Pacific Grove City Council
May 1, 2024

CITY COUNCIL

CLOSED SESSION MEETING AGENDA
Wednesday, May 1, 2024, 5:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA Under the Brown Act, public comment for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. This is a warning that if a member of the public attending this meeting remotely or in-person violates the Brown Act by failing to comply with these requirements of the Brown Act, then the Mayor or Chair may request that speaker be muted. If a member of the public attending this meeting in-person engages in disruptive behavior that disturbs the orderly conduct of the meeting, they may be removed from the meeting after a warning, pursuant to Council Policy 000-17.

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

PLEASE NOTE THE MEETING WILL PROCEED AS NORMAL EVEN IF THERE ARE TECHNICAL DIFFICULTIES ACCESSING ZOOM.

THE CITY WILL DO ITS BEST TO RESOLVE ANY TECHNICAL ISSUES AS QUICKLY AS POSSIBLE.

Join the Zoom Meeting to participate live at:
https://www.cityofpacificgrove.org/Zoom_Closed
Please click here for directions to dial into the meeting audio.

AGENDA

CALL TO ORDER

APPROVAL OF AGENDA

CLOSED SESSION

PUBLIC COMMENT ON CLOSED SESSION MATTERS
Comments from the public will not receive Council action. Comments must deal with matters on the Closed Session agenda and will be limited to three minutes

1. Written Public Comment
A. Conference with Legal Counsel--Anticipated Litigation Significant exposure to litigation pursuant to Government Code Section 54956.9 (d)(2) One potential case (Employee Complaint)
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ADJOURNMENT
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CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, May 1, 2024, 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.

Under the Brown Act, public comment for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. This is a warning that if a member of the public attending this meeting remotely or in-person violates the Brown Act by failing to comply with these requirements of the Brown Act, then the Mayor or Chair may request that speaker be muted. If a member of the public attending this meeting in-person engages in disruptive behavior that disturbs the orderly conduct of the meeting, they may be removed from the meeting after a warning, pursuant to Council Policy 000-17.

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

PLEASE NOTE THE MEETING WILL PROCEED AS NORMAL EVEN IF THERE ARE TECHNICAL DIFFICULTIES ACCESSING ZOOM.

THE CITY WILL DO ITS BEST TO RESOLVE ANY TECHNICAL ISSUES AS QUICKLY AS POSSIBLE.

THE PUBLIC MAY ALSO VIEW THE MEETING ON PENINSULA CHANNEL 25.

JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://www.cityofpacificgrove.org/Zoom_CC
Please click here for directions to dial into the meeting audio.

AGENDA

CALL TO ORDER
PLEDGE OF ALLEGIANCE: Councilmember Beck
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1. APPROVAL OF AGENDA

2. PRESENTATIONS
A. Mayor's Proclamation: Asian American and Pacific Islander Month PG 10 Reference: Bill Peake, Mayor
Recommended Action: Receive proclamation.

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

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

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

A. Written General Public Comment

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

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business A. Minutes of the April 17, 2024 City Council Regular Meeting PG 12 Reference: Sandra Kandell, City Clerk
Recommended Action: Approve minutes.

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

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

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. Monterey-Salinas Transmit Meeting Minutes for March 11, 2024 PG 19 Reference: Joe Amelio, Councilmember
Recommended Action: Receive minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Annual Report of the Code Compliance Program PG 28
Reference: Karen Vaughn, Community Development Director Recommended Action: Receive informational report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Housing Element Monthly Status Update PG 43
Reference: Alyssa Kroeger, Housing Program Manager
Recommended Action:

1. Receive the report.

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

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. George Washington Park Playground Equipment Selection PG 45 Reference: Daniel Gho, Public Works Director/Deputy City Manager Recommended Action:

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Recommended Action:

Authorize an agreement with Park Planet, option 1, for a cost not to exceed $106,880.31 for the procurement, preparation of the site, and installation of playground equipment at George Washington Park.

