Agenda packet, regular meeting — Pacific Grove City Council, February 1, 2023 (part 1 of 3)

CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, February 1, 2023, 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 IN PERSON AND VIRTUALLY (HYBRID).

CHAMBER CAPACITY SEATING IS LIMITED AND PROVIDED ON A FIRST COME, FIRST SERVED BASIS.

THE VIRTUAL MEETING 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:
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Help Line 831-648-3128

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

AGENDA
AGENDA

CALL TO ORDER
PLEDGE OF ALLEGIANCE: Councilmember Amelio

1. APPROVAL OF AGENDA

2. PRESENTATIONS

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.

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

A. Minutes of the City Council Special and Regular Meeting of January 18, 2023 and City Council Goal Setting Meeting of January 25, 2023
Reference: Sandra Kandell, City Clerk
Recommended Action: Approve minutes.

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

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 Granting Consent to the City of Pacific Grove to Renew the Monterey County Tourism Improvement District (MCTID) and Include the City of Monterey in the MCTID
Reference: Ben Harvey, City Manager
Recommended Action: Adopt a resolution granting consent to the City of Pacific Grove to renew the Monterey County Tourism Improvement District (“MCTID”) and include the City of Monterey in the MCTID.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Amendment of Resolution 22-048, Authorizing Examination of Sales or Transactions and Use Tax Records.

Reference: Jennifer Pope, Management Analyst
Recommended Action: Approve the Proposed Amendment of Resolution 22-048, Authorizing Examination of Sales or Transactions and Use Tax Records.

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 2022-23 Reference: Mark Sullivan, Accountant
Recommended Action: Receive the Report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Second Quarter 22/23 Workers' Compensation Report
Reference: Audrey Cray, Finance & Risk Manager
Recommended Action: Receive the report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
C. Second Quarter Budget Report
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
D. Second Quarter Purchase Order Report
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. Update on Code Compliance Program
Reference: Andrew Butler, Code Compliance Officer
Recommended Action: Receive staff report regarding Code Compliance program and short term rental enforcement update.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
F. Teleconference Rules For Attendance at Meetings of Legislative Bodies Reference: Brian A. Pierik, City Attorney
Recommended Action: Motion to receive and file Agenda Report on Teleconference Rules for attendance at meetings of legislative bodies.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
G. 2022 Planning Commission Annual Report
Reference: Joseph Sidor, Contract Planner
Recommended Action: Receive the 2022 Planning Commission Annual Report.

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. Ratification of New Local Emergency Actions
Reference: Ben Harvey, City Manager
Recommended Action: Receive report of emergency directives/modifications.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Authorize Agreement for the Del Monte Blvd. Storm Drain Project.

Reference: Joyce Halabi, Deputy Public Works Director
Recommended Action: Authorize an agreement with Monterey Peninsula Engineering for the Del Monte Blvd Storm Drain Improvements Project in an amount not to exceed $227,125 plus a 15% contingency.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities C. Agreement for Comprehensive Fee Study, Development Impact Fees, and/or a Cost Allocation Plan
Reference: Lori Frati, Management Analyst
Recommended Action: Motion to authorize the Mayor to sign an agreement with the Matrix Consulting Group for comprehensive fee study, development impact fees, and/or a cost allocation plan, in an amount not to exceed $67,890.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
D. Contract Amendment with Rincon Consultants Inc.

Reference: Anastacia Wyatt, Community Development Director Recommended Action: Approve the proposed contract amendment with Rincon Consultants, Inc. relating to a development project located at 1661 Sunset Drive based on a contract time extension.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
E. Appointment to Historic Resources Committee
Reference: Bill Peake, Mayor
Recommended Action: Approve the appointment of J. Bicket to Historic Resources Committee ending January 31, 2025.

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

A. Planning Commission Meeting Minutes: September 8, October 13, November 10, and December 8, 2022
Reference: Joseph Sidor, Contract Planner
Recommended Action: Receive the 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. Scope of Public Comments At Meetings of Legislative Bodies Reference: Brian Pierik, City Attorney
Recommended Action:

1. Request a reading of title of Ordinance;
Motion to waive further reading and introduce for a first reading of Ordinance Amending Pacific Grove Municipal Code Section 2.04.050 Regarding Public Comment; and

2. Motion to adopt proposed amendment to Council Policy 000-017 Order of Agenda for Council Meetings

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

12. UNFINISHED AND ONGOING BUSINESS
A. Climate Action and Adaptation Planning
Reference: Megan McKenna
Recommended Action:

Request that the City Council prioritize and initiate Climate Action and Adaptation Planning in 2023 tied to Council goals.

1. Seek the services of a consultant to develop and produce a Climate Action and Adaptation Plan.

2. 3. Establish a Council subcommittee on Climate Action and Adaptation Planning.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Council Alternates for Regional and State Agencies and Associations Reference: Chaps Poduri, Councilmember
Recommended Action: 1. Council appoint alternate for TAMC.

2. Council review and appoint alternates to any other regional agency/association with unfilled alternate representatives.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
C. Goal Setting Subcommittee
Reference: Sandra Kandell, City Clerk
Recommended Action: Discuss and appoint a City Council Goals ad hoc subcommittee for a specified time period to assist Council with finalizing goal language and establishing goal priorities.

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

13. NEW BUSINESS
A. Council Access to City Committee Email Groups
Reference: Luke Coletti
Recommended Action: Direct the City Attorney to prepare a Resolution amending Council Policy 000-5 to implement the proposed policy (see Attachment #1).

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Presentation of the City's New Transparency Software Reference: Tori Hannah, Administrative Services Director / Assistant City Manager Recommended Action: Receive the presentation.

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.

Agenda No. 5 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/DEI Coordinator
MEETING DATE: February 1, 2023
SUBJECT: Minutes of the City Council Special and Regular Meeting of January 18, 2023 and City Council Goal Setting Meeting of January 25, 2023
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve minutes.

Attachments
Draft Minutes 1-18-23
Draft Minutes 1-25-23
f

DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

CLOSED SESSION MEETING
Wednesday, January 18, 2023, 5:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA THIS MEETING WILL BE HELD IN PERSON AND VIRTUALLY (HYBRID).

CHAMBER CAPACITY SEATING IS LIMITED AND PROVIDED ON A
FIRST COME, FIRST SERVED BASIS.

THE VIRTUAL MEETING 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:
https://us02web.zoom.us/j/692219855

CALL TO ORDER
Mayor Peake called the meeting to order at 5:00 p.m. City Clerk conducted roll call with the following Council present in Chamber: Mayor Peake, Councilmembers Amelio, Beck, Coletti and McDonnell.

Absent: Mayor Pro Tem Smith and Councilmember Poduri.

APPROVAL OF AGENDA
Action: Upon motion by Councilmember Amelio and seconded by Councilmember Beck, Council voted to approve the agenda.

Motion carried 5-0-2, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, and McDonnell.

NOES: None.

ABSENT: Mayor Pro Tem Smith and Councilmember Poduri.

CLOSED SESSION

PUBLIC COMMENT ON CLOSED SESSION MATTERS
No public comment was received.

A. Conference with Legal Counsel - Initiation of Litigation; Government Code §54956.9(d)(4)) Number of Cases: One
B. Conference with Legal Counsel - Pending Litigation (Government Code Section 54956.9) Michael Gonzalez v. City of Pacific Grove, California; Police Chief Cathy Madalone; City Manager Ben Harvey; Does 1-10
US District Court, Northern District Action No. 5:22-cv-1079 SVK DRAFT

DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

REGULAR MEETING
Wednesday, January 18, 2023, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA THIS MEETING WILL BE HELD IN PERSON AND VIRTUALLY (HYBRID).

CHAMBER CAPACITY SEATING IS LIMITED AND PROVIDED ON A
FIRST COME, FIRST SERVED BASIS.

THE VIRTUAL MEETING 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

CALL TO ORDER
Mayor Peake called the meeting to order at 6:00 p.m. City Clerk conducted roll call with the following Council present in Chamber: Mayor Peake, Councilmembers Amelio, Beck, Coletti and McDonnell.

Appearing remotely via Zoom: Councilmember Poduri. Absent: Mayor Pro Tem Smith. Councilmember Amelio left the meeting at 10:00 p.m.

A. Remote Teleconference - AB 361
No public comment was received.

Action: Upon motion by Councilmember Coletti and seconded by Councilmember Amelio, Council voted to 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.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith.

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

PLEDGE OF ALLEGIANCE
Councilmember McDonnell led the pledge of allegiance.

1. APPROVAL OF AGENDA
Action: Staff recommended Consent Agenda item 9C be continued to the Council’s DRAFT
February 1, 2023 meeting.

Action: Upon motion by Councilmember Coletti and seconded by Councilmember Beck, Council voted to approve the agenda as amended.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith.

2. PRESENTATIONS
A. Employee Service Awards: Public Works: Michael Aliotti (35), Nancy McDowell (20), and Garrett McCown (5); Administrative Services Department: Jennifer Pope (10); Police Department: Wiley Griffin (5), Maxfield Murray (5); Recreation Department: Zoe Wilson (5)
Action: Council received presentations.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Pacific Grove and CourseCo Update
Action: Council received presentation.

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
Conference with Legal Counsel - Initiation of Litigation; Government Code §54956.9(d)(4)) Number of Cases: One
City Attorney Brian Pierik had no reportable action to report out.

Conference with Legal Counsel - Pending Litigation (Government Code Section 54956.9) Michael Gonzalez v. City of Pacific Grove, California; Police Chief Cathy Madalone; City Manager Ben Harvey; Does 1-10
US District Court, Northern District Action No. 5:22-cv-1079 SVK City Attorney Brian Pierik had no reportable action to report out.

City Attorney Brian Pierik announced that his office would be returning to a future Council meeting with an amendment to the City’s Municipal Code regarding the scope of public comment and following the Municipal Code Amendment, he will be presenting an amendment to the City’s Policy regarding the scope of public comment.

City Attorney Brian Pierik further recommended Council and all other legislative bodies allow members of the public to complete their comment unless there is an actual disruption, defining such as a disruption or disturbance where the meeting has been impeded or renders infeasible the orderly conduct of the meeting.

DRAFT
B. Council and staff made general announcements.

4. GENERAL PUBLIC COMMENT
General public comment was received from Carmelita Garcia, Barbara Meister, Colleen Ingram, Crystal Gaudette, John Mothershead, Mari Adams, Nadja Mark, Tony Francois, Janet Wilson, Lisa Ciani, Rebecca Lee, Daniel Miller, and Inge Lorentzen Daumer.

A. Public Comment
Action: Received written public comment, if applicable.

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

CONSENT AGENDA
Action: Consent Agenda item 9E was pulled and considered as Regular Agenda item 12B.

Consent Agenda item 9D was pulled and considered as Regular Agenda item 12C.

Action: Upon motion by Councilmember Amelio and seconded by Councilmember Coletti, Council voted to approve the Consent Agenda as amended.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the December 21, 2022 City Council Regular Meeting Action: Approved minutes.

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

6. RESOLUTIONS

7. ORDINANCES

8. REPORTS – INFORMATION ONLY
A. Monterey Salinas Transit Meeting Minutes: November 14, 2022 Action: Received minutes.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Council Goals Meeting January 25, 2023
Action: Received report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
C. Check Register Report - December 2022
Action: Received the report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines DRAFT
Section 15378
D. Core Revenue Report - December 2022
Action: Received the report.

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

9. REPORTS – REQUIRING ACTION
A. Ratification of New Local Emergency Actions
Action: Received report of emergency directives/modifications.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Legal Services Agreement with Jackson Lewis P.C.

Action: Authorized the Mayor to sign an Amendment to the Legal Services Agreement with Jackson Lewis P.C.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
C. Agreement for Comprehensive Fee Study, Development Impact Fees, and/or a Cost Allocation Plan During the approval of the agenda, the item was continued to the Council’s February 1, 2023 meeting.

Action: Authorized the Mayor to sign an agreement with the Matrix Consulting Group for comprehensive fee study, development impact fees, and/or a cost allocation plan, in an amount not to exceed $67,890.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
D. Proposed Amendment to City Council Policy 000-18 on Recording of City Council Meetings This item was pulled and considered as Regular Agenda item 12C.

Reference: Brian Pierik, City Attorney
Recommended Action: Approved Amendment to City Council Policy 000-18 on Recording of City Council Meetings.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
E. Appointments to City Boards, Committee, Commissions, and Task Force This item was pulled and considered as Regular Agenda item 12B.

Reference: Bill Peake, Mayor
Recommended Action: Approve appointments to City Boards, Committee, Commissions, and Task Force listed below.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES A. Diversity, Equity and Inclusion Task Force Meeting Minutes: December 12, 2022 Action: Received minutes.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
DRAFT
B. Library Board Meeting Minutes: September 19, 2022 and November 14, 2022 Action: Received minutes.

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

REGULAR AGENDA

11. PUBLIC HEARINGS

12. UNFINISHED AND ONGOING BUSINESS
A. 2022-2023 Special Events Calendar Late Additions
Public comment was received from Michael Ipson, Randy Sabado, Klarity Coleman, Inge Lorentzen Daumer, and Janet Wilson.

Action: Upon motion by Councilmember Amelio and seconded by Councilmember McDonnell, the Council voted to

1. Approve the following late addition special events for inclusion in the Fiscal Year 2022-2023 Special Events Calendar: Meals on Wheels Community Fest on April 16, 2023, the Quilters Show May 5-7, 2023 and the Walk of Remembrance on May 13, 2023; and

2. Approve the late addition special events as City Sponsored and waive fees for City staff support and equipment/facility usage.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Appointments to City Boards, Committee, Commissions, and Task Force This item was pulled from the Consent Agenda.

Public comment was received from Crystal Gaudette, Tina Rau, Stephanie Wittles Wachs, Heather Mothershead Zunguze, Michael Ipson, Mike Gibbs, John Mothershead, Colleen Ingram, Sierra North, Nadja Mark, Carol Marquart, Robin Pelc, Lisa Ciani, Carmelita Garcia, JM, Adam deBoor, Randy Sabado, Rebecca Lee, Janet Cohen, Molly, Marsha, Dick Paquette, Klarity Coleman, Richard O’Mara, unnamed speaker, Nadja Mark, Kristy Markowitz, Shannon Warto.

Action #1: Upon motion by Councilmember Coletti and seconded by Councilmember McDonnell, Council voted to account for the intent of Municipal Code 030 Terms Designated, staggering two (2) incumbent members of the Diversity, Equity and Inclusion Task Force with terms extended to January 31, 2024 and appoint three (3) applicants to serve two years with terms expiring January 31, 2025.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and DRAFT
Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith.

Action #2: Upon motion by Councilmember Beck and seconded by Councilmember Coletti, Council voted to approve all appointments to City Boards, Committee, Commissions, except for the Task Force and withdrawing H. Leinen’s application for the Administrative Enforcement Hearing Officer Panel.

Motion carried 5-1-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, and McDonnell.

NOES: Councilmember Poduri.

ABSENT: Mayor Pro Tem Smith.

Action #3: Upon motion by Councilmember Coletti and seconded by Councilmember McDonnell, Council voted to appoint Nadja Mark and Kim Bui to the Diversity, Equity and Inclusions Task Force with terms ending January 31, 2024.

Substitute Action: A substitute motion by Councilmember Amelio to appoint Kim Bui, Nadja Marks, and Tina Rau to the Diversity, Equity and Inclusion Task Force was withdrawn after discussion of previous motion of two incumbents.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith.

Action #4: Upon motion by Councilmember Coletti and seconded by Councilmember McDonnell, Council voted to appoint Donna Stevens, Juan Mosquera, and Katherine Hoops to the Diversity, Equity and Inclusion Task Force with terms ending January 31, 2025.

Motion carried 6-0-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
Action: Upon motion by Councilmember Beck and seconded by Councilmember Coletti, Council voted to break for 10 minutes and to continue past 10:00 p.m. to complete the remainder of the agenda items.

Motion carried 4-2-1, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Beck, Coletti, McDonnell.

DRAFT
NOES: Councilmembers Amelio and Poduri.

ABSENT: Mayor Pro Tem Smith.

C. Proposed Amendment to City Council Policy 000-18 on Recording of City Council Meetings This item was pulled and considered as Regular Agenda item 12C.

Public comment was received from Adam de Boor.

Action: Upon motion by Councilmember McDonnell and seconded by Mayor Peake, Council voted to approve Amendment to City Council Policy 000-18 on Recording of City Council Meetings.

Motion carried 4-1-2, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith and Councilmember Amelio.

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

13. NEW BUSINESS
A. Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2022
No public comment was received.

Action: Council received the Annual Comprehensive Annual Financial Report, which includes the Auditor's Opinion on the City's financial statements, from the City's independent auditor, Chavan & Associates, LLP; received the Transportation Safety and Investment Plan Account Fund (TAMC Measure X) Report, which includes the Auditor's Report by the City's independent auditor, Chavan & Associates, LLP; and received a status on improvements based on the auditor's recommendations that are being implemented, and provide any desired direction.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. CalAm Water Use Subcommittee
No public comment was received.

Action: Upon motion by Councilmember Beck and seconded by Councilmember McDonnell, the Council voted to create a water conservation ad hoc subcommittee for nine (9) months comprised of Councilmember Beck, Councilmember Coletti and Councilmember McDonnell, to perform audits on billing, site location, and ways to conserve water.

Motion carried 5-0-2, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith and Councilmember Amelio.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines DRAFT
Section 15378
C. Use of Electronic Communication Devices During City Council Public comment was received from Inge Lorentzen Daumer, Janet Wilson, and Jane Haines.

Action: Upon motion by Councilmember Coletti and seconded by Council McDonnell, the Council voted to direct the City Attorney to prepare a resolution amending Council Policy 000-9 (Council Guidelines) to implement the proposed policy as provided in attachment 4, striking “such as cell phones” from paragraph 1, and with the City Attorney to evaluate the last sentence in policy for effectiveness.

Motion carried 5-0-2, by the following roll call vote:

AYES: Mayor Peake, Councilmembers Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: Mayor Pro Tem Smith and Councilmember Amelio.

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

14. FULL PRESENTATIONS

15. CLOSED SESSION

ADJOURNMENT
Council adjourned the meeting at approximately 11:18 p.m.

Respectfully Submitted,
Sandra Kandell
City Clerk
Approved by Mayor: _______________________________Date________________ Attest by City Manager: ____________________________Date_________________ DRAFT

DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

SPECIAL GOAL SETTING MEETING
Wednesday, January 25, 2023, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA THIS MEETING WILL BE HELD IN PERSON AND VIRTUALLY (HYBRID).

CHAMBER CAPACITY SEATING IS LIMITED AND PROVIDED ON A
FIRST COME, FIRST SERVED BASIS.

THE VIRTUAL MEETING 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

CALL TO ORDER
Mayor Peake called the meeting to order at 6:00 p.m. City Clerk conducted roll call with the following Council present in Chamber: Mayor Peake, Mayor Pro Tem Smith, Councilmembers Amelio, Beck, Coletti, McDonnell and Poduri.

PLEDGE OF ALLEGIANCE
Mayor Peake led the pledge of allegiance.

1. APPROVAL OF AGENDA
Action: Upon motion by Councilmember Coletti and seconded by Mayor Pro Tem Smith, Council voted to approve the agenda.

Motion carried 7-0, by the following roll call vote:

AYES: Mayor Peake, Mayor Pro Tem Smith, Councilmembers Amelio, Beck, Coletti, McDonnell, and Poduri.

NOES: None.

ABSENT: None.

REGULAR AGENDA

2. NEW BUSINESS
A. Council Goals
Public comment was received from Rebecca Lee, Andrew Kubica, Jenny MacMurdo, Michaela Braveman, Wendy Giles, Andrew Gonzales, Paul Walkingstick, Lisa Ciani, Thom Akeman, Marsha, Christie Thomas, and Inge Lorentzen Daumer.

Action: Council participated in the goal setting process to establish Goals for 2023.

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

ADJOURNMENT
Council adjourned the meeting at approximately 8:47 p.m.

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 1, 2023
SUBJECT: Adoption of a Resolution Granting Consent to the City of Pacific Grove to Renew the Monterey County Tourism Improvement District (MCTID) and Include the City of Monterey in the MCTID
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Adopt a resolution granting consent to the City of Pacific Grove to renew the Monterey County Tourism Improvement District (“MCTID”) and include the City of Pacific Grove in the MCTID.

DISCUSSION
RESULT OF RECOMMENDED ACTION:

The recommended action, adoption of the attached resolution granting consent to the City of Pacific Grove to renew the MCTID and include the City of Monterey in the MCTID, will enable the City of Pacific Grove and the Monterey County Convention and Visitors Bureau (MCCVB) to move forward with the MCTID renewal process. Upon successful renewal, the MCTID will continue to be governed by the TID Oversight Committee and the Management District Plan (MDP), facilitated by the Monterey City Council and the Monterey County Convention and Visitors Bureau (the Owner’s Association).

BACKGROUND:

First launched in 2006 under the Property and Business Improvement Area Law of 1989 (’89 Law), the Monterey County Tourism Improvement District (MCTID) is a benefit assessment district proposed to continue as a revenue source to help fund marketing and sales promotion efforts for lodging businesses in Monterey County. In 2018, an effort to modernize the MCTID led to the disestablishment of the ’89 Law district and re-establishing the MCTID pursuant to the Property and Business Improvement District Law of 1994 (’94 Law). The five-year term of the MCTID is set to expire on December 31, 2023, and the required number of lodging business owners have submitted a written petition to renew the district. Pending successful renewal of the MCTID, the Owner’s Association will request to modify the current MCTID term to end early on June 30, 2023, with the renewed district beginning on July 1, 2023.

The 94 Law allows for the renewal of multi-jurisdictional tourism improvement districts, with consent of the included jurisdictions being granted to one “lead” jurisdiction. The City of Monterey has requested consent to continue to act as the lead jurisdiction in the renewal of the MCTID, administering the MCTID countywide. Adopting this resolution will give the City of Monterey authority to include the City of Pacific Grove in the renewed MCTID.

Management District Plan
The Management District Plan includes the proposed boundary of the renewed MCTID, a service plan and budget, and a proposed means of governance. The MCTID shall include all lodging businesses, existing and in the future, located within the boundaries of the unincorporated areas of Monterey County and the Cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad. The MCTID is divided into two (2) benefit zones as described in the Plan.

The Cities and County shall continue to be responsible for collecting the assessment on a monthly, bi-monthly, or quarterly basis (including any delinquencies, penalties, and interest) from each lodging business located within the boundaries of the MCTID. The Cities and County shall make all reasonable efforts to collect the assessments from each lodging business. The Cities and County shall forward the assessments to Monterey County Destination Marketing Organization, Inc. d.b.a. Monterey County Convention and Visitors Bureau (MCCVB), serving as the MCTID Owner’s Association, which will have the responsibility of managing MCTID programs as provided in the Management District Plan.

Lodging business owners decided to pursue renewal of the MCTID in order to continue a revenue source devoted to marketing Monterey County as a tourist, meeting, and event destination. If renewed, the MCTID would generate an initial annual budget of approximately $8,856,266, increasing biennially as assessment rates increase, for the promotion of travel and tourism specific to Monterey County.

OPTIONS
Do not adopt the aforementioned resolution.

FINANCIAL IMPACT:

None immediately. Because the MCTID programs are intended to increase room night sales for assessed businesses within the MCTID, there may be an increase in tax collections.

The Cities and the County may retain a fee equal to one percent (1%) of the amount of the assessment collected within their respective jurisdictions to cover their costs of collection and administration.

GOAL ALIGNMENT: Not Applicable.

Attachments
Proposed Reso
City of Monterey Reso
MCTID Mgt District Plan
1 RESOLUTION NO.22-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE,

GRANTING CONSENT TO THE CITY OF PACIFIC GROVE TO RENEW THE

MONTEREY COUNTY TOURISM IMPROVEMENT DISTRICT (MCTID)
WHEREAS, the City of Monterey initially created the MCTID in 2006 under the Parking and Business Improvement Area Law of 1989; and
WHEREAS, the MCTID was converted in 2019 under Property and Business Improvement District Law of 1994 by Resolution No. 18-147 for a five (5) year term, which ends December 31, 2023; and
WHEREAS, the City Council of the City of Monterey has requested consent to renew the MCTID in the City of Pacific Grove with adoption of Monterey City Council Resolution No. 22-169, dated December 20, 2022;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Pacific Grove, that:

Section 1: The above recitals are true and correct.

Section 2: The City of Monterey is hereby granted consent to include the City of Pacific Grove in the MCTID, for the renewal of the MCTID and future renewals.

Section 3: The City Clerk is hereby directed to transmit a certified copy of this Resolution to the Clerk of the City of Monterey City Council.

Section 4: This Resolution is effective upon its adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 1
st day of February, 2023 by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
_______________________________
BILL PEAKE, Mayor
2 ATTEST:

DATED:_______________________
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
BRIAN A. PIERIK, City Attorney
RESOLUTION NO. 22-169 C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
REQUESTING CONSENT OF THE COUNTY OF MONTEREY AND CITIES OF CARMEL-BYTHE-SEA, DEL REY OAKS, GONZALES, GREENFIELD, KING CITY, MARINA, PACIFIC

GROVE, SALINAS, SAND CITY, SEASIDE, AND SOLEDAD TO CREATE THE MONTEREY

COUNTY TOURISM IMPROVEMENT DISTRICT
WHEREAS, the City Council of the City of Monterey desires to begin proceedings to form the Monterey County Tourism Improvement District (MCTID); WHEREAS, certain lodging business owners have requested that the City Council of the City of Monterey create the MCTID; and
WHEREAS, a portion of the territory proposed to be included in the MCTID lies within the boundaries of the unincorporated areas of the County of Monterey and the cities of Carmelby-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad (the “Granting County and Cities”), as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment; and WHEREAS, the area of the unincorporated areas of the County of Monterey and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad which lies within the boundaries of the proposed MCTID will, in the opinion of the City Council of the City of Monterey, be benefited by the improvements and activities, and the purpose sought to be accomplished by the work can best be accomplished by a single comprehensive scheme of work; WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

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

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

Section 1: The above recitals are true and correct.

Section 2: Consent of the County of Monterey and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad, through their Board of Supervisors and City Councils, is hereby requested to create DocuSign Envelope ID: 7C7CC4F7-A107-4C52-A72C-6C5DA3EF5E6E 2 the MCTID, and to grant to the City Council of the City of Monterey jurisdiction for all the purposes in connection with the creation, operation and future renewals of the proposed MCTID.

