Pacific Grove City Council
February 2, 2022

CITY COUNCIL

CLOSED SESSION MEETING AGENDA
Wednesday, February 2, 2022, 5:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH THE GOVERNOR’S

EXECUTIVE ORDERS ALLOWING FOR A DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT.

Join the Zoom Meeting to participate live at:
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877 853 5247 (Toll Free)
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AGENDA

CALL TO ORDER

APPROVAL OF AGENDA

CLOSED SESSION

PUBLIC COMMENT ON CLOSED SESSION MATTERS
Comments from the public will not receive Council action. Comments must deal with matters on the Closed Session agenda and will be limited to three minutes
A. Conference with Labor Negotiators (Government Code Section 54957.6) City Negotiators: Ben Harvey, City Manager, Tori Hannah, Assistant City Manager/Administrative Services Director, Leticia Livian, Human Resources Director, and Donna Williams, Liebert Cassidy Whitmore, LLP
Employee Organization: Police Officers Association

ADJOURNMENT
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CITY COUNCIL

AMENDED REGULAR MEETING AGENDA
Wednesday, February 2, 2022, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA The Council will not begin consideration of any item on this agenda later than 10:00 p.m. unless such consideration is approved. Any items on this agenda not considered this evening will be continued to a future meeting.

Copies of the agenda packet are available for review at the Pacific Grove Library, in the Finance Department, and electronically at www.cityofpacificgrove.org/agendas. The most effective method of communication with the City Council is by sending an email to [email protected]. In order to allow the City Council adequate time to review communication related to an agenda item, it is recommended that the communication be sent no later than 9:00 AM on the day prior to the City Council meeting.

THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH THE GOVERNOR’S EXECUTIVE ORDERS ALLOWING FOR A DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT.

JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://us02web.zoom.us/j/209579290
To participate telephonically, call any number below:
888 788 0099 US (Toll-free)
877 853 5247 US (Toll-free)
669 900 9128
669 219 2599
Webinar ID: 209 579 290#
If prompted to enter a participant ID, press #.

Help Line 831-648-3128

MEETING INSTRUCTIONS
The public may also view the meeting on the Peninsula Channel 25.

AGENDA

CALL TO ORDER
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A. Remote Teleconference - AB 361 PG 9
Reference: Sandra Kandell, City Clerk
Recommended Action: Ratify Resolution No. 21-029 Emergency Teleconferencing authorizing remote teleconference meetings of all City legislative bodies for the following 30 days in accord with the Ralph M. Brown Act.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
PLEDGE OF ALLEGIANCE: Mayor Peake

1. APPROVAL OF AGENDA

2. PRESENTATIONS
A. Mayor's Proclamation Recognizing Moe Ammar's 29 Years of Service on the Pacific Grove Chamber of Commerce PG 15
Reference: Bill Peake, Mayor
Recommended Action: Receive proclamation.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Report on Closed Session by City Attorney
B. Other

4. GENERAL PUBLIC COMMENT
General Public Comment must deal with matters subject to the jurisdiction of the City and the Council that are not on the Regular Agenda. This is the appropriate place to comment as to items on the Consent Agenda, only if you do not wish to have the item pulled for individual consideration by the Council. Comments from the public will be limited to three minutes and will not receive Council action. Comments regarding items on the Regular Agenda shall be heard prior to Council’s consideration of such items at the time such items are called. Whenever possible, written correspondence should be submitted to the Council in advance of the meeting, to provide adequate time for its consideration.

CONSENT AGENDA
The Consent Agenda deals with routine and non-controversial matters, and may include action on resolutions, ordinances, or other public hearings for which testimony is not anticipated. The vote on the Consent Agenda shall apply to each item that has not been removed. Any member of Council, staff, or the public may remove an item from the Consent Agenda for individual consideration. When items are pulled for discussion, they will be automatically placed at the end of their respective section within the Regular Agenda. One motion shall be made to adopt all non-removed items on the Consent Agenda.

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5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business

6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Adoption of a Resolution Approving the Property Tax Transfer Agreement with the County of Monterey Relating to the Mission Linen Property Annexation PG 17 Reference: Alyson Hunter, AICP, CDD Director
Recommended Action: Adopt the Resolution and direct staff to submit to the Monterey County Local Agency Formation Commission (LAFCO) in support of the City's application to annex the Mission Linen property located at 801 Sunset Drive.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. City Manager Performance Evaluation Policy 000-27 PG 37 Reference: Bill Peake, Mayor
Recommended Action: Adopt a Resolution to create City Manager Performance Evaluation Policy 000-27.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

7. ORDINANCES
Items pulled from this section will be placed under 11. Public Hearings

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Second Quarter Treasurer’s Quarterly Report – Fiscal Year 2021-22 PG 43 Reference: Tori Hannah, Administrative Services Director/Assistant City Manager Recommended Action: Receive the Report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Second Quarter Budget Report PG 47
Reference: Tori Hannah, Administrative Services Director/Assistant City Manager Recommended Action: Receive the report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
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C. Second Quarter Workers' Compensation Report PG 55
Reference: Audrey Cray, Management Analyst
Recommended Action: Receive the report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
D. Second Quarter Purchase Order Report PG 59
Reference: Jennifer Pope, Management Analyst
Recommended Action: Receive the Second Quarter Purchase Order Report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
E. Association of Monterey Bay Area Governments Minutes of December 8, 2021 and January 5, 2022 PG 65
Reference: Jenny McAdams, Mayor Pro Tempore
Recommended Action: Receive minutes.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Monterey Regional Waste Management District Appointment PG 81 Reference: Bill Peake, Mayor
Recommended Action: Approve appointment of Mayor Peake to Monterey Regional Waste Management District Joint Powers Authority (MRWMD) Board of Directors serving until December 31, 2022.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Mary Ann Whitten Appointment to Library Board PG 83
Reference: Bill Peake, Mayor
Recommended Action: Approve appointment of Mary Ann Whitten to Library Board for a term ending January 31, 2026.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 13. New Business PG CC 2/2/22
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A. September Recreation Board Minutes PG 85
Reference: Daniel Gho, Public Works Director / Deputy City Manager Recommended Action: Receive September 2021 Recreation Board Meeting Minutes CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

REGULAR AGENDA

11. PUBLIC HEARINGS
For public hearings involving a quasi-judicial determination by the Council, the proponent of an item may be given 10 minutes to speak and others in support of the proponent’s position may be given three minutes each. A designated spokesperson for opposition to the item may be given 10 minutes to speak and all others in opposition may be given three minutes each. Very brief rebuttal and surrebuttal may be allowed in the sole discretion of the Council. In public hearings not involving a quasi-judicial determination by the Council, all persons may be given three minutes to speak on the matter. Public hearings on non-controversial matters or for which testimony is not anticipated may be placed on the Consent Agenda, but shall be removed if any person requests a staff presentation or wishes to be heard on the matter.

A. DRAFT Adoption of a Resolution Conditionally Authorizing the Vacation of Excess Right-of-Way Located on Sloat Ave. This public hearing will be opened, public comment shall begin at the February 2, 2022, City Council meeting, but the hearing will then be continued to the February 16, 2022 City Council meeting; the public hearing shall remain open -- but NOTE -- individual members of the public may choose to speak either at the February 2, 2022 meeting or the February 16, 2022 meeting, but no person shall be allowed to speak at more than one hearing date. PG 87 Reference: Alyson Hunter, AICP, CDD Director
Recommended Action: Open the public hearing and continue the item to the February 16, 2022, meeting.

CEQA: Environmental Impact Report
B. Approval of Amendments to PGMC 23.80 - Accessory Dwelling Units (ADU) PG 89 Reference: Alyson Hunter, AICP, CDD Director
Recommended Action: Approve first reading of an ordinance to amendment PGMC 23.80 - Accessory Dwelling Units (ADUs) as recommended by the Planning Commission, and direct publication of a summary as approved by the City Attorney..

CEQA: Statutory Exemption, CEQA Guidelines 15282(h) - Adoption Regarding Second Units in a Single or Multi Family Residential Zone

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS
A. Promissory Agreement for Payment of Water Entitlement for the PG Hotel, formerly known as the Hotel Durrell This item was continued from the January 19, 2022 meeting PG 103
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Reference: Laurel O'Halloran, Associate Planner
Recommended Action: Consider a promissory agreement for water entitlement for the Pacific Grove (PG) Hotel, formerly known as the Hotel Durrell, to be located at 157 Grand Avenue (APN 006-173-002)
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. CONCEPT REVIEW: ARPA Funding Public Outreach This item was continued from the January 19, 2022 meeting PG 143
Reference: Ben Harvey, City Manager
Recommended Action: Review proposed public outreach approach and provide direction to staff.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
C. Leadership - Mastering Your Role as an Elected Official This item was continued from the January 19, 2022 meeting PG 147
Reference: Bill Peake, Mayor
Recommended Action: Receive report and discuss.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
D. Council Liaison Role This item was continued from the January 19, 2022 meeting PG 149 Reference: Nick Smith, Councilmember
Recommended Action: Review role and provide staff direction.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

14. FULL PRESENTATIONS

15. CLOSED SESSION

ADJOURNMENT
NOTICE OF ADA COMPLIANCE: Pursuant to Title II of the Americans with Disabilities Act (Codified At 42 United States Code Section 12101 and 28 Code of Federal Regulations Part 35), and Section 504 of the Rehabilitation Act of 1973, the City of Pacific Grove does not discriminate on the basis of race, color, religion, national origin, ancestry, sex, disability, age or sexual orientation in the provision of any services, programs, or activities. The City of Pacific Grove does not discriminate against persons with disabilities. City Hall is an accessible facility. A limited number of assisted listening devices will be available at this meeting. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting or provide the requested agenda format.

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Agenda No. A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk
MEETING DATE: February 2, 2022
SUBJECT: Remote Teleconference - AB 361
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Ratify Resolution No. 21-029 Emergency Teleconferencing authorizing remote teleconference meetings of all City legislative bodies for the following 30 days in accord with the Ralph M. Brown Act.

DISCUSSION
Governor Newsom signed AB 361 into law on September 16, 2021 to become effective on October 1, 2021. AB 361 extends the provisions of the Governor’s Executive Order N-29-20 and Executive Order N-35-20 and is effective until January 1, 2024. AB 361 amends sections of the Brown Act to allow legislative bodies to continue to hold teleconference meetings during a state of emergency if the legislative body finds that as a result of the proclaimed state of emergency, meeting in person would present imminent risks to the health or safety of attendees.

Assembly Bill 361 requires the City within 30 days of holding a virtual meeting for the first time, and every 30 days thereafter, to make findings ratifying the state of emergency.

The exact language of the Bill is as follows:

If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A) The legislative body has reconsidered the circumstances of the state of emergency. (B) Any of the following circumstances exist:
(i) The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii) State or local officials continue to impose or recommend measures to promote social distancing.

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Teleconference Meetings of All City Legislative Bodies for the Following 30 days in Accord wth the Ralph M. Brown Act. Resolution No. 21-029 has effect for only 30 days. The Council has ratified that resolution each month since. The Council must now renew the effect of the resolution by ratifying it again or adopting another.

This item will be added to the Council's first meeting of the month as the first item of business.

OPTIONS
Take no action and resume in person meetings.

FINANCIAL IMPACT:

There is no fiscal impact.

GOAL ALIGNMENT: Transparency, Accountability and Communication: Implement programs, processes, revisions, and training to improve and advance the City's efforts.

Attachments
Reso 21-029
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1 RESOLUTION NO. 21-029

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF PACIFIC GROVE PROCLAIMING A LOCAL EMERGENCY, RATIFYING THE STATE OF EMERGENCY PROCLAIMED ON MARCH 4, 2020,

AND AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF ALL CITY LEGISLATIVE BODIES FOR THE FOLLOWING 30 DAYS
IN ACCORD WITH THE RALPH M. BROWN ACT
FACTS

1. The City of Pacific Grove (City) is a charter city and public entity established under the laws of the State of California.

2. The City is committed to preserving and nurturing public access and participation in meetings of the City Council and all its Boards and Commissions; and

3. All meetings of City legislative bodies are open and public, as required by the Ralph M.

Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and observe City legislative bodies conduct business; and

4. The Brown Act, Government Code section 54953(e), enables remote teleconferencing participation in meetings by members of a legislative body, without strict compliance with requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and

5. One required condition is that a state of emergency has been declared by the Governor of the State of California pursuant to Government Code section 8625, proclaiming existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and

6. A proclamation is made that there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the City’s jurisdiction, caused by natural, technological, or human-caused disasters; and

7. State or local officials have imposed or recommended measures to promote social distancing, or that having the legislative body meet in person would present imminent risks to the health and safety of attendees; and

8. The City Council affirms these conditions now exist in the City. Specifically, on March 4, 2020, the Governor proclaimed a State of Emergency to exist as a result of the threat of COVID-19. That Proclamation has not been terminated by either the Governor or the Legislature pursuant to Government Code section 8629; and DocuSign Envelope ID: 8F875A48-8FB2-4F57-8F21-7F649254EB77 PG CC 2/2/22
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2 9. Despite sustained efforts to remedy this circumstance, the City determines that meeting in person poses an imminent risk to health and safety of attendees due to the COVID-19 virus and its variants; and

10. The City Council finds the emergency created by the COVID-19 virus and its variants has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to proclaim a local emergency and ratify the proclamation of state of emergency by the Governor and similar local health orders that require social distancing; and

11. As a consequence of the local emergency, the City Council determines that all legislative bodies of the City of Pacific Grove are required to conduct their meetings without full compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that those City legislative bodies shall comply with the requirements to provide public access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and

12. Each City legislative body shall continue to conduct meetings with public access available via call-in or internet-based service options and the public shall be allowed to address the legislative body directly in real time; and

13. This Resolution shall authorize the City Manager to establish and maintain platforms necessary for each City legislative body to hold teleconference meetings and provide an avenue for real-time public comments for such meetings; and

14. The City Council finds the introduction and adoption of this resolution is not subject to the California Environmental Quality Act (CEQA) as the activity is not a project as defined in Section 15378) of the CEQA Guidelines.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE:

SECTION 1. RECITALS. The foregoing Findings are true and correct and are adopted by the City Council as though set forth in full.

SECTION 2. PROCLAMATION OF LOCAL EMERGENCY. The Council hereby proclaims that a local emergency now exists throughout the City, and meeting in person would present imminent risk as a result of the COVID-19 virus and its variants.

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3 SECTION 3. RATIFICATION OF PROCLAMATION OF A STATE OF EMERGENCY. The Council hereby ratifies the Governor of the State of California’s Proclamation of State of Emergency, effective as of its issuance date of March 4, 2020.

SECTION 4. REMOTE TELECONFERENCE MEETINGS. The City Manager and legislative bodies of City of Pacific Grove are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

SECTION 5. EFFECTIVE DATE OF RESOLUTION. This Resolution shall take effect immediately upon its adoption and shall be remain in effect for a period of 30 days, or until such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which City legislative bodies may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 6
th day of October 2021, by the following vote:

AYES: Mayor Peake, Mayor Pro Tem Smith, Councilmembers Amelio, Coletti, McAdams, Poduri, and Tomlinson.

NOES: None.

ABSENT: None.

APPROVED:
_______________________
BILL PEAKE, Mayor
ATTEST:

DATED: ______________________
______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
______________________________
DAVID C. LAREDO, City Attorney
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Agenda No. 2 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: February 2, 2022
SUBJECT: Mayor's Proclamation Recognizing Moe Ammar's 29 Years of Service on the Pacific Grove Chamber of Commerce
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive Proclamation.

Attachments
Proclamation
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Mayor’s Proclamation
Recognizing Moe Ammar’s 29 Years of Service
On the Pacific Grove Chamber of Commerce
Whereas, Moe Ammar first came to Pacific Grove as a honeymooner and raised his family in Pacific Grove since 1986; and
Whereas, Moe Ammar has faithfully served on the Pacific Grove Chamber of Commerce for 29 years, recently retiring as President; and Whereas, Moe Ammar has provided guidance, leadership, and financial stewardship that helped build a strong and vibrant Chamber of Commerce; and Whereas, Moe Ammar’s dedication and enthusiasm for the community has been lasting and without parallel; he was awarded the “Key to PG” by the city council in 2000; and
Whereas, Moe Ammar has made numerous contributions to the community and city government over the years including forming the Business Improvement District and Hospitality Improvement District, establishing the Tourist Information Center, attracting new businesses to Pacific Grove, serving on the Economic Development Committee for 27 years, and building better relations between residents and the business community.

Now, be it resolved that I, Bill Peake, as Mayor of the City of Pacific Grove in the State of California am pleased to recognize Moe Ammar for outstanding dedication and service to Pacific Grove.
____________________________
Bill Peake, Mayor
City of Pacific Grove
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Agenda No. 6 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Alyson Hunter, AICP, CDD Director
MEETING DATE: February 2, 2022
SUBJECT: Adoption of a Resolution Approving the Property Tax Transfer Agreement with the County of Monterey Relating to the Mission Linen Property Annexation CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Adopt the Resolution and direct staff to submit to the Monterey County Local Agency Formation Commission (LAFCO) in support of the City's application to annex the Mission Linen property located at 801 Sunset Drive.

DISCUSSION
On April 21, 2021, the City Council adopted Resolution 21-006 (attached) authorizing staff to file an application for the annexation of the Mission Linen property to the Local Agency Formation Commission (LAFCO). City staff prepared and submitted an application which was accepted by LAFCO and found complete on June 11, 2021. The final item needed by LAFCO in order to schedule the item before its board for action is the Property Tax Transfer Agreement adopted by Resolution by both the County Board of Supervisors and the City Council. The County held a public hearing and adopted its Board Order on November 16, 2021. The complete Board of Supervisor's agenda item can be viewed at this link.

The City must now adopt the same Property Tax Transfer Agreement by Resolution. The terms and details of the City's draft Resolution (attached) are the same as the County's.

OPTIONS
The City Council could decide not to pursue the annexation of the property and direct staff to withdraw the application from the LAFCO process.

FINANCIAL IMPACT:

As a result of the annexation, The City will receive 6.38% of the property taxes received on the current assessment; and 9.77% on any incremental tax or future increases above the originally assessed value.

GOAL ALIGNMENT: Not Applicable.

Attachments
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Attachments
Resolution 21-006
Draft Resolution
County's Executed Resolution
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RESOLUTION 22-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PACIFIC GROVE APPROVING PROPERTY TAX TRANSFER FOR THE
PROPOSED “MISSION LINEN REORGANIZATION” INVOLVING ANNEXATION OF 2.9 ACRES TO THE CITY OF PACIFIC GROVE AND DETACHMENT FROM THE MONTEREY COUNTY RESOURCE CONSERVATION DISTRICT;
SUBJECT PROPERTY IS LOCATED AT 801 SUNSET DRIVE (APN 007-101-0036) Facts

1. The City of Pacific Grove (City) desires to annex the subject property commonly known as the “Mission Linen” site located at 801 Sunset Drive (APN 007-101-036); and

2. Pursuant to Resolution 21-006, the City submitted an application to the Local Agency Formation Commission (LAFCO) for the “Mission LinenReorganization” involving annexation of 2.99 acres to the City and detachment from the Pebble BeachCommunity Services District (PBCSD); and

3. The City and PBCSD have negotiated a Memorandum of Understanding whereby PBCSD willretain wastewater services for the property and shall accordingly retain a portion (0.02 %) of the County tax allocation; solid waste and fire protection services currently provided to the property by PBCSD would, upon annexation, be provided by the city which shall retain 0.18% of the County tax allocation currently allocated to PBCSD; and

4. Pursuant to Revenue and Taxation Code Section 99(b) (6), the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization untilan exchange of property tax revenue is negotiated; and

5. The Monterey County Board of Supervisors adopted as policy a set of formulas to be used forall jurisdictional changes of organization on April 29, 1980 (Resolution #80-249); and

6. The current distribution of property taxes within tax rate area 102-003 is as follows:

23.11% - Monterey County’s Share

0.21% - Affected District’s Share

76.68% - Non-affected Districts’ Share
100.00% - Total; and

7. The Revenue and Taxation Code Section 99 (Senate Bill 180, Chapter 801) requires that non-affected local agencies percentage share will remain constant; and

8. The County of Monterey and the City wish to agree to a fair share distributionof remaining property tax revenues; and
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9. The County of Monterey has realized a 41% reduction and the City has realized a 19% reduction in property tax revenue imposed by the State under Senate Bill 617, Chapter 699, Statutes 1992;and

10. Each year thereafter both the County and the City continue to shift revenues to the EducationRevenue Augmentation Fund (ERAF); and

11. The County of Monterey Board of Supervisors, at its meeting on November 16, 2021, adopted Resolution 21-429 ratifying the following formulas for the transfer of property tax; and

12. Upon adoption of this Resolution, staff will submit the executed document to the Monterey County LAFCO in order to complete the necessary documents to proceed with the application for annexation; and
This annexation is exempt from environmental review pursuant to CEQA

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE:

The City of Pacific Grove does hereby agree to the following formulas for property tax base and increment distribution within Tax Rate Area 102-003 after change of organization/reorganization.

