Monterey City Council
October 21, 2025

The City can review Tyler’s SLA options using the following link:
https://www.tylertech.com/portals/0/terms/public-administration/New-Public-Administration-Group-ClientsSaaS-Agreement.pdf g) Transition
i. Describe proposed exit strategy at contract end or termination In the event of termination of the SaaS Agreement, all application access is revoked. Upon reasonable advance notice, Tyler shall promptly make production data available to you in the format of the database or other such format as may be mutually agreed upon, provided through Tyler’s FTP server or such other secure method reasonably selected by Tyler. Such data will be provided at no additional cost. h) Response to Appendix A – ERP Requirements:
i. The City has included herein a copy of Appendix A – ERP Requirements in Microsoft Word format; to address this section, Proposers should use that file to respond to each requirementin Appendix A. Please see Appendix A for additional instructions.

Tyler has provided completed Appendix A on the following pages.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 88, Packet Page 121 City of Monterey Section 5 – Proposed Solution
ERP Procurement and Implementation Tyler Technologies, Inc.

Tyler System Specifications
Rev. 20210406
Tyler software-as-a-service (SaaS) solutions are subscription-based cloud applications running on AWS, the world’s most comprehensive and broadly adopted cloud platform. Applications are available securely from any internet connection, anywhere, anytime. Tyler Technologies manages all client hosting operations, including application upgrades and platform administration, providing clients with a single point of contact for all software and hosting needs.

Tyler Technologies applications are designed to operate on systems that meet specific requirements. Systems that do not meet the required specifications may not provide reliable or adequate performance, and Tyler cannot guarantee acceptable results.

Network Requirements
Bandwidth Requirements
Bandwidth usage can vary depending on application user type and daily functions; however, Tyler recommends 30 Kbps per concurrent user session for bandwidth utilization estimates Application Authentication
Tyler’s Identity solutions are foundational components for a zero-trust identity strategy that enables cloudbased authentication for Tyler application users, regardless of location, device, or network. Tyler’s Identity Workforce and Identity Community are cloud Identity as a Service (IDaaS) solutions that improve the sign-in experience, enhance security, and simplify identity management.

Identity Workforce connects Tyler back-office applications with your organizations identity provider (IdP) such as Microsoft Entra ID, Google Cloud Identity, and Okta Workforce Identity Cloud, aligning with your overall identity and access management (IAM) strategy. Federation with your IdP provides end-users with seamless, single sign-on across Tyler and organizational applications, while centralizing credential management policies such as password requirements and the use of multifactor authentication for enhanced identity verification.

Identity Community is Tyler’s secure authentication service to access public-facing self-service applications, such as those used by vendors, businesses, and residents. One account provides community members with single sign-on to Tyler applications, including across multiple jurisdictions that also use Tyler applications.

Email Server Integration
An SMTP / IMAP email server is required for sending application notifications.

The following advanced scheduling functionality is supported with Microsoft Exchange only. • Appointment creation on records directly from select Enterprise applications.

End-User Requirements
Microsoft Windows Workstation Requirements
Component Requirement [1]
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Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 89, Packet Page 122 City of Monterey Section 5 – Proposed Solution
ERP Procurement and Implementation Tyler Technologies, Inc.

Workstation Microsoft Windows Certified PC (Nationally recognized brand) Processor Intel Core i3 1.8 GHz minimum; Intel Core i3 2.5 GHz+ recommended Operating System Windows 10 or 11 (64-bit)
Memory 6GB RAM minimum; 12GB recommended
Disk Space 500 MB
Screen Resolution General: 1280 x 800 minimum, 1920 x 1080 recommended Enterprise Permitting & Licensing: 1680 x 1050 minimum, 1920 x 1080 recommended; eReviews: 2560 x 1600
Productivity Software Microsoft Office 2013, 2016, 2019 Microsoft Office 365 (requires desktop client)
[1] Meeting the minimum PC requirements will ensure the Tyler applications will operate but will not guarantee performance. All performance and benchmark testing are done with PC’s that meet (or exceed) the recommended hardware configuration.

Browser Compatibility
Browser [1] Application Support
Google Chrome Recommended.

Microsoft Edge Supported.

Mozilla Firefox Supported with Enterprise ERP, Enterprise Permitting & Licensing, and all Community Access solutions.
[1] Tyler only actively validates the latest version.

Apple macOS Workstation Requirements
Component Requirement [1]
Operating System macOS 10.15 or later
Processor Intel Core i3 1.8 GHz minimum; Intel Core i3 2.5 GHz+ recommended Memory 6GB RAM minimum; 12GB recommended
Disk Space 500 MB
Screen Resolution General: 1280 x 800 minimum, 1920 x 1080 recommended Enterprise Permitting & Licensing: 1680 x 1050 minimum, 1920 x 1080 recommended, 2560 x 1600 for eReviews
Productivity Software Microsoft Office for Mac 2019, 2021, or Microsoft 365 (requires desktop client) [1] Meeting the minimum PC requirements will ensure the Tyler applications will operate but will not guarantee performance. All performance and benchmark testing are done with PC’s that meet (or exceed) the recommended hardware configuration.

Browser Compatibility
Browser Application Support
Apple Safari 12 Supported with Time & Attendance, Enterprise ERP, Enterprise Permitting & Licensing, and Access applications.

Mozilla Firefox
(latest version)
Supported with Enterprise ERP, Enterprise Permitting & Licensing, and all Access applications.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 90, Packet Page 123 City of Monterey Section 5 – Proposed Solution
ERP Procurement and Implementation Tyler Technologies, Inc.

macOS Limitations
Some Tyler applications or select application functionality are not supported on macOS. This functionality can be obtained using alternative solutions such as RDS to a Windows environment or “Windows on Mac” virtualization solutions such as Parallels Desktop for Mac and VMware Fusion.

Enterprise Permitting & Licensing
Enterprise Permitting & Licensing is fully supported on macOS except for eReviews.

Enterprise ERP / Enterprise Asset Management
Enterprise ERP and Enterprise Asset Management are fully supported on macOS with the following exceptions:
• One of many reporting resources included with several Tyler solutions are OLAP cubes. Microsoft Office for Mac does not support connections to SQL OLAP cubes. • Microsoft SQL Server Reporting Services reports cannot be created or modified.

Tyler Content Manager
Advanced Tyler Content Manager functionality such as batch document scanning is not supported on macOS.

Mobile Device Support
Tyler offers many mobile options to access select Tyler applications and functions from a mobile and/or touchenabled device.

Application Any Device Android iOS Windows
Tyler Application Suites Web App Web App Web App Web App Code Enforcement Mobile -- -- App --
Employee, Resident, & Vendor Access Mobile Web Mobile Web Mobile Web Mobile Web Field Inspector Mobile -- -- App App
Field Sheet Mobile -- App App App
Field Surveyor Mobile -- App App --
Inspections Mobile [†] -- -- App App
Enterprise Service Request Access & My
Civic Mobile Web App App Mobile Web
Time & Attendance Mobile Mobile Web Mobile Web Mobile Web Mobile Web Workflow Mobile Email App App App
App: Native mobile app available for download from respective app store.

Mobile Web: Mobile optimized or responsive web site. Not all devices validated.

Web App: HTML applications only. Not all devices validated. Not all web applications optimized for mobile devices / smaller screens.

Some applications may require remote access configuration by client.

Email: Enterprise ERP and Enterprise Asset Management Workflow can send emails with actionable links to process workflow from any device.
[†]: iOS recommended for broader feature set. Contact sales or implementation representative for more details.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 91, Packet Page 124 City of Monterey Section 5 – Proposed Solution
ERP Procurement and Implementation Tyler Technologies, Inc.

Peripherals
Printers
Most application output can be printed to any printer accessible from an end-user’s device. Tyler recommends laser printers for universal compatibility for all applications. Workgroup class laser printers are required for select print jobs.

Printer Type Reports Forms Additional Notes
HP or HP Compatible Laser
Printer
Yes Yes PCL 5 or above
Forms Output Management Printer Requirements
Tyler’s Forms output management solution merges your application data with electronic form design templates. The results can be printed to your existing network printers, regardless of where the hardware is physically located in addition to automatically emailing, faxing, and archiving this output to Content Manager.

Forms offers several libraries of form templates that are tailored to work specifically with your Tyler applications.

The following technical specifications must be met for all printers used with Forms. • PCL 5e/6 Personality or Language Installed
• Automatic duplexing included and enabled
• Minimum memory - 1024MB
• Minimum of 80 internal TrueType scalable fonts
• Minimum of 2 full input trays (manual feed tray not usable) • Accommodates letter and legal-size paper stock
• Printers must have the latest firmware updates installed Check Printers
The following technical specifications must also be met for check printing with Forms Output Management. • HP brand black/white laser jet networked printer with static IP address • High speed USB port
• 80 HP font set
• MICR toner cartridge
Note: Tyler does not support HP printers that have been modified with TROY brand or any other 3rd party MICR security features for check printing.

Other (Non-Check) Forms Printers
Some non-check form designs require duplexing capabilities.

Enterprise ERP is designed for and guaranteed to work with approved HP black and white laser jet printers meeting the minimum requirements. For non-check forms, Tyler will make every effort to print to other networked printers if they meet the technical requirements. While Tyler routinely and successfully prints other forms to many brands of laser printers, if we are unable to print to a printer on your site, clients may be required to provide an alternate printer.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 92, Packet Page 125 City of Monterey Section 5 – Proposed Solution
ERP Procurement and Implementation Tyler Technologies, Inc.

Scanners
Tyler solutions support two methods of scanning documents. Documents can be scanned to a file system (e.g., network share), then batch imported. Any scanner capable of scanning to a file system can be used with this method.

Tyler solutions also support direct scanning using a scanner attached to a workstation. This method should be supported with TWAIN compliant scanners. When choosing a scanner, please confirm that it has TWAIN drivers available from the manufacturer's website for your operating system.

Time Collection Devices for Time & Attendance (Time Clocks) Collecting time entries is a key component to the system and incorporating the ability to manage time around specific criteria and policies for departments that are in operation seasonally, Monday through Friday or 24x7/365 is the key for a client-wide enterprise system.

Time & Attendance online devices can be configured to identify the employee by reading Proximity, Magnetic Stripe, Barcode and/or Biometric (fingerprints). They are equipped with a keypad so simple entry of a badge number is also an option for identification. They require an electrical outlet (POE is also an option) and Ethernet connection (to be provided by the customer). Devices allow employees to clock in/out, salaried check-in (attendance), quick punch, view hours, view benefit accruals, approve timesheet, request time off and some job costing.

Time & Attendance also supports two-factor authentication technology. When enabled the user will be required to provide two different types of authentication to log into the device. These can be any combination of keypad, biometric, or badge swipe entry.

Time & Attendance also supports an off-line clock that can be used in remote locations where internet and/or network connectivity is not an option. These devices will capture employee in/out times and store the entries until it is connected to the network so all entries can be passed to Time & Attendance Software and populate the appropriate employee timesheet.

For clients currently utilizing proximity, magnetic stripe, or barcode badge(s), we recommend a sample badge be supplied to Tyler for testing to confirm compatibility. If clients are interested in purchasing new badges to use with the time collection devices, Tyler recommends one of the following badge types:
• Proximity – HID 26 bit
• Magnetic Stripe – Track 1 or 2
• Barcode – 3of 9, code 39
Clients may purchase badges directly from a vendor of their choice. For pricing and product information, we recommend the following source: IDWholesaler: www.idwholesaler.com Fingerprint readers or keypad code entry devices are also supported and can eliminate the need for a badge.

Fingerprint readers add an additional layer of accountability and can be an ideal way to ensure employee time entry and eliminate buddy punching.

Cashiering Rev.20210629
The following equipment is supported with Cashiering, Tyler’s point-of-sale solution.

Receipt Printers
Device Part Number Estimated Interface Printing Check Processing Scanning Notes ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 93, Packet Page 126 City of Monterey Section 5 – Proposed Solution
ERP Procurement and Implementation Tyler Technologies, Inc.

Price * Method Endorse Validate MICR Image Bar
Code OCR
Epson TMS9000ii A41CG59021 $1600 USB Thermal Yes Yes Yes Yes Yes Yes Credit card swipe
reader not
supported
Epson TMH6000v C31CG62032 $630 USB Thermal Yes Yes Yes No No No Requires USB Cable
CTG-28102 - MSRP
$4.99 ea.

Canon
ImageFormula
CR-LI
3595C002 $495 USB No Yes No Yes Yes No Yes
Barcode Scanners
Device Part Number Estimated
Price * Interface Scanning Notes Bar Code OCR
Honeywell
1950 1950GSR-2-N $330 USB Yes Yes Stand available for $25. 1950GSR-2-N requires 3M type A USB Straight Cable CBL500-300-S00 – MSRP $22.26 each Secured Credit Card Reader Devices for
Tyler Payments, OpenEdge, BridgePay, & Persolvent
Device Part Number Estimated
Price * Interface EMV Support Notes
Ingenico Lane
5000 Lane 5000 $550 Ethernet Yes Supported with Tyler, OpenEdge or BridgePay only.

Must be acquired through Tyler, OpenEdge or BridgePay (JR’s POS Depot) to be properly encrypted. Lease options available with Tyler. Ingenico Lane 7000 Lane 7000 $650 Ethernet Yes
Castles
Technology Vega 3000 $250 Ethernet Yes Supported with Persolvent only.Must be acquired through Persolvent to be properly encrypted.

Digital Readout Pole Display
Device Part Number Estimated
Price * Interface Notes
Logic Controls
LD9900U LD9900UP $255 USB
Cash Drawer
Device Part Number Estimated
Price * Interface Notes
APG Series
100
APGT320BL16195 $230 MULTIPRO Cable CD-101A
APG Series
100
APG-T554ABL1616 $260 USB APG-T320-BL1616 requires CD-101A Printer Cable for Epson TM series Printer – MSRP $9.00 each APG Series
100 EVO-CD-USB $50 USB Adapter to convert MULTIPRO connector to USB * Actual price may vary.

Ref: SaaS
ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 94, Packet Page 127 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

Section 6 – Implementation Approach and Work Plan
Proposers must identify the proposed implementation approach to include the following:

Implementation Methodology
Tyler’s implementation process demonstrates our long-term commitment to our clients, with a methodology tailored specifically to the public sector. Your organization benefits from the fact that we perform our own implementations and know our software better than anyone. As a Tyler client, you receive guidance throughout implementation from experienced Tyler professionals who have implemented Tyler products in more than 10,000 public sector implementation projects. Tyler’s methodology is based on three vital foundations:
• Industry experience
• A globally recognized project management approach
• In-house expertise
Tyler utilizes its depth of implementation experience, working in tandem with our clients to put our methodology into practice. While each Project is unique, all will follow Tyler’s six-stage methodology. Each of the six stages is comprised of multiple work packages, and each work package includes a narrative description, objectives, tasks, inputs, outputs/deliverables, assumptions, and a responsibility matrix.

Tailored specifically for Tyler’s public sector clients, the project methodology contains Stage Acceptance Control Points throughout each Phase to ensure adherence to scope, budget, timeline controls, effective communications, and quality standards. Clearly defined, the project methodology repeats consistently across Phases and is scaled to meet the Client’s complexity and organizational needs.

The methodology adapts to both single-phase and multiple-phase projects. To achieve Project success, it is imperative that both the City and Tyler commit to including the necessary leadership and governance. During each stage of the Project, it is expected that the City and Tyler Project teams work collaboratively to complete tasks. An underlying principle of Tyler’s Implementation process is to employ an iterative model where City business processes are assessed, configured, validated, and refined cyclically in line with the project budget.

This approach is used in multiple stages and work packages as illustrated in the graphic below.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 95, Packet Page 128 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

The delivery approach is systematic, which reduces variability and mitigates risks to ensure project success. As illustrated, some stages, along with work packages and tasks, are intended to be overlapping by nature to, efficiently and effectively complete the Project.

Work Breakdown Structure
The Work Breakdown Structure (WBS) is a hierarchical representation of a project or phase broken down into smaller, more manageable components. The top-level components are called “stages” and the second level components are called “work packages”. The work packages, shown below each stage, contain the high-level work to be done. The detailed project schedule, developed during project/phase planning and finalized during subsequent stages, lists the tasks to be completed within each work package. Each stage ends with a “control point”, confirming the work performed during that stage of the Project has been accepted by the City.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 96, Packet Page 129 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

a) Provide a project organization chart highlighting the key staff who will be assigned to the project. Provide resumes for the project manager and other key assigned resources, including the number of similar engagements and details about their work with government agencies specifically related to similar projects, the number of years of their experience in the field, and the number of years with your firm.

Project Organizational Chart
Every implementation project is comprised of both client resources and Tyler resources working together at varying levels of involvement to ensure a successful implementation. The chart below outlines each of those resource groups. Please keep in mind that some resources in your organizations may fall into multiple groups.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 97, Packet Page 130 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

Project Governance
Communication and transparency are essential to any successful implementation. Tyler and City resources collaborate to determine core business needs, objectives and priorities. Project teams work together to navigate challenges as they arise according to the escalation paths outlined in the organization charts.

The chart below illustrates an overall team perspective where Tyler and the City collaborate to resolve project challenges according to defined escalation paths. If project managers do not possess authority to determine a solution, resolve an issue, or mitigate a risk, Tyler implementation management and the City steering committee become the escalation points to triage responses prior to escalation to the City and Tyler executive sponsors. As part of the escalation process, each project governance tier presents recommendations and supporting information to facilitate knowledge transfer and issue resolution. The City and Tyler executive sponsors serve as the final escalation point.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 98, Packet Page 131 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

Tyler Resources Tyler actively seeks the best talent to help us implement our solutions for our clients. Our staff consists of seasoned professionals with unique and proprietary skills, and years of industry experience, who are focused on specific products and in dedicated regions
Assembling a quality project team that suits for project needs is important. We appreciate your patience as we plan to allocate resources for your project phases. Upon award of contract, Tyler assigns a project manager and quality project team to ensure your implementation success. Tyler staff perform services in a professional, workman-like manner, consistent with industry standards.

The resumes presented in this proposal reflect the caliber and experience that Tyler will assign to this project.

Due to the variable duration of selection and contract processes, it is difficult for us to predict resources that would be available at project commencement.

Name Carole A.

