Monterey City Council
August 5, 2025

Council Chamber,
580 Pacific St.

Monterey, California

CITY COUNCIL AGENDA
Council Regular Meeting and
Closed Session
Tuesday, August 5, 2025
4:00 PM
Mayor
Tyller Williamson
Councilmembers
Kim Barber, District 1
Ed Smith, District 2
Jean Rasch, District 3
Gino Garcia, District 4
City Manager
Hans Uslar
City Attorney
M. Christine Davi
HOW TO PARTICIPATE IN THIS MEETING:
 In-Person: At the meeting location listed above.
 Remotely via ZoomGov webinar:
o On a computer or smartphone: https://monterey-org.zoomgov.com/j/1607729333 Zoom software must be up-to-date. For help, please use our Zoom Meeting Instructions. o By telephone dial 833-568-8864 (Toll Free), 669-254-5252 (CA) or 646-828-7666 (NY). If one number doesn’t work, please try another. Enter Webinar ID: 160 772 9333 # If asked for participant ID, press #. To raise your hand (or lower it), dial *9. Once called upon, dial *6 to unmute.
 This meeting will also stream live for viewing only on youtube.com/cityofmonterey (~10 second delay) and on Comcast Channel 25 (up to 90 second delay).  Written comment: Emailed comments to [email protected] sent no later than ½ hour before the start of the meeting (sooner preferred) are not read aloud but are made available to the Council and public at monterey.gov/submitted-comments.

PUBLIC COMMENT PROCEDURES AND TIME LIMITS:

The total amount of time allocated for public comment on a particular issue and for each individual speaker is generally as follows:

1. Up to three minutes per speaker.

2. For regular City Council meetings, there are two 15-minute public comment periods, one in the afternoon and one in the evening. Speakers may only comment during one session.

3. The total time allocated for public comment:
a. 30 minutes per item – Public Appearance and Public Hearing items b. 15 minutes per item – All other items (including, but not limited to, Consent, Closed Session, Presentations, and Requests to Agendize)
At the time an item is considered, the Mayor will ask those attending the meeting in person to line up at the podium or raise their hands, and for remote participants to use *9 on the telephone or the “raise hand” function in Zoom, if they wish to address the City Council. The maximum amount of time for each person to speak and the total amount of time allotted for each item will be determined based on the number of people indicating an interest in speaking and the amount of business to be conducted on the agenda. In exceptional circumstances and when necessary to ensure a full opportunity for public input, the Mayor may, with the legislative body’s consent, adjust the amount of time allowed for public input and/or the time allotted for each speaker.

CAMPAIGN CONTRIBUTION DISCLOSURE: Pursuant to the Levine Act (Govt. Code §84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.

August 5, 2025 4:00 PM
2 AFTERNOON SESSION (4:00 p.m.)
Call to Order
General Public Comments
The public may speak to any item that is not on the agenda and that is in the City of Monterey’s subject matter jurisdiction.

Consent Agenda
All matters listed under Consent Agenda are routine and will be adopted by one motion unless a member of the City Council or the public requests discussion or a separate vote.

Consent: Approval of Minutes

1. July 15, 2025 Regular Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)

2. July 23, 2025 Special Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Consent: Ordinances
An ordinance is a law adopted by the City Council and codified in the City Code. Through the adoption of an ordinance, the City may make and enforce within its limits all local, police, sanitary, and other laws not in conflict with state or federal law. An ordinance generally becomes effective 30 days after approval at a second reading.

3. 2nd Reading of the Sidewalk Vending Ordinance Update (Monterey City Code Chapter 32, Article 1, Section 3) (Exempt from CEQA Article 19, Section 15305, Class 5) Consent: Resolutions
A resolution is an expression of opinion or evidence of a decision made by the City Council and often relates to administrative business of the City. Resolutions generally become effective immediately upon adoption.

4. Adopt Resolution Certifying Compliance with State Law with Respect to Levying Assessments and Special Taxes; and Approve the Agreement with Monterey County (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

5. Award Professional Services Contract for Independent Audit Services to CliftonLarsonAllen Wealth Advisors, LLP and Authorize the City Manager to Execute the Agreement. (Not a Project Under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)

6. Award a Professional Services Agreement to Hinderliter, de Llamas and Associates for Transient Occupancy Tax Audit Services (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

7. Close and Defund Four (4) Neighborhood and Community Improvement Program (NCIP) Projects, Approve Funding to Cut-Off Projects from the Approved FY2024/25 NCIP Project List, and Authorize the Finance Director to Appropriate Funding (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
August 5, 2025 4:00 PM
3 8. Authorize the City of Monterey Cemetery El Encinal to Buy Back Cemetery Lot 9 in Block 268 for $2,872.75 Payable to Mr. Ron Cota (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) End of Consent Agenda
Afternoon Session Items
Public Appearance (Afternoon)
Public Appearance items are on non-routine issues that might stimulate public interest and comments.

9. Receive an Update and Provide Direction to Staff on the Development of 2025 Climate Action Plan (CAP) (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

10. Authorize the Mayor to Sign a Letter and Submit Public Comment to the California Public Utilities Commission (CPUC) to Reconsider the Long-Term Water Demand Forecasts in the Proposed Decision for Application 21-11-024 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) -- continued from July 23, 2025

11. Provide Direction to Staff on the Executive Recruitment for City Manager (Not a Project Under CEQA per Article 20 Section 15378 and Under General Rule Article 5 Section 15061)

12. Update the Governance Policy to Provide for a Mayor/Vice Mayor Subcommittee to Interview and Nominate Applicants to Boards, Commissions, and Committees, and Update the Council’s 2025 Appointments Chart (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Adjourn to Closed Session
The City Council will take public comments on closed session items before convening to closed session.

Closed Session (Afternoon)
Part or all of a meeting may be closed to the public under special conditions. Council can consider only matters covered in the agenda descriptions.

13. (A) Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1) -- continued from July 23, 2025:

1. City of Monterey v. Marianne McNicol (Monterey County Superior Court Case No. 23CV001205)

2. City of Monterey v. Leslie J. Flores, Trustee (Monterey County Superior Court Case No. 24CV000750)

3. Ashley Ellcessor v. City of Monterey (Monterey County Superior Court Case No. 24CV000649)

4. Francisca Moralez v. City of Monterey et al. (United States District Court Northern District of California Case No. 22-CV-07540)

5. Richard Rosendale v. City of Monterey (Monterey County Superior Court Case No. 23CV000879)

6. Ronald Rogers v. City of Monterey (Monterey County Superior Court Case No. 23CV003206)

7. Pacific Western Bank v. City and Stronghold Engineering, Inc. (San Bernardino Superior Court Case No. CIVSB2212212; Fourth District Court of Appeal Case No.

E082907)
August 5, 2025 4:00 PM
4 8. Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015)

9. Stronghold Engineering, Inc. v City of Monterey (Riverside County Superior Court Case No. CVR12103427)

10. Save Tarpy Flats v. City of Monterey (Monterey County Superior Court Case No. 24 CV005125)

11. Ruttschow v. City of Monterey (Workers' Compensation Appeals Board Case Nos.

ADJ17283108, ADJ1491826)

12. Silva v. City of Monterey (Workers’ Compensation Appeals Board Case No. Case No. ADJ17523531)
(B) Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(2):

1. Alexiou, Workers Compensation Claim No. 21MON056

2. Woltman, Workers Compensation Claim No. 24MON001
(Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

14. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1): Joseph Barboa v. City of Monterey (CRD Case No. 202403- 23873807) (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Recess
Reconvene
EVENING SESSION AGENDA (Approximately 7:00 p.m.)
No discussion of a new item will be started after 10:30 p.m. unless agreed upon by Council.

Pledge of Allegiance
General Public Comments, Continued
Any person who did not offer a general public comment in the afternoon session may speak to any item that is not on the agenda and that is in the City of Monterey’s subject matter jurisdiction.

Announcements from Closed Session
Evening Session Items
Public Hearing (Evening)
Public Hearings are held to receive a staff presentation and public comment on certain items prior to City Council action. NOTICE CONCERNING YOUR LEGAL RIGHTS: If you challenge the City Council’s zoning, planning, or land use decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing on the matter, or in written correspondence delivered to the City at the time of or prior to the public hearing. (Government Code section 65009.)

15. Adopt the Planning Commission Recommendation and Approve a 1st Reading of Ordinances Amending Chapter 33 and Chapter 38 of the Monterey City Code to Implement the Provisions of California Senate Bill 9 and Housing Element Program I-J Allowing for Ministerial Approval of Qualifying Residential Developments and Lot Splits (Not a Project under Division 13, Commencing with Section 21000, of the Public Resources Code)
August 5, 2025 4:00 PM
5 Public Appearance (Evening)
Public Appearance items are on non-routine issues that might stimulate public interest and comments.

16. Approve Changes to Rental Assistance Program (RAP) Guidelines (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15601)
Council Comments
Councilmembers may ask a question for clarification, make a brief announcement, or make a brief report on their activities. In addition, Councilmember or the City Council may provide a referral to staff or other resources for factual information. (Government Code section 54954.2(a)(3).)
City Manager Reports
The City Manager may make a brief report on their activities or a brief announcement. They may also ask for clarification or direction regarding scheduling of Council meetings and study sessions.

Adjournment
Writings distributed for discussion or consideration on these matters within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, are available at: monterey.gov/submitted-comments and in the City Manager’s Office at 580 Pacific St., Room 1, Monterey, CA 93940 during regular business hours. All comments and materials provided to the Council become part of the public record. Members of the public who comment in any fashion on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $500 to an officer of the City within the preceding 12 months.

INTERPRETATION: The Monterey City Council invites and encourages public participation at its meetings.

Requests for language interpretation may be made by contacting the City Clerk at [email protected] or 831-646-3935. The City Clerk will make every effort to accommodate requests for interpreter assistance.

Requests should be made as soon as possible in advance of any meeting of the City Council. The City is committed to addressing language interpretation requests swiftly in order to maximize public participation.

ACCESSIBILITY: The City of Monterey is committed to including disabled people in all of its services, programs and activities. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact [email protected] or (831) 646-3935.

Notification 30+ hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at (831) 646-3935 to coordinate use of a device.

CITY OF MONTEREY 24-HOUR SUGGESTION HOTLINES: (831) 646-3799 or [email protected] Upcoming city meetings are listed at monterey.gov/agendas For more information, call (831) 646-3935

CITY COUNCIL REGULAR MEETING

CITY OF MONTEREY
Tuesday, July 15, 2025
4:00 PM
COUNCIL CHAMBER, 580 PACIFIC ST., MONTEREY, CALIFORNIA
AND TELECONFERENCE LOCATION: 30 NONOHE PLACE, PĀʻIA, HAWAIʻI Councilmembers

Present: Barber, Rasch*, Smith, Williamson

Absent: Garcia
* Attended remotely by teleconference at the duly noticed teleconference location listed above
City Staff

Present:

Assistant City Manager, City Attorney, Finance Director, Human Resources Director, Public Works Director, City Clerk, Assistant Police Chief, Recreation Manager, Deputy Public Works Director/City Engineer, Recreation Coordinators (x2), Recreation Specialists (x2), Administrative Assistant (Recreation), Park Operations Manager, Sustainability Manager, Sports Center Manager, Parking Superintendent, Engineering Assistant II, Recreation Supervisor, Associate Civil Engineer, Assistant Urban Forester, Management Analyst (Recreation), Engineering Projects Manager, Park Maintenance Supervisor, Park Attendant (Veterans Park), Park Maintenance Worker, Facility Worker (MSC)
Teleconference Notice
This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act, Calif. Gov. Code sec. 54953(b).

AFTERNOON SESSION
Call to Order
Mayor Williamson called the meeting to order at 4:02 p.m. Mayor Williamson prompted Councilmember Rasch to confirm that she could hear the meeting proceedings, had posted the agenda 72 hours prior to the meeting at the teleconference location, and was providing public access from the same location, pursuant to GC 54953(b)(3). City Clerk Klein called the roll with the Council present as indicated above.

Presentations (Afternoon)

1. Recognize July as Parks and Recreation Month 2025 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Recognized Parks and Recreation Month
Recreation Manager Leon gave the staff presentation. Parks and Recreation employees received recognition from the Council.

Public comment was received from India Weeks and Esther Malkin, who both praised the Parks and Recreation programs and staff.

2. Presentation by Mayor Williamson on his Sister City Visit to Isola delle Femmine, Sicily, Italy (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Received presentation
Date: 8/5/2025
Item No.: 1.

Council Regular Meeting, 8/5/2025, Item No. 1., Item Page 1, Packet Page 6 City Council Minutes July 15, 2025
2 Mayor Williamson, together with Vince Malfitano of the Monterey chapter of Friends of Isola delle Femmine, gave the presentation and received Councilmembers' positive remarks. It was noted by the Council that public funds had not been used for the trip.

Public comment was received from Wendy Brickman, who spoke about the importance of the sister city relationship.

3. Receive Presentation on Residential Parking Permit Program Updates (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
Action: Received presentation
Parking Superintendent Steffy gave a verbal staff presentation and answered Councilmembers' questions.

Public comment was received from Marta Kraftzeck, who expressed concern about the proposed threshold for neighborhood support for residential parking programs, and Daniel Armendariz, who asked about how disabled parking worked within residential parking programs.

On question, Public Works Director Renny said that the City was fully compliant with current Americans with Disabilities Act (ADA) requirements for disabled parking and provided information on how disabled people with placards can park throughout the City. Assistant City Manager Rojanasathira said that Monterey High School was on target to complete their parking lot update project before the start of the school year.

The Council discussed the proposed threshold for neighborhood support of new residential parking programs, and the merits of a higher or lower threshold.

General Public Comments
Public comment on non-agendized matters was received from: Anthony Gonzales, Joyce Haferman, Jim Burns, India Weeks, Diane deLorimier, Devon Wardlow, and Wendy Brickman.

Brief remarks were made by the Council denouncing violence.

Consent Agenda
On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following roll-call vote, the City Council approved the Consent Agenda:

AYES: 4 COUNCILMEMBERS: Barber, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 1 COUNCILMEMBERS: Garcia
Consent: Approval of Minutes

4. May 23, 2025 Special Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
Action: Approved (4-0-1, Councilmember Garcia absent)

5. May 28, 2025 Special Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
Action: Approved (4-0-1, Councilmember Garcia absent)

6. June 17, 2025 Regular Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Approved (4-0-1, Councilmember Garcia absent)
Council Regular Meeting, 8/5/2025, Item No. 1., Item Page 2, Packet Page 7 City Council Minutes July 15, 2025
3 7. June 25, 2025 Special Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Approved (4-0-1, Councilmember Garcia absent)
Consent: Award of Construction Contracts

8. Awarding a Construction Contract in the Amount of $983,389.00 to Sweetwater Construction, Inc. for the Wharf 1 Immediate Repairs Project (Initial Study Mitigated Negative Declaration - Notice of Determination was filed on February 20, 2020) Action: Adopted Resolution No. 25-069 C.S. (4-0-1, Councilmember Garcia absent) Consent: Ordinances

9. 2nd Reading of an Ordinance Adopting an Administrative Remedies Procedure for Challenges to Fees, Charges, and Assessments (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Ordinance No. 3705 C.S. (4-0-1, Councilmember Garcia absent)

10. 2nd Reading of an Ordinance Amending Chapter 25, Article 3, Section 25-3.03(d)(3) to Authorize the Assistant City Manager to Delegate Investigation Duties Related to Harassment / Discrimination / Retaliation / Abusive Conduct / Bullying Policy Complaints (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Adopted Ordinance No. 3706 C.S. (4-0-1, Councilmember Garcia absent)

11. 2nd Reading of an Ordinance to Amend the Sidewalk Repair and Maintenance Ordinance to Repeal Requirement for Inspection and Repair Verification Upon Change in Property Ownership (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Adopted Ordinance No. 3707 C.S. (4-0-1, Councilmember Garcia absent) Consent: Resolutions

12. Approve the May 2025 Update of the Sanitary Sewer Management Plan (SSMP) in compliance with State Water Resources Control Board Order No. 2022-0103-DWQ (Exempt from CEQA, Article 19, Section 15306, Class 6)
Action: Adopted Resolution No. 25-070 C.S. (4-0-1, Councilmember Garcia absent)

13. Approve an Amendment to the Memorandum of Understanding (MOU) Between the Monterey Regional Waste Management District (ReGen Monterey) and Member Agencies Regarding Compliance with Organic Waste Recycling and Food Recovery Laws (SB 1383) to include FY 2025-2026 Costs of $43,178 for These Services (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Resolution No. 25-071 C.S. (4-0-1, Councilmember Garcia absent)

14. Authorize the Following Actions Related to the Jacks Park Improvement Project: (1) Submission of a Land Water Conservation Fund Grant Application to the California Department of Parks and Recreation for the Jacks Park Improvements Project and, If Awarded, Execute Grant Agreement; (2) Accept $150,000 in Grant Funds from the Monterey Peninsula Foundation; (3) Amend Resolution 25-060, the Five Year Capital Improvement Plan, to Add this Project; and (4) Appropriate Grant Funds (Exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15306, Class 6)
Action: Adopted Resolution No. 25-072 C.S. (4-0-1, Councilmember Garcia absent) Council Regular Meeting, 8/5/2025, Item No. 1., Item Page 3, Packet Page 8 City Council Minutes July 15, 2025
4 15. Adopting an Addendum to the Pure Water Monterey Groundwater Replenishment Project Environmental Impact Report (EIR) for the Lake El Estero Stormwater Diversion Project and Authorization to Proceed with Project Implementation (Adopt Addendum to the Pure Water Monterey Groundwater Replenishment Project Environmental Impact Report) Action: Adopted Resolution No. 25-073 C.S. (4-0-1, Councilmember Garcia absent)

16. Authorize the City of Monterey Fire Department to Apply for a California Fire Foundation Grant and Accept Grant Funding, if Awarded, (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-074 C.S. (4-0-1, Councilmember Garcia absent) End of Consent Agenda
Afternoon Session Items
Public Appearance (Afternoon)

17. Adopt the City of Monterey Local Road Safety Plan (Exempt from CEQA, Article 19, Section 15306, Class 6)
Action: Adopted Resolution No. 25-075 C.S. (4-0-1, Councilmember Garcia absent) Engineering Assistant Garcia gave a verbal staff presentation.

Public comment was received from Esther Malkin, who reported on a recent safety incident in the Laguna Grande neighborhood.

On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following roll-call vote, the City Council adopted Resolution No. 25-075 C.S.:

AYES: 4 COUNCILMEMBERS: Barber, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 1 COUNCILMEMBERS: Garcia
Adjourn to Closed Session
Public comment on the closed session item was not received. The Council adjourned to closed session at 6:08 p.m.

Closed Session (Afternoon)

18. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1):

United Public Employees of California, Local 792 v. City of Monterey (State of California Public Employment Relations Board Case No. SF-CE-2241-M) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: On a unanimous roll call vote (4-0-1, with Councilmember Garcia absent), confidential direction was given to legal counsel
Recess
Reconvene
Council Regular Meeting, 8/5/2025, Item No. 1., Item Page 4, Packet Page 9 City Council Minutes July 15, 2025
5 EVENING SESSION AGENDA
The Council reconvened at 7:08 p.m.

Pledge of Allegiance
Councilmember Smith led the Pledge.

General Public Comments, Continued
Public comment on non-agendized matters was received from Daniel Armendariz.

Announcements from Closed Session
Assistant City Manager Rojanasathira reported out from the closed session as indicated in the actions recorded for closed session item 18 above.

Evening Session Items
Public Appearance (Evening)

19. 1st Reading of the Sidewalk Vending Ordinance Update (Monterey City Code Chapter 32, Article 1, Section 3) (Exempt from CEQA Article 19, Section 15305, Class 5) Action: Passed ordinance to a second reading (4-0-1, Councilmember Garcia absent)
Planning Manager Hill gave the staff presentation and answered Councilmembers' questions.

Public comment critical of the ordinance included arguments that the restrictions would make it difficult for vendors to earn a living, suggestions of alternative solutions including a reservation system and larger vending spaces, allegations of lack of City enforcement of existing rules, allegations that the ordinance misrepresented state bills, and statements highlighting the diversity of vendors and their sense of community, and was received from: India Weeks, Rafael Zenizo, Athena Zenizo, Kirk Brock, Marina, Jim Burns, Elvie Avila, and Daniel Armendariz.

Public comment in favor of the ordinance included showing photos and discussing conditions suggesting significant congestion and accident risks on the recreational trail, statements highlighting concerns about current health and safety issues including sanitation, and allegations of aggressive behavior from vendors, and was received from: Judie Henderson, Anthony Lombardo and Wendy Brickman.

During public comments, there was a disruption from the audience and the Council recessed from 7:50 to 7:56 p.m.

The Council discussed the matter. Concern was expressed about the ability for a fire apparatus to enter the recreation trail area. Preference was expressed for eliminating crossover with vendors on both sides of the trail, and keeping the allowable area only to one side of the trail. It was questioned whether permittees could receive refunds if the procedures were changed.

Support was expressed for the ordinance, which it was stated would provide the right balance to reduce congestion and improve health and safety in the recreation trail area. Importance was expressed of health and safety in addition to appreciation for the vendors' entrepreneurialism and eclectic, rich community. It was stated that the staff recommendations were reasonable. It was stated that the approximately 13 tables that would be provided within the proposed ordinance Council Regular Meeting, 8/5/2025, Item No. 1., Item Page 5, Packet Page 10 City Council Minutes July 15, 2025
6 seemed like a good place to start. It was stated that there was opportunity for vendors to be successful, including at other locations. It was stated that the current status was not safe enough for everyone who uses the area.

There was another disruption from the audience and the Council recessed from 8:10 to 8:11 p.m.

Councilmember Barber left the Chamber from 8:11 to 8:13 p.m. The Council expressed disappointment with the disrespectful behavior exhibited by some members of the audience.

On a motion by Mayor Williamson, seconded by Councilmember Smith, and carried by the following roll-call vote, the City Council passed the ordinance to a second reading:

AYES: 4 COUNCILMEMBERS: Barber, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 1 COUNCILMEMBERS: Garcia
Council Comments
Councilmember Smith expressed thanks and appreciation for the City staff members, Old Monterey Business Association staff, and volunteers who all worked together on the July 4th celebration. He said he was looking forward to visiting Camp Quien Sabe soon. He said he enjoyed visiting Monterey's beaches and parks with his grandchildren, and appreciated parents for their hard work. He announced that he would attend the Chamber of Commerce's upcoming Excellence Awards ceremony. He said he would attend a conference in September on behalf of Monterey-Salinas Transit, which he said would be receiving a prestigious award.

Mayor Williamson provided an update from Monterey One Water (M1W) regarding the expansion of the Pure Water Monterey project, which he said might allow some additional flexibility for housing.

City Manager Reports
Assistant City Manager Rojanasathira provided brief details about the success of the City's 4th of July celebration. He announced the launch of the First City Academy in which residents would learn more about their local government. He invited all to attend the upcoming end of summer celebration on August 1.

Adjournment
The Council adjourned at 8:30 p.m.

Respectfully Submitted, Approved,
Clementine Bonner Klein Tyller Williamson
City Clerk Mayor
Council Regular Meeting, 8/5/2025, Item No. 1., Item Page 6, Packet Page 11

MINUTES

CITY COUNCIL SPECIAL MEETING

CITY OF MONTEREY
Wednesday, July 23, 2025
4:00 PM
COUNCIL CHAMBER, 580 PACIFIC ST.

MONTEREY, CALIFORNIA
Councilmembers

Present: Barber, Garcia, Rasch, Smith, Williamson

Absent: None
City Staff

Present:

City Manager, Assistant City Manager, City Attorney, Community Development Director, City Clerk, Housing Manager

AFTERNOON SESSION
Call to Order
Mayor Williamson called the meeting to order at 4:01 p.m. City Clerk Klein called the roll with the Council present as indicated above.

Pledge of Allegiance - Councilmember Barber led the Pledge.

Afternoon Session Items
Public Appearance (Afternoon)

1. Amend and Resubmit to the U.S. Department of Housing and Urban Development (HUD) the Draft Fiscal Year 2025-2029 Consolidated Plan and Draft Fiscal Year 2025-2026 Annual Action Plan for the Community Development Block Grant Program to comply with Federal Executive Orders and Authorize the City Manager to Make Administrative Changes Requested by HUD (Exempt from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26).

Action: Adopted Resolution No. 25-076 C.S.

Housing Manager Wyatt gave a verbal staff presentation.

Public comment was received from Esther Malkin, who expressed dismay over the need to remove equity statements from the document and stating that it was ironic and a step backward considering the other efforts the City had been making toward diversity and inclusion.

The Council briefly discussed the matter. It was stated that compliance with the federal government was important but that it was sad to see the City take this step. It was remarked upon that HUD was manipulating the principle of non-discrimination by invoking it while requiring the removal of diversity references from the plan. It was emphasized that equity and diversity were about fairness, and it was stated that the Council hoped for unity rather than division moving forward.

On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following vote, the City Council adopted Resolution No. 25-076 C.S.:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Date: 8/5/2025
Item No.: 2.

Council Regular Meeting, 8/5/2025, Item No. 2., Item Page 1, Packet Page 12 City Council Minutes July 23, 2025
2 2. Receive Updates and Provide Guidance on Matters Relating to Boards, Commissions, and Committees: (1) Governance Policy Changes that Will Provide for a Mayor/Vice Mayor Subcommittee to Interview and Nominate Applicants, (2) Process for Dissolving the Architectural Review Committee, (3) Potential Combination of the Historic Preservation Commission with the Museums and Cultural Arts Commission, and (4) Potential Term Limits for Members of Boards, Commissions, and Committees (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Directed staff to: Proceed with bringing the Governance Policy update forward on August 5, 2025 (consensus); Proceed with dissolving the Architectural Review Committee and consolidating its duties and powers to the Planning Commission (5-0); and Draft legislation establishing 12-year term limits for boards, commissions, and committees, with the condition that incumbents could continue serving if no other qualified residents applied (3-2, Councilmembers Rasch and Smith voting no); And received report on potential combination of the Historic Preservation Commission with the Museums and Cultural Arts Commission City Clerk Klein gave a verbal staff presentation and answered Councilmembers' questions, with additional input from Community Development Director Cole and City Attorney Davi.

