Agenda packet — Monterey City Council, May 5, 2026

Council Chamber,
580 Pacific St.

Monterey, California

CITY COUNCIL AGENDA
Council Regular Meeting and
Closed Session
Tuesday, May 5, 2026
4:00 PM

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

PUBLIC COMMENT PROCEDURES AND TIME LIMITS:

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

1. Up to three minutes per speaker.

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

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

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

May 5, 2026 4:00 PM
2 Call to Order
AFTERNOON SESSION: 4:00 p.m.

Presentations (Afternoon)

1. Receive Presentation from the Stanford Doerr School of Sustainability at Hopkins Marine Station (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
General Public Comments
The public may speak to any item that is not on the agenda and that is in the City of Monterey’s subject matter jurisdiction.

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

Consent: Approval of Minutes

2. April 21, 2026 Regular Meeting (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Consent: Other

3. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: A Portion of Land North of 731 Dry Creek Road (Assessor's Parcel No. 014-031-003-000); Agency Negotiators: Andrea Renny and Andrew Easterling; Negotiating Parties: Shad Thielman (CaliforniaAmerican Water Company); Under Negotiation: Price and Terms of Payment for Granting Easement (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

4. Authorize the Mayor to Sign Letter of Support Regarding Assembly Bill 1821 (Pacheco) - California Public Records Act: Agency Response Time (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) End of Consent Agenda
Adjourn to City Council Meeting
Afternoon Session Items
Public Hearing (Afternoon)
Public Hearings are held to receive a staff presentation and public comment on certain items prior to City Council action. NOTICE CONCERNING YOUR LEGAL RIGHTS: If you challenge the City Council’s zoning, planning, or land use decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing on the matter, or in written correspondence delivered to the City at the time of or prior to the public hearing. (Government Code section 65009.)

5. Open a Public Hearing to Receive Protests of Proposed Stormwater Utility Fees and Adopt a Resolution Directing a Mailed Ballot Proceeding if a Majority Protest Does Not Exist (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) -- This item will be heard during the afternoon session at 4:00 p.m. and continued to 7:00 p.m., which is the time noticed for the hearing. The May 5, 2026 4:00 PM
3 public hearing will be opened at 4:00 but it will not be closed until this item is considered at 7:00 p.m.

6. Conduct a Public Hearing and Receive Public Comments on the Draft Fiscal Year 2026-2027 Annual Action Plan for Community Development Block Grant (CDBG) Funds, Authorize Submittal to the U.S. Department of Housing and Urban Development (HUD), Authorize the City Manager to Make Administrative Changes Requested by HUD, and Authorize Staff to Amend the Public Services Budget to Meet the CDBG 15% Funding Cap (Exempt from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15301, Class1, 15306, Class 6 and 15326, Class 26) Public Appearance (Afternoon)
Public Appearance items are on non-routine issues that might stimulate public interest and comments.

7. Issue Two (2) Storefront Retail Cannabis Business Permits, Contingent on Obtaining a Zone Clearance, to Waitlisted Applicants 1) Infinity Assets Monterey LLC and 2) Monterey Organic LLC (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)

8. Conduct a Drawing to Determine the Commercial Cannabis Zones for Infinity Assets Monterey, LLC and Monterey Organic LLC to Operate Retail Cannabis Businesses (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Requests from Councilmembers to Agendize New Matters
Councilmembers may request to agendize a matter of business on a future agenda. The sole issue to be determined is whether the substantive issue warrants being heard at a future date.

A majority vote is not required, instead, the motion will pass with two “yes” votes.

9. Mayor Williamson’s Request to Agendize a Discussion Regarding Review of the Council Governance Policy: Agendizing Process and Meeting Efficiency (Not a Project under CEQA Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
Adjourn to Closed Session
The City Council will take public comments on closed session items before convening to closed session.

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

10. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: A Portion of Land North of 731 Dry Creek Road (Assessor’s Parcel No. 014-031-003-000)
Agency Negotiators: Andrea Renny and Andrew Easterling
Negotiating Parties: Shad Thielman (California-American Water Company) Under Negotiation: Price and Terms of Payment for Granting an Easement (Not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 CEQA Guidelines Article 20, Section 15378)

11. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1): Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) May 5, 2026 4:00 PM
4 Recess
Reconvene
EVENING SESSION AGENDA: Approximately 7:00 p.m.

Pledge of Allegiance
General Public Comments, Continued
Evening Session Items
Public Hearing (Evening)

12. Continued Public Hearing to Receive Protests of Proposed Stormwater Utility Fees and Adopt a Resolution Directing a Mailed Ballot Proceeding if a Majority Protest Does Not Exist (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) -- This item is continued from 4:00 p.m.

Council Comments
Councilmembers may ask a question for clarification, make a brief announcement, or make a brief report on their activities. In addition, Councilmember or the City Council may provide a referral to staff or other resources for factual information. (Government Code section 54954.2(a)(3).)
City Manager Reports
The City Manager may make a brief report on their activities or a brief announcement. They may also ask for clarification or direction regarding scheduling of Council meetings and study sessions.

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

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

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

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

ACCESSIBILITY: The City of Monterey is committed to including people with disabilities in all of its services, programs and activities. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, including to coordinate the use of a hearing device, please contact [email protected] or (831) 646-3935. Notification 30+ hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-

35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak to City offices. CRS offers free text-tospeech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week.

CITY OF MONTEREY 24-HOUR SUGGESTION HOTLINES: (831) 646-3799 or [email protected] Upcoming city meetings are listed at monterey.gov/agendas For more information, call (831) 646-3935 Council
Agenda Report
№12/25
FROM: Nat Rojanasathira, Assistant City Manager
SUBJECT: Receive Presentation from the Stanford Doerr School of Sustainability at Hopkins Marine Station (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council receive a presentation from Bill
Sherrod, Associate Director at Stanford University’s
Doerr School of Sustainability, Hopkins Marine Station.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

The City of Monterey is a strong partner with educational institutions throughout the Monterey Peninsula, including Cal State Monterey Bay, Middlebury Institute of
International Studies at Monterey, Naval Postgraduate
School, Defense Language Institute, Monterey
Peninsula College, and Stanford University’s Hopkins
Marine Station. This presentation is a community brief
from the Hopkins Marine Station, which is an important
institution in our community.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There is no cost associated with receiving this
presentation.

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 Agenda Report Highlights
• Bill Sherrod from Stanford
University’s Hopkins Marine Station
will provide a community briefing to
the Monterey City Council on May 5,
2026.
• The presentation highlights the
station’s 130-year history and its
modern research on local issues like
kelp forest resilience and carbon
sequestration.
• Stanford’s Doerr School of
Sustainability operates the
Department of Oceans and utilizes
the station as a primary gateway for
marine science.
• The City of Monterey provides
critical fire and medical emergency
services to the station's 12-acre
campus and its research waterfront.
• This informational session carries
no financial cost to the city and is
intended to strengthen partnerships
with local educational institutions.

Date: 5/5/2026
Item No.: 1.

Council Regular Meeting, 5/5/2026, Item No. 1., Item Page 1, Packet Page 5 №12/25
environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council could choose not to receive the presentation.

DISCUSSION:

The Stanford Doerr School of Sustainability, which encompasses the Hopkins Marine Station, advances knowledge and impact through integrated research and education to create a thriving future for the planet. Launched as a new primary school at Stanford, it draws from a diverse pool of 139 faculty members across all seven of the university's schools. The school is structured to drive real-world solutions through various departments and institutes, including the Woods Institute for the Environment and the Precourt Institute for Energy, alongside a dedicated Sustainability Accelerator designed to turn academic ideas into global impact.

Specific to the Monterey Peninsula, the school’s Department of Oceans focuses on ocean discovery and science to sustain life on Earth. The Hopkins Marine Station, a 130-year legacy of scientific breakthroughs in marine biology and ecology, serves as the school's “gateway to the sea”. Modern research at the station addresses critical local and global issues, such as the resilience of kelp forests against marine heatwaves, carbon sequestration, and the development of nanoscale sensors to monitor biodiversity through DNA samples.

The Hopkins Marine Station is situated on nearly 12 acres in Pacific Grove, immediately adjacent to the Monterey Bay Aquarium and the Monterey city border. The City of Monterey serves as the primary fire and medical first responder for the campus under the City’s provision of services to Pacific Grove. This essential coverage extends across both land and sea, with Monterey providing emergency medical and fire protection for the station’s 13 buildings, as well as specialized maritime response via the City's fire boat for incidents occurring along the station's immediate coastline and research waterfront.

Representatives from the Hopkins Marine Station and the Stanford Doerr School of Sustainability are scheduled to present a community brief to the City Council on May 5, 2026.

This presentation, led by Associate Director Bill Sherrod, will offer perspectives on the station’s past, present, and future, including its role as a nexus for discovery and technology that benefits both the local community and humanity at large.

NR
Attachments: 1. Presentation
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, 5/5/2026, Item No. 1., Item Page 2, Packet Page 6

MINUTES

CITY COUNCIL REGULAR MEETING

CITY OF MONTEREY
Tuesday, April 21, 2026
4:00 PM
COUNCIL CHAMBER, 580 PACIFIC ST.

MONTEREY, CALIFORNIA
Councilmembers

Present: Barber (left at 9:36 p.m.), Garcia, Rasch, Smith, Williamson

Absent: None
City Staff

Present:

City Manager, City Attorney, Assistant City Manager, Community Development Director, Finance Director, Fire Chief, Human Resources Director, Library & Museums Director, Parks and Recreation Director, Police Chief, Public Works Director, City Clerk, Deputy City Attorney, Deputy Public Works Director/City Engineer, Senior Administrative Analyst (Police), Senior Engineer, Recreation Manager, Assistant City Attorney, Planning Manager, Park Operations Manager, Management Analyst (City Manager's Office), Police Lieutenant, Division Chief, Assistant Urban Forester
Call to Order
Mayor Williamson called the meeting to order at 4:01 p.m. City Clerk Klein called the roll with the Council present as indicated above.

AFTERNOON SESSION
Presentations (Afternoon)

1. Recognition of Defense Language Institute Quarterly Joint Service Awards Second Quarter FY26 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
Action: Recognized awardees
The Council recognized Staff Sergeant Gloria Campbell, Lance Corporal Zarchary Gonzalez, and Staff Sergeant Erubey Martinez, all from the U.S. Marine Corps. Staff Sergeant Campbell and Staff Sergeant Martinez made brief remarks.

Public comment was received from Nina Beety, who denounced the actions of the U.S. military.

2. Receive Update from Monterey One Water (M1W) on Capital Projects, Rate Study and Strategic Priorities (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
Action: Received update
Paul Sciuto of Monterey One Water (M1W) gave the presentation and answered Councilmembers' questions.

Mayor Williamson limited the time for public comment to two minutes per person. Public comment was received from: Esther Malkin and Lori Mazzuca, who expressed concern about the lack of affordability of the proposed rate increases; Tom Reeves, who asked questions about water availability in local lakes; and Lorna Moffat, who suggested that education could prevent the release of toxic materials into sewage.

Date: 5/5/2026
Item No.: 2.

Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 1, Packet Page 7 City Council Minutes April 21, 2026
2 On question from the Council, Mr. Sciuto said that there was no backup funding plan if the upcoming protest hearing resulted in a majority protest.

General Public Comments
Based on the number of people interested in speaking, Mayor Williamson limited the time for public comment to two minutes per person. Public comment on non-agendized matters was received from: Dan Turner, Zoe Carter, Megan Range of Pacific Gas & Electric (PG&E), Daniel Armendariz, Lorna Moffat, and Esther Malkin.

Consent Agenda
On a motion by Councilmember Smith, seconded by Councilmember Garcia, and carried by the following vote, the City Council approved the Consent Agenda, except Items 6 and 7:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Consent: Approval of Minutes

3. April 7, 2026 Regular Meeting (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Approved
Consent: Resolutions

4. Approve Calle Principal Street Maintenance District 00-1 Engineer's Report; Adopt a Resolution of Intention to Levy Assessment; and Set Time for Public Hearing (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Resolution No. 26-054 C.S.

5. Approve Alvarado Street Maintenance District 85-1 Engineer's Report; Adopt a Resolution of Intention to Levy Assessment; and Set Time for Public Hearing (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Resolution No. 26-055 C.S.

6. Authorize the Police Chief to Execute Memorandums of Understanding with the Cities of Del Rey Oaks, Sand City, and Pacific Grove for California Law Enforcement Telecommunications System Services (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Pulled from Consent; Adopted Resolution No. 26-056 C.S.

Mayor Williamson left the Chamber from 5:06 p.m. to 5:0 p.m. Police Chief Hober gave a brief verbal presentation and answered Councilmembers' questions.

Public comment was received from Lorna Moffat, who made an unrelated remark regarding the Police and Fire Chiefs' salaries.

On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following vote, the City Council adopted Resolution No. 26-056 C.S.:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 2, Packet Page 8 City Council Minutes April 21, 2026
3 7. Authorize Agreement to Transfer $7,269,813 Held in Escrow for the Benefit of the City of Monterey and the City of Del Rey Oaks for the South Boundary Road Project Into an Interest Bearing Escrow Account (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Pulled from Consent; Adopted Resolution No. 26-057 C.S.

Finance Director King and Public Works Director Renny gave a brief verbal presentation and answered Councilmembers' questions.

Public comment was received from Tom Reeves, who asked whether there was an arbitrage clause included in the agreement.

On question from the Council, City Attorney Davi said that the Council could approve the item meanwhile and she would look at the agreement to review for any arbitrage clause.

The Council made brief remarks explaining the matter to the public, noting that the money was designated specifically for the South Boundary Road Project only. It was requested that City staff do everything possible not to lose the funding by the deadline.

On a motion by Councilmember Smith, seconded by Councilmember Rasch, and carried by the following vote, the City Council adopted Resolution No. 26-057 C.S.:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Consent: Other

8. Approve Deaccession of 22 Objects and Artwork from City Museums Collection (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Approved
End of Consent Agenda
Afternoon Session Items
Public Appearance (Afternoon)

9. Approve Recommendation for Lower Presidio Historic Park Lease Operations (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Approved the staff recommendation to continue the lease for the Lower Presidio Historic Park until a long-term solution is identified Library & Museums Director Edwards gave a verbal presentation and answered Councilmembers' questions with additional input provided by Assistant City Manager Rojanasathira.

Public comment was received from Lorna Moffat, who expressed concern that trees could be cut down in the park.

The Council stated that there was an opportunity for volunteers to help with park maintenance.

Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 3, Packet Page 9 City Council Minutes April 21, 2026
4 On a motion by Councilmember Rasch, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the staff recommendation to continue the for the Lower Presidio Historic Park until a long-term solution is identified:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)

10. Adopt and Approve Funding for the Fiscal Year 2025/26 Neighborhood and Community Improvement Program ***NCIP*** (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061; and Article 19, Sections 15301, 15306, and Classes 1, and 6)
Action: Adopted Resolution No. 26-058 C.S., with separate votes as indicated in the vote blocks below
Senior Engineer Paulding gave the staff presentation and answered Councilmembers' questions.

Councilmember Garcia left the Chamber from 5:45 p.m. to 5:47 p.m.

Based on the number of people interested in speaking, Mayor Williamson limited the time for public comment to two minutes per person. Public comment was received from: Diane diLorimier and Harish Joshi of the Board of Library Trustees, Yvonne Ricketts, Valerie Vasquez and Naoki Aquil of the Library Teen Advisory Board, and Jim Thomson, who all urged the Council to support Monterey Public Library through approving project DT-07 (Monterey Public Library ADA Compliance and Facility Renovations); Ross Pounds of the Monterey Firefighters Association, who asked the Council to approve the proposed NCIP projects including MN-16 (Monterey Fire Station 13 – Additional Funding for Remodel); Kris Richardson of the Monterey Police Association, who spoke in support of project MN-18 (Police Department – Interim Interior Improvements); Lee Whitney of the NCIP Committee, who spoke in support of project MN-15 (Citywide Fuel Reduction); Hans Jannasch and Chinyere Ogbonna of the NCIP Committee, and Esther Malkin, who all asked the Council to approve the list of recommended projects as-is; Shelly Mow Schmidt of the NCIP Committee, who spoke in support of project COK-06 (Casanova Oak Knoll Park - Replace Gates and Improve Restroom Lights) and emphasized that the committee had worked to prioritize need over want in all of its recommendations; and Dennis Duke of the NCIP Committee, who noted that all of the proposed projects were intended to benefit the City's public safety and infrastructure. During public comments, Mayor Williamson left the Chamber from 5:59 p.m. to 6:00 p.m., and Councilmember Smith left the Chamber from 6:05 p.m. to 6:07 p.m.

The Council took up the process of voting on the Council's identified abstention projects, led by City Attorney Davi. The Council adopted Resolution No. 26-058 C.S. through the following votes.

Mayor Williamson left the Chamber.

On a motion by Councilmember Smith, seconded by Councilmember Rasch, and carried by the following vote, the City Council approved the portion of Project MN-05 (Replace or Repair Speed Signs throughout City) specifically for the intersection of West Franklin at Clay Street:

AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith
NOES: 0 COUNCILMEMBERS: (None)
RECUSED: 1 COUNCILMEMBERS: Williamson
Mayor Williamson returned to the Chamber and Councilmember Barber left the Chamber.

Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 4, Packet Page 10 City Council Minutes April 21, 2026
5 On a motion by Councilmember Smith, seconded by Councilmember Rasch, and carried by the following vote, the City Council approved the portion of Project MN-05 (Replace or Repair Speed Signs throughout City) specifically for the intersection of Prescott at Filmore Street eastbound and westbound:

AYES: 4 COUNCILMEMBERS: Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
RECUSED: 1 COUNCILMEMBERS: Barber
Councilmember Barber returned to the Chamber and Councilmember Garcia left the Chamber.

On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following vote, the City Council approved the portion of Project MN-05 (Replace or Repair Speed Signs throughout City) specifically for 804 and 825 Casanova Avenue, and Project COK-06 (Casanova Oak Knoll Park - Replace Gates and Improve Restroom Lights):

AYES: 4 COUNCILMEMBERS: Barber, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
RECUSED: 1 COUNCILMEMBERS: Garcia
Councilmember Garcia returned to the Chamber.

On a motion by Councilmember Barber, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the remainder of Project MN-05 (Replace or Repair Speed Signs throughout City):

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
A final motion was introduced by Councilmember Smith, and seconded by Councilmember Rasch, to approve the remainder of the projects recommended by the NCIP Committee.

The Council thanked City staff and the NCIP Committee for their hard work, collaborative approach, and balanced project recommendations, and thanked everyone who had proposed projects. It was noted that due to the economic challenges faced by the City, the Committee's process had taken more work and time than in previous NCIP cycles and it was stressed that this was noticed and appreciated. Councilmember Barber left the Chamber from 6:19 p.m. to 6:20 p.m. It was stressed that there was a need to prioritize essential City services, and concern was expressed about the risk of having to cut City programs and staffing if funding was delayed until the next fiscal year. It was suggested that the Council could consider approving the project list with a reallocation of $3.5 million now, and freezing the unfunded projects for future funding, thereby avoiding the need to revisit the process in the following program year. It was stated that if the Council committed funds now, and later needed to appropriate the funds back from the program, there would be backlash from the public, and it was stressed that support for approving the program for this year was conditioned on needing to have a more fluid conversation with the community about how to deal with the deficit. Regarding public safety facility, concern was expressed about continual smaller fixes for the Police and Fire facilities, and it was stressed that the City needed to look at finding a way to fund a more proactive and comprehensive improvement of its public safety facility and infrastructure. On question from the Council, Public Works Director Renny provided context on timing for the North Fremont undergrounding process.

The motion carried by the following vote:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 5, Packet Page 11 City Council Minutes April 21, 2026
6 Adjourn to Closed Session
Public comment on the closed session was solicited but not received. The Council adjourned to closed session at 6:25 p.m.

Closed Session (Afternoon)

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

1. Deseree Albert v. City of Monterey (Monterey County Superior Court Case No. 25CV006534)

2. Monique Arge v. City of Monterey (United States District Court, Northern District of California Case No. 5:25-CV-09710 NC

3. Emilio Montero v. City of Monterey (Monterey County Superior Court Case No. 26CV001211)

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

5. Shai and Mira Nissim v. City of Monterey (Monterey County Superior Court Case Nos. 25CV004945 and 25CV004949)

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

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

8. Cynthia Wills v. City of Monterey (United States Court of Appeals for the Ninth Circuit Case No. 25-720)

9. Richard and Mildred Zilinskas v. City of Monterey (United States District Court for the Northern District of California, Case No. 5:25-CV-07506) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: No reportable action taken
The Council recessed at 7:05 p.m. and reconvened at 7:10 p.m.

EVENING SESSION AGENDA
Pledge of Allegiance
Councilmember Garcia led the Pledge.

General Public Comments, Continued
To correspond with the limit set for speakers in the afternoon, Mayor Williamson limited the time for public comment to two minutes per person. Continued public comment on non-agendized matters was received from: Anthony Gonzales of Off the Charts Monterey, and Nina Beety.

Announcements from Closed Session
City Attorney Davi reported out from the closed session as indicated in the action recorded for closed session item 11, above.

Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 6, Packet Page 12 City Council Minutes April 21, 2026
7 Public Appearance (Evening)

12. Authorize Staff to Draft Proposed Changes to Chapter 37 of Monterey City Code "Preservation of Trees and Shrubs" Ordinance and Authorize Paying for the Preparation of an Environmental Impact Report (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Approved staff recommendations, but directed staff to hold off on any action until/unless the budget for environmental review is approved through the FY 2026/27 budget process
Parks and Recreation Director Banks, Park Operations Manager Norton, Assistant City Attorney Krattli, Planning Manager Hill, and Division Chief Cooper gave the staff presentation and answered Councilmembers' questions. Councilmember Smith left the Chamber from 8:21 p.m. to 8:22 p.m.

Public comment was received from: an unidentified man, who suggested partnering with educational institutions; Laura Nagel, who expressed concern about the status of the forest and about the City making it easier to remove trees; Pat Venza of the Monterey Vista Neighborhood Association, who said the City should have a strategic vision and plan for the urban forest and for addressing fire hazard; Alexander Schenck, in opposition to any but the most minor changes to the tree ordinance; Vicky Williams, in favor of taking out trees that would otherwise be damaged in a storm; Glenn Robinson of Shepherds Knoll Homeowners Association, who urged Council to reject same-species replacement and instead focus on native trees that could better survive climate change; Lorna Moffat, who spoke in defense of eucalyptus trees, stating that they grow fast and endure heat; John Schott, in favor of the ordinance, who expressed concern about tree maintenance in the vicinity of power lines; Lori Mazzuca, who suggested that an anonymous reporting program could help identify concerning trees; Nina Beety, who asserted that Monterey's forest ecosystem provided natural fire resistance, and advocated for stronger tree protections; and Tom Reeves, who expressed concern that state regulations and aggressive tree trimming by neighbors were threatening the health of the urban forest.

On question from the Council, Planning Manager Hill provided context on environmental review requirements, and Park Operations Manager Norton provided context on current tree removal justifications. Division Chief Cooper confirmed that the City applies for grants whenever possible.

Councilmember Barber left the Chamber from 9:16 p.m. to 9:18 p.m.

The Council reviewed current City Code provisions regarding trees; it was suggested that perhaps the word “dangerous” could be defined and used more broadly, and it was noted that the words “conditions may be imposed on the removal” in the City Code could imply some flexibility.

The Council discussed the four components of the proposed ordinance provisions as identified by City staff. Regarding Component 1 (Who and What Is Regulated: Protected Tree Definition and Permit Structure), support was expressed for the provisions regarding tree size, species type, and proposed streamlined approval for the removal of dead trees or trees within five feet of a structure.

It was affirmed that changing requirements from being parcel type-based to being plant speciesbased would be more equitable. Regarding Component 2 (Replacement Requirements, Penalties, and Enforcement), more detail was requested regarding tracking and enforcement on the subjects of tree replacement timing and the five-year survival requirement, and regarding how to address property ownership changes in conjunction with tree-related requirements and enforcement.

Support was expressed for the proposed strengthening of penalties and enforcement. Regarding Component 3 (Fire Safety), support was expressed. It was stated that undesirable non-native species should not be replaced by other non-native species. Regarding Component 4 (Governance, Authority, and Process Changes), support was expressed. It was stated that it Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 7, Packet Page 13 City Council Minutes April 21, 2026
8 would be helpful to ensure that the arborists required to provide opinions were neutral parties and to incorporate this into the City’s permit process and fee.

It was stated that the City would benefit from moving forward with a forest management plan and instituting an ongoing educational program. It was suggested to consider storm resilience as another factor for the ordinance, citing concerns about the state of the power grid.

There was discussion regarding the cost of conducting an Environmental Impact Review (EIR) process, and some consideration of whether to try to move forward at this time with only Component 4 which would not require an EIR. On the other hand, support for all four components was expressed and it was urged to move forward with the ordinance, citing the depth of work conducted by City staff and the broad community engagement and participation by residents. It was noted that staff was mindful of the budget dilemma and alert to all funding opportunities.

On a motion by Mayor Williamson, seconded by Councilmember Barber, and carried by the following vote, the City Council approved staff recommendations, but directed staff to hold off on any action until/unless the budget for environmental review is approved through the FY 2026/27 budget process:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
The Council recessed at 9:38 p.m. and reconvened at 9:47 p.m. with Councilmember Barber absent.

13. Provide Direction on Polling Topics for Potential Ballot Measures for the November 2026 Election (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Directed staff to conduct polling to test measures for Measure P&S renewal and a parking tax, and ask conceptual questions on a vacancy tax (4-0-1, Councilmember Barber absent)
City Manager Hall, Assistant City Manager Rojanasathira, and Lucia Del Puppo of Fairbank, Maslin, Maullin, Metz & Associates (FM3) Consulting gave the staff presentation and answered Councilmembers' questions.

Public comment was received from: Kevin Dayton, who recommended caution, stating that the public was grumbling about the City not cutting expenses sufficiently in the budget crisis; Rick Aldinger of the Measure P & S Oversight Committee, who said that that a renewal for Measures P & S should remain identical including the 9-year sunset; Carol Chorbajian of the Measure P & S Oversight Committee, who said that there is still ongoing work to be done to improve the City's streets and that residents have been happy with the results of Measures P & S.

The Council discussed the scope and timing of the proposed polling. Regarding timing, interest was expressed in delaying polling until after the June election for fear of affecting the vote on the Measure D sales tax measure, but concerns were expressed about the feasibility for staff to prepare all ballot materials in time for the August deadline. Regarding a potential renewal of Measure P & S (1% streets, sidewalks, and storm drains special tax), support was expressed for polling for an extension of the measure as-is, stating that the voter support needed would require a sunset. On the other hand, interest was expressed in the polling for the measure both with and without the sunset clause. It was requested to know more about how a dig once policy requiring undergrounding of conduit during road work would affect the City's measure. Regarding polling for a streaming tax, some interest was expressed in learning more about how such a tax would apply Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 8, Packet Page 14 City Council Minutes April 21, 2026
9 to commercial establishments, and the possibility of taxing only commercial entities. Regarding polling for a parking tax, support was expressed for testing percentages between 5% and 8%, and whether the tax should apply to private lots only or private and public lots. Regarding additional or conceptual questions that could be added after the main polling questions, interest was expressed in asking voters about a potential vacancy tax. It was suggested that the voters could be asked about bonding for a public safety facility, noting that starting the conversation could begin to warm up the community on the subject.

A motion was introduced by Mayor Williamson, and seconded by Councilmember Garcia, to direct staff to conduct polling to test measures for Measure & S renewal (including testing sunset or no sunset) and a parking tax (including private lots only or private and public lots), and to ask conceptual questions about a vacancy tax and a public safety facility.

Councilmember Rasch introduced a friendly amendment to remove the vacancy tax, but the mover did not accept the amendment.

The Council discussed the potential of a vacancy tax. It was stated that pending vacancy tax litigation in San Francisco would not need to preclude the Council from putting it on the ballot.

The mover amended his motion to remove the conceptual polling about a public safety facility, and the seconder approved. The amended motion passed by the following vote:

AYES: 4 COUNCILMEMBERS: Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 1 COUNCILMEMBERS: Barber
Requests from Councilmembers to Agendize New Matters

14. Mayor Williamson’s Request to Agendize a Discussion Regarding Review of the Council Governance Policy: Agendizing Process and Meeting Efficiency (Not a Project under CEQA Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Not heard
Council Comments - Not heard.

City Manager Reports - Not heard.

Adjournment
The Council briefly discussed but opted not to extend the meeting time to take up the remaining items, and instead adjourned at 10:39 p.m.

Respectfully Submitted, Approved,
Clementine Bonner Klein Tyller Williamson
City Clerk Mayor
Council Regular Meeting, 5/5/2026, Item No. 2., Item Page 9, Packet Page 15 Council
Agenda Report
№12/25
FROM: Andrea Renny, Public Works Director
Prepared By: Andrew Easterling, City Engineer
SUBJECT: Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: A Portion of Land North of 731 Dry Creek Road (Assessor's Parcel No. 014-031-003-000); Agency Negotiators: Andrea Renny and Andrew Easterling; Negotiating Parties: Shad Thielman (California-American Water Company); Under Negotiation: Price and Terms of Payment for Granting Easement (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 a
conference with real property negotiators pursuant to
Government Code Section 54956.8 to discuss and
provide confidential direction for price and terms of
payment for a new easement over City-owned land.

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:

Closed session confidential review of real estate matters is allowed.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: It does not apply to the appointment of
agency negotiators. The Levine Act does apply to
approving the price and terms of an easement.

FISCAL IMPLICATIONS:

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

Agenda Report Highlights
• The City Council is being asked to
appoint Andrea Renny and Andrew
Easterling as agency negotiators for
a property conference.
• The negotiation concerns the price
and terms of payment for a new
permanent utility easement over
City-owned land located north of
731 Dry Creek Road.
• California-American Water
Company (Cal-Am) is the
negotiating party seeking the
easement to ensure reliable,
ongoing access to its pump station.
• The proposed discussion will take
place in a closed session to provide
confidential direction to the
negotiators regarding the real estate
matter.

Date: 5/5/2026
Item No.: 3.

Council Regular Meeting, 5/5/2026, Item No. 3., Item Page 1, Packet Page 16 №11/25
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 City Council could decide not to appoint negotiators or to appoint different negotiators. This is not recommended by staff. It is appropriate that the City Council appoint agency negotiators and authorize a confidential discussion regarding the easement.

DISCUSSION:

The premises located on a parcel north of 731 Dry Creek Road (Assessor's Parcel No. 014-031- 003-000) were acquired by the City in 1961. Cal-Am has expressed interest in obtaining a new permanent utility easement from the City to allow for reliable, ongoing access to its pump station. A closed session discussion with the City’s real estate negotiators is recommended.

