Agenda packet — Pacific Grove City Council, November 1, 2023 (part 1 of 2)

CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, November 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.

PACIFIC GROVE COUNCIL MEETINGS ARE CONDUCTED IN PERSON AT CITY HALL COUNCIL CHAMBER.

THE PUBLIC MAY GIVE COMMENT FOR THIS MEETING IN PERSON OR BY EMAIL.

NO PUBLIC COMMENTS WILL BE RECEIVED BY ZOOM.

YOU MAY VIEW AND LISTEN TO THE MEETING LIVE VIA ZOOM AT:
https://us02web.zoom.us/j/209579290
To listen telephonically, call any number below:
888 788 0099 US (Toll-free)
877 853 5247 US (Toll-free)
669 900 9128
669 219 2599
Webinar ID: 209 579 290#
If prompted to enter a participant ID, press #
The Public May Also View the Meeting on Peninsula Channel 25.

AGENDA

CALL TO ORDER
PLEDGE OF ALLEGIANCE: Councilmember Amelio

1. APPROVAL OF AGENDA

2. PRESENTATIONS
A. Friends of Perkins Park
Reference: Daniel Gho, Public Works Director/Deputy City Manager Recommended Action: Receive 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
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.

A. Written General Public Comment
Reference: Lydia Matta, Office Assistant
Recommended Action: General Written Comments
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

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

6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business

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. City Council Goals Quarterly Update
Reference: Tori Hannah, Administrative Services Director / City Manager Pro Tempore Recommended Action: Receive the report.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. 2023 CalCities Annual Conference Report
Reference: Nick Smith, Mayor Pro Tem
Recommended Action: Receive 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. Committee Appointments - Clifton, Wooten, and Gorman Reference: Bill Peake, Mayor
Recommended Action: Approve appointments of
· John L. Clifton to Administrative Enforcement Hearing Officers Panel to 1/31/26 · Cathy Wooten to Beautification and Natural Resources Commission to 1/31/26 · Jennifer Gorman to Beautification and Natural Resources Commission to 1/31/26 CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Motion to Approve Interim City Manager Employment Agreement with Robert Perrault Reference: Mayor Bill Peake
Recommended Action: Motion to Approve Interim City Manager Employment Agreement with Robert Perrault or other action as directed by the City Council related to this item.

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
C. City Manager Job Description
Reference: Bill Peake, Mayor
Recommended Action: Direct the City Attorney to prepare a Resolution establishing a City Manager Job Description or alternatively, discuss and take other action related to this item.

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. Recreation Board Meeting Minutes August 26, 2022; October 27, 2022; December 22, 2022; and January 26, 2023
Reference: Katie Clark, Recreation Manager
Recommended Action: Receive 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.

A. Compensation and Benefits for Department Heads and Non-Represented Management and Confidential Group Employees
Reference: Katy Suttorp, Special Council, City Attorney's Office Recommended Action: Approve a resolution approving the salary and benefit enhancements for Department Heads and for the Non-Represented Management and Confidential Group Employees.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
B. Memorandum of Understanding between the City of Pacific Grove and the Management Employees Association (MEA)
Reference: Katy Suttorp
Recommended Action: Approve a resolution approving the Memorandum of Understanding Recommended Action: Approve a resolution approving the Memorandum of Understanding between the City of Pacific Grove and the Management Employees Association to cover the period of July 1, 2023, through June 30, 2026
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

12. UNFINISHED AND ONGOING BUSINESS
A. Introduction of Cannabis Licensing Ordinance and Cannabis Zoning Ordinance Reference: Aaron Campbell, Associate Planner
Recommended Action: 1. Request the City Attorney to read the title of Licensing Ordinance

2. Motion to waive further reading of the ordinance and introduce the Licensing Ordinance

3. Request the City Attorney to read the title of Zoning Ordinance

4. Motion to waive further reading and introduce the Zoning Ordinance

5. Direct that publication of these two ordinances will be satisfied by publication of a summary approved by the City Attorney

6. Other action(s) based on direction by the City Council related to this item CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3) B. Water Conservation Subcommittee Status Report and Recommendation for Quarterly Reporting of the City's Cal-Am Water Use
Reference: Debby Beck, Council Member
Recommended Action:

1. Receive the report.

Direct Staff to return to City Council with a proposal to provide quarterly reports of the City’s Cal-Am potable water use.

2. 3. Alternatively, discuss and take other action related to this item.

CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378
C. Consider an Appeal of Architectural Permit (AP), Use Permit (UP) and Variance (VAR) No. 22-0284, 773-775 Ocean View Blvd, Pacific Grove (APN 006-071-007) Reference: Joseph Sidor, Contract Planner
Recommended Action: Staff recommends the City Council deny the appeal and approve the Architectural Permit, Use Permit, and Variance (AP/UP/VAR 22-0284), subject to the findings, conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities).

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities D. Market and Economic Evaluation Report for the Pacific Grove Golf Links Reference: Tori Hannah, Administrative Services Director/City Manager Pro Tempore Recommended Action: Receive the Market and Economic Evaluation Report for the Pacific Grove Golf Links from Pro Forma Advisors, LLC
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

13. NEW BUSINESS

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. 2 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: November 01, 2023
SUBJECT: Friends of Perkins Park
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive Presentation
Agenda No. 4 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Lydia Matta, Office Assistant
MEETING DATE: November 01, 2023
SUBJECT: Written General Public Comment
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Attachments
Public Comments
Public Comment
Public Comment
Public Comment
Public Comment

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From: Jane Haines [email protected]
Subject: Public Records Act request
Date: November 1, 2023 at 4:09 PM
To: Pacific Grove City Clerk of [email protected] Cc: Lydia Matta [email protected]
Dear Pacific Grove City Clerk,,
This is a Public Records Act request for the following documents in electronic format:

1. A document describing the type of HVAC unit (aka heating, ventilation and air conditioning unit) in current use for the City Council chambers at 300 Forest Avenue.

2. A document describing the number, type and rating of that HVAC units’ MERV filter banks (MERV refers to minimum efficiency reporting value). For example, a MERV rating of 13 means the filter catches up to 90 percent of airborne particles, depending on the particles’ size.

3. A document showing how long the ventilation portion of said HVAC unit operated today (11/1/23) beginning from 5 p.m. until it was turned off.

4. A document showing the date when said HVAC unit was installed.

In advance, thank you for providing the above-described public records.

Jane Haines
831 375-5913
[email protected]
10/29/23 Sixty Minutes - Transcript pg. 1
Indoor air systems “absolutely key” in curbing spread of viruses | 60 Minutes
With COVID an ongoing concern and flu season getting started, aerosol researchers say there needs to be a focus on improving the quality of the air we all breathe while inside.

OCT 29, 2023
With a new strain of COVID on the rise, and flu season just getting started, we thought now would be a good time to consider what the pandemic has taught us about preventing the spread of potentially deadly respiratory infections.

It turns out, viruses like the one that causes COVID-19 can travel through the air much farther than six feet. So public health advice focusing on social distancing, handwashing, and masking wasn't enough. Air quality scientists say, from the start of the pandemic, it also should have focused on improving the air we all breathe ... indoors.

Now, some companies are doing just that – for the health of their workers and the health of their bottom line.

Joe Allen: The original sin of the pandemic was the failure to recognize airborne transmission.

Professor Joe Allen of Harvard's T.H. Chan School of Public Health believes the rapid spread of COVID in early 2020 was preventable.

Joe Allen: Think about the public health gains we've made over the past hundred years. We've made improvements to water quality, outdoor air pollution, our food safety, we've made improvements to sanitation: absolute basics of public health.

Where has indoor air been in that conversation? It's totally forgotten about. And the pandemic showed what a glaring mistake that was.

Dr. Jon LaPook: What do you think was lost because of that lag in understanding of how this was spread?
Joe Allen: Tens of thousands of lives in the U.S., many more globally. It's not an exaggeration.

It's also no exaggeration to say those early days of COVID were unforgettable. In the U.S. by March 2020, the virus began taking its toll in places like the Life Care what the pandemic has taught us
about preventing the spread of potentially deadly respiratory infections. public health advice focusing on social distancing,
handwashing, and masking wasn't enough. Air quality scientists say, from the start of the pandemic, it also should have focused on improving the air we all breathe ... indoors.

Joe Allen: Tens of thousands of lives in the U.S., many more globally. It's not an exaggeration.

It's also no exaggeration to say those early days of COVID were unforgettable. In the U.S. by March 2020, the virus began taking its toll in places like the Life Care 10/29/23 Sixty Minutes - Transcript pg. 2
Center nursing home in Kirkland, Washington. Sixty miles away in Mount Vernon, Washington, the Skagit Valley Chorale held one of its weekly rehearsals in a church. Half the members stayed away. But the other half showed up. Among them were board members Debbie Amos, Mark and Ruth Backlund, and Coizie Bettinger.

Coizie Bettinger: We just thought hand sanitizer, wash your hands a lot, you know, don't hug each other, 'cause that's touch.

None of it was good enough. Within a few days, chorale members began to get sick. In all, COVID hit 53 of the 61 people there that night. Two of them, both in their 80s, died.

Ruth Backlund: We were going, "This-- this has got to be spread some other way." It- -
Dr. Jon LaPook: Really?
Ruth Backlund: Because we were good. We were good.

Dr. Jon LaPook: So COVID was percolating and you thought you were doing everything you were supposed to do?
Marck Backlund: Yes. Debbie Amos: Right.

Dr. LaPook speaks with members of the Skagit Valley Chorale choir 60 MINUTES Skagit County health officials said the rehearsal "could be considered a superspreading event" – one of the earliest in the country – and concluded that choir members had "an intense and prolonged exposure" to surfaces, droplets and possibly even microscopic airborne particles called "aerosols," containing the virus.

That caught the attention of Linsey Marr, a Virginia Tech university professor specializing in aerosol science, and several of her fellow researchers. Even though the medical community was focused on droplets, surfaces and handwashing, these researchers strongly believed COVID was mostly an airborne disease, but needed more proof. So they launched their own analysis.

Linsey Marr: I thought, "Wow. This is even worse than I thought "This has to be airborne. There's really no other explanation for it." Some people are gonna say, "Oh, they all touched the same doorknob." But, after the first few people touch that doorknob, there's no more virus left.

Linsey Marr: That's what happens with our exhaled breath.

In all, COVID hit 53 of the 61 people there that night. Two of them, both in their 80s, died.

Even though
the medical community was focused on droplets, surfaces and handwashing, these researchers strongly believed COVID was mostly an airborne disease, but needed more proof. So they launched their own analysis.
10/29/23 Sixty Minutes - Transcript pg. 3
Professor Marr used a portable fogger to help explain how so many choir members could have gotten sick.

Linsey Marr: When they're singing, they are releasing virus particles into the air constantly, probably, like this. And those are going to drift around in the room.

Notice they're not just falling to the ground. And now as we continue to sing, there's more and more of them in the room. And you can see, as they're drifting around they're reaching these other people nearby. And they were there for two and a half hours. And you can imagine that after that amount of time the other people would've breathed in enough of them to get sick themselves.

Dr. Jon LaPook: Especially if at night the HVAC system was turned off.

Linsey Marr: As far as we know, it wasn't running and so there were very – there was very poor ventilation in that room when this was all happening.

An HVAC unit, short for heating, ventilation and air conditioning, is the heart and lungs of any building. The researchers suspected the thermostat most likely shut off the HVAC unit because the chorale members were generating enough heat on their own.

Dr. Jon LaPook: And right now, there's no ventilation?
Linsey Marr: Very, very low.

Dr. Jon LaPook: OK.

Linsey Marr: And actually, it's similar to what was in the church where the group was rehearsing.

Then, Professor Marr turned up the circulation to show us how better air flow could have helped remove aerosols and slow the spread of virus.

Professor Linsey Marr gives an aerosol demo 60 MINUTES
Linsey Marr: Instead of just drifting all over the room -- Dr. Jon LaPook: Oh...

Linsey Marr: You can actually see it, right, going up through there-- Dr. Jon LaPook:

I sure can. That is dramatic to see that.

The analysis led to one of the most significant papers on the importance of ventilation published during the pandemic. Then, last year, a study in Italy went And they were there for two and a half
hours. And you can imagine that after that amount of time the other people would've breathed in enough of them to get sick themselves.

Dr. Jon LaPook: Especially if at night the HVAC system was turned off.

Linsey Marr: As far as we know, it wasn't running and so there were very – there was very poor ventilation in that room when this was all happening.

An HVAC unit, short for heating, ventilation and air conditioning, is the heart and lungs of any building.
a study in Italy went
10/29/23 Sixty Minutes - Transcript pg. 4
further. It found that by using a school's fans and air ducts to mechanically exchange indoor air with outdoor air five times an hour, the risk of COVID-19 infections decreased by at least 80 percent. But, in the U.S. it took until this past May for the CDC to recommend an air exchange rate at all.

Joe Allen: If you look at the way we design and operate buildings, and I mean offices, schools, local coffee shop, we haven't designed for health. We have bare minimum standards. In schools the minimum air change, by design, is about three air changes per hour. Remember, we want at least four to six.

Dr. Jon LaPook: If we'd had these indoor air quality targets before the pandemic, how do you think the pandemic would have unfolded differently? Joe Allen: We still would have had spread. This isn't an "end-the-pandemic" thing.

We would have had a lot less of it, and we would have a lot less of these superspreading events. Think about the early days of the pandemic, with "flatten the curve"---"stay home." Why wasn't "Improve indoor air quality" part of "flatten the curve"? We had tools to protect ourselves. Masking: great tool, it's a filter. But we ignored the building side of this.

Face mask effectiveness: What science knows now
Buildings are Allen's business. As the founder of Harvard's Healthy Buildings program, he diagnoses problems in air quality systems and comes up with solutions for clients that include CBS's parent company, Paramount, and commercial real-estate companies like Beacon Capital Partners, with buildings like this one in downtown Boston. And, he advised Amazon before these new 22-story towers opened last may in Arlington, Virginia, where he gave us a tour.

Dr. Jon LaPook: What does a state-of-the-art building look like in terms of air? Joe Allen: We see a lot of the elements in this building. You have a dedicated outdoor air system that's delivering air above the minimum requirements. Then it's going through two MERV-13 filter banks, and you have highly filtered air.

MERV stands for minimum efficiency reporting value. A rating of 13 means it catches up to 90 percent of airborne particles... depending on their size... as the first line of defense not just against COVID, but other airborne respiratory viruses like flu and RSV.

Dr. LaPook and Joe Allen look at MERV filters 60 MINUTES found that by using a school's fans and air ducts to mechanically exchange indoor air with outdoor air five times an hour, the risk of COVID-19 infections decreased by at least 80 percent.

In schools the minimum air change, by design, is about three air changes per hour. Remember, we want at least four to six.

Think about the early days of the pandemic, with "flatten the curve"---"stay home." Why wasn't "Improve indoor air quality" part of "flatten the curve"? We had tools to protect ourselves. Masking: great tool, it's a filter. But we ignored the building side of this.
10/29/23 Sixty Minutes - Transcript pg. 5
Joe Allen: This is the part of the building nobody ever sees. But this determines whether or not you're healthy or sick in the building, really, what happens in this space.

At Amazon's new offices, the top floor is a maze of motors, pipes, and air ducts... part of a $2.5 million HVAC system that begins with massive rooftop vents and dampers.

Joe Allen: Right here, this is the whole air handling system. This is where the air comes into the building, it's filtered, it's cooled, and then delivered. This determines how much air actually reaches the office space where people are working, and how clean that air is.

Downstairs, each floor has a sensor that tells building engineers about the quality of the indoor air ... such as levels of carbon dioxide, known as CO2.

Dr. Jon LaPook: We breathe out the carbon dioxide.

Joe Allen: That's right
Dr. Jon LaPook: The less carbon dioxide, the better the ventilation? Joe Allen: Really straightforward. High carbon dioxide means you're not getting enough outdoor air from that system we just looked at. If it's low, you're in good shape. Then we also measure particles. That tells us things about, like, outdoor air pollution.

The entire system can be monitored and controlled from the basement.

Joe Allen: Remember we talked about carbon dioxide is an indicator for ventilation? Well, I can see in this building all of these are under 800 parts per million.

Dr. Jon LaPook: So that's good?
Joe Allen: That's great. And really important: if a lot of people went into a space, the CO2 level would rise, this system would recognize it. The dampers would open up and bring in a lot more outdoor air.

Katie Hughes, Amazon's director of health and safety, pointed to the waves of wildfire smoke that have swept down from Canada as the ultimate test of the indoor air quality system.

Dr. Jon LaPook: Not too long ago, Washington and Virginia were sort of smothered by this smoke coming down from Canada. What happened in this building? This is the part of the building nobody ever sees. But this determines whether or not you're healthy or sick in the building, really, what happens in this space.
10/29/23 Sixty Minutes - Transcript pg. 6
Katie Hughes: You would expect the air quality within the facility to not be great.

Our buildings were performing very well.

Hughes says Amazon has been updating many of its HVAC systems, including in its warehouses.

A recent survey of facility managers in the U.S. and Canada found that since March 2020, roughly two-thirds of respondents have upgraded their MERV filters and increased their air exchange rates. In New York City, JPMorgan Chase says its new headquarters will have state of the art air quality controls. And this new skyscraper called 1 Vanderbilt already runs a modern HVAC system.

Katie Hughes: COVID shifted everybody's mindset in terms of air quality in terms of communicable or infectious diseases.

Dr. Jon LaPook: Are you finding that Amazon is making a business decision partially by saying, "Look, it's okay for you to come back to work, because we're telling you that the air inside this building is safe"? Katie Hughes: I think it's one of many reasons why we expect or would like people back in the office. That is-- a good thing to have, it's probably one of many things.

A well-operating HVAC system is not only good for the health of employees. It can be good for the health of companies, too, especially with people working remotely, leaving many commercial building owners looking for tenants.

Dr. Jon LaPook: There's empty office space, in New York City and elsewhere. How do you think this new thinking might affect that in terms of people even wanting to come to work?
Joe Allen: The dynamic has changed: It's a total buyers' or tenants' market. All else equal, which building are you gonna go to? You have your choice right now: This building that put in healthy building controls, or this building that's designed the way we've always designed buildings, and is prone to being a sick building? Dr. Jon LaPook: So it actually can help the bottom line in addition to, of course, improving health?
Joe Allen: Yeah.

Dr. Jon LaPook: What about retrofitting a building that's old? A well-operating HVAC system is not only good for the health of employees. It can be good for the health of companies, too,
10/29/23 Sixty Minutes - Transcript pg. 7
Joe Allen: I think it's a misconception that old buildings can't be healthy buildings.

Some of these fixes don't take much. Improving the level of filtration? That's easy; it's cheap; protects against COVID-19; influenza; also protects against wildfire smoke and outdoor air pollution; protects against allergens. Simple, absolute basic things that can be done.

The Skagit Valley Chorale rehearsals are now in a different church. 60 MINUTES The Skagit Valley Chorale rehearsals are now in a different church with a new HVAC system. Doors stay open to bring in fresh air, regardless of the season, and there are even portable carbon dioxide monitors to track ventilation.

Debbie Amos: We've been through a traumatic experience. And we've tried to learn from that. And did help the science with the aerosol study. And now, we're moving on in a way that we can still sing-- but in a more safe manner.

Dr. Jon LaPook: Do you worry that when the spotlight of the pandemic starts to fade, that people will forget and that they won't act the way they should, in terms of buildings?
Joe Allen: I'm a bit more optimistic than that. I think there are fundamental shifts that have happened. The scientific and medical literature's being rewritten. The government and standard setting bodies are setting new health-based standards.

Businesses are responding and won't forget what this meant to their employees' health, and their business. So I don't think we're gonna forget these lessons. We better not.

Produced by Andrew Wolff. Associate producer, Tadd J. Lascari. Broadcast associate, Eliza Costas. Edited by Matt Richman.

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I think it's a misconception that old buildings can't be healthy buildings.

I think there are fundamental shifts
that have happened. The scientific and medical literature's being rewritten. The government and standard setting bodies are setting new health-based standards. 10/29/23 Sixty Minutes - Transcript pg. 8
Dr. Jonathan LaPook is the chief medical correspondent for CBS News.

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First published on October 29, 2023 / 7:40 PM EDT © 2023 CBS Interactive Inc. All Rights Reserved.

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Agenda No. 8 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Tori Hannah, Administrative Services Director / City Manager Pro Tempore MEETING DATE: November 01, 2023
SUBJECT: City Council Goals Quarterly Update
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the report.

DISCUSSION
At the April 19, 2023 City Council meeting, the City Council adopted its Areas of Focus, Goals and Milestones for 2023-2025, including a workplan (attached to this agenda report) that details the anticipated delivery dates for the goal milestones by fiscal year quarter. To ensure progress and provide accountability, City staff pledged to provide updates on the progress in accomplishing the workplan on a quarterly basis. This agenda report reflects updates for the following two quarters:

Q4 - Fiscal Year 22/23 (April, May, June)
Q1 - Fiscal Year 23/24 (July, August, September)
Due to staffing transitions, some tasks within the current quarter have been delayed.

If there are updates on future quarter milestones, that information has been incorporated into the attached file. All other future quarter milestones are included within this list; however the entry columns are shaded in gray.

OPTIONS
Not applicable.

FINANCIAL IMPACT:

There is no financial impact in receiving the report.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Community Goals and Workplan - Q1 Fiscal Year 23/24

MANDATE GOALS

PLAN QUARTER OF
COMPLETION (Fiscal
Year)
LEAD

DEPARTMENT
Status
Percent
Complete Additional Notes
NO
Q4 FY22/23 Rec/PW/CMO Q4 - Complete 100%
Ql FY23/24 Rec/PW/CMO Q1 - Complete 100% Q4 - Reported as partial Ql FY23/24 Rec/PW/CMO Q1 - Complete, Ongoing 100% Q4 - Reported as partial NO Expand or reinstate afterschool and recreational
activities, including recreation and sports programs.

Q4 FY22/23 Rec/PW/CMO Q1 - Partially Complete,
Ongoing 50% Q4 - Reported as partial
Ql FY23/24 ASD/Rec Q1 - Partially Complete 40% Consultant retained for the fee study and department interviews conducted.

Ql FY23/24 ASD/Rec Q1 - Partially Complete 40% Consultant retained for the fee study and department interviews have been conducted.

QUARTER Fiscal Year
Ql July-Aug-Sept
Q2 Oct-Nov-Dec
Q3 Jan-Feb-March
Q4 April-May-June
Rec/PW/CMO
/ASD
Q4 FY22/23 Q4 - Complete 100%
PRIORITY AREA: Recreation Services
POLICY VALUE STATEMENT: Pacific Grove offers robust and accessible recreational and cultural activities for all ages.

MILESTONES FOR 2023
Expand hours and services of the Youth Center
Submit comprehensive recreation plan to City Council for expanded services, activities and programs; receive Council input. (Plan components include: recruitment strategy, proposed budget including additional FT and Seasonal PT employee hours, expanded hours of operation for all recreational facilities including the Lighthouse. The plan will also explain the delta between 2019 service offerings to what is proposed.

Recruit and onboard additional Seasonal PTE (current and expanded summer 2023 programming).

Recruit and onboard additional FTE.

Complete implementation of comprehensive recreation plan (that includes expanding hours, activities and services for the community).

Community Goals & Work Plan 2023-25
Same milestones as above.

No
Evaluate fees for use/rental of City facilities (e.g.

Chautauqua Hall, etc.) to incentivize more use by the
community.

Assess facility rental fees and submit new proposed fee schedule to the City Council for consideration.

Implement new fee schedule.

Community Goals & Work Plan 2023-25

MANDATE
GOALS

PLAN QUARTER OF
COMPLETION (Fiscal
Year)
LEAD

DEPARTMENT
Status
Percentage
Complete Notes
Ql FY23/24 Q1 - Initiated Public Works is researching this approach Ql FY23/24
Q3 FY23/24 PW/COO
Q4 FY23/24
PW/CDD
Ql FY24/25
PW/CDD
QUARTER Fiscal Year
Ql July-Aug-Sept
Q2 Oct-Nov-Dec
Q3 Jan-Feb-March
Q4 April-Mav-June
PRIORITY AREA: Infrastructure
POLICY VALUE STATEMENT: Pacific Grove prioritizes capital needs and maintains community assets NO
Complete Streets Policy: Adopt a plan to implement the
design of safe walking paths, sidewalks and bike lanes, including signage.

Retain the services of a qualified firm to assess the City's multi-modal transportation network, including all associated transportation policies and the proposed general plan transportation element, and to draft a Complete Streets Policy and safe routes to school map - specific to the needs of the Pacific Grove community.

Develop and adopt a draft policy and safe routes to school map; shepherd through the Traffic Safety Commission for feedback and public review.

Incorporate policy elements for implementation as a part of subsequent CIP streets infrastructure improvements.

MILESTONES FOR 2023
NO Enhance the process, prioritization, scheduling and
completion of CIP projects.

Select consultant to recommend a new approach for Capital Improvement Program, including the development of asset management schedules, recommended funding and prioritization to address ongoing repair and replacement of City facilities, assets and infrastructure. Select a consultant to develop asset management schedules and recommended funding to address repair and replacement of City facilities, assets and infrastructure as part of defining a new approach to CIP process.

PW/ASD/CMO
Implement recommendations for the development and adoption of a new Capital Improvement Plan. effective July 1, 2024, including a new asset management program.

Community Goals & Work Plan 2023-25

MANDATE GOALS

PLAN QUARTER OF
COMPLETION (Fiscal
Year)
LEAD

DEPARTMENT
Status
Percentage
Complete Additional Notes
Ql FY23/24 PW/CDD Q1 - In Progress 50%
Committee has been formed and meetings
have occurred
Q3
FY23/24
Q2 FY23/24 PW
Q4 FY23/24 PW Q1 - Initiated
Ql
FY 23/24
Q4 FY22/23 CMO/CDD Q1 - Initiated
The review of the procurement process for a
consulting resource is underway
NO Protect Wildlife and Habitat.

Ql FY23/24 CDD/CMO Pending activity list above
Q4 FY23/24 CDD/CMO
Q4 FY22/23 PW Q1 - Initiated
Proposal before City Council at their
November 15th meeting
NO
Review, update and implement George Washington Park
Master Plan.

Ql FY23/24 MFD/PW Q1 - In Progress 95%
CWPP is being finalized and should be ready
for presentation to BNRC and then Council
in November/December
Q2 FY23/24 PW/MFD
QUARTER Fiscal year
Ql July-Aug-Sept
Q2 Oct-Nov-Dec
Q3 Jan-Feb-March
Q4 April-May-June
Plantings already occurring in GWP through
PW in addition to volunteer efforts
Complete comprehensive Title 12 revisions; revisions focus on replanting compliance and tree appeal process; to be reviewed by the BNRC. Ql FY23/24 PW Q1 - Initiated Planning to go to BNRC in November 90% PRIORITY AREA: Environmental Stewardship
POLICY VALUE STATEMENT: Pacific Grove Implements environmentally sustainable practices that protect wildlife and the coastal community.

PD/CMO
Receive and review Monterey Fire Department's Community Wildfire Protection Plan for impact to GWP (harmonize and align).

Implement Council adopted policies for GWP Master Plan in alignment with approved City Council direction.

Train CSOs in wildlife protection.

Draft and issue RFQ for Local Coastal Program (LCP) amendments.

Review and rank RFQ responses: make recommendation for City Council to award contract.

Release a public draft of LCP amendments for review and City Council adoption; submit to California Coastal Commission for LCP Amendment.

Hire a consultant to conduct biological assessment of GWP in order to update and recommend implementation measures of the GWP master plan.

NO
Initiate and complete a Citywide Tree Improvement and
Management Plan (e.g., planting In pubic areas,
sustainable tree maintenance and removal strategies,
review and replacement of non-native plants and
species, etc.).

Complete comprehensive Title 12 revisions; revisions focus on replanting compliance and tree appeal process; to be reviewed City Council.

Plant and maintain (e.g., additional labor) 150 native trees on public property and public right-of-way.

PW/CDD and then City Council for review and adoption.

MILESTONES FOR 2023
NO Initiate and Complete a Climate Action and Adaptation Plan.

Receive recommendations from City Climate Action and Adaptation Plan Subcommittee to authorize funds for a consultant: present to BNRC and then City Council for review and additional input.

Present proposed Climate Action and Adaptation Plan to BNRC PD is working with Dara Sanders
(consultant) and the City Council
Subcommittee on this matter.

Q1 - Initiated
Community Goals & Work Plan 2023-25

MANDATE GOALS

PLAN QUARTER OF
COMPLETION (Fiscal
Year)
LEAD

DEPARTMENT
Status
Percentage
Complete Notes
Q2 FY23/24 Q1 - Initiated 20%
Q3 FY23/24
Q3 FY23/24 Q1 - Complete, Ongoing 100%
The Planning Commission considered the
6 th Cycle Draft Housing Element on October
5 th and 12th, and made the recommendations.

These recommendations were brought to
Council on October 18th.