Section 3: The City Clerk is hereby directed to transmit a certified copy of this Resolution to the clerks of the Granting County and Cities.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this 20th day of December, 2022, by the following vote:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
ABSTAIN: 0 COUNCILMEMBERS: None
APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
DocuSign Envelope ID: 7C7CC4F7-A107-4C52-A72C-6C5DA3EF5E6E

EXHIBIT A
2023-2033

MONTEREY COUNTY

TOURISM IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
November 2, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

CONTENTS
I. OVERVIEW ........................................................................................................................................3 II. BACKGROUND ................................................................................................................................5 III. BOUNDARY.......................................................................................................................................7 IV. ASSESSMENT BUDGET AND SERVICES................................................................................9 A. Annual Service Plan ....................................................................................................9 B. Annual Assessment Budget........................................................................................11 C. California Constitutional Compliance ........................................................................12 D. Assessment................................................................................................................13 E. Penalties and Interest .................................................................................................14 F. Time and Manner for Collecting Assessments ...........................................................15 V. GOVERNANCE...............................................................................................................................16 A. Owners’ Association..................................................................................................16 B. Brown Act and California Public Records Act Compliance........................................16 C. Annual Report ...........................................................................................................16 APPENDIX 1 – LAW....................................................................................................................................17 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................28 APPENDIX 3 – BENEFITS BY HOTEL TYPE....................................................................................35 APPENDIX 4 - TOURISM ECONOMICS STUDY ..............................................................................37 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
MCTID Management District Plan 3
November 2, 2022
I. OVERVIEW
Developed by the Monterey County Destination Marketing Organization, Inc. d.b.a. Monterey County Convention and Visitors Bureau (MCCVB), the Monterey County Tourism Improvement District (MCTID) is an assessment district which provides specific benefits to payors by funding group sales and services and marketing communications activities for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The MCTID was initially created in 2006 pursuant to the Parking and Business Improvement Area Law of 1989 and was converted in 2019 pursuant to the Property and Business Improvement District Law of 1994 for a five (5) year term. MCCVB and Monterey County lodging businesses now wish to renew the MCTID for a ten (10) year term. Pursuant to Streets and Highways Code §36620.5, the City of Monterey shall continue to act as the lead jurisdiction for renewing the MCTID. The City of Monterey shall continue to receive MCTID annual reports. Funds raised through the MCTID are meant to supplement the Jurisdiction Partnership investments so as to have a competitive budget and business plan.

Location: The renewed MCTID includes all lodging businesses located within the boundaries of the unincorporated areas of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad. The MCTID is divided into two (2) benefit zones, as shown on the map in Section IV.

Services: The MCTID is designed to provide specific benefits directly to payors by increasing demand for room night sales. Group business development and marketing communications activities will increase demand for overnight tourism and market Monterey County as a tourist, meeting and event destination, thereby increasing demand for room night sales for assessed businesses.

Budget: The total MCTID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $8,856,266. This assessment budget is expected to increase as the assessment rate increases are adopted pursuant to this Plan, but this budget is expected to fluctuate as room sales do.

Cost: The assessment is a fixed amount per occupied room per night. The assessment is based on the business hotel type. Based on the benefit received, assessments shall not be collected on: stays of more than thirty (30) consecutive days; stays at vacation timeshare facilities; stays at vacation rentals; stays at RV parks; stays by any Federal or State of California officer or employee when on official business; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. Initial assessment rates are:

Hotel Type Zone 1 Zone 2
Luxury $7.00 $7.50
Non-Luxury Full Service $4.50 $5.00
Limited Service $1.50 $2.00
Based on the provision of additional services and additional benefit to the lodging businesses, the assessment rate shall automatically increase biennially beginning in FY MCTID Management District Plan 4
November 2, 2022
2025-26, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based upon circumstances that they deem significant. If the MCCVB Board’s TID Committee elects to cancel the automatic increase for that year, the MCCVB Board’s TID Committee may implement a cumulative increase at the next regularly scheduled rate increase.

Collection: The cities and County shall be responsible for collecting the assessment on a monthly, bi-monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the MCTID. The cities and County shall make all reasonable efforts to collect the assessments from each lodging business.

Duration: The renewed MCTID shall have a ten (10) year life, beginning July 1, 2023, or as soon as possible thereafter, and end ten (10) years from its start date. Once per year, beginning on the anniversary of MCTID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a Monterey City Council hearing on MCTID termination.

Management: The MCCVB Monterey County Destination Marketing Organization, Inc. d.b.a.

Monterey County Convention and Visitors Bureau (MCCVB) shall continue to serve as the Owners’ Association for the MCTID. The MCCVB Board’s TID Committee shall continue to have full decision-making authority over the expenditure of MCTID funds as defined in Section V. The Owners’ Association is charged with managing funds and implementing activities in accordance with this Plan and must provide annual reports to the Monterey City Council.

MCTID Management District Plan 5
November 2, 2022
II. BACKGROUND
A. Tourism Improvement District Overview
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.

California’s TIDs collectively
raise over $300 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important
that Monterey County lodging
businesses continue to invest
in stable, lodging-specific
marketing programs.

TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TIDs allow lodging business owners to organize their efforts to increase demand for room night sales. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase demand for room night sales.

In California, most TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

B. Tourism Improvement District Benefits
There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.

MCTID Management District Plan 6
November 2, 2022
C. MCTID History and Partnerships with Jurisdictions
The history of the Monterey County Tourism Improvement District (MCTID) is one of partnership.

The MCTID was first established in 2006 because the region’s hospitality industry recognized that TIDs create a reliable funding source for destination marketing.

Municipalities and the County of Monterey have historically demonstrated a commitment to fund tourism promotion. The renewed and expanded MCTID has been developed with this partnership in mind. The continued partnership is critical to the MCTID’s success, as the funds raised through both the TID, the municipalities and the County of Monterey will allow a competitive budget and business plan for the region’s destination marketing.

D. Looking Ahead
Market share, revenue, improved community connectivity
Focus Currently Investment in a Better Future
Sphere of Marketing
Reach
Primarily Regional paid media
advertiser
National Brand with paid media reach into
Midwest, East Coast – high value travelers
Meetings &
Conferences
Five-person sales team; primarily
focused on regional meetings;
limited booking incentive
Expand sales team; increase sales activities;
aggressive booking incentive; intensify focus
on corporate, incentive and Tour & Travel
Event Attraction &
Promotion
No proactive event attraction
effort; promotion limited to
social and PR (no paid media)
Dedicated program to attract advantageous
events; paid media support for select events
Transportation
Development
Tactical and reactive; lacking a
well-supported MCCVB/
Community strategy
Annual dedicated budget; strategically proactive
International Marketing One sales executive, limited coop (VCA, Brand USA) marketing Multi-country sales representation, significant
increase in direct sales and marketing
Luxury Initiative
Direct sales through involvement
with Virtuoso, ILTM, VCA;
limited marketing
Significant expansion (2-3X) of both sales and
marketing programs
Sustainable/Responsible
Travel
Consistent messaging through
unpaid (social & PR), limited
paid media; implementation of
See Monterey app
On-going paid media campaign; support shuttle
programs/promotion; in-market
collateral/signage;
MCTID Management District Plan 7
November 2, 2022
III. BOUNDARY
The renewed MCTID shall include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the unincorporated areas of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad.

Lodging business means: any building, portion of any building, or group of buildings in which there are guest rooms or suites, including housekeeping units for transient guests, where lodging with or without meals is provided. Notwithstanding the previous sentence, lodging business does not include:
• Vacation time-share facilities;
• Vacation rentals, defined as a single family home, townhome, or condominium that is available for rent; and
• Recreational vehicle (RV) parks.

There are three types of lodging businesses in the MCTID: luxury, non-luxury full service, and limited service.
• Luxury lodging business means: a lodging business with an average daily rate of $500 or more, based on the previous year’s performance, with premium services and the highest quality ratings. Lodging businesses whose average daily rate increases to $500 or more will be assessed upon determination of the increase; likewise, lodging businesses whose average daily rate decreases to below $500 will not be assessed as a luxury lodging business upon determination of the decrease. Average daily rate figures shall be updated annually. Luxury lodging businesses may have restaurants, meeting spaces, exercise rooms, or spas, and have characteristics of five (5) star hotels. The luxury lodging business type includes properties classified as all-inclusive, boutique, and destination resorts by Smith Travel Research. • Non-luxury full service lodging business means: a lodging business with a wide variety of onsite amenities, such as restaurants, meeting spaces, exercise rooms, or spas. non-luxury full service lodging businesses are often in the upscale or upper upscale class as defined by Smith Travel Research.
• Limited service lodging business means: a lodging business that offers limited facilities and amenities, typically without a full-service restaurant. Limited service lodging businesses are often in the economy, midscale, or upper midscale class as defined by Smith Travel Research.

A complete listing of lodging businesses within the proposed MCTID can be found in Appendix 2.

The proposed MCTID is divided into two (2) benefit zones, based on the special benefits and privileges granted to lodging businesses in each zone. The boundaries of each zone are shown in the map on the following page. A description of the boundaries of each zone is provided below:

Zone 1: Includes the unincorporated area of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Sand City, Seaside, and Soledad.

Zone 2: Includes the City of Salinas. The boundaries of Zone 2 shall be the boundaries of the City of Salinas as may be amended from time to time.

MCTID Management District Plan
8 November 2, 2022
MCTID Management District Plan 9
November 2, 2022
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds shall be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of Monterey of conferring the benefits or granting the privileges. The privileges and services provided with the MCTID funds are group business development and marketing communications activities available only to assessed lodging businesses. The assessment rate for each hotel type will be commensurate with privileges and services provided to assessed businesses in each hotel type as detailed in Appendix 4.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget shall be developed and approved by MCCVB. The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $8,856,266.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, with the exception of the Zone 2 assessment budget category of Salinas Visitor Services, the MCCVB TID Committee shall have the authority to adjust assessment budget allocations between the categories by no more than fifteen percent (15%) of the total assessment budget per year. Any changes to the assessment budget category allocations shall be included in the annual report to the City of Monterey. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the MCTID, any and all assessment funds may be used for the costs of defending the MCTID.

Each assessment budget category includes all costs related to providing that service. For example, the marketing communications assessment budget includes the cost of MCCVB staff time dedicated to overseeing and implementing the marketing communications program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the assessment budget. The costs of Marketing
Communications,
$3,985,320 , 45%
Group Business Development,
$3,152,831 , 35.6%
Contingency Reserve,
$885,627 , 10%
City/County
Administration Fee,
$88,563 , 1%
Administration & Operations,
$619,939 , 7%
Salinas Visitor Services,
$123,988 , 1.4%
Initial Annual Assessment Budget - $8,856,266
MCTID Management District Plan 10
November 2, 2022
an individual staff member may be allocated to multiple assessment budget categories. The staffing levels necessary to provide the services below shall be determined by the MCCVB on an as-needed basis.

Marketing Communications
The marketing communications program will promote assessed businesses as tourist, meeting, and events destinations. The marketing communications program will have a central theme of promoting Monterey County as a desirable place for overnight visits. The program will have the goal of generating overnight visitation and room sales at assessed businesses, and may include the following activities:
• Programs that develop and distribute content via paid, owned and earned channels to drive overnight visitation and room sales to assessed businesses; • Partnership marketing initiatives with Monterey Regional Airport for domestic marketing, plus cooperative programs for international marketing to reach farther-out prospective visitors to drive overnight visitation and room sales to assessed businesses; • Focus on high-priority, high-impact initiatives to drive overnight visitation and room sales to assessed businesses;
• Collaborations with transportation partners to make it easier to get to and around Monterey County to drive ideal overnight visitation and room sales to assessed businesses; • Drive familiarity and engagement for group audiences through targeted direct marketing and retargeting programs to complement Group Sales’ business development focus to drive overnight visitation and room sales to assessed businesses; and • Expand international marketing to drive overnight visitation and room sales to assessed businesses.

Group Business Development
The group business development program will develop business leads for meetings and events that convert to room nights for assessed businesses. The group business development program will have a central theme of promoting Monterey County as a desirable place for overnight group visits. The program will have the goal of generating overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Group marketing initiatives to ensure target customer destination familiarity to drive overnight visitation and room sales to assessed businesses;
• A business development model ensuring highly qualified leads and efficient use of Owners’ Association resources in developing new business opportunities to drive overnight visitation and room sales to assessed businesses;
• Focus on business development platform: engage, action, transaction, participation to drive overnight visitation and room sales to assessed businesses; • Familiarization trips (FAMs) and site inspections to drive overnight visitation and room sales to assessed businesses;
• Strategic client services designed to make attendee’s destination choice easier to drive overnight visitation and room sales to assessed businesses; • Visitor services programs designed to extend stays at assessed businesses and increase visitor spending;
• Strategic business development services designed to identify, qualify, and pursue new business opportunities that best fit the destination’s profile, targeting the ideal opportunities from key deployed markets to drive overnight visitation and room sales to assessed businesses; and • Tour and travel sales programs to fill shoulder seasons and need periods for the destination to drive overnight visitation and room sales to assessed businesses.

MCTID Management District Plan 11
November 2, 2022
Salinas Visitor Services
The Salinas Visitor Services portion of the assessment budget shall be utilized for funding visitor services activities for the benefit of generating overnight visitation and room night stays at Zone 2 lodging businesses. The Salinas Visitor Services program will provide visitors with brochures, maps, and information regarding local events. The Salinas Visitor Services assessment budget shall be the amount collected annually from the additional $0.50 assessment in Zone 2.

MCCVB Administration and Operations
The MCCVB administration and operations portion of the assessment budget shall be utilized by the MCCVB for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

City/County Administration Fee
The cities and County may retain a fee equal to one percent (1%) of the amount of the assessment collected, within their respective jurisdictions, to cover their costs of collection and administration.

Contingency/Reserve
The assessment budget includes a contingency line item to account for lower than anticipated collections or higher than anticipated program costs, if any. Up to ten percent (10%) of the assessment budget may be allocated to the contingency/reserve in any given year. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the TID Committee. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the TID Committee. Contingency/reserve funds may be spent on TID activities or administrative and renewal costs in such proportions as determined by the Committee. The reserve fund may be used for the costs of renewing the TID.

B. Annual Assessment Budget
The assessment is a fixed amount per occupied room per night. The assessment is based on the business hotel type. Based on the provision of additional services and additional benefit to the lodging businesses, the assessment rate shall automatically increase biennially beginning in FY 2025-26 for both Zone 1 and Zone 2, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based upon circumstances that they deem significant. If the MCCVB Board’s TID Committee elects to cancel the automatic increase for that year, the MCCVB Board’s TID Committee may implement a cumulative increase at the next regularly scheduled rate increase. Because services shall remain constant for the Salinas Visitor Services program (brochures, maps, and information regarding local events for visitors), the additional rate of $0.50 per annum in Zone 2 shall remain static over the life of the district. The biennial assessment increase in both Zone 1 and Zone 2 (notwithstanding the static $0.50 rate in Zone 2), shall be $0.90 per paid occupied room per night for luxury lodging businesses, $0.60 per paid occupied room per night for non-luxury full service lodging businesses, and $0.20 per paid occupied room per night for limited service lodging businesses.

The assessment budget is projected at an initial budget of $8,856,266, increasing biennially for a total of $111,645,780 through 2033. This amount is expected to fluctuate as occupancy rates increase at assessed businesses and when the assessment rate is increased. The following table demonstrates the estimated assessment budget over the life of the district, based on existing lodging businesses, following the rate increase schedule. Any new lodging businesses that commence business within the MCTID during the ten (10) year term shall be assessed using the same methodology listed in Section IV (D).

MCTID Management District Plan 12
November 2, 2022
Estimated Annual Assessment Budget
Fiscal
Year
Marketing
Comm.

Group Bus.

Devel.

Salinas Visitor
Services
(Zone 2 Only)
Contingency
/ Reserve
Admin &
Operations
City/County
Admin Fee Total
2023-24 $3,985,320 $3,152,831 $123,988 $885,627 $619,939 $88,563 $8,856,266 2024-25 $3,985,320 $3,152,831 $123,988 $885,627 $619,939 $88,563 $8,856,266 2025-26 $4,504,690 $3,563,710 $140,146 $1,001,042 $700,730 $100,104 $10,010,422 2026-27 $4,504,690 $3,563,710 $140,146 $1,001,042 $700,730 $100,104 $10,010,422 2027-28 $5,024,060 $3,974,590 $156,304 $1,116,458 $781,520 $111,646 $11,164,578 2028-29 $5,024,060 $3,974,590 $156,304 $1,116,458 $781,520 $111,646 $11,164,578 2029-30 $5,543,430 $4,385,469 $172,462 $1,231,873 $862,311 $123,187 $12,318,734 2030-31 $5,543,430 $4,385,469 $172,462 $1,231,873 $862,311 $123,187 $12,318,734 2031-32 $6,062,801 $4,796,349 $188,620 $1,347,289 $943,102 $134,729 $13,472,890 2032-33 $6,062,801 $4,796,349 $188,620 $1,347,289 $943,102 $134,729 $13,472,890 Total $50,240,601 $39,745,898 $1,563,041 $11,164,578 $7,815,205 $1,116,458 $111,645,780 C. California Constitutional Compliance
The MCTID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the MCTID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the MCTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the cities and County of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the MCTID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the MCTID, and are narrowly tailored. MCTID funds shall be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in MCTID activities, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

The assessment imposed by this MCTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is the generation of room night sales. The specific benefit of increased demand for room night sales for assessed lodging businesses shall be provided only to lodging businesses paying the district assessment, with MCTID activities promoting lodging businesses paying the MCTID assessment. The MCTID activities will be designed to generate room night sales at each assessed lodging businesses. Because they are necessary to provide the MCTID activities that specifically benefit the assessed lodging 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
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businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the MCTID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” 4 The legislature has
recognized that marketing and promotions services like those to be provided by the MCTID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
MCTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed shall be used to provide the services described herein.

Excluding Zone 2 funds managed by the City of Salinas, funds shall be managed by the MCCVB, and reports submitted on an annual basis to the City of Monterey. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from MCTID-funded activities, be featured in advertising campaigns, and benefit from other MCTID-funded services. Non-assessed lodging businesses will not receive these, nor any other, MCTID-funded services and benefits.

The MCTID-funded activities are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-MCTID funds. MCTID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The assessment is a fixed amount per occupied room per night. The assessment is based on the business hotel type. Based on the provision of additional services and additional benefit to the lodging businesses, the assessment rate shall automatically increase biennially beginning in FY 2025-26, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based upon circumstances that they deem significant. If the MCCVB Board’s TID Committee elects to cancel the automatic increase for that year, the MCCVB Board may implement a cumulative increase at the next regularly scheduled rate increase. Because services shall remain constant for the Salinas Visitor Services program (brochures, maps, and information regarding local events for visitors), the additional rate of $0.50 per annum in Zone 2 shall not be increased over the life of the district. The biennial assessment 3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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increase shall be $0.90 per paid occupied room per night for luxury lodging businesses, $0.60 per paid occupied room per night for non-luxury full service lodging businesses, and $0.20 per paid occupied room per night for limited service lodging businesses. Based on the benefit received, assessments shall not be collected on: stays of more than thirty (30) consecutive days; stays at vacation time-share facilities; stays at vacation rentals; stays at RV parks; stays by any Federal or State of California officer or employee when on official business; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. The assessment increase schedule is illustrated in the table below.

Zone 1 Zone 2
Fiscal
Year Luxury Non-Luxury Full Service
Limited
Service Luxury Non-Luxury Full Service
Limited
Service
2023-24 $ 7.00 $ 4.50 $ 1.50 $ 7.50 $ 5.00 $ 2.00
2024-25 $ 7.00 $ 4.50 $ 1.50 $ 7.50 $ 5.00 $ 2.00
2025-26 $ 7.90 $ 5.10 $ 1.70 $ 8.40 $ 5.60 $ 2.20
2026-27 $ 7.90 $ 5.10 $ 1.70 $ 8.40 $ 5.60 $ 2.20
2027-28 $ 8.80 $ 5.70 $ 1.90 $ 9.30 $ 6.20 $ 2.40
2028-29 $ 8.80 $ 5.70 $ 1.90 $ 9.30 $ 6.20 $ 2.40
2029-30 $ 9.70 $ 6.30 $ 2.10 $ 10.20 $ 6.80 $ 2.60
2030-31 $ 9.70 $ 6.30 $ 2.10 $ 10.20 $ 6.80 $ 2.60
2031-32 $ 10.60 $ 6.90 $ 2.30 $ 11.10 $ 7.40 $ 2.80
2032-33 $ 10.60 $ 6.90 $ 2.30 $ 11.10 $ 7.40 $ 2.80
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the MCTID assessment is identified separately it shall be disclosed as the “MCTID Assessment.” As an alternative, the disclosure may include the amount of the MCTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of, the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
The MCTID shall reimburse the cities and County for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent MCTID assessment are sought to be recovered in the same collection action by the cities or County, the MCTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment or the estimated assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent assessment on or before a period of thirty (30) days following the date on which the assessment first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the MCTID Management District Plan 15
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assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the cities or County determine that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto, in addition to the penalties stated in paragraphs 1 and 2 of this section.

4. Interest: In addition the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment required to be paid.

6. Audit Deficiency: If, upon audit by the cities or County, a lodging business is found to be deficient in either its return or its remittances or both, the cities or County shall immediately invoice the lodging business for the amount of the net deficiency plus a penalty of ten percent (10%) of the net deficiency. If the lodging business fails or refuses to pay the deficient amount and applicable penalties within thirty (30) days of the date of the invoice, an additional ten percent (10%) penalty shall be added to the original deficiency. In addition to the penalties imposed, any lodging business that fails to remit payment of billed audit deficiencies within thirty (30) days of the date of the invoice shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties.

F. Time and Manner for Collecting Assessments
The MCTID assessment shall be implemented beginning July 1, 2023, or as soon as possible thereafter, and end ten (10) years from its start date. The cities and County shall be responsible for collecting the assessment on a monthly, bi-monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in their respective jurisdictions. The cities and County shall make all reasonable efforts to collect the assessments from each lodging business. The cities and County shall forward the assessments collected to the Owners’ Association, except for the additional assessments in Zones 2.

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V. GOVERNANCE
A. Owners’ Association
The Monterey City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the MCTID as defined in Streets and Highways Code §36612. Monterey County Destination Marketing Organization, Inc. d.b.a. Monterey County Convention and Visitors Bureau (MCCVB) shall continue to serve as the Owners’ Association for the MCTID. The MCCVB Board’s TID Committee shall continue to have full decision-making authority over the expenditure of MCTID funds. The TID Committee shall be comprised solely of assessed lodging business representatives. The number of seats on the TID Committee from each MCTID jurisdiction shall reflect the proportional assessment revenue derived from each MCTID jurisdiction. Notwithstanding the forgoing, the City of Salinas shall have full decision-making authority over the expenditure of funds raised by the additional $0.50 assessment rate on all lodging business types in Zone 2.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the MCCVB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The MCCVB shall present an annual report at the end of each year of operation to the Monterey City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied.

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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2022 SUPPLEMENT *** (ALL 2021 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businessesin a business district are not taxesfor the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the MCTID Management District Plan 18
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incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessmentsthey may levy and the proper determination ofspecial benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize citiesto levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.

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36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district.

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36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

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36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial MCTID Management District Plan 22
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year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such MCTID Management District Plan 23
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businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
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Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

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36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to MCTID Management District Plan 26
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be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.

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(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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APPENDIX 2 – ASSESSED BUSINESSES
Business Name Business Address City/State/Zip Type
ABV Presidents Inn MUNRAS MTY 1150 MUNRAS AVE MONTEREY, CA 93940 Limited Adams Motel/Boronda Inn 2086 N. Main St. Salinas, CA 93906 Limited ADOBE INN 1919 GRAND CANAL BL.#B5 STOCKTON CA 95207 Full Aloha Motel 235 Kern St. Salinas, CA 93905 Limited
ANDRIL MOTEL & COTTAGES 569 ASILOMAR BLVD PACIFIC GROVE, CA 93950-3701 Limited ARAMARK Sports & Entertainment 800 ASILOMAR BLVD PACIFIC GROVE, CA 93950-3704 Limited AUBERGE CARMEL PO BOX J CARMEL CA 93921 Luxury
BAYSIDE INN 2055 NORTH FREMONT ST. MONTEREY, CA 93940 Limited BEACHCOMBER INN 1996 SUNSET DR PACIFIC GROVE, CA 93950-3787 Limited Bernardus Lodge 415 W CARMEL VALLEY RD Carmel Valley, CA 93924-9417 Luxury Best 5 Motel/Lakshmi Hotel Group 1010 Fairview Ave. Salinas, CA 93905 Limited BEST WESTERN DE ANZA INN 2141 NORTH FREMONT ST MONTEREY, CA 93940 Limited Best Western Marina State Beach 3290 DUNES DR MARINA, CA 93933 Limited BEST WESTERN MONTEREY INN 825 ABREGO MONTEREY, CA 93940 Limited Best Western Salinas
Monterey/Western Hotel Corp 175 Kern St. Salinas, CA 93905 Limited Best Western Salinas Valley Inn 187 Kern St. Salinas, CA 93905 Limited BEST WESTERN INN AND SUITES 4258 CESAR CHAVEZ ST San Francisco, CA 94131-1815 Limited BEST WESTERN-PARK CREST 1100 MUNRAS AVENUE MONTEREY, CA 93940 Limited BIDE A WEE INN AND COTTAGES 221 ASILOMAR BLVD PACIFIC GROVE, CA 93950-2093 Limited Big Sur Campground & Cabins 47000 HIGHWAY 1 BIG SUR, CA 93920-9556 Limited Big Sur Lodge 47225 HIGHWAY 1 BIG SUR, CA 93920-9542 Full Big Sur River Inn 46800 HIGHWAY 1 BIG SUR, CA 93920-9693 Full