1. 2. Alternative, take other action related to this item.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities B. Fire Station Bathroom & Shower Remodel Project (CIP23-12) PG 167 Reference: Joyce Halabi, Deputy Public Works Director
Recommended Action:

Reallocating $108,643 of American Rescue Plan Act (ARPA) funds towards the Station Bathroom & Shower Remodel Project (CIP23-12) from other ARPA funded projects

1. Authorize an agreement with Shellco General Contractors in an amount not to exceed $134,950 plus a 10% contingency

2. 3. Alternatively, discuss and take other action on this item CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 13. New Business

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. First Reading of an Ordinance Amending the Fiscal Year 2023-24 Budget PG 171 Reference: Joyce Halabi, Deputy Public Works Director
Recommended Action:

1. Request the City Attorney read the title of the ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold first reading of an ordinance amending the Fiscal Year 2023-24 Operating and Capital Improvement Budget; and

3. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

4. CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. First Reading of an Ordinance to Amend the Salary Classification Schedule for City PGCC 5-1-24

B. First Reading of an Ordinance to Amend the Salary Classification Schedule for City Manager and City Manager Pro Tempore PG 175
Reference: Leticia Livian, Human Resources Director, and Robert Perrault, Interim City Manager
Recommended Action:

1. Request City Attorney to read title of ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold for first reading an Ordinance Amending Salary Classification Schedule to include salary for City Manager and City Manager Pro Tempore;

3. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

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

12. UNFINISHED AND ONGOING BUSINESS
A. AB 481 Military Equipment Annual Report for 2023 PG 179 Reference: Brian Anderson, Police Commander
Recommended Action: Receive the AB 481 Annual Report for 2023.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. FY23/24 Street Rehabilitation Project PG 199
Reference: Daniel Gho, Public Works Director/Deputy City Manager Recommended Action: 1. Authorize an agreement with Monterey Peninsula Engineering for the FY23/24 Street Rehabilitation Project on segments of Locust, Willow, Wood, Grand and Pearl St in an amount not to exceed $1,657,025 plus a 15% contingency.

2. Alternatively, discuss and take other action on this item.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities C. Initiative No, 21-0042A1, The Taxpayer Protection and Government Accountability Act.

Reference: Robert Perrault, City Manager PG 199
Recommended Action: Adopt a Resolution opposing initiative No. 21-0042A1, the Tax Payer Protection and Accountability Act.

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

13. NEW BUSINESS
A. Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2023 PG 206
Reference: Tori Hannah, Administrative Services Director/Assistant City Manager Recommended Action:

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Recommended Action:

Receive the Annual Comprehensive Annual Financial Report, which includes the Auditors' Opinion on the City's financial statements
Receive the Single Audit Report and Independent Auditors' Report Receive the Transportation Safety and Investment Plan Account Fund (TAMC Measure X) Report, which includes the Auditors' Report
Receive the Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Schedule (GANN Limit)
Receive a status on improvements based on the auditor's recommendations that are being implemented, and provide any desired direction
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. IT Infrastructure High Availability Assessment Report PG 257 Reference: Mohammed Khasimi, Chief Information Officer
Recommended Action: Receive the IT infrastructure high availability assessment report and presentation.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Consider Three (3) Planning Commission Resolutions of Intention to Amend Chapter 23 of the Pacific Grove Municipal Code PG 298
Reference: Robert Perrault, Interim City Manager
Recommended Action: Do not move forward with the proposed Zoning Code text amendments at this time due to other priorities.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
D. Direction to City Manager to Notify Candidates Regarding Posting of Signs Before Election Reference: Brian Pierik, City Attorney PG 358
Recommended Action:

Motion to direct City Manager to work with City Clerk on providing notice to candidates advising them there is no time limit in advance of an election for the posting of signs.

1. 2. Take Alternative Action Related to this item.

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

14. FULL PRESENTATIONS

15. CLOSED SESSION

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

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Agenda No. 2 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Bill Peake, Mayor
MEETING DATE: May 01, 2024
SUBJECT: Mayor's Proclamation: Asian American and Pacific Islander Month CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive proclamation.

