Agenda packet — Monterey City Council, September 15, 2026

Council Chamber
580 Pacific St.

Monterey, California

CITY COUNCIL AGENDA
Council Regular Meeting
and Closed Session,
and Ocean View Community
Services District Meeting
Tuesday, September 15, 2026
4:00 PM
Mayor
Tyller Williamson
Councilmembers
Kim Barber, District 1
Ed Smith, District 2
Jean Rasch, District 3
Gino Garcia, District 4
City Manager
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.

September 15, 2026 4:00 PM
2 Call to Order
AFTERNOON SESSION: 4:00 p.m.

Presentations (Afternoon)

1. Recognize City Employees for Milestone Anniversaries and Retirements in 2026 (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. September 1, 2026 Regular Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Consent: Ordinances
An ordinance is a law adopted by the City Council and codified in the City Code. Through the adoption of an ordinance, the City may make and enforce within its limits all local, police, sanitary, and other laws not in conflict with state or federal law. An ordinance generally becomes effective 30 days after approval at a second reading.

3. 2nd Reading - Ordinance Amending Monterey City Code Section 35-70(b), the Expenditure Plan for the Street Infrastructure Rehabilitation Transactions and Use Tax (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Consent: Resolutions
A resolution is an expression of opinion or evidence of a decision made by the City Council and often relates to administrative business of the City. Resolutions generally become effective immediately upon adoption.

4. Authorize the Finance Director to Appropriate Funds to Six (6) Neighborhood and Community Improvement Program (NCIP) Projects from the NCIP Fund, Close Three (3) NCIP Projects and Release Remaining Balances to the NCIP Fund ***NCIP*** (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)

5. Authorize a Professional Services Agreement with Pegasus Risk Management, Inc. for Workers’ Compensation Third-Party Administration Services (Not a Project under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)

6. Authorize $99,805 in State of California Department of Housing and Community Development Permanent Local Housing Allocation (PLHA) Grant Funds and Authorize the City Manager to enter into Agreements with Gathering for Women, and Community Human Services to Assist Persons Experiencing Homelessness (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) September 15, 2026 4:00 PM
3 Consent: Other

7. Receive Report on Housing Successor Agency Annual Reports (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) End of Consent Agenda
Adjourn to Ocean View Community Services District Meeting Ocean View Community Services District Meeting: Consent Agenda This is a separate legal body of the City that oversees the operations of the Ocean View Community Services District desalinization plant. All matters listed under Consent Agenda are routine and will be adopted by one motion unless a member of the CSD or the public requests discussion or a separate vote.

8. Receive Ocean View Community Services District Quarterly Report and Adopt a Resolution Authorizing an Application to the Local Agency Formation Commission to Dissolve the District (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5, Section 15061)
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.)

9. 1st Reading to Amend Monterey City Code section 19-103, the Schedule of Fees and Services Charges, to Reduce the Amount of the City’s Cost Recovery for Specific Encroachment Permit and Inspection Fees to less than 100% (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

10. Amend Resolution 26-071 to Include Fees for New Encroachment Permit and Inspection Categories, Update Descriptions, Reduce Five Categories of Encroachment Fees to Reflect City Cost-Sharing, and Revise Subpoena Fee (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Public Appearance (Afternoon)
Public Appearance items are on non-routine issues that might stimulate public interest and comments.

11. Approve a Minor Sidewalk Repair Pilot Program, Authorize the Finance Director to Appropriate Measure S Funds, Award a Job Order Contract in the Amount of $1,000,000 to Precision Emprise, LLC dba Precision Concrete Cutting for On-Call Sidewalk Repair Projects, and Direct Staff to Bring Forward a Major Sidewalk Repair Pilot Program at the Second Council Meeting in December (Exempt from CEQA, Article 19, Section 15301, Class 1)
Adjourn to Closed Session
The City Council will take public comments on closed session items before convening to closed session.

September 15, 2026 4:00 PM
4 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.

12. Conference with Legal Counsel:

A. Existing Litigation Pursuant to Government Code section 54956.9(d)(1):

1. Desiree 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-NW

3. City of Monterey v. Edward Ciliberti (Monterey County Superior Court Case No. 26CV002092)

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

5. City of Monterey v. David Goad (Monterey County Superior Court Case No. 26CV004732)

6. Shai and Mira Nissim v. City of Monterey (Monterey County Superior Court Case No. 25CV004945)

7. Stronghold Engineering, Inc. v. City of Monterey (Sixth District Court of Appeals Case No. H054446)

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

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)

10. John Alexiou v. City of Monterey (Workers Compensation Appeals Hearing Board Case No. ADJ15441015)

11. Gaudenz Panholzer v. City of Monterey (Workers Compensation Appeals Hearing Board Case Nos. ADJ20647221, 20647238)
B. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(2), (e)(3): Receipt of a Government Claim from Danny Clark Recess
Reconvene
EVENING SESSION AGENDA: Approximately 7:00 p.m.

No discussion of a new item will be started after 10:30 p.m. unless agreed upon by Council.

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

Announcements from Closed Session
Public Hearing (Evening)
Public Hearings are held to receive a staff presentation and public comment on certain items prior to City Council action. NOTICE CONCERNING YOUR LEGAL RIGHTS: If you challenge the City Council’s zoning, planning, or land use decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing on the matter, or in written correspondence delivered to the City at the time of or prior to the public hearing. (Government Code section 65009.)
September 15, 2026 4:00 PM
5 13. Adopt the Fiscal Year (FY) 2025-2026 Consolidated Annual Performance and Evaluation Report (CAPER) and Authorize Submission to the U.S. Department of Housing and Urban Development (Exempt from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26) Public Appearance (Evening)
Public Appearance items are on non-routine issues that might stimulate public interest and comments.

14. Receive Project Update, Amend the Fiscal Year 2026-2027 City Budget (Resolution 26-090) to Authorize $1.5 Million from Low and Moderate Income Housing Asset Fund (LMIHAF) to MP Madison Street Associates, L.P. as a Loan to Construct an Affordable Housing Project Located at 587 and 593 Van Buren Street and 424 and 450 Madison Street, Adjacent Parking Lot and Area Behind the Building Located at 546 Dutra Street and Assign the Permanent Local Housing Allocation (PLHA) Loan to MP Madison Street Associates, L.P. (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
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
№11/25
FROM: Dante Hall City Manager
Prepared By: Hayley Goodwein, Administrative Assistant
SUBJECT: Recognize City Employees for Milestone Anniversaries and Retirements in 2026 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council recognize City employees for their milestone anniversaries and retirements for the third
quarter of 2026.

VALUE DRIVERS:

Provide sufficient resources and support to develop,
retain, and recruit a high-quality city workforce.

POLICY IMPLICATIONS:

It is within the City Council’s scope and authority to
acknowledge and recognize employees of the City at
City Council meetings.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

No fiscal implications.

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.

Agenda Report Highlights
• The recommendation to City
Council is to recognize the winners
of the City employees who have
milestone anniversaries and
retirements in the third quarter of
2026 to highlight and acknowledge
the hard work and dedication of City
employees.
• The recognition is part of the longstanding relationship between the City of Monterey and its employees.
• There are no fiscal or environmental
implications associated with this
recognition.

Date: 9/15/2026
Item No.: 1.

Council Regular Meeting, 9/15/2026, Item No. 1., Item Page 1, Packet Page 6 №10/24
ALTERNATIVES CONSIDERED:

The City Council could choose not to recognize City employees; however, this is not recommended.

DISCUSSION:

The City of Monterey is fortunate to have many retirees and staff who are career employees and have served the community for decades. The Mayor and City Council will recognize City employees who have retired with 20 years of service or greater, in addition to employees who have reached their work anniversary with 20, 25, 30, or 35 years of service.

Milestone Anniversaries in 2026 Third Quarter
• Angie Madruga, Police Department, Police Services Assistant – 20 years of service • Gregory Galin, Police Department, Police Sergeant – 20 years of service • Paul Oelfke, Police Department, Police Officer – 20 years of service • Steve Garcia, Parks and Recreation Department, Parks Division, Park Maintenance Supervisor – 30 years of service
Milestone Retirements in 2026 Third Quarter
• Brian Nino, Police Department, Police Sergeant – 13 years of service with Monterey Police
• Gabe Kaster, Police Department, Police Lieutenant – 21 years with Monterey Police • Jason Newby, Police Department, Police Sergeant – 23 years with Monterey Police • Laurie Huelga, City Manager’s Office, Communications Manager – 22 years of service • Luis Mosqueda, Police Department, Police Officer – 14 years with Monterey Police • Michaela Priutt, Parks and Recreation Department, Recreation Division, Lead Preschool Instructor – 23 years of service
DH/hg
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, 9/15/2026, Item No. 1., Item Page 2, Packet Page 7

MINUTES

CITY COUNCIL REGULAR MEETING

CITY OF MONTEREY
Tuesday, September 1, 2026
4:00 PM
COUNCIL CHAMBER, 580 PACIFIC ST.

MONTEREY, CALIFORNIA
Councilmembers

Present: Barber, Garcia, Rasch, Smith, Williamson

Absent: None
City Staff

Present:

City Attorney, Assistant City Manager, Community Development Director, Fire Chief, Parks and Recreation Director, Police Chief, Public Works Director, City Clerk, Deputy Public Works Director/City Engineer, Engineering Assistant, Sustainability Coordinator, Assistant Director of Information Resources, Planning Manager, Associate Civil Engineer, Engineering Assistant II, Recreation Manager, Principal Planner Call to Order
Mayor Williamson called the meeting to order at 4:00 p.m.

AFTERNOON SESSION
Presentations (Afternoon)

1. Recognize September 2026 as Hispanic Heritage Month (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Recognized Hispanic Heritage Month
Councilmember Garcia presented the proclamation and spoke about the importance of recognizing Hispanic heritage. Public comment was received from Esther Malkin, who echoed the importance of the recognition. The Council briefly stressed that it is crucial to make these recognitions.

General Public Comments
Public comment on non-agendized matters was received from: an unidentified man, Josh Stratton of California-American Water, Richard Lind, Cathy Giammanco, Rick Aldinger, Carol Chorbajian, Tom Rowley, Tom Barrera, Nina Beety, and Esther Malkin.

Pledge of Allegiance
Councilmember Smith led the Pledge.

Consent Agenda
The Council requested to pull Item 4 from the Consent Agenda. Public comment on the Consent Items was solicited but not received.

On a motion by Councilmember Barber, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the Consent Agenda, except Item 4:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Date: 9/15/2026
Item No.: 2.

Council Regular Meeting, 9/15/2026, Item No. 2., Item Page 1, Packet Page 8 City Council Minutes September 1, 2026
2 Consent: Approval of Minutes

2. August 18, 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

3. Authorize an Increase in FY27 Grant Revenue, Appropriate Funds in the Amount of $216,988.38, and Award a Construction Contract in the Amount of $335,804.19 to InCharge Energy, Inc., for the EV Charger Project at the City Corporation Yard (Exempt from CEQA per Article 19, Section 15303, Class 3; and Section 15304, Class 4 (f)) Action: Adopted Resolution No. 26-118 C.S.

4. Authorize the Finance Director to Appropriate $374,525.11 from the Measure P/S Fund to the Cass and El Dorado Street Curb Ramp and Road Rehabilitation Project and Award a Construction Contract in the Amount of $1,610,351.00 to Mission Constructors Inc. for the Cass and El Dorado Street Curb Ramp and Road Rehabilitation Project (Exempt from CEQA, Article 19, Section 15301, Class 1)
Action: Pulled from Consent; Adopted Resolution No. 26-119 C.S.

Associate Civil Engineer Wright and City Engineer/Deputy Public Works Director Easterling gave a verbal staff presentation and answered Councilmembers' questions, with additional input provided by City Attorney Davi. Public comment was solicited but not received.

On a motion by Councilmember Smith, seconded by Councilmember Rasch, and carried by the following vote, the City Council adopted Resolution No. 26-119 C.S.:

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

5. Adopt a Resolution Supporting the Pilot Rail Service Connecting Los Angeles and the San Francisco Bay Area for the Summer 2028 Olympics (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-120 C.S.

6. Authorize Agreement with Dell, Inc. for Microsoft Office 365 Government Software Services and Licensing Purchase in an Amount Not to Exceed $583,832 (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-121 C.S.

7. Authorize the Fire Chief to Execute Annual Cooperator Assistance by Hire Agreements with the CAL FIRE San Benito-Monterey Unit (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-122 C.S.

End of Consent Agenda
Public Appearance (Afternoon)

8. 1st Reading Amending Monterey City Code Section 35-70(b), the Expenditure Plan for the Street Infrastructure Rehabilitation Transactions and Use Tax (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Council Regular Meeting, 9/15/2026, Item No. 2., Item Page 2, Packet Page 9 City Council Minutes September 1, 2026
3 Action: Passed ordinance to its second reading, as amended to replace "minimum of" with "approximately" for the targeted expenditure percentages Public Works Director Renny gave the staff presentation and answered Councilmembers' questions with additional input provided by Assistant City Manager Rojanasathira. Public comment was received from Tom Reeves, who spoke in favor of the ordinance.

On a motion by Mayor Williamson, seconded by Councilmember Rasch, and carried by the following vote, the City Council passed the ordinance to a second reading, as amended to replace "minimum of" with "approximately" for the targeted expenditure percentages:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
Mayor Williamson left the Chamber from 5:57 p.m. to 5:58 p.m.

9. Provide Direction to Staff on the Creation of a Pilot Sidewalk Repair Program Utilizing Measure S Funds (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Directed staff to move forward with Alternative 1 (Minor Repair Program Only), and to bring the matter back to Council in December or January to take another look at Alternative 2 (Minor Repairs Plus Shared Cost for Major Repairs) once Measure S results are known (3-1-1 (Councilmember Smith voting no, Councilmember Rasch abstaining)
Public Works Director Renny gave the staff presentation and answered Councilmembers' questions with additional input from City Engineer/Deputy Public Works Director Easterling. During the presentation Councilmember Barber left the Chamber from 5:23 p.m. to 5:24 p.m.

Public comment was received from: Tom Reeves, who spoke in favor of a major repairs 50/50 cost-sharing program (Alternative 2) with a cap, and suggested use of a means test to assist people on social programs even more; Marta Kraftzeck, who said that priority should be placed on making sidewalks ADA-compliant and repairing sidewalk issues that were caused by City construction; Leslie James, who spoke in favor of the minor repairs program (Alternative 1); Tom Rowley of Monterey Peninsula Taxpayers Association, who spoke in favor of Alternative 2; Adam Pinterits of Monterey County Association of Realtors, who spoke in favor of Alternative 2; Rick Heuer of Monterey Peninsula Taxpayers Association, who expressed concern with the pilot being limited to three years and said City fees should be excluded; and Robert Yoha, who shared a recent sidewalk repair experience, expressed concern about an increase in permit fees, and said that cost sharing would be inadequate. During public comments, Councilmember Smith left the Chamber from 5:42 p.m. to 5:43 p.m.

On question from the Council, City Attorney Davi explained that the obligation of the property owner would not change under any of the proposed pilot programs. Public Works Director Renny said that Alternative 1 would be simple and quick to deploy. She asked about establishing a cap and a first-come first-served basis for the program.

The Council discussed the matter. Comments were made in favor of trying a three-year pilot program with a spending cap. Caution was expressed about spending millions of dollars on a program that was based on resident misunderstanding.

In favor of Alternative 1, Minor Repair Program (in which the City, using Measure S funds, would pay for eligible minor sidewalk repairs, such as slicing or grinding, while major repairs would remain the responsibility of the adjacent property owner under the existing process), it was Council Regular Meeting, 9/15/2026, Item No. 2., Item Page 3, Packet Page 10 City Council Minutes September 1, 2026
4 proposed to run the minor repair program first as a pilot before considering adding a cost-share component for major repairs, citing that staff had indicated that minor repairs represented the largest percentage of sidewalk repairs needed within the last five to seven years. It was stated that there was not yet enough information on the budget impact of a program for major repairs, and concerns were expressed about staff's capacity to administer the cost-sharing program, especially in the face of competing budget needs and the $12M structural deficit. It was stressed that the language for such a program would need to include the same provision listed in the agenda report for Alternative 2: that funding would be subject to annual Measure S appropriations and available program resources.

In favor of Alternative 2, Minor Repairs Plus Shared Cost for Major Repairs (in which the City, using Measure S funds, would pay for eligible minor repairs and also share the cost of major sidewalk repairs with the property owner, such as a 50/50 cost-sharing program), it was stated that it would go further in addressing residents' recent concerns about sidewalks and how their repairs were funded. It was proposed to provide assistance to cost-burdened residents, in a noncomplicated way such as paying for repairs for anyone who is a Medi-Cal recipient. It was suggested that grants could help pay for the program.

It was suggested that the Council consider waiving or reducing sidewalk permit fees; and it was proposed that the Council either provide funding or waive fees, but not both. Questions for staff to consider included how appeals would be handled. During the Council discussion, Councilmember Garcia left the Chamber from 5:53 p.m. to 5:54 p.m.

An initial motion was introduced by Mayor Williamson, and seconded by Councilmember Rasch, to direct staff to prepare materials for a pilot program for minor repairs (Alternative 1).

A substitute motion was introduced by Councilmember Smith, and seconded by Councilmember Rasch, to direct staff to prepare materials for a pilot program for minor repairs plus shared cost for major repairs (Alternative 2).

On a subsequent substitute motion by Mayor Williamson, seconded by Councilmember Garcia, and carried by the following vote, the City Council directed staff to move forward with Alternative 1 (Minor Repair Program Only) and to bring the matter back to Council in December or January after Measure S results are in:

AYES: 3 COUNCILMEMBERS: Barber, Garcia, Williamson
NOES: 1 COUNCILMEMBERS: Smith
ABSTAIN: 1 COUNCILMEMBERS: Rasch
Mayor Williamson and Councilmember Smith left the Chamber at 6:29 p.m. and returned at 6:30 p.m.

10. Receive an Update on the Status of the Updated Climate Action Plan (CAP) and Direct Staff to Proceed with a Non-CEQA-Qualified CAP to Maintain Climate Goals and Fiscal Resilience (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Provided direction to staff to proceed with a Non-CEQA-Qualified Climate Action Plan to maintain climate goals and fiscal resilience (by declining to pass a motion to proceed with a CEQA-Certified CAP, on which Mayor Williamson and Councilmember Garcia voted yes)
Planning Manager Hill gave the staff presentation and answered Councilmembers' questions.

During the presentation, Councilmember Barber left the Chamber from 6:53 p.m. to 6:54 p.m.

Public comment was received from Tom Rowley, who suggested it could be helpful to look at Council Regular Meeting, 9/15/2026, Item No. 2., Item Page 4, Packet Page 11 City Council Minutes September 1, 2026
5 climate matters at a regional level; and Nina Beety, who questioned the meaningful impact of the Climate Action Plan and said it would be more beneficial to partner with other agencies in the region to ban data centers.

The Council discussed the matter.

In favor of proceeding with a non-CEQA-qualified Climate Action Plan (CAP), it was stressed that the proposed greenhouse gas reduction measures came with high price tags and that due to the timeframe associated with a CEQA-qualified CAP, going with the non-CEQA-qualified plan instead would be significant in terms of money savings for the City given its current fiscal challenges.

Concern was expressed about whether the emissions targets were realistic given the current transportation situation in the area. It was stated that proceeding with a non-CEQA-qualified status would not mean abandoning climate goals. It was proposed to build in a three-year review to allow an opportunity to reassess.

In favor of proceeding with a CEQA-qualified CAP, which was presented as a moral issue, concern was expressed about sending the wrong climate message to residents, younger generations, and neighboring jurisdictions that it was stated look to the City of Monterey as a leader. It was stated that community partners and non-profit organizations could be encouraged to partner with the City and provide financial assistance to reach climate goals. There was concern expressed that a non-qualified plan could be a "toothless advisory document" versus a regulatory tool. It was stated that budget concerns should not override climate priorities. It was suggested to give City staff and the Council more time to explore regional solutions and community partnerships before finalizing, with the budget conversation continuing through the fiscal year.

On question from the Council, Planning Manager Hill said that the purpose of the climate action plan was to establish the City's goals, and that he would not characterize it as toothless, noting that the Council and staff were very serious and clear about their goals and moving forward toward the targets.

A motion was introduced by Mayor Williamson, and seconded by Councilmember Garcia, to direct staff to proceed with a CEQA-certified Climate Action Plan.

On question from the Council, Community Development Director Cole said that the decision could be postponed until the first quarter of 2027. She noted the voluminous amount of work that was before the Community Development Department and said that the CAP will take about a year from the time that staff receives direction. Sustainability Manager Terrasas provided context on the feasibility of working with regional partners on the City's specific CAP projects and the City's approach to taking proactive measures to achieve climate goals.

The Council continued to discuss the matter. It was stated that staff's recommendation should not be taken lightly, due to their subject matter expertise. It was stressed that the City's climate priorities were of prime importance and must be achieved.

On question, Planning Manager Hill summarized Sustainability Manager Terrasas' points, stating that if the Council were to direct staff to continue with a non-CEQA-qualified Climate Action Plan, the Sustainability office would work toward the same climate impact reduction targets regardless, and that while it would not allow the City to utilize the streamlining benefits of a CEQA-qualified CAP, there were other streamlining avenues for staff to utilize for certain projects.

The motion failed by the following vote:

AYES: 2 COUNCILMEMBERS: Garcia, Williamson
NOES: 3 COUNCILMEMBERS: Barber, Rasch, Smith
Council Regular Meeting, 9/15/2026, Item No. 2., Item Page 5, Packet Page 12 City Council Minutes September 1, 2026
6 Council Comments
Councilmember Smith reported from the recent Transportation Agency for Monterey County (TAMC) Board meeting, sharing that in a competitive grant program the City of Monterey was unanimously approved for a grant of $2,862,000 for the North Fremont Gap Project. He said that he was serving on a TAMC subcommittee that was discussing regional development impact fees.

He said that he would be attending an upcoming Fisherman's Wharf Association meeting, and invited all to attend.

Councilmember Barber reported from ReGen Monterey that applications were now open for the Edible Food Recovery Grant program, which will distribute funding to support organizations that collect, generate, and distribute edible food to people in need as part of the SB 1383 effort.

Mayor Williamson thanked Councilmember Barber and Vince Malfitano for their part in a new partnership between Sister City Isola Delle Femmine and Monterey Peninsula College (MPC), and shared that as a result of the partnership a Sicilian language program had been created and was being offered through MPC.

Councilmember Smith left the Chamber from 7:56 p.m. to 7:57 p.m.

City Manager Reports
Assistant City Manager Rojanasathira shared an upcoming Fun in the Park with STEAM (Science, Technology, Engineering, Arts, and Math) event in Montecito Park. He outlined the various fires to which the Monterey Fire Department’s Type 3 engine and crew had recently been deployed, with reimbursement from Cal Fire. He said that several police officers from the Monterey Police Department would be providing mutual aid in the fires in Big Sur. He shared that economic development strategy focus group meetings were starting up and announced an upcoming "Budget Brews" event.

Adjournment
The Council adjourned at 7:58 p.m.

Respectfully Submitted, Approved,
Clementine Bonner Klein Tyller Williamson
City Clerk Mayor
Council Regular Meeting, 9/15/2026, Item No. 2., Item Page 6, Packet Page 13 ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№09/24
AMENDING MONTEREY CITY CODE SECTION 35-70(b), THE EXPENDITURE PLAN FOR

THE STREET INFRASTRUCTURE REHABILITATION TRANSACTIONS AND USE TAX THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, to address Monterey’s essential infrastructure needs including the repair of deteriorating streets, sidewalks, and storm drains, the City of Monterey deemed it necessary and essential to submit the question of a special one cent per dollar transactions and use (“sales”) tax for essential infrastructure needs to qualified voters within the city at an election held on November 4, 2014;
WHEREAS, at the November 4, 2014 election, the voters of the City of Monterey overwhelmingly approved the Street Infrastructure Rehabilitation Transactions and Use Tax (Measure P), with 74.34% of Monterey residents voting in favor of the measure; WHEREAS, at the November 2018 election, the voters of the City of Monterey overwhelmingly approved an extension of the Street Infrastructure Rehabilitation Transaction and Use Tax (Measure S), with 82% of Monterey residents voting in favor extending the tax through March 31, 2027.

WHEREAS, as of June 2026, with funding from the Street Infrastructure Rehabilitation tax, the City has: repaired 1,012 street segments (blocks), and an additional 90 street segments are currently under construction or out to bid; made $7,419,410.68 in sidewalk repairs; and made $5,869,554.75 in repairs and upgrades to storm drain pipes natural channels, gutters, swales, inlets, manholes, and pump stations;
WHEREAS, the expenditure plan was developed with an estimated revenue of $8,000,000 per year. The expenditure plan allocates approximately 54% of the tax revenue to streets, 31.5% to disabled access and safety improvements, 6.25% to sidewalks, and 8.25% to the storm drain system. The expenditure plan has not been updated since its enactment in 2014;
WHEREAS, as authorized by the voters with the approval of Section 35-70(b), the Expenditure Plan adopted pursuant Revenue & Taxation Code section 7285.91(b), may be amended without modifying the purposes for which the voters approved of the use of the funds.

This amendment to the expenditure plan will not change the voter approved use of the funds.

The amendment is intended to reflect the progress that has been made on the infrastructure projects since 2014 and the work left to be done;
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 Date: 9/15/2026
Item No.: 3.

Council Regular Meeting, 9/15/2026, Item No. 3., Item Page 1, Packet Page 14 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, the Monterey City Council declares as follows:

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

SECTION 3: Monterey City Code, Chapter 35, Article 7, Section 35-70(b) is hereby amended to read as follows:
b. The expenditure plan required by Revenue and Taxation Code section 7285.91(c) for the revenue of tax approved by this ordinance is set forth below.

INFRASTRUCTURE ASSET
TYPE

IMPROVEMENTS ESTIMATED

PERCENTAGE OF

HOW FUNDS WILL

BE ALLOCATED

TO ASSET TYPES

FOR THE TERM

OF THE SPECIAL

TAX MEASURE
Streets Improve & Repair the overall
condition of streets Approximately 35%
Senior & Disabled Access and
Safety Improvements (“ADA”)
Build curb ramps and safety
improvement upgrades to
signaled intersections to
assist senior citizens,
disabled persons, and
visually impaired persons Approximately 20%
Sidewalks Improve & Repair sidewalks
Approximately 7%
Storm Drain System Rehabilitate pipes; Remove
silt from retention pools;
Rehabilitate catch basins,
headwalls Approximately 7%
Remaining revenue shall be allocated among any of the above purposes.

Annual expenditures may vary based on infrastructure condition, public safety, project readiness, construction costs, emergency needs, availability of matching funds, and other relevant factors. The minimum allocations established in this Expenditure Plan shall be for the duration of the tax measure rather than in each individual fiscal year. All tax proceeds shall remain restricted to the purposes identified in this Expenditure Plan.

The expenditure plan may be amended from time to time by a vote of the City Council, so long Council Regular Meeting, 9/15/2026, Item No. 3., Item Page 2, Packet Page 15 as the funds are used for the purposes approved by the electors in approving the tax described herein.

SECTION 4: SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

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, 9/15/2026, Item No. 3., Item Page 3, Packet Page 16 Council
Agenda Report
№12/25
FROM: Andrea Renny, P.E., PTOE, Public Works Director
Prepared By: Reginald Paulding, P.E., Senior Engineer
SUBJECT: Authorize the Finance Director to Appropriate Funds to Six (6) Neighborhood and Community Improvement Program (NCIP) Projects from the NCIP Fund, Close Three (3) NCIP Projects and Release Remaining Balances to the NCIP Fund ***NCIP*** (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

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

1. Appropriate $100,000 from the NCIP Fund to the
American Legion to Harrison Walkway Project
(nip2312);

2. Appropriate $20,000 from the NCIP Fund to the
Casanova Oak Knoll Park Improvements Project
(ncp2405);

3. Appropriate $71,000 from the NCIP Fund to the
Bruce Ariss Way Lighting Project (ncp2430);

4. Appropriate $100,000 from the NCIP Fund to the
Fire Station 12 Rehabilitation Project (ncp2506);

5. Appropriate $50,000 from the NCIP Fund to the
Replace & Install New Lights & Poles at Sollecito
Field Project (ncp2515);

6. Appropriate $2,840.89 from the NCIP Fund to
the Del Monte Beach - Replace Cables Along
Walkways Project (ncp2517);

7. Close the Del Robles Ave -Solar Streetlight
Project (ncp2425) and release remaining
balance to the NCIP Fund;

8. Close the 57 Melway Circle Sidewalk Infill
Project (ncp2514) and release remaining
balance to the NCIP Fund; and,

9. Close the Install Bike Rack in Beach Way Parking Lot Project (ncp2526) and release remaining balance to the NCIP Fund.