Title Project Manager

Education City University
Bachelor's in Science - Accounting

Office Location Phoenix AZ
Tenure 7 years

Previous Experience Tyler Technologies - Implementation Consultant / SME Tyler Technologies - Dedicated Project Manager

Reference Projects Pierce County Library, WA Wasco County, OR Pitkin County, CO Downers Grove, IL
Issaquah, WA Bristol Virginia Public Schools, VA
Forest Grove, OR Reno-Tahoe Airport Authority, NV
Moffat County, CO Cheyenne Board of Public Utilities, WY Name Paul C.

Title Project Manager

Education Sterling Hts High School, MI
High School Diploma

Office Location Oxford MI
Tenure 5 years

Previous Experience Tyler Technologies - Solution Consultant New World Systems Solution - Consulting Manager

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 99, Packet Page 132 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

Reference Projects Charleston, WV Morgan Hill, CA
Benton County, WA National City, CA
Athens-Clarke County Unified Government,
GA Desoto County, MS
Woodland, CA Charlotte County, FL
Midpeninsula Regional Open Space District,
CA
Cambria County, PA
Name Michelle C.

Title Implementation Consultant

Education International Fine Arts College
Fashion Merchandising

Office Location Denver CO
Tenure 7 years

Previous Experience All Mountain Technologies - Customer Service/HR Manager Sonnenalp Resort of Vail - HR Generalist

Reference Projects Rancho Palos Verdes, CA Cucamonga Valley Water District, CA Fontana, CA
Helix Water District, CA
Rancho Mirage, CA
Lassen County, CA
Name Esther W.

Title Implementation Consultant

Education University of North Florida
Accounting

Office Location Marysville MI
Tenure 10 years

Previous Experience New World Systems - Senior Implementation Consultant Whitman County - Finance Director

Reference Projects Athens-Clarke County Unified
Government, GA Loma Linda, CA
Woodland, CA Menifee, CA
Oakley, CA Hawthorne, CA
Charlotte County, FL Midpeninsula Regional Open Space District, CA Cambria County, PA Soos Creek Water and Sewer District, WA ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 100, Packet Page 133 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

Name Mindy C.

Title Implementation Consultant

Education Colorado Northwestern Community College
AS Accounting

Office Location Craig CO
Tenure 1 years

Previous Experience Moffat County - Finance Director
Moffat County - Social Services Accounting Specialist

Reference Projects Apple Valley, CA West Covina, CA
Spokane Valley, WA
Arroyo Grande, CA
Charlotte County, FL
Temecula, CA
b) Describe your project management methodology/approach, including your approach to Change Management, Risk Management, Issues Management and Communication Management Project Management
Our approach to project governance has been continuously improved during Tyler’s more than 35+ years of experience implementing software exclusively with public sector clients. No one knows the system better than Tyler staff. That’s exactly why we don’t contract third parties to do our implementation for us. We do it best.

Project managers will be assigned to each phase of your project to staff the project with subject matter experts during each part of the project. Our staff consists of seasoned professionals with unique and proprietary skills and years of experience, focused into dedicated departments.

Project Communication
Tyler understands the importance of having current, accurate, easily accessible during an implementation project. As part of implementation, each new Tyler client will be provided a project portal. The purpose of this site is to furnish the project teams with a central location to plan, store and access pertinent documentation and information relating to your Implementation project.

This site will be jointly maintained by the project teams for the duration of the implementation. Once the client has gone live, the portal will be maintained by Tyler’s client services team for the first year of live processing.

Management and Scope
The Tyler project manager (PM) and implementation teams will communicate regularly with your project team. All implementation deliverables generate reports which contain detailed assessments of task completion, staff participation and material absorption. The Tyler PM(s) will evaluate and measure the report ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 101, Packet Page 134 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

results, communicating the gaps and adjusting the plan accordingly. Should issues arise during the project, there are several escalation paths that can be used laid out in the communication plan.

Change Management Services
Effective change management is the cornerstone of a successful ERP implementation. With Tyler’s change management program, you can ensure your people transition along with your re-engineered business processes. Tyler’s change management experts are Prosci® certified and use industry leading skills and tools to assess your organization’s capacity for change and then help you prepare, manage, and reinforce the transition. Prosci research shows that implementing effective change management strategies will Increase the probability of a project’s success. Additionally, change management services assist handling employees’ resistance to change, while building change competencies into the organization for future projects.

What Is Change Management?
It is a structured process and set of tools for managing the people side of change. In fact, employee acceptance and the understanding of change is asimportant to a project’ssuccess as having the rightsoftware, project manager,resources, and experts. Resistance to change can derail an organization’s plan to move forward. Efficient and effective change management considers how each employee adopts and utilizes the change, how it will affect organizational objectives, and how expectations can be met or exceeded. Well managed change results in a higher ROI allowing projects to stay on time and budget. Change Management programs also help organizations to successfully achieve goals, while more efficiently utilizing employees’ valuable time.

Choosing Change Management
Each client requires a different amount of support from Tyler when it comes to their change management needs. Some organizations only need minimal guidance and a robust toolset to facilitate their program, while others want Tyler to take the lead in developing and executing their program. Whichever model fits your organization’s needs, Tyler has designed two options to ensure your organization doesn’t leave change management out of its plan for project success.

Option 1: Foundation Change Management (Included in Tyler’s Proposal) Foundation Change Management provides a plan, training, and toolset that can be used by the client to execute change management activities. Clients can easily order a three-day block of change management expertise for a Tyler Prosci® certified resource to come onsite and help execute the plan or solve challenging issues. The goal of this service is to provide a low-cost change management plan.

Option 2: Enterprise Change Management
Tyler’s Enterprise Change Management offering is designed for organizations that want a robust and complete solution to address their change management needs for large-scale projects. A Prosci certified Tyler change management expert will lead each change management step, which includes assessing the organization’s capacity for change and then helping them prepare, execute, and reinforce the transition.

Tyler will develop a detailed change management plan and conduct a thorough organizational change assessment. These pivotal deliverables establish a path for further change management activities, including:
• Training of the organization’s Change Management lead and coaches • Developing a sponsor activity model
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Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 102, Packet Page 135 City of Monterey Section 6 – Implementation Approach and Work Plan ERP Procurement and Implementation Tyler Technologies, Inc.

• Tracking and communicating procedural changes to impacted employees • Guiding recognition, feedback, and lessons learned events • Completing a resistance management plan
Enterprise Change Management includes a collaborative review of the tools for tracking these activities and offers regular onsite visits to provide support and corrective action opportunities throughout the project phase.

Once a go-live date is in place, Tyler’s expert will work with the organization to ensure communications are clear to all impacted employees and that strategies are in place for supporting them throughout the process.

After go-live, monitoring of compliance and resistance continues until a formal transition of all change management tools, guides, and presentations are completed at close. This ensures that the organization has the skills and tools to continue monitoring the adoption of the new system and, later, can create a change management program for use in future projects or change initiatives. i. Identify if there are any solution user groups and/or user conferences Local User Groups
Tyler clients benefit from networking and peer-to-peer collaboration through local user groups. The majority of user groups are run by clients, who set the meeting agenda, location and frequency, assign topics, and involve the Tyler resources they need. In large states, there may be several user groups or different sessions planned.

Tyler provides staff to demonstrate new functionality and assist with materials and collateral. During the sessions, Tyler representatives collect important feedback and report back to product managers. Many clients form lasting connections with other Tyler users within these groups and help to make each other better users of the software.

Annual User Conference
Each year Tyler hosts an annual user conference, which brings together staff and clients from across all Tyler products. Tyler has appropriately named our conference Connect, and each year thousands of clients come to learn about Tyler, our products, and to connect with peers and staff. This premier event helps clients get the maximum use of their Tyler software. Clients can learn more about existing or proposed functionality through dozens of classes over several days. Development product managers attend the event to share their plans for the next upgrade and to solicit feedback from clients.

Tyler was able to quickly pivot in the spring of 2020, with the global pandemic, to move all our classes virtually.

As of this year, Tyler has over 4700 registrants and over 600 classes being offered on our virtual platform for our annual conference.

Our clients’ input from past conferences continues to significantly impact the direction of software enhancements and changes. Client attendance each year ensures that appropriate needs are reflected in product development strategies. Connect is held in different locations every year to accommodate our geographically diverse client base and to provide fresh and exciting activities for our clients outside of the classes and labs.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 103, Packet Page 136

CONFIDENTIAL & PROPRIETARY
City of Monterey Section 6 – Implementation Approach and Work Plan

ERP Procurement and Implementation Tyler Technologies, Inc.

Building Success
There are three elements necessary to build a strong change management strategy:
• Executive Leadership (sponsorship) — the required leadership to set the necessary changes into motion. Active and visible leadership is the number one indicator of project success. • Project Management — the fundamentals of managing a project, including the design of work tasks and the management of resources to implement changes on time and on budget. • Change Management — the people side of change. This represents the actions taken by the organization to help employees’ transition from the current state to the desired future state.

Risk Management
An integral part of the custom project plan is a sub-plan for the identification, mitigation, and documentation of all project risks. A risk register is created during the initial project planning sessions and is updated throughout the project. This document, along with all other project documentation will be stored on the project portal for reference, review, and revision throughout the project.

Issue Management
The Tyler project manager (PM), along with the implementation teams will communicate regularly with your project team throughout the project. All implementation deliverables generate reports which contain detailed assessments of task completion, staff participation and material absorption. The Tyler project manager will be tasked with evaluating and measuring the results, communicating the gaps, and adjusting the plan accordingly.

Should issues arise during the project, there are several escalation paths that are appropriate which will follow the established communication plan developed during the planning stage of the project, as part of the larger custom project plan. This plan will be evaluated throughout the project to ensure that it is meeting the project’s needs and adjusted as necessary to improve project communication. By defining the escalation path prior to issues arising, both City and Tyler project teams are prepared for any issues that arise during the project and will work together to resolve the issues in a collaborative manner.

Communication Management
Tyler understands that current, accurate information that is easily accessible is a key component in an any successful project. As part of implementation, each new Tyler client will be provided a project portal. The purpose of this portal is to furnish the project teams with a central location to plan, store, and access pertinent documentation and information relating to your implementation project. The Tyler implementation portal site will ensure that all project stakeholders have an easy-to-use tool that will provide an integrated location to inquire, review, and update all project information.

It is Tyler’s goal to have the site available for introduction during the project manager’s (PM) stakeholder meeting. At this meeting, the PM will provide an overview of the portal and its available tools.

This portal will be jointly maintained by both project teams for the duration of the implementation. Once the client has gone live, the site will be maintained by Tyler’s assigned client services manager for the first year of live processing.
c) Based on Proposer’s experience with similar-size agencies, provide recommended project phasing and an implementation schedule, including milestones ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 104, Packet Page 137

CONFIDENTIAL & PROPRIETARY
City of Monterey Section 6 – Implementation Approach and Work Plan

ERP Procurement and Implementation Tyler Technologies, Inc.

Project Planning
Project Planning is an important piece of any implementation. Tyler takes a custom approach to every project we lead. The project schedule is developed collaboratively with both project teams in order to meet your needs, while keeping in mind Tyler’s guidelines for implementation. Periodic project meetings will be scheduled where changes in scope, project length, or cost will be reviewed.

Tyler is open to discussing the project schedule in more detail and working out a mutually agreed upon plan that considers all project risks, requests, and resource constraints.

Tyler recommends a phased implementation approach, staggering start, and live dates for each phase of the project. Live dates will be targets but should not place unnecessary constraints on the project. The following schedule takes into consideration the <<ClientShort>> goals and Tyler’s recommended approach, and assumes the product will be used as is, without additional go-live customizations.

Proposed Project Phases
Proprietary and Confidential – Subject to Restrictions on Disclosure 2025 2026 2027
Phase Module
Project Plan in Months
2 5 7 9 11 12 13 14
Duration in
Months 1 3 4 6 8 10
Financials 15
3 1
12 Human Resource
Management
15 16 17 18 19 20
2 12 Enterprise Permitting &
Licensing
21 Detailed Implementation Schedule
Please see attached Sample Gantt Chart on the following pages.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 105, Packet Page 138

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ERP Procurement and Implementation Tyler Technologies, Inc.

ATTACHMENT 3
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ERP Procurement and Implementation Tyler Technologies, Inc.

ATTACHMENT 3
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ERP Procurement and Implementation Tyler Technologies, Inc.

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ERP Procurement and Implementation Tyler Technologies, Inc.

d) List and describe all implementation deliverables and documentation that will be provided A sample list of project deliverables is included in the attached project deliverables document which is representative of the items that will be created during the initiate and plan stage. All project deliverables are custom to the specific project and are a joint effort by both project teams.

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ERP Procurement and Implementation Tyler Technologies, Inc.

ATTACHMENT 3
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ERP Procurement and Implementation Tyler Technologies, Inc.

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ERP Procurement and Implementation Tyler Technologies, Inc.

e) Describe the roles and responsibilities of City staff during implementation and provide an estimated level of effort
Roles and Responsibilities
The following defines the roles and responsibilities of each Project resource for the City and Tyler. Roles and responsibilities may not follow the organizational chart or position descriptions at the City, but are roles defined within the Project. It is common for individual resources on both the Tyler and City project teams to fill multiple roles. Similarly, it is common for some roles to be filled by multiple people.

Tyler Roles & Responsibilities
Tyler assigns project managers prior to the start of each phase of the project. The project manager assigns other Tyler resources as the schedule develops. One person may fill multiple project roles.

Tyler Executive Sponsor
Tyler executive management has indirect involvement with the project and is part of the Tyler escalation process, helping to facilitate implementation project tasks and decisions if needed.

Tyler Implementation Manager
Tyler implementation management is consulted on issues and outstanding decisions critical to the project only if needed.

Tyler Project Manager
The Tyler project manager(s) provides oversight of the project, coordination of Tyler resources between departments, management of the project budget and schedule, effective risk, and issue management, and is the primary point of contact for all Project related items. As requested by the City, the Tyler Project Manager provides regular updates to the City Steering Committee and other Tyler governance members. Tyler Project Manager’s role includes responsibilities in contract, implementation, and resource management and planning.

Tyler Implementation Consultant
Document activities for services performed by Tyler. They help guide the City through software validation process following configuration and facilitate training sessions. ICs also assist during go live processing.

Tyler Sales
Supports Sales to Implementation knowledge transfer during stage 1- initiate and plan- and provides historical information, as needed, throughout implementation.

Tyler Technical Services
Maintains Tyler infrastructure requirements and design document(s) and are involved in system infrastructure planning/review(s). They deploy Tyler products.

The City Roles & Responsibilities
City resources will be assigned prior to the start of each phase of the project. One person may be assigned to multiple project roles.

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ERP Procurement and Implementation Tyler Technologies, Inc.

The City Executive Sponsor
The City executive sponsor provides support to the project by providing strategic direction and communicating key issues about the project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated project issues. The executive sponsor engages in the Project, as needed, to provide necessary support, oversight, guidance, and escalation, but does not participate in day-to-day Project activities. The executive sponsor empowers the City steering committee, project manager(s), and functional leads to make critical business decisions for the City.

The City Steering Committee
The City steering committee understands and supports the cultural change necessary for the project and fosters an appreciation for the project’s value throughout the organization. The steering committee oversees the City project manager and project as a whole through participation in regular internal meetings. The City steering committee also serves as primary level of issue resolution for the project.

The City Project Manager (PM)
The City shall assign PM(s) prior to the start of this project with overall responsibility and authority to make decisions related to project scope, scheduling, and task assignment. The City PM should communicate decisions and commitments to the Tyler PM(s) in a timely and efficient manner. When the City project manager(s) do not have the knowledge or authority to make decisions, the necessary resources are engaged to participate in discussions and make decisions in a timely fashion to avoid project delays. The City PM(s) are responsible for reporting to City steering committee and determining appropriate escalation points.

The City PM acts as primary point of contact for all contract and invoicing questions; and collaborates on and approves change requests, if needed, to ensure proper scope and budgetary compliance. The City PM also handles all site resource management items. The City PM collaborates with Tyler PM(s) to plan and/or establish:
• project timelines to achieve on-time implementation
• process and approval matrix to ensure that scope changes and budget are transparent and handled effectively and efficiently
• risk and issue tracking and reporting process between the City and Tyler and takes all necessary steps to proactively mitigate these items
• key business drivers and success indicators that will help to govern project activities and key decisions • communication channels at City site to aid in the understanding of goals, objectives, current status, and health of the project by all team members
• requirements gathering process
The City Functional Leads
The City functional leads make business process change decisions, communicate current processes and procedures and desired changes during current and future state analysis. Most importantly, functional leads act as an ambassador/champion of change for the new process and provide business process change support.

Finally, they actively participate in all aspects of the implementation.

The City Power Users
The City power users participate in project activities as required by the project team and pm(s). They act as SMEs, as needed, attend all scheduled training sessions, validate all configuration, and provide knowledge transfer to City staff during and after implementation.

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ERP Procurement and Implementation Tyler Technologies, Inc.

The City End Users
City end users all scheduled training sessions and become proficient in application functions related to job duties. They adopt and utilize changed procedures related to their job functions.

The City Technical Lead
The City technical lead(s) coordinate updates and releases, copying of source databases to training/testing databases, adds new users/printers etc., as well as interface development for third party interfaces. They validate that all users understand log-on process and have necessary permission for all training sessions and develop/assist in creating reports as needed. They may also be responsible for extracting and submitting conversion data and control reports from the City’s legacy system per the conversion schedule set forth in the project schedule.

The City Upgrade Coordination
The City upgrade coordinator utilizes Tyler Community to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage the City’s software upgrade process. They manage software upgrade activities post-implementation.

The City Change Management Lead
The City change management lead validates that users receive timely and thorough communication regarding process changes and provides coaching to supervisors to prepare them to support users through the project changes.

Anticipated Resource Hours
City Project Resource Hours for a detailed break out of the estimated level of effort required of the City Team during the implementation process.

Project Staffing Levels
The below chart shows the estimated full-time employees (FTEs) associated with each role. Within each phase time will vary from one stage of the project to another (e.g. functional leads are more involved in the early analysis and planning, whereas power users are more involved later in the project).

City Project Team Hours
Monterey, CA Project Team % Full Time Employment
Phase 1 Phase 2 Phase 3
Project Manager 0.50 0.50 0.50
Technical Lead* 0.11 0.11 0.11
Functional Leads 0.41 0.21 0.31
Power Users 0.51 0.26 0.39
Conversion Lead** 0.55 0.13 0.42
*Assumes SaaS/TSM
** Will vary site by site due to
conversion volume
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City of Monterey Section 6 – Implementation Approach and Work Plan

ERP Procurement and Implementation Tyler Technologies, Inc.

