Pacific Grove City Council
April 17, 2024

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Election Date: 11/6/2012 11/4/2014 4/19/2016 11/8/2016 11/6/2018 11/3/2020 4/12/2022 11/8/22 Election Type: Presidential General Special Presidential General Presidential Special General Registered Voters: 9,547 9,213 9,338 10,165 10,025 10,694 10,450 10,488 Ballots Cast: 8,049 5,700 5,134 8,463 7,960 9,677 4,051 7,334 Turnout: 84.31% 61.87% 54.98% 83.26% 79.40% 90.49% 38.77% 69.93% Council Candidates: 9 6 0 6 7 6 0 6
Mayoral Candidates: 2 2 0 2 3 1 0 2
Local Measures: 1 0 1 1 2 1 1 2
Election Cost: $46,469 $17,055 $79,327 $38,503 $53,583 $60,671 $124,484 $63,595 Cost Per Registered Voter: $4.87 $1.85 $8.50 $3.79 $5.34 $5.67 $11.91 $6.06 PGCC 4-17-24

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: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: April 17, 2024
SUBJECT: Cedar, Sunset & Congress Intersection Improvements Project CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive report.

Select Single Build Alternative, Option 1, Roundabout with Cedar Access Relocated (Preferred Alternative).

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

DISCUSSION
Background
In 2016, the Transportation Agency for Monterey County (TAMC), in partnership with the City of Pacific Grove (City) and California Department of Transportation (Caltrans), conducted a study of the State Route 68 Corridor (SR68) segment located in Pacific Grove City bounds, the Pacific Grove Hwy 68 Corridor Study. The study is available at:
https://www.tamcmonterey.org/pacific-grove-hwy-68-corridor-study The intent of the study was to identify improvements that would provide safer access for all modes of travel. The study identified several areas along the State Route corridor, managed by Caltrans and within the City boundary, that are ripe for safety improvements. The City has focused on the implementation of complete street improvements to the five-legged intersection of Sunset Drive, Congress Avenue and Cedar Street. This intersection has been selected as it is adjacent to two schools, is heavily trafficked, and has historically been an area of interest for improvement by the community and TAMC.

On November 8, 2016, TAMC placed the Transportation Safety & Investment Plan (Measure X) on the ballot, the measure was approved with 67.7% approval from Monterey County voters. The measure, through retail transactions and use tax of three-eighths of one percent (3/8%) is anticipated to generate an estimated $20 million annually for 30 years. The revenue from the sales tax measure is used for transportation safety and mobility projects in Monterey County. 40% of the revenue is allocated to Regional Projects via the Regional Safety Mobility and Walkability Program. TAMC has identified and allocated funding for specific projects across the county; one of the projects identified includes improvements to the SR68 Corridor within Pacific Grove bounds. A total of $5 Million has been allocated.

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allocated.

On October 19, 2022, Council approved a Measure X funding agreement with TAMC for an amount not to exceed $1,000,000, of the larger $5M bucket, to the initial phase and kick off the project. At the July 5, 2023 meeting, Council authorized the City to enter into an agreement with GHD for Phase I of the Congress, Cedar, and Sunset Intersection Safety Improvement Project in an amount not to exceed $797,574. Since the commencement of the project and the authorization of the agreement with GHD, significant progress has been made.

To make effective use of City resources and avoid delays to the Project, two approval processes are being pursued in parallel with Caltrans:

1. A traditional Project Initiation (PSR-PDS) / Project Approval (Project Report) / PS&E approach, and

2. A streamlined Design Engineering Evaluation Report (DEER) approach.

Because the project is on a local route, is low-speed, and serves a complete streets/access improvement purpose, it may be eligible for Caltrans approval via a DEER. The DEER process is desirable for time and cost efficiency. The DEER would replace both the Project Initiation (PSR-PDS) Project Report, documenting both project initiation and project approval with a single document. The City would also not be required to reimburse Caltrans for costs incurred during development and approval of the DEER, representing significant time and money savings for the City and streamlining reviews on the Caltrans front. Because the DEER process is an unconventional approach, if Caltrans denies our request to proceed using a DEER, the traditional PSR-PDS / Project Report / PS&E approach would need to be pursued, potentially delaying project approval.

The traditional PSR-PDS / Project Report / PS&E approach is used on most Caltrans oversight projects and no special approval from Caltrans is required to proceed with this approach. In addition to requiring a lengthier overall schedule (with project initiation and project approval documented one-after-the-other rather than in a single document like the DEER), this approach would require the City to reimburse Caltrans for staff time/costs incurred during the development and approval of the PSR-PDS during project initiation.

The City has continued to work with CalTrans to determine the correct path moving forward.

Project Alternatives
Simultaneously, to gather community feedback on design elements and alternatives, the City in conjunction with GHD, hosted the following community meetings and outreach opportunities:

1. City Council Mtg: December 20, 2023

2. Community Mtg: January 9, 2024

3. Community Workshop: January 22, 2024

4. Traffic Safety Commission: January 23, 2024

5. Targeted Public Survey for Cedar Options: (230 direct mailers); Ran mid-Feb through End of March Conceptual design alternatives explored and discussed at the community meetings included a 4-way stop option and 3 roundabout variations. All options are noted below and included in the attachment. · Roundabout with Cedar Access Relocated
· Roundabout with no Cedar Access
· Roundabout with Cedar Ingress
· 4-Way Stop
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One of the largest variations between the roundabout alternatives was how to address Cedar Street. At various public meetings preferences on how to address Cedar were provided by community members, but to gain insight from those who would be directly impacted, the City sent a targeted mailer with a public survey to those living directly on or adjacent to the impacted section of Cedar Street.

The community meetings and survey provided staff and GHD with valuable information on community preferences and concerns. Ultimately, this information has played a direct role in shaping the preferred alternative, option 1 a roundabout with Cedar access relocated.

OPTIONS

1. Provide alternative direction.

2. Select an alternative configuration for consideration.

FINANCIAL IMPACT:

There is no fiscal impact associated with receiving this report. As noted above, this project is funded via Measure X and is approved as part of the Capital Improvement Program.

FOCUSED PRIORITY AREA: Infrastructure
Attachments
Design Options
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Alternatives
Option 3: w/ Cedar Ingress
1 Option 2: no Cedar Access Option 1 Preferred: Cedar Access Relocated
Option 4: 4 way stop
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Agenda No. 13 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Robert Perrault, City Manager
MEETING DATE: April 17, 2024
SUBJECT: Authorize the City Manager to send a letter to Monterey One Water affirming the City of Pacific Grove's intent to move the City's Billing for Wastewater (Sewer) charges to the County of Monterey Property tax bill.

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

RECOMMENDATION
Direct the City Manager to send a letter to Monterey One Water confirming the City's intent to move the City's charges for wastewater collection to the County of Monterey's property tax bill and carry out the tasks to accomplish the transfer by July 1, 2024.

DISCUSSION
Wastewater (sewer) services are provided by two agencies: the City of Pacific Grove and Monterey One Water (M1W). The City of Pacific Grove is responsible for maintaining and improving the wastewater collection system for the entire City of Pacific Grove. Untreated wastewater is collected in this system and sent to M1W’s regional conveyance system where it is pumped to M1W’s facility for treatment before safely being reintroduced into the environment. The City charges customers for collecting wastewater in accordance with service rates approved by the City Council. Monterey One Water charges for its conveyance and treatment service in accordance with rates approved by its Board of Directors. For years, M1W has collected the City’s charges on the City’s behalf along with their conveyance/treatment costs every two months. Recently, M1W has decided to move the collection of their charges to Monterey County to be collected along with property tax. The purpose of this item is to discuss the City’s willingness to also transfer the collection of its wastewater fees to the County.

According to M1W, property owners are responsible for the payments. In some cases, the property owner chooses to forward their bill to a tenant or third-party payee.

At its City Council meeting held on June 21, 2023, the Council received a presentation from M1W regarding its intent to change their billing to an annual fee to be included on a parcel’s property tax bill.

On October 30, 2023, the M1W Board of Directors voted to change the billing process from bi-monthly direct billing to property tax billing within the M1W service area, citing the following advantages:

Shifting from the current billing process to the County property tax bill would eliminate the need to address limitations in M1W’s accounting software. The software used to maintain M1W’s billing will be replaced, and eliminating the need to handle billing will increase the efficiency of the Agency.