Public comment opposing term limits was received from: Curt Tipton, an unidentified man, Marta Kraftzeck, Pat Venza, and Mike Brassfield, with reasons cited including that the interview and appointment process already allowed the Council to limit members' service, that finding sufficient volunteers could be difficult particularly in specific Neighborhood and Community Improvement Program (NCIP) neighborhoods, that it was risky to lose good experienced members, that continuity and experience were important, and that while it was important to have fresh new thoughts it should not be at the expense of losing an experienced member just because of a term limit. Comment in favor of term limits was received from Esther Malkin, who suggested a caveat allowing incumbents to continue to serve if there were no other qualified applicants. Tom Reeves echoed concerns that had been expressed about term limits but agreed that Ms. Malkin's suggestion was appropriate if term limits were approved. Nancy Soule suggested that the application for NCIP Committee positions include specific NCIP-related questions. Nina Beety opposed combining the Architectural Review Committee and Planning Commission, citing concern that state mandates and streamlining were stripping local jursidictional authority.

The Council took up the four components of the matter individually.

1. Governance Policy Changes that Will Provide for a Mayor/Vice Mayor Subcommittee to Interview and Nominate Applicant. On consensus, the Council agreed that the draft policy as proposed should come forward for their approval on August 5, 2025.

2. Process for Dissolving the Architectural Review Committee (ARC). The Council stated that this would be beneficial, and that they looked forward to learning more about various intricacies of the consolidation of the ARC to the Planning Commission. It was stressed that the Planning Commission should have members with architectural expertise.

On a motion by Councilmember Smith, seconded by Councilmember Garcia, and carried by the following vote, the City Council directed staff to move forward with dissolving the Architectural Review Committee and consolidating its duties and powers to the Planning Commission:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Council Regular Meeting, 8/5/2025, Item No. 2., Item Page 2, Packet Page 13 City Council Minutes July 23, 2025
3 3. Potential Combination of Historic Preservation Commission (HPC) with the Museums and Cultural Arts Commission (MCAC). The Council stressed that they were curious to hear from staff if the combination was even possible, citing concern about Mills Act review, HPC statutory requirements, and skills and abilities of the two bodies. Staff was encouraged to be creative around finding solutions for greater efficiency. Assistant City Manager Rojanasathira noted that staff would bring the matter back to the Council with ideas but that there was no urgency on this item.

4. Potential Term Limits for Members of Boards, Commissions, and Committees In opposition to term limits, it was stressed by the Council that the current process already provided a form of term limits through the four-year review and reappointment process, and gave the Council the most options to select the best volunteer for each position and ensure continuity.

Concern was expressed about the difficulty of finding volunteers under a term limit system, citing economic restraints, and about the potential loss of experienced individuals. The importance was emphasized of retaining experienced members and ensuring members' competence, skills, and abilities. It was highlighted that when necessary, the Council had the authority to address a member's performance issues or attendance concerns mid-term. It was stated that there had been no evidence presented that there was any problem requiring the addition of term limits.

In favor of term limits, it was stated that the concept was not intended to remove members but rather to create a space and opportunity for civic participation. It was stressed that there needed to be a balance between retaining knowledge and getting innovative, new voices.The need to retain knowledge and expertise was acknowledged, but it was stated that the Council should not close the opportunity for people who want to be involved in their community just because they did not have the specific knowledge required to participate. It was stated that board vacancies did not relate to term limits but rather to engagement, which it was stated was a priority. It was noted that the upcoming First City Academy provided an opportunity to recruit for City boards and commissions. The importance was highlighted of having a structured system in place.

Comparisons were made between the current discussion and ballot Measure X regarding Mayor and Council term limits at the 2024 election, and it was noted that 80% of Monterey voters had voted in favor of term limits for the Mayor and Council. It was stated that term limits would create more of a community opportunity to uplift people and that Monterey had plenty of intelligent people able to step up and serve well in these roles. It was suggested to adopt a 12-year term limit policy similar to the Council's, with the condition that incumbents could continue serving if no other qualified applicants came forward.

On a motion by Mayor Williamson, seconded by Councilmember Garcia, and carried by the following vote, directed staff to draft legislation establishing 12-year term limits for boards, commissions, and committees, with the condition that incumbents could continue serving if no other qualified residents applied:

AYES: 3 COUNCILMEMBERS: Barber, Garcia, Williamson
NOES: 2 COUNCILMEMBERS: Rasch, Smith

3. Authorize the Mayor to Sign a Letter and Submit Public Comment to the California Public Utilities Commission (CPUC) to Reconsider the Long-Term Water Demand Forecasts in the Proposed Decision for Application 21-11-024 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Continued to August 5, 2025
Mayor Williamson stated that the CPUC meeting in question had been postponed until midAugust, and suggested pushing the discussion of the letter to the August 5, 2025 Council meeting to allow more time for public feedback and input.

Council Regular Meeting, 8/5/2025, Item No. 2., Item Page 3, Packet Page 14 City Council Minutes July 23, 2025
4 Public comment was received from Daniel Armendariz, who expressed gratitude that the Council continued to pay attention to and take action on water issues.

On a motion by Mayor Williamson, seconded by Councilmember Smith, and carried by the following vote, the City Council continued the matter to August 5, 2025:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Adjourn to Closed Session
Public comment on the closed session was received from Nina Beety, who criticized the City Manager's performance and made allegations across a broad set of categories including management, public process, and transparency. During public comment, Councilmember Barber left the Chamber from 5:27 to 5:29 p.m.

Closed Session (Afternoon)

4. Public Employee Performance Evaluation pursuant to Government Code section 54957(b)(1): City Manager (Not a Project Under CEQA, per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: On a unanimous roll call vote, "the City Council, regrettably, accepts the December 30, 2025 resignation/retirement of City Manager Hans Uslar."

5. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1):

1. City of Monterey v. Marianne McNicol (Monterey County Superior Court Case No. 23CV001205)

2. City of Monterey v. Leslie J. Flores, Trustee (Monterey County Superior Court Case No. 24CV000750)

3. Ashley Ellcessor v. City of Monterey (Monterey County Superior Court Case No. 24CV000649)

4. Francisca Moralez v. City of Monterey et al. (United States District Court Northern District of California Case No. 22-CV-07540)

5. Richard Rosendale v. City of Monterey (Monterey County Superior Court Case No. 23CV000879)

6. Ronald Rogers v. City of Monterey (Monterey County Superior Court Case No. 23CV003206)

7. Pacific Western Bank v. City and Stronghold Engineering, Inc. (San Bernardino Superior Court Case No. CIVSB2212212; Fourth District Court of Appeal Case No.

E082907)

8. Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015)

9. Stronghold Engineering, Inc. v City of Monterey (Riverside County Superior Court Case No. CVR12103427)

10. Save Tarpy Flats v. City of Monterey (Monterey County Superior Court Case No. 24 CV005125)

11. Ruttschow v. City of Monterey (Workers' Compensation Appeals Board Case Nos.

ADJ17283108, ADJ1491826)

12. Silva v. City of Monterey (Workers’ Compensation Appeals Board Case No. Case No.

ADJ17523531)
(Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Council Regular Meeting, 8/5/2025, Item No. 2., Item Page 4, Packet Page 15 City Council Minutes July 23, 2025
5 Action: On a unanimous roll call vote of 4-0-1 (with Councilmember Barber absent), the matter was continued to August 5, 2025
Adjournment
The Council adjourned at 6:04 p.m.

Respectfully Submitted, Approved,
Clementine Bonner Klein Tyller Williamson
City Clerk Mayor
Council Regular Meeting, 8/5/2025, Item No. 2., Item Page 5, Packet Page 16 ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№08/22

SIDEWALK VENDING ORDINANCE UPDATE
(MONTEREY CITY CODE CHAPTER 32, ARTICLE 1, SECTION 3)
THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, since 1936, Monterey City Code section 32-3 has generally prohibited the use of public property for transacting commercial business. Senate Bill (“SB”) 946 was signed into law on September 17, 2018, prohibiting local agencies from regulating sidewalk vendors except in accordance with its provisions, which are codified in Government Code sections 51038 and 51039;
WHEREAS, the City Council adopted Ordinance 3606 on December 3, 2019, recognizing that sidewalk vending provides important entrepreneurship and economic development opportunities to low-income and immigrant communities, contributes to a dynamic public space, and increases access to desired goods and culturally significant food and merchandise;
WHEREAS, the City Council also finds that the act of vending on sidewalks and other areas of the public right-of-way has the potential for increased safety hazards, such as, but not limited to, inhibiting the ability of disabled individuals and other pedestrians to follow a safe path of travel; interfering with the performance of police, firefighter, and emergency medical personnel services; encouraging pedestrians to cross mid-block or stand in roadways to purchase food and other items; and creating obstacles and contributing to congestion for pedestrian, vehicle, and bicycle traffic;
WHEREAS, restrictions on sidewalk vending are needed to accommodate vendors and their equipment, while also safe-guarding the flow of pedestrian movement on sidewalks and in the public right-of-way, and ensuring no interference with the performance of police, firefighter, and emergency medical personnel services;
WHEREAS, Cannery Row area is a popular tourist attraction in the City with over 5.7 million visitors per year with the average number of pedestrians in the area topping one thousand beginning at 11 am on weekdays and 10 am on weekends and holidays. Additionally, the Monterey Bay Aquarium is located on Cannery Row and has an annual average attendance of 1.8 million visitors;
WHEREAS, the City Council finds that based on the heavy pedestrian and vehicular traffic and physical characteristics of the sidewalks in the Cannery Row area, the presence of vendors on sidewalks along Cannery Row between David Avenue and Hoffman Avenue between the hours of 11 am - 6 pm Monday through Friday and 10 am - 9 pm on weekends and Date: 8/5/2025
Item No.: 3.

Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 1, Packet Page 17 2 holidays would obstruct such sidewalks thereby jeopardizing the safe and convenient circulation of the large number of pedestrians and motorists who utilize the streets and sidewalks in Cannery Row;
WHEREAS, the Monterey County Fairgrounds are located within the City’s North Fremont Business District and periodically hosts major events, including the Monterey Jazz Festival, the California Roots music festival, and the Monterey County Fair; WHEREAS, the City Council finds that based on the physical characteristics of the sidewalks adjacent to the Monterey Fairgrounds and its respective parking area, the presence of vendors on sidewalks along Fairground Road between Garden Road and Airport Road before, during, and after major events would obstruct such sidewalks thereby jeopardizing the safe and convenient circulation of the large number of pedestrians and motorists who utilize the streets and sidewalks in areas adjacent to the Monterey Fairgrounds; WHEREAS, in order to promote mobility and safety of pedestrians and vehicles at all times, the City Council has determined that prohibiting persons from engaging in sidewalk vending two hours before, during, and two hours after, major events at the Monterey Fairgrounds is necessary to preserve and protect the health, safety and welfare of the public; WHEREAS, the City Council finds that the Monterey Bay Coastal Recreation Trail, an 18-mile, regional, multi-purpose trail, is a unique natural resource and recreational opportunity that should be preserved for the public’s recreational use and enjoyment and protected against commercial activity that would unreasonably interfere with the scenic and natural character of the trail;
WHEREAS, the nearby Monterey Bay National Marine Sanctuary prohibits the discharge of balloons into the Sanctuary as they present a hazard to both wildlife and the marine environment. Additionally, foil balloons lead to multiple power outages in the state of California each year due to the balloons coming into contact with overhead power lines; WHEREAS, City of Monterey Parks employees have to spend additional hours to clean areas where water balloons, glitter, confetti, and streamer spray, also known as aerosol string, have been used due to the many small pieces left in the parks. These items are also often made of plastic, which does not biodegrade;
WHEREAS, the City Council finds that prohibiting the sale of helium balloons, water balloons, plastic glitter, confetti, and streamer spray, also known as aerosol string, by sidewalk vendors will protect wildlife, the marine ecosystem, and the public; WHEREAS, the inherent nature of sidewalk vending and the ability of such vendors to move quickly from place to place in the community, including near parks, schools, and other places frequented by children, warrants imposing certain regulatory measures, including requiring background checks, to protect the health, safety, and welfare of the community; Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 2, Packet Page 18 WHEREAS, in January 2023, SB 972 took effect and updated the California Retail Food Code to exempt some sidewalk vending operations from the requirement to obtain a health permit and the City Code needs to be updated to reflect this change; WHEREAS, the City Council finds that the Monterey Bay Coastal Recreation Trail, which is a Class 1 multiuse path, is heavily used by both visitors and locals and that vending on or along the Trail would jeopardize the safe and convenient circulation of the large number of pedestrians, bicyclists, and others who utilize the trail; WHEREAS, since the enactment of Ordinance 3606, the City has observed health and safety issues related to sidewalk vending, and it has received complaints regarding safety, aesthetics, congestion of public spaces, among other complaints, resulting from sidewalk vending activity. In particular there are concerns with sidewalk vending operations interfering with the flow of runners, bikers, and pedestrians on the recreation trail, and obstructing oceanfront views and coastal access. Given this, there is a need for additional regulation of sidewalk vendors on public property that are directly related to objective health, safety, and welfare concerns created by competing uses of sidewalks by residents, visitors, and sidewalk vendors. The Council further finds and declares that regulations on sidewalk vending in City parks, open spaces, and beach access areas are necessary to ensure the public’s use and enjoyment of natural resources and recreational opportunities and are necessary to prevent an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of the parks, open spaces, and beach areas. In addition, umbrellas, shade structures, and display items that are higher than eight feet can more easily catch the coastal wind and pose safety concerns;
WHEREAS, the City’s Harbormaster’s Office located at 250 Figueroa Street north to Wharf 1, which is less than 1/2 mile long and is a major tourist area receiving approximately four million visitors each year. This area is adjacent to the beach, the marina, the recreation trail, state owned property where sidewalk vending is prohibited, and the City’s Waterfront Parking Lot. This area offers residents and visitors a clear view of the scenic Monterey Bay and the marina. This area offers scenic vistas and wildlife viewing, including harbor seals, sea otters, sea lions, birds, and sometimes whales. California State Historic Landmark No. 1 (Custom House) is located adjacent to this congested area, and it draws additional people to the vicinity and multiple festivals take place in Custom House Plaza. Users of the Waterfront Parking Lot, which has 433 regular spaces, 10 ADA spaces, 11 bus/RV spaces and one compact space, must be afforded access to the Fisherman’s Wharf, the beach, and the Monterey Bay. Based on the physical characteristics of the area, additional sidewalk vending regulations are necessary because the equipment and activities that accompany vending, including tables, displays, and interacting with pedestrians is incompatible with the confines of this space and poses a risk of accidents and injury to walkers, runners, bicycle riders, and visitors as they attempt to navigate the path congested with vendors;
WHEREAS, the City Council determines that this ordinance is a matter of City-wide importance and necessary for the preservation and protection of the public peace, health, safety and/or welfare of the community, is a valid exercise of local police power and is in accordance with the public purposes and provisions of applicable State and local laws and requirements; WHEREAS, the City of Monterey Planning Office determined the project is exempt from Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 3, Packet Page 19 4 the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15305, Class 5) because the project consists of a Municipal Code amendment to modify sidewalk vending regulations in areas with existing sidewalk vending regulations, which would not result in any changes in population density or traffic patterns. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions found at CEQA Guidelines Section 15300.2; Exception a - Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located – a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are considered to apply in all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. No significant impact will occur because this is a minor change to land use limitations.

Exception b - Cumulative Impact. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant. No cumulative impact will occur because this is a minor change to land use limitations.

Exception c - Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances. No significant effect will occur because this is a minor change to land use limitations.

Exception d - Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified Environmental Impact Report (EIR). No impact will occur because there would be no improvements or damage to a scenic highway.

Exception e - Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. Hazardous waste sites will not be impacted because no construction is proposed.

Exception f - Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource. No impact to historical resources will occur because no construction is proposed.

NOW THEREFORE, the Monterey City Council declares as follows:

SECTION 2: The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 3: Monterey City Code section 32-3.01, Sidewalk Vending – Definitions, is hereby amended to insert the following definitions in alphabetical order, and the existing definitions are to be re-lettered in alphabetical order:

Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 4, Packet Page 20 “Above-ground structure” means any structure affixed to a sidewalk, including a streetlight, tree well, parking meter, utility structure, utility box, bike rack, mailbox, trash can, elevator, kiosk, newspaper rack, picnic shelter, bench, wall, sign pole, traffic signal pole, signal pushbutton pole, planter, and stairs.”
“Beach access point” means public stairways, ramps, and other physical access points to the beach.
“School” means an institution of learning that offers instruction in those courses of study required by the California Education Code or that is maintained pursuant to standards set by the State Board of Education. This definition does not include a vocational or professional institution or an institution of higher education, including a community or junior college, college, or university.”
SECTION 4: Monterey City Code section 32-3.02(b)(4) is hereby amended as follows:
“If the applicant will vend food products and if required by the California Retail Food Code, a valid Monterey County Health Department permit issued to the vendor and, if applicable, to the transport vehicle.”
SECTION 5: Monterey City Code section 32-2.02(b)(7) is deleted effective January 1, 2026 if Senate Bill 635 (Durazo) becomes law.

SECTION 6: Monterey City Code section 32-3.03(b)(6) is deleted effective January 1, 2026 if Senate Bill 635 (Durazo) becomes law, and existing subsections (b)(7) and (b)(8) will be renumbered as subsections (b)(6) and (b)(7).

SECTION 7: Monterey City Code section 32-3.03(b)(6) is hereby amended as follows:
“Proof of a policy or policies of comprehensive general liability insurance insuring the sidewalk vendor and naming the City as an additional insured against loss by reason of injury or damage that may result to persons or property from the negligent operation or defective construction of the sidewalk vending device, or from violation of this chapter or of any other law of the State or the United States. The insurance policy shall be in the sum as determined adequate by the City’s Finance Director, or designee, which said sum shall be listed on the sidewalk vending permit application. Such insurance shall further provide that the policy shall not terminate or be canceled without 30 calendar days’ advance written notice to the City.”
SECTION 8: Monterey City Code section 32-3.07(f) is amended as follows:
“Sidewalk vendors shall not display any goods for sale on the ground. Displays may not be less than 28 inches or more than 60 inches off the ground. Sidewalk vendors shall not display any goods for sale on any above-ground structure.”
SECTION 9: Monterey City Code section 32-3.07(g) is amended as follows:

Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 5, Packet Page 21 6 “Sidewalk vendors shall not connect to an external source of power, water, or any other utilities located on public property.” SECTION 10: Monterey City Code section 32-3.07(j) is amended as follows:
“Sidewalk vendors shall not leave vending equipment or goods unattended at any time. Any equipment or objects used for sidewalk vending purposes must be removed from public property at 10:00 p.m. or by the hours of operation imposed on other businesses or uses on the same street, whichever is least restrictive. Any equipment or objects used for sidewalk vending purposes left on City property outside of permitted sidewalk vending hours will be considered discarded and may be
immediately seized or disposed of by the City.”
SECTION 11: Monterey City Code section 32-3.07(k) is amended as follows:
“To facilitate the enforcement of this chapter, every sidewalk vendor must display their City-issued sidewalk vending permit on their pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance when
operating. Every sidewalk vendor must possess proof of
insurance required by this chapter when operating.”
SECTION 12: Monterey City Code section 32-3.07(s) is amended as follows:
“No sidewalk vendor shall occupy a space exceeding 32 square feet, greater than eight feet in length, or four feet in width, including vending equipment but excluding the space the sidewalk vendors own person occupies.”
SECTION 13: Monterey City Code section 32-3.07 Sidewalk vending- General regulations, subsections (t) through (y) are added as follows:
t. No sidewalk vendor shall use or display any item, equipment, or structure greater than eight feet in height or that extends or overhangs more than four inches.
u. Sidewalk vending customer seating is prohibited.
v. No vending equipment may be attached to or contact any above-ground structure.
w. Sidewalk vending hours limitations in areas zoned for nonresidential use will be between 6:00 a.m. and 10:00 p.m. or the hours of operation imposed on other businesses or uses on the same street, whichever is least restrictive.

Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 6, Packet Page 22 x. Roaming sidewalk vending is limited to the hours of 9:00 a.m. through 5:00 p.m. for areas that are exclusively residential. y. Sidewalk vendors shall not use portable generators, outdoor wood burning ovens, charcoal barbecues, or gasoline or
kerosene.

SECTION 14: Monterey City Code section 32-3.08 Sidewalk vending- Specific regulations, is retitled as Monterey City Code section 32-3.08, Sidewalk Vending- Location regulations.

SECTION 15: Monterey City Code sections 32-3.08(a) and (b) are amended as follows:
“a. Stationary sidewalk vending shall not be located:

1. within 10 feet of any:

A. other sidewalk vendor;
B. driveway;
C. marked crosswalk; or
D. fire escape.

2. within 15 feet of any:

A. intersection;
B. building entrance;
C. loading zone, parking space or access ramp designed for individuals with disabilities;
D. fire hydrant;
E. red curb marking (no parking);
F. public restroom;
G. any decorative fountain, statute, monument, memorial, or art installation; or
H. curb ramp.

3. within 25 feet of:

A. outdoor dining or patio area;
B. any beach access point;
C. Municipal Wharf No. 1; or
D. Municipal Wharf No. 2.

4. within 100 feet of any:

A. vehicle entrance to any Fire Station, Police Department, Hospital, or any other structure dedicated to health and safety emergency matters; or
B. street or sidewalk closure.

5. within 500 feet of:

A. the property line of any school while children are going to or from the school, during a recess period, or within 20 minutes before or after the school’s opening or closing hours;
B. a permitted certified farmers’ market or any area subject to a special event permit for the duration of the permit; or C any freeway on-ramp or off-ramp as defined in the California Vehicle Code.
b. Stationary sidewalk vendors are prohibited from:

Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 7, Packet Page 23 8 1. vending in areas that are exclusively residential; or

2. vending within five feet of any above-ground structure.” SECTION 16: Monterey City Code section 32-3.08(c) is amended as follows:
“(c) Sidewalk Vanding Location Allocation Process

1. Sidewalk Vending locations are available on a first-come first-served basis.

2. Notwithstanding subsection (c)(1), the Community Development Director, or designee, is authorized to develop and implement a lottery or registration process and guidelines for the area between the Harbor Master’s office at 250 Figueroa to Wharf 1.”
SECTION 17: the first sentence of Monterey City Code section 32-3.08(d) is amended as follows:
“In addition to the other applicable requirements of this chapter, sidewalk vending in City parks is subject to the following regulations, and in the event of a conflict between the provisions of this section and other provisions of this chapter, this section shall govern sidewalk vending in City parks:”
SECTION 18: Monterey City Code section 32-3.08(d)(2) is amended as follows:
“Sidewalk vending in City parks may only occur during the park’s normal open hours.

Sidewalk vending is permitted between 8:00 a.m. and sunset in parks where there is no designated closing time.”
SECTION 19: Monterey City Code section 32-3.08(d)(5) is added as follows:
“Sidewalk vendors shall not vend within 50 feet of another sidewalk vendor.” SECTION 20: Monterey City Code section 32-3.08(e) is amended as follows:
“e. Sidewalk vending is prohibited on the sidewalk between the Harbor Master Office located at 250 Figueroa Street and Wharf 1 within 12’ of the walkway railing or rock causeway.

SECTION 21: Monterey City Code section 32-3.08(g) is amended as follows:
“No sidewalk vending shall be allowed in, on, along, or within 25 feet on either side of the centerline of Monterey Bay Coastal Recreation Trail within the City of Monterey.” SECTION 22: Monterey City Code section 32-3.08(i) is added as follows:
“No sidewalk vending shall be allowed in, on, along, or within Simoneau Transit Plaza.” SECTION 23: All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 24: If any section, sub-section, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 8, Packet Page 24 Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, sub-section, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, sub-sections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.

SECTION 25: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 3., Item Page 9, Packet Page 25 Council
Agenda Report
№11/25
FROM: Rafaela T. King, CPA, MBA, Finance Director
Prepared By: Youssef Hanalla, CPA, Finance Manager
SUBJECT: Adopt Resolution Certifying Compliance with State Law with Respect to Levying Assessments and Special Taxes; and Approve the Agreement with Monterey County (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

It is recommended that the City Council adopt the
attached resolution certifying compliance with State Law with respect to levying assessments and special taxes;
and approve the agreement for the collection of special taxes, fees, and assessments as required by the County
of Monterey.

VALUE DRIVERS:

Serve as stewards of the City’s financial resources
through sound economic vitality efforts, streamlining
operations, reasonable revenue enhancements, visionary
long-term planning, fiscal transparency, and community
partnerships.

POLICY IMPLICATIONS:

The passage of this resolution will ensure the continued collection of assessments and special taxes by the
County Tax Collector.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Passage of the resolution will have a positive fiscal effect on the City because the County will continue to collect assessments and special taxes on our behalf. This
resolution has no effect on the amount of assessments
and special taxes.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed
action is not a project as defined by the California
Environmental Quality Act (CEQA)(CCR, Title 14,
Agenda Report Highlights
 City Council is recommended to
adopt a resolution to certify
compliance with State Law for
levying assessments and special
taxes and approving an agreement
with the County for tax collection.
 Non-passage of the resolution
would require the City to collect
assessments and taxes
independently, risking default or
reliance on General Fund monies.
 Recurring assessments and taxes
include Emergency Medical
Services, Alvarado Street
Maintenance District, Calle Principal
Maintenance District, and Sewer
Service Charges.
 The resolution ensures compliance
with Proposition 218 and includes
indemnification provisions for
administrative expenses of
Monterey County.
 Signed resolution and agreement
are required for processing the
2025-26 secured roll tax bills.

Date: 8/5/2025
Item No.: 4.