Closed session discussions are allowed and appropriate for real estate matters.

AR/ae
Attachments:
e: Shad Thielman, Client Services Manager, California American 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, 5/5/2026, Item No. 3., Item Page 2, Packet Page 17 Council
Agenda Report
№12/25
FROM: Clementine Bonner Klein, City Clerk
SUBJECT: Authorize the Mayor to Sign Letter of Support Regarding Assembly Bill 1821 (Pacheco) - California Public Records Act: Agency Response Time (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council authorize Mayor Williamson to sign the attached letter of support to Assembly Member
Blanca Pacheco regarding her proposed legislation to
use business days instead of calendar days in
calculating response deadlines for public records
requests. The League of California Cities, the California State Association of Counties, and the California
Municipal Clerk’s Association support this bill, which is a narrow but meaningful improvement that will help cities comply with the law more effectively.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

The City of Monterey is subject to the requirements of
the California Public Records Act, which Assembly
Member Pacheco proposes amending. It is within the
purview of the City Council to provide input on proposed State legislation. The Council’s Governance Policy
requires that letters on City letterhead, that advocate for the advancement of a position on legislation, represent the position of the full Council.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There will be no cost incurred by submitting this letter of support.

Agenda Report Highlights
• The City Council is considering
authorizing the Mayor to sign a letter
supporting Assembly Bill 1821.
• Proposed legislation would change
the California Public Records Act
response deadline from 10 calendar
days to 10 business days.
• This change accounts for the fact
that staff are generally unavailable
to process records requests on
weekends and holidays.
• The City of Monterey has
experienced a significant increase in
public records requests with a
projected 278% increase in 2026
compared to 2021.
• Support for the bill has already been
expressed by the League of
California Cities and the California
Municipal Clerks Association.

Date: 5/5/2026
Item No.: 4.

Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 1, Packet Page 18 №12/25
ENVIRONMENTAL DETERMINATION:

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 opt not to send the letter of support, or could approve a modified version of the letter.

DISCUSSION:

Background
The California Public Records Act (CPRA) was passed by the California Legislature in 1968 and requires that government agencies disclose government records to the public upon request, unless exempt by law. Examples of records exempt from mandatory disclosure under the CPRA include personnel records, investigative records, drafts, legal advice and records relating to current legal proceedings, and information that other state or federal statutes may deem confidential.

Staff Impact
The City of Monterey takes its responsibility to provide information to the public seriously and it is committed to transparency and accountability. This responsibility requires the full attention of at least one staff member per request, and many requests require work by multiple staff members across multiple departments. Depending on the complexity, requests can require many hours of time spent by staff and officials at all levels of the organization, due to work involved in collecting responsive records, managing collection of and evaluation of responsive records, redacting exempt information, providing legal advice, etc.

Current California law requires agencies to send the initial/primary response to a request within 10 calendar days. Because calendar days include weekends and holidays, City staff can end up with less time to respond to some requests than to others: a request received on a Friday afternoon allows staff only six work days for a response, due to the two weekends that fall within the 10 calendar days.

Trends
The City of Monterey, like many other jurisdictions and public agencies, has experienced a sharp increase in public records requests received. This is due partly to an increase in requests received from business entities..

Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 2, Packet Page 19 №12/25
The following tables show City of Monterey public records request data from 2021 through 2025, as well as 2026 to date and a projected total for this year:

Past
Years
# Annual
Requests
Increase over Prior
Year
Increase over
2021
2021 225 - -
2022 231 3% 3%
2023 283 23% 26%
2024 474 67% 111%
2025 568 20% 152%
Current
Year
Requests
Received
as of
4/30/2026
# Projected
Annual
Requests
(if current rate of

2.33 requests/day
does not
increase)
Increase of
Projection over Prior
Year Actual
Increase of
Projection over
2021 Actual
2026 277 850 50% 278%
Meanwhile, budget funds, for potential increase in staffing and/or technological help to most efficiently manage records collection and response, are limited.

Proposed Legislation
Assembly Bill 1821 (“AB 1821”), introduced by California Assembly Member Pacheco in February 2026, acknowledges that state and local agencies provide a variety of public services in addition to public records request responses, and proposes changing the required response time from its current 10 calendar days (which includes weekends and holidays), to instead allow agency staff 10 business days to respond to requests. This proposed legislative amendments recognize that staff are not generally available to work on these requests on weekends and holidays.

Recommendation
Staff finds the modest change proposed in AB 1821 to be reasonable, in that the change from calendar days to business days would not be a significant difference for requestors and yet would allow the City to better conduct the business of responding to all records requests received. Staff recommends the Council authorize the Mayor to sign the draft letter supporting AB 1821.

Attachments: 1. Draft Letter

2. AB 1821

3. April 7, 2026 letter of support from CSAC, League of Cities, and CMCA Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 3, Packet Page 20 №12/25
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, 5/5/2026, Item No. 4., Item Page 4, Packet Page 21 ATTACHMENT 1 CITY HALL • MONTEREY • CALIFORNIA • 93940 • Web Site: Monterey.gov May 6, 2026
The Honorable Blanca Pacheco
Member, California State Assembly
1021 O St, Room 4510
Sacramento, CA 95814
RE: AB 1821 (Pacheco) California Public Records Act: agency response time.

Notice of SUPPORT
Dear Assembly Member Pacheco,
The City of Monterey is pleased to support your measure AB 1821 (Pacheco), which would shift from “calendar days” to “business days” for initial determinations and extensions. This is a common‑sense update that reflects the operational realities of cities. Cities generally do not have staff available on weekends or holidays, yet current law continues to toll California Public Records Act (CPRA) deadlines during these periods. A business‑day standard ensures cities have the full, intended number of working days to conduct thorough and accurate searches for disclosable records.

Under existing law, cities must determine within 10 days whether a request seeks disclosable records, with a possible 14‑day extension in unusual circumstances. Neither timeframe accounts for weekends or holidays when staff are unavailable. AB 1821 corrects this discrepancy by converting these periods to business days, helping cities comply with the law more effectively and consistently.

Modern government operations now generate far more disclosable records, including emails, texts, and internal messages, which require extensive searching, review, and redaction of sensitive information such as attorney‑client communications, personal identifiers, and medical or criminal data. At the same time, cities have lost key revenue sources that once offset these costs: Proposition 42 eliminated state reimbursement for CPRA compliance, and a 2020 California Supreme Court ruling restricted cities from recovering staff time or technical costs associated with producing records. As a result, local governments must absorb the full cost of increasingly time‑intensive requests.

We appreciate the author’s efforts and support continued conversations about broader CPRA reform. The business‑day clarification in the bill is a narrow but meaningful improvement that will help cities comply with the law more effectively and consistently.

The City of Monterey will benefit from this bill in that the bill will allow staff a modest but helpful additional amount to respond to requests. City staff balances many important municipal duties and deadlines, and the time and attention needed for public records act requests should be Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 5, Packet Page 22 fairly distributed among requests, with each request receiving the same level playing field of 10 work days’ staff response time.

For these reasons, the City of Monterey is pleased to support AB 1821 (Pacheco).

Sincerely,
Tyller Williamson
Mayor
City of Monterey
cc. Senator John Laird, SD 17
Assembly Member Dawn Addis, AD 30
Deanna Sessums, League of California Cities Regional Public Affairs Manager (via email) League of California Cities, [email protected]
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 6, Packet Page 23 AMENDED IN ASSEMBLY APRIL 6, 2026
AMENDED IN ASSEMBLY MARCH 16, 2026
california legislature—2025–26 regular session
ASSEMBLY BILL No. 1821
Introduced by Assembly Member Pacheco
February 11, 2026
An act to amend Sections 7922.530 and Section 7922.535 of the Government Code, relating to public records.
legislative counsel’s digest
AB 1821, as amended, Pacheco. California Public Records Act: fees and agency response time.

Existing law, the California Public Records Act, requires each state or local agency, upon a request for a copy of records that reasonably describes an identifiable record or records, to make the records promptly available to any person upon payment of fees covering direct costs of duplication, or a statutory fee if applicable, except with respect to public records exempt from disclosure by express provisions of law.

This bill would require, if a single request exceeds 2 hours of search time, or if the total requests by a requestor exceed 10 hours of search time in one month, the requestor to also submit to the agency a payment of fees in an amount determined by the agency as reasonable to compensate the agency for the administrative time of completing the requests. The bill would exempt from that requirement a journalist, a newspaper, and an educational or noncommercial scientific institution, as specified. The bill would define “search” for purposes of that requirement to mean to review, either manually or by automated means, 97 ATTACHMENT 2
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 7, Packet Page 24 agency records for the purpose of locating those records that are responsive to a request.

Existing law requires each agency, within 10 days of a request for a copy of records, to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person of the determination and the reasons therefor. Existing law authorizes that time limit to be extended by no more than 14 days under unusual circumstances, as defined.

This bill would instead require each agency to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person as described above within 10 business days of a request for a copy of records. The bill would instead authorize the time period for each agency to respond to be extended by no more than 14 business days.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: no.

The people of the State of California do enact as follows:
line 1 SECTION 1. Section 7922.530 of the Government Code is line 2 amended to read:
line 3 7922.530. (a)  (1)  Except with respect to public records exempt line 4 from disclosure by express provisions of law, each state or local line 5 agency, upon a request for a copy of records that reasonably line 6 describes an identifiable record or records, shall make the records line 7 promptly available to any person upon payment of fees covering line 8 direct costs of duplication, or a statutory fee if applicable. Upon 97 AB 1821 — 2 —
ATTACHMENT 2
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 8, Packet Page 25 line 1 request, an exact copy shall be provided unless impracticable to line 2 do so.
line 3 (2) (A)  If a single request exceeds 2 hours of search time, or if line 4 the total requests by a requestor exceed 10 hours of search time in line 5 one month, the requestor shall submit to the agency a payment of line 6 fees in an amount determined by the agency as reasonable to line 7 compensate the agency for the administrative time of completing line 8 the requests.
line 9 (B) Subparagraph (A) shall not apply to any of the following:
line 10 (i) A journalist.
line 11 (ii) A newspaper.
line 12 (iii) An educational or noncommercial scientific institution line 13 whose purpose is scholarly or scientific research. line 14 (C) For purposes of subparagraph (A), “search” means to review, line 15 either manually or by automated means, agency records for the line 16 purpose of locating those records that are responsive to a request. line 17 (b) A requester who inspects a disclosable record on the line 18 premises of the agency has the right to use the requester’s line 19 equipment on those premises, without being charged any fees or line 20 costs, to photograph or otherwise copy or reproduce the record in line 21 a manner that does not require the equipment to make physical line 22 contact with the record, unless the means of copy or reproduction line 23 would result in either of the following:
line 24 (1) Damage to the record.
line 25 (2) Unauthorized access to the agency’s computer systems or line 26 secured networks by using software, equipment, or any other line 27 technology capable of accessing, altering, or compromising the line 28 agency’s electronic records.
line 29 (c) The agency may impose any reasonable limits on the use of line 30 the requester’s equipment that are necessary to protect the safety line 31 of the records or to prevent the copying of records from being an line 32 unreasonable burden to the orderly function of the agency and its line 33 employees. In addition, the agency may impose any limit that is line 34 necessary to maintain the integrity of, or ensure the long-term line 35 preservation of, historic or high-value records. line 36 SEC. 2.
line 37 SECTION 1. Section 7922.535 of the Government Code is line 38 amended to read:
line 39 7922.535. (a)  Each agency, upon a request for a copy of line 40 records, shall, within 10 business days from receipt of the request, 97 — 3 — AB 1821
ATTACHMENT 2
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 9, Packet Page 26 line 1 determine whether the request, in whole or in part, seeks copies line 2 of disclosable public records in the possession of the agency and line 3 shall promptly notify the person making the request of the line 4 determination and the reasons therefor. If the agency determines line 5 that the request seeks disclosable public records, the agency shall line 6 also state the estimated date and time when the records will be line 7 made available.
line 8 (b)  In unusual circumstances, the time limit prescribed in this line 9 article and Article 1 (commencing with Section 7922.500) may line 10 be extended by written notice from the head of the agency or a line 11 designee to the person making the request, setting forth the reasons line 12 for the extension and the date on which a determination is expected line 13 to be dispatched. The notice shall not specify a date that would line 14 result in an extension for more than 14 business days. line 15 (c)  As used in this section, “unusual circumstances” means the line 16 following, but only to the extent reasonably necessary to the proper line 17 processing of the particular request:
line 18 (1)  The need to search for and collect the requested records line 19 from field facilities or other establishments that are separate from line 20 the office processing the request.
line 21 (2)  The need to search for, collect, and appropriately examine line 22 a voluminous amount of separate and distinct records that are line 23 demanded in a single request.
line 24 (3)  The need for consultation, which shall be conducted with line 25 all practicable speed, with another agency having substantial line 26 interest in the determination of the request or among two or more line 27 components of the agency having substantial subject matter interest line 28 therein.
line 29 (4)  The need to compile data, to write programming language line 30 or a computer program, or to construct a computer report to extract line 31 data.
line 32 (5)  The inability of the agency, because of a cyberattack, to line 33 access its electronic servers or systems in order to search for and line 34 obtain a record that the agency believes is responsive to a request line 35 and is maintained on the servers or systems in an electronic format. line 36 (A)  This paragraph does not relieve the agency of its obligation line 37 to comply with subdivision (a) when the requested record is line 38 maintained in a location other than on the electronic server or line 39 system affected by the cyberattack, or maintained in a nonelectronic line 40 format.
97 AB 1821 — 4 —
ATTACHMENT 2
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 10, Packet Page 27 line 1 (B)  This paragraph applies only until the agency regains its line 2 ability to access its electronic servers or systems and search for line 3 and obtain electronic records that may be responsive to a request. line 4 (6)  The need to search for, collect, and appropriately examine line 5 records during a state of emergency proclaimed by the Governor line 6 in the jurisdiction where the agency is located when the state of line 7 emergency currently and directly affects, due to the state of line 8 emergency, the agency’s ability to timely respond to requests due line 9 to staffing shortages or closure of facilities where the requested line 10 records are located.
line 11 (A)  This paragraph shall not apply to a request for records line 12 created during and related to the state of emergency proclaimed line 13 by the Governor.
line 14 (B)  For purposes of this paragraph, “state of emergency” means line 15 a state of emergency proclaimed pursuant to Section 8625 of the line 16 California Emergency Services Act (Chapter 7 (commencing with line 17 Section 8550) of Division 1 of Title 2).
line 18 SEC. 3.
line 19 SEC. 2. The Legislature finds and declares that Section 1 of line 20 this act, which amends Section 7922.530 of the Government Code, line 21 and Section 2 of this act, which amends Section 7922.535 of the line 22 Government Code, further, furthers, within the meaning of line 23 paragraph (7) of subdivision (b) of Section 3 of Article I of the line 24 California Constitution, the purposes of that constitutional section line 25 as it relates to the right of public access to the meetings of local line 26 public bodies or the writings of local public officials and local line 27 agencies. Pursuant to paragraph (7) of subdivision (b) of Section line 28 3 of Article I of the California Constitution, the Legislature makes line 29 the following findings:
line 30 This act balances the right of the public to access public records line 31 in a timely manner while providing public agencies proper line 32 compensation and protection from convoluted requests. line 33 acknowledging that state and local agencies provide a variety of line 34 public services and may need additional time to properly respond line 35 to requests.
line 36 SEC. 4.
line 37 SEC. 3. The Legislature finds and declares that Section 1 of line 38 this act, which amends Section 7922.530 of the Government Code, line 39 and Section 2 of this act, which amends Section 7922.535 of the line 40 Government Code, impose imposes a limitation on the public’s 97 — 5 — AB 1821
ATTACHMENT 2
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 11, Packet Page 28 line 1 right of access to the meetings of public bodies or the writings of line 2 public officials and agencies within the meaning of Section 3 of line 3 Article I of the California Constitution. Pursuant to that line 4 constitutional provision, the Legislature makes the following line 5 findings to demonstrate the interest protected by this limitation line 6 and the need for protecting that interest:
line 7 This act balances the right of the public to access public records line 8 in a timely manner while providing public agencies proper line 9 compensation and protection from convoluted requests. line 10 acknowledging that state and local agencies provide a variety of line 11 public services and may need additional time to properly respond line 12 to requests.

O
97 AB 1821 — 6 —
ATTACHMENT 2
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 12, Packet Page 29 April 7, 2026
The Honorable Ash Kalra
Chair, Senate Judiciary Committee
1020 N Street, Room 104
Sacramento, CA 95814
RE: AB 1821 (Pacheco) California Public Records Act: agency response time.

As Amended April 6, 2026 – SUPPORT
To be heard in the Assembly Judiciary Committee
The California State Association of Counties (CSAC), the League of California Cities (Cal Cities), and the California Municipal Clerks Association (CMCA) are pleased to support Assembly Bill (AB)1821 by Assemblymember Blanca Pacheco.

The California Public Records Act (CPRA) is a vital tool that enables the public to hold government accountable. Local agencies take these responsibilities seriously and devote substantial resources to responding thoroughly and promptly to public records requests. Our members are committed to transparency and accountability.

AB 1821 provides an important and practical clarification to CPRA response timelines.

The bill’s shift from “calendar days” to “business days” for initial determinations and extensions is a common‑sense update that reflects the operational realities of local agencies. Public agencies generally do not have staff available on weekends or holidays, yet current law continues to toll CPRA deadlines during these periods. A business‑day standard ensures agencies have the full, intended number of working days to conduct thorough and accurate searches for disclosable records.

Under existing law, agencies must determine within 10 days whether a request seeks disclosable records, with a possible 14‑day extension in unusual circumstances. Neither timeframe accounts for weekends or holidays when staff are unavailable. AB 1821 corrects this discrepancy by converting these periods to business days, helping agencies comply with the law more effectively and consistently.

Local agencies across California have seen a sharp rise in both the volume and complexity of CPRA requests, reporting a 73% increase over five years and noting that more than 90% of agencies have had to divert staff time away from core services to meet these demands. Modern government operations now generate far more disclosable records, including emails, texts, and internal messages, which require extensive searching, review, and redaction of sensitive information such as attorney‑client communications, personal identifiers, and medical or criminal data. At ATTACHMENT 3
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 13, Packet Page 30 4/7/2026

Page 2 of 2 ends

the same time, agencies have lost key revenue sources that once offset these costs:

Proposition 42 eliminated state reimbursement for CPRA compliance, and a 2020 California Supreme Court ruling restricted agencies from recovering staff time or technical costs associated with producing records. As a result, local governments must absorb the full cost of increasingly time‑intensive requests.

Prior to the April 6 amendments, AB 1821 would have addressed this critical issue by allowing agencies to recover reasonable costs for exceptionally burdensome searches. While that provision is no longer included, we appreciate the author’s efforts and remain committed to continued conversations about broader CPRA reform. The business‑day clarification that remains in the bill is a narrow but meaningful improvement that will help agencies comply with the law more effectively and consistently.

For these reasons, CSAC, Cal Cities, and CMCA are pleased to support AB 1821 and respectfully request your AYE vote. If you have any questions regarding our position, please do not hesitate to contact us.

Sincerely,
Eric Lawyer
Senior Legislative Advocate
California State Association of
Counties
[email protected]
Johnnie Pina
Legislative Advocate
League of California Cities
[email protected]
Ethan Nagler
Legislative Representative
California Municipal Clerks Association
[email protected]
cc: The Honorable Blanca Pacheco, Member, California State Assembly Members, Assembly Judiciary Committee
Nicholas Liedtke, Chief Counsel, Assembly Judiciary Committee Liz Enea, Consultant, Assembly Republican Caucus
ATTACHMENT 3
Council Regular Meeting, 5/5/2026, Item No. 4., Item Page 14, Packet Page 31 Council
Agenda Report
№12/25
FROM: Andrea Renny, PE, Public Works Director
Prepared By: Rebecca Baggott, Environmental Regulations Analyst SUBJECT: Open a Public Hearing to Receive Protests of Proposed Stormwater Utility Fees and Adopt a Resolution Directing a Mailed Ballot Proceeding if a Majority Protest Does Not Exist (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) – This item will be heard during the afternoon session at 4:00 p.m. and continued to 7:00 p.m., which is the time noticed for the hearing. The public hearing will be opened at 4:00 but it will not be closed until this item is considered at 7:00 p.m.

RECOMMENDATION:

That the City Council open a public hearing, consider all protests against the proposed Stormwater Utility Fee,
and adopt the attached Resolution confirming that a
majority protest does not exist and directing a mailed
ballot proceeding.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

This action is consistent with prior City Council direction to evaluate and implement a sustainable funding
mechanism for stormwater services and aligns with the
City’s strategic initiatives to maintain critical
infrastructure and ensure long-term fiscal sustainability.

Establishing a Stormwater Utility Fee supports the City’s efforts to comply with State and Federal regulatory
requirements while protecting water quality, reducing
pollutants in stormwater runoff, and maintaining the
City’s storm drainage system.

The proposed Stormwater Utility Fee is subject to Article XIII D of the California Constitution, commonly referred to as Proposition 218, which governs property-related
Agenda Report Highlights
• The City of Monterey is conducting
a public hearing on May 5, 2026, to
receive and tabulate protests
against a proposed Stormwater
Utility Fee.
• Existing stormwater funding is
projected to be depleted by Fiscal
Year 2026-27, requiring a new
dedicated source to meet state and
federal regulatory mandates.
• Under Proposition 218, the City
cannot move forward with the fee if
written protests are submitted by a
majority of the affected property
owners.
• If no majority protest exists, the City
will initiate a mailed ballot
proceeding where a majority of
returned votes is required for final
approval.
• Approval must be secured and
submitted to the County Auditor by
August 1, 2026, to avoid deferring
fee collection until 2027.

Date: 5/5/2026
Item No.: 5.

Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 1, Packet Page 32 №12/25
fees and charges. Proposition 218 requires that revenues derived from the fee not exceed the funds required to provide stormwater services and that such revenues be used only for that purpose. The fee must be proportional to the cost of service attributable to each parcel and may only be imposed for services that are actually used by, or immediately available to, the property.

In addition, the fee cannot be imposed for general governmental services available to the public at large.

Proposition 218 also establishes procedural requirements that must be satisfied prior to imposing the fee. These requirements include providing written notice to property owners and conducting a public hearing not less than 45 days after the notice is mailed. If written protests are submitted by a majority of affected parcels, the City is prohibited from imposing the fee.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There is no direct fiscal impact associated with conducting the public hearing and determining the existence of a majority protest. The costs associated with preparing and mailing the Proposition 218 notices and administering the protest process are included in the project budget, and no additional funding is necessary.

If approved by property owners through the subsequent mailed ballot proceeding, the proposed Stormwater Utility Fee would provide a dedicated and ongoing funding source to support stormwater program operations, regulatory compliance, system maintenance, and capital improvements. Without a dedicated funding source, stormwater program activities will continue to rely on limited General Fund resources, which may constrain the City’s ability to meet regulatory requirements and maintain infrastructure over time.

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, Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential to cause 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 may choose not to open a public hearing and continue the hearing to a future date if additional time is needed to receive public testimony or complete the tabulation of written protests. This is not recommended, as this would limit the City’s ability to meet the schedule requirements and timelines to get the fees approved and submitted to the County Auditor before August 1, 2026. If deadlines are missed, any collection would be deferred to August 2027 at earliest. Additionally, this may affect the City’s ability to meet regulatory requirements and maintain critical infrastructure.

Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 2, Packet Page 33 №12/25
DISCUSSION:

The City of Monterey is required to comply with State and Federal regulations governing stormwater management, including requirements to reduce pollutants in urban runoff, protect receiving waters, and maintain stormwater infrastructure. These requirements are implemented through the City’s Municipal Separate Storm Sewer System (MS4) Permit and require ongoing program activities, maintenance, and capital improvements.

Currently, stormwater program activities are supported by the City’s Stormwater Fund, which has been used to fund ongoing operations, maintenance, and regulatory compliance. However, available Stormwater Fund resources are projected to be depleted by Fiscal Year 2026–27. As regulatory requirements continue to expand and infrastructure needs increase, available funding is not sufficient to sustain the program over the long term. Establishing a Stormwater Utility Fee would provide a stable and dedicated funding source to support ongoing operations, maintenance, regulatory compliance, and capital improvements.

Proposition 218 Public Noticing Requirements
The City’s procedures for the submission and tabulation of protests in connection with rate hearings, such as this stormwater rate hearing, are set forth in Resolution 26-037. (Attachment

1.) In accordance with Article XIII D of the California Constitution (Proposition 218), the City is required to provide written notice of the proposed fee to property owners and to conduct a public hearing not less than 45 days after the notice is mailed.

On March 3, 2026, the City Council adopted a resolution declaring its intention to establish the proposed Stormwater Utility Fee and set a public hearing for May 5, 2026. Notices were subsequently mailed to property owners of record on March 20, 2026 in compliance with Proposition 218 requirements. The notice included the proposed fee amount, the basis for the fee, and instructions for submitting written protests.

Written protests must be received prior to the close of the public hearing to be counted. Each parcel is entitled to one protest, and only one protest per parcel may be counted.

Majority Protest Determination
At the May 5, 2026 public hearing, the City Council will receive public testimony and consider all written protests submitted regarding the proposed Stormwater Utility Fee. At the conclusion of the public hearing, all timely submitted protests will be tabulated.

A protest may be submitted by either a record owner or a tenant directly liable for the proposed fee, but only one protest per parcel is counted. A majority protest exists if written protests are submitted by a majority of the affected parcels. If a majority protest is determined to exist, the City is prohibited from imposing the proposed fee and no further action may be taken to proceed with its adoption.

If a majority protest does not exist, the City Council may adopt the attached Resolution confirming the results of the protest proceeding.

Next Steps in the Process
If the City Council adopts the Resolution confirming that a majority protest does not exist, the City will proceed with a mailed ballot election for the proposed Stormwater Utility Fee. In Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 3, Packet Page 34 №12/25
accordance with Proposition 218 requirements applicable to stormwater fees, the fee must also be approved by a majority vote of property owners returning ballots. Ballots and an informational guide will be mailed to property owners, and the election will be conducted in accordance with applicable provisions of State law. The proposed fee may only be implemented if it is approved through this mailed ballot proceeding.

Following the mail ballot process, staff will initiate another process to authorize the collection of the stormwater utility charges on the tax roll. Staff will mail a notice of availability of the annual report to all parcels and a notice of an additional public hearing. This process will conclude with a public hearing, where Council will consider adopting the annual report to add stormwater service charges to the tax roll, if there is not a majority protest. Once approved, the City will then submit the report to the County Auditor before August 1, 2026 to have the charges placed on the tax roll.

AR/rb
Attachments: 1. Resolution

2. Procedures for the Submission and Tabulation of Protests (Reso. 26-037) 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, 5/5/2026, Item No. 5., Item Page 4, Packet Page 35 RESOLUTION NO. __-___ C.S.

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

DIRECTING A MAILED BALLOT PROCEEDING IF A MAJORITY PROTEST

DOES NOT EXIST
WHEREAS, the City of Monterey owns, operates, and maintains a stormwater management system that provides drainage, flood control, water quality protection, and regulatory compliance services;
WHEREAS, the City is required to comply with State and Federal regulations, including requirements under the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit;
WHEREAS, the City incurs costs to operate, maintain, repair, and improve its stormwater system, including compliance with regulatory mandates, infrastructure maintenance, and capital improvements;
WHEREAS, existing funding sources are not sufficient to sustain stormwater program activities over the long term and are projected to be depleted by Fiscal Year 2026–27; WHEREAS, the City has conducted a Stormwater Rate Study to evaluate the cost of providing stormwater services and to develop a proposed fee structure that is fair, equitable, and proportional to the cost of service;
WHEREAS, Proposition 218 requires that fees cannot exceed the cost of service, must be fair and equitable, and are based on the actual cost of providing the entire service, and each parcel must be charged its proportional cost of service attributable to the parcel; and WHEREAS, the California Constitution requires (1) notice; (2) a public hearing; and (3) a protest process before imposing a property-related fee and the City Council adopted Resolution 26-037 to establish procedures for the submission and tabulation of protests in connection with rate hearings conducted pursuant to Proposition 218;
WHEREAS, the proposed Stormwater Utility Fee will not be used for general governmental services and will be used solely for stormwater-related services and facilities; WHEREAS, pursuant to Proposition 218, a notice of the proposed Stormwater Utility Fee was mailed on March 20, 2026 to all affected parcels;
WHEREAS, on May 5, 2026, the City held a public hearing to consider all protests against the proposed Stormwater Utility Fee;
WHEREAS, the total number of written protests presented by the close of the public hearing was less than 50% plus one of the total number of property owners subject to the proposed fee; 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 Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 5, Packet Page 36 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 confirms that a majority protest does not exist for the proposed Stormwater Utility Fee and directs that the proposed fee be submitted to property owners for approval through a mailed ballot proceeding in accordance with Proposition 218 and Resolution 26-039.

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, 5/5/2026, Item No. 5., Item Page 6, Packet Page 37 RESOLUTION NO. 26-037 C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY

ADOPTING PROCEDURES FOR THE SUBMISSION AND TABULATION OF PROTESTS IN

CONNECTION WITH RATE HEARINGS CONDUCTED PURSUANT TO ARTICLE XIIID, SECTION 6, SUBDIVISION (a) OF THE CALIFORNIA CONSTITUTION (PROPOSITION 218)
WHEREAS, Proposition 218 was approved by California voters on November 5, 1996, adding Articles XIIIC and XIIID to the California Constitution; WHEREAS, Articles XIIIC and XIIID of the California Constitution impose certain procedural and substantive requirements relating to assessments (as defined); WHEREAS, Article XIIID, section 6 of the California Constitution requires the City of Monterey (the “City”) to consider written protests prior to adopting or increasing certain propertyrelated fees; WHEREAS, this constitutional provision does not offer specific guidance as to who is allowed to submit protests, how written protests are to be submitted, or how the City is to tabulate the protests;
WHEREAS, the City Council has the authority to adopt procedures to be followed when notice of a public hearing regarding adoption or increase of property-related fees has been given by the City pursuant to Article XIIID, section 6, subdivision (a) of the California Constitution;
WHEREAS, the City Council believes it to be in the best interest of the City and its property owners to confirm and memorialize the City’s procedures regarding implementation of the provisions of Proposition 218 and pertinent statues; and WHEREAS, the City of Monterey has 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.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF MONTEREY HEREBY RESOLVES AS FOLLOWS:

Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 7, Packet Page 38 SECTION 1. The City Council hereby finds the above recitals true and correct and they are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 2. Statement of Legislative Intent. In adopting this resolution, it is the City Council’s intent to adopt procedures that are consistent and in compliance with Articles XIIIC and XIIID of the California Constitution and with California Government Code sections 53750 through 53758 (the “Proposition 218 Omnibus Implementation Act”). It is not the intent of the Council to vary in any way from the requirements of either the California Constitution or the laws of the State of California. If there is any inconsistency between a provision of this resolution and state law, state law will govern.