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According to M1W, shifting from direct billing to property tax billing would likely reduce the number of late and delinquent accounts.

M1W will save approximately $400,000 resulting from this change, e.g., decrease in third party vendor expenses and an increase in revenue collections.

With M1W moving its billing for wastewater service to the County, it is worthwhile for the city to consider doing the same. A few of the reasons for consideration:

It would resolve a potential issue of customers receiving two separate billings for sewer service, one on the tax bill and one from the city.

In the event the city decides not to transfer the billing to the County, the city would have to implement a separate system to collect billing which would add costs to the Administrative Services Department. These costs at this point have not been estimated.

The City’s share of the billing would remain the same. The City has already conducted a 218 process on the current rate structure so current customers/ property owners would not see an increase resulting from this transfer.

For those customers wishing to pay sewer related costs on a more frequent basis, the county has contracted with a third-party vendor, Easy Smart Pay, to pay a parcel’s property tax bill, and any subsequent fees like wastewater, on a monthly basis through ACH or credit card.

During the April 17th meeting, representatives from M1W will provide the Council and the public with a presentation to acquaint the Council and the public with the procedure necessary to accomplish the transfer. It is the staff’s understanding that this process is governed through the California Health and Safety Code. To effectuate the transfer, the Council would need to direct staff to prepare a written report containing a description of each parcel receiving service and the amount of charge for each year. It is my understanding that M1W would assist with this report. A public hearing would need to be held in June 2024 to consider adoption of a resolution approving the written report (Annual Rate Report) and directing collection of the City’s sewer service charges on the County tax roll. In accordance with the Health and Safety Code, adoption must occur annually and with a 2/3 vote of the Council. In addition, a revised collection agreement with M1W and possibly a separate agreement with the County would come before the Council for approval.

Staff is suggesting the following order for this item:

1. Receive Staff Report

2. Recieve Monterey One Water Presentation

3. Council questions of Staff and Monterey One Water

4. Public Comment

5. Council deliberation.

OPTIONS

1. The Council could decide to retain the responsibility for billing and collection.

2. The Council could provide staff with additional direction.

FINANCIAL IMPACT:

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The impact of providing this direction at this time would have limited fiscal impact. Should the Council determine to retain the billing and collection responsibility, additional costs would be incurred but have not been estimated.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
1 - Draft Letter of Intention
2 - Copy of Monterey One Water Implementation Plan
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April 8, 2024
Fred Marsh
Chief Financial Officer
Monterey One Water
5 Harris Court
Monterey, CA 93940
Subject: Transition of Wastewater (Sewer) Fee Collection to Monterey County Tax Bill Dear Mr. Marsh
The City of Pacific Grove intends to move the City’s wastewater (sewer) fee for collection services to the Monterey County Property Tax Bill. This change is in conjunction with Monterey One Water moving its wastewater service fee to the property tax bill, effective July 1,2024.

The City Manages and maintains the wastewater collection system for the residents and businesses in Pacific Grove. The City understands there is an annual process to place the fee for its wastewater collection service on the property tax bill and will work with Monterey One Water Staff through the required approvals for its fee.

We look forward to working with your staff to formalize this process and implement the change.

Sincerely,
Robert Perrault
Interim City Manager
Cc: Mike McCullough Director of External Affairs, Monterey One Water Dan Gho Deputy City Manager, Public Works Director
Tori Hannah, Administrative Services Director
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1 FOR A SAFE, RESILIENT COMMUNITY

COOPERATIVE

WATER SOLUTIONS
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2 Health & Safety Code

MOVING WASTEWATER BILLING TO TAX ROLL

ADOPT WASTEWATER FEES
Pursuant to HSC Section 5471
Requires 2/3 approval of governing body
M1W can collect wastewater fees on the property tax roll pursuant to Health and Safety Code (HSC) Section 5473 et seq

ADOPT RESOLUTIONS TO COLLECT FEE ON TAX ROLL
Pursuant to HSC Sections 5473 – 5473.11
Requires 2/3 approval of governing body
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3 Implementation Schedule

MOVING WASTEWATER BILLING TO TAX ROLL

MAR APR MAY JUN JUL AUG SEPT OCT
Data Upload
to County
Tax Bill Mailed to
Property Owners
(County)
Public Hearing:

1. Adopt Rate Report

2. Reaffirm Rates
Both require 2/3 vote
2024
Annual Rate Report:

Customer Notification
Customer Assistance
Program Enrollment (Phase 1)
Publish Notices of
Public Hearing (X2)
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4 Customer Outreach

MOVING WASTEWATER BILLING TO TAX ROLL
TARGETED support for
questions or clarification
e.g., presentations,
customer service help, etc
Mailings
Support
Promotions
DIRECT customer
communication using
varied mailings
e.g., bill notice, flyer, etc
BROAD reach using
paid print and digital
promotions
e.g., newspaper, social, etc
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5 Customer Assistance Program

MOVING WASTEWATER BILLING TO TAX ROLL

ANNUAL ENROLLMENT NOW OPEN

PROGRAM ELIGIBILITY

1. Property: Single unit residential parcel
-AND2. Customer: Income verification
Household Size
1 2 3 4 5 6 7 8
Lower Income
(60% AMI) $54,800 $62,650 $70,475 $78,275 $84,575 $90,690 $97,075 $103,350 Income verification through PG&E CARE/FERA enrollment OR income level.

New income limits for eligibility:

Deadlines, eligibility details, and application available at:
www.montereyonewater.org/assistance or 831-372-3367

PROGRAM ASSISTANCE
• Four-Month credit for M1W’s service deducted
from amount to be placed on property tax roll
• Funding is limited. Applications will be reviewed
in the order in which they are received.

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6 Thank You

MOVING WASTEWATER BILLING TO TAX ROLL
montereyonewater.org/billing-change
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Agenda No. 13 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Brian Pierik, City Attorney
MEETING DATE: April 17, 2024
SUBJECT: Resolution Approving Employment Agreement Between the City of Pacific Grove and Matthew Mogensen for the position of City Manager CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Motion to adopt Resolution Approving Employment Agreement Between the City of Pacific Grove and Matthew Mogensen for the position of City Manager.

1. 2. Alternative action based on direction of City Council related to this subject matter.

DISCUSSION
On August 2, 2023, the City Council created a City Manager Recruitment Subcommittee comprised of Mayor Peake, Mayor Pro Tempore Smith and Councilmember Coletti with responsibility to assist with City Manager recruitment efforts.

On August 11, 2023, the City issued a Request for Proposal (RFP) for City Manager Recruitment Services.

On August 30, 2023, the City Council approved an agreement with Bob Murray and Associates (Gary Phillips) for interim and City Manager recruitment services.

On November 6, 2023, Robert Perrault commenced as Interim City Manager for the City.

Following a diligent process for receiving and reviewing multiple applications for the City Manager position, and interviews of selected candidates, the City Council has determined that Matthew Mogensen should be appointed as the City Manager subject to the execution of an Employment Agreement and appropriate background checks.

The resume of Mr. Mogensen is Attachment 1 which shows substantial experience including:

October 2018 to present: Assistant City Manager for the City of Marina January 2015 to October 2018: Planning and Building Director for the City of Fountain Valley February 2008 to January 2015: Assistant to the City Manager for the City of Fountain Valley July 2006 to February 2008: Assistant Planner for the City of Brea October 2002 to March 2004: Paid Intern form Development Services Department for the City of Brea.

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of Brea.

Mr. Mogensen obtained his Bachelor of Arts degrees from California State University in Fresno and his Master of Public Administration from California State Polytechnic University in Pomona.

Attachment 2 is a proposed Resolution Approving Employment Agreement Between The City Of Pacific Grove And Matthew Mogensen For The Position Of City Manager.

Mr. Morgensen would commence work for the City on May 6, 2024.

OPTIONS
Do not adopt the proposed Resolution.

FINANCIAL IMPACT:

Salary for Matthew Mogensen of $251,680 and approximately $41,000 for the benefits as stated in the Employment Agreement Between the City of Pacific Grove and Matthew Mogensen for the position of City Manager. The actual benefit amount may vary based on the employee's selection of health benefits.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
1 - Resume of Matthew Mogensen
2 - Reso Approving CM Emp Agt Between City and Matthew Mogensen PGCC 4-17-24

MATTHEW R. MOGENSEN
PROFILE SUMMARY:

Experienced public administrator with twenty years managing and providing high-quality responsive local government services in full-service cities. A hands-on lead-by-example approach with the proven ability to support and lead staff at all levels through promoting a collaborative team environment focused on inclusiveness, continued improvement, staff development, and proactively meeting challenges. Results-oriented and successful at leading the development and implementation of programs, services, projects and community priorities. Adept at streamlining operations to be fiscally prudent and enhance customer service. Known to foster positive relationships and to represent the City and its interests in the community and region.