Council Regular Meeting, 8/5/2025, Item No. 4., Item Page 1, Packet Page 26 №11/25
Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

Non passage of the resolution or agreement would mean that the County would discontinue collection of assessments and special taxes for the City of Monterey. If this were to occur, the city would be in a position of (1) collecting our own assessments and special taxes from individual property owners, (2) paying our outstanding assessment obligations with General Fund monies or (3) defaulting on the outstanding obligations.

DISCUSSION:

In 1997 the County of Monterey informed each agency using their tax rolls for collection of taxes, assessments, fees and charges (other than the 1% ad valorem tax) that they will require for the 1997-98 fiscal year and each year thereafter, a certification resolution to ensure that Proposition 218’s provisions are being addressed by the agency. The City Attorney and the Finance Director have reviewed the City’s assessments and special taxes that are collected by the County on the annual tax bills and have concluded that the City is complying on all issues.

The recurring assessments and special taxes are as follows:
1) Emergency Medical Services – this is a special tax approved by the voters in March 2000.

The tax is currently set at $5.00 per benefit unit, and the proceeds are used to fund paramedic emergency medical service to the citizens of Monterey. 2) Alvarado Street Maintenance District – this is an annual assessment collected from property owners with property fronting Alvarado Street. The funds are used to repair and maintain improvements.
3) Calle Principal Maintenance District – this is an annual assessment collected from property owners with property fronting Calle Principal. The funds are used to repair and maintain improvements.
4) Sewer Service Charges – this assessment was added to the county tax roll starting with fiscal year 2024-25. This action has met all California Health and Safety Code requirements under Section 543 as first approved by the City Council on July 16, 2024 (Reso. 24-115) and renewed for fiscal year 2025-2026 on June 3, 2025 with the adoption of Resolution 25-056.

The resolution certifies compliance with the Proposition and includes a hold harmless and indemnification provision for administrative expenses of the County. Additionally, the County of Monterey has updated their agreement to be consistent across all agencies and are requiring the Council Regular Meeting, 8/5/2025, Item No. 4., Item Page 2, Packet Page 27 №11/25
agreement to be submitted with the Resolution for the processing of the 2025-26 secured roll tax bills, which includes taxes, assessments, fees, and charges.

The resolution, signed agreement, and the assessment information are due, and will be delivered to the Monterey County Auditor-Controller’s office upon ratification.

RTK/yh
Attachments: 1. Resolution

2. Exhibit A
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 4., Item Page 3, Packet Page 28 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24

CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE LEVYING OF

GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND PROPERTY-RELATED FEES

AND CHARGES
WHEREAS, the City of Monterey requests that the Monterey County Auditor-Controller enter those general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A” on the tax roll for collection and distribution by the Monterey County Treasurer-Tax Collector commencing with the property tax bills for fiscal year 2025-26; and WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby:

1. Certifies that, the City of Monterey has, without limitation, 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 and requirements are set forth in the Constitution of the State of California, in State statues, or in the applicable decisional law of the State of California.

2. The City of Monterey further certifies that, except for the sole negligence or misconduct of the County of Monterey, its officers, employees, and agents, with regard to the handling of the compact disc or electronic file identified as Exhibit “A”, the City of Monterey 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 Council Regular Meeting, 8/5/2025, Item No. 4., Item Page 4, Packet Page 29 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.

3. Approves the agreement between the County of Monterey and the City of Monterey for the collection of special taxes, fees, and assessments.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 4., Item Page 5, Packet Page 30 Exhibit A
EXHIBIT "A"
TO

RESOLUTION CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE LEVYING OF GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND PROPERTYRELATED FEES AND CHARGES FISCAL YEAR 2025-26
GENERAL TAXES:

None
SPECIAL TAXES:

Emergency Medical Services
ASSESSMENTS:
(#528) Alvarado Street Maintenance District 85-1
(#533) Calle Principal Maintenance District 00-01

PROPERTY-RELATED FEES AND CHARGES:

City of Monterey Sewer Fees
Council Regular Meeting, 8/5/2025, Item No. 4., Item Page 6, Packet Page 31 Council
Agenda Report
№11/25
FROM: Rafaela T. King, CPA, Finance Director
Prepared By: Stella Sandoval, Assistant Finance Director SUBJECT: Award Professional Services Contract for Independent Audit Services to CliftonLarsonAllen Wealth Advisors, LLP and Authorize the City Manager to Execute the Agreement. (Not a Project Under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt the attached resolution
awarding a contract for audit services to
CliftonLarsonAllen Wealth Advisors, LLP (CLA), for a
term of three years with an option to extend for two
additional years, to perform annual year-end audits of
the City’s financial records and reports and authorize
the City Manager to execute a contract.

VALUE DRIVERS:

Serve as stewards of the City’s financial resources
through sound economic vitality efforts, streamlining
operations, reasonable revenue enhancements,
visionary long-term planning, fiscal transparency, and
community partnerships.

POLICY IMPLICATIONS:

An annual audit is consistent with the requirements set forth under Section 6.2 of the Monterey City Charter that the City’s fiscal record be audited annually by an
independent certified public accountant.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: Yes.

FISCAL IMPLICATIONS:

The cost of the annual audit for each of the next three fiscal years is as follows:

Fiscal Year Total Cost (Not-to-Exceed)
2024-2025 $90,930
2025-2026 $94,110
2026-2027 $97,410
Agenda Report Highlights
 The City Council is recommended to
award a three-year contract, with an
option for two additional years, to
CliftonLarsonAllen Wealth Advisors,
LLP for annual audits of the City’s
financial records.
 The proposed costs for the audits
are $90,930 for FY 2024-25,
$94,110 for FY 2025-26, and
$97,410 for FY 2026-27, with
funding included in the respective
budgets.
 CliftonLarsonAllen Wealth Advisors,
LLP was selected after a
competitive RFP process involving
seven firms, with four invited for
interviews and references checked
for the top two finalists.
 The firm demonstrated expertise in
auditing California cities and has the
resources to ensure successful
audits, meeting the City’s objectives
and compliance with the Monterey
City Charter.

Date: 8/5/2025
Item No.: 5.

Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 1, Packet Page 32 №11/25
No contingencies are required as the amounts included in the proposals are all-inclusive, not-toexceed totals. Adequate funding for the first year under audit is included in the FY 2025-26 proposed budget. Amounts for the ensuing fiscal years will be included in each of the subsequent budget cycles.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

Council could choose not to enter into an agreement with CliftonLarsonAllen Wealth Advisors, LLP and instruct staff to consider an alternate firm or initiate and perform another Request for Proposal (RFP) process to solicit additional firms. This alternative is not recommended as CliftonLarsonAllen Wealth Advisors, LLP has submitted a satisfactory proposal that meets the City’s objectives.

DISCUSSION:

As required by the Charter, the City retains a certified public accounting firm on an annual basis to audit the financial records of the City, Joint Powers Financing Authority, and Presidio Municipal Services Agency, perform the Single Audit of federal funds, and perform agreed-upon procedures for the GANN Limit report. The City had been under contract with its last auditors, Eide Bailly, LLP for the last three (3) years, which expired on June 30, 2025.

The Government Finance Officers Association (GFOA) recommends that at the end of the term of each audit contract, governmental entities should undertake a full-scale competitive process for the selection of independent auditors, to best ensure auditor independence. The GFOA also recommends that governmental entities enter into multi-year agreements of at least five years in duration when obtaining the services of independent auditors to allow for greater continuity and help to minimize the potential for disruption in connection with the independent audit.

On May 30, 2025, the Finance Department issued an RFP for three fiscal years beginning with fiscal year 2024-25, and optionally for two additional years. The RFP was completed using the City’s OpenGov procurement software and posted on the City’s website, as well as posting the notice on the California Society of Municipal Finance Officers (CSMFO)’s website inviting all firms to respond. Staff reviewed the qualifications of seven (7) firms that submitted proposals and invited four firms to an oral interview with Finance Department Staff. References were checked for the top two finalists. The top two finalists subsequently, interviewed with the Finance Director. Based on this review, staff recommend that Council approve the attached Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 2, Packet Page 33 №11/25
resolution authorizing an agreement with the accounting firm, CliftonLarsonAllen Wealth Advisors, LLP, to perform year-end audits of the City’s financial records at a cost not-to-exceed $90,930 in year one, $94,110 in year two, and $97,410 in year three. CliftonLarsonAllen Wealth Advisors, LLP demonstrated that they have experience in auditing California cities and the depth of resources and expertise to be successful. It is also recommended that staff be authorized to renew the annual contract for two additional fiscal years upon continued satisfactory performance.

RTK/ss
Attachments: 1. Resolution

2. Request for Proposal Bid – Technical

3. Request for Proposal Bid - Cost
e: CliftonLarsonAllen Wealth Advisors, LLP, Daphnie Munoz, CPA Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 3, Packet Page 34 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24

AWARDING PROFESSIONALSERVICES CONTRACT FOR INDEPENDENT AUDIT

SERVICES TO CLIFTONLARSONALLEN WEALTH ADVISORS, LLP
WHEREAS, the Monterey City Charter, Section 6.2, requires that the City’s fiscal record be audited annually by an independent certified public accountant; WHEREAS, the last contract for audit services expired on June 30, 2025 and best practices recommend a rotation of auditors at least every five years to best ensure for audit independence;
WHEREAS, The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability; and WHEREAS, staff issued a request for proposals, reviewed qualifications of respondents, completed interviews and reference checks and determined that CliftonLarsonAllen Wealth Advisors, LLP, was the best qualified to perform audit services for the City;

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby authorizes the City Manager, or designee, to execute a contract for annual independent audit services to CliftonLarsonAllen Wealth Advisors, LLC, for a term of Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 4, Packet Page 35 three years with an option to extend for two additional years for a cost not to exceed $90,930 in year one, $94,110 in year two, and $97,410 in year three.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 5, Packet Page 36 ©2025 CliftonLarsonAllen LLP

1. Title Page
Proposal to provide professional audit services to:

City of Monterey, California
Prepared by:

Request for Proposal Subject Request for Proposal – Annual Independent Audit Services Firm Name CLA (CliftonLarsonAllen LLP)
Name, Address, Telephone
Number of Contact Person
Daphnie Munoz, CPA, Principal
2875 Michelle Drive, Suite 300, Irvine, CA 92606
Direct 714-795-5474
Date of Proposal June 20, 2025
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

Technical Proposal
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 6, Packet Page 37 ©2025 CliftonLarsonAllen LLP | iv
ii. Table of Contents
iii. Transmittal Letter............................................................................................................ iv Understanding of work to be done and commitment to perform within time period ..............iv Why CLA believes to be best qualified to perform the engagement .........................................iv Statement proposal is firm and irrevocable offer for ninety (90) days......................................iv iv. Detailed Proposal.............................................................................................................. 5

1. General requirements............................................................................................................. 5

2. Independence ......................................................................................................................... 5

3. License to practice in the state of California .......................................................................... 5

4. Firm qualifications and experience......................................................................................... 6

5. Partner, supervisory and staff qualifications and experience .............................................. 14

6. Subcontracting ...................................................................................................................... 18

7. Prior engagements with the City of Monterey ..................................................................... 18

8. Similar engagements with other government entities......................................................... 18

9. Specific audit approach......................................................................................................... 20

10. Identification of anticipated potential audit problems...................................................... 35

11. Report format ..................................................................................................................... 35 Appendix............................................................................................................................. 36 A. Your service team biographies............................................................................................. 36 B. Peer review report................................................................................................................ 52 C. Exceptions to the form of agreement................................................................................... 54 D. Sample format reports ......................................................................................................... 56 ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 7, Packet Page 38 iii. Transmittal Letter
(RFP Section IV. Proposal Requirements, A. General Requirements, 2.a.iii) June 20, 2025
Finance Department
City of Monterey, California
580 Pacific Street
Monterey, CA 93940
Dear Finance Department:

Thank you for inviting us to propose. We look forward to the opportunity to provide services to City of Monterey, California (the City).

Understanding of work to be done and commitment to perform within time period
We have read the Request for Proposal (RFP) and understand the scope of the work to be performed as detailed in the RFP under “II. Nature of Services Required.” Should CLA be selected to serve this engagement, we will perform these services within the time period specified in the RFP and as finalized in the planning stages of the engagement.

Why CLA believes to be best qualified to perform the engagement We are confident that our extensive experience serving similar governmental entities, bolstered by our clientoriented philosophy and depth of resources, will make CLA a top qualified candidate to fulfill the scope of your engagement. The following differentiators are offered for the City’s consideration:
• Industry-specialized insight and resources – As one of the nation’s leading professional services firms, and one of the largest firms who specialize in regulated industries, CLA has the experience and resources to assist the City with their audit needs. In addition to your experienced local engagement team, the City will have access to one of the country’s largest and most knowledgeable pools of regulated industry resources. • National firm, local presence – CLA is a leading accounting firm employing some of the most talented and knowledgeable professionals in our industry. With more than 130 locations throughout the United States, including 14 offices in California, we make it our mission to have local offices that serve our clients efficiently. The City's engagement will be led by firm-wide state and local government industry-specialized professionals with support from the CLA Salinas, California office located less than 20 miles from the City. • OMB Uniform Guidance (UG) experience – CLA performs single audits for hundreds of organizations annually, ranking top in the nation for the number of single audits performed by any CPA firm. The single audit requires a specific set of skills to properly perform the procedures. As such, we have developed a group of professionals who specialize in providing single audit services.

CliftonLarsonAllen LLP
CLAconnect.com
Via electronic submission only
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 8, Packet Page 39 • Strong methodology and responsive timeline – In forming our overall audit approach, we have carefully reviewed the RFP and other information made available and considered our experience performing similar work for other municipalities. Our local government clients are included amongst the more than 4,200 governmental organizations we serve nationally. Our staff understands your complexities not just from a compliance standpoint, but also from an operational point of view. The work plan also minimizes the disruption of your staff and operations and provides a blueprint for timely delivery of your required reports. • Communication and proactive leadership – The City will benefit from a high level of hands-on service from our team’s senior professionals. We can provide this level of service because, unlike other national firms, our principal-to-staff ratio is similar to smaller firms – allowing our senior level professionals to be involved and immediately available throughout the entire engagement process. Our approach helps members of the engagement team stay abreast of key issues at the City and take an active role in addressing them. • A focus on providing consistent, dependable service – We differ from other national firms in that our corporate practice focuses on the needs of non-SEC clients, thus allowing us to avoid the workload compression typically experienced by firms that must meet public companies’ SEC filing deadlines. CLA is organized into industry teams, affording our clients with specialized industry-specific knowledge supplemented by valuable local service and insight. Therefore, the City will enjoy the service of members of our state and local government services team who understand the issues and environment critical to governmental entities.
• Fresh perspective – By engaging CLA, the City will benefit from a fresh look at its business operations, information systems, and financial risk management policies and procedures. You will be served by an engagement team with enthusiasm and a desire to meet and exceed expectations. We are confident that our industry experience will bring to the City new ideas, creative approaches, and fresh opportunities to meet the financial management and accountability challenges before the City.

Statement proposal is firm and irrevocable offer for ninety (90) days CLA’s proposal is a firm and irrevocable offer for ninety (90) days.

We want to serve you and we have the qualifications to deliver quality, timely work. Throughout this proposal, we take you on a journey outlining how we’ll work together and the value you can come to appreciate when we exceed expectations. For ease of evaluation, the structure of our proposal follows your RFP section titled, VI.

Proposal Requirements, A. General Requirements, 2. Content of Proposals.

Please contact me if I can provide additional information on our firm or our proposal.

Sincerely,
CliftonLarsonAllen LLP
Daphine Munoz, CPA
Principal
714-795-5474
[email protected]
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 9, Packet Page 40 ©2025 CliftonLarsonAllen LLP | 5
iv. Detailed Proposal
(RFP Section IV. Proposal Requirements, A. General Requirements, 2.a.iv) C. Technical Proposal

1. General requirements
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 1) CLA’s Technical Proposal addresses all the points outlined, items Nos. 2 through 11.

2. Independence
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 2) Firm’s independence statements
CLA affirms that it is independent of the City as required by auditing standards generally accepted in the United States and the U.S. Government Accountability Office’s Government Auditing Standards. Our firm-wide quality control policies and procedures foster strict compliance with these professional standards. In addition, the individuals assigned to your audit are independent of the City. CLA affirms that it is independent of all the of component units of the City, as defined by those same standards.

Professional relationships
CLA has no known previous relationships involving the City.

Written notice
CLA will give the City written notice of any professional relationships entered into during the period of this agreement.

3. License to practice in the state of California
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 3) CLA affirms that it is a limited liability partnership and is duly licensed to practice public accountancy in the state of California. In addition, all assigned key professional staff are properly licensed to practice as certified public accountants in California. A copy of our state license is provided below:

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 10, Packet Page 41 ©2025 CliftonLarsonAllen LLP | 6

4. Firm qualifications and experience
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 4) Size of the firm and governmental audit staff
Create opportunities
CLA exists to create opportunities for our clients, our people, and our communities through industry-focused wealth advisory, digital, audit, tax, consulting, and outsourcing services. Our broad professional services allow us to serve clients more completely — from startup to succession and beyond.

Our professionals are immersed in the industries they serve and have specialized knowledge of their operating and regulatory environments. With nearly 9,000 people in more than 130 U.S. locations and a global vision, we promise to know you and help you.

It takes balanceTM
With CLA by your side, you can find everything you need in one firm. Professionally or personally, big or small, we can help you discover opportunities and bring balance to get you where you want to go. CLA has been recertified as a Great Place to WorkTM in January 2025.

With more than 600 professionals dedicated to our state and local government practice, CLA has one of the largest governmental audit and consulting practices in the country and brings extensive experience providing a variety of such services to state and local government entities. Our state and local government team serves more than 4,200 governmental engagements nationwide, including numerous cities, counties, municipalities, states and state agencies, and school boards. In addition, we perform single audits for hundreds of organizations annually (1,681 according to the most recent Federal Audit Clearinghouse data), ranking top in the nation for the number of single audits performed by any CPA firm.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 11, Packet Page 42 ©2025 CliftonLarsonAllen LLP | 7
Location of office from which work is to be performed
Our firm matches the necessary skill set to an engagement before considering the geographic location of the staff. Assigning team members who specialize in working with similar clients can provide the City higher-quality services and allows us to complete the engagement in a more efficient and effective manner with little interruption to your staff.

The City will be served by an industry-specialized engagement team located in our Irvine, California office with support from our Salinas, California offices.

CLA Irvine
2875 Michelle Drive
Suite 300
Irvine, CA 92606
CLA Salinas
1188 Padre Drive
Suite 101
Salinas, CA 93901
Number and nature of professional staff to be employed on this engagement The table below provides a breakdown by staff level and denotes full- or part-time status of the engagement team that will serve the City. This team has extensive experience working with clients similar to the City.

Level of Staff Full-Time Staff Part-Time Staff
Principal/Signing Director 2 -
Director/Manager 1 -
Senior 1 -
Associate 1-2 -
Total 5-6 -
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 12, Packet Page 43 ©2025 CliftonLarsonAllen LLP | 8
Most recent external quality control procedures and peer review report In the most recent peer review report, dated November 2022, we received a rating of pass, which is the most positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our commitment to technical excellence and quality service. The full report is provided in Appendix B. This quality control review included a review of specific government engagements.

In addition to an external peer review, we have implemented an intensive internal quality control system to provide reasonable assurance that the firm and our personnel comply with professional standards and applicable legal and regulatory requirements. Our quality control system includes the following:
• A quality control document that dictates the quality control policies of our firm. In many cases, these policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and demonstrates a culture of quality that is pervasive throughout the firm’s operations. To monitor our adherence to our policies and procedures, and to foster quality and accuracy in our services, internal inspections are performed annually.
• Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning, fieldwork, and post-fieldwork review. In addition, an appropriately experienced professional performs a riskbased second review of the engagement prior to issuance of the reports. • Hiring decisions and professional development programs designed so personnel possess the competence, capabilities, and commitment to ethical principles, including independence, integrity, and objectivity, to perform our services with due professional care.
• An annual internal inspection program to monitor compliance with CLA’s quality control policies.

Workpapers from a representative sample of engagements are reviewed and improvements to our practices and processes are made, if necessary, based on the results of the internal inspection. • Strict adherence to the AICPA’s rules of professional conduct, which specifically require maintaining the confidentiality of client records and information. Privacy and trust are implicit in the accounting profession, and CLA strives to act in a way that will honor the public trust. • A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby confirming we are in compliance with the standards set forth in the Uniform Guidance.

Federal or state desk or field reviews
From time to time, CLA will be subject to federal and state desk reviews by oversight agencies. In addition, our government audits are subject to review by each agency’s Office of Inspector General, as well as the U.S.

Government Accountability Office. In all cases, we cooperate in providing the information required for the reviews and will timely resolve all findings identified in those reviews.

Professional ethics and regulatory issues or complaints against team members From time to time, individuals in the firm are parties to an inquiry from a regulatory or ethics body. In all cases the individual, with the firm's backing, shall cooperate in providing the information required to respond appropriately to the inquiry.

The firm and professionals within the firm presently do not have any regulatory or ethics inquiries outside the normal course of our practice.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 13, Packet Page 44 ©2025 CliftonLarsonAllen LLP | 9
CLA’s experience
State and local government experience
You can benefit from a close personal connection with a team of professionals devoted to governments. Our goal is to become familiar with all aspects of your operations — not just the information needed for the yearend audit — so that we can offer proactive approaches in the areas that matter most to you:
• Finding new ways to operate more effectively and efficiently • Responding to regulatory pressures and complexities
• Maintaining quality services in the face of changing budgetary priorities • Providing transparent, accurate, and meaningful financial information to stakeholders, decision-makers, and your constituents
We understand the legislative changes, funding challenges, compliance responsibilities, and risk management duties that impact you. Our experienced government services team can help you navigate the challenges of today, all while seamlessly strategizing for the future.

California government experience
CLA is a leading provider of government audit and consulting services in California. We serve more than 130 California municipalities, special purpose governments, and school districts, including more than 20 California counties. As such, we understand the complexities within California governments, grant funding, and the specific federal and state compliance requirements of that funding. Inherently, with the size of CLA’s government practice, we are continually consulting other governments and professionals to stay current on constant changes and local issues that may affect the City.

Due to the volume of clients served by CLA, we have provided a sampling of our California municipality clients in the table, on the following page.

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Sampling of California Municipality Clients Served by CLA • City of Blythe
• City of Burbank
• City of Camarillo
• City of Cerritos
• City of Chico
• City of Colton*
• City of Covina
• City of Del Mar*
• City of El Segundo
• City of Escondido
• City of Fillmore
• City of Glendale
• City of Hesperia
• City of Irvine
• City of La Cañada Flintridge
• City of La Habra
• City of Lake Forest
• City of Lancaster
• City of Norco
• City of Oakdale
• City of Pico Rivera
• City of Placentia
• City of Porteville
• City of Redondo Beach
• City of Riverside
• City of Rancho Palos Verdes
• City of San Buenaventura
• City of Santa Ana
• City of Santa Barbara
• City of Santa Maria
• City of Santa Fe Springs
• City of South Pasadena
• City of Temple City
• City of Victorville
• City of Westminster
Support at every turn
With dedicated services specific to state and local governments, you have access to guidance on all aspects of your operations. • Audit, review, and compilation of financial statements • Compliance audits (HUD, OMB Single Audits)
• Cybersecurity
• Enterprise risk management
• Forensic accounting, auditing, and fraud investigation • Fraud risk management
• Grant compliance
• Implementation assistance for complex Governmental
Accounting Standards Board (GASB) statements
• Internal audit
• Outsourced business operations
• Performance auditing
• Purchase card (p-card) monitoring and analytics
• Risk assessments
• Strategic, financial, and operational consulting
• Telecom management services
• Business opportunity assessments
• System optimization and selection
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Single audit experience
CLA performs the largest number of single audits in the United States We audited nearly $229 billion dollars in federal funds expended in 2023. The chart below illustrates CLA’s experience in serving organizations that receive federal funds and demonstrates our firm’s dedication to serving the government and nonprofit industry.

It is more important than ever to find qualified auditors who have significant experience with federal grants specific to the City and can enhance the quality of the City’s single audit. Therefore, the single audit will be performed by a team of individuals who are managed by personnel who specialize in single audits in accordance with OMB’s Uniform Guidance and who can offer both knowledge and quality for the City. As part of our quality control process, the single audit will be reviewed by a firm Designated Single Audit Reviewer.

Single Audit Resource Center (SARC) award
CLA received the Single Audit Resource Center (SARC) Award for Excellence in Knowledge, Value, and Overall Client Satisfaction. SARC's award recognizes audit firms that provide an outstanding service to their clients based on feedback received from an independent survey.

The survey queried more than 10,000 nonprofit and government entities about the knowledge of their auditors, the value of their service, and overall satisfaction with their 2024 fiscal year-end audit. The SARC award demonstrates CLA’s dedication to serving the government and nonprofit industry and maintaining the most stringent regulatory requirements in those sectors.

You'll need an audit firm experienced in performing single audits and a familiarity with the specific programs in which you are involved and will benefit from CLA’s experience in this area.

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Certificate of achievement assistance
The Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting is awarded to state and local governments that go beyond the minimum requirements of generally accepted accounting principles. It is awarded to state and local governments who produce an annual comprehensive financial report that evidences the spirit of transparency and full disclosure. Members of the GFOA staff and the GFOA Special Review Committee (SRC) review reports submitted to the ACFR program.

CLA provides audit services to many entities that received the GFOA Certificate of Excellence in Financial Report.

All of the procedures noted in our audit approach and our technical review of the ACFR are done to help the City prepare and publish the top product possible. Our managers and principals who review the ACFR have a strong understanding of the GFOA requirement for the certificate. We understand that this is a prestigious award for the City and a great accomplishment for the Finance and Accounting departments.

We will review the GFOA comment letter for each ACFR and provide the City advice regarding the response to the GFOA reviewer’s comments. Our procedures with respect to the ACFR will be the review of the comments from GFOA on the prior year submission to determine they were adequately addressed, completion of the ACFR checklist, and review of the transmittal letter and statistical data to determine that information presented is reasonable and agrees with the information in the financial statements and management’s discussion and analysis (MD&A), where applicable.