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.

Agenda Report Highlights
• Staff recommends financial
adjustments to the Neighborhood
and Community Improvement
Program fund that would support six
ongoing projects and close three
others.
• The proposed action would result in
a net increase of $191,840.89 in
project appropriations
• The committee voted to recommend
that the City Council appropriate
additional funding to six of the eight
presented projects.
• Three projects lacking support or
already completed by others would
be closed and their remaining
balances returned to the fund.

Date: 9/15/2026
Item No.: 4.

Council Regular Meeting, 9/15/2026, Item No. 4., Item Page 1, Packet Page 17 №12/25
Serve as stewards of the City’s financial resources through sound economic vitality efforts, streamlining operations, reasonable revenue enhancements, visionary long-term planning, fiscal transparency, and community partnerships.

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

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

POLICY IMPLICATIONS:

The determination of the projects, priorities and expenditures shall be within the sound discretion of the City Council. (City Charter section 6.6(e).) CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

As of July 1, 2026, there are 85 NCIP Projects in various stages with a total appropriated budget balance of $21,604,304.

This proposed action involves nine (9) NCIP Projects with a request to add funding to six (6) projects totaling $343,840.89 and closing three (3) projects with remaining balances totaling $152,000. Closing projects will release the remaining funding appropriated to those projects back to the Neighborhood Community Improvement Fund. This will result in a net increase in NCIP project appropriations of $191,840.89.

There is sufficient funding available in the NCIP Fund to complete the additional appropriation.

Neighborhood Community Improvement Fund (Fund 216)
Estimated FY 2025-26 End Fund Balance $22,676,598
Funding Appropriated to Projects (as of 7/1/2026) $21,604,304 Estimated Available NCIP Funds $1,072,294
Estimated Available NCIP Funds (July 1, 2026) $1,072,294 Total NCIP Project Funding Request ($343,840.89)
Total NCIP Project Balance Return to Fund $152,000
Estimated Available NCIP Funds After Proposed Action $880,453 Project Budget Needs
American Legion to Harrison Walkway (Veterans Dr) Path Improvements (nip2312) Original Budget (Resolution No. 22-131) $88,000
Additional Budget Need (Stairs and Railing Only) $100,000 Total $188,000
Casanova Oak Knoll Park Improvements (ncp2405)
Original Budget (Resolution No. 23-122) $125,000
Additional Budget Need $20,000
Council Regular Meeting, 9/15/2026, Item No. 4., Item Page 2, Packet Page 18 №12/25
Total $145,000
Bruce Ariss Way Lighting – Upgrade(ncp2430)
Original Budget (Resolution No. 23-122) $35,000
Additional Budget Need $71,000
Total $106,000
Fire Station 12 Rehabilitation (ncp2506)
Original Budget (Resolution No. 24-179) $1,050,000
Additional Budget (Resolution No. 25-080) $900,000
Additional Budget Need (Swing Space at Hilltop Park Center) $100,000 Total $2,050,000
Replace & Install New Lights & Poles at Sollecito Field (ncp2515) Original Budget (Resolution No. 24-179) $422,000
Additional Budget (Resolution No. 25-124) $42,200
Additional Budget Need $50,000
Total $514,200
Del Monte Beach Replace Cables Along Walkways (ncp2517) Original Budget (Resolution No. 24-179) $30,000
Additional Budget Need (Actual Costs) $2,840.89
Total $32,840.89
ENVIRONMENTAL DETERMINATION:

ALTERNATIVES CONSIDERED:

The City Council has several alternatives to consider for this item:

1. Council may choose not to appropriate additional funding to one or more project(s) from the recommended list of projects;

2. Council may choose to allocate a different amount of funding than recommended; or,

3. Council may request project re-scoping (greater or lesser) and refer this item back to the NCIP Committee for possible revisions to the recommended project.

Council Regular Meeting, 9/15/2026, Item No. 4., Item Page 3, Packet Page 19 №12/25
DISCUSSION:

City staff have completed design or construction for the following NCIP projects and have identified additional funding needs for these six (6) projects. The estimated funding needs are based on construction estimates provided by the design consultants following completion of design plans and specifications with more refined cost estimates.

Project
Number Project Title Construction Estimate
Estimated
Additional Budget
Need
nip2312
American Legion to Harrison
Walkway (Veterans Dr) Path
Improvements (Stairs Only)
$100,000 $100,000
ncp2405 Casanova Oak Knoll Park
Improvements $22,960.54 $20,000
ncp2430 Bruce Ariss Way Lighting –
Upgrade $83,930 $71,000
ncp2506 Fire Station 12 Rehabilitation $90,808 $100,000 ncp2515 Replace & Install New Lights &
Poles at Sollecito Field $511,393.50 $50,000
ncp2517 Del Monte Beach Replace
Cables Along Walkways $2,840.89 $2,840.89
$811,932.93 $343,840.89
City staff presented these projects to the NCIP Committee on July 29, 2026. The NCIP Committee voted to recommend that City Council appropriate additional funding to six (6) out of eight (8) projects presented with the following votes.

Project
Number Project Title Ayes Noes Absent Status
nip2312
American Legion to
Harrison Walkway
(Veterans Dr) Path
Improvements
(Stairs Only)
13 1 1 Recommend
ncp2405
Casanova Oak
Knoll Park
Improvements
11 3 1 Recommend
ncp2420
Fairground
Rd/Airport Rd
Lighting
0 14 1
Not
Recommended
ncp2430 Bruce Ariss Way
Lighting – Upgrade 8 6 1 Recommend
ncp2504
Munras Ave & Via
Arboles Curb Ramp
Construction
1 14 0
Not
Recommended
ncp2506 Fire Station 12
Rehabilitation 15 0 0 Recommend
Council Regular Meeting, 9/15/2026, Item No. 4., Item Page 4, Packet Page 20 №12/25
Project
Number Project Title Ayes Noes Absent Status
ncp2515
Replace & Install
New Lights & Poles
at Sollecito Field
15 0 0 Recommend
ncp2517
Del Monte Beach
Replace Cables
Along Walkways
15 0 0 Recommend
City staff recommended the following three (3) NCIP projects for closure to the NCIP Committee on July 29, 2026 due to either lack of support from the adjacent property owners or the neighborhood or because the project has been completed by others. The NCIP Committee voted unanimously to recommend City Council close these projects and return the remaining balance to the NCIP Fund (Fund 216).

Project
Number Project Title Project Status Remaining Balance
ncp2425 Del Robles Ave – Solar
Streetlights
Adjacent property owners do not
support the project following City
staff efforts to relocate streetlights.
$131,100
ncp2514 57 Melway Circle
Sidewalk Infill Work completed by others. $1,000
ncp2526 Install Bike Rack in
Beach Way Parking Lot
City Staff and project proponents
could not agree on bike rack size
or location. City staff could not
place the bike rack in the parking
lot area due to insufficient
clearance for vehicles or
pedestrians. Project proponent
withdrew project.
$20,000
$152,100
AR/rp
Attachments: 1. Resolution
e: NCIP Representatives
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, 9/15/2026, Item No. 4., Item Page 5, Packet Page 21 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
AUTHORIZING THE FINANCE DIRECTOR TO APPROPRIATE FUNDS TO SIX (6)

NEIGHBORHOOD AND COMMUNITY IMPROVEMENT PROGRAM (NCIP) PROJECTS FROM THE NCIP FUND, CLOSE THREE (3) NCIP PROJECTS AND RETURN REMAINING BALANCES TO THE NCIP FUND ***NCIP***
WHEREAS, on July 29, 2026, the Neighborhood and Community Improvement Program (NCIP) Committee voted to recommend that the City Council appropriate $343,840.89 in additional funding from the NCIP Fund to six (6) NCIP Projects; WHEREAS, on July 29, 2026, the NCIP Committee voted to recommend that the City Council close three (3) NCIP Projects and return the remaining balances totaling $152,000 to the NCIP Fund;
WHEREAS, this action will result in a net increase in NCIP Project appropriations of $191,840.89;
WHEREAS, as of July 1, 2026, there was an estimated NCIP Fund Balance of $22,676,598 and $21,604,304 in funding appropriated to NCIP Projects, resulting in estimated $1,072,294 in the NCIP Fund as available for appropriation; WHEREAS there is sufficient funding available in the NCIP Fund for this action, and WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project.

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

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

1. Appropriate $100,000 from the NCIP Fund to NCIP Project American Legion to Harrison Walkway (nip2312);
Council Regular Meeting, 9/15/2026, Item No. 4., Item Page 6, Packet Page 22

2. Appropriate $20,000 from the NCIP Fund to NCIP Project Casanova Oak Knoll Park Improvements (ncp2405);

3. Appropriate $71,000 from the NCIP Fund to NCIP Project Bruce Ariss Way – Lighting Upgrade (ncp2430);

4. Appropriate $100,000 from the NCIP Fund to NCIP Project Fire Stations 12 and 13 Rehabilitation (ncp2506);

5. Appropriate $50,000 from the NCIP Fund to NCIP Project Replace & Install New Lights & Poles at Sollecito Field (ncp2515);

6. Appropriate $2,840.89 from the NCIP Fund to NCIP Project Casanova Del Monte Beach Replace Cables Along Walkways (ncp2517);

7. Close NCIP Project Del Robles Ave – Solar Streetlights (ncp2425) and return remaining balance to the NCIP Fund;

8. Close NCIP Project 57 Melway Circle Sidewalk Infill (ncp2514) and return remaining balance to the NCIP Fund; and,

9. Close NCIP Project Install Bike Rack in Beach Way Parking Lot (ncp2526) and return remaining balance to the NCIP Fund.

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, 9/15/2026, Item No. 4., Item Page 7, Packet Page 23 Council
Agenda Report
№12/25
FROM: Brette Neal, Human Resources Director
Prepared By: M.K. Salameh, Human Resources Analyst
SUBJECT: Authorize a Professional Services Agreement with Pegasus Risk Management, Inc. for Workers’ Compensation Third-Party Administration Services (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt the attached resolution
authorizing a Professional Services Agreement with
Pegasus Risk Management, Inc. for workers’
compensation third-party administration and related
services for an initial five-year term, with up to five additional one-year extensions.

VALUE DRIVERS:

Provide sufficient resources and support to develop,
retain, and recruit a high-quality city workforce.

Foster employee safety and wellness, including
provision of a robust safety program, employee-centric
and employee-led Safety Committee, frequent safety
tailgate meetings, an efficient vehicle fleet management program, and other efforts.

Carefully manage City revenues and expenditures which
support the delivery of City services.

POLICY IMPLICATIONS:

The recommended agreement supports administration
of the City’s workers’ compensation program in
accordance with applicable California workers’
compensation laws, statutory benefit and reporting
deadlines, City claims-handling instructions, and Public Risk Innovation, Solutions, and Management (PRISM)
excess coverage requirements. Contract award and
administration remain subject to the City’s purchasing, contracting, insurance, and budget policies.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: Yes.

Agenda Report Highlights
• The report recommends that the
City Council approve a
Professional Services Agreement
with Pegasus Risk Management,
Inc. for workers’ compensation
administration services for a
five-year term, with optional
one-year extensions.
• The agreement supports efficient,
compliant workers’ compensation
program operations, aligning with
City policies, employee safety
goals, and regulatory
requirements.
• Following a Request for Proposals
process and evaluation, staff
determined that Pegasus Risk
Management, Inc. offered the best
overall value to the City.
• Approval maintains program
stability, avoids transition
disruptions, and allows the City to
assess performance and costs
before exercising future extension
options.

Date: 9/15/2026
Item No.: 5.

Council Regular Meeting, 9/15/2026, Item No. 5., Item Page 1, Packet Page 24 №12/25
FISCAL IMPLICATIONS:

Staff recommend Pegasus’s annual flat-fee option for claims administration and per-bill option for bill review, which includes the applicable per-bill fee plus 23% of preferred provider organization (PPO) network savings. Claims administration fees total $819,400 for the initial five-year term. The agreement would include an initial five-year term with the option to extend for up to five additional one-year terms, for a maximum contract term of 10 years. Annual claims administration fees would be applied sequentially as shown below.

Contract
Year Term Claims Administration Fee
Year 1 Initial term $157,000
Year 2 Initial term $157,000
Year 3 Initial term $165,700
Year 4 Initial term $165,700
Year 5 Initial term $174,000
Total $819,400
The fixed claims administration fee includes required Medicare Secondary Payer reporting, access to and training on Pegasus’s claims management system, and claims-history indexing through Insurance Services Office (ISO) ClaimSearch. No data conversion fee is proposed because Pegasus is the incumbent administrator.

Allocated claim expenses and ancillary services are billed separately, including medical treatment, legal services, return-to-work coordination, special investigations, bill review, utilization review, and medical case management.

For bill-review services, staff recommends Pegasus’s per-bill pricing structure, with rates of $8.75 per bill in Years 1–2, $9.00 per bill in Years 3–4, and $9.25 per bill in Year 5, plus a fee equal to 23% of preferred provider organization (PPO) network savings.

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 may: (1) decline to authorize the agreement and direct staff to negotiate with another proposer; (2) reject all proposals and issue a new solicitation; or (3) authorize a different initial term or fewer extension options and direct staff to revise the agreement.

Council Regular Meeting, 9/15/2026, Item No. 5., Item Page 2, Packet Page 25 №12/25
DISCUSSION:

The City contracts with a third-party administrator to support the administration of its workers’ compensation program, including claims investigation and administration, benefit and reserve management, litigation and settlement coordination, statutory reporting, medical management, return-to-work coordination, and claims-system reporting and oversight.

Effective workers’ compensation administration is a key operational and risk-management function for the City, helping ensure injured employees receive timely benefits and treatment while supporting regulatory compliance, return-to-work efforts, accurate financial reserving, and control of long-term claim exposure.

On February 3, 2026, the City issued a Request for Proposals for workers’ compensation thirdparty administration services. Six proposals were received by the March 2, 2026, deadline. Staff conducted a comprehensive review based on the criteria established in the solicitation, including approach, organizational capacity, staffing, familiarity with the City’s program, agreement compliance, reputation and stability, references, and cost. Following the evaluation, staff determined that incumbent administrator Pegasus Risk Management, Inc. offered the best overall value to the City.

Pegasus specializes in public-entity workers’ compensation administration, with approximately 99% of its clients consisting of Northern California public entities. Pegasus has administered the City’s workers’ compensation program for approximately 20 years, providing continuity and substantial institutional knowledge of the City’s claims history, public safety exposures, local provider landscape, return-to-work practices, and City-specific claims-handling protocols. Its dedicated examiner and supervisory team have supported the City’s program for nearly two decades, preserving established working relationships and consistency in the application of City protocols and excess-carrier requirements.

Pegasus proposes to continue the City’s existing staffing model with a dedicated Senior Claims Examiner and Claims Supervisor, supported by a Future Medical Examiner and Claims Assistant. The dedicated examiner’s caseload would not exceed 125 indemnity files, and supervisors generally do not maintain active caseloads, allowing additional oversight of complex or high-exposure claims.

Pegasus has also demonstrated measurable performance in administering the City’s program, reporting a 99% score in the City’s 2024–2025 claims audit conducted through the Authority for California Cities Excess Liability (ACCEL). Over the past five years, Pegasus reports that the claims team maintained an average closing ratio exceeding 105%, meaning claims were closed at a rate exceeding new claim intake, helping reduce the City’s open claim inventory and longterm exposure. During the same period, 121 cases were resolved through stipulations, dismissals, and compromise and release agreements.

The proposed program also integrates bill review, utilization review, medical case management, investigations, return-to-work services, and medical provider network support with the core claims-administration function. Pegasus provides secure claims-system access with real-time claim and payment information and standard and customized reporting. Quarterly claim-review meetings and customized training are included at no additional cost.

Council Regular Meeting, 9/15/2026, Item No. 5., Item Page 3, Packet Page 26 №12/25
Because Pegasus is the incumbent administrator, continuation of services would not require a claims transition or data conversion and would avoid the associated transition costs and disruption to the City’s open claim inventory.

Staff recommends an initial five-year agreement with the option to extend the agreement for up to five additional one-year terms. The proposed structure maintains continuity of the City’s workers’ compensation program while allowing the City to evaluate performance, cost, and program needs before exercising each extension option.

BN/mks
Attachments: 1. Resolution
e: Pegasus Risk Management, Inc.

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, 9/15/2026, Item No. 5., Item Page 4, Packet Page 27 RESOLUTION NO. __-___ C.S.

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

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH PEGASUS RISK MANAGEMENT, INC. FOR WORKERS’

COMPENSATION THIRD-PARTY ADMINISTRATION AND RELATED SERVICES WHEREAS, the City requires continued third-party administration services to support the effective and timely administration of its self-insured workers’ compensation program; WHEREAS, on February 3, 2026, the City issued a Request for Proposals (RFP) for a qualified and licensed Third-Party Administrator to provide workers’ compensation claims administration services for the City’s self-insured workers’ compensation program; WHEREAS, on March 2, 2026, the City received six (6) qualified proposals in response to the RFP, which were evaluated based on approach, organizational capacity, staffing, local familiarity, agreement compliance, reputation and stability, references, and cost; WHEREAS, based on the overall evaluation, staff determined that Pegasus Risk Management, Inc. offers the best overall value to the City; WHEREAS, staff recommends Pegasus’s annual flat-fee claims administration structure and per-bill bill-review pricing structure for an initial five-year term, with the option to extend the agreement for up to five additional one-year periods; 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.

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

Council Regular Meeting, 9/15/2026, Item No. 5., Item Page 5, Packet Page 28

1. Authorizes the City Manager to execute a professional services agreement with Pegasus Risk Management, Inc. for workers’ compensation third-party administration and related services for an initial five-year term, with the option to extend the agreement for up to five additional one-year periods.

2. Approves the annual flat-fee claims administration structure and authorizes fixed claims administration fees not to exceed the following annual amounts: $157,000 in Year 1; $157,000 in Year 2; $165,700 in Year 3; $165,700 in Year 4; $174,000 in Year 5; $174,000. The not-to-exceed claims administration amount is $819,400 for the initial five-year term.

3. Approves the per-bill pricing structure for bill-review services at rates not to exceed $8.75 per bill in Years 1–2, $9.00 per bill in Years 3–4, and $9.25 per bill in Year 5, plus a fee equal to 23% of preferred provider organization (PPO) network savings. Billreview rates for any extension years beyond Year 5 shall be established in accordance with the agreement before the applicable extension is exercised.

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, 9/15/2026, Item No. 5., Item Page 6, Packet Page 29 Council
Agenda Report
№12/25
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Mahnoor Abbasi, HCD Coordinator
SUBJECT: Authorize $99,805 in State of California Department of Housing and Community Development Permanent Local Housing Allocation (PLHA) Grant Funds and Authorize the City Manager to Enter into Agreements with Gathering for Women, and Community Human Services to Assist Persons Experiencing Homelessness (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt a resolution to authorize
$99,805 in Permanent Local Housing Allocation (PLHA)
grant funds to Gathering for Women, and Community
Human Services to assist persons experiencing
homelessness, and authorize the City Manager to enter
into grant agreements for this funding.

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 such as but not
limited to Gathering for Women and Community Human
Services.

POLICY IMPLICATIONS:

The State of California PLHA program provides funding
to local governments for housing related projects and
programs that assist in addressing unmet housing needs
of their local communities. The grant funds will support the City Council goals regarding affordable housing and supporting housing services for its residents, including the City Council value driver of “working to improve the quality of life of our residents…ensuring that Monterey remains a safe and welcoming place to live, work, and visit.”
CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: Yes.

FISCAL IMPLICATIONS:

The City’s 5-Year PLHA grant cycle is from Fiscal Year (FY) 2019 - FY 2024. The City anticipates receiving $672,805 in PLHA funds over this 5-year grant cycle. The City is allowed to Agenda Report Highlights
• The report requests City Council
authorization to allocate $99,805
in PLHA grant funds and to allow
the City Manager to enter into
agreements with Gathering for
Women and Community Human
Services to provide homeless
services.
• The funding supports the City’s
value driver of addressing
homelessness through
partnerships and aligns with the
PLHA program’s goals to assist
people experiencing or at risk of
homelessness.
• The $99,805 represents FY
2022-23 PLHA funds that must be
committed by April 30, 2027, and
are included in the FY 2026-27
budget.

Date: 9/15/2026
Item No.: 6.

Council Regular Meeting, 9/15/2026, Item No. 6., Item Page 1, Packet Page 30 №12/25
utilize 5% of the grant award for Administrative Costs. The grant funds are expenditures under the following PLHA Expenditure Account: 101-400-4305-0000-4703.

The following are PLHA funds available to the City (Activity #6 refers to homeless services described in more detail in the discussion section below):

FY 2019-2020: $116,419 (Awarded to MidPen Housing for Predevelopment Costs) FY 2020-2021: $180,952 (Activity #6) – to be expended in FY 2024-2025 FY 2021-2022: $199,132 (Activity #6) – to be expended in FY 2025-2026 FY 2022-2023: $99,805 (Activity #6) – to be expended in FY 2026-2027 FY 2023-2024: $76,497 (Activity #6) – to be expended in FY 2027-2028 Total $672,805
Agreements to expend grant funds for the amount of $99,805 must be submitted to the state to meet the request for funds deadline of April 30, 2027 and are appropriated in the City’s FY 2026-2027 budget. Grant funds in the approximate amount of $99,805 will be expended in the FY 2026-2027 budget.

ENVIRONMENTAL DETERMINATION:

The City of Monterey Planning Division determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (Article 20, Section 15378). In addition, CEQA Article 5, Section 15061 includes the general rule that CEQA applies only to projects 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 has no potential to cause any effect on the environment, this matter is not a project.

Because the proposed action does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. The appropriate level of CEQA review will be conducted on the future project prior to the City taking any action and on any future development of City property. No decision is considered by the City Council at this time that could be analyzed through the CEQA process.

ALTERNATIVES CONSIDERED:

The City must provide executed agreements to expend FY 2022-2023 funds ($99,805) by April 30, 2027, and therefore, it is recommended that the City enter into grant agreements with local homeless services providers for use of these PLHA funds. Staff recommends entering into agreements with Gathering for Women ($44,814.75), and Community Human Services ($50,000).

DISCUSSION:

The City Council is requested to distribute the State PLHA funds to provide homeless services in compliance with the Council adopted five-year PLHA plan.

Background
The City created a 5-Year Plan for Permanent Local Housing Allocation (PLHA) funding based on eligible activities under PLHA. The purpose of PLHA is to provide a permanent source of funding to all local governments in California to help cities and counties implement plans to increase the affordable housing stock, specifically:

Council Regular Meeting, 9/15/2026, Item No. 6., Item Page 2, Packet Page 31 №12/25
• increase the supply of housing for households at or below 60% of area median income; • increase assistance to affordable owner-occupied workforce housing; • assist persons experiencing or at risk of homelessness; • facilitate housing affordability, particularly for lower- and moderate-income households; • promote projects and programs to meet the local government’s unmet share of regional housing needs allocation; and
• ensure geographic equity in the distribution of the funds.

The City Council adopted Resolution 24-104 approving its five-year PLHA plan and allocating money to homeless services (Activity #6). Activity #6 allows funds to be utilized to assist persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

Notice of Funding Availability (NOFA) for PLHA funds
The City released a NOFA for PLHA grant funding on October 30, 2025, with a deadline for submitting completed applications on December 12, 2025. The City hosted a mandatory online application meeting on November 12, 2025. A rating and ranking committee consisting of members of the Housing Division, Planning Division, a member of the Planning Commission, a member of the Police Department’s Mutli-Disciplinary Outreach Team (MDOT) and City’s Housing Consultant, rated and ranked applications for award. The rating and ranking committee heard presentations from applicants and finalized rating and ranking on January 16, 2026. The organizations that applied for funding included Gathering for Women, Community Human Services and Victory Mission. To meet the request for funding expenditure deadline of April 30, 2027, it is recommended that the City enters into agreements with Gathering for Women ($44,814.75), and Community Human Services ($50,000). These agencies will provide homeless services in the City of Monterey.

Council Regular Meeting, 9/15/2026, Item No. 6., Item Page 3, Packet Page 32 №12/25
Conclusion
Staff recommends the City Council authorize $99,805 in PLHA funds to award funding for vital homeless programs and that the City Manager be authorized to enter into agreements with Gathering for Women and Community Human Services for FY 2026-2027.

KC/ma
Attachments: 1. Resolution
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 9/15/2026, Item No. 6., Item Page 4, Packet Page 33 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
AUTHORIZING $99,805 IN STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT PERMANENT LOCAL HOUSING ALLOCATION (PLHA)

GRANT FUNDS AND AUTHORIZING THE CITY MANAGER TO ENTER INTO

AGREEMENTS WITH GATHERING FOR WOMEN, AND COMMUNITY HUMAN SERVICES

TO ASSIST PERSONS EXPERIENCING HOMELESSNESS
WHEREAS, the State of California PLHA program provides funding to local governments for housing related projects and programs that assist in addressing unmet housing needs of their local communities;
WHEREAS, the grant funds will support the City Council goals regarding affordable housing and supporting housing services for its residents, including the City Council value driver of “working to improve the quality of life of our residents…ensuring that Monterey remains a safe and welcoming place to live, work, and visit.”;
WHEREAS, the City’s 5-Year PLHA grant cycle is from Fiscal Year (FY) 2019 - FY 2024.

The City anticipates receiving $672,805 in PLHA funds over this 5-year grant cycle. The City is allowed to utilize 5% of the grant award for administrative costs; WHEREAS, the City of Monterey completed the first Amendment to its 5-Year PLHA Plan on February 20, 2024, Resolution 24-023, to dedicate 95% of FY 2019-2020 funds to MidPen housing for predevelopment costs for an affordable housing development; WHEREAS, the City of Monterey completed its second Amendment to its 5-Year PLHA Plan on June 18, 2024, Resolution 24-104, dedicating the remaining funds in the 5-Year Plan to Activity #6 eligible activities (homeless services);
WHEREAS, Activity #6 allows the following activities: assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8225(b)(8);
WHEREAS, the City’s 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 such as but not limited to Gathering for Women and Community Human Services; WHEREAS, the City released a Notice of Funding Availability on October 30, 2025 with a deadline for submitting completed applications on December 12, 2025; WHEREAS, the City hosted a mandatory online application meeting on November 12, 2025. A rating and ranking committee consisting of members of the Housing Division, Planning Council Regular Meeting, 9/15/2026, Item No. 6., Item Page 5, Packet Page 34 Division, a member of the Planning Commission, a member of the Police Department’s MutliDisciplinary Outreach Team (MDOT) and City’s Housing Consultant, rated and ranked applications for award. The rating and ranking committee heard presentations from applicants and finalized rating and ranking on January 16, 2026. The organizations that applied for funding included Gathering for Women, Community Human Services and Victory Mission; and WHEREAS, the City of Monterey Planning Division determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (Article 20, Section 15378). In addition, CEQA Article 5, Section 15061 includes the general rule that CEQA applies only to projects 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 has no potential to cause any effect on the environment, this matter is not a project. Because the proposed action does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. The appropriate level of CEQA review will be conducted on the future project prior to the City taking any action and on any future development of City property. No decision is considered by the City Council at this time that could be analyzed through the CEQA process;

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

1. Authorizes PLHA program grant funds from the Expenditure Account of 101-400- 4305-0000-4703 in the amount of $99,805;

2. Awards $44,814.75 to Gathering for Women and $50,000 to Community Human Services for the provision of homeless services; and

3. Authorizes the City Manager to enter into agreements with Gathering for Women, and Community Human Services for expenditure of the grant funds in FY 2026-2027.