Tyler Hours
Tyler Project Team % Full Time Employment
Phase 1 Phase 2 Phase 3
Project Manager 0.50 0.50 0.50
Technical Services* 0.11 0.11 0.11
Implementation Consultant 0.56 0.29 0.43
Data Expert 0.28 0.07 0.21
f) your firm’s approach to facilitating / supporting the review and redesign of a client’s chart of accounts structure; provide an example from a prior, similar public sector client’s completion of this effort
Chart of Accounts Design
No other aspect of an ERP system is as important to the success of the entire project as the financial Chart of Accounts (CoA). Tyler conducts between 90 and 100 implementations a year, and in more than 95% of these projects the CoA needs to be reworked to better meet the needs of the client. Tyler’s project team resources will guide your team through all aspects of the CoA design, mapping, and conversion. Our experience working exclusively with public sector clients results in resources who are experts in Munis as well as the industry.

As the central point of all department functions, the general ledger is the most integral aspect of Enterprise ERP. Because the CoA is paramount to good financial management, it can be imported directly with the robust CoA Builder Import during implementation.

To make accessing and understanding all current and historical data easy, account inquiry graphing is available, allowing a better understanding of current and historical accounts with colorized, stacking graphs.

During the assess & define stage of the project, Tyler will lead your users through our CoA Builder tool to configure and validate the Chart of Accounts prior to converting the data into Munis. The Tyler project manager will review the current setup in the legacy system, learn your expectations of the Chart of Accounts, and walk through setup within Enterprise ERP.
g) Describe your data conversion and migration approach including roles and responsibilities of the Proposer and City staff for key activities. Note that the City’s expected data conversion scope has been highlighted in Table 6 of this document.

The data conversion process can be the most time-critical element of your project plan. Tyler develops crucial steps in our implementation process to support a successful data conversions plan. Our data experts conduct hundreds of data conversions every year mapping legacy data through custom written programs.

The purpose of this task is to transition the City’s data from your source (“legacy”) system(s) to the Tyler system(s). The data will need to be mapped from the legacy system into the new Tyler system format. A wellexecuted data conversion is key to a successful cutover to the new system(s).

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ERP Procurement and Implementation Tyler Technologies, Inc.

With guidance from Tyler, the City will review specific data elements within the system and identify and/or report discrepancies. Iteratively, Tyler will collaborate with the City to address conversion discrepancies. This process will allow for clean, reconciled data to transfer from the source system(s) to the Tyler system(s).

Data Conversion Standards & Responsibilities
While Tyler’s data experts have extensive experience with data mining, conversion, and migration, it is your responsibility to provide Tyler with readable conversion data and to review the converted data for accuracy and completeness. Tyler recommends that you conduct due diligence to ensure that your team delivers clean data, to make data validation efforts seamless resulting in a high-quality migration.

The City functional leads are responsible for populating data crosswalks and code mapping tools and proofing and reviewing data and reconciling it to the source (i.e. legacy) system. The City PM is accountable for ensuring that these tasks are completed. The rest of the City project team is consulted or kept informed as needed.

Describe Proposer’s services and support to perform the data extraction from the existing system, data cleansing, and mapping. If the Proposer does not offer these services, please identify alternative companies that can support this activity
Data Conversion Assessment Responsibilities- City versus Tyler The City technical lead(s) are responsible for extracting data from the City’s source systems (i.e. legacy system). Functional leads are responsible for reviewing and scrubbing the source data. The City project manager (PM) is accountable for ensuring all City tasks are completed. Other City team members are consulted or informed as appropriate.

Tyler’s PM is responsible for completing data analysis and mapping and building and/or updating a data conversion plan. Tyler implementation consultants (ICs) are consulted during completion of data analysis and/or mapping and building and/or updating the data conversion plan. Tyler’s data experts are consulted by the City technical leads as needed when data is extracted from the source system (i.e. legacy system) and during completion of data mapping/analysis and building/updating the conversion plan. Tyler’s implementation manager(s) are ultimately accountable for ensuring all Tyler staff involved in the data conversion assessment process have completed the tasks assigned.

Data Conversions & Delivery Responsibilities- City versus Tyler Tyler data expert(s) are responsible for providing data crosswalks and code mapping tools to the City. They are also responsible for different iterations of conversion development and delivery of converted data. The Tyler ATTACHMENT 3
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project manager (PMs) are accountable for ensuring that the data experts deliver all items for which they are responsible. Tyler implementation consultants (ICs) are consulted when needed and Tyler technical services is kept informed of delivery of converted data where appropriate. Tyler’s PM(s), IC(s), and data experts are consulted, after conversion data delivery, while the City works to proof and review data and reconcile it to the source (i.e. legacy) system.

The City functional leads are responsible for populating data crosswalks and code mapping tools and proofing and reviewing data and reconciling it to the source (i.e. legacy) system. The City PM is accountable for ensuring that these tasks are completed. The rest of the City project team is consulted or kept informed as needed. h) Describe your training plan to ensure the City is prepared to operate the system prior to the go live date (Go Live)
Everyone’s learning style is different. That’s why Tyler offers several training formats to accommodate our diverse clients’ needs. Training by Tyler staff provides hands-on learning in your own labs. Your resources receive consultative knowledge transfer sessions that are a combination of lecture and hands-on education, using your organization’s own data.

A mutually developed education plan lays out the process of transferring knowledge between you and Tyler.

The purpose of the education plan is to:
• Communicate the process to stakeholders and functional leaders • Answer specific questions (where classrooms will be established, what database environment will be utilized, etc.)
• Establish action items and link project personnel as owners • Define measurement criteria to ensure the plan has been successfully followed Your organization is set up for success with Tyler’s train the trainer approach to training and education plan developed over years of industry experience.

Scheduling and Attendance
Tyler prefers a classroom and curriculum approach for training to ensure knowledge transfer, comprehension, and retention. A successful user training session is in a classroom environment with a computer for each user, whiteboard, printer in the room or nearby, and one computer connected to a projector.

Class size should be limited to twelve (12) users in attendance to the training is critical to gain hands-on experience with the system.

Responsibilities
Tyler knows the value of being prepared for the use of our software in production. Our goal is to partner with you and lend our expertise based on experience, to allow your resources to be successful at go-live.

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City of Monterey Section 6 – Implementation Approach and Work Plan

ERP Procurement and Implementation Tyler Technologies, Inc.

Both teams collaborate on all aspects of training, discussed, and documented during the planning stage of the project. The expectation is for Tyler to provide one or more occurrence of each scheduled training. You will be responsible for the logistics of the training by completing such tasks as scheduling resources and ensuring facilities are available. These sessions are to be attended by your key staff members (i.e. functional leads and power users) so that they can then disseminate the information they learn to others in your organization if or when necessary.
i) Describe your testing approach to include the criteria and methods to ensure successful completion of user acceptance testing prior to Go Live
Making sure your new system works the way you need it to be is paramount to the success of the implementation. Tyler’s quality management and validation plan addresses both the project and the product, while ensuring project objectives are met. The project teams validate the solution throughout the life of the project to expose issues that would normally only be revealed in a production environment. A comprehensive validation plan is set in place and may include system infrastructure audits, conversions, and modification delivery.

A controlled environment is created for high-level product modification validation, import and export interface, functional flow, and reliability.

The goal of validation is for end users to gain extensive product experience, develop a high level of confidence in Tyler’s products, and understand their specific functions within the solution.

Expected benefits from the completion of validation also include:
1) The infrastructure of hardware and network design is thoroughly vetted 2) Modifications are delivered and fully integrated into the solution 3) A managed issues list is fully quantified
Issue tracking, resolution accountability, and completed issue resolution are necessary in a successfully completed project. The validation phase is a shared responsibility and must be recognized as such.

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City of Monterey Section 7 – Ongoing Support and Maintenance

ERP Procurement and Implementation Tyler Technologies, Inc.

Section 7 – Ongoing Maintenance and Support
In this section of the proposal, the Proposer should address the following:
a) Describe ongoing support services including help desk processes and procedures, support hours (in Pacific Time), escalation procedures, and response time commitments for various priority items
Tyler Technical Support
Our mission is to deliver superior service by providing a timely response, issue resolution and operational support, resulting in a high-level of client satisfaction. Unlike some companies who outsource their application support to a third party, Tyler offers a complete solution of customer support services provided by our inhouse experts.

Transparency is important, that’s why every support incident is logged into Tyler’s Customer Relationship Management System and given a unique incident number. This system tracks the history of each incident and each incident is assigned a priority number, which corresponds to your needs and deadlines. Clients can track the progress of these incidents online using Tyler’s support portal.

Tyler provides online and continuing education resources for our clients, including but not limited to the following resources.
• Tyler Search – an online query tool that provides answers for your questions by culling through all Tyler’s online resources using Knowledge Centered Service • Tyler Knowledgebase- a documentation library in a single, easily accessible location • Tyler Community – Tyler’s online forum available 24/7 • Tyler University- Tyler’s e-learning solution to enhance support and training of your employees using your data
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ERP Procurement and Implementation Tyler Technologies, Inc.

• Tyler Release Management Console- Shows all release version information, with a summary of each release and associated enhancements, open, closed and non-critical issues • Online Help- context sensitive field help and procedural information to assist your team in completing program tasks
• Answer Panel- As you begin entering your case details, Tyler Search presents results in the panel that matches your question. Answers provided are the most relevant to your question, regardless of the source of the information.
• MyView- MyView is a screen capture tool to give Support more information to assist clients with a case. The recording is linked to the case and visible in the Online Support Incidents portal. • Online Support Portal- log or manage incidents and attach documentation and screenshots • GoToAssist & Bomgar- remote assistance from Support used to connect to your desktop • Phone- Tyler provides a dedicated 800 number that places no limits on who from your team may contact Support, or the number of calls placed
• State User Groups – forums organized by Tyler staff and attended by existing clients to get the latest information on Tyler products
• Annual Conference – Tyler Connect features online courses taught by Tyler subject matter experts hosted in a different city each year
Focused by Application
Regardless of how your team contact us, we are here to help. Tyler Technical Support is divided into application specific teams to enable product specialization and provide timely resolution of support incidents.

This application specific approach allows our Technical Support Representatives to focus on a small group of applications offering a high level of product expertise to our clients. Customer support’s goal is to return all requests for Support within one business hour.

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CONFIDENTIAL & PROPRIETARY
City of Monterey Section 7 – Ongoing Support and Maintenance

ERP Procurement and Implementation Tyler Technologies, Inc.

Incident Tracking
Tyler records all your contacts and incidents in a customer relationship management system. This system tracks the history of each incident, including the contact, time, priority level, case description, correspondence, attached files, support recommendations, your feedback, and the resolution. The priority is assigned to each case as it is logged based upon the initial information provided and can be modified. b) Describe how upgrades, patches, and other maintenance is performed including:
ii. The City’s expected role in this process
iii. The frequency that application releases and patches have been made available within the past two (2) years
Software Updates & Maintenance
Tyler deploys industry leading technology and features that are continually enhanced through a process of perpetual upgrades as part of our Evergreen Philosophy. This includes a continuous stream of significant, yet manageable updates deployed over the life of the application with minimal disruption to our clients.

Tyler application upgrades are released quarterly. Software corrections, known as cumulative updates, are made available for download between quarterly releases. All releases are cumulative allowing clients to upgrade to the latest application version directly.

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City of Monterey Section 7 – Ongoing Support and Maintenance

ERP Procurement and Implementation Tyler Technologies, Inc.

Tyler Coach for ERP
Tyler Coach offers valuable coaching directly within your solutions. It’s there when you need guidance, particularly in areas that may cause confusion. You can quickly access this guidance without requiring system administrators to install an update. Best of all, you can access it at any time from any location with internet access.

It reduces the time, effort, and cost associated with training your workforce by delivering useful coaching, tricks, and guidance directly in the products you are using. This greatly helps new staff get up to speed quickly and ensures existing staff understand how to use the latest features and capabilities — making everyone more efficient and productive.

Software Coaching Available Directly In Your Solutions
With Tyler Coach, the support is where you want it — in your system, interacting with your data. The coaching guides users through completing a task with sequenced directions that enable tasks and training to be completed simultaneously. Tyler Coach sits on top of your programs, providing tailored training tips and guidance curated for your specific in-application use.

Help Is Available When You Need It
The service can also provide just-in-time assistance for users to complete tasks that are performed infrequently in the production environment. Some tasks are only performed monthly, quarterly, or annually, making them more difficult to recall. When completing infrequent tasks, this step-by-step guide overlayed on your own data is particularly helpful. This makes month-end and year-end processes that may have been difficult to remember effortless. iv. Describe change management process (post implementation) Please see Tyler’s Change Management response above in Section 6.

Tyler Coach Benefits
• No-cost coaching built into
the solutions you use
• Coaching is available to you
24/7
• Reduces the time, effort,
and cost associated with
training you and your
workforce
• Helps you become more
efficient, productive, and
knowledgeable
An example of the coaching that takes place in
the solution
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City of Monterey Section 8 – Pricing

ERP Procurement and Implementation Tyler Technologies, Inc.

Section 8 – Pricing
Proposers must prepare a clear and comprehensive understanding of all costs associated with the software, implementation services, and ongoing maintenance of the proposed system. The City will evaluate proposals based on the “Total Cost to Implement (TCI)” and the “Total Cost to Operate (TCO).” TCI will include all costs required for a successful implementation. The TCOwill be calculated based on TCI plus ten (10) years of annual maintenance fees or SaaS service fees.

Although the City prefers a SaaS ERP system, it is open to consideration of an on-premises solution platform. If a Proposer wishes to propose both SaaS and on-premises platform solutions, they must not combine pricing on one copy of Appendix B (doing so will skew the Cost Proposal); Proposer should only complete pricing in tabs that apply to their proposed solution platform.

The Proposer’s implementation pricing must identify all costs required including:
a) Licensing Costs during implementation period (must be minimal if any) b) Implementation Services – Provide lump sums for each of the below:
1) Project management
2) Implementation, installation, and configuration, including related travel costs • Note: No “mark-up” will be allowed for direct costs. If applicable, per diem shall be billed at a maximum of the GSA rate and mileage shall be billed at the IRS mileage rate in place at the time of billing.
• Sub-consultant services, if any, are to be billed at cost plus ten percent (10%) maximum. No “mark-up” will be allowed for per diem or mileage. 3) Data conversion and migration
4) Interface development
5) Integrated testing and user acceptance testing support Training and documentation
6) Go-Live support
7) Payment Plan, including details on expected timing of payments as modules are implemented
c) Software Licensing Costs after “Go-Live” date and / or Ongoing Maintenance and Support – Proposer’s ongoing maintenance and support pricing should clearly identify the annual costs for 5 years including:
(1) Software License / Maintenance
(2) Post-Implementation Support
(3) Continuing Additional Training
As discussed in Appendix B – Vendor Cost Proposal, the City has provided Proposers an ATTACHMENT 3
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City of Monterey Section 8 – Pricing
ERP Procurement and Implementation Tyler Technologies, Inc.

electronic (Microsoft Excel) spreadsheet with a pricing template that must be completely filled out and included in Proposer’s response. The City will evaluate Proposer pricing information based solely on the information provided in the Pricing Templates. The template provides space for Proposers to identify any assumptions or comments that will ensure the City understands what is being proposed.

If providing hourly rate sheets, Proposer shall not include rate ranges or averages.

Tyler has uploaded a separate cost proposal, as instructed on the procurement site. Please refer to that attachment for cost details.

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Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 124, Packet Page 157 City of Monterey Section 9 – Software Licensing and Maintenance Agreements ERP Procurement and Implementation Tyler Technologies, Inc.

Section 9 – Software Licensing and Maintenance
Agreements
In this section, the Proposer must provide any software licensing, maintenance, or 3rd party agreements that will be required to implement and use the Proposer’s solution.

Please reference Terms & Conditions below.
https://www.tylertech.com/portals/0/terms/public-administration/New-Public-Administration-GroupClients-SaaS-Agreement.pdf Monterey, CA (“Client”)
Request for Proposals ERP Procurement Including Implementation Services Tyler’s Statement of Exceptions to the Procurement Documents Tyler’s Proposal is based on the delivery of the requested software and services according to Tyler’s standard implementation methodology and Tyler’s standard contract. That methodology, and that contract, have been refined and enhanced over Tyler’s many years of operation in the public sector information technology market. Tyler’s submission of its Proposal does not waive Tyler’s right to negotiate any and all terms to the mutual satisfaction of the parties. Tyler will be obligated to provide products and services only upon execution, and under the terms and conditions, of the mutually negotiated contract between Tyler and the Client.

Tyler considers its implementation methodology and its contract to be the starting point for those negotiations. A link to, or copy of, Tyler’s standard contract is included for your reference. If you ask to incorporate your procurement documents and our Proposal documents into the contract package, we will agree to do so as long as the order of priority is: (a) the final, negotiated contract; (b) our Proposal documentation; and (c) your procurement documentation.

Tyler is providing representative exceptions to standard procurement terms and conditions for your review.

This list may not include all RFP terms and conditions Tyler may wish to negotiate if selected, and it does not negate any of the expectations Tyler has stated above.
• Contract Document: Tyler expects to use the standard Tyler contract as the basis for beginning contract negotiations, as it contains language specific to the software industry, such as license grant and intellectual property infringement. Tyler recognizes that there may be clauses of particular importance to the Client that may not be included in the Tyler contract. Tyler is amenable to accommodating the Client’s contract requests by incorporating mutually agreed clauses into the Tyler contract.

With respect to the RFP’s request for alternative language for exceptions taken, Tyler puts forth the applicable terms as contained in the included sample contract as its proposed alternative language.

Tyler is glad to be a current partner with the City of Monterey, California, and we recognize that certain mutually agreeable terms have previously been negotiated with respect to our existing contract[s]. Tyler hopes to continue this partnership, and we are willing to consider such terms should an agreement result from this Proposal.

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Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 125, Packet Page 158 City of Monterey Section 9 – Software Licensing and Maintenance Agreements ERP Procurement and Implementation Tyler Technologies, Inc.