BLU PACIFIC HOTEL (FORMERLY
COMFORT INN-MTY BAY) 2050 NO. FREMONT ST. MONTEREY, CA 93940 Limited Blue Sky Lodge 10 FLIGHT RD Carmel Valley, CA 93924-9617 Limited BORGS MOTEL 1315 SKYVIEW DR BURLINGAME, CA 94010-6236 Limited Budget Inn Motel/BMN LLC 219 John St. Salinas, CA 93901 Limited BUTTERFLY GROVE INN 1073 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2357 Limited Cabana Holiday 8710 Prunedale North Rd SALINAS, CA 93907-1371 Limited California Inn Motel 736 N. Main St. Salinas, CA 93906 Limited CANDLE BAY INN 2118 NO. FREMONT ST. MONTEREY, CA 93940 Limited CANDLELIGHT INN P.O. Box 101 CARMEL CA 93921 Limited
CANNERY ROW INN 200 FOAM ST. MONTEREY, CA 93940 Limited Capitol Motel/Jainika Corporation 2110 N. Main St. Salinas, CA 93906 Limited Captain's Inn At Moss Landing 8122 MOSS LANDING RD Moss Landing, CA 95039-9617 Limited CARMEL BAY VIEW INN 700 UNIVERSITY AV.#150 SACRAMENTO CA 95825 Limited CARMEL COTTAGE INN PO BOX 5805 CARMEL CA 93921 Limited
CARMEL COUNTRY INN PO BOX 3756 CARMEL CA 93921 Limited
CARMEL FIREPLACE INN INC. P.O. BOX 5245 CARMEL CA 93921 Limited CARMEL GARDEN INN PO BOX 5547 CARMEL CA 93921 Limited
CARMEL GREEN LANTERN INN PO BOX 1114 CARMEL CA 93921 Limited MCTID Management District Plan 29
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CARMEL INN & SUITES P.O. BOX 1295 CARMEL CA 93921 Limited CARMEL LODGE P.O.BOX 4235 CARMEL CA 93921 Limited
Carmel Mission Inn 3665 RIO RD CARMEL, CA 93923-8609 Full CARMEL OAKS INN P.O. BOX 3696 CARMEL CA 93921 Limited
CARMEL RESORT INN P.O. BOX 2106 MONTEREY CA 93942 Limited Carmel River Inn 26600 OLIVER RD CARMEL, CA 93923-9219 Limited CARMEL TRADEWINDS INN P. O. BOX 3403 CARMEL CA 93921 Limited Carmel Valley Lodge 8 FORD RD Carmel Valley, CA 93924-9511 Limited Carmel Valley Manor 8545 CARMEL VALLEY RD CARMEL, CA 93923-9556 Full Carmel Valley Ranch 1 OLD RANCH RD CARMEL, CA 93923-8551 Luxury CARMEL WAYFARER INN P.O. BOX 1896 CARMEL CA 93921 Limited CARMEL'S TOWN HOUSE LODGE P.O. BOX 3574 CARMEL CA 93921 Limited CARRIAGE HOUSE INN PO BOX 101 CARMEL CA 93921 Limited
Casa Linda Motel 1109 N. Main St. Salinas, CA 93906 Limited CASA MUNRAS HOTEL 700 MUNRAS AVENUE MONTEREY, CA 93940 Full Casa Palmero 1518 CYPRESS DR PEBBLE BEACH, CA 93953 Luxury CASA VERDE INN 2113 NO. FREMONT ST. MONTEREY, CA 93940 Limited CENTRELLA INN 612 CENTRAL AVE PACIFIC GROVE, CA 93950-2611 Limited Ciudad Del Rey Motel 50620 MESA VERDE RD KING CITY, CA 93930 Limited CLARION HOTEL 1046 MUNRAS AVENUE MONTEREY, CA 93940 Limited COACHMAN'S INN PO BOX 3073 MONTEREY CA 93940 Limited
COLTON INN 707 PACIFIC ST MONTEREY, CA 93940 Limited
COMFORT INN 140 RESERVATION RD MARINA, CA 93933-2522 Limited Comfort Inn & Suites/Shakti LLC 181 Kern St. Salinas, CA 93905 Limited Comfort Inn Monterey Airport 1200 OLMSTED RD MONTEREY, CA 93940 Limited COMFORT INN-CARMEL BY THE SEA P.O. BOX 3838 CARMEL CA 93921 Limited Contenta Inn 20 VIA CONTENTA Carmel Valley, CA 93924-9501 Limited Continental Motel 1165 N. Main St. Salinas, CA 93906 Limited COUNTRY INN & SUITES 3288 DUNES DR MARINA, CA 93933 Limited Country Inn/Meldi Inc 126 John St. Salinas, CA 93901 Limited Courtyard Salinas 17225 EL RANCHO WAY SALINAS, CA 93907-1732 Limited CVI INVESTORS PO BOX 3185 CARMEL CA 93921 Limited
CVI INVESTORS PO BOX 3185 CARMEL CA 93921 Limited
CYPRESS INN P.O. Box Y CARMEL CA 93921 Limited
Days Inn 1130 Broadway St KING CITY, CA 93930 Limited
DAYS INN 1288 MUNRAS AVENUE MONTEREY, CA 93940 Limited
DAYS INN - SAN CARLOS 850 ABREGO MONTEREY, CA 93940 Limited DEER HAVEN INN 750 CROCKER AVE PACIFIC GROVE, CA 93950-3727 Limited Deetjen's Big Sur Inn 48865 HIGHWAY 1 BIG SUR, CA 93920-9512 Full Discovery Inn 1106 Fremont Blvd. Seaside, CA 93955 Limited

ECONO LODGE (MONTEREY
FAIRGROUNDS INN) 2042 NO. FREMONT ST. MONTEREY, CA 93940 Limited EconoLodge Bay Breeze Inn 2049 Fremont Blvd Seaside, CA 93955 Limited Economy Inn 214 John St. Salinas, CA 93901 Limited
Economy Inn 1131 Fremont Blvd. Seaside, CA 93955 Limited MCTID Management District Plan 30
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EL CASTELL MOTEL 2102 NORTH FREMONT MONTEREY, CA 93940 Limited El Dorado Motel/Café Main Street 1351 N. Main Salinas, CA 93906 Limited El Rey Motel 443 W. Market St. Salinas, CA 93901 Limited El Sombrero Motel/Ramesh J. Patel 210 Abbott St. Salinas, CA 93901 Limited Embassy Suites 1441 Canyon Del Rey Blvd. Seaside, CA 93955 Full Esalen Institute 55000 HIGHWAY 1 BIG SUR, CA 93920-9546 Full Fairview Inn 1060 Fairview Ave. Salinas, CA 93905 Limited Fernwood Resort 47200 HIGHWAY 1 BIG SUR, CA 93920-9542 Limited Fireside Inn 640 Broadway St KING CITY, CA 93930 Limited FOREST LODGE PO BOX 6286 CARMEL CA 93921 Limited
Gateway Lodge 1909 Fremont Blvd. #3128 Seaside, CA 93955 Limited Glen Oaks Big Sur 47080 HIGHWAY 1 BIG SUR, CA 93920-9556 Limited Gorda Cabin Rental 7801 HIGHWAY 1 BIG SUR, CA 93920 Limited GOSBY HOUSE INN 643 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2691 Limited GREEN GABLES INN PO BOX 3073 MONTEREY, CA 93942-3080 Limited H.I. Resort Condominium Assoc, Inc 120 HIGHLAND DR CARMEL, CA 93923-9607 Full Hacienda House 505 CORRAL DE TIERRA RD SALINAS, CA 93908-8950 Limited HAMPTON INN 17777 Center Court Dr. #725 MARINA, CA 93933 Limited Hampton Inn & Suites/Salinas Hotel
Investors 523 Work St. Salinas, CA 93901 Limited
HAMPTON INN (formerly LaQuinta) 2401 DEL MONTE AVENUE MONTEREY, CA 93940 Limited HHLP SANCTUARY ASSOCIATES 3295 DUNES RD MARINA, CA 93933-2002 Full Hidden Valley Inn 102 W CARMEL VALLEY RD Carmel Valley, CA 93924-9573 Limited Highlands Inn 140 HIGHLAND DR CARMEL, CA 93923-9607 Limited HILTON GARDEN INN 1000 AGUAJITO RD MONTEREY, CA 93940 Full HOFSAS HOUSE INC. P.O. BOX 1195 CARMEL CA 93921 Limited Holiday Inn Express 1400 Del Monte Blvd. Seaside, CA 93955 Limited HOLIDAY INN EXPRESS 443 WAVE STREET MONTEREY, CA 93940 Limited Holiday Inn Express & Suites 195 Kern St. Salinas, CA 93905 Limited Holiday Inn Express & Suites
Marina 189 SEASIDE AVE MARINA, CA 93933-2505 Limited
Holman Ranch, LLC 60 HOLMAN RD Carmel Valley, CA 93924-9620 Limited HOME 2 SUITES 1534 Fremont Blvd Suite D MARINA, CA 93933 Limited HORIZON INN P. O. BOX 1693 CARMEL CA 93921 Limited
HOTEL 1110 1110 DEL MONTE AVENUE MONTEREY, CA 93940 Limited HOTEL ABREGO 755 ABREGO ST. MONTEREY, CA 93940 Full
HOTEL CARMEL 8000 S Arizona Grand Pkwy PHOENIX AZ 85044 Limited HOTEL PACIFIC 300 PACIFIC STREET MONTEREY, CA 93940 Limited HOWARD JOHNSON 416 RESERVATION RD MARINA, CA 93933-3320 Limited Howard Johnson Inn/Ambakari, Inc 131 John St. Salinas, CA 93901 Limited HYATT REGENCY MONTEREY ONE OLD GOLF COURSE RD. MONTEREY, CA 93940 Full IHG ARMY POM Presidio of Monterey MONTEREY, CA 93940 Full Inn at King City 4 Broadway Cir. KING CITY, CA 93930 Limited Inn At Moss Landing Point 8425 MOSS LANDING RD D Moss Landing, CA 95039-9679 Limited MCTID Management District Plan 31
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Inn At Spanish Bay, Attn: David
Hoopingarner 2700 17 MILE DR PEBBLE BEACH, CA 93953 Luxury Inn at the Pinnacles 32025 Stonewall Canyon Rd SOLEDAD, CA 93960 Limited INN BY THE BAY MONTEREY 936 MUNRAS AVENUE MONTEREY, CA 93940 Limited Inns of California 1215 De La Torre Salinas, CA 93905 Limited INTERCONTINENTAL – The Clement 750 CANNERY ROW MONTEREY, CA 93940 Full JABBERWOCK 598 LAINE ST. MONTEREY, CA 93940 Limited
Keefers Inn 615 Canal St KING CITY, CA 93930 Limited
LA PLAYA HOTEL 8000 S Arizona Grand Pkwy PHOENIX AZ 85044 Luxury LAGUNA LODGE 430 RESERVATION RD MARINA, CA 93933-3320 Limited LAMPLIGHTER INN PO BOX 6286 CARMEL CA 93921 Limited
Laurel Inn 801 W. Laurel Dr. Salinas, CA 93906 Limited
Lincoln Green Inn 26200 CARMELO ST CARMEL, CA 93923-9134 Limited LOBOS LODGE P.O. Box L-1 CARMEL CA 93921 Limited
LONE OAK MOTEL 2221 NO. FREMONT ST. MONTEREY, CA 93940 Limited Los Laureles Lodge 313 W CARMEL VALLEY RD Carmel Valley, CA 93924-9415 Full LOVERS POINT INN 9600 Blue Larkspur Ln Ste 101 MONTEREY, CA 93940-6585 Limited Lucia Lodge 62400 HIGHWAY 1 BIG SUR, CA 93920-9533 Limited MARIPOSA INN 1386 MUNRAS AVENUE MONTEREY, CA 93940 Limited MARRIOTT SPRINGHILL SUITES 215 10TH ST MARINA, CA 93933-6004 Limited MARTINE INN PO BOX 330 PACIFIC GROVE, CA 93950-0321 Limited MERRITT HOUSE 386 PACIFIC ST. MONTEREY, CA 93940 Limited Mission Ranch 26270 DOLORES ST CARMEL, CA 93923-9218 Full Monarch Inn 633 Broadway St. KING CITY, CA 93930 Limited MONARCH RESORT 1111 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2312 Limited MONTE VERDE INN PO BOX 394 CARMEL CA 93921 Limited
MONTE VERDE INN EAST P.O.BOX 394 CARMEL CA 93921 Limited MONTEREY BAY INN 242 CANNERY ROW MONTEREY, CA 93940 Limited MONTEREY BAY LODGE 55 CAMINO AGUAJITO MONTEREY, CA 93940 Limited MONTEREY FIREPLACE INN 2362 N. Fremont MONTEREY, CA 93940 Limited MONTEREY FIRESIDE MOTEL 1131 TENTH ST. MONTEREY, CA 93940 Limited MONTEREY HOSTEL 778 HAWTHORNE ST. MONTEREY, CA 93940 Limited MONTEREY HOTEL 406 ALVARADO MONTEREY, CA 93940 Limited
MONTEREY MARRIOTT 350 CALLE PRINCIPAL MONTEREY, CA 93940 Full MONTEREY OCEANSIDE INN 2030 DEL MONTE AVENUE MONTEREY, CA 93940 Limited MONTEREY PENINSULA INN 1101 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2312 Limited Monterey Pines Inn 1298 MUNRAS AVENUE MONTEREY, CA 93940 Limited MONTEREY PLAZA 400 CANNERY ROW MONTEREY, CA 93940 Full
MONTEREY SURF INN 1200 MUNRAS AVENUE MONTEREY, CA 93940 Limited MONTEREY TIDES HOTEL 2600 SAND DUNES DRIVE MONTEREY, CA 93940 Full MOTEL 6 2124 NORTH FREMONT MONTEREY, CA 93940 Limited
Motel 6 #0639/G6 Hospitality
Property LLC 1257 De La Torre Salinas, CA 93905 Limited MOTEL 6 #1026 100 RESERVATION RD MARINA, CA 93933-2517 Limited MCTID Management District Plan 32
November 2, 2022
Motel 6 #1370/G6 Hospitality
Property LLC 140 Kern St. Salinas, CA 93901 Limited
MOTEL 6 MONTEREY DOWNTOWN 1240 MUNRAS AVENUE MONTEREY, CA 93940 Limited Motel 6 Soledad 152 San Felipe Rd Soledad CA 93960 Limited Mountain Paradise 17717 CACHAGUA RD Carmel Valley, CA 93924-9319 Limited MUNRAS INN 1010 MUNRAS AVE MONTEREY, CA 93940 Limited
NORMANDY INN 700 UNIVERSITY AV.#150 SACRAMENTO CA 95925 Limited OCEAN VIEW LODGE P. O. BOX 1693 CARMEL CA 93921 Limited OCM LIGHTHOUSE LODGE LLC 1150 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2360 Limited OLD MARINA INN 3110 DEL MONTE BLVD MARINA, CA 93933-3049 Limited OLD MONTEREY INN 500 MARTIN STREET MONTEREY, CA 93940 Limited OLD SAINT ANGELA INN 321 CENTRAL AVE PACIFIC GROVE, CA 93950-2934 Limited OLYMPIA MOTOR LODGE PO BOX 51907 PACIFIC GROVE, CA 93950-6907 Limited Pacific Best Inn 1141 Fremont Blvd. Seaside, CA 93955 Limited PACIFIC GARDENS INN 701 ASILOMAR BLVD PACIFIC GROVE, CA 93950-3701 Limited PACIFIC GROVE INN PO BOX 2106 MONTEREY, CA 93942-2215 Limited PACIFIC GROVE PLAZA PO BOX 476 PACIFIC GROVE, CA 93950-0476 Limited PACIFIC INN MONTEREY 2332 NORTH FREMONT ST. MONTEREY, CA 93940 Limited PADRE OAKS MOTEL 1278 MUNRAS AVE MONTEREY, CA 93940 Limited Pal Rest Easy LLC 196 Infantry RD Fort Hunter Liggett, CA 93928 Limited Parkfield Inn 70403 PARKFIELD RD SAN MIGUEL, CA 93451 Limited PELICAN INN 2058 NO. FREMONT ST. MONTEREY, CA 93940 Limited Pessagno Winery 1645 RIVER RD SALINAS, CA 93908-8751 Limited PINE ACRES LODGE 1380 LEAD HILL BLVD 201 ROSEVILLE, CA 95661-2997 Limited PINE INN P.O. Box 250 CARMEL CA 93921 Full
PORTOLA HOTEL & SPA 2 PORTOLA PLAZA MONTEREY, CA 93940 Full Post Ranch Inn 47900 HIGHWAY 1 BIG SUR, CA 93920-9576 Luxury Prunedale Motor Lodge 1017 EL CAMINO REAL N PRUNEDALE, CA 93907-3359 Limited Prunedale Motor Lodge Cabins 1017 EL CAMINO REAL N PRUNEDALE, CA 93907-3359 Limited Quail Lodge And Golf Club 8205 VALLEY GREENS DR CARMEL, CA 93923-9512 Luxury Quality Inn 1190 Broadway St. KING CITY, CA 93930 Limited QUALITY INN - FAIRGROUNDS 2075 NO. FREMONT ST. MONTEREY, CA 93940 Limited QUALITY INN - MUNRAS (Arbor Inn) 1058 MUNRAS AVENUE MONTEREY, CA 93940 Limited Quality Inn/Om Namah 144 Kern St Salinas, CA 93905 Limited RAMADA INN 323 RESERVATION RD MARINA, CA 93933-3218 Limited RAMADA LTD. CARMEL HILL 1182 CASS STREET MONTEREY, CA 93940 Limited

RED LION INN (FORMERLY BAY
PARK HOTEL) 1425 MUNRAS AVENUE MONTEREY, CA 93940 Full
RED ROOF INN 2227 N FREMONT ST MONTEREY, CA 93940 Limited Residence Inn Salinas 17215 EL RANCHO WAY SALINAS, CA 93907-1732 Limited Rex Motel/Parshottambhai M Ahir 305 Kern St. Salinas, CA 93905 Limited Ripplewood Resort 47047 HIGHWAY 1 BIG SUR, CA 93920 Full Riverside Campground 47020 HIGHWAY 1 BIG SUR, CA 93920-9556 Limited RODEWAY INN 2041 FREMONT ST MONTEREY, CA 93940 Limited
Rodeway Inn (Formerly Knights Inn) 1374 MUNRAS AVENUE MONTEREY, CA 93940 Limited MCTID Management District Plan 33
November 2, 2022
ROSEDALE INN 4781 SAN LUCAS WAY SAN JOSE, CA 95135-2345 Limited Sai Enterprises DBA Motel 6 3 Broadway Cir. KING CITY, CA 93930 Limited Salinas Travel Inn/MJ Nahal Inc 425 Monterey St. Salinas, CA 93901 Limited Salinas Valley Motel/Aatray Hotels,
Inc/BAPS LLC 2100 N. Main St. Salinas, CA 93906 Limited Sand Castle Inn 1011 La Salle Ave. Seaside, CA 93955 Limited Sand Dollar Inn (formerly Magic
Carpet Inn) 1875 Fremont Blvd Seaside, CA 93955 Limited Sandpiper Inn 2408 BAY VIEW AVE CARMEL, CA 93923-9118 Limited SEA VIEW INN 35 W.POPLAR AV. SAN MATEO CA 94402 Limited SeaLamp Inn 2201 Del Monte Blvd. Seaside, CA 93955 Limited Seaside Inn 1986 Del Monte Blvd. Seaside, CA 93955 Limited SEVEN GABLES INN 301 N CANON DR STE 302 BEVERLY HILLS, CA 90210-4724 Limited Silver Saddle 705 Broadway St KING CITY, CA 93930 Limited Soledad Motel 8 1013 Front St Soledad CA 93960 Limited
SPINDRIFT INN 652 CANNERY ROW MONTEREY, CA 93940 Full
STAGE COACH LODGE 1111 10 ST MONTEREY, CA 93940 Limited Steinbeck Lodge/Travelodge/J S Inc 109 John St. Salinas, CA 93901 Limited STONEHOUSE INN 5130 COMMERCIAL CIRCLE CONCORD CA 94520 Limited Stonepine Estate Resort 150 E CARMEL VALLEY RD Carmel Valley, CA 93924-9605 Full SUNSET HOUSE PO BOX 6286 CARMEL CA 93921 Limited
SUNSET INN 133 ASILOMAR BLVD PACIFIC GROVE, CA 93950-2094 Limited SUPER 8 - FREMONT 2120 NO. FREMONT ST. MONTEREY, CA 93940 Limited SUPER 8 - MUNRAS 1300 MUNRAS AVENUE MONTEREY, CA 93940 Limited Super 8/Ram Hotels LLC 131 Kern St. Salinas, CA 93906 Limited Sure Stay Hotel 1893 Fremont Blvd. Seaside, CA 93955 Limited SVENDSGAARD'S INN PO BOX 101 CARMEL CA 93921 Limited
TALLY HO INN P.O. Box 3726 CARMEL CA 93921 Limited
Tehama Golf Club, LLC 25000 Via Malpaso Canada
Woods CARMEL, CA 93923 Limited
THE BRIARWOOD INN PO BOX 5245 CARMEL CA 93921 Limited
THE BRIARWOOD INN II PO BOX 5245 CARMEL CA 93921 Limited THE COLONIAL TERRACE P.O. BOX 1375 CARMEL CA 93921 Limited The Holly Farm 9200 CARMEL VALLEY RD CARMEL, CA 93923-9574 Limited THE HOMESTEAD 26270 DOLORES ST. CARMEL CA 93923 Limited The Inn at 1252 Monterey 1252 MUNRAS AVENUE MONTEREY, CA 93940 Limited The Inn at 1252 Monterey 1262 MUNRAS AVENUE MONTEREY, CA 93940 Limited The Lodge At Pebble Beach Attn:

David Hoopingarner 1500 CYPRESS DR PEBBLE BEACH, CA 93953 Luxury THE SEA BREEZE INN 1100 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2362 Limited THE STEVENSON MONTEREY 675 MUNRAS AVENUE MONTEREY, CA 93940 Limited THE VAGABOND'S HOUSE PO BOX 2747 CARMEL CA 93921 Limited Thunderbird Motel 1933 Fremont Blvd. #3128 Seaside, CA 93955 Limited Tickle Pink Motor Inn 155 HIGHLAND DR CARMEL, CA 93923-9601 Limited TRAVELODGE - FAIRGROUNDS 2030 N. FREMONT ST MONTEREY, CA 93940 Limited MCTID Management District Plan 34
November 2, 2022
Treebones Resort 71895 HIGHWAY 1 BIG SUR, CA 93920-9573 Limited Vendange Carmel Inn & Suites 24815 CARPENTER ST CARMEL, CA 93923 Limited Ventana Big Sur 48123 HIGHWAY 1 BIG SUR, CA 93920-9538 Luxury VICTORIAN INN 487 FOAM STREET MONTEREY, CA 93940 Limited

VILLA FRANCA (FORMERLY EL
DORADO INN) 900 MUNRAS AVENUE MONTEREY, CA 93940 Limited Vision Quest Safari Bed & Breakfast 400 RIVER RD SALINAS, CA 93908-9627 Limited Wagon Wheel Motel 1217 N. Main St. Salinas, CA 93906 Limited

WAVE STREET INN (PREVIOUSLY
OTTER INN) 571 WAVE ST MONTEREY, CA 93940 Limited
WAYSIDE INN PO BOX 101 CARMEL CA 93921 Limited
Western Motel/Western Skylodge
LLC 6 S. Wood St. Salinas, CA 93906 Limited
WILKIES INN 1038 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2424 Limited Willow Lodge 719 S. Main St. Salinas, CA 93901 Limited
Zen Mtn Center/Tassajar Springs
C/O Ccao Controlle 39171 TASSAJARA RD CARMEL VALLEY, CA 93924-9316 Limited *List as of October 2022
MCTID Management District Plan 35
November 2, 2022
APPENDIX 3 – BENEFITS BY HOTEL TYPE
PROGRAMS / ACTIVITIES Luxury
NonLuxury
Full
Service
Limited
Service
General: Inclusion in Sales, Marketing, and Promotional Opportunities* X X X General: Listing on www.SeeMonterey.com with direct link to hotel page X X X General: Inclusion on SeeMonterey Online travel planning app X X X General: Inclusion on SeeMonterey Consumer Brochures X X X General: Access to SeeMonterey research reports and insights X X X General: Represented by SeeMonterey at industry conferences & events X X X Consumer: Opportunity to participate in Consumer Marketing Campaigns X X X Consumer: Public Relations participation opportunities X X X Consumer: Familiarization Tour (Press & Influencer) Opportunities X X X Consumer: Inclusion Opportunity in Social Media Efforts X X X Consumer: Inclusion Opportunity in Destination Video & Photo Shoots X X X Consumer: New project & special event opportunities X X X Travel Trade: Trade Show Opportunities X X X
Travel Trade: Sales Mission Opportunities X X X
Travel Trade: Lead Opportunities X X X
Travel Trade: Familiarization Tour Leads (Press & Travel Trade) Opportunities X X X
Meetings/Group: Brochure Inclusion (Mention) X X X
Meetings/Group: Familiarization Tours X X
Meetings/Group: Tradeshow Participation X X
Meetings/Group: Site Inspections X X
Meetings/Group: Marketing Campaigns X X
Meetings/Group: Brochure Inclusion (Full Page) X X
Inclusion in SeeMonterey destination partnership with Virtuoso Network X MCTID Management District Plan 36
November 2, 2022
Representation a luxury travel conferences (e.g. ILTM) X Representation at VCA luxury travel week X
Featured in Luxury Advertising Campaign X
Featured in Luxury Public Relations Campaign X
* Each property that meets the minimum criteria of the client, journalist, or meeting planner will be promoted.

MCTID Management District Plan 37
November 2, 2022
APPENDIX 4 - TOURISM ECONOMICS STUDY
2 Introduction
Monterey visitor economy: overview and trends
MCCVB performance
Growing the visitor economy
Competitive funding analysis
Impact of TID funding on Monterey’s economy
Appendix 1: The impact of TIDs
Appendix 2: The ROI of destination marketing
1 2
3 4
5 6

TABLE OF

CONTENTS
1 Introduction
4 In 2019, visitors to Monterey County spent a total of $3.2 billion locally and booked 3.1 million rooms. Total visitor spending increased 43% from 2011 to 2019. The revenue generated by the Monterey County Tourism Improvement District (TID) and the work performed by the Monterey County Convention and Visitors Bureau (MCCVB) is a major factor in this accelerated growth.

This report provides a comprehensive overview of the TID and its impact on Monterey’s tourism sector and overall economy. It highlights key trends over the past decade and quantifies how TID funding benefits hotels across the county.

Right now, Monterey is experiencing a strong recovery from the pandemic. Continued support and a renewal of the TID will support these trends into the future and ensure that the county’s visitor economy reaches its full potential.

Introduction
5 In 2019, visitors spent
$3.2 billion in Monterey
County, supporting
40,480 jobs and $2.1
billion in local income
(including direct,
indirect, and induced
impacts).

Key findings
From 2011 to 2019,
spending in Monterey
increased 43%, faster
than the state and
region.

MCCVB’s group sales
team was increasing its
bookings prior to the
pandemic and provided
an ROI of 14-1.

MCCVB sales and
marketing are integral
to increasing spending
per visitor and driving
visitation in the offseason.

Monterey County’s TID
will generate $2.3 billion
in visitor spending over
the next decade.

Adopting the MCCVB’s
proposed assessment
would generate an
additional $2.2 billion,
greatly accelerating postpandemic growth.

Monterey Visitor Economy: 2 Overview and Trends
7 Importance of the visitor economy
Visitors to Monterey County spent $3.2 billion in 2019. Most of this spending accrued to the accommodations and food services sectors.

This spending directly generated (i.e., not including indirect and induced effects) 27,160 jobs, $1.4 billion of income, and $298 million in state and local taxes.

Monterey County represents approximately one-third of the Central Coast region’s tourism sector and 2% of the state’s tourism sector. *Much of this report focuses on 2019 (fiscal or calendar year) as a benchmark for a typical year.

In 2019*, visitors spent $3.2 billion in Monterey County, supporting 40,480 jobs and $2.1 billion in local income** Key tourism indictors in Monterey County, 2019
Dollar figures in millions
Sources: Dean Runyan Associates, Tourism Economics
**totals include indirect and induced impacts calculated by Tourism Economics Monterey Visitor Economy:

Overview and Trends
Total visitor spending $3,241
Accommodations $879
Food Service $967
Food Stores $78
Local Tran. & Gas $267
Arts, Ent. & Rec. $394
Retail Sales $520
Visitor Air Tran. $24
Other $112
Total Earnings** $2,161
Direct earning $1,420
Total jobs** 40,480
Direct jobs 27,160
Total S&L taxes** $398
Direct S&L taxes $298
8 Trends in the visitor economy
Meanwhile earning and jobs increased 65% and 32%, respectively.