Attachments
AAPI Proclamation
PGCC 5-1-24

Mayor’s Proclamation
May 2024
Asian American and Pacific Islander Heritage Month
WHEREAS, since President Jimmy Carter annual proclamations have been made starting with Asian/Pacific American Heritage Week and evolving to AAPI Heritage Month under President H.W. Bush in 2009; and
WHEREAS, this month coincides with two key milestones: the arrival of the nation’s first Japanese immigrants (May 7, 1843) and Chinese workers’ pivotal role in building the transcontinental railroad (completed May 10, 1869); and
WHEREAS, by the mid to late 1800’s Asian immigrants arrived on the Monterey Peninsula, notably establishing the Point Almejas – Point Alones Chinese Fishing Village in Pacific Grove which tragically burned down in 1906, and by early 1900 a Japanese business was operating downtown Pacific Grove and a Japanese tea house was built at Lover’s Point; and WHEREAS, this month recognizes and honors the contributions, achievements, and influence of Asian Americans and Pacific Islander Americans (AAPI) who have positively shaped the culture and enriched the history of the United States despite segregation and discrimination; and WHEREAS, our community supports local AAPI organizations including the Japanese American Citizens League – Monterey Bay Chapter (JACL), Monterey Bay Chinese Association (MBCA), and Monterey Peninsula College Asian Student Association.

NOW THEREFORE, I, Bill Peake, by virtue of the authority vested in me as Mayor of the City of Pacific Grove do hereby recognize the many ways AAPI citizens enrich and strengthen our community.
______________________________________________________
Bill Peake, Mayor City of Pacific Grove
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Agenda No. 5 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: May 01, 2024
SUBJECT: Minutes of the April 17, 2024 City Council Regular Meeting CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve minutes.

Attachments
Draft Minutes
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1 DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

REGULAR MEETING
Wednesday, April 17, 2024, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://www.cityofpacificgrove.org/Zoom_CC

CALL TO ORDER
Mayor Peake called the meeting to order at 6:00 p.m. Present in Chamber: Mayor Peake, Mayor Pro Tem Smith, Councilmembers Amelio, Coletti, McDonnell, and Poduri. Absent: Councilmember Beck.

PLEDGE OF ALLEGIANCE
Councilmember Poduri led the pledge of allegiance.

1. APPROVAL OF AGENDA
Action: Regular Agenda item 13B was moved and heard immediately following the Consent Agenda.

Action: Upon motion by Mayor Pro Tem Smith and seconded by Councilmember Amelio and Coletti, Council voted 6-0-1, Councilmember Beck absent, to approve the agenda as modified.

2. PRESENTATIONS
A. Mayor's Proclamation: Arbor Day
Action: Received proclamation.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Service Awards for 5 Years: Clarissa Carillo, David Moya and Steven Speed Action: Received presentations.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Certificates of Appreciation to Interns: Carolin Abele, Lara Forderer, Claire Karo, Stefanie Keller, and Jasmin Mayer
Action: Received presentations.

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

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Council and staff made general announcements.

DRAFT PGCC 5-1-24

2 4. GENERAL PUBLIC COMMENT
General Public Comment received from Kris Lindstrom, Dan Miller, Bill Kampe, Mike Gibbs, Vince Tuminello, Carmelita Garcia, and Sally Moore.

A. Written General Public Comment

CONSENT AGENDA
Action: Consent Agenda items 6A and 6B were pulled and considered immediately following the Consent Agenda.

Action: Upon motion by Mayor Pro Tem Smith and seconded by Councilmember Amelio, Council voted 6-0-1, Councilmember Beck absent, to approve the Consent Agenda as modified.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the March 30, 2024 City Council Special Closed Session Action: Approved minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Minutes of the April 3, 2024 Closed Session and Regular Meetings Action: Approved minutes.

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

6. RESOLUTIONS
A. Resolution of Intention to Levy the Annual Assessment for the Hospitality Improvement District (HID) This item was pulled and considered immediately following the Consent Agenda.

Reference: Lori Frati, Finance Manager
Recommended Action:

1. Approved a Resolution of Intention to Levy an Assessment for the Hospitality Improvement District for Fiscal Year 2024-25.

2. Directed staff to notice a public hearing to be held on May 15, 2024 for the purpose of hearing any protests and determining whether to levy the assessment.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Resolution of Intention to Levy the Annual Assessment for the Downtown Business Improvement District (BID) This item was pulled and considered immediately following the Consent Agenda.

