Agenda packet, special meeting, first session — King City City Council, July 28, 2026

AGENDA

SPECIAL MEETING OF THE

CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF

THE FORMER CDA FOR THE CITY OF KING
AND
Sitting as PUBLIC FINANCING AUTHORITY

FOR THE CITY OF KING
TUESDAY JULY 28, 2026
5:00 P.M.

CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
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CALL TO ORDER
ROLL CALL:

Council Members Oscar Avalos, Robert Cullen, Carlos Victoria, Mayor Pro Tem Carlos DeLeon, and Mayor Mike LeBarre

FLAG SALUTE

CLOSED SESSION ANNOUNCEMENTS

SPECIAL PRESENTATIONS

1. 2.

3. 4.

5. 6.

CLOSED SESSION ANNOUNCEMENTS

SPECIAL PRESENTATIONS

PUBLIC COMMENT
Any member of the public may address the Council for a period not to exceed three minutes’ total on any item of interest within the jurisdiction of this Council that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member.

Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.

COUNCIL COMMUNICATIONS & COMMITTEE REPORTS
Individual Council Members may comment on Council business, his or her Council activities, City operations, projects or other items of community interest. Council Members may also request staff to report back at a subsequent meeting on any matter or take action to direct staff to prepare a staff report for a future agenda.

STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.

CONSENT AGENDA
The following items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion. The Council may approve the remainder of the Consent Agenda on one motion. Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.

Consideration: A Resolution Of The City Council Of The City Of King, California, Submitting To The Voters For Consideration At The General Municipal Election To Be Consolidated With The Statewide General Election Held On Tuesday, November 3, 2026 A Ballot Measure That Would Reauthorize The Existing Locally Controlled Transaction And Use (Sales) Tax By Increasing The Tax Rate And Extending The Duration Thereof, Until It Is Ended By Voters; Requesting That The Monterey County Board Of Supervisors Consent To The Consolidation Of Such Ballot Measure On The Ballot Of Such General Municipal Election; Approving The Related Ordinance; Setting Forth The Regulations And Procedures For Arguments; And Directing The City Attorney To Draft An Impartial Analysis
Recommendation: 1) waive reading of title of Resolution No. 2026-5097 and adopt a Resolution submitting to City voters for consideration at the next regular election to be held on November 3, 2026 a ballot measure to adopt an Ordinance reauthorizing the existing locally controlled transaction and use tax, commonly known as a “sales tax”, at a rate of 1.5% (one and ½ cent) until ended by voters, approving the Ordinance attached thereto which will also be submitted to the voters, setting forth the regulations and procedures for arguments, and directing the City Attorney to draft an impartial analysis relating to the ballot measure.
9(A) BALLOT MEASURE FOR TRANSACTION AND USE TAX.PDF

PUBLIC HEARINGS
Consideration: Intent To Impose Special Assessment And Lien On 450 Jayne Street – APN 026-311-003 ACA Village
Recommendation: City Council adopt a Resolution imposing a special assessment 0 S026311003C

4. 5.

6. 7.

8. 9.

Documents:

10. A.

REGULAR BUSINESS

CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.

Conference With Legal Counsel – Regarding Pending Litigation Pursuant To Government Code Section §54956.9(D)(1). Case: 26CV003824 (Rava Ranches, Inc. And Fresh Foods, Inc. V. City Of King Et Al. Related To The Approval Of A Settlement Agreement Entered Into Between The City Of King And SGH Holding LLC).

ADJOURNMENT
The City of King is an equal opportunity provider and
employer

10. A.

Documents:

11. 12.

13. Item No. 9(A)

REPORT TO THE CITY COUNCIL
DATE: JULY 28, 2026
TO: CITY COUNCIL
FROM: JOSÉ A. ARREOLA, CITY MANAGER
RE: CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF KING, CALIFORNIA, SUBMITTING TO THE

VOTERS FOR CONSIDERATION AT THE GENERAL

MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE

STATEWIDE GENERAL ELECTION HELD ON TUESDAY,
NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED

TRANSACTION AND USE (SALES) TAX BY INCREASING THE

TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL
IT IS ENDED BY VOTERS; REQUESTING THAT THE

MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT

TO THE CONSOLIDATION OF SUCH BALLOT MEASURE ON
THE BALLOT OF SUCH GENERAL MUNICIPAL ELECTION;
APPROVING THE RELATED ORDINANCE; SETTING FORTH
THE REGULATIONS AND PROCEDURES FOR ARGUMENTS;

AND DIRECTING THE CITY ATTORNEY TO DRAFT AN

IMPARTIAL ANALYSIS
RECOMMENDATION:

It is recommended the City Council: 1) waive reading of title of Resolution No. 2026-5097 and adopt a Resolution submitting to City voters for consideration at the next regular election to be held on November 3, 2026 a ballot measure to adopt an Ordinance reauthorizing the existing locally controlled transaction and use tax, commonly known as a “sales tax”, at a rate of 1.5% (one and ½ cent) until ended by voters, approving the Ordinance attached thereto which will also be submitted to the voters, setting forth the regulations and procedures for arguments, and directing the City Attorney to draft an impartial analysis relating to the ballot measure.

CITY COUNCIL

CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS FOR

CONSIDERATION AT THE GENERAL MUNICIPAL ELECTION TO BE

CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED TRANSACTION

AND USE (SALES) TAX BY INCREASING THE TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL IT IS ENDED BY VOTERS; REQUESTING

THAT THE MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT TO

THE CONSOLIDATION OF SUCH BALLOT MEASURE ON THE BALLOT OF SUCH GENERAL MUNICIPAL ELECTION; APPROVING THE RELATED
ORDINANCE; SETTING FORTH THE REGULATIONS AND PROCEDURES FOR ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO DRAFT AN

IMPARTIAL ANALYSIS
JULY 28, 2026
PAGE 2 OF 7
BACKGROUND:

The City of King experienced a serious financial crisis over the past two decades.

After nearly 20 years, the City has paid off its debt, which was accomplished in 2021. With responsible and accountable fiscal stewardship, the City’s budget has remained balanced for several years and it has now accomplished the goal of establishing a financial reserve (akin to our rainy-day fund). Meanwhile, other major priorities were funded, including reducing gang violence and revitalizing the downtown. The City is focused on protecting this progress to continue addressing our local needs and remain self-reliant.

However, the job is getting harder. Bigger cities get more federal/state money and resources, leaving us without our fair-share, on top of increasingly costly unfunded state mandates. At the same time, an existing, locally controlled one cent general sales tax, Measure K, will expire soon. Unless reauthorized, the City will lose $2.4 Million annually. Reauthorization of the current local funding, with an additional ½ cent increment would ensure the City’s financial stability and maintenance of critical public safety and community services.

To better understand community perspectives and priorities, the City conducted an initial community survey last year, and an additional half-year engagement program known as the “Our King City” initiative. Thank you to the hundreds of residents who participated and shared your feedback! Your input is valuable and was used extensively in the development of this recommendation.

Neighbors and community members identified the following top local priorities:
• Preventing and investigating violent crimes
• Making sure the city stays financially stable
• Requiring public disclosure of all spending
• Maintaining gang prevention services
• Keeping public areas safe and clean

CITY COUNCIL

CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS FOR

CONSIDERATION AT THE GENERAL MUNICIPAL ELECTION TO BE

CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED TRANSACTION

AND USE (SALES) TAX BY INCREASING THE TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL IT IS ENDED BY VOTERS; REQUESTING

THAT THE MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT TO

IMPARTIAL ANALYSIS
JULY 28, 2026
PAGE 3 OF 7
• Increasing the number of good-paying jobs
All funds generated by the proposed “King City Public Safety, Local Services Measure” measure will stay local for general city services, such as those discussed above, in King City and cannot be taken by the state.

Our Fire Department is run by volunteers with a tight budget for firefighting and emergency medical response needs. Additional local funding is needed to maintain 911 emergency fire, medical, and police response, replace old fire equipment and technology, and recruit and retain experienced volunteer firefighters to keep families safe.

Further, our streets and roads are old and deteriorating, which damages cars and is potentially unsafe. This measure will allow the City to prioritize repairing potholes and cracked sidewalks.