Q3 FY23/24 Q2 - In Progress 80%
CDD plans to transmit/submit the
revised 6th Cycle Draft Housing Element to
HCD on November 1, 2023. HCD will have 90
days to review the City's draft, and integration
of HCD revisions into the City's draft will
occur in Feb-Mar 2024.

YES Complete Housing Element Update (MANDATED)
Q3 and Q4
FY23/24 and Ql
FY 24/25
Q3 FY23/24
YES Initiate a feasibility and site selection process for the design and construction of an affordable housing project.

Q4
FY23/24 and
beyond
Q4
FY23/24 and
beyond
QUARTER Fiscal Year
Ql July-Aug-Sept
Q2 Oct-Nov-Dec
Q3 Jan-Feb-March
Q4 April-Mav-June
May best be addressed on a case-by-case basis
with the Building, Planning, and Housing
Departments in collaboration as inquiries come
in to CDD.

Integrate HCD revisions into the draft 6th Cycle Housing Element Q3 FY23/24 PRIORITY AREA: Affordable Housing
POLICY VALUE STATEMENT: Pacific Grove supports a diversity of affordable housing opportunities.

CDD
Present findings and staff recommendations to City Council for direction.

Prepare and present draft 6th Cycle Housing Element to the Planning Commission, including DEIR (if necessary).

Submit draft 6th Cycle Housing Element to HCD for comments.

Prepare and present draft 6th Cycle Housing Element to the City Council for final adoption and EIR certification (if necessary).

Prepare 6th Cycle Housing Element draft with Rincon Consultants to determine an inventory of feasible development sites for affordable housing.

Determine outside developers' interest in sites selected in Housing Element to develop affordable housing.

City Council review and consideration of preferred site, including selection of preferred market and/or non-profit developer.

MILESTONES FOR 2023
NO Explore and assess the grandfathering of existing nonconforming ADU's.

Review, audit and conduct field visits for prior second unit report.

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: Nick Smith, Mayor Pro Tem
MEETING DATE: November 01, 2023
SUBJECT: 2023 CalCities Annual Conference Report
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive report.

DISCUSSION
On September 20-22, I attended the 2023 CalCities Annual Conference in Sacramento, California.

During the conference, I attended sessions related to city governance and policy, including the following topics: municipal litigation issues, new state housing laws and mandates, and post-COVID downtown strategies. The sessions covered leading edge issues facing cities statewide.

The CalCities Conference is also a great opportunity to network with other local leaders from our region. To that end, I attended the Monterey Bay Division luncheon along with councilmembers from other Monterey Bay cities.

Lastly, I was appointed as the City’s voting delegate for the CalCities General Assembly; however, no issues were raised for a vote and the General Assembly was not held.

OPTIONS
Not applicable.

FINANCIAL IMPACT:

None.

FOCUSED PRIORITY AREA: Not Applicable.

Agenda No. 9 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: November 01, 2023
SUBJECT: Committee Appointments - Clifton, Wooten, and Gorman CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve appointments of
· John L. Clifton to Administrative Enforcement Hearing Officers Panel to 1/31/26 · Cathy Wooten to Beautification and Natural Resources Commission to 1/31/26 · Jennifer Gorman to Beautification and Natural Resources Commission to 1/31/26

DISCUSSION
These appointments fill vacancies on the respective city committees.

City committees play a vital role in city government and provide opportunities for residents to become engaged in civic activities and work to improve local governance. We are very fortunate to have many highly qualified and talented residents willing to serve on City committees.

The term for appointments is 2 years as these are non-charter committees.

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

OPTIONS
None.

FINANCIAL IMPACT:

There is no fiscal impact to approving these appointments.

GOAL ALIGNMENT: Not Applicable.

Attachments
Redacted John L Clifton Application
Redacted Cathy Wooten Application
Redacted Jennifer Gorman Application

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: Mayor Bill Peake
MEETING DATE: November 01, 2023
SUBJECT: Motion to Approve Interim City Manager Employment Agreement with Robert Perrault
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Motion to approve Interim City Manager Agreement with Robert Perrault or other action as directed by the City Council related to this item.

DISCUSSION
Tori Hannah was appointed as City Manager Pro Tempore effective July 28, 2023 with a term ending upon the appointment of an Interim City Manager.

A subcommittee was formed to recruit for the position of Interim City Manager and for a permanent City Manager which included Mayor Bill Peake, Mayor Pro Tempore Nick Smith and Councilmember Luke Coletti. The City retained the firm of Bob Murray & Associates to assist with these recruitment efforts.

Over 20 applications were received for the Interim City Manager position. The candidate being recommended by the subcommittee for the position of Interim City Manager is Robert Perrault. Robert Perrault was interviewed by Council on October 16, 2023.

Robert has held many positions in City government spanning over a period of the last 40 years including service as a City Manager for the cities of Cloverdale, Colfax and Grover Beach. Robert has also served as an Interim City Manager for the cities of Greenfield and Willits.

The recommendation is for a Motion to approve an Interim City Manager Employment Agreement with Robert Perrault with a start date of November 6, 2023.

OPTIONS
Other action as directed by the City Council.

FINANCIAL IMPACT:

The hourly rate of pay is $103.85 for the Interim City Manager, which is consistent with the approved The hourly rate of pay is $103.85 for the Interim City Manager, which is consistent with the approved salary for the City Manager position based on an annualized salary of $216,008. There will be no benefits paid to or on behalf of the Interim City Manager.

There should be sufficient salary savings within the Fiscal Year 23/24 Budget to support this position.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Interim City Manager Employment Agreement
Public Comment

Page 1 of 7 ends

42863163.2

INTERIM CITY MANAGER

EMPLOYMENT AGREEMENT BETWEEN

THE CITY OF PACIFIC GROVE AND ROBERT PERRAULT
This Interim City Manager Employment Agreement (“Agreement”) is made by and between the City of Pacific Grove (“City”) and Robert Perrault (“Employee”). City and Employee are hereinafter collectively referred to as the “Parties.”

RECITALS
A. On or about July 27, 2023, the City’s former City Manager separated from City employment. During the intervening time period, the City has been without a City Manager, although an individual has been acting in that capacity.

B. The California Public Employees' Pension Reform Act of 2013, Government Code section 7522, et seq., applies to Employee. Employee is a retired member of CalPERS, who had been retired for more than 180 days before accepting employment with the City as a retired annuitant.

C. The City and Employee have the mutual desire to temporarily appoint Employee as Interim City Manager during the recruitment process to hire a full-time City Manager.

D. Under the city council/manager form of government, the City has a critical need to appoint an Interim City Manager during its recruitment process to appoint a new full-time City Manager.

E. Employee has specialized skills to perform the work of the City's Interim City Manager for a limited duration during the pendency of the recruitment process to appoint a new City Manager.

F. Employee hereby certifies that he has not received any unemployment insurance compensation arising out of his prior employment with a CalPERS contracting agency within 12 months of his date of appointment as the City's Interim City Manager.

OPERATIVE PROVISIONS

1. Position and Duties.

1.1 Position. Employee accepts employment with the City as its Interim City Manager and shall perform all functions, duties and services set forth in Section 1.2 of this Agreement. Employee shall provide services at the direction and under the supervision of the City Council. It is the intent of the parties that Employee, as the Interim City Manager, shall keep the City Council fully apprised of all significant ongoing operations of the City. Toward that end, Employee shall report directly to the City Council and will periodically, or as may be otherwise specifically requested by the City Council, provide status reports to the City Council on his activities and those of the City.

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1.2 Duties. Employee shall serve as the Interim City Manager and shall for the Term of the Agreement be vested with the powers, duties and responsibilities of the City Manager as set forth in Resolution 23-024 Interim City Manager Job Description, attached hereto as Attachment A, the terms of which are incorporated herein by reference. Employee shall provide services at the direction and under the supervision of the City Council. It is the intent of the parties that the Interim City Manager shall keep the City Council fully apprised of all significant ongoing operations of the City. Toward that end, Employee shall report directly to the City Council and will periodically, or as maybe otherwise specifically requested by the City Council, provide status reports to the City Council on his activities and those of the City. It is the intent of the City Council for the Interim City Manager to function as the chief executive officer of the City’s organization.

Without additional compensation, Employee shall provide such other services as are customary and appropriate to the position of Interim City Manager, including assisting with the City’s recruitment for a fulltime permanent City Manager, together with such additional services assigned from time to time by the City Council as may be consistent with California law and the Pacific Grove Municipal Code. Employee shall devote his best efforts and attention to the performance of these duties.

1.3 Hours of Work. Employee shall devote the time necessary to adequately perform his duties as Interim City Manager. The parties anticipate that Employee will work a sufficient number of hours per week allocated between regular business hours and hours outside of regular business hours including, without limitation, attendance at regular and special City Council meetings. Toward that end, Employee shall be allowed reasonable flexibility in setting his own office hours, provided the schedule of such hours provides a significant presence at City Hall, reasonable availability to the City Council, City staff, and members of the community during regular City business hours and for the performance of his duties and of City business. Employee may perform work off site as appropriate. For purposes of this Agreement, regular City business hours are 8:00 a.m. to 5:00 p.m. Employee agrees to be reachable by telephone for consultation and advice when he is not physically working in the City. Employee also agrees to respond to the City for emergency situations. However, in no event shall Employee be required to work in excess of 960 hours per fiscal year for the City, including hours Employee may have worked for any other CalPERS Agency prior to his appointment to this position and between July 1, 2023 and the initiation of the Term of this Agreement, as reflected in Section 2.

2. Term. This Agreement shall become effective on November 6, 2023, contingent upon the City Council’s approval of the Agreement. Employee shall commence work on November 6, 2023 (“Commencement Date”), but shall be entitled to work remotely until November 15, 2023, unless the parties hereto agree in writing to a later date. Employee is expected to commence in person work at 8:00 a.m. on November 15, 2023, or such later date as the parties hereto shall agree in writing. This Agreement shall expire as of the first of the following to occur:
(i) upon the employment commencement date of a permanent City Manager employed by the City; (ii) upon Employee working his 960th hour, excluding any hours subject to the provisions of the Executive Orders, in any fiscal year, including hours worked for other CalPERS Agencies during such fiscal year; or (iii) upon termination of the Agreement by either Employee or the City as provided in Section 6 of this Agreement.
/ / /

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42863163.2

3. At-Will. Employee acknowledges that he is an at-will, temporary employee of the City who shall serve at the pleasure of the City Council at all times during the period of his service hereunder. Employee expressly acknowledges and agrees that Section 2.06.020 of the Municipal Code does not apply to his employment and does not confer upon Employee any right to any property interest in continued employment, or any due process right to a hearing before or after a decision by the City Council to terminate his employment. Employee expressly acknowledges and agrees that nothing in this Agreement is intended to, or does, confer upon Employee any right to any property interest in continued employment, or any due process right to a hearing before or after a decision by the City Council to terminate his employment, except as is expressly provided in Section 2 or Section 6 of this Agreement. Nothing contained in this Agreement shall in any way prevent, limit or otherwise interfere with the right of the City to terminate the services of Employee, as provided in Section 2 or Section 6. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from this position with the City, subject only to the provisions set forth in Section 2 or Section 6 of this Agreement. This atwill employment shall be expressly subject to the rights and obligations of the City and Employee, as set forth in Section 2 or Section 6 below.

4. Compensation.

4.1 Rate of Pay. For all services performed by Employee as the Interim City Manager under this Agreement, the City shall pay Employee compensation at an hourly rate of $103.85 based upon an annualized salary of $216,008.00, subject to the limitations provided below in Section 4.2. This salary amount is consistent with the amount reflected on the job description for this position (i.e., Attachment A), as well as the City’s current salary schedule, attached hereto as Attachment B.

4.2 Compliance with CalPERS Requirements. It is the intent of the parties to compensate Employee only to the extent permitted under Government Code Sections 7522.56 and 21221(h), and corresponding CalPERS regulations and policy statements. The rate of pay set forth in Section 3.1 is based on the salary limitations established by CalPERS and is not less than the minimum, nor more than the maximum rate of pay, for the position of City Manager as listed on the City’s publicly available pay schedule, divided by 173.333 to equal an hourly rate. The hourly rate of pay for the position of City Manager is $103.85.

4.2.1 Recordation and Reporting of Hours Worked. Employee will comply with all applicable CalPERS regulations governing employment after retirement, including the recordation and reporting of all hours worked for the City to CalPERS as may be required. The City shall assist in any such reporting obligations to CalPERS. Additionally, Employee shall keep the City continually apprised of any hours worked by Employee for other CalPERS Agencies during the term of this Agreement.

4.2.2. Special Skills. The City attests specifically that Employee has the special skills needed to perform work of limited duration, pursuant to Government Code Sections 7522.56, subsection (c) and 2122(h).
/ / /

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4.3 Benefits. Other than the compensation described in Section 4.1, Employee will receive no other benefits, incentives, compensation in lieu of benefits, or any other form of compensation. Employee understands and agrees that he is not, and will not be, eligible to receive any benefits from the City, including any City group plan for hospital, surgical, or medical insurance, any City retirement program, or any other job benefits available to an employee in the regular service of the City, except for Worker’s Compensation Insurance coverage or similar benefits required by state or federal law. Employee further understands and agrees, in accordance with Government Code Section 21221(h) and related CalPERS regulations and policy statements, that he is not, and will not be, provided or accrue any personal time off, vacation, sick leave, administrative leave, paid holidays or similar leave benefits, unless otherwise required by state or federal law.

5. Reimbursement. The City shall reimburse Employee for authorized, reasonable and necessary travel expenses incurred by Employee in the performance of his duties pursuant to this Agreement. Employee shall document and claim said reimbursement for such travel in the manner and forms required by the City. All reimbursements shall be for actual expenses and shall be subject to and in accordance with California and federal law and the City’s adopted reimbursement policies. Such reimbursements shall not be reported to CalPERS. Other than as specifically provided herein, Employee shall receive no other compensation or reimbursements for expenses incurred by him in performance of this Agreement.

6. Termination of Agreement.

6.1 By City. This Agreement may be terminated by the City for any reason thirty (30) days after providing written notice to Employee of such termination. The City’s only obligation in the event of such termination will be payment to Employee of all compensation then due and owing as set forth in Section 4.1 up to and including the effective date of termination.

However, this Agreement may be terminated immediately if necessitated by changes to CalPERS statutory or regulatory requirements.

6.2 By Employee. This Agreement may be terminated by Employee for any reason thirty (30) days after providing written notice to the City of such termination. The City shall have the option, in its complete discretion, to make Employee’s termination effective at any time prior to the end of such period, provided the City pays Employee all compensation as set forth in Section 3.1 then due and owing him through the last day actually worked.

6.3 No Notice for Expiration. Nothing in this Section 6 shall be construed to require either party to give advance written notice in order for the Agreement to expire as set forth in Section 2.

6.4 Termination Obligations. Employee agrees that all property, including, without limitation, all equipment, tangible Proprietary Information (as defined in Section 8), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by him incident to his employment belongs to the City and shall be returned promptly to the City upon termination of Employee’s employment. Employee’s obligations under this subsection shall survive the termination of his employment and the expiration of this Agreement.

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7. Conflicts of Interest. Employee represents and warrants to the City that he presently has no interest, and represents that he will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or interfere in any way with performance of his services under this Agreement.

8. Proprietary Information. “Proprietary Information” is all information and any idea pertaining in any manner to the business of the City (or any City affiliate), its employees, clients, consultants, or business associates, which was produced by any employee of the City in the course of his/her employment or otherwise produced or acquired by or on behalf of the City.

Proprietary Information shall include, without limitation, trade secrets, product ideas, inventions, processes, formulae, data, know-how, software and other computer programs, copyrightable material, marketing plans, strategies, sales, financial reports, forecasts, and customer lists. All Proprietary Information not generally known outside of the City’s organization, and all Proprietary Information so known only through improper means, shall be deemed “Confidential Information.” During his employment by the City, Employee shall use Proprietary Information, and shall disclose Confidential Information, only for the benefit of the City and as is, or may be, necessary to perform his job responsibilities under this Agreement. Following termination, Employee shall not use any Proprietary Information and shall not disclose any Confidential Information, except with the express written consent of the City. Employee’s obligations under this Section shall survive the termination of his employment and the expiration of this Agreement.

9. Indemnification. Subject to, in accordance with, and to the extent permitted by the California Government Claims Act, Government Code Section 810 et seq., the City will indemnify, defend, and hold Employee harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any act or omission occurring during Employee’s tenure as Interim City Manager, except that this provision shall not apply with respect to any intentional tort or crime committed by Employee, or any actions outside the course and scope of his employment as Interim City Manager.

10. General Provisions.

10.1 Entire Agreement. This Agreement contains the final, complete and exclusive agreement and understanding between the parties. Any amendment, modifications or variations from the terms of this agreement shall be in writing and shall be effective only upon approval of such amendment, modification or variation by the City Council and Employee.

10.2 Interpretation. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. This Agreement may be altered, amended or modified only by an instrument in writing, executed by the parties to this Agreement and by no other means. Each party waives their future right to claim, contest or assert that this Agreement was modified, cancelled superseded or changed by any oral agreement, course of conduct, waiver or estoppel.

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10.3 Severability. The terms of this Agreement are contractual and not a mere recital. Should any provision or part of any provision or application thereof be held invalid, the invalidity shall not affect any other provisions or applications of the Agreement which can be given effect without the invalid provision or application, and to this end, the provisions of this Agreement are declared to be severable.

10.4 Attorneys’ Fees. In any legal action, arbitration, or other proceeding brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs.

10.5 Governing Law. This Agreement, and the rights and obligations of the parties, shall be construed and enforced in accordance with the laws of the State of California.

Venue shall be in the Monterey County Superior Court.

10.6 Amendment. This Agreement may not be amended except in a written document signed by Employee, approved by the City Council and signed by the City’s Mayor.

10.7 Acknowledgment. Employee acknowledges that he has had the opportunity to consult legal counsel in regard to this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in this Agreement.

10.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute together one and the same instrument.

10.9 Electronic Signatures. The parties may execute this Agreement by electronic signature, subject to the terms and conditions set forth in Government Code section

16.5. [SIGNATURES TO FOLLOW]

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42863163.2
ON BEHALF OF THE CITY:
_____________________________ _____________________
Mayor Bill Peake Date
EMPLOYEE:
_____________________________ _____________________
Name: Date
APPROVED AS TO FORM:
_____________________________ _____________________
Name: Jenica Maldonado Date
Special Counsel
Atkinson Andelson Loya Ruud & Romo

ATTACHMENT A
1 RESOLUTION NO. 23-024

RESOLUTION APPROVING INTERIM CITY MANAGER JOB DESCRIPTION

FINDINGS

1. Currently no Interim City Manager Job Description exists.

2. An Interim City Manager fills the vacant City Manager position while City Manager recruitment activities are underway.

3. The Interim City Manager job description is attached as Exhibit A to this Resolution.

4. The Interim City Manager job description is modeled after a City Manager job description.

5. The key distinction for an Interim City Manager is the requirement of considerable city management experience. Thus, the requirement of a minimum of 15 years of increasing responsibility in an administrative or managerial capacity in a municipal organization.

6. At the Special Meeting of the City Council on August 30, 2023, the City Council gave direction to the City Attorney to return to the City Council with a Resolution approving the Interim City Manager job description.

7. An Interim City Manager who is a CalPERS retired annuitant is limited to 960 hours (equivalent to 24 weeks) of employment per fiscal year (Government Code sections 7522.56 and 21221(h)). This amount of time should be sufficient to fill the permanent City Manager position.

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

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

2. The Interim City Manager Job Description attached to this Resolution as Exhibit A is incorporated herein by reference and is hereby approved.

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

DocuSign Envelope ID: 65BE7F97-ED6E-4CE3-BB3B-E9463990C546 2 PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 6th day of September, 2023 by the following vote:

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

NOES: None.

ABSENT: None.

APPROVED:
_______________________________
BILL PEAKE, Mayor
ATTEST:

DATED:_______________________
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
BRIAN A. PIERIK, City Attorney
DocuSign Envelope ID: 65BE7F97-ED6E-4CE3-BB3B-E9463990C546 9/11/2023
1 EXHIBIT A
Interim City Manager Job Description
SUMMARY:

To plan, organize, and direct the overall administrative activities and operations of the City. To advise and implement City Council goals and policies. To perform all duties as specified by the City Charter.

Per Article 19 of the City Charter, the powers and duties of the City Manager shall be:
• To see that all ordinances are enforced.
• To appoint all heads of departments, subordinate officials, and employees, and remove the same, and have general supervision and control over the same. • To exercise general supervision over all privately owned public utilities operating within the City so far as the same are subject to municipal control. • To see that the provisions of all franchises, leases, contracts, permits and privileges granted by the City are fully observed and to report to the Council any violations thereof. • To act as purchasing agent for the City. The City Manager shall know the exact condition of the treasury at all times and shall approve all demands before the same have been allowed by the Council if the City Manager is satisfied that the money is lawfully due. • To attend all meetings of the Council unless excused therefrom by three members thereof or by the Mayor.
• To examine, or cause to be examined, without notice, the conduct, or the official account and records, of any officer or employee of the City.
• To keep the Council advised as to the needs of the City. • To have supervision over all City property, including public buildings, parks, and playgrounds.
• To appoint such advisory boards as the City Manager may deem desirable to advise and assist the City Manager provided the members of such boards shall receive no compensation.
• To cause a quarterly statement of all funds in the treasury to be submitted to the Council.

Such statements shall be submitted not later than the first meeting in November, February, May, and August.
• To assume general control of the City government and all of its branches in case of riot, insurrection or extraordinary emergency, and to be responsible for the suppression of disorders and the restoration of normal conditions.

ADDITIONAL ESSENTIAL FUNCTIONS:

Additional duties may specifically include, but are not limited to, the following:
• Direct and participate in the development and implementation of all City goals, objectives, policies, and procedures;
• Direct the preparation of plans and specifications for work specified by City Council; DocuSign Envelope ID: 65BE7F97-ED6E-4CE3-BB3B-E9463990C546 2 • Interpret, analyze, and explain policies, procedures and programs to staff and public as appropriate;
• Confer with residents, taxpayers, businesses, and other individuals, groups and outside agencies having an interest or potential interest in affairs of City concern; • Respond to public feedback on city operations including requests for information; • Represent the City in the community and at professional meetings as required; • Coordinate City activities with other governmental agencies and outside organizations; MINIMUM QUALIFICATIONS:

Any combination equivalent to experience and education that provides required knowledge and abilities described below.

Education: Equivalent to a bachelor’s degree from an accredited college or university with major course work in public or business administration or a closely related field. A master’s degree is desirable.

Experience: A minimum of 15 years of increasing responsibility in an administrative or managerial capacity in a municipal organization including as a city manager, assistant city manager or department head in a California community of similar size and complexity to Pacific Grove.

KNOWLEDGE AND SKILLS:

Knowledge of:
• Modern municipal management methods and procedures, organizations, and functions; Principles of public and business administration including public finance, personnel administration, and community and economic development; • Current social, political, and economic trends and operating problems of municipal government;
• Applicable federal and state laws, rules, and regulations regarding local government, land use and zoning regulations;
• Principles of effective public relations and interrelationships with elected and appointed city officials, community groups and agencies, private businesses and firms, and other levels of government.

Ability to:
• Work collaboratively with the City Council.
• Provide effective leadership and coordinate the activities of a large, full service, municipal organization;
• Facilitate teambuilding among City Staff and City Council; • Analyze, interpret, summarize, and present administrative and technical information and data in an effective manner;
• Take direction from and serve effectively as the administrative agent of the City Council; DocuSign Envelope ID: 65BE7F97-ED6E-4CE3-BB3B-E9463990C546 3 • Select, supervise, train, mentor, and evaluate staff.

CONDITIONS OF EMPLOYMENT:
• Take an Oath of Office
• Must be willing to work varied hours, as well as attend evening or weekend meetings and community events, as appropriate
DocuSign Envelope ID: 65BE7F97-ED6E-4CE3-BB3B-E9463990C546

ATTACHMENT B
Ordinance No. 22-011
City of Pacific Grove
Proposed Salary Schedule - Hourly Rate
Full-time and Part-time
Revised: August 3, 2022
Effective Date:July 24, 2022
Hourly Salary Steps
Step Step Step Step Step Step Step Step
1A 2B 3C 4D 5E 6F 7G 8H
124-001 Accountant 32.78 34.42 36.15 37.95 39.85 40.85 41.87 42.91 219-000 Accountant, Chief 39.20 41.15 43.21 45.37 47.64 49.43 51.28 218-003 Accountant, Senior 35.91 37.70 39.59 41.57 43.65 45.28 46.98 120-001 Accounting Assistant 25.88 27.17 28.53 29.96 31.45 32.24 33.05 33.87 125-01 Accounting Assistant, Senior 27.51 28.89 30.33 31.85 33.44 34.28 35.14 36.01 304-001 Administrative Services Director (ASD) 65.62 68.90 72.35 75.97 79.77 83.75 87.94 302-001 ASD/ Assistant City Manager 73.94 77.64 81.52 85.59 89.87 94.37 99.09 212-000 Administrative Services Manager 52.58 55.21 57.97 60.87 63.92 67.11 70.47 170-000 Administrative Technician 33.08 34.73 36.47 38.29 40.21 41.21 42.25 43.30 505-001 Animal Control Officer 26.12 27.43 28.80 30.24 31.75 32.94 34.17 168-004 Arborist 40.52 42.54 44.67 46.90 49.25 50.48 51.74 53.03 216-002 Assistant Finance Manager 35.81 37.60 39.48 41.45 43.52 45.16 46.85 090-000 Cashier 15.45 16.22 17.03 17.88 18.78
243-001 City Clerk 53.67 56.35 59.17 62.13 65.23 68.50 71.92 TBD City Clerk/DEI Coordinator 56.35 59.17 62.13 65.24 68.50 71.92 75.52 002-000 City Council Member 420 per month
301-001 City Manager 103.85
164-002 Code Compliance Officer 33.52 35.19 36.95 38.80 40.74 41.76 42.80 43.87 205-000 Community Development Director 63.62 66.80 70.14 73.65 77.33 81.20 85.26 507-001 Community Service Officer 26.68 28.01 29.41 30.88 32.43 33.64 34.91 209-000 Construction Project Manager 38.61 40.54 42.57 44.70 46.94 48.70 50.52 40-000 Custodian 17.13 17.98 18.88 19.83 20.82
204-001 Deputy City Clerk 32.31 33.93 35.62 37.40 39.27 41.24 43.30 305-001 Deputy City Manager 62.75 65.89 69.19 72.64 76.28 80.09 84.10 102-000 Engineering Technician 32.74 34.38 36.10 37.90 39.80 40.79 41.81 42.86 156-001 Equipment Mechanic 32.92 34.56 36.29 38.10 40.01 41.01 42.04 43.09 157-000 Equipment Mechanic, Senior 35.04 36.79 38.63 40.56 42.59 43.65 44.74 45.86 256-000 Finance Director 63.62 66.80 70.14 73.65 77.33 81.20 85.26 208-001 Financial Analyst 31.09 32.65 34.28 35.99 37.79 39.21 40.68 71-001 Housing Rehab Inspector 23.35 24.52 25.75 27.04 28.39 310-001 Human Resources Director 63.62 66.80 70.14 73.65 77.33 81.20 85.26 210-001 Human Resources Manager 47.03 49.38 51.85 54.44 57.17 60.02 63.03 105-001 IT Support Specialist 26.00 27.30 28.66 30.10 31.60 32.39 33.20 34.03 64-000 Intern 15.45 16.22 17.03 17.88 18.78
64-3 Intern II 20.76 21.80 22.89 24.03 25.24
208-002 Librarian 31.09 32.65 34.28 35.99 37.79 39.21 40.68 122-001 Library Assistant 24.00 25.20 26.46 27.79 29.18 29.91 30.65 31.42 144-002 Library Assistant, Senior 25.73 27.02 28.37 29.79 31.28 32.06 32.86 33.68 199-000 Library Clerk 18.03 18.93 19.88 20.87 21.92
219-000 Library Director 63.62 66.80 70.14 73.65 77.33 81.20 85.26 50-004 Lighthouse Docent Coordinator 15.45 16.22 17.03 17.88 18.78 154-000 Maintenance Supervisor 34.98 36.73 38.57 40.49 42.52 43.58 44.67 45.79 153-000 Maintenance Tech/Safety Coord 34.98 36.73 38.57 40.49 42.52 43.58 44.67 45.79 132-000 Maintenance Worker 27.92 29.31 30.78 32.32 33.93 34.78 35.65 36.54 146-001 Maintenance Worker, Senior 31.32 32.89 34.53 36.26 38.07 39.02 40.00 41.00 208-003 Management Analyst 34.80 36.54 38.36 40.28 42.29 43.88 45.53 001-000 Mayor 700 per month
Code Classification
1 Ordinance No. 22-011
City of Pacific Grove
Proposed Salary Schedule - Hourly Rate
Full-time and Part-time
Revised: August 3, 2022
Effective Date:July 24, 2022
Hourly Salary Steps
Step Step Step Step Step Step Step Step
1A 2B 3C 4D 5E 6F 7G 8H Code Classification
104-001 Office Assistant 22.31 23.42 24.60 25.83 27.12 27.79 28.49 29.20 506-001 Parking Enforcement Officer 25.10 26.35 27.67 29.05 30.51 31.65 32.84 165-001 Planner, Assistant 34.08 35.78 37.57 39.45 41.42 42.45 43.52 44.60 168-002 Planner, Associate 37.87 39.76 41.75 43.84 46.03 47.18 48.36 49.57 241-002 Planner, Principal 44.88 47.12 49.48 51.95 54.55 56.60 58.72 169-001 Planner, Senior 42.88 45.03 47.28 49.64 52.12 53.43 54.76 56.13 201-000 Police Adm. Services Manager (ASM) 52.59 55.22 57.98 60.87 63.92 67.11 70.47 211-001 Police ASM/Public Information Officer 55.21 57.97 60.87 63.92 67.11 70.47 73.99 602-001 Police Chief 73.03 76.68 80.52 84.54 88.77 93.21 97.87 601-001 Police Commander 58.65 61.59 64.66 67.90 71.29 74.86 78.60 516-001 Police Officer 44.10 46.31 48.62 51.06 53.61 55.62 57.70 513-000 Police Officer Recruit 24.94 26.19 27.50 28.87 30.32 31.46 32.64 521-002 Police Records Supervisor 30.28 31.79 33.38 35.05 36.80 38.18 39.61 524-001 Police Sergeant 50.96 53.50 56.18 58.99 61.94 64.26 66.67 508-001 Police Services Technician 26.68 28.01 29.41 30.88 32.43 33.64 34.91 62-001 Pre School Manager 19.30 20.27 21.28 22.35 23.46 219-001 Program Manager 42.63 44.76 47.00 49.35 51.82 53.76 55.77 206-000 Program Manager, Senior 52.58 55.21 57.97 60.87 63.92 67.11 70.47 207-000 Public Works (PW) Director 63.62 66.80 70.14 73.65 77.33 81.20 85.26 303-001 PW Director/ Deputy City Manager 70.99 74.54 78.26 82.18 86.29 90.60 95.13 220-002 Public Works Superintendent 46.34 48.66 51.09 53.65 56.33 58.44 60.64 10-001 Recreation Assistant I 15.45 16.22 17.03 17.88 18.78 51-001 Recreation Assistant II 16.82 17.66 18.54 19.47 20.45 118-001 Recreation Coordinator 24.52 25.75 27.03 28.38 29.80 30.55 31.31 32.10 217-003 Recreation Coordinator, Senior 38.29 40.21 42.22 44.33 46.54 48.29 50.10 62-002 Recreation Program Supervisor 22.08 23.19 24.35 25.56 26.84 216-003 Risk Manager 35.80 37.59 39.47 41.45 43.52 45.15 46.84 209-000 Senior Librarian 35.98 37.78 39.67 41.66 43.74 45.38 47.08 170-001 Volunteer Coordinator 27.13 28.48 29.91 31.40 32.97 33.80 34.64 35.51 Classification
203 Extra Help Retired Annuitant
Hourly Salary Range

15.50 - 106.96
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CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: November 01, 2023
SUBJECT: City Manager Job Description
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Direct the City Attorney to prepare a Resolution establishing a City Manager Job Description or alternatively, discuss and take other action related to this item.