Reference: Lori Frati, Finance Manager
Recommended Action:

1. Approved the attached Resolution of Intention to Levy an Assessment for the Downtown Business Improvement District for Fiscal Year 24-25.

2. Directed staff to notice a public hearing on May 15, 2024 to hear protests and determining whether to levy the assessment.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
DRAFT PGCC 5-1-24

3 7. ORDINANCES
A. Second reading of an ordinance to amend the City Salary Classification Schedule Action: Held second reading and adopted Ordinance No. 24-006 to amend the salary classification schedule.

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

8. REPORTS – INFORMATION ONLY
A. March 2024 Check Register
Action: Received the Check Register.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Core Revenue Report for March
Action: Received the Core Revenue report for March.

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

9. REPORTS – REQUIRING ACTION
A. FY23/24 Crack & Slurry Seal
Action: Authorized an agreement with VSS International for the FY23/24 Crack and Slurry Seal project in an amount not to exceed $341,247.90 plus an 5% contingency.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities
B. Appointment to Administrative Enforcement Hearing Officer Panel Action: Approved appointment of Mike Milliorn to the Administrative Enforcement Hearing Officer Panel ending January 31, 2026.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES A. Architectural Review Board Minutes: March 12, 2024
Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Beautification and Natural Resources Commission Minutes: November 11, 2023, December 19, 2023, January 30, 2024, and February 20, 2024
Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Diversity, Equity and Inclusion Minutes: March 11, 2024 Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
DRAFT PGCC 5-1-24

4 D. Historic Resources Committee Meeting Minutes: November 15, 2023, December 20, 2023, January 24, 2024, and February 28, 2024
Action: Received the minutes.

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

6.A. Resolution of Intention to Levy the Annual Assessment for the Hospitality Improvement District (HID)
Public comment received from
Action: Upon motion by Mayor Pro Tem Smith and seconded by Councilmember Amelio, Council voted 6-0-1, Councilmember Beck absent, to

1. Approve a Resolution of Intention to Levy an Assessment for the Hospitality Improvement District for Fiscal Year 2024-25, adding “revenue and number of licenses” (Resolution No. 24-014).

2. Direct staff to notice a public hearing to be held on May 15, 2024 for the purpose of hearing any protests and determining whether to levy the assessment.

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

6.B. Resolution of Intention to Levy the Annual Assessment for the Downtown Business Improvement District (BID)
Public comment received from Mike Gibbs.

Action: Upon motion by Mayor Pro Tem Smith and seconded by Councilmember Amelio, Council voted 6-0-1, Councilmember Beck absent, to

1. Approve the attached Resolution of Intention to Levy an Assessment for the Downtown Business Improvement District for Fiscal Year 24-25, adding “revenue and number of licenses” (Resolution No. 24-015).

2. Direct staff to notice a public hearing on May 15, 2024 to hear protests and determining whether to levy the assessment.

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

13.B. Resolution Approving Employment Agreement Between the City of Pacific Grove and Matthew Mogensen for the position of City Manager
Public comment received from Carmelita Garcia, Vince Tuminello, Kris Lindstrom, and Richard Paquette.

Action: Upon motion by Mayor Pro Tem Smith and seconded by Councilmember Amelio, Council voted 6-0-1, Councilmember Beck absent, to

1. Adopt Resolution No. 24-016 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
DRAFT PGCC 5-1-24

5 REGULAR AGENDA

11. PUBLIC HEARINGS

12. UNFINISHED AND ONGOING BUSINESS
A. Ballot Measure(s) to Amend PGMC 23.45 and PGMC 6.11 This item was continued from the Council's April 3, 2024 meeting.

No public comment received.

Action: Upon motion by Mayor Pro Tem Smith and seconded by Mayor Peake, Council voted 6-0-1, Councilmember Beck absent, to direct the City Manager to return to the Council with the documents necessary to place a measure(s) on the November 5, 2024, ballot asking the voters to amend Measure B (PGMC 23.45) and Measure C (PGMC 6.11) to implement the following:

1. Amend PGMC 23.45 to: (1) provide a definition for “timeshare” or “timeshare project,” including those fractional interest uses marketed, sold, and managed as timeshares, and
(2) allow the City Council to make any future amendments to the definition via Council Ordinance.