DISTRIBUTION OF PROPERTY TAX BASE:

Property tax base is the property tax revenue that is available prior to change of organization/reorganization.

Prior to Change or Organization/Reorganization:
(City of Pacific Grove, Tax Rate Area 004-000)
Current Ratio
City of Pacific Grove - 19.76% 45.52%
Monterey County - 23.65% 54.48%
Within Tax Rate Area 102-003, Monterey County’s share of property tax reduced by 41%, an amount equal to 9.48%. After this reduction, the total property tax available for distribution in the proposal area is equal to 13.63%.

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After Change of Organization/Reorganization:
(New Tax Rate Area – To Be Assigned)

13.63 % - Property Tax Available for Distribution

1. City of Pacific Grove’s Share of Total Property Taxes Collected:

13.63% - Property Tax Available for Distribution

45.52% - City of Pacific Grove’s Current Ratio
= 6.20%
+ 0.18% - Pebble Beach Community Services District Share to City of Pacific Grove = 6.38

2. Monterey County’s Share of Total Property Taxes Collected:

13.63% - Property Tax Available for Distribution

54.48% - Monterey County’s Current Ratio

7.43%
plus

9.48% - The Adjustment for State Tax Shift
= 16.91% Total County share of property tax base Formula for property tax base allocation to the City of Pacific Grove
City of Pacific Grove’s Property Tax Revenue =
Total Property Taxes Collected X 6.38% XFull Months Remaining in Tax Year Divided by 12.

DISTRIBUTION OF PROPERTY TAX INCREMENT:

Property tax increment is the increase in property tax revenue above the base resulting from the increase inassessed value of property after the change in organization/reorganization.

The formula recognizes that all future growth will be subject to a shift to ERAF in the amount of 41% forthe County and 19% for the City of Pacific Grove. After the shift, the County and the City will be in the same relative position as before dividing the remainder.

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Prior to Change of Organization/Reorganization:
(City of Pacific Grove, Tax Rate Area 004-000)
Current
Rate
ERAF
Adjustment
= Resulting
Rate
Resulting
Ratio
Pacific Grove 19.76% 81.0% 23.51% 41.5%
Monterey County 23.65% 59.0% 33.13% 58.5%
Based on existing Tax Rate Area 102-003, Monterey County’s share of property tax is 23.11% The total property tax available for distribution in the proposal area is 23.11%. The new Resulting Ratios calculatedabove are applied to the increment.

After Change of Organization/Reorganization
(New Tax Rate Area to be Assigned)

23.11% = Property Tax Available for Distribution

1. City of Pacific Grove’s Share of Property Tax Increment:

23.11% - Property Tax Available for Distribution

41.5% - City of Pacific Grove’s New Resulting Ratio
= 9.59%
+ 0.18% - Pebble Beach Community Services District Share = 9.77%

2. Monterey County’s Share of Property Tax Increment:

23.11% - Property Tax Available for Distribution

58.5% - Monterey County’s New Resulting Ratio
= 13.52%
Formula for property tax increment to the City of Pacific Grove from Tax Rate Area 004-000 after changeof organization/reorganization:

City of Pacific Grove’s Property Tax Increment =
Total Property Tax Increment Collected X 9.77% X
Full Months Remaining in Tax Year Dividend by 12.

PASSED AND ADOPTED this day of , 2022, by the following vote, to-wit:

AYES:

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NOES:

ABSENT: APPROVED:
_____________________________
BILL PEAKE, Mayor
ATTEST:

DATE: _____________________
____________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
______________________________
DAVID C. LAREDO, City Attorney
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Legistar File ID No. 21-923 Agenda Item No. 41

Before the Board of Supervisors in and for the
County of Monterey, State of California
Adopt Resolution No.: 21-429
Approve Property Tax Transfer for the proposed “Mission Linen ) Reorganization” involving annexation of 2.9 acres to the City of ) Pacific Grove and detachment from the Monterey County ) Resource Conservation District; subject property is Located at ) 801 Sunset Dt, Assessor’s Parcel Number 007-101-0036………… ) WHEREAS, the Revenue and Taxation Code Section 99 (Assembly Bill 8, Chapter 282) Statutes 1979, as amended by Senate Bill 180 (Chapter 801) provides for the Monterey County Board of Supervisors to determine an appropriate tax transfer for all jurisdictional changes of organization occurring within Monterey County and for the city council of any affected City to concur on the transfer prior to the proposal being considered by the Local Agency Formation Commission (LAFCO); and WHEREAS, the City of Pacific Grove has submitted an application to LAFCO for the “Mission Linen Reorganization” involving annexation of 2.99 acres to the City and detachment from the Pebble Beach Community Services District (PBCSD); and
WHEREAS, the City and PBCSD have negotiated a Memorandum of Understanding whereby PBCSD will retain wastewater services for the property and shall accordingly retain a portion ( 0.02 %) of the County tax allocation; solid waste and fire protection services currently provided to the property by PBCSD would, upon annexation, be provided by the city which shall retain 0.18% of the County tax allocation currently allocated to PBCSD; and
WHEREAS, pursuant to Revenue and Taxation Code Section 99(b) (6), the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization until an exchange of property tax revenue is negotiated; and WHEREAS, the Monterey County Board of Supervisors adopted as policy a set of formulas to be used for all jurisdictional changes of organization on April 29, 1980 (Resolution #80-249); and WHEREAS, the current distribution of property taxes within tax rate area 102-003 is as follows:

23.11% - Monterey County’s Share

0.21% - Affected District’s Share

76.68% - Non-affected Districts’ Share
100.00% - Total; and
WHEREAS, the Revenue and Taxation Code Section 99 (Senate Bill 180, Chapter 801) requires that non-affected local agencies percentage share will remain constant; and WHEREAS, the County of Monterey and the City of Pacific Grove wish to agree to a fair share distribution of remaining property tax revenues; and
WHEREAS, the County of Monterey has realized a 41% reduction and the City has realized a 19% reduction in property tax revenue imposed by the State under Senate Bill 617, Chapter 699, Statutes 1992; and
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Legistar File ID No. 21-923 Agenda Item No. 41

WHEREAS, each year thereafter both the County and the City continue to shift revenues to the Education Revenue Augmentation Fund (ERAF);
NOW, THEREFORE, BE IT RESOLVED that the Monterey County Board of Supervisors does hereby agree to the following formulas for property tax base and increment distribution within Tax Rate Area 102-003 after change of organization/reorganization.

A. DISTRIBUTION OF PROPERTY TAX BASE:

Property tax base is the property tax revenue that is available prior to change of organization/reorganization.

Prior to Change or Organization/Reorganization:
(City of Pacific Grove, Tax Rate Area 004-000)
Current Ratio
City of Pacific Grove - 19.76% 45.52%
Monterey County - 23.65% 54.48%
Within Tax Rate Area 102-003, Monterey County’s share of property tax reduced by 41%, an amount equal to 9.48%. After this reduction, the total property tax available for distribution in the proposal area is equal to 13.63%.

After Change of Organization/Reorganization:
(New Tax Rate Area – To Be Assigned)

13.63 % - Property Tax Available for Distribution

1. City of Pacific Grove’s Share of Total Property Taxes Collected:

13.63% - Property Tax Available for Distribution
X 45.52% - City of Pacific Grove’s Current Ratio
= 6.20%
+ 0.18% - Pebble Beach Community Services District Share to City of Pacific Grove = 6.38

2. Monterey County’s Share of Total Property Taxes Collected:

13.63% - Property Tax Available for Distribution
X 54.48% - Monterey County’s Current Ratio
= 7.43%
plus
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Legistar File ID No. 21-923 Agenda Item No. 41

9.48% - The Adjustment for State Tax Shift
= 16.91% Total County share of property tax base
Formula for property tax base allocation to the City of Pacific Grove City of Pacific Grove’s Property Tax Revenue =
Total Property Taxes Collected X 6.38% X
Full Months Remaining in Tax Year Divided by 12.

B. DISTRIBUTION OF PROPERTY TAX INCREMENT:

Property tax increment is the increase in property tax revenue above the base resulting from the increase in assessed value of property after the change in organization/reorganization.

The formula recognizes that all future growth will be subject to a shift to ERAF in the amount of 41% for the County and 19% for the City of Pacific Grove. After the shift, the County and the City will be in the same relative position as before dividing the remainder.

Prior to Change of Organization/Reorganization:
(City of Pacific Grove, Tax Rate Area 004-000)
Current ÷ ERAF = Resulting Resulting
Rate Adjustment Rate Ratio
Pacific Grove 19.76% 81.0% 23.51% 41.5%
Monterey County 23.65% 59.0% 33.13% 58.5%
Based on existing Tax Rate Area 102-003, Monterey County’s share of property tax is 23.11% The total property tax available for distribution in the proposal area is 23.11%. The new Resulting Ratios calculated above are applied to the increment.

After Change of Organization/Reorganization
(New Tax Rate Area to be Assigned)

23.11% = Property Tax Available for Distribution

1. City of Pacific Grove’s Share of Property Tax Increment:

23.11% - Property Tax Available for Distribution
X 41.5% - City of Pacific Grove’s New Resulting Ratio
= 9.59%
+ 0.18% - Pebble Beach Community Services District Share = 9.77%
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Legistar File ID No. 21-923 Agenda Item No. 41

2. Monterey County’s Share of Property Tax Increment:

23.11% - Property Tax Available for Distribution
X 58.5% - Monterey County’s New Resulting Ratio
= 13.52%
Formula for property tax increment to the City of Pacific Grove from Tax Rate Area 004-000 after change of organization/reorganization:

City of Pacific Grove’s Property Tax Increment =
Total Property Tax Increment Collected X 9.77% X
Full Months Remaining in Tax Year Dividend by 12.

PASSED AND ADOPTED on this 16th day of November 2021, by roll call vote:

AYES: Supervisors Alejo, Phillips, Lopez, Askew and Adams NOES: None
ABSENT: None
(Government Code 54953)
I, Valerie Ralph, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in the minutes thereof of Minute Book 82 for the meeting November 16, 2021.

Dated: January 4, 2022 Valerie Ralph, Clerk of the Board of Supervisors File ID: 21-923 County of Monterey, State of California Agenda Item No.: 41
_______________________________________
Julian Lorenzana, Deputy
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Agenda No. 6 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: February 2, 2022
SUBJECT: City Manager Performance Evaluation Policy 000-27 CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Adopt a Resolution to create City Manager Performance Evaluation Policy 000-27.

DISCUSSION
The purpose of this Council policy is to formalize a process for City Manager performance evaluations.

Currently no such policy exists. Adopting a policy will ensure that performance evaluations are conducted on a regular basis with an established procedure. The policy is consistent with recent Council discussions and practice.

A performance evaluation provides job performance feedback, promotes alignment with City Council goals, demonstrates organizational accountability, identifies areas for professional development, and is input for future compensation.

OPTIONS
Do not approve or provide alternate direction.

FINANCIAL IMPACT:

None.

GOAL ALIGNMENT: Transparency, Accountability and Communication: Implement programs, processes, revisions, and training to improve and advance the City's efforts.

Attachments
Draft Resolution
Draft Council Policy
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RESOLUTION NO. 22-xxx

A RESOLUTION OF THE CITY OF PACIFIC GROVE CITY COUNCIL ESTABLISHING A

CITY MANAGER PERFORMANCE EVALUATION POLICY

FINDINGS

1. Currently, a City Manager Performance Evaluation Policy does not exist.

2. A City Manager Performance Evaluation provides job performance feedback, promotes alignment with City Council goals, demonstrates organizational accountability, identifies areas for professional development, and is input for future compensation.

3. The purpose of the City Manager Performance Evaluation Policy is to establish a formal performance evaluation process.

4. City governance will be more effective with a City Manager Performance Evaluation Policy.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE:

1. The Council determines that each of the Findings set forth above is true and correct, and by this reference incorporates those Findings as an integral part of this Resolution.

2. The Council authorizes adoption of a Resolution to create a new City Council Policy establishing a City Manager performance evaluation process.

3. The City Manager Performance Evaluation Policy is hereby approved as attached to this Resolution, which by this reference is incorporated as set forth in its entirety.

4. This Resolution shall become effective immediately following passage and adoption thereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 2nd day of February 2022, by the following vote:

AYES:

NOES:

ABSENT:

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APPROVED:

BILL PEAKE, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

DAVID C. LAREDO, City Attorney
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City of Pacific Grove
City Council Policy
Policy Governing Policy No. Effective Date Page
City Manager Performance Evaluation 000-27 February 2, 2022 1 of 1 PURPOSE:

To align City Manager with City Council goals and expectations and promote excellent City Manager performance.

POLICY & PROCEDURE:

A City Manager performance evaluation:
∑ Plans, reviews, and provides feedback on City Manager performance. ∑ Demonstrates organizational accountability to citizens and employees. ∑ Aligns City Manager responsibilities with City Council goals and expectations. ∑ Identifies further professional development of the City Manager. ∑ Is input for future compensation.

Council shall conduct annual City Manager performance evaluations consisting of:

1. Goal setting – The City Manager’s goals are those established at the beginning of the performance review period as per Council Goals Policy 000-26.

2. Interim feedback– Any Council Member who wishes to provide interim feedback to the City Manager may do so. These optional, informal discussions will remain private between the Council Member and City Manager.

3. End of year feedback - Process steps are, in order:
a. City Manager completes Council goals scorecard and self-evaluation form. b. Council Members individually complete performance evaluation form and sends to a designated Council Member for consolidation.
c. Council reviews consolidated performance evaluation and finalizes document with facilitation of an outside human resources professional. The facilitation goal is to reach consensus.
d. Council meets with City Manager to discuss performance evaluation.

Performance evaluation should address the following:
∑ Characteristics of performance
o Leadership and managerial ability
o Community and regional relations
o Knowledge and skills
o Fiscal management
o Council relations
o Overall performance
∑ Strengths and areas for improvement/development
∑ Goals
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The Brown Act authorizes performance evaluation of a public employee to be conducted in closed session.

This applies to City Manager performance evaluations.

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Agenda No. 8 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Tori Hannah, Administrative Services Director/Assistant City Manager MEETING DATE: February 2, 2022
SUBJECT: Second Quarter Treasurer’s Quarterly Report – Fiscal Year 2021-22 CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the Report.

DISCUSSION
Article 19, Section (K) of the City Charter requires that a quarterly statement of all funds in the treasury be submitted to the Council. The Treasurer’s report allows the Council and public to verify that the City’s funds are invested in a safe and prudent manner, and that such investments comply with City policy and state law. The Treasurer’s Report is different from a budget report, as its purpose is to report on cash balances.

This report reflects the City’s balances as of December 31, 2021 and shows that cash and investments held citywide, with a market value of $20,475,926. All investments are in government securities, certificates of deposit (CD), or other approved investment vehicles. The maturity dates are laddered, to ensure liquidity. All bank balances are insured. The City does not actively tra de either certificates of deposits or federal agency securities but hold investments in the portfolio for maturity.

Date Description Rate Dollar Amt/
Face Value Activity
10/07/2021 Federal National Mortgage Assoc., Note 1.38% $97,000 Maturity 11/16/2021 Discover Bank, Greenwood, Del., CD 1.80% $247,000 Maturity 11/18/2021 Nationwide Bank, Columbus, OH., CD 1.50% $249,000 Maturity 11/24/2021 Third Fed. Savings & Loan, Cleveland, CD 2.10% $247,000 Maturity 01/27/2026 Investors Community Bank, Manitowoc, WI, CD 0.50% $249,000 Redemption 12/10/2026 Synchrony Bank Retail, Citigroup, CD 1.25% $248,000 Purchase Investment Notes:

The average yield on the City’s portfolio for the quarter is 1.27%. This represents a yield rate that is 0.02% less than prior quarter and 0.17% less the same quarter in the prior year.

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OPTIONS
N/A – This is an informational report.

FINANCIAL IMPACT:

There is no fiscal impact. This is informational only.

GOAL ALIGNMENT: Financial Stability: Develop a strategic plan to better address current and future City expenditure and revenue needs.