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, 9/15/2026, Item No. 6., Item Page 6, Packet Page 35 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director Jose Acosta, Housing and Community Development Coordinator SUBJECT: Receive Report on Housing Successor Agency Annual Reports (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council receive the Housing Successor
Agency Reports.

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:

The Housing Successor Agency Reports fulfill State
financial reporting requirements.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The Housing Successor Agency Reports report on a
variety of financial obligations including loans,
expenditures, and value of real property assets.

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 Agenda Report Highlights
• The City of Monterey became the
Housing Successor Agency after
the state dissolved all
redevelopment agencies in 2012
and transferred encumbered
housing assets to the City.
• These housing assets and their
earned income are held in the Low
and Moderate Income Housing
Asset Fund to be used according to
state health and safety codes.
• City staff prepared the required
annual Housing Successor Agency
Reports to correct an omission
spanning from 2014 to 2025.
• Following review by the City Council
as required by state law these
reports would be posted on the city
website.

Date: 9/15/2026
Item No.: 7.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 1, Packet Page 36 №10/24
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:

State law requires the City to prepare an annual Housing Successor Agency Report. No alternatives were considered.

DISCUSSION:

The City of Monterey Redevelopment Agency, along with all other 400 redevelopment agencies in California, was dissolved on February 1, 2012 by the action of the State Legislature.

The City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City.

These assets, as well as income earned on the assets, are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

The City of Monterey has prepared the required annual reports which should have been reported on an annual basis separately to the City Council (See Attachment). Staff is correcting this omission from 2014-2025. These reports will be posted on the City’s website after their review by the City Council as required by State law.

KC
Attachments: 1. Housing Successor Agency Reports
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, 9/15/2026, Item No. 7., Item Page 2, Packet Page 37 ATTACHMENT 1
1413\05\4171739.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2013-2014
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

HSC Section 34176.1(f) requires the Housing Successor to conduct, and provide to its governing body, an independent financial audit of the LMIHAF within six months of the end of each fiscal year, which may be included in its agency-wide independent financial audit. The Housing Successor must also provide to its governing body, and post on its Internet website, all the following information for the previous fiscal year.
(1) Reporting Requirement: The amount the City received pursuant to the loan repayment formula described in HSC Section 34191.4(b)(3)(A).

None
Note: This refers to loans from a City to the RDA. The City of Monterey has no RDA loans. (2) Reporting Requirement: Amount Deposited into LMIHAF The amount deposited to the Low- and Moderate-Income Housing Asset Fund (LMIHAF), distinguishing between amounts deposited for other items listed on a Recognized Obligation Payment Schedule (ROPS) and other amounts deposited.

A total of $149,094 was deposited into the LMIHAF in the 2013-2014 Fiscal Year. Of the total funds deposited into the LMIHAF, $0 was held for items listed on the ROPS. (3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2013-14
LMIHAF Ending Balance $7,912,806
Balance held for ROPS items $1,745,685
Balance available for other uses $6,167,121
(4) Reporting Requirement: Description of Expenditures from LMIHAF Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 3, Packet Page 38 ATTACHMENT 1
1413\05\4171739.1
A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2013-2014 AMOUNT
A) Administration and Monitoring $193,895
B) Homeless Prevention and Rapid
Rehousing
$37,157
C) Housing Development $ 76,064
TOTAL $307,116
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former Redevelopment Agency as listed in the Housing Asset Transfer Schedule (HAT) approved by the Department of Finance (DOF) as listed in the HAT schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of properties purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 6,263,270.00
Sum of these two amounts $ 16,277,856.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2013-2014. (7) Reporting Requirement: Project Descriptions
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 4, Packet Page 39 ATTACHMENT 1
1413\05\4171739.1
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

The Housing Successor holds property tax revenue for the Monterey Hotel Apartment Project, a mixed-use property. With approval from the Department of Finance, the Housing Successor retained $1,745,685 (from the Reserve Fund and Other Fund) in former Redevelopment Agency (RDA) housing set-aside funds as an enforceable obligation. These funds are recognized in the Recognized Obligation Payment Schedule (ROPS) and are obligated for the completion of the apartment portion of the Monterey Hotel mixed-use property.

The Monterey Hotel mixed-use property includes a hotel addition, retail commercial space, and 18 low and moderate income (LMI) apartments. On June 19 of 2007, the City of Monterey provided the project owner with a $3,000,000 construction loan consisting of former RDA and HOME funds. On December 9 of 2009, project default was noticed. On September 26 of 2012, after the RDA was dissolved by the California Governor in February of that year, the loan asset was transferred to the Housing Successor. Later, on December 31, 2013, the Housing Successor gained ownership of the apartment portion of the development by deed in lieu of foreclosure.

The Monterey Hotel Apartments are set to be completed subject to a Disposition and Development Agreement, Ground Lease, and Amended Regulatory Agreement. The apartments will be restricted to very low-, low-, and median-income households for a minimum of 55 years.

The retained funds are being used to complete construction. (8) Reporting Requirement: For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Awaiting resale to qualified low-income firsttime homebuyer. 565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Awaiting resale to qualified low-income firsttime homebuyer. 20 Yerba Buena Court #20 Awaiting repair and rehabilitation work before resale to qualified low-income firsttime homebuyer. 330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Awaiting resale to qualified low-income firsttime homebuyer.

Real property acquired by Successor Agency post 2/1/2012 406-410 Alvarado Street Affordable housing apartment construction is anticipated.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 5, Packet Page 40 ATTACHMENT 1
1413\05\4171739.1
(9) Reporting Requirement: A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet website the implementation plan of the former redevelopment agency.

Outstanding obligations remaining as of
2/1/2012
None
Progress in meeting above listed obligations None
Plans to meet unmet obligations listed above None
Note: This provision mandates that low- and moderate-income housing removed by the former redevelopment agency be replaced and require that 15 percent of new housing constructed in the redevelopment project area be replaced.

Senior Housing Test: FY 2003-2013
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental Housing -
assisted individually or jointly by the Housing
Successor or its former redevelopment agency
0 Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

The LMIHAF does not have an Excess Surplus. The Housing Successor has not yet existed for a period of four years since dissolution of the former redevelopment agency on February 1, 2012.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 6, Packet Page 41 ATTACHMENT 1
1413\05\4171739.1
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 45
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$149,094.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 7, Packet Page 42 ATTACHMENT 1
1413\05\4171898.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2014-2015
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $121,693 was deposited into the LMIHAF in the 2014-2015 Fiscal Year. Of the total funds deposited into the LMIHAF, $0 was held for items listed on the ROPS. (3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2014-15
LMIHAF Ending Balance $7,545,921
Balance held for ROPS items $1,531,043
Balance available for other uses $6,014,878
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 8, Packet Page 43 ATTACHMENT 1
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2014-2015 AMOUNT
A) Administration and Monitoring $250,078
B) Homeless Prevention and Rapid
Rehousing
$40,002
C) Housing Development $198,497
TOTAL $488,577
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2014-2015.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 9, Packet Page 44 ATTACHMENT 1
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(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

The Housing Successor holds property tax revenue on the Monterey Hotel Apartment Project, a mixed-use property. With approval from the Department of Finance, the Housing Successor retained $1,694,943 (from the Reserve Fund and Other Fund) in former Redevelopment Agency (RDA) housing set-aside funds as an enforceable obligation. These funds are recognized in the Recognized Obligation Payment Schedule (ROPS) and are obligated for the completion of the apartment portion of the Monterey Hotel mixed-use property.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Awaiting resale to qualified low-income firsttime homebuyer. 20 Yerba Buena Court #20 Repair and rehabilitation scope of work prepared and awaiting notice to proceed
before resale to qualified low-income firsttime homebuyer. 330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Awaiting resale to qualified low-income firsttime homebuyer.

Real property acquired by Successor Agency post 2/1/2012 406-410 Alvarado Street Affordable housing apartment construction is anticipated.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 10, Packet Page 45 ATTACHMENT 1
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(9) Reporting Requirement: A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet website the implementation plan of the former redevelopment agency.

Outstanding obligations remaining as of
2/1/2012
None.

Progress in meeting above listed obligations None
Plans to meet unmet obligations listed above None
Note: This provision mandates that low- and moderate-income housing removed by the former redevelopment agency be replaced and require that 15 percent of new housing constructed in the redevelopment project area be replaced.

Senior Housing Test: FY 2004-2014
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

The LMIHAF does not have an Excess Surplus. The Housing Successor has not yet existed for a period of four years since dissolution of the former redevelopment agency on February 1, 2012.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 11, Packet Page 46 ATTACHMENT 1
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(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 45
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$121,693.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 12, Packet Page 47 ATTACHMENT 1
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HOUSING SUCCESSOR ANNUAL REPORT FY 2015-2016
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

HSC Section 34176.1(f) requires the Housing Successor to conduct, and provide to its governing body, an independent financial audit of the LMIHAF within six months of the end of each fiscal year, which may be included in its agency-wide independent financial audit. The Housing Successor must also provide to its governing body, and post on its Internet website, all the following information for the previous fiscal year. All other required information is presented below. (1) Reporting Requirement: The amount the City received pursuant to the loan repayment formula described in HSC Section 34191.4(b)(3)(A).

None
Note: This refers to loans from a City to the RDA. The City of Monterey has no RDA loans. (2) Reporting Requirement: Amount Deposited into LMIHAF The amount deposited to the Low- and Moderate-Income Housing Asset Fund (LMIHAF) during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.

A total of $177,598 was deposited into the LMIHAF in the 2015-2016 Fiscal Year. Of the total funds deposited into the LMIHAF, $0 was held for items listed on the ROPS. (3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2015-16
LMIHAF Ending Balance $7,694,702
Balance held for ROPS items $928,244
Balance available for other uses $6,766,458
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 13, Packet Page 48 ATTACHMENT 1
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2015-2016 AMOUNT
A) Administration and Monitoring $295,838
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $113,450
TOTAL $409,288
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2015-2016.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 14, Packet Page 49 ATTACHMENT 1
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(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

The Housing Successor holds property tax revenue on the Monterey Hotel Apartment Project, a mixed-use property. With approval from the Department of Finance, the Housing Successor retained $1,557,401 (from the Reserve Fund and Other Fund) in former Redevelopment Agency (RDA) housing set-aside funds as an enforceable obligation. These funds are recognized in the Recognized Obligation Payment Schedule (ROPS) and are obligated for the completion of the apartment portion of the Monterey Hotel mixed-use property.

There was litigation and no owner from 2011
to August 14, 2018, and eventually the
property was sold.
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 15, Packet Page 50 ATTACHMENT 1
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595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

Real property acquired by Successor Agency post 2/1/2012 406-410 Alvarado Street Affordable housing apartment construction is anticipated.
(9) Reporting Requirement: Description of Outstanding Obligations Under Section 33413: A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet website the implementation plan of the former redevelopment agency.

Outstanding obligations remaining as of
2/1/2012
None
Progress in meeting above listed obligations None
Plans to meet unmet obligations listed above None
Note: This provision mandates that low- and moderate-income housing removed by the former redevelopment agency be replaced and requires that 15 percent of new housing constructed in the redevelopment project area be replaced.

Senior Housing Test: FY 2005-2015
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 16, Packet Page 51 ATTACHMENT 1
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exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

The LMIHAF does not have an Excess Surplus. The Housing Successor has not yet existed for a period of four years since dissolution of the former redevelopment agency on February 1, 2012. (13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units 45
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$177,598.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 17, Packet Page 52 ATTACHMENT 1
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HOUSING SUCCESSOR ANNUAL REPORT FY 2016-2017
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $212,404 was deposited into the LMIHAF in the 2016-2017 Fiscal Year. Of the total funds deposited into the LMIHAF, $0 was held for items listed on the ROPS. (3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2016-17
LMIHAF Ending Balance $6,850,957
Balance held for ROPS items $1,320,066
Balance available for other uses $5,530,891
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 18, Packet Page 53 ATTACHMENT 1
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2016-2017 AMOUNT
A) Administration and Monitoring $239,407
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $1,242,196
TOTAL $1,481,603
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2016-2017. (7) Reporting Requirement: Project Descriptions
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 19, Packet Page 54 ATTACHMENT 1
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A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

The Housing Successor holds property tax revenue on the Monterey Hotel Apartment Project, a mixed-use property. With approval from the Department of Finance, the Housing Successor retained $1,320,066 (from the Reserve Fund and Other Fund) in former Redevelopment Agency (RDA) housing set-aside funds as an enforceable obligation. These funds are recognized in the Recognized Obligation Payment Schedule (ROPS) and are obligated for the completion of the apartment portion of the Monterey Hotel mixed-use property.

Real property acquired by Successor Agency post 2/1/2012 Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 20, Packet Page 55 ATTACHMENT 1
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Real property acquired by former RDA prior to 2/1/2012
406-410 Alvarado Street Affordable housing apartment construction is in process and scheduled to be completed
in 2017.
(9) Reporting Requirement: A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet website the implementation plan of the former redevelopment agency.

Senior Housing Test: FY 2006-2016
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

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FY 2016-17 Ending Balance $6,850,957
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(26,420)
Loans Receivable
$(6,512,596)
Property Held for Resale $(186,781)
Available Housing Funds $124,347
Deposits:

FY 2012-13 (Extraordinary Event) $1,983,293
FY 2013-14 $149,094
FY 2014-15 $121,693
FY 2015-16 $177,598
Total of Deposit over prior 4 years $2,431,678
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate deposit 0
Excess Surplus 0
The available LMIHAF balance of $124,347 is less than a $1,000,000 and it is less than the aggregate amount deposited into the fund during the preceding four years; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 45
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.
10 units:
• 1 Surfway #112
• 1 Surfway #115
• 1 Surfway #128
• 1 Surfway #130
• 1 Surfway #133
• 1 Surfway #139
• 1 Surfway #227
• 125 Surfway #317
• 125 Surfway #335
• 125 Surfway #341
The units were lost because of an early
release of the deed restrictions; the
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 22, Packet Page 57 ATTACHMENT 1
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maintenance costs were too high because of
sand mitigation. See Resolution 16-021CS.

C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$212,404.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 23, Packet Page 58 ATTACHMENT 1
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HOUSING SUCCESSOR ANNUAL REPORT FY 2017-2018
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

None
Note: This refers to loans from a City to the RDA. Monterey has no RDA loans. (2) Reporting Requirement: Amount Deposited into LMIHAF The amount deposited to the Low- and Moderate-Income Housing Asset Fund (LMIHAF), distinguishing between amounts deposited pursuant to HSC Section 34191.4(b)(3)(B) & (C), amounts deposited for other items listed on a Recognized Obligation Payment Schedule (ROPS) and other amounts deposited.

A total of $146,778 was deposited into the LMIHAF in the 2017-2018 Fiscal Year. Of the total funds deposited into the LMIHAF, $0 was held for items listed on the ROPS. (3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2017-18
LMIHAF Ending Balance $5,557,728
Balance held for ROPS Items $233,594
Balance available for other uses $5,324,134
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2017-2018 AMOUNT
A) Administration and Monitoring $230,303
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $1,208,107
TOTAL $1,438,410
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2017-2018.

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(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

The Housing Successor holds property tax revenue for the Monterey Hotel Apartment Project, a mixed-use property. With approval from the Department of Finance, the Housing Successor retained $233,594 (from the Reserve Fund and Other Fund) in former Redevelopment Agency (RDA) housing set-aside funds as an enforceable obligation. These funds are recognized in the Recognized Obligation Payment Schedule (ROPS) and are obligated for the completion of the apartment portion of the Monterey Hotel mixed-use property.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 26, Packet Page 61 ATTACHMENT 1
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Real property acquired by former RDA prior to 2/1/2012
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

Real property acquired by Successor Agency post 2/1/2012 406-410 Alvarado Street Affordable housing apartment construction featuring 18 units is complete, with 3 very
low-, 9 low-, and 6 median-income units
available for rent
(9) Reporting Requirement: A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet website the implementation plan of the former redevelopment agency.

Senior Housing Test: FY 2007 – 2017
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
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The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2017-18 Ending Balance $5,557,728
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(22,060)
Loans Receivable
$(6,455,499)
Property Held for Resale $(186,781)
Available Housing Funds $(1,107,425)
Deposits:

FY 2013-14 $149,094
FY 2014-15 $121,693
FY 2015-16 $177,598
FY 2016-17 $212,404
Total of Deposit over prior 4 years $660,789
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate deposit 0
Excess Surplus 0
The available LMIHAF balance is negative for this fiscal year; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$146,778.00
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 28, Packet Page 63 ATTACHMENT 1
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D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 29, Packet Page 64 ATTACHMENT 1
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HOUSING SUCCESSOR ANNUAL REPORT FY 2018-2019
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $153,121 was deposited into the LMIHAF in the 2018-2019 Fiscal Year. Of the total funds deposited into the LMIHAF, $0 was held for items listed on the ROPS. (3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2018-19
LMIHAF Ending Balance $5,451,711
Balance held ROPS Items $0
Balance available for other uses $5,451,711
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2018-2019 AMOUNT
A) Administration and Monitoring $242,511
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development (moderate,
low & very low income units)
$25,101
TOTAL $267,612
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 6,598,181.00
Sum of these two amounts $ 16,612,767.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1©(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 31, Packet Page 66 ATTACHMENT 1
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None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1©(2) during Fiscal Year 2018-2019. (7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

N/A – The Housing Successor currently does not receive or hold any property tax revenue on any projects pursuant to the Recognized Obligation Payment Schedule. (8) Reporting Requirement: For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project.

Real property acquired by Successor Agency post 2/1/2012 406-410 Alvarado Street Mixed-use development containing 18 rental units that are designated low- and moderateincome.
(9) Reporting Requirement: A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet website the implementation plan of the former redevelopment agency.

Outstanding obligations remaining as of
2/1/2012
None
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Progress in meeting above listed obligations None
Plans to meet unmet obligations listed above None
Note: This provision mandates that low- and moderate-income housing removed by the former redevelopment agency be replaced and require that 15 percent of new housing constructed in the redevelopment project area be replaced.

City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ (10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter.[for expenditures for Jan 1, 2014- 2019) If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income Units
Low-Income
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year
Total
Expenditure
(2014 – 2019)
2014-15 - - - - $198,497
2015-16 - - - - $113,450
2016-17 - - - -
$1,242,196
2017-18 6 9 3 -
$1,208,107
2018-19 - - - - $25,101
TOTAL 6 9 3 - $2,787,351
Note: Costs are related to Monterey Hotel units that were finalized in 2018.

Percent Spent on Extremely Low-Income Units: 0%
This expenditure reflects the completion of the Monterey Hotel Apartment Project with 18 affordable units. However, it did not create any Extremely Low-Income Units. (11) Reporting Requirement: Senior Housing Test
The percentage of units of deed restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 33, Packet Page 68 ATTACHMENT 1
1413\05\4188676.1
restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period.

Senior Housing Test: FY 2008-2018
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2018-19 Ending Balance $5,451,711
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(14,876)
Loans Receivable $(6,483,606)
Property Held for Resale 0
Available Housing Funds $(1,047,584)
Deposits:

FY 2014-15 $121,693
FY 2015-16 $177,598
FY 2016-17 $212,404
FY 2017-18 $146,778
Total of Deposit over prior 4 years $658,473
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate deposit 0
Excess Surplus 0
The available LMIHAF balance is negative for this fiscal year; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 34, Packet Page 69 ATTACHMENT 1
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A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$153,121.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 35, Packet Page 70 ATTACHMENT 1
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HOUSING SUCCESSOR ANNUAL REPORT FY 2019-2020
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $188,649 was deposited into the LMIHAF in the 2019-2020 Fiscal Year. $0 was held for items listed on the ROPS.
(3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2019-20
LMIHAF Ending Balance $5,458,366
Balance held for ROPS Items $0
Balance available for other uses $5,458,366
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 36, Packet Page 71 ATTACHMENT 1
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2019-2020 AMOUNT
A) Administration and Monitoring $188,969
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development (Moderate,
low and very low income units)
$1,031
TOTAL $190,000
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 6,510,066.00
Sum of these two amounts $ 16,524,652.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 37, Packet Page 72 ATTACHMENT 1
1413\05\4188685.1
None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2019-2020. (7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

N/A - The Housing Successor currently does not receive or hold any property tax revenue on any projects pursuant to the Recognized Obligation Payment Schedule. (8) Reporting Requirement: For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Sold to qualified low-income first-time homebuyer on 12/11/2015.
20 Yerba Buena Court #20 Sold to a qualifying low-income first-time homebuyer on August 14, 2018
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 38, Packet Page 73 ATTACHMENT 1
1413\05\4188685.1
City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ (10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter. If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income
Units
LowIncome
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year Total
Expenditure
(2015 - 2020)
2015-16 - - - - $113,450
2016-17 - - - - $1,242,196
2017-18 6 9 3 - $1,208,107
2018-19 - 1 - - $25,101
2019-20 - - - - $1,031
TOTAL 6 10 3 - $2,589,885
Note: Costs (2015-2018) are related to Monterey Hotel units that were finalized in 2018. 2018- 2019 cost include 20 Yerba Buena Court #20 that was deed restricted as a low income unit.

Percent Spent on Extremely Low-Income Units: 0%
No Extremely Low Income Units were created.
(11) Reporting Requirement: Senior Housing Test
The percentage of units of deed restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period.

Senior Housing Test: FY 2009-2019
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 39, Packet Page 74 ATTACHMENT 1
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Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2019-20 Ending Balance $5,458,366
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(11,986)
Loans Receivable
$(6,490,384)
Property Held for Resale $(160,000)
Available Housing Funds $(1,204,817)
Deposits:

FY 2015-16 $177,598
FY 2016-17 $212,404
FY 2017-18 $146,778
FY 2018-19 $153,121
Total of Deposit over prior 4 years $689,901
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate deposit 0
Excess Surplus 0
The available LMIHAF balance is negative for this fiscal year; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 40, Packet Page 75 ATTACHMENT 1
1413\05\4188685.1
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$188,649.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 41, Packet Page 76 1413\05\4188700.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2020-2021
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $569,669 was deposited into the LMIHAF in the 2020-2021 Fiscal Year. $0 was held for items listed on the ROPS.
(3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2020-21
LMIHAF Ending Balance $5,520,235
Balance held for ROPS Items $0
Balance available for other uses $5,520,235
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2020-2021 AMOUNT
A) Administration and Monitoring $197,547
B) Homeless Prevention and Rapid
Rehousing
$361,444
C) Housing Development $0
TOTAL $558,991
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $6,399,309.00
Sum of these two amounts $16,413,895.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2020-2021. (7) Reporting Requirement: Project Descriptions
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A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Sold to qualified low-income first-time homebuyer on 12/11/2015.
20 Yerba Buena Court #20 Sold to a qualifying low-income first-time homebuyer on August 14, 2018
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 44, Packet Page 79 1413\05\4188700.1
(10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter. If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income Units
Low-Income
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year
Total
Expenditure
(2016 - 2021)
2016-17 - - - - $1,242,196
2017-18 6 9 3 -
$1,208,107
2018-19 - 1 - - $25,101
2019-20 - - - - $1,031
2020-21 - - - - 0
TOTAL 6 10 3 - $2,476,435
Note: Costs (2015-2018) are related to Monterey Hotel units that were finalized in 2018. 2018- 2019 cost include 20 Yerba Buena Court #20 that was deed restricted as a low income unit.

Percent Spent on Extremely Low-Income Units: 0%
No Extremely Low-Income Units were created.
(11) Reporting Requirement: Senior Housing Test
The percentage of units of deed restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period.

Senior Housing Test: FY 2010-2020
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 45, Packet Page 80 1413\05\4188700.1
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2020-21 Ending Balance $5,520,235
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(36,468)
Loans Receivable
$(5,903,186)
Property Held for Resale 0
Available Housing Funds $(420,232)
Deposits:

FY 2016-17 $212,404
FY 2017-18 $146,778
FY 2018-19 $153,121
FY 2019-20 $188,649
Total of Deposit over prior 4 years $700,952
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate deposit 0
Excess Surplus 0
The available LMIHAF balance is negative for this fiscal year; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$569,669.00
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D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 47, Packet Page 82 ATTACHMENT 1
1413\05\4188727.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2021-2022
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $277,127 was deposited into the LMIHAF in the 2021-2022 Fiscal Year. $0 was held for items listed on the ROPS.
(3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2021-22
LMIHAF Ending Balance $5,524,411
Balance held for ROPS Items $0
Balance available for other uses $5,524,411
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 48, Packet Page 83 ATTACHMENT 1
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(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2021-2022 AMOUNT
A) Administration and Monitoring $254,953
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $0
TOTAL $254,953
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 6,173,203.00
Sum of these two amounts $ 16,187,789.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2021-2022.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 49, Packet Page 84 ATTACHMENT 1
1413\05\4188727.1
(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

Not applicable. The Housing Successor currently does not receive or hold any property tax revenue on any projects pursuant to the Recognized Obligation Payment Schedule. (8) Reporting Requirement: For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Sold to qualified low-income first-time homebuyer on 12/11/2015.
20 Yerba Buena Court #20 Sold to a qualifying low-income first-time homebuyer on August 14, 2018
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 50, Packet Page 85 ATTACHMENT 1
1413\05\4188727.1
(10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter. If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income Units
Low-Income
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year
Total
Expenditure
(2017 - 2022)
2017-18 6 9 3 -
$1,208,107
2018-19 - 1 - - $25,101
2019-20 - - - - $1,031
2020-21 - - - - 0
2021-22 - - - - 0
TOTAL 6 10 3 - $1,234,239
Note: Costs (2015-2018) are related to Monterey Hotel units that were finalized in 2018. 2018- 2019 cost include 20 Yerba Buena Court #20 that was deed restricted as a low income unit.

Senior Housing Test: FY 2012-2022
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 51, Packet Page 86 ATTACHMENT 1
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The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2021-22 Ending Balance $5,524,411
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest
Receivable
$(36,509)
Loans Receivable
$(5,552,842)
Property Held for Resale 0
Available Housing Funds $(65,753)
Deposits:

FY 2017-18 $146,778
FY 2018-19 $153,121
FY 2019-20 $188,649
FY 2020-21 $ 569,669
Total of Deposit over prior 4 years $1,058,217
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate
deposit
0 Excess Surplus 0
The available LMIHAF balance is negative for this fiscal year; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 52, Packet Page 87 ATTACHMENT 1
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C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$277,127.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 53, Packet Page 88 ATTACHMENT 1
1413\05\4188735.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2022-2023
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $329,552 was deposited into the LMIHAF in the 2022-2023 Fiscal Year. $0 was held for items listed on the ROPS.
(3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2022-23
LMIHAF Ending Balance $5,954,402
Balance held for ROPS Items $0
Balance available for other uses $5,954,402
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 54, Packet Page 89 ATTACHMENT 1
1413\05\4188735.1
(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2022-2023 AMOUNT
A) Administration and Monitoring $323,606
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $0
TOTAL $323,606
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 5,927,248.00
Sum of these two amounts $15,941,834.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2022-2023.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 55, Packet Page 90 ATTACHMENT 1
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(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Sold to qualified low-income first-time homebuyer on 12/11/2015.
20 Yerba Buena Court #20 Sold to a qualifying low-income first-time homebuyer on August 14, 2018
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 56, Packet Page 91 ATTACHMENT 1
1413\05\4188735.1
(10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter. If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income Units
Low-Income
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year
Total
Expenditure
(2018 - 2023)
2018-19 - 1 - - $25,101
2019-20 - - - - $1,031
2020-21 - - - - 0
2021-22 - - - - 0
2022-23 - - - - 0
TOTAL - - - - $26,132
2019 cost include 20 Yerba Buena Court #20 that was deed restricted as a low income unit.

Percent Spent on Extremely Low-Income Units: 0%
No units were created.
(11) Reporting Requirement: Senior Housing Test
The percentage of units of deed restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period.