2. Amend (or rescind) PGMC 6.11 in order to be consistent with: (1) the proposed voter-adopted definition(s), and (2) the City’s transient occupancy tax rate (i.e., existing timeshare projects (there are two) shall be taxed at the same rate as hotels/motels per PGMC 6.09).

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Cedar, Sunset & Congress Intersection Improvements Project Public comment received from unnamed speaker, Dan Miller, Mike Becker, Carmelita Garcia, Inge Lorentzen Daumer and Kim Akeman.

Action: Council received the report and provided direction to the City Manager.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
Action: Council took a break from 8:24 – 8:34 p.m.

13. NEW BUSINESS
A. 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
Public comment received from Mike Bekker and Inge Lorentzen Daumer.

Action: Upon motion by Mayor Pro Tem Smith and seconded by Councilmember Coletti, Council voted 6-0-1, Councilmember Beck absent, to direct the City Manager to send a letter to Monterey One Water confirming the City's Intent to move City's charges for wastewater collection to the County of Monterey's property tax bill and carry out the tasks with City staff and Monterey One Water staff necessary to effectuate the change July 1, 2024.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines DRAFT PGCC 5-1-24

6 Section 15378
B. Resolution Approving Employment Agreement Between the City of Pacific Grove and Matthew Mogensen for the position of City Manager During the Approval of the Agenda, this item was heard immediately following the Consent Agenda.

Reference: Brian Pierik, City Attorney
Recommended Action:

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

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

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

14. FULL PRESENTATIONS
A. Monterey Peninsula Water Supply Project Update by Josh Stratton, Cal Am External Affairs
Action: Received presentation.

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

15. CLOSED SESSION

ADJOURNMENT
Council adjourned the regular meeting at 9:52 p.m.

Respectfully Submitted,
Sandra Kandell
City Clerk
Approved by Mayor: _____________________________________________Date________________ Attest by Interim City Manager Pro Tempore: _________________________Date_________________ DRAFT PGCC 5-1-24

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: Joe Amelio, Councilmember
MEETING DATE: May 01, 2024
SUBJECT: Monterey-Salinas Transmit Meeting Minutes for March 11, 2024 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive minutes.

Attachments
MST Minutes
PGCC 5-1-24

Agenda # 3-2
April 15, 2024 Meeting

MEETING OF THE MST BOARD OF DIRECTORS

MEETING MINUTES
March 11, 2024
10:00 am (Pacific)

Present: Anna Velazquez, Chair City of Soledad
Mary Ann Carbone, Vice Chair City of Sand City
Kim Shirley City of Del Rey Oaks
Lorraine Worthy City of Gonzales
Mike LeBarre City of King
Liesbeth Visscher City of Marina
Ed Smith City of Monterey
Joe Amelio City of Pacific Grove
Tony Barrera City of Salinas
Dave Pacheco City of Seaside
Luis Alejo County of Monterey

Absent: Jeff Baron City of Carmel-by-the-Sea
Ariana Rodriguez City of Greenfield
Counsel: Michael D. Laredo De Lay & Laredo
Staff: Carl Sedoryk General Manager/CEO
Lisa Rheinheimer Assistant General Manager
Norman Tuitavuki Chief Operating Officer
Michael Kohlman Chief Information Officer
Kelly Halcon Director of HR & Risk Management
Michelle Overmeyer Director of Planning and Innovation
Jeanette Alegar-Rocha Deputy Secretary/Clerk to the Board Beronica Carriedo C/S & Community Relations Supervisor
Christine Church Communications Services Supervisor
Daniel Bruno Scheduling Assistant
David Bielsker Transit Scheduler
Deanna Smith Civil Rights Officer
Emma Patel Planning Manager
Ezequiel Rebollar IT System Engineer
Hector Martinez Coach Operator
PGCC 5-1-24