Attachments
Second Quarter Treasurers Report
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City of Pacific Grove
Treasurers' Report
As Of December 31, 2021

DEPOSITORY ACCOUNT DESCRIPTION OF SECURITY MATURITY DATE

INTEREST RATE/
YIELD

DOLLAR/ PAR

AMOUNT MARKET VALUE
State of California Local Agency Investment Fund (LAIF) Immediate 0.22% 2,269,555.40 2,269,555.40 2,269,555.40 2,269,555.40
Bank of America Checking Pooled Cash Immediate 0.00% 6,594,761.04 6,594,761.04 6,594,761.04 6,594,761.04
N/A Petty Cash General Immediate 0.00% 685.00 685.00
685.00 685.00
Concourse Financial Group
Concourse Cash Sweep Money Market Fund 0.03% 273,368.86 273,368.86 Concourse Certificate of Deposit Ally Bk Sandy Utah 1/31/2022 2.90% 246,000.00 246,560.88 Concourse Certificate of Deposit Amerant Bk Natl Assn Coral Gables FL 12/3/2025 0.45% 249,000.00 242,625.60 Concourse Certificate of Deposit BMW Bk North Amer Salt Lake City Utah 11/20/2025 0.50% 249,000.00 243,248.10 Concourse Certificate of Deposit Bank Baroda New YorK Brh 7/22/2025 0.65% 249,000.00 245,693.28 Concourse Certificate of Deposit Baycoast Bnk Swansea Mass CTF 1/24/2025 1.70% 247,000.00 252,846.49 Concourse Certificate of Deposit Bell Bank Fargo ND CTF Dep 3/24/2023 0.85% 249,000.00 250,307.25 Concourse Certificate of Deposit Bridgewater Bk St Louis Pk, MN 11/28/2025 0.45% 249,000.00 242,672.91 Concourse Certificate of Deposit Capital One Natl Assn McLean VA CTF 8/7/2024 2.25% 247,000.00 256,215.57 Concourse Certificate of Deposit Centerstate Bank Fla Winterhaven Fla 3/30/2023 0.90% 242,000.00 243,425.38 Concourse Certificate of Deposit Enerbank Salt Lake City UT CTF 6/28/2023 3.20% 246,000.00 255,894.12 Concourse Certificate of Deposit Goldman Sachs Bk USA New York CTF 11/22/2022 2.40% 247,000.00 251,554.68 Concourse Certificate of Deposit Industrial & Coml Bk China USA Natl Assn NY CTF 2/11/2026 0.45% 249,000.00 241,955.79 Concourse Certificate of Deposit JPMorgan Chase BK NA Columbus OH CTF Dep 12/15/2025 0.50% 248,000.00 242,015.76 Concourse Certificate of Deposit Live Oak Bkg Co Wilmington NC CTF Dep 11/27/2024 1.85% 249,000.00 255,957.06 Concourse Certificate of Deposit Medallion Bk Salt Lake City Utah CTF Dep 9/19/2022 1.70% 249,000.00 251,512.41 Concourse Certificate of Deposit Merrick Bk South Jordan Utah 1/31/2025 1.80% 249,000.00 255,665.73 Concourse Certificate of Deposit Minnwest Bk Redwood Falls Minn Ctf Dep 7/15/2025 0.50% 249,000.00 244,445.79 Concourse Certificate of Deposit Morgan Stanley Bk N A Salt Lake City Ut CTF 1/25/2023 2.65% 246,000.00 251,965.50 Concourse Certificate of Deposit Morgan Stanley Private Bk Natl Assn Pur N Y 12/6/2023 3.55% 245,000.00 258,744.50 Concourse Certificate of Deposit New York Cmnty Bk Westbury N Y 7/1/2026 0.70% 249,000.00 243,295.41 Concourse Certificate of Deposit Preferred Bk Los Angeles Calif Ctf Dep 8/16/2024 2.00% 249,000.00 256,723.98 Concourse Certificate of Deposit Raymond Jmes Bk Natl Assn St Petersburg FL CTF Dep 11/8/2023 1.75% 247,000.00 252,199.35 Concourse Certificate of Deposit Sallie Mae Bk Salt Lake City UT CTF 5/23/2023 3.20% 246,000.00 255,338.16 Concourse Certificate of Deposit Synchrony Bk Retail CTF Dep Citigroup Instl CTF Dep 12/10/2026 1.25% 248,000.00 247,883.44 Concourse Certificate of Deposit TIAA FSB Jacksonville FLA CTF 11/22/2022 2.20% 247,000.00 251,115.02 Concourse Certificate of Deposit Texas Exchange Bk SSB Crowley Ctf Dep 11/25/2025 0.60% 249,000.00 242,633.07 Concourse Certificate of Deposit UBS Bk USA Salt Lake City Ut 6/23/2026 0.75% 249,000.00 243,895.50 Concourse Certificate of Deposit Wells Fargo Natl BkWest Las Vegas N V 1/30/2023 1.90% 249,000.00 253,101.03 Concourse U.S. Treasury Securities United Sts Treas NTS 9/30/2025 0.60% 250,000.00 242,187.50 Concourse U.S. Treasury Securities United Sts Treas NTS 5/31/2026 0.70% 250,000.00 245,000.00 Concourse U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide Bds 6/1/2022 1.550% 1,016,000.00 1,021,882.64 Total Concourse - General 8,726,368.86 8,761,930.76
TOTAL GENERAL INVESTMENTS 17,591,370.30 17,626,932.20
Concourse Cash Sweep Money Market Fund 0.03% 97,006.81 97,006.81 Concourse Fixed Income Bank Hapoalim B M New York BRH Ctf Dep 12/15/2025 0.50% 205,000.00 200,051.30 Concourse U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide BDS Cons Bond 6/1/2022 1.55% 180,000.00 181,042.20 Concourse U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide BDS 9/16/2025 0.55% 96,000.00 93,556.80 Concourse U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide 5/13/2026 0.88% 170,000.00 167,652.30 Concourse U.S. Government Bonds Federal Agric Mtg corp Madium Terms Nts Fed 1/15/2026 0.48% 95,000.00 92,422.65 Total Concourse - Endowments 843,006.81 831,732.06
TOTAL INVESTMENTS HELD FOR ENDOWMENTS 843,006.81 831,732.06 Umpqua Bank Money Market 0.01% 2,017,261.65 2,017,261.65 Total Umpqua Bank 2,017,261.65 2,017,261.65
TOTAL RESERVE INVESTMENT 2,017,261.65 2,017,261.65
GRAND TOTAL 20,451,638.76 20,475,925.91
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Agenda No. 8 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Tori Hannah, Administrative Services Director/Assistant City Manager MEETING DATE: February 2, 2022
SUBJECT: Second Quarter Budget Report
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the report.

DISCUSSION
The Administrative Services Department produces quarterly financial reports to assist in evaluating the City's fiscal condition. The attached report provides details on General Fund revenues and expenditures, as well as a summary related to enterprise funds.

This report has been modified to remove the capital improvement budgetary update and the list of purchase orders under $40,000. These two sections of the Quarterly Budget Report are now presented in two separate documents based on recommendations by the Financial Report Subcommittee.

Additional opportunities to review City financial information are listed below:

Mid-Year Budget presentation: Tentatively scheduled for the last Council Meeting in February or the first meeting in March.

Five-Year Forecast: Anticipated to be presented at a City Council Meeting in March.

The annual budget, as well as supplementary information regarding City finances, can be accessed from the following link: City Finance Information.

OPTIONS
N/A. This is informational only.

FINANCIAL IMPACT:

There is no fiscal impact. The report is informational only.

GOAL ALIGNMENT: Financial Stability: Develop a strategic plan to better address current and future City expenditure and revenue needs.

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Attachments
Second Quarter Budget Report
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City of Pacific Grove
Second Quarter Budget Report – Fiscal Year 21/22
Fund Summaries
The following tables provide an overview of current revenues and expenditures for each major fund. A summary of each fund, along with additional details on the General Fund are provided in the subsequent sections.

FY 21/22 YTD
Fund Amended Budget Revenues % of Budget Prior YTD
01 General Fund $27,240,559 $13,433,182 49% $10,637,330 74 Local Water Project 725,800 429,362 59% 638,632
75 Cemetery 485,500 340,151 70% 241,033
76 Sewer Fund 3,599,693 586,735 16% 87,379
77 Golf 371,500 188,518 51% 186,509
Fund
FY 21/22
Amended Budget
YTD
Expenditures % of Budget Prior YTD
01 General Fund $27,417,158 $13,736,333 50% $12,054,033 74 Local Water Project 715,948 279,749 39% 167,991
75 Cemetery 542,639 247,405 46% 255,854
76 Sewer Fund 5,090,178 1,332,113 26% 4,634,946
77 Golf 334,044 153,890 46% 202,016
General Fund Overview
General Fund revenues and expenditures are trending relatively consistent with the budgetary projections.

The differences between the year-to-date (YTD) revenues and expenditures are primarily related to revenue reductions due to COVID-19; and the related cost savings initiatives that were implemented to assist in balancing the Fiscal Year 20/21 budget.

At the close of the second quarter, expenditures exceeded revenues by approximately $303,152. This variance is due to uneven revenue receipting patterns, combined with a significant debt service payment at the beginning of the year. This second quarter deficit is also evident in the prior year. Specific information related to major revenue categories and departmental expenditures are provided within this section.

The City continually monitors the budget on a regular basis. If any significant budgetary variances are identified, a budget amendment will be requested as part of the mid-year budget process; or through a separate budget amendment during the year. The Mid-Year budget presentation is tentatively anticipated to be presented at the second meeting in February, with the Five-Year Fiscal Forecast presented in March.

General Fund Revenues
The subsequent chart provides an overview of the General Fund revenue receipts. All revenues are trending consistent with the prior year or the annual budget. Any significant variances are listed below the chart.

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Revenue
FY 21/22
Amended
Budget
YTD
Transactions
% of
Budget Prior YTD
Taxes:

Property Taxes $8,418,000 $4,877,380 58% $4,629,757
Transient Occupancy Tax 4,703,000 2,889,334 61% 1,521,031 Transient Use Licenses 80,000 3,345 4% 9,136
Sales and Use Tax 4,109,000 1,408,686 34% 1,372,507
Business License Tax 359,000 308,485 86% 323,654
Franchise Tax 1,316,000 257,309 20% 248,986
Utility User Tax 1,775,000 718,944 41% 699,311
Other Tax 117,000 109,940 94% 93,830
Total Taxes $20,877,000 $10,573,423 51% $8,898,212
Other:

Licenses and Permits 1,304,000 416,196 32% 440,472
Intergovernmental 153,000 52,521 34% 37,623
Charges for Services 1,826,000 723,417 40% 707,106
Fines and Forfeitures 138,000 6,574 5% 12,749
Interest, Rents, Conc. 304,000 148,218 49% 151,750
Other Revenues 614,000 501,238 82% 324,418
Interfund Transfers 2,024,559 1,011,595 50% 65,000
Total Revenues $27,240,559 $13,433,182 49% $10,637,330
Transient Occupancy Tax (TOT)
At the close of the second quarter, the City received $2.9 million in transient occupancy revenues, which includes five months of TOT transactions. This is consistent with the number of monthly transactions included in the $1.5 million prior year-to-date amount. In Fiscal Year 20/21, additional COVID-19 travel restrictions were imposed during the winter season. These limitations, as well as a gradual recovery within the hospitality industry, contributed to the prior year reduced revenues.

Sales Tax
The Fiscal Year 21/22 amount represents four months of sales tax receipts, which is equivalent to the amount of months received in the prior year. In Fiscal Year 20/21 sales tax revenues exceeded budgetary projections, with significant performance seen in the fourth quarter. The City is currently evaluating this revenue source, as well as meeting with the City’s sales tax consultant to evaluate any changes to the year-end estimate.

Franchise Taxes
This category of revenues has uneven receipting patterns, with two utilities typically submitting a single large payment during the fourth quarter. The revenues are performing just above the prior year amounts.

Other Tax
In Fiscal Year 20/21, the amount of Real Estate Transfer Taxes doubled, when compared to the prior year.

With rising property values and sales, this trend is continuing into the second quarter.

Licenses and Permits
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is projected in the second half of the year. Any reductions in building revenues are anticipated to be offset by reduced building contract costs.

Intergovernmental
The second quarter and budgetary difference reflects the timing of grant reimbursement requests. These amounts could vary each year based on the availability and use of grant funds.

Fines and Forfeitures
The most significant revenue in this category is code enforcement revenues. In prior years, annual code enforcement receipts ranged from approximately $27,000 to $243,000, depending on the number and type of violations. The annual estimate will be subject to revaluation as part of the mid-year process.

Other Revenues
In Fiscal Year 21/22, a true-up of prior year Fire contract costs resulting in a refund of $82,336; and a Franchise Change of Ownership Transfer Fee of $44,547, contributed to unanticipated revenues within this category.

Interfund Transfers
In Fiscal Year 21/22, the amount represents two quarters of the budgeted transfers. These funds include a transfer from the Operating Donation Fund to assist in supporting Library operations; as well as ARPA Funds.

General Fund Expenditures
During the first half of the year, department expenditures may not typically trend with the percentage of year that has elapsed. The primary exception would be the underlying salary and benefit costs, which are trending consistent with the number of completed payperiods. In the first half of the prior year, the City initiated 10% furloughs and reduced staffing in the Library and Recreation Departments due to COVID-19. In Fiscal Year 21/22, all City staff returned to regular schedules and all frozen positions were reinstated. This change, along with rising unfunded liability costs, contribute to the annual increase. Additional information specific to departments is listed below the table.

Expenditures
FY 21/22
Amended Budget Expenditures % of Budget Prior YTD
City Council $352,751 $211,894 60% $136,768
City Manager 1,056,185 506,970 48% 407,995
City Attorney 495,280 258,209 52% 192,510
Finance 1,312,023 662,725 51% 526,108
Information Services 824,157 306,198 37% 208,752
Police 7,277,577 3,570,842 49% 3,202,574
Fire 3,949,051 1,949,160 49% 1,861,348
Public Works 3,887,923 1,690,954 43% 1,431,747
Community Development 2,781,059 857,000 31% 900,593
Library 1,042,499 504,226 48% 315,163
Recreation 836,015 330,791 40% 277,002
Museum 282,940 150,913 53% 113,234
Subtotal $24,097,460 $10,999,882 46% $9,573,794
Capital Outlay 125,721 - 0% 38,722
Transfers to CIP Fund 701,173 350,587 50% 250,000
Debt Service 2,170,418 2,156,756 99% 2,086,517
Interfund Transfers 322,386 229,108 71% 105,000
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In the first quarter, the City receives renewals for most jurisdictional memberships at the beginning of the year. In the first half of Fiscal Year 21/22, a contract for legal services was initiated for lease negotiations and CEQA requirements. These two factors contribute to the increase over the prior year amount.

Information Services
Information Technology expenditures include various software subscriptions for multiple departments, salaries, and technology equipment. While some of the budgetary variance can be attributed to timing, there is also a half-time vacancy; and an employee on extended leave within the department. These factors, combined with a corresponding delay in projects contribute to the annual budgetary difference.

Community Development
The budgetary variance is primarily related to timing of contract services. Some of these expenditures correlate to revenues, such as intergovernmental grants and building fees.

Library and Recreation
In Fiscal Year 20/21 Recreation and Library service operations were significantly reduced due to COVID-19.

The increase in expenditures in Fiscal Year 21/22 is primarily related to reinstating all staff and restoring regular funding.

Capital Outlay
In Fiscal Year 21/22, a budget adjustment in December added approximately $99,000 in capital outlay appropriations. This was combined with funds that were set aside for Library technology improvements. It is anticipated that these funds will be expended or encumbered by the end of the fiscal year.

Interfund Transfers
In Fiscal Year 21/22, the Interfund Transfers include support for 9-1-1 emergency services, a transfer of water entitlement sales to the Local Water Project, $60,386 in funds allocated to assist with the purchase of a fire truck, and $12,000 to cover estimated additional Liability Fund costs. The amount transferred includes water entitlement sales of $117,915 that was received during the first half of the fiscal year.

Other Funds
Local Water Project
In the first half of Fiscal Year 21/22, LWP revenues include $311,447 in operating revenues; and a transfer of $117,915 in supplemental water entitlement sales. The transferred amount represents all water entitlement sales receipted in the General Fund through the first half of the fiscal year. In Fiscal Year 20/21, the year-todate LWP revenues include operating revenues of $338,632 and a $300,000 partial transfer of the loan proceeds. The operating expenditures in Fiscal Year 21/22 includes two months of additional payments for contract services; and additional utility payments, when compared to the prior year. A peer review of a draft Local Water Project Business Plan has been completed, with a presentation tentatively scheduled for the last Council Meeting in February.

Cemetery
The Cemetery expenditures are trending relatively close to the budget, while Cemetery sales are exceeding the prior year amount. In Fiscal Year 20/21, sales exceeded budgetary and prior year projections. It is anticipated that an amendment will be needed at mid-year to reflect continued growth.

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Sewer Fund
The City contracts with Monterey One Water to collect sewer use fees. The Fiscal Year 21/22 revenues primarily reflect one bi-monthly payment of regular sewer service fees. Due to the timing associated with collecting and remitting payments to the City, there were limited revenues to report in the first half of Fiscal Year 21/22, as well as minimal revenues in the prior fiscal year. The Sewer Fund has sufficient fund balance to manage any cash flow requirements. The annual variance in expenditures is primarily related to the amount of budget appropriated for capital projects and the timing of the related expenditures.

Golf Course
Golf Course revenues are trending similar to the prior year, with reductions in utilities primarily related to a prior period adjustment. Golf course revenues are currently exceeding operating expenditures; and it is anticipated that this trend will continue through the end of the fiscal year.

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Agenda No. 8 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Audrey Cray, Management Analyst
MEETING DATE: February 2, 2022
SUBJECT: Second Quarter Workers' Compensation Report
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the report.

DISCUSSION
On November 4, 2015, the Council approved a five-year Workers’ Compensation phased refunding plan to bring the designated internal service fund into compliance with the Council’s Budget and Financial Management Policy. At that time, Staff recommended that Council receive a quarterly status report on case statistics and Workers’ Compensation Fund balances. Case statistics for the quarter ending December 31, 2021 is included in Attachment A.

The City Workers’ Compensation program is a type of insurance that provides compensation and medical care for employees who become injured during the course of their employment. The City is now a member of the California Joint Powers Insurance Authority (CJPIA). This Authority provides excess Workers’ Compensation liability coverage above the City’s self-insured retention amount of $150,000 per occurrence. Workers’ Compensation provides for: Payments in place of wages functioning as a type of disability insurance, compensation for past and future economic loss; reimbursement or payment of medical expenses; and benefits payable to the dependents of workers killed during employment, functioning as a form of life insurance.

OPTIONS
N/A - Informational Only
FINANCIAL IMPACT:

There is no financial impact. This is informational only.

GOAL ALIGNMENT: Financial Stability: Develop a strategic plan to better address current and future City expenditure and revenue needs.

Attachments
Second Quarter Workers Comp. Statistics Report
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City of Pacific Grove
Second Quarter Workers’ Compensation Statistics – Fiscal Year 21/22 Projected Fund Balance
The Workers’ Compensation Internal Service Fund (ISF) is used to separately budget and account for services provided to General Fund departments, as well as Enterprise Funds. Contributions to the ISF are calculated on a cost recovery basis, with charges apportioned to City departments based on claim trends and number of participants.

The status of the internal service fund for Workers’ Compensation is provided in the tables below.

Workers’ Compensation Fund (Fund 71) Amount
Fund Balance, July 1st, 2021 $ 177,540
Revenues: Through December 31, 2021 $350,352
Expenditures: Through December 31, 2021 ($476,827)
Estimated Fund Balance, Second Quarter $51,065
Consistent with Council’s direction, the Workers’ Compensation fund ended Fiscal Year 20/21 with a positive fund balance.

The Workers’ Compensation expenditures through the second quarter of FY 21/22 represent approximately 69% of the budgeted amount. The revenues reported represent 59% of the budgeted amount; and reflect departmental contributions and excess claim refunds. The estimated ending fund balance is anticipated to be positive at the end of Fiscal Year 21/22.

Cumulative Claims Outstanding
The City meets quarterly with the City’s third-party administrator to evaluate and proactively manage claims. At the close of the second quarter, the number of outstanding claims went up by one to 47. This included an increase of three claims to the Non-Litigated/Medical Only category; an increase of one claim to the Litigated/Medical Only category; a decrease of three claims to Non-Litigated/Disability or Lost Time category; and a decrease of one claim to the Litigated/Disability or Lost Time category.

Summary of Open/Reopen Claims as of 12/31/2021
Non-Litigated Litigated Total
Future Medical 13 19 32
Disability or Lost Time 6 4 10
Medical Only 4 1 5
First Aid 0 0 0
Total Open Claims 23 24 47
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New Claims – Second Quarter,
In the second quarter of Fiscal Year 21/22, there were
eight new claims from three Departments. The adjacent
chart provides an overview of the claims by cause.

Although Exposure (COVID) represents the highest
number of claims forthe fiscal yearto date, these incidents are filed for reporting purposes only. All but two of these claims were closed at the end of the quarter. At the end of the second quarter, only three new claims remained
open.

New Claims by Type
Quarter to Date Year to Date
Current Year Prior Year Current Year Prior Year
New Claims Received During the Period
Disability or Lost Time 2 1 2 2
Medical 3 18 34 23
First Aid 3 1 5 2
Total Claims by Type 8 20 41 27
\
The following chart provides an overview of quarterly trends. 0 5
10 15
20 25
30 35
Q2 2019-20 Q3 2019-20 Q4 2019-20 Q1 2020-21 Q2 2020-21 Q3 2020-21 Q4 2020-21 Q1 2021-22 Q2 2021-22 Total Claims Reported by Period
First Aid Disability / Lost Time Medical Only
Cut,
Puncture or
Scrape, 1
Exposure
(COVID), 31
Strain or
Tear, 5
Foreign
Body in
Eye, 2
Cumulative,
1 Fall, Slip or
Trip, 1
INJURIES BY CAUSE FISCAL YEAR TO DATE The kickoff for the Safety Incentive Program is expected to be in late February to early March. It was postponed from the original date of December/January due to the spike in Covid cases. Many City employees are already participating by turning in Near Miss Reports about possible hazards that were identified, and immediately remedied. The safety program has been very active with both virtual and onsite employee safety training, with the next onsite training occurring at the end of February 2022. Staff is continuing to update the Covid Exposure Control Plan with the latest updates from CalOSHA.

The table listed below provides a comparison of claims over the last two fiscal years. In Fiscal Year 21/22, there are fourteen additional claims when compared to the prior Fiscal Year. The increase in claims is related to the Report Only requirement for COVID exposure and vaccine reaction claims.