DISCUSSION
A City Manager job description does not currently exist.

A City Manager job description is valuable for recruitment and performance evaluation (see Council Policy 000-27).

City Manager recruitment activities are underway.

A City Manager job description should be approved by City Council.

The proposed City Manager job description (attached) is modeled after the Interim City Manager job description contained in Council Resolution 23-024.

The difference in job descriptions is the City Manager minimum qualification of 10 years of increasing responsibility in an administrative or managerial capacity in a municipal organization (Interim City Manager requirement is 15 years).

OPTIONS
None.

FINANCIAL IMPACT:

None.

GOAL ALIGNMENT: Not Applicable.

Attachments
City Manager Job Description

ATTACHMENT
City Manager Job Description
SUMMARY:

ADDITIONAL ESSENTIAL FUNCTIONS:

Additional duties may specifically include, but are not limited to, the following:
• Direct and participate in the development and implementation of all City goals, objectives, policies, and procedures;
• Direct the preparation of plans and specifications for work specified by City Council; • Interpret, analyze, and explain policies, procedures and programs to staff and public as appropriate;
• Confer with residents, taxpayers, businesses, and other individuals, groups and outside agencies having an interest or potential interest in affairs of City concern; • Respond to public feedback on city operations including requests for information; • Represent the City in the community and at professional meetings as required; • Coordinate City activities with other governmental agencies and outside organizations; MINIMUM QUALIFICATIONS:

Any combination equivalent to experience and education that provides required knowledge and abilities described below.

Education: Equivalent to a Bachelor's degree from an accredited college or university with major course work in public or business administration or a closely related field. A Master's degree is desirable.

Experience: A minimum of 10 years of increasing responsibility in an administrative or managerial capacity in a municipal organization including as a city manager, assistant city manager or department head in a California community of similar size and complexity to Pacific Grove.

KNOWLEDGE AND SKILLS:

Ability to:
• Work collaboratively with the City Council.
• Provide effective leadership and coordinate the activities of a large, full service, municipal organization;
• Facilitate teambuilding among City Staff and City Council; • Analyze, interpret, summarize, and present administrative and technical information and data in an effective manner;
• Take direction from and serve effectively as the administrative agent of the City Council; • Select, supervise, train, mentor, and evaluate staff.

CONDITIONS OF EMPLOYMENT:
• Take an Oath of Office
• Must be willing to work varied hours, as well as attend evening or weekend meetings and community events, as appropriate
Agenda No. 10 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Katie Clark, Recreation Program Manager
MEETING DATE: November 01, 2023
SUBJECT: Recreation Board Meeting Minutes August 26, 2022; October 27, 2022; December 22, 2022; and January 26, 2023
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive minutes.

Attachments
Recreation Board Meeting Minutes August 26, 2022
Recreation Board Meeting Minutes October 27, 2022
Recreation Board Meeting Minutes December 22, 2022
Recreation Board Meeting Minutes January 26, 2023
CALL TO ORDER – The meeting was called to order at 6:01 pm.

1. ROLL CALL –Jay Tulley, Chair; Elliot Hazen; Daryl Smith; Colleen Goldsmith; Charles Gibson Also present: Katie Clark, Recreation Manager; Dan Gho, PW Director; Amy Tomlinson, City Council Liaison.

2. Approval of Agenda: Approved 5-0-0

3. Board and Staff Announcements: Goldsmith thanked PW for assistance with the Legends of the Autobahn event on behalf of the Audi Club organizers; Legends’ organizers were very pleased to be able to hold event in PG and hope to be invited back 2023; they acknowledged that set up could be improved to minimize inconvenience and disruption to residents nearby the golf course. Gibson inquired about remaining ARPA funds designation which Tulley suggested be added to next agenda.

Clark noted that fall programming for rec programs will commence; full recruitment for a 30 hour per week Recreation Coordinator has been launched.

4. Council Liaison Comments: Amy Tomlinson thanked PW for pet parade, auto events and swimming pool weekend access; noted a candidate forum is scheduled for 9/20/2022.

5. General Public Comments: none

6. Approval of Minutes: not available; will be approved September meeting.

7. Regular Agenda:

A. Skatepark Site Assessment: presentation by PW Director Gho (see agenda report) that project entails several steps---with first step of determining suitable location for skatepark.

Top ranked park is GWP, within the recreation zone of the park, which offers access and amenities. Forest Lodge location ranked low because site is not city owned property and challenges include land use rules for school districts; city may have to purchase land.

Calendonia and Berwick sites ranked low on several measures, while Arnett Park has traffic and parking challenges. Next steps include site assessment and public outreach, using money allocated by city council, for determining scope of project and retaining engineer.

With secured funding, CEQA review would be initiated and process expected to take 9 mos to one year. Public would have ample opportunity to weigh in and comment. Recommenda- tion: proceed with GWP as the skatepark location; consider Forest Lodge as secondary site; remove Caledonia, Berwick and Arnett from consideration.

Commission Comments: Gibson noted that while report states 25 trees might be removed from GWP, sub-committee feels number of trees removed would be less; Hazen suggested that Arnett location be kept on list. Gho said that is up to board to determine.

Public Comment: written emails against GWP location: Jane Flury, Sharon Nelson, Claudia Verneisel, Lori McDonnell, Jennifer Gorman, Audubon Society, Cathy Wooten, Jan Loomis, Lisa Ciani. Comments generally supportive of PG skatepark, though comments on location were varied: Kelsea Richmond, Holly Dow; Janna Dreisbach, Ginger Root, Andrew Grant, Elise Grant, Sarah Boyle, Claudia Sammis.

Other Emails: Tess Kenny re press; Tony Ciani re EIR, Gina Puccinelli (2) re dog park; Anna Torrea/KION.

Public Comment: positive comments re PG skatepark and/or GWP location: Theresa Burnham, Justin Noren, Colleen Ingram, Christie Thomas, Dick Paquette, Dan Valentine, Stephen Thompson, Kelsea Richmond, Holly Dow, Manny, Jack Camp, Emily Haselbauer, Deaven Keller, Tiffany, Sarah Boyle, Socorro, Nicole Reik, Lauren W. Comments generally supportive of PG skatepark and/or another location: Thom Akeman, Patrick, Rebecca Lee, Kavitha Venkate, Kim Akeman, Vicki Pearse, Lisa Ciani, Amanda Preece, Lori McDonnell, Cari Rotoli, Atticus Rotoli, Inge Lorentzen-Daumer, Melissa & Chris Wooley, Alex White, Tony Ciani, Dave Lugo, Lucy Moore, Kari, and Paul Walkingstick.

Commission Comment: Goldsmith noted that commission received 23 written comments; thinks that final selection of skatepark location is key to success of this project; Smith noted public support of project and would like to see city support residents; Gibson optimistic about skatepark and board is listening to the public about urban forest and recreation; does not support removal of 25 trees at GWP; necessary to hear from PGPD and PW; skatepark will not be a lighted facility as council concerns about the cost. Tulley expressed interest in markers to indicate size; Hazen commented about Monterey skatepark; noted that 10k size is adequate for multiple uses like BMX biking and skating. PW Director Gho stated that until there is “actual design” for skatepark, there would be no markers due to unknown design details. Tulley inquired about other sites like Jewell Park. Gibson noted that sub- committee began with parks large enough for a skatepark, with consideration of environmental impact (such as coastal zone locations). Tulley responded that philosophically, the concept to develop and build in sites that are in need of repair, not the most beautiful sites, should be considered. Arnett and Forest Lodge sites are presently sites that are not attractive and are in need of repair. Also noted that public outreach is critical so that resi- dents do not feel blindsided by skatepark proposal. Tulley questioned the way the scoring matrix was scored. There were questions that were very subjective that were scored in a questionable way. And there were questions that needed more data to provide evidence of the scoring. The template was provided by skatepark organization---is matrix in line with community values? Further, he stated that Arnett has alternative areas in park for skatepark (without removing handicap parking). The ballpark is not utilized much by Pony League.

Gibson made motion to approve recommendations by staff and recommend to City Council:
proceed with GWP as the desired skatepark development site and with the next step including public outreach; consider Forest Lodge Rd. as a secondary site; proceed with discussions with the school district; and remove Caledonia, Arnett and Berwick parks from consideration due to infeasibility. In discussion, Tulley modified motion to: remove first item GWP approval; initiate outreach before additional action is taken; and keep Arnett as a site under consideration. Motion failed with lack of second.

After much discussion about wording, motion made by Hazen, with second by Smith, to recommend following: proceed with GWP as primary park location for public outreach, and Arnett Park as secondary location, also included in public outreach; simultaneously initiate discussions with PGUSD regarding Forest Lodge as secondary location; and remove Caledonia and Berwick Parks from consideration due to infeasibility. Motion passed 4-0-1. Tulley voted against motion.

B. Hybrid model for Rec Board Meetings: Clark presented information that hybrid meetings can be held in city council chambers with online participation. At least one board member must be present in council chambers. Alternately, continue with online meetings only through December.

Public Comment: Tony Ciani supports hybrid meeting model; Inge Lorentzen Daumer: also supportive of hybrid model.

Commission Comment: Smith supports hybrid; Tulley supports hybrid model; Hazen reiter- ated that one commissioner be present. Clark said that is best practices.

Motion by Smith, Tulley seconded, that rec board meetings be hybrid. Passed 5-0-0.

Next meeting scheduled for September 22nd at 6 pm in PG Council Chamber Meeting adjourned at 9:30 pm.

Submitted by:

Colleen Goldsmith, Secretary

1. CALL TO ORDER – The meeting was called to order at 6:01 pm. on October 27, 2022 ROLL CALL – Jay Tulley, Chair; Daryl Smith; Colleen Goldsmith; Elliot Hazen. Absent: Charlie Gibson. Also present: PW: Dan Gho; PW Manager: Katie Clark; PG City Council: Amy Tomlinson

2. Approval of Agenda: Approved 4-0-1

3. Board and Staff Announcements: PW Director Gho noted survey re skate park; Rec Manager Clark announced rec winter break programs; Commissioner Hazen thanked public for emails regarding skate park and pickleball
.4. Council Liaison Comments: Council Person Tomlinson announced Trick or Treat Halloween Event; Veteran’s Day at Lovers Point; Big Sur Half Marathon; Holiday Tree Lighting and the Parade of Lights; and Stillwell’s Holiday Fun in the Park

5. General Public Comments:

A. Written Communication: emails re skate park: Steve O’Bier; Maureen Mason/Rick Parsons; Linda & Dave Wilsey; Eileen Catbagan (2); Jodi Stiles; Kristen Sells; Christie Thomas; Victoria Hutchins; Sonya Wong; Shelly Antonali/Darrin Tinsley; Ken Haulsee; Marc & Lisa Schonbrun; Valerie Anderson; Danilo Oxford; Melody Usher; Tom Jensen; M.

Ishizuka; Jennifer Gorman; Katherine Ishizuka; Patricia Ishizuka; Teresa Gall; Jeffrey Lewis; James Atherton (2); Jon Usher; Nan Sherburne; Deidre Bradford; Dianne Busse; Pat Martin; John Keiser & Tomi Wilson Keiser; Patrick V. Brown. Emails re pickleball: Christie Thomas (3). Emails re GWP Forest Management Plan: Christine Walkingstick (2); Robert Gorman; Jennifer Gorman; Eileen Catbagan; Paul Walkingstick. Emails re stolen signs:

Ginny Stebbins; Christine Walkingstick; Paul Walkingstick. Emails re canceled September Rec Board meeting: Christie Thomas; Dan Gho. Emails re minutes: Christine Walkingstick; Jennifer Gorman; Lisa Ciani
B. Oral Communication: Rebecca Lee regarding PGUSD parcel as skate park location; Christie Thomas request for pickleball play time increase; Betsy Thomas regarding pickleball hours of play; Jennifer Gorman comment critical of skate park sub-committee recommendations regarding size and scope of skate park project

6. Approval of Minutes:

Approval of July minutes passed 4-0-1
Approval of August minutes with edit using language suggested by Chair Tulley passed 4-0-1

7. Regular Agenda:

A. AARPA and CIP Projects: see agenda report. Dan Gho reviewed items identified at the July Rec Board Meeting that were discussed and approved including: $50,000 allocated by City Council for parks inventory for storm drainage at Arnett; picnic tables; gazebo repair Elmarie Dyke Park; playground bark all playground areas; recycle cans at Lovers Point; DG at Hayward Park. City Council has allocated $25,000 for backstop and $25,000 for young children’s playground equipment; city is awaiting final approvals and additional grant funding before commencement of projects.

Public Comment: Rebecca Lee commented on the piles of wood chips in GWP Commissioner Comment: Commissioner Goldsmith inquired about the delay in seeking additional grant funding for playground equipment. Chair Tulley commented on article in Herald regarding community support/improvements to city parks. PW Gho suggested that Amy Colony be contacted for assistance in recruiting volunteers for GWP.

B. Request for Staffing at the Youth Center: see agenda report. Chair Tulley requested that hiring commence for the Youth Center to be reopened again, after being closed down in March 2020. Further recommended that PG parents be allowed to assist as volunteers to ensure that Youth Center can remain open.

Public Comment: Rebecca Lee supported the request and inquired about letting the public know about specific Youth Center activities.

Commissioner Comments: Commissioner Hazen supportive of reopening Youth Center.

Commissioner Goldsmith inquired about the existing funding for staffing at Youth Center that remains in rec budget. Rec Manager Clark confirmed funding and stated that Youth Center would not reopen until January 2023 with 20 weeks of staffing. Chair Tulley inquired about the Jt. Use Agreement with PGUSD and the City, and if Rec Manager Clark could prioritize; also, whether the WAVE program could be of assistance. Commissioner Smith confirmed WAVE program assistance, explaining that WAVE has 6 years of access to PG families and possible volunteers for staffing. Commissioner Hazen would like city staff to expedite the process for opening the Youth Center. Motion by Hazen to open Youth Center 5 days a week during the academic school year, with recommendation that staff expedite the process. Motion passed 4-0-1.

8. Next Meeting scheduled Thursday, November 17, 2022 at 6 pm Meeting adjourned at 6:55 pm.

Submitted by Colleen Goldsmith

1. CALL TO ORDER – The meeting was called to order at 6:01 pm. on 12/22/2022 ROLL CALL: Jay Tulley, Chair; Charlie Gibson; Elliot Hazen; Colleen Goldsmith. Absent: Darryl Smith. Also present: Public Works Director: Dan Gho; Recreation Manager: Katie Clark. Council Liaison: Nick Smith

2. Approval of Agenda: Approved 4-0-0.

3. Board and Staff Announcements: Chair Tulley noted that 12/23 is last day to take skate- park survey. Hazen requested January agenda include what upgrades needed at each of the potential skatepark sites. Staff Announcements: Katie Clark provided report of Rec program activities including: funding of $158k for skatepark and identification of 3 possible locations; dance group congratulations; city tree lighting event; and hire of new recreation coordinator.

4. Council Liaison Comments: New Liaison Nick Smith reported return to Rec Board and eager to work with commission.

5. General Public Comments: no Oral Comments.

Written Communication: emails re pickleball: Christie Thomas (2), Dan Gho response, Betty Pribula; emails re CEQA: Paul Walkingstick; emails re skatepark: David Wittrock, Lauren Michelle Brown; email re skatepark survey: Lance Wright; email re rec board meeting schedule and PG bike park: Peter Berridge (2)

6. Approval of Minutes: Approved 4-0-0 for 10/27/2022 minutes

7. Regular Agenda:

A. General Update: Clark provided update report (see agenda Department Update) which included the following: Youth Center staffing; backstop replacement project; and ARPA fund projects of picnic tables, gazebo at Elmarie Dyke Park, and Arnett storm drain. No general public comments. Commission Comments: Chair Tulley noted that WAVE program was asked to provide free services for Y.C. instead of contracted reim- bursement. Goldsmith expressed disappointment with delays in posting staffing employment opportunities for Y.C which will delay opening. Hazen requested prioriti- zing Y.C. and Chair Tulley seconded disappointment with the delays. PW Gho stated that Y.C. could reopen mid to late February, but is dependent on labor pool. Clark added job reqs can be posted on college employment boards. PW Gho stated that city is closer to getting per capita grants and can then issue RFPs and commission will be updated at January Rec Board meeting. Chair Tulley asked whether additional funding will be for pre-schoolers (playground) or could it be used for other play equipment areas. Gibson thanked PW for trail work and removal of ivy on the gazebo; further questioned whether gazebo should be replaced due to cost. Goldsmith would like to see gazebo repaired or replaced with new structure, even if new structure smaller.

B. Approval of 3 new requested special events: Clark provided approval request (see Agenda report) for three events for the FY 22/23 special events calendar: Meals on Wheels Community Fest; Walk of Remembrance; and Quilt Show during Good Old Days.

Public Comment: Mike Gibson commented on Walk of Remembrance; Randy Sabado commented on Walk of Remembrance.

Commissioner Comments: Gibson and Hazen noted their full support of all 3 events.

Motion by Gibson with second by Goldsmith to approve 3 new special events, passed 4-0-0.

8. Next Meeting: January 26, 2023. Items for agenda: concept review of survey data; estimates of costs for skatepark at different locations; update on Y.C. hiring and reopening of facility; financial update of budget; special events calendar for FY 22/23 Meeting was adjourned at 7:04 pm.

Submitted by Colleen Goldsmith

1. CALL TO ORDER – The meeting was called to order at 6:05 pm. on 1/26/2023 ROLL CALL – Charlie Gibson; Colleen Goldsmith; Darryl Smith; Jay Tulley. Absent: Elliot Hazen; also present: Public Works Director: Dan Gho; Recreation Manager: Katie Clark. Council Liaison:

Nick Smith

2. Approval of Agenda: Motion to Approve by Smith; Second, Goldsmith - passed 4-0-1

3. Board and Staff Announcements: Goldsmith noted that discussion of city council annual goals included emphasis on youth and senior activities and parks. City Council Sub- committee will further refine city goals. Rec Manager Clark noted that open staff positions for Recreation are on the website.

4. Council Liaison Comments: Nick Smith elaborated on goals for recreation and after school programs with emphasis by council on the following priorities: youth, infrastructure, and environment.

5. General Public Comments: written emails: Steve O’Bier re skatepark petitions against H.S. location: Russell & Linda Wink; Bob & Susan Reikes; Deidre Bradford; James & Margaret Lico; and (?) Silva; petition against Charter School location: Michael & Anita Chang; Deidre Bradford; Fred & Maggie Merkin; (?) Coali; and (?) illegible signature. Jennifer Gorman: skatepark survey; Matt Holland: skatepark design; Steve O’Bier: skatepark location; Christine Saari: skatepark location; Lisa Ciani: Special Events Calendar; Doug & Anne Downs: skatepark injuries; Mariano Catbagan: decline GWP condition; Jennifer Gorman: skatepark size, GWP; Robert Gorman: GWP; and Diane Howell: GWP location.

Public Comment: Jane Wynn: would like two more courts for Pickleball; Barbara Martinez:

PG Adult School would like more PB courts and noted classes quickly fill; Dan Anderson would like PB as Rec Board Goal; Colleen Ingram: PB access; Dan Miller: noise issue from PB not enforced; Lisa Ciani: timer for comments.

6. Approval of Minutes: Motion to Approve by Tulley; Second, Smith - passed 4-0-1

7. Regular Agenda:

A. Proposed Skate Park Update: see Agenda Report
PW Gho noted that it would not be possible to provide Rec Board with estimates for each of the three tentative locations for the skatepark as too many variables to consider--- which add increased costs. Staff and the Sub-committee will meet prior to the February commission meeting and expectation is that recommendations will be brought to PG City Council in March.

Public Comments: Jennifer Gorman expressed concerns about skatepark; Colleen Ingram stated support for project; Inge Lorentzen Daumer commented re quiet neighborhoods; Steve O’Bier: commented on Forest Lodge location.

Commission Comments: Tulley asked for precise skatepark location on Charter School property; Gho responded general location is by David Avenue; Gibson stated belief location is by abandoned ball field. Tulley noted that Hazen will not be Sub-committee member after January; Gibson noted new member will be added at February meeting.

Goldsmith expressed concern with the process: survey can be taken multiple times; has school board been contacted to determine feasibility; and order of the PW check list:
spending huge sums on engineering before knowing whether fund raising will be successful. Gho responded that he would like a conceptual design and once the loca- tion is identified, more will be known about fund raising efforts. Gibson thanked the public for their input and noted that Rec Board only makes a recommendation to city council. Tulley inquired about discussion with school board and Gho responded that he has only spoken with Superintendent Porras. Tulley further commented that the process is challenged by the early decision to view sites of 10k size minimum.

B. Special Events Report: see Agenda Report
Rec Manager Clark provided overview of Special Events Policy 900-1 with definition of special events and city sponsored events. New events for consideration include:

PG Summer Lights Dance and Lovers Point evening event with laser show.

Public Comment: Michael Ipson: Walk of Remembrance; John Moulton: Little Car Show and billing; Christie Metzner: 4th of July and Music in the Park; Lisa Ciani:
concern re Summer Lights and Autobahn events; Christine Gruber: new Summer Lights event; Inge Lorentzen Daumer: inquiry about the pier and CIP Project update.

Commission Comments: Gho provided information re backdrop location for the laser show. Goldsmith questioned the high estimate of PW hours for the Summer Lights event and associated costs. Gibson would like more detail regarding the event as it is city sponsored; also noted problems with a semi parked during Autobahn event and traffic control issues that need to be resolved. Gho explained that Summer Lights budget was based on previous budget for summer events and that PW is addressing parking concerns with Autobahn organizers and expansion of golf course parking. Gho further noted costs associated with Good Old Days are high because event is held during weekend, outside normal business hours.

Motion by Goldsmith to approve all events on the special events calendar with the exception of Summer Lights and request a Summer Lights presentation in February for approval; Second, Smith. Passed 4-0-1
C. Financial Update: see Agenda Expenditure Status Report Rec Manager Clark provided update and explanation for report as well as revenue status. Of the total budget of $969,177, year to date expenses are $443,795, which leaves available $523,303 for FY22/23. Additionally, a revenue status report indicated receipts of $98,392.

No Public Comment.

Commission Comments: Chair Tulley requested additional detail regarding the utility expenses. Goldsmith requested report be provided quarterly to Rec Board, which Clark acknowledged. Gibson noted that utilities for water follow a summer/winter pattern.

Next Rec Board Meeting is February 23, 2023 at 6 pm
Meeting adjourned at 8:24 pm
Submitted by: C. Goldsmith

Agenda No. 11 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Katy Suttorp, Negotiator, City Attorney's Office
MEETING DATE: November 01, 2023
SUBJECT: Compensation and Benefits for Department Heads and Non-Represented Management and Confidential Group Employees
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve a resolution approving the salary and benefit enhancements for Department Heads and for the Non-Represented Management and Confidential Group Employees.

DISCUSSION
Non-represented management, confidential, and department head employees (non-represented group) have a Compensation and Benefits Plan that outlines salary, benefits, and working conditions. Prior to the creation of the Compensation and Benefits Plan, the non-represented group received the same salary and benefit enhancements and concessions as the Management Employee Association (MEA). This was the City’s past practice.

The Compensation and Benefits Plans formally tied the salary and benefit alignment with MEA. The Compensation and Benefits Plan states, the non-represented group will receive the same improvements, or concessions to the working conditions and benefits as the Management Employee’s Association (MEA).

Recently, the City and the Management Employees Association (MEA) have come to a tentative agreement to improve salary, benefits, and working conditions in their Memorandum of Understanding for 2023-2026. Therefore, the non-represented group shall receive the same improvements if the MEA MOU is approved. If the MEA MOU is not approved, no changes will be made at this time for the non-represented group.

Below are key items that will be implemented for the non-represented group:

Cost of Living Adjustments (COLA)
3% COLA effective 8/20/2023
3% COLA effective the first full pay period of July 2024 3% COLA effective the first full pay period of July 2025 The annual costs for the Non-represented/Confidential COLA are projected to be approximately $34,027, $35,048, and $36,099. While the annual costs for the first year are listed at $34,027, the actual $34,027, $35,048, and $36,099. While the annual costs for the first year are listed at $34,027, the actual impact to the budget is estimated to be $9,597. This is primarily due to the City incorporating a 2% COLA into the Fiscal Year 23/24 Budget; and an effective COLA implementation date of August 20, 2023.

The annual costs for the Department Heads are projected to be approximately $43,900, $45,200, and $45,600. While the annual costs for the first year are listed at $43,900, the actual impact to the budget is estimated to be $12,382. This is primarily due to the City incorporating a 2% COLA into the Fiscal Year 23/24 Budget; and an effective COLA implementation date of August 20, 2023.

Market Adjustments for Classification Under Market
Administrative Service Director (1)
Assistant City Manager/Administrative Service Director
Human Resources Director
Police Chief
Public Works Director (1)
Deputy City Manager/Public Works Director
The market adjustments would take place over the first two contract years in equivalent amounts. The annual costs for each market adjustment are anticipated to be $18,950 in each of the first two years. (1) The Administrative Services Director and the Public Works Director positions would not be filled concurrently with the Assistant City Manager/Administrative Services Director and the Deputy City Manager/Public Works Director. These positions are listed only for the purpose of updating the salary schedule.

Increase to Employer Health Contributions
Employee plus a dependent, from $1,300 monthly to $1,400 monthly Employee plus two or more dependents, from $1,600 monthly to $1,825 monthly $25 increase in 2024 for employee plus one dependent ($1,425) and $50 increase for employee plus two dependents or more ($1,875)
$25 increase in 2025 for employee plus one dependent ($1,450) and $50 increase for employee plus two dependents or more ($1,925)
$25 increase in 2026 for employee plus one dependent ($1,475) and $50 increase for employee plus two dependents or more ($1,975)
Health benefit re-opener (meet and confer) if premiums increase on average 15% or more for CalPERS Region 1
The annual costs of health care for the Non-represented/Confidential employees are anticipated to be $6,750 in the first year, and $2,100 in the remaining two years.

The annual costs of health care for the Department Head employees are anticipated to be $9,000 for the first year and $2,700 for the remaining two years.