Ikuyo Yoneda-Lopez Marketing & Communications Manager
Jacob Huggins IT Specialist
Jacqueline Munoz C/S Representative
Jaime Molina Communications Specialist
Jason Anderson Drug & Alcohol Program Coordinator
Jose Barajas Communications Specialist
Kevin Allshouse Contract Services Manager
Marzette Henderson Transportation Manager
Matthew Deal Grants Analyst
Natlalie Flores Assistant Planner
Paul Lopez Facilities Manager
Reymund Rivera Coach Operator
Rolando Munoz Mobility Specialist
Scott Taylor IT Manager
Sherman Upshaw Facilities Technician
Sonjé Dayries Compliance Analyst
Steven Bruno Purchasing Agent
Tizianno Minelli Operations Superintendent
Vince Dang Project Management Coordinator
Public: Bryan Rosen Member of the Public
Christine Duymich AMBAG
Constantine Politis Comtech Project Manager
Jasmine Megia Cortez Monterey County Board of Supervisors Javier Gomez Monterey County Board of Supervisors
Linda Gonzales Monterey County Board of Supervisors
Lorna Moffett Member of the Public
John McPherson Alliance on Aging
Maribel Trejo Alliance on Aging
P.K. Diffenbaugh MPUSD
Todd Muck TAMC

1. CALL TO ORDER
1-1. Roll Call. (Jeanette Alegar-Rocha)
1-2. Pledge of Allegiance.

Chair Velazquez called the meeting to order at 10:00 a.m. Roll call was taken and a quorum was established. Director Barrera led the pledge of allegiance.
1-3. Review Highlights of the agenda. (Carl Sedoryk)
PGCC 5-1-24

Carl Sedoryk, General Manager/CEO, reviewed the highlights of the agenda. Under recognitions and special presentations, an item not on the agenda was added to recognize Reymund Rivera, coach operator, for 25 years of service.

This was a carryover from the February 12, 2024 board agenda as Mr. Rivera was unable to attend the meeting.

2. PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA
Bryan Rosen commented that people who ride buses tend to be poor people and stated a concern with the cost of SURF! Project, its effect on traffic congestion as compared to using rail transit as well as its impact to the environment.

Lorna Moffett commented on how transit funding could be used on projects to improve the environment.

Mary Ann Carbone arrived at 10:06 a.m.

3. CONSENT AGENDA
These items will be approved by a single motion. Anyone may request that an item be discussed and considered separately.
3-1. Adopt Resolution 2024-17 Recognizing Steven Bruno, Purchasing Agent as Employee of the Month for March 2024. (Manager) (Page 7) 3-2. Approve Minutes of the MST Board Meeting on February 12, 2024. (Jeanette Alegar-Rocha) (Page 9)
3-3. Receive Draft Minutes of the MST Board Operations Performance Committee Meeting on February 12, 2024. (Jeanette Alegar-Rocha) (Page 17)
3-4. Receive Report on Lost and Found Items Left on MST Property for the Month of October 2023. (Beronica Carriedo) (Page 21)
3-5. Financial Reports – January 2024. (Lori Lee) (Page 23) a) Accept Report of January 2024 Cash Flow Presented in Attachment 1, b) Approve January 2024 Disbursements Listed in Attachment 2, and c) Accept Report of January 2024 Treasury Transactions Listed in Attachment 3.

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3-6. Authorize the General Manager/CEO to Enter into a Five-Year Contract with Thomas Walters & Associates, Inc. for Federal Legislative Consulting Services, in an Amount not to Exceed $270,000, or $54,000/year. (Steven Bruno) (Page 35)
3-7. Reject Claim for Insufficiency by the Claimant Maria Barona Garcia. (Lisa Cox) (Page 37)
3-8. Authorize the General Manager/CEO to Purchase Four (4) Ford Trucks at the Lowest Price/Best Options Available at the Time of Purchase Utilizing the CA Department of General Services (DGS) Contract #1-22-23-20F in an Amount not to Exceed $347,800. (Norman K. Tuitavuki) (Page 39)
3-9. Authorize the General Manager/CEO to Purchase 19 Bus Stop Shelters from Tolar Manufacturing at the Lowest Price/Best Options Available at the Time of Purchase Utilizing the Morongo Basin Transit Authority (MBTA) CalACT RFP Contract #21-01 in an Amount not to Exceed $254,495. (Norman K. Tuitavuki) (Page 41)
3-10. Receive Draft Minutes of the Mobility Advisory Committee Meeting on January 31, 2024. (Ruben Gomez) (Page 43)
3-11. Appoint Membership to the Mobility Advisory Committee (MAC). (Cristy Sugabo) (Page 47)
There were no public comments on the Consent Agenda.