All funds generated by this are subject to strong accountability provisions, including:
• Requiring all funds benefit King City residents only
• Independent audits and public disclosure
• Citizens’ oversight by the Budget Advisory Committee
The survey of over 200 King City voters conducted last year from September 18 to October 13, 2025 showed that 80% of respondents agree that King City needs additional funding to maintain essential services. Additionally, initial support of the local funding measure received 63% support.

CITY COUNCIL

CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS FOR

CONSIDERATION AT THE GENERAL MUNICIPAL ELECTION TO BE

CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED TRANSACTION

AND USE (SALES) TAX BY INCREASING THE TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL IT IS ENDED BY VOTERS; REQUESTING

THAT THE MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT TO

IMPARTIAL ANALYSIS
JULY 28, 2026
PAGE 4 OF 7
DISCUSSION:

King City currently has a sales tax at the rate of 1% that will expire on April 1, 2039. The proposed measure, if approved, would increase the tax rate to 1.5% and extend the duration of the tax until it is ended by voters.

The advantages of the sales tax proposal as a revenue option include the following:
• The City’s local sales tax rate is lower than most other cities, particularly in the Central Coast region. Therefore, the tax rate at 1.5% (one and ½ cent) will still be comparable to most other jurisdictions.
• It would generate revenue to maintain essential public safety and city services.
• Revenues will grow as the City is successful in improving the community and attracting new businesses and jobs.

Staff recommends reauthorization of the existing locally controlled sales tax measure at 1.5% (1.5 cents), which increases the tax rate by 0.5% and extends the duration thereof until it is ended by voters – allowing King City to maintain the general city services residents have told us they prioritize to keep our city safe, clean, and strong to protect our quality of life.

Below are the results of a survey of existing sales tax rates for all cities in Monterey and San Luis Obispo counties:

City Amount
Greenfield 1 ¾ cents
Atascadero 1 ½ cents

CITY COUNCIL

CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS FOR

CONSIDERATION AT THE GENERAL MUNICIPAL ELECTION TO BE

CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED TRANSACTION

AND USE (SALES) TAX BY INCREASING THE TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL IT IS ENDED BY VOTERS; REQUESTING

THAT THE MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT TO

IMPARTIAL ANALYSIS
JULY 28, 2026
PAGE 5 OF 7
Carmel 1 ½ cents
Del Rey Oaks 1 ½ cents
Grover Beach 1 ½ cents
Marina 1 ½ cents
Monterey 1 ½ cents
Morro Bay 1 ½ cents
Pacific Grove 1 ½ cents
Paso Robles 1 ½ cents
Salinas 1 ½ cents
San Luis Obispo 1 ½ cents
Sand City 1 ½ cents
Seaside 1 ½ cents
Soledad 1 ½ cents
Gonzales 1 cent
King City 1 cent
Arroyo Grande .5 cent
Pismo Beach .5 cent
The proposed question to be placed on the ballot is as follows:

King City Public Safety, Local Services Measure. Shall the measure continuing King City’s locally controlled funding for general city services, such as maintaining 911 fire, medical, police response, gang/violent crime prevention/investigation, and King City’s financial stability; providing firefighter protective clothing/ breathing equipment; repairing streets/ potholes, by reauthorizing its sales tax at a rate of 1.5¢, providing approximately $3,600,000 annually until ended by voters; requiring audits, public disclosure, citizens’ oversight, all funds benefit King City residents, be adopted?

CITY COUNCIL

CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS FOR

CONSIDERATION AT THE GENERAL MUNICIPAL ELECTION TO BE

CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED TRANSACTION

AND USE (SALES) TAX BY INCREASING THE TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL IT IS ENDED BY VOTERS; REQUESTING

THAT THE MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT TO

IMPARTIAL ANALYSIS
JULY 28, 2026
PAGE 6 OF 7
The attached Resolution would submit the proposed measure with the above ballot question at the General Municipal Election to be consolidated with the Statewide General Election to be held on Tuesday, November 3, 2026, request the Monterey County Board of Supervisors to consent to such submission and consolidation, approve the related ordinance, setting forth the regulations and procedures relating to arguments, and directing the City Attorney to prepare an impartial analysis..

In order for this proposed measure to be considered by the voters, the City Council must vote by a 2/3 vote (i.e., 4/5 of the City Council) to adopt the attached Resolution. The deadline to submit the measure (including this Resolution) to the County Elections Office is August 7
th. Since the second
meeting in July is cancelled, this is the last meeting available to approve with the full City Council available.

COST ANALYSIS:

An additional 0.5% (½ cent) sales tax would generate an initial annual amount of $1,200,000 escalated over time. If the voters approve this measure, then the estimated annual revenue from the 1.5% sales tax would be $3,600,000. If the measure is not approved, then the existing 1% sales tax will expire in April of 2029 and would result in a loss of approximately $2,400,000 in annual revenue. It is estimated that educational materials and the increased expense charged by the County Elections Office for the ballot measure will result in an increased cost to the City of $5,000 to $10,000.

ENVIRONMENTAL REVIEW:

Revenue measures are not considered a project for the purposes of CEQA and have no potential for resulting in either a direct or indirect impact to the environment. Therefore, no additional action is necessary.

CITY COUNCIL

CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS FOR

CONSIDERATION AT THE GENERAL MUNICIPAL ELECTION TO BE

CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 3, 2026 A BALLOT MEASURE THAT WOULD

REAUTHORIZE THE EXISTING LOCALLY CONTROLLED TRANSACTION

AND USE (SALES) TAX BY INCREASING THE TAX RATE AND EXTENDING THE DURATION THEREOF UNTIL IT IS ENDED BY VOTERS; REQUESTING

THAT THE MONTEREY COUNTY BOARD OF SUPERVISORS CONSENT TO

IMPARTIAL ANALYSIS
JULY 28, 2026
PAGE 7 OF 7
ALTERNATIVES:

The following alternatives are presented for Council consideration:

1. Approve staff’s recommendations placing the measure on the ballot for voter consideration;

2. Do not approve placing the measure on the ballot; or

3. Provide staff other direction.

ATTACHMENTS:
• Resolution
• Ordinance
RESOLUTION NO. 2026-5097

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF KING CITY, CALIFORNIA, SUBMITTING TO THE

ELECTORS A BALLOT MEASURE REAUTHORIZING
THE CITY’S EXISTING LOCALLY CONTROLLED
TRANSACTIONS AND USE TAX AT A RATE OF 1.5% (1 ½

CENTS) AND EXTENDING THE DURATION THEREOF
UNTIL IT IS ENDED BY VOTERS; APPROVING THE
RELATED ORDINANCE; REQUESTING THAT THE