WORK EXPERIENCE:

Assistant City Manager, City of Marina
October 2018 to present
Served as acting city manager as needed and provided leadership to departments.

Supported the City Council on routine matters and made policy recommendations.

Collaborated with City Council on efforts such as policy development, priority setting, community outreach efforts, and initiatives important to Council Members.

Facilitated stakeholder participation in development of solutions to difficult problems such as parking management and habitat conservation vs. economic development.

Ensured the successful implementation of City Council policies and priorities.

Served on City team renegotiating agreements to restart large scale developments projects on former Army property with complex restrictions and economics.

Led high-profile projects including council districting, cannabis business permitting, Below Market Rate Housing, habitat management efforts, and federal and state permitting for city projects.

Hired and supervised staff, negotiated labor contracts, and managed labor relations.

Represented the city on a regional visitors bureau, a multi-city economic development team, a Blue Zones committee, homeless services coalition, a broadband consortium, and a multi-agency JPA for the reuse of former Fort Ord.

Spearheaded economic development successes to attract new revenue-generating employers, hotels, restaurants, and a car dealership.

Directed the airport and worked with state and federal agencies to fund projects.

Negotiated and managed leases on city-owned property.

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Planning and Building Director, City of Fountain Valley January 2015 to October 2018
Managed the business, agendas, and minutes of the Planning Commission and Housing and Community Development Board.

Led current and advanced planning, building and safety, code enforcement, housing and community development, CDBG, and housing authority.

Served as acting city manager and city representative on regional bodies.

Contributed to long-term fiscal stability solutions through sales tax measures and urban renewal projects.

Facilitated the development and adoption of a 155-acre specific plan to foster reinvestment and renewal of the freeway corridor.

Obtained policy maker support and initiated a general plan update.

Negotiated improvements for underperforming commercial centers.

Provided leadership for the Orange County Planning Directors Association.

Established a culture of economic development in planning and building services.

Modernized codes to improve our ability to help residents and businesses.

Revised the development review process for clarity and certainty for applicants.

Enhanced staff performance and engagement through coaching and mentorship.

Assistant to the City Manager, City of Fountain Valley
February 2008 to January 2015
Oversaw and managed the budgets of the City Clerks Office, IT, interdepartmental committees, and the risk management and self insurance program.

Facilitated city-wide projects such as adopting alternative contacting procedures and implementing technology solutions to increase efficiency and effectiveness.

Streamlined City Clerk’s Office functions to save $140,000 annually.

Initiated SOPs to reduce costs, staff time, effectiveness, and customer service.

Analyzed state and federal legislation and communicated city positions to legislative representatives.

Liaison to the League of Cities, Chamber of Commerce, CA Joint Powers Insurance Authority, Energy Partnership, and Orange County economic development network.

Modernized Administrative Regulations and City Council policies.

Developed and implemented economic development and marketing programs.

Served as City PIO, developed online presence, and community engagement.

Assistant Planner, City of Brea
July 2005 to February 2008
Processed complex infill development projects while serving on internal city-wide leadership committees.

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Assistant Project Manager II, Hogle-Ireland - contract staff for the City of Montebello March 2004 to July 2005
Provided professional planning services to residents and businesses.

Development Services Department Paid Intern, City of Brea October 2002 to March 2004
Assisted divisions with grant writing, CIP budget development, and SOPs.

CERTIFICATION / ACADEMIES:

New and Future City Manager’s Seminar
California Joint Powers Insurance Authority Leadership Academy Continuing Education for Public Officials Leadership Training California Public Employees Labor Relations Association Academies 1-3 California Joint Powers Insurance Authority Management Academy PROFESSIONAL AFFILIATIONS:

California City Managers Foundation
International City/County Management Association
American Planning Association
International Conference of Shopping Centers
EDUCATION:

Masters of Public Administration, California State Polytechnic University, Pomona 2003 – 2006
Emphasis in Public Policy and Public Finance
Successfully defended thesis concerning the positive effects that public initiated investment activities have on surrounding properties.

Bachelor of Arts in Geography, California State University, Fullerton 2001 – 2003
Concentration in Environmental Planning and Analysis
Associate of Arts, Cuesta College, San Luis Obispo/ Golden West College, Huntington Beach
1995-2000
Arroyo Grande High School, Arroyo Grande, California
1990 - 1994
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RESOLUTION NO. 24-xx

RESOLUTION APPROVING EMPLOYMENT AGREEMENT BETWEEN THE

CITY OF PACIFIC GROVE AND MATTHEW MOGENSEN FOR THE POSITION

OF CITY MANAGER

FINDINGS

1. The City Council desires to retain the services of Matthew Morgensen (“Employee”) as City Manager of the City.

2. The City Council desires to provide certain salary, benefits, establish certain conditions of employment, and establish working conditions for Employee.

3. The functions, duties and prerogatives of the City Manager are specified in Article 19 of the Pacific Grove City Charter and in Chapter 2.06 of the Pacific Grove Municipal Code. The provisions of the City Charter and Chapter 2.06 of the Municipal Code, as amended from time to time, control should any conflict exist pertaining to either this Resolution or the Agreement that it authorizes.

4. On December 6, 2023, the City Council adopted Resolution 23-035 approving the Job Description for the City Manager.

5. Employee desires to provide said services as City Manager to the City under the terms and conditions hereinafter set forth in the Employment Agreement Between the City of Pacific Grove and Matthew Mogensen, a true copy of which is attached hereto as Exhibit “1”.

6. Employee is willing and qualified to provide City Manager services to the City.

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

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

2. The Council hereby adopts this Resolution approving the Employment Agreement Between the City of Pacific Grove and Matthew Mogensen for the position of City Manager.

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

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PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 17th day of April 2024, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
_______________________________
BILL PEAKE, Mayor
ATTEST:

DATED:_______________________
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
BRIAN A. PIERIK, City Attorney
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EMPLOYMENT AGREEMENT – Page 1 of 12

EMPLOYMENT AGREEMENT BETWEEN

THE CITY OF PACIFIC GROVE AND MATTHEW MOGENSEN
This Employment Agreement (“Agreement”) is made by and between the City of Pacific Grove (“City”) and Matthew Mogensen (“Employee”). City and Employee are hereinafter collectively referred to as the “Parties.”

RECITALS
WHEREAS, the City desires to retain the services of Employee as City Manager of the City; and
WHEREAS, the City Council of the City desires to provide certain benefits, establish certain conditions of employment, and establish working conditions for Employee; and WHEREAS, Employee desires to provide said services as City Manager to the City under the terms and conditions hereinafter set forth; and
WHEREAS, Employee represents that Employee is willing and qualified to provide such services to the City; and
WHEREFORE, in consideration of the respective mutual covenants and promises hereinafter contained and made subject to all of the terms and conditions hereof, the Parties hereto do agree as follows:

OPERATIVE PROVISIONS

1. Effective Date. This Agreement shall become effective on the date that the Agreement is signed by the Mayor (“Effective Date”).

2. Position and Duties. Employee shall serve as the City Manager and shall perform the functions, services, and duties specified in Article 19 of the City’s Charter and City Resolution No. 23-035, and perform other legally permissible and proper duties and functions as designated by the City Council from time to time. Employee shall provide services at the direction and under the supervision of the City Council. It is the intent of the Parties that Employee 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 Employee’s activities and those of the City. Without additional compensation, Employee shall provide such other services as are customary and appropriate to the position of City Manager, together with such additional services assigned from time to time by the City Council as may be consistent with California law, the City’s Charter and the City’s Municipal Code. Employee shall devote best efforts and attention to the performance of these duties. Employee agrees to remain in the exclusive employ of the City while employed.