Further, the procedures set forth in this resolution are in addition to, and do not displace, the requirements to exhaust administrative remedies in Section 1-4.00 of the City’s Code. The protest procedure at issue in this resolution concerns the approval of a property related fee subject to Article XIII D of the California Constitution, not a claim regarding that fee’s legality.

The exhaustion procedure in Section 1-4.00 concerns the claim that a given revenue measure is unlawful.

SECTION 3. Definitions. Unless the context plainly indicates another meaning was intended, the following definitions shall apply in construction of these guidelines.

A. “Parcel” means a County Assessor’s parcel the owner or occupant of which is subject to the proposed fee that is the subject of the hearing.

B. “Record owner” or “parcel owner” means the person or persons whose name or names appear on the County Assessor’s latest equalized assessment roll as either the owner or tenant of a parcel.

C. “City Clerk” means the City Clerk of the City of Monterey or the City Clerk’s designee as identified in the notice of the proposed charges.

SECTION 4. Notice.

A. The City shall comply with the procedures set forth in City Code section 1-4.00(d).

B. The City shall provide notice of the proposed charges and public hearing via U.S. mail to all record owners at least 45 days prior to the public hearing.

C. The notice shall contain the following information:
(i) The date, time, and place of the public hearing;
(ii) The reason for the rate increase;
(iii) The duration of the rate increase;
(iv) The amount to be charged to the record owner’s parcel or parcel category; (v) The basis upon which the amount of the rate was calculated; (vi) Clear and accurate instructions on how to submit a timely written protest; and (vii) A statement that the lack of a majority protest will result in the fee being imposed.

D. A record owner’s failure to receive a notice shall not invalidate the proceedings conducted under this section and Article XIIID, Section 6 of the California Constitution.

Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 8, Packet Page 39 SECTION 5. Protest Submittal.

A. Any record owner who is subject to the fee that is the subject of the public hearing may submit a written protest by:
• Personal delivery to the secure drop box across from the accessible entrance to the Council Chamber, City Hall, 580 Pacific Street, Monterey, CA 93940, with the envelope clearly marked “Attention: Prop 218 Protest”; or • Mail to the Office of the City Clerk, Attention: Prop 218 Protest, 580 Pacific Street, Monterey, CA 93940; or
• Personally submitting the protest at the public hearing.

B. Protests must be received prior to the end of the public hearing, including those mailed to the City or personally delivered. No postmarks will be accepted; therefore, any protest not actually received by the close of the hearing, whether or not mailed prior to the hearing, shall not be counted.

C. Written protests in other forms such as email, fax, photocopy, social media, etc. shall not be counted.

D. Although oral protests at the public hearing shall not qualify as a formal protest unless accompanied by a written protest, the City welcomes input from the community during the public hearing on the proposed changes.

SECTION 6. Protest Requirements.

A. A written protest must include:
(i) A statement that it is a protest against the proposed charge that is the subject of the hearing;
(ii) Name of the record owner who is submitting the protest and the parcel number of the property;
(iii) Identity, by street address or parcel number (APN), of the parcel with respect to which the protest is made; and
(iv) Original signature and legibly printed name of the record owner who is submitting the protest. The City Clerk may exercise discretion to accept an alternative that reasonably establishes the record owner’s identity if an accommodation is necessary.

B. Protests shall not be counted if any of the required elements (i through iv) outlined in the preceding subsection A are omitted.

SECTION 7. Protest Withdrawal. Any record owner who submits a protest may withdraw it by submitting to the City Clerk a written request that the protest be withdrawn. The withdrawal of a protest shall be submitted before the close of the public hearing and contain sufficient information to identify the affected parcel and the name of the record owner who submitted both the protest and the request that it be withdrawn.

SECTION 8. Multiple Record Owners.

A. Each record owner of a parcel served by the City may submit a protest. This includes instances where:
(i) A parcel is owned by more than a single record owner or more than one name appears on the property tax roll; or
Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 9, Packet Page 40 (ii) Multiple parcels are served via a single utility account, as master-metered multiple family residential units.

B. Only one protest will be counted per parcel as provided by Government Code section 53755(b).

SECTION 9. Ownership Disputes. In the event of a dispute regarding the ownership of a parcel, the City will make such determination from the official County Assessor records and any evidence of ownership submitted to the City prior to the conclusion of the public hearing. The City will be under no obligation to obtain or consider any other evidence as to ownership of property and its determination of ownership shall be final and conclusive.

SECTION 10. Tabulation of Protests.

A. Any protest that was delivered or mailed in an envelope shall remain sealed until tabulation commences, provided that the envelope was received sealed and properly marked as required in Section 5, Protest Submittal. Once a protest is opened during tabulation, it becomes a disclosable public record, as required by state law.

B. At the public hearing, the City Clerk may report to the City Council the number of protests received prior to the hearing.

C. Following the conclusion of the public hearing, the City Clerk may report to the City Council the total count of protests received.

D. Following the conclusion of the public hearing, if the number of protests received is obviously substantially fewer than the number required to constitute a majority protest, the City Clerk may determine the absence of a majority protest without opening the envelopes in which protests are returned.

E. Following the conclusion of the public hearing, the City Clerk does not determine the absence of a majority protest based on the number of protests received, then at its discretion the City Council may order by majority vote that the tabulation either:
(i) take place immediately, or
(ii) be continued to a different time or different location, which shall be announced at the time of the majority vote. Such continuation shall be conducted in an accessible location where interested members of the public may observe the tabulation. Following tabulation, the City Clerk shall bring her/his final protest determination to the City Council for action at the next regular or special meeting.

F. The City Clerk shall oversee the tabulation of the protests and may be assisted by City staff members and/or technical staff from a third party. The City Clerk shall follow the rules and procedures of the laws of the State of California, this resolution, and any other rules and procedures of the Council or the City.

G. The City Clerk shall not accept as valid any protest if she or he determines that any of the following is true:
(iii) The protest does not state its opposition to the proposed charges. (iv) The protest does not name the record owner of the parcel identified in the protest as of the date of the public hearing.
(v) The protest does not identify a parcel served by the City that is subject to the proposed charge.
(vi) The protest does not bear an original signature of the named record owner with respect to the parcel identified on the protest. Whether a signature is valid shall Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 10, Packet Page 41 be entrusted to the reasonable judgment of the City Clerk, who may consult signatures on file with the County Elections Official.
(vii) The protest was altered in a way that raises a fair question as to whether the protest actually expresses the intent of a record owner to protest the charges. (viii) The protest was not received by the City Clerk before the close of the public hearing on the proposed charges.
(ix) A request to withdraw the protest was received prior to the close of the public hearing on the proposed charges.

SECTION 11. City Clerk’s Decisions Final. The City Clerk’s decision, in consultation with the City’s legal counsel, that a protest is not valid shall constitute a final action of the City and shall not be subject to any internal appeal.

SECTION 12. Majority Protest.

A. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners of a majority (50% plus one) of the parcels subject to the proposed charge.

B. The number of parcels at the time that notices were issued shall control in determining whether a majority protest exists.

C. If a majority protest is received, the City Council shall not impose the rate increase.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this 3rd day of March, 2026, by the following vote:

AYES: 3 COUNCILMEMBERS: Barber, Rasch, Smith
NOES: 2 COUNCILMEMBERS: Garcia, Williamson
ABSENT: 0 COUNCILMEMBERS: None
ABSTAIN: 0 COUNCILMEMBERS: None
APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 5., Item Page 11, Packet Page 42 Council
Agenda Report
№12/25
FROM: Kimberly Cole, AICP, Community Development Director Anastacia Wyatt, Housing Manager
Prepared By: Jacob Verania, HCD Coordinator
SUBJECT: Conduct a Public Hearing and Receive Public Comments on the Draft Fiscal Year 2026-2027 Annual Action Plan for Community Development Block Grant (CDBG) Funds, Authorize Submittal to the U.S. Department of Housing and Urban Development (HUD), Authorize the City Manager to Make Administrative Changes Requested by HUD, and Authorize Staff to Amend the Public Services Budget to Meet the CDBG 15% Funding Cap (Exempt from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15301, Class1, 15306, Class 6 and 15326, Class 26)
RECOMMENDATION:

That the City Council conduct a public hearing and
receive public comments on the Draft Fiscal Year (FY)
2026-2027 Annual Action Plan (Action Plan) for CDBG
Funds, adopt a resolution approving the Action Plan,
authorize submission to HUD, authorize the City
Manager to make administrative changes requested by
HUD, and authorize staff to amend the public services
budget to meet the CDBG 15% funding cap.

VALUE DRIVERS:

Address homelessness through programs and
partnerships such as the Multidisciplinary Outreach
Team (MDOT) and continued support of homeless
service agencies through the City’s Community
Development Block Grant program.

Recognize that City government’s role is to provide core services to the public, and partnerships with nonprofit, military, business, and other government agencies can
be an effective means of supporting the public good.

POLICY IMPLICATIONS:

The Action Plan is a one-year plan and budget that will implement the second year of the City’s adopted 2025–
2029 Five Year Consolidated Plan (Con Plan) for
spending federal CDBG money on programs to benefit
low- and moderate-income households residing in the
City. Policies and programs identified in the Action Plan will be funded in FY 2026-2027 and are consistent with
the goals and priorities set in the CDBG FY 2025-2029
Consolidated Plan.

Agenda Report Highlights
• The City Council is considering the
adoption of the FY 2026-2027 Annual
Action Plan to guide the use of federal
Community Development Block Grant
funds.
• The proposed plan proposes a budget
of $1,465,540 derived from federal
entitlement grants and projected
program income from loan payoffs and
property sales.
• Primary funding areas include public
services, public facilities, housing
preservation programs, and
administrative planning.
• Nine local non-profit agencies are
tentatively slated to receive $215,400
in public service grants to support
seniors, youth, and homeless
individuals.
• Staff may need to administratively
adjust specific grant amounts to
comply with federal spending caps if
actual program income is lower than
projected.

Date: 5/5/2026
Item No.: 6.

Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 1, Packet Page 43 №12/25
CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: The Levine Act applies to the award of CDBG funds to subrecipients.

FISCAL IMPLICATIONS:

The City of Monterey’s FY 2026-2027 Annual Action Plan is based on an estimated award of $242,234 in CDBG entitlement funds and an estimated $1,223,306 in program income funds. The funds consist of federal entitlement, carryover from the previous year, program income generated, loan payments, and property sales as follows:
• $242,234 in estimated entitlement funds from CDBG/HUD • $1,223,306 in projected program income (pay off from rehabilitation loans and the sales of City owned deed restricted units). It is important to note that the City’s housing budget is based on projected revenue. If revenue decreases, the amount of program funding decreases as well.

City staff monitors the CDBG budget monthly to ensure that revenues and expenditures are within budget.

ENVIRONMENTAL DETERMINATION:

The Action Plan is a planning document and is considered exempt under the Federal National Environmental Policy Act (NEPA) guidelines (24 CFR Part 58). The Action Plan is also determined to be exempt from the California Environmental Quality Act Guidelines (Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26).

Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions found at CEQA Guidelines Section 15300.2.

Exception a - Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located - a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are considered to apply in all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. The proposed action recommending the draft Action Plan for review and implementing budget includes the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration. There are no project sites referenced in the Action Plan and implementing budget that are located in a particularly sensitive environment. No impact is anticipated.

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. The proposed action recommending the draft Action Plan for review and implementing budget includes the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration. No cumulative impacts are foreseeable.

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. The proposed action recommending the draft Action Plan for review and implementing budget includes the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration and no significant effect is anticipated.

Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 2, Packet Page 44 №12/25
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 EIR. There are no project sites referenced in the Action Plan and implementing budget that are located near scenic highways. No impacts are anticipated near scenic highways.

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. There are no project sites referenced in the Action Plan and implementing budget that are listed on any list compiled pursuant to Section 65962.5 of the Government Code.

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 Action Plan does not reference any sites or locations identified as a historical resource.

ALTERNATIVES CONSIDERED:

The City Council may recommend changes to the draft Action Plan if it determines that changes are necessary to better implement City policy. However, the Action Plan is a one-year plan based on the Consolidated Plan (Con Plan) planning period. The City went through extensive public participation to determine the programs that would be conducted and this plan adheres to the Con Plan.

The City met with the rating and ranking review committee on January 16, 2026 to review public service grant applications, as defined further in this report, and the funding amounts were agreed upon. The rating and ranking committee also understood that Housing staff may need to amend funding amounts to meet the allowed 15% public service funding cap and agreed that staff should be authorized by City Council to amend the public service budget as needed to ensure the grant administration is in compliance with CDBG requirements §570.201(e), §570.207. The public service funding is dependent on prior year program income and current year grant allocation. Staff will not fully know the amount of funding for public services until the end of the current FY 2025-2026.

DISCUSSION:

To receive CDBG funds, the City must submit an Action Plan to HUD each year. The Action Plan describes the City’s planned investments for the coming program year, including proposed actions and CDBG projects. The Action Plan is the City’s application for federal funds and provides a yearly operating plan for activities. It outlines the City’s priorities for addressing the needs of the community’s disadvantaged and low-income households. Proposed programs and activities address community needs. These activities relate back to the goals and objectives presented in the Con Plan (available on monterey.gov/housing).

The proposed activities support the Con Plan goals and objectives. The draft Action Plan proposes funding a variety of housing and community service projects. Overall, there are four major project areas including Public Services, Public Facilities and Infrastructure, Housing Opportunities including Housing Preservation Programs, and Planning and Administration.

It is important to note that CDBG funding is subject to U.S. Congress approval of the Federal budget, and it is possible that CDBG entitlement grant funding may be reduced or modified. The official allocation has not yet been released by HUD. Additionally, the City projects program income funding for the coming Fiscal Year and the amount of program income can vary based Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 3, Packet Page 45 №12/25
on the sale of deed-restricted low-income housing units and loan payoffs. Therefore, the exact amount of CDBG funding is unknown at this time. Planned activities are based on a generally conservative budget. If funding varies substantially within the program year, staff will amend the Action Plan based on the City’s HUD Citizen Participation Plan (CPP).

CDBG funds are primarily for activities that benefit low to moderate income and disadvantaged households in the community. Public service funds cannot exceed 15% of the total allocation of funds and prior year program income. Planning activities cannot exceed 20% of the annual CDBG funds. If Council wishes to direct staff to provide additional services beyond those proposed in the Action Plan that exceed spending caps or do not meet HUD eligibility standards, then alternative funding sources would need to be identified.

To continue the City’s efforts to comply with HUD CDBG spending regulations and implement approved priorities, the Action Plan projects a total estimated funding in an amount up to $1,465,540 for FY 2026-2027. The City estimates program income for the fiscal year will range between $800,000 to $1,300,000. On April 8, 2026, the City received their Fiscal Year 2026- 2027 Community Planning and Development (CPD) formula grant allocation in the amount of $242,234 from HUD with approximately $8,000 less than anticipated. If the City does not receive additional program income, as expected, staff will need to reduce amounts allocated for public service grants.

The Housing Division began the planning process in October by developing a calendar and preparing a Notice of Funding Availability (NOFA). Last year, Housing staff released the Fiscal Year 2026-2027 NOFA for the CDBG program on November 5, 2025, for Public Services and Public Facilities. City staff held a required grant application workshop on November 12, 2025.

The purpose of the notice and workshop was to solicit applications for viable affordable housing and public facilities projects through a competitive application process. Applications were due to the City on December 12, 2025. A list of the applications received for public service and infrastructure grants are detailed in Table 1 below. On January 16, 2026, Housing staff conducted agency presentations before a grant committee. After all presentations were completed, the committee convened to rate and rank each agency that applied for CDBG funding.

Public Services ($215,400 budgeted)
Public Service grants provide funding to local non-profit agencies serving primarily low and moderate-income households and individuals. The City may award public service funds based on a cap that is determined by a HUD formula of 15% of current year entitlement and up to 15% of prior year program income. Public service agencies were selected through an open and competitive request for proposals process that included a notice of funding availability, a mandatory technical assistance workshop, and agency presentations of proposals to the community services committee (comprised of representatives from the City Manager’s Office, Planning Commission, Monterey County’s Homeless Services, Police Department, Planning Office, and Housing Office).

Award amounts were determined by the City’s rating and ranking committee through the agency’s funding request in their application. These grants support services for seniors, persons with disabilities, homeless persons, youth and families, and fair housing services. Agencies that have applied for funding are shown in Table 1. Tentative award amounts are depicted in the Table but ultimately depend on the amount of entitlement and prior year program income.

The City estimates a budget of $215,400 and it is recommended not to exceed the amounts below to ensure that the City remains within the required public service spending cap. The City Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 4, Packet Page 46 №12/25
will not know the full amount of public service funding until the end of the 2025-2026 fiscal year.

Therefore, the amounts may vary slightly to ensure the City is within the funding cap. Should the funding cap be exceeded, staff recommends that the City Council allow the allocation for Meals on Wheels to be reduced by $8,000. If additional reductions are necessary, staff recommend that the City Council authorize staff to reduce the amount proportionally among other public service activities to meet the funding cap. Currently, it is recommended Meals on Wheels receive the highest allocation of $50,000. This is approximately $25,000 more than other public service activities, and this will reduce their allocation in relation to the other public service agencies. Should the amount of program income that is received by the City be even lower, staff would reduce all other agencies by a proportional amount. Meals on Wheels will not be further reduced after the initial $8,000 reduction.

Table 1 Public Service Grants (CDBG)
Agency Public Service Grants
Alliance on Aging $25,000
Community Human Services Casa de Noche Buena $20,000
Community Human Services Safe Place $20,000
Community Human Services Shuman HeartHouse $20,000
ECHO Fair Housing $15,400
Gathering for Women $20,000
Interim, Inc. $25,000
Victory Mission $20,000
Meals on Wheels $50,000
Total $215,400
Public Facilities and Infrastructure ($2,200,000 in projects planned) In addition to the public service grants, the City’s NOFA solicited applications for viable public facilities and infrastructure projects through the competitive application process. These projects are considered backup projects should funding allow. Projects are reviewed by staff for eligibility and compliance with HUD regulations. Projects are also given preference for being construction-ready, completion of Environmental Reviews, having multiple, secured funding sources, and having project managers with experience with federally funded public works construction projects. The City received two external applications (Meals on Wheels and Gathering for Women) and prioritizes projects for MidPen Housing and Public Works should funding allow. The projects are awarded based on priority of Tier 1 and Tier 2:

Tier One:
• Project: MidPen Madison Street Affordable Housing Project - $1,500,000 • Project: Meals on Wheels Community Kitchen Project - $250,000 • Project: Gathering For Women Community Kitchen Project - $200,000 Tier Two:
• Public Works: City Infrastructure Project - $150,000
• Project: City of Monterey Homeless Shelter Improvements - $100,000 As backup projects, the Action Plan proposes to prioritize available funding for the MidPen Madison Street Affordable Housing Project for up to $1,500,000, Meals on Wheels Community Kitchen Project for up to $250,000, Gathering for Women Community Kitchen Project for up to $200,000, an eligible Public Works/City Infrastructure project for up to $150,000, and a Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 5, Packet Page 47 №12/25
Homeless Shelter Improvement Project for up to $100,000. Activating any of these backup projects will not constitute a substantial amendment to the Action Plan.

Housing Opportunities: Preservation Programs (up to $1,210,000 planned) The Acquisition, Rehabilitation and Repair program of ownership units purchased for resale to low-income first-time homebuyers is a priority program in the Action Plan. The City estimates a budget of up to $940,000 for this program. This program is essential to maintaining the City’s existing affordable housing stock. If the City is unable to purchase the units when they become available, in some cases, they could convert to market rate. This program ensures preservation of affordable housing.

The Action Plan includes a small rehabilitation grant program planned as a backup project. The Housing Rehabilitation Grant and Loan Program is intended to improve the condition of substandard owner-occupied single-family homes with special emphasis placed upon the remediation of health and safety housing issues to help people age in place. These grants provide emergency housing repairs, minor home repairs, and accessibility improvements for low-income homeowners. The program is budgeted as a backup program for up to $150,000 in repairs based on the City’s Homeowner Housing Rehabilitation Program Guidelines. The City also budgeted for major rehabilitation loans as a backup program of up to $120,000 for larger major home repairs that exceed the grant programs offered.

Adjusting the funding levels for these housing activities based on the actual amounts of program income generated will not constitute a substantial amendment to the Action Plan.

Planning and Administration ($118,000 budgeted)
Planning and administration activities include monitoring and providing technical assistance to sub-recipients, professional planning on-call assistance as needed, and continuing outreach efforts to service providers in the area to identify new affordable housing projects. The City strives to continue building upon its existing collaboration and coordination efforts with other public agencies, service organizations, and the community to work together to increase the availability of affordable housing and reduce homelessness.

If the actual CDBG entitlement and program income is less than anticipated and decreases in other projects are not enough to balance the budget, decreases will be enacted as needed to planning and administration to not exceed the HUD required 20% funding cap.

Public Outreach and Citizen Participation
Public engagement is a vital element to the success of the CDBG program. In order to inform the public about the program and solicit comments on the Action plan, the City has completed, and is in the process of, implementing the following:
✓ November 5, 2025: The City released the Notice of Funding Availability (NOFA) for the CDBG Public Services and CDBG Public Facilities and Infrastructure Program. ✓ November 12, 2025: City staff held a required grant application workshop. ✓ January 16, 2026: Agency Presentations of Applications to grant committee. ✓ March 25, 2026: Draft action plan available and start of the 30-day public comment period.
✓ April 14, 2026: Tuesday, Planning Commission Public Hearing for draft Action Plan. ✓ May 5, 2026: Tuesday, City Council Public Hearing to adopt Action Plan and end of the 30-day comment period.
✓ May 15, 2026: Action Plan due to HUD.

Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 6, Packet Page 48 №12/25
The Action Plan is available at: monterey.gov/housing as well as the Planning and Housing Offices located at 570 Pacific Street and the Monterey Public Library located at 625 Pacific Street.

Planning Commission Comments and Action
On April 14, 2026, the Planning Commission conducted a public hearing and received public comments on the Action Plan. The Planning Commission recommends the Council approve the Action Plan and amended the attached draft plan to clarify that the City will comply with all applicable state and federal laws (Exhibit A – Section 1).

In conclusion, staff recommends that the City Council conduct a public hearing and receive public comments on the proposed Fiscal Year (FY) 2026-2027 Draft Annual Action Plan for CDBG, adopt a resolution approving the Action Plan, authorize submission to HUD, authorize the City Manager to make administrative changes requested by HUD, and authorize staff to amend the Public Services budget, if necessary, to meet the CDBG 15% funding cap.

KC/aw/jv
Attachments: 1. Draft Resolution
Exhibit A: Draft FY 2026-2027 Annual Action Plan

2. Public Comments Received Prior to Staff Report Preparation e: Public Services Grant Applicants and Attendees
Coalition of Homeless Service Providers
Monterey Neighborhood Associations
Monterey Business Associations
Police Chief
Housing Outreach List
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 7, Packet Page 49 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
ADOPTING THE DRAFT FISCAL YEAR 2026-2027 ACTION PLAN FOR COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, AUTHORIZING SUBMITTAL TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), AUTHORIZING

THE CITY MANAGER TO MAKE ADMINISTRATIVE CHANGES REQUESTED BY HUD, AND

AUTHORIZING STAFF TO AMEND THE PUBLIC SERVICES BUDGET TO MEET THE CDBG 15% FUNDING CAP
WHEREAS, since 1975, the City of Monterey has been an eligible metropolitan entitlement city under the CDBG programs;
WHEREAS, the Five Year (2025-2029) Consolidated Plan (Consolidated Plan) adopted in Resolution No. 25-035 identified funding sources to provide housing and housing services and prioritized the use of local, state, and federal funds; WHEREAS, consistent with Consolidated Plan priorities for Housing and Community Services, the Draft Fiscal Year 2026-2027 Annual Action Plan (Action Plan) provides resources to implement the Consolidated Plan to meet HUD National Objectives; WHEREAS, a public notice to announce the publication of the Action Plan and initiate a 30-day period for review and comment was published March 25, 2026 in the Monterey Herald, a newspaper of areawide circulation;
WHEREAS, an additional public notice to announce the publication of the Action Plan was published March 26, 2026 in the Monterey County Weekly, a free newspaper of areawide circulation;
WHEREAS, the Action Plan was published and made available for public review on March 25, 2026;
WHEREAS, the Consolidated Plan outlines four primary goals for community improvement through the use of CDBG funds including homeless prevention and public services, affordable housing opportunities, public facilities and infrastructure, and planning and administration;
WHEREAS, the Action Plan will prioritize the following programs including Public Service Grants, Acquisition and Rehabilitation Programs, and Planning and Administration.

WHEREAS, the Action Plan will include a list of backup projects such as Public Facility and Infrastructure Projects, Minor Housing Rehabilitation and Repair Program, and the Major Housing Rehabilitation Loan Program if more funding becomes available.

WHEREAS, any Public Services Grants that are funded will not exceed the 15% funding cap as required by HUD;
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 8, Packet Page 50 WHEREAS, any funds that are charged for Planning and Administration will not exceed the 20% funding cap as required by HUD; and
WHEREAS, the Action Plan is considered exempt under the Federal National Environmental Policy Act (NEPA) guidelines (24 CFR Part 58). The Action Plan is also determined to be exempt from the California Environmental Quality Act Guidelines (Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26).

Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions found at CEQA Guidelines Section 15300.2.

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 EIR. There are no project sites referenced in the Action Plan and implementing budget that are located near scenic highways. No impacts are anticipated near scenic highways.

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. There are no project sites referenced in the Action Plan and implementing Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 9, Packet Page 51 budget that are listed on any list compiled pursuant to Section 65962.5 of the Government Code.

BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby approves the Fiscal Year 2026-2027 Action Plan for Community Development Block Grant Funds, authorizes submittal of the Action Plan to the U.S. Department of Housing and Urban Development as presented and discussed at the Public Hearing and reflected in Exhibit A, authorizes the City Manager to make administrative changes requested by HUD, and authorizes staff to amend the public services budget to meet the CDBG 15% funding cap.

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, 5/5/2026, Item No. 6., Item Page 10, Packet Page 52 Annual Action Plan 1
OMB Control No: 2506-0117 (exp. 09/30/2021)

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 11, Packet Page 53 Annual Action Plan 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Monterey (City) has the goal of creating a community that effectively invests in their residents as recipients of the Community Development Block Grant (CDBG) from the US Department of Housing and Urban Development (HUD). The Consolidated Plan (Consolidated Plan) is a five-year strategic plan to address community development and housing needs that are specific to the City. The City utilizes the Consolidated Plan to allocate maximum efforts, including programming and funds, towards housing and community development goals. These priorities are established through careful and considerate analysis by researching demographics of the City, housing affordability and purchasing rates, economic standards, and other important factors.

An Annual Action Plan is developed every year to implement strategies to address community needs and goals developed in the Consolidated Plan process. This yearly plan describes the City’s CDBG-related projects and activities for the upcoming Program Year (PY). The Action Plan includes proposed actions to address the objectives and needs identified in the Consolidated Plan. The City reports on accomplishments and progress of Consolidated Plan goals in the Consolidated Annual Performance and Evaluation Report (CAPER) at the end of each year during the five-year Consolidated Plan cycle.

The City will comply with all applicable state and federal laws.

2. Summarize the objectives and outcomes identified in the Plan The analysis of data identified needs for vulnerable populations including the significant number of lowincome households and the need for affordable housing units. The strategy for community improvement using CDBG funds will focus on the following four broad goals:
• Provide homeless prevention and public services benefitting all City residents, specifically lowto moderate-income households; • Support affordable housing opportunities including the expansion and preservation of affordable housing, for low- and moderate-income households; • Provide and improve public facilities and Infrastructure, particularly in low- to moderate-income communities;
• Provide optimal program administration and oversight of the CDBG program to continue planning efforts to address the needs of extremely low, very low, and low-income households and areas.

3. Evaluation of past performance

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 12, Packet Page 54 Annual Action Plan 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
The City has achieved the following accomplishments related to Consolidated and Action Planning.

These accomplishments cover FY 2024-25 as at the time of the drafting of this Action Plan, FY 2025-26 has not concluded. Accomplishments for FY 2025-26 will not be finalized until the completion of the FY at the end of June. Staff continues to work diligently in implementing the 2025-26 Action Plan and will report accomplishments in the upcoming CAPER.
• Homeless Prevention and Public Services: Provided funding for services to build the capacity of residents to empower themselves and help strengthen the community, through the funding of needed public services for the homeless and those at risk of homelessness.

Services funded included Alliance on Aging, Community Human Services Casa De Noche Buena, Community Human Services Safe Place, , ECHO Fair Housing Support Services, Food Bank of Monterey County, Gathering for Women, Interim, Inc., Community Human Services Shuman Heart House, and Meals on Wheels, most of which will continue to be funded under this FY 2026-27 Action Plan. During FY 2024-2025, the City assisted 1,249 primarily lowmoderate income residents through these public service programs. • Housing Preservation and Housing Opportunity Programs: The City funded Acquisition/Rehabilitation/Repair Program under the 2025-26 Action Plan. Given limited funding, the City will prioritize the Acquisition/Rehabilitation/Repair Program during FY 2026-27. During FY 2024-2025, the City successfully administered and completed rehabilitation projects for three (3) low-income households through the Housing Preservation Program grants. The City also purchased three (3) affordable housing units for rehabilitation and resale, and three (3) homes were sold to low-income first-time home buyers during FY 2024-25. The City launched a Rental Assistance Program in April 2024 to address housing and affordability challenges for renters within the City. At the completion of FY 2024-25, the City provided a total of $225,887.60 in assistance to over 70 low-income households.
• Public Facilities and Infrastructure Projects: During FY 2024-25, the City funded Infrastructure, Public Park, and Public Facility Improvements, specifically accessibility and sustainability improvements for park and public facilities located in the CDBG target area or that predominantly serve low-income households. In FY 2025-26, no backup projects were activated.
• Under the FY 2026-27 Action Plan, the City has cited backup public facilities and infrastructure projects to fund if additional funding becomes available.

4. Summary of Citizen Participation Process and consultation process The City has continued to conduct ongoing outreach and consultation under the FY 2025-2029 Consolidated Plan. As part of the preparation of the FY 2025-2029 Consolidated Plan, the City of Monterey conducted extensive public outreach and consultation. These efforts helped to determine the goals and priorities for CDBG funding and program income over the next five years. Outreach efforts conducted during the preparation of the FY 2025-2029 Consolidated Plan included two virtual

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 13, Packet Page 55 Annual Action Plan 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
stakeholder workshops, three community meetings, five pop-up events, and a housing and community development survey.