• Insurance: Tyler has provided its evidence of insurance certificate. Tyler’s insurance program is established at a corporate level and is not subject to change for individual customers. While performing services under an agreement with the Client, we will agree to maintain the following levels of insurance:
(a) Commercial General Liability (CGL) of $1,000,000 per occurrence and $2,000,000 in the aggregate; (b) Automobile Liability of $1,000,000; (c) Professional Liability (including Cyber Liability) of $1,000,000; (d) Workers’ Compensation complying with applicable statutory requirements; and (e) Excess/Umbrella Liability of $5,000,000 per occurrence and in the aggregate. • Ownership: We do not agree to work-for-hire provisions. Tyler retains all intellectual property and confidentiality rights in and to our proprietary and/or confidential information and deliverables. • Public Disclosure: Tyler will comply with applicable public records laws. Disclosure may be made only to the extent disclosure is required by law, provided, however, that the Client shall give prompt notice of the service of process or other documentation that underlies such requirement to Tyler so that it may obtain a protective order or otherwise protect the confidentiality of Tyler’s confidential information. • Pricing: Tyler adheres to its pricing as set forth in its Proposal. Any fees for subsequent periods of time or additional services not addressed in Tyler’s Proposal shall be at Tyler’s then-current rates. Unless noted otherwise, our services rates do not include travel expenses, which are separately estimated and are payable in accordance with our then-current Business Travel Policy. Unless expressly indicated otherwise, the fees we have quoted do not include any taxes.
• Information Security and Privacy: Information security is important to Tyler and to every agency and jurisdiction we serve. Tyler agrees to comply with all relevant federal and state laws and regulations on security and privacy, and its handling of security breaches, including notification to customers, conforms to applicable state and federal law. Tyler maintains industry-standard information technology and security policies and practices at a company-wide level, including a documented security incident response plan, that are not subject to change on a client-by-client basis. For hosted services, Tyler utilizes industry standard public cloud deployment methods that provide the highest commercially reasonable system availability and performance. Tyler implements systems utilizing shared responsibility models where responsibility for physical infrastructure is provided by the public cloud provider, application deployment is managed by Tyler, and application configuration is maintained by the customer, where applicable. Tyler follows security best practices dictated and defined by the following three assurance audits: SOX-404 Financial and IT General Controls, PCI Security Council PA-DSS/PCI-DSS, and the AICPA SSAE-21 SOC 1 & SOC 2 Assurance Audits. Our security policy is based on the full NIST Cybersecurity Framework and is reviewed during each audit.
• Compliance with Laws and Regulations: We will comply with all applicable state and federal laws, ordinances, orders, decrees, and regulations. Tyler reserves the right to review and discuss with the Client specific laws and regulations that the Client wishes to incorporate into the final contract. The quoted fees are based, in part, on the cost of compliance with applicable laws existing as of the Proposal submission date. Should laws applicable to Tyler’s performance under the contract change, Tyler reserves the right to, for example, seek a change order for the additional work, time and/or cost that may be required to comply with the new law, ordinance or regulation. To the extent compliance requires a modification to the Tyler software, Tyler will provide that modification according to the provisions set forth in the Tyler contract or as otherwise agreed to by the parties.
• Termination: Tyler's standard practice is not to include a termination for convenience provision in its contracts, given the significant investments made by both parties to the procurement and ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 126, Packet Page 159 City of Monterey Section 9 – Software Licensing and Maintenance Agreements ERP Procurement and Implementation Tyler Technologies, Inc.

implementation. Tyler relies instead on its termination provisions for cause, non-appropriation, and/or force majeure. The Client may terminate the contract for cause in the event Tyler fails to cure a material breach according to the terms of the dispute resolution process set forth in Tyler’s standard contract.

The Client will make payment to Tyler for all products, services and expenses delivered or incurred through the effective date of termination that were not previously disputed under the contract. Payment for disputed products, services and expenses, and the Client’s remedies, will be determined through the mutually agreed dispute resolution process.
• Warranties: Tyler provides a comprehensive, objective software warranty tied to functional descriptions of the Tyler software. Tyler does not provide implied warranties, including the implied warranties of merchantability and fitness for a particular purpose, as they are subjective. For as long as the Client is current on paying its fees, Tyler warrants that the Tyler software will substantially conform to the functional descriptions of the Tyler software contained in Tyler’s Proposal, or their functional equivalent.

Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our then-current documentation. Tyler warrants that it will perform services in a professional, workmanlike manner, consistent with industry standards. In the event Tyler provides services that do not conform to this warranty, Tyler will re-perform the services at no additional cost to the Client. Tyler passes through to its clients all warranties received on third party products. Tyler disclaims all other warranties.
• Limitation of Liability: Except as otherwise expressly set forth in the agreement, Tyler’s liability for damages arising out of the contract, whether based on a theory of contract or tort, including negligence and strict liability, shall be limited to the lesser of (a) Client’s actual direct damages or (b) the amounts paid by Client under the contract for the then-current term. To the maximum extent permitted by applicable law, in no event shall Tyler be liable for any special, incidental, punitive, indirect, or consequential damages whatsoever, even if Tyler has been advised of the possibility of such damages. • Indemnification: Tyler shall defend, indemnify and hold harmless the Client from and against any and all direct claims, losses, liabilities, damages, costs and expenses (including reasonable attorney's fees and costs) from third parties for personal injury or property damage arising from Tyler's negligence or willful misconduct; or Tyler’s violation of a law applicable to Tyler’s performance under the contract. The Client must notify Tyler promptly in writing of the claim and give Tyler sole control over its defense or settlement. The Client agrees to provide Tyler with reasonable assistance, cooperation, and information in defending the claim at Tyler’s expense.
• Disentanglement and Return of Client Data: In connection with the termination of the contract for any reason, and only upon the execution of a mutually agreed change order or addendum, Tyler will use commercially reasonable efforts to accomplish an adequate and timely transition from Tyler to the Client, or to any replacement providers designated by the Client (a “Disentanglement”). The parties shall reasonably cooperate during Disentanglement. Client shall reimburse Tyler for Disentanglement services provided by Tyler at Tyler’s then-current rates, plus reasonable costs and expenses, as set forth in the parties’ executed change order or addendum.
• Exclusion of Damages: To the maximum extent permitted by applicable law, in no event shall Tyler be liable for any special, incidental, punitive, indirect, or consequential damages whatsoever, even if Tyler has been advised of the possibility of such damages. Tyler cannot agree to liquidated damages provisions.

ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 127, Packet Page 160 ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 128, Packet Page 161 ATTACHMENT 3
Council Regular Meeting, 10/21/2025, Item No. 3., Item Page 129, Packet Page 162 Council
Agenda Report
№11/25
FROM: Andrea Renny, Public Works Director
Prepared By: Kevin Anderson, Engineering Project Manager SUBJECT: Authorize a Memorandum of Agreement with Monterey One Water for the 2025 Monterey Regional Stormwater Management Program (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council approve a resolution authorizing the City Manager, or their designee, to execute the 2025
Monterey Regional Stormwater Management Program
(MRSWMP) Memorandum of Agreement (“MOA”) with
Monterey One Water. This action will authorize sharing the cost of managing storm water permit compliance, etc. with participating entities.

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.

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

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:

Adoption of the 2025 MOA supports compliance with the
federal Clean Water Act (33 U.S.C.§ 1251 et seq.) and the State Water Resources Control Board’s (SWRCB) National
Pollutant Discharge Elimination System (NPDES) Phase II Municipal Separate Storm Sewer System (MS4) General
Permit (Order No. 2013-0001-DWQ, as amended and
anticipated to be reissued in 2026). Participation in the Agenda Report Highlights
 The City Council is recommended to
approve a Memorandum of
Agreement (MOA) with Monterey
One Water for the 2025 Monterey
Regional Stormwater Management
Program (MRSWMP).
 The MOA supports compliance with
federal and state stormwater
regulations, including the Clean
Water Act and the MS4 General
Permit.
 The City’s financial contribution for
the program is based on a
population-based cost-sharing
formula, with $87,113 approved for
FY 2025 and $98,192 for FY 2026.
 The MOA includes updates to costsharing formulas, administrative responsibilities, and bylaws, and
was unanimously approved by the
MRSWMP Management
Committee.
 Participation in the MOA allows the
City to share costs regionally,
avoiding significant financial
burdens for regulatory compliance.

Date: 10/21/2025
Item No.: 4.

Council Regular Meeting, 10/21/2025, Item No. 4., Item Page 1, Packet Page 163 №11/25
Monterey Regional Stormwater Management Program (MRSWMP) provides a legally recognized framework for cooperative regional stormwater management which assists the City in meeting mandatory permit requirements related to pollutant discharge reduction, public outreach, monitoring, and reporting.

This action is consistent with the City of Monterey’s Stormwater Ordinance (MCC Chapter 31.5) and Council policy to authorize agreements with outside agencies.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The City’s financial obligation will continue to be determined through the MRSWMP’s adopted annual budget and calculated using the population-based cost-sharing formula set forth in the MOA. For Fiscal Year 2025, the City’s approved contribution was $87,113, and for Fiscal Year 2026, the City’s approved contribution is $98,192.

These invoices are paid from the City’s Stormwater Utility Professional Services Fund (Account No. 280-310-3121-0000-4240). Annual contributions may vary slightly from year to year depending on population adjustments and program costs; however no additional fiscal impact is anticipated beyond the City’s regular stormwater program contributions.

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:

The Council could choose to not authorize this MOA; however, this is not recommended. The MOA allows the City to participate in a regional cost share for management of the stormwater permit. Without the regional cost share, the City would incur substantial increased costs in order to ensure regulatory compliance.

DISCUSSION:

The MRSWMP Management Committee formed an MOA Ad Hoc Committee in January 2025 to update the agreement to reflect current program membership, clarify administrative responsibilities, and prepare for the forthcoming MS4 permit reissuance expected in 2026.

The new MOA will require biannual invoicing for expenses incurred and updates the costsharing formulas, indirect costs limitations and budget amendments. Other administrative updates include revised bylaws and inclusion of the Agency Procurement Policy.

Council Regular Meeting, 10/21/2025, Item No. 4., Item Page 2, Packet Page 164 №11/25
The draft MOA was unanimously approved by the MRSWMP Management Committee on June 25, 2025, and is now being presented to each participating jurisdiction for formal adoption.

Participating agencies include the cities of Monterey, Carmel-by-the-Sea, Del Rey Oaks, Pacific Grove, Sand City, and Seaside, as well as the County of Monterey.

KA/ap
Attachments: 1. Resolution
e: Paul Sciuto, General Manager, Monterey One Water
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, 10/21/2025, Item No. 4., Item Page 3, Packet Page 165 RESOLUTION NO. __-___ C.S.

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

AUTHORIZING A MEMORANDUM OF AGREEMENT WITH MONTEREY ONE WATER FOR THE 2025 MONTEREY REGIONAL STORMWATER MANAGEMENT PROGRAM WHEREAS, the Federal Clean Water Act requires municipalities to comply with the National Pollutant Discharge Elimination System (NPDES) Phase II Municipal Separate Storm Sewer System (MS4) permit requirements;
WHEREAS, the Monterey Regional Stormwater Management Program (MRSWMP) was formed in 2002 to provide coordinated regional compliance among participating jurisdictions; WHEREAS, the City of Monterey entered into a Memorandum of Agreement (MOA) with the other member agencies in 2013, with a population update in 2020; WHEREAS, the MRSWMP Management Committee has prepared an updated MOA to reflect current program membership, administrative structure, and upcoming permit reissuance; WHEREAS, on June 25, 2025, the MRSWMP Management Committee unanimously approved the 2025 MOA and directed member agencies to seek governing body approval; 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 the City Manager, or their designee, to execute the Council Regular Meeting, 10/21/2025, Item No. 4., Item Page 4, Packet Page 166 2025 Monterey Regional Stormwater Management Program Memorandum of Agreement with Monterey One Water.

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, 10/21/2025, Item No. 4., Item Page 5, Packet Page 167 Council
Agenda Report
FROM: Andrea Renny, Public Works Director
Prepared By: Marissa Garcia, Engineering Assistant
SUBJECT: Authorize an Amendment to the Professional Services Agreement with SJ Construction Management for Construction Management and Resident Engineering Services for the Del Monte and Casa Verde Recreational Trail Intersection Improvement Project to Increase the Not-to-Exceed Amount From $367,998.74 to $529,658.40 and Extend the Contract by Six Months(Exempt from CEQA, Article 19, Section 15301, Class 1) ***CIP/NCIP*** RECOMMENDATION:

That the City Council adopt the attached resolution that authorize an amendment to the Professional Services
Agreement with SJ Construction Management for
Construction Management and Resident Engineering
Services for the Del Monte and Casa Verde
Recreational Trail Intersection Improvement Project to
increase the not-to-exceed amount from $367,998.74
to $529,658.40, an increase to the contract of
$161,659.66, and extend the contract by an additional
six months.

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.

POLICY IMPLICATIONS:

This action is consistent with the City Council’s Value Drivers and Strategic Priorities of Quality of Life –
Agenda Report Highlights
 The City Council is recommended to
approve an amendment to increase
the contract amount for SJ
Construction Management by
$161,659.66 and extend the
contract by six months.
 The Del Monte and Casa Verde
Intersection Improvement Project
aims to enhance pedestrian,
bicycle, and trail safety while
addressing ADA compliance and
traffic signal modifications.
 The project is federally funded, with
$923,832 awarded, and delays
could jeopardize grant funding.
 Construction management services
are critical to meeting strict federal
grant requirements and ensuring
project completion.
 The project addresses a highcollision area and provides safe access for residents, commuters,
and recreational users in a vital
community link.

Date: 10/21/2025
Item No.: 5.

Council Regular Meeting, 10/21/2025, Item No. 5., Item Page 1, Packet Page 168 №10/24
“Respond effectively to neighborhood concerns;” Fiscal Stewardship – “Prioritize funding models and sources for facility rehabilitation, repair, and replacement”; Active Mobility – “Maintain and repair core street, roadway, and storm drain infrastructure” and “Continue to enhance mobility for people of all ages and abilities.” This action is in accordance with Chapter 28-Purchasing of the City Code, which requires Public Works project contract awards exceeding $150,000 to be approved by City Council.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: Yes.

FISCAL IMPLICATIONS:

The Del Monte and Casa Verde Recreational Trail Intersection Improvement Project has experienced delays due to unforeseen circumstances arising from site conditions and material supply delays.

This project is grant funded, with strict construction management and inspection requirements; therefore, the City has hired a Construction Management and Resident Engineering services consultant. Construction management support is needed for the remainder of the project duration, and sufficient funding is available to support the increase of $161,659.66 to complete the project.

Proposed Funding Source:

CIP Account: 35C1851(Measure X) $1,482,027.14
As of September 25, 2025, sufficient funding is available for this authorization.

ENVIRONMENTAL DETERMINATION:

The City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15301, Class 1) because the project is an intersection improvement project that involves intersection operation improvements, pedestrian improvements, bicycle improvements, and recreation trail crossing improvements. All work is within the public right-of-way and there will be no creation of new lanes. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions founds 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. Exception a - Location - does not apply to projects which are exempt under Class 1.

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. There would be no cumulative impact because the project does not involve the creation of additional automobile lanes.

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 unusual circumstances are anticipated due to improvements' limited scope and distinct locations.

Council Regular Meeting, 10/21/2025, Item No. 5., Item Page 2, Packet Page 169 №10/24
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). The project would not be visible from 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. No impact to sites included on any list compiled pursuant to Section 65962.5 of the Government code would occur.

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. The project is located in the area of high archeological sensitivity as shown in the General Plan (Figure 8).

The project will include digging into native soil at a depth of approximately 13 feet (only for the traffic signal pole foundations), a depth typically within the native soil. A Phase I Archeological Report, dated January 4, 2023, was prepared by Dudek for the Del Monte Avenue and Casa Verde Way intersection in anticipation of this improvement project. The study concluded that there is moderate potential for encountering cultural resources during the planned construction.

As recommended by the study, the project will include an on-site qualified archeological monitor for all ground disturbing activities during construction, and will comply with regulations regarding accidental discovery of human remains. Therefore, the project would not have an impact on archeological resources.

ALTERNATIVES CONSIDERED:

No alternatives are recommended. This project is federally funded and has a strict timeline. Any delays to this project could jeopardize the City’s ability to meet the Highway Safety Improvement Program (HSIP) timely use of funds grant deadlines for the Del Monte and Casa Verde and Recreation Trail Crossing Intersection Improvement Project, which could force the City to forfeit the $923,832 in grant funding. Any lapse of construction management or inspection support could also jeopardize grant funds.

DISCUSSION:

Project Overview
In August of 2018, City staff applied for a competitive grant through the Highway Safety Improvement Program (HSIP) to fund intersection improvements at Del Monte and Casa Verde.

The project was first identified as a part of a community planning process. The project was initiated through the Neighborhood and Community Improvement Program (NCIP). The intersection of Del Monte and Casa Verde is the only entrance into the Del Monte Beach Neighborhood and Del Monte Beach (a public beach). Further review of the intersection shows a high concentration of collisions related to the unique characteristics of the area surrounding Casa Verde, notably the rec trail crossing.

This intersection is a critical convergence point, bringing together the main neighborhood entrance, a highly utilized trail crossing, and a primary commute route into the city, especially for bicyclists using the Monterey Bay Coastal Recreational Trail. The Recreational Trail links the cities of Marina, Sand City, and Seaside to Monterey and Pacific Grove. The trail also connects employment centers such as Cannery Row and Downtown to residential areas and is used Council Regular Meeting, 10/21/2025, Item No. 5., Item Page 3, Packet Page 170 №10/24
throughout the day. The project will provide safe access for bicyclists and pedestrians on a vital link between residential, commercial, educational, and community facilities. Design and construction improvements included in this project are trail and crosswalk improvements, traffic signal safety modifications to include protected left turns on Casa Verde, and ADA improvements.

Funding
The Neighborhood and Community Improvement Program (NCIP) funded the HSIP grant application process and ‘earmarked’ the local matching funds. The City was successful in obtaining the grant funding by demonstrating the need and purpose of this project, showing a Benefit-to-Cost ratio of 12.1, which far exceeded the required ratio of 3.5.

The California Department of Transportation (Caltrans) – Division of Local Assistance awarded the City of Monterey a $923,832 grant for the Del Monte and Casa Verde and Recreation Trail Crossing Intersection Improvement Project.