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Agenda No. 8 D

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Jennifer Pope, Management Analyst
MEETING DATE: February 2, 2022
SUBJECT: Second Quarter Purchase Order Report
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the Second Quarter Purchase Order Report.

DISCUSSION
The Second Quarter Purchase Order Report includes information on open purchase orders that were issued under $40,000. This report is intended to be consistent with the new reporting requirement in Section 2.16.160 of the City's Purchasing Systems and Procedures.

Purchase orders are issued for all purchases of supplies, services, materials, equipment and contractual services over $5,000.

The Purchase Order Report includes:

Vendor name
Date the purchase order was issued
Description of the encumbered funds
Purchase order amount
Year-to-date expenses for the Second Quarter
This report was previously a part of the Quarterly Budget Report, but based on the recommendation of the Finance Subcommittee it is now presented independently.

OPTIONS
N/A - This report is an informational report.

FINANCIAL IMPACT:

There is no fiscal impact associated with receiving this report.

GOAL ALIGNMENT: Financial Stability: Develop a strategic plan to better address current and future City expenditure and revenue needs.

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Attachments
Purchase Order Report
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Open Purchase Orders Under $40,000
Second Quarter FY 21/22

PO DEPARTMENT DIVISION PROJECT VENDOR NAME DATE DESCRIPTION

PURCHASE

ORDER AMOUNT

YEAR TO DATE

EXPENSE
22000015-01 ADMINISTRATIVE SERVICES 131 CHAVAN & ASSOCIATES, LLP 39,300.00 34,000.00 22000016-01 ADMINISTRATIVE SERVICES 131 BARTEL ASSOCIATES, LLC 19,000.00 6,280.00 22000021-01 ADMINISTRATIVE SERVICES 131 WELLS FARGO VENDOR FINANCE 15,035.90 8,572.73 22000073-01 ADMINISTRATIVE SERVICES 131 NOLAND, HAMERLY, ETIENNE 16,227.50 6,755.00 22000075-01 ADMINISTRATIVE SERVICES 105 ACCESS MONTEREY PENINSULA 39,000.00 - 22000096-01 ADMINISTRATIVE SERVICES 131 SUPERION, LLC 18,180.00 - 22000105-01 ADMINISTRATIVE SERVICES 131 MCGILLOWAY, RAY, BROWN 7,200.00 - 22000004-01 CEMETERY 601 LLORIN-VELASQUEZ CORPORATION 31,500.00 15,625.00 22000121-01 CITY ATTORNEY 111 NOLAND, HAMERLY, ETIENNE 39,000.00 12,093.00 22000136-01 CITY ATTORNEY 111 COLANTUONO, HIGHSMITH & WHATLEY 17,000.00 37.50 22000087-01 CITY COUNCIL 101 BEST BEST & KRIEGER 39,500.00 39,055.37 22000142-01 CITY COUNCIL 101 ASSOCIATED RIGHT OF WAY 6,500.00 562.50 22000168-01 CITY MANAGER 121 MEYERS NAVE 30,000.00 9,324.13 22000169-01 CITY MANAGER 121 BOB MURRAY & ASSOCIATES 27,500.00 21,791.59 22000170-01 CITY MANAGER 121 BRYCE CONSULTING 23,000.00 8,160.00 22000072-01 CITY MANAGER 121 NOLAND, HAMERLY, ETIENNE 19,500.00 - 22000095-01 COMMUNITY DEVELOPMENT 201 RINCON CONSULTANTS, INC 15,000.00 6,139.75 22000131-01 COMMUNITY DEVELOPMENT 201 BEST BEST & KRIEGER 39,000.00 - 22000020-01 FIRE DEPARTMENT 351 EDWARDS TRUCK CENTER INC 5,540.09 - 22000022-01 INFORMATION TECHNOLOGY 133 ALVAREZ TECHNOLOGY GROUP 39,000.00 25,674.00 22000097-01 INFORMATION TECHNOLOGY 133 RICHARD PETTY ELECTRIC 6,300.00 - 22000099-01 INFORMATION TECHNOLOGY 133 GEOGRAPHIC TECHNOLOGIES 23,950.00 - 22000101-01 INFORMATION TECHNOLOGY 133 ESRI, INC. 20,500.00 - 22000130-01 INFORMATION TECHNOLOGY 133 PROTELESIS 12,000.00 5,808.20 22000058-01 LIBRARY 401 CALIFA GROUP 6,411.00 -
22000060-01 LIBRARY 401 PACIFIC LIBRARY PARTNERS 8,641.00 - Pending LIBRARY 401 CROZIER STUDIOS 11,100.00 11,100.00 22000041-01 LOCAL WATER PROJECT 741 TROJAN TECHNOLOGIES 9,501.80 3,200.00 22000166-01 LOCAL WATER PROJECT 741 DTA 12,500.00 -
22000014-01 NATURAL HISTORY MUSEUM 411 PURE JANITORIAL, LLC 07/12/21 AUDIT AND ACCOUNTING SERVICE
07/12/21 GASB 75 ACTUARIAL VALUATION
07/20/21 KONICA LEASE FY 21/22
08/25/21 PURCHASING MANUAL
08/27/21 TELEVISED BROADCASTING
10/06/21 CONSULTING FINANCE SOFTWARE UPDATE
10/20/21 PROFESSIONAL LEVEL ACCOUNTING
07/08/21 CEMETERY HEADSTONE
11/15/21 SPECIAL LEGAL SERVICES - ENAYATI*
12/10/21 LEGAL ASSISTANCE - HOBBS
09/13/21 LEASE NEGOTIATIONS- ELIZABETH HULL SERVICES*
12/15/21 REFRESH APPRAISAL - SLOAT AVENUE*
6/1/21 LEGAL/ADMINISTRATIVE DECISION
5/26/21 EXECUTIVE RECRUITMENT/CDD DIRECTOR
8/13/21 COMPENSATION STUDY FOR CITY CLASSIFICATIONS
08/25/21 EMPLOYEE ADMIN MANUAL
10/06/21 ON-CALL PEER REVIEW
12/07/21 ASSIST & REVIEW HOUSING POLICY
07/15/21 FIRE ENGINE REPAIR
07/20/21 MANAGED SERVICES & AFTER HOURS
10/13/21 INSTALL POWER TO NEW AC
10/13/21 GIS IMPLEMENTATION SERVICE
10/13/21 ARCGIS SOFTWARE
12/07/21 MITEL - MAINT & SUPPORT
08/06/21 EBSCO DATABASE PACKAGE
08/06/21 PLP MEMBERSHIP FEES

ART CURATOR
07/27/21 LWP UV SYSTEM PARTS REPLACEMENT
10/26/21 LOCAL WATER PROJECT BUSINESS PLAN
07/12/21 JANITORIAL SERVICES 27,630.00 13,344.00
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Open Purchase Orders Under $40,000
Second Quarter FY 21/22

PO DEPARTMENT DIVISION PROJECT VENDOR NAME DATE DESCRIPTION

PURCHASE

ORDER AMOUNT

YEAR TO DATE

EXPENSE
22000027-01 POLICE DEPARTMENT 301 SPCA OF MONTEREY COUNTY 07/28/21 SPCA SERVICES MONTEREY COUNTY 12,000.00 4,150.00 22000028-01 POLICE DEPARTMENT 301 STAPLES CREDIT PLAN 07/28/21 OFFICE SUPPLIES 7,500.00 3,154.97 22000029-01 POLICE DEPARTMENT 301 TRACNET CORPORATION 07/28/21 TRACNET RECORDS MANAGEMENT SYSTEM 15,880.00 - 22000030-01 POLICE DEPARTMENT 301 VERIZON WIRELESS 07/28/21 VERIZON WIRELESS MOBILE 7,500.00 2,569.44 22000031-01 POLICE DEPARTMENT 301 LEXIPOL LLC 07/28/21 POLICE POLICY MANAGEMENT 13,000.00 3,150.00 22000032-01 POLICE DEPARTMENT 301 VERIZON BUSINESS 07/28/21 VERIZON PORT ACCESS 9,000.00 2,350.72 22000033-01 POLICE DEPARTMENT 301 SPEAK WRITE 07/28/21 TRANSCRIPTION SERVICES 7,000.00 2,544.49 22000035-01 POLICE DEPARTMENT 301 IPS GROUP, INC 07/28/21 IPS METER BANK FEES 25,000.00 7,886.20 22000036-01 POLICE DEPARTMENT 301 IPS GROUP, INC 07/28/21 PARKING METER MAINTENANCE 5,000.00 4,531.97 22000037-01 POLICE DEPARTMENT 301 AT&T MOBILITY 07/28/21 AT&T FIRSTNET CELLPHONES 20,000.00 7,692.20 22000038-01 POLICE DEPARTMENT 301 SYSTEMS FOR PUBLIC SAFETY 07/28/21 BACKGROUND INVESTIGATIONS 5,000.00 1,350.00 22000039-01 POLICE DEPARTMENT 301 CORDICO, INC. 07/28/21 EMPLOYEE WELLNESS APPLICATION 7,500.00 - 22000040-01 POLICE DEPARTMENT 301 MORELAND INVESTIGATIONS 07/28/21 BACKGROUND INVESTIGATIONS 5,000.00 520.00 22000045-01 POLICE DEPARTMENT 304 AXON ENTERPRISE, INC 07/28/21 BODY WORN AND IN-CAR CAMERAS 26,300.00 19,059.51 22000046-01 POLICE DEPARTMENT 304 ENTERPRISE FM TRUST 07/28/21 LEASED VEHICLES 26,000.00 12,753.60 22000057-01 POLICE DEPARTMENT 301 ARAMARK UNIFORM & CAREER 08/06/21 LINEN SERVICE 5,000.00 2,184.83 22000084-01 POLICE DEPARTMENT 355 CHOMP 09/03/21 9 AUTOMATIC AEDS 12,000.00 9,000.00 22000104-01 POLICE DEPARTMENT 304 LC ACTION POLICE SUPPLY 10/19/21 SERVICE PISTOLS 9,161.34 3,574.20 22000115-01 POLICE DEPARTMENT 301 WATSONVILLE FORD 11/05/21 REPAIRS TO PD VEHICLE 7,903.84 7,847.48 22000139-01 POLICE DEPARTMENT 301 ULINE 12/14/21 TRAINING ROOM FURNITURE 8,089.45 5,766.76 22000167-01 POLICE DEPARTMENT 301 FLAGSTONE INVESTIGATIONS 8/12/21 INTERNAL INVESTIGATION 25,000.00 6,975.00 22000005-01 PUBLIC WORKS 611 NEILL ENGINEERS 07/08/21 ADMINISTRATIVE ENGINEERING 12,000.00 6,000.00 22000006-01 PUBLIC WORKS 503 GACHINA LANDSCAPE MANAGEMENT 07/08/21 MOWING SERVICES 14,244.00 7,122.00 22000018-01 PUBLIC WORKS 631 TRC21-02 AURUM CONSULTING 07/14/21 PW YARD ELECTRICAL ENGINEERING 18,750.00 12,187.50 22000042-01 PUBLIC WORKS 505 CALIFORNIA MARINE SANCTUARY 07/27/21 WATER QUALITY MONITORING 18,319.50 - 22000047-01 PUBLIC WORKS 519 CIP20-17 MILLER & ASSOCIATES 07/28/21 LOVERS POINT BEACH ACCESS 20,000.00 - 22000051-01 PUBLIC WORKS 502 MISSION UNIFORM SERVICE 07/28/21 LINEN SERVICES 16,500.00 11,055.13 22000056-01 PUBLIC WORKS 631 TRC21-02 WILLIAMS SCOTSMAN, INC 08/06/21 PW CONSTRUCTION TRAILER 10,367.98 7,541.41 22000077-01 PUBLIC WORKS 519 CIP20-17 COASTAL FABRICATION 08/31/21 LOVERS POINT STAIRS 8,358.49 2,100.00 22000093-01 PUBLIC WORKS 631 TRC21-02 SERVER SUPPLY, INC 10/05/21 IT INFRASTRUCTURE (PW FIRE) 6,396.69 6,299.79 PG CC 2/2/22
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Second Quarter FY 21/22

PO DEPARTMENT DIVISION PROJECT VENDOR NAME DATE DESCRIPTION

PURCHASE

ORDER AMOUNT

YEAR TO DATE

EXPENSE
22000094-01 PUBLIC WORKS 631 TRC21-02 CLIENT FIRST CONSULTING 10/05/21 TEMPORARY CONNECTIVITY SERVICES 8,690.00 - 22000122-01 PUBLIC WORKS 704 CIP20-22 CONKLIN BROS OF SAN JOSE 11/18/21 ASD FLOORING 17,347.75 15,085.00 22000128-01 PUBLIC WORKS 631 CIP22-15 SCUDDER ROOFING COMPANY 12/01/21 LIBRARY ROOF REPAIR 21,009.60 - 22000134-01 PUBLIC WORKS 503 CIP22-05 SENTRY ALARM SYSTEMS INC 12/08/21 FIRE SUPPRESSION SPRINKLE 10,685.00 - 22000138-01 PUBLIC WORKS 508 WCT PRODUCTS 12/14/21 PURCHASE OF STREET BARRICADES 6,786.50 - 22000086-01 SEWER 611 RINCON CONSULTANTS, INC 09/10/21 ARCHEOLOGICAL & TRIBAL MONITORING 20,376.19 4,093.75 1,093,183.62 406,068.72
* Services initiated through Council Closed Session action.

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Agenda No. 8 E

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Jenny McAdams, Mayor Pro Tem
MEETING DATE: February 2, 2022
SUBJECT: Association of Monterey Bay Area Governments Minutes of December 8, 2021 and January 5, 2022.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive minutes.

Attachments
December Minutes
January Minutes
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Agenda No. 9 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: February 2, 2022
SUBJECT: Monterey Regional Waste Management District Appointment CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve appointment of Mayor Peake to Monterey Regional Waste Management District Joint Powers Authority (MRWMD) Board of Directors serving until December 31, 2022.

DISCUSSION
The City is a member of the MRWMD JPA which provides the City with garbage disposal, recycling, reuse, composting, and hazardous household waste disposal. The JPA doesn't include collection of materials and transport to MRWMD facilities in Marina which is under a franchise agreement with GreenWaste Recovery, Inc.

JPA participation requires appointment of a representative to the board of directors by Council.The term of office is nominally 4 years, however, in the event of a vacancy as is currently the case, the appointment is for the remainder of the vacancy.The current term of office ends December 31, 2022.

With this appointment Council board appointments would be:

Association of Monterey Bay Area Governments (AMBAG) – Mayor Pro Tempore McAdams California Joint Powers Insurance Authority (CJPIA) – Councilmember Tomlinson Central Coast Community Energy (3CE) – Councilmember Tomlinson Community Human Services (CHS) – Alan Cohen
Monterey One Water (M1W) – Councilmember Smith
Monterey Regional Waste Management District (MRWMD) – Mayor Peake Monterey-Salinas Transit (MST) – Councilmember Amelio
Transportation Agency of Monterey County (TAMC) – Councilmember Poduri

OPTIONS
Provide alternative.

FINANCIAL IMPACT:

N/A
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GOAL ALIGNMENT: Not Applicable.

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Agenda No. 9 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: February 2, 2022
SUBJECT: Mary Ann Whitten Appointment to Library Board
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve appointment of Mary Ann Whitten to Library Board for a term ending January 31, 2026.

DISCUSSION
Boards, commissions, and committees (committees) play a vital role in city government and provide opportunities for residents to become engaged in civic activities and work to improve local governance.

Mayoral appointments to City committees must be confirmed by Council (Charter Article 26). Further regulations and policy regarding appointments can be found in PGMC Chapter 3.02 and Policy 000-5.

Terms are 4 years for Charter committees.

OPTIONS
N/A
FINANCIAL IMPACT:

N/A
GOAL ALIGNMENT: Not Applicable.

Attachments
Application
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Agenda No. 10 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: February 2, 2022
SUBJECT: September Recreation Board Minutes
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive September 2021 Recreation Board Meeting Minutes Attachments
Minutes
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CALL TO ORDER – The meeting was called to order at 4:02 pm.

ROLL CALL – Charles Gibson, Jay Tulley, Elliot Hazen, Absent: Colleen Goldsmith, Daryl Smith. Also present: Public Works Director: Dan Gho; Recreation Manager: Katie Clark; and Amy Colony.

1. Approval of Agenda: Approved 3-0-0 (Hazen/Tulley)

2. Board and Staff Announcements: Amy Colony announced the landscape cleanup of Esplanade Park by the Pacific Grove Garden Group on Saturday, September 25 from 9AM – noon.

3. Council Liaison Comments: Amy Tomlinson (absent)

4. General Public Comments: none
A. Written Communication: none
B. Oral Communication: None

5. Approval of Minutes from August 26, 2021: Tulley/Hazen – Approved 3-0-0

6. Regular Agenda:

A. Recreation Board Goals: Discussion about the development of recreation goals continues. Specific improvements and maintenance needs were discussed for Washington Park however, it was felt that some of the items identified are PWD maintenance items that should be addressed via ongoing operations. Using the Park and Facility Registry of Existing Assets report, the idea of a conducting an inspection of parks and facilities on an annual or biannual basis would assist in identifying where repairs and improvements are needed. This process would aid the PWD in prioritizing repair expenditures and help identify parks and facilities where Capital Improvement Projects (CIP’s) are most needed. Additional discussion focused on the potential for Washington Park (developed portion) landscape architectural evaluation and recommendations and the proposed CIP. Other updates included the CIP for the Youth Center (complete) and in general, how the recreation goals are aligning with city developed goals such as repairs to Chautauqua Hall. The update of the recreation goals document (Google Doc’s) was also discussed and it was determined the board members assigned to the sub committee (Tulley/Smith) and the Public Works Director can have access the document to develop and update as needed. The recreation board goals item will be carried over to the October 2021 meeting to update all board members.

B. Recreation Department Update:

Next Agenda: October 28, 2021, Time TBD - update and discussion of Recreation Board goals (continued)
Meeting was adjourned at 5:13 pm.

Submitted by Charles Gibson
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Agenda No. 11 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Rob Mullane, AICP, Contract Planner
MEETING DATE: February 2, 2022
SUBJECT: DRAFT Adoption of a Resolution Conditionally Authorizing the Vacation of Excess Right-of-Way Located on Sloat Ave. This public hearing will be opened, public comment shall begin at the February 2, 2022, City Council meeting, but the hearing will then be continued to the February 16, 2022 City Council meeting; the public hearing shall remain open -- but NOTE -- individual members of the public may choose to speak either at the February 2, 2022 meeting or the February 16, 2022 meeting, but no person shall be allowed to speak at more than one hearing date.

CEQA: Environmental Impact Report

RECOMMENDATION
Open the public hearing and continue the item to the February 16, 2022, meeting.

DISCUSSION
Discussion will be included in the February 16, 2022, agenda report.

OPTIONS
n/a
FINANCIAL IMPACT:
n/a
GOAL ALIGNMENT: Not Applicable.

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Agenda No. 11 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Alyson Hunter, AICP, CDD Director
MEETING DATE: February 2, 2022
SUBJECT: Approval of Amendments to PGMC 23.80 - Accessory Dwelling Units (ADU) CEQA: Statutory Exemption, CEQA Guidelines 15282(h) - Adoption Regarding Second Units in a Single or Multi Family Residential Zone

RECOMMENDATION
Approve the proposed amendments to PGMC 23.80 - Accessory Dwelling Units (ADUs) as recommended by the Planning Commission.

DISCUSSION
In 2019, the State legislature passed a variety of housing laws pertaining to the development of Accessory Dwelling Units (ADU) in residential zones which removed much of a local jurisdictions' ability to assert discretion over the size, placement, and architectural design of such units. In response, staff drafted for the Planning Commission's review and discussion, a comprehensive amendment to Chapter 23.80 of the PGMC. This amendment was codified through the adoption of Ordinance 20-007 by the City Council on March 18, 2020.