In addition to recent outreach conducted specifically for the 2025-2029 Consolidated Plan, the City has led the following outreach efforts in FY 2025-26:
• Fair Housing Training: In 2025, the City of Monterey partnered with ECHO Housing to offer free virtual Fair Housing Training for Tenants on April 17, 2025, and for Landlords on April 24, 2025.
• AB-1482 (Tenants Protections Act of 2019) Workshop: On Thursday, September 25, 2025, ECHO Housing and the City Staff hosted an in-person workshop on AB-1482 in September 2025. Assembly Bill 1482, also known as the Tenant Protection Act of 2019, is a California law enacted to protect tenants from rent gouging and unjust evictions. • City Hall in Your Corner: On August 21, 2025, and September 13, 2025, the City staff participated in the City Hall in Your Corner series which brought the City programs and staff to the community. The City’s housing manager spoke to residents and disseminated information regarding the CDBG program and other programs offered by the City's housing office.
• On September 19, 2025, the City of Monterey's Housing office patterned with AMEG to display a modular steel flat pack unit at the City-wide Parking Day event. This provided a cost-effective housing solution for California Communities. The solutions address emergency and transitional housing for unhoused populations ranging from disaster recovery, shelters, to safe, cost-effective permanent housing, such as ADU’s. These solutions support the state’s long-term affordability goals.

On January 16, 2026, the City of Monterey's Rank and Review Committee met to review and score the CDBG public service and capital improvement applications received for Fiscal Year (FY) 2026-2027 and FY 2027-2028. The City's Rank and Review Committee consisted of the City's Planning Manager, Housing Manager, Chair of the Planning Commission, Management Analyst from the City's City Manager's Office, a Police Officer from the City's Multidisciplinary Outreach Team (MDOT), and the Monterey County's Homeless Services Director. The Committee scored all applicants based on the information provided in their application. These scores will allow the City to make CDBG FY 2026-2027 and FY 2027-2028 funding recommendations before the City of Monterey's Planning Commission on April 14, 2026, and the City Council on May 5, 2026.

The City will host public hearings before the Planning Commission (April 14) and City Council (May 5) to allow for residents participation in the process by providing their comments and suggestions on the community’s housing, public facility, and public service needs for the PY 2026 Action Plan. A 30-day public comment period for the draft PY 2026 Action Plan commenced on March 25 and ended on May 5, 2026.

To ensure maximum participation, the draft Action Plan has been made available for public review online at the City’s website, with hard copies available at public counters at the following locations:

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 14, Packet Page 56 Annual Action Plan 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Office of Housing Programs, 570 Pacific St., Monterey, CA 93940 • Office of the Planning Department, 570 Pacific St., Monterey, CA 93940 • Monterey Public Library, Reference Desk, 625 Pacific St., Monterey, CA 93940 • Website: monterey.gov/housingplans and monterey.gov/housingactionplan

5. Summary of public comments
All public comments will be included in the attached public comment documentation.

6. Summary of comments or views not accepted and the reasons for not accepting them All comments will be addressed.

7. Summary
The City of Monterey has been able to successfully manage the ongoing timeliness obligations of the CDBG program and has identified programs and projects that will benefit the community.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 15, Packet Page 57 Annual Action Plan 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator MONTEREY Housing Programs Office
Table 1 – Responsible Agencies
Narrative (optional)
Consolidated Plan Public Contact Information
Anastacia Wyatt, Housing Manager
City of Monterey
570 Pacific Street
Monterey, CA 93940
(831) 646-3995

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 16, Packet Page 58 Annual Action Plan 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
It is the City’s policy, as referenced in the Housing Element of the General Plan, to assist the Housing Authority, nonprofit agencies, and private developers in providing housing opportunities to extremely low-, low-, and very low-income households when such an opportunity is identified. Since 2013, the City has participated in the Coalition of Homeless Service Providers (CHSP) Leadership Council’s oversight of the Lead Me Home Plan.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Coalition of Homeless Service Providers (CHSP) is the Continuum of Care (CoC) for Monterey and San Benito Counties. The City of Monterey Planning staff regularly attend monthly meetings held by the CHSP, which include the CHSP Board meeting, the Housing Pipeline meeting, the Leadership Council meeting, and the meeting of the CHSP Executive Committee.

The Lead Me Home Leadership Council of Monterey and San Benito Counties developed the 2021-2026 Lead Me Home Plan Update to help identify the needs of people in Monterey County experiencing homelessness and strategies to address the needs of this population. The plan included outreach and analysis to identify areas where current efforts to address homelessness were falling short. The analysis showed that an insufficient supply of rapid rehousing and permanent supportive housing in the County was a key challenge in the region, as well as the lack of a coordinated regional strategy to develop affordable housing, particularly housing for those at the lowest income levels.

People experiencing homelessness specifically requested additional supports and services to help them secure housing (e.g., housing focused case management, navigation services, property owner outreach and education), expanded availability of rental assistance, housing retention support (particularly assistance for behavioral and health conditions), and innovative housing solutions such as ADU’s, RV parks, modular housing, and transitional housing.

The City of Monterey’s Housing Programs Office is working to implement many of the key strategies identified in the Lead Me Home Plan Update. The City hosted AMEG at the City’s Parking Day to demonstrate a new model of modular housing being developed that can be implemented in emergency situations, for transitional housing, and as permanent housing and ADU’s. The City is interested in exploring new models of housing.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 17, Packet Page 59 Annual Action Plan 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Not applicable. The City does not receive ESG funds.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 18, Packet Page 60 Annual Action Plan 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
1 Agency/Group/Organization Interim, Inc.

Agency/Group/Organization Type Services - Housing
Services-Persons with Disabilities
Services-homeless
What section of the Plan was addressed by Consultation? Housing Need Assessment Homelessness Strategy
Homeless Needs - Chronically homeless
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
2 Agency/Group/Organization COMMUNITY HUMAN SERVICES
Agency/Group/Organization Type Services - Housing
Services-Children
Services-homeless
What section of the Plan was addressed by Consultation? Housing Need Assessment Homelessness Strategy
Homeless Needs - Chronically homeless
Homelessness Needs - Unaccompanied youth
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
3 Agency/Group/Organization ALLIANCE ON AGING
Agency/Group/Organization Type Services-Elderly Persons

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 19, Packet Page 61 Annual Action Plan 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
4 Agency/Group/Organization MEALS ON WHEELS OF THE MONTEREY PENINSULA Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
Services-Health
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
5 Agency/Group/Organization Eden Council for Hope and Opportunity (ECHO) Agency/Group/Organization Type Services-Education
Service-Fair Housing
What section of the Plan was addressed by Consultation? Housing Need Assessment Homelessness Strategy
Homeless Needs - Families with children
Non-Homeless Special Needs

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 20, Packet Page 62 Annual Action Plan 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
6 Agency/Group/Organization Gathering for Women
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Housing Need Assessment Homelessness Strategy
Homeless Needs - Chronically homeless
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
7 Agency/Group/Organization Victory Mission
Agency/Group/Organization Type Services - Housing
Services-homeless
What section of the Plan was addressed by Consultation? Homeless Strategy How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Submitted an application for public service funding.
8 Agency/Group/Organization Monterey Police Department
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Housing Need Assessment Public Facility Needs

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 21, Packet Page 63 Annual Action Plan 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Action Plan. A police Officer from the City's Multidisciplinary Outreach Team (MDOT) is also part of the Rank and Review Committee.
9 Agency/Group/Organization City of Monterey City Manager’s Office Agency/Group/Organization Type Other government - Local Regional organization
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Facilities Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Action Plan. The City Manager’s Office is also part of the Rank and Review Committee.
10 Agency/Group/Organization Monterey County's Homeless Services Agency/Group/Organization Type Other government - Local Regional organization
What section of the Plan was addressed by Consultation? Housing Need Assessment Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Action Plan. Monterey County's Homeless Services Director is also part of the Rank and Review Committee.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 22, Packet Page 64 Annual Action Plan 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
11 Agency/Group/Organization City of Monterey Community Development Department Agency/Group/Organization Type Other government - Local Grantee Department
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Facility Needs
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Services - Housing
Services-Children
Services-homeless
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Action Plan.

Table 2 – Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City worked diligently to implement an inclusive outreach program to include all types of agencies that serve low and moderate income residents and those with special needs.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 23, Packet Page 65 Annual Action Plan 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Coalition of Homeless
Service Providers
The information from the 2024 Monterey County Homeless Point-in-Time Count and Survey was used for the development of the homeless strategic plan in the Consolidated Plan.

City of Monterey 2023-
2031 Housing Element
City of Monterey The General Plan Housing Element is the City’s policy guide to meeting the community’s housing needs. The Strategic Plan aligns with the goals and policies for implementation of the City’s Housing Element.
2022 Monterey County
CHNA
County of Monterey
Health Department
The Community Health Needs Assessment (CHNA) reports on a number of factors related to alcohol and substance abuse. This information was used to provide data in the nonhomeless special needs section of the Consolidated Plan.

Lead Me Home Update Coalition of Homeless
Service Providers
Objectives and priorities for addressing homelessness in the Lead Me Home plan are, and will continue to be, aligned with the City's Consolidated Plan to deliver services to homeless families and individuals.

Table 3 – Other local / regional / federal planning efforts Narrative (optional)

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 24, Packet Page 66 Annual Action Plan 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City hosted two public hearings and a City Council hearing to allow for citizens to participate in the process by providing their comments and suggestions on the community’s housing, public facility, and public service needs for the PY 2026 Action Plan. A 30-day public comment period for the draft PY 2026 Action Plan commenced on March 25, 2026 and ended on May 5, 2026.

To ensure maximum participation, the draft Action Plan was made available for public review online at the City’s website, with hard copies available at public counters at the following locations:
• Office of Housing Programs, 570 Pacific St., Monterey, CA 93940 • Office of the Planning Department, 570 Pacific St., Monterey, CA 93940 • Monterey Public Library, Reference Desk, 625 Pacific St., Monterey, CA 93940 • Website: monterey.gov/housingplans and monterey.gov/housingactionplan Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public Hearing Nontargeted/broad
community
Planning Commission
meeting held April
14, 2026.
2 Public Hearing Nontargeted/broad
community
Monterey City
Council meeting held
May 5, 2026.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 25, Packet Page 67 Annual Action Plan 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
3 Public Meeting Nontargeted/broad
community
Regional and local
service providers
and nonprofits, as
well as city and
county depts
January 16, 2026
4 Newspaper Ad Nontargeted/broad
community
Newspaper notices
informing the public
of the City's
scheduled public
meetings and
hearings on the
Action Plan and
notifying the public
of the opening public
comment period for
the draft Action Plan.

The public comment
period opened on
March 25, 2026, and
closed May 5, 2026.
5 Internet Outreach Nontargeted/broad
community
Copies of the Action
Plan were posted on
the City's website for
the public comment
period.

Table 4 – Citizen Participation Outreach

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 26, Packet Page 68 Annual Action Plan 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City’s CDBG entitlement allocation of funding requires addressing the ratio of program income to entitlement that the City receives each year. While entitlements have been stable at about $250,000 a year, the amount of annual program income received is unpredictable and has ranged from less than $500,000 to more than $1,000,000.. The City receives Program Income from loan repayments from the Hotel Pacific, which benefited from the Urban Renewal program, an economic development program that ended and program income from this program is used for CDBG. The City also receives program income from the resale of affordable units from the City’s Inclusionary Housing program. The City has the first right to purchase the units under existing deed restriction agreements and is able to resell these units to low income buyers. The City cannot predict when units become available as it is up to individual owners to sell and sometimes people pass away and the unit becomes available for the City to purchase, rehabilitate, and sell. To meet CDBG expenditure timeliness requirements and comply with HUD’s program funding reporting and public outreach requirements, it is important to make the best estimate regarding the total funding expected to roll over from the prior year and the amount of program income to be received. In 2025, $493,697 was generated through program income from the Hotel Pacific and English Avenue rental income, in addition to $729,609 of program income was generated through the sales of low income inclusionary units. If additional funding is identified during FY 2026-27, the City has identified backup projects outlined in Section AP-35, below.

The City uses Program Income funds for the City’s inclusionary housing acquisition, rehabilitation, and resale program that makes housing ownership available to qualifying low-income households. It may also be used for housing rehabilitation loans that address health and safety repairs for low-income homeowners, including seniors and persons with disability. Program Income is also used for City’s Public Facilities and Infrastructure projects. Because the City receives so much additional Program Income, the City is able to provide more funding to Public Service programs.

The table below includes the estimated CDBG revenues for the coming year. Program Income funds come primarily from revenue from the Urban Renewal program, a program of land redevelopment using competitive CDBG grants in place prior to the inception of the CDBG entitlement program. Program income is also generated from the sale of inclusionary units acquired and rehabilitated with CDBG funds and sold

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 27, Packet Page 69 Annual Action Plan 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
to low income households. These funds are used to help support affordable housing in the City and are reported or regulated like CDBG funds and are therefore included in the CDBG budget. They are included in this table for reference only.

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
$242,234.00 $1,223,306.00 0.00 $1,465,540.00 $750,000 Program Income includes funds from revenue from
urban renewal projects
using competitive CDBG
grants prior to the
entitlement CDBG program
inception the City receives
each year. However, the
expected resources for
remainder of Con Plan
does not include the
program income
anticipated over the
remaining Con Plan
planning period.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City’s current housing resources do not have matching fund requirements. However, the City will be using CDBG and federal funds to leverage other resources, including revenue from the Urban Renewal program, a program of land redevelopment using competitive CDBG grants in place prior to the inception of the CDBG entitlement program. Program income is also generated from the sale of inclusionary housing units

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 28, Packet Page 70 Annual Action Plan 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
acquired and rehabilitated with CDBG funds and sold to low income households. These resources are dedicated to affordable housing activities, while the City’s CDBG allocation provides support through infrastructure, public facility, and public services. The City is using $250,000 in General Funds to support a rental assistance program to assist lowincome households. The City also supports a Rental Inventory program that has identified fees in excess to rent, such as Ratio Utility Billing System (RUBS) that are causing affordability issues for low income renters through the City’s Inclusionary rental programs and are impacting low income renters holding housing vouchers. The City has generated $493,697 from program income in FY 2025-26.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 29, Packet Page 71 Annual Action Plan 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan As outlined in the City’s 2023-2031 Housing Element, two City-owned downtown parking facilities (Lot 14 parking lot on Bonifacio Pl & Adams St and the Calle Principal Garage on Calle Principal near Bonifacio Pl) have been identified as candidates for redevelopment with workforce housing to increase opportunities for hospitality and service workers, teachers, public servants, and others who earn less than 80 percent of the AMI. Both sites are located in the Alvarado District where the Downtown Specific Plan permits residential development at up to 100 units per acre.

The 2023-2031 Housing Element commits to amend the Downtown Specific Plan to increase permitted building heights to five stories in the Alvarado District; offer municipal shared parking agreements to projects that propose a minimum number of new housing units in proximity to a City-owned parking lot or structure; and incorporate additional incentives for consolidation of adjacent, small lots; and amend the Lighthouse Avenue Specific Plan to permit 100 percent residential projects fronting Lighthouse Avenue; encourage municipal shared parking agreements to projects that propose a minimum number of new housing units in proximity to a City-owned parking lot or structure; and incorporate additional incentives for consolidation of adjacent, small lots.

Additionally, the Fort Ord/Ryan Ranch Specific Plan development area is City-owned. The 2023-2031 Housing Element includes a commitment to prepare a specific plan to establish a clear vision for the area and to guide future development and conservation, identify infrastructure needs and financing mechanisms, and establish measures to ensure sustainable development and adequate resource protection. The overarching objective should be to foster the creation of a mixed-use village on a portion of the site to provide housing, jobs, schools, shops, services and recreation for future residents while also preserving carefully selected areas of natural open space and habitat. Because the City is the property owner, incentives will also be incorporated to ensure a proportion of new housing units are affordable.

Discussion
See above.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 30, Packet Page 72 Annual Action Plan 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort Order Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Homeless
Prevention and
Public Services
2025 2029 Homeless
NonHomeless
Special
Needs
Citywide Homelessness
Prevention
and Public
Services
CDBG: $215,400.00 Public service activities other
than Low/Moderate Income
Housing Benefit: 1645
Persons Assisted
2 Affordable
Housing
Opportunities
2025 2029 Affordable
Housing
Citywide Affordable
Housing
Opportunities
CDBG: $940,000.00 Household Housing Unit
Homeowner Housing
Acquired/Rehabilitated: 3
Household Housing Unit
3 Planning and
Administration
2025 2029 Affordable
Housing
Public
Housing
Homeless
NonHomeless
Special
Needs
Non-Housing
Community
Development
Citywide4 Planning and
Administration
CDBG: $118,000.00
Table 6 – Goals Summary

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 31, Packet Page 73 Annual Action Plan 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
Goal Descriptions
# Goal Name Goal Description
1 Homeless Prevention and Public
Services
Continue to build the capacity of residents to empower themselves and help strengthen the community, through the funding of needed public services for the homeless and those at risk of homelessness. Services funded may include, but are not limited to, outreach, homeless facilities/shelters, counseling, and permanent and supportive housing.

Support agencies that provide needed community services to low- and moderate-income persons. Services may include, but are not limited to, fair housing services, counseling for atrisk youth, after school programs, emergency preparedness, transportation, food services for residents with special needs, and affordable senior legal services. Additionally, support services at existing community facilities, including outdoor parks programs, library programs, and senior programs.
2 Affordable Housing Opportunities Expand and preserve the supply of affordable housing to create housing opportunities for low- and moderate-income households. Depending on feasibility such as water availability, this priority may include:
• Public offsite improvements/remediation to support affordable housing development;
• Low- to moderate-income rental housing rehabilitation prioritizing non-profit owned 100 percent affordable housing developments;
• Preservation of low- to moderate-income deed restricted ownership units. • Preservation of low- to moderate-income deed restricted rental units. • Downpayment Assistance for homeowners

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 32, Packet Page 74 Annual Action Plan 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
3 Public Facilities and Infrastructure
(backup projects)
Provide needed public facilities and infrastructure improvements in low- to moderateincome neighborhoods. Improvements may include, but are not limited to safe routes to school, water/sewer, park improvements sidewalk and curb, accessibility, bike lanes, lighting, parks, improvements in support of new housing, construction and/or rehabilitation of homeless facilities/shelters, transitional housing and permanent and supportive housing and improvements to buildings that may include energy efficiency improvements. 4 Planning and Administration To comply with HUD regulations for CDBG program and to deliver programs and services.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 33, Packet Page 75 Annual Action Plan 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-35 Projects – 91.220(d)
Introduction
The Needs Assessment identified the greatest needs in the area of affordable housing, both rental and ownership, homeless services, and needs for rental assistance to prevent homelessness. Housing affordability and the availability of housing units suitable for lower and moderate-income households continue to be a top priority in the City. The homeless population has continued to grow in the City.

Additionally, special needs populations such as seniors and persons with disabilities are more likely to be lower income and require additional housing assistance and/or public services. The City will continue to collaborate with the public service providers that have been traditionally funded by CDBG. The City has also dedicated its State Permanent Local Housing Allocation (PLHA) funds to local homeless shelters for case management and rapid rehousing activities. The City will look for opportunities to work with other agencies that are able to meet CDBG program requirements that provide services needed in the community.

Contingency Plan
The City of Monterey is unique in that its funding available annually can fluctuate greatly due to program income. The amount of program income that may become available during a program year is not within the City's control. As such, the City establishes the following contingency plan in order to respond to the availability of resources flexibly and in a timely manner. The Annual Action Plan can include a list of backup projects that may be activated if funding becomes available. Once approved by the Council to be included in the Annual Action Plan, activating these backup projects during the program year would not constitute a substantial amendment to the Action Plan.

Backup Projects:

If additional funding becomes available during the program year, the City will activate one or more of the following projects in FY 2026-2027 based on readiness. Assuming sufficient CDBG Program Income funding is received, the City will also leverage expected PLHA funds to support a backup projects. • Minor Housing Rehabilitation and Repair Program ($150,000.00) • City Housing Rehab Activity Delivery ($65,000.00)
• Major Housing Rehabilitation Loan Program ($120,000.00) • MOW Community Kitchen ($250,000.00)
• Gathering For Women - ADA Improvements ($200,000.00)
• Homeless Shelter Improvements ($100,000.00)
• City Infrastructure Project (Tier II) ($150,000.00)]
• MidPen Project ($1,500,000.00)

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 34, Packet Page 76 Annual Action Plan 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
# Project Name
1 Homeless Prevention and Public Services
2 Housing Preservation and Housing
Opportunity Programs
3 Planning and Administration
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The Priority Needs identified in the Con Plan include:
• Homeless Prevention and Public Services
• Affordable Housing Opportunities
• Public Facilities and Infrastructure
• Planning and Administration
The proposed projects and backup projects in this Action Plan address all of the Priority Needs and all of the identified associated Goals.

The greatest obstacle to addressing underserved needs continues to be a lack of funding. Not only are funding sources being reduced in a number of areas, but the reductions in non-HUD resources serve to only increase the needs of residents. Monterey also faces a unique challenge to building new affordable housing due to a lack of water resources.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 35, Packet Page 77 Annual Action Plan 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
1 Project Name Homeless Prevention and Public Services
Target Area Citywide
Goals Supported Homeless Prevention and Public Services Needs Addressed Homelessness Prevention and Public Services Funding CDBG: $215,400.00
Description Continue to build the capacity of residents to empower themselves and help strengthen the community, through the funding of needed public services for the homeless and those at risk of homelessness.

Services funded may include, but are not limited to, outreach, homeless facilities/shelters, counseling, and permanent and supportive housing. and Support agencies that provide needed community services to low- and moderate-income persons. Services may include, but are not limited to, fair housing services, counseling for at-risk youth, after school programs, emergency preparedness, transportation, food services for residents with special needs, affordable legal services, and health care. Additionally, support services at existing community facilities, including outdoor parks programs, library programs, and senior programs.

Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
It is estimated that 1,645 people will be served through City public service activities and the types of families to be service include: seniors, homeless and very-low income, ethnic and racial minorities, female headed households, seniors, disabled, abused and neglected children, special needs, chronically ill, single parents, at-risk of homelessness, females, female-headed households, disabled, and lowmoderate income individuals.

Location Description Programs will be located citywide.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 36, Packet Page 78 Annual Action Plan 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities Alliance on Aging: tax preparation assistance and ombudsman services and referrals to assist 390 lowincome seniors. HUD Matrix Code: 05A Senior Services. National Objective: LMC. Funding is estimated to be $25,000.

Community Human Services Casa De Noche Buena: emergency shelter to serve an estimated 100 homeless persons and families with children. HUD Matrix Code: 03T Operating Costs of Homeless/AIDS Patients Programs. National Objective: LMC with “homeless” presumed benefit. Funding is estimated to be $20,000.

Community Human Services Safe Place: homeless outreach and support to serve an estimated 120 homeless persons and at-risk youth. HUD Matrix Code: 03T Operating Costs of Homeless/AIDS Patients Programs. National Objective: LMC with “homeless” presumed benefit. Funding is estimated to be $20,000.

Victory Mission: provides an overnight shelter to persons experiencing homelessness with a goal of 10 persons and persons at-risk of becoming homeless. National Objective: LMC with “homeless” presumed benefit. Funding is estimated to be $20,000.

ECHO Fair Housing Support Services: fair housing support services to low- income households in the city for an estimated 75 persons. HUD Matrix Code: 05J Fair Housing Activities (subject to Public Services cap). The National Objective will be LMC. Funding is estimated to be $15,400.

Gathering for Women: case management and day-center services to homeless persons to assist an estimated 200 persons. HUD Matrix Code: 03T Operating Costs of Homeless/AIDS Programs. National Objective: LMC with “homeless” presumed benefit. Funding is estimated to be $20,000.

Interim, Inc.: homeless services, emergency and temporary housing outreach, and case management for an estimated 20 persons with mental illnesses. HUD Matrix Code: 03T Operating Costs of Homeless/AIDS Patients Programs. National Objective: LMC. Funding is estimated to be $25,000.

Community Human Services Shuman Heart House: Homeless Center to provide services to families who may be experiencing homelessness for an estimated amount of 90 persons. HUD Matrix Code: 03T Operating Costs of Homeless/AIDS Patients Programs. National Objective: LMC. Funding is estimated to be $20,000.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 37, Packet Page 79 Annual Action Plan 27
OMB Control No: 2506-0117 (exp. 09/30/2021)
Meals on Wheels: Provides home delivered meals to seniors for an estimated amount of 200 persons.

HUD Matrix Code: 05A Senior Services. National Objective: LMC. Funding is estimated to be $50,000.00. 2 Project Name Housing Preservation and Housing Opportunity Programs Target Area Citywide
Goals Supported Affordable Housing Opportunities
Needs Addressed Affordable Housing Opportunities
Funding CDBG: $940,000.00
Description Emergency housing repairs, minor rehab grant program, minor home repairs, major home rehabilitation, repairs of city owned inclusionary housing units, purchase and resale program, acquisition, downpayment assistance, activity delivery, and administration of these activities.

Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
It is estimated that up to three (3) single- family ownership units purchased and rehabilitated for resale to low-income first-time homebuyers.

Location Description Citywide
Planned Activities The national objective for all the Housing Rehabilitation Programs will be LMH. Acquisition, rehabilitation, and repair of between 1 and 3 single- family ownership units purchased for resale to lowincome first-time homebuyers and Activity delivery (estimated $1,000,000) HUD Matrix Code 14G Rehab: Acquisition, 14H Rehab: Administration
3 Project Name Planning and Administration
Target Area Citywide
Goals Supported Planning and Administration
Needs Addressed Planning and Administration
Funding CDBG: $118,000.00

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 38, Packet Page 80 Annual Action Plan 28
OMB Control No: 2506-0117 (exp. 09/30/2021)
Description Provide general staff administration of CDBG programs and activities, including Integrated Disbursement and Information System (IDIS) administration, program setup, reporting, planning, and subrecipient training and monitoring. A National Objective designation does not apply to activities completed under this project.

Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
Administrative activities will not directly benefit families.

Location Description Administrative activities will be undertaken at 570 Pacific Street.

Planned Activities General Planning and CDBG Administrative activities. HUD Matrix Code: 21A General Administration.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 39, Packet Page 81 Annual Action Plan 29
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed CDBG funding will largely be used city-wide for income eligible persons and households. If additional funding becomes available due to unexpected loan payoffs, the City expects to use CDBG funds in the low- to moderate-income areas or for ADA improvements.

Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically Traditionally, the City has committed to spending approximately 70 percent of CDBG funds for housing and infrastructure projects in low- and moderate-income (LMI) census tract block groups. This prioritization has included a portion of public service grant activity along with public infrastructure funding, targeted to LMI census tract block groups. In addition, the City does not have any racially or ethnically concentrated areas of poverty (R/ECAPS) and only has a handful of census tract block groups that qualify as low- to moderate-income (in accordance with HUD’s income data). As a result of the diversified distribution of the low-moderate population across the City, it is necessary to split the use of CDBG funds between low-mod neighborhoods and low-mod needs, citywide.

Discussion
The decision to distribute funding citywide is based on the limited number of low-income census tract block groups that will qualify for HUD’s Low-Mod Income Area benefit. Only a handful of census block groups are classified as low income based on the percentage of households with income at or below 80 percent of Area Median Income. For this reason, there is limited ability for the City to target CDBG funds to specific areas and receive Low-Mod Area (LMA) benefit. Additionally, the City’s most significant unmet need for affordable housing is generally citywide in geographic distribution. In recognition of this housing need, the City Council has directed that affordable housing and homeless services should be placed above the priority for public infrastructure improvements and home repair programs for homeowners.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 40, Packet Page 82 Annual Action Plan 30
OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City of Monterey continues to be a desirable place to live, it is difficult to construct new residential development, therefore creating a strong demand and an expensive housing market. The average home cost is between $1.1 and $1.2 million dollars based on data from Redfin and Zillow, and these prices continue to rise each year. A large portion of Monterey’s workforce cannot afford to live in the City due to high housing costs. The City of Monterey also faces other hurdles in the development of affordable housing, as it is almost entirely built out and lacks the water resources to support development of new housing. In Monterey, Fair Market Rents (FMRs) established by HUD tend to be exceeded by the actual cost of rental housing resulting in Section 8 Voucher holders having difficulty locating housing in the City. However, the City continues to utilize the General Fund to provide rental assistance.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 3
Special-Needs 0
Total 3
Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 3
Total 3
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
Steeply rising materials and labor costs have reduced the number of units which can be rehabilitated despite significant funding. The City will provide assistance to eligible low-income first-time homebuyers through an Acquisition/Rehabilitation/Resale project. In addition, the City has also been successful in offering affordable ownership opportunities through the City’s Inclusionary Housing Program that deedrestricts, units at a number of sites throughout the community.

In Program Year 2026, the City will continue its Acquisition/Rehabilitation/Resale project while continually searching for new ways to meet affordability goals.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 41, Packet Page 83 Annual Action Plan 31
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
Introduction
The City of Monterey’s allocation is a total of 330 vouchers (6.5% of the total vouchers available in the County), including 72 Veterans Affairs Supportive Housing Vouchers, 9 Emergency Housing Vouchers, 2 Family Unification Vouchers, 5 Mainstream Vouchers, 209 other tenant-based vouchers, and 33 Project Based Vouchers. The City will continue to coordinate with HACM as the regional housing authority and public housing provider whenever possible. Estimates outlined in this narrative are based on the most recent 2026 data provided by HACM.

HACM has converted all its public housing units to Project-Based Rental Assistance. Currently there are 177 assisted housing units in the City of Monterey. These units are in ten separate projects:
• Portola Vista at 20 Del Monte Avenue – 64 units
• Montecito Apartments at 242 Montecito Street – 8 units • Watson Apartments at 531 Watson Street – 5 units
The City also maintained Casanova Plaza (800 Casanova Ave), which included 17 affordable units. In March 2026, a fire at Casanova Plaza occurred, displacing existing residents. The future of Casanova Plaza is uncertain. The building is currently unoccupied, and the residents have been relocated.

Currently, it is uncertain whether the building will be repaired, demolished or if new construction will take place at this site.

Of the total inventory of HACM assisted housing in the City, 64 of the units are for seniors and/or disabled persons, 30 units are for families.
• MIDPEN: Van Buren Senior Housing at 669 Van Buren Street – 18 units • CHISPA: El Estero Senior Housing at 151 Park Avenue – 26 units • INTERIM, INC.: Casa de Los Robles at 504 W. Franklin Street – 6 units • INTERIM, INC.: Dela Vina Apartments at 345 Dela Vina Avenue – 14 units • INTERIM, INC.: Casa de Perla at 608 Pearl St – 8 units • INTERIM, INC.: Pearl St Apartments at 604 and 606 Pearl St – 11 units Of the total inventory of assisted housing in the City, 108 of the units are for seniors and/or disabled persons, 39 units are for special needs, and 30 units are for families.