Visitor spending increased 43% from 2011 to 2019. Growth of the visitor economy* in Monterey Dollar figures in billions
Source Dean Runyan Associates
*earnings and jobs include direct impacts only
0 5
10 15
20 25
30 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Thousands
Spending (left axis)
Earnings (left axis)
Jobs (right axis)
Monterey Visitor Economy:

Overview and Trends
9 Hotel sector KPIs
From FY2016-2019, ADR grew from $192 to $224, a 17% increase over three years
RevPAR grew to $164 from $137, a 20% increase.

Hotel occupancy increased to 73% from 71%.

Hotel performance metrics were all strengthening in the years prior to the pandemic.

Hotel sector KPIs in Monterey County
Dollars
Source Dean Runyan Associates
Monterey Visitor Economy:

Overview and Trends
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0
$50
$100
$150
$200
$250
$300
2016 2017 2018 2019 2020 2021
Occupancy (right axis)
ADR (left axis)
RePAR (left axis)
10 Visitor spending share
In 2019, Monterey County accounted for 34.7% of all spending in the Central Coast region, up from 32.5% in 2011. This increase of 2.2% may seem small; but given that visitors spent $9.4 billion dollars in the region in 2019, the 2.2% increase represents an additional $202 million in visitor spending injected into Monterey’s economy.

Monterey has been capturing an increasing share of the
region's tourism market.

Monterey share of visitor spending in the Central Coast region Share of total regional spending
Source: Dean Runyan Associates
* Includes Monterey, San Benito, San Luis Obispo, Santa Barbara, and Ventura Counties

31.0%

31.5%

32.0%

32.5%

33.0%

33.5%

34.0%

34.5%

35.0%

35.5%
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey Visitor Economy:

Overview and Trends
11 Visitor spending comparisons
Monterey County outpaced three of four nearby leisure-oriented counties from 2011-2019, including Sonoma, San Luis Obispo, and Santa Barbara.

Monterey exhibited strong growth compared to other nearby leisure-oriented counties.

Visitor spending growth in Monterey and local competitors Index (2011=100)
Source: Dean Runyan Associates
90 100
110
120
130
140
150
160
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
Sonoma
Napa
San Luis Obispo
Santa Barbara
Monterey Visitor Economy:

Overview and Trends
12 Tourism employment growth comparisons
Direct employment in Monterey County reached 27,160 in 2019, up from 20,510 in 2011. This represents an increase of 32% over that time period, which is slightly faster than growth in the state and region.

Direct tourism employment in Monterey has grown at an
accelerated rate.

Direct tourism employment growth in Monterey, the region, and the state Index (2011=100)
Source: Dean Runyan Associates
90 95
100
105
110
115
120
125
130
135
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
Central Coast
California
Monterey Visitor Economy:

Overview and Trends
13 Hotel sector growth comparisons
Hotel room revenue in Monterey outpaced 10 competing destinations and grew almost 8% faster than the state.

Monterey led its competition in terms of room revenue
growth over the three years prior to the pandemic.

Room revenue growth in Monterey and competitors, FY2017-2019* Percent total growth
Source: STR
*We use a shorter time horizon due to data limitations

17.8%

17.6%

11.8%

10.3%

10.2%

10.0%

9.4%

8.8%

8.3%

7.1%

6.6%

4.3%
0% 10% 20%
Monterey County
South Lake Tahoe
San Francisco/San Mateo
Sonoma County,
San Jose/Santa Cruz
California
San Diego
Palm Springs
Santa Barbara/Santa Maria
Newport Beach/Dana Point
Napa County
Laguna Beach
Monterey Visitor Economy:

Overview and Trends
14 Visitor spending comparisons
While Monterey’s strong performance is notable over the entire decade, the county achieved particularly robust growth in the later half of the decade.

Between 2015 and 2019, visitor spending in Monterey increased 20%, outpacing both the region (+17%) and the state (+19%).

Visitor spending increased at a faster rate in Monterey than in the state or region.

Visitor spending growth in Monterey, the region, and the state Index (2011=100)
Source: Dean Runyan Associates
90 100
110
120
130
140
150
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
Central Coast
California
Monterey Visitor Economy:

Overview and Trends
3 MCCVB Performance
16 Advertising ROI
In the first half of FY2022, media campaigns run by the MCCVB generated awareness of Monterey County as a tourism destination in 4.2 million households in both drive and fly markets. These newly aware households made 115,261 trips to Monterey County and spent $136.8 million locally.

These ads produced an ROI of 75-to-1.

MCCVB advertising generates a significant ROI in drive and fly markets.

MCCVB advertising performance by market type, mid-year FY2022 Source: SMARI
MCCVB Performance
Drive Fly Total
Aware households created 2,500,000 1,700,000 4,200,000
Influenced trips to Monterey 45,857 69,404 115,261
Influenced visitor spending (millions) $44.0 $92.8 $136.8 Ad spending (millions) $0.7 $1.1 $1.8
ROI 62-to-1 84-to-1 75-to-1
17 Group sales performance
The sales teams booked 255 events in FY2019, up from 250 in FY2016.

Meanwhile, rooms booked increased to 69,000 from 61,200, a 13% increase over the same time period.

The average size of events also increased in this time period, growing to 271 rooms per event from 245.

The MCCVB’s group sales team was increasing its bookings prior to the pandemic.

MCCVB Performance
MCCVB group sales
Rooms booked
Source: MCCVB
215
220
225
230
235
240
245
250
255
260
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2016 2017 2018 2019
Rooms
Events
18 Group sales return on investment
The events booked by the MCCVB sales team resulted in 96,800 total room sales and $44 million in visitor spending. This provided an ROI of 14-to-1 when measured against their $3.1 million budget.

The MCCVB’s group sales team generated a substantial ROI in FY2019.

MCCVB Performance
MCCVB group sales performance, FY2019
Source: MCCVB; Tourism Economics
*This includes bookings in the event room block and an estimation of outside the block bookings from Tourism Economics’ and Destination International‘s Event Impact Calculator. ** Includes spending by the event organizer.

Total event rooms* 96,800
Spending per room** $455
Total Spending (millions) $44.0
Sales and group services expenses (millions) $3.1
Group sales ROI 14-to-1
19 Group sales and seasonality
While group sales* remain low in November and December, they create a substantial boost in the shoulder months of Jan.-Apr. and Sep.-Oct. when transient (i.e., not group or contract) room bookings are lower. *As reported by STR, which includes additional rooms beyond what the MCCVB books.

Group sales help fill out the off-peak “shoulder” seasons for the Monterey visitor economy.

MCCVB Performance
Seasonality of room bookings in Monterey County, 2018
Monthly share of annual rooms
0%
2%
4%
6%
8%
10%
12%
14%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Transient rooms
Group rooms
Source: STR
4 Growing the Visitor Economy
21 Overcoming supply constraints
This section reviews ways to increase the economic impact of tourism given current supply constraints
While a 73% occupancy rate may leave an impression that there are numerous available rooms, this is close to full capacity for a leisure destination. It is rare to see non-urban destinations (cities fill weekdays and ‘low’ seasons with business travelers) maintain annual occupancy rates above 75%.

Therefore, increasing the economic impact of tourism in Monterey County largely depends on some combination of increasing room inventory, increasing visitor spending per booked room, and filling out the shoulder periods (especially weekdays).

Monterey’s pre-pandemic occupancy rate was nearing full capacity.

Growing the Visitor Economy
Occupancy rate in Monterey County and competing destinations, FY2019 Source: STR
82%
78%
75%
75%
75%
73%
73%
72%
71%
70%
68%
62%
0% 20% 40% 60% 80% 100%
San Francisco/San Mateo
San Diego
California
San Jose/Santa Cruz
Sonoma County
Monterey County
Newport Beach/Dana Point
Laguna Beach,
Napa Valley
Santa Barbara/Santa Maria
South Lake Tahoe
Palm Springs
22 Importance of visitor value
To maximize the value of each visitor, the MCCVB can concentrate on the domestic-fly and overseas markets. The domestic-fly market spends 42% more than the drive market, and the overseas* market spends 192% more than the domestic drive market.
*The overseas spending estimate is a statewide average that comes from Tourism Economics’ International State Travel database and includes data inputs from a dozen sources including the NTTO, the BEA, and VisaVue Travel. This includes spending in California, but not spending on travel to the US.

Visitors from greater distances spend significantly more per trip.

Growing the Visitor Economy
Spending per trip by origin market
Sources: SMARI; Tourism Economics Dollars per trip
*California figure – calendar year 2020, other figures FY2021 $959
$1,364
$2,799
$0 $1,000 $2,000 $3,000
Domestic drive
Domestic fly
Overseas*
23 Importance of visitor value
Compared to the domestic drive market, the domestic fly market spends 31% more per night, the business conference market spends 158% more, and the overseas* market spends 190% more.
*The overseas origin market estimate uses San Jose data, the closest available data point, and comes from Tourism Economics’ Global City Travel database. This uses data inputs from a dozen sources including the NTTO, the BEA, and VisaVue Travel.

This includes spending in San Jose, but not spending on travel to the US.

Visitors from greater distances spend significantly more per night.

Growing the Visitor Economy
Spending per night by origin market
Sources: SMARI; Tourism Economics Dollars per night
*San Jose figure – calendar year 2020, other figures FY2021 ** Includes spending by the event organizer.
$153
$201
$455
$561
$0 $100 $200 $300 $400 $500 $600
Domestic drive
Domestic fly
Business conference**
Overseas*
24 Boosting the low season
While Monterey’s 73% annual occupancy rate is quite high for a non-urban leisure destination, MCCVB can realize the opportunity to increase lowseason bookings.

If the six low-season months (average occupancy 64%) matched the occupancy rate of the six high-seasons months (80%), Monterey would see an increase of 354,000 rooms booked—a 10% increase over its current total.

MCCVB is also well-positioned to increase off-season
bookings.

Growing the Visitor Economy
Seasonality and potential new booking in Monterey, 2019 Sources: STR; Tourism Economics
*Potential new room bookings if these months could match the high-season occupancy rate of 80%.

Rooms booked Occupancy rate Potential new bookings*
Jan 214,000 56% 93,000
Feb 215,000 64% 53,000
Mar 253,000 68% 44,000
Apr 277,000 75% 18,000
May 290,000 76% --
Jun 302,000 82% --
Jul 319,000 84% --
Aug 317,000 83% --
Sep 291,000 79% --
Oct 295,000 77% --
Nov 248,000 67% 49,000
Dec 210,000 55% 97,000
Total 3,231,000 354,000
5 Competitive Funding Analysis
26 TID overview
Full-service hotels are assessed $2.00 and other hotels are assessed $1.00. In FY2019, the TID (tourism improvement district) generated $4.2 million of funding dedicated for tourism promotion through the MCCVB and represented the largest source of funding for tourism promotion in the county.

The Monterey County TID assessment that funds the MCCVB ranges from $1.00 to $2.00.

Competitive Funding Analysis
Monterey hotel sector and TID details by scale, FY2019
Source: MCCVB, STR
ADR Room revenue % of Revenue
Current Avg TID per
Room Assumption
Current TID
Contribution
Contribution % of
Total TID
Luxury $455 $294,000,000 41% $2.00 $1,293,000 31%
Upper Upscale $229 $134,000,000 19% $1.50 $875,000 21%
Upscale $180 $48,000,000 7% $1.25 $333,000 8%
Upper Midscale $185 $75,000,000 10% $1.15 $468,000 11%
Midscale $179 $39,000,000 5% $1.00 $218,000 5%
Economy $132 $133,000,000 18% $1.00 $1,013,000 24%
Total $231 $724,000,000 100% $0.00 $4,201,000 100%
27 TID rate comparison
This set includes the MCCVB’s competitive set and additional DMOs that disclosed their assessment rate to Destinations International (DI).

Since the assessment is a major source of revenue for the MCCVB (and the majority of other DMOs on this list), this results in a limited tourism promotion budget for Monterey County. Increasing the TID assessment rate could generate additional funding and provide competitive funding for tourism promotion in Monterey County.
*Monterey’s per room assessment scheme results in an overall rate of 0.6% of room revenue.

Monterey’s TID assessment of 0.6%* is much lower than the competitive set average of 2.1%.

Competitive Funding Analysis
TID assessment rates in Monterey and competitors
TID assessment rate
Sources: Dean Runyan Associates; Tourism Economics

4.0%

3.0%

2.9%

2.3%

2.1%

2.0%

1.5%

1.0%

0.6%
0% 2% 4% 6%
Stockton
Huntington Beach
Newport Beach
Palm Springs
Pasadena
San Francisco
Average
Anaheim
Portland
Sonoma County
Napa Valley
San Diego
Orange County
Los Angeles
San Luis Obispo
Mendocino County
Monterey County
28 Napa County, CA
Monterey
County, CA
Santa Barbara, CA
Sonoma
County, CA
Stockton, CA
Ventura,
CA
San Luis
Obispo, CA***
Huntington
Beach, CA
Palm Springs,
CA
Lake Tahoe, CA
Newport,
CA
$0
$5
$10
$15
$20
$25
0 2 4 6 8 10 12 14 16
Thousands
Competitive funding analysis
This analysis compares destinations’ DMO budgets relative to the size of the local tourism sector (as measured by hotel room inventory). This analysis shows that Monterey County tourism promotion is underfunded compared to the line of best fit (the dotted line).

We chose to conduct a pre-pandemic analysis to provide perspective on a ‘normal’ level of DMO spending and room inventory, as the pandemic has caused severe swings.

Tourism promotion in Monterey County is underfunded
relative to local competitors.

Competitive Funding Analysis
Hotel, rooms (000’s)
Sources: Tourism Economics, DI, STR
*2018 or 2019 depending on destination’s reporting
** San Luis Obispo has greatly increased their DMO’s budget recently. The destination will likely spend close to $10m in 2022, up from $4.6m in this analysis.

Hotel rooms and DMO revenue in competing destinations, pre-pandemic* DMO budget, millions
Competitive
funding line
29 Competitive funding analysis
Examining the same data as the prior slide, we see that Monterey County provides $630 of tourism promotion spending for every hotel room, 38% below the set average.

Monterey County’s tourism promotion budget is 38% below the set average.

Competitive Funding Analysis
Funding dollars per hotel room
Sources: Tourism Economics, DI, STR
*2018 or 2019 depending on destination’s reporting
** San Luis Obispo has recently increased their DMO’s budget, and their figure may double in 2022.

Tourism promotion funding per room in select destinations, pre-pandemic $2,000
$1,536
$1,328
$1,310
$1,031
$1,012
$865
$687
$634
$630
$624
$484
$0 $1,000 $2,000 $3,000
Huntington Beach, CA
Napa County, CA
Palm Springs, CA
Sonoma County, CA
Santa Barbara, CA
Average
Newport, CA
Lake Tahoe, CA
Ventura, CA
Monterey County, CA
Stockton, CA
San Luis Obispo, CA**
Impact of TID Funding on the 6 Monterey Economy
31 Importance of visitor value
Increasing or decreasing the TID assessment rate would do little to change Monterey’s price competitiveness amongst its main competitors. Economically, elimination of the TID is unlikely to produce any positive benefit on room demand. Tourism Economics modeling on behalf of STR has consistently found hotel room demand to be highly inelastic at the market level. That is, while an individual property may gain or lose share within a market based on price, a market-wide shift in rate has no appreciable impact on room demand.

The impact of the loss of tourism promotion funding would in all likelihood far exceed any possible negative effect of higher room costs. We also note that from FY2016-2019, ADR increased 17% while the occupancy rate grew to 73% from 71%. This indicates that price sensitivity does not seem to be a major factor for visitors.

In sum, eliminating the TID would not impact hotels’ price competitiveness but would appreciably undercut Monterey’s competitive market position in the absence of concerted destination sales and marketing.

Changing the TID assessment rate would not impact local hotels’ price competitiveness.

Impact of TID Funding on the Monterey Economy
Dollars
Source: STR
* The US Open boosted room rates in Monterey County FY2019.

Average room rate in Monterey and competitors, FY2019*
$353
$333
$251
$226
$224
$200
$199
$181
$172
$171
$169
$131
$0 $100 $200 $300 $400
Laguna Beach
Napa County
San Francisco/San Mateo
Newport Beach/Dana Point
Monterey County
Santa Barbara/Santa Maria
San Jose/Santa Cruz
Sonoma County,
Palm Springs
California
San Diego
South Lake Tahoe
32 Importance of visitor value
Based on prior calculations of paid media and group sales ROIs, we estimate that the MCCVB has an organizational ROI of 47-to-1 (i.e., one dollar of MCCVB funding generates $47 of visitor spending).

The MCCVB generated an ROI of $47-to-$1.

Sources: SMARI; MCCVB; Tourism Economics
MCCVB organizational ROI calculations
Impact of TID Funding on the Monterey Economy
Value Source / calculation
Paid media ROI on visitor spending 75-to-1 See 'MCCVB Performance' section Paid Media expenses share of total DMO budget 56% MCCVB Group Sales ROI on visitor spending 14-to-1 See 'MCCVB Performance' section Group sales share of total DMO budget 33% MCCVB
Organization ROI on visitor spending 47-to-1 (75 * 61%) + (14 * 33%) 33 Scenario development
Here we evaluate the impact of changes to the TID structure via three scenarios. In the Baseline Scenario the TID structure remains the same, in the TID elimination scenario the TID is removed, and in the Alternative TID Scenario the TID structure is changed to a three-tiered flat assessment that begins at $1.50 for limited-service hotels, $4.50 for full-service hotels, and $7.00 for luxury properties with biennial escalators.

We provide additional details on the three scenarios in fiscal year 2025, as this is the first year without a “cool-down” or “ramp-up” effect (i.e. the full effect of a funding increase/decrease will not be felt in the first two years of budget changes as lags exists between assessments being collected, distributed, media spending being increased/decreased, consumers making travel plans, and visitors actually traveling).

In 2025, our Baseline Scenario forecasted MCCVB’s revenue is $9.0 million.

In the TID Elimination Scenario, the MCCVB receives $4.0 million, a decrease of $5.0 million. We estimate a 47-to-1 ROI on this lost funding spending, which results in $233 million of lost visitor spending.

Changes in the TID could create an impact of several hundred million dollars.

Impact of TID Funding on the Monterey Economy
MCCVB revenue and visitor spending in three scenarios, FY2025 Dollar figures in millions
TID Elimination
Scenario
Baseline
Scenario
Alternative
Assessment Scenario
TID revenue $0.0 $5.0 $9.8
Jurisdiction investment $4.0 $4.0 $4.0
Total MCCVB revenue $4.0 $9.0 $13.8
Revenue change relative to baseline -$5.0 -- $4.8
Anticipated ROI revenue change* 47-to-1 -- 42-to-1
Change in visitor spending -$233 -- $204
Total visitor spending $3,157 $3,391 $3,594
Sources: SMARI; MCCVB; Tourism Economics
In the Alternative Assessment Scenario, the MCCVB receives $13.8 million in revenue, an increase of $4.8 million. To be conservative and account for diminishing marginal returns on new funding, we estimate a 42-to-1 ROI on this new funding, which results in $204 million of gained visitor spending. 34 '19-'32
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Growth Spending $3,189 $2,529 $2,197 $2,751 $3,295 $3,342 $3,391 $3,440 $3,525 $3,576 $3,627 $3,680 $3,733 $3,787 17% Earnings $1,387 $1,239 $991 $1,179 $1,405 $1,418 $1,431 $1,445 $1,473 $1,487 $1,501 $1,515 $1,529 $1,543 10% Jobs 26,895 23,765 19,342 24,226 28,431 28,265 28,100 27,936 28,053 27,890 27,727 27,565 27,404 27,244 2% Local taxes $168 $130 $114 $143 $172 $175 $178 $182 $186 $190 $193 $196 $200 $204 19% Sales tax $72 $58 $50 $63 $75 $76 $77 $78 $80 $81 $82 $83 $83 $84 15% TOT $71 $53 $47 $60 $72 $74 $76 $78 $80 $82 $84 $86 $88 $90 23% State taxes $142 $109 $96 $115 $143 $147 $153 $156 $159 $162 $164 $166 $169 $171 19% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Spending 100 79 69 86 103 105 106 108 111 112 114 115 117 119 Earnings 100 89 71 85 101 102 103 104 106 107 108 109 110 111 Jobs 100 88 72 90 106 105 104 104 104 104 103 102 102 101 Local taxes 100 78 68 85 103 105 106 108 111 113 115 117 119 121 Sales tax 100 81 70 87 104 105 106 108 110 111 113 114 115 117 TOT 100 75 66 84 101 104 106 109 112 115 117 120 123 126 State taxes 100 77 68 81 101 104 108 110 113 114 116 118 119 121 Baseline Scenario forecast
In our Baseline Scenario, visitor spending grows to $3.8 billion in FY2032**.

Impact of TID Funding on the Monterey Economy
Monterey County’s visitor economy, Baseline Scenario*
Dollar figures in millions
Sources: SMARI; MCCVB; Tourism Economics
*Fiscal years
**Based on MCCVB projections of hotel revenue
Monterey County’s visitor economy, Baseline Scenario
Index, (FY2019=100)
35 TID Elimination scenario
The TID Elimination scenario results in $2.3 billion dollars of lost spending over the next decade.

Impact of TID Funding on the Monterey Economy
Monterey County’s visitor economy, TID Elimination Scenario Dollar figures in millions
Source: Tourism Economics
*annual average
These spending losses result in losses of $939 million in earnings, $120 million in local taxes, and an average of 1,759 jobs annually. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total losses Baseline Scenario visitor spending $3,189 $2,529 $2,197 $2,751 $3,295 $3,342 $3,391 $3,440 $3,525 $3,576 $3,627 $3,680 $3,733 $3,787 -- Lost TID Scenario visitor spending -- -- -- -- $3,221 $3,192 $3,157 $3,201 $3,280 $3,325 $3,370 $3,416 $3,463 $3,510 -- Lost spending -- -- -- -- $73 $150 $233 $239 $245 $251 $257 $263 $270 $277 $2,259 Lost earnings -- -- -- -- $31 $64 $98 $100 $102 $104 $106 $108 $111 $113 $939 Lost jobs* -- -- -- -- 633 1,270 1,933 1,941 1,949 1,957 1,966 1,974 1,982 1,990 1,759 Lost local taxes -- -- -- -- $3.8 $7.9 $12.3 $12.6 $12.9 $13.3 $13.7 $14.1 $14.5 $14.9 $120 Sales tax -- -- -- -- $1.7 $3.5 $5.4 $5.5 $5.6 $5.8 $5.9 $6.0 $6.2 $6.3 $52 TOT -- -- -- -- $1.6 $3.2 $5.1 $5.3 $5.4 $5.6 $5.8 $6.0 $6.2 $6.4 $51 Lost state taxes -- -- -- -- $3.2 $6.6 $10.6 $10.8 $11.1 $11.4 $11.6 $11.9 $12.2 $12.5 $102 36 TID Elimination scenario
The TID elimination scenario results in $2.3 billion dollars of lost spending over the next decade.

Impact of TID Funding on the Monterey Economy
Future visitor spending growth in Monterey, two scenarios Dollars, billions
Source: Tourism Economics
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Thousands
Lost
Repeat
Baseline
TID Elimination
$2.3bn lost
over 10 years
37 Alternative Assessment Scenario
The Alternative Assessment Scenario results in $2.2 billion dollars of gained spending over the next decade.

Impact of TID Funding on the Monterey Economy
Monterey County’s visitor economy, Alternative Assessment Scenario Dollar figures in millions
These spending gains result in gains of $920 million in earnings, $118 million in local taxes, and an average of 1,716 jobs annually. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total gains Baseline Scenario visitor spending $3,189 $2,529 $2,197 $2,751 $3,295 $3,342 $3,391 $3,440 $3,525 $3,576 $3,627 $3,680 $3,733 $3,787 -- Alternative Assessment Scenario visitor spending -- -- -- -- $3,349 $3,448 $3,594 $3,638 $3,766 $3,812 $3,906 $3,953 $4,048 $4,096 -- Gained spending -- -- -- -- $55 $106 $204 $199 $242 $236 $279 $273 $316 $310 $2,218 Gained earnings -- -- -- -- $23 $45 $86 $83 $101 $98 $115 $112 $129 $126 $920 Gained jobs* -- -- -- -- 471 896 1,688 1,613 1,923 1,842 2,132 2,047 2,317 2,228 1,716 Gained local taxes -- -- -- -- $2.9 $5.6 $10.7 $10.5 $12.8 $12.5 $14.8 $14.6 $16.9 $16.7 $118 Sales tax -- -- -- -- $1.7 $3.5 $5.4 $5.5 $5.6 $5.8 $5.9 $6.0 $6.2 $6.3 $52 TOT -- -- -- -- $1.6 $3.2 $5.1 $5.3 $5.4 $5.6 $5.8 $6.0 $6.2 $6.4 $51 Gained state taxes -- -- -- -- $2.4 $4.7 $9.2 $9.0 $10.9 $10.7 $12.6 $12.4 $14.3 $14.0 $100 Source: Tourism Economics
*annual average
38 Alternative Assessment Scenario
The Alternative Assessment Scenario results in $2.2 billion dollars of gained spending over the next decade.

Impact of TID Funding on the Monterey Economy
Future visitor spending growth in Monterey, two scenarios Dollars, billions
Source: Tourism Economics
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
Thousands
Lost
Repeat
Baseline
Alternative Assessment
$2.2bn gained
over 10 years
39 Scenario comparison
The changes in TID funding create a notable impact on the future path of the visitor economy.

Impact of TID Funding on the Monterey Economy
Future visitor spending growth in Monterey, three scenarios Dollars, billions
Source: Tourism Economics
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Thousands
Alternative Assessment
Baseline
TID Elimination
Appendix: The National Impact of
Tourism Improvement Districts
41 National study of TID benefits
The study finds that tourism improvement districts (TIDs) provide a competitive advantage for destinations. By examining TID impacts on room demand, revenue, and visitor spending, this white paper explores that ground-breaking research and explains how TIDs enhance economic impacts in destinations.

The following pages review a collaborative research project on the impact of TIDs performed by Tourism Economics.

The Impact of Tourism Improvement Districts
42 Destination sample
The analysis covers 100 cities, including 29
TID destinations and 71 non-TID
destinations.