Construction Management
Because this project is federally funded, a construction management/resident engineering team is needed to assist with the strict grant requirements. A request for proposal was prepared by staff and extensively advertised to solicit proposals from qualified firms. Several qualified consulting firms downloaded the RFP documents; however, the City received only one qualified proposal. Selection of the best qualified firm was made in accordance with Section 28-30 of the City’s Purchasing Ordinance, and the City awarded the contract to SJ Construction Management to help oversee the project being constructed by Precision Grade, Inc.

SJ Construction Management is a consulting firm specializing in Construction Management services. With over 25 years of combined experience, the firm team has successfully managed numerous infrastructure and public works projects across the Central Valley and Bay Area.

They have worked on several public works projects with State and Federal funding from preconstruction to completion, ensuring compliance with all regulatory standards and delivering quality results.

Project Schedule Delays
Precision Grade, Inc., the contractor on the project, was to complete the project within 150 working days, and the original expected date of completion was April 7, 2025. However, the project experienced several delays, prompting this request to increase the cost and duration of the City’s contract with SJ Construction Management.

It is paramount that the City retain this construction management consultants’ services to oversee the project to its completion.

MG
Attachments: 1. Resolution
e: Andrew Easterling, City Engineer
Diana Garrett, Caltrans District 5 Local Assistance
SJ Construction Management, Inc.

Council Regular Meeting, 10/21/2025, Item No. 5., Item Page 4, Packet Page 171 №10/24
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, 10/21/2025, Item No. 5., Item Page 5, Packet Page 172 RESOLUTION NO. __-___ C.S.

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

AUTHORIZING AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH

SJ CONSTRUCTION MANAGEMENT FOR CONSTRUCTION MANAGEMENT AND

RESIDENT ENGINEERING SERVICES FOR THE DEL MONTE AND CASA VERDE

RECREATIONAL TRAIL INTERSECTION IMPROVEMENT PROJECT TO INCREASE THE NOT-TO-EXCEED AMOUNT FROM $367,998.74 TO $529,658.40 AND EXTEND THE CONTRACT BY SIX MONTHS ***CIP/NCIP***
WHEREAS, on the 11th day of June 2025, at 5:00 pm the City of Monterey received one (1) electronic bid through the City’s e-Procurement Portal, Open Gov Procurement, for the Del Monte and Casa Verde Recreational Trail Intersection Improvement Project (37C1214) (“Project”);
WHEREAS, SJ Construction Management, the sole submission, was selected for the Project;
WHEREAS, selection of the best qualified firms was made in accordance with Section 28-30 of the City’s Purchasing Ordinance;
WHEREAS, a construction management/resident engineering team is needed to assist the City during construction of the Project;
WHEREAS, the Project has experienced delays due to unforeseen circumstances which have resulted in an extended project timeline;
WHEREAS, sufficient funds, in the amount of $1,482,027.14, are available in the Measure X Identified Safety Projects account (35c1851) to complete the work; WHEREAS, Measure X is an ideal source of funding for this project because the project is consistent with the goals of Measure X in that it improves safety on local roads and highways; improves transportation for seniors, young people, and people with disabilities; and makes walking and biking safer; and,
WHEREAS, the City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15301, Class 1) because the project is an intersection improvement project that involves intersection operation improvements, pedestrian improvements, bicycle improvements, and recreation trail crossing improvements. All work is within the public right-of-way and there will be no creation of new lanes. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions founds 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 Council Regular Meeting, 10/21/2025, Item No. 5., Item Page 6, Packet Page 173 adopted pursuant to law by federal, state, or local agencies. Exception a - Location - does not apply to projects which are exempt under Class 1.

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. There would be no cumulative impact because the project does not involve the creation of additional automobile lanes.

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 unusual circumstances are anticipated due to improvements' limited scope and distinct locations.

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). The project would not be visible from 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. No impact to sites included on any list compiled pursuant to Section 65962.5 of the Government code would occur.

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. The project is located in the area of high archeological sensitivity as shown in the General Plan (Figure 8).

The project will include digging into native soil at a depth of approximately 13 feet (only for the traffic signal pole foundations), a depth typically within the native soil. A Phase I Archeological Report, dated January 4, 2023, was prepared by Dudek for the Del Monte Avenue and Casa Verde Way intersection in anticipation of this improvement project. The study concluded that there is moderate potential for encountering cultural resources during the planned construction.

As recommended by the study, the project will include an on-site qualified archeological monitor for all ground disturbing activities during construction, and will comply with regulations regarding accidental discovery of human remains. Therefore, the project would not have an impact on archeological resources.

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 an amendment to the professional services agreement with SJ Construction Management for construction management and resident engineering services for the Del Monte and Casa Verde Recreational Trail Intersection Improvement Project (Ag-12353) to increase the not-to-exceed amount from $367,998.74 to Council Regular Meeting, 10/21/2025, Item No. 5., Item Page 7, Packet Page 174 $529,658.40, an increase to the contract of $161,659.66, and to extend the contract by six months to expire on December 31, 2026.

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, 10/21/2025, Item No. 5., Item Page 8, Packet Page 175 Council
Agenda Report
№11/25
FROM: Andrew Miller, Fire Chief
Prepared By: Cheryl Kouretas, Senior Administrative Analyst SUBJECT: Authorize the City of Monterey Fire Department to Accept the Assistance to Firefighters Grant Funding Award and Appropriate 10% Cost Share Funds for the Paramedic Program (Not a Project under CEQA 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 Fire Department to Accept the Assistance to Firefighters Grant (AFG) Funding Award and Appropriate
10% Cost Share Funds for the paramedic program.

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.

POLICY IMPLICATIONS:

It is within the City Council’s purview to authorize the acceptance of the Assistance to Firefighters Grant and to appropriate funds for a 10% cost share. This is consistent with past Council actions authorizing funds to support the Fire Department’s paramedic program.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT)
APPLIES: No
FISCAL IMPLICATIONS:

The City of Monterey was awarded a Federal Emergency
Management Agency (FEMA) FY2024 Assistance to
Firefighters Grant (AFG) in the amount of $439,017 to send three (3) personnel to paramedic school. As a condition of the grant, the City is responsible for a cost-share of 10% of the Federal dollars dispersed as shown below.

Federal resources awarded $399,106.36
Required non-federal resources (10% cost share) $39,910.64 Total Grant $439,017
Agenda Report Highlights
 The City of Monterey Fire
Department was awarded a
$439,017 FEMA Assistance to
Firefighters Grant to train three
personnel as paramedics.
 The City is responsible for a 10%
cost share of $39,910.64, which can
be covered by existing funds.
 The Fire Department aims to
increase its paramedic-trained
personnel from 23 to the minimum
required 28 for a fully ALS
department.
 Training existing personnel as
paramedics is cost-effective and
supports career development,
retention, and program growth.
 The City Council is recommended to
adopt a resolution to accept the
grant and allocate the required cost
share.

Date: 10/21/2025
Item No.: 6.

Council Regular Meeting, 10/21/2025, Item No. 6., Item Page 1, Packet Page 176 №11/25
The Monterey Fire Department brings in revenue from Monterey Peninsula College for training each year (about $70,000 per year) into the 291 Fund. There are sufficient funds in the account to pay for the 10% cost share.

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 accept this grant to send three (3) current firefighters to attend paramedic school and become licensed paramedics. This is not recommended as previous council actions have supported the growth of the Fire Department’s paramedic program.

DISCUSSION:

There is a need to bring additional paramedic-trained personnel into the program to support the growing program. The Fire Department currently has 23 personnel that are paramedics. To become a fully ALS department, the minimum number of paramedics required is 28. This grant, in conjunction with recruitment efforts, will allow the department to continue growing the program which will greatly benefit the community. Paramedics receive over 1400 hours of initial training and can provide additional services such as advanced airway management, use of a non-automatic external cardiac defibrillator, initiating intra-venous lines and administering medications, and other related interventions. Essentially, paramedics bring all services of the hospital emergency room to the scene of a medical emergency enabling those interventions to be provided much sooner.

Adding paramedics to the department can be accomplished by hiring already trained personnel or providing the training to existing personnel. The City recently recruited for paramedics, but finding qualified firefighter/paramedics has become increasingly difficult due to a combination of factors, including a nationwide shortage of qualified candidates and the City competing with Bay area salaries.

While training personnel to become paramedics is costly as it involves not only the costs for the training program but also significant overtime to send personnel to class on their days off and back-fill for them while they are in class on duty days, the benefits of training existing personnel are substantial. First, it provides an excellent career development opportunity to personnel which may increase retention and loyalty. Second, there is always a risk that newly-hired personnel who are already trained paramedics may not successfully complete the firefighter academy while existing personnel are a known success. This grant provides 90% of the cost to Council Regular Meeting, 10/21/2025, Item No. 6., Item Page 2, Packet Page 177 №11/25
train 3 personnel and the 10% cost share is a prudent investment in the City’s paramedic program.

Staff recommends that the City Council adopt the attached resolution authorizing the City of Monterey Fire Department to accept the Assistance to Firefighters Grant (AFG) Funding Award and Appropriate 10% Cost Share Funds for the paramedic program.

AM/ck
Attachments: 1. Resolution
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, 10/21/2025, Item No. 6., Item Page 3, Packet Page 178 RESOLUTION NO. __-___ C.S.

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

AUTHORIZING THE CITY OF MONTEREY FIRE DEPARTMENT TO ACCEPT THE

ASSISTANCE TO FIREFIGHTERS GRANT FUNDING AWARD AND APPROPRIATE 10% COST SHARE FUNDS FOR THE PARAMEDIC PROGRAM
WHEREAS, the City of Monterey Fire Department has provided Advanced Life Support (ALS) Services since 2018; and
WHEREAS, the City of Monterey was awarded a Federal Emergency Management Agency (FEMA) FY2024 Assistance to Firefighters (AFG) Grant in the amount of $439,017 to send three (3) personnel to paramedic school; and
WHEREAS, as a condition of the grant, the City of Monterey is responsible for a costshare of 10% of the federal dollars dispersed in the amount of $39,910.64; and WHEREAS, acceptance of the grant would allow the City of Monterey Fire Department to continue expanding the paramedic program which will greatly benefit the community with a higher level of emergency medical services provided; 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 the City of Monterey Fire Department to accept the Council Regular Meeting, 10/21/2025, Item No. 6., Item Page 4, Packet Page 179 Assistance to Firefighters (AFG) Grant funding award and appropriate 10% cost share funds for the paramedic program/school from Fund 291 in account 291-250-2540-0000-4222.

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, 10/21/2025, Item No. 6., Item Page 5, Packet Page 180 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Janna Aldrete, Property Manager
SUBJECT: Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 886 Cannery Row; Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties:

Monterey Bay Aquarium Foundation; Under Negotiation: Review of Rent (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council appoint agency negotiators for
conference with real property negotiators pursuant to
Government Code Section 54956.8 to discuss and
provide confidential direction for review of rent for the Monterey Bay Aquarium tidelands lease.

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:

Closed session confidential review of real estate matters is allowed.

The Surplus Land Act does not apply to Tidelands
property.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There are no fiscal implications related to the
recommendation to appoint agency negotiators.

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 Agenda Report Highlights
 The City Council is recommended
to appoint agency negotiators to
review the Monterey Bay
Aquarium's tidelands lease rent.
 The lease agreement allows
periodic rent reviews every five
years, with the last review tabled
in 2018.
 The current annual rent for the
tidelands area is $1.00, and the
Council is considering
adjustments to indirectly address
the City's $10 million structural
deficit.
 Closed session discussions on
this matter are confidential and
permitted under Government
Code Section 54956.8.
 The Surplus Land Act does not
apply to tidelands property.

Date: 10/21/2025
Item No.: 7.

Council Regular Meeting, 10/21/2025, Item No. 7., Item Page 1, Packet Page 181 №11/24
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 decide not to appoint negotiators or appoint different negotiators. This is not recommended by staff. It is appropriate that the Council appoint agency negotiators and authorize a confidential discussion regarding the rent review.

DISCUSSION:

Pursuant to the lease agreement between the City and the Monterey Bay Aquarium Foundation (“Aquarium”), dated March 10, 1981 (“Lease”), the Aquarium leases tidelands from the City. As established in the Lease, the City is authorized to conduct periodic review of the rental amount not less than every five (5) years. The most recent rent review occurred in 2018, at which time the City Council tabled the item.

On September 2, 2025, the City Council discussed strategies to reduce the City’s $10 million structural deficit. One of the strategies that the Council considered was reviewing the $1.00 annual rent paid by the Aquarium for its leased tidelands area that could generate revenue for the Tidelands Fund. A closed session confidential review of this real estate matter is warranted and allowed.

KC/ja/ad
e: Julie Packard, Monterey Bay Aquarium
Martine Watkins, Monterey Bay Aquarium
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, 10/21/2025, Item No. 7., Item Page 2, Packet Page 182 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Levi Hill, AICP, Planning Manager
SUBJECT: Adopt the Planning Commission Recommendation and Approve 1st Reading of an Ordinance Amending Chapter 38, Section 38-112.5 of the Monterey City Code to Establish Local Density Incentives for Qualifying Housing Projects (CEQA: Certified Environmental Impact Report (SCH No. 2023080034), Article 11, Section 15168(c))
RECOMMENDATION:

That the City Council pass the ordinance to a second
reading. The Planning Commission considered, and
unanimously recommended, the adoption of this
ordinance at its meeting held on September 23, 2025.

VALUE DRIVERS:

Support efforts and policies that provide equitable access to affordable housing in Monterey and the region.

Support affordable housing through modern zoning
policies/ordinances, ADU policies, housing grants,
review of density requirements, and consideration of
City-owned sites for affordable housing.

POLICY IMPLICATIONS:

The proposed ordinance amends City Code to provide
additional density and development incentives,
independent from and in addition to, State Density
Bonus incentives for 100 percent affordable projects.

The ordinance will further implement Housing Element
Program 3-C by providing local incentives for affordable housing.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

No fiscal implications have been identified.

Agenda Report Highlights
 The proposed ordinance amends
the Monterey City Code to provide
additional density incentives for 100
percent affordable housing projects.
 The amendment aligns with the
City's Housing Action Plan and
supports affordable housing
development for low and very lowincome families.
 Qualifying projects can receive up to
a 50 percent density bonus,
independent of State Density Bonus
Law.
 The Planning Commission
unanimously recommended
adoption of the ordinance after a
public hearing on September 23,
2025.
 The amendment aims to increase
financial feasibility for affordable
housing developments by offsetting
associated costs.

Date: 10/21/2025
Item No.: 8.

Council Regular Meeting, 10/21/2025, Item No. 8., Item Page 1, Packet Page 183 №11/25
ENVIRONMENTAL DETERMINATION:

The City of Monterey Planning Office determined that there are no substantial changes proposed by the Project or under the circumstances in which the Proposed Project would be undertaken that would require major revisions of the Monterey 2031 General Plan Update EIR (SCH # 2023080034), certified July 16, 2024. The Proposed Project does not require preparation of a new subsequent or supplemental EIR due to either (1) the involvement of new significant environmental effects, (2) a substantial increase in the severity of previously identified significant effects, or (3) new information of substantial importance. No mitigation measures or alternatives previously found not to be feasible would in fact be feasible. The Proposed Project is consistent with and within the scope of the Monterey 2031 General Plan EIR.

ALTERNATIVES CONSIDERED:

The City Council could choose not to adopt the proposed amendment or approve the proposed ordinance with modifications.

DISCUSSION:

Background
On July 16, 2024, the City Council adopted the Monterey 2031 – General Plan Update, including the City’s 6th Cycle Housing Element. The housing element was subsequently certified by the California Department of Housing and Community Development on October 4, 2024.

The housing element identified locations for future housing development for all income levels.

The plan considers the housing development goals (3,654 units) established for the City by the Association of Monterey Bay Area Governments (AMBAG). This housing development number is commonly referred to as the Regional Housing Needs Assessment (RHNA).

In addition to identifying specific sites for future housing, the housing element contains goals, updated information, and strategic directions (policies and implementing actions) that the City is committed to undertaking to fulfill the City’s RHNA obligation commonly referred to as the Housing Action Plan.

The first implementation phase of programs included in the Housing Action Plan were adopted by City Council on December 17, 2024 including Programs 2-F and 3-C, density Bonus Amendments. Program 2-F proposed amendments to the City’s Density Bonus Ordinance to incorporate the current requirements of State density bonus law. Program 3-C established additional density bonus and development incentives for qualifying projects under local density bonus provisions.

Local Density Bonus
The City’s existing Local Density Bonus provisions target projects that consolidate small, adjacent lots and/or develop higher proportions of 2- and 3-bedroom units. Projects that commit to additional Moderate-Income units over and above those units required under the City’s Inclusionary Zoning Program would also qualify. An additional density bonus of up to 10%, along with increases in allowed building height, would be available through the program for Council Regular Meeting, 10/21/2025, Item No. 8., Item Page 2, Packet Page 184 №11/25
qualifying projects as needed to support a higher share of 2- and 3-bedroom units in the Alvarado District downtown and the Pacific / Munras / Cass Multifamily Overlay District.

MCC. Section 38-112.5(J)
J. Local Density Bonus.

1. Lot Consolidation. Multifamily housing projects that propose the consolidation of two or more legal parcels to create a single of lot of at least 0.50 acres may obtain a 10 percent density bonus independent from, and additional to, the provisions of State Density Bonus Law.

2. Two- and Three-Bedroom Units. Development projects that propose 70 percent of the total unit count to be two- and three-bedroom units may obtain a 10 percent density bonus independent from, and additional to, the provisions of State Density Bonus Law. Projects located in the Alvarado District of the Downtown Specific Plan and within the Pacific, Munras, and Cass Multifamily Overlay District (MF2) may receive one additional story in building height to facilitate achieving maximum densities.

3. Moderate-Income Units. Multifamily development projects that provide 40 percent of the project units for moderate-income household may obtain a 10 percent density bonus independent from, and additional to, the provisions of State Density Bonus Law.

Proposed Amendment
The proposed amendment would expand the qualifying criteria and resulting density bonus provided by the City’s Local Density Bonus provisions. The amendment would specifically target 100 percent affordable housing developments to incentivize increased deed restricted units at lower income affordability levels. The proposed amendment reads as follows:

4. 100 Percent Affordable Housing Developments. Multifamily housing projects meeting the criteria of Government Code Section 65915(b)(1)(G) may obtain a 50 percent density bonus independent from, and additional to, the provisions of State Density Bonus Law.