MONTEREY COUNTY BOARD OF SUPERVISORS

CONSENT TO THE CONSOLIDATION OF SUCH BALLOT
MEASURE ON THE BALLOT FOR THE CITY’S GENERAL

MUNICIPAL ELECTION WHICH IS CONSOLIDATED

WITH THE STATEWIDE GENERAL ELECTION TO BE
HELD ON TUESDAY, NOVEMBER 3, 2026; SETTING

FORTH THE REGULATIONS AND PROCEDURES FOR
ARGUMENTS; AND DIRECTING THE CITY ATTORNEY

TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, the City is working hard to keep our community safe and clean by maintaining essential public safety and quality of life services; and WHEREAS, after nearly 20 years of financial challenges, the City is now debt-free and focused on protecting this progress to address our local needs and remain self-reliant; and WHEREAS, bigger cities get more money and resources, leaving the City without its fairshare; and WHEREAS, the City considered all potential options, including a proposed measure that would reauthorize the City’s existing transactions and use (sales) tax measure by increasing the tax rate and extending the duration of the tax until it is ended by voters, as discussed further below; and
WHEREAS, funds generated by such a transactions and use (sales) tax measure would stay local for critical city services in King City and could not be taken by the state; and WHEREAS, the City’s Fire Department is run by volunteers with a tight budget for firefighting and emergency medical response needs; and
WHEREAS, additional local funding is needed to maintain 911 emergency fire, medical, and police response, replace old fire equipment and technology, and recruit and retain experienced volunteer firefighters to keep families safe; and
WHEREAS, the City’s streets and roads are old and deteriorating, which can potentially damage cars and are potentially unsafe, and this proposed measure could allow the City to prioritize repairing potholes and cracked sidewalks; and Attachment 1
WHEREAS, this proposed measure is subject to strong accountability provisions, including requiring all funds benefit King City residents only, independent audits and public disclosure, and citizens’ oversight; and
WHEREAS, increasing the transactions and use (sales) tax rate from 1% to 1.5% will provide an additional $1.2 million annually to help ensure the City stays financially stable and maintain essential services its residents have stated as priorities, such as preventing and investigating violent crimes; maintaining gang prevention services; keeping public areas safe and clean; and increasing the number of good-paying jobs; and WHEREAS, pursuant to Resolution No. 2026-5097, the City Council of the City of King City (“City Council”) called a general municipal election to be held on Tuesday, November 3, 2026, for the purpose of electing council members as provided and, pursuant to Resolution No. 2026-5097, the City Council requested that the Monterey County Board of Supervisors consent to the consolidation of such general municipal election with the Statewide General Election to be held on the same date; and
WHEREAS, the City of King City (“City”) currently has a 1% transactions and use (sales) tax pursuant to Chapter 3.22 of Title 3 of the King City Municipal Code, which is a general tax and expires on April 1, 2029; and
WHEREAS, pursuant to Article XIIIC of the California Constitution, Section 53720 et seq. of the California Government Code, the City has the authority to levy a general tax, including, but not limited to, increasing an existing tax; and
WHEREAS, Article XIIIC, Section 2, of the California Constitution requires that the election at which a general tax increase is submitted to the electorate shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body; and WHEREAS, Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code, authorizes a city to adopt a transactions and use tax ordinance, which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose; and
WHEREAS, Revenue and Taxation Code Section 7285.9 requires that any ballot measure/ordinance establishing or increasing a transactions and use tax must be approved by a 2/3 vote of all members of the City Council and by a majority vote of the qualified voters of the City voting on the ballot measure; and
WHEREAS, pursuant to Elections Code Section 9222, the City Council desires to submit to the voters at the general municipal election to be held on Tuesday, November 3, 2026, a question relating to a transactions and use (sales) tax, which will reauthorize the City’s transactions and use (sales) tax by increasing the City’s transactions and use (sales) tax rate by 0.5% so that the total tax rate is 1.5% (1 ½ cents), where such increase will provide approximately $1,200,000 annually and where the total tax rate will provide approximately $3,600,000 annually, and extending the duration of such transactions and use tax until it is ended by voters.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of King City as follows:

1. Recitals. The recitals set forth above are incorporated herein by this reference.

2. Submission of Measure. Pursuant to the laws of the State of California, including, but not limited to, Elections Code Sections 9222 and 10201, the City Council, hereby orders the submission to the qualified voters of the City of King City at the General Municipal Election to be held on Tuesday, November 3, 2026, a measure that, if approved, reauthorizes the City’s existing transactions and use (sales) tax by increasing the tax rate thereof by 0.5% for a total of rate of 1.5% and extending the duration of such tax until it is ended by voters (“Measure”). The Measure shall be entitled the “King City Public Safety, Local Services Measure”. The abbreviated form of the Measure to appear on the ballot is specified below in Section 3.

3. Ballot Language. The ballot language for the proposed Measure shall be as follows:

4. Text of Measure. The proposed complete text of the Measure to be submitted to the voters is attached as Exhibit A and incorporated herein by this reference. Pursuant to Revenue and Taxation Code Section 7285.9, the City Council hereby approves the proposed complete text of the Measure in the form as provided in Exhibit A and the submission thereof to the voters of the City at the General Municipal Election to be held on Tuesday, November 3, 2026.

5. Voter Approval Requirement. The vote requirement for the measure to pass is a majority (50% + 1) of the votes cast.

6. Form & Content of Ballots. The ballots to be used at the election shall be in form and content as required by law.

7. Coordination with County. The City Clerk, as the City’s elections official, is authorized, instructed and directed to coordinate with the County of Monterey Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

8. Election Held Pursuant to Law. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

9. Request for Consolidation.

A. Pursuant to California Elections Code sections 10400 et seq., the election for the Measure, as described in this Resolution, shall be consolidated with the established election to be conducted on Tuesday, November 3, 2026.

Pursuant to the requirements of Elections Code Section 10403, the Board of Supervisors of the County of Monterey is hereby requested to consent and agree to the consolidation of the Measure on the ballot for the City’s General Municipal Election which is consolidated with the Statewide General Election to be held on Tuesday, November 3, 2026.

B. The Monterey County Elections Department is authorized to canvass the returns of the General Municipal Election to be held on Tuesday, November 3, 2026. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the elections, including, but not limited to, Elections Code Section 10418.

C. The Board of Supervisors of the County of Monterey is requested to issue instructions to the Monterey County Elections Department to take any and all steps necessary for conducting and holding the consolidated election.

D. The City of King City recognizes that additional costs will be incurred by the County of Monterey by reason of this consolidation and agrees to reimburse the County of Monterey for any costs.

E. The City Clerk shall file a certified copy of this Resolution with the Monterey County Board of Supervisors and Monterey County Elections Department.

10. Arguments.

A. Primary Argument.
i. In accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, written argument(s) In Favor of or Against City measure(s) shall not exceed 300 words and shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by forms as provided by the City Clerk. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments in favor or against the City measure may be submitted to the City Clerk.
ii. In the event that more than one argument in favor or against the City measure is timely submitted, then consistent with Elections Code Section 9287, the City Clerk shall select the argument to be included with the ballot materials, giving preference and priority in the order set forth in Elections Code Section 9287.

B. Rebuttal Arguments.
i. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the arguments in favor and against the measure (not exceeding 300 words each) which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument in favor of the proposition to the authors of any argument against the measure and a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments.
ii. The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. iii. A rebuttal argument may not be signed by more than five authors. iv. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing primary arguments. The rebuttal arguments shall be accompanied by forms provided by the City Clerk.
v. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
vi. The provisions of this Section 10(B) shall apply only to the election to be held on Tuesday, November 3, 2026, and shall then be repealed.

C. Impartial Analysis.
i. The City Council directs the City Clerk to transmit a copy of the measure to the City Attorney.
ii. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure.
iii. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the City. iv. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type, a statement in substantially the following form: "The above statement is an impartial analysis of Ordinance or Measure __. If you desire a copy of the ordinance or measure, please call the election official's office at 760-337-4515 and a copy will be mailed at no cost to you."
v. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.

D. Printing. The City Clerk shall cause the City Attorney’s impartial analysis, and duly selected arguments, to be printed and distributed to voters in accordance with State law regarding the same.

11. Notice of Election; Publication. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form, and manner as required by law.

12. Implementation. The City Clerk and City Manager are authorized to take all actions as necessary to effectuate the purposes of this Resolution and the election. The City Manager is authorized to make any typographical, clerical, and non-substantive corrections and such other revisions as may be required to this Resolution and its exhibits/attachments, including such typographical, clerical, and non-substantive corrections and/or such other revisions as may be required by the California Department of Fee and Tax Administration.

13. Environmental Compliance. The City Council hereby finds that this Resolution and the adoption of the proposed measure are not in-and-of-itself a “project” pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation California Code of Regulations, Title 14, Sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption of this Resolution or proposed measure itself may have a significant effect on the environment. This Resolution and proposed measure relates to a transactions and use tax and relates to the creation of City funding mechanisms and City fiscal activities, which does not involve any commitment to any project which may result in a potentially significant physical impact on the environment.

14. Certification. The City Clerk shall certify to the passage and adoption of this Resolution.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of King City, California held on the 28th day of July, 2026.