On a motion by Director Amelio, seconded by Director Smith and carried by the following roll call vote, the Board approved all items on the consent agenda:

AYES: 11 Alejo, Amelio, Barrera, Carbone, LeBarre, Pacheco, Shirley, Smith, Visscher, Velazquez, and Worthy
NOES: 0
ABSENT: 2 Baron and Rodriguez
ABSTAIN: 0
RECUSE: 0

4. PUBLIC HEARINGS
None

5. ACTION ITEMS
5-1. Select an Option to Support the Alliance on Aging’s Request for Free or Reduced Cost Bus Passes. (Norman K. Tuitavuki) (Page 49) PGCC 5-1-24

Public Comments:

John McPherson, Executive Director of Alliance on Aging commented that he sent an email to the Board urging support and that he can be reached for any questions.

Lorna Moffet commented in support of funding for Alliance on Aging.

Maria Trejo, Transportation Coordinator for Alliance on Aging, commented that their agency clients are on limited income and would greatly benefit from the Board decision for continued support through grant funding.

Bryan Rosen commented in support of reducing the cost of bus rides for the elderly.

On a motion by Director Pacheco, seconded by Director Amelio and carried by the following vote, the Board approved item #5-1 Option 2 with the addition of non-profit human services entities eligible for discounted passes (50% off monthly GoPasses). The Board also approved providing a letter from MST to TAMC recommending TAMC consider funding transit bus passes for human services agencies and highlight the current and future demographic needs in Monterey County.

AYES: 11 Alejo, Amelio, Barrera, Carbone, LeBarre, Pacheco, Shirley, Smith, Visscher, Velazquez, and Worthy
NOES: 0
ABSENT: 2 Baron and Rodriguez
ABSTAIN: 0
RECUSE 0
5-2. Receive Update on the SURF! Busway and Bus Rapid Transit Project. (Lisa Rheinheimer) (Page 53)
The Board received an update on the SURF! Busway and Bus Rapid Transit Project including highlights, budget, schedule, outreach, and risks as detailed in the Board packet attachment.

Bryan Rosen, a member of the public, commented that the public funding could be better applied to rail instead of the SURF! Project.

Lorna Moffett, a member of the public, asked how many trees and railways will be removed as a result of the SURF! Project. She remains steadfast in her opinion to use SURF! Project funds to improve existing bus routes and impacts to the environment.

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Lisa Rheinheimer, Assistant General Manager, responded that grants awarded to the SURF! Project are restricted and cannot be used for other services or projects. With respect to trees in the City of Marina, 92 trees will be replaced with 123 trees. Rail tracks will be removed or covered-up in limited locations to accommodate the SURF! Project. The railroad tracks would need to be removed and rebuilt to meet Federal Railroad Administration safety standards as the tracks are not structurally sound. Ms. Rheinheimer added that MST is only operating with zero emissions buses on the SURF! Project. 5-3. Receive an Update on the First Year of the Better Bus Network. (Michelle Overmeyer/Emma Patel) (Page 59)
The Board received an update which included key findings from the first year of the Better Bus Network.
5-4. Approve Extension of the School Pass Program. (Michelle Overmeyer) (Page 77)
P.K. Diffenbaugh, from Monterey Peninsula Unified School District commented on the school pass benefits to students and urged the Board to support continuation of the School Pass Program.

On a motion by Director Pacheco, seconded by Director Smith and carried by the following vote, the Board approved item #5-4 Option 2 continuing to offer a discount on bus passes to eligible schools under MST’s School Bus Pass Program. A $13 monthly pass will be sold to eligible participants for $6.50 per pass and MST contributes $6.50 per pass using general funds. Based on past demand from the schools, up to $25,000 in MST funds would be needed for the remainder of FY 2023/24. This amount is not included in the adopted MST operating budget but there is adequate reserve funding available to cover the cost. This option also directs staff to budget for the anticipated amount in future budgets.