We understand the interrelationships of the many and varied components of a governmental entity’s financial statements, allowing us to quickly determine errors or problems with the financial statements. Our depth of knowledge and experience also allows us to assist the City with the preparation of the ACFR and improvement of the City’s financial statements.

Our involvement with clients in the GFOA Certificate program helps to determine that we are on the leading edge of reporting trends and techniques. We have been engaged by various entities to review their statements for compliance with program requirements. We have aided clients in the early implementation of professional pronouncements and regularly provide our clients with updates on new pronouncements which will affect them and will do the same for the City.

The table below identifies the professionals who are currently members of the GFOA Special Review Committee together with their length of service with the Committee.

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Name Title Location Years Served
Robert J. Callanan, CPA Principal Irvine, CA 15+
Julie S. Fowler, CPA Signing Director Sebring, FL 10+
Richard Gonzalez, CPA Principal Roseville, CA 10+
Christopher Kessler, CPA Principal Fort Myers, FL 4+
Christopher G. Knopik, CPA, CFE Principal Minneapolis, MN 10+ Jacob S. Lenell, CPA Principal Milwaukee, WI 12+
Alexandra Mitchell, CPA, MAcc Manager Naples, FL 1+
Daphnie Munoz, CPA Principal Irvine, CA 13+
Remi Omisore, CPA Principal Baltimore, MD 11+
Jeffrey Peek, CPA Principal Nashville, TN 8+
Lance Schmidt, CPA, CFE, CIA Principal Lakeland, FL 2+
Shannon D. Small, CPA, MPA Signing Director Wauwatosa, WI 5+ Miranda Wendlandt, CPA, CFE Principal Alexandria, MN 5+ ATTACHMENT 2
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5. Partner, supervisory and staff qualifications and experience (RFP Section IV. Proposal Requirements, C. Technical Proposal, 5) Identification of assigned staff
The true value in working with our team is developing a personal and professional relationship with leaders who understand your industry, challenges, and opportunities — with the full support of an entire CLA family behind them.

Meet your service team below.

Engagement Team
Member Role
License to
Practice in
California
Years’
Experience
Daphnie Munoz, CPA Engagement principal ✓ 27
Richard (Rich) Gonzalez, CPA Technical resource principal ✓ 25+ Robert (Rob) Perl, CPA Engagement director ✓ 16+
Antonio Moran, CPA Senior ✓ 6+
Additional staff – We will assign additional staff to your engagement based on your needs and their experience providing services to similar clients.

Detailed biographies of the assigned staff including governmental audit experience, relevant continuing professional education for the past three years and membership in professional organizations can be found in Appendix A.

Roles and responsibilities
Engagement principal – Daphnie Munoz will have overall engagement responsibility including planning the engagement, developing the audit approach, supervising staff, and maintaining client contact throughout the engagement and throughout the year. Daphnie is responsible for total client satisfaction through the deployment of all required resources and continuous communication with management and the engagement team.

Technical resource principal – Rich Gonzalez will be the technical resource for the audit team as well as the City personnel. Rich’s many years of serving governmental entities will be an invaluable resource.

Engagement director – Rob Perl will act as the lead director on the engagement. In this role, Rob will assist the engagement principal with planning the engagement and performing complex audit areas. He will perform a technical review of all work performed and is responsible for the review of the annual comprehensive financial report and all related reports.

Senior – Antonio Moran will be responsible for the day-to-day activities for this engagement, including the supervision of all staff assigned.

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Additional staff – We will assign additional staff to your engagement based on your needs and their experience providing services to similar clients.

Collaborative: Support from a responsive local team complemented by national resources. We consider the whole of your organization, bringing innovative teams to the table.

Deep industry connections
CLA actively supports industry education as a thought leader and industry speaker. We focus on supporting the educational needs of the industry through nationally sponsored trade events. Our team of professionals is sought after, both as educators and as experienced speakers who are invited to speak and teach at major professional events by leading trade associations, including those shown here.

We are also actively involved in and/or are members of the following professional organizations:
• California Society of Certified Public Accountants (CalCPA) • California Society of Municipal Finance Officers (CSMFO) • American Institute of Certified Public Accountants (AICPA) • AICPA’s State and Local Government Expert Panel
• AICPA’s Government Audit Quality Center (GAQC)
• Government Finance Officers Association (GFOA)
• Special Review Committee for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting (Certificate) Program
• Association of Government Accountants
Our involvement in these professional organizations, combined with various technical services we subscribe to, allows us to be at the forefront of change in the constantly changing government environment. We take our responsibility for staying current with new accounting pronouncements, auditing standards, other professional standards and laws and regulations seriously.

Insight to strengthen your organization
When you’re ready to go beyond the numbers to find value-added strategies, we offer resources to help you respond to challenges and opportunities including:
• National webinars — Access complimentary professional development opportunities for your team. • Articles and white papers — Stay current on industry information as issues arise.

Curious: We care, we listen, we get to know you.

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Continuing education program
With one of the largest regulated industry groups in the nation, CLA is committed to providing regular and robust training to our government practitioners. We hold regular governmental accounting and single audit updates throughout the year. All of our staff assigned to the City audit will have the required Yellow Book (Government Auditing Standards) CPE.

To maintain and expand our assurance knowledge, we consistently provide continuing education for our professionals. Each member of our professional team, including principals, attends accredited continuing professional education (CPE) annually. Individuals are required to familiarize themselves with all current changes in standards and procedures. Updated information on recent changes in technical standards and regulations, as well as the firm’s professional policies and procedures, is distributed to our team members on a regular basis.

CLA professionals are specifically trained on topics specific to the client industry they work in.

CLA’s firm-wide training programs include:
• Learn — Designed for new CLA associates, this learning is typically attended in the first year of employment.

This internally developed and presented training focuses on preparing new hires and interns to understand and perform their role in the audit process. Providing a combination of an introduction to CLA strategy, business risk and independence with audit theory using hands-on exercises and simulations to introduce our audit methodology, tools, and software. Specific audit areas covered include audit planning, cash, fixed assets, accounts payable, prepaids, documentation, and materiality. • Experience — Designed for the CLA associate with about one year of experience, this learning is typically attended in the second year of employment. This training focuses on topics including analytics, sampling, internal controls, walkthroughs, analytical tools, and professional skepticism. • Achieve — Designed for the CLA associate with about two years of experience, this learning is typically attended in the third year of employment. This internally developed and presented training focuses on leadership and performance management of audit engagements utilizing CLA audit methodology from the perspective of the experienced in-charge. Topics covered include detailed review, risk assessment, analytical tools, and professional skepticism.
• Propel — Designed for the CLA associate with about three years of experience, this learning is typically attended in the fourth year of employment. This training focuses on risk assessment, effective use of tools and programs, auditing complex areas, and professional skepticism.

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Engagement team continuing professional education
Total CPE by Year
Professional 2025* 2024 2023
Daphnie Munoz, CPA 26.0 80.0 48.5
Richard (Rich) Gonzalez, CPA 44.0 74.0 64.0
Robert (Rob) Perl, CPA 15.0 41.5 38.0
Antonio Moran, CPA 0.0 33.5 46.0
*Total CPE as of June 2025
Quality of staff over term of agreement
We are committed to providing continuity throughout this engagement. It is our policy to maintain the same staff throughout an engagement, providing maximum efficiency and keeping the learning curve low. With a solid, steady engagement team, each year brings the additional benefits of trust and familiarity. We are also flexible in exploring alternative strategies to nonmandatory rotation policies.

In any business, however, turnover is inevitable. If and when it happens, we will provide summaries of suggested replacements and will discuss re-assignments prior to finalizing. We have a number of qualified staff members to provide the City with quality service over the term of the engagement.

CLA is committed to maintaining high staff retention rates, which we believe are a strong indicator of service quality. High retention rates also indicate that our staff members have the resources they need to perform their tasks and maintain a positive work/life balance.

Right to approve or reject replacements
Engagement principals, managers, other supervisory staff, and professionals may be changed if those personnel leave the firm, are promoted, or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City. In all instances, the City would retain the right to approve or reject replacements.

Consultants and firm specialists mentioned in the response to this request for proposal may be changed with express prior written permission of the City, which retains the right to approve or reject replacements.

Any other audit personnel may be changed at the discretion of the proposer, provided that replacements have substantially the same or better qualifications or experience.

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6. Subcontracting
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 6) While we are not a small or minority-owned business, we are committed to utilizing the services of such firms whenever possible. This includes using small and/or minority-owned businesses as subcontractors, as well as vendors. For this engagement, however, we do not foresee using any subcontractors.

CLA strives to fill its professional positions with skilled and experienced accountants regardless of race or gender.

7. Prior engagements with the City of Monterey
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 7) CLA has no prior engagements with the City.

8. Similar engagements with other government entities
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 8) Our clients say it best. And their independent, authentic perspective is invaluable in learning about the experience you’ll have when working with us. We encourage you to connect with our clients to hear it firsthand.

The tables below list the five most significant engagements that CLA has performed within the last five years that are similar to the engagement described in this RFP ranked by total hours.

City of Glendale, California
Client Contact Shu-Jun Li, Director of Finance
Phone Number | Email 818-551-3048 | [email protected]
Address 141 North Glendale Ave., Suite 346, Glendale, CA 91206 Years of Service 2020 – present
Services Provided City audit, electric and water utility funds audit, successor agency audit, single audit, NTD AUP, REAC AUP
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City of Santa Ana, California
Client Contact Sara Ro, Accounting Manager
Phone Number | Email 714-647-5437 | [email protected]
Address 20 Civic Center Plaza, Santa Ana, CA 92701
Years of Service 2020 – present
Services Provided Financial statement audit (ACFR), single audit, AQMD, State Controller’s report, Investment AUP, Measure X AUP,
City of Santa Barbara, California
Client Contact Keith DeMartini, Finance Director
Phone Number | Email 805-564-5336 | [email protected] Address 735 Anacapa Street, Santa Barbara, CA 93101
Years of Service 2019 – present
Services Provided City audit, single audit, PFC audit (airport), custodial fund audit,

GANN, SCO
City of Irvine, California
Client Contact Josh Brooks, Deputy Director of Administrative Services Phone Number | Email 949-724-6264 | [email protected] Address PO Box 19575, Irvine, CA 92623
Years of Service 2017 – present
Services Provided City audit, single audit, pension plan audits, AQMD audit, fund audits,

SCO, GANN
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City of Camarillo, California
Client Contact Kristen Madary, Finance Director
Phone Number | Email 805-388-5328 | [email protected] Address 601 Carmen Drive, Camarillo, CA 93010
Years of Service 2022 – present
Services Provided City audit, single audit, GANN, SCO
Transparent: We place honesty and integrity at the center of all communication.

We welcome you to start an open and candid conversation with those who know us best.

9. Specific audit approach
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 9) Understanding of the work to be performed
We have read the Request for Proposal (RFP) and understand the scope of the work to be performed as detailed in the RFP under “II. Nature of Services Required, C. Scope of Work to be Performed.” Should CLA be selected to serve this engagement, we will perform these services within the time period specified in the RFP and as finalized in the planning stages of the engagement.

To meet the requirements of the RFP, the audit will be performed in accordance with auditing standards generally accepted in the United States of America, as set forth by the American Institute of Certified Public Accountants; the standards set forth for financial audits in Government Auditing Standards issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and any other applicable federal, state, and local laws or regulations.

Audit methodology
Many organizations view an audit as a requirement that doesn’t contribute to their overall operations or value.

At CLA, we believe an audit should be an annual check-up that gives you insight into your organization, allowing you to take advantage of opportunities and improve your operations.

Our industry experience makes it easier — CLA auditors are industry aligned, making our audit process fast and smooth. We focus on operational efficiency and leverage our industry experience to bring you meaningful insights that can positively impact your organization. A dedicated team of professionals will listen to your goals and concerns, then work with you to navigate industry pressures, changing markets, and complex standards, all with a common goal to drive your organization toward success.

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Your time has value — Your day is filled with competing priorities and constant distractions. We elevate your experience by using a variety of communication tools, such as a web-based document portal, video conferencing, email, and phone calls, to keep everyone informed and on track. We focus on operational efficiency and leverage our industry experience to bring you meaningful insights that can positively impact your organization.

No surprises — We will provide the City with a no-surprises approach to our services, based on frequent and timely communication and clarity around roles and expectations. If issues arise during your audit, we engage the right people in a frank discussion to resolve them.

Significant involvement of principals, signing directors, directors, and managers — Our principals, signing directors, directors, and managers are directly involved in your engagement and can proactively identify significant issues and resolve them with management. Your time is best spent with key decision makers so you can ask clarifying questions, discuss organizational strategies, and navigate sensitive reporting issues.

We tailor the audit just for you — While our audit programs provide typical approaches for given audit areas, CLA designs a client-specific, risk-based audit approach for each client. We use custom, industry-tailored programs, procedures, and tools designed specifically to focus on applicable risks.

You’ll learn about what we’re doing and what we’ve found in plain, everyday language — By working closely with your staff, CLA continuously learns about your organization. This involvement enables us to offer recommendations for improvements in your systems and procedures that are more comprehensive and better understood, enhancing your ability to implement them.

When performing an audit, we are sensitive and understanding of the fact that we report to those charged with governance. We maintain objectivity and independence to be able to issue our audit opinions. We will act within our philosophy of total client service, maintain the professional relationship refined with management, and fulfill our responsibilities with the utmost professionalism.

Year-long support — We encourage your staff to take advantage of our accessibility throughout the year for questions that may arise. Our people can provide proactive advice on new accounting or GAAP pronouncements and their potential impact; help with immediate problems, including answers to brief routine questions; and share insights and leading practices to assist in planning for your future success.

Easing the transition
We recognize that a move to a new firm presents an opportunity as well as a challenge. Over our 60-year history, we have transitioned many clients and have a collegial and professional relationship with many firms.

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The CLA Seamless Assurance Advantage (SAA)
The CLA Seamless Assurance Advantage (SAA) is an innovative approach to auditing that utilizes leading technologies, analytics, and audit methods to help solve client problems and create a seamless experience.

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Proposed segmentation of the engagement
Financial statement audit approach
Phase 1: Planning and strategy
The main objective of the planning phase is to identify significant areas and design efficient audit procedures. • Conduct an entrance meeting. Daphnie Munoz and staff will meet with the City personnel to agree on an outline of responsibilities and time frames
○ Establish audit approach and timing schedule
○ Determine assistance to be provided by the City personnel ○ Discuss application of generally accepted accounting principles ○ Address initial audit concerns
○ Establish report parameters and timetables
○ Progress reporting process
○ Establish principal contacts
• Gain an understanding of your operations, including any changes in organization, management style, and internal and external factors influencing the operating environment • Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws and regulations, and relevant controls over operations
• Determine the likelihood of effective Information Systems (IS) - related controls • Perform a preliminary overall risk assessment
• Confirm protocol for meeting with and requesting information from relevant staff • Establish a timetable for the fieldwork phase of the audit • Determine a protocol for using TeamMate Analytics and Expert Analyzer (TeamMate), our data extraction and analysis software, to facilitate timely receipt and analysis of reports from management • Compile an initial comprehensive list of items to be prepared by the City, and establish deadlines We will document our planning through:
• Entity profile — This profile will help us understand the City's activities, organizational structure, services, management, key employees, and regulatory requirements. • Preliminary analytical procedures — These procedures will assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter. They will focus on enhancing our understanding of the financial results and will be used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit.
• General risk analysis — This will contain our overall audit plan, including materiality calculations, fraud risk assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a listing of significant provisions of laws and regulations, and other key planning considerations.

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• Account risk analysis — This document will contain the audit plan for the financial statements, including risk assessment and the extent and nature of testing by assertion. • Prepared by client listing — This document will contain a listing of schedules and reports to be prepared by the City personnel with due dates for each item.
• Assurance Information Exchange (AIE) — CLA uses a secure web-based application to request and obtain documents. This application allows clients to view detailed information, including due dates for all items CLA is requesting. Clients can attach electronic files and add commentary directly on the application.

The audit engagement will be planned under the direction of the engagement leader and in-charge. We will clearly communicate any issues in a timely manner and will be in constant contact as to what we are finding and where we expect it will lead.

Using the information we have gathered and the risks identified, we will produce an audit program specifically tailored to the City that will detail the nature and types of tests to be performed. We view our programs as living documents, subject to change as conditions warrant.

Phase 2: Systems evaluation
We will gain an understanding of the internal control structure of the City for financial accounting and relevant operations. Next, we will identify control objectives for each type of control material to the financial statements, and then identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. Finally, we will determine the nature, timing, and extent of our control testing and perform tests of controls. This phase of the audit will include testing of certain key internal controls:
• Electronic data, including general and application controls reviews and various user controls • Financial reporting and compliance with laws and regulations We will test controls over certain key cycles, not only to gather evidence about the existence and effectiveness of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness of an account balance. Our use of multi-purpose tests allows us to provide a more efficient audit without sacrificing quality.

Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met:
• Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition, use, or disposition • Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements
We will finalize our audit programs during this phase. We will also provide an updated prepared by client listing based on our test results and anticipated substantive testing.

During the internal control phase, we will also perform a review of general and application information services/information technology (IS/IT) controls for applications significant to financial statements to conclude whether IS general controls are properly designed and operating effectively.

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Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will then assess the significant computer-related controls.

For IS/IT-related controls we deem to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support findings and will provide recommendations for improvement. For IS controls we deem to be effectively designed, we will perform testing to determine if they are operating as intended through a combination of procedures, including observation, inquiry, inspection, and re-performance.

Phase 3: Testing and analysis
The extent of our substantive testing will be based on results of our internal control tests.

Audit sampling will be used only in those situations where it is the most effective method of testing.

After identifying individually significant or unusual items, we will decide the audit approach for the remaining balance of items by considering tolerable error and audit risk. This may include (1) testing a sample of the remaining balance; (2) lowering the previously determined threshold for individually significant items to increase the percent of coverage of the account balance; or (3) applying analytical procedures to the remaining balance.

When we elect to sample balances, we will use TeamMate to efficiently control and select our samples.

Our workpapers during this phase will clearly document our work as outlined in our audit programs. We will provide the City with status reports and be in constant communication with the City to determine that all identified issues are resolved in a timely manner. We will hold a final exit conference with the City to summarize the results of our fieldwork and review significant findings.

Phase 4: Reporting and follow up
Reports to management will include oral and/or written reports regarding:
• Independent Auditors' Report
• Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
• Independent Auditors' Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
• Management Letter
• Written Communication to Those Charged with Governance Once the final reviews of working papers and financial statements are completed, our opinion, the financial statements, and management letter will be issued.

The City will be given a draft of any comments we propose to include in the management letter. Items not considered major may be discussed verbally with management instead of in the management letter. Our management letter will include items noted during our analysis of your operations.

We will make a formal presentation of the audit results to those charged with governance, if requested.

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Elevating with artificial intelligence (AI)
CLA is committed to harnessing cutting-edge technology to enhance client service. We may use AI to enhance your audit engagements. This can include:
• Research and document drafting: CLA professionals may use Microsoft Copilot to ask questions and make requests of generative AI with secure access to CLA-specific resources. • Document summarization: We may use CLA Family Assistant to help extract and summarize information relevant to our audits, including minutes review, leases, debt agreements, and other document types. • Invoice extraction: CLA may use AI tools to extract relevant fields from invoices and other documents.

When AI is used, the work is supervised by CLA professionals who verify results before making final decisions.

Client information remains confidential when working with these tools.

Single audit approach
OMB’s Uniform Guidance (2 CFR Part 200) affects how federal grants are managed and audited and impacts every organization that receives federal assistance. Grant compliance can be a confusing topic and many of our clients rely on their federal funding as a major revenue source, so it is important that they understand what these changes mean to their organization. As a leader in the industry, CLA professionals are available to provide guidance and tools tailored to the City’s needs, and to assist in compliance with these rules.

The AICPA clarified auditing standard, AU-C 935 “Compliance Audits,” requires risk-based concepts to be used in all compliance audits including those performed in accordance with 2 CFR Part 200. Our risk-based approach incorporates this guidance.

We will conduct our single audit in three primary phases, as shown, below:

Phase 1: Risk assessment and planning
The risk assessment and planning phase will encompass the overall planning stage of the single audit engagement. During this phase, we will work closely with the City’s management to determine that programs and all clusters of programs are properly identified and risk-rated for determination of the major programs for testing. We will also review the forms and programs utilized in the prior year to determine the extent of any changes which are required.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 31, Packet Page 62 ©2025 CliftonLarsonAllen LLP | 27
We will accomplish this by following the methodology below:
• Determine the threshold to distinguish between Type A and B programs, including the effect of any loans and loan programs
• Utilizing the preliminary Schedule of Expenditure of Federal Awards, we will identify the Type A and significant Type B programs (25% of Type A threshold) in accordance with the Uniform Guidance • Identify the programs tested and the findings reported for the past two fiscal years. Determine and document the program risk based on the past two single audits • Prepare and distribute Type B program questionnaires to determine risk associated with Type B programs • Determine the major programs to be tested for the current fiscal year based on the previous steps • Based on our determination of the major programs, we will obtain the current year compliance supplement to aid in the determination of direct and material compliance requirements, and customize the audit program accordingly
• Determine the preferred methods of communication during the audit Phase 2: Major program testing
We will determine the programs to be audited based on the risk assessment performed in the planning phase.

We will perform the audit of the programs in accordance with UG.

To accomplish this, we will perform the following:
• Schedule an introductory meeting and notify the City’s management of the major programs for the current fiscal year
• Plan and execute the testing of the expenditures reported on the Schedule of Expenditures of Federal Awards
• Perform tests of compliance and internal controls over compliance for each major program identified • Schedule periodic progress meetings to determine that schedules are adhered to and identify issues as they arise
• Conduct entrance and exit conference meetings with each grant manager Phase 3: Final assessment and reporting
We will re-perform the steps noted in the preliminary assessment and planning stage once the final Schedule of Expenditures of Federal Awards is received to determine if additional major programs were identified.

Based on the final determination of the programs we will perform the following:
• Identify Type A and significant Type B programs which were not previously identified • Re-assess the risk and determine if we are required to audit additional programs • Perform compliance testing at the entity wide level related to procurement and cash management requirements
• Perform testing to validate the status of prior year findings for those programs not selected for audit • Prepare the Schedule of Findings and Questioned Costs • Conduct exit conference with the City’s management to review drafts of required reports:
○ Independent Auditors’ Report on Internal Control over financial reporting and on compliance and other matters based on an audit of Financial Statements Performed in accordance with Government Auditing Standards
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 32, Packet Page 63 ©2025 CliftonLarsonAllen LLP | 28
○ Independent Auditor’s Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Throughout the single audit, we will maintain communication through periodic progress meetings with those designated by the City. These meetings will be on a set schedule, but as frequently as the City determines.

During these meetings, we will discuss progress impediments and findings as they arise.

Engagement timeline
Count on clear communication and regular updates.

Proposed work plan
We have designed a plan that meets your needs and key deadlines.

Date Completed
By Task
Immediately after
contract approval
Pre-interim work
Review prior year workpapers
Request initial planning documents from the City
Immediately after
contract approval Initial planning meeting
June 30 Interim audit work
October 15 Field audit work
October 30 Management review and exit conference
See below Draft and final reports
Ongoing Planning and update meetings
We'll review this timeline with you in our planning meeting and adjust as needed. The fiscal year 2025 audit dates will be changed due to the RFP timing. Unless unforeseen circumstances arise, we commit to this timeline for all other years under the engagement.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 33, Packet Page 64 ©2025 CliftonLarsonAllen LLP | 29
Reports to be issued
Report Draft Due
Date
Final Due
Date
Independent Auditor’s Report on Annual Comprehensive
Financial Report November 15 November 30
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards
November 15 November 30
Communication to Those In Charge of Governance November 15 November 30 Report on Compliance with Article XIIIB Appropriation Limit November 15 November 30 Independent Auditors' Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
February 15 March 15
Independent Auditor’s Report on Presidio Municipal Services Agency Financial Statements November 30 December 15
Independent Auditor’s Report on Joint Powers Financing
Authority Financial Statements November 30 December 15
Independent Auditor’s Report on Measure X November 30 December 15 Reliable: Look for us to respond in hours, not days. We strive to deliver service that exceeds your expectations.

Communication process
Effective communication is critical to a successful engagement. This includes weekly status meetings where observations, potential exceptions, and leading practices are discussed. To avoid surprises at the end of the engagement, we discuss and document our observations, clarify fact patterns, and confirm management’s understanding and agreement with our findings.

CLA adheres to all auditing standards related to reporting observations, recommendations, and findings. All significant deficiencies and material weaknesses will be reported to the audit committee/governance in writing.

Best practices, observations, and other matters will be reported to management in a management letter that can be used as a tool to track the implementation of our recommendations.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 34, Packet Page 65 ©2025 CliftonLarsonAllen LLP | 30
Report to those charged with governance — In addition to observations and recommendations, we will inform the audit committee of:
• Significant accounting policies
• Management judgments and accounting estimates
• Significant audit adjustments and passed adjustments, if any • Disagreements with management, if any
• Management consultation with other accountants, if any • Major issues discussed with management prior to retention • Difficulties encountered in performing the audit, if any We are sensitive and understanding of the fact that we report to those charged with governance, and our audit professionals maintain objectivity and independence in issuing audit opinions. If we identify significant fraud, illegal acts, or significant delays during the audit process, we will alert the audit committee timely.

Information related to overall fiscal health or other concerns of your organization observed during audit testing will be presented in the exit presentation and as part of the management letter. We will also help you create opportunities for improvement through recommendations and suggestions for strengthening your policies, accounting procedures, and processes.

CLA Intelligence Platform: Digital services and generative AI Let us help you harness cutting-edge technology to transform the way your teams work and uncover deeper business and financial insights.