Planning Commission Recommendation
On September 23, 2025, the Planning Commission held a duly noticed public hearing, carefully considered all the information presented, including the agenda report and information submitted by interesting persons and recommended the City Council adopt first reading of the ordinance.

Analysis
Section 38-198.B of the Monterey City Code states that the Planning Commission shall make specific findings as to whether the proposed zoning regulations are consistent with the policies of the General Plan and the purposes of the Zoning Ordinance, as applicable.

The proposed amendment is consistent with the City's 6th, Cycle Housing Element, Housing Council Regular Meeting, 10/21/2025, Item No. 8., Item Page 3, Packet Page 185 №11/25
Action Plan Program 3-C in that it furthers the City’s commitment to facilitate housing opportunities for low and very low-income families. The amendment specifically targets 100 percent affordable projects and will provide an incentive for qualifying developments intended to offset the costs associated with developing affordable housing by increasing the financial feasibility of such projects.

In conclusion, staff recommends the City Council adopt the Planning Commission recommendation and approve a first reading of ordinances amending Chapter 38, Section 38- 112.5 of the Monterey City Code to establish local density incentives for qualifying housing projects.

KC/lh
Attachments: 1. Draft Ordinance
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, 10/21/2025, Item No. 8., Item Page 4, Packet Page 186 ORDINANCE NO. ____ C.S

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№08/22
AMENDING MONTEREY CITY CODE CHAPTER 38, SECTION 38-112.5

DENSITY BONUS TO ESTABLISH LOCAL DENSITY INCENTIVES

FOR QUALIFYING HOUSING PROJECTS
THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, Section 65915 et seq. of the California Government Code, known as State Density Bonus Law, requires a city to provide a developer that proposes a housing development in that city containing affordable and other types of housing with a density bonus and other incentives;
WHEREAS, California Government Code section 65915(a) requires that all jurisdictions within the state adopt an ordinance that specifies how compliance with State Density Bonus Law will be implemented;
WHEREAS, on December 17, 2024, the City Council adopted Ordinance No: 3689 amending Section 38-112.5 of the Monterey City Code specifying the City’s compliance with State Density Bonus Law and how it will be implemented; WHEREAS, Ordinance No: 3689 also established Local Density Incentives for qualifying housing projects to address the City’s need for lot consolidation, multi-bedroom units, and moderate-income units;
WHEREAS, additional density incentives are needed to enhance the feasibility of one hundred percent affordable housing developments;
WHEREAS, the Planning Commission, at a properly noticed public hearing on September 23, 2025, carefully considered all of the information presented to it, including the agenda report and information submitted at the public hearing by interested persons, and adopted a resolution recommending that the City Council adopt an ordinance; WHEREAS, the City of Monterey Planning Office determined that there are no substantial changes proposed by the Project or under the circumstances in which the Proposed Project would be undertaken that would require major revisions of the Monterey 2031 General Plan Update EIR (SCH # 2023080034), certified July 16, 2024. The Proposed Project does not require preparation of a new subsequent or supplemental EIR due to either (1) the involvement of new significant environmental effects, (2) a substantial increase in the severity of previously identified significant effects, or (3) new information of substantial importance. No mitigation measures or alternatives previously found not to be feasible would in fact be feasible. The Proposed Project is consistent with and within the scope of the Monterey 2031 General Plan Council Regular Meeting, 10/21/2025, Item No. 8., Item Page 5, Packet Page 187 2 EIR;
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: Chapter 38, Article 17, Section 38-112.5(J), Local Density Bonus, is amended as follows:

J. Local Density Bonus

4. 100 Percent Affordable Housing Developments. Multifamily housing projects meeting the criteria of Government Code Section 65915(b)(1)(G) may obtain a 50 percent density bonus independent from, and additional to, the provisions of State Density Bonus Law.

SECTION 4: All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 5: If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of these amendments and the application of such provisions to other persons or circumstances shall not be affected thereby.

SECTION 6: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 10/21/2025, Item No. 8., Item Page 6, Packet Page 188 Council
Agenda Report
№11/25
FROM: Rafaela T. King, Finance Director
SUBJECT: Adopt a City Council Engagements and Travel Reimbursement and Expenditure Policy and Amend Budget Resolution 25-058 to Increase City Council Travel Allocation by $7,200 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt a City Council Engagements
and Travel Reimbursement and Expenditure Policy and
amend the adopted budget by increasing the City
Council travel budget by $7,200.

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.

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

POLICY IMPLICATIONS:

The Mayor and Councilmembers, as elected
representatives of the City of Monterey, when attending professional and educational events that support their
roles, shall endeavor to maintain a standard of economy that generates the highest function and effectiveness at the lowest cost to the City.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

In both policy options presented by staff, each
Councilmember would have an equal annual budget for
engagements and travel of $3,500, and the Mayor would
have a $4,500 budget, to be allocated during the City’s budgeting process. The amount already adopted in the
FY 2025-26 budget is $11,300, equating to $2,147 for
Agenda Report Highlights
 The City Council is considering
adopting a policy to establish clear
guidelines for travel-related
expenses, with two proposed
options: Option A (pre-approval for
nonstandard conferences) and
Option B (self-regulation with
budget limits).
 The policy would allocate $3,500
annually for each Councilmember
and $4,500 for the Mayor, with no
rollover or budget transfers, and
amend the FY 2025-26 budget by
increasing the travel allocation by
$7,200.
 Sister City travel would require preauthorization by a majority vote of the City Council under both policy
options.
 Option A emphasizes transparency
and fiscal responsibility with preapproval for non-local engagements, while Option B offers
greater flexibility for
Councilmembers to select
engagements within their budget.

Date: 10/21/2025
Item No.: 9.

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 1, Packet Page 189 №10/24
each Councilmember and $2,712 for the Mayor. As a Council travel policy was not in place at the time of Council’s adoption of the 2025-26 fiscal year budget, this action would also amend the budget by increasing the travel allocation by $7,200 to align with the policy.

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:

The Council could suggest alternative policy requirements. The Council could also decline to adopt a City Council Engagements and Travel Reimbursement and Expenditure Policy, however that is not recommended.

DISCUSSION:

Background
During a Council Meeting on March 18, 2025 the Council discussed the need for a clear and comprehensive policy on City Council travel-related expenses, which would include travel related to Monterey’s Sister Cities. The item was tabled and City staff indicated that they would bring a policy proposal to the Council.

Staff surveyed other California cities and prepared two policy options that are in alignment with policy and standards in place throughout the state and are heavily based upon the existing City of Monterey travel policy that currently applies to the Mayor and Council. For reference, the $3,500 per member that is proposed in both options is roughly in the middle of surveyed cities’ travel budgets that, depending on the size and budget of the city, range between $2,000 and $5,714 per Councilmember. A few cities provide higher travel budgets to the Mayor than to members of the Council. Most cities surveyed require Council approval in some form, often for out-of-state or international travel and/or for expenditures over a specific dollar amount.

Expenses for travel/attendance by spouses/partners/family are not paid with public funds in any surveyed city. Sister city travel is funded either through sponsorship from the sister city organization or personal payment by the member, or if paid by the city, is funded within the member’s budget with Council pre-approval or other standardized approval processes.

Proposed Policy Options
The City Council Engagements and Travel Reimbursement and Expenditure Policy would establish processes and guidelines for the use of City funds for professional and educational event expenses, travel, and related costs incurred by members of the City Council. Its adoption will align with the City Council’s commitment to transparent and fiscally responsible governance.

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 2, Packet Page 190 №10/24
Staff presents two versions of the policy:

Option A, which would require pre-approval for non-standard conferences, and Option B, which would allow the Mayor and Councilmembers to determine which engagements they would attend on City business, within budget and except for Sister City travel.

The provisions of both policy options include an annual travel budget allocation of $3,500 per Councilmember and $4,500 for the Mayor, all-inclusive for the fiscal year. (The Mayor is allocated a higher dollar amount because invitations to meetings or events often come to the Mayor as the sole representative of the City). These allocations would be adjustable for future fiscal years through the annual budget process. For any travel in excess of an individual’s annual budget allocation, the member may opt to either pay the difference personally or bring a budget increase request to the Council for pre-approval. The average travel expenditure by the Monterey City Council in FY 2024-25 was $3,962 per member.

Policy Option A:
 Requires that the City Council pre-authorize non-local engagements exceeding 99.9 miles from City Hall, with the following exceptions explicitly pre-approved by the policy:
o The League of California Cities (“Cal Cities”) Mayors and Council Members Academy
o Cal Cities Annual Conference
o National League of Cities (“NLC”) City Summit
o NLC Congressional City Conference
o Association of Defense Communities (“ADC”) National Summit o Association of Defense Communities Installation Innovation Forum o The Mayor is pre-authorized to attend the United States Conference of Mayors’ Annual Meeting
 Requires adherence to all established budget and expense reimbursement guidelines.  Provides that Sister City travel would be subject to the same requirements as other nonlocal engagements and travel. This means they must be pre-authorized by a majority vote of the City Council and adhere to the established budget and expense reimbursement guidelines.

Policy Option B:
 Gives the Mayor and Councilmembers the discretion to select and attend engagement(s) that they find to be related to their official City role. This self-regulation approach would mean that the City would pay or reimburse for the registration and travel costs for any qualified (e.g., non-Sister City and not otherwise prohibited by the policy) engagement, without approval from the City Council, so long as the member does not exceed their annual travel budget allocation.
 Requires adherence to all established budget and expense reimbursement guidelines.  Requires pre-authorization by a majority vote of the City Council for Sister City travel.

Policy Option A is heavily based on the current policy dictating the Council’s travel expenditures, which is the City’s Purchasing Manual, Chapter 6, “Travel, Reimbursement & Employee Expenditure Policy." Policy Option B allows for greater flexibility.

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 3, Packet Page 191 №10/24
The following is a comparison:

Current Policy Policy Option A Policy Option B
Purpose General travel and
reimbursement policy
Focused on supporting
attendance of
professional/
educational events
aligned with Council
priorities
Less restrictive and
allows Mayor and
Council to attend
events and activities
related to any lawful
municipal purpose
Budget
Limitations
Not included in policy $3,500/yr. for each
Councilmember,
$4,500/yr. for Mayor,
adjusted during each
budget cycle; no
rollover or budget
allocation transfers.
$3,500/yr. for each
Councilmember,
$4,500/yr. for Mayor,
adjusted during each
budget cycle; no
rollover or budget
allocation transfers.

Preauthorization City Manager must
pre-approve all out-ofstate travel
Council pre-approval
required for non-local
engagements except
for a pre-authorized list
(Cal Cities, NLC, ADC
etc.)0F0F0F
1 No Council approval
required. The City
pays in advance or
reimburses for
qualified engagements
Local Travel
Definition
Within the Monterey
Peninsula
Within 99.9 miles’
driving distance of
Monterey City Hall
(includes all of the
counties of Santa
Clara, Santa Cruz, and
San Benito, and many
Bay Area cities)
No limits regarding
distance or travel.

Sister City
Travel
Not included in policy City Council preapproval requiredCity Council preapproval required Required
Documentation
for
Reimbursement
Must be filed within 10
days of the end of
travel
Must be filed within 20
days of the end of
travel
Must be filed within 20
days of the end of
travel
Non-Attendance Not included in policy No reimbursement if not attended (except
emergencies); must
reimburse City
No reimbursement if
not attended (except
emergencies); must
reimburse City
1 The City Manager serves at the pleasure of the Council (Charter Sec. 5.1) and should not oversee the expenses of individual Councilmembers. Instead, requiring the approval of the full Council for non-local engagements, which are likely to be more costly to the City, would be transparent and fiscally responsible, thereby aligning with the Council’s identified priorities and value drivers.

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 4, Packet Page 192 №10/24
Prohibited
Expenses
Spouse/family
expenses not covered
Adds: No expenses for
political or charitable
events
Adds: No expenses for
political or charitable
events
Staff Support Not included in policy Provides clear
explanation and limits
for administrative
assistance with travel
plans from City
Manager staff
Provides clear
explanation and limits
for administrative
assistance with travel
plans from City
Manager staff
Reporting Not included in policy Verbal report required at next Council
meeting after travel,
consistent with State
law
Verbal report required
at next Council
meeting after travel,
consistent with State
law
Staff recommends that the Council choose Option A or Option B and adopt the City Council Engagements and Travel Reimbursement and Expenditure Policy.

RTK
Attachments: 1. Draft Resolution

2. [Policy Option A] Exhibit A

3. [Policy Option B] 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, 10/21/2025, Item No. 9., Item Page 5, Packet Page 193 RESOLUTION NO. __-___ C.S.

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

ADOPTING A CITY COUNCIL ENGAGEMENTS AND TRAVEL REIMBURSEMENT AND EXPENDITURE POLICY, AND AMENDING BUDGET RESOLUTION 25-058 TO INCREASE THE CITY COUNCIL TRAVEL ALLOCATION BY $7,200
WHEREAS, the Council values its role 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; and has prioritized fostering a local government that is transparent and collaborative; WHEREAS, the Council has discussed the need for a clear and comprehensive policy on City Council travel-related expenses, which would include travel related to Monterey’s Sister Cities;
WHEREAS, with regard to engagements, travel, and related expenses, to this date the Council has been subject to Section 6 of the City’s Purchasing Manual, but eligible expenses and approval processes for travel to Monterey’s Sister Cities have not been clearly defined; 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 CITY COUNCIL OF THE CITY OF MONTEREY that all policies, procedures, and parts of resolutions in conflict herewith are hereby superseded, including but not limited to deleting the 5th recital in Resolution 17-141 which provides that “little, if any, out of pocket costs to the City of Monterey” would be incurred in the furtherance of Sister City relationships.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby adopts the City Council Engagements and Travel Reimbursement and Expenditure Policy, which is attached as Exhibit A.

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 6, Packet Page 194

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby amends Resolution 25-058, the 2025-26 budget, to increase the budget by $7,200 for Council and Mayor travel and meetings in account 101-010-0000-4209.

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, 10/21/2025, Item No. 9., Item Page 7, Packet Page 195

EXHIBIT A
PURPOSE:

To set forth clear requirements for the use of City funds for professional and educational event expenses, travel expenses, and related costs incurred by members of the City Council in support of the interests of the City of Monterey (“City”), and reflecting the City Council’s adopted value drivers.

POLICY:

The Mayor and Councilmembers, as elected representatives of the City of Monterey, when attending professional and educational events that support their roles, shall endeavor to maintain a standard of economy that generates the highest function and effectiveness at the lowest cost to the City.

1. GENERAL
A. Engagements. All professional and educational engagements such as conferences, meetings, academies, events, summits, seminars, luncheons, and forums (hereafter called “Engagements”) shall directly relate to the City Council’s identified priorities, and all related City Council travel and associated expense payments/reimbursements shall be limited to expenses deemed “reasonable and necessary.” Attending Engagements at the cost of the City is conducting official business on behalf of the City.

B. Economy. The most economical options shall be utilized for travel and lodging, in keeping with availability, convenience, and safety. Whenever possible, meals shall be provided in the most cost-effective manner in keeping with availability and convenience.

C. Transparency. This policy was approved by Resolution of the City Council, and modifications to this policy must be brought to the City Council for approval.

2. AUTHORIZATION AND LIMITS
A. Annual Budget Allocation. Each Councilmember shall have an equal annual budget for Engagements and travel of $3,500, and the Mayor shall have a $4,500 budget, to be allocated during the City’s budgeting process, and each member’s Engagement and travel expenses during a fiscal year shall be limited to this amount. Budgeted funds that are not expended do not roll over to the next fiscal year.

B. Authorization Requirements and Eligible Expenses. Authorization means that City funds may be used to cover eligible expenses for attending an Engagement. [Policy Option A]
Council Policy:

City Council Engagements and Travel
Reimbursement and Expenditure Policy
Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 8, Packet Page 196

EXHIBIT A
2 i. Local Engagements and Travel. Engagements requiring local travel (defined as within 99.9 miles’ driving distance from Monterey City Hall) do not require prior authorization by the City Council. The only eligible expenses for local Engagements are:

1. Attendance. Documented expenses required to register for and attend Engagements.

2. Meals. Documented meal expenses reimbursed only if necessary in conjunction with Engagement attendance and shall be capped at the per-diem rate. (If an Engagement includes a meal, the City shall not fund a substitute meal.)

3. Gratuities. Reimbursed as reasonable and necessary subject to 20% maximum.

4. Transportation. Reimbursed as reasonable and necessary.

Includes public transportation, vehicle use, tolls, taxis and ride share services, and mileage. Mileage will be paid at the current rate per mile allowable by the IRS.

5. Parking. Reimbursed only as reasonable and necessary, with valet parking reimbursed only if self-park is not available.

Requests for pre-payment or reimbursement must be submitted to the City Manager as described in Section 3(A)(i).
ii. Non-Local Engagements and Travel. Non-Local Engagements are 100+ miles’ driving distance beyond Monterey City Hall. The following Non-Local Engagements are pre-authorized by this policy for pre-payment or reimbursement by the City:
- The League of California Cities (“Cal Cities”) Mayors and Council Members Academy
- Cal Cities Annual Conference
- National League of Cities (“NLC”) City Summit
- NLC Congressional City Conference
- Association of Defense Communities (“ADC”) National Summit - The Mayor is pre-authorized to attend the United States Conference of Mayors’ Annual Meeting
All other Non-Local Engagements require pre-authorization by a majority vote of the City Council. The only eligible expenses for Council-approved Non-Local Engagements and travel are:

1. Attendance. Documented expenses required to register for and attend Engagements.

2. Meals. A portion of the Per Diem Allowance for each meal expense as reasonable and necessary while on City business, or reimbursement only for documented meal expenses. Documented meal reimbursements shall be capped at the per-diem rate. (If an Engagement includes a meal, the City shall not fund a substitute meal.)

3. Gratuities. Included in and covered by Per Diem Allowance, except that tips for handling City property are not included in a Per Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 9, Packet Page 197

EXHIBIT A
3 Diem Allowance and can be claimed separately with
documentation

4. Transportation. Reimbursed as reasonable and necessary.

Includes public transportation, airfare, vehicle use, tolls, taxis and ride share services, and mileage. Mileage will be paid at the current rate per mile allowable by the IRS.