EXHIBIT “1”
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EMPLOYMENT AGREEMENT – Page 2 of 12

3. At-Will. Employee acknowledges that Employee is an at-will employee of the City who shall serve at the pleasure of the City Council at all times during the period of Employee's service hereunder. 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 right to a hearing before or after a decision by the City Council to terminate Employee’s employment, except as is expressly provided by law, including but not limited to under the Brown Act (Gov. Code sec. 54950 et seq.). Employee understands that notwithstanding any other applicable laws, resolutions, and policies, they have no right to pre-or-post-disciplinary due process. 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. 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 11 of this Agreement. This at-will employment relationship shall be expressly subject to the rights and obligations of the City and Employee, as set forth in Section 11 below.

4. Term. The term of this Agreement shall commence on Employee’s first day of City employment, which shall be May 6, 2024 (“Commencement Date”). This Agreement shall remain in effect until terminated by either party hereto as provided herein (“Term”), consistent with the nature of Employee’s at-will employment status.

5. Hours of Work. Employee is an exempt employee but is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager's position.

Employee does not have set hours of work as Employee is expected to be available at all times. Employee shall maintain regular office hours at City Hall between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, with flexibility based on work demand, excepting holidays or furlough days, except when absent in the proper performance of Employee’s duties and responsibilities as City Manager, or when utilizing leave. Employee may, with Council’s express written approval, flex their working hours from something other than 8:00 a.m. to 5:00 p.m. on specific days of the week and/or change their work location from City Hall to a permissible remote work location for a specified period time.

6. Evaluation of Performance. The City Council shall conduct performance evaluations of the City Manager in a manner consistent with the terms in this Section6 and City Council Policy No. 000-27, adopted on February 2, 2022 as Resolution No. 22-007. While the City Council shall consult with the City Manager over the format and process of any evaluation, the ultimate format and process shall be at the City Council’s discretion. The City shall conduct an initial performance evaluation following the first six (6) months of employment and again at the twelve (12) month mark, then annually thereafter or as Council otherwise deems necessary. Annual performance evaluations shall be provided to the City Manager within sixty days of the anniversary of the Commencement Date. Nothing in this section shall prohibit the City Council from evaluating the City Manager's performance at any other interval or time. The City Council agrees to provide Employee a reasonable opportunity to remedy any performance weaknesses or deficiencies. City Council shall review base salary and/or benefits of the Employee at the time of the Employee’s annual performance PGCC 4-17-24

EMPLOYMENT AGREEMENT – Page 3 of 12
review, taking into account factors such as Employee’s performance, available City budget, and any recent or anticipated cost of living adjustments that have or will be given to other managerial employees for the City. Such evaluations will become part of Employee’s personnel file.

7. Compensation. Employee shall receive, as starting base salary for performance of the duties of City Manager, the sum of TWO HUNDRED AND FIFTY ONE THOUSAND, SIX HUNDRED AND EIGHTY DOLLARS AND ZERO CENTS ($251,680.00) per year.

To the extent the salary amount prescribed by this Agreement deviates from the City’s existing salary schedule for the City Manager position, the Council will adopt an amended salary schedule as required by California Code Regulations section 570.5. Any such adjustments shall be made in open session during a regularly scheduled meeting of the City Council, with a record of said City Council action being subsequently attached to this Agreement as an automatic amendment thereto.

8. Benefits. City shall provide benefits to Employee as specified for City Department Head employees by the Municipal Code, ordinance, resolution or a Memorandum of Understanding or policy to the extent expressly approved by the City Council. To the extent a term concerning the benefits specifically identified below conflicts with this Agreement, this Agreement controls.

A. Paid Time Off. Employee shall accrue paid time off (“PTO”) at a rate of 16 hours per month (one hundred and ninety-two (192) hours annually). A PTO accrual cap of four hundred (400) hours shall apply, and the Employee shall not accrue PTO when the Employee’s unused accrual balance reaches that limit.

Any accrued but unused balance at or below the accrual cap shall be paid upon separation or retirement. Paid time off may be cashed out once per year. This cash out must be done the year before. Up to eighty (80) hours of paid time off may be cashed out, but at least forty (40) hours of paid time off must remain after cash out.

B. Tenure Date. All tenure-related benefits shall be calculated using the Commencement Date or as otherwise determined by the City’s Human Resources Department to facilitate the terms of this Agreement.

C. Automobile Allowance. In lieu of a mileage reimbursement, City shall pay Employee an automobile allowance of five hundred dollars ($500) per month.

This automobile allowance is intended to reimburse Employee for local travel, defined as travel within Monterey County or within fifty (50) miles of the City.

All travel outside of local travel shall be paid at the same rate as other City employees.

D. Holidays and Floating Personal Days Off. Employee shall observe the following nine holidays: Memorial Day, Independence Day, Labor Day, Veterans ’Day, Thanksgiving, Day After Thanksgiving, Christmas Eve Day, Christmas Day, New Years ’Day. These nine holidays shall be taken in the same PGCC 4-17-24

EMPLOYMENT AGREEMENT – Page 4 of 12
manner as the City management employees. In addition, on July 1 each year, Employee shall accrue six (6) floating personal days off to be used at Employee’s option. Employees shall have the number of floating holidays prorated based upon their date of hire. Any floating personal day off that is not used on or before June 30 shall be forfeited.

E. Retirement. The City’s CalPERS plan includes a two-tiered retirement system for members as required by the California Public Employees ’Pension Reform Act (PEPRA) of 2013. Employee shall be enrolled in the Classic member tier, as defined by CalPERS law and regulations, since Employee is not a “New Member” under CalPERS. Employee shall receive and make contributions to CalPERS retirement as specified for Classic members as with other Classic Members of the City of Pacific Grove.

F. Health, Dental, and Vision. City shall provide Employee with health, dental and vision insurance benefits in the same manner as the City provides for Department Head employees and their dependents.

G. Life Insurance. City shall provide term life insurance for Employee, with a payable death benefit of seventy-five thousand ($75,000).

H. 457 Benefit. Employee is eligible to participate in the I.R.S. Section 457 deferred compensation program in the same manner and extent as is available to Management Employee Association members. Employee will receive $100 Employer match per pay period.

I. Fitness Credit. To promote health of City employees, Employee can reimburse up to five hundred (500) dollars annually for gym memberships, fitness courses, fitness subscriptions (such as Peloton), and/or weight management programs.

9. Fidelity Bond. City shall bear the full cost of any fidelity or other bonds required of Employee relating to Employee’s service as City Manager under any law or ordinance.

10. Expenses.

A. City-Related Expenses. City agrees to pay for City-related expenses incurred by Employee in accordance with City policy.

B. Phone. Employee shall receive a city cell phone.

C. Travel. The City and Employee shall follow the uniform procedures provided in Council Policy No. 000-2, adopted on July 27, 2022 as Resolution No. 22- 040. Travel expenses for the City Manager shall be subject to approval by the Mayor in writing or, in the discretion of the Mayor, by the City Council.

D. Development Expenses. City agrees to budget for and pay reasonable professional dues, subscriptions to professional publications, and travel and PGCC 4-17-24

EMPLOYMENT AGREEMENT – Page 5 of 12
subsistence expenses for Employee for professional participation and travel, meetings, and occasions adequate to continue professional development.

Professional development expenses shall be subject to approval by the Mayor in writing or, in the discretion of the Mayor, by the City Council.

11. Termination of Agreement.

A. By City. This Agreement may be terminated by the City for any legal reason by a simple majority vote of the City Council in a regular council meeting, with written notice provided to Employee.

1. No Cause Termination. In the event that Employee’s employment as City Manager is terminated for no reason or for any reason other than as set forth below in Section 11(A)(2) or Section 11(A)(6), and Employee signs, does not revoke, and delivers to the City Council a general and full release of all claims substantially in the form attached as Exhibit A (General Release Agreement), which may be amended as required by law to effectuate a full and complete release, on or after Employee’s termination date but no later than the date set by the City Council at the time of termination in accordance with applicable law, City shall provide the following severance benefits (“Severance”):
a. If Employee is Terminated before nine months following the Commencement Date, then City shall pay Employee a severance amount equal to six (6) months’ base salary and shall pay for continued health benefits (medical, dental, and vision) for Employee and any dependents enrolled during employment for six (6) months or until Employee secures health benefits through another source, whichever comes first.
b. If Employee is Terminated between nine months-and-one-day and eleventh months following Commencement Date, City shall pay Employee a severance amount equal to eight (8) months’ base salary and shall pay for continued health benefits (medical, dental, and vision) for Employee and any dependents enrolled during employment for eight (8) months or until Employee secures health benefits through another source, whichever comes first. c. If Employee is Terminated after eleven months-and-one-day following the Commencement Date, City shall pay Employee a severance amount equal to ten (10) months’ base salary and shall pay for continued health benefits (medical, dental, and vision) for Employee and any dependents enrolled during employment for ten (10) months or until Employee secures health benefits through another source, whichever comes first.

