66313, subdivision (e), and 66323, subdivision (a)(3)(A).
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• Provides that uncovered, off-street parking spaces demolished in conjunction with the construction of an ADU do not need to be replaced (Gov. Code, § 66314, subd. (d)(11)).
• Changes the allowable number of detached ADUs on a lot with an existing multifamily dwelling to eight detached ADUs, provided that the number of ADUs does not exceed the number of existing units on the lot (Gov. Code, § 66323, subd. (a)(4)(A)(ii)).
• Prohibits a local agency from imposing any objective development standards on 66323 Units that are not authorized by the provisions of Government Code section 66323, subdivision (a) (Gov. Code, § 66323, subd. (b)).

Changes to ADU Law in 2023:
• Sunsets a former prohibition on a local agency imposing an owner occupancy requirement on any ADU and instead prohibits a local agency from requiring owner occupancy for an ADU (Gov. Code, § 66315).
• Allows a local agency to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and ADU(s) as condominiums, subject to certain conditions (Gov. Code, §§ 66340-66342).

If an existing ADU ordinance fails to meet the requirements of State ADU Law, the ordinance is “null and void” and the local jurisdiction must apply the standards set forth in State ADU Law until it adopts an ordinance that complies with state law (Gov. Code, § 66316). HCD recommends that a local jurisdiction with a noncompliant ADU ordinance repeal the ordinance to provide clarity for ADU applicants who may otherwise rely on the outdated ordinance.

HCD requests a response by March 29, 2026 with either (1) a description of how the ADU ordinance continues to comply with State ADU Law despite the changes to the law, or (2) a plan and timeline to either repeal the current ordinance or adopt an amended, compliant ordinance and submit it to HCD for review.

If you have any questions or need additional information, please contact Mike VanGorder at [email protected].

Sincerely,
Jamie Candelaria
Section Chief, ADU Policy
Housing Accountability Unit
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Del Rey Oaks City CouncilAugust 25, 2026

Del Rey Oaks City Council
August 25, 2026