Paid Time Off (PTO) and Holidays
Eliminate PTO tiering for those hired after July 1, 2015 Eliminate Holiday tiering for those hired after July 1, 2015 Deferred Compensation
Employer match of up to $100 per pay period for participating employees The estimated annual cost for the Non-represented/Confidential matching contribution should not exceed $9,100.
exceed $9,100.

The estimated annual costs for Department Head matching contribution should not exceed $9,100.

These amounts may be less depending upon employee participation.

Bilingual Pay
$200 monthly for Spanish/English bilingual pay for assignments that qualify $2,400 annually for a qualified assignment in the Non-Represented/Confidential Group. This benefit is not applicable to Department Heads.

Employee Fitness Program
Redesign to a fitness reimbursement program, for up to $500 reimbursement for fitness memberships to gyms, fitness classes, or similar
The estimated annual cost for Non-represented/Confidential employees, up to $3,500 if all employees in this group participate.

The estimated annual cost for Department Head employees up to $3,500 if all employees in this group participate.

OPTIONS

1. Provide alternate direction
FINANCIAL IMPACT:

It is anticipated that the impact to the Fiscal Year 23/24 Budget will be approximately $85,200 for both groups. This represents the amount of the projected first year increase, net of the 2% COLA that was incorporated into the original budget. If approved, a budget amendment will be prepared as part of the mid-year budget process.

The annual increases for both groups for the remaining two years of the contract are estimated to be approximately $104,900 and $86,500, respectively. These amounts represent the second year market adjustments, the increase in healthcare, and the additional COLA's.

The increase in the annual unfunded liability payment for each 3% COLA is estimated to be approximately $15,867 (Approximately $47,600 for the combined three-year contract period); however, the City's budget will not be impacted for the first $15,400 amount until Fiscal Year 26/27. The estimated increase in the unfunded liability is estimated to be $152,000 for each 3% increase. The projected increase in the unfunded liability payment and the unfunded liability may also change based on investment returns and CalPERS actuarial assumptions.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Resolution - NonReps and Confidential Group
Resolution - Department Head Group
Public Comment
Public Comment
RESOLUTION NO. 23 - ____________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

APPROVING THE SALARY AND BENEFIT IMPROVEMENTS WITH THE PACIFIC

GROVE NON-REPRESENTED MANAGEMENT AND CONFIDENTIAL GROUP (GROUP)

FINDINGS

1. The City of Pacific Grove and the Management Employees Association (MEA) have negotiated and have reached agreement on a successor Memorandum of Understanding amending the Memorandum of Understanding that governs wages, benefits, hours and working conditions Management Employee Association members.

2. Under the Compensation and Benefits Plan for the non-represented management and confidential group (group), the group will receive the same improvements, or concessions to the working conditions and benefits as the Management Employee’s Association (MEA). If the MEA MOU is not approved, no changes will be made at this time for the group.

3. This action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment; and

RESOLUTION

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds each recital set forth above to be true and correct, and by this reference incorporates each as an integral part of this Resolution.

SECTION 2. The City Council approves the improvements to salary, benefits, and working conditions of the non-represented management and confidential group.

SECTION 3. The City Manager is authorized to execute all documents and to perform all other necessary City acts to implement the improvements.

SECTION 4. This resolution confers authority upon the City Manager to take all steps necessary to implement the improvements to the salary, benefits, and working conditions and authorizes budget adjustments if necessary to implement expenditures during FY 23/24, FY 24/25, and 25/26.

SECTION 5. This Resolution shall take effect immediately following its adoption.

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

AYES:

NOES:

ABSENT:

APPROVED:
_________________________________
__________________________

BILL PEAKE
Mayor
ATTEST:
_________________________________

KERRY LINDSTROM
Interim City Clerk
APPROVED AS TO FORM:
_________________________________

BRIAN PIERIK
City Attorney
RESOLUTION NO. 23 - ____________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

APPROVING THE SALARY AND BENEFIT IMPROVEMENTS WITH THE PACIFIC

GROVE DEPARTMENT HEAD GROUP (GROUP)

FINDINGS

2. Under the Compensation and Benefits Plan for the department head group (group), the group will receive the same improvements, or concessions to the working conditions and benefits as the Management Employee’s Association (MEA). If the MEA MOU is not approved, no changes will be made at this time for the group.

RESOLUTION

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds each recital set forth above to be true and correct, and by this reference incorporates each as an integral part of this Resolution.

SECTION 2. The City Council approves the improvements to salary, benefits, and working conditions of the department head group.

SECTION 3. The City Manager is authorized to execute all documents and to perform all other necessary City acts to implement the improvements.

SECTION 5. This Resolution shall take effect immediately following its adoption.

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

AYES:

NOES:

ABSENT:

APPROVED:
_________________________________
__________________________

BILL PEAKE
Mayor
ATTEST:
_________________________________

KERRY LINDSTROM
Interim City Clerk
APPROVED AS TO FORM:
_________________________________

BRIAN PIERIK
City Attorney

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Agenda No. 11 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Katy Suttorp, Negotiator, City Attorney's Office
MEETING DATE: November 01, 2023
SUBJECT: Memorandum of Understanding between the City of Pacific Grove and the Management Employees Association (MEA)
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve a resolution approving the Memorandum of Understanding between the City of Pacific Grove and the Management Employees Association to cover the period of July 1, 2023, through June 30, 2026.

DISCUSSION
The City and Management Employees Association (MEA) have been negotiating a successor to the Memorandum of Understanding (MOU) that expired in June 2023.

The attached resolution implements the tentative agreement reached with MEA. MEA’s membership preauthorized this agreement on October 12, 2023. Below are key items that have been negotiated:

Multi-year agreement, term ending June 30, 2026
Cost of Living Adjustments (COLA)
3% COLA effective 8/20/2023
3% COLA effective the first full pay period of July 2024 3% COLA effective the first full pay period of July 2025 The annual costs for each COLA are projected to be approximately, $28,585, $29,644, and $30,533.

While the annual costs for the first year is listed as $28,585, the actual impact to the Fiscal Year 23/24 Budget is estimated to be approximately $8,062. This is primarily due to the City incorporating an estimated 2% COLA into the Fiscal Year 23/24 Budget; and an effective COLA implementation date of August 20, 2023.

Market Adjustments for Classification Under Market
Construction Project Manager
Management Analyst
Planner, Principal
The annual costs for each market adjustment are projected to be approximately $15,500 in the first year and $15,500 in the second year.

Increase to Employer Health Contributions
Employee plus a dependent, from $1,300 monthly to $1,400 monthly Employee plus two or more dependents, from $1,600 monthly to $1,825 monthly $25 increase in 2024 for employee plus one dependent ($1,425) and $50 increase for employee plus two dependents or more ($1,875)
$25 increase in 2025 for employee plus one dependent ($1,450) and $50 increase for employee plus two dependents or more ($1,925)
$25 increase in 2026 for employee plus one dependent ($1,475) and $50 increase for employee plus two dependents or more ($1,975)
Health benefit re-opener (meet and confer) if premiums increase on average 15% or more for CalPERS Region 1
The annual cost of health care increase in the first year is estimated to be $8,700, with increases of approximately $4,050 in the remaining years.

Paid Time Off (PTO) and Holidays
Eliminate PTO tiering for those hired after July 1, 2015 Eliminate Holiday tiering for those hired after July 1, 2015 Deferred Compensation
Employer match of up to $100 per pay period for participating employees The annual cost of the Deferred Compensation match is anticipated to be no greater than $13,000; however, this could vary depending on participation.

Bilingual Pay
$200 monthly for Spanish/English bilingual pay for assignments that qualify Employee Fitness Program
Redesign to a fitness reimbursement program, for up to $500 reimbursement for fitness memberships to gyms, fitness classes, or similar
The amount of Bilingual Pay and participation in the Employee Fitness Program may vary; however, it is anticipated not to exceed $10,000 annually.

Employee Contribution to the CalPERS Employer Share
Employees will continue to pay 5% of the CalPERS employer share for a total of 12% CalPERS employee contribution (7% employee share, 5% employer share) The negotiations were fully collaborative and were based on shared interests of the MEA employees, and the City. This is a continuation of the MEA’s ongoing approach to seek what is best for its members, and to do so in the larger context of what is best for the City as a whole.

Approval of the attached resolution confers authority upon the City Manager to take all steps necessary to implement this MOU and authorizes budget adjustments, if necessary, to implement expenditures during FY 23/24, FY 24/25 and FY 25/26.

OPTIONS

1. Provide alternate direction

1. Provide alternate direction
FINANCIAL IMPACT:

It is anticipated that the impact to the Fiscal Year 23/24 Budget will be approximately $39,800. This represents the amount of the projected first year increase, net of the 2% COLA that was incorporated into the original budget. If approved, a budget amendment will be prepared during the mid-year budget process.

The average increases to the remaining two years of the contract are estimated to be approximately $$32,000 annually, which represent the increase in healthcare and the additional COLA's.

The increase in the annual unfunded liability payment for each 3% COLA is estimated to be approximately $5,650 (Approximately $17,000 for the combined three-year contract period); however, the City's budget will not be impacted for the first $5,480 amount until Fiscal Year 26/27. The estimated increase in the unfunded liability is anticipated to be approximately $52,200 for each 3% increase. The projected increase in the unfunded liability payment and the unfunded liability may also change based on investment returns and CalPERS actuarial assumptions.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments

MEA MOU
Resolution
Public Comment

MEMORANDUM OF

UNDERSTANDING

MANAGEMENT EMPLOYEES

ASSOCIATION
July 1, 2023 – June 30, 2026

CITY OF PACIFIC GROVE
MEA MOU July 1, 2023 – June 30, 2026 Page 1
Table of Contents
ARTICLE 1 ADMINISTRATIVE ................................................ 3

1.1 Parties................................................................. 3

1.2 Recognition............................................................. 3

1.3 Unit Description ......................................................... 3

1.4 Coverage............................................................... 3

1.5 Duration and Scope of MOU ................................................ 3

1.6. Nondiscrimination ....................................................... 4

1.7 Association Dues ........................................................ 4

1.8 Contracting Out/Bidding ................................................... 4

1.9 Safety ................................................................. 4

1.10 Safety Committee ........................................................ 5 ARTICLE 2 COMPENSATION ................................................. 5

2.1 Salary ................................................................. 5

2.1.1 Market Adjustments .................................................... 5

2.1.2 New Classification ..................................................... 5

2.2 Management Time Compensation............................................ 6

2.3 Salary Step on Promotion or Reclass ......................................... 6 ARTICLE 3 INSURANCE BENEFITS ............................................ 6

3.1 Employee Health Plan Eligibility ............................................. 6

3.2 City Paid Health Premiums ................................................. 7

3.3 Rate of Contribution Cash in Lieu (Grandfathered Employees) ..................... 8

3.4 Rate of Contribution Cash in Lieu (New Employees) ............................. 8

3.5 Proof of Other Coverage ................................................... 8

3.6 Section 125 Plan ........................................................ 8

3.7 457 Deferred compensation Plan ............................................ 8

3.8 Group Life Insurance ..................................................... 9

3.9 Short Term/ Long Term Disability Plan (STD/ LTD) ............................... 9

3.10 State Disability Income Protection Plan ...................................... 9

3.11 Medical, Dental, and Vision Insurance ....................................... 9

3.12 Medicare .............................................................. 9

3.13 Workers Compensation Salary Continuation .................................. 9 ARTICLE 4 FITNESS INCENTIVE .............................................. 9

4.1 Fitness Reimbursement Program Overview..................................... 9 ARTICLE 5 RETIREMENT ................................................... 10

5.1 Definition ............................................................. 10 MEA MOU July 1, 2023 – June 30, 2026 Page 2

5.2 Service Pension for Classic Members ....................................... 11

5.3 Cost Sharing - Service Pension for Classic Members............................ 11

5.4 Final Compensation for Classic Members .................................... 11

5.5 Credit for Unused Sick Leave for Classic Members ............................. 11

5.6 New CalPERS Members Benefit Rate, Contribution and Final Compensation ......... 11

5.7 1959 Survivor’s Allowance ................................................ 11

5.8 Military Service Credit.................................................... 11

5.9 Continued Application .................................................... 11 ARTICLE 6 LEAVE PROVISIONS ............................................. 12

6.1 Sick Leave............................................................. 12

6.2 Sick Leave Buyout ...................................................... 12

6.3 Personal Necessity Leave................................................. 12

6.4 Bereavement Leave ..................................................... 12

6.5 Paid Time Off (PTO) ..................................................... 12

6.6 Paid Holidays .......................................................... 13 ARTICLE 7 WORKING CONDITIONS .......................................... 15

7.1 Uniform ............................................................. 15

7.1.1 Uniform Allowance .................................................... 15

7.2 Alternate Work Schedule ................................................. 15

7.3 Step Advancement ...................................................... 15

7.4 Work Outside Business Hours ............................................. 15 ARTICLE 8 CONTINUING EDUCATION AND PROFESSIONAL DEVELOPMENT ..... 16

8.1 Tuition Reimbursement................................................... 16

8.2 Professional Development Program ......................................... 16

8.3 City Training Day ....................................................... 16 ARTICLE 9 MISC ........................................................... 16

9.1 MOU Negotiations Timing ................................................. 16

9.2 Future Negotiations ..................................................... 16 ARTICLE 10 SAVINGS CLAUSE .............................................. 17 MEA MOU July 1, 2023 – June 30, 2026 Page 3
Memorandum of Understanding Between
City of Pacific Grove and
Management Employees’ Association
July 1, 2023 - June 30, 2026
In accordance with State requirements, the City of Pacific Grove, through its negotiating team, and the Pacific Grove Management Employees’ Association, through its negotiating team, have met and conferred in good faith on matters within the scope of representation. As a result of these meetings, the parties make the following Memorandum of Understanding as required and subject to the conditions of Government Code Section 3503.1.

ARTICLE 1 ADMINISTRATIVE

1.1 Parties
This agreement is made and entered into between the City of Pacific Grove (herein called the “City”) and the Pacific Grove Management Employees’ Association, (herein called the “Association”).

1.2 Recognition
The City recognizes the Pacific Grove Management Employees' Association as the exclusive representative of the employees of the City in the Management Unit.

1.3 Unit Description
The Management Unit consists of all regular employees of the City occupying positions in the following non-confidential designated job classes:

Accountant
Construction Project Manager
IT Program Manager (see 2.1.2)
Librarian
Management Analyst
Planner, Principal
Program Manager
Public Works Superintendent
Senior Librarian
Senior Recreation Coordinator

1.4 Coverage
This Memorandum of Understanding applies only to full-time positions in the Management Association.

1.5 Duration and Scope of MOU
The MOU shall govern the period July 1, 2023 - June 30, 2026. It is understood that as to any terms not covered by this MOU. Section 4.20 of the Pacific Grove Municipal Code and Policy & Procedures Manual is applicable.

MEA MOU July 1, 2023 – June 30, 2026 Page 4

1.6. Nondiscrimination
The provisions of this Memorandum of Understanding shall be applied equally to all employees covered hereby without discrimination because of Association membership.

Employees may elect to exercise their right to join and participate in the activities of the Association for the purpose of representation in all matters of their working conditions and employer-employee relations.

1.7 Association Dues
Employees in classifications and positions recognized to be represented by the Association may authorize the City to deduct specified amounts for payment of dues to the Association. The City is not a party to any matters regarding the process and any other terms applicable to employee authorization or rescission of authorization for such deductions. Such matters are exclusively between the Association and affected employee(s) only.

The Association will maintain records of employee authorizations for such payroll deductions and will provide the City with a document identifying unit employees who have authorized payroll deductions and the amount that each employee has authorized the City to deduct. The City will rely upon the list of employees and the deduction amounts contained in the document provided by the Association, subject to the following terms:

Deduction of membership dues will cease starting with the next pay period following the effective date of promoting or demoting out of the association.

No payroll deductions shall be made under this Section during any pay period in which an employee’s earnings, after all other deductions are made, are insufficient to cover the full amount authorized.

When an employee is in a non-pay status for an entire pay period, no deduction will be made to cover the pay period from future earnings.

In the case of an employee who is in a non-pay status during less than an entire pay period and whose earnings, after all other deductions are made, are insufficient to cover the full amount authorized under this Section, no deduction shall be made from future earnings to cover the pay period.

The City shall transmit to the Association, as soon as reasonably possible, the aggregate of such deductions, along with an itemized statement of the deductions taken. Dues deducted and paid to the Association in error shall be refunded to City upon presentation of proof of such error. The Association shall indemnify, defend, and hold the City harmless against any liability arising in any forum, whether judicial, administrative, or otherwise, from any claims, demands, or other action relating to the City’s compliance with any obligations imposed under Section 1.7 including but not limited to payroll deductions made in reliance on information provided by the Association and the Association’s use of monies collected under these provisions.

1.8 Contracting Out/Bidding
The City has the right to contract out bargaining unit services, when feasible, the City may perform cost analysis to meet the best interest of the City. In the event that the City exercises it’s right to contract out bargaining unit work, the City shall provide at least 60 days’ notice to Association and an opportunity for the Association to meet and confer on the impacts and effects of this decision and comply with current law.

1.9 Safety
The City recognizes its obligation and is committed to providing a safe place of employment for its employees. To assist in accomplishing this goal, it is agreed that the City reserves the right to adopt MEA MOU July 1, 2023 – June 30, 2026 Page 5
reasonable City rules and regulations, which become effective when posted. City agrees to meet and discuss with the Association proposed changes prior to implementation.

The Association agrees that it is the duty of all employees to comply with all reasonable rules and regulations and to be alert to all unsafe places, equipment and conditions and to report any such unsafe practices or conditions to their immediate supervisor.

Association representatives shall have reasonable access to work locations of unit employees to inspect worksites to ensure a safe work place.

1.10 Safety Committee
The City shall convene a Safety Committee to discuss the provision of safety equipment appropriate to specific job classifications.

ARTICLE 2 COMPENSATION

2.1 Salary
A. Effective August 20, 2023, 3% Cost of Living Adjustment (COLA). Two reads of a salary ordinance is required to change the salary schedule and is anticipated to be completed in December 2023. COLA will be retroactive to August 20, 2023.

B. 3% COLA effective the first full pay period in July of 2024.

C. 3% COLA effective the first full pay period in July of 2025.

2.1.1 Market Adjustments
A. The following classifications will be brought-up to 95% of total compensation as indicated on the Bryce Compensation study. The below classifications will be brought-up to market:
• Accountant, Senior
• Construction Project Manager
• Management Analyst
• Planner, Principal
B. 50% towards 95% of market median effective the first full pay period of July 2023 C. Remaining 50% towards 95% of market median effective the first full pay period July 2024
D. 3% COLA effective the first full pay period of July 2025 E. Market adjustments would apply if greater than, and in lieu of, July 2023 and July 2024 3% COLA

2.1.2 New Classification
An IT Program Manager classification will be created and added to MEA.

MEA MOU July 1, 2023 – June 30, 2026 Page 6

2.2 Management Time Compensation
Due to the unique aspects of their normal job duties, employees shall receive Management Time Compensation is lieu of paid management leave, overtime, or compensatory time in the amount of 3% of base salary.

It is understood Association members are required to work flexible hours and will adjust their schedules as they feel appropriate to meet their responsibilities.

2.3 Salary Step on Promotion or Reclass
The salary of an employee who is promoted or reclassified to a class having a higher salary range shall be adjusted to the first step of the new salary range or to the next higher step that provides a minimum of five percent (5%) salary increase.

2.4 Bilingual Pay
Bilingual pay is $200 monthly for Spanish speaking skills used in assignments that routinely and consistently require Spanish communication skills. The Department Head will make a determination with City Manager approval, if Spanish bilingual skills are being used routinely and consistently.

Employees may test and pass the test for Spanish (verbal) skills. Bilingual Pay is effective the first full pay period after HR receives the passing results. If the assignment changes and there is no longer a need for Spanish speaking skills, the bilingual pay will be removed at the next full pay period.

If the employee fails the Spanish test, they may retest after 6 months.

ARTICLE 3 INSURANCE BENEFITS

3.1 Employee Health Plan Eligibility
Association employees shall be entitled to participate in the City-sponsored group health plans including medical, dental, and vision as well as optional benefits.

Eligible employees enrolling in the group health plans within 60 days following their appointment will be covered subject to the contract limitation with the group health plan carrier. Coverage shall commence when the employee is eligible for coverage under CalPERS rules and the group health plan carriers’ rules.

Human Resources will notify employees of annual open enrollment periods to change group health plans or enroll in additional benefits; unless the employee can certify a qualifying loss of coverage. (an eligible spouse, domestic partner, or minor child requiring health coverage because of a court order; new children by birth or adoption, or placement of adoption; new family members due to marriage or domestic partnership registration; or those whose health plan was cancelled due to an involuntary loss of coverage).

MEA MOU July 1, 2023 – June 30, 2026 Page 7

3.2 City Paid Health Premiums
(a) City shall pay the employer required statutory minimum contribution for employees enrolled in the PERS health plans as required by the Public Employee Medical and Hospital Care Act (PEMHCA).
(b) Health care premiums include medical, dental and vision. (c) For employees participating in all three health plans: medical, dental and vision:
(1) Effective the first full pay period following City Council approval of the MOU, the City will contribute according to the below plan enrollment levels:

Plan Enrollment Level Monthly Employer Contribution
(amount excludes PEMHCA)
Employee Only $950
Employee + 1 Dependent $1,400
Employee + 2 or More Dependents $1,825
(2) Effective the first pay period in 2024, the employer contribution will increase to the chart amounts below.

Plan Enrollment Level Monthly Employer Contribution
(amount excludes PEMHCA)
Employee Only $950
Employee + 1 Dependent $1,425
Employee + 2 or More Dependents $1,875
(3) Effective the first pay period in 2025, the employer contribution will increase to the chart amounts below.

Plan Enrollment Level Monthly Employer Contribution
(amount excludes PEMHCA)
Employee Only $950
Employee + 1 Dependent $1,450
Employee + 2 or More Dependents $1,925
(4) Effective the first pay period in 2026, the employer contribution will increase to the chart amounts below.

Plan Enrollment Level Monthly Employer Contribution
(amount excludes PEMHCA)
Employee Only $950
Employee + 1 Dependent $1,475
Employee + 2 or More Dependents $1,975
(d) Medical Premium Re-opener
Contract will be re-opened to meet and discuss medical premiums only, if premiums increase an average of 15% between all four eligible plans for CalPERS Region 1 (PERS Platinum, PERS Gold, Anthem HMO Select, and Blue Shield Trio HMO) at one or more of the employee only, employee plus one, or employee plus family enrollment levels. Only enrollment levels that meet the 15% average increase criteria will be subject to the re-opener. No rounding shall be applied for purposes of this section (e.g. an average increase of 14.995% at the employee-only enrollment level does not meet the 15% percent requirement.) MEA MOU July 1, 2023 – June 30, 2026 Page 8

3.3 Rate of Contribution Cash in Lieu (Grandfathered Employees) The City shall contribute $368.75 per month ($171.20 for each of twenty- six pay periods) for current employees who are not participating in medical health plan coverage at the time of MOU ratification. This option in not available to new hires or current employees participating in the City’s medical health plan coverage. There is no opt-in for this program and employees who opt out will no longer be allowed to receive this benefit but may be able to participate in the New program outlined in Section 3.4. This contribution terminates 6/30/26.

3.4 Rate of Contribution Cash in Lieu (New Employees)
Beginning January 2021, employees who are not currently grandfathered in the cash-in-lieu program may opt out of health (medical, dental and vision) during open enrollment and receive $250 per month taxable cash in lieu ($115.38 for each twenty-six pay periods). Employees who receive the cash-in-lieu, must provide proof of other coverage for medical.

3.5 Proof of Other Coverage
Employees who opt out of the medical plan and receive cash in lieu must provide the following:
(a) proof the employee and all individuals for whom the employee intends to claim a personal exemption deduction (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”);
and
(b) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The City will not make an in lieu payment if the City knows the employee or tax family member doesn’t have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied.

3.6 Section 125 Plan
Employees may elect to participate in three Section 125 programs offered by the City. The available programs are Pre-Tax Premium Option, Dependent Care, and Flexible Spending Account. Each of these programs shall be administered in accordance to the IRS Code. For purposes of information, the following provides a description of the programs. • Pre-Tax Premium Option- Permits payment of health insurance premiums subject to salary deduction with pre-tax income.
• Dependent Care- Permits payment of eligible dependent care with pre-tax income. • Flexible Spending Account- Permits payment of eligible health care expenses not reimbursed by health insurance with pre-tax income.
• Optional Insurance Programs (e.g. AFLAC or other pre-tax offerings sponsored by the City.

3.7 457 Deferred compensation Plan
The City will match up to $100.00 per pay period of any MEA member’s contribution to the City’s Deferred Compensation Plan authorized under the Internal Revenue Code Section 457.

MEA MOU July 1, 2023 – June 30, 2026 Page 9

3.8 Group Life Insurance
The City shall provide at its cost Group Life Insurance with Accidental Death and Dismemberment at a minimum benefit of $75,000.

3.9 Short Term/ Long Term Disability Plan (STD/ LTD)
The City shall provide at its cost supplemental Short-Term and Long-Term Disability Insurance.

3.10 State Disability Income Protection Plan
Association employees are covered by the State Disability Income (SDI) Protection Plan at their expense. The SDI benefit will be integrated with City PTO leave benefits.

3.11 Medical, Dental, and Vision Insurance
The City and Association agree to periodically review health insurance policies currently in place to provide the most favorable insurance coverage available.

3.12 Medicare
Medicare is withheld for employees.

3.13 Workers Compensation Salary Continuation
Association members who suffer a bona fide on the job injury or illness, as determined under the provisions of the California Workers’ Compensation laws, and who, as a result of such injury or illness, are unable to work in their regularly assigned position or other position as determined by the City will be entitled to receive full salary and benefits for the first 90 days of such absence from the date of the incurred injury or illness. No charge to the member’s sick leave, vacation, compensatory time off or other leave will be made during the 90 days from the date of the incurred injury. It is noted that the City offers a Disability Insurance policy which establishes additional benefits for absences due to disabilities.

If a claim has been filed with, but not yet finally accepted or rejected by, the City’s Worker’s Compensation provider, the employee will be required to use any accrued and available paid leave to cover their absence. If the claim is finally accepted, the employee’s leave banks will be restored for days actually used, up to 90 days.

ARTICLE 4 FITNESS INCENTIVE

4.1 Fitness Reimbursement Program Overview.

A. City will reimburse up to $500 per calendar year for employee’s personal fitness costs.

Eligible covered fitness reimbursement are listed below. o Fitness Classes (Yoga, Pilates, Cycling, etc.)
o Fitness Subscriptions (such as Peloton, etc.)
o Gym Membership
o Weight Management Programs ( such as Weight Watchers) B. Reimbursement for fitness expenses not listed above, will be subject to the City Manager's discretion and approval. To avoid declination of reimbursement, items not listed should be pre-approved by the City Manager, or designee. Declination of reimbursement for items not listed above are not grieveable.

MEA MOU July 1, 2023 – June 30, 2026 Page 10
C. Annual requests for reimbursement must be submitted by December 1st of calendar each year.

D. To be eligible for reimbursement, a requesting employee must be in active status and remain a current employee through December 31st of the year in which seeking reimbursement.

E. Subject to IRS guidelines, the fitness incentive is taxable income.

ARTICLE 5 RETIREMENT
This MOU shall incorporate the two tiered retirement system to address Classic Members and New CalPERS Members required for Miscellaneous Employees by the California Public Employees' Pension Reform Act (PEPRA) of 2013.

5.1 Definition
The terms Classic Member and New CalPERS members are defined by PERS law and regulations, but in general these are construed to have the following meanings:

A. Classic CalPERS Member
“Classic Member” is typically defined as an employee who was hired on or before December 31, 2012, or is a member of a reciprocal retirement system.

B. New Employee
"New Employee" means an employee of a public employer who is employed for the first time by any public employer on or after January 1, 2013, and who was either:
• Not employed by any other public employer prior to that date; or • Employed by another public employer prior to that date, but who was not subject to reciprocity between his new employer's plan and another public retirement system.

C. New CalPERS Member
"New Member" means an individual who either:
• Becomes a member of the plan for the first time on or after January 1, 2013 and either (i) was not a member of any other public retirement system prior to that date or (ii) was a member of another public retirement system prior to that date but was not subject to reciprocity between his new employer's plan and another public retirement system; or
• Was an active member in the plan and, after a break in service of more than six months, returned to active membership in that plan with a new employer.

MEA MOU July 1, 2023 – June 30, 2026 Page 11

5.2 Service Pension for Classic Members
The retirement formula expressed in Government Code Section 21354 commonly known as 2% at 55 local miscellaneous members shall apply to covered Classic Members.

5.3 Cost Sharing - Service Pension for Classic Members
The parties shall engage in sharing the City’s employer contribution towards retirement benefits in accordance with Government Code Section 20516. Cost-sharing shall be in effect and will require the employee to pay the portion of the employer contribution.