Digital transformation is no longer optional, it’s a necessity. With CLA, you’ll find a comprehensive suite of capabilities spanning automation and integration, data analytics, software, and cybersecurity — offering you new opportunities to navigate and thrive in the digital age.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 35, Packet Page 66 ©2025 CliftonLarsonAllen LLP | 31
By leveraging digital product solutions and services, you can improve your business operations and achieve big goals, whether that’s streamlining processes, enhancing customer experiences, embracing generative artificial intelligence (AI), or driving innovation. We help you put digital solutions in place to:

Level of staff and number of hours to be assigned
Our project management methodology results in a client service plan that provides for regular, formal communication with the entire management team and allows us to be responsive to your needs. The schedule allows for input from your personnel to make certain the services are completed based on your requirements. The plan may also be amended during the year based on input from the internal auditor.

Please see the below chart for the level of staff and approximate number of hours to be assigned to each proposed phase:

Segmentation of Audit Hours, By Principals and Staff Level Service to be Provided Principal Director Senior Other
Staff Total
City of Monterey 40 65 100 110 315
Single Audit 2 6 14 10 32
GANN - 1 2 1 4
Presidio Municipal Services Agency 2 4 12 14 32
Joint Powers Financing Authority 2 4 12 14 32
Measure X 2 4 12 14 32
Total 48 84 152 163 447
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 36, Packet Page 67 ©2025 CliftonLarsonAllen LLP | 32
Segmentation of Audit Hours, By Phases of the Audit
Phase of the Audit Principal Director Senior Associate Total Planning and strategy 8 12 24 24 68
Systems evaluations 4 12 36 36 88
Testing and analysis 8 24 62 76 170
Reporting and follow up 28 36 30 27 121
Total 48 84 152 163 447
Sample size and statistical sampling and approach to be taken in drawing audit samples Sample size and statistical sampling
We follow the guidance of AU-C Section 530, Audit Sampling, which allows the use of a statistical or nonstatistical sampling approach. We use quality control material in all our audit engagements. These AU-C Section 530 – “Audit Sampling” forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing.

Sample sizes will vary depending on the nature of the testing (controls versus substantive) and the size of the population being sampled. Sampling techniques are utilized in compliance and internal control testing, as well as substantive testing of certain asset and liability account balances. Sample sizes used for internal control testing depend on a number of factors, namely the number of expected or actual control deviations, size of population, and level of control assurance anticipated. Sample sizes typically range from 22 to 77 for populations greater than 200.

To illustrate, if no internal control deviations are anticipated and the frequency of the population (i.e., the number of times the control is performed in a given year) is 100, then we will test 10 transactions in order to obtain moderate control assurance. If one internal control deviations is anticipated, and the frequency of the population is greater than 200, then we will test 77 transactions in order to obtain low control assurance. We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach.

Approach to be taken in drawing audit samples for purposes of tests of compliance We follow the guidance of AU-C Section 530, Audit Sampling, which allows the use of a statistical or nonstatistical sampling approach. These forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing.

Because our sample sizes are affected by many variables, a statement about sample sizes cannot be made in absolute terms. However, with regard to sample selection, we will generally utilize representative sampling for internal control and compliance tests, including those related to single audit compliance. Samples will also be used in conjunction with other tests of compliance.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 37, Packet Page 68 ©2025 CliftonLarsonAllen LLP | 33
In general terms, sample sizes for compliance and controls testing obtained via our guidance usually fall into categories of 25, 40, or 60 depending on circumstances. Where the population being tested is less than 250 items, we will select 10% to 20% of the population. We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach.

Type and extent of analytical procedures
Preliminary analytical procedures will assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter. These procedures will focus on enhancing our understanding of the financial results. These procedures are also used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit.

In performing our substantive testing, our audit efficiency initiative provides that we first think analytically. By doing this, we can better understand the specific account balance being tested and determine if the current balance or relationship with other account balances appears reasonable. We will also employ analytical testing on smaller and/or lower risk accounts and cycles when determined to be efficient and effective.

Approach to gain an understanding of the City’s internal control structure We understand changing audit firms would require a new set of auditors to develop an understanding of the City, operations, and system of internal control. We also strive to develop our understanding in the least intrusive manner possible, while still maintaining our professional responsibilities. We would utilize a combination of internal control forms and interviews with key accounting personnel to gain and document our understanding of the City. We will also use as a baseline any existing internal control processes, policies, organizational charts, etc. the City may have already documented. Walk through procedures are performed for certain controls to evaluate whether the control is effectively designed and determine it has been implemented.

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that those internal objectives, including effectiveness and efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations, will be met, if applicable.

Our audit approach is designed to evaluate and walk through certain internal controls in accordance with COSO concepts. Our procedures include a review of the entity’s control environment, risk assessment process, control activities, information and communications relevant to preparation of the financial statements, and monitoring activities of the system of internal control.

During the planning and risk assessment phases of our audit, we will develop our understanding of the City business operations and system of internal control for financial reporting through observation, discussion, and inquiries with management and appropriate personnel. During this phase of the audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and other systems of documentation that may be available.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 38, Packet Page 69 ©2025 CliftonLarsonAllen LLP | 34
Once we understand your operations and system of internal control for financial reporting, we will then identify control objectives for each significant class of transactions, account balances, or disclosures. The next step will be to identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing, and extent of our control procedures.

Approach to be taken in determining laws and regulations We will obtain an understanding of the laws and regulations that impact the City’s operations by reviewing applicable meeting minutes to identify any ordinances or resolutions that might have an impact to operations and reporting by the City, as well as interview key personnel and management of the City. The staff assigned to the engagement attend regular trainings and are well versed in relevant federal and state laws and regulations (e.g., Uniform Guidance) and proactively discuss any upcoming changes with our clients.

We will also review current operations, contracts, and IGA’s that may impact current operations.

Proposed methodology for applying SAS 114 requirements
SAS 114, titled "The Auditor’s Communication With Those Charged With Governance," outlines the auditor’s responsibility to communicate certain matters related to the audit to those charged with governance.

During the planning phase of the audit, we will conduct an entrance meeting with those charged with governance to discuss the following topics:
• Management’s responsibilities
• Auditor’s responsibilities
• Audit approach and timing schedule
• Audit areas of concern
• Fraud inquiries
Upon conclusion of our audit, we will issue a written communication to those charged with governance. This communication will address the following areas:
• Our responsibility under auditing standards generally accepted in the United States of America • Changes in significant accounting policies or their application • Unusual transactions
• Management judgments and accounting estimates
• Significant audit adjustments
• Other information in documents containing the audited financial statements • Disagreements with the City
• The City’s consultations with other accountants
• Major issues discussed with management prior to retention • Difficulties encountered in performing the audit
• Fraud or illegal acts
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 39, Packet Page 70 ©2025 CliftonLarsonAllen LLP | 35

10. Identification of anticipated potential audit problems (RFP Section IV. Proposal Requirements, C. Technical Proposal, 10) In situations where authoritative guidance on a particular transaction or accounting issue is unclear or subject to interpretation, our approach is to proactively meet with management to discuss the issue and reach a conclusion that is hopefully agreed upon by both parties. We do not have specific firm policies that dictate our conclusions to be reached on all complex accounting issues. Rather, each issue must be evaluated independently by our engagement team. As discussed above, we will not only meet internally, but also facilitate discussion with the City’s management team in order to obtain a mutual understanding of the particular accounting issue, determine the applicable authoritative guidance that most closely relates to the issue, and strive to reach an approach agreed upon by both parties. If there remains any ambiguity or disagreement, we can explore other resources that could possibly assist, such as subject matter professionals within the Government Accounting Standards Board staff or the Government Finance Officers Association (GFOA) or perhaps other municipalities who may have dealt with similar issues.

11. Report format
(RFP Section IV. Proposal Requirements, C. Technical Proposal, 11) As requested, CLA has provided a sample report format in Appendix D of this proposal. Each report provided conforms to the industry standards.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 40, Packet Page 71 ©2025 CliftonLarsonAllen LLP | 36
Appendix
A. Your service team biographies
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 41, Packet Page 72 ©2025 CliftonLarsonAllen LLP | 37
Daphnie Munoz, CPA
CLA (CliftonLarsonAllen LLP)
Audit and Assurance Principal 714-975-5474
Irvine, California [email protected]
Profile
Daphnie is an assurance principal at our CLA’s Irvine office. She has 25 years’ experience with a focus on state and local government audit and assurance services. She earned her CPA designation in 2001 and became an audit and assurance principal in 2011.

A key figure in the firm’s government audit practice, Daphnie works closely with government entities to provide an in-depth attestation services, including single audits. She has extensive experience with a wide range of local government related audit engagements, including cities, successor agencies/redevelopment agencies, federal grants, special districts, compliance audits, and agreed-upon procedures engagements.

Technical experience
• Government entities, including nonprofits and special districts Education and professional involvement
• Bachelor of science in accounting from De La Salle University, Manila, Philippines • Certified Public Accountant in the state of California • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CalCPA) • California Society of Municipal Finance Officers (CSMFO) • Government Finance Officers Association (GFOA)
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 42, Packet Page 73 ©2025 CliftonLarsonAllen LLP | 38
Local government experience
• City of Alhambra
• City of Banning
• City of Burbank
• City of Blythe
• City of Colton
• City of Fillmore
• City of Glendale
• City of Hesperia
• City of Lake Forest
• City of Lancaster
• City of Murrieta
• City of Rancho Palos Verdes
• City of Riverside
• City of Santa Ana
• City of Santa Barbara
• City of Santa Maria
• City of South Pasadena
• City of Stanton
• City of Torrance
• Grossmont Healthcare District
• Rancho Santa Fe Community Services District
• Fairbanks Community Services District
• Valley Wide Recreation and Park District
• Heber Public Utilities District
• Vista Irrigation District
• Midway City Sanitary District
• Whispering Palms Community Services District
• Placentia Library District
• Yorba Linda Water District
Continuing professional education
Daphnie attends a minimum of 20 credits annually of continuing professional education classes, including a minimum of eight credits of audit and accounting classes, resulting in 120 credits for three-year requirement.

Every two years, a minimum of 24 credits of CPE specifically related to Yellow Book requirements is completed.

As requested, we have provided her relevant continuing professional education for the past three years in the table below.

Course Credits
2025
Accounting for Revenues in Government (Emphasis on Non-Exchange Transactions) 3.5 Yellow Book and Single Audit Update 2025 2.5
Ethical and Independence Considerations in Yellow Book Engagements 2.0 Common audit deficiencies: Governmental audits 2.0
Excel: Fraud Detection 1.0
Annual Professional Ethics Update 2025 2.0
Fraud Update 2025 2.0
California Rules and Regulations 2.0
Professional Skepticism and Fraud 1.0
GASB Update 2025 - Part 1 1.0
CSMFO Annual Conference 2025 6.0
Single Audit Update - February 2025 1.0
2025 Total 26.0
2024
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 43, Packet Page 74 ©2025 CliftonLarsonAllen LLP | 39
Course Credits
CLA The Rainmaker Academy 2024: Serve (Session 6) 3.0
Assurance Methodology Update 2024 - Private 1.0
CLA The Rainmaker Academy 2024: Motivate (Session 5) 3.0 CLA The Rainmaker Academy 2024: Align (Session 4) 3.0
Quality Update - Q3 2024 1.0
Single Audit: Direct & Material Compliance 1.0
CLA The Rainmaker Academy 2024: Explore (Session 3) 1.0 Annual GASB Update 2024 2.0
Rainmaker: Engaging Our Clients and Markets Conference 2024 (Session 2) 15.0 Single Audit Update - July 2024 1.0
Quality Update - Q2 2024 1.0
Assurance Methodology Update 2024 - Regulated, SLG 1.0
Engaging Our Clients and Markets: MarTech 13.5
CLA The Rainmaker Academy 2024: Target (Session 1) 3.0
ECM* MarTech: Responsive Overview and Training 1.0
Single Audit Update - February 2024 1.0
CSMFO Conference 10.0
Quality Update - Q1 2024 1.0
AIS and Audit Methodology Refresher 1.0
AIS Risk Assessment in Industry - State and Local Government Part 2 1.0 AIS Risk Assessment in Industry - State and Local Government Part 1 1.0 Owner Meeting 2024 14.5
2024 Total 80.0
2023
Centralized Billing Process - Part 2 1.0
Centralized Billing Process - Part 1 1.0
Assurance Perspectives - Q4 2023 1.0
Quality Update - Q4 2023 1.0
Wellness Wednesday – NDEAM and Advancing Accessibility (October 2023) 1.0 AIS and Audit Methodology - Day 1 8.0
Single Audit Update - August 2023 1.0
Connect, Inspire, and Grow 2023 12.0
IT for Auditors 1.0
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 44, Packet Page 75 ©2025 CliftonLarsonAllen LLP | 40
Course Credits
Analytical Tools - Intermediate 1.0
State and Local Gov (SLG) Industry Series - June 2023 1.0 IT in an Audit, SAS 145 1.0
Adopting the Standards SAS 143-145 1.0
Assurance Perspectives - Q2 2023 1.0
State and Local Gov (SLG) Industry Series - May 2023 #2 1.0 Wellness Wednesday: CelebrAsian - Wait, you're Asian too? (May 2023) 1.0 State and Local Gov (SLG) Industry Series - May 2023 #1 1.0 Quality Update - Q2 2023 1.0
Compensation & Advancement Process - Leadership Kick Off & Workday Walkthrough 2023 1.0
GASB for State and Local Government 2023 - Part 1 1.0
Single Audit Update - April 2023 1.0
Wellness Wednesday: Military Connections (April 2023) 1.0 Wellness Wednesday: Women's History Month - Enhancing Confidence and Finding Your Voice (March 2023) 1.0
Wellness Wednesday: Black History Month - Our journey to CPA (February 2023) 1.0 Single Audit Update - January 2023 1.0
Leaders Summit 2023 5.5
2023 Total 48.5
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 45, Packet Page 76 ©2025 CliftonLarsonAllen LLP | 41
Richard (Rich) Gonzalez, CPA
CLA (CliftonLarsonAllen LLP)
Principal 916-677-5760
Sacramento, California [email protected]
Profile
Rich is a principal and CPA. He has more than 25 years of regulated industry auditing experience, which includes county, city, special district, and state agency audits. His experience also includes the successful training of client staff in the preparation of their organization’s ACFR. He participates as a ACFR reviewer within the GFOA Special Review Committee.

Technical experience
• State and local government
○ Counties
○ Cities
○ State departments
○ Water, fire, flood, and sanitation districts
○ Air pollution districts, housing agencies, and LAFCO agencies • Federal and state grant compliance audits
• Single audits performed under the Uniform Guidance
Education and professional involvement
• Bachelor of science in accounting from Humboldt State University, Arcata, California • Certified Public Accountant in the state of California • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CalCPA) • Government Finance Officers Association (GFOA)
• GFOA Special Review Committee
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 46, Packet Page 77 ©2025 CliftonLarsonAllen LLP | 42
Key relevant clients
• City of Auburn
• City of Benicia
• City of Chico*
• City of Hercules
• City of Merced
• City of Portola
• City of Redding*
• City of Seaside*
• County of Alpine
• County of Amador
• County of Butte*
• County of Calaveras*
• County of Colusa
• County of El Dorado
• County of Glenn
• County of Humboldt
• County of Inyo
• County of Lake*
• County of Lassen
• County of Madera*
• County of Marin*
• County of Mendocino*
• County of Merced*
• County of Modoc
• County of Mono
• County of Monterey*
• County of Napa*
• County of Nevada*
• County of Placer*
• County of San Benito
• County of San Bernardino*
• County of San Joaquin
• County of San Luis Obispo
• County of Santa Cruz*
• County of Shasta*
• County of Sierra
• County of Stanislaus*
• County of Sutter
• County of Tehama
• County of Trinity*
• County of Yolo
• County of Yuba
• State Water Resources Development System*
• IBank
* Annual Comprehensive Financial Report Award
Continuing professional education
Rich attends a minimum of 20 credits annually of continuing professional education classes, including a minimum of eight credits of audit and accounting classes, resulting in 120 credits for three-year requirement.

Every two years, a minimum of 24 credits of CPE specifically related to Yellow Book requirements is completed.

As requested, we have provided his relevant continuing professional education for the past three years in the table below.

Course Credits
2025
Assurance Methodology Update 2025 - Regulated, SLG 1.0
Quality Update - Q2 2025 1.0
SLG Assurance Learning 2025 - Sacramento - Day 4 6.0
SLG Assurance Learning 2025 - Sacramento - Day 3 8.5
SLG Assurance Learning 2025 - Sacramento - Day 2 8.5
SLG Assurance Learning 2025 - Sacramento - Day 1 8.0
Fraud in Governmental and Nonprofit Entities 3.0
Ethics for California CPAs 4.0
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 47, Packet Page 78 ©2025 CliftonLarsonAllen LLP | 43
Course Credits
ACFE Fraud Trends 1.0
GASB Update 2025 - Part 1 1.0
Single Audit Update - February 2025 1.0
Single Audit: Compliance Requirements L&G 1.0
2025 Total 44.0
2024
AIS and Audit Methodology Refresher 1.0
Materiality 1.0
Audit Documentation 1.0
GASB Update 2024 - Part 2 1.0
Engaging Our Clients and Markets: MarTech 13.5
2024 State and Local Government Assurance Overview - Sacramento Day 3 4.5 2024 State and Local Government Assurance Overview - Sacramento Day 2 4.0 2024 State and Local Government Assurance Overview - Sacramento Day 2 14.0 2024 State and Local Government Assurance Overview - Sacramento Day 1 9.0 Quality Update - Q2 2024 1.0
Assurance Methodology Update 2024 - Regulated, SLG 1.0
Single Audit: Procurement, Suspension, & Debarment 1.0
California State Association of County Auditors 18.0
ECM* MarTech: Responsive Overview and Training 1.0
Single Audit Update - February 2024 1.0
AIS Risk Assessment in Industry - State and Local Government Part 2 1.0 AIS Risk Assessment in Industry - State and Local Government Part 1 1.0 2024 Total 74.0
2023
Engaging Our Clients and Markets: Prodigy - Part 6 2.0
78th Annual State Controller's Conference with County Auditors 6.5 AIS and Audit Methodology - Day 1 8.0
Engaging Our Clients and Markets: Prodigy - Part 5 2.0
Engaging Our Clients and Markets: Prodigy - Part 4 2.0
Adopting the Standards SAS 143-145 1.0
Single Audit Update - August 2023 1.0
Engaging Our Clients and Markets: Prodigy - Part 3 2.0
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 48, Packet Page 79 ©2025 CliftonLarsonAllen LLP | 44
Course Credits
Connect, Inspire, and Grow 2023 12.0
Quality Management Update 2023 6.0
Engaging Our Clients and Markets: Prodigy - Part 2 1.0
Effective Compensation Conversations 2023 1.0
Engaging Our Clients and Markets: Prodigy - Part 1 2.0
State and Local Gov (SLG) Industry Series - May 2023 #1 1.0 Quality Update - Q2 2023 1.0
Annual GASB Update 2.0
Creating a Culture of Integrity 2.0
Compensation & Advancement Process - Leadership Kick Off & Workday Walkthrough 2023 1.0
State Association of County Auditors 2023 Spring Conference 8.5 Single Audit Update - April 2023 1.0
Single Audit Update - January 2023 1.0
2023 Total 64.0
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 49, Packet Page 80 ©2025 CliftonLarsonAllen LLP | 45
Robert (Rob) Perl, CPA
CLA (CliftonLarsonAllen LLP)
Director 714-795-5458
Irvine, California [email protected]
Profile
Rob is an assurance director at CLA’s Irvine office. He has more than 16 years of experience in performing audits and consultations for government agencies and nonprofit organizations, including single audits. He is also wellversed in data analytics and cybersecurity for finance and accounting. His diverse client base includes organizations in the nonprofit, governmental, financial services, manufacturing, distribution, and agriculture industries.

Technical experience
• Local government agencies, including cities, nonprofits, and special districts • Financial services
• Manufacturing and distribution
• Agriculture
• Data analytics
• Cybersecurity for finance and accounting
Education and professional involvement
• Bachelor of accounting from Brigham Young University, Laie, Hawaii • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CalCPA) Key relevant clients
• City of Burbank
• City of Blythe
• City of Gilroy
• City of Lancaster
• City of Murrieta
• City of Placentia
• City of Porterville
• City of Riverside
• City of Santa Ana
• City of South Pasadena
• City of Victorville
• County of Kern
• Monterey Peninsula Regional Park District
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 50, Packet Page 81 ©2025 CliftonLarsonAllen LLP | 46
Continuing professional education
Rob attends a minimum of 20 credits annually of continuing professional education classes, including a minimum of eight credits of audit and accounting classes, resulting in 120 credits for three-year requirement. Every two years, a minimum of 24 credits of CPE specifically related to Yellow Book requirements is completed. As requested, we have provided his relevant continuing professional education for the past three years in the table below.

Course Credits
2025
Assurance Methodology Update 2025 - Regulated, SLG 1.0
Quality Update - Q2 2025 1.0
GASB Update 2025 - Part 1 1.0
CSMFO Annual Conference 2025 6.0
Single Audit Update - February 2025 1.0
Single Audit Quality: Focus on Designing and Performing Test of Control and Compliance 2.0
Quality Update - Q1 2025 1.0
Uniform Guidance Update 2024 1.0
Single Audit: Compliance Requirements L&G 1.0
2025 Total 15.0
2024
GASB 84: Fiduciary Activities 1.0
GASB 96 – Subscription-Based Information Technology Arrangements (SBITAs) 1.0 GASB Statement 87: Leases 2.0
Fraud - Who Commits It and Why Does It Occur 4.0
Ethics for California CPAs 4.0
Quality Update - Q4 2024 1.0
AIS Data Ingestion Training 1.0
Assurance Methodology Update 2024 - Private 1.0
GAAP Update 2024 - Private 1.0
Quality Update - Q3 2024 1.0
GASB Update 2024 - Part 2 1.0
Single Audit: Direct & Material Compliance 1.0
Single Audit Update - July 2024 1.0
Assurance Methodology Update 2024 - Regulated, not SLG 1.0 What Qualified Opportunity Zone Fund Investors Need to Know 1.0 ATTACHMENT 2
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Course Credits
Quality Update - Q2 2024 1.0
GAAP Update 2024 - Regulated 1.0
Assurance Methodology Update 2024 - Regulated, SLG 1.0
Single Audit: Procurement, Suspension, & Debarment 1.0
Meetings that Matter 1.0
GASB Update 2024 - Part 1 1.0
AIS KPIs and Seamless Opportunities in Industry - State and Local Government 1.0 Single Audit Update - February 2024 1.0
CSMFO Annual Conference 2024 5.5
Quality Update - Q1 2024 1.0
AIS and Audit Methodology Refresher 1.0
AIS Risk Assessment in Industry - State and Local Government Part 2 1.0 AIS Risk Assessment in Industry - State and Local Government Part 1 1.0 AIS Data Ingestion 1.0
Navigating Performance Conversations 1.0
2024 Total 41.5
2023
Centralized Billing Process - Part 2 1.0
Centralized Billing Process - Part 1 1.0
Assurance Perspectives - Q4 2023 1.0
Quality Update - Q4 2023 1.0
AIS and Audit Methodology - Day 1 8.0
Single Audit Update - August 2023 1.0
Connect, Inspire, and Grow 2023 12.0
State and Local Gov (SLG) Industry Series - June 2023 1.0 IT for Auditors 1.0
IT in an Audit, SAS 145 1.0
Adopting the Standards SAS 143-145 1.0
State and Local Gov (SLG) Industry Series - May 2023 #1 1.0 Quality Update - Q2 2023 1.0
Assurance Perspectives - Q2 2023 1.0
GASB for State and Local Government 2023 - Part 1 1.0
Single Audit Update - April 2023 1.0
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 52, Packet Page 83 ©2025 CliftonLarsonAllen LLP | 48
Course Credits
State and Local Gov (SLG) Industry Series - April 2023 1.0 California Regulatory Review RRS-026-0418 2.0
Single Audit Update - January 2023 1.0
2023 Total 38.0
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 53, Packet Page 84 ©2025 CliftonLarsonAllen LLP | 49
Antonio Moran, CPA
CLA (CliftonLarsonAllen LLP)
Senior 626-387-8223
Glendora, California [email protected]
Profile
Antonio is a senior with the state and local government team at CLA. He brings more than six years of governmental auditing experience to the team and specializes in municipal entities and K-12 school districts. He has an in-depth understanding of governmental accounting standards and state/federal compliance requirements. Antonio serves as a technical reviewer for the Government Finance Officer Association’s Excellence in Financial Reporting Award program.

Technical experience
• State and local government
• Nonprofit entities
Education and professional involvement
• Bachelor of arts in business administration with a concentration in accounting from California State University, San Bernardino, San Bernardino, California
• Bachelor of arts in business administration with a concentration in finance from California State University, San Bernardino, San Bernardino, California
• Certified Public Accountant in the state of California • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CalCPA) Key relevant clients
• City of Santa Fe Springs
• City of El Segundo
• City of Riverside
• City of Oakdale
• County of Kern
• County of Stanislaus
• County of Trinity
• County of Modoc
• West Covina Unified School District
• Huntington Beach Union High School District
• Fullerton Joint Union High School District
• San Marino Unified School District
• West San Gabriel Workers Compensation JPA
• West San Gabriel LP JPA
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 54, Packet Page 85 ©2025 CliftonLarsonAllen LLP | 50
Continuing professional education
Antonio attends a minimum of 20 credits annually of continuing professional education classes, including a minimum of eight credits of audit and accounting classes, resulting in 120 credits for three-year requirement.

Every two years, a minimum of 24 credits of CPE specifically related to Yellow Book requirements is completed.

As requested, we have provided his relevant continuing professional education for the past three years in the table below.