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EMPLOYMENT AGREEMENT – Page 6 of 12
d. The Parties understand and agree that any severance-related payments through the City’s payroll system and/or on its payroll schedule shall not constitute continued employment for any purpose, nor shall they entitle Employee to any benefits beyond those set forth in this Section 11(A).
e. Severance shall include only the cash payments and health benefits described in this Section 11(A)(1).
f. For the purposes of this Section 11(A)(1), “Terminated” shall mean either of the following:
(1) The City Council ends the employment relationship; or (2) Employee resigns after the City Council or its delegee makes a written request for the Employee’s resignation.
g. The City shall, in its discretion, decide whether to issue the severance amount and the continued health benefits as either a lumpsum cash payment and direct payment of Employee’s COBRA costs for the continued health benefits period, or to issue the severancerelated payments through the City’s payroll system and/or its payroll schedule and maintain the Employee and eligible dependents on the City’s health insurance plan during the continued health benefits period. For purposes of this subsection, “continued health benefits period” refers to the duration for which the Employee and eligible dependents shall receive health insurance benefits pursuant to this Section 11(A)(1). If the City decides to issue severance-related payments through the City’s payroll system, the City shall convert the remaining non-health related payments to a lump-sum cash payment if requested by the Employee and necessary for the Employee to obtain employment elsewhere.

2. For Cause Termination. Notwithstanding Section 11(A)(1) above, City shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under the provisions of Section 11(A)(1) if Employee is terminated for Cause. Cause shall be defined as any of the following:
a. Conviction of or a plea of nolo contendere to a felony or a misdemeanor involving moral turpitude, dishonesty, breach of trust, abuse of position, or unethical conduct; or
b. Material willful misconduct, material or willful gross neglect, fraud, misappropriation, embezzlement, theft, or dishonesty; or c. Willful or repeated failure, for reasons other than disability, to devote substantially all of Employee’s business time and effort to the City or abandonment of duties; or
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EMPLOYMENT AGREEMENT – Page 7 of 12
d. Harassment, discrimination, retaliation, or “Abusive Conduct”. For the purposes of this Section, “Abusive Conduct” shall mean “conduct of an employer or employee in the workplace, with malice, that a reasonable person would find hostile, offensive, and unrelated to an employer’s legitimate business interests. Abusive conduct may include repeated infliction of verbal abuse, such as the use of derogatory remarks, insults, and epithets, verbal or physical conduct that a reasonable person would find threatening, intimidating, or humiliating, or the gratuitous sabotage or undermining of a person’s work performance. A single act shall not constitute abusive conduct, unless especially severe and egregious” or
e. Abuse of office or position. For the purposes of this Section, “abuse of office or position” means conduct that meets the criteria of a crime involving abuse of their office or position or moral turpitude, including abuse of public authority, waste, fraud, misappropriation of funds, or other illegal fiscal practices, violation of the law under color of authority, or a crime against public justice.

3. Employee Conviction. If an Employee is convicted of a crime involving an abuse of their office or position, or moral turpitude, all of the following shall apply as per Government Code, Section 53243 et seq. For the purposes of this Section, “abuse of office or position” means either an abuse of public authority, including waste, fraud, misappropriation of funds, or other illegal fiscal practices, violation of the law under color of authority, or a crime against public justice.
a. If Employee is provided with paid administrative leave pending an investigation, then Employee shall be required to fully reimburse City such amounts paid; and
b. If City pays for the legal defense of Employee, then Employee shall be required to fully reimburse City such amounts paid to the extent permitted by law; and
c. If the City paid a cash settlement to the Employee related to the termination of Employee, then Employee shall be required to fully reimburse City such amounts paid; and
d. Any severance benefits not yet paid to Employee shall be forfeited.

4. Death of Employee. If, during the Term or any extended Term, Employee dies, Employee’s estate shall receive outstanding wages and accrued PTO, but shall not be entitled to any additional compensation or payment, including Severance.

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EMPLOYMENT AGREEMENT – Page 8 of 12

5. Disability or Inability to Perform. If, as the result of long-term or permanent disability, sickness, accident, injury, mental incapacity or other personal health-related reason, the City determines that Employee is unable to perform the essential duties and functions of the City Manager role, with or without reasonable accommodation, after exhausting all authorized use of accrued PTO or other authorized paid/unpaid leave available under City policies or state or federal law, the City Council may terminate Employee.

If the City Council does elect to terminate Employee due to incapacity, Employee shall receive severance benefits provided in Section 11(A)(1) above. In exercising this option, the City will comply with its obligations under applicable state and federal disability and public retirement laws.

B. By Employee. Employee shall provide at least sixty (60) days ’written notice to City in the event Employee voluntarily resigns or retires. This notice requirement may be waived by the City in its sole discretion. In the event Employee voluntarily retires or resigns their position (unless asked to do so in writing by the City Council pursuant to Section 11(A)(1)(f)(2)), Employee shall be entitled only to earned but unpaid base salary, accrued but unpaid expenses required to be reimbursed, and any PTO accrued through the date of separation from employment.

12. Workplace Investigations. The City Council has authority, acting as a majority, to place the City Manager on paid administrative leave during the pendency of a workplace investigation in which the City Manager is the target or respondent. During such leave of absence, the Administrative Services Director shall exercise the responsibilities of the City Manager, absent action by the City Council otherwise or as otherwise dictated by City Charter or the City’s Municipal Code.

13. Conflicts of Interest.

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

B. Employee shall not, during the Term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in corporate limits in the City, except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the Council. For and during the Term of the Agreement, Employee further agrees, except for a personal residence or residential property acquired or held for future use as Employee’s personal residence, not to invest in any other real estate or property improvements within the corporate limits of the City of Pacific Grove, without the prior written consent of the Council.

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EMPLOYMENT AGREEMENT – Page 9 of 12
C. None of Employee’s immediate family members shall have interests, business ventures, or investments that would create a conflict of interest for Employee under section 13 (A) or (B) above, per California Government Code, section 87103. Immediate family is defined as Employee’s spouse and dependent children under Government Code Section 82029.

14. City Property.

A. “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 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, banking information, audit reports, forecasts, customer lists, electronic logins, user names, and passwords. 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.”
B. During Employee’s 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 the job responsibilities under this Agreement.

C. At the outset of employment, City shall provide Employee with the following equipment: laptop, credit card, parking pass, and keys. Depending on Employee’s choice, a city cell phone may be provided. If the City switches to requiring an ID or swipe pass, such will be provided. Employee acknowledges that any and all property provided to Employee will be and remain the sole property of the City.

D. Employee shall return all of the property listed in this Section and any additional City property in Employee’s possession at the conclusion of employment.

Employee shall delete and destroy all physical files and copies and all files and copies which may reside on personal electronic devices or in any electronic or virtual location that includes Proprietary Information of the City. Employee shall furnish to the City Attorney all login and password information for programs, services, subscriptions, apps, databases and other electronic, webbased or cloud-based locations that Employee has created or had access to in connection with Employee’s City employment. Employee must comply with this Section by no later than the close of business on Employee’s separation date, or as otherwise directed by the City Council or the Mayor at City Council’s delegation.

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EMPLOYMENT AGREEMENT – Page 10 of 12
E. 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.

F. Employee’s obligations under this Section shall survive the termination of employment and the expiration of this Agreement.

15. Indemnification. Subject to, in accordance with, and to the extent permitted by the California Government Claims Act, Government Code Section 810 et seq. and Government Code Section 995 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 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 employment as City Manager.

This indemnification obligation shall survive expiration and termination of this agreement only as to those matters occurring during the term of the Agreement, but for which the corresponding claim, action, demand, suit, monetary judgment or other legal or administrative proceeding occurs or continues after the expiration or termination of this Agreement.

16. Residency of City Manager. In compliance with California Constitution, Article XI, Section 10 (b), and notwithstanding any provision in the City Charter and/or the City Municipal Code or City Policies to the contrary, in order to perform the duties of the City Manager, including but not limited to, duties as the Emergency Services Director of the City, the Employee shall reside in the County of Monterey during the employment of the Employee with the City or such other location as approved in writing by the City Council.