In the ensuing year, additional changes to ADU law have been adopted by the State legislature. These laws became effective in January 2021. In an effort to keep up with these changes and remain in compliance with State law, the Planning Commission appointed a subcommittee to review the new laws and help draft an update to the Ordinance. Subcommittee member Sawyer discussed the changes with the State Housing & Community Development (HCD) staff and received guidance on the items that the City should consider in our amendment process. These items were incorporated into the draft amendment attached here for the City Council's review and action. The Planning Commission recommended approval of this draft at its November 4, 2021, meeting. Staff will continue to monitor State law to ensure that the City is in compliance. This may require additional amendments over time.

On an informational note, since 2019, 104 ADU/Jr. ADU building permits have been issued. Of those, 29 have received their final inspection and 21 are in the process of building plan review. The remaining 54 are somewhere in between likely awaiting contractor and materials availability. Lastly, the Community Development Department's ADU website is updated frequently as information becomes available.

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OPTIONS

1. The Council could make further amendments to the proposed ordinance.

2. The Council could not adopt amendments and continue to rely on the existing chapter.

FINANCIAL IMPACT:

The adoption of the proposed amendments will not result in a financial impact to the City.

GOAL ALIGNMENT: Increase Affordable Housing: Determine policies, projects and programs that will advance the effort to create new affordable housing in the City.

Attachments
Draft PGMC 23.80 Amendment
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1 ORDINANCE NO. 21-___

AN ORDINANCE OF THE CITY OF PACIFIC GROVE
AMENDING CHAPTER 23.80 OF THE PACIFIC

GROVE MUNICIPAL CODE REGARDING

ACCESSORY DWELLING UNITS
WHEREAS, Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) are a form of housing in the state of California and in the City of Pacific Grove (City); and
WHEREAS, the City has regulated ADUs since 1983 as set forth in Pacific Grove Municipal Code (PGMC) Chapter 23.80; and
WHEREAS, in 2017, in response to State law, the City Council amended Chapter 23.80 to reduce barriers, streamline approval, and further accommodate the development of ADUs; and
WHEREAS, the California State Legislature brought forward several bills in 2019 relating to the planning and permitting of ADUs and JADUs; and WHEREAS, in October 2019, Governor Newsom signed numerous housing bills related to the development and regulation of ADUs and JADUs, which requires the City to make certain additional amendments to PGMC Chapter 23.80; and WHEREAS, in 2020, in response to State law, the City Council further amended Chapter 23.80 to reduce barriers, streamline approval, and further accommodate the development of ADUs; and
WHEREAS, the new standards will facilitate the development of ADUs and JADUs within the City, and are necessary for maintaining orderly growth and development patterns; and
WHEREAS, additional new state laws took effect in December 2021 which continue to contain a clause providing that a local government's ordinance that does not comply with all provisions ofthe State law shall become null and void; and WHEREAS, the City has determined that it is appropriate to further amend PGMC Chapter 23.80 again to comply with State law and to provide a more streamlined process for the development of ADUs and JADUs in an effort to provide additional affordable housing opportunities; and
WHEREAS, notice of a public hearing before the Planning Commission was published in the Monterey County Weekly on October 20, 2021, posted at City Hall by October 22, 2021; and
WHEREAS, this Ordinance amends PGMC Section 23.80, entitled "Accessory Dwelling Units"; and
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8 WHEREAS, in the enactment of this Ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq.; and
WHEREAS, amendment of PGMC Section 23.80 pertaining to ADUs is statutorily exempt from review under the California Environmental Quality Act (CEQA) per Section 15282(h) of the CEQA Guidelines as it implements Government Code Sections 65852.1 and 65852.2 as set forth in Section 21080.17 of the Public Resources Code.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OFPACIFIC GROVE:

SECTION 1. The foregoing recitals are adopted as findings of the City Council as though set forth fully herein.

SECTION 2. Pacific Grove Municipal Code Chapter 23.80 shall be amended by deletion of all text shown in strikeout text (strikeout text) and the addition of all text shown in bold, italic, underscored text (bold, italic, underscored text), as follows:

Chapter 23.80

ACCESSORY DWELLING UNITS
Sections:

23.80.010 Purpose and intent.

23.80.020 Effect of nonconforming.

23.80.030 Definitions.

23.80.040 Approvals.

23.80.050 General ADU and JADU requirements.

23.80.060 Specific ADU and JADU requirements.

23.80.070 Fees and charges.

23.80.080 Nonconforming ADUs and discretionary approval.

23.80.010 Purpose and intent.

The purpose of this chapter is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code Sections 65852.2 and 65852.22, as may be amended.

23.80.020 Effect of nonconforming.

An ADU or JADU that conforms to the standards in this chapter will not be:
(a) Deemed to be inconsistent with the city’s general plan and zoning designation for the lot on which the ADU or JADU is located.
(b) Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.

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8 (c) Considered in the application of any local ordinance, policy, or program to limit residential growth.
(d) Required to correct a nonconforming zoning condition, as defined in PGMC

23.80.030. This does not prevent the city from enforcing compliance with applicable building standards in accordance with Health and Safety Code Section 17980.12.

23.80.030 Definitions.

As used in this chapter, terms are defined as follows:
“Accessory Dwelling Unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities and permanent provisions for living, sleeping, eating, cooking, sanitation, and connection to utilities for one or more persons and is located on a lot with a proposed or existing primary residence or multi-family residences and may include. An accessory dwelling unit also includes the following:
(1) An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code, as may be amended;
(2) A manufactured home, as defined by Section 18007 of the California Health and Safety Code, as may be amended.
(1) Detached: the unit is separated from the primary structure or structures. (2) Attached: the unit is attached to the primary structure. (3) Converted Existing Space: space (e.g. bedroom, attached garage, storage area, or an accessory structure) on the lot of primary residence(s) that is converted into an independent living unit.
(4) Manufactured Home.
(5) Efficiency Unit.
“Accessory structure” means a building or structure that is incidental to that of the main building on the same lot.
“Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.
“Efficiency kitchen Unit”means a kitchen unit that includes each of the following:

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8 (1) A cooking facility with appliances Compliance with Section 17958.1 Health & Safety Code, as may be amended;
(2) A food preparation counter or counters that are adequate for the size of the unit; and
(3) Food storage cabinets that are adequate for the size of the unit. “Junior accessory dwelling unit” or “JADU” means a residential unit that:
(1) Is no more than 500 square feet in size;
(2) Is contained entirely within an existing or proposed single-family structure; (3) Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure; and (4) Includes an efficiency kitchen unit, as defined in this chapter. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. “Manufactured Home” means a unit as defined by Section 18007 of the California Health and Safety Code, as may be amended.
“Ministerial approval” means approval related to a building permit that does not require discretionary action or a hearing.
“Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.
“Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
“Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
“Public transit” means a location, including, but not limited to, any a fixed-route (bus stop or other transit stop) with transportation that charges set fees, runs on fixed routes, and is available to the public.
“Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

23.80.040 Approvals.

The following approvals apply to ADUs and JADUs under this section:

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8 (a) Building Permit Only Ministerial Approval. If an ADU or JADU An ADU or JADU which complies with each of the general requirements in PGMC

23.80.050, it is allowed with only a building permit and shall not require discretionary planning approval. The ADU/JADU project shall be reviewed in a ministerial and administrative manner, limited to only considering the project’s compliance with the applicable objective standards. (1) Converted on Single-Family Lot. Only one One ADU and one JADU on a lot with a proposed or existing single-family dwelling. on it, where the ADU or JADU:
(A) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress;
(B) Has exterior access that is independent of that for the single-family dwelling; and
(C) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.
(2) Converted on a Single-Family Lot:
(A) Created within the existing space of an accessory structure. (B) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building codes.
(C) An ADU created within an existing accessory structure may expand an additional 150 sq. ft. if expansion is limited to accommodating ingress and egress only.
(3) Attached ADU on Single-Family Lot:
(A) Shall not exceed 50% of the square footage of proposed or existing building, or 1,000 sq. ft., whichever is greater.
(B) Setbacks same as (2)(B) above.
(24) Limited Detached on Single-Family Lot. One detached, new-construction ADU on a lot with a proposed or existing single-family dwelling (in addition PG CC 2/2/22
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8 to any JADU that might otherwise be established on the lot under subsection (a)(1) of this section), if the detached ADU satisfies the following limitations:
(A) The side and rear yard setbacks are at least three (3) feet; (B) The total maximum floor area is up to 1,000 1,200 square feet; and (C) The peak height above grade is 16 feet or less.
(35) Converted on Multifamily Lot. Multiple ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. At least one converted ADU is allowed within an existing multifamily dwelling, or up to 25 percent of the existing multifamily dwelling units may each have a converted ADU under this subsection. (46) Limited Detached on Multi-family Lot. No more than two detached ADUs on a lot that has an existing multifamily dwelling if each detached ADU satisfies the following limitations:
(A) The side and rear yard setbacks are at least three feet (corner and exterior setbacks for the zoning district apply); and
(B) The total floor area is 800 square feet or smaller. (7) Junior Accessory Dwelling Unit (JADU):
(A) Constructed entirely within an existing or proposed single-family structure.
(B)Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure. (C)Includes an efficiency unit as defined in this chapter (b) Process and Timing.
(1) An ADU or JADU permit is considered and approved ministerially, without discretionary review or a hearing, if it meets the minimum standards above.
(2) The City must act on an application to create an ADU or JADU within 60 days from the date that the City receives a completed application, unless either:

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8 (A) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay; or
(B) In the case of a JADU and the application to create a JADU is submitted with a permit application to create a new single-family dwelling on the lot, the City may delay acting on the permit application for the JADU until the City acts on the permit application to create the new single-family dwelling, but the application to create the JADU will still be considered ministerially without discretionary review or a hearing.

23.80.050 General ADU and JADU requirements.

The following requirements apply to all ADUs and JADUs that are approved under PGMC 23.80.040(a):
(a) Zoning. An ADU or JADU subject only to a building permit under PGMC

23.80.040(a) may be created on a lot in any zone that allows residential uses. (b) Fire Sprinklers. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.
(c) Rental Term. An ADU or JADU may be rented under the following conditions:
(1) No ADU or JADU may be rented for a term that is less than 30 days; and
(2) JADU – owner must reside in either the primary residence or the JADU per Government Code 65852.22, Subd. (a)(2), as may be amended.
(d) No Separate Conveyance. An ADU or JADU may be rented, but No ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot) unless allowed by Gov. Code, § 65852.26 (Qualified nonprofit corporation conveyance).
(e) Septic System. If the ADU or JADU will connect to an on-site water-treatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.
(f) Each ADU or JADU shall have a separate address from the single or multifamily dwelling on the property.

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8 (g) Each ADU or JADU shall have a separate exterior access independent of the existing or proposed single or multi-family dwelling.

23.80.060 Specific ADU and JADU requirements.
(a) Size.
(1) The total maximum floor area is may be up to 1,000 1,200 square feet. (2) The minimum size is 150 square feet to include efficiency unit. ADUs that meet these requirements shall be approved ministerially. (3) An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling, but may not exceed the size in subsection (a)(1) of this section A JADU shall not exceed 500 square feet.
(b) Height.
(1) A single-story, attached or detached ADU may not exceed 16 feet in height above grade, measured to the peak of the structure. (2) A second story or two-story attached ADU addition may be permitted subject to an architectural permit and may not exceed the height of the zoning district.
(c) Passageway. No passageway, as defined in PGMC 23.80.030, is required for an ADU.
(d) Parking.
(1) Generally. Off-street parking is not required for an ADU or JADU located less than within one-half mile walking distance of public transit. If a property is not within one-half mile walking distance to a transit stop, one off-street parking space shall be provided and may be located in setback areas or as tandem parking, as defined in PGMC 23.80.030.
(2) No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. (3) No parking is required for a JADU.
(e) Architectural Requirements.

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8 (1) Where the development of an ADU includes exterior alterations, additions, or construction of new structure, the ADU shall may, where feasible, incorporate the same or similar architectural features, building materials, including window style and materials, and roof slopes as the main dwelling unit or dwellings located on the subject property. adjacent properties. (f) Landscape Requirements. The site plan shall provide open space and landscaping that are useful for both the ADU and the principal single-family dwelling. Landscaping shall provide for the privacy and screening of adjacent properties.
(gf ) Historical Protections. Historic review shall be required for properties listed on the California Register of Historic Resources.
(g) Tree Removal and Pruning. Tree permits for the removal and/or pruning of permit trees shall be required per PGMC Title 12, but shall in no way prohibit the development of a minimum 800 sq. ft. ADU.
(1) Applicants are encouraged to locate and design ADU and/or JADU additions so that the retention of native trees (Gowen cypress, Coast live oak, Monterey cypress, Shore pine, Torrey pine, and Monterey pine) can be accommodated whenever possible.
(2) All trees in or within 100 yards of designated Monarch sanctuaries. (Pruning and removal of trees within the Monarch sanctuaries is prohibited between October 1 and May 1).
(3) A Coastal Development Permit (CDP) may be required for tree removal in the Coastal zone.

23.80.070 Fees and charges.
(a) Impact Fees.
(1) No impact fee is required for an ADU or JADU that is less than 750 square feet in size.
(2) Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit (e.g., the floor area of the primary dwelling, divided by the floor area of the ADU, times the typical fee amount charged for a new dwelling). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.

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8 (b) Utility Fees. Converted ADUs and JADUs on a single-family lot, created under PGMC 23.80.040(a)(1), are not required to have a new or separate utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or capacity charge required unless the ADU or JADU is constructed with a new single-family home.

23.80.080 Nonconforming ADUs and discretionary approval.

Any proposed ADU or JADU that does not conform to the objective standards set forth in this chapter may be allowed by the city with a use permit, in accordance with the other provisions of this title.

SECTION 3. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement effect this Ordinance.

SECTION 4. Severability. If any provision, section, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 5. In accord with Article 15 of the City Charter, this ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE THIS ______ day of _________, 2021, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
_______________________
BILL PEAKE, Mayor
ATTEST DATED: ______________________
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8 _______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
____________________________
DAVID C. LAREDO, City Attorney
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Agenda No. 13 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Laurel O'Halloran, Associate Planner
MEETING DATE: February 2, 2022
SUBJECT: Promissory Agreement for Payment of Water Entitlement for the PG Hotel, formerly known as the Hotel Durrell This item was continued from the January 19, 2022 meeting
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve a promissory agreement for water entitlement for the Pacific Grove (PG) Hotel, formerly known as the Hotel Durrell, to be located at 157 Grand Avenue (APN 006-173-002)

DISCUSSION
The Pacific Grove Municipal Code (PGMC) sets forth water distribution rules in Title 11. Chapter 11.68 governs Water Entitlement processes by which potable water made available by funding and operation of the Pacific Grove Local Water Project (PGLWP) are available for sale. The City began sales of entitlement water in July 2019.

Commercial projects purchasing water entitlement include the PG Hotel located at 157 Grand Avenue and the mixed-use project at 520 Lighthouse Ave. Water has been distributed by the MPWMD for the 520 Lighthouse mixed-use project. Final occupancy will not be granted until the promissory agreement is paid in full.

At the September 1, 2021, City Council meeting the City Council adopted Ordinance 21-023 to approve a code change to 11.68.040 Entitlement Water to enable Promissory Agreements associated with payment of entitlement water sales. Per PGMC 11.68.040 (c), City Council approval shall be required for the City to enter into any promissory agreement related to payment for entitlement water. The maximum amount payable pursuant to the promissory agreement shall not exceed 90 percent of the purchase price with a 10 percent deposit required at the time of the execution of the agreement.

The PG Hotel is requesting Council approval for a Promissory Agreement to defer the payment of water entitlement, due to the scale of the project. The opportunity to stage costs can promote completion of projects that rely on construction loan financing. The obligation to pay water entitlement costs will be secured by the City’s ability to withhold final occupancy permits. The 8.816 acre-feet requested will cost $1,542,800.00 with the 30% discount recently reauthorized by the City Council and in effect until June 2022. The required 10% deposit in the amount of $154,280.00 will need to be paid to execute the Promissory Agreement.

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OPTIONS

1. Do not approve Promissory Agreement.

2. Provide an alternative action.

FINANCIAL IMPACT:

The issuance of a Promissory Agreement is neither a gift of water nor of public funds. The Agreement simply allows the developer of a large project, as defined in PGMC 11.68.040, to leverage financing so that the large financial outlay associated with the purchase of water can be deferred until the time of final inspection and certificate of occupancy. This is a tool that can help investment in the City and increase revenues. Resulting from increased sales and property tax. Conversely, the City will not “lose” money if the applicant defaults on the Agreement as no the Agreement does not constitute a loan and the City will retain the 10% deposit.

GOAL ALIGNMENT: Facilitate Local Business Recovery: Review and revise existing policies and programs and develop a strategic plan to better serve existing businesses.

Attachments
Draft Promissory Agreement
Draft Deed of Trust
Certificates of Good Standing
Water Release Form
Water Subscription Agreement
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1 PROMISSORY AGREEMENT
This Promissory Note, (“NOTE”) dated for reference purposes as of ______________ (“Effective Date”), is made in consideration of the mutual covenants and conditions set forth below, by which the Parties agree as follows:

The CITY OF PACIFIC GROVE (CITY)
hereby promises to sell, transfer and convey to

ROHNERT PARK RI LP, BELVNUS, LLC,
TRAVEL INN ASSOCIATES, LP, and MOHAMMAD REZAI
(Collectively, BUYER)
Water Entitlement in the amount totaling 8.816 AF which is the subject of this NOTE under the terms and conditions set forth below.

FOR VALUE RECEIVED, THE UNDERSIGNED, JOINTLY AND SEVERALLY, PROMISES:

1. BUYER is the owner of record of the property commonly known as 157 Grand Avenue, APN 006-173-002 (the Property). Title of the Property is taken as follows:

ROHNERT PARK RI LP. A CALIFORNIA LIMITED PARTNERSHIP
AS TO AN UNDIVIDED 62.0% INTEREST; BELVNUS, LLC, A

CALIFORNIA LIMITED LIABILITY COMPANY AS TO AN
UNDIVIDED 21.0% INTEREST; TRAVEL INN ASSOCIATES, LP, A

CALIFORNIA LIMITED PARTNERSHIP AS TO AN UNDIVIDED

7.0% INTEREST AND MOHAMMAD REZAI, A MARRIED MAN AS

HIS SOLE AND SEPARATE PROPERTY AS TO AN UNDIVIDED

10.0% INTEREST

2. This NOTE evidences the obligation of BUYER to CITY for repayment of funds under a Water Subscription Agreement between BUYER and CITY. The terms and covenants of the Water Subscription Agreement are incorporated in this NOTE by reference, as if set forth in its entirety.

3. The Water Entitlement subject to this NOTE shall be used solely upon the Property and shall be subject to the conditions contained herein and in Water Subscription Agreement.

4. PRINCIPAL: BUYER promises to pay CITY the principal sum of $1,542,800 calculated at the rate of $175,000 per Acre Foot.

PAYMENT PROVISIONS: This Note shall be repaid by an initial down payment of $154,280.00 representing ten percent (10%) of the NOTE’s Principal. This down payment PG CC 2/2/22
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2 shall be due upon execution of this NOTE. Payment of the remaining balance shall be deferred until BUYER submits a Notice of Completion to CITY. A Final Inspection shall be dependent on full and complete satisfaction of this NOTE and release of the Water Entitlement for use by BUYER on the property At any time while not in default under this NOTE, BUYER may pay the outstanding balance then owing under this NOTE to CITY, without penalty.

5. INTEREST: This NOTE shall accrue interest at the rate of zero (0) percent per annum provided the BUYER is not in default. Should the BUYER be in default as to the terms of the NOTE, interest on the unpaid principal of this NOTE shall accrue interest which shall be payable at the rate of ten (10) percent per annum.