A. For the duration of the MOU, the employee shall pay a total of 12% of the employee and employer share (7% of the employee share and 5% of the employer share).

B. The City completed a contract amendment with CalPERS under Section 20516 that allows for employee cost sharing of the employer rate and provides member’s contribution to be credited to each member’s account. Following the expiration of the current MOU, the City will initiate a contract amendment with CalPERS to end the Section 20516 amendment if not re-negotiated at that time. The Association recognizes that the CalPERS amendment process may take up to 90 days or longer for the amendment to become effective.

5.4 Final Compensation for Classic Members
“Final Compensation” shall be applied for retirement purposes as specified in Government Code Section 20042, as one year’s highest compensation.

5.5 Credit for Unused Sick Leave for Classic Members
Employees shall be given service credit upon retirement for unused sick leave as specified in Government Code Section 20965.

5.6 New CalPERS Members Benefit Rate, Contribution and Final Compensation New CalPERS Members shall receive and make contributions for PERS benefits in compliance with PEPRA.

A. Benefit Rate New Members benefit rate shall be MISC 2% @ 62.

B. Contribution New Members shall pay 50% of the normal cost of their pension benefit.

C. Final Compensation Three-year average final compensation period.

5.7 1959 Survivor’s Allowance
The “1959 Survivor’s Allowance Fourth Level” as defined in Government Code Section 21574 shall apply to both Classic and New CalPERS Members.

5.8 Military Service Credit
Military Service Credit as defined in Government Code Section 21024 shall apply to both Classic and New CalPERS Members

5.9 Continued Application
The Parties agree that all elements of the CalPERS article shall have continued application until or unless it is amended by mutual agreement of the parties.

MEA MOU July 1, 2023 – June 30, 2026 Page 12
ARTICLE 6 LEAVE PROVISIONS

6.1 Sick Leave
Sick leave is replaced by paid time off (PTO). However, employees who were previously employed by the City in a part-time status, may utilize their accumulated sick leave.

6.2 Sick Leave Buyout
Upon separation of employment, other than retirement, the employee shall be entitled to be paid for 50% of his/her sick leave accumulated at the time of such termination.

Upon retirement the employee shall be entitled to be paid for 50% of any accumulated sick leave in excess of that for which retirement credit is given.

In the event the employee is terminated by virtue of a conviction of a felony or any other illegal act, the City shall have no obligation to provide sick leave buy-out.

6.3 Personal Necessity Leave
Employees may use accrued sick leave and or PTO leave in the event of the personal illness or injury of a family member, including father, mother, brother, sister, spouse, registered domestic partner, child, step-child, grandparent, or in-laws.

6.4 Bereavement Leave
Up to a maximum of five (5) days of paid leave will be granted per occurrence in the case of the death of a family member, including father, mother, brother, sister, spouse, child, step parent, step child, grandparent, grandchild, in-laws, registered domestic partner, child of registered domestic partner or any other member of the immediate household.

6.5 Paid Time Off (PTO)
A. Accrual Rate
PTO Accruals are based upon full years of consecutive employment.

New and Legacy employees shall earn PTO according the rates set out in the following table.

Effective the first full pay period following City Council approval of the MOU, accruals earned will be as follows for all members of the MEA.

Years of
Service
Hours Earned
per Month
Hours Earned
Per Year
Less than 5 12 144
5 to 6 14.00 168
7 to 8 14.667 176
9 to 10 15.33 184
11 to 12 16.00 192
13 to 14 16.667 200
15 17.333 208
16 plus 18.00 216
17 18.667 224
18 19.333 232
MEA MOU July 1, 2023 – June 30, 2026 Page 13
Years of
Service
Hours Earned
per Month
Hours Earned
Per Year
19 20.00 240
20 plus 20.667 248
B. PTO Accumulation
PTO shall not be accrued any time the employee’s PTO balance exceeds 400 PTO hours.

C. Sick Leave Balances
Employees with Sick Leave balances may be retained as a sick leave bank.

Sick leave accrued before June 30, 2015 may be used as PTO or may be retained as a sick leave bank.

D. PTO/Vacation Buy-Back Program
Employees may sell back to the City up to 80 hours of their PTO/ vacation in any calendar year if both of the following conditions are met:

1. The employee has used (taken) at least 40 hours of PTO/ vacation during the preceding calendar year.

AND

2. The employee must have at least 40 hours of PTO/ vacation remaining after the buy-back of some of the accumulated vacation.

3. On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to eighty (80) hours of accrued PTO (in whole hour increments) which will be earned in the following calendar year at the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following year, the employee will receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the employee’s PTO leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out.

E. PTO/Vacation Pay Out
PTO/Vacation leave balance shall be paid out upon employee’s separation from employment in compliance with CalPERS rules and regulations.

6.6 Paid Holidays
Employees shall receive annually the following nine (9) paid holidays:

Paid Holiday Schedule

1. New Year’s Day

2. Memorial Day

3. Independence Day
MEA MOU July 1, 2023 – June 30, 2026 Page 14
Paid Holiday Schedule

4. Labor Day

5. Veteran’s Day

6. Thanksgiving Day

7. Thanksgiving Holiday/Day after Thanksgiving

8. Christmas Eve Day

9. Christmas Day
C. Paid Holiday Pay
Paid holidays will be calculated at eight (8) hours of holiday pay for full-time employees and will be calculated at six (6) hours of holiday pay for 30-hour weekly employees.

Holiday pay is paid at the base hourly rate (8 hours x base pay, or 6 hours x base pay).

D. Holiday Schedule Observance
Unless otherwise provided, when a holiday falls on a Sunday, the following Monday shall be observed; a holiday falls on a Saturday, the prior Friday shall be observed.

When a holiday falls on an employee’s time off, the working day immediately preceding or immediately following such holiday, at the determination of the department manager and subject to approval of the personnel officer, shall be observed as a holiday.

E. Floating Holidays
Employees shall receive six (6) floating holidays each fiscal year.

Employees may select the date upon which they shall use any floating holiday, subject to scheduling needs of the City. If a floating holiday is not used within the fiscal year, the time shall be forfeited.

Floating holidays denied due to staffing shortages or other operational reasons will be paid or accumulated at the employee’s choice at the end of the fiscal year. The employee will have the burden to prove the request was made in a timely manner and then denied.

F. Prorated Allocation for New Employees
Employees who are hired during the Fiscal Year (FY) shall have the number of floating holidays prorated based upon their date of hire as follows:

Date of Hire Number of Floating Days
July 1 to August 31 6 floating holidays
September 1 to October 31 5 floating holidays
November 1 to December 31 4 floating holidays
January 1 to February 28(29) 3 floating holidays
March 1 to April 30 2 floating holidays
May 1 to June 30 1 floating holiday
MEA MOU July 1, 2023 – June 30, 2026 Page 15
ARTICLE 7 WORKING CONDITIONS

7.1 Uniform
The City may provide field working uniforms and/or safety shoes for Public Works employees working out in the field.

7.1.1 Uniform Allowance
The City will provide a uniform allowance for designed members of field departments in the amount of $92.50 each calendar month. The classifications to which this Article applies shall be the Police Management Analyst and any other classification approved by the City Manager or designee.

7.2 Alternate Work Schedule
Employees may, upon approval of the appropriate Department Head and the City Manager, implement an alternative work schedule providing for 80 hours of work in two consecutive fiveday Monday through Friday periods.

The schedule shall allow for adequate coverage of all activities normally and customarily covered during the Monday through Friday workweek. Approval by the appropriate Department Head and the City Manager shall not be unreasonably withheld.

7.3 Step Advancement
Employees are eligible for a salary step increase on their anniversary or new classification date following completion of 2,080 hours of paid service, or whichever is longer. Time spent on legally protected leaves of absence such as FMLA or CFRA count towards step increase eligibility. Salary step increases will be effective the first full pay period following the step eligibility date.

7.4 Work Outside Business Hours
Management employees receive management incentive compensation to recognize the unique aspects of the normal job duties. Management employees are expected to:

1. Regularly attend City Council Meetings and/or a City Advisory Board(s); to include preparation and presentation of agenda items; and

2. Regularly work on special projects, or City initiatives that may require work hours before or after normal business hours as well as be required to work weekends.

3. Be the first to staff the department outside of normal business hours, including weekends, when there is a critical need to complete work and/or during a natural disaster or emergency.

Management employees who do not work outside business hours as listed above or similarly, will forfeit the management incentive compensation. Department heads will monitor.

MEA MOU July 1, 2023 – June 30, 2026 Page 16
ARTICLE 8 CONTINUING EDUCATION AND PROFESSIONAL

DEVELOPMENT

8.1 Tuition Reimbursement
Tuition Reimbursement is up to $3,000 in a fiscal year for qualified expenses per the MEA Education Reimbursement Program.

8.2 Professional Development Program
A lump sum payment of $500.00 shall be made by City to an employee represented by the Association who has completed a course of study and/or examination that results in attaining an acknowledged level of professional development – evidenced, for example, by degree, credential or certification – in the employee’s field of work. To qualify for this payment, the achievement must demonstrate, as determined by the City Manager, attainment of a significant achievement based on national, state, or professional department standards.

The City Manager shall determine, prior to employee’s embarking on the work and study required for the desired degree, credential or certification, whether the desired goal qualifies for the payment.

No more than three (3) such payments shall be paid to an individual during his or her tenure with the City.

8.3 City Training Day
Effective 2021, the City will close operations to the public for non-sworn personnel on the third Monday in October and provide a mandatory employee “Training Day”.

ARTICLE 9 MISC

9.1 MOU Negotiations Timing
At least six (6) months prior to the MOU expiring, management will initiate MOU negotiations with MEA.

9.2 Future Negotiations
The parties hereto acknowledge and agree that they have reached settlement regarding all total compensation and non-compensation items, and that said issues are settled through the period expiring June 30, 2026, provided that either party may request to meet and confer upon written notice given to the other party.

The parties therefore agree to waive any and all rights or obligations to meet and confer on any subject fully covered by this MOU with the exception of the economic re-opener, until a reasonable period prior to June 30, 2026.

MEA MOU July 1, 2023 – June 30, 2026 Page 17
ARTICLE 10 SAVINGS CLAUSE
If any Article or Section of this Memorandum of Understanding should be found invalid, unlawful or unenforceable by reason of any existing or subsequent enacted legislation or by judicial authority, all remaining Articles and Sections of this Memorandum of Understanding shall remain in full force and effect for the duration of the MOU. In the event of invalidation of any Article or Section, the City and the Association agree to meet within 30 calendar days of such invalidation for the sole purpose of meeting and conferring upon said Article or Section.

MEA MOU July 1, 2023 – June 30, 2026 Page 18
This MOU constitutes a full and complete agreement between the parties on all matters within the scope of representation.
__
Tori Hannah, City Manager Pro Tempore George Fuerst
City of Pacific Grove Management Employees’ Association (MEA)

Katy Suttorp, Negotiator, City Attorney’s Office Katie Clark Management Employees Association (MEA)
Leticia Livian, Human Resources Director
City of Pacific Grove

__
Date Date
RESOLUTION NO. 23 - ____________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

APPROVING THE MEMORANDUM OF UNDERSTANDING
WITH THE PACIFIC GROVE MANAGEMENT EMPLOYEES ASSOCIATION.

FINDINGS

2. This action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment; and

RESOLUTION

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds each recital set forth above to be true and correct, and by this reference incorporates each as an integral part of this Resolution.

SECTION 2. The City Council approves the attached Memorandum of Understanding with the Management Employees Association that covers the period July 1, 2023, through June 30, 2026.

SECTION 3. The City Manager is authorized to execute all documents and to perform all other necessary City acts to implement the Memorandum of Understanding.

SECTION 4. This resolution confers authority upon the City Manager to take all steps necessary to implement this MOU and authorizes budget adjustments if necessary to implement expenditures during FY 23/24, FY 24/25, and 25/26.

SECTION 5. This Resolution shall take effect immediately following its adoption.

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

AYES:

NOES:

ABSENT:

APPROVED:
_________________________________
__________________________

BILL PEAKE
Mayor
ATTEST:
_________________________________

KERRY LINDSTROM
Interim City Clerk
APPROVED AS TO FORM:
_________________________________

BRIAN PIERIK
City Attorney

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Agenda No. 12 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Erica Vega, Assistant City Attorney
MEETING DATE: November 01, 2023
SUBJECT: Introduction of Cannabis Licensing Ordinance and Cannabis Zoning Ordinance CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION

1. Request the City Attorney to read the title of Licensing Ordinance

2. Motion to waive further reading of the ordinance and introduce the Licensing Ordinance

3. Request the City Attorney to read the title of Zoning Ordinance

4. Motion to waive further reading and introduce the Zoning Ordinance

5. Direct that publication of these two ordinances will be satisfied by publication of a summary approved by the City Attorney

6. Other action(s) based on direction by the City Council related to this item

DISCUSSION
Pacific Grove voters approved Measures M and N at the November 8, 2022 general election. Measure M was an advisory measure asking the voters the following question: “Should the Pacific Grove City Council be authorized to amend the Municipal Code to allow retail sales of medical or recreational cannabis, limited to one single location within the City, at a location no closer than 1000 feet from any existing licensed Daycare/Preschools, Youth Center, and Schools, to engage in commercial cannabis activities?” Measure N established a tax on cannabis businesses at the rate of 6% of gross receipts from the retail sale of cannabis (storefront and delivery sales). Copies of Measure M and Measure N are attached to this report.

At the December 7, 2022 City Council meeting, the Council directed the City Manager and City Attorney to create a cannabis licensing program to authorize one cannabis retail storefront to operate in the City, consistent with the voter approval of Measure M.

Two draft ordinances have been prepared, a licensing ordinance and a zoning ordinance. The City Council previously reviewed the draft ordinances on May 17, 2023 and October 4, 2023. The Planning Commission reviewed the draft ordinances on August 10, 2023 and September 14, 2023 and has recommended approval of the ordinances. The ordinances have been updated to include changes recommended by the Planning Commission.

At the October 4, 2023 City Council meeting, the Council requested that the ordinances be brought forward for introduction and first reading, but that the staff report identify the outstanding items raised by Council Members and the Police Department at that meeting for further discussion and consideration.

Summary of Ordinances
Two ordinances are proposed to create a two-step regulatory framework that requires a proposed cannabis retailer to first obtain a license to operate from the City and then a conditional use permit. The allows the City to have regulations in place that address both the use (conditional use permit) and the user (license).

One license will be available to operate a storefront retail location, consistent with the Measure M advisory measure. Additionally, licenses will be available to medicinal cannabis retailers proposing to operate delivery-only with no walk-in customers allowed. There is no cap proposed on the number of delivery-only retail licenses. SB 1186 goes into effect on January 1, 2024, and prohibits a local agency from adopting or enforcing ordinances that prohibit or have the effect of prohibiting the retail sale by delivery of medicinal cannabis. The City Council will be the approval body for a license. The initial draft presented to the Council provided that the city manager would approve local licenses. Though no formal direction was provided on this subject, this change was made based on the tenor of comments made at the Council meeting.

The licensing process will involve review of the applicant’s business operations plan and the conduct of a background check. If approved, the license will be good for one year and must be renewed annually.

A licensee will be required to operate in compliance with State law and regulations, and the operational requirements included in the ordinance. The licensing ordinance calls for administrative rules to be approved by the city council that provide more detail on the implementation of the licensing application process and procedures. Draft rules will be brought to Council at a future meeting, and will include the proposed competitive process for selecting the sole licensee to operate a storefront retail location.

Once a license is issued by the City, the applicant can submit an application for a conditional use permit for their proposed location. The zoning ordinance allows the sole storefront retailer to be located in the C-1, C-D, C-FH or C-2 zones. Medicinal delivery-only retailers may be located in the I, C-FH, C-1 or C-2 zones. All retail locations must be at least 1,000 feet from a day care center, a youth center, a preschool, or a public or private school. The ordinance includes some standard conditions of approval, including conditions for odor control. However, conditions may also be applied case-by-case based on what is appropriate for the proposed site and use.

Outstanding Items for Discussion
Below is a list of the issues raised by members of the City Council at the October 4, 2023 meeting for further discussion. Also included in this list are recommendations received from the Police Department.

In many instances, the issue is addressed in the Department of Cannabis Control (DCC) Regulations.

Section 11.100.100.A of the licensing ordinance requires every licensee to comply with all applicable DCC Regulations. For the sake of brevity, where a topic is addressed in the DCC Regulations the list below includes a citation to that reference. All referenced DCC Regulations are included in the attachments to this report.

1. Costs to the City to Regulate: The Acting City Manager indicated that the costs are being studied as a part of an ongoing fee study update.

2. THC levels, Serving Size & Product Packaging: DCC Regulations 17301(b), 17304

3. Health Warnings: DCC Regulations 17403, 17406

4. Expanding Separation Requirements: Comments were raised to consider adding a requirement that a retailer be located at least 1,000 feet from a library or park. This is a policy decision within the Council’s purview. However, the Council should be cognizant of the impact such changes will have to the available sites.

5. Security Cameras: The Police Department suggested several changes specific to security cameras. 24-hour security surveillance. DCC Regulations 15044
Police Department Approves Placement of Security Cameras: If the requirements for placement of security cameras in DCC Regulation 15044 are not acceptable to the Police Department, the ordinance may be revised to include additional requirements.

No Changes Without Police Department Approval: If the requirements for placement of security cameras in DCC Regulation 15044 are not acceptable to the Police Department, the ordinance may be revised to include additional requirements.

Police Department Access to Security Cameras: Section 11.100.120.A. of the licensing ordinance requires a licensee to make video immediately available to the city on request for law enforcement purposes.

6. Requirement to Report Criminal Activity to Police Department: DCC Regulations 15035, 15036.

7. On-Site Security Personnel: DCC Regulation 15045

8. Hours of Operation: The Police Department has suggested reducing the permissible hours of operation to between 10 a.m. and 8 p.m. The ordinance as drafted reflects the hours of operation under the DCC Regulations (6:00 a.m. to 10:00 p.m.). The City may reduce the hours of operation.

9. Cash Payment of Taxes: The City has the discretion to determine the acceptable methods for the payment of taxes.

10. Specific Language Regarding Checking State Daycare Licensing Database: Language referencing the specific database that must be checked (the Department of Social Service’s Facility Lookup) to confirm a site is not within 1,000 feet of a licensed day care facility may be added.

11. Waste Handling: DCC Regulation 17223

12. Employee Badges & Premises Access: DCC Regulations 15042, 15043 13, Delivery Vehicle Requirements: DCC Regulation 15417.

14. No Cash Payment At Delivery Point: The Police Department suggested prohibiting cash payment for product at the point of delivery. The DCC Regulations do not address acceptable forms of payment from customers. It is our understanding that the legal cannabis market is still by and large cash-only.

Prohibiting cash payment at point of delivery may be construed as a regulation that has the effect of prohibiting the delivery of medicinal cannabis in violation of SB 1186.

OPTIONS

1. Introduce the draft ordinances

2. Not introduce the ordinances and provide staff with direction on proposed changes.

FINANCIAL IMPACT:

Estimated annual revenue up to $300,000; actual amount of annual revenue may be more or less than this estimate. The administrative costs are unknown, however the City is conducting a fee study with the intent to recover City costs associated with the cannabis program.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Draft Cannabis licensing ordinance
Draft Cannabis zoning ordinance
Combined State Cannabis Regulations
Public Comment
Public Comment
Public Comment
Public Comment
1 ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF PACIFIC GROVE, AMENDING CHAPTER

11.100 TO THE PACIFIC GROVE MUNICIPAL CODE

ESTABLISHING COMMERCIAL CANNABIS

LICENSING REGULATIONS
FACTS

1. In 1996, the voters of the State of California approved Proposition 215, which was codified as Health and Safety Code Section 11362.et seq., and entitled the Compassionate Use Act of 1996, which intended to enable seriously ill Californians to legally possess, use, and cultivate marijuana for medical use under limited, specified circumstances; and

2. In 2004, the California legislature enacted Senate Bill 420, the Medicinal Marijuana Program (the “MMP”), which, as codified in California Health and Safety Code Section 11362.7 et seq., was intended to clarify the CUA’s scope and immunize from criminal prosecution, under specified state laws, certain activities and conduct related to the provision of medicinal marijuana to qualified patients; and

3. On November 8, 2016, the voters of the State of California approved Proposition 64, entitled the “Control, Regulate and Tax Adult Use of Marijuana Act,” which legalizes and regulates recreational marijuana in California; and,

4. The State has established an integrated licensing and regulatory system for both medicinal and recreational marijuana businesses consistent with Propositions 215 and 64 entitled the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), codified in Business and Professions Code section 26000 et seq.; and

5. Business and Professions Code section 26200 expressly recognizes the ability of cities to completely prohibit all medicinal and recreational cannabis businesses or to allow and regulate such businesses; and,

6. A majority of the voters in Pacific Grove who voted on Measure M at the November 8, 2022 election voted in favor of Measure M, which was an advisory measure asking whether the electors supported amending the Municipal Code to allow one cannabis retailer in the City at a location at least 1000 feet from any existing licensed daycare/preschool, youth center, or school; and

7. In order to protect the public health, safety, and welfare, and consistent with the will of the voters of Pacific Grove, the City desires to amend the Municipal Code to allow one cannabis retailer to be located in the City consistent with Measure M.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing Facts are adopted as findings of the City Council as though set forth in fully within the body of this ordinance.

SECTION 2. The City Council finds that the adoption of this Ordinance is exempt from review under the California Environmental Quality Act (CEQA) pursuant to the common sense - 2 -
exemption (CEQA Guideline 15061(b)(3)) because it can be seen with certainty that there is no possibility that permitting one cannabis retail location to operate within the City may have a significant effect on the environment. Cannabis retail operations are small footprint and retailers are likely to operate within an existing vacant location rather than engage in new construction, and would likely qualify for the in-fill development exemption (CEQA Guideline 15332). In the event the sole retailer permitted in Pacific Grove does not qualify for the in-fill development exemption or another CEQA exemption, CEQA review would be conducted concurrently with project processing, ensuring that any environmental impacts are less than significant.

SECTION 3. Pacific Grove Municipal Code Chapter 11.100 shall be amended in its entirety to read as follows:

CHAPTER 11.100

CANNABIS

11.100.010 Statement of purpose.

11.100.020 Relationship to other laws.

11.100.030 Definitions.

11.100.040 Local license in addition to business license or other permit.

11.100.050 Local license required.

11.100.060 Local license application process.

11.100.070 Conditions of approval, administrative rules.

11.100.080 Changes and modifications of local licenses.

11.100.090 Renewal of local license.

11.100.100 Cannabis business operational requirements.

11.100.110 Limitations on city’s liability

11.100.120 Inspections

11.100.130 Enforcement; Suspension and Revocation of License.

11.100.140 Residential cannabis cultivation.

11.100.150 Consumption of cannabis.

11.100.160 Exceptions.

11.100.010 Statement of purpose.

A. This chapter shall provide for the regulation and licensing of medicinal and adultuse cannabis businesses throughout the city in conformance with applicable state and local laws and regulations pertaining to medicinal and adult-use cannabis.

B. The city council finds that it is necessary for the city to adopt local licensing standards for medicinal and adult-use cannabis businesses for the purpose of controlling and regulating the sale of medicinal cannabis and medicinal cannabis products to qualified patients, and adult-use cannabis and adult-use cannabis products to adults twenty-one years of age and over.

C. The purpose of this chapter is to regulate all commercial cannabis activity in the city, as defined in the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), to the extent authorized by state law and in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety and general welfare of residents and businesses within the city.
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11.100.020 Relationship to other laws.

A. Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in MAUCRSA. In the event of any conflict between the provisions of this chapter and the provisions of MAUCRSA or any other applicable state or local law or regulation, the more restrictive provision shall control.

B. Except as expressly stated herein, cannabis businesses must comply with all other city codes and regulations. Nothing in this chapter shall be construed as permitting a cannabis business to operate at any time in a manner that is in violation of other applicable state and local laws.

11.100.030 Definitions.

Unless otherwise defined herein, the terms in this chapter shall have the same meaning as set forth in MAUCRSA and any rules promulgated pursuant thereto. In addition, the following terms shall be defined as follows:
“Adult-use cannabis” means cannabis and cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals. "Cannabis business" means any person engaged in commercial cannabis activity. "City" means Pacific Grove, California.
"City manager" shall mean the city manager of the city or their designee. "Identification card" or "ID card" means a valid identification card issued pursuant to Section 11362.7 et seq., of the California Health and Safety Code. "Identification card holder" or "ID card holder" means an individual who is a qualified patient who has applied for and received a valid ID card pursuant to Article 2.5 of Chapter 6 of Division 10 of the California Health and Safety Code. "Licensed premises" means a premises for which a local license has been issued pursuant to this chapter.
"Licensee" means a person who has been issued a local license pursuant to this chapter.
"Local license" means a license issued pursuant to this chapter. A “provisional local license” is a local license issued to a storefront retail cannabis business that has not secured a use permit for a location to operate their storefront retail business. "Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. “Medicinal cannabis” means cannabis and cannabis products that are intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
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"Medicinal cannabis patient" means both a qualified patient without an identification card and an ID card holder.
“Owner” shall have the definition provided in MAUCRSA, as it may be amended from time to time, which as of the date of the adoption of this definition means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the person applying for a license.
"Physician," as used in this chapter, shall mean an individual who possesses a license in good standing to practice medicine or osteopathy from the state of California. "Qualified patient" shall have the meaning set forth in Section 11362.7(f) of the California Health and Safety Code.
“Retail, delivery-only” shall mean a cannabis business that does not allow on-site sales of cannabis to customers, and has or will have a Type 9 license from the California Department of Cannabis Control.
“Retail, storefront” shall mean a cannabis business that has a physical location from which cannabis is sold to retail customers on-site, and has or will have a Type 10 license from the California Department of Cannabis Control.
"State law(s)" shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medicinal Marijuana Program Act); the MAUCRSA, and all other applicable laws and regulations of the state of California. "State license" means a state license issued under MAUCRSA, and includes both an A-license and an M-license, as well as a testing laboratory license. "State licensing authority" shall mean the state agency responsible for the issuance, renewal, or reinstatement of a state license, or the state agency authorized to take disciplinary action against a state licensee.

11.100.040 Local license in addition to business license or other permit.

The local license required by this chapter shall be in addition and supplemental to any other business registration or any permit required by any ordinance of the city.

11.100.050 Local license required.

A. It is unlawful to operate any cannabis business in the city without first having obtained a local license under this chapter.

B. The City shall not grant a license to any cannabis business proposing to engage in cannabis cultivation, manufacturing, distribution, or laboratory testing. The City may - 5 -
approve a license for a cannabis business proposing to operate as a cannabis retailer subject to the following limitations:

1. No more than one (1) local license to engage in storefront retail sales shall be active in the City at any time.

2. A license for delivery-only retail sales shall only be granted to a business engaging exclusively in retail sale of medicinal cannabis and medicinal cannabis products.

No license shall be granted to a delivery-only retailer for the retail sale of adult-use cannabis or adult-use cannabis products.

C. The city may grant a local license prior to the applicant having obtained a state license. A cannabis business must possess the requisite state and local licenses and a use permit prior to receiving a certificate of occupancy from the city.

11.100.060 Local license application process.

A. For the single storefront retail license, there shall be an initial 60-day application period, the precise days of which shall be determined by the city manager. The city manager may open up subsequent 60-day application periods if there is no active local license for a storefront retail cannabis business in the City.

B. An application for a local license shall be made upon the form prescribed by the city manager and accompanied by the application fee established by resolution of the city council. The application shall include the following basic information, in addition to any additional information that the city manager requests.

1. An operating plan for the proposed cannabis business including the following information:
a. A general description of the types of products and services to be provided by the facility;
b. A statement confirming whether delivery service of cannabis to any location outside the premises will be provided and the extent of such service, and in the event delivery is provided, a detailed delivery plan detailing how the retailer will comply with all requirements of this chapter, MAUCRSA, and any other applicable state or local laws.

2. Authorization for the city manager to seek verification of the information contained within the application and to conduct background checks of the owners of the cannabis business. If the background check shows that any owner has been convicted of a crime listed in Business & Professions Code Section 26057(b)(4)(A)-(E) the application shall be denied.

3. Proof of the nature of the cannabis business's organizational status, such as articles of incorporation, by-laws, organizational minutes, partnership agreements, or such other documentation acceptable to the city.

C. The city manager shall conduct an initial review of an application submitted to determine completeness. All complete applications shall be reviewed under the criteria set forth in administrative rules adopted pursuant to Section 11.100.070.

D. The one (1) storefront retail local license shall be provisionally granted to the applicant who is selected pursuant to the review and selection criteria set forth in the administrative rules. From the date the local license is provisionally approved, the applicant will have twelve (12) months to secure approval of a use permit for a premises, in addition to - 6 -
any other land use permits or entitlements that may be required by this code for the premises.

If the applicant who received a provisional license does not obtain the use permit or any other required land use permits or entitlements for the premises within this time frame, then the provisional license shall become null and void and a provisional license shall be granted to another applicant in the manner specified in the administrative rules.