5. Parking. Reimbursed only as reasonable and necessary, with valet parking reimbursed only if self-park is not available or is necessary to accommodate a disability.

6. Lodging. Reimbursed only as reasonable and necessary. Room and tax for member of Council only based on single occupancy.

7. Incidental Travel Expenses. Other personal need nominal costs incurred through travel are included in and covered by the Per Diem Allowance and are not submitted or covered separately through pre-payment or reimbursement.

Requests for pre-payment must be submitted to the City Clerk as described in Section 3(A)(ii).
iii. Per Diem Allowance. The City provides a daily Per Diem Allowance for Non-Local Engagement Travel, with a formula for each meal based on the federal per diem rates that are applicable to the location of travel. A Per Diem Allowance allows for the payment or reimbursement of meal charges and any other incidental costs incurred, without documented receipts. Tips for handling City property are not included and can be claimed separately with documentation.

Per Diem Allowances are calculated as follows for partial days:

Breakfast = Twenty (20%) of Per Diem Allowance
Lunch = Thirty (30%) of Per Diem Allowance
Dinner = Fifty (50%) of Per Diem Allowance
If a full breakfast, lunch and/or dinner meal is provided without charge at an Engagement, an appropriate deduction shall be made from the Per Diem Allowance. Continental breakfast or airline meals may or may not be counted as meal deductions at the member’s discretion.

C. Prohibited Expenses. City funds shall not be spent on:
i. Alcoholic beverages;
ii. Expenses incurred by a non-City official, including a spouse, family member or guest, who accompanies a member of the City Council on official business or to an Engagement; or
iii. Any expense for attending any function:

1. That is philanthropic or otherwise incorporates a donation or gift as a required portion of the cost to participate, such as a fundraiser, benefit, charity ball, or gala;

2. That is partisan;
Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 10, Packet Page 198

EXHIBIT A
4 3. That supports a position on a City ballot measure; or

4. That does not comply with all applicable City laws and regulations.

D. Sister Cities and International Engagements and Travel. International Engagements and travel, including official travel to Sister Cities, are subject to all of the same restrictions and requirements as other Non-Local Engagements and Travel set forth in Section 2(B)(ii) of this policy.

E. Staff Coordination.
i. Council travel support shall be provided by the City Manager or their designee(s) and is limited to:

1. Pre-payment, or pre-approval for future reimbursement, of registration costs for Engagements, airline reservations, and lodging expenses from the member’s annual Engagements and travel budget;

2. Collecting receipts and backup documentation as outlined in Section 3 and submitting to the Finance Department for payment;

3. Regularly providing members with their current Engagements budget balances; and

4. Following this policy in processing payments and reimbursements ii. Travel support shall be provided only for approved Engagements after the requesting member submits supporting materials pursuant to Section 3(A) and (B), and approval has been granted.

3. PAYMENT AND REPORTING
A. Written Request for Payment. All travel paid for with City funds through a member’s annual Engagements and travel budget must be supported by the submission of a written request that describes the purpose of travel and provides full descriptive Engagement documentation (such as its flyer or website page) outlining the agenda or program, and noting included meals. Included meals shall be deducted from the Per Diem Allowance. The written request and documentation shall be submitted as follows:
i. Local Engagements and Travel. Submit to the City Manager for prior payment or for post-engagement reimbursement.
ii. Non-Local Engagements and Travel. Submit to the City Clerk at least six (6) days before a regular Council meeting to be placed on the agenda for the City Council’s consideration of pre-authorization. The written request may note any value drivers or Council priorities that should be highlighted.

The matter will be added to the Consent Agenda.
iii. Engagement and Travel Costs and Budget. Requests should only be submitted, and the City shall only pay, for Engagements and travel expenses within the limits of the member’s Council-approved annual Engagements and travel budget. For any desired travel in excess of an individual’s annual budget allocation, the member may opt either to pay the difference personally, or to bring a budget increase request to the Council for pre-authorization following the same schedule and process as outlined in Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 11, Packet Page 199

EXHIBIT A
5 3(A)(ii), above.

B. Post-Engagement Reporting. Public reporting and expense report documentation shall be completed as follows:
i. Public Report. At the next Council regular meeting following the end of travel, the member shall provide a brief verbal report on Engagements attended at the expense of the City during the Council Comments section of the agenda. (Calif. Gov. Code sections 54954.2(a)(3) and 53232.3(d).) Nonattendance of an Engagement shall also be reported. ii. Expense Report. The following expense report documentation shall be submitted to the City Manager within 20 days of the end of travel for further transmission to the Finance Department:

1. Descriptive receipts for all qualifying expenses for which payment was made or reimbursement is requested, except those covered by a requested Per Diem Allowance.

2. Documentation must include a hotel receipt in order to receive a Per Diem Allowance.

C. Non-Attendance at Engagements. The City shall not provide reimbursement for registration or travel in relation to Engagements that the member of Council did not attend. The Mayor or Councilmember shall reimburse the City for any related expenses incurred by the City. Exceptions are for a serious and unexpected inability to attend, such as due to illness or a death in the family.

D. Late Reports Taxable. Per IRS regulations, if within sixty (60) days of the travel end date an expense report is not submitted that adequately accounts for the travel expenses, any amount paid by the City shall be reported as taxable income for the member of Council.

Adopted by Resolution No.:

Amended by Resolution No.: N/A
Effective Date:

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 12, Packet Page 200

EXHIBIT A
PURPOSE:

To set forth clear requirements for the use of City funds for professional and educational event expenses, travel expenses, and related costs incurred by members of the City Council in support of the interests of the City of Monterey (“City”), and reflecting the City Council’s adopted value drivers.

POLICY:

The Mayor and Councilmembers, as elected representatives of the City of Monterey, when attending professional and educational events that support their roles, shall endeavor to maintain a standard of economy that generates the highest function and effectiveness at the lowest cost to the City.

1. GENERAL
A. Engagements. All professional and educational engagements such as conferences, meetings, academies, events, summits, seminars, luncheons, and forums (hereafter called “Engagements”) shall be for lawful municipal purposes.

All related City Council travel and associated expense payments/reimbursements shall be limited to expenses deemed “reasonable and necessary.” Attending Engagements at the cost of the City is conducting official business on behalf of the City.

B. Economy. The most economical options shall be utilized for travel and lodging, in keeping with availability, convenience, and safety. Whenever possible, meals shall be provided in the most cost-effective manner in keeping with availability and convenience.

C. Transparency. This policy was approved by Resolution of the City Council, and modifications to this policy must be brought to the City Council for approval.

2. LIMITS
A. Annual Budget Allocation. Each Councilmember shall have an equal annual budget for Engagements and travel of $3,500, and the Mayor shall have a $4,500 budget, to be allocated during the City’s budgeting process, and each member’s Engagement and travel expenses during a fiscal year shall be limited to this amount. Any requested budget transfers between members shall be submitted to the City Clerk for agendizing and shall be approved by the majority vote of the City Council. Budgeted funds that are not expended do not roll over to the next fiscal year.
[Policy Option B]
Council Policy:

City Council Engagements and Travel
Reimbursement and Expenditure Policy
Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 13, Packet Page 201

EXHIBIT A
2 B. Eligible Expenses. City funds may be used to cover eligible expenses for attending an Engagement.
i. Standard engagements. The following conferences and events are standard Engagements typically attended by mayors and councilmembers in California:
- The League of California Cities (“Cal Cities”) Mayors and Council Members Academy
- Cal Cities Annual Conference
- National League of Cities (“NLC”) City Summit
- NLC Congressional City Conference
- Association of Defense Communities (“ADC”) National Summit - United States Conference of Mayors’ Annual Meeting for the mayor to attend.
ii. Other engagements. All other engagements must be related to their role with the City, determined by each individual Mayor or City Councilmember. Prior authorization or approval by the City Council or City Manager is not required.
iii. Eligible expenses. The only eligible expenses for engagements and travel are:

1. Attendance. Documented expenses required to register for and attend Engagements.

2. Meals. A portion of the Per Diem Allowance for each meal expense as reasonable and necessary while on City business, or reimbursement only for documented meal expenses. Documented meal reimbursements shall be capped at the per-diem rate. (If an Engagement includes a meal, the City shall not fund a substitute meal.)

3. Gratuities. Included in and covered by Per Diem Allowance, except that tips for handling City property are not included in a Per Diem Allowance and can be claimed separately with
documentation.

4. Transportation. Reimbursed as reasonable and necessary.

Includes public transportation, airfare, vehicle use, tolls, taxis and ride share services, and mileage. Mileage will be paid at the current rate per mile allowable by the IRS.

5. Parking. Reimbursed only as reasonable and necessary, with valet parking reimbursed only if self-park is not available, or is necessary to accommodate a disability.

6. Lodging. Reimbursed only as reasonable and necessary. Room and tax for member of Council only based on single occupancy.

7. Incidental Travel Expenses. Other personal need nominal costs incurred through travel are included in and covered by Per Diem Allowance and are not submitted or covered separately through pre-payment or reimbursement.

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 14, Packet Page 202

EXHIBIT A
3 Requests for pre-payment must be submitted to the City Clerk as described in Section 3(A).
iv. Per Diem Allowance. The City provides a daily Per Diem Allowance for travel located 100 miles or greater driving distance from Monterey City Hall, with a formula for each meal based on the federal per diem rates that are applicable to the location of travel. A Per Diem Allowance allows for the payment or reimbursement of meal charges and any other incidental costs incurred, without documented receipts. Tips for handling City property are not included and can be claimed separately with documentation.

Per Diem Allowances are calculated as follows for partial days:

Breakfast = Twenty (20%) of Per Diem Allowance
Lunch = Thirty (30%) of Per Diem Allowance
Dinner = Fifty (50%) of Per Diem Allowance
If a full breakfast, lunch and/or dinner meal is provided without charge at an Engagement, an appropriate deduction shall be made from the Per Diem Allowance. Continental breakfast or airline meals may or may not be counted as meal deductions at the member’s discretion.

C. Prohibited Expenses. City funds shall not be spent on:
i. Alcoholic beverages;
ii. Expenses incurred by a non-City official, including a spouse, family member or guest, who accompanies a member of the City Council on official business or to an Engagement; or
iii. Any expense for attending any function:

1. That is philanthropic or otherwise incorporates a donation or gift as a required portion of the cost to participate, such as a fundraiser, benefit, charity ball, or gala;

2. That is partisan;

3. That supports a position on a City ballot measure; or

4. That does not comply with all applicable City laws and regulations.

D. Sister Cities and International Engagements and Travel. International Engagements and travel, including to Sister Cities, require pre-approval by the City Council in order for any payments or reimbursements to be made by the City.

E. Staff Coordination.
i. Council travel support shall be provided by the City Manager or their designee(s) and is limited to:

1. Pre-payment, or pre-approval for future reimbursement, of registration costs for Engagements, airline reservations, and lodging expenses from the member’s annual Engagements and travel budget;

2. Collecting receipts and backup documentation as outlined in Section Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 15, Packet Page 203

EXHIBIT A
4 3 and submitting to the Finance Department for payment;

3. Regularly providing members with their current Engagements budget balances; and

4. Following this policy in processing payments and reimbursements. ii. Travel support shall be provided only for approved Engagements after the requesting member submits supporting materials pursuant to Section 3(A) and (B).

3. PAYMENT AND REPORTING
A. Written Request for Payment. All travel paid for with City funds through a member’s annual Engagements and travel budget must be supported by the submission of a written request that describes the purpose of travel and provides full descriptive Engagement documentation (such as its flyer or website page) outlining the agenda or program, and noting included meals. Included meals shall be deducted from the Per Diem Allowance. The written request and documentation shall be submitted as follows:
i. Domestic and non-Sister City Engagements and Travel. Submit to the City Manager for prior payment or for post-engagement reimbursement. ii. International and Sister City Engagements and Travel. Submit to the City Clerk at least six (6) days before a regular Council meeting to be placed on the agenda for the City Council’s consideration of pre-authorization. The written request may note any value drivers or Council priorities that should be highlighted. The matter will be added to the Consent Agenda. iii. Engagement and Travel Costs and Budget. Requests should only be submitted, and the City shall only pay, for Engagements and travel expenses within the limits of the member’s Council-approved annual Engagements and travel budget. For any desired travel in excess of an individual’s annual budget allocation, the member may opt either to pay the difference personally, or to bring a budget increase request to the Council for pre-authorization following the same schedule and process as outlined in 3(A)(ii), above.

B. Post-Engagement Reporting. Public reporting and expense report documentation shall be completed as follows:
i. Public Report. At the next Council regular meeting following the end of travel, the member shall provide a brief verbal report on Engagements attended at the expense of the City during the Council Comments section of the agenda. (Calif. Gov. Code sections 54954.2(a)(3) and 53232.3(d).) Nonattendance of an Engagement shall also be reported. ii. Expense Report. The following expense report documentation shall be submitted to the City Manager within 20 days of the end of travel for further transmission to the Finance Department:

1. Descriptive receipts for all qualifying expenses for which payment was made or reimbursement is requested, except those covered by a requested Per Diem Allowance.

2. Documentation must include a hotel receipt in order to receive a Per Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 16, Packet Page 204

EXHIBIT A
5 Diem Allowance.

C. Non-Attendance at Engagements. The City shall not provide reimbursement for registration or travel in relation to Engagements that the member of Council did not attend. The Mayor or Councilmember shall reimburse the City for any related expenses incurred by the City. Exceptions are for a serious and unexpected inability to attend, such as due to illness or a death in the family.

D. Late Reports Taxable. Per IRS regulations, if within sixty (60) days of the travel end date an expense report is not submitted that adequately accounts for the travel expenses, any amount paid by the City shall be reported as taxable income for the member of Council.

Adopted by Resolution No.:

Amended by Resolution No.: N/A
Effective Date:

Council Regular Meeting, 10/21/2025, Item No. 9., Item Page 17, Packet Page 205 Council
Agenda Report
№07/19
FROM: Hans Uslar, City Manager
Nat Rojanasathira, Assistant City Manager
SUBJECT: Provide Direction on How to Reduce the $6 Million Budget Deficit for FY 2026/27 and the City’s $10 Million Structural Budget Deficit (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) RECOMMENDATION:

That the City Council provide on how to reduce the
6 million budget deficit for FY 2026/27 and the City’s
$10 million structural budget deficit.

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.

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

CAMPAIGN DISCLOSURE REQUIREMENT
(LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The City is faced with a $10 million structural deficit that will continue to grow unless the City increases
ongoing revenue and/or reduces ongoing
expenditures.

Council has identified $4 million in Neighborhood and
Community Improvement Program funds as a
potential source to address the deficit, leaving an
additional $6 million to balance the FY 2026-27
budget. There are additional funding sources which
could be used to fully fund FY 26/27 services.

There is no direct cost for the City to discuss deficit reduction strategies.

Agenda Report Highlights
 The City of Monterey faces a $10
million structural deficit and a $6
million budget gap for FY 2026-27,
requiring both revenue increases
and expenditure reductions.
 Council is considering tax
measures, including a sales tax
increase, admissions tax, and
parking tax, which require voter
approval and public opinion
research.
 Utilizing NCIP funds, including a
potential "skip next year" allocation,
is proposed to address the FY
2026-27 budget gap without staffing
reductions.
 Long-term strategies include
exploring partnerships, property
sales, stormwater fees, and
adjustments to existing leases to
generate additional revenue.
 Reserve funds are maintained to
ensure fiscal stability, with policies
requiring a 20% reserve level.

Date: 10/21/2025
Item No.: 12.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 1, Packet Page 206 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:

Maintaining status quo (continuing $10 million budget shortfalls annually) is not an option, as the City must balance its budget in FY 2026-27 and future years.

DISCUSSION:

Addressing the City’s continued $10 million Structural Deficit for FY 26/27 Current Fiscal Year: FY 2025-26 is balanced.

The City’s expenses outpace the City’s revenue. For FY 2025-26, the City is projecting a total of $120,663,607 in expenses for the General Fund (11% above the FY 2024-25 Adopted Budget). We were able to balance the budget for the current fiscal year.

The City’s projected expenditures, or the cost of providing services, exceeds projected revenues by approximately$10 million, largely due to liability and property insurance premium increases, costs for salary, health insurance, and benefits for employees, which is typical for both municipal organizations as well as the private sector.

Next Fiscal Year: FY 2026-27 – work to balance the budget is still ahead The continued $10m structural deficit cannot be solved with one-time solutions; it is, by definition, a structural deficit because it requires ongoing solutions. At its meetings on August 27 and September 2, 2025, the City Council reviewed options to reduce the deficit that involves both increasing ongoing revenue and reducing ongoing expenditures.

The deficit-reduction strategies included solutions that fall into one of two categories:

1. Direct impacts on the General Fund (= solutions benefitting the General Fund – these can be new revenues or new cost savings)
Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 2, Packet Page 207

2. Indirectly relieves General Fund obligations (= solutions which help avoid General Fund expenditures through other means; i.e. Measure P/S is a tax measure which funds road improvements otherwise being funded through the General Fund)

3. One-time or other revenue supporting the General Fund City Council Input on Structural Deficit Reduction Strategies Following feedback from community members, the City Council on September 2, 2025 identified which strategies they supported (sorted into yes, maybe, no). Some of these measures, shown in bold, are tax measures that would require voter approval.

Direct Strategies identified as “yes” by all Councilmembers:
 Additional Sales Tax on June 2026 ballot (+$4.5m revenue)  Veterans Park Campground Opportunities (+$125k revenue)  Renew Measure G (continue $6m in annual revenue)
Direct Strategies identified as “yes” by 80% (4/5ths) of Councilmembers:
 Admissions Tax (+$3.9m revenue)
 Vacancy Tax (+$2m revenue), pending court decisions
 First Responder Fee (+$700k revenue); Update: not as feasible as originally thought.  Streaming Tax (+$440k revenue), pending court decisions  Property Transfer Tax (+$228k revenue)
Direct Strategies identified as “yes” by at least 60% (3/5ths) of Councilmembers  Parking Tax (+$450k revenue) – 3 “yes,” 1 “maybe” and 1 “no” Indirect Strategies identified as “yes” by all Councilmembers:1  Renew Measure P/S (continue $12m in annual revenue)
 Reinstitute Stormwater Fees ($1.2m)
Indirect Strategies identified as “maybe” by at least 60% (3/5ths) of Councilmembers  Public Safety Building Bond Measure (up to $100m in one-time revenue) – 1 “yes” and 4 “maybe”
Public Opinion Research Approach
At the September 2, 2025 meeting, staff shared with Council that public opinion research would need to be conducted prior to placing any tax measures in the ballot for the June 2026 and/or November 2026 elections. Public opinion research would scientifically ascertain voters’ feedback, priorities, confidence and support for tax measures.