Actions planned during the next year to address the needs to public housing The HACM is not designed as troubled and in recent years has transitioned to a Rental Assistance Demonstration (RAD) project. Since the implementation of RAD, HACM no longer owns public housing nor is information supplied on the condition of units that are formerly public housing. However, RAD gives owners of RAD converted units (formerly public housing units) three HUD "legacy" programs (Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation), offering them the

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 42, Packet Page 84 Annual Action Plan 32
OMB Control No: 2506-0117 (exp. 09/30/2021)
opportunity to enter into long-term contracts that facilitate the financing of improvements to housing units.

The City will continue to remain informed about the needs of public housing and provide assistance if necessary and feasible.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
HACM has developed a plan for self-sufficiency of the households it assists that is part of the Family Selfsufficiency program and continually recruits households. HACM also coordinates a Welfare to Work program as part of the Housing Choice Voucher program. HACM also has an HCV Homeownership program that attracts participants. HACM encourages employment through job posting and working with contractors to further the employment of its participants.

As discussed above, HACM is not required to increase the number of accessible units by a Section 504 Voluntary Compliance Agreement.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.

Discussion
See above.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 43, Packet Page 85 Annual Action Plan 33
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The Coalition of Homeless Service Providers (CHSP) is the Continuum of Care (CoC) for the Counties of Monterey and San Benito, which includes the City. The City continues to work closely and collaborate with the CoC and the CHSP to reach out to homeless sheltered and unsheltered persons to assess their individual needs and provide appropriate services in a timely and respectful manner.

Every two years, in the month of January, communities across the United States conduct counts of the local population experiencing homelessness. The Point-in-Time (PIT) Homeless Count collects information on individuals and families residing in temporary shelters and places not meant for human habitation. Information gathered through the PIT Homeless County conducted in the County of Monterey is used by the CHSP to understand the issues associated with homelessness, including causes of homelessness, service needs of the homeless, the region’s unmet housing needs, and trends over time of homelessness in the region. Information from the 2026 PIT Homeless Count is not yet available.

City housing staff participated in the 2026 PIT count in January with the City’s MDOT team. The 2024 Monterey County PIT Homeless Count found the County-wide homeless population was 2,436, including 221 persons identified within the City of Monterey.

As required by the U.S. Department of Housing and Urban Development (HUD), jurisdictions receiving federal funding to provide homeless services must report the findings of their local PIT Homeless Count to HUD. This information ultimately helps the federal government to better understand the nature and extent of homelessness nationwide.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City continues to work closely and collaborate with the CoC and the CHSP to reach out to homeless sheltered and unsheltered persons to assess their individual needs. In PY 2026, the City proposes to use CDBG funds for five programs which outreach to those experiencing homelessness, assess their individual needs, and provide appropriate assistance. Those agencies and programs include:
• Community Human Services Casa De Noche Buena: This emergency shelter will serve an estimated 100 single persons and families with children. Proposed PY 2026 CDBG funding is $20,000.
• Community Human Services Safe Place: Homeless outreach and support services to meet the individual needs of up to 120 persons experiencing homelessness and at-risk youth.

Proposed PY 2026 CDBG funding is $20,000.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 44, Packet Page 86 Annual Action Plan 34
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Gathering for Women: This agency provides individualized case management and daycenter services to homeless persons to assist an estimated 200 persons. Proposed PY 2026 CDBG funding is $20,000.
• Interim, Inc.: This agency provides individual assessments, homeless services, emergency and temporary housing outreach, and case management for an estimated 20 persons with mental illnesses. Proposed PY 2026 CDBG funding is $25,000. • Community Human Services Shuman Heart House: This agency provides services to families who may be experiencing homelessness to assist an estimated 90 persons. Proposed PY 2026 CDBG funding is $20,000.

The Monterey Police Department (MPD) uses a collaborative approach to addressing community issues through their Multi-Disciplinary Outreach Team (MDOT) which includes social workers from Adult Protective Services (APS), Montage Health, Monterey County Behavioral Health, and Interim Inc. patrolling with MPD officers.

The MDOT patrols the downtown and waterfront areas in a non-threatening manner, using bicycles and beach vehicles instead of patrol cars. The MDOT makes numerous daily contacts with the unhoused population in the City connecting them with services that address their individual needs. Such in-person interactions allow officers to better supply assistance and referrals to the appropriate agencies. MDOT assists individuals through services including identification, hotel vouchers, gasoline cards, food security, and scheduling doctor appointments as well as connecting individuals to resources for temporary or permanent housing.

Based on the success of the MDOT collaborative model, in September 7, 2023, MPD opened an outreach and navigation center to support the multi-disciplinary outreach team as a collaborative works space to address the unhoused population. This outreach creates a closer bond between the community, including unsheltered homeless or persons in need and officers and allows for individual needs to be assessed.

Addressing the emergency shelter and transitional housing needs of homeless persons In PY 2026, the City will fund two local overnight homeless, navigation centers: Casa de Noche Buena, and the Shuman Heart House, both shelters serve primarily single homeless persons and families. The City also funds Gathering for Women, a daytime navigation center serving primarily single homeless persons and families. Gathering for Women provides case management, a resource closet, and meals.

The City will be funding Victory Mission to provide street outreach. Victory Mission also operates an overnight shelter and transitional housing in the City of Salinas.

The City has also implemented other strategies addressing emergency housing for the unhoused, including developing:
• Safe Parking Ordinance (https://monterey.municipal.codes/Code/38-126)

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 45, Packet Page 87 Annual Action Plan 35
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Emergency Shelter Overlay District
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The Continuum of Care (CoC) coordinates numerous activities to train the service provider network and directly link homeless persons to affordable housing units. These activities are undertaken to prevent formerly homeless persons from becoming homeless again and include programs and actions such as rapid rehousing training, weekly e-newsletters listing open low-income housing waitlists, prioritizing permanent supportive housing projects in funding rankings, and dedicating rapid rehousing funds to vetted seasoned providers.

In PY 2026, the City will use CDBG to fund Community Human Services for four separate programs: Casa de Buena Noche, Safe Place, Victory Mission, and Shuman HeartHouse. All three programs assist homeless individuals and families by providing services which stabilize them, shorten the time they are homeless, and prevent the homeless from becoming homeless again. Casa de Buena Noche focuses efforts on providing a low-barrier emergency shelter for single homeless persons and families and Safe Place focuses efforts on homeless youth with special attention on street outreach, family re-unification, and case management. Shuman HeartHouse provides services including shelter, meals, and supportive services designed to help individuals and families avoid becoming homeless again and to lead to permanent housing.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City continues collaboration with the regional Continuum of Care (CoC), the Coalition of Homeless Service Providers (CHSP). The CHSP is currently working to establish diversion programs and best practices among their provider network and are working on streamlining the CARS process to capture information on those who are at-risk in order to provide services which will help them avoid homelessness.

In addition, to work with the CHSP, in PY 2026, the City will provide public service grant funding to nine organizations with programs that address the City’s highest priorities. The following organizations

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 46, Packet Page 88 Annual Action Plan 36
OMB Control No: 2506-0117 (exp. 09/30/2021)
provide direct services to low- and moderate-income individuals which help them avoid homelessness as noted below:
• Meals on Wheels provides home delivered meals to the elderly and disabled so that they can maintain independence and avoid becoming homeless.
• Eden Council for Hope and Opportunity (ECHO) provides fair housing services to low- and moderate-income residents, helping them navigate fair housing issues and reducing the likelihood that they will become homeless.

Discussion
See above.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 47, Packet Page 89 Annual Action Plan 37
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

Potential barriers to housing opportunities can be related to public policies, such tax policies, zoning ordinances, fees and charges, growth limits, and other policies that affect the return on residential investment. Amending local zoning and land use laws or allocating funding for affordable housing through grants are mechanisms that can support the development of affordable units. Changes in policies can also help a community to overcome disparities in access to opportunity by the implementation of plans that will revitalize areas with existing affordable housing by improving services, schools and other community assets, sidewalks, and other infrastructure.

Policies to guide future development and achieve a vision for the community are contained in the City’s General Plan. Two of the seven State mandated General Plan elements—Housing and Land Use Elements—have direct impact on the local housing market in terms of the amount and range of housing choice. The Zoning Ordinance, which implements the Land Use Element, is an important document that influences the amount and type of housing available in a community—the availability of housing choice.

A Housing Element that complies with State law is presumed to have adequately addressed its policy constraints. According to HCD, as of October 4, 2024, the City of Monterey’s Housing Element was found to comply.

In addition to the constraints facing market rate housing development, such as land prices and costs of construction, affordable housing projects face other constraints. While there is a range of sites with the potential to accommodate affordable housing projects, as well as projects that focus on special needs populations, financial assistance for the development of affordable housing is limited and highly competitive.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
To address the decline in sources of housing funds, the City will continue to advocate for and pursue federal, state, local and private funding sources for affordable housing. In addition, the City will implement the following actions identified in its 2023-2031 Housing Element to remove barriers to affordable housing:
• Program 1-B Multi-Family Residential Overlay Amendments – Increases the allowable density in the MFR Overlay District and permits residential uses with 20 percent or more affordable units by right.
• Program 1-C Focused Specific Plan Updates – Allows for increased flexibility (density, height,

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 48, Packet Page 90 Annual Action Plan 38
OMB Control No: 2506-0117 (exp. 09/30/2021)
parking, etc.) in specific plan areas to encourage affordable housing development. • Program 1-D Permit Streamlining Pilot Project
• Program 1-E Education Workforce Housing Overlay – Adopt an Education Workforce Housing Overlay to support the development of workforce housing. • Program 1-F Congregational Overlay – Adopt a Congregational Overlay to support the development of housing on properties owned by religious institutions. • Program 1-J SB 9 Housing Ordinance – Allows for the division of lots in single-family residential districts to facilitate the development of smaller scale housing that may be more affordable in existing neighborhoods.
• Program 2-A By-Right Zoning Sites from Prior Inventories • Program 2-B Permit Thresholds for Multi-Family Projects – Comply with State law requiring that decisions on residential projects be based on objective design standards. • Program 2-C ARC Review – Comply with State law requiring that decisions on residential projects be based on objective design standards.
• Program 2-D Revise Adopted Plans and Zoning with Objective Standards – Comply with State law requiring that decisions on residential projects be based on objective design standards. • Program 2-E Revise Parking Requirements – Comply with State law requiring reduced parking within a half mile of transit and undertake study as a basis for additional revisions to parking requirements.
• Program 2-F Update Density Bonus Ordinance
• Program 2-G Prepare Local Coastal Program – Comply with State law requiring that decisions on residential projects be based on objective design standards. • Program 2-I Inclusionary Zoning – Amend the Zoning Code to codify the inclusionary zoning requirement.
• Program 2-J Water Distribution Policy – Develop a methodology for allocating new water supply in a manner that prioritizes affordable housing projects. • Program 2-K Addressing Water Supply Constraints – Work with other jurisdictions and agencies to optimize the use of available supply in the short-term and to augment the existing water supply in the mid- to long-term.
• Program 2-M Permit Processing Procedures – Reduce permit processing times.

Discussion:

See above.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 49, Packet Page 91 Annual Action Plan 39
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:

The City addresses these other actions in a variety of ways, as noted in individual sections below.

Actions planned to address obstacles to meeting underserved needs Some of the greatest underserved needs are homeless services, services for seniors, and affordable housing. The greatest obstacle to addressing those underserved needs is funding. The City uses CDBG funds, PLHA funds, HOME funds, and general funds to meet these underserved needs. The City continues to seek additional funding sources.

To address the underserved needs of the homeless, the City will use PY 2026 CDBG funds to fund three programs operated by Community Human Service (CHS) as shown below. • Community Human Services Casa De Noche Buena: This emergency shelter will serve an estimated 100 single homeless persons and families with children. Proposed PY 2026 CDBG funding is $20,000.
• Community Human Services Safe Place: Homeless outreach and support services to meet the individual needs of up to 120 persons experiencing homelessness and at-risk youth.

Proposed PY 2026 CDBG funding is $20,000.
• Community Human Services Shuman HeartHouse: This agency provides services to families who may be experiencing homelessness and will assist up to 90 single homeless persons and families with children. Proposed PY 2026 CDBG funding is $20,000.

Three other programs serving the homeless will also be funding with CDBG in PY 2026:
• Gathering for Women: This agency provides individualized case management and daycenter services to homeless persons to assist an estimated 200 persons. Proposed PY 2026 CDBG funding is $20,000.
• Interim, Inc.: This agency provides individual assessments, homeless services, emergency and temporary housing outreach, and case management for an estimated 20 persons with mental illnesses. Proposed PY 2026 CDBG funding is $25,000. • Victory Mission: The City will fund Victory Mission to provide outreach and case management with a goal of serving 8 homeless persons and persons at-risk of becoming homeless. Proposed PY 2026 CDBG funding is $20,000.

The City has a long history of developing affordable housing and continues to fund projects which address the affordable housing using a variety of funding sources. The most recent affordable housing project completed in 2025, included 13 affordable inclusionary housing units at 2300 Garden Road, a 91

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 50, Packet Page 92 Annual Action Plan 40
OMB Control No: 2506-0117 (exp. 09/30/2021)
unit, multi-family development with 20% affordable units located at 2000 and 2006 Garden Road. The City is working with Mid-Pen Housing, on the construction of 36 affordable units on land donated by the City behind City Hall.

Actions planned to foster and maintain affordable housing The City currently has a portfolio of 531 units which includes 100 inclusionary ownership units and 431 deed restricted rental units with an additional 42 in the development or construction phase. As previously mentioned, the City will continue to support the Van Buren Senior Housing project (developed on City-owned land), the Monterey Hotel Apartments (a project solely funded with former Redevelopment Agency housing funds), and Estrella Apartment (funded by HOME grant), all of which provide housing affordable to low- to moderate-income households. The City continues to manage these projects and none of them are in danger of converting to market-rate.

In PY 2026, the City will fund an Acquisition, Rehabilitation, and Repair program which will make affordable housing available to low- and moderate-income first-time homebuyers. One to three homebuyers are expected to benefit. If additional funding is made available, the City may fund the Minor Housing Rehabilitation Program and/or City Major Housing Rehab Activity Delivery Program.

In PY 2024, the City Council approved a Rental Assistance program in the amount of $250,000 funded through general funds to assist residents in need who earn up to 80% area median income (AMI).

Actions planned to reduce lead-based paint hazards
The City actively promotes its Major and Minor Residential Rehabilitation programs to low-income households to make minor repairs to improve overall housing quality. Each home pre-1978 receiving a rehabilitation grant is tested for lead-based paint. If lead-based paint is discovered, the City uses the allocated CDBG funds to abate or contain lead-based paint hazards and conduct clearance testing if needed.

Actions planned to reduce the number of poverty-level families Job training and career counseling can help residents increase their earning power. Through its summer job opportunities and volunteer programs, the City continues to support its youth population in preparing to enter the workforce. Youth can gain job skills and customer service experience through different jobs, including a playground recreation leader, a day camp counselor, and other similar positions. The City also supports adult residents who are seeking jobs. The Monterey County Workforce Development Board (WDB) is a one-stop career center operating under state and local Workforce Investment Boards. This center provides job listings, career counseling, assistance with unemployment insurance, and links to potential job training programs.

The City’s Housing Division has offered internships to college students and graduate students to provide

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 51, Packet Page 93 Annual Action Plan 41
OMB Control No: 2506-0117 (exp. 09/30/2021)
them job growth opportunities. Interns work in the Rental Inventory, Rental Assistance, and CDBG programs.

Assisting individuals with the challenges which keep families in poverty is a critical step in reducing the number of poverty-level families. In PY 2026, the City will provide CDBG grant allocations to service organizations offering important supportive services which may provide assistance for residents to increase their earning potential:
• Food delivery by Meals on Wheels for seniors and disabled seniors • Alliance on Aging that provides tax assistance to low-income seniors • Fair housing education and counseling on housing and home lending discrimination • Acquisition and rehabilitation of ownership units for resale to low-income first-time homebuyers with Echo Housing
• Outreach and support for homeless persons and at-risk youth by CHS, Gathering for Women, and Victory Mission
• Providing a homeless shelter for single homeless persons and families with children by CHS • Providing homeless services, emergency and temporary housing, and case management for persons with mental illnesses through Interim, Inc., Victory Message, CHS, and Gathering for Women
• Day-center services to homeless persons in the city through Gathering for Women • Acquisition, Rehabilitation, and Repair program to assist up to three lower-income first-time homebuyers.

Actions planned to develop institutional structure
The City has an experienced and effective staff who work on issues which impact the low- and moderate-income community. The City also works closely and collaborates with CHSP, the CoC, to implement the Lead Me Home Plan. CHSP partners with a wide-range of public and private entities that include CA-506—Salinas/Monterey, San Benito Counties CoC, affordable housing developers, community clinics and health centers, other healthcare providers, educational institutions, faith-based organizations, housing and homeless services providers, local government, probation/criminal justice, non-profit agencies, private foundations, public housing authorities, people with lived experience of homelessness, and service providers for families, seniors, survivors of domestic violence, veterans, and youth. Many of these partners mentioned are traditional recipients of the City’s CDBG program. The City continues to work closely and on a regular basis with these providers through the CDBG program’s annual activities.

The City is in the process of implementing its Housing Element that was Adopted and approved by HCD in 2024. The Housing Element programs will:
• Accelerate housing production
• Streamline the approval of housing development affordable to owner and renter

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 52, Packet Page 94 Annual Action Plan 42
OMB Control No: 2506-0117 (exp. 09/30/2021)
households at all income levels
• Facilitate housing affordability, particularly for lower- and moderate-income households • Promote development consistent with the State Planning Priorities (Government Code Section 65041.1)
Actions planned to enhance coordination between public and private housing and social service agencies
In PY 2026, the City will continue to coordinate and work closely with agencies and organizations to provide services to the low- and moderate-income community, special needs populations, and homeless families and individuals. Objectives and priorities for addressing homelessness that are established in the Lead Me Home Plan are, and will continue to be, aligned with the City’s Consolidated Plan and annual activities. As previously described, the CHSP works in close coordination with the CDBG subrecipients receiving CDBG allocations from the City. These include:
• Community Human Services (CHS) Safe Place – counseling, family reunification, temporary shelter, and street outreach for homeless youth.
• CHS Casa de Buena Noche – emergency shelter for single homeless persons and families with children.
• CHS Shuman HeartHouse - homeless shelter for single homeless persons and families with children.
• Interim, Inc. - homeless services, emergency and temporary housing outreach, and case management for persons with mental illness.
• Victory Missing – outreach and case management for persons experiencing homelessness.

Discussion:

See above.

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 53, Packet Page 95 Annual Action Plan 43
OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%

EXHIBIT A
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 54, Packet Page 96 ATTACHMENT 2:

PUBLIC COMMENTS
Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 55, Packet Page 97 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 56, Packet Page 98 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 57, Packet Page 99 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 58, Packet Page 100 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 59, Packet Page 101 As a county and as a community, we must stand together in support of those most vulnerable among us. United, we strengthen the fabric of our shared society; divided, we risk weakening it.

Thank you for your time, your service, and your thoughtful consideration of this important issue. I look forward to continued dialogue.

With respect,
[NOTICE: This message originated outside of the City of Monterey mail system -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] 4/13/26, 9:09 AM Inbox - Mahnoor Feroz Abbasi - Outlook https://outlook.cloud.microsoft/mail/inbox/id/AAQkAGVkMTgwNTliLTMzMTMtNDI4OS1iMTIzLWZjNDk2ZGE4MDMyZQAQAGRtsHDPT1JFnm0f5Hykw… 2/2 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 60, Packet Page 102 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 61, Packet Page 103 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 62, Packet Page 104 [NOTICE: This message originated outside of the City of Monterey mail system -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] 4/13/26, 3:15 PM Inbox - Mahnoor Feroz Abbasi - Outlook https://outlook.cloud.microsoft/mail/inbox/id/AAQkAGVkMTgwNTliLTMzMTMtNDI4OS1iMTIzLWZjNDk2ZGE4MDMyZQAQAMKFBMcVK6BDmaAfHp0… 2/2 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 63, Packet Page 105 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 64, Packet Page 106 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 65, Packet Page 107 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 66, Packet Page 108 There is no truth to the science that says biological gender is determined at birth by babies having either XX or XY chromosomes. There are far more naturally occurring variations. In addition:

Scientists at Hudson Institute of Medical Research, Melbourne analysed DNA from 380 transgender women (male-to-female transgender people) and found that certain ‘versions’ of 12 different genes were significantly overrepresented in transgender women, compared to non-transgender males. “This is the world’s largest and most comprehensive study examining changes in genes that control sex hormone signalling in transgender women. It identifies several new genes or genetic variations never before looked at in gender dysphoria,” lead author, Professor Vincent Harley of Hudson Institute, said. https://hudson.org.au/news/written-in-dna-study-reveals-potential-biological-basis-fortransgender/ As a parent who raised 2 children and has lived here for nearly 50 years, I urge you to strike this false, ignorant and profoundly oppressive language from the Annual Action Plan FY 2026-2027.

Sincerely,
[NOTICE: This message originated outside of the City of Monterey mail system -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] 4/13/26, 11:11 AM Inbox - Mahnoor Feroz Abbasi - Outlook https://outlook.cloud.microsoft/mail/inbox/id/AAQkAGVkMTgwNTliLTMzMTMtNDI4OS1iMTIzLWZjNDk2ZGE4MDMyZQAQANiO8y19MI5FnSi7Cq1%2B… 2/2 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 67, Packet Page 109 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 68, Packet Page 110 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 69, Packet Page 111 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 70, Packet Page 112 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 71, Packet Page 113 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 72, Packet Page 114 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 73, Packet Page 115 Attachment 2
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Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 75, Packet Page 117 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 76, Packet Page 118 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 77, Packet Page 119 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 78, Packet Page 120 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 79, Packet Page 121 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 80, Packet Page 122 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 81, Packet Page 123 [NOTICE: This message originated outside of the City of Monterey mail system -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] 4/14/26, 8:24 AM Inbox - Mahnoor Feroz Abbasi - Outlook https://outlook.cloud.microsoft/mail/inbox/id/AAQkAGVkMTgwNTliLTMzMTMtNDI4OS1iMTIzLWZjNDk2ZGE4MDMyZQAQAGQHxIi3%2FvlBvz4MZwz… 2/2 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 82, Packet Page 124 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 83, Packet Page 125 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 84, Packet Page 126 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 85, Packet Page 127 This language is not neutral policy—it is an explicit exclusion rooted in harmful and politicized rhetoric. By adopting terminology such as “gender ideology,” the City is aligning itself with a framework that delegitimizes transgender identities and restricts access to resources for an already vulnerable population.

This is, quite simply, a form of bigotry.

Policies that marginalize transgender people do not exist in a vacuum. They contribute to a broader climate of stigma, exclusion, and harm. Research consistently shows that transgender individuals face disproportionately high rates of housing instability, discrimination, mental health challenges, and violence. When public agencies signal that certain identities are unwelcome or unworthy of support, it exacerbates these risks and can have life threatening consequences.

Moreover, discrimination against transgender people harms the entire community. Cities are strongest when they are inclusive, equitable, and committed to protecting the dignity of all residents.

Exclusionary policies erode trust in public institutions, weaken community cohesion, and undermine the very goals of community development.

If the City of Monterey is truly committed to addressing the needs of its residents, it must do so without carving out exceptions that deny support based on identity. Public funds should be used to expand opportunity and safety—not to codify exclusion.

I urge the City Council to remove this language from the Annual Action Plan and to reaffirm a commitment to equity, inclusion, and the well being of all community members, including transgender and gender diverse individuals.

Thank you for your time and for your responsibility to serve every member of your community with fairness and respect.

Sincerely,
[NOTICE: This message originated outside of the City of Monterey mail system -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] 4/15/26, 8:24 AM Inbox - Mahnoor Feroz Abbasi - Outlook https://outlook.cloud.microsoft/mail/inbox/id/AAQkAGVkMTgwNTliLTMzMTMtNDI4OS1iMTIzLWZjNDk2ZGE4MDMyZQAQANRYxPmg7wpFkXqXlKWa… 2/2 Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 86, Packet Page 128 Date: 4/13/2026
Name:

Contact Number:

Public Comment via Phone Call: Reached out to provide public comment regarding the annual action plan and referred to the wording in the draft plan regarding Gender ideology.

She mentioned this is horrific and this language should be taken out calling in regard to the April 14 meeting before the Planning Commission
Date: 4/13/2026
Name:

Contact Number:

Public Comment via Phone Call: Reached out to provide public comment regarding the FY 26-27 Annual Action Plan. She said that she was looking at the language on gender ideology, and she strongly objects to this language. Executive Order has no legal standing, and this language should not be included.

Date: 4/13/2026
Name:

Contact Number:

Public Comment via Phone Call: Reached out to provide public comment regarding the annual action plan and being opposed to the language on gender ideology.

Date: 4/13/2026
Name:

Contact Number:

Public Comment via Phone Call: left a voicemail message regarding the April 14 meeting and she said she cannot attend for work. She mentioned the wording from the draft annual action plan and that it concerns her - She said that trans folks are the most discriminated against and we should stand up for our community and make it clear that as Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 87, Packet Page 129 community we support all especially those who are facing persecution under the current regime.

Date: 4/13/2026
Name:

Contact Number:

Public Comment via Phone Call: left a voicemail message to express her objection to the wording used in the draft action plan. She recommended not using grant funds, and that this is outright oppressive, marginalizing, and deeply unsettling. She suggested the City review the treatment of trans people.

Date: 4/14/2026
Name:

Contact Number:

Public Comment via Phone Call: Caller asked for the email where she could send public comment regarding the annual action plan and asked where she could find the e-mails for the City Council Members. Caller was provided with the requested information.

Attachment 2
Council Regular Meeting, 5/5/2026, Item No. 6., Item Page 88, Packet Page 130 Council
Agenda Report
FROM: Nat Rojanasathira, Assistant City Manager
Prepared By: Mark Ackermann, Management Analyst
SUBJECT: Issue Two (2) Storefront Retail Cannabis Business Permits, Contingent on Obtaining Zone Clearances, to Waitlisted Applicants 1) Infinity Assets Monterey LLC and 2) Monterey Organic LLC (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council approve the issuance of Storefront Retail Cannabis Business Permits to waitlisted
applicants Infinity Assets Monterey LLC and Monterey
Organic LLC contingent on obtaining zone clearances.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

The City’s authority to regulate cannabis stems from the California Constitution’s grant of police powers and the City’s charter, and provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”).

On December 21, 2021, the City Council directed staff
to develop regulations allowing no more than three (3)
cannabis retail permits, one (1) each in Downtown,
Lighthouse, and Cannery Row. On November 8, 2022,
Measure J, the City’s Cannabis Business License Tax,
passed with more than 65% of the voters voting in the
election approving the measure. On November 21,
2023, the City Council adopted an amendment to the
City Zoning Ordinance to allow for four (4) storefront
retail cannabis businesses. Two (2) of the four (4)
approved retailers have since opened their doors for
business.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: Yes.

Agenda Report Highlights
• The City Council is asked to
approve two storefront retail
cannabis business permits for
waitlisted applicants Infinity Assets
Monterey LLC and Monterey
Organic LLC.
• Two previously approved applicants
lost their permits after failing to meet
a 12-month operational deadline or
a subsequent six-month extension.
• Monterey has received over
$230,000 in revenue from the first
two operational cannabis retailers
and forecasts $300,000 for the
2026-2027 fiscal year.
• If approved, the applicants must still
obtain zone clearances for the North
Fremont or Wave Street areas
before their permits are finalized.
• Because the cannabis permit waitlist
expired on January 1, 2026, a
rejection of these applicants would
require the City to initiate a new
proposal process.

Date: 5/5/2026
Item No.: 7.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 1, Packet Page 131 №10/24
FISCAL IMPLICATIONS:

The City’s first storefront retail cannabis business just passed one year of operation, and the second permitted business opened its doors in December 2025. In the first full year of active storefront cannabis retail sales, the City received over $185,000 in revenue. To date, the City has received more than $230,000. Limited data is available for the second retailer, , however staff is forecasting $300,000 in revenue for FY 26-27 with this retailer gaining a better footing in the market.

Staff’s projection would still fall short of the lower end of annual revenue estimates provided by consultant HdL, which were already revised down from a 2021 estimate of $604,000 to $1.3 million per year, to be between $322,323 and $705,583.

With the potential addition of two (2) retailers to the market, as well as incoming competition from a future retailer in Pacific Grove, it will be interesting to see how the market reacts. A greater than expected percentage of sales have come from locals rather than tourists, so the market may be nearing saturation. On the other hand, a retailer closer to the Cannery Row area may tap into a larger segment of tourists and additional revenue for the City.

The 2025 rescheduling of marijuana to Schedule III led some to believe interstate commerce, even in a limited capacity, may be authorized in the relatively near term. This could provide a welcome boost to the local market as out-of-state tourists might begin to buy products in larger quantities or more often than they currently do. However, this is still to be determined and may not happen at all.

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 recovering the City’s cost to regulate cannabis commerce and taxing that commerce to fund general city services 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, such as appropriating the revenues realized, will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

Council could approve both waitlisted applicants, one (1) of the applicants, or neither applicant.

In accordance with City Code, the waitlist expired on January 1, 2026, so should Council decide not to approve either applicant, the City would need to solicit new proposals should Council elect to issue additional permits.

Soliciting new proposals could allow the City Council to restart the Request for Proposal (RFP) process.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 2, Packet Page 132 №10/24
DISCUSSION:

Background
The City originally received 13 applications for storefront retail cannabis business permits.

Following the selection process outlined in the City Code, the top eight (8) applicants were evaluated and ranked by a subcommittee consisting of the Mayor and the Vice Mayor, and the City Council approved the top four (4) per the subcommittee’s recommendation while assigning next four (4) applicants to the waitlist.

The top four (4) applicants approved by Council were, in ranked order:

1. Monterey Responsible and Compliant Retail LLC

2. Element 7 SF4 LLC

3. Monterey Pacific Retail Holdings, Inc

4. OTC Monterey LLC
The following four (4) applicants comprise the waitlist, in ranked order:

1. Infinity Assets Monterey LLC

2. Monterey Organic LLC

3. Monterey Retail Group, Inc.

4. Dispo Monterey LLC
Of the applicants approved, only one (1) was able to exercise their permit in the City Code’s 12- month timeframe (OTC Monterey LLC). On May 21, 2025, the remaining three (3) applicants were approved by the City Manager for 6-month extensions. Of those three (3), Element 7 SF4 LLC was the only business able to meet the extension deadline, leaving two (2) of the four (4) available permits unused.