The Impact of TIDs
Cities included in Tourism Economics’ TID impact analysis 43 Room demand regression model
Our approach to estimate the effect of TID on room demand included:

1. 100 US destinations (counties); 29 TID destinations and 71 non-TID destinations

2. Oxford Economics databank was utilized for relevant macroeconomic indicators, namely, GDP and employment (at county level)

3. The final panel dataset consisted of 100 cross-sections and 30 time periods (1990-2019), totaling 3,000 observations
The Impact of TIDs
log 𝑅𝑜𝑜𝑚 𝑑𝑒𝑚𝑎𝑛𝑑 = 𝑏1 + 𝑏2 × log 𝐴𝑟𝑡𝑠&𝑅𝑒𝑐 𝐺𝐷𝑃
+𝑏3 × log 𝑇𝑜𝑡𝑎𝑙 𝐺𝐷𝑃 + 𝑏4 × 𝑇𝐼𝐷𝑑𝑢𝑚𝑚𝑦 + 𝑒𝑟𝑟𝑜𝑟
Where 𝑇𝐼𝐷𝑑𝑢𝑚𝑚𝑦 = 1 for a TID city, and 0 otherwise.
• The model sought to test whether a positive and significant relationship existed between the dependent variable, 𝑅𝑜𝑜𝑚 𝑑𝑒𝑚𝑎𝑛𝑑, and the independent variable 𝑇𝐼𝐷𝑑𝑢𝑚𝑚𝑦 ; a positive 𝑏4 coefficient with a small p-value. • The other two independent variables, Arts & Rec 𝐺𝐷𝑃 and 𝑇𝑜𝑡𝑎𝑙 𝐺𝐷𝑃, were employed as control variables to control for a destination’s size and its relative importance as a tourist destination.
• Below are the regression results indicating a positive and highly significant 𝑏4 coefficient.
• The results suggest that when controlled for size and importance of a destination as a tourist destination, across our sample of 100 cities, there was an average

2.12% difference in room demand between years in which a destination had an active TID and years without a TID. Results are statistically significant with a 99% confidence level.
44 High-level view
Visually, we can observe that TID destinations outperformed non-TID markets in the latest upcycle.

The Impact of TIDs
Total hotel room revenue
TID vs. non-TID cities growth
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2002 2004 2006 2008 2010 2012 2014 2016 2018
Total hotel room revenue
TID vs. Non-TID cities growth
Source: STR, Civitas, Tourism Economics
TID cities
Non -TID cities
Total hotel room revenue
TID vs. non-TID cities (2002=100)
80%
100%
120%
140%
160%
180%
200%
220%
240%
260%
2002 2004 2006 2008 2010 2012 2014 2016 2018
Total hotel room revenue
TID vs. Non-TID cities (2002=100)
Source: STR, Civitas, Tourism Economics
TID cities
Non -TID cities
45 TID growth premium: demand
The Impact of TIDs
Room demand growth premium*
2003-2019
-0.12%

0.34%
-0.20%
-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%
Before TID After TID
The demand premium is calculated as the difference between an average 3-year growth in TID cities and non-TID cities prior to the TID (“Before TID”) and post the TID (“After TID”).
• Before authorizing a TID, growth in cities that eventually had a TID was 12 basis points slower compared to growth in TID cities. • After authorizing a TID, growth in TID cities was 34 basis points faster compared to non-TID cities.
• Swing of 0.5% in room demand.

On average, a destination gains 0.5% in demand growth per year after a TID is put in place.
“Premium” is measured as the difference in growth rates between TID and non-TID destinations Source: STR, Tourism Economics
46 TID growth premium: revenue
The Impact of TIDs
Room revenue growth premium*
2003-2019
The revenue premium is calculated as the difference between an average 3-year growth in TID cities and non-TID cities prior to the TID (“Before TID”) and post the TID (“After TID”).
• Before authorizing a TID, growth in TID cities was 24 basis points faster compared to growth in non-TID cities
• After authorizing a TID, growth in TID cities was 130 basis points faster compared to non-TID cities
• Gain of 1.1% in room revenue.

On average, a destination gains 1.1% in revenue growth per year after a TID is put in place.
“Premium” is measured as the difference in growth rates between TID and non-TID destinations Source: STR, Tourism Economics

0.24%

1.30%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%
Before TID After TID
47 TID room demand lift
The Impact of TIDs
Average annual hotel room demand
TID cities
The 29 TID destinations in our model grew to generate 7,027,654 rooms in 2019. Without the boost generated by the TIDs, these destinations would have only generated 6,878,260 rooms.

On average, our modeling indicates that TIDs produce a 2.1% lift in hotel room demand.

Sources: STR, Civitas, Tourism Economics
6,878,260
7,027,654
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
7,000,000
7,500,000
Average annual hotel room demand
TID cities
Source: STR, Civitas, Tourism Economics
Actual room
demand
Estimated room
demand in
absence of TID
48 TID room demand lift
The Impact of TIDs
Average annual hotel room demand
TID cities (millions)
The 29 TID destinations in our model grew to generate $1.12 billion in room revenue in 2019. Without the boost generated by the TIDs, these destinations would have only generated $1.07 billion in room revenue.

On average, our modeling indicates that TIDs produce a 4.5% lift in hotel room revenue.

Sources: STR, Civitas, Tourism Economics
$1,067
$1,118
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Average annual hotel room revenue
TID cities (millions)
Actual room revenue
Estimated room
revenue in
absence of TID
49 Economic benefits of TIDs
Tourism promotion funding provided by TIDs results in more visitors and visitor spending, and this spending represents a new injection to the local economy with many downstream benefits . In total, benefits are felt on three levels.
• Direct Impacts: Visitors create direct economic value within a discreet group of sectors (e.g., recreation, transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within each sector. • Indirect Impacts: Each directly affected sector also purchases goods and services as inputs (e.g., food wholesalers, utilities) into production.

These impacts are called indirect impacts.
• Induced Impacts: Lastly, the induced impact is generated when employees whose wages are generated whether directly or indirectly by visitors, spend those wages in the local economy.

The impacts of TIDs go beyond just the hotel and tourism sector.

The Impact of Tourism Improvement Districts
RETAIL

ENTERTAINMENT/REC

FOOD & BEVERAGE

LOCAL TRANSPORTATION

LODGING

AIR TRANSPORTATION
SALES
GDP
JOBS
INCOME
TAXES
Appendix 2: The ROI of Destination Marketing
51 The ROI of Destination Marketing
Many state and local CVBs and DMOs conduct periodic assessments of marketing effectiveness. There are several goals of these studies, including understanding how specific marketing campaigns are perceived by households, how effective the campaigns are in having an impact on households’ intent to travel to a given destination, and which target markets are showing differing level of responsiveness to marketing.

Frequently these studies include a specific analysis of the ROI of marketing spending in the form of a quantitative assessment of the level of incremental visitor spending and tax revenues that are attributable to destination marketing.

These studies use a variety of methods and are measuring the impact of a range of different campaigns across different situations. For example, a specific study may look at incremental visitors attracted by a state-level marketing campaign conducted by a state that attracts travelers from a range of national markets, while another study may focus on the results of a more targeted regional campaign carried out by a city-level CVB. While the results of a specific study pertain most directly to the situation that was analyzed and the corresponding assumptions, it is appropriate to consider broader inferences from the research. We analyzed recent studies that included an estimate of the incremental visitor spending attributable to advertising campaign spending.

For example, in a fairly typical approach, a study would:
• Use a survey to analyze the effect of a specific advertising campaign on households’ travel to a given destination, such as by analyzing the impact on actual travel among those that had observed the advertising or by analyzing the impact on households’ intentions to travel; • Project that effect to the broader set of households in the marketing area to estimate the number of incremental visits attributable to the campaign;
• Apply typical levels of spending per visitor to estimate incremental visitor spending; and,
• Compare incremental visitor spending to the level of advertising spending to estimate the ROI.

Tourism Economics summarized the estimates of incremental visitor spending per dollar of advertising campaign spending from these studies in the table on the following page
52 The ROI of Destination Marketing
Estimates of incremental visitor spending per dollar of advertising campaign spending from the set of studies we analyzed is summarized in the adjacent table, supporting the following observations:

Overall, we observe that recent marketing campaigns by destination marketing organizations at the metro/regional level have generated approximately $53 of incremental visitor spending per dollar of advertising spending.

These ROI estimates relate directly to advertising spending. It is also appropriate to consider a visitor spending ROI relative to total CVB operating costs, or relative to public funding. As an example of the former approach, Meet Minneapolis reports the ratio of visitor spending associated with events tracked in its group sales management system to total CVB operating costs has averaged $33 in recent years. This excludes almost all leisure visitor spending.

As an example of an ROI based on public funding, the Florida state government recently analyzed the return on investment for public funding of Visit Florida.

The analysis attributed Visit Florida’s public funding (excluding, for example, significant private funding for cooperative advertising and promotions) to generating $11.2 billion of visitor spending during the three-year-period through FY 2013, representing a visitor spending ROI of $97, and a state tax revenue ROI of $3.2 ($3.20 of state tax revenue generated by each $1 of state funding).

Marketing ROI matrix
Sources: Local studies compiled by Tourism Economics
53 For more information:
[email protected]
Tourism Economics is an Oxford Economics company with a singular objective: combine an understanding of the travel sector with proven economic tools to answer the most important questions facing our clients. More than 500 companies, associations, and destination work with Tourism Economics every year as a research partner. We bring decades of experience to every engagement to help our clients make better marketing, investment, and policy decisions. Our team of highly-specialized economists deliver:
• Global travel data-sets with the broadest set of country, city, and state coverage available • Travel forecasts that are directly linked to the economic and demographic outlook for origins and destinations • Economic impact analysis that highlights the value of visitors, events, developments, and industry segments • Policy analysis that informs critical funding, taxation, and travel facilitation decisions • Market assessments that define market allocation and investment decisions Tourism Economics operates out of regional headquarters in Philadelphia and Oxford, with offices in Belfast, Dubai, Frankfurt, and Ontario.

Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Our best-of-class global economic and industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic, social and business impact. Headquartered in Oxford, England, with regional centers in London, New York, and Singapore, Oxford Economics has offices across the globe in Belfast, Chicago, Dubai, Miami, Milan, Paris, Philadelphia, San Francisco, and Washington DC, we employ over 400 full-time staff, including 300 professional economists, industry experts and business editors—one of the largest teams of macroeconomists and thought leadership specialists.

About Tourism Economics
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: Jennifer Pope, Management Analyst
MEETING DATE: February 1, 2023
SUBJECT: Amendment of Resolution 22-048, Authorizing Examination of Sales or Transactions and Use Tax Records.

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

RECOMMENDATION
Approve the Proposed Amendment of Resolution 22-048, Authorizing Examination of Sales or Transactions and Use Tax Records.

DISCUSSION
At the City Council meeting on October 19, 2022, City Council adopted a resolution Authorizing the Examination of Sales or Transactions and Use Tax Records, see Attachment 1. The City is required by the state to enact a resolution for the Examination of Sales or Transactions and Use Tax Records to allow for review of Measure A, as well as the City's other sales or transactions and use tax records.

The CDTFA has requested the following corrections to the resolution which you will find in Attachment 2, Redline Version of the Proposed Amendment:

Change the ordinance number in the first paragraph of the resolution to Ordinance Number 766, Uniform Local Sales and Use Tax.

Add Ordinance #08-005, Hotel Tax Increase, to the second paragraph of the resolution.

Add all employees that may represent the City with authority to examine sales or transactions and use tax records.

The proposed amendment to the resolution that has been reviewed and approved by the CDTFA is included in Attachment 3, Clean Version of Proposed Amendment to Resolution 22-048.

OPTIONS
Provide alternate direction
FINANCIAL IMPACT:

No financial impact.

GOAL ALIGNMENT: Not Applicable.

Attachments
Resolution 22-048 Examination of Sales or Transaction and Use Tax Records Redline Version of Proposed Amendment to Resolution 22-048 Clean Version of Proposed Amendment to Resolution 22-048 RESOLUTION NO. 22-048

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

AUTHORIZING EXAMINATION OF SALES OR TRANSACTIONS AND

USE TAX RECORDS
WHEREAS, pursuant to Ordinance Number 21-032, the City of Pacific Grove (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, pursuant to Ordinance Number 21-032. Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and
WHEREAS, the City Council of the City of Pacific Grove deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;

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

Section 1. That the City Manager or any other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Department pursuant to that contract.

Section 3. That HdL Companies is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the HdL Companies:
a) has an existing contract with the City to examine those sales or transactions and use tax records; DocuSign Envelope ID: A889555E-F13B-491B-B827-98A841D2B4E7 b) is required by that contract to disclose the information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Department pursuant to the contract between the City and the Department.

Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of Pacific Grove adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Introduced, approved and adopted this 19th day of October 2022.

ATTEST: (s) ___________________________ (s) ____________________________ SANDRA KANDELL, City Clerk BILL PEAKE, Mayor
APPROVED AS TO FORM: (s)_____________________________
BRIAN PIERIK, City Attorney
I, Sandra Kandell, City Clerk of the City of Pacific Grove, California, DO HEREBY CERTIFY that the foregoing resolution was duly introduced, approved and adopted by the City Council of the City of the City of Pacific Grove, at a regular meeting of said Council held on the 19 th day of October, 2022, by
the following roll call vote:

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

Noes: None.

Absent: None.
(s) _______________________________
SANDRA KANDELL, City Clerk
DocuSign Envelope ID: A889555E-F13B-491B-B827-98A841D2B4E7 RESOLUTION NO. 22-XXX
A Resolution of the City Council of the City of Pacific Grove Authorizing Examination of Sales or Transactions and Use Tax Records WHEREAS, pursuant to Ordinance Number 21-032 766, the City of Pacific Grove (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, pursuant to Ordinance Number 21-032 and Ordinance Number 08-005. Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and
WHEREAS, the City Council of the City of Pacific Grove deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;

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

Section 1. That the City Manager, Administrative Services Director, Finance and Risk Manager (Program Manager), Deputy Director of Finance (Senior Program Manager), Management Analyst, or any other officer or employee of the City designated in writing by the City Manager or the Administrative Services Director to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

Section 3. That HdL Companies is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the HdL Companies:
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose the information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of Pacific Grove adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Introduced, approved and adopted this__________day of___________________ 20___.

ATTEST: (s) ___________________________ (s) ____________________________ City Clerk Mayor
I, ____________________, City Clerk of the City of _______________________, California, DO HEREBY CERTIFY that the foregoing resolution was duly introduced, approved and adopted by the City Council of the City of _______________________, at a regular meeting of said Council held on the ________ day of ________________, 20___, by the following roll call vote:

Ayes: (Names of Councilmembers)
Noes: (Names of Councilmembers)

Absent: (Names of Councilmembers)
(s) _______________________________
City Clerk
RESOLUTION NO. 22-XXX
A Resolution of the City Council of the City of Pacific Grove Authorizing Examination of Sales or Transactions and Use Tax Records WHEREAS, pursuant to Ordinance Number 766, the City of Pacific Grove (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, pursuant to Ordinance Number 21-032 and Ordinance Number 08-005. Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and
WHEREAS, the City Council of the City of Pacific Grove deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;

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

Section 3. That HdL Companies is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the HdL Companies:
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose the information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of Pacific Grove adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Introduced, approved and adopted this__________day of___________________ 20___.

Ayes: (Names of Councilmembers)
Noes: (Names of Councilmembers)

Absent: (Names of Councilmembers)
(s) _______________________________
City Clerk
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: Mark Sullivan, Accountant
MEETING DATE: February 1, 2023
SUBJECT: Second Quarter Treasurer’s Quarterly Report – Fiscal Year 2022-23 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, 2022, and shows that cash and investments held citywide, with a market value of $28,177,825. 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
11/7/22 Direct Fed Credit Union, Needham, MA, CD 4.75% $249,000 Purchase 11/8/22 Southern Bank, Poplar Bluff, MO, CD 4.70% $249,000 Purchase 11/22/22 Alabama Credit Union, Tuscaloosa, AL, CD 4.90% $248,000 Purchase 11/22/22 Goldman Sachs Bank, NY, CD 2.40% $247,000 Maturity 11/22/22 TIAA FSB, Jacksonville, FL, CD 2.20% $247,000 Maturity 11/28/22 Baxter Credit Union, Vernon Hills, IL, CD 5.00% $248,000 Purchase 11/28/22 Greenwood Credit Union, Warwick, RI, CD 4.95% $248,000 Purchase 11/30/22 Mountain America Credit Union, West Jordan, UT, CD 5.00% $248,000 Purchase
11/30/22 University Bank, Ann Arbor, MI, CD 4.20% $249,000 Purchase 12/9/22 Liberty Credit Union, Evansville, IN, CD 4.90% $249,000 Purchase 12/16/22 Austin Telco Federal Credit Union, TX, CD 4.95% $249,000 Purchase 12/20/22 All In Federal Credit Union, Daleville, AL, CD 4.40% $249,000 Purchase 12/21/22 Latino Community Center Credit Union, Durham,
NC, CD 4.50% $249,000 Purchase
12/29/22 Ideal Credit Union, Woodbury, MN, CD 4.50% $249,000 Purchase 12/30/22 Alliant Credit Union, Chicago, IL, CD 4.85% $249,000 Purchase Investment Notes:

The average yield on the City’s portfolio for the quarter is 2.45%. This represents a yield rate that is 0.75% greater than prior quarter and 1.18% greater the same quarter in the prior year.

OPTIONS
N/A – This is an informational report.

FINANCIAL IMPACT:

There is no fiscal impact. This is informational only.

GOAL ALIGNMENT: Not Applicable.

Attachments

22.12.31 Treasurer's Report
City of Pacific Grove
Treasurers' Report
As of December 31, 2022

DEPOSITORY ACCOUNT DESCRIPTION OF SECURITY MATURITY
DATE

INTEREST

RATE/YIELD

DOLLAR/PAR
AMOUNT
MARKET
VALUE
State of California Local Agency Investment Fund (LAIF) Immediate 2.07% 6,466,594.44 6,466,594.44 6,466,594.44 6,466,594.44
Bank of America Checking Pooled Cash Immediate 0.00% 6,508,211.60 6,508,211.60 6,508,211.60 6,508,211.60
N/A Petty Cash General Immediate 0.00% 685.00 685.00
685.00 685.00
Concourse Financial Group Cash Dreyfus Govt Cash Mngt 3.70% 547,883.24 547,883.24 Concourse TVI Certificate of Deposit Alabama Cr Un Tuscaloosa Ala Sh Ctf 11/22/2024 4.90% 248,000.00 249,331.76 Concourse TVI Certificate of Deposit All In Fed Cr Un Daleville AL Sh Ctf 12/20/2027 4.40% 249,000.00 246,793.86 Concourse TVI Certificate of Deposit Alliant Cr Un Chicago Ill Sh Ctf 12/30/2027 4.85% 249,000.00 251,776.35 Concourse TVI Certificate of Deposit Ally Bk Sandy Utah 6/9/2026 3.00% 246,000.00 233,727.06 Concourse TVI Certificate of Deposit Amerant Bk Natl Assn Coral Gables FL 12/3/2025 0.45% 249,000.00 220,892.88 Concourse TVI Certificate of Deposit American Express Natl Bk 7/13/2027 3.25% 246,000.00 232,590.54 Concourse TVI Certificate of Deposit Austin Telco Fed Cr Un Tex Sh CTF 12/16/2026 4.95% 249,000.00 252,274.35 Concourse TVI Certificate of Deposit BMW Bk North Amer Salt Lake City Utah 11/20/2025 0.50% 249,000.00 221,789.28 Concourse TVI Certificate of Deposit BMO Harris Bk Natl Assn Chicago Ill 6/10/2024 2.80% 246,000.00 239,786.04 Concourse TVI Certificate of Deposit Bank Baroda New York Brh 7/22/2025 0.65% 249,000.00 225,544.20 Concourse TVI Certificate of Deposit Baxter Cr Un Vernon Hills Ill Sh CTF 11/30/2026 5.00% 248,000.00 251,677.84 Concourse TVI Certificate of Deposit Baycoast Bnk Swansea Mass CTF 1/24/2025 1.70% 247,000.00 233,017.33 Concourse TVI Certificate of Deposit Bell Bank Fargo ND CTF Dep 3/24/2023 0.85% 249,000.00 247,107.60 Concourse TVI Certificate of Deposit Bridgewater Bk St Louis Pk, MN 11/28/2025 0.45% 249,000.00 220,989.99 Concourse TVI Certificate of Deposit Capital One Natl Assn McLean VA CTF 8/7/2024 2.25% 247,000.00 238,041.31 Concourse TVI Certificate of Deposit Capital One Natl Assn Glen Allen VA CTF 6/9/2025 3.00% 246,000.00 237,043.14 Concourse TVI Certificate of Deposit Centerstate Bank Fla Winterhaven Fla 3/30/2023 0.90% 242,000.00 240,078.52 Concourse TVI Certificate of Deposit Direct Fed Cr Un Needham Mass SH CTF 11/9/2026 4.75% 249,000.00 250,449.18 Concourse TVI Certificate of Deposit Discover BknGreenwood Del 6/7/2027 3.15% 246,000.00 231,882.06 Concourse TVI Certificate of Deposit Enerbank Salt Lake City UT CTF 6/28/2023 3.20% 246,000.00 244,710.96 Concourse TVI Certificate of Deposit 1ST Finl Bk Dakota Dunes SD 7/11/2024 2.90% 249,000.00 242,682.87 Concourse TVI Certificate of Deposit Greenwood Cr Un Warwick RI SH CTF 5/28/2024 4.95% 248,000.00 249,113.52 Concourse TVI Certificate of Deposit Ideal Cr Un Woodbury MN SH CTF 12/29/2027 4.50% 249,000.00 247,889.46 Concourse TVI Certificate of Deposit Industrial & Coml Bk China USA Natl Assn NY CTF 2/11/2026 0.45% 249,000.00 219,443.70 Concourse TVI Certificate of Deposit JPMorgan Chase BK NA Columbus OH CTF Dep 12/15/2025 0.50% 248,000.00 220,278.56 Concourse TVI Certificate of Deposit Latino Cmnty Cr Un Durham NC SH CTF 12/21/2027 4.50% 249,000.00 247,896.93 Concourse TVI Certificate of Deposit Liberty Fed Cr Un Evansville IN SH CTF 12/9/2024 4.90% 249,000.00 250,376.97 Concourse TVI Certificate of Deposit Live Oak Bkg Co Wilmington NC CTF Dep 11/27/2024 1.85% 249,000.00 236,480.28 Concourse TVI Certificate of Deposit Merrick Bk South Jordan Utah 1/31/2025 1.80% 249,000.00 235,168.05 Concourse TVI Certificate of Deposit Minnwest Bk Redwood Falls Minn Ctf Dep 7/15/2025 0.50% 249,000.00 224,607.96 Concourse TVI Certificate of Deposit Morgan Stanley Bk N A Salt Lake City Ut CTF 1/25/2023 2.65% 246,000.00 245,751.54 Concourse TVI Certificate of Deposit Morgan Stanley Private Bk Natl Assn Pur N Y 12/6/2023 3.55% 245,000.00 242,623.50 Concourse TVI Certificate of Deposit Mountain Amer Fed Cr Un West Jordan UT SH CTF 5/28/2024 5.00% 248,000.00 249,282.16 Concourse TVI Certificate of Deposit New York Cmnty Bk Westbury N Y 7/1/2026 0.70% 249,000.00 218,009.46 Concourse TVI Certificate of Deposit Preferred Bk Los Angeles Calif Ctf Dep 8/16/2024 2.00% 249,000.00 238,798.47 Concourse TVI Certificate of Deposit Raymond Jmes Bk Natl Assn St Petersburg FL CTF Dep 11/8/2023 1.75% 247,000.00 241,158.45 Concourse TVI Certificate of Deposit Sallie Mae Bk Salt Lake City UT CTF 5/23/2023 3.20% 246,000.00 245,016.00 Concourse TVI Certificate of Deposit Southern Bk Poplar Bluff MO CTF DEP 11/8/2024 4.70% 249,000.00 249,420.81 Concourse TVI Certificate of Deposit Synchrony Bk Retail CTF Dep Citigroup Instl CTF Dep 12/10/2026 1.25% 248,000.00 218,775.68 Concourse TVI Certificate of Deposit Texas Exchange Bk SSB Crowley Ctf Dep 11/25/2025 0.60% 249,000.00 221,087.10 Concourse TVI Certificate of Deposit UBS Bk USA Salt Lake City Ut 6/23/2026 0.75% 249,000.00 218,343.12 Concourse TVI Certificate of Deposit US Alliance FCU Rye New York SH CTF 9/30/2027 4.00% 249,000.00 242,667.93 Concourse TVI Certificate of Deposit University Bk Ann Arbor MICH CTF DEP 11/30/2027 4.20% 249,000.00 244,635.03 Concourse TVI Certificate of Deposit Wells Fargo Natl Bk West Las Vegas N V 1/30/2023 1.90% 249,000.00 248,549.31 Concourse TVI U.S. Treasury Securities United Sts Treas NTS 9/30/2025 0.60% 250,000.00 224,697.50 Concourse TVI U.S. Treasury Securities United Sts Treas NTS 5/31/2026 0.70% 250,000.00 223,232.50 Concourse TVI U.S. Treasury Securities United Sts Treas NTS 4/15/2025 2.63% 500,000.00 481,565.00 Concourse TVI U.S. Government Bonds Federal Farm Cr Bks 1/11/2027 1.470% 530,000.00 472,738.80 Total Concourse - General 12,986,883.24 12,417,678.15
TOTAL GENERAL INVESTMENTS 25,962,374.28 25,393,169.19
Pg 1 of 2
City of Pacific Grove
Treasurers' Report
As of December 31, 2022

DEPOSITORY ACCOUNT DESCRIPTION OF SECURITY MATURITY
DATE

INTEREST

RATE/YIELD

DOLLAR/PAR
AMOUNT
MARKET
VALUE
Concourse TVI Yount Cash Sweep Money Market Fund 3.70% 471.16 471.16 Concourse TVI Yount Fixed Income Bank Hapoalim B M New York BRH Ctf Dep 12/15/2025 0.50% 205,000.00 182,083.05 Concourse TVI Yount U.S.Treasury Securities United Sts Treas NTS 4/30/2024 2.50% 180,000.00 174,938.40 Concourse TVI Yount U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide BDS 9/16/2025 0.55% 96,000.00 86,592.96 Concourse TVI Yount U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide 5/13/2026 0.88% 170,000.00 151,408.80 Concourse TVI Yount U.S. Government Bonds Federal Farm Cr Bks Cons Systemwide BDS 1/11/2027 1.47% 97,000.00 86,520.12 Concourse TVI Yount U.S. Government Bonds Federal Agric Mtg Corp Medium Terms Nts Fed 1/15/2026 0.48% 95,000.00 85,177.95 Total Concourse - Endowments 843,471.16 767,192.44
TOTAL INVESTMENTS HELD FOR ENDOWMENTS 843,471.16 767,192.44 Umpqua Bank Money Market 0.01% 2,017,463.40 2,017,463.40 Total Umpqua Bank 2,017,463.40 2,017,463.40
TOTAL RESERVE INVESTMENT 2,017,463.40 2,017,463.40
GRAND TOTAL 28,823,308.84 28,177,825.03
Pg 2 of 2
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: Audrey Cray, Finance & Risk Manager
MEETING DATE: February 1, 2023
SUBJECT: Second Quarter 22/23 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, 2022 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: Not Applicable.

Attachments
Second Quarter Workers' Compensation Report

City of Pacific Grove
Second Quarter Workers’ Compensation Statistics – Fiscal Year 22/23 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, 2022 $ 49,555
Revenues: Through December 31, 2022 $391,033
Expenditures: Through December 31, 2022 ($596,478)
Estimated Fund Balance, Second Quarter ($155,890)
Consistent with Council’s direction, the Workers’ Compensation fund ended Fiscal Year 21/22 with a positive fund balance.