CITY OF KING CITY
By ______________________________
Mike LeBarre, Mayor
ATTEST:

By ______________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:

By ______________________________
Roy Santos, City Attorney

STATE OF CALIFORNIA )
COUNTY OF MONTEREY ) ss

CITY OF KING CITY )
I, Erica Sonne, City Clerk of the City of King City, California do hereby certify that the foregoing Resolution No. 2026-5097 was duly and regularly adopted at a regular meeting of the City Council of the City of King City, California, held on the 28 day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By__________________________
Erica Sonne, City Clerk
Exhibit A
Proposed Complete Text of the Measure
1 ORDINANCE NO. 2026-844

AN ORDINANCE OF THE CITY OF KING CITY, CALIFORNIA,
AMENDING CHAPTER 3.22 OF TITLE 3 OF THE KING CITY MUNICIPAL CODE IN ITS ENTIRETY BY REAUTHORIZING THE EXISTING CITY’S

TRANSACTIONS AND USE TAX BY INCREASING THE TOTAL TAX
RATE TO 1.5% AND EXTENDING THE DURATION OF SUCH TAX UNTIL

IT IS ENDED BY VOTERS
WHEREAS, the City is working hard to keep our community safe and clean by maintaining essential public safety and quality of life services; and WHEREAS, after nearly 20 years of financial challenges, the City is now debt-free and focused on protecting this progress to address our local needs and remain self-reliant; and WHEREAS, bigger cities get more money and resources, leaving the City without its fair-share; and
WHEREAS, the City considered all potential options, including this transactions and use (sales) tax measure that would reauthorize the City’s existing transactions and use (sales) tax measure by increasing the tax rate and extending the duration of the tax until it is ended by voters, as discussed further below; and
WHEREAS, funds generated by such a transactions and use (sales) tax measure would stay local for critical city services in King City and could not be taken by the state; and WHEREAS, the City’s Fire Department is run by volunteers with a tight budget for firefighting and emergency medical response needs; and
WHEREAS, additional local funding is needed to maintain 911 emergency fire, medical, and police response, replace old fire equipment and technology, and recruit and retain experienced volunteer firefighters to keep families safe; and WHEREAS, the City’s streets and roads are old and deteriorating, which can potentially damage cars and are potentially unsafe, and this proposed measure could allow the City to prioritize repairing potholes and cracked sidewalks; and WHEREAS, this transactions and use tax measure is subject to strong accountability provisions, including requiring all funds benefit King City residents only, independent audits and public disclosure, and citizens’ oversight; and
WHEREAS, increasing the transactions and use (sales) tax rate from 1% to 1.5% will provide an additional $1.2 million annually to help ensure the City stays financially stable and maintain essential services its residents have stated as priorities, such as preventing and investigating violent crimes; maintaining gang prevention services; keeping public areas safe and clean; and increasing the number of good-paying jobs; and WHEREAS, the City of King City currently has a 1% transactions and use (sales) tax pursuant to Chapter 3.22, entitled “Transactions and Use Tax”, of Title 3 of the King City Municipal Code and where such tax terminates on April 1, 2029; and Exhibit A
2 WHEREAS, pursuant to Article XIIIC of the California Constitution, Section 53720 et seq. of the California Government Code, the City has the authority to levy a general tax, including, but not limited to, increasing an existing general tax; and WHEREAS, Article XIIIC, Section 2, of the California Constitution requires that the election at which a general tax increase is submitted to the electorate shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body; and WHEREAS, Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code, authorizes a city to adopt a transactions and use tax ordinance, which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose; and
WHEREAS, Revenue and Taxation Code Section 7285.9 requires that any ballot measure/ordinance establishing or increasing a transactions and use tax must be approved by a 2/3 vote of all members of the City Council and by a majority vote of the qualified voters of the City voting on the ballot measure; and
WHEREAS, by Resolution No. 2026-5097 , the City Council approved this Ordinance by a 2/3 vote of all its members; and
WHEREAS, Tuesday, November 3, 2026, is the date of the general municipal election, which has been consolidated with the statewide general election occurring on the same date, at which members of the City Council will be elected;
WHEREAS, this Ordinance amends Chapter 3.22 of Title 3 of the King City Municipal Code in its entirety by reauthorizing the City’s existing transactions and use (sales) tax by increasing the tax rate of the existing transactions and use tax to 1.5% and extending the duration thereof until it is ended by voters.

NOW, THEREFORE, the People of the City of King City, California, do hereby ordain as follows:

Section 1. Recitals. The recitals set forth above are incorporated herein by this reference.

Section 2. Chapter 3.22 Amended in its Entirety. Chapter 3.22, entitled “Transactions and Use Tax”, of Title 3 of the King City Municipal Code is hereby amended in its entirety as follows:

Chapter 3.22. Transactions and Use Tax
Section 3.22.010. – Title.

This chapter shall be known as the “Transactions and Use Tax”. The City of King City hereinafter shall be called “City.” This chapter shall be applicable in the incorporated territory of the City.

Section 3.22.020. – Operative Date.
“Operative Date” means the first day of the first calendar quarter commencing 3 more than 110 days after the adoption of this chapter. For purposes of Revenue and Taxation Code section 7265, this chapter shall be considered adopted on the date of the election in which it is approved by the qualified voters of the City.

Section 3.22.030. – Purpose.

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter.

Section 3.22.040. – Contract with State.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

Section 3.22.050. – Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby 4 imposed upon all retailers in the incorporated territory of the City at the rate 1.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.

Section 3.22.060. – Place of Sale.

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

Section 3.22.070. – Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of 1.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

Section 3.22.080. – Adoption of Provisions of State Law.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein.

Section 3.22.090. – Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in 5 performing the functions incident to the administration or operation of this chapter.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to
certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales,
storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

Section 3.22.100. – Permit Not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter.

Section 3.22.110. – Exemptions and Exclusions.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the BradleyBurns Uniform Local Sales and Use Tax Law or the amount of any stateadministered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or 6 petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial
vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by
operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign 7 government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

Section 3.22.120. – Amendments.

All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue 8 and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

Section 3.22.130. – Enjoining Collection Forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

Section 3.22.140. – Severability.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 3.22.150. – Effective Date.

Pursuant to Elections Code Section 9217, this chapter shall be considered adopted on the date that the City Council declares that the voters of the City of King City have approved Ordinance No. 2026-844 by a vote of no less than a majority of the votes cast by the electors voting at the election held on Tuesday, November 3, 2026, and shall go into effect ten (10) days thereafter.

Section 3.22.160. – Termination Date.

The taxes imposed by this chapter shall remain in effect until it is ended by voters.

Section 3.22.170. – General Tax.

The proceeds from the tax imposed by this chapter shall be for unrestricted general revenue purposes of the City and shall be placed into the General Fund of the City.

Section 3.22.180. – Amendment by City Council.

The City Council has the right and authority to amend this chapter, to further its purposes and intent (including but not limited to amendment for more efficient administration as determined by the City Council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution, pursuant to Section 9217 of the California Elections Code.

Section 3.22.190. – Annual Audit.

The proceeds resulting from this transactions and use tax shall subject to the same independent annual audit requirements as other general fund revenue. The independent auditor’s report, which shall include an accounting of the revenues received and expenditures made from the transactions and use tax, will be 9 presented annually to the City Council and made available for public review.

Further, such independent auditor’s report and such presentation thereof to the City Council may be combined with the City’s annual financial audit.

Section 3.22.200. – Citizen Oversight.

Following the operative date, the City shall establish a community oversight advisory committee, which may be its budget advisory committee or a separate committee. The committee shall be charged with making recommendations with respect to expenditures of the transactions and use tax as part of the overall annual budget process. The recommendations of the committee shall be presented to the city council but shall not be binding on the city council.

Section 3.22.210. – Out-of-state retailers collecting sales and use tax.

For the purposes of this Chapter 3.22, incorporating provisions of state law, including, but not limited to, Revenue and Taxation Code Sections 6203 and 7262, it is the city of King City’s intent that the decision of the United States Supreme Court in South Dakota v. Wayfair, Inc., et al., decided June 20, 2018, be given its full force and effect in requiring out-of-state retailers (and their agents and collectors) with virtual and economic interests in the state, including the city, be required to collect and remit the transactions and use tax. For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter by out-of-state retailers and others, “substantial nexus” shall be construed broadly in favor of the imposition; collection and/or remittance of the transaction and use to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment.

Section 3. Council Authority to Amend. The City Council has the right and authority to amend this Ordinance, to further its purposes and intent (including but not limited to amendment for more efficient administration as determined by the City Council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution, pursuant to Section 9217 of the California Elections Code.