Current Status
On December 1, 2025, the applicants who failed to meet the extension deadline (Monterey Responsible and Compliant Retail LLC and Monterey Pacific Retail Holdings, Inc.) were notified by the City Manager via mail and email that their extensions expired on November 21, 2025.

That same day, Infinity Assets Monterey LLC and Monterey Organic LLC, as the two (2) highest-ranking applicants on the waitlist, were sent invitations to apply for City Council approval.

Council should now decide whether to proceed with these applicants. Council could approve both applicants, one (1) of the applicants, or neither applicant. In accordance with City Code, the waitlist expired on January 1, 2026, so should Council decide not to approve either applicant, the City will need to solicit new proposals if Council wants to issue the remaining permits.

Next Steps: Zone Clearance
If the City Council agrees to move forward with both or either of the waitlisted applicants, the applicants are still required to obtain a zone clearance prior to permit issuance. (City Code sections 7-7.07(c) and 7-7.12(b).)
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 3, Packet Page 133 №10/24
On May 5, 2026, should both applicants be approved by Council and prefer the same zone, the Community Development Director or their designee will conduct a drawing that is open to public view to identify the order by which the applicants will choose their preferred zone from the available zones in the North Fremont and Wave Street Areas (City Code section 7-707(c).) If Council does not elect to move forward with the waitlisted applicants or the applicants selfeliminate from the process, Council may then decide if they would like to reopen the process to any interested parties for the remaining permits. Reopening the process could involve an RFP process to identify highly qualified cannabis retail operators and/or re-reviewing the desired cannabis zone(s) for expansion. Since the original RFP process was conducted in January 2024, a new RFP process would allow the City to reassess the most qualified cannabis retail operators in today’s ever-changing retail environment.

NR/ma
Attachments: 1. Resolution 1: Infinity Assets Monterey LLC

2. Resolution 2: Monterey Organic LLC

3. Consultant Application Evaluation Report: Infinity Assets Monterey LLC

4. Consultant Application Evaluation Report: Monterey Organic LLC 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.org/Submitted-Comments
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 4, Packet Page 134 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY

ISSUING A STOREFRONT RETAIL CANNABIS BUSINESS PERMIT, CONTINGENT ON

OBTAINING A ZONE CLEARANCE, TO INFINITY ASSETS MONTEREY LLC WHEREAS, on November 8, 2022, Measure J, the City’s Cannabis Business License Tax, passed with more than 65% of the voters voting in the election approving the measure, and on November 21, 2023, the City Council adopted an amendment to the City Zoning Ordinance to allow for four storefront retail cannabis businesses; WHEREAS, City Code section 7-7.07 (c) stipulates that “A Zone Clearance shall be obtained for retail businesses before the city will issue a cannabis permit”; WHEREAS, a Selection Committee comprised of the Mayor and Vice Mayor interviewed the top eight applicants on May 1, 2024 and May 3, 2024, identified Infinity Assets Monterey LLC as the fifth-ranked applicant;
WHEREAS, on May 21, 2024, City Council approved the Selection Committee’s recommendation to create a waitlist with applicants ranked fifth through eighth; WHEREAS, the maximum time of 18 months for exercising a permit in accordance with City Code section 7-7.12 (d) expired on November 21, 2025 for Monterey Responsible and Compliant Retail LLC and Monterey Pacific Retail Holdings Inc; WHEREAS, Infinity Assets Monterey LLC was notified of their right, as the next waitlisted applicant, to apply on December 1, 2025 in accordance with City Code section 7-7.12 (d);
WHEREAS, granting the permit would not exceed the number of cannabis businesses authorized under Section 7-7.06(c); the applicant has not knowingly made a material misrepresentation or omission in the application; the applicant has not had a cannabis business permit denied or revoked by the state, County, City, City and County, or any other state within five (5) years of the date of the application; the cannabis business, as proposed by the applicant, would comply with all applicable provisions of state law and this code, including but not limited to this Article, and all health, zoning, fire, and safety requirements; and no grounds for denial exist under City Code section 7-7.13; 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 recovering the City’s cost to regulate cannabis commerce and taxing that commerce to Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 5, Packet Page 135 2 fund general city services 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, such as appropriating the revenues realized, will be assessed for CEQA applicability;

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby issues a Storefront Retail Cannabis Business permit, contingent on successful obtainment of a zone clearance, to Infinity Assets Monterey LLC. A zone clearance must be obtained and the cannabis business permit exercised by April 21, 2027, at which time this approval shall expire unless an extension is granted by the City Manager. (City Code section 7-7-12(h).)
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 6, Packet Page 136 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY

ISSUING A STOREFRONT RETAIL CANNABIS BUSINESS PERMIT, CONTINGENT ON

OBTAINING A ZONE CLEARANCE, TO MONTEREY ORGANIC LLC
WHEREAS, on November 8, 2022, Measure J, the City’s Cannabis Business License Tax, passed with more than 65% of the voters voting in the election approving the measure, and on November 21, 2023, the City Council adopted an amendment to the City Zoning Ordinance to allow for four storefront retail cannabis businesses; WHEREAS, City Code section 7-7.07 (c) stipulates that “A Zone Clearance shall be obtained for retail businesses before the city will issue a cannabis permit”; WHEREAS, a Selection Committee comprised of the Mayor and Vice Mayor interviewed the top eight applicants on May 1, 2024 and May 3, 2024, identified Monterey Organic LLC as the sixth-ranked applicant;
WHEREAS, on May 21, 2024, City Council approved the Selection Committee’s recommendation to create a waitlist with applicants ranked fifth through eighth; WHEREAS, the maximum time of 18 months for exercising a permit in accordance with City Code section 7-7.12 (d) expired on November 21, 2025 for Monterey Responsible and Compliant Retail LLC and Monterey Pacific Retail Holdings Inc; WHEREAS, Monterey Organic LLC was notified of their right, as the next waitlisted applicant, to apply on December 1, 2025 in accordance with City Code section 7-7.12 (d); WHEREAS, granting the permit would not exceed the number of cannabis businesses authorized under Section 7-7.06(c); the applicant has not knowingly made a material misrepresentation or omission in the application; the applicant has not had a cannabis business permit denied or revoked by the state, County, City, City and County, or any other state within five (5) years of the date of the application; the cannabis business, as proposed by the applicant, would comply with all applicable provisions of state law and this code, including but not limited to this Article, and all health, zoning, fire, and safety requirements; and no grounds for denial exist under City Code section 7-7.13; 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 recovering the City’s cost to regulate cannabis commerce and taxing that commerce to Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 7, Packet Page 137 2 fund general city services 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, such as appropriating the revenues realized, will be assessed for CEQA applicability;

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby issues a Storefront Retail Cannabis Business permit, contingent on obtaining a zone clearance, to Monterey Organic LLC. A zone clearance must be obtained and the cannabis business permit exercised by April 21, 2027, at which time this approval shall expire unless an extension is granted by the City Manager. (City Code section 7-7-12(h).) PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 8, Packet Page 138

APPLICATION SCORE
188.50 Points Awarded
200.00 Points Available

94.25% Score
Points
Awarded
Points
Available

37.00 40.00

1. 10.00 10.00

2. 10.00 10.00

3. 10.00 10.00
Comments
Addressed Criteria (pg. 5-8): Miguel Rodriguez, as CEO, is responsible for staffing decisions, budget oversight, facility design, product menu development, and overall strategic direction; David Kang, serving as CFO, manages financial aspects, payroll, budgeting, and investor relations, while also overseeing compliance as CCO; Justin Jarin, as COO, implements strategic sales plans, enforces policies, and manages operations, including facility construction; Chris Hester, as Security & Facilities Director, ensures site security, oversees facility management, and manages the budget; James Velarde, as Community Relations Director & Liaison, engages with the local community, handles complaints, and leads community engagement efforts, including managing a Community Advisory Board.

Scoring: (+10) exceptional involvement of ownership team SECTION A: QUALIFICATIONS/BUSINESS PLAN (40 POINTS)
Cannabis Business Experience: Describe the business owner’s prior experience in owning, managing, and operating a legally permitted or licensed retail cannabis business in the United States, or other business in a similarly State regulated activity.

City of Monterey Retail Cannabis Business Permit Application Phase 2 Application Evaluation Report
CB24-006 - Infinity Assets Monterey
Tracking Number - Applicant Name/DBA
Retail Storefront and Delivery
License Type
Addressed Criteria (pg. 1-3; PDF #5): owners with 50+ years of cannabis industry experience; 4 of 5 owners with prior retail cannabis experience; Infinity Assets Monterey LLC does not operate or hold any licenses associated to another cannabis retail business; however ownership team has owned 6+ retail locations in California based on DCC license search.

Scoring: (+4) more than 75% ownership team with experience in Cannabis or State regulated activity, (+3) 15+ years of cannabis experience, (+3) managed and operated non-storefront retail business, no licensed retail businesses
Addressed Criteria (pg. 5-7): Exceptional understanding of the cannabis industry. Provides an exhaustive and comprehensive overview of industry best practices and state regulations, including nuanced insights and advanced analysis. Demonstrates a sophisticated understanding of how regulations are incorporated into existing or prior legal businesses, with exemplary examples and in-depth analysis.

Scoring: Exceptional (+10) - applicant demonstrates exceptional knowledge of the cannabis industry. Best practices, City and State regulations referenced throughout the entire application Cannabis Industry Knowledge: Describe your overall knowledge of the cannabis industry, including identification of how industry best practices and State regulations have been incorporated in existing/prior legal businesses outside the City of Monterey.

Ownership Team Involvement: Describe the involvement of the ownership team in the day-today operation and management of the proposed business.

ATTACHMENT 3
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 9, Packet Page 139

4. 7.00 10.00

38.50 40.00

1. a. 1.00 1.00
b.

0.50 1.00
Addressed Criteria (pg. 8-12): David Kang's double major in Economics and Political Science provides him with essential skills for managing business and financial aspects, ensuring compliance; Chris Hester's degree in Urban Planning equips him to manage facility safely and compliantly; Miguel Rodriguez, Justin Jarin and James Velarde lack relevant certifications; training program aims to educate staff on safe cannabis use, compliance, security measures, and more; Employees can earn certifications such as Cal OSHA, ServSafe, and METRC™ training.

Certifications involve extensive training and assessments, with records stored securely for auditing purposes, ensuring compliance and skill validation. Scoring: (+7) Significant
certifications or formal training mentioned for owners, managers, or staff Addressed Criteria (pg. 14): operational hours from 9am-9pm daily; Scoring: (+1) proposed hours align with City regulations Addressed Criteria (pg. 17-18): Upon arrival, customers are greeted by a security employee who directs them to the entrance; No cannabis products are visible from the exterior; In the lobby, customers must checkin, providing appropriate identification as per Department of Cannabis Control (DCC) regulations; Staff verify the age and documentation of each customer, ensuring compliance with age restrictions for cannabis purchases; Customers aged 18 to 20 must also possess a valid physician's recommendation or Medical Marijuana Card; Check-in staff are trained to recognize false identifications and do not accept expired or physically adulterated IDs; Once checked-in, returning customers only need their ID scanned for verification, expediting the process; Customer profiles are created in the point-of-sale system, allowing for verification of medical recommendations, purchase limits, and confidential record-keeping for potential product recalls; After check-in, customers enter the waiting area until they are buzzed in to access the retail area.

Scoring: (+0.5) check-in procedures consistent with State regulations; customers under age of 21 with medical recommendation not allowed on retail premise - delivery only
Professional Certifications/Training: Describe any professional certifications and/or formal training of the owners, managers or staff involved in the day-to-day operations and/or oversight of the proposed cannabis business.

SECTION B: BUSINESS PLAN (40 POINTS)
Business Operations: Describe the day-to-day operations which meet industry best practices for the type of retail cannabis business you are applying this should include, at a minimum, a description of the following:

Hours of operation.

If applicable, the Customer check-in procedures.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 10, Packet Page 140 c.

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How compliance with the state’s track and trace system for cannabis and cannabis products will be achieved.

Addressed Criteria (pg. 18-23): integrate with the METRC™ platform, mandated by state law, to track inventory movements, transactions, and compliance details accurately. METRC™ will be used in conjunction with Meadow's POS software to provide real-time inventory reporting, sales trend analysis, and seamless integration with state regulations; real-time inventory reporting, queue management, offline mode capability, age verification, and RFID/barcode technology for inventory tracking; track inventory events, product acquisitions, waste disposal, and recall procedures; Employees will be trained to use METRC, with unique login credentials assigned to prevent data manipulation; incoming cannabis transfers will be verified, coordinated, and inspected according to stringent protocols, with all transactions recorded in METRC; outgoing cannabis deliveries will also be meticulously tracked using METRC Scoring: (+1) detailed explanation provided
The accounting software system to be used to provide point of sale data and audit trails of both product and cash.

Addressed Criteria (pg. 23-26): conduct inventory audits to ensure accuracy and accountability of cannabis products, recording acquisitions, sales, quarantines, and disposals to prevent diversion or theft; Weighing devices used will be certified and calibrated to comply with state regulations; Audits will also ensure product quality control, with damaged or compromised items quarantined and disposed of, with records updated in METRC™ immediately; Routine audits will be conducted weekly, monthly, and randomly, with discrepancies investigated promptly and reported to authorities if necessary; Financial transactions will also be audited, with records maintained for seven years and made available upon request; Record storage and maintenance protocols ensure compliance, data integrity, and protection of sensitive information, facilitating comprehensive audits.

Scoring: (+1) Comprehensive description provided
The Point-of-Sale system (including name) to be used and how it will interact with the state’s mandated track and trace system. Identify the number of Point- of-Sales terminals to be used when the business is at full capacity.

Addressed Criteria (pg. 17): Meadow's POS software due to its advanced technology, integration with state track-and-trace systems, and userfriendly interface; Meadow offers comprehensive compliance features, including tax calculations and sales reporting; The POS system offers realtime inventory reporting, queue management, and offline mode capabilities for uninterrupted service; It also features age verification, purchase limit alerts, and RFID/barcode technology for accurate inventory tracking; Meadow seamlessly integrates with delivery model and provides cash management tools and HIPAA-certified record-keeping; Six POS terminals will be installed at stationary registers, where employees will assist customers in exploring product options and completing transactions using iPad-based applications.

Scoring: (+0.5) POS name, (+1) description of how it interacts with METRC, (+0.5) # of POS stations
The number of customers to be served per hour/day. Addressed Criteria (pg. 26-28): approximately 92 in-store and 31 delivery customers daily; 8/3 customers per hour;
Scoring: (+1) estimation provided; supported by clear reasoning and market analysis Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 11, Packet Page 141 g.

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The proposed product line, including brand names, to be sold at the business, and estimate the percentage of sales of flower and manufactured products.

Addressed Criteria (pg. 28-34): diverse range of cannabis products tailored to various customer preferences, health needs, and budgets; Their product lineup includes flower, vape cartridges, edibles, concentrates, and CBD-rich products; prioritizes brands that are Clean Green certified or meet similar standards; consider Monterey's tax regulations, promoting moderate THC products and offering low-sugar cannabis beverages to align with tax requirements; carefully selects distributors who share their commitment to quality, sustainability, and compliance with regulations; brands provided; Flower (1g): 7%, Flower (3.5g): 12%, Flower (7g): 7%, Pre-Roll 5-pack (3.5g): 9%, Discounted Flower (7g): 13%, Vaporizer Cartridges (500mg): 32%, Extracts (1g): 6%, Edibles/Beverages (100mg): 9%, Tinctures/Topicals (100mg): 2%, NonCannabis Goods: 4% Scoring: (+1) Comprehensive description of product line, supported by reasoning and market analysis
Location(s) and procedures for receiving deliveries during business hours. Addressed Criteria (pg. 34-37): Shipments are only accepted from licensed, insured, and state-authorized distributors or microbusinesses during specified hours; Vendors must communicate their estimated arrival time to the manager, who coordinates with security personnel for verification upon arrival; Security checks include verifying the vendor's identity and essential documentation, such as government-issued ID, certificates of analysis, and cannabis business licenses; Once cleared, vendors are directed to the delivery bay, where the manager oversees the verification process, comparing the delivery against the shipping manifest and inspecting each item for quality; Payment is made using cash on hand, ensuring smooth transactions; security personnel conduct perimeter sweeps upon vehicle arrival, further enhancing security measures; After completing the transaction, vendors are escorted to the loading bay, and inventory is meticulously recorded in the point-of-sale system before transfer to the secured inventory room.

Scoring: (+1) comprehensive description that aligns with regulations If applicable, describe delivery service procedures, number of vehicles, and product security during transportation.

Addressed Criteria (pg. 37-40): Secure Transport Plan for cannabis delivery, ensuring safety and compliance. Delivery drivers are rigorously vetted and equipped with necessary documentation. Outgoing transfers adhere to strict procedures, including product limits and thorough vehicle checks. Secure packaging and safe driving practices are prioritized.

Comprehensive tracking and communication systems are utilized, with detailed documentation maintained for regulatory compliance and transparent transactions; 1 delivery vehicle
Scoring: (+1) Applicant proposes to provide adult-use and medicinal delivery; provides comprehensive description of procedures Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 12, Packet Page 142 j.

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How cannabis and cannabis products will be tracked and monitored to prevent diversion. Addressed Criteria (pg. 42-43): will establish and manage an active account within California's track and trace system; An appointed account manager will oversee system usage, ensuring all designated users receive appropriate training; will promptly address compliance notifications from the track and trace system and maintain records of resolution; Any diversion will be reported to local authorities within 24 hours and result in immediate dismissal or termination of access; employs various safeguards to prevent diversion, including comprehensive inventory control, strict non-diversion policies, and physical security measures like video surveillance and alarm systems; Policies are in place to prevent and identify both customer and staff diversion, with a zero-tolerance approach and immediate actions for suspected incidents, including reporting to law enforcement and termination if confirmed; Staff training emphasizes accountability and the obligation to report any suspected diversion promptly. Scoring: (+1)
comprehensive description provided
The proposed waste management plan, including waste disposal locations, security measures, methods of rendering all waste unusable and unrecognizable, and the vendor in charge of disposal.

Addressed Criteria (pg. 43-47): plan covers compromised cannabis, unsatisfactory or unsaleable cannabis, non-cannabis waste, chemical waste, and cannabis plant and product waste; compromised cannabis and unsatisfactory cannabis, staff will log batch information, render the waste unusable, and dispose of it in a secure receptacle; Non-cannabis waste will be separated for recycling or disposal according to Monterey regulations; Chemical waste will be managed according to Household Hazardous Waste (HHW) handling standards; Cannabis plant and product waste will be rendered unusable, recorded in METRC™, and disposed of under video surveillance; Designated waste areas within the dispensary will be monitored and secured, with external waste collection areas equipped with locking mechanisms and surveillance cameras; Staff will collect and document waste disposal, ensuring compliance with regulations and maintaining accurate records; Employees will undergo training on waste; contract with Cannabis Waste Solutions (CWS) for disposal.

Scoring: (+4) thorough and detailed description provided and compliant with regulations
How the Cannabis Business will conform to local and state laws. See MMC Chapter 7, Article 7 as they pertain to retail establishments in the City of Monterey.

Addressed Criteria (pg. 40-42): Owners and executive staff possess extensive business acumen to ensure SOPs are regulatory compliant and enforce a positive customer experience; The Chief Operating Officer, Justin Jarin, oversees employee training and ensures SOPs are adhered to through audits and inspections; strong compliance record, adhering to MAUCRSA, maintaining security measures, obtaining necessary licenses, and upholding operational procedures; The leadership team's dedication to compliance positions as a responsible and successful player in the cannabis industry, meeting the expectations set by regulatory authorities.

Scoring: (+1) comprehensive description provided; regulations referenced throughout application
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 13, Packet Page 143 m.

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35.00 40.00

1. 1.00 1.00

2. Addressed Criteria (pg. 51-52): startup budget of $1,163,426 includes expenses for renovations, licenses, staffing, marketing, and unforeseen costs. The operations budget estimates monthly expenses of $134,445, covering costs such as product acquisition, staffing, professional services, and facility maintenance. Additionally, they project a total payroll of $895,446, including employee benefits
Scoring: (+5) comprehensive budget supplemented by market analysis; sufficient capital
Addressed Criteria (pg. 53; PDF File #4): access to $2 million in capital, validated by Morgan Stanley on behalf of investor Ellen Sockolov Scoring: (+5) detailed proof of capitalization provided; funding is fully sufficient for proposed budget
Addressed Criteria (pg. 54-56):

Scoring: (+5) meticulous and detailed 5-year pro forma backed by market analysis
Addressed Criteria (pg. 56-58): meticulously planned a schedule to launch their premier cannabis dispensary in Monterey from February 2024 to January 2025. It involves completing the cannabis application process, acquiring the Conditional Use Permit (CUP), and finalizing construction and inauguration. The process spans 11.5 months, aiming for a grand opening in January 2025.

Scoring: (+4) Comprehensive schedule provided; Applicants that received full points commitment to opening within 6 months
Addressed Criteria (pg. 58): contracted with Crime Alert Security, Ilan Frank | President & CEO, License # ACO 7496
Scoring: (+1) security plan developed by qualified third-party professional Finances:

Provide a budget for construction, operations, maintenance, compensation of employees, equipment, property lease, security equipment and staff, City fees, state fees, utility costs, product purchases and other anticipated contingency costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds.

The proposed odor control plan to prevent any odor generated inside the location from being detected on adjacent properties or public rights-of-way, or within any other unit located within the same building as the cannabis business if the cannabis business occupies only a portion of a building.

Addressed Criteria (pg. 47-50): includes using activated carbon filtration systems, maintaining negative air pressure, and ensuring complete air exchange; VenTech Fans with activated charcoal filters will be installed, and staff will undergo training to prevent odor emissions; Regular maintenance and daily odor monitoring will be conducted, and complaints will be promptly addressed; Sanitation practices will be strict to prevent pest contamination.

Scoring: (+4) thorough and detailed description provided; air filtration and negative air pressure
Operational Security: A description of operational security, including but not limited to:

Provide proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City.

Provide a pro forma for at least three years of operations.

Provide a schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

SECTION C: SECURITY PLAN (40 POINTS)
Security Plan: The Application must include a security plan prepared by a qualified professional.

The security plan can be prepared with in-house staff or a third-party security consultant but must clearly demonstrate that it meets the qualified professional standard to receive the appropriate points for each criterion in this section. The Applicant must also submit the qualifications of the Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 14, Packet Page 144 a.

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Addressed Criteria (pg. 61, 62): staff and vendors enter using electronic keys assigned according to their job roles; Access to the facility is monitored, with exterior doors automatically closing when not manually held open; Customers must verify their age and identity with security before accessing the retail area; Access to secure storage is restricted to authorized managers, with escorts required for unauthorized individual; Security guards monitor conduct on-site and report any unauthorized persons; All employees and visitors wear identification badges, and visitor access to secure areas is supervised; Badges must be returned upon employee termination; These measures align with Department of Cannabis Control regulations.

Scoring: (+0.5) describes access control systems, (+0.5) covers all entry points, (+0.5) limited access areas, (+0.5) procedures for managing and controlling visitors,(+1) use of key card access control system, (+0.5) visitor procedures and log described (pg. 36), (+0.5) visitor badge and escort policies
Addressed Criteria (pg. 65, 66): maintains a secured storage area accessible only to authorized managers using electronic fobs with radio frequency identification; This area is designated for storing cash, cannabis products (excluding those in processing), and inventory overnight; Security measures include surveillance cameras, a hold-up button, and reinforced steel mesh; Inventory procedures are overseen by a designated manager, with counts and recordings conducted at least every 30 days to address discrepancies promptly; Cannabis stored after hours is transferred to the secure storage area or a fire-resistant safe anchored to the building; If refrigerated cannabis products are on-site, they are stored in locking refrigerators or freezers secured to the building; The facility ensures stored cannabis is in a controlled, secure environment free from contaminants
Scoring: (+0.5) describes inventory management system, (+0.5) procedures for audits, (+0.5) conduct audits at a greater frequency than once a month, (+0.5) product security procedures, (+0.5) limits quantity of cannabis (pg. 69), (+0.5) secured product storage and locked display cases (pg. 69); (+0.5) commitment to reinforced vault (pg. 80); (+0.5) procedures for contacting law enforcement.

Access Control Systems and Visitor control to prevent unauthorized access.

Inventory control and storage.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 15, Packet Page 145 c.

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Addressed Criteria (pg. 61): burglar alarm system monitored by an accredited central station via a primary cellular communicator; feature a battery backup for 24-hour operation during power outages; Alarm activations will be dispatched to a private patrol company, with onsite security responding within 20 minutes; Silent holdup buttons; Motion sensors will be installed inside the facility to monitor movement when the alarm system is activated; All exterior pedestrian doors and windows will be connected to the alarm system; Ground level windows will remain closed and covered from the inside to prevent visibility of cannabisrelated products; Safety film will be applied to all windows to prevent unauthorized entry; Additionally, the alarm system will monitor and report any arming or disarming activities outside normal hours to ensure supervised security.

Scoring: (+0.5) professionally installed/ monitored alarm, (+0.5) door sensors (pg. 66), (+0.5) panic buttons, (+1) use of motion sensor (pg. 75), (+1) glass break sensors (pg. 70), (+0.5) back up power Addressed Criteria (pg. 63): facility will implement an IP video surveillance system known as the Assessment & Surveillance System (VASS); This system will consist of cameras recording at a minimum resolution of 2MP (2048x1536) and 15 frames per second; The cameras will be fixed in position and record 24 hours a day; Recordings will be stored on-site for a minimum of 90 days and will display clear time and date information; VASS will cover various critical areas within the facility, including where cannabis goods are stored, limited access areas, the retail area, POS systems, security equipment areas, entrances/exits, and areas not easily visible from public streets; Exterior cameras will be weatherresistant and equipped with infrared illuminators or low-light capabilities to ensure visibility in different lighting conditions; a camera with an SD card will be installed to monitor the security equipment, independently logging any tampering attempts; Managers will be able to respond to incidents within one hour and transfer recorded data to other mediums such as DVDs or thumb drives; the facility will conduct regular security audits, maintenance, and testing.

Scoring: (+0.5) 24 hour surveillance system, (+0.5) HD resolution , (+0.5) back up power, (+0.5) equipment stored in locked, secure area, (+0.5) infrared technology; (+0.5). Applicants that received full points specified surveillance records would be maintained for 1 year and installed cameras to allow for facial recognition.

Addressed Criteria (pg. 67): Personnel Records will be kept in a locked area with access to managers and security guards only to comply with HIPAA and California Human Resource regulations; All records are stored and tracked
electronically for a minimum of 7 years; Employee training records will be maintained for a minimum of 7 years.

Scoring: (+1) record storage & retention complies with regulations, (+1) specifies retention periods, (+1) security measures described (pg. 72), (+1) cyber security measures (pg. 72)
Alarm systems.

Surveillance equipment.

Record Storage and retention.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 16, Packet Page 146

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Addressed Criteria (pg. 99-104): prioritizes minimizing or eliminating any nuisance caused to neighboring residents or businesses; engage with the community to understand concerns and develop preventative strategies; Common complaints and their preventative plans include trash cleanup, enforcing rules against loitering and public consumption, maintaining security, adhering to closing hours, and responsible signage; addresses odor control, facility maintenance, and safety measures; Their security standards include employing professional security personnel, using appropriate technology, and coordinating with law enforcement; They aim to be good neighbors, fostering positive relationships with the community and contributing to local business growth.

Scoring: (+1) outlines policies aimed at safeguarding surrounding properties, (+1) identifies security liaison and community relations contact, (+1) specifies communication procedures with neighbors, (+1) describes protocols for responding to security incidents and complaints Addressed Criteria (pg. 60): The landscape design of the facility prioritizes clear and unobstructed views of the surrounding areas to prevent entrapment zones; During non-operational hours, all perimeter doors will be armed and locked; Access to the building will be controlled by electronic keys, with only management possessing designated keys tailored to their job roles; All windows, both interior and exterior, should be equipped with a safety film to prevent the breaking of the window to prevent unwanted entry into the premises.

Scoring: (+0.5) describes physical barriers, (+0.5) describes materials used, (+1) security windows, (+0.5) secured doors, (+0.5) Landscaping and natural barriers. Applicants that received full points discussed the use of perimeter fencing, gates or bollards.

Addressed Criteria (pg. 60): exterior lighting at the facility will utilize full cutoff fixtures to minimize glare and light trespass; provide sufficient brightness for easy identification of individuals on the property during nighttime; The color temperature of the lighting will range between 2700K and 4100K, with a color rendering index of 80 or higher and a light loss factor of at least 0.95; All exterior sides, walkways, alcoves, and passageways will be illuminated to maintain a minimum of 1/3 foot candles per square foot of surface area at a 6:1 average minimum ratio; Any broken or damaged exterior lighting will be repaired or replaced within 48 hours of detection; Additionally, the exterior lighting will be shielded or designed to prevent spill-over illumination onto adjacent streets and properties.

Scoring: (+0.5) describes extent of coverage, (+0.5) describes placement and types, (+1) addresses brightness levels, (+1) plans for maintenance.

Applicants that received full points discussed the use of motion activated or continuous exterior lighting systems.

Perimeter Security: A description of perimeter security, including but not limited to:

Protecting surrounding properties.

Physical barriers.

Exterior lighting.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 17, Packet Page 147 d.

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Addressed Criteria (pg. 69-78): outlines comprehensive measures for secure storage of cannabis products; outlines protocols for transferring cannabis products within the premises, receiving shipments from licensed distributors, and delivering products to customers; comprehensive Currency Management Plan, involving finance, operations, and compliance teams, thoroughly tested at existing locations Scoring: (+10) Thorough, detailed, and strategic plan provided Addressed Criteria (pg. 60): The facility will have a security guard present on-site for 12 hours each day, seven days a week, to ensure security and patrol the premises during operational hours; The guard will monitor movement both inside and outside the facility using surveillance cameras, including the parking lot area, and will oversee staff leaving at night; Only qualified managers or security guards on duty will admit staff and vendors to the facility; access to the retail area will always be monitored by security guards during operational hours; The security guard will maintain control over individuals on-site and disperse any loiterers, promptly reporting unauthorized persons and requesting additional personnel if necessary; In case of an immediate threat, the manager or security guard will either call 911 or activate a silent holdup button.

Scoring: (+0.5) 1 guards, (+0.5) professional security guards, (+1) clearly defined responsibilities. Applicants that received full points considered factors such as peak business times and proposed 24 hour onsite security.