In 2014, 2018, and 2019, the City contracted with Fairbank, Maslin, Maullin, Metz & Associates (FM3) to conduct public opinion research that preceded the successful Measure P special sales 1 Again, an indirect funding strategy such as tax measures P/S help fund road improvements otherwise being funded through the General Fund. Stated differently: Measure P/S allow freeing up of General F Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 3, Packet Page 208 tax in November 2014, Measure S streets, sidewalks and sewers sales tax renewal in November 2018, and the Measure G general sales tax measure in March 2020.

At the City Council Meeting on September 16, 2025, Council provided direction to staff to move forward with conducting public opinion research polling in fall 2025 for the upcoming June 2, 2026 election and mid-2026 for the November 3, 2026 elections. For the fall 2025 polling, the Council agreed to prioritize polling for the potential Sales Tax increase of 0.375% for the June 2026 election, including an option to extend the current 0.50% sales tax at the same time (which sunsets in 2029). Council also agreed to conduct polling on a potential Parking Tax. Additional questions would be asked to gauge voter sentiment on other sales tax measures, including an admissions tax.

The survey would be conducted in dual-mode (telephone and online) of registered voters to ensure statistically significant results.

Joint City Council/NCIP Meeting on October 13
The City Council and Neighborhood and Community Improvement Program (NCIP) Committee held a joint meeting on October 13 to discuss the fiscal deficit and learn about options to utilize NCIP funds to balance the City’s budget: reducing this year’s NCIP funding, defunding/freezing existing projects, or a hybrid approach. Staff, Council, and NCIP Committee members acknowledged the hard work and ongoing partnership, and the value of NCIP.

The City Council voted to ask the NCIP Committee to rank existing projects that could potentially be “frozen” or temporarily defunded, totaling a range of $3 million to $4 million. The NCIP Committee would bring the list of projects back to the City Council for consideration to defund/freeze at a future date.

Existing Sources of Funding for a Balanced Budget for FY 2026-27 At its meeting on October 21, 2025, the City Council will meet to determine deficit reduction strategies.

To date, the City Council has identified a range of $3 million to $4 million in NCIP funding to address the $10 million deficit. It is also Staff’s observation that the Council does not want to consider significant service reductions with accompanying personnel measures as potential budget reduction strategy. We are grateful for that. However, this also means that the City has to carefully weigh their next prudent steps. We think that this agenda report provides Council with the potential to identify various steps which assure the residents a continuation of public safety and public works services and other services in library, recreation, community development and administration.

Staff recommend that the City Council continue focusing on using existing funding options as only those are currently available and under budgetary control of the Council. The outcomes of the tax measures are uncertain. Our City should continue to strive for solutions which are fiscally responsible and within our existing revenues.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 4, Packet Page 209 Existing Sources of Deficit Reduction Funding
Given the potential NCIP allocation of up $4 million, there remains a $6 million funding gap to balance the budget for FY 2026-27. The remaining funding sources available to reduce the deficit include:
 Service reductions through the use of position attrition (up to $3.1 million, which includes continuing approximately $2.1 million in frozen positions)2. While attrition is an effective temporary measure, continued use of attrition is not a sustainable method to balance a budget. Sooner or later, Council will be asked to permanently eliminate those positions while parallel changing service levels and potentially consider other means of service delivery. For example: eliminating three “frozen” Park Maintenance Worker will lead to changes in operations of parks and reduction of maintenance levels as well as potential consideration of closures of pocket and neighborhood parks.  Pausing City Programs (up to $360,000). The Council indicated in September to continue programs such as the Rental Assistance Program, special event grants, and First Night Monterey. Council could reconsider its decision and decide to eliminate or pause these programs for the next FY to use the funding to balance the budget. For example: $360,000 are costs equating to three “frozen” Park Maintenance Worker positions.
2 A frozen position is a vacant and budgeted position temporarily not backfilled to harvest the budget savings.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 5, Packet Page 210  Changing Access Providers ($118,000). This would require a change in service providers for the recording and broadcasting of Council and commission meetings. The City is undergoing an RFP and will more accurately identify potential savings and options in December 2025.

Even if all the strategies above are utilized, the City would remain with a $2.42 million deficit in FY 2026/27.

Staff acknowledge that there are concerns about the taking of NCIP dollars in the current FY 2025-26 year projects, or existing NCIP projects not yet completed to balance the budget for FY 2026-27.

A New Alternative
One new alternative is to allocate up to $6 million in next year’s NCIP tax allocation to balance the budget in addition to the $3 million to $4 million range of NCIP projects not yet started. This would allow the City to immediately have the tools in place to balance next FY 26/27 budget.

This “skip next year” option would have multiple advantages:
 It would allow scarce staff resources to catch up on the implementation of existing NCIP projects.
 We still have a significant shortage of 50% in Engineering Division staffing. Adding more projects into the queue will only exacerbate project delivery targets.  It would not impact the work the NCIP Committee and community members have undergone to develop the current year’s list of NCIP Projects. “The quilt for these future projects has not been made yet.”
 It is the only solution that does not require staffing reductions or additional allocations from the current NCIP (beyond the $4 million) to balance the budget.  It is the clearest way to an assured solution to balance FY 2026-27 budget using existing sources.
 We will have a better picture of the tax revenue in June 2026 and long-term projections, and this would allow us to make further budget adjustments accordingly in the future.

Lastly: This reflects what voters intended when they approved the Charter amendment allowing NCIP funds to cover the City’s ordinary and necessary services when needed.

Uncertain Deficit Reduction Strategies
In addition to balancing the budget in FY 2026-27, additional long-term revenue generation is being pursued to address the $10 million structural deficit. The City Council has expressed an interest in pursuing a sales tax measure to increase the sales tax by 0.375% in June 2026. If passed by voters, this sales tax measure would generate an additional $3.375 million in revenue for the first fiscal year, since the measure would take effect October 1, 2026.3 3 While adding new (taxes) revenue sources is a deficit reduction strategy, it does not address our underlying spending challenges. We do not have a revenue problem, but we continue to have a spending problem.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 6, Packet Page 211 Uncertain Deficit Reduction Strategies
The City cannot count on these revenues but should plan for these potential revenue opportunities as “best case scenario” options if the tax measures are passed by voters.

Looking beyond FY 2026-27, staff recommend the City Council continue to review longer-term solutions to address the structural deficit, including:
 Parking Tax ($450k for each 5% taxes) subject to voter approval  Admissions Tax (up to $3.9m) subject to voter approval  Property Transfer Tax ($228k) subject to voter approval  Partnerships/Contracts (varies) subject to partnership opportunities  Payments in Lieu of Taxes (varies) subject to volunteer contributions from nonprofits In addition, the City Council may consider other strategies that indirectly address the structural deficit:
 Public Safety Facility Bond (up to $100m designated for Central Public Safety Facility)  Sale of City Properties (up to $10m in one-time monies for General Fund)  Approval of Stormwater Fees (up to $1.2m for Storm Water Utility Fund)  Implementing Parking Fee Strategies ($627k for Parking Fund)  Adjusting Aquarium Lease (up to $500k to $1m for the Tidelands Fund) Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 7, Packet Page 212 Reserve Funds
At the Council and NCIP Joint Meeting on October 13, part of the conversation included the potential use of the City’s reserves. Background on the City’s reserves is outlined below.

In 2018, the City of Monterey launched its Fiscal Health Response Plan which called for, among many things, the need to address the City's growing expenses, increasing pension obligations, and the City's aging infrastructure. A key component of this plan was to establish a series of reserve accounts, along with the City's already established Reserve for Economic Uncertainty, to help insulate the city against economic downturns or other unforeseen economic situations. Since 2018, the City has continued to build and plan for the City's fiscal needs by establishing a series of economic reserves that will not only provide support in an economic crunch but also help prepare the City for its rising pension obligations and infrastructure needs.

By the FY 2025-26 budget, the City has a total of eight active reserves in the General Fund and two reserves in the City's Parking and Tidelands Funds. With the passing of the FY 2023-24 budget, these reserves and reserve policies were formally adopted by City Council with Resolution 23-065.

These reserves and their target funding amounts are:

Reserve Name Fund
Annual Target
Contribution
Reserve for Economic Uncertainty* General Fund $2,000,000 Pension Reserve General Fund $1,000,000
Conference Center Reserve General Fund $750,000
Sport Center Reserve General Fund $500,000
Technology Infrastructure Reserve** General Fund $1,000,000 City Facilities Reserve General Fund $250,000
Public Safety Facility & Maintenance Reserve General Fund $250,000 Library Facility & Maintenance Reserve General Fund $250,000 Total General Fund Reserve Contributions $6,000,000
*Variable - annual target of 20% of the GF Operating Expenses. Average of approx. $2M increase over past two FYs
**Variable - annual target to maintain this reserve at $3M based on uses. Average use of approx. $1M over past two FYs.

According to our existing policy, our budget needs to allocate general funds to maintain a 20% reserve level for the fund of economic uncertainty. Additionally, to continue funding the other GF reserves accounts, we will need $4M annually to maintain responsible reserves in the General Fund.

We are not recommending reductions to the reserve levels or reserve balances for the following reasons:
 The continued $10m structural deficit cannot be solved with one-time solutions; it is, by definition, a structural deficit because it requires ongoing solutions. Using reserves does not address the underlying spending problem or allocation of funds.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 8, Packet Page 213  The Fund for Economic Uncertainty is an emergency, last resort fund necessary to cover the cost of natural disasters such as earthquakes, fires, tsunamis, rainstorms; to fund major infrastructure failures; or to fund service levels during significant economic downturns.
 Reserve levels are a dominant factor in determining bond ratings. Lowering reserve levels while other funding is still available will put the City at a disadvantage in negotiating favorable terms for future bonds.
 In recent months, the Federal government has indicated that Federal Emergency Management Agency (FEMA) funds may not be available for disaster relief in the future, as the Federal government intends to shift responsibility to states and local governments.

Next Steps
At the October 21, 2025 City Council Meeting, staff will provide an update and presentation on the deficit reduction strategies and will be available to answer questions. Following deliberations, staff hopes for clear guidance from the City Council on how to balance the budget in FY 2026-27.

In the upcoming months, Council will also continue to discuss mid and long-term deficit reduction strategies, including further decision-making regarding tax initiatives once polling data is available.

Attachment: 1. Reserve Policy
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:
monterey.gov/submittedcomments
Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 9, Packet Page 214 ATTACHMENT 1
Reserve Policies
The City maintains reserves to mitigate risk, which include a stabilization arrangement in the form of the “Reserve for Economic Uncertainty” and a “Reserve for Pension Liability”. The City Council retains the authority to establish these reserves as Committed Fund Balance. The City's goal is to maintain the Reserve for Economic Uncertainty equivalent to 20% of the General Fund annual operating budget. The Reserve for Economic Uncertainty is established for the purpose of providing funds for an unforeseen, urgent event that affects the operations or safety of the City (e.g. natural disaster). The recognition of an urgent event must be established by the City Council, and a budget revision must be approved. If the balance drops below the established minimum level, the City Council will develop a plan to replenish the reserve(s). Any related reimbursement funds received (e.g.,: insurance, FEMA) will be used to replenish the reserve.

A full description of the City's Reserve policies can be found in the 'Reserves and Designations' section. The City will maintain appropriate reserves in the Self-Insurance Funds based on statutory requirements and actuarially projected needs.

Reserve for Economic Uncertainty
Purpose: The Reserve for Economic Uncertainty is established for the purpose of providing funds for an unforeseen, urgent event that affects the operations or safety of the City (e.g. natural disaster).

Amount: The Reserve for Economic Uncertainty shall be maintained at a level equal or greater than 20% of the General Fund’s annual operating budget.

Use: The recognition of an urgent event must be established by the City Council, and a budget revision must be approved. In the event that the balance drops below the established minimum level, the City Council will develop a plan to replenish the reserve. Any related reimbursement funds received (e.g. insurance, FEMA) will be used to replenish the reserve.

Pension Reserve
Purpose: The Pension Reserve is established to address the City’s unfunded pension obligations. At the discretion of City Council, funds from this reserve can be allocated to a Section 115 Trust.

Amount: A significant portion of the City’s revenues will be set aside to pay the City’s Pension Reserve. Annually, the City will allocate to the Pension Reserve a minimum of $1 million to a maximum of $2.5 million.

Use: The Pension Reserve should be looked at as a mid-term to long-term aspect of the City’s Fiscal Health Response Plan created to ease the expected fluctuations in annual CalPERS and UAAL payments. Funds in the Pension Reserve will be invested in the City’s designated pre-funding investment vehicle.

Conference Center Reserve
Purpose: The Conference Center Reserve is established to fund major projects and equipment for the City’s Conference Center as well as have funding available for unexpected maintenance or renovation. The City anticipates that the Conference Center will need Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 10, Packet Page 215 ATTACHMENT 1
significant infrastructure improvements to ensure that it continues to be attractive to attendees.

Amount: The target funding level for the Conference Center Reserve is to accumulate $10 million. Annually, the City will strive to allocate a minimum of $750,000 to the Conference Center Reserve. As one-time funds are identified, an increased amount may be brought to City Council to increase the annual allocation.

Use: As part of the budget process, this fund will be allocated a minimum of $750,000 and hold a balance of no less than $250,000 to be used for smaller projects. As projects and equipment needs are identified, the amount needed will be transferred out of the Conference Center Reserve and appropriated for use.

Sports Center Reserve
Purpose: The Sports Center Reserve is established to fund major projects and equipment for the City’s Sports Center Facilities as well as have funding available for unexpected maintenance or renovations.

Amount: Build and maintain an amount equal to 10% of the outstanding deferred facilities maintenance costs. Annually, the City will strive to allocate a minimum of $500,000 to the Sports Center Reserve. As one-time funds are identified, an increased amount may be brought to City Council to increase the annual allocation.

Use: As part of the budget process, the deferred facilities maintenance list will be evaluated and 10% of the cost will be allocated to the Sports Center Reserve. This fund will hold a balance of no less than $250,000 for unforeseen maintenance. As projects and equipment needs are identified, the amount needed will be transferred out of the Sports Center Reserve and appropriated for use.

Technology Infrastructure Reserve
Purpose: The Technology Infrastructure Reserve is established to fund major city-wide information technology projects and equipment as well as have funding available for unforeseen events that may occur necessitating the needs for additional funds.

Amount: Build and maintain $3 million in reserve. Annually, this fund will be allocated funds only to maintain the $3 million as needed. As one-time funds are identified, an increased amount may be brought to City Council to increase the amount to reach the $3 million goal.

Use: As part of the budget process, this fund will hold a balance of $3 million. As city-wide projects and equipment are identified, the amount needed will be transferred to the Information Services Fund to pay for major projects. Technology projects from Special Revenue and Enterprise funds will continue to be funded from those specified funds.

City Facilities Reserve
Purpose: The City Facilities Reserve is established to fund major projects and equipment related to the maintenance and renovation of city facilities and address aging structures.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 11, Packet Page 216 ATTACHMENT 1
Amount: Build and maintain an amount equal to 10% of the outstanding deferred facilities maintenance costs. This fund will maintain a balance of at least $500,000. As one-time funds are identified, an increased amount may be brought to City Council to increase the amount to reach the 10% goal.

Use: As part of the budget process, the City will strive to make an annual allocation of no less than $250,000 until the goal of 10% of the City’s of the outstanding deferred facilities maintenance costs is reached. As projects and equipment needs are identified, the amount required will be transferred out of the Cities Facilities Reserve and appropriated for use.

Public Safety Facility & Maintenance Reserve
Purpose: The Public Safety Facility and Maintenance Reserve is established to initiate the process to fund the building of a new public safety facility.

Amount: Through the annual budget process, the City will make an annual contribution of $250,000 until the goal of $10 million is reached. As one-time funds are identified, an increased amount will be brought back to the City Council to increase the amount to reach to $10 million goal.

Use: Accumulate funds until the City’s goal of $10 million has been achieved to start the building of a new public safety building. This fund will hold a balance of no less than $250,000 for unforeseen maintenance to the existing public safety facilities.

Library Facility & Maintenance Reserve
Purpose: The Library Facility and Maintenance Reserve is established to initiate the process to fund the renovation of the City’s library.

Amount: Through the annual budget process, the City will make an annual contribution of $250,000 until the goal of $10 million is reached. As one-time funds are identified, an increased amount will be brought back to the council to increase the amount to reach the $10 million goal.

Use: Accumulate funds until the City’s goal of $10 million has been achieved to start the renovation of the City library. This fund will hold a balance of no less than $250,000 for unforeseen maintenance to the existing library.

Parking Garage Facilities Reserve (Parking Fund)
Purpose: The Parking Garage Facilities Reserve is established to fund major project and equipment related to the maintenance of City-owned parking garages.

Amount: The reserve will hold a balance of no less than $500,000. As project and equipment are identified, the amount needed will be identified from the Parking Garage Facilities Reserve and appropriated for use. As one-time funds are identified, an increased amount will be brought back to the council to increase the amount.

Use: As part of the annual budget process, the costs of renovation and maintenance will be evaluated. No less than 10% of the cost will be allocated to the reserve account. As projects Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 12, Packet Page 217 ATTACHMENT 1
and equipment are identified, the amount needed will be appropriated from the Parking Garage Facilities Reserve.

Sea Level Rise Reserve (Tidelands Fund)
Purpose: To fund major projects and equipment related to preventing and protecting the City of Monterey against rising sea levels.

Amount: In the long term, the goal is to build to a reserve level at a rate of 25% of the Tidelands Funds’ annual revenues. At present, the City will allocate $250,000 per year from FY 2024 through FY 2028 and $280,000 for FY 2029 and 2030. Following FY 2030, the City will increase the allocation level by 1% per year until the City is allocating 10% per year. At this time, the City should review the policy based on the Tidelands Funds’ expenditures and revenues.

Use: The Sea Level Rise Reserve serves to provide a level of protection against sea level rise. As projects and equipment are identified, the amount needed will be allocated from the reserve to pay for major projects.

Council Regular Meeting, 10/21/2025, Item No. 12., Item Page 13, Packet Page 218