Section 4. Environmental Compliance. The City hereby determines that this Ordinance is not in-and-of-itself a “project” pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation California Code of Regulations, Title 14, Sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption of the ordinance itself may have a significant effect on the environment. This Ordinance relates to a transaction and use tax and relates to the creation of City funding mechanisms and City fiscal activities, which does not involve any commitment to any project which may result in a potentially significant physical impact on the environment.

Section 5. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Ordinance be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Ordinance.

Section 6. Date of Adoption; Effective Date. Pursuant to Elections Code Section 9217, this Ordinance shall be considered adopted on the date that the City Council declares that the voters of the City of King City have approved this Ordinance by a vote of no less than a majority 10 of the votes cast by the electors voting at the General Municipal Election held on Tuesday, November 3, 2026, and shall go into effect ten (10) days thereafter.

Section 7. Execution. The Mayor shall sign this Ordinance and the City Clerk shall attest and certify to the passage and adoption of this Ordinance if a majority of the voters voting in the City’s general municipal election on November 3, 2026, approve it.

Section 8. Publication. The City Clerk shall cause this Ordinance to be published in the manner required by law.

PASSED, APPROVED AND ADOPTED BY THE PEOPLE OF THE CITY OF King City at the General Municipal Election held on November 3, 2026.

APPROVED
________________________________
Mayor
ATTEST
________________________________
Erica Sonne
City Clerk
APPROVED AS TO FORM:

By ______________________________
Roy Santos, City Attorney
1 ORDINANCE NO. 2026-844

AN ORDINANCE OF THE CITY OF KING CITY, CALIFORNIA,
AMENDING CHAPTER 3.22 OF TITLE 3 OF THE KING CITY MUNICIPAL CODE IN ITS ENTIRETY BY REAUTHORIZING THE EXISTING CITY’S

TRANSACTIONS AND USE TAX BY INCREASING THE TOTAL TAX
RATE TO 1.5% AND EXTENDING THE DURATION OF SUCH TAX UNTIL

NOW, THEREFORE, the People of the City of King City, California, do hereby ordain as follows:

Section 1. Recitals. The recitals set forth above are incorporated herein by this reference.

Section 2. Chapter 3.22 Amended in its Entirety. Chapter 3.22, entitled “Transactions and Use Tax”, of Title 3 of the King City Municipal Code is hereby amended in its entirety as follows:

Chapter 3.22. Transactions and Use Tax
Section 3.22.010. – Title.

Section 3.22.030. – Purpose.

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

Section 3.22.040. – Contract with State.

Section 3.22.050. – Transactions Tax Rate.

Section 3.22.060. – Place of Sale.

Section 3.22.070. – Use Tax Rate.

Section 3.22.080. – Adoption of Provisions of State Law.

Section 3.22.090. – Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

Section 3.22.100. – Permit Not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter.

Section 3.22.110. – Exemptions and Exclusions.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

C. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

Section 3.22.120. – Amendments.

Section 3.22.130. – Enjoining Collection Forbidden.

Section 3.22.140. – Severability.

Section 3.22.150. – Effective Date.

Section 3.22.160. – Termination Date.

The taxes imposed by this chapter shall remain in effect until it is ended by voters.

Section 3.22.170. – General Tax.

The proceeds from the tax imposed by this chapter shall be for unrestricted general revenue purposes of the City and shall be placed into the General Fund of the City.

Section 3.22.180. – Amendment by City Council.

Section 3.22.190. – Annual Audit.

Further, such independent auditor’s report and such presentation thereof to the City Council may be combined with the City’s annual financial audit.

Section 3.22.200. – Citizen Oversight.

Section 3.22.210. – Out-of-state retailers collecting sales and use tax.

Section 8. Publication. The City Clerk shall cause this Ordinance to be published in the manner required by law.

PASSED, APPROVED AND ADOPTED BY THE PEOPLE OF THE CITY OF King City at the General Municipal Election held on November 3, 2026.

APPROVED
________________________________
Mayor
ATTEST
________________________________
Erica Sonne
City Clerk
APPROVED AS TO FORM:

By ______________________________
Roy Santos, City Attorney
1 ORDINANCE NO. 2026-844

AN ORDINANCE OF THE CITY OF KING CITY, CALIFORNIA,
AMENDING CHAPTER 3.22 OF TITLE 3 OF THE KING CITY MUNICIPAL CODE IN ITS ENTIRETY BY REAUTHORIZING THE EXISTING CITY’S

TRANSACTIONS AND USE TAX BY INCREASING THE TOTAL TAX
RATE TO 1.5% AND EXTENDING THE DURATION OF SUCH TAX UNTIL

IT IS ENDED BY VOTERS
WHEREAS, the City is working hard to keep our community safe and clean by maintaining essential public safety and quality of life services; and WHEREAS, after nearly 20 years of financial challenges, the City is now debt-free and focused on protecting this progress to address our local needs and remain self-reliant; and WHEREAS, bigger cities get more money and resources, leaving the City without its fair-share; and
WHEREAS, the City considered all potential options, including this transactions and use (sales) tax measure that would reauthorize the City’s existing transactions and use (sales) tax measure by increasing the tax rate and extending the duration of the tax until it is ended by voters, as discussed further below; and
WHEREAS, funds generated by such a transactions and use (sales) tax measure would stay local for critical city services in King City and could not be taken by the state; and WHEREAS, the City’s Fire Department is run by volunteers with a tight budget for firefighting and emergency medical response needs; and
WHEREAS, additional local funding is needed to maintain 911 emergency fire, medical, and police response, replace old fire equipment and technology, and recruit and retain experienced volunteer firefighters to keep families safe; and WHEREAS, the City’s streets and roads are old and deteriorating, which can potentially damage cars and are potentially unsafe, and this proposed measure could allow the City to prioritize repairing potholes and cracked sidewalks; and WHEREAS, this transactions and use tax measure is subject to strong accountability provisions, including requiring all funds benefit King City residents only, independent audits and public disclosure, and citizens’ oversight; and
WHEREAS, increasing the transactions and use (sales) tax rate from 1% to 1.5% will provide an additional $1.2 million annually to help ensure the City stays financially stable and maintain essential services its residents have stated as priorities, such as preventing and investigating violent crimes; maintaining gang prevention services; keeping public areas safe and clean; and increasing the number of good-paying jobs; and WHEREAS, the City of King City currently has a 1% transactions and use (sales) tax pursuant to Chapter 3.22, entitled “Transactions and Use Tax”, of Title 3 of the King City Municipal Code and where such tax terminates on April 1, 2029; and Attachment 2
2 WHEREAS, pursuant to Article XIIIC of the California Constitution, Section 53720 et seq. of the California Government Code, the City has the authority to levy a general tax, including, but not limited to, increasing an existing general tax; and WHEREAS, Article XIIIC, Section 2, of the California Constitution requires that the election at which a general tax increase is submitted to the electorate shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body; and WHEREAS, Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code, authorizes a city to adopt a transactions and use tax ordinance, which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose; and
WHEREAS, Revenue and Taxation Code Section 7285.9 requires that any ballot measure/ordinance establishing or increasing a transactions and use tax must be approved by a 2/3 vote of all members of the City Council and by a majority vote of the qualified voters of the City voting on the ballot measure; and
WHEREAS, by Resolution No. 2026-5097 , the City Council approved this Ordinance by a 2/3 vote of all its members; and
WHEREAS, Tuesday, November 3, 2026, is the date of the general municipal election, which has been consolidated with the statewide general election occurring on the same date, at which members of the City Council will be elected;
WHEREAS, this Ordinance amends Chapter 3.22 of Title 3 of the King City Municipal Code in its entirety by reauthorizing the City’s existing transactions and use (sales) tax by increasing the tax rate of the existing transactions and use tax to 1.5% and extending the duration thereof until it is ended by voters.

NOW, THEREFORE, the People of the City of King City, California, do hereby ordain as follows:

Section 1. Recitals. The recitals set forth above are incorporated herein by this reference.

Section 2. Chapter 3.22 Amended in its Entirety. Chapter 3.22, entitled “Transactions and Use Tax”, of Title 3 of the King City Municipal Code is hereby amended in its entirety as follows:

Chapter 3.22. Transactions and Use Tax
Section 3.22.010. – Title.