Employee Training and Policies: A description of employee training and general security policies to protect the physical safety of employees
Addressed Criteria (pg. 8-12): Training covers safe cannabis use, regulatory compliance, security measures, and customer service; Responsibility for training lies with the Chief Operating Officer and General Manager, who oversee the creation and delivery of modules; Employee progress is tracked through meticulous records kept for at least seven years; The training curriculum includes core topics like regulatory inspection preparedness, maintaining agent status, professional conduct, security, emergency protocols, diversion prevention, and inventory management; Functional training is tailored to job-specific tasks such as retail operations, POS system use, and product knowledge; Annual training ensures employees stay updated on regulations and best practices. IAM also offers certifications in areas like Cal OSHA and ServSafe to enhance employee skills and career development.

Scoring: (+1) comprehensive training, (+1) demonstration of risks with measures to mitigate, (+1) formal training & annual refreshers and scheduled drills
SECTION D: STORAGE AND TRANSPORTATION PLAN (10 POINTS)
Storage and Transportation Plan: A plan detailing the procedures for: Safely securing, storing, and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

SECTION E: LABOR AND EMPLOYMENT PLAN (20 POINTS)
On-site security guards and their proposed guard hours and responsibilities.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 18, Packet Page 148

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Addressed Criteria (pg. 79-81): commit to hiring 100% of their staff from Monterey County, with at least 50% of hires coming from the City of Monterey; emphasizes diversity and inclusion in its hiring practices, focusing on minority and disadvantaged groups, and supporting individuals impacted by socioeconomic disparities, the War on Drugs, and incarceration; hosts career fairs and collaborates with community partners, such as veterans' services offices and local colleges; provide opportunities for resume reviews and offer educational presentations to help candidates explore employment opportunities; covering the costs associated with education and training; apprenticeship program aims to provide opportunities for individuals who may face barriers to access Scoring: (+2) detailed action plan for local hiring and outreach; (+1) 50% local hire commitment, (+1) funding for certifications, degrees, and specialized skills training. Applicants that received full points committed to more than 75% local hire from the City of Monterey.

Addressed Criteria (pg. 81-83): Initially, plans to have a staff of 10 employees; At full capacity, the staff is expected to increase to a total of 18 plus 3 person management
Scoring: (+0.5) # of employees at initial startup; (+0.5) # of employees at full operation, (+1) commitment to greater than 15 employees Addressed Criteria (pg. 83-85): detailed response provided for all positions identified and their responsibilities
Scoring: (+1) comprehensive identification of all positions and responsibilities
Addressed Criteria (pg. 85-86): offer a starting wage of $23.20 for the lowest-earning position; wages provided for all positions Scoring: (+2) identification of wages for all positions; (+1) wages equal to State minimum, (+1) commitment to wages equal to Monterey County living wage, (+1) commitment to wages greater than Monterey County living wage
Local Hire: Describe the Applicant’s plans for local outreach and hiring of residents of the City of Monterey for open positions and/or compensation for continuing education, and any other actions proposed by the Applicant that are intended to benefit the local workforce and/or Applicant’s local employees.

Number of Employees: Identify the number of employees at initial opening, and the maximum number of employees when the business is at full capacity.

Employee Responsibilities: Identify all positions to be employed at the proposed business, and their responsibilities.

Employee Wages: Identify the wages provided to all employees.

Employee Benefits: Identify the benefits provided to all employees, including health care, vacation, and medical leave, to the degree they are offered as part of employment.

Addressed Criteria (pg. 86-87): health insurance coverage, with full-time employees receiving 50% coverage of their premiums and part-time employees receiving a healthcare stipend or the option to join the company's plan; All employees can participate in the dental care program, with full-time employees receiving 50% coverage of their premiums; vision insurance to all employees, covering 100% of premiums for fulltime employees; Flexible Spending Account (FSA); Maternity & Paternity Leave; 401K retirement savings plan for full-time employees, matching 50% of employee contributions up to 6% of their salary; employees receive a 20% discount on products; Paid Time Off & Paid Holidays; Sick Days; paid time off for volunteering; Uncompensated Time Off; Union Membership
Scoring: (+1) health care provided for part-time employees; (+1) health care provided for full-time employees, (+1) commitment to 50% of premiums, (+1) additional benefits. Full points to applicants providing Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 19, Packet Page 149 100% premium coverage.

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30.00 30.00

1. 10.00 10.00
SECTION F: LOCAL ENTERPRISE AND ENGAGEMENT PLAN (30 POINTS) Community Engagement: A description of community engagement including past, present, or planned activities that demonstrate how the cannabis business plans to integrate into the community, and involvement in local non-profits/charitable/volunteer organizations.

Addressed Criteria (pg. 90-95): plan to partner with local charities and non-profit organizations to address issues such as hunger, homelessness, education, youth development, and public services; ownership team has a history of philanthropy, and they intend to continue their tradition of giving back to the community by supporting projects and organizations aligned with their values; Monetary contributions will be made to a Community Benefits Fund, with a commitment of up to 4% of Gross Receipts; sponsor events, support community organizations, and advocate for causes that benefit the community; plan to establish partnerships with organizations like Shared Adventures, Kiwanis Club of Monterey, United Way Monterey County, and others to foster community engagement and support various initiatives; offers programs for seniors, veterans, and individuals facing economic hardships, including discounts on medicine and hosting expungement clinics to help individuals clear their criminal records related to cannabis offenses; encourages employee volunteerism by providing paid volunteer hours and supporting community organizations focused on youth addiction prevention and drug education; aim to partner with organizations like Valley Health Associates, Sun Street Centers, and Community Human Services to address substance abuse issues among youth and provide support services; Community Relations Director will work with stakeholders to implement sustainable programs to educate youth and curb cannabis use in the City of Monterey.

Scoring: (+1) description of past, present, and planned community engagement activities, (+1) variety of engagement strategies, (+1) Illustrates positive and effective impact on community, (+1) identifies partnerships with local non profits, (+1) describes collaborative initiatives, (+1) demonstrates commitment to long-term involvement, (+1) showcases innovative and creative approaches, (+1) commitment to onetime monetary commitment, (+1) commitment to annual monetary commitment, (+1) commitment to annual monetary commitment > $25,000 per year
Employee Non-discrimination Policies: Describe how your business will comply with federal employee non-discrimination policies.

Addressed Criteria (pg. 88): prioritizes hiring individuals from disproportionately impacted communities and offers competitive wages and benefits; It aims to become a leader in integrating diversity and inclusion, partnering with like-minded organizations; complies with guidance from the EEOC and aims to provide equal opportunities to all applicants; Goals include maintaining a diverse staff, focusing on minority and disadvantaged populations, and establishing partnerships with aligned organizations; committed to providing employment opportunities and services to various disadvantaged groups, reflecting its values and promoting equal opportunities; Training on diversity and inclusion is conducted annually to ensure adherence to company policies and foster a safe, inclusive work environment.

Scoring: (+2) Comprehensive description provided
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 20, Packet Page 150

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Community Alignment: A description detailing the applicants:

Connection to the City, ability to serve the City, familiarity with the City, and innovative business models consistent with the City’s community.

Addressed Criteria (pg. 95-104): James Velarde, IAM's Community Liaison/Owner, has deep roots in Monterey, bringing over 18 years of experience and a commitment to community service; James and his family have actively contributed to the community, particularly during the Covid-19 pandemic, by organizing food donation programs and supporting local initiatives; alignment with Monterey's values and cannabis policies is evident through their proactive approach to compliance, education, and environmental sustainability; plan to organize educational workshops on responsible cannabis consumption and partner with local organizations for environmental initiatives like beach cleanups; committed to addressing potential issues related to their operations, such as noise and traffic, by appointing James Velarde as the primary point of contact for community engagement. They will establish feedback mechanisms, conduct regular community assessments, and proactively seek feedback from neighboring businesses to address concerns promptly and effectively; dictated to being a positive addition to the neighborhood and intends to manage their facility in a manner that aligns with community values and avoids adverse impacts
Scoring: (+1) demonstrates strong connection to City, (+1) illustrates understanding of City culture and values (+1) examples of services, products, or initiatives, (+1) innovative business model, (+1) emphasizes sustainability, inclusivity, and social responsibility
Ability to conform with the City’s general plan, any applicable specific plans, and design standards.

Addressed Criteria (pg. 104-111): aim to be a good neighbor, minimizing disturbances and aligning with the community's well-being; Specific plans for various areas, such as Cannery Row and Downtown, guide their approach to ensure harmony with the neighborhood's character and vision; committed to complying with zoning regulations, selecting suitable locations, and engaging with zoning authorities proactively; Their design strategy prioritizes local standards, blending seamlessly with Monterey's architecture and culture while emphasizing environmental sustainability; The organization pledges to maintain a secure and compliant facility, both indoors and outdoors, ensuring accessibility, safety, and cleanliness while contributing positively to the community's economic growth and well-being
Scoring: (+5) Through, detailed, and strategic plan provided.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 21, Packet Page 151

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Local Business Partnerships: A description of any local business partnerships or collaborations your cannabis business has established or plans to establish within the City.

Addressed Criteria (pg. 111-113): committed to benefiting the Monterey community by revitalizing unused buildings, bolstering infrastructure, and partnering with local businesses and contractors; strategy involves sourcing materials and services locally, prioritizing suppliers who share their values; They aim to positively impact the local economy, improve perceptions of the cannabis industry, and integrate seamlessly with the community's economic vitality; plans to collaborate with small, local businesses across various sectors, emphasizing diversity and environmental consciousness; will engage with the Monterey Peninsula Chamber of Commerce, sponsor networking events, and offer exclusive promotions to community businesses; will provide dedicated shelf space to cannabis manufacturing businesses in Monterey, supporting the local economy and providing customers with unique products and experiences Scoring: (+10) Through, detailed, and strategic plan provided.

Sustainable and Equitable Business Practices: A description of sustainable and equitable businesses practices, including but not limited to:

Steps the cannabis business will take to reduce the carbon footprint of cannabis by reducing greenhouse gas emissions.

Addressed Criteria (pg. 113-116): dedicated to implementing energyefficient operations, beginning with smart energy management policies and systems to monitor and reduce consumption; They will replace older appliances with LEED certified alternatives, enforce policies to conserve energy, and conduct regular energy audits; prioritize sustainable transportation practices, including the use of electric or hybrid vehicles for deliveries and optimizing delivery routes to minimize fuel consumption; Waste reduction initiatives involve compostable packaging, reducing single-use plastics, and collaborating with suppliers to minimize packaging waste; prioritize responsible sourcing, preferring distributors and brands with Clean Green certification and adherence to environmental standards in cultivation and processing; conducts regular audits to ensure environmental compliance throughout their supply chain.

Scoring: (+5) thorough, detailed, and strategic mention of steps to reduce carbon footprint
SECTION G: SUSTAINABILITY (20 POINTS)
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 22, Packet Page 152 b.

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Steps the cannabis business will take to ensure the cannabis it receives is sourced from cultivators/manufacturers that provide safe working conditions and pay wages to laborers for work performed.

Describe energy conservation/sustainability features to be included in the project (as example, commitment to LEED certified, minimum percentage of on-site electricity generation, or installation of EV chargers, etc.).

Addressed Criteria (pg. 116-117): aim to achieve LEED certification by adopting best management practices and standard operating procedures (SOPs) in various areas; plans to incorporate energy-efficient design elements such as LED lighting, energy-efficient HVAC systems, and insulated windows to minimize energy consumption; install waterefficient fixtures and regulate the irrigation system to conserve water; committed to harnessing renewable energy, particularly solar power, at their retail location; They aim to generate 20% to 40% of their electricity needs through solar panels, contributing to environmental conservation; prioritizes the use of sustainable, recycled, and locally sourced materials during construction and fit-outs to reduce environmental impact and support the local economy; plans to install EV charging stations at their retail site for customers and staff, partnering with GiddyUp for EV charging solutions.

Scoring: (+10) thorough, detailed, and strategic mention of energy conservation or sustainability features
Addressed Criteria (pg. 118-120): significant emphasis on ethical sourcing of cannabis products, ensuring the welfare and rights of individuals involved in cultivation and manufacturing; They partner with distributors committed to ethical standards, social equity, environmental stewardship, health and safety, and transparent supply chains; selects distributors like FlowKana, Indus, and Nabis, who exemplify these values; Compliance procedures verify distributor licenses, adherence to testing requirements, and ethical sourcing practices; Ongoing evaluation includes performance reviews, communication protocols, and license checks to maintain product quality, sustainability, and ethical standards; approach ensures their cannabis products are sourced responsibly, reflecting their commitment to quality, sustainability, and ethical business practices.

APPLICATION SCORE
185.50 Points Awarded
200.00 Points Available

92.75% Score
Points
Awarded
Points
Available

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SECTION A: QUALIFICATIONS/BUSINESS PLAN (40 POINTS)
Cannabis Business Experience: Describe the business owner’s prior experience in owning, managing, and operating a legally permitted or licensed retail cannabis business in the United States, or other business in a similarly State regulated activity.

City of Monterey Retail Cannabis Business Permit Application Phase 2 Application Evaluation Report
CBP24-008 - Monterey Organic
Tracking Number - Applicant Name/DBA
Retail Storefront and Delivery
License Type
Addressed Criteria (pg. 1-5; PDF #5): owners with 12+ years of cannabis industry experience; 1 of 3 owners with prior retail cannabis experience; 1 owner with experience in State regulated activities; 2 operational retail locations; 3 cannabis manufacturing businesses
Scoring: (+3) more than 51-75% ownership team with experience in Cannabis or State regulated activity , (+2) 10-14 years of cannabis experience, (+1) 2 retail locations
Addressed Criteria (pg. 6-7): Exceptional understanding of the cannabis industry. Provides an exhaustive and comprehensive overview of industry best practices and state regulations, including nuanced insights and advanced analysis. Demonstrates a sophisticated understanding of how regulations are incorporated into existing or prior legal businesses, with exemplary examples and in-depth analysis.

Comments
ATTACHMENT 4
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 24, Packet Page 154

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Business Operations: Describe the day-to-day operations which meet industry best practices for the type of retail cannabis business you are applying this should include, at a minimum, a description of the following:

Hours of operation. Addressed Criteria (pg. 11): operational hours from 9am-9pm daily; Scoring: (+1) proposed hours align with City regulations Ownership Team Involvement: Describe the involvement of the ownership team in the day-today operation and management of the proposed business.

Professional Certifications/Training: Describe any professional certifications and/or formal training of the owners, managers or staff involved in the day-to-day operations and/or oversight of the proposed cannabis business.

SECTION B: BUSINESS PLAN (40 POINTS)
Addressed Criteria (pg. 7-8): Ownership team comprised of CEO Mike Mekk, CFO Dr. Arash Nayeri, and COO/Community Liaison Jenna Patton Sesma; Mike - overseeing all aspects of the company's operations, provides hands-on guidance to ensure seamless daily operations, compliance with regulations, and the establishment of strong relationships with vendors and contractors; Dr. Arash Nayeri - financial support and strategic direction to the company ;focus may not be on dayto-day operations, his strategic vision and expertise in medicine contribute to educational outreach initiatives about the therapeutic benefits of cannabis, combating stigma, and promoting a positive narrative around its use; Jenna - primary point of contact for coordinating with the local community, spearheading local hiring initiatives, engaging with local agencies and residents, and actively participating in community-oriented activities.

Scoring: (+9) strong involvement of ownership team
Addressed Criteria (pg. 9-10): CEO Mike Mekk - Master's degree in Banking, Corporate, Finance, and Securities Law from North-Caucasus State Technical University; completed California METRC Track and Trace training; Jenna Patton Sesma is a licensed esthetician with the California Board of Barbering and Cosmetology, having obtained her Esthetician Degree from Marinellos School of Beauty; Dr. Arash Nayeri holds a Doctor of Medicine degree from Vanderbilt University School of Medicine, with additional education including fellowships and residencies in cardiology from the University of California, Los Angeles (UCLA); various medical certifications He is also a Fellow of the American College of Cardiology; extensive training program to ensure that owners Jenna Sesma and Dr. Nayeri achieve the same level of expertise in the cannabis industry as CEO Mike Mekk
Scoring: (+8) significant certifications or formal training mentioned for owners, managers, or staff.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 25, Packet Page 155 b.

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Addressed Criteria (pg. 15-18): Meadow POS system integrates seamlessly with California’s METRC Track-and-Trace system; Every stage of cannabis product lifecycle documented, ensuring compliance and deterring illicit activities; Updates made to METRC Track and Trace account automatically through Meadow POS system; Record-keeping includes receipt of cannabis products, rejections, movements, purchases, returns, and waste disposal; Detailed information recorded in Track-and-Trace/METRC records for compliance; Owner Mike Mekk oversees METRC account system management and staff training.

Scoring: (+1) detailed explanation provided
The accounting software system to be used to provide point of sale data and audit trails of both product and cash.

Addressed Criteria (pg. 18-20): Meadow POS system seamlessly integrates with QuickBooks software to optimize financial operations; QuickBooks payroll management, tax filings, and expense tracking, ensuring precision and compliance; manages vendor payments, tracks expenditures, and maintains transparent financial records; Daily audits conducted by the General Manager reconcile cash on hand with sales records, ensuring accuracy; Annual audits are performed by third-party accounting services to verify the accuracy of financial records Scoring: (+1) Comprehensive description provided
If applicable, the Customer check-in procedures.

The Point-of-Sale system (including name) to be used and how it will interact with the state’s mandated track and trace system. Identify the number of Point- of-Sales terminals to be used when the business is at full capacity.

Addressed Criteria (pg. 13-15): Utilize METRC-integrated Meadow POS software system for comprehensive product tracking; Meadow POS system seamlessly integrates technology for inventory and customer management; Generates sales records automatically and provides realtime insights for informed decision-making; Facilitates efficient inventory tracking and automated notifications for low-stock items; Daily limits outlined for adult-use and medicinal customers; Transactions recorded simultaneously in Meadow and state METRC Track and Trace System; 7 POS stations installed to accommodate projected customer volume; Express Pickup area for pre-prepared orders.

Scoring: (+0.5) POS name, (+1) description of how it interacts with METRC, (+0.5) # of POS stations
Addressed Criteria (pg. 11-13): Security personnel stationed at the entrance conduct thorough ID checks; ID verification process involves using a mobile POS device with SmartID scan capabilities; Customers are then directed to the Reception Desk, where they must present their ID again; adults over 21 are admitted, and medical customers must provide valid government-issued ID and a county-issued medical identification card or physician's recommendation; Customer Profile is established within the POS; Access to the Retail Sales Area is monitored by electronically locking doors controlled by Reception staff; Scoring: (+1) check-in procedures exceed City and State requirements; customers under age of 21 with medical recommendation not allowed on retail premise (pg 30)
How compliance with the state’s track and trace system for cannabis and cannabis products will be achieved.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 26, Packet Page 156 f.

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The number of customers to be served per hour/day. Addressed Criteria (pg. 20): approximately 280 customers daily, increasing to 320 in year 5; 23-26 customers per hour;
Scoring: (+1) estimation provided; supported by clear rezoning and market analysis
Location(s) and procedures for receiving deliveries during business hours. Addressed Criteria (pg. 26-29): Deliveries scheduled during non-rush hours between 9 AM and 9 PM to minimize disruption; Security will be notified upon vendor arrival, with deliveries coordinated through an online calendar service; Vendors will park in designated areas, and access to the store will be regulated by managerial staff; Products will undergo thorough inspection and verification before being transferred to a secured vault; Compliance with labeling standards, including childresistant and tamper-evident packaging, will be rigorously enforced; Products failing to meet standards will be rejected and returned to distributors; Detailed records of product information will be maintained in compliance with regulatory requirements; Delivery vendors will provide intake logs, and deliveries will occur within standard business hours, with security measures in place to prevent unauthorized access; Managerial staff will manage product organization and storage postdelivery.

Scoring: (+1) comprehensive description that aligns with regulations If applicable, describe delivery service procedures, number of vehicles, and product security during transportation.

Addressed Criteria (pg. 29-33): delivery procedures provided; 2 gasefficient eco-friendly delivery vehicles; security procedures provided for vehicles and products during delivery
Scoring: (+1) Applicant proposes to provide adult-use and medicinal delivery; provides comprehensive description of procedures The proposed product line, including brand names, to be sold at the business, and estimate the percentage of sales of flower and manufactured products.

Addressed Criteria (pg. 21-26): diverse and inclusive selection of cannabis products from brands known for prioritizing education, safety, and compliance; meticulously review production practices, compliance records, testing results, and customer feedback to ensure product quality and safety; initially offer popular brands while also supporting local craft businesses; have partnerships with reputable brands and distributors; they have an in-house brand, Mission Organic Farms, which offers high-quality products at competitive prices; utilizes data-driven insights to curate their inventory, focusing on brands with excellent reputations and customer loyalty; Their product selection includes flower (35%), vape cartridges (17%), edibles (13%), pre-rolls (23%), concentrates (6.5%), tinctures (4%), topicals (0.5%), and accessories (1%), catering to diverse consumer preferences.

Scoring: (+1) Comprehensive description of product line, supported by reasoning and market analysis
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 27, Packet Page 157 j.

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How cannabis and cannabis products will be tracked and monitored to prevent diversion. Addressed Criteria (pg. 42-44): meticulous tracking and compliance with regulations using the Meadow POS system, integrating seamlessly with California's METRC Track-and-Trace system; system facilitates easy verification of product origin, storage, and movement, with automatic updates synced between Meadow and METRC accounts during key events; storage practices prioritize security and product quality, with limited access to secure storage areas and careful monitoring of product movements; Measures are in place to prevent external and internal diversions, including comprehensive surveillance, background checks for employees, and customer education on safe storage practices; Inventory audits, conducted daily and weekly, ensure accurate records and prompt resolution of any discrepancies, with immediate notification to regulatory authorities in case of significant discrepancies.

Scoring: (+1) comprehensive description provided
The proposed waste management plan, including waste disposal locations, security measures, methods of rendering all waste unusable and unrecognizable, and the vendor in charge of disposal.

Addressed Criteria (pg. 44-45): minimal waste disposal challenges compared to other license types like manufacturers; Waste primarily stems from product expiration and degradation of display items; Responsibility for disposal lies with the distributor if a product expires upon receipt; otherwise, the retailer must dispose of expired or degraded product; Segregated cannabis waste is securely stored in locked receptacles within a limited-access Storage Area; Authorized personnel and licensed waste haulers handle disposal, with detailed documentation and compliance with regulatory standards; GAIACA, a licensed cannabis waste disposal company, ensures proper handling and destruction of waste, with meticulous recording of disposal activities for transparency and accountability.

Scoring: (+4) thorough and detailed description provided and compliant with regulations
The proposed odor control plan to prevent any odor generated inside the location from being detected on adjacent properties or public rights-of-way, or within any other unit located within the same building as the cannabis business if the cannabis business occupies only a portion of a building.

Addressed Criteria (pg. 49-52): install or retrofit HVAC systems with approved air purification systems and Activated Carbon Filtration (ACF) units to eliminate odors comprehensively; systems will undergo routine maintenance to ensure optimal functionality; the building system will establish negative air pressure to contain internal odors effectively; Staff will receive comprehensive training to prevent detectable odors outside the building, and strict protocols will be in place for odor control system maintenance; In the event of an odor complaint, the company will conduct olfactometer training, seal leaks and gaps, fine-tune ventilation systems, and leverage carbon filter expertise to address the issue promptly and effectively.

Scoring: (+4) thorough and detailed description provided; air filtration and negative air pressure
How the Cannabis Business will conform to local and state laws. See MMC Chapter 7, Article 7 as they pertain to retail establishments in the City of Monterey.

Addressed Criteria (pg. 33-42): The application includes a dedicated table that compiles references detailing how operations will align with local and state regulations
Scoring: (+1) comprehensive description provided; regulations referenced throughout application
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 28, Packet Page 158

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2. Operational Security: A description of operational security, including but not limited to:

Provide proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City.

Provide a pro forma for at least three years of operations.

Provide a schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

SECTION C: SECURITY PLAN (40 POINTS)
Security Plan: The Application must include a security plan prepared by a qualified professional.

The security plan can be prepared with in-house staff or a third-party security consultant but must clearly demonstrate that it meets the qualified professional standard to receive the appropriate points for each criterion in this section. The Applicant must also submit the lifi ti f th ( ) i th it t if th t th t th lifi d
Addressed Criteria (pg. 67-68): contracted with Carroll Security Consulting, LLC (Matt Carroll, License #16545)
Scoring: (+1) security plan developed by qualified third-party professional
Finances:

Addressed Criteria (pg. 48-52): secured $1.7 million in available funds; The total startup budget amounts to $1.4 million, with excess working capital of $300k; financial plan, covering construction costs, operational expenses, maintenance, employee compensation, equipment purchases, property lease, security measures, city and state fees, utility costs, product purchases, and other anticipated costs; aims to maintain its construction budget within $400,000, with an estimated cost of $200 per square foot for a property of approximately 2,000 square feet; Operational costs for the first six months are projected at $99,492.64 monthly, including employee compensation, rent, utilities, and security expenses;
Scoring: (+5) comprehensive budget supplemented by market analysis; sufficient capital
Addressed Criteria (pg. 53-62; PDF File #4): $1.7 million in accessible funds, as evidenced by documentation provided in PDF File #4 Scoring: (+5) detailed proof of capitalization provided; funding is fully sufficient for proposed budget
Addressed Criteria (pg. 63-65):

Scoring: (+5) meticulous and detailed 5-year pro forma backed by market analysis
Addressed Criteria (pg. 57-59): aims to open and commence operations within 12-15 months following local approval; After the application process initial focus will be on securing a location; Subsequently, efforts will be directed towards three key facets: Licensing, Construction, and Operations. Licensing involves obtaining various permits and licenses from the city and state, with construction being the longest phase; plans to engage local businesses for construction and renovation work; Operations include staff recruitment, product stocking, and training; The company aims to complete the opening process faster than projected, leveraging existing property options, parallel processing of tasks, and potential expedited city processes.

Scoring: (+4) Comprehensive schedule provided. Applicants that recieved full pointed committed to opening in 6 months
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 29, Packet Page 159 a.

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Access Control Systems and Visitor control to prevent unauthorized access.

Inventory control and storage.

Addressed Criteria (pg. 69-71): establish limited-access areas within its premises; maintain a log of non-employee individuals granted access to these areas; employees will wear identification badges at all times; Key controls will be implemented, with keys with electronic access control and credentials issued and collected daily; Visitors will be logged, and visitor badges will be required during their visit; Customers under 21 years old will not be allowed on the premises; No live cannabis goods will be displayed in the reach of customers in the Retail Area; Restrooms will remain locked and under management control, and customer restrooms will not be permitted; Exit procedures will involve departing through designated exits, with door redundant exit vestibules equipped with interlocking door controls to prevent unauthorized entry Scoring: (+0.5) describes access control systems, (+0.5) covers all entry points, (+0.5) limited access areas, (+0.5) procedures for managing and controlling visitors,(+1) use of key card access control system, (+0.5) visitor procedures and log described, (+0.5) visitor badge and escort policies
Addressed Criteria (pg. 71-72): Only enough cannabis and cannabis products to meet daily demand will be available for sale in the retail area, with additional products stored securely; Live cannabis goods will not be displayed in the retail area, and product samples will be shelved out of reach of customers; Medical cannabis will only be delivered to individuals aged 18 and older with valid identification; California Cannabis Track-and-Trace (CCTT) system to track inventory and movement of cannabis products and will conduct regular inventory audits; Any significant loss or security breach will be reported to the Monterey Police Department; Internal theft prevention measures include background checks for all staff, prohibiting personal visitors, requiring employee consent to search policy, monitoring employee movements, escorting vendors on-site, providing whistleblower protections, and mandating reporting of civil judgments and criminal convictions.

Scoring: (+0.5) describes inventory management system, (+0.5) procedures for audits, (+0.5) audits at a greater frequency than once a month (pg 42), (+0.5) product security procedures, (+0.5) limits quantity of cannabis, (+0.5) secured product storage and locked display cases,(+0.5) commitment to reinforced vault (pg 86); (+0.5) procedures for contacting law enforcement.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 30, Packet Page 160 c.

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Alarm systems.

Surveillance equipment.

Addressed Criteria (pg. 72-73): installing and maintaining a monitored real-time alarm system, installed by a licensed Alarm Company Operator (ACO) listed with Underwriters’ Laboratory (UL); include panic buttons for direct notification to the Monterey Police Department and will cover all entry points, roof access vulnerabilities, and exterior windows; obtain an alarm permit from the Monterey Police Department and make all information related to the alarm system available to them upon request; battery backup for at least 24 hours, cellular backup for continued notifications in case of phone line disruption, line monitoring for uninterrupted communication, and non-emergency notification technology for system failures; audit features allowing the Security Director to audit and export all system activity for at least 90 days.

Scoring: (+0.5) professionally installed/ monitored alarm, (+0.5) door sensors (pg 49), (+0.5) panic buttons, (+1) use of motion sensors (pg 84) , (+1) glass break sensors (pg 76), (+0.5) back up power
Addressed Criteria (pg. 66-67): comprehensive video surveillance system; Cameras will be strategically placed to cover all areas where cannabis is stored, including limited-access areas, points of entry and exit, and the building's exterior; Surveillance displays will be provided at various locations within the premises for employee monitoring; Recordings will be accurately date and time stamped, accessible to regulatory agencies upon request, and stored for a minimum of 365 days; system will meet or exceed various standards, including continuous operation, facial identification capability, sufficient backup power, remote access capability, high-resolution recording, archiving footage for at least 365 days, and producing recordings in standard formats; Cameras will have a resolution of no less than two megapixels, with specific resolutions for entry points and exterior areas; system will incorporate Live Video Monitoring Analytics for each entrance/exit, allowing for remote engagement with suspects through exterior speakers; Monitoring services will be operational during non-business hours and performed by licensed third-party operators.

Scoring: (+0.5) 24 hour surveillance system, (+0.5) HD resolution , (+0.5) records maintained for one year; (+0.5) back up power, (+0.5) equipment stored in locked, secure area, (+0.5) facial recognition, (+0.5) infrared technology. Remote access capabilities, but access not provided to law enforcement
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 31, Packet Page 161 e.

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Perimeter Security: A description of perimeter security, including but not limited to:

Protecting surrounding properties.

Record Storage and retention.

Addressed Criteria (pg. 75): prominently displaying signage with the store manager's contact information for reporting concerns, posting notices throughout the premises outlining good neighbor policies, and conducting semi-annual visits to neighboring businesses and residences to solicit feedback; will station two security officers on-site, with one tasked specifically with patrolling the exterior areas up to 100 feet away from the premises to ensure safety and address any issues that may arise.