The Workers’ Compensation expenditures through the second quarter of FY 22/23 represent approximately 79% of the budgeted amount. The high expenditures and current negative fund balance are related to a one time premium payment due at the beginning of the Fiscal Year. The revenues reported represent 52% 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 22/23.

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 decreased by nine to 38. This included a decrease of three claims to the Litigated/Future Medical category; a decrease of five claims to the Non-Litigated/Disability or Lost Time category; and a decrease of one claim to the Non-Litigated/Medical Only category.

Summary of Open/Reopen Claims as of 12/31/2022
Non-Litigated Litigated Total
Future Medical 15 14 29
Disability or Lost Time 4 5 9
Medical Only 0 0 0
First Aid 0 0 0
Total Open Claims 19 19 38
New Claims – Second Quarter
In the first quarter of the Fiscal Year 22/23, there
were two new claims from one Department. The
adjacent chart provides an overview of the claims by
cause. Although Covid 19 represents the highest
number of claims for the fiscal year to date, the
majority of these incidents are filed for reporting
purposes only. These claims were all closed at the
start of the second quarter. At the end of the second
quarter, no new claims remained open.

In the second quarter of FY 22/23, an annual Safety
training calendar was developed for Public Works.

Staff is in the process of establishing a City-wide training calendar for all other departments. Staff completed the 2023 Safety Awareness Calendar and is looking forward to holding the First Annual Safety Luncheon in the third quarter of FY 22/23. 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 22/23, there are thirty fewer claims when compared to the prior Fiscal Year. This reduction is associated with the decrease of Covid Exposure claims compared to the prior Fiscal Year. Seven of the Disability/Lost Time claims are Covid 19 lost time.

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 0 2 8 2
Medical 0 3 1 34
First Aid 2 3 2 5
Total Claims by Type 2 8 11 41
\
The following chart provides an overview of quarterly trends. 0 5
10 15
20 25
30 35
Q2 2020-21 Q3 2020-21 Q4 2020-21 Q1 2021-22 Q2 2021-22 Q3 2021-22 Q4 2021-22 Q1 2022-23 Q2 2022-23 Total Claims Reported by Period
First Aid Disability / Lost Time Medical Only

INJURIES BY CAUSE FISCAL YEAR TO DATE
Fall, Slip or
Trip
1 Struck by or
Injury by
Object
Covid 19 2
7 Cumulative
Injury
1 INJURIES BY CAUSE FISCAL YEAR TO DATE
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: Tori Hannah, Administrative Services Director/Assistant City Manager MEETING DATE: February 1, 2023
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.

Additional 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: Not Applicable.

Attachments
Fiscal Year 22-23 Second Quarter Budget Report
City of Pacific Grove
Second Quarter Budget Report – Fiscal Year 22/23
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.

Revenues FY 22/23 YTD Prior YTD
Fund Amended Transactions % of Budget Transactions
01 General Fund $30,395,069 $14,749,301 49% $13,421,012 74 Local Water Project 1,451,737 414,568 29% 429,362
75 Cemetery 636,750 451,780 71% 341,553
76 Sewer Fund 4,313,135 665,666 15% 602,475
77 Golf 386,500 201,408 52% 189,284
Expenditures
Fund
FY 22/23
Amended
YTD
Transactions % of Budget
Prior YTD
Transactions
01 General Fund $31,860,948 $15,186,404 48% $13,723,820 74 Local Water Project 1,373,448 334,291 24% 279,749
75 Cemetery 576,258 282,783 49% 247,405
76 Sewer Fund 4,348,574 1,243,233 29% 1,332,113
77 Golf 332,097 191,664 58% 153,890
General Fund Overview
General Fund revenues and expenditures are trending relatively consistent with the budgetary projections.

The differences in the year-to-date (YTD) revenues are primarily related to economic recovery; and a corresponding planned increase in expenditures.

At the close of the second quarter, expenditures exceeded revenues by approximately $437,000. 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 scheduled to be presented at the second Council Meeting in February, with the Five-Year Fiscal Forecast in March.

General Fund Revenues
The following chart provides an overview of the General Fund revenue receipts. All revenues are trending fairly consistent with the prior year or the annual budget. The Fiscal Year 22/23 year to date revenues are $1.3 million or 9.9% greater than the prior year. Any significant variances are listed below the chart.

Revenues Amended Budget YTD Transactions
% Used /
Rec'd
Prior YTD
Transactions
Taxes:

Property Taxes $8,840,000 5,299,211 60% 4,877,380
Transient Occupancy Tax 5,867,000 3,257,189 56% 2,889,334 Transient Use Licenses 95,000 3,036 3% 3,345
Sales and Use Tax 5,616,000 1,602,735 29% 1,408,686
Business License Tax 322,000 365,610 114% 308,485
Franchise Tax 1,546,000 338,087 22% 257,309
Utility User Tax 1,929,000 795,158 41% 718,944
Other Tax 237,000 77,134 33% 109,940
Total Taxes $24,452,000 $11,738,161 48% $10,573,423
Other:

Licenses and Permits 1,045,000 515,165 49% 416,196
Intergovernmental 292,382 6,717 2% 52,521
Charges for Services 1,928,000 999,359 52% 723,647
Fines and Forfeitures 49,000 97,135 198% 6,574
Interest, Rents, Conc. 310,000 215,077 69% 147,452
Other Revenues 1,518,687 377,688 25% 489,605
Interfund Transfers 800,000 800,000 100% 1,011,595
Totals $30,395,069 $14,749,301 49% $13,421,012
Transient Occupancy Tax and Licenses
At the close of the second quarter, the City received $3.3 million in transient occupancy revenue, which is

12.7% or $367,855 greater than the prior year. The annual amounts reflect five payments within each fiscal year. The year-to-date amount that has been received represents 56% of the budgeted revenues. If this trend continues, it is likely the City will amend the budget to include this increased level of performance.

There was minimal activity in the Transient Use Licenses category. These revenues are typically received in the second half of the fiscal year.

Sales Tax
The Fiscal Year 22/23 amount represents four months of sales tax receipts, which is equivalent to the number of payments received in the prior year. This is $194,049 or 13.8% greater than the prior year. The budgetary estimate also includes sales tax revenues from Measure A that became effective on October 1, 2022. These revenues will appear for the first time in the Third Quarter Budget Report.

Franchise Taxes
This revenue category has uneven receipting patterns, with two utilities typically submitting a single large payment in the Fourth Quarter.

Other Tax
In Fiscal Years 20/21 and 21/22, the amount of Real Estate Transfer Taxes nearly doubled, when compared to Fiscal Year 19/20. The amounts received in the first half of this fiscal year are trending lower than anticipated, which could indicate a gradual return to traditional levels.

Intergovernmental
Intergovernmental revenues can vary based on the timing of grant reimbursements. In the first half of the year, there were minimal grant billings or receipts in the General Fund.

Fines and Forfeitures
In Fiscal Year 22/23, the City received an $80,414 payment related to a code enforcement case. Revenues in this category vary each year.

Other Revenues
The revenues within this category may vary each year. The budgeted amount includes $976,737 in anticipated proceeds from water entitlement sales. This primarily contributes to the budgetary variance. At the end of Fiscal Year 21/22, the City received $154,200 of the budgeted promissory note proceeds. The Fiscal Year 22/23 budget will be reduced by that amount to reflect the early receipt of these funds.

Interfund Transfers
In Fiscal Year 22/23, a transfer of $800,000 in American Rescue Plan Act (ARPA) funds was appropriated to assist in supplementing the General Fund. The amount transferred relates to corresponding expenditures that were identified in the first two quarters. In Fiscal Year 21/22, transfers from the Operating Donations Fund and the ARPA Fund were initiated to align with approved expenditures.

Expenditures
Department expenditures may not typically trend with the percentage of year that has elapsed. The primary exception is the underlying salary and benefit costs, which are trending consistent with the number of completed payperiods. The Fiscal Year 22/23 year to date expenditures are $1.5 million or 10.7% greater than the prior year. Additional information specific to departments are listed below the table.

Expenditures
FY 22/23
Amended
YTD
Transactions % of Budget
Prior YTD
Transactions
City Council $435,227 $151,238 35% $211,894
City Manager 1,243,756 515,464 41% 506,970
City Attorney 812,100 218,276 27% 258,209
Economic Development 124,833 31,432 25% -
Finance 1,476,067 554,266 38% 662,725
Information Services 951,166 326,454 34% 306,198
Police 7,895,899 3,828,918 48% 3,570,842
Fire 4,246,200 2,316,052 55% 1,949,160
Public Works 4,320,643 1,847,120 43% 1,690,940
Community Development 2,913,339 778,089 27% 857,000
Library 1,125,728 554,531 49% 504,226
Recreation 920,638 404,068 44% 330,791
Museum 314,500 94,435 30% 150,913
Subtotal $26,780,096 $11,620,342 43% $10,999,869
Capital Outlay 1,167,700 891,011 76% -
Transfers to CIP Fund 575,000 287,500 50% 350,587
Debt Service 2,237,415 2,225,551 99% 2,156,756
Interfund Transfers 1,100,737 162,000 15% 216,608
Total Expenditures $31,860,948 $15,186,404 48% $13,723,820 City Council
The budgetary variance primarily relates to the timing of legal and professional service payments.

City Attorney
At the close of the second quarter, approximately 27% of the City Attorney budget was expended. The Fiscal Year 22/23 budget was recently amended to appropriate $100,000 in additional legal services. The majority of the unexpended funds have been encumbered or earmarked for specific legal contracts.

Economic Development
In Fiscal Year 22/23, the City established a new department to track expenditures for economic development programs. These costs were previously recorded in the City Manager and Community Development Department budgets. The budgetary difference primarily reflects the timing of Economic Development Commission expenditures; and the use of façade program funds.

Finance Department
In the first half of the year, the Finance Department expended approximately 38% of the budgeted amount.

The budgetary variance primarily reflects the timing of payments related to audit services, funds set aside for a proposed fee study contract, and a pending invoice from the State for the implementation of Measure A.

Information Technology Department
The budgetary difference primarily reflects the timing of contract services, as well software licensing costs that are typically paid within the second half of the fiscal year.

Fire
The annual difference in fire expenditures reflect the timing of monthly payments. The Fiscal Year 22/23 yearto-date expenditures includes one additional payment for contract fire services.

Community Development
In the first half of the fiscal year, the Community Development Department has expended approximately 27% of the budgeted funds. The annual and budgetary difference primarily relate to the timing of contract services, as well as corresponding payments. The Fiscal Year 21/22 expenditures represent one additional monthly payment for building contract services.

Museum
The annual and budgetary difference in Museum expenditures predominately reflect a timing difference in the second quarter contract service payment.

Interfund Transfers
In Fiscal Year 22/23, the budgeted transfers represent $876,737 in water entitlement revenues to the Local Water Project to support operations and repay the Interfund Sewer Loan; and $224,000 in transfers to the Public Safety Augmentation Fund for emergency dispatch services. The water entitlement revenues are comprised of proceeds from two developer promissory notes in the amounts of $625,187 and $151,500; and a $100,000 General Fund contribution. The $625,187 amount will be transferred upon receipt of the payment, while the $151,500 amount was paid and transferred in the prior fiscal year. The transfersthrough the second quarter represent 50% of the contribution towards emergency dispatch fees and Local Water Project operations.

Other Funds
Local Water Project (LWP)
The LWP revenues for the first half of Fiscal Year 22/23, include a $50,000 transfer of water entitlement proceeds; and operating revenues of $364,568. The Fiscal Year 21/22 operating revenues for the same two quarters were $311,447, prior to transfers. Annual expenditures were approximately $54,000 greater than the prior year. Contributing factors include increased water utility costs which resulted from the failure of a mechanical component within the plant; and decreased wastewater flows in the City’s main trunk lines during the evening hours.

Cemetery
The Cemetery expenditures are trending relatively close to the percentage of time that has elapsed. The first two quarters of Cemetery revenues represent 71% of the budgeted amount; and signify a 32.3% increase over the prior year. In the first quarter of Fiscal Year 22/23, staff worked to map historical and new sections of the El Carmelo Cemetery. This included Section T – A recent addition of 36 new single burial sites. Multiple new sites within this area were sold, contributing to increased revenues. An amendment will be made at mid-year to reflect this initial growth and any projected increases.

Sewer Fund
Sewer fund revenues are $63,191 greater than the prior year. This includes a $35,300 gain in the fair value of investments. The City contracts with Monterey One Water to collect sewer use fees. Due to the timing associated with collecting and remitting bi-monthly payments to the City, only one payment was received in the first half of the fiscal year. The Sewer Fund has sufficient fund balance to manage any cash flow requirements. The annual and budgetary variances in expenditures are primarily related to the timing of capital projects.

Golf Course
Golf Course revenues are trending relatively similar to the prior year, while expenditures are $37,774 greater than the prior year amount. This is primarily related to the planned replacement of HVAC unit at the golf course clubhouse. The expenditures within the first half of the year, also include a debt service payment of $136,000.

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 1, 2023
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 reporting requirement in Section

2.16.160 of the City's Purchasing Systems and Procedures.

Purchase orders are issued for 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
Preliminary year-to-date expenses through the Second Quarter This report was previously a part of the Quarterly Budget Report, but based on the recommendation from the Finance Subcommittee, it is now presented independently.

OPTIONS
N/A - This is an informational report.

FINANCIAL IMPACT:

There is no financial impact associated with receiving this report.

GOAL ALIGNMENT: Not Applicable.

Attachments
Report
Open Purchase Orders - Less Than $40,000
Second Quarter FY 22/23

PO DEPARTMENT DIVISION PROJECT VENDOR NAME DATE DESCRIPTION

PURCHASE

ORDER AMOUNT

YEAR TO DATE

EXPENSE
23000047-01 CITY MANAGER 121 ELLIS INVESTIGATIONS 08/13/22 IMPARTIAL WORKPLACE INVESTIGATION 9,995.00 7,377.50 23000077-01 CITY MANAGER 121 NOLAND, HAMERLY, ETIENNE, & HOSS 09/04/22 LEGAL ADVICE EE DISC APPEAL 4,121.92 258.07 23000094-01 CITY MANAGER 121 HDL ECONSOLUTIONS 09/18/22 ECONOMIC DEVELOPMENT CONSULTANT 39,750.00 - 23000095-01 CITY MANAGER 121 HINDERLITER DE LLAMAS & ASSOCIATES 09/18/22 CANNABIS ORDINANCE CONSULTATION 15,000.00 1,500.00 23000096-01 CITY MANAGER 121 LIEBERT CASSIDY WHITMORE 09/23/22 LEGAL SERVICES - POA NEGOTIATIONS 15,000.00 9,265.00 23000103-01 CITY MANAGER 121 BRYCE CONSULTING, INC. 09/25/22 CLASS & COMPENSATION STUDY 17,687.50 - 23000147-01 ADMINISTRATIVE SERVICES 131 MCGILLOWAY, RAY, BROWN & KAUFMAN 12/02/22 IMPLEMENTATION OF GASB 87 8,000.00 6,200.00 23000149-01 ADMINISTRATIVE SERVICES 131 CLEARGOV 12/02/22 FISCAL TRANSPARENCY SOFTWARE 8,750.00 - 23000054-01 ADMINISTRATIVE SERVICES 131 CENTRALSQUARE TECHNOLOGIES 08/20/22 UPGRADE SOFTWARE, PROJECT 11,830.00 - 23000134-01 ADMINISTRATIVE SERVICES 131 ROBERT HALF INTERNATIONAL 11/17/22 TEMPORARY EMPLOYMENT SERVICES 30,000.00 15,498.00 23000078-01 ADMINISTRATIVE SERVICES 131 HINDERLITER, DE LLAMAS & ASSOCIATES 09/04/22 SALES TAX & BUSINESS LICENSE SERVICES 39,000.00 12,175.35 23000035-01 ADMINISTRATIVE SERVICES 131 QUADIENT LEASING USA 07/31/22 MAIL MACHINE 1,993.72 500.15 23000142-01 ADMINISTRATIVE SERVICES 133 ESRI, INC. 12/02/22 GIS SOFTWARE RENEWAL 5,400.00 - 23000114-01 ADMINISTRATIVE SERVICES 133 PROTELESIS 10/18/22 MITEL VOIP SYSTEM MAINTENANCE 12,000.00 6,049.98 23000063-01 ADMINISTRATIVE SERVICES 133 ALVAREZ TECHNOLOGY GROUP 08/28/22 AFTER HOURS SUPPORT 15,000.00 2,700.00 23000122-01 ADMINISTRATIVE SERVICES 133 GEOGRAPHIC TECHNOLOGIES 10/25/22 GIS IMPLEMENTATION 23,950.00 12,066.00 23000087-01 COMMUNITY DEVELOPMENT 201 RINCON CONSULTANTS, INC 09/18/22 ON CALL PEER REVIEW OF CEQA DOCUMENTS 20,000.00 296.25 23000089-01 COMMUNITY DEVELOPMENT 201 BEST BEST & KRIEGER 09/18/22 ASSIST & REVIEW HOUSING POLICY 30,917.00 - 23000141-01 COMMUNITY DEVELOPMENT 201 REGIONAL GOVERNMENT SERVICES 11/30/22 ON-CALL PLANNING SERVICES 39,000.00 5,825.00 23000046-01 COMMUNITY DEVELOPMENT 225 TRC19-04 HR & ASSOCIATES (1) 08/13/22 ATC PLANNING SERVICES 16,075.00 4,512.50 23000086-01 COMMUNITY DEVELOPMENT 225 TRC22-01 RINCON CONSULTANTS, INC (1) 09/18/22 PREPARE A REVISED STUDY & MND 39,041.25 608.00 23000026-01 POLICE DEPARTMENT 301 SYSTEMS FOR PUBLIC SAFETY 07/21/22 BACKGROUND INVESTIGATIONS 5,000.00 - 23000027-01 POLICE DEPARTMENT 301 MORELAND INVESTIGATIONS 07/21/22 BACKGROUND INVESTIGATIONS 5,000.00 268.72 23000025-01 POLICE DEPARTMENT 301 ARAMARK UNIFORM 07/21/22 DEPARTMENT LINEN AND RUG 6,000.00 2,925.35 23000105-01 POLICE DEPARTMENT 301 JONES AND MAYER 09/25/22 RECORDS REVIEW FOR PRR 5,000.00 - 23000129-01 POLICE DEPARTMENT 301 IPS GROUP, INC 11/08/22 IPS METER MAINTENANCE 6,487.82 5,070.53 23000019-01 POLICE DEPARTMENT 301 SPEAK WRITE 07/21/22 TRANSCRIPTION SERVICE 7,000.00 1,587.58 23000024-01 POLICE DEPARTMENT 301 CORDICO. INC. 07/21/22 DEPARTMENT EMPLOYEE WELLNESS 7,500.00 - Open Purchase Orders - Less Than $40,000
Second Quarter FY 22/23

PO DEPARTMENT DIVISION PROJECT VENDOR NAME DATE DESCRIPTION

PURCHASE

ORDER AMOUNT

YEAR TO DATE

EXPENSE
23000014-01 POLICE DEPARTMENT 301 STAPLES CREDIT PLAN 07/21/22 OFFICE SUPPLIES 8,000.00 6,325.42 23000016-01 POLICE DEPARTMENT 301 VERIZON WIRELESS 07/21/22 WIRELESS MOBILE CONNECTION 8,000.00 3,094.94 23000018-01 POLICE DEPARTMENT 301 VERIZON BUSINESS 07/21/22 VERIZON PORT ACCESS 9,000.00 3,693.44 23000013-01 POLICE DEPARTMENT 301 SPCA OF MONTEREY COUNTY 07/21/22 ANIMAL SHELTER SERVICES 13,000.00 2,975.00 23000017-01 POLICE DEPARTMENT 301 LEXIPOL LLC 07/21/22 DEPARTMENT POLICY AND TRAINING 13,000.00 6,798.52 23000015-01 POLICE DEPARTMENT 301 TRACNET CORPORATION 07/21/22 RECORDS MANAGEMENT SYSTEM 17,500.00 8,700.00 23000154-01 POLICE DEPARTMENT 301 IPS GROUP, INC 12/27/22 NEW PARKING METERS 18,650.00 - 23000023-01 POLICE DEPARTMENT 301 AT&T MOBILITY 07/21/22 AT&T FIRSTNET 20,000.00 11,223.51 23000021-01 POLICE DEPARTMENT 301 IPS GROUP, INC 07/21/22 IPS PARKING METER BANK FEES 25,000.00 7,650.43 23000099-01 POLICE DEPARTMENT 304 LIFTSHIFT, LLC 09/25/22 DATA MIGRATION FOR MARK43 6,291.89 5,860.26 23000065-01 POLICE DEPARTMENT 304 AXON ENTERPRISE, INC 08/28/22 BODY WORN & IN CAR CAMERAS 28,000.00 17,496.56 23000066-01 POLICE DEPARTMENT 304 ENTERPRISE FM TRUST 08/28/22 LEASED VEHICLES 28,000.00 10,657.31 23000064-01 POLICE DEPARTMENT 304 MARK43, INC. 08/28/22 RECORDS MANAGEMENT 26,300.00 15,380.00 23000068-01 FIRE DEPARTMENT 351 MISSION LINEN SUPPLY, INC 08/28/22 LINEN SERVICES 3,500.00 1,641.47 23000028-01 FIRE DEPARTMENT 351 HI-TECH EVS, INC. 07/29/22 FIRE ENGINE REPAIR - 6414 21,651.42 - 23000009-01 LIBRARY 401 GRT22-01 ARC METAL FABRICATION 07/21/22 MOBILE OUTREACH VEHICLE 18,331.00 9,165.50 23000008-01 LIBRARY 401 GRT22-01 TOYOTA MATERIAL HANDLING 07/21/22 GLOBAL ELECTRIC MOTOR VEHICLE 22,351.46 - 23000002-01 LIBRARY 401 BAKER & TAYLOR COMPANIES 07/21/22 BOOKS & MATERIALS 23,500.00 17,790.11 23000006-01 LIBRARY 402 CROZIER STUDIOS 07/21/22 ART CURATION/INSTALLATION 15,000.00 7,910.00 23000083-01 PUBLIC WORKS 412 CIP22-04 1-888-4-ABATEMENT, INC. 09/25/22 LEAD ABATEMENT AT THE PG MUSEUM 29,295.00 27,900.00 23000069-01 PUBLIC WORKS 461 CIP21-05 CALIFORNIA JPIA 08/28/22 ADA COMPLIANCE ASSESSMENT 26,550.00 3,550.00 23000113-01 PUBLIC WORKS 501 WELLS FARGO VENDOR FINANCIAL 10/12/22 KONIKA LEASE 12,920.84 4,390.99 23000126-01 PUBLIC WORKS 501 MISSION UNIFORM SERVICE 11/03/22 LINEN & UNIFORM CLEANING 15,301.06 6,952.81 23000132-01 PUBLIC WORKS 503 MONTEREY BAY PEST CONTROL 11/09/22 ANNUAL PEST CONTROL SERVICES 6,960.00 895.00 23000039-01 PUBLIC WORKS 503 WLODZIMIERZ PABIAN 08/07/22 CITY HALL CLOCK TOWER ROOF 9,315.00 - 23000041-01 PUBLIC WORKS 503 WATSONVILLE FORD 08/10/22 ENGINE REPLACEMENT 14,486.97 13,680.36 23000045-01 PUBLIC WORKS 503 GACHINA LANDSCAPE MANAGE 08/10/22 PARK MOWING SERVICES 15,351.00 7,035.63 23000082-01 PUBLIC WORKS 503 TOM'S SITE SERVICES 09/11/22 PORTAPOTTY RENTAL 19,000.00 4,283.99 Open Purchase Orders - Less Than $40,000
Second Quarter FY 22/23

PO DEPARTMENT DIVISION PROJECT VENDOR NAME DATE DESCRIPTION

PURCHASE

ORDER AMOUNT

YEAR TO DATE

EXPENSE
23000072-01 PUBLIC WORKS 503 WHITSON JANITORIAL SERVICES 09/04/22 JANITORIAL SERVICE 23,100.00 8,400.00 23000118-01 PUBLIC WORKS 505 STRESSCRETE (2) 10/21/22 DOWNTOWN LIGHT FIXTURES 6,585.90 - 23000073-01 PUBLIC WORKS 505 SANDWELL, INC. 09/04/22 BOBCAT BROOM REPLACEMENT 7,201.13 - 23000119-01 PUBLIC WORKS 505 STRESSCRETE (2) 10/21/22 LIGHT FIXTURES-DOWNTOWN 18,578.85 - 23000115-01 PUBLIC WORKS 510 CIP22-09 DUDEK 10/21/22 GWP MANAGEMENT PLAN 12,808.65 3,682.50 23000116-01 PUBLIC WORKS 513 CIP22-09 CREEKSIDE CENTER FOR EARTH OBSERVATION 10/21/22 MONARCH BUTTERFLY HABITAT 10,000.00 2,400.00 23000131-01 PUBLIC WORKS 841 CIP22-19 V & A CONSULTING ENGINEER 11/09/22 FLOW MONITORING - PURPLE PIPE PROJECT 7,500.00 - 23000152-01 PUBLIC WORKS 841 LEHR AUTO ELECTRIC 12/27/22 CSO VAN EQUIPMENT 20,361.14 23000081-01 PUBLIC WORKS 841 CIP23-19 BOWMAN CONSULTING GROUP 09/11/22 PURPLE PIPE FEASIBILITY STUDY 38,674.50 10,140.00 23000058-01 PUBLIC WORKS 631 TRC21-02 WILLIAMS SCOTSMAN, INC (2) 08/28/22 PW TRAILER LEASE 12,000.00 7,592.91 23000043-01 CEMETERY 601 LLORIN-VELASQUEZ CORPORATION 08/10/22 CEMETERY MARKER TRIMMING 29,150.00 15,900.00 23000011-01 SEWER 611 MONTEREY PENINSULA ENGINEERING 07/21/22 EMERGENCY SEWER WORK 9,142.50 7,950.00 23000127-01 SEWER 611 MONTEREY PENINSULA ENGINEERING 11/08/22 EMERGENCY SEWER WORK 9,687.50 - 23000005-01 SEWER 611 CALIFORNIA MARINE SANCTUARY 07/21/22 E9C WATER QUALITY MONITORING 11,623.00 7,104.19 23000029-01 SEWER 611 NEILL ENGINEERS 07/29/22 ENGINEERING RETAINER 12,000.00 6,000.00 23000061-01 SEWER 611 MONTEREY ONE WATER 08/28/22 FAT, OIL & GREASE INSPECTION 15,000.00 - 23000010-01 SEWER 611 WALLACE GROUP 07/21/22 SSMP 5 YEAR UPDATE 19,214.00 8,963.00 23000062-01 SEWER 612 CIP22-01 DUDEK 08/28/22 ARCHEOLOGICAL MONITORING 13,629.91 12,205.65 23000117-01 SEWER 612 CIP22-03 HARRIS & ASSOCIATES, INC 10/21/22 IS/MND -PHASE 9 CIP22-03 39,940.00 27,996.90 (1) Reimbursable through developer deposits.
(2) Reimbursable as a result of an insurance claim.