Section 3.22.030. – Purpose.

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

Section 3.22.040. – Contract with State.

Section 3.22.050. – Transactions Tax Rate.

Section 3.22.060. – Place of Sale.

Section 3.22.070. – Use Tax Rate.

Section 3.22.080. – Adoption of Provisions of State Law.

Section 3.22.090. – Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

Section 3.22.100. – Permit Not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter.

Section 3.22.110. – Exemptions and Exclusions.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

C. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

Section 3.22.120. – Amendments.

Section 3.22.130. – Enjoining Collection Forbidden.

Section 3.22.140. – Severability.

Section 3.22.150. – Effective Date.

Section 3.22.160. – Termination Date.

The taxes imposed by this chapter shall remain in effect until it is ended by voters.

Section 3.22.170. – General Tax.

The proceeds from the tax imposed by this chapter shall be for unrestricted general revenue purposes of the City and shall be placed into the General Fund of the City.

Section 3.22.180. – Amendment by City Council.

Section 3.22.190. – Annual Audit.

Further, such independent auditor’s report and such presentation thereof to the City Council may be combined with the City’s annual financial audit.

Section 3.22.200. – Citizen Oversight.

Section 3.22.210. – Out-of-state retailers collecting sales and use tax.

Section 8. Publication. The City Clerk shall cause this Ordinance to be published in the manner required by law.

PASSED, APPROVED AND ADOPTED BY THE PEOPLE OF THE CITY OF King City at the General Municipal Election held on November 3, 2026.

APPROVED
________________________________
Mayor
ATTEST
________________________________
Erica Sonne
City Clerk
APPROVED AS TO FORM:

By ______________________________
Roy Santos, City Attorney
Item No. 10(A)

REPORT TO THE CITY COUNCIL
DATE: JULY 28, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOSE ARREOLA, CITY MANAGER
RE: INTENT TO IMPOSE SPECIAL ASSESSMENT AND LIEN ON
450 JAYNE STREET-APN 026-311-003-ACA VILLAGE
RECOMMENDATION:

It is recommended the City Council adopt a Resolution imposing a special assessment and lien on 450 Jayne St.-APN 026-311-003-ACA Village.

BACKGROUND:

Pursuant to section 7.51.701 et al. of the King City Municipal Code, any unpaid enforcement costs and administrative fines and penalties are personal obligations which may be recovered through a special assessment and lien process. This special assessment may be recorded as a lien and collected in the same manner as property taxes. (KCMC § 7.51.709.) In accordance with Chapter 7.51 of the King City Municipal Code, the City Council of the City of King will conduct a public hearing to consider a resolution confirming the unpaid administrative fines, penalties, and enforcement costs and authorizing their collection through a special assessment against the property.

DISCUSSION:

On January 8, 2025, the City sent a letter indicating that 450 Jayne St.- ACA Village is operating without valid approvals (e.g., conditional use permit). A second letter was sent from the City regarding needed approvals to continue operating the use. On June 25, 2025, a third letter was sent to you regarding the need to comply with the corrections needed. On August 4, 2025, you received notice of the violations of the King City Municipal Code existing upon the Property; however, despite receiving notice and a reasonable time to abate the violations, you have failed to remove all the violations. On December 15, 2025, a letter was sent to you regarding Administrative Citations for Failure to Abate Property Nuisance. Upon inspection of the Property, there are still remaining violations of the King City Municipal Code.

CITY COUNCIL
INTENT TO IMPOSE SPECIAL ASSESSMENT AND LIEN ON 450 JAYNE STREET-APN 026-311-003-ACA VILLAGE
JULY 28, 2026
PAGE 2 OF 2
The December Notice went unanswered and on April 2 an Administrative Citation for Failure to Abate Property Nuisance was sent to the property owner for an outstanding amount of $270,750. On April 9 a Notice of Intent to Impose Special Assessment and Lien was mailed to BBKTDC LLC. Brent Slama, a consultant on behalf of the ownership called on April 14 in response to the letter. A meeting was scheduled with the City Manager and one of the owners to discuss the letter. Following the meeting a field visit was set for May 26 attended by Building Inspector Mark McClain, Police Chief Robert Masterson, Community Development Director Doreen Liberto-Blanck, Brent Slama, consultant for the property owner, the property owner and City Manager Jose Arreola. During the site visit it was observed that 7 of the 11 violations were abated. The 4 remaining violations are significant.

It should be noted the no additional fees have been applied to the outstanding amount since April 9, 2026 since we began to communicate on the long term remedies for the property. There has been no effort by the property owner to acknowledge outstanding fines or to pay them.

COST ANALYSIS:

The City’s staff cost will be reimbursed by the payment of the administrative citations.

ENVIRONMENTAL REVIEW:

The imposition of a special assessment and lien is not considered a project for the purposes of CEQA and has no potential for resulting in either a direct or indirect impact to the environment. Therefore, no additional action is necessary.

ALTERNATIVES:

The following alternatives have been identified for City Council consideration:
1) Adopt the Resolution;
2) Make text changes to the Resolution and adopt;
3) Provide staff other direction.

ATTACHMENTS:

A. Resolution
B. Public Hearing Notice
4905-6361-2597 v1
RESOLUTION NO. 2026-5098

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING,

CALIFORNIA, CERTIFYING COMPLIANCE WITH STATE LAW AND
APPROVING THE SPECIAL ASSESSMENT AND LIEN AGAINST 450
JAYNE STREET-APN 026-311-003-ACA VILLAGE
WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public health, safety, peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, the City finds that, in addition to the filing of civil collection actions by the city attorney, the use of liens collected as personal obligations against property owners and the use of special assessments on real property will assist in the collection of unpaid administrative fines, penalties, and enforcement costs assessed pursuant to the state of California authorized lien and special assessment process; and WHEREAS, the City further finds that collection of unpaid administrative fines, penalties, and enforcement costs is important in deterring future violations and maintaining the health and safety of the City by ensuring safe and healthy living conditions ; and
WHEREAS, the City has the authority to make the expense of unpaid administrative fines, penalties, and enforcement costs a lien against the property on which it is maintained and a personal obligation against the property owner, in accordance with California Government Code Sections 38790.1 and 25831; and WHEREAS, the Property Owners of record are, BBKTDC LLC and Stancorp Mortgage Investors, LLC; and
WHEREAS, the Property Owners were issued notices to pay the unpaid administrative fines, penalties, and enforcement costs pursuant to the King City Municipal Code; and
WHEREAS, the Property Owners failed to pay the unpaid administrative fines, penalties, and enforcement costs as required by the King City Municipal Code were issued multiple notices of their failure to pay, the amount of the unpaid administrative citations, where to make payment to avoid the lien and special assessment process; and WHEREAS, the Property Owners failed to pay the unpaid fines; and WHEREAS, the King City Municipal Code authorizes the City to place a lien and special assessment on real property when solid waste fees have not been timely paid and the unpaid billing is assigned to the City by Waste Management.

PAGE 2 OF 4
4905-6361-2597 v1

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KING,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The City Council finds the Facts set forth above to be true and correct, and by this reference incorporates each as an integral part of this Resolution.

SECTION 2. The total amount due and payable to the City by the property owner is attached hereto as Exhibit “A.”
SECTION 3. These amounts contained within Exhibit “A” remain unpaid. A special assessment and lien in these amounts shall be placed against the property identified within Exhibit “A” of this Resolution; the special assessments shall further accrue penalties and fines until the special assessment is paid in full.

SECTION 3. The City Manager, or his/her designee, is hereby authorized to place additional special assessments on the properties identified within Exhibit “A” of this Resolution as may be needed to secure payment of the unpaid administrative citations and/or costs being further incurred by the City; including the fees and costs charged by the County of Monterey to place these liens and special assessments on the property listed within Exhibit “A.”
SECTION 4. The City Manager is directed to take all action necessary to implement this Resolution.

SECTION 5. The City hereby certifies that it has, without limitations, complied with all legal procedures and requirements necessary for the levying and imposition of the general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A,” regardless of whether those procedures or requirements are set forth in the Constitution of the State of California, in State statutes, or in the applicable decisional law of the State of California.