Course Credits
2024
ACFE Fraud Trends 1.0
Ethics for California CPAs 4.0
Governmental Accounting for Revenue 7.0
Grants Management 10.0
California K-12 and Charter Schools Compliance Update 2024 2.0 CSMFO Annual Conference 2024 8.5
AIS and Audit Methodology Refresher 1.0
2024 Total 33.5
2023
Going concern uncertainty 3.0
AIS and Audit Methodology - Day 1 8.0
LEAP 2023: Propel Conference 12.5
LEAP 2023: Propel Assurance Technical Breakout 1.0
IT in an Audit, SAS 145 1.0
Using RIA Checkpoint Effectively 1.0
GASB Disclosure Framework Issued 1.0
California K-12 and Charter Schools Compliance Update 2023 2.0 Single Audit Update - April 2023 1.0
Materiality in Planning a Governmental Audit 1.0
GASB 96 – Subscription-Based Information Technology Arrangements (SBITAs) 1.0 2023 Yellow Book Update 2.0
Common audit deficiencies: Governmental audits 2.0
GASB 87 Leases 1.0
Risk Assessment 1.0
Audit Risk Assessment 3.0
Pfx Engagement: Trial Balance 1.0
New Family Member IT Orientation 1.5
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 55, Packet Page 86 ©2025 CliftonLarsonAllen LLP | 51
Course Credits
Pfx Engagement: An Introduction 1.0
Think Security: New Family Members 1.0
2023 Total 46.0
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 56, Packet Page 87 ©2025 CliftonLarsonAllen LLP | 52
B. Peer review report
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 57, Packet Page 88 ©2025 CliftonLarsonAllen LLP | 53
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 58, Packet Page 89 ©2025 CliftonLarsonAllen LLP | 54
C. Exceptions to the form of agreement
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 59, Packet Page 90 ©2025 CliftonLarsonAllen LLP | 55
We have reviewed the City’s standard professional services agreement with our Quality and Risk Management and have summarized our proposed revisions below. These revisions specifically tailor the contract to better align with the scope of work and remove generic language not applicable to the related services.

We believe the City will find these modifications reasonable and appropriate. However, we are willing to discuss these proposed revisions and comments in an effort to achieve a mutually agreed-upon contract.

11. Insurance
C. The general liability and auto policies shall:
• Provide an endorsement naming the City of Monterey, its officers, officials, employees and volunteers as additional insureds under an endorsement (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used). • Provide that such insurance is primary and non-contributing insurance to any insurance or self-insurance maintained by the City.
• Contain a "Separation of Insureds" provision substantially equivalent to that used in the ISO form CG 00 01 10 01 or their equivalent.
• Provide for a waiver of any subrogation rights against the City via an ISO CG 24 01 10 93 or its equivalent.

Additional insured is done as a blanket endorsement such that the City is not specifically named as an additional insured but is an additional insured by nature of the contractual obligation.

Section 11. F
CLA requests deletion of the following item, because CLA will not disclose the exact amount of its deductible and/or SIR.

Any deductibles or self-insured retentions must be declared to and approved by the City of Monterey. At the option of the City of Monterey, either: the insured shall reduce or eliminate such deductibles or self-insured retentions as respects the City of Monterey, its officers, officials, employees and volunteers; or Consultant shall provide a financial guarantee satisfactory to the City of Monterey guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

12. Ownership of Work and Copyrights
CLA has added language to the following paragraph in this section, each item added to the City’s original language is underlined below.

12.Ownership of Work and Copyrights. Upon completion of the work under this Agreement, ownership, title and copyrights to all materials and deliverables produced as part of this Agreement will automatically be vested in the City and no further agreement will be necessary to transfer ownership to City. For the avoidance of doubt materials and deliverables does not include Consultant’s workpapers which are proprietary information and access is restricted.

ATTACHMENT 2
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D. Sample format reports
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ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 77, Packet Page 108 ©2025 CliftonLarsonAllen LLP
June 20, 2025
Proposal to provide professional audit services to:

City of Monterey, California
Prepared by:

Request for Proposal Subject Request for Proposal – Annual Independent Audit Services Firm Name CLA (CliftonLarsonAllen LLP)
Name, Address, Telephone
Number of Contact Person
Daphnie Munoz, CPA, Principal
2875 Michelle Drive, Suite 300, Irvine, CA 92606
Direct 714-795-5474
Date of Proposal June 20, 2025
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

Sealed Cost Bid
ATTACHMENT 3
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 78, Packet Page 109 ©2025 CliftonLarsonAllen LLP | 2
D. Separate Cost Bid

1. Total all-inclusive maximum price
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 1) a. Name of firm
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 1.a) CLA (CliftonLarsonAllen LLP)
b. Authorized personnel
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 1.b) I, Daphnie Munoz, your engagement principal, as a principal of CLA, I am authorized to sign, bind, and commit the firm to the obligations contained in this proposal and the City’s RFP. c. Total all-inclusive maximum price for the 2024-25 engagement (RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 1.c) In the table below, we have provided a total all-inclusive maximum price for the 2024-25 engagement.

Service 2024-2025
City of Monterey Audit & Related Reports $66,975
Single Audit and related reports* $6,810
GANN Limit Review Report $675
Presidio Municipal Services Agency Finance Statement $5,490 City of Monterey Joint Powers Financing Authority Financial Statement $5,490 Measure X Financial Statement $5,490
Total all-inclusive maximum price $90,930
*For one major program - $4,500 for each additional major program. d. Fee increase and total all-inclusive maximum price for the subsequent years (RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 1.d) As requested, we have provided a breakdown of the total all-inclusive maximum price for the subsequent four fiscal years below. Our fees are based on professional standards and regulations currently in effect and barring any changes in the nature or requirements of the engagement, our annual fees will increase by 3.5%. If fee increases are expected outside of the fees provided below, we would discuss with management prior to the completion of the work.

Service 2025/
2026
2026/
2027
2027/
2028
2028/
2029
City of Monterey Audit & Related
Reports $69,320 $71,750 $74,260 $76,860
Single Audit and related reports* (see
above) $7,050 $7,300 $7,560 $7,820
GANN Limit Review Report $700 $720 $750 $780
Presidio Municipal Services Agency
Finance Statement $5,680 $5,880 $6,090 $6,300
City of Monterey Joint Powers Financing
Authority Financial Statement
$5,680 $5,880 $6,090 $6,300
Measure X Financial Statement $5,680 $5,880 $6,090 $6,300 Total all-inclusive maximum price $94,110 $97,410 $100,840 $104,360 ATTACHMENT 3
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 79, Packet Page 110 ©2025 CliftonLarsonAllen LLP | 3

2. Rates by partner, specialist, supervisory and staff level times hours anticipated for each
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 2) As requested, the second page of the sealed dollar cost bid includes a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix A, Page 1), that supports the total allinclusive maximum price.

ATTACHMENT 3
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 80, Packet Page 111 ©2025 CliftonLarsonAllen LLP | 4

3. Price
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 3) Having upfront conversations builds relationships.

The value we can provide your organization goes beyond meeting your compliance needs. We can help you discover opportunities to enhance your performance and achieve your strategic goals. Our insights and strategies are tailored to your specific situation and represent a return on your investment.

As requested, CLA has provided a cost breakdown, as shown in the attachment (Appendix A, Page 2-3), for each of the functions and reports the auditor proposes to perform, inclusive of the tasks previously listed in the section of Duties of the Auditor. Please see the completed forms on the following page.

Our fee quote is designed with an understanding that:
• the City personnel will provide documents and information requested in a timely fashion. • The operations of your organization do not change significantly and do not include any future acquisitions or significant changes in your business operations.
• There are no significant changes to the scope, including no significant changes in auditing, accounting, or reporting requirements.

The 5% technology and client support fee supports our continuous investment in technology and innovation to enhance your experience and protect your data.

No surprises
Our clients don’t like fee surprises. Neither do we. If changes or complexities occur — or any "out-of-scope" work is required — we'll discuss a revised proposal with you first.

It's not our policy or practice to bill our clients every time we receive a phone call or email. We’re invested in our relationships and strongly encourage intentional and frequent communication. Contact us year-round as changes or questions arise.

Our last word on fees: we’re committed to serving you and creating a longstanding relationship. If fees are a deciding factor in your selection of a professional services firm, give us a call and let’s discuss.

Transparent: Clear, authentic communication and market-based fees.

ATTACHMENT 3
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4. Out-of-pocket expenses
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 4) Please note that these are firm-fixed fees and include out-of-pocket costs associated with the engagement such as local travel. We understand that clients do not want fee surprises; our fee and billing practices reflect this understanding.

5. Rates for additional professional services
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 5) For any additional work, it is our practice to bill for actual hours incurred at an hourly rate applicable to the professional completing the project at hand. If additional work is requested outside of the scope of requested services, we will discuss with you our proposed fee for additional services before we begin the project. Any such additional work agreed to between the City and CLA shall be performed at the below rates.

Level Current Hourly Rate
Principal/Signing Director $355+
Manager/Director $185 - $320
Senior $160 - $220
Associate $140 - $170

6. Manner of payment
(RFP Section IV. Proposal Requirements, D. Separate Cost Bid, 6) CLA understands that the progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with CLA's dollar cost bid proposal. We understand that the interim billing will include an hourly distribution of work by cost breakdown in the format provided in the attachment (Appendix A, Page 3) and will cover a period of not less than a calendar month. Finally, CLA understands that ten percent (10%) of the total fee will be withheld until all audit work is completed and accepted by the Finance Director.

ATTACHMENT 3
Council Regular Meeting, 8/5/2025, Item No. 5., Item Page 90, Packet Page 121 Council
Agenda Report
№11/25
FROM: Rafaela T. King, CPA, MBA, Finance Director
Prepared by: Youssef Hanalla, CPA, Finance Manager
SUBJECT: Award a Professional Services Agreement to Hinderliter, de Llamas and Associates for Transient Occupancy Tax Audit Services (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council:

1. Adopt a Resolution to Award Professional
Services Agreement to Hinderliter, de Llamas
and Associates (HdL) for Transient Occupancy
Tax Audit Services

2. Authorize the City Manager to enter into a
contract with Hinderliter, de Llamas and
Associates
VALUE DRIVERS:

Serve as stewards of the City’s financial resources
through sound economic vitality efforts, streamlining
operations, reasonable revenue enhancements,
visionary long-term planning, fiscal transparency, and
community partnerships.

POLICY IMPLICATIONS:

This project is consistent with the Finance Department’s long-term aspirations to better streamline and manage
the City’s resources.

The choice of HdL as a vendor is consistent with the
existing practice of working with highly qualified and
talented firms to enable City departments to be successful in achieving their respective missions. This action is also consistent with policy requiring Council approval of agreements exceeding $75,000.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: Yes.

FISCAL IMPLICATIONS:

The funding required for this activity will amount to $2,250 per hotel for the 68 hotels within the City's boundaries, totaling $153,000. The audits of the hotels will take place over a three year Agenda Report Highlights
 The City Council is recommended to
award a Professional Services
Agreement to Hinderliter, de Llamas
and Associates (HdL) for Transient
Occupancy Tax audit services.
 HdL has a proven track record,
identifying $650,000 in noncompliance findings during previous audits of 68 hotels in Monterey.
 The audit would span three years,
covering 23 hotels annually, with a
total cost of $153,000 funded under
the FY 2025-2026 Operating
Budget.
 Alternative options, such as relying
on hotels for compliance without
audits, are not recommended due to
the risk of revenue loss.

Date: 8/5/2025
Item No.: 6.

Council Regular Meeting, 8/5/2025, Item No. 6., Item Page 1, Packet Page 122 №11/25
period averaging 23 hotels per year. The annual expense of approximately $51,750 is included in the FY 2025-2026 Operating Budget under the Contractual Services Account (101-110-1110- 0000-4220). As soon as both parties agree to proceed with the audit, services will be billed on an as-used basis.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines”), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council has the option to not award the contract to HdL, thereby foregoing the hotel audit and relying on the hotels to comply with the City code regarding the transient occupancy tax. However, this course of action is not recommended.

DISCUSSION:

HdL brings extensive experience in both Sales Tax and Transient Occupancy Tax audits across California. The City already utilizes HdL for its sales tax audits, benefiting from their technical expertise and familiarity with municipal operations. Their client portfolio includes cities such as Menlo Park, Marina, Napa, Capitola, and Merced, among many others referenced in their response to our Request for Proposals.

Since 2022, the City of Monterey has engaged HdL to conduct a comprehensive TOT audit of the 68 hotels operating within city limits. This audit was structured into five rounds over an estimated three-year period. Upon the conclusion of the audit, HdL had identified approximately $650,000 in aggregate non-compliance findings—highlighting the importance and effectiveness of this review.

In the course of the initial audit phase, although there were certain difficulties encountered with the first two groups, HdL exhibited robust operational capabilities and a proactive team strategy—ultimately guaranteeing comprehensive coverage and prompt execution. In light of these findings and HdL’s established track record, the Finance Department advises the continuation of the partnership with them for the subsequent round of hotel audits.

RTK/yh
Attachments:

1. Resolution
Council Regular Meeting, 8/5/2025, Item No. 6., Item Page 2, Packet Page 123 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24

AWARDING A PROFESSIONAL SERVICES AGREEMENT TO HINDERLITER, DE

LLAMAS AND ASSOCIATES FOR TRANSIENT OCCUPANCY TAX AUDIT

SERVICES
WHEREAS, the Transient Occupancy Tax constitutes a significant revenue sources to the City’s operating budget, accounting for approximately 27% of General Fund revenue; WHEREAS, auditing this program is essential for the City of Monterey to ensure that all hotels fully comply with the applicable City code;
WHEREAS, the City of Monterey has identified Hinderliter, de Llamas and Associates as the top vendor in the request for proposal process to support the City of Monterey in conducting the audit in a satisfactory manner.

WHEREAS, The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby:

1. Adopt a Resolution to Award Professional Services Agreement to Hinderliter, de Llamas and Associates (HdL) for Transient Occupancy Tax Audit Services Council Regular Meeting, 8/5/2025, Item No. 6., Item Page 3, Packet Page 124

2. Authorize the City Manager to enter into a contract with Hinderliter, de Llamas and Associates
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 6., Item Page 4, Packet Page 125 Council
Agenda Report
№11/25
FROM: Andrea Renny, Public Works Director
Prepared By: Reginald Paulding, P.E., Senior Engineer
SUBJECT: Close and Defund Four (4) Neighborhood and Community Improvement Program (NCIP) Projects, Approve Funding to Cut-Off Projects from the Approved FY2024/25 NCIP Project List, and Authorize the Finance Director to Appropriate Funding (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt the attached resolution
authorizing the Finance Director, or their designee, to:

1. Close-out the Mar Vista Reconstruction Design
(35n1616) and transfer all remaining funds to
the NCIP End Balance (31nunap) account;

2. Close-out the Via Paraiso Park Expression
Swings Project (nip2315) and transfer all
remaining funds to the NCIP End Balance
(31nunap) account;

3. Close-out the Casanova Ave, 500 Block
Sidewalk Project (nip2331) and transfer all
remaining funds to the NCIP End Balance
(31nunap) account;

4. Close-out the Monterey Vista Conduit
Installation Project (ncp2422) and transfer all
remaining funds to the Undergrounding
Utilities Program (ncp2502) account;

5. Establish a new NCIP project for the
Opportunity Property Purchasing Project, a
FY2024/25 Cut-Off Project, and authorize a
transfer of $250,000 to the new NCIP project
account from the NCIP End Balance
(31nunap);

6. Establish a new NCIP project for the
Recreation Trail Bike Repair Station Project, a
FY2024/25 Cut-Off Project, and authorize a
transfer of $3,000 to the new NCIP project
account from the NCIP End Balance
(31nunap);

7. Transfer $25,000 of additional funding from the
NCIP Contingency (31ncont) account to the
Agenda Report Highlights
 City Council is recommended to
close and defund four NCIP
projects, transferring funds to other
accounts, including the NCIP End
Balance and Underground Utilities.
 Approval is sought for funding two
FY2024/25 cut-off projects:

Opportunity Property Purchasing
($250,000) and Recreation Trail
Bike Repair Station ($3,000).
 Additional funding of $25,000 is
requested for the Virgin Avenue DG
Path Widening Project and
$900,000 for Fire Stations 12 and
13 Rehabilitation.
 The NCIP Committee unanimously
supports the proposed actions,
citing feasibility issues and refined
cost estimates for project
adjustments.
 The report emphasizes fiscal
responsibility and community
collaboration in prioritizing and
reallocating resources for
neighborhood improvements.

Date: 8/5/2025
Item No.: 7.

Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 1, Packet Page 126 №11/25
Virgin Avenue Decomposed Granite (DG) Path Widening Project (ncp2415); and

8. Transfer $900,000 of additional funding from the NCIP Contingency (31ncont) account and the NCIP End Balance (31nunap) account to the Fire Stations 12 and 13 Rehabilitation Project (ncp2506).

VALUE DRIVERS:

In collaboration with our community partners, work to improve the quality of life of all of our community members by fostering diversity, equity, and inclusion; championing equitable access to affordable housing; and maintaining a safe environment.

Serve as stewards of the City’s financial resources through sound economic vitality efforts, streamlining operations, reasonable revenue enhancements, visionary long-term planning, fiscal transparency, and community partnerships.

Expand opportunities for people of all ages and abilities to bike and walk safely through active transportation, accessibility, and safety initiatives.

Foster a local government that is transparent and collaborative; and solicits, welcomes and appreciates input from all.

POLICY IMPLICATIONS:

The determination of the projects, priorities and expenditures shall be within the sound discretion of the City Council. (City Charter Section 6.6(e).) The recommended actions are consistent with Council policy to approve all budget amendments and with established policy and procedures for amending NCIP project budgets. (NCIP Policies and Procedures Manual, September 7, 2021).

On August 13, 2024, the Planning Commission confirmed the proposed projects to be consistent with the General Plan, Specific Plans, Area Plans, Master Plans, Coastal Plans, Traffic Calming Plans, and the Move Monterey Multimodal Plan.

On November 13, 2024, the Parks and Recreation Commission found the proposed projects to be consistent with the Parks and Recreation Master Plan.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Close and Defund Four (4) NCIP Projects
The funds from three closed-out NCIP projects will be transferred into the NCIP End Balance (31nunap) account and made available for future NCIP projects. As of July 3, 2025, the three NCIP projects recommended for close-out have the following balance amounts: Mar Vista Reconstruction Design Project (35n1616) account has $104,490.15; Via Paraiso Park Expression Swings (nip2315) account has $30,000; and, Casanova Ave, 500 Block Sidewalk (nip2331) account has $260,000. As of July 3, 2025, the NCIP End Balance (31nunap) account has $605,819.46. Therefore, this action will increase the NCIP End Balance (31nunap) account by $394,490.15 for a total amount of $1,000,309.61.

Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 2, Packet Page 127 №11/25
3 NCIP Projects Close-Out to NCIP End Balance
Mar Vista Reconstruction Design Project (35n1616) $104,490.15 Via Paraiso Park Expression Swings (nip2315) $30,000.00 Casanova Ave, 500 Block Sidewalk (nip2331) $260,000.00
NCIP End Balance (31nunap) $605,819.46
Total $1,000,309.61
The funds from the Monterey Vista Conduit Installation project will be transferred to the Underground Utilities Project (ncp2502). As of July 3, 2025, the Monterey Vista Conduit Installation Project (ncp2422) account has $248,573.78, and the Underground Utilities Project (ncp2502) account has $2,000,000. Therefore, this action will increase Underground Utilities Project (ncp2502) account by $248,573.78, for a total amount of $2,248,573.78.

NCIP Project Close-Out to Underground Utilities Project Monterey Vista Conduit Installation (ncp2422) $248,573.78 Underground Utilities Project (ncp2502) $2,000,000.00
Total $2,248,573.78
Approve Funding to Cut-Off Projects from the Approved FY2024/25 NCIP Project List Transferring $250,000 from the NCIP End Balance (31nunap) account is necessary to fund the Opportunity Property Purchasing Project. As of July 3, 2025, the NCIP End Balance (31nunap) account has $605,819.46, which is sufficient funding for this action. Therefore, this action will decrease the NCIP End Balance (31nunap) account by $250,000, for a total amount of $355,819.46.

NCIP End Balance After Opportunity Property Purchasing Project Request NCIP End Balance (31nunap) $605,819.46
Opportunity Property Purchasing Project -$250,000.00
Total $355,819.46
Transferring $3,000 from the NCIP End Balance (31nunap) account is necessary to fund the Recreation Trail Bike Repair Station Project. As of July 3, 2025, the NCIP End Balance (31nunap) account has $605,819.46, which is sufficient funding for this action. Therefore, this action will decrease the NCIP End Balance (31nunap) account by $3,000, for a total amount of $602,819.46.

NCIP End Balance After Recreation Trail Bike Repair Station Project Request NCIP End Balance (31nunap) $605,819.46
Recreation Trail Bike Repair Station Project -$3,000.00 Total $602,819.00
If all actions are approved by City Council as requested, the NCIP Contingency (31ncont) account balance will be $69,514.20 and the NCIP End Balance (31nunap) account balance will be $528,327.15.

NCIP Unappropriated Balances After Funding Requests
NCIP Contingency (31ncont) $794,514.20
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 3, Packet Page 128 №11/25
Virgin Ave DG Path Widening Appropriation Request (ncp2415) -$25,000.00 Fire Stations 12 and 13 Rehabilitation Appropriation Request (ncp2506) -$700,000.00
NCIP Contingency Balance $69,514.20
NCIP End Balance (31nunap) $605,819.46
Mar Vista Reconstruction Design Project (35n1616) +$104,490.15 Via Paraiso Park Expression Swings (nip2315) +$30,000.00 Casanova Ave, 500 Block Sidewalk (nip2331) +$260,000.00 Fire Stations 12 and 13 Rehabilitation Appropriation Request (ncp2506) -$200,000.00
Opportunity Property Purchasing Project (2024/25 Cut-off Project) -$250,000.00
Recreation Trail Bike Repair Station Project (2024/25 Cut-off Project) -$3,000.00
NCIP End Balance $547,309.61
Authorize the Finance Director to Appropriate Funding from the NCIP Contingency (31ncont) and NCIP Unappropriated Funds (31nunap) Accounts to Various NCIP Projects Transferring $25,000 from NCIP Contingency (31ncont) account to fund the Virgin Ave DG Path Widening Project (ncp2415) account is necessary to fund the construction of the sidewalk section on Virgin Avenue between Grant Avenue and Montecito Avenue. As of July 3, 2025, NCIP Contingency (31ncont) account has $794,514.20, which is sufficient funding for this action. Therefore, this action will decrease the NCIP Contingency (31ncont) account by $25,000, for a total amount of $769,514.20.

NCIP Contingency Balance After Virgin Ave DG Path Widening Funding Request NCIP Contingency (31ncont) $794,514.20
Requested Contingency Appropriation (31ncont) -$25,000.00 Total $769,514.20
Transferring $900,000 from NCIP Contingency (31ncont) account is necessary to fund the Fire Stations 12 and 13 Rehabilitation Project (ncp2506) account. As of July 3, 2025, there is sufficient funding in the NCIP accounts to cover foreseeable cost increases of existing projects when combined with projects completed within or under approved budgets. Therefore, this action will decrease the NCIP Contingency (31ncont) account by $700,000, for a total amount of $94,514.20 and will decrease the NCIP End Balance (31nunap) by $200,000, for a total amount of $405,819.46.

Fire Stations 12 and 13 Rehabilitation Funding Request
Fire Station 12 Original Estimate $1,050,000
Fire Station 13 Original Estimate $1,200,000
Requested Contingency Appropriation (31ncont) $700,000
Requested Unappropriated Funds Appropriation (31nunap) $200,000 Fire Stations 12 and 13 Rehabilitation Total $3,150,000 Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 4, Packet Page 129 №11/25
NCIP Unappropriated Balances as of July 3, 2025
NCIP Contingency (31ncont) $794,514
NCIP End Balance (31nunap) $605,819
Total $1,400,333
NCIP Unappropriated Balances After Fire Stations 12 and 13 Rehabilitation Funding Request NCIP Contingency (31ncont) $794,514
Requested Contingency Appropriation (31ncont) $700,000
Total $94,514
NCIP End Balance (31nunap) $605,819
Requested Unappropriated Funds Appropriation (31nunap) $200,000 Total $405,819
ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project.

ALTERNATIVES CONSIDERED:

City Council could choose not to approve the recommended actions to close out the previously adopted and funded NCIP projects. The Council may also provide direction to City staff to take alternate actions to implement the NCIP projects.

City Council could choose not to approve the requested appropriations; however, this is not recommended. If this request is not approved, there would not be sufficient funding available to complete scope of work and construction of projects.

City Council may choose not to fund the cut-off projects, or may request project re-scoping and refer this item back to the NCIP Committee for further revisions.

DISCUSSION:

Close and Defund Four (4) NCIP Projects
There are currently 61 NCIP projects approved by City Council in previous fiscal years (pre2020, 2020, 2023, and 2024) in the NCIP portfolio of projects. City staff have worked diligently at completing these projects since they were adopted and funded by City Council. However, Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 5, Packet Page 130 №11/25
despite these efforts there are projects that staff are unable to complete for one reason or another. Table 1 contains three of these projects, Mar Vista Reconstruction Design (35n1616), Via Paraiso Park Expression Swings nip2315), and Casanova Ave, 500 Block Sidewalk (nip2331). The fourth NCIP project listed in the table below, Mar Vista Conduit Installation (ncp2422), is recommended to be closed and funds transferred to Underground Utilities Program project (ncp2502). The project nominators have requested that the original project be combined with the Underground Utilities Program Project.

Table 1: – NCIP Projects from Previous Fiscal Years Recommended for Closure Pre-2020 NCIP Projects Status Recommended
Action
Funds
35n1616 Mar Vista
Reconstruction
Design
The project will come
back to NCIP with
documented support
from the
neighborhood.

Close-out Project
and Transfer
Funds to NCIP
End Balance
Account (31nunap)
$104,490.15
2023 NCIP Projects
nip2315 Via Paraiso Park
Expression Swings
There is insufficient
space for this swing at
Via Paraiso Park, and
this project is
technically infeasible.