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: Andrew Butler, Code Compliance Officer
MEETING DATE: February 1, 2023
SUBJECT: Update on Code Compliance Program
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the report.

DISCUSSION
This is a yearly update for the code compliance program. For the 2022 calendar year, City Code Compliance staff received 237 complaints, with 22 of those still pending per the standard process for compliance (attached). Code Compliance staff also oversees the Administrative Enforcement Panel where 41 administrative hearings were conducted, and decisions were produced by the hearing officers from the City's Administrative Hearing Officer Panel. Code Compliance staff also oversees the Residential Zoning Records Reports (RZRR) where staff received 177 applications and provided those reports prior to transfer of titles. Code Compliance staff also monitors the Forestry replant program, and has sent out 29 reminders for tree replants, which are required after one or multiple trees are removed from private property. In February 2022, Deckard Technologies software was deployed for assistance in short-term rental code compliance. Utilizing this software, staff found 31 unlicensed short-term rentals and subsequently collected approximately $20,604.07 in administrative penalties through the code compliance process. There is currently one pending case that is on track to collect approximately $5,000 in penalties for unlicensed short-term rental of a property. At this time City staff is pleased with the selection of Deckard Technologies, and plan on renewing the contract/license agreement.

OPTIONS
N/A; no recommended action.

FINANCIAL IMPACT:

Receiving this report has no financial impact.

GOAL ALIGNMENT: Not Applicable.

Attachments
PPT

Pacific Grove Administrative Code Compliance Procedures

1. Complaint or staff referral
received by Code Compliance
Officer (CCO). (Anonymous
complaints may be given
lower priority unless Health
& Safety related.)

2. CCO reviews documents
to verify jurisdiction,
zoning, permit status,
property ownership,
applicable code provisions,
prior complaint history.
5a. If no response or inspection request denied, proceed to 7. 5b. CCO conducts inspection. Photograph and document apparent violations(s) and proceed to 6. 5c. If no evidence of violation, case is closed. Memo placed in file; property owner(s) and complainant contacted by phone or email if so requested.

4. If no response within 30
days by owner(s), CCO sends
Follow up Letter to owners
and occupants specifying a
date/time for inspection.

6. CCO sends letter to
property owner(s) informing
them of violation and specific
steps to resolve, including,
usually a 30-day compliance
date. If owner clears
violation, proceed to 8a. If
no response within 30 days,
proceed to 7.

7. CCO sends Compliance
Order to property owners(s)
and occupant(s) per MC
Section 1.19.160, with
usually 30 days to respond.
8a. Compliance achieved. CCO prepares memo to file; contact property owner(s) via phone or email.
8b. Compliance not achieved. Hearing Officer (HO) schedules hearing per MC Section 1.19.180.

10. CCO prepares
hearing report and
supporting evidence.
13a. If HO finds a violation, HO issues an Administrative Order (AO) per MC Section

1.19.190.
13b. If HO finds no violation or the violation is corrected within the time specified, the HO issues a finding as to those facts. Case closed.

9. CCO sends Notice of Compliance
Hearing to property owner(s) and
occupant(s). CCO posts property and at
City Hall display cabinet (10 days notice
prior the hearing).
3a. If no evidence of violation, case is closed. CCO notifies Complainant.
3b. If code violation suspected, an Introduction and Inspection Request Letter is sent to the property owner(s) and occupant(s)— as a courtesy.

11. HO conducts
Hearing.

12. HO makes
findings and
determination in
accordance with MC
Section 1.19.180(e).

14. HO sends notice of entry of the
Administrative Order, copy of
Order and findings to owner(s) and
occupant(s).

Page | 2
http://www.codepublishing.com/CA/pacificgrove Revised 2014 15a. Property owner fails to comply. Case held for the 90 day appeal period pursuant to MC Section 1.16.
15b. Property owner submits evidence but City Manager disputes compliance, proceed to 17. Owner may dispute City Manager’s decision by requesting a HO hearing.
15c. Property owner submits evidence of compliance in accordance with the schedule. If City Manager agrees Compliance Report submitted to Hearing Panel. Case closed.

Post Hearing Process
16a. If Compliance Dispute,
Compliance Hearing scheduled
upon request per MC Section

1.19.250.
16b. If no hearing request, case
referred to City Attorney for
enforcement pursuant to MC
Section 1.16.

1. If fines or cost imposed by HO
are not paid within 90 days, a lien
against the real property may be
imposed.
17a. HO holds
hearing and finds
compliance.
17b. If noncompliance, staff
requests City
Council to impose
lien on Property.

2. Person
subject to lien
may protest
to City
Council.

3. Council’s
decision
adopted by
resolution.

4. If Council
imposes lien, City
Attorney files lien
with County
Recorder’s office.

5. When lien is
satisfied, City will
produce Notice of
Satisfaction for
lienee to record.

City Council
City of Pacific Grove
UU
Update on Code Compliance Program
Annual Code Cases
Residential Zoning Records Reports
City Council
City of Pacific Grove
Tree Replant Reminders
Short Term Rental Enforcement
Questions?
Agenda No. 8 F

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Brian A. Pierik, City Attorney
MEETING DATE: February 1, 2023
SUBJECT: Teleconference Rules For Attendance at Meetings of Legislative Bodies CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Motion to receive and file Agenda Report on Teleconference Rules for attendance at meetings of legislative bodies.

DISCUSSION
This Agenda Report will address the teleconferencing rules for attendance at meetings of legislative bodies. Teleconferencing is sometimes referred to as virtual or remote attendance.

AB 2449 amended Government Code Section 54953 of the Brown Act and became effective on January 1, 2023. AB 2449 provides an additional procedure for members of legislative bodies to attend public meetings remotely. With the adoption of AB 2449, there are currently the following three methods for attending a meeting of a legislative body by teleconferencing:

1. The “traditional” teleconferencing rules in Government Code Section 54953 (b) effective now and in the future unless amended by the Legislature.

2. AB 361 which is codified in Government Code Section 54953 (e) and has special rules for teleconferencing that are different than the “traditional” teleconferencing rules. Note that AB 361 will expire on January 1, 2024 and will also apply only so long as the State’s declaration of emergency remains in effect. According to a press release issued on October 2022, Governor Newsom is expected to end the Declaration of Emergency on February 28, 2023.

3. AB 2449 rules as described below effective January 1, 2023. AB 2449 does not prevent legislative bodies from continuing to have hybrid meetings to allow the public to attend meetings remotely, it only impacts when a member of a legislative body may attend a meeting remotely.

TRADITIONAL TELECONFERENCING RULES
The “traditional” teleconferencing rules are found in Government Code Section 54953(b) and are set forth in Attachment 1 to this Agenda Report.

AB 361 TELECONFERENCING RULES
The “AB 361” rules are found in Government Code Section 54953(e) and are set forth in Attachment 2 to this Agenda Report.

AB 2449 TELECONFERENCING RULES
The “AB 2449” rules are found in Government Code Section 54953(f) and are set forth in Attachment 3 to this Agenda Report.

Under AB 2449, members of a legislative body may attend public meetings remotely without identifying their teleconference site on the agency’s agenda or ensuring it is accessible to the public if the procedures below are followed.

As long as a quorum of the legislative body participates in person from a physical location open to the public, the remaining agency members can participate remotely in two situations:

1. Just Cause
Just cause is defined as any one of the following:

childcare or caregiving of a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner that requires a member to participate remotely; a contagious illness that prevents a member from attending in person; a need related to a physical or mental disability; or
travel while on business of the legislative body or another state or local agency.

In order to participate remotely under the just cause provisions, the member must notify the legislative body at the earliest possible opportunity, including at the start of a meeting, of their need to participate remotely and provide a general description of the circumstances related to one of the four items above.

A member may only participate remotely under the just cause provisions up to two meetings per calendar year.

2. Emergency Circumstances
Emergency circumstances means a physical or family medical emergency that prevents a member from attending in person.

In order to participate remotely under the emergency circumstances provisions, the member must request that the legislative body allow them to participate in the meeting remotely because of emergency circumstances and the legislative body must take action to approve the request.

A member must make a request to participate remotely under the emergency circumstances provisions as soon as possible. The legislative body may take action on this request at the earliest opportunity. If the request does not allow sufficient time to place it on the agenda for the meeting for which the request is made, the legislative body may take action on the request at the beginning of the meeting by majority vote.

The legislative body must request a general description of the circumstances relating to the member’s need to appear remotely. This description does not have to be more than 20 words and the member does not have to disclose any personal medical information.

Additional Rules if Members Participate Remotely
If agency members participate remotely under this new law for either the just cause or emergency circumstances situations described above then the following rules apply:

1. The legislative body must provide a way for the public to remotely hear, visually observe, and remotely address the legislative body, either by a two-way audiovisual platform or a two-way telephonic service and a live webcasting of the meeting.

2. The legislative body must provide notice of how the public can access the meeting and offer comments.

3. The agenda must identify and include an opportunity for the public to attend and directly address the legislative body through a call-in option, an internet-based service option, and in-person at the location of the meeting.

4. The body cannot require comments to be submitted before the start of the meeting. The public must be allowed to make “real time” public comment.

5. If there is a disruption to the meeting broadcast or in the ability to take call-in or internet-based public comment, no further action can be taken on agenda items until the issue is resolved.

6. The legislative body must implement a procedure for receiving and resolving requests for reasonable accommodations for individuals with disabilities, and must give notice of these procedures.

7. Members participating remotely must participate through both audio and visual technology.

8. Members participating remotely must publicly disclose at the meeting before any action is taken whether any other individuals 18 years of age or older are present in the room at the remote location with the member and the general nature of the member’s relationship with the individual.

9. A member may not participate in meetings solely by teleconference under this law for more than three consecutive months or 20% of the regular meetings for the public agency within a calendar year. If the legislative body regularly meets less than 10 times a year, a member may not participate remotely for more than two meetings.

CONCLUSION
In addition to teleconferencing under the rules set forth in AB 2449 as described above, legislative bodies may still meet via teleconference by following the traditional Brown Act rules of identifying the teleconference site on the agency’s agenda and ensuring it is accessible for the public to attend.

Further, legislative bodies may meet by teleconference under AB 361 until January 1, 2024 or until the Governor ends the Declaration of Emergency which is expected to occur on February 28, 2023.

The City may continue to allow the public to attend meetings of the legislative bodies virtually (remotely).

OPTIONS
Do not receive and file agenda report.

FINANCIAL IMPACT:

None.

GOAL ALIGNMENT: Not Applicable.

Attachments
1 - Government Code Section 54953(b) - "Traditional teleconference rules 2 - Government Code Section 54953 (d) - AB 361 rules
3 - Government Code Section 54953 (f) - AB2449 Rules
ATTACHMENT 1
“TRADITIONAL” TELECONFERENCING RULES OF GOVERNMENT CODE SECTION 54953(b).
(b)(1) Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2) Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body.

All votes taken during a teleconferenced meeting shall be by rollcall. (3) If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivisions (d) and (e). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4) For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both. Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.

ATTACHMENT 2
“AB 361” TELECONFERENCING RULES OF GOVERNMENT CODE SECTION 54953(e). (e)(1) A local agency may use teleconferencing without complying with the requirements of paragraph (3) of subdivision (b) if the legislative body complies with the requirements of paragraph (2) of this subdivision in any of the following circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. (C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(2) A legislative body that holds a meeting pursuant to this subdivision shall do all of the following:
(A) The legislative body shall give notice of the meeting and post agendas as otherwise required by this chapter.
(B) The legislative body shall allow members of the public to access the meeting and the agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3. In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also give notice of the means by which members of the public may access the meeting and offer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C) The legislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency.
(D) In the event of a disruption which prevents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency's control which prevents members of the public from offering public comments using the call-in option or internetbased service option, the body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E) The legislative body shall not require public comments to be submitted in advance of the meeting and must provide an opportunity for the public to address the legislative body and offer comment in real time. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(F) Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local legislative body, that requires registration to log in to a teleconference may be required to register as required by the third-party internet website or online platform to participate.
(G)(i) A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to register, pursuant to subparagraph (F), to provide public comment until that timed public comment period has elapsed.
(ii) A legislative body that does not provide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to register pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii) A legislative body that provides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to register, pursuant to subparagraph (F), until the timed general public comment period has elapsed.
(3) 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.
(4) For the purposes of this subdivision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).

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Agenda No. 8 G

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joseph Sidor, Contract Planner
MEETING DATE: February 1, 2023
SUBJECT: 2022 Planning Commission Annual Report
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the 2022 Planning Commission Annual Report.

Attachments
2022 Planning Commission Annual Report
1 ANNUAL REPORT

PACIFIC GROVE PLANNING COMMISSION
JANUARY – DECEMBER 2022
A. Introduction
The Planning Commission held 15 meetings in 2022, including 12 regular monthly and three special sessions. The total number of meetings was 16 in 2021 and 11 in 2020. All meetings were virtual and made use of the Zoom format from January thru July. Hybrid meetings, involving inperson attendance at the City Council chambers and use of Zoom, began in August for the rest of the year.

There were several personnel changes in 2022, as noted below:
 In February, at the start of the 2022-23 term, the Commission welcomed three new members, Debby Beck, William Fredrickson, and Peter Nodzenski. They replaced Bill Bluhm, Jeannie Byrne, and Mark Chakwin.
 Steven Lilley was elected chair at the first meeting of the new term in February. Don Murphy was named vice-chair and Claudia Sawyer, secretary. Secretary Sawyer later resigned her position in early December.
 The Commission also welcomed a new Community Development Department (CDD) director, Anastacia Wyatt. She replaced Alyson Hunter, who left in April, and John Kuehl, who served as interim director. A new deputy counsel, Gregory Rubens, was appointed to replace Michael Laredo in July. Joe Sidor served as the CDD liaison to the Planning Commission.

B. Public Hearings/Quasi-Judicial Reviews
The Commission made decisions on 10 reviews as noted below. An additional review was continued to January 2023.

Project Name Permit Type Decision

1. Appeal of historic determination of
227 Grand Avenue (21-0350).

HRI Determination. Approve appeal; remove
property from HRI.

2. 135 18th Street (21-0391). AP and CDP. Approved.

3. 342 Asilomar Avenue (21-0045). AP and CDP. Approved.

4. 128 18th Street (21-0401). AP/CDP Waiver. Approved as CDP.

5. 183 Ocean View Boulevard (22-
0072).

CDP. Approved.

6. 321 Asilomar Avenue (22-0039). AP and CDP. Approved.

7. 120 17th Street (22-0125). CDP. Approved.

8. 829 Ocean View Boulevard (22-
0092).

AP/VAR/CDP. Approved.

9. Appeal of 1166 Presidio Boulevard
(22-0108).

AP and TPD. Deny appeal; approve AP
and TPD.

10. Call-up of historic determination of
1352 Lighthouse Avenue (22-0255).

HRI Determination/
Phase I Report.

Recommend Phase I Report.

11. 176 Central Avenue (22-0080). AP and CDP. Continued until January 2023.
2 Permit Type Key: AP is architectural permit; UP is use permit; CDP is coastal development permit; HRI is historic resources inventory; VAR is variance from requirements of Pacific Grove Municipal Code; and TPD is tree permit with development.

C. Legislative Recommendations
The Commission made several recommendations to the City Council, including amendments to the Pacific Grove Municipal Code (PGMC), as described below:
 Recommended six projects for the capital improvement project program (CIP): 1) extend the reclaimed water irrigation line to other City properties, specifically Perkins Park and Lover’s Point; 2) restore and repair the large mural showing the history of Pacific Grove on the City’s recreation trail; 3) improve maintenance in City parks; 4) improve and maintain the Forest Avenue entrance to City Hall; 5) repaint parking space striping on downtown streets; and 6) reconfigure the intersection at Eardley and Central Avenues to facilitate traffic flow, including possibly removing a traffic calming device. (February)
 Recommended that City staff be directed to initiate a focused General Plan Update to the Land Use, Safety, and Transportation Elements of the City's General Plan, to meet the minimum requirements triggered by the 2023-2031 Housing Element Update. The Commission also recommended that the City form a committee with at least one City Council member, one Planning Commissioner, and staff to make a recommendation through the city manager to the City Council, on the selection of a consultant for the focused General Plan Update. (May)  Recommended that the City Council appeal the RHNA numbers adopted by AMBAG (Association of Monterey Bay Area Governments) through the established process. (May)  Recommended that the City Council authorize the Planning Commission to move to a hybrid meeting format as soon as possible. A second motion was to have the chair designate a Planning Commission member to appear before the City Council to convey the Commission’s meeting format recommendation and answer questions. (June)  Recommended amending PGMC 23.45.020 to better effectuate the City’s prohibition of timeshares, including fractional ownership or similar models of ownership, and for staff to return with a draft zoning ordinance amendment for Planning Commission consideration at its July 14, 2022, meeting. Recommendation dropped as result of consultation with legal counsel. (June-September)
 Recommended that the Parklet Program Subcommittee Report with its recommendations be forwarded to the City Council. (December)
 Directed staff to prepare a proposed ordinance with change/additions to PGMC Title 23, Zoning. (December)
 Directed staff to prepare a proposed ordinance amending PGMC 23.64.190(d) to require proposals for hotels and motels to provide one parking space per one guest room. (December) D. Presentations
Most Commission meetings had at least one presentation PGMC in 2022. Many of the presentations were devoted to housing and subcommittee reports, as listed below:
 Planning Commission Annual Report for 2022. (January)  Planning Commission Work Plan/Training Calendar, 2022. (January)  Serial meeting and ex parte communication procedures. (February)  Community Development Department's 2022 Annual Workplan. (March) 3  Review of Land Use Element of the General Plan. (March)  CCD Planning Division bulletins on acronyms, accessory structures, areas of special biological significance, development in the coastal zone, privacy design guidelines, environmentally sensitive habitat areas, floor area vs. coverage, non-conforming, and site plan. (March)  2021 Housing Element Annual Performance Report. (April)  Housing Element Update: Introduction and Schedule and Regional Housing Needs Assessment (RHNA) numbers for 2023-2031. (April/May)
 Annual Progress Report for General Plan Implementation for 2021. (April)  Near and Long-Term Actions to Increase Housing Capacity and Meet State Law. (May)  Report on Other Cities Updates to Their General Plans. (June)  City Council Goals and Tactics. (July)
 Review of fact sheet for the housing survey. (September)  Parklet Program Subcommittee Report (December)
 Periodic reports of the Planning Subcommittee
 Periodic reports of the Policy and Ordinance Subcommittee.  Periodic reports of the Education and Training Subcommittee.  Periodic General Plan and Housing Element Updates.

E. Organization
The Commission made use of four subcommittees in order to provide in-depth study and analysis of issues in support of its public hearing and legislative responsibilities. Actions are listed below:
 Appointed Debby Beck to the Education and Training Subcommittee. (February)  Appointed Peter Nodzenski to the Education and Training Subcommittee. (February)  Renewed the Policy and Ordinance Subcommittee for six (6) months. (March)  Appointed Don Murphy and Robin Aeschliman to the Policy and Ordinance Subcommittee. (March)
 William Fredrickson was appointed to the Planning Subcommittee. (March)  Renewed Planning Subcommittee for six (6) months. (June).  Voted that a special meeting be called to address forming a parklet subcommittee. (August)  Voted to form a Parklet Program Subcommittee with three members and that the Planning Commission provide direction to the subcommittee. Appointed Debby Beck, Claudia Sawyer, and Steven Lilley to the subcommittee. (September)
F. Work Plan Compliance
In January, the Commission reviewed the draft Work Plan/Training Calendar for 2022. The Work Plan was divided by month into three categories: legislative, quasi-judicial (permits) and training/educational.

A review of the Work Plan shows that quasi-judicial, including public hearings, was addressed and met. Training/educational items also were met, as illustrated under “Presentations,” above.

Housing was the primary focus of legislative items in the Work Plan; however, this category included many other initiatives, as shown under “Legislative Recommendations,” above. Note that the City and Planning Commission will need to focus extensively on housing and General Plan update issues in 2023.

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: Ben Harvey, City Manager
MEETING DATE: February 1, 2023
SUBJECT: Ratification of New Local Emergency Actions
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive report of emergency directives/modifications.

DISCUSSION
The City Manager during this Local Emergency is authorized to directly mitigate effects of the Local Emergency to protect life or property.

This report apprises the City Council of emergency directives taken under the continuing local emergency proclaimed by Resolution 20-007. This report fulfills the City Council’s review obligation under that Resolution and Government Code 8630. This agenda item also enables ratification of select actions taken since the City Council’s last review.

City expenditures for legal services related to COVID-19 issues (specifically to related to COVID 19-COM (Communications); COVID 19-TRN (Training); COVID 19-LAW (Legal Support); and COVID-19 (Other)) are eligible for State and Federal Emergency Service reimbursement, including but not limited to FEMA or other emergency grant funding.

Actions not subject to Ratification. Since the time of the revised Monterey County Shelter in Place Order issued Friday, April 3, 2020, the City Manager has taken the following new or modified actions pursuant to the Emergency Proclamation:

None to report at this time.

No action is necessary with respect to the above new or modified measures, as each is responsive to requirements of the revised Monterey County Shelter in Place Order falling within the regular management discretion of the City Manager.

Actions subject to Ratification. Certain mitigation measures that have been enacted by the City Manager in response to the Monterey County Shelter in Place Order issued Friday, May 8, 2020, and in accord with Council’s Local Emergency under Article 19, subparagraph l, of the Pacific Grove City Charter, and Chapter 3.20 of the Pacific Grove Municipal Code (PGMC), are subject to ratification.

Any mitigation measures that qualify are subject to ratification as required by Government Code 8630 and City Council Resolution 20-007, and are listed below:
and City Council Resolution 20-007, and are listed below:

1. None to report at this time.

Discussion of Circumstances Needing Emergency Response. The discussion part of this item allows comment on circumstances which may benefit from further or different emergency responses. Matters identified will be referred to the City Manager for appropriate consideration in accord with the Emergency Management System protocols set by PGMC Chapter 3.20. These delegate exclusive emergency management response authority to the City Manager.

CEQA Exemption. Actions taken to prevent or mitigate an emergency are exempt from CEQA pursuant to section 15260 of the CEQA Guidelines.

OPTIONS
Actions not subject to ratification are reported for information only.

FINANCIAL IMPACT:

There is no financial impact in receiving the report.

GOAL ALIGNMENT: Not Applicable.

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: Joyce Halabi, Deputy Public Works Director
MEETING DATE: February 1, 2023
SUBJECT: Authorize Agreement for the Del Monte Blvd. Storm Drain Project.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION
Authorize an agreement with Monterey Peninsula Engineering for the Del Monte Blvd Storm Drain Improvements Project in an amount not to exceed $227,125 plus a 15% contingency.

DISCUSSION
At the November 3, 2021, City Council meeting, the Del Monte Blvd Storm Drain Project was approved for inclusion in the FY21/22 Capital Improvement Plan (CIP) with a budget of $150,000 derived from American Rescue Plan Act (ARPA) funds. The purpose of the project is to replace the failed stormwater infrastructure on Del Monte Blvd from Coral St to Esplanade St that was deferred for several years due to lack of available funding.

These improvements are essential in helping ensure surface flow is properly channeled into the stormwater collection network, protecting the bay and the Area of Special Biological Significance (ASBS), and allowing proper access to service the line for maintenance. Moreover, these improvements are essential to pavement health. The existing roadway is in a “failed” state with a PCI of 16 (out of 100). The improvements will prevent continued rapid degradation of the roadway, due to pooling surface water, and will allow the city to schedule future pavement rehabilitation, which has been deferred until underground infrastructure repairs can be made.

The project was engineered in FY21/22. The scope of work includes:

Replacement of 390LF of failed stormwater pipe
Installation of 60LF of new stormwater pipe
Construction of 3 storm drain access point manholes
Reconstruction of 1 catch basin, and
Construction of 2 new catch basins
In March 2022, following the completion of engineering, a call for bids was issued. 4 bids were received:

COMPANY NAME BID AMOUNT
Monterey Peninsula Engineering $197,700
Don Chapin $258,755
Anderson Pacific $263,500
Moka $398,720
Due to insufficient funds to allow for construction, the project was deferred and a request for additional funding was made via the FY22/23 CIP process. Additional funding was requested based on the project bid results and in anticipation that the project would need to be rebid, as the contractor is only required to honor bid pricing for a period of 60 days. If rebid, it was anticipated that proposals would come in higher than the original bid process.

As part of the FY22/23 CIP, the City Council approved an additional $125,524 allocation to the project; $75,000 from ARPA funding and $75,524 from the Strong Disbursement Fund. This brings the total project budget up to $305,524.

Following approval of the FY22/23 Budget, which included the additional project funding, the lowest bidder, from the March 2022 proposals, was contacted to gauge willingness to honor the original bid proposal. Due to increased material costs and inflation, the contractor was not able to honor the original bid.

As a result, the project was re-bid, as originally engineered. On January 5, 2023, the bid period closed.

The city received 6 bids:

COMPANY NAME BID AMOUNT
Monterey Peninsula Engineering $227,125
Precision Grade $244,215
Coastal Paving & Excavating $245,650
Don Chapin Company $269,000
Rehak General Engineering $285,350
Pacific Underground Construction, Inc. $297,019
Monterey Peninsula Engineering has been qualified as the lowest responsible bidder. They are well positioned to perform this work and have successfully completed several sewer and stormwater projects for the city.

Staff recommends authorization of this contract to promptly address the failed stormwater infrastructure.

OPTIONS

1. Authorize the agreement.

Do not authorize the agreement. Failure to authorize the agreement will result in failed stormwater infrastructure to remain in disrepair and allow for continued road degradation.

2. 3. Provide alternate direction.

FINANCIAL IMPACT:

This project was approved as part of the FY22/23 CIP with a budget of $305,524, derived from the Strong Disbursement Fund and ARPA funding. There is sufficient project funding to allow for construction.

GOAL ALIGNMENT: Not Applicable.

Attachments
Public Comment
2/2/23, 12:40 PM Mail - Kerry Lindstrom - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkADYyMjk4YWQ5LTllNGQtNDUyYS04YjIwLTlmMjJjOWFiNGVmZQBGAAAAAABe%2FOZZGRnqSoa… 1/6 Community Development
Department
Ohlone-Costanoan Esselen Nation. Many areas of Pacific Grove are sensitive in terms of Tribal, cultural, and archaeological resources. Because of this sensitivity, Planning and Public Works staff Agenda Item 9B, Del Monte Blvd. Storm Drain Project
Lisa Ciani <[email protected]>
Wed 2/1/2023 3:17 PM
To: City Council Members <[email protected]>;Pierik, Brian A. <[email protected]>;Rubens, Gregory J. <[email protected]> [NOTICE: This message originated outside of the City of Pacific Grove email system -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Dear Mayor Peak and Council Members,
I hope you will pull Item 9B, Del Monte Blvd. Storm Drain Project (between Coral and Esplanade) from the Consent Agenda in order to ask staff why there is no mention of Tribal Monitoring and whether that monitoring will be provided. I don’t expect to be able to attend tonight’s meeting to be able to pull the item.