6. This NOTE is secured by a Deed of Trust recorded in the office of the County Recorder of Monterey County (Trust Deed). The Trust Deed securing this NOTE provides that CITY may at its option, declare all funds secured by the Trust Deed immediately due and payable, if any interest in the real property is sold, transferred or conveyed to any person, whether voluntarily or involuntarily. The Trust Deed further provides that if BUYER does not comply with the requirements of the Water Subscription Agreement and fails to come into compliance with the Agreement within ten (10) days after CITY’s written notice to BUYER of such failure, CITY may at its option, declare all funds secured by the Trust Deed immediately due and payable.

7. To the extent applicable, BUYER shall maintain its corporate existence in good standing in California. BUYER shall maintain in force all licenses, approvals, and agreements, the loss of which could have a material adverse effect as to performance on this NOTE. BUYER shall provide to CITY a Certificate of Good Standing or Certificate of Existence from the appropriate authority, submitted within ten days upon request by CITY, certifying that BUYER is in good standing as a corporation or as an LLC, as may be applicable, in the State of California.

8. DEFAULT: All sums remaining unpaid under this NOTE shall become immediately due and payable, at CITY’s option, upon ten (10) day’s calendar notice without further demand, or presentment, and regardless of any prior forbearance, on the occurrence of any of the following events:
a. BUYER’s failure to make any payment when due under the terms of this NOTE; b. The filing of a petition in bankruptcy by, or the initiation of any proceeding under any bankruptcy or insolvency laws against, the BUYER or any present or future guarantor of this NOTE;
c. BUYER’s or any present or future guarantor’s default under any agreement or instrument executed in connection with this NOTE; or
d. The revocation of any guaranty of this NOTE by any guarantor.

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3 9. POST DEFAULT INTEREST: Upon default, interest on the unpaid principal balance of this NOTE is payable at the rate of ten (10) percent per annum until this NOTE is paid in full, or until the date of Water Entitlement revocation occurs as provided below.

10. PAYMENT OF NOTE COSTS AND EXPENSES BY CITY: If the CITY has required the BUYER or any other holder of this NOTE to pay immediately in full as described above, CITY shall have the right to be reimbursed by BUYER for all of its costs and expenses to the extent not prohibited by applicable law, including but not limited to, outside collection agencies and reasonable attorney’s fees.

11. REVOCATION OF WATER ENTITLEMENT UPON DEFAULT: Upon any event of default referenced above, the CITY at CITY’s option, upon ten (10) day’s calendar notice without further notice, demand, or presentment, and regardless of any prior forbearance, may revoke in full or in part the increment of Water Entitlement provided in the Water Subscription Agreement referenced above, in proportion to remaining sums (not to include interest, costs or fees) that are unpaid by the BUYER.

12. General Provisions:
a. ATTORNEYS’ FEES AND COSTS: If any action is commenced which arises out of or related to this Promissory Note, the prevailing party shall be entitled to recover from the other party such sums as the court may adjudge to be reasonable attorneys’ fees, expert fees, and expenditures in the action, in addition to costs and expenditures otherwise allowed by law. Recovery of these fees or expenses shall be as additional costs awarded to the prevailing party and shall not require initiation of a separate legal proceeding. In any matter arising out of or relating to the bankruptcy of BUYER, BUYER agrees to pay all of CITY’s costs and expenditures, including attorneys’ fees and expert fees, which may be incurred in enforcing or protecting CITY’s rights or interests. b. NON-WAIVER: No failure or delay by CITY in exercising CITY’s rights under this NOTE shall be considered a waiver of such rights.
c. NOTICE: Any notices required or permitted to be given hereunder shall be given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, (c) by facsimile, or (d) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and such notices shall be made to the Parties at the addresses listed below.
d. WAIVER: Any waiver of any terms and conditions of this NOTE must be in writing and signed by the CITY and the BUYER. A waiver of any of the terms and conditions shall not be construed as a waiver of any other terms or conditions in this NOTE. e. COMPLIANCE WITH APPLICABLE LAW: The Parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement. f. GOVERNING LAW. This NOTE shall be governed by and interpreted under the laws of the State of California. Venue for any action shall be in the County of Monterey.

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4 g. COUNTERPARTS. This NOTE may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same NOTE.
h. AUTHORITY. Any individual executing this NOTE on behalf of the CITY or the BUYER represents and warrants hereby that he or she has the requisite authority to enter into this NOTE on behalf of such Party and bind the Party to the terms and conditions of this NOTE.
i. INTEGRATION. This NOTE including the exhibits and any documents incorporated by reference, represent the entire agreement between the CITY and the BUYER with respect to the subject matter of this NOTE and shall supersede all prior negotiations, representations, or agreements, either written or oral, between CITY and BUYER as of the effective date which is the date that the CITY signs the NOTE. j. SEVERABILITY. If any of the provisions contained in the NOTE are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability and indemnities shall survive termination of the NOTE for any cause. If a part of this NOTE is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this NOTE is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

13. EXECUTION: The BUYER executes this NOTE as a principal and not as a surety. If there is more than one BUYER, each BUYER shall be jointly and severally liable under this NOTE.
[signature page to follow]
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IN WITNESS WHEREOF, CITY and BUYER have executed this Agreement as of the day and year written below.

CITY OF PACIFIC GROVE BUYER
By:

City Manager Name
Date:

By: (Signature of Chair, President, or
Vice-President) *
By:

Mayor
Date:
(Printed Name and Title)
Date:

Attachment: Water Subscription Agreement
Certificate of Good Standing
Deed of Trust
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Water Promissory Note
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RECORDING REQUESTED BY

CITY OF PACIFIC GROVE

AND WHEN RECORDED MAIL TO
City of Pacific Grove
Attn: CDD
300 Forest Avenue
Pacific Grove, CA 93950
No fee document pursuant to
Government Code Section 27383

CITY OF PACIFIC GROVE

DEED OF TRUST

WITH ASSIGNMENT OF RENTS AS ADDITIONAL SECURITY
This DEED OF TRUST, made this ___________, 2022, between Rohnert Park RI LP, Belvnus, LLC, Travel Inn Associates, LP, and Mohammad Rezai (herein collectively called TRUSTOR), whose property is located at 157 Grand Avenue, Pacific Grove, California 93950, Old Republic Title Company, a California corporation (herein called TRUSTEE), and the City of Pacific Grove (herein called

BENEFICIARY),

TRUSTOR IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN TRUST, WITH POWER OF SALE, AND RIGHT OF ENTRY AND POSSESSION that Property in the City of Pacific Grove, County of Monterey, State of California, described as:

See legal description attached as EXHIBIT “A” and incorporated herein by reference, together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon BENEFICIARY to collect and apply such rents, issues and profits.

For the Purpose of Securing (1) payment of the sum One Million, Five Hundred Forty-Two Thousand Eight Hundred Dollars ($ 1,542,800) with interest thereon according to the terms of a Promissory Note herewith made by TRUSTOR, payable to order of BENEFICIARY, and extensions or renewals thereof; (2) the performance of each agreement of TRUSTOR incorporated by reference or contained herein or reciting it is so secured; (3) payment of additional sums and interest thereon which may hereafter be loaned to TRUSTOR, or its successors or assigns, when evidenced by a promissory note reciting that it is secured by this Deed of Trust.

To protect the security of this Deed of Trust, and with respect to the Property above described, TRUSTOR expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the Agreements, Terms and Provisions set forth in the attached EXHIBIT “B,” incorporated herein by reference.

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It is mutually agreed that all of the Agreements, Terms and Provisions set forth in EXHIBIT “B” shall inure to and bind the parties hereto, with respect to the Property above described.

The undersigned TRUSTOR requests that a copy of any notice of default and any notice of sale hereunder be mailed to them at their address hereinbefore set forth.

Date: ______________
By: ______________________________________________

ACKNOWLEDGEMENTS
State of California
County of ___________________________
On ______________________________ before me, ______________________________, a Notary Public personally appeared _________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

Signature_________________________________________ (seal) A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

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EXHIBIT “A”

LEGAL DESCRIPTION
APN: 006-173-002
LEGAL DESCRIPTION: The land referred to is situated in the County of Monterey, City of Pacific Grove, State of California, and is described as follows:

PARCEL ONE:

Parcel 2 as shown on Parcel Map recorded in the Office of the County Recorder of Monterey County, State of
California, on August 19, 2015 in Book 23, Page 48 of Parcel Maps.

PARCEL TWO:
25 foot reciprocal vehicle access easement over a portion of Parcel 1, as shown on the above referenced Parcel Map.

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EXHIBIT “B”

AGREEMENTS, TERMS, AND PROVISIONS
The following is incorporated by reference in the foregoing Deed of Trust as being a part thereof as if set forth at length therein.

A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
(1) To keep said property in good condition and repair; not to remove or demolish any building thereon without prior written City approval; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer, or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide TRUSTEE 90-days’ advance written notice of any change in ownership, management, or control of said property; to provide 90-days advance written notice of any change or revocation to the “Tenant In Common Agreement” Effective March 12th, 2020 regarding said property. (3) To provide, maintain and deliver to BENEFICIARY fire insurance satisfactory to and with loss payable to BENEFICIARY. The amount collected under any fire or other insurance policy may be applied by BENEFICIARY upon any indebtedness secured hereby and in such order as BENEFICIARY may determine, or at option of BENEFICIARY the entire amount so collected or any part thereof may be released to TRUSTOR. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (4) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of BENEFICIARY or TRUSTEE; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any action or proceeding in which BENEFICIARY or TRUSTEES may appear, and in any suit brought by BENEFICIARY to foreclose this Deed of Trust.
(5) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust.

Should TRUSTOR fail to make any payment or to do any act as herein provided, then BENEFICIARY or TRUSTEE, but without obligation so to do and without notice to or demand upon TRUSTOR and without releasing TRUSTOR from any obligation hereof, may, make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, BENEFICIARY or TRUSTEE being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of BENEFICIARY or TRUSTEE; pay, purchase, contest or compromise any encumbrance, charge, or lien PG CC 2/2/22
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which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. (6) To pay immediately and without demand all sums so expended by BENEFICIARY or TRUSTEE, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby, any amount demanded by the BENEFICIARY not to exceed the maximum allowed by law at the time when said statement is demanded.

B. IT IS MUTUALLY AGREED:
(1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to BENEFICIARY who may apply or release such moneys received by it in the same manner and with the same effect as above provided for regarding disposition of proceeds of fire or other insurance. (2) That by accepting payment of any sum secured hereby after its due date, BENEFICIARY does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay.
(3) That at any time or from time to time, without liability therefor and without notice, upon written request of BENEFICIARY and presentation of this Deed of Trust and said Promissory Note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, TRUSTEE may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof.
(4) That upon written request of BENEFICIARY stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Promissory Note to TRUSTEE for cancellation and retention or other disposition as TRUSTEE in its sole discretion may choose and upon payment of its fees, TRUSTEE shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.

The Grantee in such reconveyance may be described as “the person or persons legally entitled thereto.” (5) That as additional security, TRUSTOR hereby gives to and confers upon BENEFICIARY the right, power and authority, during the continuance of this Trust, to collect the rents, issues and profits of said property, reserving unto TRUSTOR the right, prior to any default by TRUSTOR in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, BENEFICIARY may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in its own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as BENEFICIARY may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.

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(6) That upon default by TRUSTOR in payment of any indebtedness secured hereby or in performance of any agreement hereunder, BENEFICIARY may declare all sums secured hereby immediately due and payable by delivery to TRUSTEE of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice TRUSTEE shall cause to be filed for record. BENEFICIARY also shall deposit with TRUSTEE this Deed of Trust, said Promissory Note and all documents evidencing expenditures secured hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, TRUSTEE, without demand on TRUSTOR, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. TRUSTEE may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. TRUSTEE shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including TRUSTOR, TRUSTEE, or BENEFICIARY as hereinafter defined, may purchase at such sale.

After deducting all costs, fees and expenses of TRUSTEE and of this Trust, including cost of evidence of title in connection with sale, TRUSTEE shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto.
(7) BENEFICIARY, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any TRUSTEE named herein or acting hereunder, which instrument, executed by the BENEFICIARY and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the TRUSTEE predecessor, succeed to all its title, estate, rights, powers and duties.

Said instrument must contain the name of the original TRUSTOR, TRUSTEE and BENEFICIARY hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term BENEFICIARY shall mean the owner and holder, including pledgees of the Promissory Note secured hereby, whether or not named as BENEFICIARY herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or the neuter, and the singular number includes the plural.
(9) The TRUSTEE accepts this Trust when this Deed of Trust, duty executed and acknowledged, is made a public record as provided by law. TRUSTEE shall notify any party hereto of pending sale under any other Deed of Trust.

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MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

NON-RESIDENTIAL WATER RELEASE FORM AND WATER PERMIT APPLICATION NOTE: When approved and signed by the Jurisdiction this form must be submitted with final and complete Construction Plans to:
5 Harris Court, Bldg. G~ Monterey. CA 93940 ~(831) 6 58-5601 ~ www.mpwrnd.net Completing the Water Release Form & Water Permit Application does not guarantee issuance of a Water Permit.

ALL SPACES BELOW MUST BE COMPLETED OR THE APPLICATION MAY NOT BE PROCESSED. (Pkase print fu-mly)

1. OWNERSIIlPINFORMATION: 2. AGENT/REPRESENTATIVE INFORMATION:

Rohnert Park RD LP et al Name: ______________________ _ Name: Robert Leach Daytime telephone: _
5 1__
0 _853-__ 21_
00 ______________ _ Daytime telephone: ___
91_6
_
7 _98-364 __
9 __________ _
Mailing Address: 1260 Ml.flras Ave. Monterey CA 93960
E-Mail Address: [email protected]
Mailing Address: 2347 Loch Way El D«ado Hlls, CA 95762

3. PROPERTY INFORMATION:

E-Mail Address: [email protected]
Year building was constructed? ______ _ Existing Square-footage ----'1_7'--', 6---5 ___ 0 __ _ Proposed Square-footage __ 9_0-'---,
8_7_3 ____
_ Address: 157 Grand Ave, Pacific Grove, CA Assessor Parcel Number 006-173=002 Water Company serving parcel: __________ Is a water meter needed? (Circle one) YES/ NO (How Many _____ _, NOTE: Separate water meters are required for each User. Cal-AM Account Number: _____________ _

4. Type of Non-Residential Use! 102 room hotel with subterranean parking and on site restaurant and Day Spa S. Project Description (Be thorough and detailed): I 02 room hotel with approximately 3 776 Sf restaurant of approximately 40 seats interior and 20 seats exterior day spa area of 865 SF and a fitness center of approximately 760 Sf Any change in Use/Expansion of Use requires a Water Permit. Deed Restriction Reguired for all Water Permjts Mandatory Retrofit Upon Expansion of Use, Existing Group I (AU Uses !ldfza.project) Post Project Group I (AU Uses !JlkLprojed) Users in this category are low watsr uses where water is primarily used/or employee hygiene and minima/janitorial usu. Examples are shown be/aw.

Typeoru,e
Ai.to Uses
Bank
Dry Cleaner (No Onsite Laundry)
Gym
Nail Salm
Office
Retail
Supermarl<.et
Warehouse
Tasting Room (ABC Type 2)
SqFt F'llctor
X 0.00007
X 0.00007
X 0.00007
X 0.00007
X 0.00007
X 0.00007
17,650 X 0.00007

0.00007

0.00007
X 0.00007
Capadty
_im_
Typeol'Use
AlioUses
Bank
Dry Cleaner (No Onsite Laundry)
Gym
Nail Salon (Day Spa) Office H<UI admin
Retail
Supemu,rk,t
Warehoose
Tasting Rocm (ABC Type 2)
SqFt Fact..-
x 0.00007
X 0.00007 ____.2@._ X
X 0.00007 __J!Q__ X

0.00007

0.00007
__ 9_19_ X 0.00007
X 0.00007
X 0.00007
X 0.00007
X 0.00007
Capacity
____.!Ll!.l.ll_

0.06055

0.06433
Existing Group II (AU Uses ufJluprojed) Post Project Group II (AU Uses fllw:.proj,d) Users in this category prepare and/or sell food/beverages that are primarily provided to customers inion disposable tableware. Food with high moisture content and liquid food may be served on reusable tableware. Glassware may be used to serve b�ages. Users in this category are not.fall-service restaurants.

TypeofU5e SqFt Factor Capacity Typeol'Use SqFt Factor Capacity Bakery X 0.0002 Bak,ry X 0.0002
Bar (ABC License-Indoor/Oltdoor) X 0.0002 Bar(ABC License-Indoon'Outdoor) X 0.0002 Catering X 0.0002 c .. ering X 0.0002
Coffee House X 0.0002 Coffee House X 0.0002
Deli X 0.0002 Deli X 0.0002
Jee Cream ShoJ>'Sandwich Shop X 0.0002 Ice Cream Shop'Sandwich Shop X 0.0002 Pizza X 0.0002 Pizza X 0.0002
Existing Group Ill (All Uses before project) Post Project Group III (AU Uses 9/!e_projed) Type oruse Quanttty/SF Factor Capadty Type of Use QuanUty/SF F'llclDr Capacity Assisted Living (more than 6 beds) x 0.085 bed
Dry Cleaner (with Onsite Laundry) x 0.0002
Beaay Shop /Dog Grooming x 0.0567 stalitwtDonnitory
Laundromat
ChiJdlDependent Adult Day Care
X
x
x 0.12

0.020

0.00n
machine
bed
person-
=-== Mctel/Hotel/Bed &Breakfast x 0.064 room =
w/Large Tub (add to room) ___ x 0.03 tub
Plant
lrrigatedarea(wilhin
Nllll!ety
w/Each Showerhead
10 ft. ofbldg.)
beyond one ___ x
x
x

0.02 0.00009
ETWU'
per head
sf
= == Public Toilet x 0.058 toilet
Public Urinal x 0.036 urinal
Zero Wl!l..er ConsumJtion Urinal No value
Recreal.ional Vehicle (RV) Hookup ___ x 0.064
Restaurant (lncludes Bar/Brewpub Se .. )_ 42 _ x 0.02 seat 0.84 Ext_ Seats above Allowance x 0.01 seat
Ext. SealS within Allowance x No value
Restaurart(2il-HourandFastFood) x 0.038 seat
School/Chun:h x 0.00007 sf
Self-:lro,ge X 0.0008 uni!
Skilled Nursing/Alzheimer's Care x 0.120 bed
Spa x 0.05 8Jlll
SwirnmingPool(..,.100..-•orpa;m,o,)== x 0.02 sf
The� X 0.0012 seal
EXISTING Capacity TOT AL -�
Group IV -ModHled Uses
Assiated Livilll (more than 6 beds) x 0.085 bed
Dry Cleaner (with Onsite Laundry) x 0.0002
Bemy Shop/Dog Grnoming x 0.0567 stimon
Child/Dependent Adult Day care x o.oon child
Damil<lly x 0.020 bed
Laundranst x 0.12 machine
Motel/Hotel/Bed & Breakfast 102 x 0.064 room
w/LBige Tub(addtoroom) __ 1_3_ x 0.03tub
w/EachShowerlleadbeyondone __ x 0.02 perhead
lrrig,.ed area (within 10 ft. of bldg.) x ETWU
Plant Nunery x 0.00009 sf
Public Toilet __ 6_ x 0.058 toilet
Public Urinal x 0.036 urinal
Zero Wat.er CCllSUlllption Urinal no value
Recreimonal Vehicle (RV) Hooknp ___ x 0.064
Restaurant (lncludes Badllrewpub Se")____li!L_ x 0.02 seat Ext. Seas above Allowance 20 x 0.01 seat
Ext. Seats within Allow..-.:e --- x No Value
Resteurari (211-llo!D' and Fast Food) x 0.038 seat
SchooVClmn:h x 0.00007 sf
Self-Slorage x O .0008 uni!
stilled Nunring/Alzheimer's Care x 0.120 bed
Spa __ I_ x 0.05 8J)II
SwirnmingPool(eadi.lC<hq-ftofpoolsi.rlace) x 0.02 sf
Theater --- x 0.0012 seat
PRO�DCapaclty TOTAL
Reduced Waler Capacity and have received a Water Use Credit or modified/actor from the Dutrict New/Refurtjsbed Landscape-Refer to Phtrlct Rnle 1421 "Water Effldent J,and:scane R<Xmlrements" -3.-2-­
__ 0._2 __
_____ML_
- �
PROPOSED WATER CAPACITY (DIFFERENCE BETWEEN EXISTING CAPACITY -POST PROJECT CAPACITY) _ 8,816 _ NOTE: Water Facton an subject to change by Board action. (Jurisdiction mus/ authorize waler for positive nsuh) In completing this Water Release Fonn, the undersigned (as owner or as agent for the property owner) acknowledges that any discrepancy or mistake may cause rejection or delay in processing of the application. Additionally, the t.mdersigned is responsible for accurately acco� for the type ofNon-Rosidential use. �es of Use or Expansions completed without a Water Pemtit may result in additional fees and penalties, the imposition of a lien on the property, and the deduction of water frcrn 1he local Jurisdiction's Allocation.