SECTION 6. The City further certifies that, except for the sole negligence or misconduct of the County of Monterey, its officers, employees, and agents, with regards to the handling of the USB or electronic file identified as Exhibit “A,” the City shall be solely liable and responsible for defending, at its sole expense, cost, and risk, each and every action, suit, or other proceeding brought against the County of Monterey, its officers, employees, and agents for every claim, demand, or challenge to the levying or imposition of the general or special taxes, assessments, or property related fees or charges identified in Exhibit “A” and that it shall pay or satisfy any judgment rendered against the County of Monterey, its officers, employees, and agents on every such action, suit, or other proceeding, including all claims for refunds and interest thereon, legal fees and court costs, and administrative expenses of the County of Monterey to correct the tax rolls.

PAGE 3 OF 4
4905-6361-2597 v1
SECTION 7. The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions. This Resolution shall be effective immediately upon passage and adoption.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of King at a regular meeting thereof held on the 28th day of July 2026, by the following vote:

AYES:______________________________________________________________ NOES:______________________________________________________________ ABSTAIN:___________________________________________________________ ABSENT:____________________________________________________________ ATTEST
_________________________
Erica Sonne, City Clerk

CITY OF KING
By: _____________________________
Mike LeBarre, Mayor
APPROVED AS TO FORM:

By: _____________________________
Roy C. Santos, City Attorney
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.

PAGE 4 OF 4
4905-6361-2597 v1

EXHIBIT A
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
July 17, 2026

BBKTDC LLC
1172 South Main Street
Suite 372
Salinas, CA 93901
Stancorp Mortgage Investors, LLC
ATTN: Mortgage Loan Servicing T3A
19225 NW Tanasbourne Drive
Hillsboro, OR 97124
NOTICE OF PUBLIC HEARING: INTENT TO IMPOSE SPECIAL ASSESSMENT AND LIEN (450 JAYNE STREET-APN 026-311-003-ACA VILLAGE)
Dear BBKTDC LLC:

7.51.709.) In accordance with Chapter 7.51 of the King City Municipal Code, the City Council of the City of King will conduct a public hearing to consider a resolution confirming the unpaid administrative fines, penalties, and enforcement costs and authorizing their collection through a special assessment against the property.

The public hearing is scheduled as follows:

Date: Tuesday, July 28, 2026
Time: 5:00 p.m. (or as soon thereafter as the matter may be heard) Location: King City Council Chambers
212 South Vanderhurst Avenue
King City, California 93930
At the public hearing, City staff will recommend that the City Council confirm the delinquent administrative fines and enforcement costs and authorize their placement on the Monterey County property tax roll as a special assessment against the property. If approved by the City Council, the total amount confirmed will be transmitted to the Monterey County AuditorController/Assessor-Tax Collector for collection in the same manner as ordinary property taxes and will constitute a lien against the property until paid in full.

You have the right to appear at the public hearing, either personally or through legal

EXHIBIT A
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
counsel, and present written or oral testimony regarding the proposed special assessment.

The City Council will consider all testimony and evidence presented before making its determination.

If you object to the proposed special assessment, you are encouraged to submit any written objections to the City Clerk, Erica Sonne [email protected] prior to the public hearing or present your objections directly to the City Council at the hearing.

OPPORTUNITY TO AVOID THE SPECIAL ASSESSMENT
Payment of the outstanding administrative fines and enforcement costs totaling $270,750 in full prior to the public hearing will eliminate the need for the City Council to consider placing the delinquent amount on the property tax roll. Payment must be received by the City no later than 5:00 p.m. on July 27, 2026. If payment is not received before the hearing, City staff will proceed with its recommendation that the City Council approve the special assessment and lien process.

If you have questions regarding this notice, or wish to discuss compliance options, please contact me at (831) 386-5923 or email at [email protected]. Your prompt attention to this matter is greatly appreciated.

Sincerely,
José A. Arreola,
City Manager
c: Police Chief
City Attorney
Building Official
Attachments:

April 9, 2026 Letter from Community Development Director, Doreen Liberto-Blanck April 2, 2026 Letter from City Attorney Roy Santos
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
April 9, 2026

BBKTDC LLC
1172 South Main Street
Suite 372
Salinas, CA 93901
Stancorp Mortgage Investors, LLC
ATTN: Mortgage Loan Servicing T3A
19225 NW Tanasbourne Drive
Hillsboro, OR 97124
RE: CODE ENFORCEMENT VIOLATION: INTENT TO IMPOSE SPECIAL ASSESSMENT AND LIEN (450 JAYNE STREET-APN 026-311-003-ACA VILLAGE) Dear BBKTDC LLC:

This letter serves as formal notice and is supplemental to the Notice to Abate Property Nuisances dated April 2, 2026, letter, that the property located at 450 Jayne Street, King City, CA remains in violation of applicable provisions of the King City Municipal Code ("KCMC"). Despite numerous notifications, the violations listed in the April 2, 2026, Notice remain uncorrected and the administrative fines and penalties unpaid.

As of the date of this notice, you have received administrative citations totaling $270,750.

Failure to pay the administrative citations in full by May 4, 2026 may result in the City pursuing an enforcement action against you for payment of the administrative. As part of an enforcement action the City will seek recovery of not just the unpaid administrative citations, but all actual and reasonable enforcement costs it has incurred. Enforcement costs include, but are not limited to, actual cost of the enforcing department services such as the costs of personnel, worker's compensation benefits, fringe benefits, administrative overhead, costs of equipment, costs of materials, costs related to investigations, costs related to issuing and defending administrative citations, costs incurred investigating and abating violations of the municipal code, and reasonable attorneys' fees. (KCMC §

7.51.702.) Pursuant to section 7.51.701 et al. of the King City Municipal Code, any unpaid enforcement costs and administrative fines and penalties are personal obligations which may be recovered through a special assessment and lien process. This special assessment may be recorded as a lien and collected in the same manner as property taxes. (KCMC § 7.51.709.)
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
If you have questions regarding this notice, or wish to discuss compliance options, please contact me at (831) 386-5923 or email at [email protected]. Your prompt attention to this matter is greatly appreciated.

Doreen Liberto,
Community Development Director
c: City Manager
Police Chief
City Attorney
Building Official
Attachment: April 2, 2026 Letter from City Attorney Roy Santos 212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
April 2, 2026

BBKTDC LLC
1172 South Main Street
Suite 372
Salinas, CA 93901
Stancorp Mortgage Investors, LLC
Attn: Mortgage Loan Servicing T3A
19225 NW Tanasbourne Drive
Hillsboro, OR 97124

STATUS UPDATE

ADMINISTRATIVE CITATION

FOR FAILURE TO ABATE PROPERTY NUISANCE
450 Jayne Street
King City, CA 93930
APN: 026-311-003-000
To BBKTDC LLC:

NOTICE IS HEREBY GIVEN THAT, pursuant to King City Municipal Code Chapter

7.51 Nuisances, of Title 7 Peace, Safety and Morals, the City of King ("the City") found your property located at 450 Jayne Street (hereinafter "the Property") continues to be a public nuisance which constitute a threat to public health and safety.

On January 8, 2025, the City sent a letter indicating that ACA Village/El Campo Apartments is operating without valid approvals (e.g., conditional use permit). A second letter was sent from the City regarding needed approvals to continue operating the use. On June 25, 2025, a third letter was sent to you regarding the need to comply with the corrections needed. On August 4, 2025, you received notice of the violations of the King City Municipal Code existing upon the Property; however, despite receiving notice and a reasonable time to abate the violations, you have failed to remove all the violations. On December 15, 2025, a letter was sent to you regarding Administrative Citations for Failure to Abate Property Nuisance. Upon inspection of the Property, there are still remaining violations of the King City Municipal Code. This letter provides the Status of 212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
BBKTDC LLC APRIL 2,
2026 STATUS UPDATE
violations, outstanding citation fines needing to be paid and continued violations that are subjecting you to further administrative citations for each violation and for each day said violation(s) remain unabated.