Senior Housing Test: FY 2013-2023
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 57, Packet Page 92 ATTACHMENT 1
1413\05\4188735.1
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2022-23 Ending Balance $5,954,402
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(42,638)
Loans Receivable $(5,313,976)
Property Held for Resale 0
Available Housing Funds $596,975
Deposits:

FY 2018-19 $153,121
FY 2019-20 $188,649
FY 2020-21 $569,669
FY 2021-22 $277,127
Total of Deposit over prior 4 years $1,188,566
Unencumbered amount exceeding $1,000,000 0
Unencumbered amount exceeding aggregate deposit 0
Excess Surplus 0
The available LMIHAF balance is less than a $1,000,000. It is also less than the aggregate amount deposited in the preceding four fiscal years; therefore, the LMIHAF does not have an excess surplus.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.
565 English Avenue #13
The unit met the 30-year deed restriction.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 58, Packet Page 93 ATTACHMENT 1
1413\05\4188735.1
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$329,552.00
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 59, Packet Page 94 ATTACHMENT 1
1413\05\4188758.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2023-2024
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $450,982 was deposited into the LMIHAF in the 2023-2024 Fiscal Year. $0 was held for items listed on the ROPS.
(3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2023-24
LMIHAF Ending Balance $6,430,592
Balance held for ROPS Items $0
Balance available for other uses $6,430,592
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 60, Packet Page 95 ATTACHMENT 1
1413\05\4188758.1
(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2023-2024 AMOUNT
A) Administration and Monitoring $74,952
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $0
TOTAL $74,952
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 5,711,064.00
Sum of these two amounts $15,725,650.18
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2023-2024.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 61, Packet Page 96 ATTACHMENT 1
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(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Sold to qualified low-income first-time homebuyer on 12/11/2015.
20 Yerba Buena Court #20 Sold to a qualifying low-income first-time homebuyer on August 14, 2018
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 62, Packet Page 97 ATTACHMENT 1
1413\05\4188758.1
(10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter. If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income Units
Low-Income
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year
Total
Expenditure
(2019 - 2024)
2019-20 - - - - $1,031
2020-21 - - - - 0
2021-22 - - - - 0
2022-23 - - - - 0
2023-24 - - - - 0
TOTAL - - - - $1,031
Percent Spent on Extremely Low-Income Units: 0%
No units were created.
(11) Reporting Requirement: Senior Housing Test
The percentage of units of deed restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period.

Senior Housing Test: FY 2014-2024
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 63, Packet Page 98 ATTACHMENT 1
1413\05\4188758.1
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2023-24 Ending Balance $6,430,592
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(47,791)
Loans Receivable
$(4,971,100)
Property Held for Resale 0
Available Housing Funds $1,410,888
Deposits:

FY 2019-20 $188,649
FY 2020-21 $569,669
FY 2021-22 $277,127
FY 2022-23 $329,552
Total of Deposit over prior 4 years $1,364,997
Unencumbered amount exceeding $1,000,000 $410,888
Unencumbered amount exceeding aggregate deposit $45,891 Excess Surplus $45,891
The LMIHAF does have an excess surplus of $45,891.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$450,982
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 64, Packet Page 99 ATTACHMENT 1
1413\05\4188758.1
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 65, Packet Page 100 ATTACHMENT 1
1413\05\4188811.1
HOUSING SUCCESSOR ANNUAL REPORT FY 2024-2025
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(F) As of February 1, 2012, the City of Monterey became the Housing Successor Agency for the former Redevelopment Agency of the City of Monterey. All encumbered housing assets were transferred to the City. These assets as well as income earned on the assets are held in the Low and Moderate Income Housing Asset Fund (LMIHAF) and are used pursuant to the housing provisions of the California Health & Safety Code (HSC) Sections 33330 et seq.

A total of $512,883 was deposited into the LMIHAF in the 2024-2025 Fiscal Year. $0 was held for items listed on the ROPS.
(3) Reporting Requirement: Ending Balance of LMIHAF
A statement of the balance in the LMIHAF as of the close of the fiscal year, distinguishing any amounts held for items on the Recognized Obligation Payment Schedule (ROPS) from other amounts.

FY2024-25
LMIHAF Ending Balance $6,432,534
Balance held for ROPS Items $0
Balance available for other uses $6,432,534
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 66, Packet Page 101 ATTACHMENT 1
1413\05\4188811.1
(4) Reporting Requirement: Description of Expenditures from LMIHAF A description of expenditures from the fund by category, including, but not limited to, expenditures: (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in HSC Section 34176.1(a)(2) and (3); (B) for homeless prevention and rapid rehousing services for the development of housing described in HSC Section 34176.1(a)(2); and (C) for the development of housing pursuant to HSC Section 34176.1(a)(3).

CATEGORY 2024-2025 AMOUNT
A) Administration and Monitoring $79,410
B) Homeless Prevention and Rapid
Rehousing
$0
C) Housing Development $0
TOTAL $79,410
(5) Reporting Requirement: Statutory Value of Assets Owned by Housing Successor As described in HSC Section 34176.1(a)(1), the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.

The following provides the statutory value of assets owned by the Housing Successor.

Statutory value of real property $ 10,014,586.18
Value of loans and grants receivable $ 5,259,489.00
Sum of these two amounts $15,274,075.19
(6) Reporting Requirement: Description of Transfers
A description of any transfers made pursuant HSC Section 34176.1(c)(2) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.

None. The Housing Successor did not make any LMIHAF transfers to other Housing Successors under Section 34176.1(c)(2) during Fiscal Year 2023-2024.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 67, Packet Page 102 ATTACHMENT 1
1413\05\4188811.1
(7) Reporting Requirement: Project Descriptions
A description of any project for which the housing successor receives or holds property tax revenue pursuant to a Recognized Obligation Payment Schedule and the status of that project.

Real property acquired by former RDA prior to 2/1/2012
565 English Avenue #7 Sold to qualified low-income first-time homebuyer on 8/29/2014.
565 English Avenue #9 Sold to qualified low-income first-time homebuyer on 5/30/2014.
300 Glenwood Circle #167 Sold to qualified low-income first-time homebuyer on 12/11/2015.
20 Yerba Buena Court #20 Sold to a qualifying low-income first-time homebuyer on August 14, 2018
330-350 Alvarado Street (351 Calle Principal) Mixed-use development containing 30 rental units, of which 29 are designated low- and
moderate-income.
595 English Avenue Sold to qualified low-income first-time homebuyer on 9/1/2016.

City of Monterey Redevelopment Agency 5-Year Implementation Plan FY 2009/10-FY 2013/14:
https://isearchmonterey.org/publicaccess/api/Document/Ab8HyjciHxvseulenBXKw0CUS9Wt3Sb dmCATnUXV0DAVhEARkumNu97zZb7tmmmDyEm%C3%89ERRqTHXi9Bh2AX3eaKM%3D/ Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 68, Packet Page 103 ATTACHMENT 1
1413\05\4188811.1
(10) Reporting Requirement: Income Test (Required starting in 2019) The information required by HSC Section 34176.1(a)(3)(B) or a description of expenditures by income restriction for a five-year period and whether the statutory income thresholds have been met. HSC Section 34176.1(a)(3)(A) requires the Housing Successor to spend at least 30 percent of funds used for housing development for rental housing affordable to and occupied by households earning 30 percent or less of area median income (extremely low-income). The Housing Successor must demonstrate compliance beginning in the annual report for 2019, and every five years thereafter. If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the report until the Housing Successor demonstrates compliance with the Extremely Low-Income requirement in its annual report.

Fiscal Year Moderate
Income Units
Low-Income
Units
Very LowIncome
Units
Extremely
Low-Income
Units
Five Year
Total
Expenditure
(2020 - 2025)
2020-21 - - - - 0
2021-22 - - - - 0
2022-23 - - - - 0
2023-24 - - - - 0
2024-25 - - - - 0
TOTAL - - - - 0
Percent Spent on Extremely Low-Income Units: 0%
No units were created.
(11) Reporting Requirement: Senior Housing Test
The percentage of units of deed restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period.

Senior Housing Test: FY 2015-2025
Units of assisted rental housing restricted to
seniors
0 Total units of assisted rental housing 0
Percentage of deed restricted units to seniors 0%
(12) Reporting Requirement: Excess Surplus Test
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 69, Packet Page 104 ATTACHMENT 1
1413\05\4188811.1
The amount of any excess surplus, the amount of time that the agency has had any excess surplus, and the housing successor’s plan for eliminating the excess surplus. HSC Section 34176.1(d) defines “excess surplus” to mean an unencumbered amount in the LMIHAF that exceeds the greater of $1 million or the aggregate amount deposited into the LMIHAF during the Housing Successor’s preceding four fiscal years.

FY 2024-25 Ending Balance $6,432,534
Less Unavailable Amounts:

Held by Fiscal Agent $(813)
Accounts Receivable/Interest Receivable $(51,752)
Loans Receivable $(4,661,575)
Property Held for Resale 0
Available Housing Funds $1,718,394
Deposits:

FY 2020-21 $569,669
FY 2021-22 $277,127
FY 2022-23 $329,552
FY 2023-24 $450,982
Total of Deposit over prior 4 years $1,627,330
Unencumbered amount exceeding $1,000,000 $718,394
Unencumbered amount exceeding aggregate deposit $91,064 Excess Surplus $91,064
The LMIHAF does have an excess surplus of $91,064.
(13) Reporting Requirement: Inventory of Homeownership Units Assisted An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low- and Moderate-Income Housing Fund pursuant to Section 33413(f). This inventory shall include all the following information:

A. Number of assisted units. 63
B. Number of units lost to the portfolio
after February 1, 2012, and the reason
for those losses.

None
C. Any funds returned to the housing
successor as part of an adopted
program that protects the former
redevelopment agency’s investment of
money from the LMIHAF.
$512,883.00
Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 70, Packet Page 105 ATTACHMENT 1
1413\05\4188811.1
D. Whether the housing successor has
contracted with any outside entity for
the management of the units, and if
so, the identity of the entity.

None. The Housing Successor does not have
any ownership units that are contracted
with an outside entity for management.

Council Regular Meeting, 9/15/2026, Item No. 7., Item Page 71, Packet Page 106 Community Services District
Agenda Report
FROM: Christine Davi, City Attorney
SUBJECT: Receive Ocean View Community Services District Quarterly Report and Adopt a Resolution Authorizing an Application to the Local Agency Formation Commission to Dissolve the District (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5, Section 15061) RECOMMENDATION:

That the Community Services District Board of Directors receive a report on the Ocean View Community Services
District and Adopt a Resolution Authorizing an Application to the Local Agency Formation Commission to Dissolve
the District.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

This Community Services District was formed pursuant to Community Services District Law (Government Code
section 61000 et seq.,) to own and operate a desalination plant to provide residential and commercial water to the Ocean View Plaza Project (“Project”) located at 457, 465, 470, 484, 565, and 570 Cannery Row.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS: None.

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, Agenda Report Highlights
• The City Council, as the
Community Services District
(CSD) Board, will receive a
quarterly update and consider
adopting a resolution authorizing
an application to LAFCO to
dissolve the District.
• The CSD was created in 2005
solely to own/operate a
desalination plant for the Ocean
View Plaza Project on Cannery
Row. All project entitlements have
now expired so the District's
underlying purpose no longer
exists.
• LAFCO may dissolve a district if
certain conditions are met and a
resolution of intent is adopted.

Dissolution is an 8-step process
that could take up to 12 months.

Date: 9/15/2026
Item No.: 8.

Council Regular Meeting, 9/15/2026, Item No. 8., Item Page 1, Packet Page 107 this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

DISCUSSION:

Background
The City of Monterey approved the Ocean View Plaza Project (“Project”) located at 457, 465, 470, 484, 565, and 570 Cannery Row in June 2004. Subsequently, the City of Monterey requested that the Local Agency Formation Commission (LAFCO) review the establishment of a Community Services District (CSD) for the project site that would own, operate, and maintain the proposed desalination plant once constructed.

LAFCO adopted Resolution No. 05-27 on December 27, 2005, approving the formation of this CSD. The Monterey City Council was subsequently appointed as the District Board and must meet quarterly according to requirements of Government Code section 61044.

The project was originally approved on June 1, 2004 and it was valid for two years. Thereafter, a combination of mandatory extensions, statutory extensions, and extensions approved by the City of Monterey, extended the life of the map until June 1, 2025.

Pursuant to an April 2025 request for an extension, on June 17, 2025, the City Council adopted Resolution 25-066, approving a 1-year extension of the map pursuant to Government Code § 66452.6(e). (Attachment 1.) This approval extended the life of the map to June 17, 2026.

The City determined, consistent with Government Code section 66452.6(e), that: (1) a timely application for an extension of the Vesting Tentative Map was not received; (2) the Vesting Tentative Map is expired; and (3) the Use Permit is expired pursuant to Condition of Approval No. 1, which provides that the Use Permit expires on the same date as the Vesting Tentative Map.

Resolution Authorizing Application to Dissolve the Community Services District Given that all of the project entitlements have expired, there is no longer a need for the Community Services District. A Community Service District (CSD) can apply to the Local Agency Formation Commission (LAFCO) for dissolution under California Government Code §56375.1, which authorizes LAFCO to dissolve a district if certain conditions are met and a resolution of intent is adopted.

The process can take up to 12 months. Rough outline of process:

1. Prepare and Submit a Resolution of Application

2. LAFCO 30 Day Review

3. Notice to Affected Agencies

4. Certificate of Filing

5. Public Hearing

6. 30 Day Reconsideration Period

7. Protest Thresholds - If LAFCO approves dissolution, protest thresholds apply under Government Code §57092:
• Election: If >25% of landowners owning ≥25% of assessed value, or >25% of registered voters, oppose the action but <50% oppose it. • Termination: If >50% oppose the action
Council Regular Meeting, 9/15/2026, Item No. 8., Item Page 2, Packet Page 108

8. Certificate of Completion - After meeting all LAFCO conditions, LAFCO files a Certificate of Completion with the County Clerk-Recorder. Dissolution is not effective until this is filed
Staff recommend adoption of a resolution authorizing an application to LAFCO to dissolve the CSD.
cc: Save Our Waterfront, 781 Terry Street, Monterey, CA 93940 Cannery Row Association
LAFCO of Monterey County – Local Agency Formation Committee, POB 1369, Salinas, CA 93902 New Monterey Neighborhood Association
David Balch, Esq.

Anne Mudge, Esq.

Neill Bower, Esq.

Stephanie Lai, Esq.

Aaron Gruber, Esq.

Bob Faulis
William Coffee, Esq.

David Bowie, Esq.

Council Regular Meeting, 9/15/2026, Item No. 8., Item Page 3, Packet Page 109 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE OCEAN VIEW COMMUNITY SERVICES DISTRICT №011/24

RESOLUTION OF APPLICATION OF THE OCEAN VIEW COMMUNITY SERVICES

DISTRICT INITIATING APPLICATION TO THE LOCAL AGENCY FORMATION

COMMISSION OF MONTEREY COUNTY FOR THE DISSOLUTION OF THE OCEAN VIEW

COMMUNITY SERVICES DISTRICT
WHEREAS, the Ocean View Community Services District (“District”) was formed in 2005 by the City of Monterey (“City”) by Resolution of Application to the Local Agency Formation Commission of Monterey County (“Commission”), and the City Council of the City of Monterey was subsequently appointed as the District Board of Directors (“Board”); WHEREAS, the approximately 4.27-acre District was formed for the purpose of providing potable water to the Ocean View Plaza Project located at 457, 465, 470, 484, 565, and 570 Cannery Row through a desalination plant that would be owned, operated, and maintained by the District;
WHEREAS, in November 2019, the California Coastal Commission denied requests for coastal development permit extensions (Permit No. 3-08-013), citing changed circumstances from its original coastal development permit issued in 2008 related to water supply and coastal hazards/sea level rise;
WHEREAS, the Project’s vesting tentative map that, under Government Code section 65943, secures the right to proceed with development in substantial compliance with City ordinances, policies, and standards, expired on June 17, 2026; WHEREAS, the County of Monterey Board of Supervisors passed an ordinance amending Chapter 10.72 of the Monterey County Code to remove the long-standing prohibition on private ownership or operation of desalination treatment facilities; WHEREAS, during its existence, the District has not initiated or completed any projects, and has no physical assets or employees, and the District has not provided services since its formation;
WHEREAS, the District desires to initiate proceedings pursuant to the Cortese-KnoxHertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the California Government Code, for dissolution of the District; 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.

Council Regular Meeting, 9/15/2026, Item No. 8., Item Page 4, Packet Page 110 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 OCEAN VIEW COMMUNITY SERVICES DISTRICT BOARD OF DIRECTORS, that the above recitals are true and correct and are hereby incorporated and adopted as findings of the Board as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT that it hereby approves and adopts this Resolution of Application requesting the dissolution of the Ocean View Community Services District, and directs City of Monterey staff to transmit this Resolution to the Monterey City Council for further proceedings as required by law, and authorize the City Council or designees to execute any documents necessary to complete the filing of this application and to cooperate fully with the Commission in the dissolution process.

PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE OCEAN VIEW COMMUNITY SERVICES DISTRICT this _____ day of _______, 2026, by the following vote:

AYES: DIRECTORS:

NOES: DIRECTORS:

ABSENT: DIRECTORS:

ABSTAIN: DIRECTORS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk, City of Monterey, thereof
Council Regular Meeting, 9/15/2026, Item No. 8., Item Page 5, Packet Page 111 Council
Agenda Report
№12/25
FROM: Andrea Renny, Public Works Director
Prepared By: Anrew Easterling, City Engineer
SUBJECT: 1st Reading to Amend Monterey City Code section 19-103, the Schedule of Fees and Services Charges, to Reduce the Amount of the City’s Cost Recovery for Specific Encroachment Permit and Inspection Fees to less than 100% (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council pass a first reading of an
ordinance to amend Monterey City Code section 19-
103 to reduce the amount of cost recovery for the
following permits:
1) Street Opening Fee (Sewer Lateral) from 100% to
70%;
2) Minor Permanent Encroachment (<100SF) from
100% to 50%;
3) Driveway or Sidewalk Encroachment Fee from 100%
to 70%;
4) Traffic Control Fee from 100% to 50%; and
5) Sidewalk Maintenance and Repairs from 100% to
50%.

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 current policy is to recover 100% of costs for encroachment permit and inspection fees, and this action will reduce the City’s cost recovery to 70% or 50% for five (5) specific categories. The proposed fee reductions establish a cost-sharing approach for these encroachment categories which may provide some broader community benefit. Applicants would continue to pay a substantial portion of the City's cost.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The current cost for a Street Opening Fee with Sewer Connection is $1,613 and the proposed Agenda Report Highlights
• The report requests City Council
approval of a first reading to
amend City Code section 19-103,
reducing cost-recovery levels for
five encroachment-related permit
categories.
• The proposed reductions (to 70%
or 50% recovery) create a
cost-sharing model with applicants
• The changes are estimated to
result in roughly $192,000 in
annual General Fund subsidies
based on recent permit activity.

Date: 9/15/2026
Item No.: 9.

Council Regular Meeting, 9/15/2026, Item No. 9., Item Page 1, Packet Page 112 №12/25
rate for Street Opening Fee (Sewer Lateral) is $1,183. There were approximately 66 permits issued in the last 12 months for sewer laterals, and a 70% cost recovery rate would require approximately $33,462 in General Fund subsidies per year.

The current cost for a permanent encroachment is $2,359.50. This is a new encroachment permit category for Minor Permanent Encroachment (<100SF) with a proposed rate of $416 with a 50% cost recovery rate. There were approximately 177 permanent encroachment permits issued in the last 12 months that may qualify for this new category. A 50% cost recovery rate requires approximately $73,632 in General Fund subsidies per year.

The current cost for a Driveway or Sidewalk Encroachment Fee is $1,009 and the proposed rate is $746. There were 58 permits issued in the last 12 months, and a 70% cost recovery rate would require approximately $18,543 in General Fund subsidies per year.

The current cost for Traffic Control Fee is $404 and the proposed rate is $201. Staff estimates that 270 permits issued in the last 12 months with a traffic control fee and a 50% cost recovery rate would require approximately $54,450 in General Fund subsidies per year.

The current cost for Sidewalk Maintenance and Repairs is $389 and the proposed rate is $230.

This is a relatively new category, and data is not available for the past 12 months. If a rate of 1 sidewalk maintenance and repair permit is issued per week is assumed, or 52 permits in a year, a 50% cost recover rate would require approximately $11,960 in General Fund subsidies per year.

The cumulative impact to the General Fund if all of the reduced cost recovery rates are adopted would be estimated to be approximately $192,048 per year.

Encroachment Permits Description
Suggested
Fee
Suggested
Cost
Recovery
Estimated
Annual
Permits
Estimated
Annual
Subsidy
Street Opening Fee (Sewer Lateral) $1,183.00 70%
66 $33,462.00
Minor Permanent Encroachment (<100SF) $416.00 50%
177 $73,632.00
Driveway or Sidewalk Encroachment Fee $746.00 70%
58 $18,543.43
Traffic Control Fee $201.00 50%
270 $54,270.00
Sidewalk Maintenance and Repairs $230.00 50%
52 $11,960.00
Total $191,867.43
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 Council Regular Meeting, 9/15/2026, Item No. 9., Item Page 2, Packet Page 113 №12/25
rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The Council could choose to subsidize a different percentage of the cost of any of the encroachment categories instead of 70% or 50% cost recovery policy. The Council could choose to only subsidize some or none of the proposed encroachment categories.

DISCUSSION:

Monterey City Code section 19-103 establishes the City's Schedule of Fees and Services Charges and the applicable level of cost recovery for City services. The existing policy generally establishes 100% cost recovery for encroachment permits and inspection fee services addressed by this ordinance.

Full cost recovery is an appropriate objective for many City services that primarily provide a benefit to an individual applicant. However, certain encroachment, sanitary sewer, and right-ofway activities also provide a broader benefit to the community and environment. In these circumstances, sharing a portion of the cost between the permit applicant and the City may be appropriate.

Street Opening Fee – Sewer Laterals
The proposed ordinance would reduce cost recovery for street openings associated with sewer lateral work from 100% to 70%. Sewer lateral repairs and replacements are necessary to maintain reliable sanitary sewer connections and may require excavation and restoration of the public street. A 70% cost recovery rate would continue to recover the majority of the City's costs while encouraging property owners to properly maintain their private sewer connections. A properly maintained sewer connection reduces the likelihood of sanitary sewer spills and provides an environmental and public benefit.

Minor Permanent Encroachments (<100 SF)
The proposed ordinance would establish 50% cost recovery for minor permanent encroachments involving less than 100 square feet. These projects may include small signs, benches, landscaping, minor hardscape or other improvements in the public right of way.

Private improvements in the right of way can provide a public benefit and a subsidized rate could be justified.

Driveway or Sidewalk Encroachment Fee
The proposed ordinance would reduce cost recovery for driveway or sidewalk encroachments from 100% to 70%. Driveway and sidewalk improvements are privately maintained improvements but also contribute to the pedestrian sidewalk network within the public right-ofway. When driveways and sidewalks are replaced or rehabilitated, they are brought to current Council Regular Meeting, 9/15/2026, Item No. 9., Item Page 3, Packet Page 114 №12/25
ADA accessibility standards and provide a public benefit. The proposed rate recognizes this shared benefit while continuing to recover the majority of the City's costs.

Traffic Control Fee
The proposed ordinance would reduce cost recovery for traffic control review from 100% to 50%. Traffic control requirements protect workers, motorists, pedestrians, bicyclists, and other road users of the public right-of-way. Although traffic control review is generated by the applicant's work, ensuring safe and appropriate traffic control provides a broader public safety benefit. A 50% cost recovery rate recognizes this shared benefit.

Sidewalk Maintenance and Repairs
The proposed ordinance would reduce cost recovery for sidewalk maintenance and repair permits from 100% to 50%. Maintaining sidewalks in good condition benefits both adjacent property owners and the general public by reducing hazards, and maintaining the pedestrian infrastructure. Reducing the permit cost associated with sidewalk repairs may also remove a financial disincentive for property owners to promptly correct sidewalk deficiencies. A 50% cost recovery rate balances the City's cost of administering and inspecting the work against the broader public benefit of maintaining safe and accessible sidewalks.

Collectively, the proposed amendments establish a cost-sharing approach for these five (5) categories. Applicants would continue to pay a substantial portion of the City's cost to review, administer, and inspect their work, and the City would subsidize the remaining portion of the service that reflects a broader community benefit.

AR/ae
Attachments: 1. Draft Ordinance
e: Building Division
Finance Department
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, 9/15/2026, Item No. 9., Item Page 4, Packet Page 115 ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№09/24
AMENDING MONTEREY CITY CODE SECTION 19-103, THE SCHEDULE OF FEES AND SERVICES CHARGES, TO REDUCE THE AMOUNT OF THE CITY’S COST

RECOVERY FOR SPECIFIC ENCROACHMENT PERMIT AND INSPECTION FEES TO LESS THAN 100%
SECTION 1:

WHEREAS, generally, the City’s current policy is to recover 100% of costs for encroachment permit and inspection fees;
WHEREAS, the proposed fee reductions establish a cost-sharing approach for these encroachment categories which may provide some broader community benefit; WHEREAS, applicants would continue to pay a substantial portion of the City's cost; and WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability; NOW THEREFORE, the Monterey City Council declares as follows:

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

SECTION 3: Monterey City Code, Chapter 19, Section 19-103(a)’s table of fees and service charges, (I.) is hereby amended as follows:

Regulation, Product or Service to be Recovered Percentage of Costs Reasonably Borne
I. Community Development Department Services:
(15) Encroachment Permits
(i) Street Opening Fee (Sewer Lateral) 70
(ii) Minor Permanent Encroachment (<100SF) 50
(iii) Driveway or Sidewalk Encroachment Fee 70
(iv) Traffic Control Fee 50
(v) Sidewalk Maintenance and Repairs 50
Council Regular Meeting, 9/15/2026, Item No. 9., Item Page 5, Packet Page 116 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, 9/15/2026, Item No. 9., Item Page 6, Packet Page 117 Council
Agenda Report
№12/25
FROM: Andrea Renny, Public Works Director
Prepared By: Andrew Easterling, City Engineer
SUBJECT: Amend Resolution 26-071 to Include Fees for New Encroachment Permit and Inspection Categories, Update Descriptions, Reduce Five Categories of Encroachment Fees to Reflect City Cost-Sharing, and Revise Subpoena Fee (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt the attached resolution:
1) Amending Resolution 26-071 to include:
a. Temporary Pod, Dumpster, minor sidewalk or
parking area temporary encroachment;
b. Minor Permanent Encroachment (<100SF);
and,
c. Traffic Signal Flash Operations as referenced
in Exhibit A;
2) Updating Encroachment Permit and Inspection
Descriptions and Fees; and,
3) Updating Public Safety – Police Subpoenas Fee as
referenced in Exhibit B.

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:

Proposition 26 applies only to fees that are “imposed” by government. Determining whether a charge is “imposed” turns on the nature of the service and other factors, such as: whether the charge is in connection with a service that the city is statutorily obligated to provide; whether the charge is in connection with a service for which the city is the exclusive provider within its service territory; whether the charge is in connection with a service, product, or opportunity the city provides in competition with other, particularly private enterprises: or whether the charge is established by voluntary negotiations. (League of Cal. Cities, Proposition 26 and 218 Implementation Guide (2021), at p. 58.)
For fees that are subject to Proposition 26, the City bears the burden of proving by a Agenda Report Highlights
• The report asks City Council to
amend Resolution 26-071 by
adding new encroachment permit
categories, updating permit
descriptions and fees, and
revising the Police subpoena fee.
• New categories refine temporary
and minor encroachment fees and
establish a dedicated fee for traffic
signal flash operations to better
align staff effort with permit type.
• Five encroachment categories are
proposed at reduced
cost-recovery rates to reflect
shared public benefit, resulting in
an estimated $192,000 in annual
General Fund subsidies.

Date: 9/15/2026
Item No.: 10.

Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 1, Packet Page 118 №12/25
preponderance of the evidence that the fee is not a tax, that the amount is no more than necessary to cover the reasonable cost of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity. (Cal. Const., Art. XIII C §1, subd. (e); League of Cal. Cities, Proposition 26 and 218 Implementation Guide (2021).) This means that all revenue sources are taxes requiring voting approval unless an exception applies.

It is good fiscal and budget policy to update as needed the City’s fee schedules to ensure that the fees charged to citizens are in alignment with the cost of services provided to the citizens of Monterey.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

All but five (5) of the encroachment permit and inspection categories are being recommended at full cost recovery. There is no impact to the General Fund other than the Street Opening Fee (Sewer Lateral), Minor Permanent Encroachment (<100SF), Driveway or Sidewalk Encroachment Fee, Traffic Control Fee, and Sidewalk Maintenance and Repairs.

The full cost for a Street Opening Fee with Sewer Connection is $1,613 and the proposed rate for Street Opening Fee (Sewer Lateral) is $1,183. There were approximately 66 permits issued in the last 12 months for sewer laterals and a 70% cost recover rate would require approximately $33,462 in General Fund subsidies per year.

The full cost for a permanent encroachment is $2,359.50. This is a new encroachment permit category for Minor Permanent Encroachment (<100SF) with a proposed rate of $416 with a 50% cost recovery rate. There were approximately 177 permanent encroachment permits issued in the last 12 months that may qualify for this new category. A 50% cost recovery rate requires approximately $73,632 in General Fund subsidies per year.

The full cost for a Driveway or Sidewalk Encroachment Fee is $1,009 and the proposed rate is $746. There were 58 permits issued in the last 12 months and a 70% cost recover rate would require approximately $18,543 in General Fund subsidies per year.

The full cost for the Traffic Control Fee is $404 and the proposed rate is $201. Staff estimates that there were 270 permits issued in the last 12 months with a traffic control fee and a 50% cost recover rate would require approximately $54,450 in General Fund subsidies per year.

The full cost for Sidewalk Maintenance and Repairs is $389 and the proposed rate is $230. This is a relatively new category, and data is not available for the past 12 months. If a rate of 1 sidewalk maintenance and repair permit is issued per week is assumed, or 52 permits in a year, a 50% cost recover rate would require approximately $11,960 in General Fund subsidies per year.

The cumulative impact to the General Fund if all of the reduced cost recovery rates are adopted would be estimated to be approximately $192,048 per year.

Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 2, Packet Page 119 №12/25
Encroachment Permits Description
Suggested
Fee @ City
Cost Share
(subsidy
rate)
Suggested
Cost
Recovery
Estimated
Annual
Permits
Estimated
Annual
Subsidy
Street Opening Fee (Sewer Lateral) $1,183.00 70%
66 $33,462.00
Minor Permanent Encroachment (<100SF) $416.00 50%
177 $73,632.00
Driveway or Sidewalk Encroachment Fee $746.00 70%
58 $18,543.43
Traffic Control Fee $201.00 50%
270 $54,270.00
Sidewalk Maintenance and Repairs $230.00 50%
52 $11,960.00
Total $191,867.43
The subpoena fee is proposed to change from $150 to the fee required by State law.

ENVIRONMENTAL DETERMINATION:

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

ALTERNATIVES CONSIDERED:

The Council could choose not to approve these new additional encroachment permit and inspection fee categories, update descriptions, or reduce some fees to reflect City cost-sharing.

However this is not recommended, the new fee categories separate smaller projects that may require less staff review and administrative effort into new categories, rather than applying the same fee to both minor and complex encroachments. Additionally, the updated descriptions organizes several fees to improve clarity and consistency, and the updated fees account for additional staff time not previously considered.

Additionally, the Council could choose to subsidize a different percentage of the cost of any of the encroachment categories instead of 70% or 50% cost recovery policy. The Council could choose to only subsidize some or none of the proposed encroachment categories.

Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 3, Packet Page 120 №12/25
DISCUSSION:

On Tuesday May 19, 2026 City Council approved a Resolution adopting the Citywide Master Fee Schedule. All Encroachment Permit Fees were updated to recover the full cost to provide the service based on the estimated hours required to review, process and inspect the typical encroachment permit project for each category. Many encroachment fees had a relatively large increase proportional to the existing fee. Implementation of the new fees highlighted that the temporary and permanent encroachment categories were broad and grouped complex projects with less complex applications. In response to public questions and concerns, staff reviewed the fee schedule, application categories, and associated staff hours. Based on this review, staff identified opportunities to establish additional categories where practical to better align fees with the level of review and administrative effort required including:
• Temporary pods, dumpsters, and minor temporary sidewalk or parking area encroachments;
• Minor permanent encroachments of less than 100 square feet; and • Traffic signal flash operations.

Examples of temporary encroachment applications may include utility company temporary encroachments for tree trimming or overhead utility work, temporary lane closures for survey, inspections or other field crews, pods, dumpsters, scaffolding, temporary decorations.

Temporary Pod, Dumpster, minor sidewalk and parking area temporary encroachments typically do not require the same level of temporary traffic control and detour routes and may require less staff review and administration time to process, supporting a reduced rate.

Permanent encroachment applications range from minor improvements, such as small signs, landscaping, and small areas of hardscape, to complex projects involving major utility work or right-of-way improvements, such as roundabouts or other off-site improvements. Staff recommends establishing a new category for minor permanent encroachments of less than 100 square feet. This category would provide a lower fee for smaller projects that require less staff review and administrative effort, rather than applying the same fee to both minor and complex encroachments.

Staff also recommends establishing a separate fee for traffic signal flash operations in response to recent requests from utility companies. Certain encroachment permits require temporary traffic control that involves placing traffic signals into flash operations during construction. The proposed fee covers the estimated two hours of inspector time to place the signal into flash and return it to normal operation upon completion of work.

In addition, Staff recommends changes to the descriptions and organization of several fees to improve clarity and consistency. Encroachment Permit Fees appear in both the Community Development Building Permits and Inspections Fees and the Public Works and Engineering Fees Sections. Staff recommends consolidating both the Encroachment Permit fees into the Public Works and Engineering Fees Section and eliminating the Community Development Building Permits Encroachment Permit Fees as shown in Exhibit A to the Resolution .

Additionally, the Sidewalk Maintenance and Repairs fee was added to the Public Works Engineering fee schedule during the last update. Staff proposes moving this fee to the Building Permits & Inspection Fee schedule to be grouped with the Encroachment Permit Fees to improve organization and consistency. In addition, the Street Opening Fee with Sewer Connection would be renamed to Street Opening Fee (Sewer Lateral) to more accurately describe the work covered, as not all sewer lateral projects require connection to the sewer main.

Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 4, Packet Page 121 №12/25
Staff also reviewed the estimated staff hours used to calculate the encroachment permit and inspection fees and identified activities that were not included in the previous fee update. The proposed fee schedule incorporates these additional costs, including:
• Encroachment permits: An additional 0.5 hours of Administrative Assistant time to process and manage each application.
• Street Opening Fee (Sewer Lateral): One hour of time for a Senior Street Maintenance Worker, one hour for a Street Maintenance Worker, and use of a City truck to hydro-jet the sewer main and conduct a pressure test following a new or replaced sewer connection.

These adjustments reflect staff time and resources identified through the post-implementation review of the fee schedule.

Five (5) of the encroachment permit and inspection categories are recommended at a rate less than full cost to the City to review, administer and inspect. Full cost recovery is an appropriate objective for many City services that primarily provide a benefit to an individual applicant.

However, certain encroachment, sanitary sewer, and right-of-way activities also provide a broader benefit to the community and environment. In these circumstances, sharing a portion of the cost between the permit applicant and the City may be appropriate.

The proposed rate would reduce cost recovery for street openings associated with sewer lateral work from 100% to 70%. Sewer lateral repairs and replacements are necessary to maintain reliable sanitary sewer connections and may require excavation and restoration of the public street. A 70% cost recovery rate would continue to recover the majority of the City's costs while encouraging property owners to properly maintain their private sewer connections. A properly maintained sewer connection reduces the likelihood of sanitary sewer spills and provides an environmental and public benefit.

The proposed rate would establish 50% cost recovery for minor permanent encroachments involving less than 100 square feet. These projects may include small signs, benches, landscaping, minor hardscape or other improvements in the public right of way. Private improvements in the right of way can provide a public benefit and a subsidized rate could be justified.

The proposed rate would reduce cost recovery for driveway or sidewalk encroachments from 100% to 70%. Driveway and sidewalk improvements are privately maintained improvements but also contribute to the pedestrian sidewalk network within the public right-of-way. When driveways and sidewalks are replaced or rehabilitated, they are brought to current ADA accessibility standards and provide a public benefit. The proposed rate recognizes this shared benefit while continuing to recover the majority of the City's costs.

The proposed rate would reduce cost recovery for traffic control review from 100% to 50%.

Traffic control requirements protect workers, motorists, pedestrians, bicyclists, and other road users of the public right-of-way. Although traffic control review is generated by the applicant's work, ensuring safe and appropriate traffic control provides a broader public safety benefit. A 50% cost recovery rate recognizes this shared benefit.

The proposed rate would reduce cost recovery for sidewalk maintenance and repair permits from 100% to 50%. Maintaining sidewalks in good condition benefits both adjacent property owners and the general public by reducing hazards, and maintaining the pedestrian Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 5, Packet Page 122 №12/25
infrastructure. Reducing the permit cost associated with sidewalk repairs may also remove a financial disincentive for property owners to promptly correct sidewalk deficiencies. A 50% cost recovery rate balances the City's cost of administering and inspecting the work against the broader public benefit of maintaining safe and accessible sidewalks.

Staff recommends updating the Police subpoenas fee from the current $150 charge to a fee consistent with applicable State law.

AR/ae
Attachments: 1. Resolution

2. Exhibit A – Proposed Building Permits & Inspection Fee, Encroachment Permit Fees

3. Exhibit B – Proposed New Police Department Permit Fees e: Building Division
Finance Department
Police Department
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, 9/15/2026, Item No. 10., Item Page 6, Packet Page 123 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
AMENDING RESOLUTION 26-071 TO INCLUDE FEES FOR NEW ENCROACHMENT

PERMIT AND INSPECTION CATEGORIES, UPDATE DESCRIPTIONS, REDUCE FIVE

CATEGORIES OF ENCROACHMENT FEES TO REFLECT CITY COST SHARING, AND

REVISE SUBPOENA FEE
WHEREAS, on May 19, 2026, the City Council adopted Resolution No. 26-071 establishing the Citywide Master Fee Schedule, including fees associated with encroachment permits and inspections;
WHEREAS, the fees established were based on the estimated cost to the City of providing the applicable services, including staff review, administration, inspection, and other associated activities;
WHEREAS, following implementation of the updated fee schedule, City staff reviewed the encroachment permit and inspection categories and determined that certain categories encompass activities with substantially different levels of staff review, and administration; WHEREAS, staff recommends additional permit categories for less complex activities to better align the applicable fees with the estimated City resources required to provide those services;
WHEREAS, after implementation, staff identified additional administrative, inspection, equipment, and field activities associated with permits that were not fully captured in the assumptions used for the May 2026 fee update, and the revised cost-of-service calculations incorporate those activities;
WHEREAS, this action corrects the fee for processing subpoenas to the amount authorized under state law;
WHEREAS, Encroachment Permit Fees appear in both the Community Development Building Permits and Inspections Fees and the Public Works and Engineering Fees Sections.

This action consolidates the Encroachment Permit fees into the Public Works and Engineering Fees Section and eliminates the Community Development Building Permits Encroachment Permit Fees. Additionally, the Sidewalk Maintenance and Repairs fee was added to the Public Works Engineering fee schedule during the last update; 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 that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no 2 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 Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 7, Packet Page 124 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 FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby:

1. Amends Resolution 26-071 to include:
a. Temporary Pod, Dumpster, minor sidewalk or parking area temporary encroachment;
b. Minor Permanent Encroachment (<100SF); and
c. Traffic Signal Flash Operations as referenced in Exhibit A;

2. Updates Encroachment Permit and Inspection Descriptions and Fees as referenced in Exhibit A; and

3. Updates Public Safety – Police Subpoenas Fee as referenced in Exhibit B.

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, 9/15/2026, Item No. 10., Item Page 8, Packet Page 125 PUBLIC WORKS & ENGINEERING FEES*
# Description
Previous Fee/Charge
26/27 Current Fee Full Cost Suggested Fee
Suggested Cost Recovery
1 Encroachment Permits2 Street Opening Fee 1 $291.26 $1,009.00 $1,067.13 $1,067.00 100% 3 Street Opening Fee (Sewer Lateral) $588.84 $1,613.00 $1,691.62 $1,183.00 70%4 Temporary Encroachment Fee 1 (plus $91/hour for inspection) $222.92 $1,009.00 $1,067.13 $1,067.00 100% 5 Temporary Pod, Dumpster, minor sidewalk or parking area temporary encroachment N/A N/A $208.88 $208.00 100%6 Minor Permanent Encroachment (<100SF) N/A N/A $833.47 $416.00 50%7 Permanent Encroachment Fee 1 (plus $91/hour for inspection) $291.26 $2,359.50 $2,417.28 $2,417.00 100%8 Driveway or Sidewalk Encroachment Fee1 $291.26 $1,009.00 $1,067.13 $746.00 70% 9 Traffic Control Fee1 $147.21 $404.00 $403.88 $201.00 50% 10 Traffic Signal Flash Operations N/A N/A $403.88 $403.00 100% 11 Sidewalk Maintenance and Repairs N/A $389.00 $461.30 $230.00 50% 12 Public Improvement Inspection
3% of common area or dedication improvements
3% of common area or dedication improvements
NA
3% of common area or dedication improvements
100%
*Subject to 2.9% service fee.
1 Fee amount includes CPI adjustments, for applicable fees (SF, April).

Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 9, Packet Page 126 COMMUNITY DEVELOPMENT BUILDING PERMITS & INSPECTION FEES*3 # Description
26/27 Current Fee Notes
Encroachment Permits
1 Street Opening Fee 1 $1,009.00 Delete - Moved to Public Works & Engineering 2 Street Opening Fee with Sewer Connection $1,613.00 Delete - Moved to Public Works & Engineering3 Temporary Encroachment Fee 1 (plus $96/hour for inspection) $1,009.00 Delete - Moved to Public Works & Engineering4 Permanent Encroachment Fee 1 (plus $91/hour for inspection) $2,359.50 Delete - Moved to Public Works & Engineering 5 Driveway or Sidewalk Encroachment Fee1 $1,009.00 Delete - Moved to Public Works & Engineering6 Traffic Control Fee1 $404.00 Delete - Moved to Public Works & Engineering7 Public Improvement Inspection 3% of common area or dedication improvements
Delete - Moved to Public Works & Engineering
*Subject to 2.9% service fee.
1 Fee amount includes CPI adjustments, for applicable fees (SF, April).2 Residential solar permit fees are set by the State of California for 10kW and under3 Fees not listed above may be calculated either by using valuation or hourly estimates Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 10, Packet Page 127 PUBLIC SAFETY - POLICE*
# Description
Current Fee/Charge Suggested Fee
35 Subpoenas $150.00
Fee will be according to State law

1. Adjusts annually July 1 per CPI SF April edition, rounded to nearest $1.2. Total fee comprised of service fee set by resolution ($33) and fees set by State DOJ and FBI. 3. Including but not limited to personnel, apparatus, vehicles, reports, booking.4. Based on FY23 costs.5. Commercial Filming Fee is for permit only. Additional fees apply for additional services such as road *Subject to 2.9% Service Fee Council Regular Meeting, 9/15/2026, Item No. 10., Item Page 11, Packet Page 128 Council
Agenda Report
№12/25
FROM: Andrea Renny, P.E., PTOE, Public Works Director
SUBJECT: Approve a Minor Sidewalk Repair Pilot Program, Authorize the Finance Director to Appropriate Measure S Funds, Award a Job Order Contract in the Amount of $1,000,000 to Precision Emprise, LLC dba Precision Concrete Cutting for OnCall Sidewalk Repair Projects, and Direct Staff to Bring Forward a Major Sidewalk Repair Pilot Program at the Second Council Meeting in December (Exempt from CEQA, Article 19, Section 15301, Class 1)
RECOMMENDATION:

That the City Council adopt the attached resolution:

1. Approving a Minor Sidewalk Repair Pilot Program,
as further described in Exhibit A;

2. Authorizing the Finance Director, or their designee, to appropriate $500,000 from the Measure S Fund
to the Measure S Capital Outlay account (252-310-
3121-0000-4505) and $500,000 from the Measure
S Fund to the Measure S Contractual Services
account (252-310-3121-0000-4220);

3. Awarding a Job Order Contract to Precision
Emprise, LLC dba Precision Concrete Cutting for
On-Call Sidewalk Repair Projects for a term of one
year with the option to renew for two additional
years with an annual funding limit of $1,000,000;

4. Authorizing the City Manager, or their designee, to
execute the contract upon the receipt of
information required by the contract; and,

5. Directing Staff to present a pilot program for
Council approval, that addresses cost sharing for
major repairs in sidewalks, funded by Measure S,
at the second meeting in December 2026.

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.

Agenda Report Highlights
• The report asks City Council to
approve a Minor Sidewalk Repair
Pilot Program, appropriate $1
million in Measure S funds, and
award a job-order contract to
Precision Concrete Cutting for
on-call repairs.
• The pilot program uses
cost-effective slicing and grinding
methods to address minor
sidewalk defects adjacent to
private property, improving safety
and accessibility.
• The contract provides up to $1
million annually for inspection,
surveying, and minor repairs,
funded entirely by Measure S.

Date: 9/15/2026
Item No.: 11.

Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 1, Packet Page 129 №12/25
Expand opportunities for people of all ages and abilities to bike and walk safely through active transportation, accessibility, and safety initiatives.

POLICY IMPLICATIONS:

The City’s current sidewalk repair policy stems from a State law that was enacted in 1935.

Specifically, California Streets and Highways Code section 5600 et seq. provides that the responsibility for maintenance of sidewalks rests on the abutting property owner, regardless of who created the sidewalk defects.

The City of Monterey first enacted Ordinance 989 in 1955 pursuant to the Streets and Highways Code to help offset the cost of repair to and maintenance of worn out, damaged, or defective sidewalks.

In 1993, the City adopted Ordinance 3127 to include private property owner liability for injuries to the public due to unsafe sidewalk conditions. Sidewalk liability ordinances “provide [ ] an additional level of responsibility for the maintenance of safe sidewalks on the owners whose property is adjacent to and abuts the sidewalks”… Property owners “…are often in the best position to quickly identify and address potentially dangerous conditions that might occur on the sidewalks as opposed to [the city].” (Gonzales v. City of San Jose (2004) 125 Cal.App.4th 1127.)
This action is consistent with the City’s policy to approve Public Works contracts exceeding $150,000 and to approve all budget amendments.

This action is also consistent with the City Council Value Driver to maintain and repair core street, roadway, and storm drain infrastructure.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The Minor Sidewalk Repair Pilot Program will be funded for three years with available Measure S funds, subject to available fund balance. Eligible costs may include field verification, concrete slicing or grinding, mobilization, traffic control, inspection, data tracking, clean up, disposal of waste materials and ancillary items.

Monterey City Code section 28-14(a) allows for an exemption from formal bidding requirements in cases where the contract or purchase is capable of being performed through contracts negotiated by a cooperative purchasing agency that utilized acceptable bidding procedures (“piggyback” agreements). The award of this Job Order contract utilizes an accepted “piggyback” option from the Texas Association of School Boards, Inc. (Contract #756-24) through Buy Board Purchasing Cooperative, approved by the Finance Director, or her designee, on September 3, 2026.

Appropriations:

Measure S Capital Outlay (252-310-3121-0000-4505) $ 500,000 Measure S Contractual Services (252-310-3121-0000-4220) $ 500,000 Total $ 1,000,000
As of September 2, 2026, sufficient funding is available in the Measure P/S Fund for these appropriations.

Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 2, Packet Page 130 №12/25
Fees for On-Call Sidewalk Inspection and Repair services will be based on a project-by-project basis directly charged to the Measure S Contractual Services and Measure S Capital Outlay accounts. The City is under no obligation to expend any funds under this Job Order contract.

Total award amount for this contract is not to exceed $1,000,000 annually. There is no minimum dollar value of work guaranteed under this Job Order contract, and assignment of work orders is at the sole discretion of the City.

The required appropriations address both work that the City is responsible for as well as the pilot program for minor repairs. The Job Order Contract price for concrete slicing is $54 per inch-foot. Staff estimates that there are roughly 2,500 locations with known defects and likely more locations that may be requested once the pilot program becomes available. The current estimate to repair the known locations is approximately $280,000 and it's unknown how many new locations may be requested. Staff suggests utilizing $500,000 of Measure S funding for the Minor Sidewalk Repair Pilot Program each year, for three years.

ENVIRONMENTAL DETERMINATION:

The City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15301, Class 1) because the project would be for repairs of existing sidewalks using a saw-cutting method, which horizontally slices the trip hazard away and matches the sidewalks at the control joint or cracks. All work is within the public right-of-way and there will be no creation of new lanes. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions founds at CEQA Guidelines Section 15300.2.

Exception a - Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located -a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are considered to apply in all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. Exception a – Location – does not apply to projects which are exempt under Class 1.

Exception b - Cumulative Impact. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant. There would be no cumulative impact because the project does not involve the creation of additional automobile lanes.

Exception c - Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances. No unusual circumstances are anticipated due to improvements’ limited scope and distinct locations.

Exception d - Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified Environmental Impact Report (EIR). The project would not be visible from a scenic highway.

Exception e - Hazardous Waste Sites. A categorical exemption shall not be used for a project Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 3, Packet Page 131 №12/25
located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. No impact to sites included on any list compiled pursuant to Section 65962.5 of the Government code would occur.

Exception f - Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource. The project is located in the area of high archeological sensitivity as shown in the General Plan. Project improvements would be located within the public right-of-way and would not include digging into native soil. Therefore, the project would not have an impact on historic or archeological resources.

ALTERNATIVES CONSIDERED:

Council could choose to not approve the Minor Sidewalk Repair Pilot Program as proposed and/or amend the program.

Alternative 2 (presented on September 1st, 2026) which is a potential City/property owner shared cost structure for major repairs, is not included in this action. Consistent with Council direction received at the September 1st, 2026 meeting, staff will evaluate that option and return in December 2026.

Council could also choose not to award the piggyback contract and direct staff to advertise the project for bids. This is not recommended, as the proposed piggyback contract allows for more efficient completion of minor sidewalk repairs.

DISCUSSION:

Since the inception of Measures P and S, the City has invested more than $7.5 million in sidewalk repairs, including repairs adjacent to public facilities and repairs associated with City trees. The City has completed 7 phases of sidewalk projects. Additionally, the City has completed approximately 4,059 spot repairs by slicing or grouting defects. Establishing a new pilot sidewalk assistance program will expand the benefit of Measure S funding to eligible minor sidewalk defects adjacent to private properties. However, the legal obligation of property owners to maintain and repair their abutting sidewalks and be responsible for personal injuries suffered by the public due to unsafe conditions remains in effect. The City will continue its sidewalk inspection and repair program and require property owners to make repairs as provided in the City Code.

On September 1, 2026, staff presented two alternatives for a three-year sidewalk assistance pilot program funded by Measure S. Council directed staff to proceed with Alternative 1, a Minor Sidewalk Repair Pilot Program, and to explore Alternative 2, a shared cost structure for major repairs, for a later Council item. The recommended action implements the first part of that direction.

Insufficient time is available to prepare a thorough program for a major sidewalk repair cost sharing program framework for consideration by this meeting. Therefore, staff recommends that the Council approve the Minor Sidewalk Repair Pilot Program and direct staff to return with program framework recommendations on the second Council meeting in December, or another specified future date. This approach would demonstrate a commitment to exploring a major repair program without prematurely determining its eligibility requirements, cost-sharing structure, funding level, or administrative procedures.

Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 4, Packet Page 132 №12/25
Minor Repair Program
This three-year pilot program utilizes Measure S funds to correct eligible minor sidewalk defects adjacent to private property through slicing, grinding, or similar cost-effective treatments, addressing a relatively large number of minor defects at a lower cost.

Types of minor repair methods that will be covered under this pilot program:
• Horizontal saw cutting or slicing of raised sidewalk edges. • Grinding of minor vertical offsets.
• Minor surface corrections where the sidewalk panel remains structurally sound. • Minor repairs will generally be limited to locations where the defect can be mitigated without full panel replacement. Public Works will evaluate panel thickness, remaining surface and cross slope, cracking, spalling, settlement, voids, drainage, adjacent curb and gutter, utilities, and the structural integrity of the panel. Slicing or grinding removes the immediate trip edge but may not correct the underlying cause, such as tree-root growth, subgrade movement, or settlement. Full removal and replacement, reconstruction, and other major work remain outside this Minor Sidewalk Repair Pilot Program and continue to be subject to the obligations set forth in City Code section 32- 23 et seq. (Attachment 3.)
Estimate of Minor Repairs
Based on the results of comparable municipal sidewalk programs, an annual Measure S investment goal of $500,000 could reasonably address approximately 4,000 eligible minor sidewalk defects each year through slicing or grinding treatments. Over the proposed three-year pilot, the City would invest up to $1.5 million and could eliminate approximately 12,000 trip hazards citywide, substantially improving pedestrian safety and accessibility while extending the useful life of existing sidewalks and avoiding the significantly higher cost and disruption of full concrete replacement. Actual production would depend on the size and severity of the defects, contractor pricing, mobilization and traffic-control requirements.

Citywide Prioritization
Public Works will maintain an inventory of locations and group work into efficient packages.

Priority is limited to known defects and will be based on, but not limited to, the following factors:
• Pedestrian activity
• Proximity to schools, parks, and community facilities. • Geographic equity and reasonable distribution of work throughout the entire city. • Efficiency, readiness, contractor mobilization, and the ability to bundle nearby eligible locations.

Residents may report locations through the City’s existing service request portals. Staff will inspect and classify each location; a request does not guarantee eligibility or establish repair order. When practical, the City may notify the adjacent owner before work and document completed treatment.

Staff will provide annual information to the Measure P/S Oversight Committee, including expenditures, number and type of repairs, and identified backlog. At the end of the three-year Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 5, Packet Page 133 №12/25
term, or if requested sooner by Council, staff will return with an evaluation and recommendation to extend, modify, or sunset the Minor Sidewalk Repair Pilot Program.

A sustainable pilot program should provide a benefit to residents without creating a long-term obligation that Measure S cannot support. Staff recommends this pilot program be re-evaluated in three years to best align with Measure S fund availability.

This program does not change the existing responsibility of adjacent private property owners for sidewalk maintenance and repair under Monterey City Code Sections 32-24 and 32-25, nor does it amend those provisions.

December 2026 Return on Alternative 2 (Minor Sidewalk Repairs and Cost Sharing for Major Repairs)
Staff will bring forward, at the second Council meeting in December, 2026, a report that separately evaluates a pilot program for major repairs that includes a cost sharing component.

The analysis will address eligibility, City contribution caps, low-income or hardship considerations, prevailing wage, contractor and payment administration, owner participation, annual program capacity, and the effect of Measure S fund availability pending renewal results.

No shared-cost major repair program is authorized by the recommended actions in this report.

Job Order Contract with Precision Concrete Cutting
Since 2023, the Public Works Department has contracted with Precision Concrete Cutting to address minor repairs throughout the City in a timely manner for the sidewalk repairs that were the responsibility of the City. The company pioneered and patented a new technique for repair of uneven sidewalks, or “uplifts.” Precision Concrete Cutting uses a saw-cutting method, which horizontally slices the trip hazard away, and matches the sidewalks at the control joint. This method preserves the existing infrastructure and saves time and money by eliminating the need for removal/replacement of sidewalk panels. In addition to repairs, Precision Concrete Cutting provides sidewalk asset management surveying services to identify and record pedestrian infrastructure issues. The contract scope of work is limited to inspection and concrete cutting.

Precision Concrete Cutting does not provide other major sidewalk repair services.