Close-out Project
and Transfer
Funds to in NCIP
End Balance
Account (31nunap)
$30,000
nip2331 Casanova Ave, 500
Block Sidewalk
The adjacent property
owner does not
support the project.

Close-out Project
and Transfer
Funds to in NCIP
End Balance
Account (31nunap)
$260,000
2024 NCIP Projects
ncp2422 Monterey Vista
Conduit Installation
The project submitters
would like these
project funds moved
over into the current
Undergrounding
Project (ncp2502).

Close-out Project
and Transfer
Funds to
Underground
Utilities Program
project (ncp2502)
$248,573.78
NCIP project 35n1616 – Mar Vista Reconstruction Design was nominated to the NCIP Committee in 2015 and adopted and funded at $228,000 by City Council on June 16, 2015 as part of the 2015/16 NCIP Cycle through Resolution No. 15-117. City Council rescinded $30,000 from the project on April 21, 2020 through Resolution No. 20-051, appropriated $50,000 to the project on July 19, 2022 through Resolution No. 22-093, and then appropriated $15,000 to the project on September 19, 2023 through Resolution No. 23-105.

Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 6, Packet Page 131 №11/25
Numerous City staff have worked on this project over the years completing the Mar Vista Traffic Calming Plan update in March, 2023 which was adopted by City Council on April 2, 2024 through Resolution No. 24-041. City staff have also engaged with the neighborhood to design numerous traffic calming plans along the Mar Vista Dr. and Soledad Dr. corridor within the neighborhood with particular attention to the intersections at Mar Vista Dr. and Toda Vista, Mar Vista Dr. and Via Gayuba, and Soledad Dr. and Soledad Dr. Unfortunately, City staff are currently unable to complete the design phase of the project due to lack of support from adjacent property owners and residents along Mar Vista Dr. that would lose parking in front of their properties if the City were to implement the traffic calming plans including curb extensions and street narrowing. The NCIP Policies and Procedures Manual requires support from the owners of adjacent or affected owners and residents, and without their support this project is not feasible.

The Via Paraiso Expression Swings Project was originally nominated to the NCIP Committee in 2020. However, no NCIP projects were adopted or funded in 2020 due to the COVID-19 emergency. The NCIP Committee considered and voted on the project in the 2022/23 NCIP Cycle, and the project received 90 votes. This placed the project at Number 15 on the Committee’s recommendations to City Council. On September 20, 2022, City Council adopted the Via Paraiso Expression Swing project and approved $30,000 in funding through Resolution No. 22-131. City staff began the work to site and install an expression swing at Via Paraiso Park in February 2023. Unfortunately, staff was not able to install the expression swing because there was not sufficient space in the playground area at the park due to the longer travel path than a traditional swing. Given the site constraints, this project was determined to be infeasible.

The Casanova Ave, 500 Block Sidewalk Project was originally nominated to the NCIP Committee in 2020. However, no NCIP projects were adopted or funded in 2020 due to the COVID-19 emergency. The NCIP Committee considered and voted on the project in the 2022/23 NCIP Cycle, and the project received 74 votes. This placed the project at Number 31 and the first Cut-Off Project on the Committee’s recommendations to City Council. On September 20, 2022, City Council adopted the Casanova Ave, 500 Block Sidewalk project as one of five cut-off projects through Resolution No. 22-131. The cut-off projects were not funded at this time. The Casanova Ave, 500 Block Sidewalk project was funded at $260,000 in May 2023.

Both City staff and the Del Monte Grove-Laguna Grande NCIP Representative have made numerous contacts with the owner of the property on the north side of the 500 Block of Casanova Ave. The property owner does not support the installation of the sidewalk since it may interfere with their plans to develop the property in the future. The Del Monte GroveLaguna Grande NCIP Representative most recently contacted the property owner in advance of the April 16, 2025 NCIP Committee Meeting in order to report back to the NCIP Committee. The NCIP Policies and Procedures Manual requires support from the owners of adjacent or affected owners and residents, and without their support this project is not feasible.

The Mar Vista Conduit Installation Project was originally nominated to the NCIP Committee in 2019. The NCIP Committee considered and voted on the project in the 2019/20 NCIP cycle, and the project received 77 votes. This placed the project at Number 39 on the Committee’s recommendations to City Council. On October 15, 2019, City Council adopted the Conduit Installation Pilot Project and approved $250,000 in funding through Resolution No. 19-166. The project was closed-out with the funds de-appropriated on April 21, 2020 through Resolution No. 20-051. The project was then reintroduced to the NCIP Committee for consideration in the Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 7, Packet Page 132 №11/25
2023/24 NCIP cycle where the NCIP Committee considered and voted on the project. It received 99 votes in 2023 and was ranked number 22 on the Committee’s recommendations to City Council that year. On October 17, 2023, City Council adopted the project and approved $250,000 in funding through Resolution No. 23-122.

In the 2024/25 NCIP cycle there were two utility undergrounding nominations, one from City staff and one from residents in the City that strongly support utility undergrounding. These two nominations were combined and the NCIP committee considered the combined nomination. The 2024/25 utility undergrounding project received 142 votes and was ranked number 2 on the Committee’s recommendations to City Council. On November 19, 2024, City Council adopted the Utility Undergrounding Program Project and appropriated $2,000,000 in funding through Resolution No. 24-179. The submitters of the Mar Vista Conduit Installation Project requested the project funds be combined with the Utility Undergrounding Project (ncp2502).

City staff presented these projects to NCIP Committee on April 16, 2025 with the recommendation to close-out the four projects. The NCIP Committee concurred with staff’s recommendation with a unanimous vote.

Approve Funding to Cut-Off Projects from the Approved FY2024/25 NCIP Project List On November 19, 2024, City Council returned the Bike Repair Station project to the NCIP Committee to identify the proposed locations for the bike repair stations and to better define the contents/tools contained on the bike repair stations if any.

During the NCIP Committee meeting on December 11, 2024, the NCIP Committee passed a motion for the scope to be revised and presented for consideration. During the NCIP Committee meeting on February 5, 2025, NCIP Committee discussed the options of the project with or without tools, or not to move forward with the project at all. The NCIP Committee decided to return the project nomination to the original submitter for feedback on rescoping and passed a motion to agendize the item for discussion at the next NCIP Committee meeting. During the February 19, 2025, NCIP Committee meeting, the NCIP Committee passed a motion to move forward with a single bike repair station along the Recreation Trail with tools as a trial case.

City staff presented to the NCIP Committee the two potential locations for placing one bike repair station on the Recreation Trail within Fisherman’s Shoreline Park near Sister City Park or the Coast Guard Pier and one bike repair station on the Recreation Trail within Window on the Bay Park near the whale play structure or the sand volleyball courts. Examples of bike repair stations were identified in publicly available catalogs such as The Park and Facilities Catalog (theparkcatalog.com). Examples of bike repair stations reviewed included the Dero Fixit Plus, Bike Public Work Stand, and RepairSTAN – Bike Repair Station. As an example of bike repair station options and pricing, the Fixit Plus Bike Repair Station varies in price from approximately $1,400 without a bike pump to approximately $2,200 with a connected bike pump to $2,700 with a separate bike pump option (Attachment 2).

There was significant discussion about the pros and cons of the bike repair stations amongst the public and NCIP Committee members over the course of the four NCIP Committee meetings in December 2024, February 2025, and April 2025. Discussion including whether to include tools or not, whether it made sense to have a bike rack without any tools or if the decision was to not supply tools for the bike rack whether it made sense to pursue the bike rack project at all.

On April 16, 2025, the NCIP Committee reached a unanimous decision to install one bike repair Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 8, Packet Page 133 №11/25
station with tools within the Windows on the Bay Park with the installation location to be selected by the Parks and Recreation Department.

The NCIP Opportunity Property Purchasing project was closed-out with $502,462 in funding appropriated by City Council in April 2020 in Resolution No. 20-051.

The project was reevaluated in Fiscal Year 2024/25 NCIP Cycle and received enough votes to place it on the proposed cut-off projects list with a recommended funding level of $250,000. On November 19, 2024, the City Council returned the project to the NCIP Committee with the other Proposed Cut-Off Projects.

During the April 16, 2025 NCIP Committee meeting, the NCIP Committee discussed the need to have funds available to purchase properties when the opportunity presents itself. These properties for example could then be made available for parks in neighborhoods that do not have them currently. The NCIP Committee passed a motion unanimously to recommend NCIP Opportunity Property Purchasing Project to City Council for Approval of Funding for a location to be determine at a later time when available.

Authorize the Finance Director to Appropriate Funding from the NCIP Contingency (31ncont) and NCIP Unappropriated Funds (31nunap) Accounts to Various NCIP Projects The Virgin Ave DG Path Widening project was approved by City Council on October 17, 2023 as part of the Fiscal Year 2023/24 Neighborhood and Community Improvement Program and was funded at $50,000 (Resolution No. 23-122).

The original project description was to widen the existing decomposed granite (DG) path along Virgin Avenue between Grant Avenue and Montecito Avenue for pedestrians and bicycles.

There are existing concrete sidewalks along Virgin Avenue to the northwest and southeast with existing concrete curb ramps. Therefore, staff recommends installing approximately 370 feet of concrete sidewalk to match the existing neighborhood sidewalks along Virgin Avenue.

On April 16, 2025, the NCIP Committee discussed this project and the City staff recommendation of a sidewalk along Virgin Avenue. The Committee recognized the importance of completing this project and voted unanimously to recommend City Council approve an additional $16,000 of funding. Since the NCIP Committee meeting the cost estimates have been refined and updated to account for contingencies and soft costs. Staff recommends an additional $25,000 of funding in order to fully cover final estimated project expenses.

As of May 5, 2025, the remaining balance for this project is $22,800, and it is not sufficient to fund the construction work. The current balance of the NCIP Contingency is $794,514.20.

Therefore, sufficient funding is available to fund this request.

Fire Stations are critical infrastructure that support the community and fire department needs, provide emergency response, and house critical equipment. They are staffed 24/7 by Fire Department staff. Fire Station 12 (New Monterey) was originally built in 1951 and serves the New Monterey, Cannery Row, and the Coast Guard Pier and supports the larger network as necessary. During the NCIP nomination review process during the Fiscal Year 2024/2025 cycle, City staff recommended a budget of $1,050,000 for Fire Station 12 renovations based on information that was available at the time. The items requiring repair and rehabilitation scoped at the time included:

Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 9, Packet Page 134 №11/25
 Roof Repairs
 Termite Treatment
 Concrete Slab Issues in the Truck Bay
 Replace the Emergency Generator
 Upgrade the Communication System
 Replace Exterior Windows
 Replace HVAC System
 Replace Exterior Deck
 Kitchen Remodel
 Restroom and Shower Remodel
 Interior Paint
 New Interior Flooring
 New Domestic Hot Water Heater
 Lighting Upgrade
 Resurface Parking Lot
Based on project refinement and detailed cost estimates developed by City of Monterey’s consultant, Ausonio, the revised estimate to complete the full scope of work for Fire Station 12 is $1,950,000. Therefore, an additional authorization of $900,000 is required.

On June 11, 2025, the NCIP Committee received a presentation on the status of Fire Stations 12 and 13 Rehabilitation project with a focus on the rehabilitation work planned for Fire Station

12. Following the presentation and discussion between NCIP Committee members and public comment, the NCIP Committee passed a motion to recommend City Council authorize the Finance Director, or their designee, to appropriate $900,000 to the Fire Station 12 and 13 Rehabilitation project unanimously.

Fire Stations 12 and 13 Rehabilitation Funding Request
Fire Station 12 Original Estimate $1,050,000
Fire Station 13 Original Estimate $1,200,000
Requested Contingency Appropriation (31ncont) $700,000
Requested Unappropriated Funds Account (31nunap) $200,000 Fire Stations 12 and 13 Rehabilitation Total $3,150,000 City staff is requesting that an additional funding of $700,000 from the Contingency Account (31ncont) and $200,000 from the Unappropriated Fund account (31nuap) be transferred into the Fire Station 12 and 13 Rehabilitation Project (ncp2506) as recommended by the NCIP Committee.

AR/pl
Attachments: 1. Resolution

2. Fixit Plus Bike Repair Station Brochure
e: Hans Uslar, City Manager
Nat Rojanasathira, Assistant City Manager
Rafaela King, Finance Director
Kimberly Cole, Community Development Director
Shannon Leon, Recreation Manager
Levi Hill, Planning Manager
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 10, Packet Page 135 №11/25
Christy Sabdo, Associate Planner
Wendy Davies, Finance Manager
Chinyere Ogbonna, NCIP Chair/Spokesperson
Dennis Duke, NCIP Vice Chair/Alternate Spokesperson
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 11, Packet Page 136 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
CLOSING FOUR (4) NEIGHBORHOOD AND COMMUNITY IMPROVEMENT PROGRAM (NCIP) PROJECTS, APPROVING FUNDING TO CUT-OFF PROJECTS FROM THE APPROVED FY2024/25 NCIP PROJECT LIST, AND AUTHORIZING THE FINANCE DIRECTOR TO APPROPRIATE FUNDING ***NCIP***
WHEREAS, City Council appropriated $228,000 for the Mar Vista Reconstruction Design (35n1616) on June 16, 2015 as part of the 2015/16 NCIP cycle (Resolution No. 15-117), rescinded $30,000 from the project on April 21, 2020 (Resolution No. 20-051), appropriated $50,000 to the project on July 19, 2022 (Resolution No. 22-093) and then appropriated $15,000 to the project on September 19, 2023 (Resolution No. 23-105); WHEAREAS, City Council appropriated $30,000 for the Via Paraiso Park Expression Swings Project (nip2315) on September 20, 2022 (Resolution No. 22-131); WHEREAS, City Council adopted the NCIP cut-off project, Casanova Ave, 500 Block Sidewalk (nip2331) with a budget of $260,000 on September 20, 2022 (Resolution No. 22-131); WHEREAS, City Council appropriated $250,000 for the Mar Vista Conduit Installation (ncp2422) on October 17, 2023 (Resolution No. 23-122);
WHEREAS, City Council appropriated $2,000,000 for NCIP project ncp2502 – Underground Utilities Program on November 19, 2024 (Resolution No. 24-179); WHEREAS, the Mar Vista Conduit Installation Project submitters requested the project funds be combined with the Undergrounding Project (ncp2502); WHEREAS, the Neighborhood and Community Improvement Program Committee met on April 16, 2025 and unanimously voted to recommend that City Council close-out Mar Vista Reconstruction Design (35n1616), Via Paraiso Park Expression Swings Project (nip2315), and Casanova Ave, 500 Block Sidewalk (nip2331), and combine NCIP projects Monterey Vista Conduit Installation (ncp2422) and Underground Utilities Program (ncp2502); WHEREAS, the Virgin Avenue Decomposed Granite (DG) Widening project (ncp2415) was recommended to City Council by the NCIP Committee as part of the FY 2023/24 Neighborhood and Community Improvement Program;
WHEREAS, City Council appropriated $50,000 for the Virgin Ave Decomposed Granite (DG) Widening project on October 17, 2023 (Resolution No. 23-122); Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 12, Packet Page 137 WHEREAS, the Neighborhood and Community Improvement Program Committee met on April 16, 2025, and unanimously voted to recommend the City Council appropriate additional funding for the Virgin Avenue Decomposed Granite (DG) Widening project; WHEREAS, on August 12, 2023, the Planning Commission determined the Virgin Ave DG Widening project is consistent with the General Plan, Specific Plans, Area Plans, Master Plans, Coastal Plans, Traffic Calming Plans, and the Move Monterey Multimodal Plan; WHEREAS, the Fire Stations 12 and 13 Rehabilitation (ncp2506) project was recommended to City Council by the NCIP Committee as part of the FY 2024/2025 Neighborhood and Community Improvement Program;
WHEREAS, on November 19, 2024, City Council appropriated $2,250,000 for the Fire Stations 12 and 13 Rehabilitation project (Resolution No. 24-179); WHEREAS, on June 11, 2025, the Neighborhood Community Improvement Program Committee met and unanimously voted to recommend that City Council appropriate an additional $900,000 in funding for the Fire Stations 12 and 13 Rehabilitation project; WHEREAS, on August 13, 2024, the Planning Commission reviewed the ranked NCIP projects and confirmed the projects to be consistent with the General Plan, Specific Plans, Area Plans, Master Plans, Coastal Plans, Traffic Calming Plans, and the Move Monterey Multimodal Plan;
WHEREAS, on November 13, 2024, the Parks and Recreation Commission reviewed the proposed projects and determined that the recommended Parks and Recreation related projects to be consistent with the Parks and Recreation Master Plan; WHEREAS, on November 19, 2024, City Council reviewed and returned the bike repair station project to the NCIP Committee to identify proposed locations and better define the tools contained on the bike repair station if any;
WHEREAS, on April 16, 2025, the NCIP Committee unanimously voted to recommend one bike repair station with tools and pump to be placed within Windows on the Bay Park; WHEREAS, on April 16, 2025, the NCIP Committee unanimously voted to recommend establishing and funding an Opportunity Property Purchasing project; WHEREAS, as of July 3, 2025, the current balance of the NCIP Contingency (31ncont) account is $794,514 and the current balance of the NCIP Unappropriated Funds (31nunap) account is $605,819 for a combined total of $1,400,333, therefore sufficient funding is available for these actions;
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 13, Packet Page 138 WHEREAS, the City of Monterey Planning Office determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability;

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby authorizes the Finance Director, or their designee, to:

1. Close-out the Mar Vista Reconstruction Design (35n1616) and transfer all remaining funds to the NCIP End Balance Account (31nunap);

2. Clouse-out the Via Paraiso Park Expression Swings Project (nip2315) and transfer all remaining funds to the NCIP End Balance (31nunap) account;

3. Close-out the Casanova Ave, 500 Block Sidewalk Project (nip2331) and transfer all remaining funds to the NCIP End Balance (31nunap) account;

4. Close-out the Monterey Vista Conduit Installation Project (ncp2422) and transfer all remaining funds to the Undergrounding Utilities Program (ncp2502) account;

5. Establish a new NCIP project for the Opportunity Property Purchasing Project, a FY2024/25 Cut-Off Project, and authorize a transfer of $250,000 to the new NCIP project account from the NCIP End Balance (31nunap); and

6. Establish a new NCIP project for the Recreation Trail Bike Repair Station Project, a FY2024/25 Cut-Off Project, and authorize a transfer of $3,000 to the new NCIP project account from the NCIP End Balance (31nunap).

7. Transfer $25,000 of additional funding from the NCIP Contingency (31ncont) account to the Virgin Avenue Decomposed Granite (DG) Path Widening Project (ncp2415); Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 14, Packet Page 139

8. Transfer $700,000 of additional funding from the NCIP Contingency (31ncont) account to the Fire Stations 12 and 13 Rehabilitation Project (ncp2506); and

9. Transfer $200,000 of additional funding from the NCIP End Balance (31nunap) account to the Fire Stations 12 and 13 Rehabilitation Project (ncp2506).

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 15, Packet Page 140 ©2025
The Fixit Plus includes all the tools necessary to perform basic bike repairs and maintenance, from changing a flat to adjusting brakes and derailleurs. Stainless steel cables and tamper-proof fasteners securely attach tools to the stand, while the hanging arms allow pedals and wheels to spin freely while making adjustments. Add a second hanger for double sided access to the tools!
Fixit® Plus
Patents US 9,498,880 and 9,505,124
Additional patent pending
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 16, Packet Page 141 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending

FINISH OPTIONS
Galvanized Powder Coat
Black Light Gray
RAL 7042
Deep Red
RAL 3003
Yellow
RAL 1023
White
Hunter Green
RAL 6005
CNH Bright
Yellow
Orange
RAL 2004
Light Green
RAL 6018
Green
RAL 6016
Sepia Brown
RAL 8014 Bronze Silver
RAL 9007
Dark Purple Flat Black Wine Red
RAL 3005
Beige
RAL 1001
Iron Gray
RAL 7011
Fixit® Plus
Hanger arms
accommodate most
types of bikes
Large surface area for
sponsorship, branding, or
way-finding signage
Durable covers on
hanger arms protect
bikes from scratches
Add your choice of an Air Kit bike pump
(sold separately) to keep your cyclists’
tires topped up and ready to roll. The Air
Kits feature our Metal Head™, a sturdy cast
aluminum pump head with Presta and
Schrader valve compatibility.

Tools are secured with
stainless steel aircraft cables
QR code takes smart phone
users to comprehensive bike
repair web site
Includes most commonly
used tools for simple
bike maintenance
Tools included:
• Philips and flat head screwdrivers
• 2.5, 3, 4, 5, 6, 8mm Allen wrenches
• T25 Torx wrench
• 32mm Headset wrench
• 15mm Pedal wrench
• 8, 9, 10, 11mm box wrenches
• Tire levers (2)
These public bike repair products require
occasional maintenance and replacing of parts
to remain serviceable.

A cane-detectable attachment is
available for placement under the
bike hanger arms for improved safety. Tamper-resistant fasteners included! Add a second
hanger for double
sided access!
Orient arms to set the
preferred height for
hanging bikes
5”
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 17, Packet Page 142 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Submittal Sheet
56”

10.6”
Fixit with Air Kit Prime
Hanger height in upper
and lower positions
Fixit with Air Kit 4
CAPACITY 1 Bike (One set of hanger arms)
2 Bikes (Two sets of hanger arms)
MATERIALS Main body: 6” x 12g tube
Bike Hanger: 1” solid round bar
Foot: 10” dia. x .25” plate
Tool tethers: 3/16” stainless steel cable
Manual air pump
Hand tools:

Philips and flat head screwdrivers

2.5, 3, 4, 5, 6, 8mm Allen wrenches
T25 Torx wrench
32mm Headset wrench
15mm Pedal wrench
8, 9, 10, 11mm box wrenches
Tire levers (2)
FINISHES Galvanized
An after fabrication hot dipped galvanized finish is our standard option.

Powder Coat
Our powder coat finish assures a high level of adhesion and durability by following these steps:

1. Sandblast

2. Epoxy primer electrostatically applied

3. Final thick TGIC polyester powder coat
MOUNT

OPTIONS
Surface only
Fixit has 10” diameter x.25” foot with four anchors per foot.

Tamper-resistant fasteners are included.

PUMP

OPTIONS
No Pump
Air Kit Prime
Attached to Fixit
Separate
Air Kit 4
CANE
STOP
Add Cane Stop (Galvanized only)
90”
45”
18”
45”
36”
aisle
Minimum Footprint
12”
PUMP
An optional wheel catch
is available to hold bikes
with no kick stands
A cane-detectable attachment
beneath the hanger arms is
available for improved safety.
(Additional cost)
55”
50”
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 18, Packet Page 143 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Setbacks
50”
65”
65”
76”
18”
65”
Double
Sided Single
Sided
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 19, Packet Page 144 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Installation

RECOMMENDED BASE MATERIAL
Solid concrete is the best base material for installation. To ensure the proper anchors are shipped with your rack, ask your Dero Rack representative which anchor is appropriate for your application. Be sure nothing is underneath the base material that could be damaged by drilling.

TOOLS NEEDED
Hammer drill
3/8” masonry bit
Hammer
Socket Wrench
9/16”, 3/4” socket
Tamper-proof socket (included)*
Socket extension, 6” min.

Razor blade
Secure the Air Kit to the side of the Fixit Plus with the 3/8” threaded stud on the Air Kit and a bonded washer and lock nut inside the Fixit Plus.

If installing the optional cane stop, place the
attachment under the base of the Fixit Plus.

Reference the Fixit Plus setback recommendations and place the upright in the desired location. Use the base as a template to mark anchor locations and drill (4) 3/8” x 3” holes in the concrete with a hammer drill and masonry bit. Clean up all concrete dust from drilling.
(A) Lay the Fixit Plus on its side.
(B) Remove one 3/8” carriage bolt, lock nut, and washer. (C) The guard can then be pushed up and then pulled out.

Set the guard aside.

Re-attach the guard.
1 3
2 4
Be sure to save your tamper-resistant tools for any
future maintenance. They are costly to replace.

If you are not attaching an Air Kit Prime to your Fixit, proceed to step 4 A. B. C.
3/8”
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 20, Packet Page 145 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Installation
Hammer in the (4) 3/8” wedge anchors. Leave at least 1” inch of exposed threads above the concrete.

Select the orientation of the bike hanger and use a new razor blade to cut through the decal to reveal the corresponding slot in the Fixit Plus.

Add the 1/2” washer and 1/2” lock nut to the 1/2” x 6” carriage bolt. Insert the assembled hardware, headfirst, into the top of the Fixit Plus. The carriage bolt head will pass through the second plate hole and then slide sideways, so the carriage bolt engages the slot in both plates and bike hanger. Tighten the lock nut and repeat with the other side. If two bike hangers are used, the carriage bolt will also engage the second bike hanger under the second plate.

Place the Fixit Plus over the anchors, add washers and nuts, and tighten all nuts.
5 7 8
6 1” min.

First plate
Second plate
1 Hanger
2 Hangers
Use (2) of the provided
tamper-resistant nuts to
anchor the station (and
pump if applicable) to
the surface.

ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 21, Packet Page 146 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Installation
Insert the tool cables into the cable slot in the Fixit Plus upright. Place the top cap on the Fixit Plus and insert the (2) 3/8” x 7” carriage bolts through the top cap, first plate, and second plate of the Fixit Plus. Secure the carriage bolts with washers and nuts. The Penta nut goes over the hole the tool cables were inserted into. 9 10
Put Your Station on the Map!
If you would like us to add your station to our online map, email the station’s geocoordinates to [email protected]. These coordinates can be obtained by simply clicking a point on a Google Map.
http://www.dero.com/fixitmap/fixitmap.html
16”
36” 36”
4”
Slab
36” X 36” X 4” depth
Footing
16” diameter
X 36” depth
Concrete foundation
recommendations
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 22, Packet Page 147 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Installation Cane Stop
A
A 3/8” x 3” Wedge Anchors B Cane Stop
x2
B
See diagrams below for guidance on installing the optional Cane Stop. This attachment provides a cane-detectable barrier beneath the hanger arms of the Fixit for improved safety. 3/8” wedge anchors
included with
standard Fixit Plus
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 23, Packet Page 148 ©2025 Patents US 9,498,880 and 9,505,124. Additional patent pending Fixit® Plus Maintenance
NOTE
All threads for all parts of the pump are right-hand threads. They tighten clockwise, and loosen counter-clockwise (“righty tighty, lefty loosey”). However, when you are looking top-town at a bolt that threads from underneath, if you move it counter-clockwise from your point of view, you are actually tightening, not loosening, the nut! This has led to some unnecessary breakage of pump parts. Be sure you are looking at the nut with the proper orientation before tightening or loosening.