I certify, under penalty of perjury, that the Information provided on this Water Release Form & Permit Application is to my knowledge correct, and the info accura lyre cts the changes presently planned for this property.

Date
1/21/22

I AUTHORIZATION FOR WATER PERMIT -JURISDICTION USE ONLY I __ AF Para/ta Allocation __ AF Public Credits __ AF Pre-Para/ta Credits __ WDS (Private Well) __ No water needed __ Entitlement j Notes: _______________ Authorb:ed by: ____________ Date: ___________ _ ' See MPWMP Rule 142 1 This form expires on the same date as any discretionary or building fH'rmit issued for this Proj'1ct by the Jurtadiclion PG CC 2/2/22 120 of 150
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City of Pacific Grove
Water Subscription Agreement
Aasdfd

CITY OF PACIFIC GROVE
300 FOREST AVENUE
PACIFIC GROVE, CALIFORNIA 93950

WATER SUBSCRIPTION AGREEMENT
The undersigned (“Subscriber”) understands the CITY OF PACIFIC GROVE, a Charter City of the State of California (“City”), has offered increments of water for sale (the “Available Water Entitlement”) that derive from the Water Entitlement granted to the City by the Monterey Peninsula Water Management District (“MPWMD”) in accord with MPWMD Rule 23.9, “City of Pacific Grove Water Entitlement,” attached as Exhibit 1 hereto. Rule 23.9 was adopted by the MPWMD Board of Directors on February 23, 2016. The Available Water Entitlement is evidenced by Water Use Permits and will, to the extent transferred, have the rights, privileges, and preferences as set forth in the Rule.

Sale, distribution and use of the Available Water Entitlement shall conform to the interpretation of the State Water Resources Control Board (“SWRCB”) set forth in the April 19, 2019 joint letter of Erik Ekdahl, Deputy Director, Division of Water Rights, SWRCB, and Leslie S. Laudon, Deputy Director, Division of Financial Assistance, SWRCB (“April 19, 2019 Letter”), a copy of which is attached as Exhibit 2 hereto.

Sale, distribution and use of available water shall also conform to the Pacific Grove Water Distribution Regulations set forth in Pacific Grove Municipal Code (PGMC) Chapter 11.68, a copy of which is attached as Exhibit 3 hereto.

The Subscriber understands the offering is made only to holders of record of fee title to property located in the City of Pacific Grove.

1. Subscription.

Subject to terms, conditions and limits of this Water Subscription Agreement (“Agreement”), Subscriber commits to acquire and subscribes to the quantity (“Entitlement Increment”) of Available Water Entitlement shown on Appendix A to this Agreement and pay the price of $ 250,000 per acre foot for the Entitlement Increment. (This price may be temporarily adjusted by an applicable discount if authorized by the City Council.) The Entitlement Increment shall be dedicated to the specific real property described in Appendix B to this Agreement (“Property”).

The purchase price is payable as described in Section 4 of this Agreement. The City has set the minimum subscription shall be one-hundredth (.01) of an acre foot and in minimum increments of one-hundredth (one acre foot is equal to 100 fixture units under the MPWMD’s methodology).

Subscriber acknowledges the City has the right, in its sole discretion, to reduce or even reject in its entirety the amount of Available Water Entitlement to be sold pursuant to this Agreement.

2. Acceptance of Subscription.

This Agreement shall be accepted by the City only when it is signed by an authorized officer of the City and delivered to the Subscriber. Notwithstanding anything in this Agreement to the contrary, PG CC 2/2/22
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City of Pacific Grove
Water Subscription Agreement
the City shall have no obligation to transfer any Available Water Entitlement to property owner’s property if transfer of the Available Water Entitlement to the Property would violate Rule 23.9, violate terms of the April 19, 2019 Letter, violate PGMC Chapter 11.68 or violate other applicable laws (collectively, “Laws”).

3. Closing Date, Time and Place.

The closing of the transfer of the Entitlement Increment from the City to the Subscriber to be dedicated to the Property, and the payment by the Subscriber for the Entitlement Increment (the “Closing”), shall take place at the Monterey office of Chicago Title Company to be specified by the City in a written notice to the Subscriber (the “Escrow Holder”). Subject to the satisfaction or waiver of the conditions precedent set forth in this Agreement, the Closing shall take place on a date and time designated by the City.

4. Payment; The Closing.
(a) At least five (5) days prior to the Closing, the Subscriber shall deposit with Escrow Holder, by cashier’s check or wire transfer into the escrow account, the full amount of the purchase price set forth in Appendix A to this Agreement. Provided all conditions precedent have been satisfied, then on or before the business day prior to the Closing, the City shall deposit with Escrow Holder documents transferring the Entitlement Increment to the Subscriber to be dedicated to the Property (the “Conveyance Documents”), which documents shall be duly executed by authorized signatories on behalf of the City and, when necessary for recordation, properly acknowledged. The Subscriber and the City shall each deposit such other instruments as are reasonably required to consummate the transfer of the Entitlement Increment in accordance with the terms of this Agreement and applicable Laws.
(b) When all required documents and funds have been deposited with Escrow Holder, and all conditions precedent have been satisfied, Escrow Holder shall immediately close Escrow by:
(i) recording the Conveyance Documents with the Monterey County Recorder’s Office, together with instructions for the County Recorder to deliver the Conveyance Documents to the Subscriber after recording, and
(ii) paying the amount set forth in Appendix A to this Agreement, reduced by the closing costs payable by the City pursuant to Section 8 of this Agreement, to an account designated by the City in accordance with applicable Laws. The Subscriber shall execute such additional escrow instructions as may be reasonably requested by Escrow Holder, but in the event of any inconsistency between the terms of such escrow instructions and the terms of this Agreement, the terms of this Agreement shall prevail.

5. Additional Provisions/ Exhibits.

These Exhibits and Appendices are incorporated by this reference as an integral part of this Agreement:

Exhibit 1: MPWMD Rule 23.9, “City of Pacific Grove Water Entitlement” Exhibit 2: April 19, 2019 Letter
Exhibit 3: PGMC Chapter 11.68, “Water Distribution Regulations” Appendix A: Purchase Price
Appendix B: Legal Description of Real Property
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Appendix C: Tenant In Common Agreement Effective March 12th, 2020

6. Representations and Warranties of the City.

As of the Closing, the City represents and warrants that:
(a) The City is duly formed and validly exists under the laws of the State of California, with full power and authority to conduct business as it is currently being conducted and to own its assets. (b) The City has duly authorized transfer of the Entitlement Increment pursuant to this Agreement. (c) Except as otherwise expressly provided in this Agreement, the City disclaims any representations or warranties, express or implied, regarding the Entitlement Increment or matters affecting the Entitlement Increment.
(d) The City will take no position contrary to continued existence of the Entitlement Increment or Available Water Entitlement, or that would jeopardize availability of water sufficient to satisfy the Entitlement Increment.

7. Representations, Warranties, and Covenants of the Subscriber.

Subscriber represents, warrants and covenants with the City and each officer, director, and agent of the City that:
(a) General:
(i) Subscriber has all requisite authority to enter into this Agreement and to perform all the obligations required to be performed hereunder.
(ii) Subscriber is the holder (of record) of fee title to the Property and is not acquiring the Entitlement Increment as an agent or otherwise for any other person. (iii) The Property is located in the City of Pacific Grove. (b) Information Concerning the Entitlement Increment and related State Water Resources Control Board and other legal proceedings:
(i) Subscriber has reviewed, or has had the opportunity to review, (A) MPWMD Rule 23.9, “City of Pacific Grove Water Entitlement” (Exhibit 1); (B) “April 19, 2019 Letter” (Exhibit 2), (C) SWRCB Cease and Desist Order WR 2009-0060, dated October 20, 2009, as amended by Order WR 2010-0001, dated January 5, 2010, against California American Water Company (“Cal-Am”) (Order WR 2009-0060 and Order WR 2010-0001 are collectively referred to herein as the “Order” and are found at the State Water Resources Control Board website:
http://www.waterboards.ca.gov/waterrights/water_issues/programs/hearings/caw_cdo/); and (D) litigation in the Superior Court of California by various parties (including Cal-Am and MPWMD) challenging the validity of the Order, including MPWMD and Cal-Am v.

SWRCB, Santa Clara County Case No. 1-10-CV163328 (collectively, the “Lawsuits”).

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(ii) In entering into this Agreement and completing the purchase and transfer of the Entitlement Increment contemplated herein, Subscriber has not relied on any information from the City other than that expressly contained in this Agreement (including the appendices and exhibits). Neither the City nor anyone acting or claiming to act on behalf of City has made any representation or warranty concerning the Order or the Lawsuits, or their impact or potential impact on Subscriber’s ownership or use of the Entitlement Increment as contemplated in, and in accordance with, Rule 23.9, nor have they given legal advice to Subscriber. Subscriber is exclusively relying on the advice of its own legal counsel regarding the legal merits and consequences of this Agreement and the transfer, ownership, and use of the Entitlement Increment, including the impact or potential impact of the Order and/or the Lawsuits on the Entitlement Increment.
(iii) Subscriber waives any right, claim, or cause of action, known or otherwise, against the City arising from the Order, any amendment or modification of the Order, and/or the Lawsuits.
(iv) Subscriber shall take title to the Entitlement Increment subject to the Order, any amendment or modification to the Order, the April 19, 2019 Letter, the Lawsuits, and/or any effects of any of them, whether known or unknown, disclosed or undisclosed, including, without limitation, the potential that Subscriber may be prohibited from using the Entitlement Increment as contemplated in, and in accordance with Rule 23.9. (v) Subscriber hereby releases City and each Exculpated Party (as defined below) from any liability of any kind or nature arising with respect to the Order, any amendment or modification to the Order, the April 19, 2019 Letter, and/or the Lawsuits, and, specifically, agrees that, if any claim or action is brought against Subscriber arising out of the Order, any amendment or modification to the Order, and/or the Lawsuits, Subscriber shall have no claim of any kind or nature against City or any Exculpated Party. (vi) Subscriber hereby agrees that (A) City shall have no further liability or obligation in respect to matters of any kind or nature pertaining to the Entitlement Increment, the Order, any amendment or modification to the Order, the April 19, 2019 Letter, and/or Lawsuits, as they relate to the Property, and (B) Subscriber shall fully assume any such liability or obligation as it relates to the Entitlement Increment, the Order, any amendment or modification to the Order, the April 19, 2019 Letter, and/or the Lawsuits, as they relate to the Property.
(vii) Notwithstanding anything to the contrary contained in this Agreement, no officer, employee, manager, partner, or agent of the City (collectively, the “Exculpated Parties”), whether disclosed or undisclosed, shall have any personal obligation or liability hereunder, and Subscriber shall not seek to assert any claim or enforce any of its rights under this Agreement against any Exculpated Party.
(viii) Notwithstanding anything to the contrary in this Agreement, any liability or other obligation of the City contained in this Agreement that, despite the terms of this Agreement to the contrary, survives the closing, or any liability or other obligation of the City under any other document or instrument delivered by the City in connection with the Closing, shall not PG CC 2/2/22
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exceed a total aggregate amount equal to the purchase price set forth in Appendix A to this Agreement.
(ix) Prior to executing this Agreement, Subscriber has been given the opportunity to obtain information necessary to evaluate the information set forth in Rule 23.9, the Order, the April 19, 2019 Letter, and/or the Lawsuits, and has obtained from its own legal or other professional advisors all such information so requested. (c) Financial and Other Matters:
(i) Subscriber acknowledges it has not received from the City, or anyone acting or claiming to act on the City’s behalf, any accounting, tax, financial, architectural, permitting, legal or other advice with respect to this Agreement and the transfer, ownership, or use of the Entitlement Increment. To the extent necessary, Subscriber has retained, at its sole expense, and relied solely upon, the advice of its own accounting, tax, financial, architectural, permitting, legal, and other professional advisors regarding the merits and consequences of this Agreement and the transfer, ownership, and use of the Entitlement Increment. (ii) Subscriber agrees to furnish additional information requested by any governmental agency to assure compliance with Rule 23.9, the April 19, 2019 Letter, and other Laws in connection with the transfer of the Entitlement Increment. (d) Restrictions on Further Transfer: Subscriber may transfer the Entitlement Increment only to successors-in-interest to the Property; Subscriber acknowledges and agrees the Entitlement Increment cannot be transferred independently to any other person or property. (e) Reaffirmation and Confirmation of Subscriber ’s Representations, Warranties, and Covenants at Closing: Subscriber understands that, unless it notifies the City in writing to the contrary at or before the Closing, each of the representations, warranties, and covenants contained in this Agreement will be deemed to have been reaffirmed and confirmed as of the Closing.

8. Conditions to Obligations of Subscriber and the City. (a) Obligations of the Subscriber to obtain and pay for the Entitlement Increment specified herein, and of City to transfer the Entitlement Increment, are subject to the following conditions precedent.

If all conditions precedent set forth in this Section have not been satisfied or waived within the times provided below, the party for whose benefit the unsatisfied condition exists may unilaterally cancel this Agreement at any time thereafter, prior to such satisfaction or waiver, by written notice to Escrow Holder and the other party. If the party for whose benefit the unsatisfied condition exists cancels this Agreement as provided above, the Escrow Holder shall return to each party all funds and other items, if any, deposited by that party with the Escrow Holder. (i) As of the Closing, except for the Order and the Lawsuits, no administrative, legislative, or judicial action or proceeding shall be pending wherein an unfavorable judgment, order, decree, or ruling would (A) prevent consummation of the transaction contemplated by this Agreement, or (B) prohibit or otherwise affect adversely the right of Subscriber to own and use the Entitlement Increment as contemplated in, and in accordance with, Rule 23.9 (and no such judgment, order, decree, or ruling shall be in effect). This condition is for the benefit PG CC 2/2/22
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of both parties. The Subscriber is purchasing a portion of the Available Water Entitlement expressly subject to the Order and the Lawsuits.
(ii) The representations and warranties of the City contained in this Agreement and the representations and warranties of the Subscriber contained in this Agreement shall be true and correct on and as of the Closing in all respects with the same effect as though such representations and warranties had been made on and as of the Closing. This condition is for the benefit of each of the parties as to the representations and warranties of the other party. (b) Subscriber shall make full use of purchased entitlement water (quantified by Water Use Capacity set by MPWMD) no later than the first date of occupancy for any improvement constructed based upon any part of the entitlement water purchase.

9. Costs.

Subscriber shall be solely responsible for the payment of all escrow fees and recording costs related to the Closing. Subscriber shall be solely responsible for the payment of all fees, costs and expenses of any nature whatsoever accruing or arising following the Closing Date in connection with the transfer, ownership, or use of the Entitlement Increment, including, without limitation, any capacity or other fees payable to the MPWMD, or any fees payable to California American Water Company.

Except as otherwise specifically set forth elsewhere in this Agreement, each party shall pay its own attorney’s fees and any other fees, costs, or expenses incurred by it regarding this Agreement and the Entitlement Increment transfer contemplated hereby.

10. Notices.

Notices required under this Agreement shall be delivered personally or by first-class, postage pre-paid mail to the City and Subscriber at the addresses listed below:

FOR CITY: FOR SUBSCRIBER:

Bill Peake JAY DESAI
Rohnert Park RI LP
Mayor Owner
300 Forest Avenue
Pacific Grove, CA 93950
P.O Box 2106,
Monterey CA 93942.

Address Address
(831) 648-3127 (510) 914-7679
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11. Miscellaneous Provisions.
(a) Brokers. Subscriber has not entered into any agreement to pay any broker’s or finder’s fee to any person with respect to this Agreement or the transactions contemplated hereby. (b) Amendment. This Agreement may be amended or modified only by an instrument in writing signed by the City and the Subscriber.
(c) Waiver. Any waiver of terms or conditions of this Agreement must be in writing and signed by the City and the Subscriber. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement. (d) Assignability. Neither this Agreement nor any right, remedy, obligation, or liability arising hereunder or by reason hereof shall be assignable by the Subscriber without the prior written consent of the City; provided that the Subscriber may assign this Agreement without the prior written consent of the City to any successor-in-interest to the Subscriber’s fee interest in the Property.
(e) Applicable Law. This Agreement shall be governed by and interpreted under the laws of the State of California. Venue for any challenge shall be in Monterey County. (f) Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. (g) Counterparts. This Agreement may be executed in two or more counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.
(h) Construction of Agreement. The City and Subscriber agree each party has fully participated in the review and revision of this Agreement and any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.
(i) Binding Effect. This Agreement shall bind upon and accrue to the benefit of the parties and their respective heirs, legal representatives, successors, and assigns. (j) Survival. All representations, warranties, and covenants by the Subscriber contained in this Agreement shall survive (i) the acceptance of this Agreement by the City, (ii) the Closing (and shall not merge with the provisions of any closing documents), and (iii) the death or disability of the Subscriber. If the Subscriber is more than one person, the obligations of the Subscriber shall be joint and several and the representations, warranties, and covenants shall be deemed to be made by and be binding on each of the Subscriber, and their respective heirs, executors, administrators, successors, and assigns.

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(k) Notification of Changes. The Subscriber covenants and agrees to notify City upon the occurrence of any event prior to the Closing of the transfer of the Entitlement Increment pursuant to this Agreement that would cause any representation, warranty, or covenant of the Subscriber contained in this Agreement to be false or incorrect.
(l) Integration. This Agreement and the attached appendices and exhibits constitute the entire agreement between the Subscriber and the City. There are no oral agreements or representations that are not expressly set forth in this Agreement.
(m) Severability. If any term, provision, or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, provision, or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision, and condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

IN WITNESS WHEREOF, City and SUBSCRIBER have executed this Agreement as of the day and year written below.

SUBSCRIBER:

Managing Partner:
_____________________________________________

JAY DESAI
Rohnert Park RI LP
P.O Box 2106 Monterey CA 93942.
_________________________________________________________________________________ Mailing Address City State Zip
Email address: [email protected] Phone Number: 510 914-7679 Date: __________________________________
Accepted by CITY OF PACIFIC GROVE:

Date: ___________________ By: _____________________________________________ Bill Peake, Mayor
City Agreement Number: 41
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23.9-1
Monterey Peninsula Water Management District Monterey Peninsula Water Management District A. CITY OF PACIFIC GROVE WATER ENTITLEMENT

1. The City of Pacifi c Grove Water Entitlement confers on the City of Pacifi c Grove, a vested property right to release up to 66 AFA of water for consumption from the California American Water Company Water Distribution System.

2. 13 AFA of metered water demand previously used by the City of Pacifi c Grove to irrigate its Golf Links and El Carmelo Cemetery shall be permanently suspended from use in order to provide lasting benefi ts to the Carmel River system.

3. Benefi ted Properties of the City of Pacifi c Grove Water Entitlement shall mean all properties that are located within the City of Pacifi c Grove.

4. City of Pacifi c Grove is authorized to separately sell, transfer and convey to owners of Benefi ted Properties for such consideration and upon such terms and conditions as City of Pacifi c Grove in its discretion may determine, such portions of the City of Pacifi c Grove Water Entitlement as it may choose. Any portion of the City of Pacifi c Grove Water Entitlement conveyed to the owner of a Benefi ted Property by an Assignment Document shall vest in the owner of the Benefi ted Property, and become appurtenant to title to the particular Benefi ted Property, at the time the Water Use Permit is issued as evidence of such conveyance.