17. General Provisions.

A. Entire Agreement. This Agreement contains the final, complete, and exclusive agreement and understanding between the Parties. Any amendments, 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.

B. 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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EMPLOYMENT AGREEMENT – Page 11 of 12
C. 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.

D. Notices. Notices given under this Agreement shall be in writing and shall be either:

1. Served personally; or

2. Delivered via first-class U.S. Mail, certified, with postage prepaid and a return receipt requested; or

3. Sent via Federal Express, or some other equivalent private mail delivery service.

Notices shall be deemed received at the earlier of actual receipt or three (3) days following deposit in the United States mail, postage prepaid.

Notices shall be directed to the addresses shown below, provided that a party may change such party's address for notice by giving written notice to the other party in accordance with this subsection.

CITY:

Attn: Mayor of the City of Pacific Grove
City Hall 300 Forest Avenue
Pacific Grove, CA 93950
Phone: (831) 648-3106
EMPLOYEE:

As on File with City in Employee’s Personnel File
E. 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.

F. 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.

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

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EMPLOYMENT AGREEMENT – Page 12 of 12
H. 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.

I. 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.

IN WITNESS THEREOF, the City of Pacific Grove has caused this Agreement to be signed and executed on its behalf by its Mayor and duly attested by its City Clerk on this ____ day of _______, 2024.

ON BEHALF OF THE CITY

Mayor Bill Peake

Date
ATTEST

City Clerk, Sandra Kandell

Date

EMPLOYEE

Matthew Mogensen

Date

APPROVED AS TO FORM

Brian Pierik
City Attorney

Date
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50202295.1/
4875-7690-8982 v1
“EXHIBIT A”

GENERAL RELEASE AGREEMENT
This General Release Agreement (“Agreement”) is entered into by and between ________________________ (“Manager”) and CITY OF PACIFIC GROVE (“City”) (individually “Party” and collectively, “Parties”), in light of the following facts:

WHEREAS, Manager’s employment with the City concluded on [DATE]; WHEREAS, Certain disputes have arisen between the City and Manager; WHEREAS, the City and Manager each deny any liability whatsoever to the other; WHEREAS, the City and Manager wish to fully and finally resolve any and all disputes they may have with each other;
WHEREAS, Manager is hereby informed that Manger has twenty-one (21) days from receipt of this Agreement to consider it. The City hereby advises Manager to consult with legal counsel before signing this Agreement;
WHEREAS, Manager acknowledges that for a period of seven (7) days following the signing of this Agreement (“Revocation Period”), Manager may revoke the Agreement, and that this Agreement shall not become effective or enforceable until the day the Revocation Period has expired;
WHEREAS, Manager acknowledges that the salary payment referenced in Section 7 of this Agreement represents all compensation, including salary, accrued benefit balances and reimbursed expenses, due and payable to Manager through the date of employment separation.

Manager also acknowledges that City has made this salary payment without regard to whether Manager signs this Agreement. The salary payment does not constitute consideration for this Agreement.

WHEREFORE, in consideration of the respective mutual covenants and promises hereinafter contained and made subject to all of the terms and conditions hereof, the Parties hereto do hereby agree as follows:

TERMS AND CONDITIONS

1. Effective Date. The effective date of this Agreement shall be the date of the signature of the last of the Parties to sign this Agreement.

2. Purpose of Agreement; Separation Date. The intent of this Agreement is, in furtherance of the Parties’ mutual desire to conclude their employment relationship, in exchange for Manager’s resignation from City employment and full release and waiver of claims against the City and commitment to the other material terms set forth in this Agreement, the City shall provide Manager with the fair and adequate consideration pursuant to Section 4 of PGCC 4-17-24

GENERAL RELEASE AGREEMENT - Page 2 of 9
this Agreement. The Parties acknowledge and agree that Manager will resign City employment effective close of business on [DATE] (the “Separation Date”).

3. Receipt of Salary Payment. Manager hereby acknowledges receipt of a check or checks for all compensation owing to Manager, including salary, accrued benefit balances and reimbursed expenses (“Salary Payment”) from the City.

4. Severance. Within five (5) business days following Manager’s signing, delivering to the City, and not revoking this Agreement, the City shall pay Manager the gross amount provided for in Section 11 of the attached Employment Agreement, less applicable deductions, and shall provide the months of medical benefits as provided in that same Section 11. Manager acknowledges that the severance is in excess of all amounts due and owing to Manager as a result of Manager’s employment by the City.

5. Release of Claims. In further exchange for the consideration and compromises set forth in this Agreement, except as set forth herein, Manager, on behalf of themselves, their heirs, estate, executors, administrators, successors and assigns, irrevocably and unconditionally releases, acquits and forever discharges the City, and its affiliates, partners, joint venturers, successors and assigns, and its officers, employees, volunteers, interns, attorneys, agents and insurers, and all persons acting by, through, under or in concert with any of them, individually and jointly (“Released Parties”) from all charges, complaints, promises, agreements, controversies, suits, rights, demands, costs, losses, debts, actions, causes of action, claims, judgments, obligations, damages, liabilities and expenses, including any claims for attorneys’ fees and costs, of any kind or character whatsoever, known and unknown, suspected, unsuspected, anticipated and unanticipated (“Released Claim” or “Released Claims”), which Manager now has, owns or holds, or claims to have, own or hold, against each or any of the Released Parties on or before Effective Date of this Agreement.

A. This release of all known or unknown, suspected or unsuspected, anticipated and unanticipated Released Claims specifically includes, without limitation:
i. any Released Claims alleged or referred to, directly or indirectly, or in any way connected with, or arising out of, or which may hereafter be claimed to arise out of
Manager’s employment with the City or actions taken
during Employee’s tenure as City Manager;
ii. any Released Claims or causes of action arising out of, in connection with or relating to Manager’s employment with the City in any position, including, but not limited to, claims or causes of action based on: federal, state, or local employment discrimination, harassment, or retaliation
statutes, laws, regulations or ordinances, based on any category protected by law, including without limitation age, sex, gender identity or expression, race, religion, national PGCC 4-17-24

GENERAL RELEASE AGREEMENT - Page 3 of 9
origin, marital status, sexual orientation, ancestry, parental status, or disability arising under Title VII of the Civil Rights Act of 1964, as amended (42 U.S.C. §§ 2000 et seq. (“Title VII”), the Age Discrimination in Employment
Act of 1967 (29 U.S.C. §§ 621 et seq. (“ADEA”), the
California Fair Employment and Housing Act (California
Government Code §§ 12900 et seq.); the Federal
Americans With Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq. (“ADA”) ; the Federal
Occupational Safety and Health Act of 1970 (29 U.S.C. §§ 651 et seq.); the California Occupational Safety and Health Act of 1973 (California Labor Code §§ 6300 et seq.); the Family Medical Leave Act (29 U.S. § 2601); the California Family Rights Act (Cal. Gov. Code § 12950 et seq.); the Unruh and George Civil Rights Acts; the Genetic
Information and Non-Discrimination Act; the
Rehabilitation Act of 1973; the Employee Retirement
Income Security Act of 1974 (29 U.S.C. § 1001 et seq.); the Equal Pay Act; the Fair Labor Standards Act (29 U.S.C. § 203); qui tam claims under Federal False Claim Act (31
U.S.C. §§ 3730 et seq.); 42 U.S.C. Section 1981; the
California Constitution; the California Labor Code; the California Government Code; the Federal Equal Pay
Act of 1963 (29 U.S.C. §§ 201 et seq. (“EPA”); the
Meyers-Milias-Brown Act (California Government Code
§§ 3500 et seq.); any other federal, state or municipal constitution, statute, regulation and/or ordinance affecting or relating to the claims and rights of the Manager; or claims for attorneys’ fees and costs;
iii. any claim (i) sounding in tort, specifically including, but not limited to, any torts related to constructive and/or wrongful discharge in violation of public policy,
defamation, invasion of privacy, intentional and negligent interference with contract and/or prospective economic
advantage, fraud and any misrepresentation, and intentional and negligent infliction of emotional distress; (ii) any breach of contract of employment or collective bargaining agreement (expressed or implied) or any grievance initiated by an employee under a collective bargaining agreement; or (iii) any covenant of good faith and fair dealing (express or implied); or
iv. any recovery from the California Joint Powers Insurance Authority for payment under the Chief Executive
Separation Payment (CESP) Program; or
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GENERAL RELEASE AGREEMENT - Page 4 of 9
v. Any administrative claim or charge that may be submitted to a local, state, or federal agency, including without limitation the California Civil Rights Department, the
California Department of Labor Standards and
Enforcement, the California Public Employment Relations Board, the U.S. Department of Labor, but excluding the
U.S. Equal Employment Opportunity Commission
(“EEOC”).