Scoring: (+1) outlines policies aimed at safeguarding surrounding properties, (+1) identifies security liaison and community relations contact (pg 67), (+1) specifies communication procedures with neighbors, (+1) describes protocols for responding to security incidents and complaints
Addressed Criteria (pg. 74-75): maintaining surveillance records for a minimum of one year, accessible within 24 hours upon request by the City Manager, Police Chief, or their representatives; will safeguard consumer privacy and sensitive financial data by encrypting and password-protecting its network infrastructure; Access to business data systems will be limited to authorized personnel trained in secure records management, with role-based authentication and strict prohibition of login sharing; Security measures like password lockouts, timeouts, and strong password requirements will be implemented; acknowledges the authority of the Department of Cannabis Control and the City of Monterey to examine its books and records as necessary, ensuring records are kept in a format accessible for inspection, whether in hard copy or electronic form, as requested by the regulatory agencies.

Scoring: (+1) record storage & retention complies with regulations, (+1) specifies retention periods, (+1) security measures described, (+1) encryption
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 32, Packet Page 162 b.

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Physical barriers.

Exterior lighting.

Addressed Criteria (pg. 76): ensure that all areas not open to the public are secured with closed and locked doors during public operating hours; Windows and roof hatches will also be secured from the inside to prevent unauthorized entry, with quick-release mechanisms for emergency exits; maintain security capabilities during power outages, with doors equipped for manual operation in case of electronic access panel failure; Exterior glass will be monitored for breakage and protected with steel scissor gates after business hours; Roof access will be restricted, and roof entry points will be reinforced against intrusion; commercial-grade locks meeting ANSI/BHMA Grade 1 standards, and those accessing sensitive areas will require electronic access fobs; doors to the Product Vault and management office will have additional locking systems for after-hours security, with hidden-shackle padlocks and secure storage during business hours.

Scoring: (+0.5) describes physical barriers, (+0.5) describes materials used, (+1) shatter proof glass, (+1) scissor gates, (+0.5) secured doors, (+0.5) Landscaping and natural barriers (pg 77)
Addressed Criteria (pg. 77): exterior lighting using LED lamps with full cutoff fixtures to minimize glare and light trespass; color temperature will range between 2700K and 5000K, with a color rendering index of 80 or higher and a light loss factor of .95 or better; Entry drives, parking areas, and walkways will be illuminated to specified levels to ensure safety and visibility while minimizing spill-over illumination to adjacent areas; Landscaping will follow specific guidelines to enhance natural surveillance and eliminate hiding areas; will not use motion-activated lighting due to concerns regarding extended periods of darkness, potential video loss during transitions, offender site selection based on perceived lighting conditions, and negative impacts on eyewitness accuracy. Scoring: (+0.5) describes extent of
coverage, (+0.5) describes placement and types, (+1) continuous lighting, (+1) addresses brightness levels, (+1) plans for maintenance Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 33, Packet Page 163 d.

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Employee Training and Policies: A description of employee training and general security policies to protect the physical safety of employees
Addressed Criteria (pg. 78-85): Security Director to ensure all employees understand their security roles and responsibilities; Mandatory security training will cover various aspects including equipment operation, emergency procedures, and robbery prevention; Employees will be trained to identify threats, implement mitigating strategies, and respond accordingly;
Scoring: (+1) comprehensive training, (+1) demonstration of risks with measures to mitigate, (+1) formal training & annual refreshers and scheduled drills (pg 37)
SECTION D: STORAGE AND TRANSPORTATION PLAN (10 POINTS)
Storage and Transportation Plan: A plan detailing the procedures for: Safely securing, storing, and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

SECTION E: LABOR AND EMPLOYMENT PLAN (20 POINTS)
Local Hire: Describe the Applicant’s plans for local outreach and hiring of residents of the City of Monterey for open positions and/or compensation for continuing education, and any other actions proposed by the Applicant that are intended to benefit the local workforce and/or Applicant’s local employees.

On-site security guards and their proposed guard hours and responsibilities.

Addressed Criteria (pg. 86-92): outlines comprehensive measures for secure storage of cannabis products; outlines protocols for transferring cannabis products within the premises, receiving shipments from licensed distributors, and delivering products to customers; comprehensive Currency Management Plan
Scoring: (+10) Thorough, detailed, and strategic plan provided Addressed Criteria (pg. 93-96): hire 90% of staff from local residents, backed by an Employee Social Contract outlining specific measures and goals; Efforts include community outreach, preference policies, and partnerships with local organizations and employment agencies; offer continuing education compensation to support employee development, particularly for individuals from social equity backgrounds; promoting economic equity and social responsibility by targeting residents falling into social equity categories for employment opportunities; utilize datadriven approaches to ensure inclusivity and create a pipeline for future positions
Scoring: (+2) detailed action plan for local hiring and outreach; (+2) 90% local hire commitment, (+1) funding for certifications, degrees, and specialized skills training
Addressed Criteria (pg. 77-78): maintain a contract with a statelicensed Private Patrol Operator; Security personnel must undergo background investigations by the California Department of Justice (DOJ) and FBI before licensure, with recurring checks during bi-annual renewals; Security officers must be at least 21 years old; Contracted services will include intrusion alarm response within 20 minutes, on-call uniformed guard services, remote access to the video surveillance system, and provision of two uniformed security officers on-site during all business hours; Security Officers assigned to the premises during business hours will have two distinct roles: Security Monitoring and Premises Patrol
Scoring: (+0.5) 2 guards, (+0.5) licensed by BSIS, (+1) clearly defined responsibilities. Applicants that received full points considered factors such as peak business times and committed to 24 hour onsite security Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 34, Packet Page 164

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Number of Employees: Identify the number of employees at initial opening, and the maximum number of employees when the business is at full capacity.

Employee Responsibilities: Identify all positions to be employed at the proposed business, and their responsibilities.

Employee Wages: Identify the wages provided to all employees.

Employee Benefits: Identify the benefits provided to all employees, including health care, vacation, and medical leave, to the degree they are offered as part of employment.

Addressed Criteria (pg. 101-104): healthcare coverage includes health, dental, and vision insurance, with 50% of premiums covered; benefits go beyond standard offerings and include health and wellness programs, retirement plans, and opportunities for career growth; Paid time off benefits include vacation, sick days, and volunteer time off; Ongoing education and job training opportunities
Scoring: (+1) health care provided for part-time employees; (+1) health care provided for full-time employees, (+1) commitment to 50% of premiums, (+1) additional benefits. Applicants receiving full points committed to 100% of premiums
Employee Non-discrimination Policies: Describe how your business will comply with federal employee non-discrimination policies.

Addressed Criteria (pg. 104-105): Equal Opportunity Employer policy, ensuring that employment decisions are based solely on merit, qualifications, and business needs, without discrimination based on various protected characteristics; Reasonable accommodations are provided for qualified applicants and employees with disabilities, as required by law; Discrimination or harassment based on protected characteristics is strictly prohibited, and employees are encouraged to report any instances of discrimination or harassment they experience or witness; zero-tolerance policy towards harassment and unwelcoming behavior; Retaliation against employees who report harassment or assist in investigations is also prohibited; Employees are urged to report any retaliatory conduct they experience or observe; operates with an Open Door Policy; Concerns should be brought to the attention of the immediate supervisor or manager, or escalated to another supervisor or the Owner if necessary; The company pledges to address concerns promptly and professionally, ensuring transparency in actions taken and maintaining confidentiality
Scoring: (+2) Comprehensive description provided
Addressed Criteria (pg. 100-101): offer a starting wage of $23.00 for the lowest-earning position; with higher compensation for other positions like accountant, general manager, and assistant general manager.

Scoring: (+2) identification of wages for all positions; (+1) wages equal to State minimum, (+1) commitment to wages equal to Monterey County living wage, (+1) commitment to wages greater than Monterey County living wage
Addressed Criteria (pg. 96): Initially, plans to have a staff of 10-12 employees; At full capacity, the staff is expected to increase to a total of 19 employees
Scoring: (+0.5) # of employees at initial startup; (+0.5) # of employees at full operation, (+1) commitment to greater than 15 employees Addressed Criteria (pg. 96-100): detailed response provided for all positions identified and their responsibilities
Scoring: (+1) comprehensive identification of all positions and responsibilities
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 35, Packet Page 165

27.00 30.00

1. 8.00 10.00

2. a.

4.00 5.00
Community Alignment: A description detailing the applicants:

Connection to the City, ability to serve the City, familiarity with the City, and innovative business models consistent with the City’s community.

Addressed Criteria (pg. 108-110): Jenna, owner and a resident of Monterey, is deeply involved in the community; volunteers extensively at her daughter's school, participates in community events, supports local businesses, and engages in activities that promote the well-being of Monterey residents; values align with those of the City of Monterey, focusing on enhancing quality of life, protecting the environment, fostering fiscal stewardship, developing a quality workforce, securing water sources, supporting affordable housing initiatives, promoting active mobility, preserving historic sites, and promoting transparent and inclusive governance; Through partnerships, educational initiatives, and community engagement, seeks to drive positive change in the cannabis industry and contribute to the overall well-being of the Monterey community
Scoring: (+1) demonstrates strong connection to City, (+1) illustrates understanding of City culture and values (+1) examples of services, products, or initiatives, (+1) emphasizes sustainability, inclusivity, and social responsibility. Applicant fails to describe innovative business models or strategies to aligns with the City's community values and needs
SECTION F: LOCAL ENTERPRISE AND ENGAGEMENT PLAN (30 POINTS) Community Engagement: A description of community engagement including past, present, or planned activities that demonstrate how the cannabis business plans to integrate into the community, and involvement in local non-profits/charitable/volunteer organizations.

Addressed Criteria (pg. 106-107): a track record of financial contributions and volunteer efforts aimed at improving social, economic, and policy aspects of the communities it serves; These efforts include donations to organizations like the Community Living Campaign, Cayuga Neighborhood Improvement Association, St. Jude Children’s Hospital, and support for law enforcement and healthcare initiatives; recognizes the unique needs of the Monterey community and pledges ongoing support through donations and partnerships with local organizations; Current commitments include covering catering costs for events, donating to Meals on Wheels, the Marine Mammal Center, and the Community Hospital of Monterey Peninsula; Planned initiatives include annual donations, revenue pledges, and ongoing support for organizations such as the Monterey Bay Aquarium and Community Human Services.

Scoring: (+1) description of past, present, and planned community engagement activities, (+1) variety of engagement strategies, (+1) Illustrates positive and effective impact on community, (+1) identifies partnerships with local non profits, (+1) describes collaborative initiatives, (+1) demonstrates commitment to long-term involvement, (+1) commitment to one-time monetary commitment, (+1) commitment to annual monetary commitment, Applicants that received full points pledged an annual monetary commitment > $25,000 per year and showcased innovative and creative approaches that go beyond traditional methods.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 36, Packet Page 166 b.

5.00 5.00

3. 10.00 10.00

20.00 20.00

1. Sustainable and Equitable Business Practices: A description of sustainable and equitable businesses practices, including but not limited to:

Ability to conform with the City’s general plan, any applicable specific plans, and design standards.

Addressed Criteria (pg. 110-113): prioritize integrating their facility design with the community's aesthetic and adhere to the city's General Plan and Design Standards; emphasizes the importance of harmonizing with the neighborhood's character; aim to blend seamlessly with Monterey's urban landscape, using colors and design elements that reflect the natural features of the area; Key considerations include urban design, land use, circulation, conservation, safety, noise, economic impact, and social responsibility; plans to hire local residents, support local businesses, and contribute to community organizations; closely examine the specific plans for each Cannabis Business zone to ensure compliance with design principles and regulations
Scoring: (+5) Through, detailed, and strategic plan provided.

SECTION G: SUSTAINABILITY (20 POINTS)
Local Business Partnerships: A description of any local business partnerships or collaborations your cannabis business has established or plans to establish within the City.

Addressed Criteria (pg. 114): leverage existing relationships with vendors in Monterey County and surrounding areas to ensure highquality products are available at their cannabis retail facility; Owner Jenna Sesma's strong ties to the City of Monterey will also play a crucial role in the business's development; work with local businesses in Monterey for various needs, including insurance, construction, signage, catering, taxes, vehicle repair, banking, art, design, engineering, printing, computer services, and legal matters; establish a reciprocal discount program with surrounding retailers to support local businesses, foster community engagement, promote walking, and reduce vehicle use and parking demands; Customers can receive discounts by presenting sameday receipts from participating stores at their cannabis retail facility, and vice versa.

Scoring: (+10) Through, detailed, and strategic plan provided.

Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 37, Packet Page 167 a.

5.00 5.00
b.

10.00 10.00
Steps the cannabis business will take to reduce the carbon footprint of cannabis by reducing greenhouse gas emissions.

Addressed Criteria (pg. 115-118): committed to achieving LEED certification for its cannabis retail facility by implementing various sustainability measures; leverage the LEED Interior Design and Construction criteria to ensure environmentally friendly practices during the renovation and operation of their facility; Finding a location that meets density and diverse use criteria, access to quality transit, and bicycle facilities, reducing parking footprint and indoor water use, commissioning and verifying mechanical, electrical, plumbing, and renewable energy systems, implementing energy-efficient measures including installing ENERGY STAR appliances and utilizing renewable energy sources, managing construction and demolition waste responsibly, promoting indoor air quality with low-emitting materials and ventilation systems, incorporating daylighting and thermal comfort measures, engaging with a LEED Accredited Professional throughout the project; installing solar panels to generate 10% of their energy needs Scoring: (+5) thorough, detailed, and strategic mention of steps to reduce carbon footprint
Describe energy conservation/sustainability features to be included in the project (as example, commitment to LEED certified, minimum percentage of on-site electricity generation, or installation of EV chargers, etc.).

Addressed Criteria (pg. 115-118): extend its sustainability efforts beyond LEED certification by implementing various green practices; These include using biodegradable exit packaging, cutlery, paperware, and straws, opting for recycled and recyclable office and paper products certified by the Forest Sustainability Council, employing non-toxic cleaning products and solutions, minimizing plastic use, and sourcing from sustainable brands. Scoring: (+10)
thorough, detailed, and strategic mention of energy conservation or sustainability features
Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 38, Packet Page 168 b.

Addressed Criteria (pg. 118-119): committed to ensuring that the products it sells come from sustainable and equitable businesses; company plans to: Research and evaluate the business practices of the top-selling cannabis brands in California by contacting brand owners and representatives. They will inquire about employee compensation, hiring practices, social equity status, and production practices to prioritize brands committed to environmental and employee welfare; Utilize publicly available information from the Department of Cannabis Control to identify cannabis operators with labor peace agreements with unions, indicating their commitment to employee standards; Work with reputable cannabis brands to establish a Responsible Cannabis Providers Association, similar to the Independent Brewers Association in the craft beer industry. This association will set standards for equity ownership, fair wages, environmental practices, community contributions, and other socially responsible commitments. Participating brands will display the association's logo on their products, allowing customers to easily identify socially responsible brands.

Scoring: (+5) thorough, detailed, and strategic mention of steps of how to source products; clear implementation plans and success metrics Council Regular Meeting, 5/5/2026, Item No. 7., Item Page 39, Packet Page 169 Council
Agenda Report
FROM: Nat Rojanasathira, Assistant City Manager
Prepared By: Mark Ackermann, Management Analyst
SUBJECT: Conduct a Drawing to Determine the Commercial Cannabis Zones for Infinity Assets Monterey, LLC and Monterey Organic LLC to Operate Retail Cannabis Businesses (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council direct the Community
Development Director to conduct a drawing to identify
the order by which the two (2) waitlisted retail storefront cannabis business applicants choose their preferred
cannabis overlay zone in which to operate their
business.

The available overlay zones are CB3: Wave Street are
and CB4: N. Fremont Street as shown on Appendix A to
Monterey City Code section 38-99.8, Cannabis Business
Overlay District.

This action will only take place if the City Council
approves more than one cannabis business permit from
applicants on the waitlist.

VALUE DRIVERS:

POLICY IMPLICATIONS:

On November 21, 2023, the City Council adopted an amendment to the City Zoning Ordinance to allow for four (4) storefront retail cannabis businesses.

Agenda Report Highlights
• The City Council will conduct a
random drawing to determine the
order in which two waitlisted
cannabis applicants select their
operating zones.
• Infinity Assets Monterey, LLC and
Monterey Organic LLC are the two
applicants currently on the waitlist.
• The two available commercial
cannabis overlay zones for selection
are the Wave Street area and North
Fremont Street.
• This selection process was
designed without preselected
locations to promote equitable
access for all business applicants
regardless of their financial means.
• Retail cannabis businesses are
estimated to generate annual tax
revenue for the City ranging
between $322,323 and $705,583.

Date: 5/5/2026
Item No.: 8.

Council Regular Meeting, 5/5/2026, Item No. 8., Item Page 1, Packet Page 170 №10/24
City Code section 7-7.07 (c) states, “After the City Council selects the top four (4) cannabis storefront retail businesses, the Community Development Director will conduct a drawing, that is open to public view, to identify the order by which the top four commercial cannabis business applicants choose their preferred zone from the available zone(s).” The approved waitlisted applicants are now taking the place of two (2) of the original top four (4) businesses.

This drawing will allow the City to follow the prescribed process for conducting the drawing, allowing these businesses to pursue locations in the approved zones and fulfilling their requirement to obtain a Zone Clearance prior to full permit issuance.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Based on the voter-approved Cannabis Business License Tax, currently set at 4% of gross receipts from retail businesses, 1% of gross receipts from testing laboratories, and 2% of gross receipts from cannabis distribution and other uses, the City of Monterey’s annual revenue estimate range is between $322,323 and $705,583.

ENVIRONMENTAL DETERMINATION:

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 identifying the order by which the cannabis business permit applicants select a zone of preference 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, such as appropriating the revenues realized, will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

City Council could choose not to direct the Community Development Director to conduct this drawing; however, this is not recommended because the City Code requires a drawing be conducted that is open to public view, and it is timely to conduct the drawing during the City Council meeting immediately following the selection of cannabis retail businesses. Conducting the drawing at a later date would delay the issuance of cannabis permits.

DISCUSSION:

Background
Cannabis Storefront Retail Business Permit applicants were directed to apply without a preselected location or zone clearance. This was done to promote equitable access to potential cannabis locations and prevent giving an advantage to applicants with greater means to secure specific properties.

Council Regular Meeting, 5/5/2026, Item No. 8., Item Page 2, Packet Page 171 №10/24
The two (2) available zones are:

1. Wave Street Area

2. North Fremont Street
Applicants are required to obtain a zone clearance before they can be issued their permits. To ensure a fair and orderly process, City Code section 7-7.07 (c) requires the Community Development Director to conduct a random drawing to identify the order by which the applicants will have the opportunity to choose their preferred zones.

Process
The drawing will proceed as follows. The Community Development Director will randomly draw an applicant’s name from a glass bowl. That applicant will be asked to select a preferred zone from the two (2) available zones. Once their preferred zone has been identified, that zone is no longer available to be selected by the remaining applicant.

What if an applicant’s preferred zone is no longer available when their name is drawn? If an applicant’s preferred zone is no longer available when it is their turn to select, the applicant will have the opportunity to accept the remaining zone or to withdraw their application. If an applicant elects to withdraw their application, that permit will not get issued unless the City solicits more applicants in the future due to the waitlist having expired on January 1, 2026.

NR/ma
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.org/Submitted-Comments
Council Regular Meeting, 5/5/2026, Item No. 8., Item Page 3, Packet Page 172 Council
Agenda Report
№11/25
FROM: Tyller Williamson, Mayor
SUBJECT: Mayor Williamson’s Request to Agendize a Discussion Regarding Review of the Council Governance Policy: Agendizing Process and Meeting Efficiency (Not a Project under CEQA Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
RECOMMENDATION: Direct staff on whether to agendize the discussion.

VALUE DRIVERS: As provided in the attached request.

POLICY IMPLICATIONS:

The City Council’s Governance Policy (Resolution No. 25-082 C.S.) provides:

Agendizing of City Council Items by Individual Councilmembers.

1. A Councilmember may submit an agenda report to the City Clerk’s Office outlining a request to agendize a matter of business on a future agenda. This agenda report should, in 350 words or less, describe what, how, and why the matter of business should be considered by the City Council. The City Clerk’s Office will add the item to an upcoming agenda.

2. At the Council Meeting where the request is considered, the Councilmember who submitted the request will deliver a verbal report consistent with the agenda report. This verbal report should not exceed three minutes. The City Council may ask questions pertaining to whether the item should be agendized (e.g., the required amount of staff time, the priority level to be assigned to the item, etc.).

3. Public comment will be received.

4. In deliberating the request, the sole issue to be determined is whether the substantive issue warrants being heard at a future date. A majority vote is not required, instead, the motion will pass with two “yes” votes.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS: Agendizing a matter does not have a fiscal implication. Fiscal implications of the suggested changes will be included in the future agenda item, if agendized.

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 Date: 5/5/2026
Item No.: 9.

Council Regular Meeting, 5/5/2026, Item No. 9., Item Page 1, Packet Page 173 №11/25
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 not to agendize the matter.

DISCUSSION:

On April 16, 2026, Mayor Williamson provided a written request to agendize, which is attached as Attachment 1.

At its meeting on April 21, 2026, the City Council will consider whether this item should be added to a future City Council meeting agenda. Consistent with the City Council’s Governance Policy, the member of Council who submitted the request will deliver a verbal report consistent with the agenda report. This verbal report should not exceed three minutes. The City Council may ask questions pertaining to whether the item should be agendized (e.g., the required amount of staff time, the priority level to be assigned to the item, etc.). Public comment will then be received. In deliberating the request, the sole issue to be determined is whether the substantive issue warrants being heard at a future date. A majority vote is not required, instead, the motion will pass with two “yes” votes.

TW/cbk
Attachments: 1. Request
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, 5/5/2026, Item No. 9., Item Page 2, Packet Page 174

ATTACHMENT
Date: April 16, 2026
From: Tyller Williamson, Mayor
Subject: Council Governance Policy Review: Agendizing Process and Meeting Efficiency Summary:

This item requests City Council consideration to review and discuss potential updates to the Council’s governance policy, focusing on the process for agendizing items and improving overall meeting efficiency.

Discussion:

The Council will review the current procedure by which individual Councilmembers place items on a future agenda. At present, a Councilmember must submit a request and obtain support from at least one additional Councilmember during a public meeting to advance the item. This discussion will include whether such support could be obtained outside of a meeting in a manner consistent with the Brown Act.

The Council will also consider whether to formalize a practice of consulting with staff to determine appropriate timing and readiness before scheduling items for Council discussion.

Additional discussion may include meeting management practices, such as establishing clearer expectations or guidelines regarding the length and structure of Council questions and deliberation.

This item is intended to allow for a broader conversation among Councilmembers, staff, and the public regarding potential improvements to governance processes. Based on Council direction, staff may return with recommended policy updates for formal adoption.

Recommendation:

Discuss and provide direction to staff regarding potential updates to the Council’s governance policy.

Council Regular Meeting, 5/5/2026, Item No. 9., Item Page 3, Packet Page 175 Council
Agenda Report
№12/25
FROM: Andrea Renny, PE, Public Works Director
Prepared By: Rebecca Baggott, Environmental Regulations Analyst SUBJECT: Continued Public Hearing to Receive Protests of Proposed Stormwater Utility Fees and Adopt a Resolution Directing a Mailed Ballot Proceeding if a Majority Protest Does Not Exist (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) – This item is continued from 4:00 p.m.

RECOMMENDATION:

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

Date: 5/5/2026
Item No.: 12.

Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 1, Packet Page 176 №12/25
fees and charges. Proposition 218 requires that revenues derived from the fee not exceed the funds required to provide stormwater services and that such revenues be used only for that purpose. The fee must be proportional to the cost of service attributable to each parcel and may only be imposed for services that are actually used by, or immediately available to, the property.

In addition, the fee cannot be imposed for general governmental services available to the public at large.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

ENVIRONMENTAL DETERMINATION:

ALTERNATIVES CONSIDERED:

Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 2, Packet Page 177 №12/25
DISCUSSION:

Written protests must be received prior to the close of the public hearing to be counted. Each parcel is entitled to one protest, and only one protest per parcel may be counted.

If a majority protest does not exist, the City Council may adopt the attached Resolution confirming the results of the protest proceeding.

Next Steps in the Process
If the City Council adopts the Resolution confirming that a majority protest does not exist, the City will proceed with a mailed ballot election for the proposed Stormwater Utility Fee. In Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 3, Packet Page 178 №12/25
accordance with Proposition 218 requirements applicable to stormwater fees, the fee must also be approved by a majority vote of property owners returning ballots. Ballots and an informational guide will be mailed to property owners, and the election will be conducted in accordance with applicable provisions of State law. The proposed fee may only be implemented if it is approved through this mailed ballot proceeding.

AR/rb
Attachments: 1. Resolution

2. Procedures for the Submission and Tabulation of Protests (Reso. 26-037) 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, 5/5/2026, Item No. 12., Item Page 4, Packet Page 179 RESOLUTION NO. __-___ C.S.

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

DIRECTING A MAILED BALLOT PROCEEDING IF A MAJORITY PROTEST

DOES NOT EXIST
WHEREAS, the City of Monterey owns, operates, and maintains a stormwater management system that provides drainage, flood control, water quality protection, and regulatory compliance services;
WHEREAS, the City is required to comply with State and Federal regulations, including requirements under the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit;
WHEREAS, the City incurs costs to operate, maintain, repair, and improve its stormwater system, including compliance with regulatory mandates, infrastructure maintenance, and capital improvements;
WHEREAS, existing funding sources are not sufficient to sustain stormwater program activities over the long term and are projected to be depleted by Fiscal Year 2026–27; WHEREAS, the City has conducted a Stormwater Rate Study to evaluate the cost of providing stormwater services and to develop a proposed fee structure that is fair, equitable, and proportional to the cost of service;
WHEREAS, Proposition 218 requires that fees cannot exceed the cost of service, must be fair and equitable, and are based on the actual cost of providing the entire service, and each parcel must be charged its proportional cost of service attributable to the parcel; and WHEREAS, the California Constitution requires (1) notice; (2) a public hearing; and (3) a protest process before imposing a property-related fee and the City Council adopted Resolution 26-037 to establish procedures for the submission and tabulation of protests in connection with rate hearings conducted pursuant to Proposition 218;
WHEREAS, the proposed Stormwater Utility Fee will not be used for general governmental services and will be used solely for stormwater-related services and facilities; WHEREAS, pursuant to Proposition 218, a notice of the proposed Stormwater Utility Fee was mailed on March 20, 2026 to all affected parcels;
WHEREAS, on May 5, 2026, the City held a public hearing to consider all protests against the proposed Stormwater Utility Fee;
WHEREAS, the total number of written protests presented by the close of the public hearing was less than 50% plus one of the total number of property owners subject to the proposed fee; 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 Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 5, Packet Page 180 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.

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, 5/5/2026, Item No. 12., Item Page 6, Packet Page 181 RESOLUTION NO. 26-037 C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY

ADOPTING PROCEDURES FOR THE SUBMISSION AND TABULATION OF PROTESTS IN

NOW, THEREFORE, THE COUNCIL OF THE CITY OF MONTEREY HEREBY RESOLVES AS FOLLOWS:

Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 7, Packet Page 182 SECTION 1. The City Council hereby finds the above recitals true and correct and they are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

The exhaustion procedure in Section 1-4.00 concerns the claim that a given revenue measure is unlawful.

SECTION 3. Definitions. Unless the context plainly indicates another meaning was intended, the following definitions shall apply in construction of these guidelines.

A. “Parcel” means a County Assessor’s parcel the owner or occupant of which is subject to the proposed fee that is the subject of the hearing.

C. “City Clerk” means the City Clerk of the City of Monterey or the City Clerk’s designee as identified in the notice of the proposed charges.

SECTION 4. Notice.

A. The City shall comply with the procedures set forth in City Code section 1-4.00(d).

B. The City shall provide notice of the proposed charges and public hearing via U.S. mail to all record owners at least 45 days prior to the public hearing.

D. A record owner’s failure to receive a notice shall not invalidate the proceedings conducted under this section and Article XIIID, Section 6 of the California Constitution.

Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 8, Packet Page 183 SECTION 5. Protest Submittal.

C. Written protests in other forms such as email, fax, photocopy, social media, etc. shall not be counted.

SECTION 6. Protest Requirements.

B. Protests shall not be counted if any of the required elements (i through iv) outlined in the preceding subsection A are omitted.

SECTION 8. Multiple Record Owners.

A. Each record owner of a parcel served by the City may submit a protest. This includes instances where:
(i) A parcel is owned by more than a single record owner or more than one name appears on the property tax roll; or
Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 9, Packet Page 184 (ii) Multiple parcels are served via a single utility account, as master-metered multiple family residential units.

B. Only one protest will be counted per parcel as provided by Government Code section 53755(b).

SECTION 10. Tabulation of Protests.

B. At the public hearing, the City Clerk may report to the City Council the number of protests received prior to the hearing.

C. Following the conclusion of the public hearing, the City Clerk may report to the City Council the total count of protests received.

G. The City Clerk shall not accept as valid any protest if she or he determines that any of the following is true:
(iii) The protest does not state its opposition to the proposed charges. (iv) The protest does not name the record owner of the parcel identified in the protest as of the date of the public hearing.
(v) The protest does not identify a parcel served by the City that is subject to the proposed charge.
(vi) The protest does not bear an original signature of the named record owner with respect to the parcel identified on the protest. Whether a signature is valid shall Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 10, Packet Page 185 be entrusted to the reasonable judgment of the City Clerk, who may consult signatures on file with the County Elections Official.
(vii) The protest was altered in a way that raises a fair question as to whether the protest actually expresses the intent of a record owner to protest the charges. (viii) The protest was not received by the City Clerk before the close of the public hearing on the proposed charges.
(ix) A request to withdraw the protest was received prior to the close of the public hearing on the proposed charges.

SECTION 12. Majority Protest.

A. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners of a majority (50% plus one) of the parcels subject to the proposed charge.

B. The number of parcels at the time that notices were issued shall control in determining whether a majority protest exists.

C. If a majority protest is received, the City Council shall not impose the rate increase.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this 3rd day of March, 2026, by the following vote:

AYES: 3 COUNCILMEMBERS: Barber, Rasch, Smith
NOES: 2 COUNCILMEMBERS: Garcia, Williamson
ABSENT: 0 COUNCILMEMBERS: None
ABSTAIN: 0 COUNCILMEMBERS: None
APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Docusign Envelope ID: CB9D8A8C-E2F2-4F45-B60A-BE1AED86A527 Council Regular Meeting, 5/5/2026, Item No. 12., Item Page 11, Packet Page 186

Monterey City CouncilMay 5, 2026

Monterey City Council
May 5, 2026