5. The City of Pacifi c Grove Water Entitlement shall be separate and distinct from any other Allocations provided in Rule 30.

6. For purposes of collecting Capacity Fees and tracking the use of a Water Entitlement, the projected increase in Water Use Capacity of a Benefi ted Property shall be calculated in the manner set forth in Rule 24, as it may be amended from time to time.

7. Each Water Use Permit issued pursuant to this Rule shall represent a vested property interest upon issuance and shall not be subject to Revocation or cancellation except as expressly set forth in subparagraph B below.

8. The portion of the City of Pacifi c Grove Water Entitlement granted by each Water Use Permit shall not be subject to reallocation pursuant to MPWMD Rule

30. B. REVOCATION, TERMINATION, OR MODIFICATION OF WATER USE

PERMITS

1. Each Water Use Permit which, on or after January 1, 2075, embodies an annual Water Entitlement in excess of requirements for planned land uses on the Benefi ted Property, or which purports to authorize usage in excess of the constitutional limitation (California Constitution, article 10, section 2) to EXHIBIT 1
RULE 23.9 - CITY OF PACIFIC GROVE WATER ENTITLEMENT
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23.9-2
Monterey Peninsula Water Management District Monterey Peninsula Water Management District reasonable and benefi cial use, shall be subject to modifi cation, Revocation, or termination in the sole discretion of MPWMD, such that the water usage authorized thereby shall not exceed such requirements and limitations.

2. Prior to any modifi cation, termination or Revocation pursuant to this subparagraph E, the holder of the Water Use Permit shall be entitled to notice and a hearing, and any termination, Revocation, or modifi cation shall be subject to appeal to the Board pursuant to Rule 70 of the MPWMD Rules and Regulations.

Added by Ordinance No. 168 (1/27/2016)
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Chapter 11.68

WATER DISTRIBUTION REGULATIONS
Sections:

11.68.005 Definitions.

11.68.010 Distribution of potable water.

11.68.015 Priority dates for wait-listed applications.

11.68.020 Unavailability of water – Readiness for building permit applications.

11.68.030 Time limits for wait-listed projects.

11.68.040 Entitlement water.

11.68.050 Repealed.

11.68.060 Repealed.

11.68.005 Definitions.
(a) This section provides definitions for terms or phrases used in this chapter that are technical or specialized, or that may not reflect common usage. If any of the definitions in this chapter conflict with definitions in other provisions of the Pacific Grove Municipal Code, the definitions set forth in this section shall control for the purposes of this chapter. If a word is not defined in this chapter, or in other provisions of this title, the most common dictionary definition shall be presumed to be correct.
(b) The following are defined terms for use in this chapter:
“Allocation” means a discrete quantity of water held by the city from the Monterey Peninsula Water Management District for new or intensified water use within the city. “City water distribution regulations” means this chapter. “Entitlement” (also “water entitlement”) means a discrete quantity of potable water developed through use of city funds, available for sale to end users to enable new or intensified use of water from the California American Water Distribution System.

Entitlements are evidenced by a vested contractual right granted by the city. “Intensified water use” means any change in water use on a parcel which, in a residential use, is evidenced by an increase in the number of fixture units serving that parcel; or, in any nonresidential use, evidenced by the incremental change in the project’s capacity for annual water use based upon factors set by the Monterey Peninsula Water Management District.
“Mixed use” means where one or more water meters or connections supply both residential and nonresidential water uses, often within the same building.

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“Notice of available water” means a notice provided by the city manager, or agent, to advise an applicant that water from a water entitlement or water allocation is ready for immediate use for a project, which may trigger time limits for wait-listed properties within which applicants must claim and purchase water or be removed from the water wait list. “Pacific Grove local water project (PGLWP)” means a reclamation plant intercepting and treating sewer water to deliver nonpotable water to the Pacific Grove Golf Links and El Carmelo Cemetery, and providing water for other public uses. “Water credits” means a record created by the Monterey Peninsula Water Management District that allows reuse of a specific quantity of water upon a specific location, based upon documented permanent abandonment of prior water use on that site. “Water subscription” means a document through which a property owner acquires a contract interest for a discrete quantity of water from the legal owner of a water entitlement.
“Water use capacity” means the maximum potential water use which theoretically may occur, based on average water use data for similar structures and uses in the Monterey Peninsula region, as shown by projected water use tables developed by the Monterey Peninsula Water Management District. Anticipated maximum annual water demand is expressed in acre-feet for a specific real property.
“Water wait list” means a chronological list that quantifies unmet potable water requests for unserved end use water users. Prerequisite qualifying criteria must have been met before a project was placed on the water wait list. [Ord. 19-006 § 2, 2019; Ord. 18-015 § 3, 2018].

11.68.010 Distribution of potable water.
(a) All water available for distribution and use within the city shall be distributed by resolution passed and adopted by the council.
(b) Water shall be distributed based solely on the date/time of each request, provided the request is accompanied by payment of all city fees or other city charges for water, and further provided the requestor can demonstrate an ability to make timely use of the water. [Ord. 19- 006 § 2, 2019; Ord. 18-015 § 3, 2018].

11.68.015 Priority dates for wait-listed applications.

Project applications placed on any water wait list will be eligible for water on priority date basis provided the project is then able to use the water; if not, the available water will be passed to the next buildable project and the delayed project shall remain on the water wait list; the EXHIBIT 3
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project shall retain its original priority date water wait list until it acquires water available for use. [Ord. 19-006 § 2, 2019; Ord. 18-015 § 3, 2018].

11.68.020 Unavailability of water – Readiness for building permit applications.
(a) Applications for projects for which there is no available water shall not be accepted or processed. However, there shall be established a prioritized waiting list according to order of receipt of proof of readiness to apply for a building permit. (b) For projects requiring only a building permit, proof of readiness to apply for a building permit shall include submittal of all materials normally required to be filed with building permit applications.
(c) For projects requiring discretionary land use entitlements (including, without limitation, variances, use permits, historical preservation permits, architectural approvals), proof of readiness to apply for a building permit shall include the final discretionary approval and submittal of all materials or plans normally required to be filed with a discretionary permit application. Final discretionary approval shall occur upon the granting of all required project approvals by the boards and commissions having jurisdiction to first hear the project applications. In the event of a successful appeal, i.e., denial of the project application, from such approval, the project shall be removed from the water wait list. (d) A request for inclusion on a prioritized waiting list shall include a written acknowledgment that there is, at the time of such request, no water available for the requested project. Fees may apply to remain current on this waiting list.
(e) Proofs of readiness shall be placed on prioritized waiting lists according to order received.

Once water is available to service a project covered by proofs of readiness, those affected shall be notified and may apply for building permits. Once a building permit is determined to be complete and ready for issuance, the applicant shall be granted authorization to seek a water permit. [Ord. 19-006 § 2, 2019; Ord. 18-015 § 3, 2018].

11.68.030 Time limits for wait-listed projects.
(a) When water is available for project use, or by purchase via entitlement, time limits set forth below shall apply to wait-listed properties within which those that can take immediate advantage of the water must claim and purchase water, or be bypassed on the water wait list.

Projects prevented by regulation or operation of law from immediate use of water shall remain on the water wait list and retain their priority date.
(b) The city will send a notice of available water to applicants on the water wait list. Applicants shall have 30 calendar days from the date of the notice to notify the city, in writing, of their intent to use available water or to remain on the water wait list (“passing”). Wait-listed EXHIBIT 3
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properties shall be required to reapply for permit amendments or renewal, if needed, within 30 days of the date notice of available water by the property is sent. In the alternative, applicants shall be required to state their intent to “pass” on purchasing entitlement water during this same time period. Building permits shall be obtained 120 days thereafter. Full payment shall be tendered for any water entitlement within 180 days of the date water is available for use by the property. Extensions to these time limits may be granted for good cause by the city manager, or designee, in accord with this chapter.
(c) Full use of water, including purchased entitlement water or water from an allocation (quantified by water use capacity), shall be required by the first date of occupancy. Any unused entitlement shall be subject to revocation to enable reassignment or sale for other uses. The city may consider rebate of the pro rata purchase price of any unused water entitlement to the then-current property owner (less a reasonable processing fee) upon revocation of an increment of unused water entitlement, but payment of the rebate amount shall not be made by the city until sale of that water increment has been completed and paid in full by another water user. [Ord. 19-006 § 2, 2019; Ord. 18-015 § 3, 2018].

11.68.040 Entitlement water.
(a) Sale of PGLWP entitlement water shall be set at the rate determined by council resolution.

Fees paid to the city by the applicant to remain on a water wait list shall be applied as a credit toward the purchase of the water entitlement; no refund shall be granted. (b) If warranted by circumstances related to the sale of 2.0 acre-feet of water or more for a specific project, the city in its sole discretion may elect to enter into a promissory agreement with the property owner(s) to effect sale of entitlement water. The maximum amount payable pursuant to the promissory agreement shall not exceed 90 percent of the water entitlement purchase price; the purchaser shall pay to the city as a deposit the remaining purchase cost as a condition precedent to execution of the promissory agreement. (1) Any water entitlement that is subject to a promissory agreement shall be subject to revocation, shall not vest and shall not run with the land until the promissory obligation has been paid in full to the city.
(2) If consideration required pursuant to a promissory agreement is not paid to the city in full when due, including but not limited to principal, interest, costs and fees, the owner(s) shall be in default of the promissory agreement. Unconditional transfer of an entitlement shall occur only following receipt of full payment by the city. (3) If full and complete payment is not timely received by the city, the city shall retain authority to revoke the water entitlement, in part or in full.

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(4) Transfer or assignment of any promissory agreement or any interest in a water entitlement subject to a promissory agreement shall not be made without the advance written consent of the city.
(5) The city shall also withhold all final occupancy permits for any project for which a promissory agreement is in default, until such time as the default has been cured by full payment of all amounts owed.
(c) City council approval shall be required for the city to enter into any promissory note related to payment for entitlement water.
(d) After purchase of entitlement water, the city may rebate the pro rata purchase price to the then-current property owner (less a reasonable processing fee) upon city revocation of any increment of unused water entitlement, but payment of the rebate amount shall not be made by the city until sale of that water increment has been completed and paid in full to the city by another water user. [Ord. 21-023 § 2, 2021; Ord. 19-006 § 2, 2019; Ord. 18-015 § 3, 2018].

11.68.050 Building permit time limit.

Repealed by Ord. 19-006. [Ord. 18-015 § 3, 2018].

11.68.060 Additional water supplies.

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APPENDIX A

WATER ENTITLEMENT INCREMENT ASSIGNED
Location (Property Address): 157 Grand Avenue, Pacific Grove CA 93950 Subscriber Name(s): JAY DESAI

1. Quantity of Water Entitlement requested: 8.816 (fraction of per acre foot)

2. Original Cost

3. Discount

4. Total Amount Due
$2,204,00 ($250,000 per acre foot)
$ 661,200 (30% discount until June 30, 2022)
$1,542,800
I execute this document in the City of Pacific Grove, and declare under penalty of perjury that the information provided is true and correct of my knowledge.
____________________________________________ _________________________________ JAY DESAI Date
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1 APPENDIX B
LEGAL DESCRIPTION:

The land referred to is situated in the County of Monterey, City of Pacific Grove, State of California, and is described as follows:

PARCEL ONE:

Parcel 2 as shown on Parcel Map recorded in the Office of the County Recorder of Monterey County, State of
California, on August 19, 2015 in Book 23, Page 48 of Parcel Maps.

PARCEL TWO:
25 foot reciprocal vehicle access easement over a portion of Parcel 1, as shown on the above referenced Parcel Map.

APN: 006-173-002
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Agenda No. 13 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Ben Harvey, City Manager
MEETING DATE: February 2, 2022
SUBJECT: CONCEPT REVIEW: ARPA Funding Public Outreach This item was continued from the January 19, 2022 meeting
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Review proposed public outreach approach and provide direction to staff.

DISCUSSION
The City anticipates receiving another $1.84 million in American Recovery Plan Act (ARPA) funds in July of this year. These anticipated funds will be booked as revenue, upon receipt. However, the City will anticipate their arrival, and will include them within the proposed Fiscal Year 22-23 budget. At this time, it is not known if the anticipated ARPA funds will need to be used to address City revenue shortfalls, as was the case with the last tranche of ARPA funds received in Fiscal Year 21-22. City staff will have more information in this area after the mid-year budget budget presentation and forecast, which will take place at either the end of February or early March.

Assuming that at least a portion, if not most, of the anticipated ARPA funding coming in the next fiscal year is not needed to backfill revenue shortfalls, it is suggested that public outreach take place to determine the public's proposed priorities for spending the revenue. To accomplish this, a survey may be deployed, and a town hall meeting may be convened. For the survey, it is suggested that the City avail itself of the survey functionality through its software license with Zencity. Zencity has a sample survey that has been used in other municipalities that is attached to this agenda report for review. The survey may be modified should the City Council wish for additional information. Zencity will create a link to the survey, which may be posted on social media, accessed through the City website, and printed on postcards should the City decide to incur a US Mail expense as part of this effort. Following at least a month after the survey has been released, a town hall meeting could be convened to review the results with the public, and gain additional feedback. The result could then be presented to the City Council for discussion and determination as to how best to program the ARPA funding.

OPTIONS
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Take no action; please note that taking no action will cause this proposed public outreach effort to cease.

1. 2. Provide revised or alternate direction.

FINANCIAL IMPACT:

Should the City Council provide direction to send out postcards with the survey link, there could be an expenditure for this effort estimated at approximately $3,000, which could be covered with available funding within the approved FY 21-22 budget.

GOAL ALIGNMENT: Transparency, Accountability and Communication: Implement programs, processes, revisions, and training to improve and advance the City's efforts.

Attachments
Sample ARPA Survey
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ARPA funding prioritization Survey
The city of Pacific Grove is running a survey to help prioritize incoming ARPA funding according to its residents' needs.

In your opinion, how should the funding be spent? Share your opinion in this quick anonymous survey.

Do you live in the limits of Pacific Grove? [check all that apply] Yes
No [divert out of the survey]
# select 10-13 of the following for utilizing ARPA funds that you would like residents to rank. You can also suggest options that are relevant to your community. #

1. Please rank the following opportunities to use APRA funds using the following scale:
1 - No priority 2 - Low priority 3 - Medium priority 4 - High priority 5 - Very high priority

1. Support for households facing housing insecurity, such as emergency rent/mortgage assistance, utility assistance, and legal support for those facing eviction or foreclosure

2. Funding to address homelessness, including temporary shelters and affordable long-term housing

3. Assistance to restaurants, bars, retail stores, and other small businesses impacted by COVID-19

4. Funding for local nonprofits such as food banks and social service agencies

5. Support for local arts, music, entertainment, and tourism-related businesses

6. Funding for new economic development and job training initiatives

7. Improvements to local water and sewer infrastructure

8. Improvements to public streets, intersections, and sidewalks

9. Improvements to city / town buildings and other public facilities

10. Government technology upgrades to more online services and improve cybersecurity

11. Increased internet access through broadband infrastructure and public wi-fi networks

12. Investments in improved public transit services

13. Increased funding for local parks and recreation programs

14. Increased funding for police and other public safety agencies

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16. Expanded outreach to promote vaccination, greater access to testing, and other public health measures

2. [optional] In what other ways should Pacific Grove use APRA funding? [Open-ended] Demographic question [optional]:

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Agenda No. 13 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: February 2, 2022
SUBJECT: Leadership - Mastering Your Role as an Elected Official This item was continued from the January 19, 2022 meeting
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive report and discuss.

DISCUSSION
Material below originated from the Institute for Local Government’s ‘Level Up Your Leadership’ training held December 6 and 13, 2021.

Leadership on the Council: Foundations For Exceptional Councils Develop a sense of team
Successfully transition from candidate to a member of council.

Become a champion for your agency. Make decisions based on the needs and interests of the community at-large / the greater good.

Develop, communicate and support policy goals and council decisions.

Demonstrate a willingness to work collaboratively and have an agency-wide perspective.

Have clear roles and responsibilities
Understand your role in local government and responsibilities.

Know your role: to set vision and policy, avoid micromanagement.

Council should strive to be informed about the issues facing their agency and be prepared to ask questions of staff and each other.

Honor the relationship with staff and each other
Elected officials have the ability to respectfully disagree (i.e. to disagree without being disagreeable).

They are able to leave it at the dais; debates are about policy, not personality.

Exceptional elected officials reflect positive decorum and model leadership by using respectful tone with colleagues.

Effective councils establish a set of behaviors in advance - to promote civility and respect.

Conduct effective meetings
Elected officials are respectful of each other, the public and everyone’s time.

Elected officials use engaging body language as a way to demonstrate respect.

Issues are not personalized - thoughtful dialogue is the objective.

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Agenda packets are read, councilmembers come prepared and have an open mind.

Respect is demonstrated for varied opinions.

Everyone strives to be civil and act with decorum.

Hold themselves and the agency accountable
Operate ethically and with integrity.

Conduct team building and/or goal setting exercises to track progress towards mutually agreed upon goals
Take responsibility for the results (good and bad).

Celebrate success.

Hold themselves responsible for adhering to operating protocols and codes of conduct.

Practice continuous learning and development.

Stay informed on key issues.

Gain key insights and knowledge on all aspects of governing, from budgets to plans and everything in between.

Learn to listen. Listening is sometimes more important than learning to give a speech.

If the above were a scorecard, how do you think we rate? Where can you/we improve? Does being an exceptional Council mean members always agree? Additional topics discussed included trust. “Trust takes years to build, seconds to break and forever to repair”.

I recommend this training.

GOAL ALIGNMENT - ALL

OPTIONS
N/A
FINANCIAL IMPACT:

There is no fiscal impact.

GOAL ALIGNMENT: See Goal Alignment within Discussion section.

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Agenda No. 13 D

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Nick Smith, Councilmember
MEETING DATE: February 2, 2022
SUBJECT: Council Liaison Role This item was continued from the January 19, 2022 meeting
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Review role and provide staff direction.

DISCUSSION
Since at least 2010, Council has had an informal practice of assigning a “Council liaison” to its Boards and Commissions (“Boards”). However, there has been confusion and a lack of clarity in the purpose and scope of the Council liaison role. Further, liaisons have been serving in this role without a formal Council action in ordinance or resolution to institute or define the practice. In my five years serving on the Council, I have found the Council liaison appointment to be problematical in a number of ways, which are highlighted below.

First, having a Council liaison leads to potential Brown Act violations. The Boards often look to Councilmembers to provide advice or guidance on various topics while in session or outside of session. Frequently, these topics include items that could come before Council as the governing body and the Board as the subordinate body. Any such activity by a Councilmember may require recusal by the Councilmember, depending on the content of the discussion at the subordinate body level or with members of the subordinate body. It is an area ripe with potentially significant issues.

Second, the purpose of the City’s Boards is to act independently of the Council and advise the Council on matters rather than the reverse. It should not be influenced by Councilmembers serving as liaisons so that as many interests as possible are represented within the jurisdiction.

Third, Councilmembers must spend time to attend Board meetings. However, Councilmember roles and participation must be extremely limited. This is time that Councilmembers could spend on various initiatives at the Council level. Commonly, a Council liaison provides a very brief summary of the previous Council meeting. In lieu of this brief report, Board members could review the Council minutes to keep abreast of the actions of the Council and can also attend Council meetings. Likewise, a Councilmember could catch up on Board activities by reading meeting minutes, which are included in Council agenda packets.

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Overall, the costs outweigh the benefits of having Council liaisons. There is a reason the role has not been clarified at some point in the last decade by various Councils who have considered doing so; it is very problematic to try to define.

We should allow our Boards to function independently and end the Council liaison practice.

OPTIONS
Provide alternate direction.

FINANCIAL IMPACT:

There is no fiscal impact.

GOAL ALIGNMENT: Not Applicable.

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