The proposed Job Order Contract will allow City Staff to utilize Precision Concrete Cutting to regularly survey City sidewalks and address sidewalk repairs as they arise. The $1 million annual not-to-exceed limit is intended to support the full sidewalk asset management and repair program, including inspection, surveying and property owner notification, repairs to City-owned or City-responsible sidewalks, and eligible repairs through the Minor Sidewalk Repair Pilot Program. Task orders will be charged to the Measure S Contractual Services account for asset management survey services and to the Measure S Capital Outlay account for sidewalk repairs.

Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 6, Packet Page 134 №12/25
The recommended Minor Sidewalk Repair Pilot Program provides a broad public safety benefit at a comparatively low unit cost, allows Measure S funding to reach more locations, and can be implemented without changing the City’s existing sidewalk responsibility framework. It also preserves Council flexibility to consider a separate shared-cost option to address major sidewalk repairs utilizing Measure S funding.

Attachments: 1. Resolution

2. Minor Sidewalk Repair Pilot Program (Exhibit A)

3. City Code section 32-23 et seq.
e: Measure P/S Oversight Committee
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, 9/15/2026, Item No. 11., Item Page 7, Packet Page 135 RESOLUTION NO. __-___ C.S.

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

APPROVING A MINOR SIDEWALK REPAIR PILOT PROGRAM, AUTHORIZING THE

FINANCE DIRECTOR TO APPROPRIATE MEASURE S FUNDS, AWARDING A JOB ORDER CONTRACT IN THE AMOUNT OF $1,000,000 TO PRECISION EMPRISE, LLC DBA

PRECISION CONCRETE CUTTING FOR ON-CALL SIDEWALK REPAIR PROJECTS AND

DIRECTING STAFF TO BRING FORWARD A MAJOR SIDEWALK REPAIR PILOT

PROGRAM AT THE SECOND COUNCIL MEETING IN DECEMBER
WHEREAS, since the inception of Measures P and S, the City has invested more than $7.5 million in sidewalk repairs, including repairs adjacent to public facilities and repairs associated with City trees;
WHEREAS, on September 1, 2026, staff presented two alternatives for a three-year sidewalk assistance pilot program funded by Measure S. Council directed staff to proceed with Alternative 1, a Minor Sidewalk Repair Pilot Program, and to explore Alternative 2, a shared cost structure for major repairs, for a later Council item; WHEREAS, the Minor Sidewalk Repair Pilot Program utilizes Measure S funds to correct eligible minor sidewalk defects adjacent to private property through slicing, grinding, or similar cost-effective treatments, addressing a relatively large number of minor defects at a lower cost; WHEREAS, priority is limited to known defects and will be based, but not limited to, pedestrian activity; proximity to schools, parks, and community facilities; geographic equity and reasonable distribution of work throughout the entire city; efficiency, readiness, contractor mobilization and the ability to bundle nearby eligible locations; WHEREAS, Staff suggests utilizing $500,000 of Measure S funding for the Minor Sidewalk Repair Pilot Program each year, for three years; WHEREAS, this program does not change the existing responsibility of adjacent private property owners for sidewalk maintenance and repair under Monterey City Code Sections 32-24 and 32-25, nor does it amend those provisions. The legal obligation of property owners to maintain and repair their abutting sidewalks and be responsible for personal injuries suffered by the public due to unsafe conditions remains in effect. The City will continue its sidewalk inspection and repair program and will require repairs to be completed by property owners; WHEREAS, since 2023, the Public Works Department has contracted with Precision Concrete Cutting to address minor repairs throughout the City in a timely manner for the sidewalk repairs that were the responsibility of the City; WHEREAS, Monterey City Code section 28-14(a) allows for an exemption from formal bidding requirements in cases where the contract or purchase is capable of being performed through contracts negotiated by a cooperative purchasing agency that utilized acceptable bidding procedures (“piggyback” agreements). The award of this Job Order contract utilizes an accepted “piggyback” option from the Texas Association of School Boards, Inc. (Contract #756- 24) through Buy Board Purchasing Cooperative, approved by the Finance Director, or her designee, on September 3, 2026;
Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 8, Packet Page 136 WHEREAS, fees for On-Call Sidewalk Inspection and Repair services will be based on a project-by-project basis directly charged to the Measure S Contractual Services and Measure S Capital Outlay accounts. The City is under no obligation to expend any funds under this Job Order contract;
WHEREAS, the required appropriations address both work that city is responsible for as well as the pilot program for minor repairs;
WHEREAS, as of September 2, 2026, sufficient funding is available in the Measure P/S Fund for these appropriations; and,
WHEREAS, the City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15301, Class 1) because the project would be for repairs of existing sidewalks using a saw-cutting method, which horizontally slices the trip hazard away and matches the sidewalks at the control joint or cracks. All work is within the public right-of-way and there will be no creation of new lanes.

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

Exception e - Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. No impact to sites included on any list compiled pursuant to Section 65962.5 of the Government code would occur.

Exception f - Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource. The project Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 9, Packet Page 137 is located in the area of high archeological sensitivity as shown in the General Plan. Project improvements would be located within the public right-of-way and would not include digging into native soil. Therefore, the project would not have an impact on historic or archeological resources.

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

1. Approves a Minor Sidewalk Repair Pilot Program, as further described in Exhibit A, effective until September 15, 2029;

2. Authorizes the Finance Director, or their designee, to appropriate $500,000 from the Measure S Fund to the Measure S Capital Outlay account (252-310-3121-0000-4505) and $500,000 from the Measure S Fund to the Measure S Contractual Services account (252-310-3121-0000-4220);

3. Awards a Job Order Contract to Precision Emprise, LLC dba Precision Concrete Cutting for Job Order Contracting Sidewalk Repair Projects for a term of one year with the option to renew for two additional years with an annual funding limit of $1,000,000;

4. Authorizes the City Manager, or their designee, to execute the contract upon the receipt of information required by the contract; and,

5. Directs Staff to present a pilot program for Council approval, that addresses cost sharing for major repairs in sidewalks, funded by Measure S, at the second meeting in December 2026, or as soon thereafter as is practicable.

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, 9/15/2026, Item No. 11., Item Page 10, Packet Page 138

EXHIBIT A

CITY OF MONTEREY
Minor Sidewalk Repair Pilot Program Guidelines

1. Purpose
Improve pedestrian safety and accessibility by correcting eligible minor sidewalk trip hazards throughout the City through cost-effective slicing or grinding treatments funded by Measure S.

2. Term and Funding
Three-year pilot beginning upon Council adoption of this policy. Funding is limited to available Measure S appropriations of $500,000 per year for the duration of three years. The program creates no obligation beyond available funding or the pilot term unless this program is renewed or amended by City Council action.

3. Eligible Locations
Existing public concrete sidewalks within the City of Monterey, including sidewalks adjacent to private property, where the City determines that slicing or grinding treatment is feasible, practical and cost effective. Horizontal concrete saw cutting, slicing and grinding treatments are only feasible where sidewalk uplifts or vertical displacements are compatible with the work.

There is no minimum or maximum offset height eligibility. Eligibility depends on the full site condition and is not established by offset height alone.

5. Ineligible or Major Work
Full panel removal or replacement; non-concrete sidewalks or other unsuitable material (mortared stone, mortared rock, mortared brick, asphaltic concrete, decomposed granite, hardscape, etc.), substantial structural failure, cracking, spalling, settlement, or voids; reconstruction; work that would create an unacceptable slope or compromise panel integrity; private improvements; replacement or resetting of utility covers; and other work determined by Public Works to fall outside the minor-repair scope.

Private walkways, driveways, parking areas and unimproved pathways and other improvements outside the public right of way are not eligible. Private encroachments within the public right of way are not eligible.

6. Cost to Property Owner
The City pays 100% of eligible work selected and delivered under this program. No reimbursement is made for owner-initiated or previously completed work.

7. Requests
Locations may be identified through the City’s current log, inventory, staff observation, or resident service request. Public Works will classify the condition. A request does not guarantee eligibility, priority, funding, or a completion date.

8. Prioritization
Priority is limited to known defects and is based on pedestrian activity; proximity to schools, parks, and community facilities citywide; and efficient bundling or mobilization.

9. Delivery
Work may be performed by City crews or by private contractors. Contracted work will be Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 11, Packet Page 139

EXHIBIT A
delivered through purchasing methods authorized by City policy and contracts approved by Council.

10. Property-Owner Responsibility
The program does not amend or waive Monterey City Code sections 32-24 et seq. or applicable State law. The abutting property owner’s responsibility for sidewalk maintenance, repair, and liability remains in effect as provided in the City Code.

11. Program Controls
The City may prioritize, defer, modify, or temporarily suspend assistance based on technical feasibility, contractor availability, budget, unanticipated events, or other Public Works needs.

The Public Works Director, or their designee, may issue administrative procedures and make non-substantive adjustments consistent with these guidelines and Council direction.

12. Tracking and Evaluation
Public Works will track expenditures, repair counts and types, cost data, and any backlog. Staff will provide annual information to the Measure P/S Oversight Committee and Council and will return at the end of the pilot with a recommendation to extend, modify, or take no action, in which case the program will automatically sunset on September 15, 2029.

Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 12, Packet Page 140 Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 13, Packet Page 141 Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 14, Packet Page 142 Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 15, Packet Page 143 Council Regular Meeting, 9/15/2026, Item No. 11., Item Page 16, Packet Page 144 Council
Agenda Report
№10/13
FROM: Christine Davi, City Attorney
SUBJECT: Conference with Legal Counsel, Significant Exposure to Litigation Pursuant to Government Code section 54956.9(d)(2), (e)(3), Receipt of Government Claim dated July 22, 2025 from Danny Clark
Attachment 1: Claim
Date: 9/15/2026
Item No.: 12.

Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 1, Packet Page 145

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 2, Packet Page 146

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 3, Packet Page 147

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 4, Packet Page 148

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 5, Packet Page 149

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 6, Packet Page 150

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 7, Packet Page 151

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 8, Packet Page 152

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 9, Packet Page 153

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 10, Packet Page 154

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 11, Packet Page 155

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 12, Packet Page 156

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 13, Packet Page 157

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 14, Packet Page 158

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 15, Packet Page 159

ATTACHMENT
Council Regular Meeting, 9/15/2026, Item No. 12., Item Page 16, Packet Page 160 Council
Agenda Report
№12/25
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Jacob Verania, HCD Coordinator
SUBJECT: Adopt the Fiscal Year (FY) 2025-2026 Consolidated Annual Performance and Evaluation Report (CAPER) and Authorize Submission to the U.S. Department of Housing and Urban Development, (Exempt from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26)
RECOMMENDATION:

That the City Council adopt the Fiscal Year 2025-2026
Consolidated Annual Performance and Evaluation
Report (CAPER) and authorize submission to the U.S.

Department of Housing and Urban Development (HUD).

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 FY 2025-2026 CAPER for housing and community
development programs has been prepared according to
HUD requirements. Submission of the CAPER to HUD is
required for the City to receive Community Development
Block Grant (CDBG) funds for the next fiscal year. The
activities summarized in the report were completed in
FY 2025-2026 or Program Year (PY25). All of the
programs, activities and expenditures identified in this CAPER implemented programs previously approved in
the City’s 2025-29 Consolidated Plan, and Fiscal Year
2025-2026 Action Plan. Submission of the CAPER to
HUD documents compliance of the City’s CDBG
programs with HUD national objectives.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

In FY 2025-2026, the City received a CDBG entitlement grant of $248,442 from HUD. In addition, the City received $1,210,353.18 in program income, resulting from ground leases, Agenda Report Highlights
• The report documents how FY
2025-2026 CDBG funds were
used and confirms compliance
with HUD requirements.
• City Council is asked to adopt the
CAPER and authorize its
submission to HUD to maintain
eligibility for future CDBG funding.
• The CAPER summarizes key
accomplishments in public
services, affordable housing
preservation, and program
administration in alignment with
approved plans.
• Adoption supports required
environmental compliance, fulfills
HUD reporting obligations, and
enables on-time submission by
the September 28, 2026 deadline.

Date: 9/15/2026
Item No.: 13.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 1, Packet Page 161 №12/25
loan payoffs, and the sale of inclusionary housing units to low-income buyers. In FY 2025- 2026, one inclusionary property was purchased, and two properties were sold to low-income purchasers. In the past few years, the City received the following Program Income:
• FY 2025-2026 $1,210,353.18
• FY 2024-2025 $1,188,047.20
• FY 2023-2024 $451,541.07
• FY 2022-2023 $900,052.46
• FY 2021-2022 $1,547,601.27
Program income varies based on revenue from the sale of inclusionary properties.

ENVIRONMENTAL DETERMINATION:

The plans are considered categorically excluded under the Federal National Environmental Policy Act (NEPA) guidelines (24 CFR Part 58). The plans are also exempt from the California Environmental Quality Act Guidelines (Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26) because the projects proposed for funding include the public service grant program, non-profit and City public infrastructure projects (building rehabilitation, sidewalk repairs, and park repairs/improvements), housing preservation (acquisition and rehabilitation) and planning and administration. These are minor projects that involve social service programs and rehabilitation/minor improvements to existing facilities.

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 included the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration. The environment is not sensitive as they involved minor projects and social service programs that rehabilitate and improve existing facilities.

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 include the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration. No cumulative impacts were 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 includes the public service grant program, nonprofit and City public infrastructure projects, housing preservation and planning and administration and no significant effect was anticipated.

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. No impacts are anticipated because none of the programs or sites were near a scenic highway.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 2, Packet Page 162 №12/25
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 that are listed on any list compiled pursuant to Section 65962.5 of the Government Code.

ALTERNATIVES CONSIDERED:

The City Council may elect not to approve the CAPER. However, this is not recommended as approval is a requirement for receiving grant funds and maintaining compliance with HUD.

DISCUSSION:

HUD requires submission of a CAPER at the end of each program year for all City programs utilizing CDBG entitlement funds. The CAPER specifically reports on how the City has used CDBG funds in the previous program year to achieve compliance with HUD national objectives.

HUD also requires that the CAPER report on the City’s progress in reaching the goals identified in the City’s Five-Year Consolidated Plan and Annual CDBG Action Plan. The period covered in the attached CAPER is for Fiscal Year 2025-2026 (July 1, 2025 through June 30, 2026).

HUD requires the City to hold two public hearings annually. The City is about to begin its Annual Action Planning and receiving input at this City Council meeting is important prior to undergoing this process.

Notices of the draft FY 2025-2026 CAPER and the September 15, 2026 City Council Public Hearing were published in newspapers of general circulation including: the Monterey Herald on August 27, 2026 and in the Monterey County Weekly on August 27, 2026. On August 27, 2026, the draft CAPER was made available to the public on the City’s website and physical review copies at the following locations:
• Office of the Planning Department, 570 Pacific St., Monterey, CA 93940 • Office of Housing Programs, 570 Pacific St., Monterey, CA 93940 • City Library, reference desk, 625 Pacific St., Monterey, CA 93940 • Website: www.monterey.gov/housing
In addition, on August 27, 2026, the City provided notification of the availability of the draft FY 2025-2026 CAPER to the following groups through Constant Contact and email notification:
• Chief of Police for the City of Monterey
• CDBG Subrecipients (Nonprofits)
• Continuum of Care (CoC) for the Monterey County
• Business Association Representatives
• Neighborhood Association Presidents
• Social Action Groups
• Residents of Public and Affordable Housing
Staff is working with agencies to ensure their reported numbers in this draft are correct prior to the final submittal to HUD. Should staff receive any further updated numbers from public service agencies, numbers will be updated in the final HUD document.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 3, Packet Page 163 №12/25
FY 2025-2026 Accomplishment Overview
The FY 2025-2026 CDBG projects and programs focused on continued support of public services, preservation of existing affordable ownership units, and housing rehabilitation grants.

Public Service Grant Program Highlights:
• Nine (9) Public Service programs were funded $179,808. Public services were provided to approximately 1,438 primarily low and moderate income households and individuals including services for seniors, persons with disabilities, homeless persons, youth and families. The Public Service agencies providing services to Monterey residents include:

Community Human Services (Casa de Noche Buena, Safe Place, and Shuman Heart House), Gathering for Women, Alliance on Aging, Interim, Inc., Eden Fair Housing, Meals on Wheels, and Food Bank of Monterey County.

Housing Preservation Highlights:
• The City sold two (2) affordable housing units to low-income qualified first-time homebuyers and purchased one (1) affordable inclusionary housing unit that requires minimal rehabilitation.
• The City is in the process of completing the rehabilitation of two (2) affordable ownership units and will be completing the rehabilitation of these units in Fiscal Year 2026-2027.

Planning and Administration Highlights:

Housing staff monitored sub-recipients and completed planning and administration activities in FY 2025-2026 to ensure compliance with HUD regulations. City staff completed administrative activities that included the following:
• On-site monitoring of all public service agencies between April through July • Quarterly desk-monitoring of all expense and activity reports • Conducted the Annual Action Planning for the FY 2026-2027 Annual Action Plan and submitted these documents to HUD
• Prepared the CAPER and Action Plan in the Integrated Disbursement and Information System (IDIS) as required by HUD
• Completed financial and programmatic accounting in IDIS to ensure funds were utilized in accordance with HUD requirements
• Completed NEPA Environmental Reviews for CDBG projects The FY 2025-2026 CAPER is available for review on the City’s website:
www.monterey.gov/housing and directly via the following link: and is https://files.monterey.gov/Document-Center/Departments/Community-Development/Housing/Plansand-Reports/CAPER/DRAFT-CAPER-FY2025-26.pdf?t=202608271715090 attached as Exhibit A to the resolution.

Prior to publication of the staff report, the City received a comment letter that expressed interest in understanding how funds are programmed for expenditure, accomplishment data, and increased homeless counts. The City Council annually approves its Annual Action Plan that details how the City will spend its CDBG funds that year. The current Annual Action Plan is available at the following link: https://files.monterey.gov/DocumentCouncil Regular Meeting, 9/15/2026, Item No. 13., Item Page 4, Packet Page 164 №12/25
Center/Departments/Community-Development/Housing/Plans-and-Reports/Action-Plans/DraftFY26-27-Annual-Action-Plan.pdf?t=202604211159030. The CAPER correctly outlines that the City assisted two low-income households obtain permanent housing last year. The City had inspired to help six households, but it has taken additional time to rehabilitate the units. The commentor did identify a typographical error on Page 17 that should state up to 120 percent of AMI instead of 20 percent of AMI. This comment is noted and the correction will be made.

In conclusion, staff recommends that the City Council conduct a public hearing to adopt the FY 2025-2026 CAPER for Housing and Community Development Programs; and authorize submission to HUD.

The CAPER must be submitted to HUD by September 28, 2026. HUD reviews and comments on the CAPER and administrative changes to the document may be required.

KC/jv
Attachments: 1. Draft Resolution

2. Exhibit A

3. Public Comment
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, 9/15/2026, Item No. 13., Item Page 5, Packet Page 165 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
ADOPTING THE FISCAL YEAR (FY) 2025-2026 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) AND AUTHORIZING SUBMISSION TO THE U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires submission of a Consolidated Annual Performance and Evaluation Report (CAPER) at the end of each fiscal year for all City programs utilizing Community Development Block Grant (CDBG) funds;
WHEREAS, a notice of the draft CAPER and CDBG Public Hearing was published in newspapers of general circulation including: the Monterey Herald on August 27, 2026 and in the Monterey County Weekly on August 27, 2026;
WHEREAS, the draft CAPER was made available on August 27, 2026, to the public on the City’ website and at the following locations:
• Office of the Planning Department, 570 Pacific St., Monterey, CA 93940 • Office of Housing Programs, 570 Pacific St., Monterey, CA 93940 • City Library, reference desk, 625 Pacific St., Monterey, CA 93940 • Website: www.monterey.org/housing
In addition, on August 27, 2026, the City provided notification of the availability of the draft CAPER to the following groups through Constant Contact and email notification:
• Chief of Police for the City of Monterey
• CDBG Subrecipients (Non-profits)
• Continuum of Care (CoC) for the Monterey County
• Business Association Representatives
• Neighborhood Association Presidents
• Social Action Groups
• Residents of Public and Affordable Housing;
WHEREAS the City completed CDBG projects and programs focused on continued support of public services, housing preservation programs, public facilities, and program administration activities to primarily benefit low to moderate income persons in the City of Monterey;
WHEREAS CDBG programs primarily served low to moderate income households and individuals, including seniors, persons with disabilities, people experiencing homelessness, youth, and families;
WHEREAS for Fiscal Year (FY) 2025-2026, the first year of the FY 2025-2029 Consolidated Planning period, the City of Monterey received a CDBG entitlement (EN) grant of $248,442. In addition, the City received $1,210,353.18 in Program Income (PI). In total in FY 2025-2026, the City received $1,590,641.35 including $131,846.17 of prior year funding that Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 6, Packet Page 166 was unexpended and carried over into this fiscal year. These funds served approximately 1,438 primarily low-moderate income City residents through public service programs and activities and the City purchased one (1) affordable housing unit for rehabilitation and resale, and two (2) homes were sold to low-income first-time home buyers;
WHEREAS, the plans are considered categorically excluded under the Federal National Environmental Policy Act (NEPA) guidelines (24 CFR Part 58). The plans are also exempt from the California Environmental Quality Act Guidelines (Article 19, Section 15301, Class 1, 15306, Class 6 and 15326, Class 26) because the projects proposed for funding include the public service grant program, non-profit and City public infrastructure projects (building rehabilitation, sidewalk repairs, and park repairs/improvements), housing preservation (acquisition and rehabilitation) and planning and administration. These are minor projects that involve social service programs and rehabilitation/minor improvements to existing facilities; and 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 included the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration. The environment is not sensitive as they involved minor projects and social service programs that rehabilitate and improve existing facilities.

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 include the public service grant program, non-profit and City public infrastructure projects, housing preservation and planning and administration. No cumulative impacts were 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 include the public service grant program, nonprofit and City public infrastructure projects, housing preservation and planning and administration and no significant effect was anticipated.

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. No impacts are anticipated because none of the programs or sites were near a scenic highway.

Exception e - Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. There are no project sites that are listed on any list compiled pursuant to Section 65962.5 of the Government Code.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 7, Packet Page 167 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 plans did not reference any sites or locations identified as a historical resource.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it adopt the Fiscal Year 2025-2026 Consolidated Annual Performance and Evaluation Report (CAPER) for Housing and Community Development Programs, attached hereto and incorporated by reference as Exhibit A, authorize submission to the U.S.

Department of Housing and Urban Development (HUD), and authorize the City Manager to make administrative changes to the Draft CAPER document after the submittal as may be requested by the U.S. Department of Housing and Urban Development (HUD).

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, 9/15/2026, Item No. 13., Item Page 8, Packet Page 168

EXHIBIT A
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 9, Packet Page 169 CAPER i
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table of Contents
Table of Contents....................................................................................................................................... i CR-05 - Goals and Outcomes .................................................................................................................... 1 CR-10 - Racial and Ethnic composition of families assisted...................................................................... 4 CR-15 - Resources and Investments 91.520(a) ......................................................................................... 5 CR-20 - Affordable Housing 91.520(b)...................................................................................................... 8 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................11 CR-30 - Public Housing 91.220(h); 91.320(j)...........................................................................................16 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ....................................................................................17 CR-40 - Monitoring 91.220 and 91.230...................................................................................................21 CR-45 - CDBG 91.520(c)..........................................................................................................................23 CR-58 – Section 3 ....................................................................................................................................24 Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 10, Packet Page 170 CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

For Fiscal Year (FY) 2025-2026, the City of Monterey received a CDBG entitlement (EN) grant of $248,442. In addition, the City received $1,210,353.18 in Program Income (PI). With a total of $1,590,641.35 in resources available, the City was able to pursue a range of housing and community development activities. As of June 30, 2026, the City’s CDBG program has a balance of $1,064,879.40. The City was successful in meeting its timeliness test in FY 25-26 and continues ongoing efforts to maintain timeliness in future years.

To support the goals and objectives in the Annual Action Plan as well as the 2025-2029 Consolidated Plan, the City successfully focused on a wide array of planned activities in the first year of the Consolidated Plan. The City continued to fund its ongoing public service programs that support Consolidated Plan goals that meet community and resident needs. Public service programs funded through CDBG included homeless individuals, disabled individuals, seniors, youth, and families. Public Service programs included: Alliance on Aging, Community Human Services Casa De Noche Buena, Community Human Services Safe Place, Community Human Services Shuman HeartHouse, Eden Council for Hope and Opportunity (ECHO) Fair Housing Support Services, Food Bank of Monterey County, Gathering For Women, Interim, Inc., and Meals on Wheels. Approximately 1,438 primarily low-moderate income City residents were supported through these public service programs. Of the total number served through Public Service Programs, this includes 171 low-to-moderate income residents who received overnight shelter, as well as twelve (12) additional emergency or overnight shelter beds that were created.

In FY 2025-2026, the City continued to fund home rehabilitation projects through its Housing Preservation Programs. In FY 2025-2026, the City successfully administered and completed rehabilitation for one (1) low-income household through the Housing Preservation Program grants.

The City has also continued to provide opportunities for low-income qualified first-time home buyers to purchase former inclusionary, deed restricted housing units through the Purchase and Resale Program. The City purchased one (1) affordable housing unit for rehabilitation and resale, and two (2) homes were sold to low-income first time home buyers this Fiscal Year. The City is projecting the resale of the rehabilitated unit will occur in the following Fiscal Year 2025- 2026.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 11, Packet Page 171 CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Goal Category Source /
Amount
Indicator Unit of
Measure
Expected –
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected –
Program
Year
Actual –
Program
Year
Percent
Complete
Affordable
Housing
Opportunities
Affordable
Housing
CDBG:
$298,632.22
Homeowner
Housing Added
Household
Housing Unit
15 2

13.33%
3 2

66.67%
Affordable
Housing
Opportunities
Affordable
Housing CDBG: $0
Homeowner
Housing
Rehabilitated
Household
Housing Unit
15 0

0.00%
3 0 0.00%
Homeless
Prevention and
Public Services
Homeless
NonHomeless
Special Needs
CDBG:
$179,808
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
8225 1438

17.48%
1645 1438

87.42%
Homeless
Prevention and
Public Services
Homeless
NonHomeless
Special Needs
CDBG: $0
Homeless Person
Overnight Shelter
Persons
Assisted
0 171 0 171
Homeless
Prevention and
Public Services
Homeless
NonHomeless
Special Needs
CDBG: $0
Overnight/Emerg
ency
Shelter/Transitio
nal Housing Beds
added
Beds 0 12 0 12
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 12, Packet Page 172 CAPER 2
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Goal Category Source /
Amount
Indicator Unit of
Measure
Expected –
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected –
Program
Year
Actual –
Program
Year
Percent
Complete
Public Facilities
and
Infrastructure
Non-Housing
Community
Development
CDBG: $0
Public Facility or
Infrastructure
Activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
750 0

0.00%
150 0 0.00%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 13, Packet Page 173 CAPER 3
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Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

The 2025-2029 Consolidated Plan concentrates on providing affordable housing opportunities as well as public services for low and very low-income households, seniors, persons with special needs, and individuals experiencing homelessness, as well as programs for public facility improvements in low- and moderate-income (LMI) residential areas. Activities undertaken in FY 2025-2026 addressed priority goals set forth in the Consolidated Plan. For example, direct assistance was provided to low-income and homeless individuals through services such as case management, outreach, and varying forms of support. Moreover, rehabilitation assistance was provided to homeowners through various programs to address the goals of improving housing opportunities for low- and moderate-income level households.

In FY 2025-2026, the City of Monterey continued to successfully provide support to LMI residents through CDBG funded activities. Examples include:
• Funding to public service agencies providing direct services to homeless individuals, seniors, disabled individuals, and low-income individuals throughout the community; • Funding to low-income homeowners to assist with home repair, rehabilitation, and accessibility improvements; and
• Preparing for the ongoing purchase and resale of housing units with the goal of preserving lowincome homeownership opportunities in the City.