Section 7.51.101 Neighborhood Preservation:

It is unlawful for any person owning, renting, leasing, occupying or having charge or possession of any real property in the city to maintain such property in a manner that any of the following conditions are found to exist thereon, except as may be allowed by the King City Municipal Code. These conditions meet one or more of the following criteria and are considered nuisances subject to abatement and cost recovery as proscribed in this chapter: substantially detract from the appearance of the immediate neighborhood, reduce the property value in the immediate neighborhood, are an attractive nuisance, are materially detrimental to nearby properties and improvements, are a visual blight, are offensive to the senses, or are otherwise dangerous to public health, safety or welfare. (b) Broken Windows. Buildings with windows containing broken glass or no glass at all where the window is of a type which normally contains glass.

REMEDY: Repair or replace all broken or damaged windows on the Property.

STATUS: Remains unresolved. Unit 17, near the laundry area, has broken windows. (Reference Exhibit 1.)
(c) Building Materials and Household Fixtures and Equipment. Used or damaged lumber, junk, trash, debris, concrete, scrap metal, salvage materials and abandoned, broken, discarded or unused furniture, appliances, sinks, toilets, cabinets, or other household fixtures or equipment: (i) stored so as to be visible at ground level from a public street, alley or from adjoining property; or (ii) stored in a manner out of view but in an unsecured area accessible to minors; or (iii) stored in a manner as to harbor rodents, insects, or other vermin.

REMEDY: Remove all building materials including but not limited to all used or damaged lumber, junk, trash, debris, concrete, scrap metal, salvage materials and abandoned, broken, discarded or
unused furniture, appliances, sinks, toilets, cabinets, or other household fixtures or equipment on the Property.

STATUS: Remains unresolved. This is an ongoing issue. Tenants' personal belongings are stored and visible from public view. 212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M

BBKTDC LLC
APRIL 2, 2026

STATUS UPDATE
(d) Building Residue. Residue from a fire or demolition such as concrete or brick foundations and flatwork.

REMEDY: Remove all concrete or brick foundations and flatwork.

STATUS: Remains unresolved. Concrete, etc. still located near the old mobile home locations. (Reference Exhibit 2.)
(f) Deteriorated Buildings. Buildings which have become so deteriorated as to permit decay, excessive checking, cracking, peeling, chalking, dry rot, warping, or termite infestation.

REMEDY: Repair or replace all decay, excessive checking, cracking, peeling, chalking, dry rot, warping, or termite infestation currently existing on the Property.

STATUS: Remains unresolved. All units whether occupied or not much be maintained in good condition, including making all needed repairs and painting exteriors.
(g) Deteriorated Improvements. Walls, fences, hedges, driveways, sidewalks, walkways, and similar improvements which have become deteriorated, hazardous, defective, or unsightly.

REMEDY: Repair or replace all walls, fences, hedges, driveways, sidewalks, walkways, and similar improvements which have become deteriorated, hazardous, defective, or unsightly.

STATUS: Remains unresolved. The driveway, walkways and fencing have not been repaired, and citations will continue to be issued. (n) Landscaping. Front and visible side yards without acceptable landscaping, except for improved surfaces such as walks and driveways.

Acceptable landscaping shall include any ground cover, decorative rock, redwood bark, lawn and/or other material determined to be acceptable or required by the city manager or designee. Landscaping shall also be maintained in accordance with any approved permit, site plan, or landscaping plan.

REMEDY: Repair, replace or maintain existing landscaping upon the Property, including providing ground cover, decorative rock, redwood bark, lawn and/or other materials determined to be acceptable or required by the City. Remove all overgrown landscaping and weeds from the Property
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
BBKTDC LLC APRIL 2,
2026 STATUS UPDATE
STATUS: Remains unresolved. About fifty percent (50%) of the landscaping as been completed. The remaining landscaping must be improved. Citations will continue to be issued for this violation.
(o) Land Use Entitlements. The failure to comply with any condition imposed on an entitlement, permit, contract, or environmental document issued or approved by the city in connection with the property or any improvement located thereon.

REMEDY: Comply with all conditions of approval, entitlements, permits and/or environmental documents governing or regulating the use of the Property.

STATUS: Remains unresolved. The City's January 8, 2025, letter and subsequent letters from the City specify that the following must be submitted:

1. rezone application to a land use designation that allows high density residential, and consistent with the General Plan land use designation of HOR,

2. conditional use permit application,

3. architectural review application,

4. landscaping permit application,

5. business license, and

6. FEMA Elevation Certificate.

The above applications have not been submitted. You have fifteen days from the date of this letter to submit completed applications. Citations will continue to be applied until this requirement is met.
(z) Vehicles, Including Motor Homes, Trailers, and Boats. Any vehicle, recreational vehicle, motor home, camper, camper shell, boat, or trailer parked or stored outside of a garage or carport on an unpaved surface or otherwise in violation of the King City Municipal Code.

REMEDY: Remove all vehicles parked or stored outside of a garage, carport, or properly stripped and designated parking spot upon the Property.

STATUS: Remains unresolved. (Reference Exhibit 3.)
Section 7.51.102 Weeds, Vegetation, and Rubbish:
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M

BBKTDC LLC
APRIL 2, 2026

STATUS UPDATE
No person, whether such person is the owner, agent, or person in control of any lot or parcel of land within the city, shall maintain, permit, or allow such premises, or adjoining public way, sidewalk, street and/or alley, to be maintained in any of the following conditions, which are declared to be a public nuisance. It is the duty of the property owner to destroy or remove all such prohibited materials. (a) Refuge for Vermin. Dead, decayed, diseased or hazardous trees, weeds, grass, rubbish, refuse, dirt, debris, or any other matter or material which may provide a breeding place or refuge for rodents, insects, or other vermin.

REMEDY: Remove all dead, decayed, diseased or hazardous trees, weeds, grass, rubbish, refuse, dirt, debris, or any other matter or material which may provide a breeding place or refuge for rodents, insects, or other vermin.

STATUS: Remains unresolved. (Reference Exhibit 4.)
(f) Other Vegetation. Any other vegetation or materials which, because of lack of maintenance, create conditions which may become a fire or health hazard, including weeds which are otherwise subject to abatement by law.

REMEDY: Remove all dead, dying or overgrown vegetation or materials which create a fire or health hazard.

STATUS: Remains unresolved. (Reference Exhibit 4.)
Section 7.51.103 Garbage.
(b) Private Property. No person in control of any lot or parcel of land within the city, whether such person is the owner, agent, or tenant, shall maintain, permit, or allow any refuse matter, garbage, or filth which is hazardous to public health or safety to exist on such premises. Garbage shall be placed in approved containers.

REMEDY: Remove all garbage, refuse and/or filth upon the Property which is not contained within an approved container.

STATUS: Remains unresolved. (Reference Exhibit 5.)

PAYMENT OF ADMINISTRATIVE PENALTIES
The payment of the administrative citation penalties, in the amount of $270,750.00, must be submitted to the City Clerk at 212 S. Vanderhurst Avenue, 212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M

BBKTDC LLC
APRIL 2, 2026

STATUS UPDATE
King City. As you are aware, all penalties must be paid within fifteen (15) calendar days from the date on the administrative citation(s).

WARNING
If all ofthe above�identified King City Municipal Code violations are not removed or repaired immediately, the City may issue you additional administrative citations for each Municipal Code violation and for each day that the Municipal Code violations remain unabated.

Pursuant to King City Municipal Code Section 7.51.505, the following fines may be incurred for each day and each violation of the above-mentioned sections of the King City Municipal Code which remain unabated:
(1) One thousand ($1,000.00) dollars per violation per day.

Also, the City or a contractor hired by the City may abate each of the aboveidentified code violations and you will be billed for all costs incurred by the City for said abatement. In addition to the cost of abatement incurred by the City, you will be billed for all the City's administrative fees and enforcement costs, including but not limited to all the attorney's fees and costs and administrative time.

Thank you for your prompt attention to the repair and/or removal of the aboveidentified King City Municipal Code violation existing upon the Property.

Sincerely,
Roy C. Santos, City Attorney
c: Jose Arreola, City Manager
Doreen Liberto, AICP, Community Development Director
Robert Masterson, Chief of Police
Mark McClain, CBO, Building Official
Attachments:

Exhibits 1-5
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
Exhibit 1
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 386 - 5 9 6 8 WWW . K I N G C I T Y . C O M

King City City CouncilJuly 28, 2026

King City City Council
July 28, 2026