REMOVING THE AIR KIT FROM THE FIXIT PLUS

REPLACING TOOLS
Remove the 3/8” nut and penta tamper-proof nut from the underside of the top cmpartment and lift out the carriage bolts. These are all best removed with a socket wrench, using the extension tool to enable you to reach the nuts.

Add or remove tools by sliding the tool cables through the hole at the end of the cable slot in the Fixit Plus upright.

Remove nut attaching the Air Kit to the side of the Fixit Plus. (A) Lay the Fixit Plus on its side. (B) Remove one 3/8” carriage bolt, lock nut, and washer. (C) The guard can then be pushed up and then pulled out.

Set the guard aside.
1 2
2 A. B. C.
1 ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 7., Item Page 24, Packet Page 149 Council
Agenda Report
№11/25
FROM: Thys Norton, Park Operations Manager
Prepared By: Scott Connolly, Cemetery Coordinator
SUBJECT: Authorize the City of Monterey Cemetery El Encinal to Buy Back Cemetery Lot 9 in Block 268 for $2,872.75 Payable to Mr. Ron Cota (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) RECOMMENDATION:

That the City Council adopt a resolution authorizing the City of Monterey Cemetery El Encinal to buy back
Cemetery Lot 9 in Block 268 for $2,872.75 payable to
Mr. Ron Cota.

VALUE DRIVERS:

In collaboration with our community partners, work to
improve the quality of life of all of our community
members by fostering diversity, equity, and inclusion;
championing equitable access to affordable housing;
and maintaining a safe environment.

Serve as stewards of the City’s financial resources
through sound economic vitality efforts, streamlining
operations, reasonable revenue enhancements,
visionary long-term planning, fiscal transparency, and
community partnerships.

POLICY IMPLICATIONS:

No new policy implications are associated with this
transaction.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: Yes.

FISCAL IMPLICATIONS:

The current policy is to buy back a lot for 50% of the current lot sales price or issue a full refund of the original purchase price, whichever is greater. Here, the current lot purchase price is $5,745.50 and 50% of that amount is $2,872.75
By refunding the purchase amount, this lot would then be returned to inventory to be resold at the current market price including endowments and burial fees.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the Agenda Report Highlights
 The City of Monterey Cemetery El
Encinal plans to buy back Cemetery
Lot 9 in Block 268 for $2,872.75
from Mr. Ron Cota.
 The buyback policy ensures either a
refund of the original purchase price
or 50% of the current lot sales price,
whichever is greater.
 The lot will be returned to inventory
and resold at the current market
price, generating future revenue for
the Cemetery Fund.
 Choosing not to buy back the lot
could result in lost revenue and
prolonged unoccupancy.

Date: 8/5/2025
Item No.: 8.

Council Regular Meeting, 8/5/2025, Item No. 8., Item Page 1, Packet Page 150 №11/24
California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council could choose not to buy back the one (1) cemetery lot. This alternative is not recommended because the City could resell this one lot at the current market price including any burial costs for additional revenue to the City. Additionally, this lot could remain unoccupied for many years to come if not repurchased and resold, thus losing potential revenue for the Cemetery Fund.

DISCUSSION:

The Cemetery received a letter from Mr. Ron Cota requesting the City to buy back one (1) individual lot that is unoccupied in the amount of $2,872.75. If approved by Council, this lot would be placed back into the inventory to be resold. Revenue from a future purchase of these lots would be then included into the Cemetery Fund at the current market rate.

Therefore, staff recommends that the City Council adopt a resolution authorizing the City of Monterey Cemetery El Encinal to buy back Cemetery Lot 9 in Block 268 for $2,872.75 payable to Mr. Ron Cota.

TN/sc
Attachments: 1. Resolution

2. Letter dated June 26, 2025 requesting buy back
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 8., Item Page 2, Packet Page 151 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24

AUTHORIZING THE CITY OF MONTEREY CEMETERY EL ENCINAL TO BUY BACK CEMETERY LOT 9 IN BLOCK 268 FOR $2,872.75 PAYABLE TO MR. RON COTA WHEREAS, the City received a request to repurchase one (1) cemetery lot that is no longer needed;
WHEREAS, the current policy is to buy back a lot for 50% of the current lot sales price or issue a full refund of the original purchase price, whichever is greater. Here, the current lot purchase price is $5,745.50 and 50% of that amount is $2,872.75; WHEREAS, by refunding the purchase amount, this lot would then be returned to inventory to be resold at the current market price including endowments and burial fees; WHEREAS, this lot could remain unoccupied for many years to come if not repurchased and resold, thus losing potential revenue for the Cemetery Fund, and, WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby authorizes and directs the City of Monterey’s Cemetery El Encinal to buy back Cemetery Lot 9 in Block 268 for $2,872.75 payable to Mr. Ron Cota.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Council Regular Meeting, 8/5/2025, Item No. 8., Item Page 3, Packet Page 152 APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 8., Item Page 4, Packet Page 153 • June 26, 2025
City of Monterey
Cementerio El Encinal
798 Fremont Street
Monterey, CA 93940
RE: Buy Back Lot 9 in Block 268
Dear Mr. Connolly,
The plot listed above was originally purchased by my brother, former City ernployee Richard Cota, in 1987 and l.(pon his passing I am now the successor Trustee of his estate. Seeing no cause to use this burial site in the future. I am requesting the City of Monterey Cemetery buy back lot 9 in block 268.

Since the. lot has appreciated in value over the years, I would ask the City for a fair market price for the unused burial site. I can be reached at the address below for further questions.

Respectfully,
-Ron'c.R =
P.O. Box 22371
Carmel. CA 93922
ATTACHMENT 2
Council Regular Meeting, 8/5/2025, Item No. 8., Item Page 5, Packet Page 154 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Ted Terrasas, REHS, Sustainability Manager SUBJECT: Receive an Update and Provide Direction to Staff on the Development of 2025 Climate Action Plan (CAP) (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the Council receive a presentation and provide
comment and direction on the development of the 2025
CAP.

VALUE DRIVERS:

Protect and preserve our natural environment by
addressing climate change through ecologically
responsible and pragmatic solutions.

POLICY IMPLICATIONS:

The City of Monterey completed a CAP in 2016 and
planned to provide periodic updates to ensure that the City continued to achieve greenhouse gas emission reduction
goals. In the updated CAP, the City will target goals set by the State through Senate Bill 32, requiring 40 percent
GHG emission reduction below 1990 levels by 2030 and
Assembly Bill 1279, requiring carbon neutrality by 2045.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The City is working with Rincon Consultants Inc., to
update the CAP. This was budgeted at $238,272 as part of the Planning Office budget to implement a required
General Plan Amendment EIR mitigation measure
resulting from the Land Use, Housing and Safety Elements adopted in July 2024
ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed
action is not a project as defined by the California
Environmental Quality Act (CEQA)(CCR, Title 14, Chapter Agenda Report Highlights
 The City of Monterey is updating its
Climate Action Plan (CAP) for 2025
to align with state legislative goals
for GHG emissions reduction and
carbon neutrality.
 Key activities for the CAP update
include emissions inventory,
forecasting, strategy development,
and community engagement, with
several tasks already completed or
in progress.
 Draft measures focus on major
emission sectors: building energy,
transportation, solid waste, and
carbon sequestration, aiming to
address the city's GHG reduction
targets effectively.
 Council feedback is sought on draft
measures, target goals, and missing
strategies to refine the CAP before
public review.
 The CAP update involves
collaboration with Rincon
Consultants Inc., ensuring
compliance with environmental
regulations and mitigation
measures.

Date: 8/5/2025
Item No.: 9.

Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 1, Packet Page 155 №11/24
3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability
ALTERNATIVES CONSIDERED:

No alternatives were considered.

DISCUSSION:

Background
The City of Monterey developed a Climate Action Plan (CAP) in 2016 to lay out the City’s approach to a global environmental challenge. The 2016 CAP consisted of a 2005 GHG emissions inventory, a 2012 GHG emissions inventory, and existing and planned GHG emissions reduction strategies for both the community (geographic) and government (municipal) operations.

This year, the CAP for 2025 will be updated, incorporating an updated GHG emissions inventory, forecasts, and target information. The update will also include new GHG emissions reduction strategies that build on previous successes and enhanced community engagement to support Monterey in achieving the community’s identified climate goals. 2025 CAP Update – Work Status
An overview of the CAP Update was presented at a City Council meeting in April of 2025.

During the July Council meeting, the status of key activities will be presented. A summary includes:

1. Emissions Inventory (2023), which has been updated for consistency when compared to previously completed inventories in 2005 and 2012 – COMPLETE

2. GHG emissions forecast to 2045 and back-cast to 1990 – COMPLETE

3. GHG emissions reduction targets that align with the key California legislative emissions goals – COMPLETE

4. Develop strategies, measures, and actions that support Monterey achieving the emissions targets – DRAFT COMPLETE

5. Quantify the emissions reductions from the outlined strategies, measures, and actions –

DRAFT COMPLETE

6. Provide tracking capability for the City to monitor progress – IN PROGRESS Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 2, Packet Page 156 №11/24

7. Develop and execute an extensive engagement plan, incorporating community members including low income/disadvantaged members (LIDACs), local government, business owners, tourists, climate organizations, and other stakeholders to review ideas and developed measures/actions – IN PROGRESS

8. Draft the CAP for public review before the final is released – IN PROGRESS The results of the completion of these activities will be shared Council to garner feedback, align with goals, and understand and facilitate any potential changes in direction.

Draft GHG Emissions Measures and Actions
Draft Measures and Actions have been developed based on City staff input, community feedback, and best practices for reducing GHG emissions to address the emissions reductions targets identified in the forecast and target report. Attachment 1 provides an overview of the development process for Measure and Actions, including draft Measure language and a description of the key attributes used to guide the development of supporting Actions.

Specifically, in Attachment 1 includes the language and targets of the draft Measures encompassing the following communitywide emission sectors:
 Building Energy, including electrification
 Transportation, including zero emissions vehicles (ZEVs)  Solid Waste, including organics diversion
 Carbon Sequestration, including land management.

These sectors contribute the most to Monterey emissions and, therefore, the measures and actions in these areas will be the most effective towards meeting the GHG reduction goals for the City.

City Council Feedback Sought
Staff requests that the Council review and comment on the provided material in Attachment 1 regarding Measure and Action development and the draft Measure language. The purpose of the review would be to understand any red flags, priorities, and/or anticipated challenges concerning the draft Measures and proposed targets that could be identified at this time.

Specifically, staff would like to clarify the following questions:
 Are there any concerns about the identified attributes to guide the development of actions supporting the Measure?
 Are there any concerns about the drafted Measures or target goals set?  Are there any types of measures or strategies that are missing from the sectors that need to be addressed?
Feedback from Council will be incorporated into the Administrative Draft of Measures and Actions and the GHG emission reduction potential for the Measures will be quantified. The list of Measures and Actions, quantified emission reduction potential, and draft implementation plan will be completed as part of the CAP Update Draft.

Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 3, Packet Page 157 №11/24
Once the CAP Update document is complete, a period of public comment will be established this Fall.

TJT
Attachment: 1. Draft GHG Reduction Measures List
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 4, Packet Page 158 Draft GHG Reduction Measures List
City Council Agenda Attachment
1 Monterey City Climate Action Plan
Draft GHG Emissions Reduction Measures
1 Introduction
The State of California, through the California Air Resources Board (CARB) has established Statewide greenhouse gas (GHG) emissions reduction goals to mitigate negative climate change impacts and transition the State to a low-carbon economy. Local governments play a fundamental role in reducing local GHG emissions and preparing for a more resilient future. The City of Monterey is updating their Climate Action Plan (CAP) to evaluate the GHG reduction progress to date and to develop new reduction measures to proactively address climate change, enhance community resilience, and align with California’s climate goals.

To maintain consistency with State targets, Monterey has developed the following provisional GHG emissions reduction targets:
o Reduce GHG emissions to 40 percent below 1990 levels by 2030 (Senate Bill 32 target year) o Make substantial progress towards carbon neutrality by 2045 (Assembly Bill 1279 target year)1
With GHG emission reduction targets in place, the communitywide GHG emissions reduction gap for which Monterey will be responsible through local action can be calculated. The gap between Monterey’s GHG emissions reduction gap is based on the difference between the forecasted GHG emission levels in the community and the established GHG emission reduction targets. Figure 1 provides a visual representation of forecasted future GHG emissions along with the effects of established State legislation and the remaining gap for which Monterey will be responsible to meet the GHG emission reduction targets. As shown, in 2030, it is forecasted that the community of Monterey will generate 320,784 metric tons of CO2 equivalents (MT of CO2e).To reach a reduction target of 40% below 1990 levels a total of 64,204 MT of CO2e emissions will need to be reduced by 2030 through local action. To reach carbon neutrality by 2045 the community will need to reduce a total of 271,872 MT of CO2e.
1 AB 1279 defines net zero GHG emissions as reducing GHG emissions at least 85 percent below 1990 levels. California also set a goal to reach 1990 levels by 2020, as established by AB 32, The 2020 goal set by AB 32 was achieved by the State in 2016. CARB. Frequently Asked Questions – California’s 2022 Climate Scoping Plan. https://ww2.arb.ca.gov/sites/default/files/2022- 06/2022_Scoping_Plan_FAQ_6.21.22.pdf
ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 5, Packet Page 159 Draft GHG Reduction Measures List
City Council Agenda Attachment
2 Figure 1 GHG Emissions Forecast and Provisional Target Pathways (Mass Emissions) Request to City Council: Please identify any questions or concerns about the provisional GHG emissions reduction targets.
2 Overview of Measures and Actions
Achieving established GHG reduction targets will require major shifts in how communities within California obtain and use energy, transport themselves and goods, and how the population lives and builds. The GHG emissions reduction measures and actions establish the basis of the Monterey CAP.

GHG Reduction Measures identify specific strategies designed to mitigate GHG emissions from each sector of the community GHG Inventory. To reach the large GHG emission reductions necessary to meet the targets, strategies to reduce GHG emissions are focused on the largest contributing sectors. Figure 2 provides a high-level summary of Monterey’s 2023 inventory by sector to demonstrate the level each sector contributes to the communitywide GHG emission profile and provides context for the sectors which GHG emission reduction measures are developed around.

ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 6, Packet Page 160 Draft GHG Reduction Measures List
City Council Agenda Attachment
3 Baseline emissions from 2023: 349,876 MT CO2e
Figure 2 GHG Emissions Inventory by Sector
Sectors, Measures & Actions
A single measure generally addresses a subsector or represents an incremental step towards reducing GHG emissions in an overall sector. For example, three measures may be established under the transportation sector to address active transportation, shared transportation, and fossilfuel powered passenger vehicles. GHG Reduction Actions identify the supportive programs, policies, financial pathways, and other commitments that together implement a measure. Measures and actions are organized according to the following hierarchy:

1. Sectors: Sectors define the GHG emissions category in which the GHG reduction will occur. The sectors align with the GHG inventory which details the community GHG emissions associated with the same specific sectors. The sectors include:
• Building Energy
• Transportation
• Solid Waste
• Water and Wastewater
• Carbon Sequestration

2. Measures: Measures are developed under each sector and identify measurable emphasis and metrics to reduce GHG emissions within the sector. Measures are developed pursuant to the community GHG Inventory and Forecast and in line with the U.S. Community Protocol and the California Air Resources Board (CARB) 2022 Climate Change Scoping Plan.

3. Actions: Actions identify the individual programs, policies, funding pathways, and other specific commitments that will be implemented within the region to achieve the established measures.

Each measure contains a suite of actions, which together have been designed to accomplish the measure goal and metrics.

Measures and actions can be either quantitative or supportive, defined as follows:

ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 7, Packet Page 161 Draft GHG Reduction Measures List
City Council Agenda Attachment
4 ▪ Quantitative: Quantitative measures and actions result in quantifiable GHG emissions reduction when implemented. GHG emissions reduction from these measures and actions are supported by case studies, scientific articles, calculations, or other third-party substantial evidence.
▪ Supportive: Supportive measures and actions may also be quantifiable and have substantial evidence to support their overall contribution to GHG reduction. However, due to one of several factors – including a low/no GHG reduction benefit, indirect GHG reduction benefit, or potential for double-counting– they have not been quantified and do not contribute directly to the expected GHG emissions reduction target and consistency with the state goals. Despite not being quantified, supportive measures and actions are nevertheless critical to the overall success of the CAP and provide support so that the quantitative measures and actions will be successfully implemented.

Figure 3 provides a visual representation of the structure of Measures and Actions within the CAP.

Figure 3 Measure, Goal, and Action Structure
3 Key Measure Attributes
In general, measures are designed to encompass six key attributes that are essential to implement effective climate policy. Together, these key attributes have been identified to be specific to community impact areas that together will activate or guide the buildout of actions for each measure. In general, the actions under a single measure should collectively address all the key pillars. The suggested key attributes are:

ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 8, Packet Page 162 Draft GHG Reduction Measures List
City Council Agenda Attachment
5 Structural Change: Actions that establish a program, policy, or ordinance to allow us to reach the goal or metric within a measure.

Feasibility Study: Actions that help provide an understanding of the details, obstacles, feasibility, or implementation of a program (e.g., analysis necessary to identify the best path or the feasibility of implementing a specific measure).

Partnership: Actions that establish partnerships with community-based organizations or agencies that are well-positioned to help with the implementation of a measure's actions through their expertise, resources, and networks.

Engagement: Actions that foster community buy-in, promote the existence of programs, policies, and ordinances, and educate interested parties (e.g., educational events or materials).

Equity: Actions that engage underserved communities in the decision-making process and establish policies and programs to provide equal access to benefit from each measure’s objectives and avoid inequitable burdens or cost across a community.

Funding: Actions that access the financial backing to establish, implement, and maintain programs (e.g., grants or rebates that help pay for the implementation of a measure, funding to adequately pursue and staff the program).

Request to City Council: Please identify any questions or concerns about the identified attributes to guide the development of actions supporting the Measure. 4 Measures and Actions
Given the primary sectors contributing to Monterey communitywide emissions (shown in Figure 2), there are a few key strategies that will be most impactful at meeting Monterey’s GHG emission targets. Figure 4 provides a high-level summary of these key strategies.

Figure 4 Key Strategies to Reduce Communitywide GHG Emissions ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 9, Packet Page 163 Draft GHG Reduction Measures List
City Council Agenda Attachment
6 At this time, measures and actions have been drafted based on best practices to achieve GHG emission reductions from the 2023 Baseline GHG Emissions Inventory that was used to develop Monterey’s GHG Forecast. Specific measure goals for GHG reduction have been drafted based on input gathered from City staff and the community. At this time feedback from the community has been received through in-person workshops, pop-events, and on-line surveys. Measure and action development is an iterative process and the measures and actions will continue to be adjusted to address ongoing community feedback and input from the City Council.

Table 1 provides a summary of the draft measures under each sector. Please note that this is a list of just the draft measures, each measure will be supported with a series of actions that provide the stepping stones to achieve each measure goal. Provisional measure goals are highlighted in yellow in the table below.

Request to City Council: Please identify any questions or concerns about the drafted measures.

ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 10, Packet Page 164 Draft GHG Reduction Measures List
City Council Agenda Attachment
7 Table 1 Monterey City CAP GHG Emissions Reduction Measures List Measure ID Measure Text
Sector: Building Energy
Measure BE-1 Achieve a 95% community enrollment in carbon-free and renewable energy sources by 2030.

Measure BE-2 Develop a City-wide Existing Building Decarbonization Program.

Measure BE-3 Decarbonize new residential construction by 95% by 2030 and 100% by 2045.

Measure BE-4 Decarbonize new nonresidential construction by 85% by 2030 and 100% by 2045.

Measure BE-5 Decarbonize existing residential buildings by 10% by 2030 and XX% by 2045.

Measure BE-6 Decarbonize existing nonresidential buildings by 5% by 2030 and XX% by 2045.

Measure BE-7 Increase micro-grids and energy storage across the City to enhance local electrical reliability, grid capacity, and facilitate City decarbonization.

Sector: Transportation
Measure T-1 Implement programs to increase active transportation mode share from 2% to 5% by 2030 and to XX% by 2045.

Measure T-2 Implement programs that increase public transportation mode share from 0.1% to 2% by 2030 and to XX% by 2045.

Measure T-3 Achieve ZEV adoption rates of 15% for passenger vehicles and 5% for commercial vehicles by 2030 and 100% for all vehicles by 2045.

Measure T-4 Develop a micro-mobility and/or car-share program to support mode shift from single occupancy fossil fuel vehicles to Zero Emission Vehicles or alternative transportation modes.

Measure T-5 Develop programs and policies to discourage driving single passenger vehicles and to support the bicycle/pedestrian and public transit mode share goals of Measures T-1 and T-2.

Measure T-6 Electrify or otherwise decarbonize 15% of off-road equipment by 2030 and 100% by 2045.

Sector: Solid Waste
Measure SW-1 Achieve and maintain SB 1383 requirements to reduce organic waste sent to landfills by 75% compared with 2014 levels by 2030.

Measure SW-2 Achieve and maintain SB 1383 procurement requirements of 0.08 tons recovered organic waste per person by 2030 and exceed requirement by 25% by 2045.

Sector: Water and Wastewater
Measure WW-1 Reduce per capita potable water consumption by 10% by 2030 and XX% by 2045 through the implementation of water conservation, climate-smart, and water recycling projects.

Sector: Carbon Sequestration
Measure CS-1 Increase carbon sequestration by developing a Citywide tree planting program, supported by local nurseries and utilizing native and climate smart species to plant 300 new trees by 2030.

Measure CS-2 Maintain and expand existing restoration projects to sequester carbon in restored lands.

Measure CS-3 Develop a land management program for city-owned property to explore opportunities for enhancing carbon sequestration.

ATTACHMENT 1
Council Regular Meeting, 8/5/2025, Item No. 9., Item Page 11, Packet Page 165 Council
Agenda Report
№11/25
FROM: Tyller Williamson, Mayor
Prepared By: Nat Rojanasathira, Assistant City Manager
SUBJECT: Authorize the Mayor to Sign a Letter and Submit Public Comment to the California Public Utilities Commission (CPUC) to Reconsider the Long-Term Water Demand Forecasts in the Proposed Decision for Application 21-11-024 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) – continued from July 23, 2025 RECOMMENDATION:

That the City Council authorize the Mayor to sign a letter and submit public comment to the California Public Utilities Commission (CPUC) to reconsider the long-term water demand forecasts in the proposed decision for application 21-11-024.

VALUE DRIVERS:

Champion regional and local efforts to secure adequate, affordable, and sustainable water sources for the city, now and into the future.

POLICY IMPLICATIONS:

It is within the City Council’s purview to weigh in on policy matters affecting the City of Monterey and to submit comments to State agencies such as the CPUC.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There is no cost associated with authorizing the Mayor to sign this letter and submit public comment to the CPUC.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, Date: 8/5/2025
Item No.: 10.

Council Regular Meeting, 8/5/2025, Item No. 10., Item Page 1, Packet Page 166 №10/24
this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

N/A
DISCUSSION:

The draft letter (attached) from Mayor Williamson to the California Public Utilities Commission (CPUC) requests a reconsideration of long-term water demand projections for Application 21- 11-024.

The Mayor will discuss the proposed letter with the City Council at its meeting. This item was continued from the special meeting on July 23, 2025 to the special meeting on August 5, 2025 a as a result of the CPUC’s continuation of the agenda item.

Attachment: Draft Letter
TW/nr
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 10., Item Page 2, Packet Page 167 DRAFT
July 23, 2025
California Public Utilities Commission
Alice Busching Reynolds, President
505 Van Ness Avenue
San Francisco, CA 94102
Re: Application 21-11-024 – Request for Reconsideration of Long-Term Demand Forecasts Dear President Reynolds and Commissioners:

On behalf of the Monterey City Council, I respectfully request that the California Public Utilities Commission reconsider the long-term water demand projections included in the proposed decision for Application 21-11-024. These projections—used to justify future water supply investments—must reflect the actual, evolving needs of our community, particularly as we work toward long-term housing, affordability, and environmental sustainability goals.

The City of Monterey is currently reevaluating how it uses its allocated water from the Pure Water Monterey (PWM) expansion project, which is expected to complete construction later this year. As part of this process, our staff has identified a number of legal lots of record where allocations were previously granted but are no longer valid—often because the original recipients have passed away or development is no longer feasible. These changes are not yet reflected in the broader demand projections. Additionally, new housing development not only consumes water, but also produces wastewater that can be treated and returned to the system through advanced water recycling like that used in the PWM program. However, the additional supply potential from this future wastewater has not been factored into the current demand modeling.

We want to acknowledge the performance of the PWM base project, which has consistently met its contractual delivery obligations every year since it came online and has even provided surplus water to regional reserves. With the completion of the current expansion, the Monterey Peninsula will have a reliable and climate-resilient water supply approaching 12,000 acre-feet per year. This capacity, paired with updated usage patterns that show current demand remaining under 9,000 AFY, supports a more moderate and flexible water planning outlook.

We are also deeply concerned about the affordability impacts of planning around inflated demand projections, particularly when they could lead to investments that significantly raise

ATTACHMENT
Council Regular Meeting, 8/5/2025, Item No. 10., Item Page 3, Packet Page 168