B. The Released Claims subject to release under this Agreement do not include: any rights that cannot be waived as a matter of law; any rights Manager has to file or pursue a claim for workers’ compensation or unemployment insurance; any rights or claims for indemnification the City may have according to any written indemnification agreement with the City to which Manager is a party or under applicable law; or any claims for breach of this Agreement.

C. Notwithstanding the foregoing, this Agreement and the releases contained within, do not limit Manager’s ability to bring an administrative charge with an administrative agency, but Manager expressly waives and releases any right to recover any type of personal relief from the City, including but not limited to monetary damages or reinstatement, in any administrative action or proceeding, whether California or federal, and whether brought by Manager or on Manager’s behalf by an administrative agency, related in any way to the matters released herein. Furthermore, nothing in this Agreement prohibits the Parties from reporting possible violations of law or regulation to any government agency or entity, including but not limited to the Equal Employment Opportunity Commission and/or the California Civil Rights Department, or making other disclosures that are protected under the whistleblower provisions of law.

6. Waiver of Unknown Claims/Specific Waiver of Section 1542. Manager specifically and expressly waives all rights under the provisions of Section 1542 of the Civil Code of California ("Section 1542 Waiver") with respect to the Released Claims. Section 1542 Waiver provides as follows:

GENERAL RELEASE DOES NOT EXTEND TO CLAIMS

THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN [EMPLOYEE’S] FAVOR

AT THE TIME OF EXECUTING THE RELEASE AND THAT,
IF KNOWN BY [EMPLOYEE], WOULD HAVE MATERIALLY
AFFECTED [EMPLOYEE’S] SETTLEMENT WITH THE
DEBTOR OR RELEASED PARTY.

Thus, for the purposes of making a complete settlement of the Released Claims which Manager may have or claims to have against the Released Parties, Manager waives and PGCC 4-17-24

GENERAL RELEASE AGREEMENT - Page 5 of 9
releases any and all Released Claims against the Released Parties, including Released Claims which are unknown and unsuspected as of the Effective Date of this Agreement.

Manager warrants that they have read this Agreement, including the Section 1542 Waiver, and have had an opportunity to consult with counsel of their own choosing about this Agreement and specifically about the Section 1542 Waiver, and that they understand this Agreement and the Section 1542 Waiver. Manager acknowledges that they may later discover facts different from or in addition to those now known or believed to be true regarding the matters released or described in this Agreement, and even so they agree that the releases and agreements contained in this Agreement shall remain effective in all respects notwithstanding any later discovery of any different or additional facts. Manager assumes any and all risk of any mistake in connection with the facts involved in the matters, disputes, or controversies released or described in this Agreement or with regard to any facts now known to them relating thereto. Manager agrees, to the fullest extent permitted by law, that they will not initiate or file a lawsuit or internal City proceeding to assert any Released Claims. If any such action is brought, this Agreement will constitute an Affirmative Defense thereto, and the City shall be entitled to recover reasonable costs and attorneys' fees incurred in defending against any Released Claim.

7. Return of Documents. Manager agrees and represents that no later than [DATE] they will return to the City all City property of which they have possession, custody or control, including, but not limited to, computer, electronic and telephonic equipment, as well as all City data (including logins and passwords) and documents whether in hard copy or maintained on any electronic media.

8. Non-Disclosure of Confidential and Proprietary Information. The Parties acknowledge that as City Manager is a high-ranking official and an officer of the City; in that capacity they were and are responsible for, among other things, executing and enforcing all laws, and policies of the City and administering the City’s affairs, controlling and administering the City’s financial affairs and supervising purchasing, contracting, and confidential information. Consistent with their Employment Agreement and the City Charter, Manager represents and agrees that they have not and shall not at any time or in any manner, either directly or indirectly, whether or not for compensation use, divulge, disclose or communicate to any person, firm, corporation or any other entity in any manner whatsoever any confidential information concerning any matters affecting or relating to the business of the City or any Proprietary Information as defined in the Employment Agreement except with the express written permission of the City or as required by court order or properlyissued subpoena. Such information includes but is not limited to, any attorney-client communications and attorney work product, or any of the information concerning the business of the City, its manner of operation, its plans, or other proprietary data where such information is not publicly known and is not otherwise subject to public inspection or disclosure.

9. Information Regarding Employment. Subject to any applicable law, the City agrees that all inquiries with respect to Manager’s separation will be referred to the Mayor or the Mayor’s delegee who will provide only the following information: (a) the date of hire and date of separation; (b) that this is a mutual and amicable separation based on a mutual desire to separate Manager from employment and provide a smooth leadership transition.

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GENERAL RELEASE AGREEMENT - Page 6 of 9

10. Personnel File Documents. No documents shall be entered into Manager’s personnel file after the Effective Date of this agreement without both Parties approving the entry of the document.

11. Age Discrimination Waiver. THIS AGREEMENT CONTAINS A WAIVER OF AGE

DISCRIMINATION CLAIMS, AND MANAGER HAS CAREFULLY READ AND ACKNOWLEDGES THE FOLLOWING:

A. In connection with the Older Workers' Benefits Protection Act (“OWBPA”) which prohibits discrimination against older workers in a variety of different contexts, Manager acknowledges that the City has advised Manager to consult with an attorney prior to signing this Agreement. As set forth in the OWBPA, 29 U.S.C. § 626(f)(1), Manager hereby acknowledges the following:
i. that this Agreement is written in a manner calculated to be understood by Manager and that Manager in fact
understands the Agreement;
ii. that this Agreement specifically refers to and waives rights or claims arising under the OWBPA;
iii. that this Agreement applies only to claims arising up to and including the Effective Date of this Agreement;
iv. that in exchange for this Agreement, Manager received value beyond that to which Manager is already entitled; v. that the City has advised Manager in writing to consult with an attorney before executing the Agreement and the
Manager has done so; and
vi. that Manager has been provided with an adequate period of time to review this Agreement.

B. Manager further acknowledges that Manager is entitled to consider this Agreement for up to twenty-one (21) calendar days before signing it.

Manager may waive the twenty-one (21) calendar day notice period; if the Manager chooses to do so, they may initial below, indicating they have made a knowing and voluntary decision to sign the Agreement prior to expiration of the twenty-one (21) calendar day period with informed consent and after consultation with legal counsel.

INITIALS: ___
C. Manager may revoke this Agreement for a period of seven (7) calendar days after executing the Agreement. Any such revocation must be communicated in writing to the City Attorney at [EMAIL ADDRESS] within the seven (7) calendar day revocation period. This Agreement shall not become effective or enforceable until the revocation period has PGCC 4-17-24

GENERAL RELEASE AGREEMENT - Page 7 of 9
expired. No payments shall be made pursuant to this Agreement prior to expiration of this revocation period.

12. Complete and Voluntary Agreement.

A. Manager acknowledges that Manager has read and understands this Agreement; that Manager has had the opportunity to seek legal counsel of Manager’s choosing and to have the terms of the Agreement fully explained to Manager; that Manager is not executing this Agreement in reliance on any promises, representations or inducements other than those contained herein; and that Manager is executing this Agreement voluntarily, free of any duress or coercion. Manager specifically understands that by entering into this Agreement Manager is forever foreclosed from pursuing any of the claims waived herein.

B. Manager acknowledges that Manager has at least five (5) business days to seek legal counsel of Manager’s choosing before signing this Agreement.

This five (5) business day period runs concurrently with the twenty-one (21) day period referenced in Section 11.B. above. Manager may waive the five (5) business day review period; if the Manager chooses to do so, Manager shall initial below, thus providing written confirmation that Manager has made a knowing and voluntary decision to sign the Agreement prior to the expiration of the five (5) business day period with informed consent and after consultation with legal counsel.