E. A local license issued pursuant to this chapter shall specify the date of issuance, the expiration date, the name of the licensee, and whether the cannabis business is storefront retail or delivery-only retail. A provisional local license is valid for one (1) year from the date of issuance. A provisional local license shall automatically lose its provisional status once a use permit is granted for a premises to operate the business. The term of the license shall be valid for one (1) year from the date the use permit for the premises is approved.

11.100.070 Conditions of approval, administrative rules.

A. The city council shall have the authority to approve or deny an application for a local license. The city council may place conditions upon the approval of any local license which are, in the opinion of the city council, reasonably related to the protection of the health, safety and welfare of the general public.

B. The city council shall establish by resolution rules, policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application process, including but not limited to those required by Section 11.100.060.

11.100.080 Changes and modifications of local licenses.

In addition to any applicable requirements in Chapter 23.92 of this code, the following requirements apply for transfers of or changes to the ownership of a licensee, A. Subsequent to the issuance of a local license, the licensee shall report any transfer of ownership in the cannabis business to the city manager on forms prescribed by the city manager and pay the application fee established by resolution of the city council.

B. A change of ownership that solely involves a previously approved owner no longer being an owner of the cannabis business shall be reported to the city manager within thirty calendar days of the change. The City will administratively remove a previously approved owner from a license only if notarized statements are submitted by all approved owners consenting to the change, or the change is mandated by order of a court of competent jurisdiction.

C. A change in ownership that involves adding a new owner to the previously approved ownership must be approved by the city council in advance and a background check must be conducted on the proposed new owner. The city council shall have the sole and absolute discretion to approve or deny a proposed change of ownership that involves the addition of a new owner. All owners must submit notarized statements agreeing to the addition of a new owner to the business.

11.100.090 Renewal of local license.

A. A cannabis business that desires to renew its license shall apply for the renewal no less than sixty (60) calendar days prior to the local license's expiration date. If the cannabis business files a renewal application within sixty (60) calendar days prior to expiration, the - 7 -
cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The city manager may accept or reject such late filing in its discretion. The city manager may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is pending final action.

B. An application for renewal shall be submitted on forms provided by the city manager, accompanied by the application fee established by resolution of the city council.

The following information shall be submitted as a part of the renewal application:

1. Verification that no changes to the ownership of the cannabis business has occurred since last approved by the city manager.

2. Verification that the licensee is still entitled to the possession and use of the premises for which a use permit has been granted.

3. Any other information that the city manager deems necessary to determine whether to renew the local license.

C. The city council shall renew a local license if the licensee has submitted a complete application and paid the application fee, unless the city council finds that there are grounds to suspend or revoke the license as provided in Section 11.100.210. Notwithstanding the foregoing, the city council in its discretion may elect not to renew any local license if it determines that the licensed premises has not been used for a cannabis business, without reasonable cause as determined by the city council, during the term of the license.

D. Unless administratively continued pursuant to subsection A, a local license is immediately invalid upon expiration and the cannabis business shall cease operations. If a local license expires, the city council may approve a renewal of the expired license at any time up to three months from the expiration date of the license. After the license has been expired for three months, the license may not be renewed by the city council, and the holder of the expired license must apply for and obtain a new cannabis license to resume operations.

11.100.100 Cannabis business operational requirements.

All cannabis business must comply with the requirements set forth in this section.

A. General Obligation to Operate in Compliance. A cannabis business shall operate in compliance with all applicable state and local laws and regulations governing cannabis businesses.

B. General Obligation to Pay Taxes. A cannabis business must pay all applicable taxes pursuant to federal, state, and local law, including but not limited to state and local sales and use taxes and state excise taxes.

C. Age Requirement. A cannabis business shall not allow an individual less than twenty-one years of age to work within the licensed premises or handle cannabis and cannabis products.

D. Age Restrictions. A cannabis business may not permit an individual less than twenty-one years of age to enter, or be within, its licensed premises, except that a cannabis business with an M-license from the state may allow persons eighteen years of age or older within the licensed premises if they are an ID card holder or qualified patient with physician's recommendation from a licensed physician.
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E. Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times.

F. Cannabis Consumption on Licensed Premises. Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at a licensed premises is prohibited. "Licensed premises" as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas. A sign shall be posted at each entrance to a licensed premises that clearly and legibly states, "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Pacific Grove Municipal Code." G. Prohibition on Alcohol and Tobacco Sales, Distribution, or Consumption on Licensed Premises. A cannabis business shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the licensed premises.

H. Advertising. A cannabis business shall not advertise in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products.

It shall be unlawful for any cannabis business to make any claims that a product is safe because it is tested. All advertisements, including off-site advertising signs, shall comply with Chapter 15 of MAUCRSA.

I. Display of License. A cannabis business shall display a copy of its local license issued pursuant to this chapter in a conspicuous place at or near the entrance to the licensed premises.

J. No Physician Evaluations on Licensed Premises. A cannabis business shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician's recommendation for medicinal cannabis within its licensed premises. Cannabis businesses shall not offer or provide any form of remuneration to a physician who provides physician's recommendations for medicinal cannabis.

K. Community Relations Designee. A cannabis business must provide the city with the name, phone number, facsimile number, and email address of an on-site community relations representative or staff member or other representative whom the city can contact regarding operating concerns associated with the cannabis business. The cannabis business shall report any change in their community relations designee to the city within ten calendar days.

L. Security Requirements. The licensed premises of a cannabis business must comply with all of the following security requirements:

1. Video Surveillance. The licensed premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection. a. Security cameras and digital storage of recordings shall be maintained in good condition and used in an on-going manner, twenty-four hours per day, seven days per week.
b. The security system must maintain at least 90 days of digitally recorded video for each security camera in the licensed premises. Security footage should be stored in an MPEG4, MJPEG, H.264, or another format approved by the city manager in writing. c. Security cameras must provide adequate and sufficient coverage for the facility, which must include, but need to be limited to, all limited access areas, all areas of - 9 -
ingress and egress, point of sale, the public areas, storage areas, and any other areas as required by this chapter and the MAUCRSA.
d. The video surveillance system must be equipped with a failure notification system that provides prompt notification to the manager of record of the licensed premises of the cannabis business of any surveillance interruption or complete failure of the surveillance system that lasts longer than fifteen minutes.
e. The video surveillance system shall have sufficient battery backup to support a minimum of twenty-four hours of recording in the event of a power outage.

2. Alarm System. The licensed premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows, operated, and monitored by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

3. Signage Requirement. The licensed premises must comply with the following signage requirements.
a. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera." b. Limited access areas shall be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which shall state, "Limited Access Area—Authorized Personnel Only."

4. Lighting. The business entrance(s) and all window areas shall be illuminated during evening hours. The cannabis business shall comply with the city's lighting standards regarding fixture type, wattage, illumination levels, and shielding.

5. Commercial-Grade Locks. All points of ingress and egress to a licensed premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

6. Notification of City Manager and Law Enforcement. A cannabis business shall notify the city manager and the appropriate law enforcement authorities within twentyfour hours after discovering any of the following:
a. Significant discrepancies identified during inventory; b. Diversion, theft, loss, or any criminal activity involving the retailer or any employee or agent of the retailer;
c. The loss or unauthorized alteration of records related to cannabis, cannabis patients, primary caregivers, or retailer employees or agents; or d. Any other breach of security.

M. Subletting Prohibited. Licensees are not authorized to sublet any portion of a licensed premises for any purpose.

N. Recordkeeping. Cannabis businesses shall keep and maintain all records specified in Chapter 16 of the MAUCRSA and shall make the same available for inspection and examination of the city manager or their duly authorized representatives during standard business hours of the licensed facility or at any other reasonable time. Cannabis businesses are required to exercise due diligence in preserving and maintaining all required records. - 10 -
O. Transactions. Licensees shall only do business with cannabis businesses that are licensed or permitted to do business in their respective jurisdictions.

P. Limited Hours of Operation. A retailer may only be open to the public and engage in sales between the hours of 8:00 a.m. and 10:00 p.m.

Q. Window Displays. Cannabis, cannabis products and cannabis paraphernalia shall not be placed in a window display or otherwise placed in a manner primarily intended for individuals outside of the premises to view the products.

R. Cannabis Paraphernalia Sales. Retailers may sell or otherwise provide equipment, supplies, and paraphernalia used to consume cannabis and cannabis products.

S. Electronic Point-of-Sale System Required. Retailers must have an electronic point of sale system. The electronic point of sale system must be capable of producing an electronic or automatic paper record for all transactions associated with any product sold, rented, or otherwise provided to the customer.

T. No Sales of Expired Product. A retailer may not sell any expired products, cannabis or cannabis products. A retailer shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

U. Handling of Edible Cannabis Products. A retailer that possesses edible cannabis products shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

V. Delivery of Cannabis and Cannabis Products. A retailer that provides delivery service shall comply with the following requirements:

1. The retailer shall not delivery cannabis or cannabis products to any location outside of California or to any location within California where the delivery of cannabis or cannabis products has been prohibited by the city or county.

2. The delivery service must be approved by the city manager as a part of the licensing process. The deliveries must be conducted in accordance with any relevant state laws, this code, any applicable local laws in the delivery location, and any conditions imposed upon the license.

3. The retailer must keep in place standard operating procedures that ensure the safety and security of those individuals engaging in delivery and the and security of all cannabis being delivered, including procedures to prevent diversion.

4. A retailer may only deliver cannabis to a specific street address requested by the purchaser. Delivery to parks, schools or any other public facilities is prohibited.

5. Upon arrival at the delivery address and prior to transferring any cannabis or cannabis products, the delivery person must verify and confirm that the identity of the recipient is the same as the person who requested the delivery and that the person is either twenty-one years of age or a qualified patient or primary caregiver.

6. A retailer shall report to the city manager and local law enforcement any vehicle accidents, diversions, losses, or other reportable incidents such as thefts or suspicious activity, that occur during transportation and delivery, within twenty-four hours.

7. The delivery shall keep a delivery manifest that includes the following information:
a. All cannabis that will be transported, accurately inventoried; - 11 -
b. Departure date and approximate time of departure;
c. Arrival date and approximate time of arrival;
d. Name, address, local license number and CUP number of the originating cannabis business;
e. Name and address of the individual requesting the delivery; f. Delivery vehicle make, model, and license plate number; and g. Name and signature of the individual transporting the cannabis.

8. Sale of Live Plants. A retailer may sell and offer for sale seeds and immature cannabis plants, but shall not sell or offer for sale live mature cannabis plants. The retailer may provide light and water to immature cannabis plants being offered for sale but may not engage in any other cultivation activity. For the purposes of this provision, an immature cannabis plant is defined as a non-flowering cannabis plant that is shorter and narrower than 18 inches.

11.100.110 Limitations on City’s liability.

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any local license pursuant to this chapter or the operation of any cannabis business approved for such local license pursuant to this chapter.

As a condition of approval a local license granted under this chapter, the applicant or its legal representative shall:

A. Indemnify and hold the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business and delivery of cannabis as provided in this chapter; and
B. Maintain insurance in the amounts and of the types that are acceptable to the city pursuant to guidelines and policies set forth by the city; and C. Name the city as an additionally insured on all city-required insurance policies; and
D. Defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a local license or the operation of the cannabis business; and
E. Reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related to the city's approval of a local license or use permit. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.

11.100.120 Inspections.

A. Recordings made by security cameras at any cannabis business shall be made immediately available to the city manager upon verbal request for law or regulatory enforcement and criminal investigation purposes. Such recordings shall be considered confidential and shall not be released to the public pursuant to Government Code Section 7923.600 without the consent of the licensee.
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B. The city manager shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this code, state law, and other applicable laws and regulations. Any cannabis business licensed pursuant to this chapter may be required to demonstrate, upon demand by the city manager that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.

C. The city manager shall have the right to inspect records of medicinal cannabis patients and primary caregivers that have made purchases of medicinal cannabis or medicinal cannabis products from a retailer for the sole purpose of determining whether any and all such individuals are qualified to make such purchases. Such inspections of records shall not be used for any other purposes, nor shall the records be removed off-site by the city without a court order.

D. The city manager may delegate an act required to be performed pursuant to this section to any code enforcement officer or official of the city, including, without limitation, the chief of police, the fire chief, the building official, the finance director, the city attorney, or any designee of such officers or officials.

E. Applicants and licensees must cooperate with the city manager and his designees who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter.

11.100.130 Enforcement; Suspension and Revocation of License.

A. The provisions of this chapter may be enforced by the city manager by any means provided for in Chapter 1.16 or Chapter 1.19 of this code in addition to any and all other remedies, civil, equitable or criminal, afforded to the city under the law. Any use or condition caused, or permitted to exist, in violation of any provision of this chapter is hereby deemed to be a public nuisance and may be summarily abated by the city pursuant to Code of Civil Procedure Section 731 or by any other remedy available to the city. Any violation of this chapter is declared to be a public nuisance per se contrary to the public interest and will, at the discretion of the city, be subject to a cause of action for injunctive relief.

B. Any violation of this chapter shall constitute a misdemeanor and a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be enforced pursuant to Chapters

1.16 and 1.19 PGMC.

C. In addition to any other remedies available to the city under the law, a license issued under the terms of this chapter may be suspended or revoked by the city council if they conclude any of the following:

1. The cannabis business or licensee has violated any of the requirements of this chapter, Chapter 23.92, or the applicable use permit.

2. The cannabis business is being operated in a manner which constitutes a nuisance.
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3. The cannabis business is being operated in a manner which conflicts with or violates State Laws.

4. A licensee’s use permit issued pursuant to Chapter 23.92 of this code has been terminated or revoked.

5. A licensee’s state license has been suspended, terminated, or revoked.

11.100.140 Residential cannabis cultivation
A. All cannabis cultivation within city limits is prohibited except that a person, 21 years of age or older, may cultivate no more than six living cannabis plants inside a private residence, regardless of the number of persons that reside in the private residence, or inside a fully enclosed and secure accessory structure to a private residence located upon the grounds of that private residence. Such cultivation shall only occur in residences and accessory structures that are fully enclosed and secured against unauthorized entry.

B. The primary use of the property must be for a private residence, and cultivation must not prevent the property owner’s primary use as a residential use. The property shall remain at all times a private residence with a legal and functioning kitchen, bathroom(s) and bedroom(s) for their intended use and such cultivation shall not prevent the property’s primary use as a residential use. The cultivation activities shall be conducted in a manner that is child resistant.

C. If a private residence is not occupied or inhabited by the owner of the private residence, then no persons living in the residence may cultivate cannabis without written consent signed by the owner expressly allowing cannabis cultivation to occur at the private residence.

D. Persons cultivating cannabis in a residence shall comply with all applicable building code requirements set forth in the Pacific Grove Municipal Code.

E. There shall be no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of cannabis cultivation.

F. All private cannabis cultivation under this section shall comply with Health and Safety Code Section 11362.2.

G. The cannabis cultivation area shall not adversely affect the health or safety of nearby residents by creating dust, glare, heat, noise, noxious gases, odor, smoke, traffic, vibration or other impacts and shall not be hazardous due to the use or storage of materials, processes, products or wastes, or from other actions related to cultivation.

H. The outdoor cultivation of cannabis is prohibited within city limits.

11.100.150 Consumption of cannabis
Smoking and vaporizing of cannabis and cannabis products are prohibited in all public places and any place that is open to the public; reference Chapter 11.24 PGMC. Additionally, consumption and the use of any and all forms of cannabis, including edible cannabis product, shall be prohibited in all public places.

11.100.160 Exceptions
- 14 -
A. To the extent that the following activities are permitted by state law, nothing in this chapter shall prohibit a person 21 years of age or older from:

1. Possessing, processing, purchasing, transporting, obtaining or giving away to persons 21 years of age or older without compensation whatsoever not more than 28.5 grams of cannabis not in the form of concentrated cannabis; or

2. Possessing, processing, purchasing, transporting, obtaining or giving away to persons 21 years of age or older without compensation whatsoever up to eight grams of cannabis in the form of concentrated cannabis; or

3. Possessing, smoking or ingesting cannabis or cannabis products in a manner consistent with California Health and Safety Code Section 11362.3.

B. This chapter shall not prohibit any person from transporting cannabis through the jurisdictional limits of the city for delivery or distribution to a person located outside of the city, where such transport does not involve delivery or distribution within the jurisdictional limits of the city.

SECTION 4. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement this Ordinance.

SECTION 5. Severability. If any provision, section, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 6. In accord with Article 15 of the City Charter, this ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE THIS day of , 2023, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED
BILL PEAKE, Mayor
ATTEST:

DATED:
- 15 -
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN A. PIERIK, City Attorney
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF PACIFIC GROVE, ADDING CHAPTER

23.92 TO THE PACIFIC GROVE MUNICIPAL CODE

ESTABLISHING CANNABIS BUSINESS ZONING

REGULATIONS
FACTS

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing Facts are adopted as findings of the City Council as though set forth in fully within the body of this ordinance.

SECTION 2. The City Council finds that the adoption of this Ordinance is exempt from review under the California Environmental Quality Act (CEQA) pursuant to the common sense 2 exemption (CEQA Guideline 15061(b)(3)) because it can be seen with certainty that there is no possibility that permitting one cannabis retail location to operate within the City may have a significant effect on the environment. Cannabis retail operations are small footprint and retailers are likely to operate within an existing vacant location rather than engage in new construction, and would likely qualify for the in-fill development exemption (CEQA Guideline 15332). In the event the sole retailer permitted in Pacific Grove does not qualify for the in-fill development exemption or another CEQA exemption, CEQA review would be conducted concurrently with project processing, ensuring that any environmental impacts are less than significant.

SECTION 3. The City Council makes the following findings required for a zoning ordinance amendment.

A. The proposed amendment is consistent with the general plan and, if applicable, the certified local coastal program.

This ordinance is consistent with General Plan Goal 1: “Provide for orderly, wellplanned, and balanced development consistent with the historic nature of Pacific Grove, the capacity of the City’s infrastructure, and ability to assimilate new growth.” This ordinance establishes regulations to allow for a new type of commercial use to be established in the City in limited quantities. Cannabis retailers will likely move into existing vacant structures and as such will not create new burdens on existing infrastructure. The ordinance is also consistent with General Plan Policy 2: “Ensure new development is compatible with adjacent existing development.” The ordinance limits cannabis retailers to specific commercial and industrial zones and includes separation requirements to ensure the businesses do not locate in close proximity to sensitive uses.

B. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare.

This ordinance will facilitate access to medicinal and adult-use cannabis in a safe manner consistent with all applicable State regulations. The ordinance limits the number of storefront retailers that may open in the City to one, which ensures there will not be an overconcentration of these uses. Delivery-only retailers will only be permitted to sell medicinal cannabis. The ordinance requires odor control systems to be installed to ensure that nuisance odors do not impact neighbors and the general public.

C. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

This ordinance relies on the existing use permit process as the mechanism for the approval of cannabis retailers. The ordinance incorporates existing enforcement provisions as well. There are no inconsistencies between the proposed ordinance and existing provisions of the zoning code.
3 SECTION 4. Chapter 23.92 (Cannabis Businesses) is hereby added to the Pacific Grove Municipal Code to read as follows:

CHAPTER 23.92 CANNABIS BUSINESSES

23.92.010 Purpose.

23.92.020 Relationship to other laws.

23.92.030 Definitions.

23.92.040 Use permit required.

23.92.050 Use permit application.

23.92.060 Findings for approval of use permit.

23.92.070 Separation requirements.

23.92.080 Conditions of approval.

23.92.090 Limitations on City’s liability.

23.92.100 Inspections.

23.92.110 Enforcement.

23.92.010 Purpose.

A. The purpose of this chapter is to regulate cannabis business land uses, as permitted by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Section 26200 of the California Business and Professions Code), in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety and general welfare of residents and businesses within the city.

B. This chapter is further adopted and established pursuant to the specific authority granted to Pacific Grove in Section 7 of Article XI of the California Constitution and Section 26200 of the California Business and Professions Code. This chapter shall govern all cannabis businesses within the jurisdiction of Pacific Grove.

23.92.020 Relationship to other laws.

A. In the event of any conflict between the provisions of this chapter and the provisions of Medicinal and Adult-Use Cannabis Regulation and Safety Act or any other applicable state or local law, the more restrictive provision shall control.

23.92.030 Definitions.

Unless otherwise defined herein, the terms in this chapter shall have the same meaning as set forth in Medicinal and Adult-Use Cannabis Regulation and Safety Act and any rules promulgated pursuant thereto. In addition, the following terms shall be defined as follows:
“Adult-use cannabis” means cannabis and cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals.
4 “Cannabis business” means any person engaged in commercial cannabis activity as defined in California Business and Professions Code Section 26001. "Local license" means a license granted by the City pursuant to Chapter 11.100 of this code. "Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. “Medicinal cannabis” means cannabis and cannabis products that are intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Retail, delivery-only” shall mean a cannabis business that does not allow on-site sales of cannabis to customers, and has or will have a Type 9 license from the California Department of Cannabis Control.
“Retail, storefront” shall mean a cannabis business that has a physical location from which cannabis is sold to retail customers on-site, and has or will have a Type 10 license from the California Department of Cannabis Control.
"State law(s)" shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medical Marijuana Program Act); MAUCRSA, and all other applicable laws and regulations of the state of California.

23.92.040 Use permit required.

A. No person may operate a cannabis business of any type in the city unless they are in compliance with the following:

1. A use permit has been approved for the cannabis business and remains valid; and

2. A local license has been approved for the cannabis business and remains valid; and

3. A State license to operate the cannabis business has been approved and remains valid.

B. Section 23.70.080(a) of this code shall govern and apply to use permits for cannabis businesses applied for or obtained pursuant to this chapter unless this chapter expressly states otherwise. All requirements contained in this chapter shall be in addition to the applicable requirements of Section 23.70.080(a).

23.92.050 Use permit application.

A. An application for a use permit shall be filed with the planning director on the official form supplied by the city and shall be accompanied by the application fee established by resolution of the city council, as may be amended from time to time.

B. An application for a use permit shall include, but shall not be limited to, the following information:

1. Proof that the applicant has received a local license, and the local license is in good standing.
5 3. The address of the proposed cannabis business.

4. A site plan and floor plan of the cannabis business denoting the use of areas within the cannabis business, including storage, employee areas, restrooms, areas of ingress and egress, limited access areas, and restricted access areas, if included. The plans shall also note the locations of proposed exterior lighting and security cameras.

5. The name and address of the person that owns the real property upon which the cannabis business is to be operated. In the event the applicant does not legally own the property, the application must be accompanied by a notarized acknowledgement from the person that owns the property that a cannabis business will be operated on his or her property.

6. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

7. Authorization for the planning director to seek verification of the information contained within the application.

8. Any such additional and further information as is deemed necessary by the planning director to administer this section or this chapter.

C. The planning director and appropriate city staff shall review, verify and investigate all information on the application and prepare a report for the planning commission incorporating the findings of such investigation and verification, including, but not limited to, the suitability of the proposed location, and the applicant's compliance with the requirements of this chapter, Chapter 11.100 and Section 23.70.080(a).

23.92.060 Findings for approval of use permit.

A. The planning commission shall not hold a public hearing on or approve any application for a use permit to operate a cannabis business unless the applicant holds a local license in good standing.

B. In addition to the findings set forth in Section 23.70.080(a)(4) of this code, a use permit for a cannabis business shall only be granted subject to the following additional findings:

1. The cannabis business fully complies with and meets all operating criteria required pursuant to state laws, Chapter 11.100 of this code, any other provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval in the use permit; and

2. The cannabis business will be located in one of the following zones:
a. For storefront retail, the use will be located in the C-1, C-D, C-FH or C2, zone. b. For delivery-only retail, the use will be located in the I, C-FH, C-1 or C2 zone.

3. The cannabis business meets the separation requirements in Section 23.92.070. 6 C. The planning commission may deny an application for a use permit if it determines that one or more of the findings required by Section 23.70.080(a)(4) or Section

23.92.060(b) of this code cannot be made.

D. Based on the information set forth in the application and city staff's report and testimony presented at the public hearing, the planning commission may impose reasonable conditions on the proposed cannabis business in addition to those specified in and required to be included in every use permit granted under this chapter.

23.92.070 Separation requirements.

A. A use permit for a cannabis business shall not be approved unless the proposed cannabis business will be located more than 1,000 feet from a day care center, a youth center, a preschool, or a public or private school.

B. All distances specified in this section shall be measured in a straight line, without regard to intervening structures or topography, from the nearest point on the property line on which the cannabis business is or will be located, to the nearest property line of the parcel where such use is located.

C. For the purposes of this section the following definitions apply:

1. “Day care center” means a child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers, and includes child care centers licensed pursuant to California Health & Safety Code Section 1596.951.

2. “Youth center” means any facility that is operated by a public agency or non-profit entity with the sole purpose of providing educational and/or recreational services to minors. Dance studios, gymnasiums, martial arts studios, or other similar uses that provide services to both adults and minors shall not be considered a youth center.

3. “Public or private school” means any location appearing in the California Department of Education School Directory as the location of a public or private school.

23.92.080 Conditions of approval.

A use permit for a cannabis business shall be subject to the following conditions of approval.

1. The premises must be equipped with an odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside the cannabis business, anywhere on adjacent property or public rightsof-way, on or about any exterior or interior common area walkways, hallways, breeze-ways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis business. As such, cannabis businesses must install and maintain the following equipment or any other equipment which the City determines has the same or better effectiveness:
a. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or
7 b. An air system that creates negative air pressure between the cannabis businesses' interior and exterior so that the odors generated inside the cannabis business are not detectable outside the cannabis business.

2. The applicant or its legal representative shall indemnify and hold the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business; defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a use permit or the operation of the cannabis business; reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related to the city's approval of a conditional use.

3. All windows on the premises of the cannabis business shall be appropriately secured and cannabis securely stored.

4. All cannabis businesses shall comply with the city's lighting standards in Section 23.31.040, as applicable, including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

5. All cannabis businesses and all equipment used in the conduct of the business, must be operated in compliance with all applicable state and local laws and regulations, including all building, electrical, and fire codes, and in compliance with the businesses' state and local licenses.

6. For delivery-only retail, the business will only sell medicinal cannabis and medicinal cannabis products. The sale of adult-use cannabis or adult-use cannabis products is prohibited.

7. The cannabis business shall not engage in cultivation, manufacturing, distribution, or laboratory testing of cannabis, and shall limit its commercial cannabis activities to those permitted by a State retail license.

8. On-site signage for a cannabis business that is viewable from the exterior of the cannabis business shall comply with all local signage laws applicable to the licensed premises, including Chapters 17.251 and 17.254 of this code. Signage may not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations.

23.92.090 Limitations on City’s liability.

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any use permit pursuant to this chapter or the operation of any cannabis business approved for such permit pursuant to this chapter.

23.92.100 Inspections.

A. Recordings made by security cameras at any cannabis business shall be made immediately available to the planning director or designee upon verbal request for the purposes of determining compliance with this chapter and the cannabis business' use permit.

B. The planning director or designee shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections 8 to observe and enforce compliance with this chapter and the cannabis business' use permit.

Such inspections shall be limited to observing the premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this code, state law, and other applicable laws and regulations.

C. Applicants and permittees must cooperate with employees and investigators of the city who are conducting inspections or investigations relevant to the enforcement of this chapter. No applicant or permittee shall by any means interfere with, obstruct or impede the any city official from exercising their duties under the provisions of this chapter and all rules promulgated pursuant to it.

23.92.110 Enforcement.

The operation of a cannabis business in violation of any conditions of approval or the provisions of this chapter or Section 23.70.080(a) is a violation of this code, and a public nuisance. The city may seek to remedy such violations by any means provided for in law or equity, including but not limited to the enforcement mechanisms and remedies provided for in Chapters 1.16 and 1.19 of this code, or take action to revoke the use permit.

Revocation may be effected by the planning commission after a public hearing to which the operator has had 10 days’ notice by certified mail, and in which the planning commission finds that the cannabis business has not complied with one or more use permit conditions or requirements of this chapter. In the event that service by certified mail is not effected, service may be by personal service on an owner, or if personal service is not effected, the property shall be posted with a notice of the hearing, and a copy of the notice shall be published in an official newspaper of this city.

SECTION 5. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement this Ordinance.