In FY 2025-2026, the City received a total allocation that included $248,442 in CDBG grant funds and an additional $1,188,047.20 in FY 2024-2025 Program Income funding, allowing the City to utilize $179,808.00 toward public service funding serving 1,438 low-income Monterey residents.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 14, Packet Page 174 CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
CDBG
White 1,018
Black or African American 98
Asian 154
American Indian or American Native 16
Native Hawaiian or Other Pacific Islander 9
Total 1,295
Hispanic 304
Not Hispanic 991
Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative
During FY 2025-2026, the City was successful in collecting demographic data for 1,440 persons served with CDBG funds. Table 2 above shows the racial and ethnic composition of the families assisted. The total number served is reflected in Table 2 and includes those assisted through home rehabilitation and public service agencies, but excludes four (4) racial beneficiaries, such as Other/Multi-Racial, Asian and White, American Indian or American Native and White, and Black/African American and White, all of which total 145 persons. In all, the total number of persons assisted was 1,440, 343 of which were Hispanic.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 15, Packet Page 175 CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal $1,590,641.35 $525,761.95
Table 3 - Resources Made Available
Narrative
As in recent years, the City met the annual Department of Housing and Urban Development’s (HUD) timeliness test in FY 2025-2026 (Table 3).

The City’s CDBG Entitlement funding is leveraged with CDBG Program Income (PI):

1. Entitlement ($248,442.00)

2. Program Income ($1,210,353.18)
Table 3 details the total amount of resources made available in FY 2025-2026 that included $1,590,641.35. The $1,590,641.35 includes $131,846.17 (prior year funding unexpended and carried over into this FY), entitlement grant funding of $248,442.00, and Program Income of $1,210,353.18.

Identify the geographic distribution and location of investments Target Area Planned
Percentage of
Allocation
Actual
Percentage of
Allocation
Narrative Description
Block Group 1,
Census Tract 130
Block Group 2,
Census Tract 125.04
Block Group 2,
Census Tract 127
Block Group 3,
Census Tract 125.03
Block Group 3,
Census Tract 133
Citywide 100 100
Projects will benefit eligible City of
Monterey residents on a citywide basis.

Table 4 – Identify the geographic distribution and location of investments Narrative
Across the City of Monterey, there are five (5) Census Block Group areas that qualify for lowmoderate income area benefit. These Census Block Groups are: 125.03, 125.04, 127, 130,and 133. All CDBG fund activities were distributed city-wide (Table 4).

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 16, Packet Page 176 CAPER 6
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Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

The City leverages additional local and state resources with the CDBG entitlement grant. The City’s ongoing partnerships that provide CDBG funding to various public service agencies, such as Community Human Services (CHS), allows organizations to leverage additional grant funds and private resources increasing programs and services within the community. For example, Community Human Services leverages multiple funding sources, including, local, federal, and state to run their homeless outreach and emergency shelter programs. In 2023, CHS opened Shuman HeartHouse, providing additional shelter beds within the City of Monterey.

In FY 2025-2026, the City committed a total of $179,808.00 of CDBG funds to seven (7) public service agencies. CDBG public service funds were leveraged significantly with local nonprofit agency funds. The various local organizations provided supportive services such as counseling, emergency shelter, homeless programs, programs for disabled individuals, senior programs, and other programs for low-income Monterey residents.

The Housing Authority of the County of Monterey (HACM) also provides a variety of services to the City of Monterey and Monterey County residents, including Housing Choice Vouchers, Project Based Vouchers (PBV), Rental Assistance Demonstration (RAD) Housing, Project Based Rental Assistance (PBRA), Farm Labor Housing, Tax Credit Housing, Transitional Housing, and other affordable housing programs. Currently, the City of Monterey has 223 Housing Choice Vouchers utilized within City limits in 2025-2026.

In addition, HACM owns rental properties in the City including: Oak Grove (1100 Second Street - 5 Low and Very Low income units); 531 Watson St (5 RAD units); 242 and 243 Montecito Ave (8 RAD units); and Portola Vista at 20 Del Monte Avenue (64 units for seniors and disabled persons). The Housing Authority offers affordable rental units to eligible families, seniors, and persons with disabilities.

Earlier this year on March 9, 2026, a three-alarm early morning structure fire started at an affordable apartment complexes within the city limits at 800 Casanova Avenue on a property owned by HDC. As noted above, HDC is a development arm for the Housing Authority County of Monterey. In the aftermath of the fire, approximately 91 residents were displaced from their homes. In a joint effort to assist, the City of Monterey provided a $125,000 in general funds to HACM inorder to assist with costs for temporary housing and relocation efforts of displaced tenants.

HACM also provides fair housing information and tenant-landlord counseling to its clients.

HACM tenantlandlord investigates discriminatory housing complaints. Additionally, HACM Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 17, Packet Page 177 CAPER 7
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partners with a wide array of community nonprofit organizations, City and County agencies, and State organizations to address affordable housing and housing shortage issues facing the jurisdiction.

In addition to the above, the City receives Permanent Local Housing Allocation (PLHA) grant funds from the State of California. PLHA is a formula grant to entitlement jurisdictions that is based on the formula used under federal law for CDBG. City Council authorized the use of PLHA funds to cover pre-development costs for the 100% affordable housing project behind City Hall.

PLHA funding was also used to fund various public service agencies in the City that assist with either homeless outreach/navigation centers and emergency shelter programs.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 18, Packet Page 178 CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 6 2
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 6 2
Table 5 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 3 0
Number of households supported through
Acquisition of Existing Units 3 2
Total 6 2
Table 6 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

In FY 2025-2026, the City continued to fund home rehabilitation projects through its Housing Preservation Programs. In FY 2025-2026, the City has also continued to provide opportunities for low-income qualified first-time home buyers to purchase former inclusionary, deed restricted housing units through the Purchase and Resale Program. The City purchased one (1) affordable housing unit for rehabilitation and resale, and two (2) homes were sold to lowincome first time home buyers this Fiscal Year. One of those two homes was rehabilitated through the City’s Housing Preservation Program prior to being sold.

The City is projecting the resale of the other unit acquired after it is rehabilitated in the coming Fiscal Year 2026-2027.

As portrayed in Table 5 and Table 6 and above, while the City did not meet its goals for Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 19, Packet Page 179 CAPER 9
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acquisition and purchased three units, the City continues to pursue additional units. The City also sold two (2) affordable housing units to low-income qualified first-time home buyers. The City projects that the resale of the rehabilitated unit will occur in the following Fiscal Year 2026- 2027.

Discuss how these outcomes will impact future annual action plans.

There is a continued need for available housing units for extremely low, very low, and lowincome households in the City of Monterey. The City’s housing division strives to explore opportunities with regional public service providers, local nonprofit housing developers, and neighboring jurisdictions for the development of new housing units in the region.

The City entered into an Exclusive Negotiating Agreement on City owned land with MidPen Housing for the development of a one hundred percent affordable housing project to feature 41 units behind City Hall between Madison Street, Van Buren Street, and Dutra Street.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 0 0
Low-income 2 0
Moderate-income 0 0
Total 2 0
Table 7 – Number of Households Served
Narrative Information
CDBG funds were allocated for nine (9) public services programs, which in total served primarily low income individuals including seniors, youth, persons with disabilities, homeless, and households at risk of homelessness, and low-income households. Echo Fair Housing provided fair housing and tenant landlord services. Alliance on Aging provided tax assistance and ombudsman services as well as referrals for other programs to low-income seniors.

Approximately 97% of those who received support from public service agencies through CDBG were low- to moderate-income.

The City continued its Housing Preservation Programs which are dependent on determining household income based on family size. Of the one (1) household assisted through Housing Preservation Programs, this individual was low-income. The City’s Purchase and Resale Program purchased one (1) affordable housing units for rehabilitation and resale, and two (2) homes were sold to low-income first time home buyers this Fiscal Year. The Purchase and Resale program will continue to provide opportunities to low-income qualified first-time homebuyers to purchase former inclusionary, deed restricted housing units that will be resold to lowincome first time home buyers. The City is currently working with low-income first time home buyers Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 20, Packet Page 180 CAPER 10
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who are in line to purchase units that come available in the near future. First time home buyers attend a HUD certified First Time Homebuyer Class in order to prepare them for ownership.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 21, Packet Page 181 CAPER 11
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CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The Coalition of Homeless Service Providers (CHSP) is the Continuum of Care (CoC) for the Counties of Monterey and San Benito and includes the City of Monterey. Every two years, in the month of January, communities across the United States conduct a Point-in-Time (PIT) count of the local population experiencing homelessness. For 2026, the CoC conducted its PIT count on January 29. These counts collect information on individuals and families residing in temporary shelters and places not meant for human habitation. This count ultimately helps the federal government to better understand the nature and extent of homelessness nationwide. As required by the HUD, CoCs must report the findings of their local PIT count to HUD. Information gathered through the PIT survey 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.

The 2026 Monterey County Point-In-Time (PIT) Homeless Count found the County-wide homeless population was 2,073, including 1,459 unsheltered individuals and 614 sheltered individuals.

In the City of Monterey, a total of 236 were counted as homeless, a 7 percent increase from the count in 2024. No specific data on the characteristics of people experiencing homelessness in the City of Monterey is available from the PIT. Countywide, the homeless population decreased by 15 percent since 2024. The number of sheltered in the City was 72 and 164 unsheltered. The numbers show that the City is home to the third highest homeless population in Monterey County.

The homeless population in the City represents 11.4 percent of the homeless population countywide. The unhoused population in the City has increased since the 2024 PIT Count, which identified only 221 unhoused residents, an increase of 7 percent during this period. When looking at the population from the 2023 5-year ACS estimates, the City has a higher per capita of people experiencing homelessness than the County (0.74 in the City versus 0.55 Countywide).

The 2026 Monterey County Homelessness PIT Count and Report identifies financial issues such as cost of living and job loss as the primary cause of homelessness in the County, followed by alcohol or drug use. The inability to afford rent and not enough income were top obstacles to Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 22, Packet Page 182 CAPER 12
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obtaining permanent housing.

In-depth surveys are conducted as part of the PIT for the County. While survey specific data does not exist at the City level, County-level data indicated that fifteen (15) percent of survey respondents reported currently experience domestic/partner violence or abuse at the time of the PIT count. This percentage has increased since 2024 (6 percent). Additionally, 22 percent responded that they had been physically, emotionally, or sexually abused in their lifetime.

Victims of domestic violence may require special services to find housing, especially single mothers who may also be responsible for childcare expenses.

The 2019-2023 ACS estimates that approximately 35 percent of the City’s female-headed families, with no spouse present and with children under 18 years of age are living below the poverty level compared to 5 percent of married-couple families with children under 18 years of age.

An ongoing homeless assistance strategy has been the provision of financial assistance for community organizations that provide services that connect both those at risk of becoming homeless and currently homeless to housing, shelter, and other services. Community organizations that were assisted include Community Human Services, Interim, Inc., and Gathering for Women. These organizations provide sheltered bed at night, outreach, case management, counseling, and other support services. Through the City’s continued CDBG funding to these organizations, services and outreach are directed to those at risk of becoming homeless or are experiencing homelessness.

In FY 2025-2026, the City continued to provide CDBG grants to community service organizations that serve homeless needs. This strategy has been an ongoing effort for the City to connect homeless individuals and families and those at risk of becoming homeless with needed services.

Six (6) organizations were awarded CDBG grants totaling $125,000 for the following services:
• Casa de Noche Buena by Community Human Services ($20,000): Emergency shelter serving single homeless persons and families with children; • Safe Place by Community Human Services ($20,000): Homeless outreach and support for homeless individuals and at-risk youth;
• Shuman HeartHouse by Community Human Services ($20,000): Emergency shelter serving single homeless persons and families with children; • The Food Bank of Monterey County ($20,000): Nutrition support to the homeless population;
• Gathering for Women ($20,000): Case management and day-center services to assist homeless persons; and
• Interim, Inc. ($25,000): Homeless services, emergency shelter in motels, street outreach, Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 23, Packet Page 183 CAPER 13
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and case management for people with mental illness
Addressing the emergency shelter and transitional housing needs of homeless persons The City of Monterey continued to allocate CDBG funds to community service organizations that provided direct services to homeless persons. Public services funding was provided to Community Human Services’ Casa de Noche Buena and Shuman HeartHouse for emergency shelter services serving single homeless persons and families with children and Interim, Inc. for street outreach, and emergency shelter beds in motels. In addition, Gathering for Women, an organization serving homeless persons and offering shelter referrals, was supported by the City as well.

As the City is committed to addressing the emergency shelter and transitional housing needs of the community’s homeless population, they will continue to coordinate with and maintain strong relationships with the community organizations. The City continues to search for new ways to assist its homeless population’s shelter and housing needs.

In addition to regional CoC coordination, the City partners with the Monterey Police Department (MPD)to facilitate outreach to unhoused individuals. Outreach efforts for persons experiencing homelessness are leveraged by Police Department funds. In coordination with the MPD, the City:
• Provides workstations at the Monterey Police Department for service provider staff to facilitate solutions for the unhoused and collaboration with MPD officers; • Connects unhoused people with domestic violence workers, social workers, women's services, adult protective services, mental health and drug treatment programs, veterans’ programs, long term housing solutions; and other relevant services; • Abates illegal encampments to prevent beach erosion, public health problems, environmental damage, nuisance conditions, and fire hazards; and • Publishes information about these collaborative efforts via the City website.

The Monterey Police Department (MPD) has collaborated with many agencies to address some of the prevalent issues affecting our community. Some of these issues include homelessness, quality of life complaints, substance abuse, chronic problems, etc. These issues are more readily resolved by partnering with various governmental and non-governmental entities.

Social workersfrom Adult Protective Services (APS), Montage Health, Monterey County Behavioral Health, and Interim Inc. partner with Officers from MPD to form the MultiDisciplinary Outreach Team (MDOT). MDOT makes numerous daily contacts with the unhoused population in Monterey. In 2025, MDOT assisted 36 individuals with different services. These services included obtaining Identification, hotel vouchers, gasoline cards, food security, and Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 24, Packet Page 184 CAPER 14
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scheduling Doctor appointments. MDOT also helped 12 individuals get into temporary or permanent housing.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after 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); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The Coalition of Homeless Services Providers is the lead agency for the Continuum of Care in the County of Monterey. The Coalition’s Leadership Council oversees the Lead Me Home Plan, which the City has participated in since 2013. Lead Me Home is a 5-year plan (2021-2026) that describes strategies to reduce homelessness over the five-year period from July 2021 to June 2026. The Plan’s framework was built upon using tools such as system assessment, predictive analysis, and community input process.

Objectives and priorities for addressing homelessness in the County of Monterey were incorporated into the City’s Consolidated Plan and will continue to inform future Consolidated Plan goals as well as Annual Action Plan activities. The Coalition of Homeless Services Providers works in close coordination with the City’s CDBG subrecipients. Community Human Services’ Safe Place program provided homeless outreach and support to homeless persons and at-risk youth while their Casa De Noche Buena and Shuman HeartHouse emergency shelter served homeless persons and families with children; Interim, Inc. provided homeless services including emergency shelter in motels, street outreach and case management for persons with mental illnesses. In addition, Interim Inc.’s Manzanita House provided short-term crisis residential services
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
In FY 2025-2026, the City continued to allocate CDBG funds to serve organizations that assist the homeless population and those who are at-risk of becoming homeless. Interim, Inc. provided street outreach and intensive case management to 35 newly homeless individuals.

The City also continued to support Community Human Services (CHS) with three (3) programs:
the Safe Place program which provided homeless outreach and support to 36 homeless Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 25, Packet Page 185 CAPER 15
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individuals and at-risk youth, Casa De Noche Buena emergency shelter which served 71 single homeless persons and families with children, and Shuman HeartHouse emergency shelter which served 52 single homeless persons and families with children. Furthermore, the City also continued to support Gathering for Women which provided 192 homeless persons with case management and day-center services.

In addition to the public service agencies discussed above, the City allocated CDBG funds to the Food Bank of Monterey County, Meals on Wheels for seniors and disabled persons, Alliance on Aging for low-income senior tax assistance, and ECHO Fair Housing Support Services for lowincome households. Supportive services provided by each of these organizations helps the City’s low-income population by improving quality of life and meeting needs.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 26, Packet Page 186 CAPER 16
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CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City consults with the Housing Authority of the County of Monterey (HACM) when creating the Consolidated Plan and the Strategic Plan. The Housing Authority of the County of Monterey (HACM), a public agency, provides rental subsidies and develops and manages affordable housing projects throughout Monterey County. Originally, HACM owned and operated 177 units in the City of Monterey. However, with the damage caused by the Casanova Fire, 86 units were destroyed and removed from the affordable housing inventory. There are 91 affordable housing units remaining within the City of Monterey. HACM also administers the Housing Choice Voucher Program (HCV), a rental subsidy program for lower income (up to 50 percent AMI) families and seniors. Of the 5,112 HCVs in use in the County, 223 are allocated for the City of Monterey. The City will continue to coordinate with HACM as the regional housing authority and affordable housing provider whenever and wherever possible in future fiscal years. HACM has completed the conversion of all public housing projects into project-based tenant assistance. Currently, there are no longer any public housing in Monterey County.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
HACM promotes sufficiency and asset development of resident families and individuals by encouraging participants in the HCV program to sign up for the Family Self-Sufficiency program and the POWER project. HACM also assists families who are able to become homeowners by utilizing various options including Section 8 vouchers and working with the communities to provide down payment assistance to clients. These programs continued in FY2025.

Actions taken to provide assistance to troubled PHAs
Not applicable. HACM is not considered a “troubled” PHA.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 27, Packet Page 187 CAPER 17
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CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken 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. 91.220 (j); 91.320 (i) The 2025-2029 Consolidated Plan identifies housing costs and affordability as the most significant housing problems facing the City of Monterey. Households earning below 80 percent of Monterey’s AMI are most impacted by the lack of affordable rental and ownership housing units. While market rate rental units in the City are generally affordable for moderate-income households up to 20 percent of AMI, the supply of housing is generally limited. Simultaneously, the inventory of very-low and low-income units in the City is not sufficient enough to meet lowincome residents needs.

Housing is classified as ‘affordable’ if households do not pay more than 30 percent of their annual income on rent or mortgage. Otherwise, if a household is paying more than 30 percent of their annual income on rent or mortgage, they are classified as housing cost burdened. Both Census and survey data highlight that a high percentage of low-income households in the City of Monterey experience housing cost burden at 30 percent or greater of their household income. Coupled with the number of homeless individuals and families in the City, there is an evident need for housing units that are affordable to extremely low-income households. In the fifth year of the Consolidated Plan, the City is consistently exploring funding strategies that can be utilized to develop new availability of extremely low, very low, and low-income rental units.

A potential barrier to housing opportunities can be related to public policies. Such policies include tax policy, land use controls, zoning ordinances, building codes, 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.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 28, Packet Page 188 CAPER 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
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 2023-2031 Housing Element was found to be in compliance.

Specific to the City, a primary barrier continues to be a shortage of developable land with adequate utilities. A limited availability of land without utilities makes it expensive and infeasible for an affordable residential development. There is limited water availability for new development due to limited regional water supply. However, some existing properties have water credits that may be allocated to new housing development. The City has also identified underutilized sites with water credits and the location of these areas are mapped in the City’s specific plans
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City supported the Van Buren Senior Housing project (long-term lease on City-owned land), the Monterey Hotel Apartments (solely funded with former Redevelopment Agency housing funds), and the Estrella Apartments (funded by HOME grant). These three (3) projects provide affordable housing to lowto moderate-income households. In the fifth year of the Consolidated Plan, the City continues to address the goal of improving housing opportunities for low- and moderate-income levels. For example, the City is in the process of developing a new one hundred percent affordable housing project on City-leased land located behind City Hall.

As stated throughout this report, the City provided grants through CDBG to public service organizations, all of which provide important support services to low-income populations in order to boost quality of life for populations served. Several organizations that received CDBG funds in FY 2025-2026 include the Food Bank of Monterey County, Meals on Wheels for seniors and disabled persons, Alliance on Aging for low income senior tax services, and ECHO Fair Housing for low-income household supportive services.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The City of Monterey’s Housing Office administers and manages a minor Housing Rehabilitation Program which is funded through CDBG and includes grants offered to low-income households.

Minor rehabilitation programs offered to homeowners in need of minor repairs for home maintenance that improve overall housing quality, including funds for emergency health and safety repairs to meet code, and assistance to homeowners with installation of accessibility features for disabled household members. These grant programs are available to low-income households and each rehabilitation project is tested for lead-based paint if the unit is built before 1978. If lead-based paint is discovered, the City utilizes allocated CDBG funds to either encapsulate or abate any hazards. If needed, the City will test for asbestos. In FY 2025-2026, the City assisted one (1) low-income households through these CDBG-funded housing rehabilitation Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 29, Packet Page 189 CAPER 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
projects. In future fiscal years, the City will continue to allocate CDBG funding for its minor and major housing rehabilitation programs.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) Through CDBG grant allocations in FY 2025-2026, the City provided funding to public service organizations for important supportive services to homeless and low-income populations and allocated funding to their own programs. Programs, services, and organizations included the following:
• Alliance on Aging – Tax assistance and ombudsman services for low-income seniors in need;
• Food Bank of Monterey – Food donations;
• Gathering for Women – Case management and day-center services for homeless persons;
• Interim, Inc – Homeless services, emergency and temporary housing, and case management for persons with mental illnesses;
• Meals on Wheels – Meal delivery to homebound seniors and disabled persons; • ECHO Fair Housing Supportive Services – Fair housing support to low-income households;
• Community Human Services Safe Place – Homeless and at-risk youth outreach and support;
• Community Human Services Casa De Noche Buena – Emergency shelter for single homeless persons and families with children;
• Community Human Services Shuman HeartHouse – Emergency shelter for single homeless persons and families with children.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) Since 2013, the City has been participating in the Coalition of Homeless Services Providers (lead agency for the County of Monterey’s Continuum of Care) Leadership Council’s oversight of the Lead Me Home plan. Lead Me Home is a 5-year plan (2021-2026) that aims to reduce homelessness through strategies and with the support of the community. The vision of the Plan is that all people in the Monterey and San Benito Counties should have access to affordable housing and services that will stabilize their lives. Objectives and priorities for addressing homelessness in the County of Monterey were incorporated into the City’s Consolidated Plan and will continue to inform future Consolidated Plan goals as well as Annual Action Plan activities. As the Coalition works in close coordination with the City of Monterey’s CDBG subrecipients, the City remains in regular contact and coordination with providers in the region.

Furthermore, the City also consults with the Housing Authority of the County of Monterey Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 30, Packet Page 190 CAPER 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
(HACM) and with Eden Council for Hope and Opportunity, both of which are regional agencies providing vital services in the community.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City continues to work with various public service agencies that provide strategic and crucial services to City residents, such as outreach and education regarding affordable housing and housing placement. In FY 2025-2026, the City aimed to maintain and strengthen its relationships with these public service agencies and is consistently searching for new avenues to bolster these established relationships and develop new ones as well.

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) HUD no longer requires an analysis of impediments to fair housing choice. Nevertheless, the City continues to evaluate needs and offer fair housing services including tenant landlord, first time homebuyer classes, and tenant protection trainings.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 31, Packet Page 191 CAPER 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
In FY 2025-2026, the City conducted monitoring of all CDBG subrecipient public service agencies and identified no findings. The City of Monterey has the following seven-step monitoring process for its subrecipients:

1. Risk Analysis for subrecipients,

2. Quarterly desk monitoring of activity and expense reports (any identified issues are worked out through quarterly desk monitoring and corrections),

3. Pre-monitoring questionnaire for subrecipients,

4. Desk Review for subrecipients with a high score on the risk analysis or pre-monitoring questionnaire,

5. Request for site visit (if needed),

6. On-Site monitoring visits to review grant documentation and procedures,

7. Monitoring letter sent with recommendations, findings, and next steps, and

8. Intervention for subrecipients that do not respond or fail to make corrective actions.

In addition, the City follows all HUD-approved procurement guidelines and Section 3 requirements in all federally funded public contracts. The City also participates in regional planning efforts to ensure comprehensive planning to address housing and community development issues.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

The City of Monterey published notice of the FY 2025-2026 CAPER public hearing on August 27, 2026.

The 15-day public comment period began on August 27, 2026, and closed on September 15, 2026. The City Council conducted the public hearing on September 15, 2026.

CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

Goals and priorities that were specified in the 2025-2029 Consolidated Plan guided the City’s Annual Action Plan activities. No changes were made to the 2025-2026 Annual Action Plan. The City continued to prioritize the successful completion of the Timeliness Spending Plan according to an established Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 32, Packet Page 192 CAPER 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
internal process and long-range plans that help maintain timeliness while meeting other CDBG program objectives.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

Not applicable.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 33, Packet Page 193 CAPER 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

Not applicable.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 34, Packet Page 194 CAPER 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided No activities/projects pursued by the City during FY 2025-2026 were subject to Section 3 requirements.

Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 0 0 0 0 0
Total Labor Hours
Total Section 3 Worker Hours
Total Targeted Section 3 Worker Hours
Table 8 – Total Labor Hours
Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers
Outreach efforts to generate job applicants who are Other Funding Targeted Workers.

Direct, on-the job training (including apprenticeships).

Indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

Outreach efforts to identify and secure bids from Section 3 business concerns.

Technical assistance to help Section 3 business concerns understand and bid on contracts.

Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns.

Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services.

Held one or more job fairs.

Provided or connected residents with supportive services that can provide direct services or referrals.

Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation.

Assisted residents with finding child care.

Assisted residents to apply for, or attend community college or a four year educational institution.

Assisted residents to apply for, or attend vocational/technical training.

Assisted residents to obtain financial literacy training and/or coaching.

Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

Provided or connected residents with training on computer use or online technologies.

Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 35, Packet Page 195 CAPER 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.

Other.

Table 9 – Qualitative Efforts - Number of Activities by Program Narrative
Not applicable.

Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 36, Packet Page 196 PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 1
18:35
08-11-26
Program Year 2025

MONTEREY , CA
Metrics
Grantee
Program Year
PART I: SUMMARY OF CDBG RESOURCES
01 UNEXPENDED CDBG FUNDS AT END OF PREVIOUS PROGRAM YEAR 02 ENTITLEMENT GRANT
03 SURPLUS URBAN RENEWAL
04 SECTION 108 GUARANTEED LOAN FUNDS
05 CURRENT YEAR PROGRAM INCOME
05a CURRENT YEAR SECTION 108 PROGRAM INCOME (FOR SI TYPE) 06 FUNDS RETURNED TO THE LINE-OF-CREDIT
06a FUNDS RETURNED TO THE LOCAL CDBG ACCOUNT
07 ADJUSTMENT TO COMPUTE TOTAL AVAILABLE
08 TOTAL AVAILABLE (SUM, LINES 01-07)
PART II: SUMMARY OF CDBG EXPENDITURES
09 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS AND PLANNING/ADMINISTRATION 10 ADJUSTMENT TO COMPUTE TOTAL AMOUNT SUBJECT TO LOW/MOD BENEFIT 11 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 09 + LINE 10) 12 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
13 DISBURSED IN IDIS FOR SECTION 108 REPAYMENTS
14 ADJUSTMENT TO COMPUTE TOTAL EXPENDITURES
15 TOTAL EXPENDITURES (SUM, LINES 11-14)
16 UNEXPENDED BALANCE (LINE 08 - LINE 15)
PART III: LOWMOD BENEFIT THIS REPORTING PERIOD
17 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
18 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
19 DISBURSED FOR OTHER LOW/MOD ACTIVITIES
20 ADJUSTMENT TO COMPUTE TOTAL LOW/MOD CREDIT
21 TOTAL LOW/MOD CREDIT (SUM, LINES 17-20)
22 PERCENT LOW/MOD CREDIT (LINE 21/LINE 11)

LOW/MOD BENEFIT FOR MULTI-YEAR CERTIFICATIONS
23 PROGRAM YEARS(PY) COVERED IN CERTIFICATION
24 CUMULATIVE NET EXPENDITURES SUBJECT TO LOW/MOD BENEFIT CALCULATION 25 CUMULATIVE EXPENDITURES BENEFITING LOW/MOD PERSONS
26 PERCENT BENEFIT TO LOW/MOD PERSONS (LINE 25/LINE 24) PART IV: PUBLIC SERVICE (PS) CAP CALCULATIONS
27 DISBURSED IN IDIS FOR PUBLIC SERVICES
28 PS UNLIQUIDATED OBLIGATIONS AT END OF CURRENT PROGRAM YEAR 29 PS UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS PROGRAM YEAR 30 ADJUSTMENT TO COMPUTE TOTAL PS OBLIGATIONS
31 TOTAL PS OBLIGATIONS (LINE 27 + LINE 28 - LINE 29 + LINE 30) 32 ENTITLEMENT GRANT
33 PRIOR YEAR PROGRAM INCOME
34 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PS CAP
35 TOTAL SUBJECT TO PS CAP (SUM, LINES 32-34)
36 PERCENT FUNDS OBLIGATED FOR PS ACTIVITIES (LINE 31/LINE 35) PART V: PLANNING AND ADMINISTRATION (PA) CAP
37 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
38 PA UNLIQUIDATED OBLIGATIONS AT END OF CURRENT PROGRAM YEAR 39 PA UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS PROGRAM YEAR 40 ADJUSTMENT TO COMPUTE TOTAL PA OBLIGATIONS
41 TOTAL PA OBLIGATIONS (LINE 37 + LINE 38 - LINE 39 +LINE 40) 42 ENTITLEMENT GRANT
43 CURRENT YEAR PROGRAM INCOME
44 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PA CAP
45 TOTAL SUBJECT TO PA CAP (SUM, LINES 42-44)
46 PERCENT FUNDS OBLIGATED FOR PA ACTIVITIES (LINE 41/LINE 45)

MONTEREY , CA
2,025.00
131,846.17
248,442.00

0.00 0.00
1,210,353.18

0.00 0.00

0.00 0.00
1,590,641.35
486,411.69

0.00 486,411.69
39,350.26

0.00 0.00
525,761.95
1,064,879.40

0.00 0.00
486,411.69

0.00 486,411.69
100.00%
PY: PY: PY:

0.00 0.00

0.00%
179,808.00

0.00 0.00

0.00 179,808.00
248,442.00
1,188,047.20

0.00 1,436,489.20

12.52%
39,350.26

0.00 0.00

0.00 39,350.26
248,442.00
1,210,353.18

0.00 1,458,795.18

2.70%
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 37, Packet Page 197 PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 2
18:35
08-11-26
Program Year 2025

MONTEREY , CA
LINE 17 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 17 No data returned for this view. This might be because the applied filter excludes all data.

LINE 18 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 18 No data returned for this view. This might be because the applied filter excludes all data.

LINE 19 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 19 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number Activity Name MatrixCode
National
Objective Drawn Amount
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2023
2023
2023
2023
2024
2024
2024
2024
2024
2025
2025
2025
Total
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 4
4 4
4 4
4 4
4 4
2 2
2 731
731
731
732
732
732
733
733
733
736
736
736
737
737
737
730
730
730
738
738
738
734
734
734
735
735
735
706
706
706
706
717
717
717
717
717
740
740
740
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7086436
7130769
7158542
7182875
7057989
7086436
7130769
7158542
7182875
7130769
7158542
7182875
Community Human Services - Casa de Noche Buena
Community Human Services - Casa de Noche Buena
Community Human Services - Casa de Noche Buena
Community Human Services - Shuman HeartHouse
Community Human Services - Shuman HeartHouse
Community Human Services - Shuman HeartHouse
Community Human Services - Safe Place
Community Human Services - Safe Place
Community Human Services - Safe Place
Gathering for Women
Gathering for Women
Gathering for Women
Interim Inc.

Interim Inc.

Alliance on Aging
Alliance on Aging
Alliance on Aging
Meals on Wheels
Meals on Wheels
Meals on Wheels
ECHO Fair Housing
ECHO Fair Housing
ECHO Fair Housing
Food Bank for Monterey County
Food Bank for Monterey County
Food Bank for Monterey County
Acquisition & Rehabilitation
Acquisition & Rehabilitation
Acquisition & Rehabilitation
Acquisition & Rehabilitation
Acquisition and Rehabilitation
Acquisition and Rehabilitation
Acquisition and Rehabilitation
Acquisition and Rehabilitation
Acquisition and Rehabilitation
Housing Rehabilitation Activity Delivery Costs
Housing Rehabilitation Activity Delivery Costs
Housing Rehabilitation Activity Delivery Costs
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
05A
05A
05A
05A
05A
05A
05A
05J
05J
05J
05J
05W
05W
05W
05W
14G
14G
14G
14G
14G
14G
14G
14G
14G
14G
14H
14H
14H
14H
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
Matrix Code 03T
LMC
LMC
LMC
LMC
LMC
LMC
Matrix Code 05A
LMC
LMC
LMC
Matrix Code 05J
LMC
LMC
LMC
Matrix Code 05W
LMH
LMH
LMH
LMH
LMH
LMH
LMH
LMH
LMH
Matrix Code 14G
LMH
LMH
LMH
Matrix Code 14H
$10,000.00
$5,669.54
$4,330.46
$10,000.00
$5,494.21
$4,505.79
$11,378.79
$5,146.12
$3,475.09
$14,002.11
$5,973.20
$24.69
$16,662.74
$6,994.32
$1,342.94
$105,000.00
$4,683.56
$3,813.95
$1,502.49
$15,000.00
$7,500.00
$7,500.00
$40,000.00
$7,456.96
$3,662.41
$3,688.63
$14,808.00
$10,000.00
$5,000.00
$5,000.00
$20,000.00
$2,371.67
$21,334.71
$5,491.53
$1,972.00
$23,341.72
$4,070.51
$14,115.78
$4,537.70
$221,396.60
$298,632.22
$1,654.98
$4,310.27
$2,006.22
$7,971.47
$486,411.69
LINE 27 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 27 Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 38, Packet Page 198 PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 3
18:35
08-11-26
Program Year 2025

MONTEREY , CA
Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number
Activity to
prevent,
prepare for,
and respond
to
Coronavirus
Activity Name Grant Number Fund
Type
Matrix
Code
National
Objective
Drawn Amount
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
2025
Total
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 731
731
731
732
732
732
733
733
733
733
736
736
736
737
737
737
730
730
730
738
738
738
734
734
734
735
735
735
735
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7158542
7182875
7130789
7130789
7158542
7182875
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Community Human Services - Casa de Noche Buena
Community Human Services - Casa de Noche Buena
Community Human Services - Casa de Noche Buena
Community Human Services - Shuman HeartHouse
Community Human Services - Shuman HeartHouse
Community Human Services - Shuman HeartHouse
Community Human Services - Safe Place
Community Human Services - Safe Place
Community Human Services - Safe Place
Community Human Services - Safe Place
Gathering for Women
Gathering for Women
Gathering for Women
Interim Inc.

Interim Inc.

Alliance on Aging
Alliance on Aging
Alliance on Aging
Meals on Wheels
Meals on Wheels
Meals on Wheels
ECHO Fair Housing
ECHO Fair Housing
ECHO Fair Housing
Food Bank for Monterey County
Food Bank for Monterey County
Food Bank for Monterey County
Food Bank for Monterey County
Activity to prevent, prepare for, and respond to Coronavirus B21MC060004
B25MC060004
B25MC060004
B21MC060004
B25MC060004
B25MC060004
B21MC060004
B24MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B21MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B25MC060004
B24MC060004
B25MC060004
B25MC060004
B24MC060004
B25MC060004
B25MC060004
B25MC060004
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
PI
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
03T
05A
05A
05A
05A
05A
05A
05A
05J
05J
05J
05J
05W
05W
05W
05W
05W
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
Matrix Code 03T
LMC
LMC
LMC
LMC
LMC
LMC
Matrix Code 05A
LMC
LMC
LMC
Matrix Code 05J
LMC
LMC
LMC
LMC
Matrix Code 05W
$10,000.00
$5,669.54
$4,330.46
$10,000.00
$5,494.21
$4,505.79
$2,166.24
$9,212.55
$5,146.12
$3,475.09
$14,002.11
$5,973.20
$24.69
$16,662.74
$6,994.32
$1,342.94
$105,000.00
$4,683.56
$3,813.95
$1,502.49
$15,000.00
$7,500.00
$7,500.00
$40,000.00
$7,456.96
$3,662.41
$3,688.63
$14,808.00
$8,730.43
$1,269.57
$5,000.00
$5,000.00
$20,000.00
$179,808.00
$179,808.00
LINE 37 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 37 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number Activity Name MatrixCode
National
Objective Drawn Amount
2025
2025
2025
2025
Total
5 5
5 5
739
739
739
739
7086436
7130769
7158542
7182875
CDBG Program Administration
CDBG Program Administration
CDBG Program Administration
CDBG Program Administration
21A
21A
21A
21A
21A Matrix Code 21A
$6,484.97
$5,256.46
$15,349.20
$12,259.63
$39,350.26
$39,350.26
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 39, Packet Page 199 PR26 - CDBG-CV Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 1
11:53
08-12-26

MONTEREY , CA
Metrics
New Grantee (CV)
PART I: SUMMARY OF CDBG-CV RESOURCES
01 CDBG-CV GRANT
02 FUNDS RETURNED TO THE LINE-OF-CREDIT
03 FUNDS RETURNED TO THE LOCAL CDBG ACCOUNT
04 TOTAL CDBG-CV FUNDS AWARDED
PART II: SUMMARY OF CDBG-CV EXPENDITURES
05 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS AND PLANNING/ADMINISTRATION 06 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
07 DISBURSED IN IDIS FOR SECTION 108 REPAYMENTS
08 TOTAL EXPENDITURES (SUM, LINES 05 - 07)
09 UNEXPENDED BALANCE (LINE 04 - LINE8 )
PART III: LOWMOD BENEFIT FOR THE CDBG-CV GRANT
10 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
11 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
12 DISBURSED FOR OTHER LOW/MOD ACTIVITIES
13 TOTAL LOW/MOD CREDIT (SUM, LINES 10 - 12)
14 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 05)
15 PERCENT LOW/MOD CREDIT (LINE 13/LINE 14)
PART IV: PUBLIC SERVICE (PS) CALCULATIONS
16 DISBURSED IN IDIS FOR PUBLIC SERVICES
17 CDBG-CV GRANT
18 PERCENT OF FUNDS DISBURSED FOR PS ACTIVITIES (LINE 16/LINE 17) PART V: PLANNING AND ADMINISTRATION (PA) CAP
19 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
20 CDBG-CV GRANT
21 PERCENT OF FUNDS DISBURSED FOR PA ACTIVITIES (LINE 19/LINE 20)

MONTEREY , CA
653,923.00

0.00 0.00
653,923.00
617,386.00
36,537.00

0.00 653,923.00

0.00 0.00

0.00 617,386.00
617,386.00
617,386.00
100.00%
617,386.00
653,923.00

94.41%
36,537.00
653,923.00

5.59%
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 40, Packet Page 200 PR26 - CDBG-CV Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 2
11:53
08-12-26

MONTEREY , CA
LINE 10 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 10 No data returned for this view. This might be because the applied filter excludes all data.

LINE 11 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 11 No data returned for this view. This might be because the applied filter excludes all data.

LINE 12 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 12 Plan Year IDIS Project IDIS
Activity
Voucher
Number Activity Name MatrixCode
National
Objective Drawn Amount
2020
2023
Total
6 2
649
714
700
6429507
6492652
6513227
6927921
6891066
6927921
6931677
CV - Emergency Rental Assistance Program
CV - Emergency Rental Assistance Program
CV - Emergency Rental Assistance Program
CV - Food Bank
CV-Meals on Wheels
CV-Meals on Wheels
CV-Meals on Wheels
05Q
05Q
05Q
05W
05A
05A
05A
LMC
LMC
LMC
LMC
LMC
LMC
LMC
$122,276.00
$227,530.09
$167,579.91
$20,000.00
$40,000.00
$20,000.00
$20,000.00
$617,386.00
LINE 16 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 16 Plan Year IDIS Project IDIS
Activity
Voucher
Number Activity Name MatrixCode
National
Objective Drawn Amount
2020
2023
Total
6 2
649
714
700
6429507
6492652
6513227
6927921
6891066
6927921
6931677
CV - Emergency Rental Assistance Program
CV - Emergency Rental Assistance Program
CV - Emergency Rental Assistance Program
CV - Food Bank
CV-Meals on Wheels
CV-Meals on Wheels
CV-Meals on Wheels
05Q
05Q
05Q
05W
05A
05A
05A
LMC
LMC
LMC
LMC
LMC
LMC
LMC
$122,276.00
$227,530.09
$167,579.91
$20,000.00
$40,000.00
$20,000.00
$20,000.00
$617,386.00
LINE 19 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 19 Plan Year IDIS Project IDIS
Activity
Voucher
Number Activity Name MatrixCode
National
Objective Drawn Amount
2020
Total
7 648
715
6429507
6927921
CV - Administration
CDBG-CV Program Administration
21A
21A
$30,569.00
$5,968.00
$36,537.00
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 41, Packet Page 201 Attachment 2
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 42, Packet Page 202 housing being affordable to moderate-income households at "20 percent of AMI," which doesn't seem right. (20% of AMI would be an extremely low income level, not what you'd normally call "moderate" income.) These may simply be reporting or drafting errors, but before the CAPER is finalized and submitted to HUD, I hope city staff will take another careful look and reconcile them.

When we're talking about more than a million dollars in unused CDBG funds, I think it's reasonable for residents to ask questions.

Thank you!
~Deborah Roberts
Monterey Vista Resident ___________________ Deborah Roberts Monterey, California
[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.] Attachment 2
Council Regular Meeting, 9/15/2026, Item No. 13., Item Page 43, Packet Page 203 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director SUBJECT: Receive Project Update, Amend the Fiscal Year 2026-2027 City Budget (Resolution 26-090) to Authorize $1.5 Million from Low and Moderate Income Housing Asset Fund (LMIHAF) to MP Madison Street Associates, L.P. as a Loan to Construct an Affordable Housing Project Located at 587 and 593 Van Buren Street and 424 and 450 Madison Street, Adjacent Parking Lot and Area Behind the Building Located at 546 Dutra Street and Assign the Permanent Local Housing Allocation (PLHA) Loan to MP Madison Street Associates, L.P (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 project update, amend
Resolution 26-090 to authorize changes to the Fiscal Year 2026-2027 City Budget to authorize a $1.5 million construction loan from the Low and Moderate Income Housing Asset Fund (LMIHAF)to MP Madison Street Associates L.P. and assign the Permanent Local Housing Allocation (PLHA) Loan to MP
Madison Street Associates, L.P.

VALUE DRIVERS:

The City supports efforts and policies that provide equitable access to affordable housing in Monterey and the region. More specifically, the City:
• Supports efforts and policies that provide equitable
access to affordable housing in Monterey and the
region.
• Supports affordable housing through modern zoning
policies/ordinances, ADU policies, housing grants,
review of density requirements, and consideration of
City-owned sites for affordable housing.

POLICY IMPLICATIONS:

Affordable housing is an identified value driver and strategic priority: “Support affordable housing through modern zoning policies/ordinances, ADU policies, housing grants, review of density requirements, and consideration of City-owned sites for affordable housing.” The subject project is a 100% affordable Agenda Report Highlights
• The report asks the City
Council to receive an
update and amend the FY
2026-27 budget to
authorize a $1.5 million
LMIHAF construction loan
and to assign the existing
PLHA loan to MP Madison
Street Associates, L.P.
• Project financing includes
PLHA funds, REAP grant
funds, and the proposed
LMIHAF loan, all of which
are consistent with State
requirements and
appropriate for affordable
housing development.
• Approval enables the
project to move toward
construction in late 2026 or
early 2027, supports the
City’s strategic priority of
expanding affordable
housing, and ensures the
proper allocation of City
funds without relying on the
General Fund.

Date: 9/15/2026
Item No.: 14.

Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 1, Packet Page 204 №10/24
housing project located behind City Hall and will help the City achieve its affordable housing goals. The project is consistent with the City of Monterey General Plan land use designation and Downtown Specific Plan. The City has approved the project in compliance with SB 35, a State law establishing specific parameters for affordable housing projects.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: Yes.

FISCAL IMPLICATIONS:

The City Council entered into an Exclusive Negotiating Agreement with MidPen Housing Corporation (“MidPen”) for a 100% affordable housing project behind City Hall. The City and MidPen have been working together to obtain funding.

The City obtained $110,598.05 in Permanent Local Housing Allocation State funds for the project. The City disbursed this money to MidPen to contribute toward predevelopment costs.

The PLHA funds are considered a loan and will be repaid to the City under the approved agreement, as required by the State.

The City, with significant help from MidPen, also obtained a Regional Early Action Planning (REAP) grant from the Association of Monterey Bay Area Governments (AMBAG) for this project. Through this process, the City was awarded up to a maximum of $2,474,830in REAP

2.0 funds. Due to the State budget, AMBAG reduced the City’s grant to a maximum of $2,305,450 to cover predevelopment costs.

On October 15, 2024, the City Council also approved a $1,500,000 loan to support the project.

At the time of its approval, the report anticipated the loan to be sourced from the General Fund.

The City has successfully accumulated funds in the Low and Moderate Income Housing Asset Fund (LMIHAF) to pay for the loan instead of the General Fund. This agenda item appropriates these funds to the project. A summary of the project financing includes:

City of Monterey Direct Financial Contributions:

Contributions Amount
Contributions Permanent Local Housing Allocation (State Grant) $110,598.05 REAP Grant for Predevelopment Costs $2,474,830.00
Low & Moderate Income Asset Fund $1,500,000.00
Total $4,085,428.05
Note: The City allocated $220,964.20 of the REAP grant to pay for the City’s NEPA environmental review of the project. The direct grant value to MP Madison Street Associates L.P. was $2,253,865.80.

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 Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 2, Packet Page 205 №10/24
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 could fund the loan from the General Fund as originally anticipated, but this is not a recommended approach due to the City’s financial situation.

DISCUSSION:

For several years, affordable housing has remained one of the City Council and Monterey community’s top value drivers and strategic priorities. The Council was particularly interested in developing a 100% affordable housing project on City property. City staff has been working diligently to fulfill this goal.

Background
In January 2020, the City Council authorized staff to issue a Request for Proposals to develop City owned property for affordable housing. (Resolution 20-011) In July 2020, the City issued a Request for Proposals to develop City-owned sites for affordable housing. The City received proposals for four development sites. MidPen’s original proposal included developing the site behind City Hall and 417 Figueroa Street concurrently in order to achieve enough units for financing. As the project concept was downsized to only the site behind City Hall, MidPen evaluated multiple development scenarios.

On June 15, 2021, the City Council adopted Resolution 21-065 declaring the properties located at 587 and 593 Van Buren Street and 424 And 450 Madison Street to be exempt from the Surplus Land Act.

On July 19, 2022, the City Council approved entering into an Exclusive Negotiating Agreement (ENA) with MidPen Housing Corporation (“MidPen”) for the development of affordable housing.

This Agreement (Ag-11130) was effective August 15, 2022. It has been amended five times and the negotiating period extended to April 12, 2027. The purpose of an ENA was to have a specific, limited period of time to negotiate mutually acceptable governing documents for the potential disposition of the Property and undertaking of the construction of the project on the property by MidPen Housing.

On October 15, 2024, the City Council approved Resolution 24-164 approving the Affordable Housing and Property Disposition Agreement and a Ground Lease between MidPen entity MP Madison Street Associates, L.P. and the City of Monterey. Resolution 24-164 also authorized a $1.5 million loan and delegated authority to the City Manager to finalize the loan terms and documents. Since that time, the developer has been searching for additional funding sources.

Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 3, Packet Page 206 №10/24
Project financing is solidifying, and MidPen intends to start construction in late 2026 or early 2027.

Analysis
The City has adequate funds in its Low and Moderate Income Housing Asset Fund to fund the $1.5 million loan for construction of the affordable housing project at 587 and 593 Van Buren Street and 424 and 450 Madison Street, adjacent parking lot and area behind the building located at 546 Dutra Street. Additionally, this is an appropriate use of the LMIHAF funds pursuant to State law.

Staff is also recommending the previous Permanent Local Housing Allocation (PLHA) Loan of $110,598.05 be assigned to MP Madison Street Associates, L.P., the newly created limited partnership for the project.

In conclusion, staff recommends the City Council adopt a resolution amending the fiscal year 2026-2027 City Budget (Resolution 26-090) and authorize $1.5 million construction loan to MP Madison Street Associates, L.P and assign the Permanent Local Housing Allocation (PLHA) Loan of $110,598.05 to MP Madison Street Associates, L.P.

KC
Attachments: 1. Resolution

2. Mid Pen Housing Project Update
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, 9/15/2026, Item No. 14., Item Page 4, Packet Page 207 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24
AUTHORIZING AMENDING THE FISCAL YEAR 2026-2027 CITY BUDGET (RESOLUTION 26-090) AND AUTHORIZING $1.5 MILLION LOAN FROM THE LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) TO MP MADISON STREET ASSOCIATES, L.P.

AS A LOAN TO CONSTRUCT AN AFFORDABLE HOUSING PROJECT LOCATED AT 587 AND 593 VAN BUREN STREET AND 424 AND 450 MADISON STREET, ADJACENT PARKING LOT, AND AREA BEHIND THE BUILDING LOCATED AT 546 DUTRA STREET

AND ASSIGN THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) LOAN TO MP MADISON STREET ASSOCIATES, L.P.

WHEREAS, in January 2020, the City Council authorized staff to issue a Request for Proposals to develop City owned property for affordable housing. (Resolution 20-011); WHEREAS, in July 2020, the City issued a Request for Proposals to develop City owned sites for affordable housing and the City received proposals for four development sites; WHEREAS, on June 15, 2021, the City Council adopted Resolution 21-065 declaring the properties located at 587 and 593 Van Buren Street and 424 And 450 Madison Street to be exempt from the Surplus Land Act;
WHEREAS, on July 19, 2022, the City Council approved entering into an Exclusive Negotiating Agreement (ENA) with MidPen Housing Corporation (“MidPen”) for the development of affordable housing. This Agreement (Ag-11130) was effective August 15, 2022. It has been amended five times and the negotiating period extended to April 12, 2027. The purpose of an ENA was to have a specific, limited period of time to negotiate mutually acceptable governing documents for the potential disposition of the Property and undertaking of the construction of the project on the property by MidPen Housing;
WHEREAS, on October 15, 2026, the City Council approved an Affordable Housing and Property Disposition Agreement and Ground Lease that authorized the City manager to negotiate and execute the final local documents;
WHEREAS, the City proposes to authorize $1.5 million from the Low and Moderate Income Housing Asset Fund (LMIHAF) to construct an affordable housing project; WHEREAS, the City proposes to assign the $110.598.05 Permanent Local Housing Allocation (PLHA) loan to MP Madison Street Associates, L.P., the newly created limited partnership for the project; 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 Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 5, Packet Page 208 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, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby amends the Fiscal Year 2026-2027 City Budget (Resolution 26- 090) and authorizes $1.5 loan from the Low and Moderate Income Housing Asset Fund (LMIHAF) to construct an affordable housing project located at 587 and 593 Van Buren Street and 424 and 450 Madison Street, adjacent parking lot and area behind the building located at 546 Dutra Street and to assign the $110.598.05 Permanent Local Housing Allocation (PLHA) loan to MP Madison Street Associates, L.P.,
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this __th 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, 9/15/2026, Item No. 14., Item Page 6, Packet Page 209 Madison Street
Construction Loan Assignment
Joanna Carman, Gina Harris, Carlos Jurado
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 7, Packet Page 210 MidPen’s mission is to
provide safe, affordable housing of high quality
to those in need
and to establish stability and opportunity in the
lives of our residents;
and foster diverse communities that allow
people from all ethnic, social and economic
backgrounds to live in dignity, harmony and
mutual respect.

MidPen Housing
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 8, Packet Page 211 Our Properties
The Farm, Soquel Parkhurst Terrace, Aptos
Cynara Court, Castroville Van Buren Senior Housing, Monterey ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 9, Packet Page 212 Our Team
Carlos Jurado
Sr Associate Project
Manager
Gina Harris
Project Manager
Joanna Carman
SVP, Co-Head of Housing
Development
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 10, Packet Page 213 Design Team
Justin Pauly, AIA
Justin Pauly Architects
Principal
Paul Davis, AIA
The Paul Davis Partnership, LLP
Partner
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 11, Packet Page 214 Project Re Property Management -Design Update
MidPen’s approach to property management is based on three core values:

Being Good Neighbors:

We strive to ensure that every community we manage benefits both our residents as well as the surrounding neighborhood.

Enhancing Resident’s Lives:

Our staff responds to individual and community needs with a commitment to customer service.

Sustainable Operations and Maintenance:

Retrofits to improve building performance, water conservation, and indoor air quality; using drought resistant landscaping and green cleaning products; and training on environmentally-friendly practices.

ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 12, Packet Page 215 Project Re-Design Update
Youth Programs:

Free afterschool, summer and leadership programs for youth prepare students for academic success.

Adult Programs:

Financial literacy and vocational development, including career counseling and ESL Classes improve job retention and increase household income.

Supportive Services:

Partnerships with local agencies to provide service plans for supportive populations, including residents struggling with homelessness or mental, physical or intellectual disabilities.

Resident Services
Services programming is tailored to fit each community and can include:

ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 13, Packet Page 216 Project Re Current Site-Design Update
View from the Corner of Madison and Van Buren
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 14, Packet Page 217 Project Overview
 42 units of 100% affordable housing for families
 Affordable housing to serve households earning 30% - 60% of Area Median Income, or $32,850 - $116,400 based on household size  Current affordable rent ranges:
• Approx. $683-$1,504 for a studio
• Approx. $720-$1,600 for a 1-bedroom unit
• Approx. $838-$1,894 for a 2-bedroom unit
• Approx. $928-$2,148 for a 3-bedroom unit
 11 units will be set aside for families with school-age children identified as homeless under the McKinney-Vento Homeless Assistance Act  Highly ideal transit-oriented location, near public transportation, schools, and jobs
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 15, Packet Page 218 Where We’ve Been
Submitted for SB35
Streamlined Entitlements
November 2024
After concluding Tribal
Consultation, MidPen submitted for
entitlements using the new SB35
streamlining bill for affordable
housing projects
Construction Kick-Off
Fall 2026
Blach Construction to begin
construction of the new
parking lot, public
playground, and housing
Madison
Street ENA
Executed
August 2022
City and MidPen
move forward
with Madison
Street
Council Feedback on
Updated Preliminary
Development Package
August 2023
City Council and the community
gave feedback during August
30th Council Meeting
Entitlements and
Financing
November 2024-Present
Entitled in Spring, 2026.

MidPen secured necessary
funding to begin construction
by Fall 2026
You
are
here!
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 16, Packet Page 219 Entitled Site Plan
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 17, Packet Page 220 Renderings
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 18, Packet Page 221 Upcoming Milestones
Expected Date Milestone
Sept/Oct- 2026 DDA & Ground Lease Signed, Construction Closing Occurs Sept/Oct- 2026 Construction Begins
Oct - 2027 Projected Application Period Start
Jan - 2028 Construction Completion
Apr - 2028 100% Occupancy Achieved
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 19, Packet Page 222  Interest List: Marketing period begins. Link on MidPen website for folks interested in getting notified when application period opens.  Applications Open: Prospective residents submit applications by the stated deadline.
 MPUSD Referrals: Homeless families referred through partnership with MPUSD.
 Lottery: Applications are randomized and prioritized according to applicable preferences.
 Eligibility Screening: Selected applicants are contacted and screened for income, household size, preferences, and other program requirements.  Waitlist: Remaining applicants added to an interest list if units become available.
 Ongoing Leasing: Vacancies are filled from the interest/waitlist through the same approval process.

Leasing Process
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 20, Packet Page 223 Thank you!
Questions?
ATTACHMENT 2
Council Regular Meeting, 9/15/2026, Item No. 14., Item Page 21, Packet Page 224

Monterey City CouncilSeptember 15, 2026

Monterey City Council
September 15, 2026