INITIALS: ____

13. Settlement Privilege. The Parties agree that if this Agreement does not become effective for any reason, this Agreement shall be deemed negotiation for settlement purposes only and will not be admissible in evidence or used for any purpose whatsoever, and will not be admissible in any trial or appeal under California Evidence Code § 1152 and Federal Rules of Evidence 408.

14. No Admissions. By entering into this Agreement, the Released Parties do not admit that they have engaged in, or are now engaging in, any unlawful conduct or employment practice. It is understood and agreed that this Agreement is not an admission of liability, and that the City specifically denies liability related in any manner to Manager’s employment. The Parties agree that it is their mutual intention that neither this Agreement nor any terms hereof shall be admissible in any other or future proceedings against the City, except a proceeding to enforce this Agreement.

15. Tax Consequences. The City has made no representation about and takes no position on the tax consequences of this Agreement. A dispute regarding the tax status of this Agreement shall not affect the validity of this Agreement. Manager has had an opportunity to discuss the potential tax consequences of this Agreement with their own counsel and agrees to indemnify and hold harmless the City from any and all costs and assessments PGCC 4-17-24

GENERAL RELEASE AGREEMENT - Page 8 of 9
including, but not limited to delinquent taxes, penalties and/or assessments levied against the City in connection with this Agreement.

16. Assignment. Manager acknowledges that they have not heretofore assigned or transferred to or purported to assign or transfer to any person or entity the Released claims or any part or portion thereof, and agrees to indemnify and hold harmless the Released Parties from and against any claim, demand, controversy, damage, debt, liability, account, reckoning, obligation, cost, expense, lien, action or cause of action (including the payment of attorneys' fees and costs actually incurred whether or not litigation commenced) based on, in connection with, or arising out of any assignment or transfer or claimed assignment or transfer thereof.

17. Entire Agreement. This Agreement supersedes any and all agreements, either oral or written, between the Parties with respect to the separation of Manager’s employment relationship with the City. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party that are not contained in this Agreement. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

18. Applicable Law and Venue. This Agreement shall be interpreted according to the laws of the State of California. Venue of any action regarding this Agreement shall be in the Monterey County Superior Court.

19. Modification. Any modification of this Agreement shall be effective only if it is in writing and signing by all Parties to this Agreement.

20. Severability. If any part of this Agreement is determined to be invalid, unlawful, or unenforceable, that part shall not be deemed to be part of this Agreement.

21. Full Execution Authority. Each Party executing this Agreement warrants and represents that it or they have full authority to bind the corresponding Party to this Agreement.

22. Attorneys’ Fees and Costs. Each Party shall bear its own attorneys’ fees and costs arising from and/or in any way related to this Agreement and the claims covered by this Agreement. Manager expressly waives any and all rights and claims Manager might otherwise have against City for reimbursement of attorneys’ fees and costs associated with any legal representation related to this Agreement and the claims covered by this Agreement.

23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall, for all purposes, be deemed an original, and all such counterparts, taken together, shall constitute the same instrument.

24. 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.

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GENERAL RELEASE AGREEMENT - Page 9 of 9

THE UNDERSIGNED HAVE READ THE FOREGOING AGREEMENT AND ACCEPT

AND AGREE TO THE PROVISIONS CONTAINED HEREIN, AND HEREBY

EXECUTE IT, KNOWINGLY AND VOLUNTARILY AND WITH FULL
UNDERSTANDING OF ITS CONSEQUENCES.

Name:

Title:

City of Pacific Grove
Date:

City Manager
Date:

APPROVED AS TO FORM AND LEGALITY:

Name:

City Attorney
Date:

Name:

Attorney for City Manager
Date:

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Agenda No. 14 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: April 17, 2024
SUBJECT: Monterey Peninsula Water Supply Project Update by Josh Stratton, Cal Am External Affairs
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive presentation.

Attachments
PPT
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1 California Am erican W ater
M onterey Peninsula W ater Supply Project Update
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Slide 1
RR0 While I appreciate the creativity, why the departure from our standard PPT cover page. No need to edit, we may use this example for a future corporate PPT template.Ruben E Rodriguez, 2024-03-20T17:01:56.815 PGCC 4-17-24

2 California American Water - Monterey
680
Miles of infrastructure – enough pipe to reach Arizona
Local em ployees w ho are m em bers of our com m unities 100
95+
FOR INTERNAL USE ONLY – CONFIDENTIAL AND PROPRIETARY – DRAFT California Am erican W ater’s Central
Division, based in Pacific Grove, is proud
to provide reliable w ater service to our
over 40,000 connections serving roughly
100,000 custom ers.

W ater Storage Tanks
NB0
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Slide 2
NB0 [@Josh Stratton] [@Luke G Gianni] This formatting looks odd to me, but maybe it's just SharePoint? Nichole Baxter, 2024-03-20T16:39:02.183
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3 Central Division – Water Systems
Basins within Service Area
:

Seaside Basin
M onterey Subbasin
180/400 Aquifer
Langley Area
FOR INTERNAL USE ONLY – CONFIDENTIAL AND PROPRIETARY – DRAFT PGCC 4-17-24

4 Water Supply Constraints
• Carm el River— State ordered withdraw als
reduced by m ore than 50%
• Seaside Basin — Court-ordered withdraw al
reduction by m ore than 50%
• D rought— O ur region is facing increased
periods of drought
The required cutbacks to existing supplies cannot be
m et without replacem ent w ater sources
FO R IN TERN A L U SE O N LY –CO N FID EN TIA L A N D PRO PRIETA RY –D RA FT NB0
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Slide 4
NB0 This slide needs the footer disclosure. [@Josh Stratton] [@Luke G Gianni] Can we make sure the footer is the same on all slides?Nichole Baxter, 2024-03-20T16:40:29.189 PGCC 4-17-24

5 CU RREN T SU PPLIES ~
8,500 AF
A ssum es W Y22/23 drought and includes
PW M , Carm el, Seaside Basin, Sand City
A SR
CURRENT DEM AND ~ 9,500
AFY
Dependent on limited ASR bank
N eed sufficient long-term supplies to address critical needs such as:
• Future D em and
• Clim ate C hange &
Drought
• O peration Supply Buffer
• Seaside Basin Protection
Today’s Supplies at a Critical Juncture
FOR INTERNAL USE ONLY – CONFIDENTIAL AND PROPRIETARY – DRAFT NB0
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Slide 5
NB0 I would unify the font/style on all these headers in each slide.

Nichole Baxter, 2024-03-20T16:39:50.202
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6 Sources: Past, Present & Future
Show glass of water

C URREN T SO URC ES FUTURE SO URC ES HISTO RIC SO URC ES Seaside Basin
Carm el River
ASR ePW M
D esal
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7 PGCC 4-17-24

8 Monterey Peninsula Water Supply Project – Path Forward Clim ate Resilience
• Droughtproof ability to preserve Carm el
River habitat
Environm ental Considerations
• Carbon free energy• Slant w ells• Existing outfall
Affordability• Affordable housing
• C ustom er Assistance, C risis Assistance,
LIH W AP and C W W APP
Regional Approach
• Re
turn w ater to Castroville
Status and Tim eline• California Coastal Com m ission approval • Expected to be in service by the end of 2027

FUTURE SO URC ES
ASR ePW M
D esal
FOR INTERNAL USE ONLY – CONFIDENTIAL AND PROPRIETARY – DRAFT PGCC 4-17-24

9 Water Supply Project - Path Forward
CCC Special Conditions• N PD ES Perm it for Brine Discharge • O utfall Im provem ents
• D une Habitat O pen Space Protection
D esign & Procurem ent• Update D esal D esign
• Pipeline com ponents bid in 2025
• Value Engineering, Pipelines/PlantPursuing Cost Savings• Grants (State & Federal) • Low interest loans (SRF)
• Custom er Affordability Program s
FOR INTERNAL USE ONLY – CONFIDENTIAL AND PROPRIETARY – DRAFT PGCC 4-17-24

10 D ESA L
PW M Expansion
2024 2025 2026 2027 2028
C onstruction and Start-up
C oastal C D P Prior to Issuance C onditions
D esal C onstruction
24 m onths
D esal C onstruction C ontract
N egotiation & Procurem ent
Water Supply Project - Schedule
FOR INTERNAL USE ONLY – CONFIDENTIAL AND PROPRIETARY – DRAFT PGCC 4-17-24

11 Thank You
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