SECTION 6. Severability. If any provision, section, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 7. In accord with Article 15 of the City Charter, this ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE THIS day of , 2023, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED
9 BILL PEAKE, Mayor
ATTEST:

DATED:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN A. PIERIK, City Attorney
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 61 of 224 §15035. Notification of Criminal Acts, Civil Judgments, Violations of Labor Standards, and Revocation of a Local License, Permit, or Other Authorization After Licensure.
(a) A licensee shall ensure that the Department is notified in writing of a criminal conviction of any owner, either by mail or electronic mail, within 48 hours of the conviction. The written notification to the Department shall include the date of conviction, the court docket number, the name of the court in which the licensee was convicted, and the specific offense(s) for which the licensee was convicted. (b) A licensee shall ensure that the Department is notified in writing of a civil penalty or judgment rendered against the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the verdict or entry of judgment, whichever is sooner. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against the licensee.
(c) A licensee shall ensure that the Department is notified in writing of an administrative order or civil judgment for violations of labor standards against the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the order. The written notification shall include the date of the order, the name of the agency issuing the order, and a description of the administrative penalty or judgment rendered against the licensee.
(d) A licensee shall ensure that the Department is notified in writing of the revocation of a local license, permit, or other authorization held by the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of receiving notice of the revocation. The written notification shall include the name of the local agency involved, a written explanation of the proceeding or enforcement action, and the specific violation(s) that led to revocation.
(e) For any notification required under this section, licensees shall use and submit to the Department the Licensee Notification and Request Form, Notifications and Requests to Modify a License, DCC-LIC-027 (Amended 2/22), which is incorporated herein by reference.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26030 and 26031, Business and Professions Code.
§15036. Notification of Theft, Loss, and Criminal Activity. (a) A licensee shall notify the Department and local law enforcement within 24 hours of discovery of any of the following situations:
(1) The licensee discovers a significant discrepancy, as defined in section 15034, in its inventory.
(2) The licensee discovers diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 62 of 224 (3) The licensee discovers diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee. (4) The licensee discovers loss or unauthorized alteration of records related to cannabis or cannabis products, customers, or the licensee’s employees or agents. (5) The licensee discovers any other breach of security. (b) The notification to the Department pursuant to subsection (a) shall be submitted on the Licensee Notification and Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-028 (New 2/22), which is incorporated herein by reference, and shall include the date and time of occurrence of the theft, loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the item(s) that were taken or lost.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15037. General Record Retention Requirements.
(a) Licensees must keep and maintain records in connection with the licensed commercial cannabis business. Records must be kept for at least seven years from the date of creation, unless a shorter time is specified. Records include, but are not limited to:
(1) Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901.
(2) Personnel records, including each employee’s full name, Social Security number or individual taxpayer identification number, date employment begins, and date of termination of employment, if applicable.
(3) Training records including, but not limited to, the content of the training provided and the names of the employees who received the training.
(4) Contracts regarding commercial cannabis activity.
(5) Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity.
(6) All other documents prepared or executed by an owner or their employees or assignees in connection with the licensed commercial cannabis business. (7) Records required by the Act or this division.
(b) Records must be kept in a manner that allows the records to be produced for the Department in either hard-copy or electronic form.
(c) Records must be legible and accurate. No person may intentionally misrepresent or falsify records.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 73 of 224 (3) For seeds, immature plants, and other propagated material, no more than six (6) strains to each recipient licensee.
(d) A licensee is limited to providing no more than one (1) individual cannabis and cannabis product line to each recipient employee in a calendar month period. (e) The limits provided in subsection (c) apply to the transfer of cannabis trade samples from one licensee to each recipient licensee and do not limit the total amount of cannabis trade samples that a licensed distributor may transport.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1, Business and Professions Code.

Article 5. Security Measures
§15042. Premises Access Requirements.
(a) For a premises that is not open to the public, the licensee shall establish and implement an identification and sign-in/sign-out procedure for all persons accessing the premises, including authorized individuals, suppliers, and visitors. (b) Licensees shall ensure that only employees of the licensee and other authorized individuals access the licensed premises.
(c) For the purpose of this section, “authorized individuals” include outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises.
(d) An individual who enters the licensed premises and is not employed by the licensee shall be escorted by an employee of the licensee at all times while within the licensed premises.
(e) A licensee shall maintain a record of all authorized individuals who are not employees of the licensee who enter the licensed premises. The record shall include the name of the individual, the company the individual works for, the reason the individual entered the licensed premises, the date, and the times the individual entered and exited the licensed premises. These records shall be made available to the Department immediately upon request.
(f) A licensee shall not receive consideration or compensation for permitting an individual to enter the licensed premises.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26160, Business and Professions Code.
§15042.1. Security Plan for Licensed Manufacturers.

A licensed manufacturer shall develop and implement a written security plan. At a minimum, the security plan shall include a description of the security measures to:
(a) Prevent access to the manufacturing premises by unauthorized persons and protect the physical safety of employees. This includes, but is not limited to:

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 74 of 224 (1) Establishing physical barriers to secure perimeter access and all points of entry into a manufacturing premises (such as locking primary entrances with commercial-grade, nonresidential door locks, providing fencing around the grounds and driveway, and securing any secondary entrances including windows, roofs, and ventilation systems); (2) Installing a security alarm system to notify and record incident(s) where physical barriers have been breached;
(3) Establishing an identification and sign-in/sign-out procedure for authorized personnel, individuals, suppliers, and visitors;
(4) Maintaining the premises such that visibility and security monitoring of the premises is possible; and
(5) Establishing procedures for the investigation of suspicious activities. (b) Deterring theft or loss of cannabis and cannabis products. This includes, but is not limited to:
(1) Establishing an inventory system to track cannabis and cannabis products and the personnel responsible for processing it throughout the manufacturing process; (2) Limiting access of personnel within the premises to those areas necessary to complete job duties, and to those timeframes specifically scheduled for completion of job duties, including access by outside vendors, suppliers, contractors or other individuals conducting business with the licensee that requires access to the premises; (3) Supervising tasks or processes with high potential for diversion, including the loading and unloading of cannabis and cannabis products from transportation vehicles; and (4) Providing areas in which personnel may store and access personal items that are separate from the manufacturing areas.
(c) Securing and backing up electronic records in a manner that prevents unauthorized access and ensures that the integrity of the records is maintained.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5 and 26051.5, Business and Professions Code. §15043. Licensee Employee Badge Requirement.

All agents, officers, or other persons acting for or employed by a licensee conducting retail sales or participating in a temporary cannabis event shall display a laminated or plastic-coated identification badge issued by the licensee at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee's “doing business as” name and license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

Authority cited: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 75 of 224 §15044. Video Surveillance System.
(a) Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 × 720 pixels on the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.
(b) The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance.
(c) Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection (d).
(d) Areas that shall be recorded on the video surveillance system include the following:
(1) Areas where cannabis or cannabis products are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises; (2) Limited-access areas;
(3) Security rooms;
(4) Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and (5) Entrances and exits to the licensed premises, which shall be recorded from both indoor and outdoor vantage points.
(e) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.
(f) Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).
(g) The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering or theft. (h) Surveillance recordings shall be kept for a minimum of 90 calendar days. (i) Surveillance recordings are subject to inspection by the Department and shall be kept in a manner that allows the Department to view and obtain copies of the recordings at the licensed premises immediately upon request. The licensee shall also send or otherwise provide copies of the recordings to the Department upon request within the time specified by the Department.
(j) Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the standards issued by the United States National Institute of Standards and Technology. The displayed date and time shall not cover the view of Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 76 of 224 recorded images in a manner that prevents the ready identification of any person or activity in the captured image.
(k) The video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device.
(l) If multiple licensed premises are contained within the same building or on the same parcel of land, a single video surveillance system covering the entire building or parcel of land may be used by all of the licensees if all licensees have immediate access to the surveillance recordings to produce them pursuant to subsection (i). All licensees sharing a video surveillance system shall be held responsible and subject to discipline for any violations of the video surveillance requirements.
(m) Notwithstanding subsection (a), a licensed distributor transport only licensee engaged in self-distribution whose premises is on the same parcel of land as their licensed cultivation premises shall not be required to comply with the provisions of this section.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§ 15045. Security Personnel.
(a) A licensed retailer or licensed microbusiness authorized to engage in retail sales shall hire or contract for security personnel who are at least 21 years of age to provide onsite security services for the licensed retail premises during the hours of operation. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with chapters 11.4 and 11.5 of division 3 of the Business and Professions Code.
(b) Notwithstanding subsection (a), a licensed non-storefront retailer or licensed microbusiness who is not engaged in storefront retail sale is not required to hire or contract for security personnel.
(c) If multiple licensed premises are contained within the same building, security personnel may be shared by all of the licensees to cover the entire building. However, all licensees shall be held responsible and subject to discipline for any violations of the security personnel requirements.

Authority cited: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 108 of 224 (e) A delivery employee shall not deliver cannabis goods to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15417. Delivery Vehicle Requirements.
(a) A licensed retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle.
(b) While carrying cannabis goods for delivery, a licensed retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle, or in a secured area or compartment within the interior of the vehicle. A “secured area” is defined as an area where solid or locking metal partitions, cages, or high-strength shatterproof acrylic can be used to create a secure compartment in the fully enclosed vehicle. The secured area may be comprised on three sides by any part of the body of the vehicle, provided the parts of the vehicle used for the purposes of this section are shatterproof and are not made of glass.
(c) A licensed retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored in a container as required in subsection (b).
(d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the licensed retailer and document the history of all locations traveled to by a delivery employee while engaged in delivery. A licensed retailer shall provide this information to the Department upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days.
(e) Upon request, a licensed retailer shall provide the Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 109 of 224 (f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Department. Vehicles used to deliver cannabis goods may be stopped and inspected by the Department at any licensed premises or during delivery.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15418. Cannabis Goods Carried During Delivery.
(a) A licensed retailer's delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $10,000 at any time.
(b) For the purposes of this section, the value of cannabis goods shall be determined using the current retail price of all cannabis goods carried by, or within the delivery vehicle of, the licensed retailer's delivery employee.
(c) A delivery employee may only carry cannabis goods, cannabis accessories, branded merchandise of any licensee, or promotional materials in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries. (d) Before leaving the licensed premises, the licensed retailer's delivery employee must have a delivery inventory ledger of all cannabis goods provided to the licensed retailer's delivery employee. The contents of the delivery inventory ledger must comply with the requirements of section 15049.3. During the delivery trip, as defined in section 15049.3, the delivery employee shall maintain the delivery inventory ledger in hard copy or electronically, the latter of which may be an electronic copy maintained in the track and trace system. The delivery inventory ledger must be updated after each completed delivery to reflect the remaining inventory carried by the delivery employee. The delivery inventory ledger must otherwise be updated in accordance with the requirements of section 15049.3, and then entered into the track and trace system no later than the end of the calendar day on which the delivery trip occurred. (e) The licensed retailer's delivery employee shall maintain a log that includes all stops from the time the licensed retailer's delivery employee leaves the licensed premises to the time that the licensed retailer's delivery employee returns to the licensed premises, and the reason for each stop. The log shall be turned in to the licensed retailer when the licensed retailer's delivery employee returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division. The log may be maintained electronically. (f) Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the licensed retailer's delivery employee electronically or in hard copy. The delivery request receipt provided to the licensed retailer's delivery employee shall contain all of the information required in section 15420, except for the date and time the delivery was made, and the signature of the customer.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 190 of 224 §17223. Waste Management.
(a) A licensee shall dispose of all waste in accordance with the Public Resources Code and any other applicable state and local laws. It is the responsibility of the licensee to properly evaluate waste to determine if it should be designated and handled as a hazardous waste, as defined in Public Resources Code section 40141. (b) A licensee shall establish and implement a written cannabis waste management plan that describes the method or methods by which the licensee will dispose of cannabis waste, as applicable to the licensee’s activities. A licensee shall dispose of cannabis waste using only the following methods:
(1) On-premises composting of cannabis waste.
(2) Collection and processing of cannabis waste by a local agency, a waste hauler franchised or contracted by a local agency, or a private waste hauler permitted by a local agency in conjunction with a regular organic waste collection route. (3) Self-haul cannabis waste to one or more of the following:
(A) A staffed, fully permitted solid waste landfill or transformation facility; (B) A staffed, fully permitted composting facility or staffed composting operation; (C) A staffed, fully permitted in-vessel digestion facility or staffed in-vessel digestion operation;
(D) A staffed, fully permitted transfer/processing facility or staffed transfer/processing operation;
(E) A staffed, fully permitted chip and grind operation or facility; or (F) A recycling center as defined in title 14, California Code of Regulations, section 17402.5(d) that meets the following:
(i) The cannabis waste received shall contain at least ninety (90) percent inorganic material;
(ii) The inorganic portion of the cannabis waste is recycled into new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace; and
(iii) The organic portion of the cannabis waste shall be sent to a facility or operation identified in subsections (b)(3)(A)-(E).
(4) Reintroduction of cannabis waste back into agricultural operation through onpremises organic waste recycling methods including, but not limited to, tilling directly into agricultural land and no-till farming.
(c) The licensee shall maintain any cannabis waste in a secured waste receptacle or secured area on the licensed premises until the time of disposal. Physical access to the receptacle or area shall be restricted to the licensee, employees of the licensee, the local agency, waste hauler franchised or contracted by the local agency, or private waste hauler permitted by the local agency only. Nothing in this subsection prohibits licensees from using a shared waste receptacle or area with other licensees, provided that the Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 191 of 224 shared waste receptacle or area is secured and access is limited as required by this subsection.
(d) A licensee that disposes of waste through an entity described in subsection (b)(2) shall do all of the following:
(1) Maintain and make available to the Department upon request the business name, address, contact person, and contact phone number of the entity hauling the waste; and (2) Obtain documentation from the entity hauling the waste that evidences subscription to a waste collection service.
(e) If a licensee is self-hauling cannabis waste as allowed by the local jurisdiction, the licensee shall be subject to all of the following requirements:
(1) Self-hauled cannabis waste shall only be transported by the licensee or its employees;
(2) Self-hauled cannabis waste shall only be transported to a facility specified in subsection (b)(3); and
(3) The licensee or its employee who transports the waste shall obtain for each delivery of cannabis waste a copy of a certified weight ticket or receipt from the solid waste facility.
(f) A batch of cannabis or cannabis products that is being disposed of because the batch has failed internal quality testing, quality assurance review by a distributor, or regulatory compliance testing shall comply with the following additional requirements:
(1) All cannabis or cannabis products in the batch shall be rendered unusable prior to disposal;
(2) Rendering of the cannabis or cannabis products shall be done under video surveillance, unless the rendering is performed by a licensee engaging in cultivation activities on a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises; and (3) The reason for disposal and the disposition of the batch shall be noted in the track and trace system.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5 and 26130, Business and Professions Code. §17225. Product Complaints.
(a) A licensee shall review all product complaints made to the licensee to determine whether the complaints involve possible misbranding or adulteration of a cannabis good, and shall investigate the complaints to the extent practicable based on the information received and the records the licensee is required to maintain. (b) For purposes of this section, “product complaint” means any written, electronic, or oral communication received by a licensee that contains any allegation expressing concern, for any reason, with the quality of a cannabis good. Examples of product Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 195 of 224 (m) Any cannabis product in, or imprinted with the shape, either realistic or caricature, of a human being, animal, insect, or fruit.
(n) Any inhalable cannabis product that is delivered into the lungs through a metereddose inhaler or dry-powder inhaler. Nothing in this section shall be interpreted to prohibit other dry-powder cannabis products or metered-dose vaporizers containing cannabis or cannabis oil.
(o) Any cannabis product that is administered to the eye or the nasal passages. (p) Any cannabis product that is injected into the body by piercing the skin.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5 and 26130, Business and Professions Code. §17301. Additional Requirements for Edible Cannabis Products. (a) Except for cannabis, cannabis products, or terpenes, no ingredient or component shall be used in the manufacture of an edible cannabis product unless that ingredient or component is permitted by the United States Food and Drug Administration for use in food or food manufacturing, as specified in Substances Added to Food in the United States, available at
https://www.accessdata.fda.gov/scripts/fdcc/index.cfm?set=FoodSubstances or is Generally Recognized as Safe (GRAS) under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act (codified in 21 U.S.C. 321(s) and 21 U.S.C. 348). (b) Edible cannabis products that consist of more than a single serving shall be marked or packaged in a manner such that a single serving is readily identifiable or measurable. (c) An edible cannabis product consisting of multiple servings shall be homogenized so that each serving contains the same concentration of THC.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5 and 26130, Business and Professions Code. §17302. Additional Requirements for Topical Cannabis Products. (a) Except for cannabis, cannabis concentrate, or terpenes, topical cannabis products shall only contain ingredients permitted for cosmetic manufacturing in accordance with title 21, Code of Federal Regulations, part 700, subpart B (section 700.11 et seq.) (Rev.

March 2016), which is hereby incorporated by reference.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26011.5, Business and Professions Code.
§17302.1. Additional Requirements for Tinctures.
(a) A tincture shall be no more than 2 fluid ounces and shall include a calibrated dropper or similar device for measuring a single serving.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 196 of 224 (b) A tincture, defined at section 15000(rrr), may include ingredients other than cannabis extract and alcohol, vegetable oil, or glycerin provided that the primary ingredient by weight is alcohol, vegetable oil, or glycerin.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26011.5, Business and Professions Code.
§17303. Orally Consumed Products Containing Alcohol.
(a) Any orally consumed product that contains more than 0.5% alcohol by volume as an ingredient, and is not otherwise an alcoholic beverage as defined in Business and Professions Code section 23004, shall be packaged in a container no larger than two (2) fluid ounces and shall include a calibrated dropper or other similar device capable of accurately measuring servings.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26011.5, Business and Professions Code.
§17303.1. Additional Requirements for Inhaled Products. (a) Cannabis products intended for inhalation shall only contain cannabis, cannabis concentrate, terpenes, rolling paper, leaf, pre-roll filter tips, or ingredients permitted by the United States Food and Drug Administration as an “inactive ingredient” for inhalation, as specified in the United States Food and Drug Administration Inactive Ingredients Database, available at https://www.fda.gov/drugs/drug-approvals-anddatabases/inactive-ingredients-database-download.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26011.5, Business and Professions Code.

Article 2. Cannabinoid Concentration Limits
§17304. THC Concentration Limits.
(a) An edible cannabis product shall not contain more than:
(1) 10 milligrams THC per serving; and
(2) 100 milligrams THC per package.
(b) Notwithstanding subsection (a), a package containing an edible product that is an orally dissolving product, such as sublingual lozenges or mouth strips, may contain up to 500 milligrams THC per package, if:
(1) The cannabis product consists of discrete servings of no more than 10 milligrams THC per piece;
(2) The cannabis product is labeled “FOR MEDICAL USE ONLY;” and (3) The cannabis product is only available for sale to a medicinal-use patient. (c) A topical cannabis product or a cannabis concentrate shall not contain more than 1,000 milligrams THC per package.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 197 of 224 (d) Notwithstanding subsection (c), a topical cannabis product or a cannabis concentrate may contain more than 1,000 milligrams THC per package, but not more than 2,000 milligrams THC per package, if the product is labeled “FOR MEDICAL USE ONLY” and is only available for sale to a medicinal-use patient.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5, 26120 and 26130, Business and Professions Code.

Article 3. Failed Product Batches
§17305. Failed Product Batches.
(a) A finished cannabis product batch that fails any regulatory compliance laboratory testing requirement established in this division shall be destroyed unless:
(1) The cannabis product batch or harvest batch may be remediated by relabeling pursuant to subsection (d); or
(2) A corrective action plan for remediation is approved by the Department pursuant to subsection (e). The licensed manufacturer or microbusiness authorized to engage in manufacturing who submits a corrective action plan for remediation shall be the manufacturer that remediates the subject batch. The licensed manufacturer shall not receive the batch from the licensed distributor until the Department has approved the corrective action plan.
(b) Remediation of a failed product batch or the use of a harvest batch that has failed any regulatory compliance laboratory test shall comply with the requirements and procedures established by the Department in section 15306, in addition to the requirements of this article.
(c) Except as provided in subsections (d) and (f), edible cannabis products that fail regulatory compliance laboratory testing shall not be remediated and shall be destroyed.

If any edible cannabis product that has failed regulatory compliance laboratory testing is remediated or otherwise mixed with another batch of cannabis product in violation of this section, such action shall render the final cannabis product adulterated, regardless of the defect level of the final cannabis product.
(d) A cannabis product batch that fails regulatory compliance laboratory testing for cannabinoid or terpenoid content may be remediated by relabeling the product with the correct information from the certificate of analysis for regulatory compliance, provided that the THC limits in section 17304 are met.
(e) Except as provided in subsection (d), a cannabis product batch or a harvest batch that fails regulatory compliance laboratory testing or quality assurance review shall not be remediated unless the Department has approved a corrective action plan submitted by the licensed manufacturer or microbusiness authorized to engage in manufacturing who will be performing the remediation. Edible cannabis products may only be remediated by relabeling pursuant to subsection (d) or repackaging as provided in subsection (f). Corrective action plans will be reviewed by the Department on a case-by- Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 200 of 224 Article 2. Cannabis Products Released from Manufacturing §17401. Release to Distributor as Finished Product.
(a) Cannabis products shall not be transferred to a licensed distributor, or microbusiness authorized to engage in distribution, for regulatory compliance testing unless the cannabis products are in their final form and packaged and labeled for retail sale. (b) Notwithstanding subsection (a), a product label may exclude labeling of cannabinoid content if the cannabinoid content is to be added to the label at the distribution premises after issuance of a Certificate of Analysis in accordance with section 17407.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5 and 26130, Business and Professions Code.

Article 3. Labeling Requirements
§ 17402. General Provisions.
(a) Any information required to be listed on a label shall be written in English. (b) A label shall be unobstructed and conspicuous so that it can be read by the consumer.
(c) All required label information shall be located on the outside container or wrapper of the finished product to be sold at a retailer, or be easily legible through the outermost container or wrapper. If the immediate container holding the cannabis goods is separable from the outermost packaging, such as a container placed inside of a box, the immediate container shall be labeled with the universal symbol as described in section 17410.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26120, Business and Professions Code.
§ 17403. Primary Panel Labeling Requirements: Nonmanufactured Cannabis Goods.
(a) The label for a package of nonmanufactured cannabis goods shall include a primary panel that includes the following information in a type size no smaller than 6 point and proportional to the size of the primary panel and container:
(1) The identity of the product;
(2) The net weight of cannabis in the package, listed in both metric and U.S. customary units; and
(3) The universal symbol described in section 17410.
(b) The label for a package of nonmanufactured cannabis goods shall include an informational label that includes the following information in a type size no smaller than 6 point and proportional to the size of the informational panel and container:
(1) The UID;
(2) The name of the licensed cultivator or licensee packaging the product (either the legal Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 201 of 224 business name or the listed on the license certificate) and that licensee's contact number or website address;
(3) The date of packaging for retail sale; and
(4) The following statement in bold print: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR
BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”
(c) Nothing in this section prohibits the inclusion of additional information on the primary panel, provided that the label does not violate the requirements of section 17408. (d) The cannabinoid content for a package of nonmanufactured cannabis goods shall be labeled as specified in section 17407.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26120, Business and Professions Code.
§17404. Primary Panel Labeling Requirements: Manufactured Cannabis Products. (a) The label for a manufactured cannabis product shall include a primary panel that includes the following information in a type size no smaller than 6 point and proportional to the size of the primary panel and container:
(1) The identity of the product in a text size reasonably proportional to the most prominent printed matter on the panel;
(2) The universal symbol as described in section 17410; and (3) The net weight or volume of the contents of the package, listed in both metric and U.S. customary units.
(b) Nothing in this section prohibits the inclusion of additional information on the primary panel, provided that the label does not violate the requirements of section 17408.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26120, Business and Professions Code.
§17405. Additional Primary Panel Labeling Requirements: Edible Products. (a) In addition to the requirements of section 17404, the primary panel of an edible cannabis product shall include the words “cannabis-infused” or “cannabis infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product.

Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26120, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 202 of 224 §17406. Informational Panel Labeling Requirements.
(a) The label for a manufactured cannabis product shall include an informational panel that includes the following:
(1) The name of the licensed manufacturer (either the legal business name or the name listed on the license certificate) that manufactured the cannabis product and the manufacturer’s contact number or website address;
(2) The date the cannabis product was packaged for retail sale; (3) The following statement in bold print: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION

OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION;”
(4) The statement: “FOR MEDICAL USE ONLY” if the package contains an amount of THC that exceeds the level allowed for adult-use cannabis goods, as specified in section 17304;
(5) A list of all product ingredients in descending order of predominance by weight or volume. If any product ingredient contains subingredients, the list shall either:
(A) Include the common name of the ingredient followed by a parenthetical listing of all ingredients in descending order by weight or volume; or (B) List all subingredients as individual ingredients in descending order of predominance; however,
(C) This subsection shall not apply to flavoring, which shall instead comply with title 21, Code of Federal Regulations, Part 101.22 (Rev. Jan. 2009), hereby incorporated by reference;
(6) For cannabis products containing an ingredient, flavoring, coloring, or an incidental additive that bears or contains a major food allergen, the word “contains,” followed by a list of the applicable major food allergens. The list shall conform with the requirements for food allergen labeling set forth in 21 U.S.C. §343(w), paragraph (1)(A) or (1)(B); (7) The names of any artificial colorings contained in the product; (8) For edible cannabis products, the amount, in grams or milligrams, of sodium, sugar, carbohydrates, and total fat per serving;
(9) Instructions for use, such as the method of consumption or application, and any preparation necessary prior to use;
(10) The UID;
(11) The batch or lot number; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (September 2023) Page 203 of 224 (12) The statement: “KEEP REFRIGERATED” or “REFRIGERATE AFTER OPENING,” as applicable, if the cannabis product is perishable or perishable after opening. (b) The informational panel text shall be in a type size no smaller than 6 point and proportional to the size of the primary panel and container. (c) Except for the information required by subsections (a)(1), (a)(10) and (a)(11), the requirements of subsection (a) may be fulfilled through the use of supplemental labeling, which may include, but is not limited to, a package insert, fold-out or booklet label, or a hanging tag.
(d) Cannabinoid content may be included on the informational panel. Cannabinoid content for manufactured cannabis products shall be labeled as specified in section 17407.
(e) Nothing in this section prohibits the inclusion of additional information on the informational panel provided that the label does not violate the requirements of section 17408.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Section 26120, Business and Professions Code.
§17407. Cannabinoid Content Labeling.
(a) Each package for retail sale of cannabis goods shall be labeled with the cannabinoid content on either the primary panel or an informational panel. For manufactured products, cannabinoid content may be included on the label prior to release to a distributor or it may be added to the label at the distribution premises after issuance of a regulatory compliance testing Certificate of Analysis for the batch as described in subsection (d).
(b) Cannabinoid content labeling shall include the following:
(1) For an edible product or a cannabis concentrate for which the manufacturer has established serving designations, THC and CBD content expressed in milligrams per serving and milligrams per package.
(2) For a topical cannabis product or a cannabis concentrate without serving designations, THC and CBD content expressed in milligrams per package. (3) For nonmanufactured cannabis goods, Total THC content expressed as a percentage.
(4) Packages of infused pre-rolls shall be labeled with either:
(A) The cannabinoid content in milligrams; or
(B) The cannabinoid content of the dried flower expressed as a percentage and the added cannabinoid content in milligrams.

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Agenda No. 12 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM:

Debby Beck, Councilmember, Luke Coletti, Councilmember, Lori, McDonnell, Councilmember
MEETING DATE: November 01, 2023
SUBJECT: Water Conservation Subcommittee Status Report and Recommendation for Quarterly Reporting of the City's Cal-Am Water Use
CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive the report.

Direct Staff to return to City Council with a proposal to provide quarterly reports of the City’s Cal-Am potable water use.

2. 3. Alternatively, discuss and take other action related to this item.

DISCUSSION
Background:

At its January 18, 2023 meeting the City Council received a report from Councilmember Debby Beck recommending the creation of a Council subcommittee to perform water cost audits, identify water meter site locations, and review ways to conserve water. Council approved the recommendation.

The Subcommittee met with Cal-Am Water representatives and the City’s Public Works Director to discuss how the city might lower its water usage.

Public Works reviewed several of the high usage sites and determined there were water leaks in some of the irrigation lines, which have since been repaired. Public Works also adjusted the irrigation timers to optimize conservation. The Subcommittee suggested placing locks on the water timers.

Moving Forward:
• Staff will be reviewing the City’s property leases to determine who should be paying the water bill. • Staff will meet with Cal-Am Water representatives to discuss the possible removal of inactive water meters, which the city is currently being charged for.
• The City’s Local Water plant is currently using less Cal-Am potable water. The potable water supplements the non-potable water produced by the plant used to irrigate the golf course and cemetery. • Total annual Cal-Am water demand, and associated costs, are trending lower: $554,873 in 2021, $446,657 in 2022, and $211,317 in 2023 (YTD).
• The City Council should consider providing direction to Staff to initiate quarterly reports of Cal-Am Water demand.

OPTIONS

1. Take no action.

2. Provide alternate direction.

FINANCIAL IMPACT:

There is no no cost associated with receiving this report.

GOAL ALIGNMENT: Infrastructure
Attachments
Water Usage Presentation/Slides
Public Comment
City Council
City of Pacific Grove
Cal Am Water
Subcommittee Report
October 25, 2023 1
Council Members Coletti, Beck and
Mcdonnell [email protected]
 Subcommittee met with Cal Am Water representatives and Public Works Director to discuss how to lower the usage and cost to the City of Pacific Grove.
 Cal Am provides Landscape Grant Programs. The City of Pacific Grove has received a $30,000 Grant Award in the past to install Native Drought-Tolerant Landscaping at Lover's Point Park.

Estimated Annual Water Savings: 225,000Gallons.

October 25, 2023 Debby Beck 2
 Meeting on 10/9/23 with Mr. Gho and Staff to determine what areas of improvement have been taken to reduce the water usage since our committee formed in 1/2023.
 Staff reviewed several of the high usage sites and determined there were water leaks in the irrigation and they have since been repaired, they also adjusted the irrigation timers. The Subcommittee suggested placing locks on the water timers. Mr.