The project is in the City’s Archaeological Zone (part of PG’s original Coastal Zone). (See attached map below.) Prior disturbance is not a justification for dispensing with Tribal Monitoring. In Monterey a few years ago, remains of three ancestors were uncovered in the course of a manhole replacement project near the Presidio, and reburied in the municipal cemetery by OCEN members.

The City of PG hired a consultant (Rincon, I believe) over two years ago to prepare a Cultural Resource and Tribal Monitoring Compliance Protocol, but there’s been no sign of it in all this time. In response to the most recent inquiries at ARB last fall, staff said that the matter is in the Deputy Public Works Director’s hands. This matter should be handled by planning staff because Public Works has a conflict of interest. Please ask for monthly updates until document is completed and approved.

In 2020, when the City was facing an appeal of their first Coastal Development Permit, they wrote the following message in the City Manager’s Weekly Report—I would like to see the City live up to this:
2/2/23, 12:40 PM Mail - Kerry Lindstrom - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkADYyMjk4YWQ5LTllNGQtNDUyYS04YjIwLTlmMjJjOWFiNGVmZQBGAAAAAABe%2FOZZGRnqSoa… 2/6 work closely with the Ohlone-Costanoan Esselen Nation (OCEN) to ensure that public and private projects that have the potential to disturb the remains or artifacts of the ancestors are properly reviewed and monitored. City staff has worked hard over the last several years to develop a very good relationship with the OCEN and meet monthly with OCEN Chair Miranda-Ramirez to discuss projects large and small.

Planning staff encourages private property owners to obtain Tribal monitors on a voluntary basis whenever it is not required by law. You may see Tribal monitors at several Public Works sewer replacement and stormwater projects throughout the City ensuring that ground disturbing activities are carefully observed and that any found artifacts or remains are handled respectfully and according to local and State laws. It is important for the City to continue to grow its relationship with the OCEN and other local Tribes in an effort to keep the stories of the indigenous people alive and not forgotten.

Sincerely,
Lisa Ciani

Agenda No. 9 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Lori Frati, Management Analyst
MEETING DATE: February 1, 2023
SUBJECT: Agreement for Comprehensive Fee Study, Development Impact Fees, and/or a Cost Allocation Plan
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Motion to Authorize the Mayor to sign an agreement with the Matrix Consulting Group for a comprehensive fee study, development impact fee report, and/or a cost allocation plan, in an amount not to exceed $67,890.

DISCUSSION
The Fiscal Year 21/22 City Council Goals include the following tactics to assist in achieving the Financial Stability Goal:

Tactic 5A: Developing an impact fee assessment to determine the feasibility of implementing new fees associated with development
Tactic 5E: Develop a fee study for Community Development building fees, as well as update fees to reflect the reduction in short-term rentals for rental licensing and permits.

While the comprehensive fee study is not directly mentioned in Tactics 5A and 5E, it will also assist with Tactic 5C, which includes identifying additional or missing City revenue opportunities. This could include developing fees for parklet licensing and land leases; preparing formal cost recovery rates for electric vehicle charging stations; and revisiting tree permit fees, in conjunction with the forthcoming revisions to the municipal code. This comprehensive fee study will also assist in assuring compliance with the relevant government codes, which include the stipulation that a local agency's user fees may not exceed the reasonable cost of providing the services for which the fee is charged. The cost allocation plan will also assist in maximizing grant reimbursements, as well as determining the indirect charges that are applicable to the City's enterprise funds.

To facilitate this goal, City Staff published the Request for Proposals (RFP) on September 1, 2022 with a closing date of September 30, 2022. The City received and reviewed four proposals. The RFPs were evaluated through a rating and ranking system, by a selection panel of City Staff comprised of Tori Hannah, Administrative Service Director/Assistant City Manager, Lori Frati, Management Analyst and Anastacia Wyatt, Community Development Director. The panel reviewed the proposals and ranked them based on their clarity in understanding the project and the following criteria:

Company: Qualifications, Information, Background and Financial Stability Company: Qualifications, Information, Background and Financial Stability Methodology Used to Meet the City’s Need
References for Each Service Proposed
Quality, Clarity, Completeness and Responsiveness to Proposal Demonstrated Ability to Work in Cooperative Collaborative Manner with Clients Reasonableness of Any Proposed Adjustment to Contract
Implementation Approach & Training
Pricing and Timeline.

Based on the evaluation of the written proposals, references and samples of past work projects and presentations, one firm, Matrix Consulting Group (MCG) was the most responsive in terms of meeting the City's objectives and criteria, along with providing the most cost-effective approach. In addition, MCG has worked with the City on the comprehensive user fee study and cost allocation plan in 2018, as well as Fire and Library Service Studies.

The desired outcome of this project is to receive a report that will be used to establish fees and allocate percentages/rates that support the full cost recovery of services; and a Development Impact Fee Report that assists in mitigating city-wide impacts on public improvements, public services, and community amenities.

MCG’s goals when building a user fee study/cost allocation plan and development impact study, are to document direct and indirect costs associated with fee-based services, identify the appropriate portion of costs shared between existing residents and new development; and present cost recovery data. The results will provide the City with the knowledge and tools to ensure that current practices are compliant, and to develop cost recovery policies that balance the needs of the General Fund with any subsidies.

Examples of fees that may be partially subsidized with General Fund revenues, could include senior fees, fees that encourage compliance, and recreation programs. These studies, along with Council Policy 400-4, Fees, Charges, and Cost Recovery, will be referenced when updating the Master Fee Schedule.

In a brief meeting with MCG, the development impact fee (DIF) study component of the proposal was discussed. The consultant indicated that due to the size and development growth factors of Pacific Grove, there may not be a need to go forward with the complete DIF portion of the project. This would be evaluated in the first phase of the DIF scope of work. If it is determined that there isn't sufficient development to warrant a complete impact fee study, the DIF costs will only reflect the time spent in making the initial assessment.

A copy of the proposed agreement is included as an attachment to this staff report. The language does not deviate from the City's standard agreement that has been approved by the City Attorney and the City's Risk Management Joint Powers Authority. On September 21, 2022, the Council reviewed the standard agreements, which included the attached Professional Services Agreement. A motion was made to direct the City Attorney to prepare a resolution authorizing the standard contracts.

The proposed scope of work, cost proposal, original City Request for Proposal, and the vendor proposal has been incorporated as exhibits to the agreement.

OPTIONS
Provide alternative action
FINANCIAL IMPACT:

The City's adopted budget includes $48,000 for these services. An additional appropriation of The City's adopted budget includes $48,000 for these services. An additional appropriation of $19,890 will be needed to fund the Comprehensive Fee Study, Development Impact Fee Report, and the Cost Allocation Plan. It is anticipated that there should be sufficient funds in the unassigned General Fund balance to support this contract, without exceeding reserve policy levels. If this contract is approved, staff will request a budget amendment as part of the mid-year budget process; or prepare a separate ordinance.

GOAL ALIGNMENT: Not Applicable.

Attachments
Draft Professional Services Agreement - Matrix Consulting Group Professional Services Agreement 07.19.2022

CITY OF PACIFIC GROVE

PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICE AGREEMENT (“PSA”) FOR NON-CONSTRUCTION PROJECTS (“Agreement”), is made and effective as of February 1, 2023, between the City of Pacific Grove (“City”), a municipal corporation and Matrix Consulting Group, a corporation (“CONSULTANT”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on February 1, 2023 and shall remain and continue in effect until the tasks described herein are completed, but in no event later than February 1, 2024, unless sooner terminated pursuant to the provisions of this Agreement.

2. SCOPE OF WORK
CONSULTANT shall perform the tasks and services (“Services”) described and set forth in Exhibit A, Scope of Services, attached hereto and incorporated herein as though set forth in full.

CONSULTANT shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. To the extent that Exhibit A is a proposal from CONSULTANT, such proposal is incorporated only for the description of the Scope of Services and no other terms and conditions from any such proposal shall apply to this Agreement unless specifically agreed to in writing.

3. PERFORMANCE
CONSULTANT shall at all times faithfully, competently and to the best of their ability, experience, and talent, perform all Services described herein. CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of CONSULTANT hereunder in meeting their obligations under this Agreement.

CONSULTANT is bound by the contents of City’s Request for Proposal on file hereto and incorporated herein as Exhibit D, and the contents of the proposal submitted by CONSULTANT, available on file at City Finance Department at 300 Forest Avenue, hereto and incorporated herein as Exhibit E. In the event of conflict, the requirements of City’s Request for Proposals and this Agreement shall take precedence over those contained in CONSULTANT’s proposals.

4. CITY MANAGEMENT
The City Manager, or their designee, shall represent City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by CONSULTANT, but not including the authority to enlarge the Scope of Work or change the compensation due to CONSULTANT. The City Manager shall be authorized to act on City’s

Professional Services Agreement 07.19.2022
behalf and to execute all necessary documents that enlarge the Scope of Work or change CONSULTANT’s compensation, subject to Section 6 hereof.

5. PAYMENT
a. The City agrees to pay CONSULTANT monthly, in accordance with the payment rates and terms and the Payment Schedule as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed sixty seven thousand eight hundred and ninety dollars ($67,890.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement.
b. The City Manager’s contract authority is limited to $39,999.99, which includes all costs.

Contracts, including any contract amendments that exceed the total threshold, require City Council approval. Any contracts, including contract amendments that exceed the total threshold, which do not have City Council approval, shall be void. c. CONSULTANT shall not be compensated for any Services rendered in connection with its performance of this Agreement that are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager or the City Council. CONSULTANT shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and CONSULTANT at the time City’s written authorization is given to CONSULTANT for the performance of said services. d. CONSULTANT shall submit invoices monthly for actual Services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for Services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of CONSULTANT’s fees it shall give written notice to CONSULTANT within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this Agreement shall be made within forty-five (45) days of receipt of an invoice therefore.

6. INSPECTION
City shall at all times have the right to inspect the work and materials. CONSULTANT shall furnish all reasonable aid and assistance required by City for the proper examination of the work and all parts thereof. Such inspection shall not relieve CONSULTANT from any obligation to perform said work strictly in accordance with the specifications or any modifications thereof and in compliance with the law.

7. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a. The City may at any time, for any reason, without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon CONSULTANT at least thirty (30) days prior written notice. Upon receipt of said notice, CONSULTANT shall immediately cease all Services under this Agreement, unless the notice provides otherwise. If the City

Professional Services Agreement 07.19.2022
suspends or terminates a portion of this Agreementsuch suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to CONSULTANT the actual value of the Services performed up to the time of termination, provided that the Services performed are of value to the City. Upon termination of the Agreement pursuant to this Section, CONSULTANT will submit an invoice to the City pursuant to Section 6.

8. DEFAULT OF CONSULTANT
a. CONSULTANT’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that CONSULTANT is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating CONSULTANT for any Services performed after the date of default and can terminate this Agreement immediately by written notice to the CONSULTANT. If such failure by the CONSULTANT to make progress in the performance of Services hereunder arises out causes beyond the CONSULTANT’s control, and without fault or negligence of the CONSULTANT, it shall not be considered a default.
b. If the City Manager or designee determines CONSULTANT is in default in the performance of any of the terms or conditions of this Agreement, they shall cause to be served upon CONSULTANT a written notice of the default. The CONSULTANT shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event CONSULTANT fails to cure its default within such period of time or fails to present City with a written plan for the cure of the default, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

9. OWNERSHIP OF DOCUMENTS
a. CONSULTANT shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of Services under this Agreement. CONSULTANT shall maintain adequate records of Services provided in sufficient detail to permit an evaluation of Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. CONSULTANT shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. If there is a substantial billing deviation adverse to City, then the cost of an audit shall be borne by CONSULTANT. Such records, together with supporting documents, shall be maintained for a period of five (5) years after receipt of final payment.

Professional Services Agreement 07.19.2022
b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the Services to be performed pursuant to this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of CONSULTANT. With respect to computer files, CONSULTANT shall make available to City, at CONSULTANT’s office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files.

CONSULTANT hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by CONSULTANT in the course of providing the Services under this Agreement.

10. RECORD AUDIT
In accordance with Government Code, Section 8546.7, for expenditures of greater than $10,000, records of both City and CONSULTANT shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

11. INDEMNIFICATION AND DEFENSE
Indemnity
To the fullest extent permitted by law, CONSULTANT shall indemnify and hold harmless City and any and all of its officers, employees and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs, caused in whole or in part by the negligent or wrongful act, error or omission of CONSULTANT, its officers, agents, employees or subconsultants (or any City or individual that CONSULTANT shall bear the legal liability thereof) in the performance of Services under this Agreement. CONSULTANT’s duty to indemnify and hold harmless City shall not extend to the City’s sole or active negligence.

Duty to defend
In the event City, its officers, employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the Services encompassed by this Agreement, and upon demand by City, CONSULTANT shall defend City at CONSULTANT’s cost or at City’s option, to reimburse City for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters to the extent the matters arise from, relate to or are caused by CONSULTANT’s negligent acts, errors or omissions. Payment by City is not a condition precedent to enforcement of this indemnity. In the event of any dispute between CONSULTANT and City, as to whether liability arises from the sole or active negligence of the City or its officers, employees, or agents, CONSULTANT will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as solely or actively negligent. CONSULTANT will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation.

Professional Services Agreement 07.19.2022

12. INSURANCE
CONSULTANT shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and part of this Agreement.

13. INDEPENDENT CONSULTANT
a. CONSULTANT is and shall at all times remain as to City a wholly independent consultant and/or independent contractor. The personnel performing the Services under this Agreement on behalf of CONSULTANT shall at all times be under CONSULTANT’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of CONSULTANT or any of CONSULTANT’s officers, employees, or agents, except as set forth in this Agreement.

CONSULTANT shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of City.

CONSULTANT shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. b. No employee benefits shall be available to CONSULTANT in connection with the performance of this Agreement. Except for the fees paid to CONSULTANT as provided in the Agreement, City shall not pay salaries, wages, or other compensation to CONSULTANT for performing Services hereunder for City. City shall not be liable for compensation or indemnification to CONSULTANT for injury or sickness arising out of performing Services hereunder.

14. LEGAL RESPONSIBILITIES
CONSULTANT shall keep itself informed of State and Federal laws and regulations that in any manner affect those employed by it or in any way affect the performance of its Services pursuant to this Agreement. CONSULTANT shall at all times observe and comply with all such laws and regulations. City, and its officers, employees, and agents shall not be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this Section.

15. UNDUE INFLUENCE
CONSULTANT declares and warrants that no undue influence or pressure was used against or in concert with any officer, employee or agent of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer, employee or agent of City has or will receive compensation, directly or indirectly, from CONSULTANT, or from any officer, employee or agent of CONSULTANT, in connection with the award of this Agreement or any Services to be performed as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to any and all remedies at law or in equity.

16. NO BENEFIT TO ARISE TO CITY OFFICERS AND EMPLOYEES
No officer, employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Services performed under the Agreement

Professional Services Agreement 07.19.2022
during their tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement.

17. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
a. All information gained by CONSULTANT in performance of this Agreement shall be considered confidential and shall not be released by CONSULTANT without City’s prior written authorization. CONSULTANT, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered “voluntary” provided CONSULTANT gives City notice of such court order or subpoena.
b. CONSULTANT shall promptly notify CITY should CONSULTANT, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement and the work performed there under or with respect to any project or property located within the City, unless City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless CONSULTANT is prohibited by law from informing City of such Discovery.

City retains the right, but has no obligation, to represent CONSULTANT and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is adverse to CONSULTANT in such proceeding, CONSULTANT agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by CONSULTANT. However, City’s right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. c. If City determines CONSULTANT comes within the definition of Contractor under the Political Reform Act (Government Code §87100 et seq.), CONSULTANT shall complete and file and shall require any other person doing Work under this Agreement to complete and file a “Statement of Economic Interest” with CITY disclosing CONSULTANT’s and/or such other person’s financial interests.

18. DISCRIMINATION
CONSULTANT agrees that in the performance of this Agreement, neither CONSULTANT nor any person acting on CONSULTANT’s behalf shall discriminate against any person on the basis of race, religious creed, color, national origin, ancestry, disability, medical condition, genetic information, marital status, sexual orientation, sex, gender identity, gender expression, military or veteran status or age.

Professional Services Agreement 07.19.2022

19. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, by first class mail, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To City: Lori Frati
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
Attention: City Clerk
To CONSULTANT: Richard Brady, President, and Courtney Ramos, Vice President [email protected] and
[email protected]
Matrix Consulting Group, Ltd.
1650 S. Amphlett Blvd., Suite 213
San Mateo, CA 94402
650-858-0507
Notice is effective on the date of personal service, or 5 days following deposit in a United States mailbox, or date of postmark. The parties may agree to service by email.

20. THIRD PARTY BENEFICIARIES
Nothing contained in this Agreement shall be construed to create, and the parties do not intend to create, any rights in third parties.

21. ASSIGNMENT
CONSULTANT shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of CITY. Because of the personal nature of the Services to be rendered pursuant to this Agreement, only CONSULTANT shall perform the Services described in this Agreement. CONSULTANT may use assistants, under their direct supervision, to perform some of the Services under this Agreement.

22. LICENSES
At all times during the term of this Agreement, CONSULTANT shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this

Professional Services Agreement 07.19.2022
Agreement. CONSULTANT shall obtain a valid City Business License and shall maintain said Business License for the term of this Agreement and any extensions.

23. GOVERNING LAW
City and CONSULTANT understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in Monterey County, or federal district court with jurisdiction over City.

CONSULTANT agrees not to commence or prosecute any dispute arising out of or in connection with this Agreement other than in the aforementioned courts and irrevocably consents to the exclusive personal jurisdiction and venue of the aforementioned courts.

24. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to their obligations described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this Agreement, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material. No amendment shall be valid unless in writing, executed by both parties.

25. DISPUTE RESOLUTION; ATTORNEY’S FEES
CONSULTANT shall continue to perform under this Agreement during any dispute.

CONSULTANT and City hereby agree to make good faith efforts to resolve disputes as quickly as possible. In the event any dispute arising from or related to this Agreement results in litigation or arbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, including court costs, attorney fees, expenses for expert witnesses (whether or not called to testify), expenses for accountants or appraisers (whether or not called to testify), and other related expenses. Recovery of these expenses shall be as additional costs awarded to the prevailing party, and shall not require initiation of a separate legal proceeding.

26. WORK SCHEDULED/TIME OF COMPLETION
City and CONSULTANT agree that time is of the essence in this Agreement.

27. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of CONSULTANT warrants and represents that they have the authority to execute this Agreement on behalf of the CONSULTANT and have the authority to bind CONSULTANT to the performance of its obligations hereunder.

Professional Services Agreement 07.19.2022

28. INTERPRETATION OF CONFLICTING PROVISIONS
In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.

29. SEVERABILITY
If any term of this Agreement is held invalid by a court of competent jurisdiction or arbitrator the remainder of this Agreement shall remain in effect.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

CITY OF PACIFIC GROVE CONSULTANT
By: By:

Department Director Consultant
Date: Date:

By: ___________________________ By: ____________________________ City Manager or Mayor City Administrative Services Department Date: ___________________________ Date: ___________________________ Approved As To Form:

City Attorney
_______________________________
Date
Professional Services Agreement 07.19.2022
Attachments: Exhibit A Scope of Services
Exhibit B Payment Schedule
Exhibit C Insurance Requirements
Exhibit D Request for Proposal
Exhibit E Consultant’s Proposal
Proposal for User Fees, Development Impact Fee, and Cost Allocation Plan Studies Pacific Grove, CA Matrix Consulting Group
Project Scope and Deliverables
This project is anticipated to take between 3-6 months to complete. All studies can be conducted concurrently. For each task included, we have identified the time frame during the 6 (six) month period in which the analysis will be completed. It is anticipated the Cost Plan will take 3 months, User Fee Study 5 months, and Impact Fee study 6 months.

Task Project Week(s) Deliverable

PROJECT WIDE TASKS
Data Collection Weeks 1 – 2 Data Collection and Project Schedule Memo Study Objectives Weeks 1 – 2 Initial meeting with key City staff Presentation of Results Weeks 24+ Council Presentation
Excel Models and Training Weeks 24+ Model, Backup Documentation, User Guide

COST ALLOCATION PLAN
Interview Staff and Gather Data Weeks 2-5 Review allocation metrics.

Review Allocation Metrics Weeks 4-8 Review of allocation workbooks Structure Draft Full Cost Plan Weeks 6-10 Draft Cost Allocation Model Compare to Previous Plan Weeks 9-11 Comparison Results (Excel) Finalize Full Cost Plan Weeks 10-14 Final Cost Plan Report Structure Draft OMB Plan Weeks 10-12 Draft OMB Cost Plan Finalize OMB Cost Plan Weeks 12-14 Final OMB Cost Plan Report

USER FEE STUDY
Current & Potential Fees Weeks 2-6 Provision of proposed fees Data Workshops Weeks 4-8 Time Estimate Workbooks
Fully Burdened Hourly Rates Weeks 5-10 Fully burdened hourly rates by position Total Cost Analysis Weeks 8-11 Draft Per Unit and Annual Cost Analysis Results Comparative Survey Weeks 4-14 Survey Results
Review/Revise Results Weeks 10-14 Draft Results Workbooks / Recommended Fees Draft Fee Study Report Weeks 10-16 Draft Fee Study Report Prepare Final Report Weeks 15-20 Final Fee Study Report Develop Master Fee Schedule Weeks 18-20 Consolidated Master Fee Schedule

DEVELOPMENT IMPACT FEE STUDY
Phase 1: Nexus Consideration
Review of Impact Fees Weeks 6-10 Current Impact Fee Memo Projected Growth and Needs Weeks 8-14 Spreadsheet summarizing infrastructure needs Phase 2: Impact Fee Analysis
Draft Fees Analysis Weeks 13-17 Draft Impact Fee Per Unit Results Comparative Survey Weeks 15-20 Survey Results
Draft Report Weeks 18-22 Draft Impact Fee Report
Final report Weeks 22-24 Final Impact Fee Report
Backup Documentation Weeks 24+ Delivery of Impact Fee Backup Documentation 1650 S. Amphlett Blvd., Suite 213 • San Mateo, CA 94402 • 650.858.0507 SF Bay Area (Headquarters), Boston, Charlotte, Dallas, Irvine, Portland, St. Louis September 30, 2022
Lori Frati, Management Analyst
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
Dear Ms. Frati:

The following chart provides a breakdown of hours by team member and costs for each task area to conduct a User Fees, Development Impact Fee, and Cost Allocation Plan Studies.

Project
Executive
Project
Manager
Lead
Analyst Analyst Total Cost

PROJECT WIDE TASKS
Data Collection 0 2 2 2 $850
Study Objectives 2 2 0 0 $820
Presentation of Results 6 6 0 0 $2,460
Excel Models and Training 0 4 4 8 $2,140
Subtotal Project Wide 8 14 6 10 $6,270

FULL COST ALLOCATION PLAN
Interview Staff & Gather Allocation Metrics 0 4 4 4 $1,700 Review Draft Allocation Metrics 0 2 4 4 $1,330
Structure Cost Model 0 0 6 6 $1,440
Draft Full Cost Plan 0 2 4 6 $1,550
Final Full Cost Plan 2 2 4 6 $2,000
Structure Draft OMB Plan 0 2 4 4 $1,330
Finalize OMB Cost Plan 2 2 2 4 $1,520
Subtotal CAP 4 14 28 34 $10,870

COMPREHENSIVE FEE STUDY
Current & Potential Fees 0 4 6 6 $2,180
Time Data Workshops 2 6 8 8 $3,480
Fully Burdened Hourly Rates 0 2 4 6 $1,550
Total Cost Analysis 2 6 8 12 $3,920
Comparative Survey 0 0 4 14 $2,060
Review / Revise Results 2 8 8 8 $3,850
Draft Fee Study Report 0 4 8 12 $3,100
Final Fee Study Report 2 4 6 8 $2,850
Develop Master Fee Schedule 0 2 2 8 $1,510
Subtotal Fee Study 8 36 54 82 $24,500
matrix
consulting group

EXHIBIT B
Project
Executive
Project
Manager
Lead
Analyst Analyst Total Cost

DEVELOPMENT IMPACT FEE STUDY
Phase 1: Growth Evaluation
Review of Impact Fees 4 4 6 8 $3,300
Growth and Facility Assessment 2 10 8 14 $4,880
Subtotal Phase I Study 6 14 14 22 $8,180
Phase 2: Impact Fee Analysis
Draft Analysis 2 8 10 10 $4,330
Comparative Survey 0 2 8 12 $2,730
Draft Report 4 8 10 10 $4,780
Final Report 2 6 8 8 $3,480
Impact Fee Presentation 4 10 0 0 $2,750
Subtotal Phase II Study 12 34 36 40 $18,070
Subtotal Development Impact Fee Study 18 48 50 62 $26,250 Total Hours 38 112 138 188
Hourly Rate $225 $185 $130 $110
Total Professional Fees $8,550 $20,720 $17,940 $20,680 $67,890 Total Project Cost $67,890
The Matrix Consulting Group proposes to perform the tasks and services associated with conducting a User Fee, Impact Fee, and Cost Allocation study for a fixed-price not-toexceed fee of $67,890. This amount accounts for either virtual or in-person interviews and presentations.

Our typical practice is to bill for hours worked on a monthly basis, with our contracts set up as fixed not-to-exceed price contracts. We are open to billing on a task or deliverable basis as well.

Again, we appreciate this opportunity.

Richard Brady, President
Matrix Consulting Group
Professional Services Agreement 07.19.2022

EXHIBIT C

INSURANCE REQUIREMENTS
Without limiting CONSULTANT’s indemnification of City, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.

General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and CONSULTANT agrees to maintain continuous coverage through a period no less than three (3) years after completion of the Services required by this Agreement.

Note: May need to delete workers’ compensation and employer’s liability insurance requirements for certain sole proprietorships, partnerships, or corporations without employees.

Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.

Umbrella or excess liability insurance. [Optional depending on limits required]. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; Professional Services Agreement 07.19.2022
• Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.

Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants.

Primary/noncontributing.Coverage provided by CONSULTANT shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by CONSULTANT or City will withhold amounts sufficient to pay premium from CONSULTANT payments. In the alternative, City may cancel this Agreement.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss.

CONSULTANT hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Professional Services Agreement 07.19.2022
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the City to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT.

CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.

CONSULTANT agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.

City’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the City and CONSULTANT may renegotiate CONSULTANT’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.

Professional Services Agreement 07.19.2022
Timely notice of claims. CONSULTANT shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

EXHIBIT D
City of Pacific Grove
Request for Proposal (RFP)
for
A Comprehensive Fee Study, Development Impact Fees, and/or a Cost Allocation Plan
Issue Date: September 1, 2022
Proposal Due Date: September 30, 2022
Submit responses to:

City of Pacific Grove
Attn: Lori Frati, Management Analyst
300 Forest Avenue
Pacific Grove, California 93950
Email address: [email protected]
City of Pacific Grove

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Pacific Grove City CouncilFebruary 1, 2023

Pacific Grove City Council
February 1, 2023