Gho also considered the heavy rains this past year contributed to lessirrigationneeded.

October 25, 2023 Debby Beck 3
• Staff will be working with a few of our City leases to determine how to cost the water being used by the tenants, so it is not incurred by the City.
• Staff will be meet with Cal Am water to discuss the Water meters not usage, however, the City is being charged for the meter connection. Possibly removing the meters with a letter to Cal Am to confirm the meters will be returned in the future if needed to the original site.
• The Local Water project is currently providing less potable water to the Golf Course.
• Graph is a great indication that we are moving in the right direction as 2021 billing $554,873, 2022 billing $446,657 and YTD for 2023 $211,317
October 25, 2023 Debby Beck 4
October 25, 2023 5
City Council
City of Pacific Grove
Questions?
October 25, 2023 Debby Beck 6

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Agenda No. 12 C

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: November 01, 2023
SUBJECT: Consider an Appeal of Architectural Permit (AP), Use Permit (UP) and Variance (VAR) No. 22-0284, 773-775 Ocean View Blvd, Pacific Grove (APN 006-071-007)
CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION
Staff recommends the City Council deny the appeal and approve the Architectural Permit, Use Permit, and Variance (AP/UP/VAR 22-0284), subject to the findings, conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities).

DISCUSSION
Project Description
The proposed project includes the remodel of an existing 2,343 square foot two-story duplex, including installation of an elevator and construction of a roof deck. The project would also include an interior reconfiguration of the garage area (i.e., reconversion of the garage from habitable space to parking spaces) to increase the number of existing parking spaces, thereby reducing the need for street parking and reducing the interior habitable space, enclosure of the exterior stairs to the upper unit, new exterior stairs to the roof deck, and a new balcony area on the second floor.

Site Description
The 1,491 square foot lot, located at the corner of Ocean View Boulevard and Moss Street, is currently developed with a 2,343 square foot two-story duplex, including a 1,029 square foot lower unit, a 1,189 square foot upper unit, and a 125 square foot garage. The property is located within the City’s Coastal Zone, Area of Special Biological Significance, and within an archaeologically sensitive area. Due to the limited scope of the proposed project, submittal of an archaeological report is not required or warranted, and conditions of approval have been added to address inadvertent discovery of cultural resources. The subject property is not listed on the City’s Historic Resources Inventory (HRI).

Surrounding Land Uses
The parcel is located in an area of small- to medium-sized one- and two-story single-family residences and duplexes in the Beach Tract neighborhood.

Background and Summary of Appeal Contentions
At a special meeting of the Architectural Review Board (ARB) on May 16, 2023, the ARB voted 4 - 0 -1 (4 yes, 0 noes, and 1 absent) to recommend the Planning Commission deny the Use Permit and Variance, and to grant approval of the Architectural Permit subject to plans that conform to the existing code. The ARB recommended the elevator only provide access to the second floor and be contained within the existing structure footprint, and that access to the roof deck be provided by exterior stairs or interior hatch.

In response to the ARB's recommendation, the applicant revised the proposed project design to decrease the height and footprint of the elevator shaft and to decrease the height of the main structure.

The revisions resulted in the following: a 9-inch height reduction of the elevator shaft, from 27.75 feet to 27.00 feet; a 4-inch reduction of the main dwelling height, including the roof deck railing, from 22.5 feet to 22.17 feet; and an increase of the rear setback (i.e., a reduction of the encroachment) from 6 inches to 1 foot. The building and site coverages, although slightly decreased, remain approximately the same as initially proposed. See the Use Permit and Variance sections below for additional information.

The revised plans also reflect a building code requirement to have an open staircase to the roof deck in addition to the elevator.

On September 14, 2023, the Planning Commission considered the project, including the ARB's recommendation and the applicant's revisions, and voted 4 - 1 -2 (4 yes, 1 no, and 2 absent) to approve the project as revised.

On September 22, 2023, the appellant submitted a timely appeal (attached) of the Planning Commission’s decision to approve the project. The appellant made the following contentions:

1) The project is in noncompliance with zoning for R-3-PGB. The existing building already exceeds height, gross floor area and setback requirements, and the proposed project further exceeds limits of the zoning.

Staff Response: As stated below in Applicable Zoning Code Regulations and Architectural Permit, the proposed project would comply with applicable development standards for main structure height and gross floor area. The existing development on the property is nonconforming with regard to the front setback, side setbacks, rear setback, building coverage, site coverage, lot size, and required parking. As proposed, the front setback and side setbacks would not change. The proposed remodel would increase the covered parking from 1 space to 2 spaces, thereby improving the existing and proposed nonconforming residential parking situation. The rear setback, building coverage, and site coverage would become more nonconforming under the development proposal (see the Variance section below for additional information).

Regarding parking, the City's longstanding practice has been to allow and approve improvements to existing nonconforming development. Regarding the height, the main structure would conform to the allowed development standard, and the City may approve a Use Permit to allow the elevator shaft to exceed the zoning district's maximum allowed height. Regarding the rear setback, building coverage, and site coverage, the City may approve a Variance based on the specific circumstances of a property. In this case, the proposed project would not significantly nor adversely change the existing situation. Site coverage would increase by 10 square feet over existing, and building coverage would increase by 132 square feet over existing. The rear setback would decrease from 6 feet to 1 foot; however, the existing stairs already encroach into the rear setback and the proposed elevator shaft would not significantly increase the encroachment and would be placed over existing site coverage. Due to the small lot sizes in this area, multiple properties in the vicinity have nonconforming development and either Use Permits or Variances have been approved on these properties for similar types of changes. 2) There are no facts to support the findings required for a variance from existing zoning limits, under PGMC Sec. 23.70.080 (b) (4) or any other provision.

Staff Response: The appellant submitted no evidence to support this assertion. See Staff Response to contention 1 above, the Variance section below, and the Variance findings and supporting evidence in the attached draft resolution.
3) The proposed elevator shaft does not qualify for a use permit under PGMC Section 23.64.120 for chimneys and flagpoles.

Staff Response: The appellant submitted no evidence to support this assertion. PGMC Section 23.64.120 states "Chimneys, cupolas, flagpoles, monuments, water tanks, clock towers and similar structures and mechanical appurtenances may be permitted in excess of height limits provided a use permit is first obtained in each case. The proposed elevator shaft is a similar structure to those identified, and this determination is consistent with past City practice and approvals.
4) The proposed elevator shaft does not meet the requirements for findings required for a use permit under PGMC Sec. 23.70.080 (a)(4) or any other provision.

Staff Response: The appellant submitted no evidence to support this assertion. Pursuant to PGMC Section 23.64.120, the City may approve a Use Permit to allow the elevator shaft to exceed the zoning district's maximum allowed height. See the Use Permit findings and supporting evidence in the attached draft resolution.
5) The proposed project is not in compliance with the City's Architectural Review Guidelines.

Staff Response: The appellant submitted no evidence to support this assertion. See the Architecture and Design Consideration section below and the Architectural Permit findings and supporting evidence in the attached draft resolution. 6) The proposed project is not consistent with the Pacific Grove General Plan, including but not limited to inconsistency with SCE-1 and SCE-2.

Staff Response: The appellant submitted no evidence to support this assertion. As proposed, the project does not impact public views along the shoreline and is consistent with Land Use Plan (LUP) Policy SCE-1. Moreover, the proposed project does not adversely impact public views and is consistent with LUP Policy SCE-2. As proposed, the elevator shaft is designed with a flat roof and would be constructed on the rear elevation opposite Ocean View Boulevard.
7) The proposed project poses an undue fire hazard due to lack of fire department access for equipment and personnel in case of fire or equipment malfunction.

Staff Response: The appellant submitted no evidence to support this assertion. The property is located at the intersection of Moss Street and Ocean View Boulevard, and access would remain from these two streets. Access would also remain on the side opposite Moss Street, and sufficient structure separation would remain between the site and the adjacent property located on Mermaid Avenue. Therefore, as proposed, the site would retain access for emergency response personnel and equipment.
8) The proposed project encroaches on adjacent property due to the lack of setbacks for access and repairs.

Staff Response: The appellant submitted no evidence to support this assertion. See Staff Response to contention 7 above.

In summary, the appellant submitted no evidence in support of the contentions. Also, as described above, the assertions made in the appeal contentions lack merit.

Applicable General Plan Policies
The neighborhood is designated High Density Residential with an allowed density of up to 24.8 dwelling units per acre. The Pacific Grove General Plan provides a framework for future growth and development within the City. The Land Use Element includes goals and polices that call for the orderly, well-planned, and balanced development, consistent with the historic nature of Pacific Grove, the capacity of the City’s infrastructure, and ability to assimilate new growth. The proposed project is consistent with applicable General Plan policies, including the following:

Chapter 2 - Land Use
Policy 2: Ensure that new development is compatible with adjacent existing development.

Policy 4: Continue to preserve Pacific Grove’s character and regulate development.

Chapter 3 - Housing
Policy 8: Strive to provide the City’s share of the region’s housing need.

The policies above are implemented through the R-3-PGB zoning district which allows residential and multi-family development in areas with adequate public services.

Applicable Zoning Code Regulations and Architectural Permit As proposed, the project complies with some of the zoning regulations set forth in Pacific Grove Municipal Code (PGMC) Chapter 23.57 (R-3-PGB). This includes, but is not limited to, height limit for the main structure and gross floor area. The existing development on the property is nonconforming with regard to the front setback, side setbacks, rear setback, building coverage, site coverage, lot size, and required parking. As proposed, the front setback and side setbacks would not change. The proposed remodel would increase the covered parking from 1 space to 2 spaces, thereby improving the existing and proposed nonconforming residential parking situation. The rear setback, building coverage, and site coverage would become more nonconforming under the development proposal (see the Variance section below).

The applicant provided a revised Project Data Sheet (attached) indicating the development standards of the zoning district, existing conditions, and proposed conditions. The Architectural Permit (AP) is required per PGMC Sections 23.70.060(c)(1) and 23.57.070. PGMC Section 23.57.070 requires architectural approval for all structures remodeled in the R-3-PGB zoning district. The required findings for the AP are located in the draft permit (attached).

Use Permit
Per PGMC Section 23.64.120, a Use Permit (UP) is required to allow the elevator shaft to exceed the zoning district's maximum allowed height of 25 feet. The elevator shaft would rise to a height of

27.00 feet (i.e., 2 feet over the allowed maximum height) to provide access to the second story of the duplex and to the roof deck. The required findings for a UP are listed in PGMC Section

23.70.080(a)(4), and are included in the draft permit (attached).

Variance
The Variance (VAR) is required per PGMC Section 23.70.080(b)(4), and the required findings for the VAR are located in the draft permit (attached). The Variance is required to allow a further reduction of the rear setback, and minor increases to both building and site coverage. The required rear setback for a two-story structure is 8 feet, and the existing nonconforming rear setback would decrease from 6 feet to

1.0 foot. The existing nonconforming building coverage of 1,154 square feet (77.4 percent) would increase by 132 square feet to a total of 1,286 square feet (86.3 percent) to accommodate the elevator shaft to the second story of the duplex and to the roof deck. The existing nonconforming site coverage of 1,372 square feet (92.0 percent) would increase by 10 square feet to a total of 1,382 square feet (92.7 percent) to accommodate the elevator shaft to the second story of the duplex and to the roof deck. Most of the elevator shaft would be placed over existing impervious surface site coverage. Due to the small lot sizes in this area, multiple properties in the vicinity have nonconforming development and either Use Permits or Variances have been approved on these properties for similar types of changes.

Additionally, properties in the vicinity have approved second-floor or roof decks. Examples of other properties in the vicinity that have nonconforming development and/or second-floor or roof decks include 701 Ocean View Blvd., 707 Ocean View Blvd., 711 Ocean View Blvd., 717/719 Ocean View Blvd., and 829 Ocean View Blvd. The Council may determine that the proposed rear setback, building coverage, and site coverage on the project site are appropriate based on the circumstances of the application and the surrounding development.

Architecture and Design Consideration
As proposed, the design would be compatible with the neighborhood comprised of smallto medium-sized one- and two-story single-family residences and duplexes of varying architectural styles, alignments, and scales. Exterior color and material finishes for the project will match the existing structure and include a tile roof and clear glass with stainless steel railing. The elevator shaft and enclosed/exterior stairs would be constructed on the rear elevation opposite Ocean View Boulevard. As designed and per CDD staff site inspections, the proposed minor changes to the structural bulk and mass would not result in adverse visual impacts for neighbors or along Ocean View Boulevard.

Architecture Review Guidelines:

The architectural style, materials and site design are in substantial conformance with the City’s Architectural Review Guidelines. Specifically, Guidelines Nos. 7 and 9 relating to the second floor decks and balconies and neighbors' views were used in analyzing the proposed project to ensure compliance. As designed, the project complies with the following Architectural Review Guidelines:

Guideline #7: Second floor balconies and decks should be designed and located to minimize the loss of privacy for neighboring properties.

As proposed, the new second floor deck area balcony would face Ocean View Boulevard, and the roof deck would not overlook any yard areas and would not result in the loss of privacy for neighboring properties.

Guideline #9: Attempt to preserve some portion of neighbors' views by carefully positioning or limiting the width, depth, or height of proposed building elements.

The proposed elevator shaft would be built to the height required to access the roof deck and is designed with a flat roof. Surrounding properties would retain the majority of existing views.

Lighting
Exterior lighting shall comply with LUP Policy DES-6, and is required as a condition of approval.

Water
Any additional water credits required to complete the project will need to be purchased from the City of Pacific Grove.

Stormwater Treatment Measure
Less than 2,500 sq ft of impervious surface will be replaced; therefore, the project does not trigger stormwater requirements.

Coastal Development Permit (CDP)
Pursuant to PGMC Sections 23.90.050, City CDP Determinations, and 23.90.040, CDP Exemptions, Community Development Department (CDD) staff determined the project to be exempt from the requirement to obtain a CDP. CDD staff forwarded this determination to the Coastal Commission on December 15, 2022.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
In reviewing this action, the City has followed the CEQA statute adopted by the State of California as published in the California Public Resources Code, Division 13, §21000, et seq., and the associated guidelines as published in the California Code of Regulations, Title 14, §15000, et seq. (i.e., CEQA Guidelines). The proposed project is found to be categorically exempt under CEQA Guidelines Section 15301, Class 1, Existing Facilities, allowing additions and/or alterations to existing facilities and structures. As proposed, the project is consistent with the General Plan and the neighborhood within which the project is located is not environmentally sensitive. No adverse environmental effects were identified during staff review of the development application nor during site inspections. The exceptions to exemptions in Section 15300.2 of the CEQA Guidelines pertaining to location, cumulative impacts, significant effects, scenic highways, hazardous waste sites, and historical resources do not apply to this project. There is no substantial evidence of an unusual circumstance because there is no feature or condition of the project that distinguishes the project from the exempt class. Additionally, there is no substantial evidence that would support a fair argument that the project has a reasonable possibility of having a significant effect on the environment or that it would result in a cumulative significant impact.

OPTIONS

1. Deny the appeal of the Planning Commission's decision and approve the project as proposed, subject to the findings, conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities);

2. Approve the appeal of the Planning Commission's decision and deny the proposed project;

3. Direct the applicant to revise the proposed project subject to Council direction; or

4. Discuss and take other action related to this item.

FINANCIAL IMPACT:

The proposed project would have no impact on the City's fiscal operations.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Appeal Form & Supplemental Information
Application
Project Data Sheet
Draft Resolution
CEQA Exemption Form
Planning Commission Permit dated September 14, 2023
Architectural Review Board Permit dated 05-16-2023
Historic Report
Plan Set
Correspondence-10-25-2023
Public Comment
Public Comment

[Rev. 01/14/14]

PROJECT DATA SHEET
Project Address: Submittal Date:

Applicant(s): Permit Type(s) & No(s):

REQUIRED/
Permitted
Existing
Condition
Proposed
Condition Notes
Zone District
Building Site Area
Density (multi-family projects only)
Building Coverage
Site Coverage
Gross Floor Area
Square Footage not counted towards
Gross Floor Area
Impervious Surface Area Created
and/or Replaced
Exterior Lateral Wall Length to be
demolished in feet & % of total* _______ _______ ft/ % Exterior Lateral Wall Length to be built _______ _______ Building Height
Number of stories
Front Setback
_______________Side Setback
(specify side)
_______________Side Setback
(specify side)
Rear Setback
Garage Door Setback
Covered Parking Spaces
Uncovered Parking Spaces
Parking Space Size
(Interior measurement)
9’ x 20’
Number of Driveways 1
Driveway Width(s)
Back-up Distance
Eave Projection (Into Setback) 3’ maximum
Distances Between Eaves & Property
Lines
3’ minimum
Open Porch/Deck Projections
Architectural Feature Projections
Number & Category of Accessory
Buildings
Accessory Building Setbacks
Distance between Buildings
Accessory Building Heights
Fence Heights
*If project proposes demolition to an HRI structure, also indicate % of proposed demolition of the surface of all exterior walls facing a public street or streets, if applicable.

Revised 08-08-2023
773 - 775 Ocean View Blvd.

Jeanne C. Byrne, FAIA Architects
09/30/2022
AP-UP-VAR 22-0284
R-3-PGB
1,525 sq.ft.
763 1,154 1,286
915 1,372 1,382
- 2,343 2,456
--
132
25'-0" 20'-6" 27'-0" @ elevator shaft / 22'-2" at roof deck 222
12' 0 0
East 4'-3" 0 0
West 4'-3" 2'-10" 2'-10"
8'-0" 6'-0" 1'-0"
20' 0 0
12 00
9'x20' 18' x 20'
--
--
--
2" 2"
0 0 at OVB & Moss
--
--
0 0

N/A N/A

N/A N/A
6' 6'
RESOLUTION NO. 23-

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

DENYING AN APPEAL AND APPROVING ARCHITECTURAL PERMIT (AP), USE PERMIT (UP), AND VARIANCE (VAR) 22-0284 FOR A PROPERTY LOCATED AT 773/775 OCEAN VIEW BOULEVARD TO ALLOW THE REMODEL OF AN EXISITNG

DUPLEX, INCLUDING INSTALLATION OF AN ELEVATOR AND CONSTRUCTION OF A ROOF DECK.

FACTS

1. The applicant proposes to remodel an existing 2,343 square foot two-story duplex, including installation of an exterior elevator and construction of a roof deck. The resulting duplex would have an 888 square foot lower unit and an 1,170 square foot upper unit with a 398 square foot two-car garage.

2. The subject site is located at 773/775 Ocean View Blvd, Pacific Grove, APN 006-071- 007.

3. The subject site is approximately 1,491 square feet in size, and currently developed with a 2,343 square foot two-story duplex.

4. The subject site has a land use designation of Medium High Density Residential (10-20 du/ac) on the City’s adopted Land Use Plan Map.

5. The project site is located in the R-3-PGB zoning district.

6. The property is located within the City’s Coastal Zone, Area of Special Biological Significance (ASBS), and within an archaeologically sensitive area.

7. The subject property is not listed on the City’s Historic Resources Inventory (HRI). A Phase I Historic Review prepared for the property by a qualified historian (Seavey, October 17, 2022) concluded the property is ineligible as a historical resource.

8. Due to the limited scope of the proposed project, submittal of an archaeological report is not required or warranted. The proposed ground disturbance for the elevator shaft will occur in a previously-developed area, and conditions of approval have been added to address inadvertent discovery of cultural resources.

9. Pursuant to Pacific Grove Municipal Code (PGMC) Sections 23.90.050, City CDP Determinations, and 23.90.040, CDP Exemptions, Community Development Department (CDD) staff determined the project to be exempt from the requirement to obtain a Coastal Development Permit (CDP). CDD staff forwarded this determination to the Coastal Commission on December 15, 2022.

10. This project has been determined to be Categorically Exempt per California Environmental Quality Act (CEQA) Guidelines, Section 15301, Class 1, Existing Facilities, and the exceptions to the exemptions in Section 15300.2 of the CEQA Guidelines do not apply.

11. At a noticed Special Meeting of the City of Pacific Grove Architectural Review Board (ARB) on May 16, 2023, the ARB reviewed the proposed project and voted 4 - 0 -1 (4 yes, 0 noes, and 1 absent) to recommend the Planning Commission deny the Use Permit and Variance, and to grant approval of the Architectural Permit subject to plans that conform to the existing code. The ARB recommended the elevator only provide access to the second floor and be contained within the existing structure footprint, and that access to the roof deck be provided by exterior stairs or interior hatch.

12. In response to the ARB's recommendation, the applicant revised the proposed project design to decrease the height and footprint of the elevator shaft and to decrease the height of the main structure. The revisions resulted in the following: a 9-inch height reduction of the elevator shaft, from 27.75 feet to 27.00 feet; a 4-inch reduction of the main dwelling height, including the roof deck railing, from 22.5 feet to 22.17 feet; and an increase of the rear setback (i.e., a reduction of the encroachment) from 6 inches to 1 foot. The building and site coverages, although slightly decreased, remain approximately the same as initially proposed. The revised plans also reflect a building code requirement to have an open staircase to the roof deck in addition to the elevator.

13. At a noticed Regular Meeting on September 14, 2023, the City of Pacific Grove Planning Commission (PC) considered the project, including the ARB's recommendation and the applicant's revisions, and voted 4 - 1 -2 (4 yes, 1 no, and 2 absent) to approve the project as revised.

14. On September 22, 2023, the appellant submitted a timely appeal of the Planning Commission’s decision to approve AP-UP-VAR 22-0284.

15. Pursuant to the appeal, the City of Pacific Grove City Council considered the appeal and the proposed project at a noticed public hearing on November 1, 2023.

FINDINGS
For an Architectural Permit per PGMC Section 23.70.060(f)

1. The architecture and general appearance of the completed project are compatible with the neighborhood.

The proposed project includes the remodel of an existing 2,343 square foot two-story duplex, including installation of an exterior elevator and construction of a roof deck. As designed, the project would be compatible with other residences in the neighborhood. The surrounding streetscape is comprised of residences with varying architectural styles, alignments, and scales. The proposed exterior materials will match the existing structure and include a tile roof and clear glass with stainless steel railing for the roof deck. The elevator shaft and enclosed stairs would be constructed on the rear elevation opposite Ocean View Boulevard. As designed, the project would not result in adverse visual impacts along Ocean View Boulevard.

2. The completed project will neither be detrimental to the orderly and harmonious development of the city nor impair the desirability of investment or occupation in the neighborhood.

There is no indication or evidence that the proposed project would either negatively affect the orderly and harmonious development of the city or impair the desirability of investment in the neighborhood. The proposed development would increase the value of the property and contribute to the desirability of investment in the Beach Tract neighborhood, and would provide accessibility to the proposed roof deck.

3. The council has been guided by and referenced applicable provisions of the architectural review guidelines in making its determinations on single-family residences.

The architectural style, materials and site design are in substantial conformance with the City’s Architectural Review Guidelines. Specifically, Guidelines Nos. 7 and 9 relating to the second-floor balcony, roof deck, and neighbors' views were used in analyzing the proposed project to ensure compliance.

For a Use Permit per PGMC Section 23.70.080(a)(4)

1. The proposed use is allowed with a use permit within the applicable zoning district and complies with all applicable provisions of these regulations.

The proposed use is a continuation of an existing use (duplex) permitted in the R-3-PGB zoning district. Per PGMC Section 23.64.120, a Use Permit is required to allow the elevator shaft to exceed the maximum allowed height of 25 feet. The elevator shaft would rise to a height of 27 feet (i.e., 2 feet over the allowed maximum height) to provide access to the second story of the duplex and to the roof deck.

2. The proposed use is consistent with the general plan, the local coastal program, and any applicable specific plan.

The proposed use is consistent with the general plan and local coastal program. No specific plans apply to the subject property.

3. The establishment, maintenance, or operation of the use will not, under the circumstances of the particular case, be detrimental to the health, safety, or general welfare of persons residing or working in the neighborhood of the proposed use.

The proposed use will not be detrimental to health, safety, or general welfare because it is a continuation of an existing use permitted in the R-3-PGB zoning district.

4. The use, as described and conditionally approved, will not be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the city.

The proposed use will not be detrimental or injurious to property and improvements in the neighborhood because the remodel and construction of an elevator shaft and roof deck will improve the desirability of the property.

5. The location, size, design, and operating characteristics of the proposed use are compatible with the existing and future land uses in the vicinity.

The proposed project is compatible with other land uses in the vicinity, which consists primarily of one- or two-story single-family residences and duplexes on small lots.

For a Variance per PGMC Section 23.70.080(b)(4)

1. That there are exceptional or extraordinary circumstances or conditions applying to the land, buildings, or use referred to in the application, which circumstances or conditions do not apply generally to land, buildings, and/or uses in the same zoning district.

The subject property is small and nonconforming with regard to building coverage, site coverage, and setbacks. The Variance is required to allow a further reduction of the rear setback, and minor increases to both building and site coverage. As proposed and compared, the property would be similar to other properties in the neighborhood and the R3-PGB zoning district.

2. That the granting of the variance is necessary for the preservation and enjoyment of substantial property rights of the petitioner.

Without said variance the property would be adversely affected by the strict implementation of the zoning regulations, where other properties in the R-3-PGB zoning would not be affected in the same manner. Granting the variance would allow use of the property at a level similar to the level of use of other properties in the vicinity.

3. That the granting of such variance will not, under the circumstances of the particular case, materially affect adversely the health or safety of persons residing or working in the neighborhood of the property of the applicant and will not, under the circumstances of the particular case, be materially detrimental to the public welfare or injurious to property or improvements in the neighborhood.

The proposed variance will accommodate the elevator shaft to provide access to the second story of the duplex and to the roof deck. Most of the elevator shaft would be placed over existing impervious surface site coverage. Granting said variance, under the circumstances of this particular case, will not be materially detrimental to the public welfare or injurious to property or improvements in the neighborhood.

In approving the permit, the following conditions of approval are imposed and deemed reasonable and necessary to ensure that the approval will comply with the findings cited above.

CONDITIONS OF APPROVAL

1. Permit Expiration. This permit shall expire and be null and void if a building permit has not been applied for within two (2) years from and after the date of approval.

Application for extension of this approval must be made prior to the expiration date.

2. Construction Compliance. All construction shall occur in general compliance with the proposal as set forth in the application, subject to any special conditions of approval herein. Any deviation from approvals must be reviewed and approved by staff and may require subsequent discretionary approval.

3. Terms and Conditions. These terms and conditions shall run with the land and bind to all future owners and possessors of the subject property, unless amended. Amendments to this permit may be achieved only if an application is made and approved, pursuant to the Zoning Code.

4. Public Works, Fire and Building. Review and approval by the Public Works and Fire Departments, and Building Division, are required prior to issuance of a building permit.

Work taking place in the public right-of- way shall require an encroachment permit prior to issuance of the building permit.

5. Conformance to Plans. Development of the site shall conform to the approved plans for “Remodel and Addition for Bruno” dated August 8, 2023, on file with the Community Development Department and to the Building Code, with the exception of any subsequently approved changes.

6. Lighting. All exterior lighting must conform to LUP Policy DES-6.

7. Building Plans. All conditions of approval for the Planning permit(s) shall be printed on a full-size plan sheet and included with the construction plan set submitted to the Building Division.

8. Archaeology and Inadvertent Discovery. When human remains or artifacts are exposed, the Health and Safety Code § 7050.5 requires that no further excavation or disturbance occurs in the area and that the county coroner is called so that the coroner can verify that the remains are not subject to medical jurisprudence. Within 24 hours of notification, the coroner calls the Native American Heritage Commission if the remains are known or thought to be Native American. The Native American Heritage Commission selects the Most Likely Descendant (MLD) from a rotating list of MLDs.

The MLD has 24 hours to respond. All work will halt with a 50-yard radius until an osteologist can examine the remains, and a treatment plan for any said remains has been provided according to the MLD.

9. Cultural and/or Archaeological Artifacts. If such artifacts are unexpectedly discovered during ground disturbing activities, work shall be halted until the item(s) can be evaluated by a qualified professional archaeologist. If the find is determined to be significant, appropriate mitigation will be formulated, with the approval of the lead agency, and implemented prior to recommencement of work.

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

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

2. The Council denies the appeal and affirms the decision of the Planning Commission to approve AP-UP-VAR 22-0284.

3. The Council finds the project categorically exempt per CEQA Guidelines, Section 15301, Class 1, Existing Facilities, and also finds that the exceptions to the exemptions in Section 15300.2 of the CEQA Guidelines do not apply.

4. The Council APPROVES this permit (Application No. 22-0284) to allow the remodel an existing 2,343 square foot two-story duplex, including installation of an exterior elevator and construction of a roof deck.

5. The required Findings and Conditions of Approval are hereby approved and incorporated herein by reference.

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

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

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________________
BILL PEAKE, Mayor
ATTEST:
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
BRIAN PIERIK, City Attorney

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Page 1 of 4 ends

Pacific Grove City CouncilNovember 1, 2023

Pacific Grove City Council
November 1, 2023