AYES: 11 Alejo, Amelio, Barrera, Carbone, LeBarre, Pacheco, Shirley, Smith, Visscher, Velazquez, and Worthy
NOES: 0
ABSENT: 2 Baron and Rodriguez
ABSTAIN: 0
RECUSE 0

6. RECOGNITIONS AND SPECIAL PRESENTATIONS
6-1. March 2024 Employee of the Month – Steven Bruno, Purchasing Agent. (Lisa Rheinheimer)
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The MST Board recognized Steven Bruno, Purchasing Agent, as the March 2024 Employee of the Month for his outstanding contribution to MST and the entire community.
6-2. 25-Year Service Anniversary – Hector Martinez, Coach Operator. (Marzette Henderson)
The MST Board recognized Hector Martinez, Coach Operator, for his 25-year Service Anniversary and for his outstanding contribution to MST and the entire community.
25-Year Service Anniversary – Reymund Rivera, Coach Operator. (Marzette Henderson)
The MST Board also recognized Reymund Rivera, Coach Operator, for his 25-year Service Anniversary and for his outstanding contribution to MST and the entire community.
6-3. Receive Government Finance Officers Association Certificate of Achievement for Excellence in Finance Reporting. (Lisa Rheinheimer) This item will be brought back at the April 15, 2024 Board meeting. 6-4. Staff Recognition of Coach Operator Recruitment and Hiring Efforts. (Carl Sedoryk)
The MST Board recognized staff for their contributions to achieving the milestone of the largest single class of new Coach Operators in the history of MST who started on February 13, 2024.

7. REPORTS & INFORMATION ITEMS
The Board will receive and file these reports, which do not require action by the Board.
7-1. General Manager/CEO Monthly Report – January 2024 (Page 81) 7-2. Federal Legislative Advocacy Report (Page 83)
7-3. State Legislative Advocacy Update (Page 87)
7-4. Staff Trip Reports – (Pages 91-103)
7-5. Correspondence – (Page 105)

8. BOARD REPORTS, COMMENTS, AND REFERRALS
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8-1. Reports on Meetings Attended by Board Members at MST Expense. (AB 1234)
8-2. Board Member Comments and Announcements.
8-3. Board Member Referrals for Future Agendas.

9. ATTACHMENTS
9-1. The Detailed Monthly Performance Statistics and Disbursement Journal for January 2024 can be viewed online within the GM Report at http://mst.org/about-mst/board-of-directors/board-meetings/

10. CLOSED SESSION
Members of the public may address the Board on any matter related to Closed Session. There is a time limit of not more than three minutes for each speaker. The Board will not take action or respond immediately to any public comments presented but may choose to follow-up at a later time individually, through staff, or on a subsequent agenda. (Please refer to page 1 of the agenda for instructions) 10-1. Conference with Legal Counsel under § 54956.9(d)(2): Existing Litigation (Maria Arevalo Martinez; Jorge Luis Razo [Executive Facility Services]; Monterey Superior Court & Case # 24CV000557)
Michael Laredo, MST General Counsel, reported that the Board met and discussed closed session item 10-1. The Board provided general direction but no reportable action was taken.

As permitted by Government Code §64956 et seq. of the State of California, the Board of Directors may adjourn to Closed Session to consider specific matters dealing with personnel and/or pending possible litigation and/or conferring with the Board's Meyers-Milias-Brown Act representative.

11. ADJOURN
With no further business to discuss, Chair Velazquez adjourned the meeting at 12:06 p.m. (Pacific) in memory of the victims of the City of King mass shooting.

Prepared by: ___________________Reviewed by: __________________ Jeanette Alegar-Rocha Carl G. Sedoryk
Deputy Secretary/Clerk to the Board General Manager/C
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Agenda No. 8 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Andrew Butler, Code Compliance Officer
MEETING DATE: May 01, 2024
SUBJECT: Annual Report of the Code Compliance Program
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive informational report.

DISCUSSION
This is a yearly report of the Code Compliance Program for calendar year 2023. The Code Compliance Program works on a complaint-driven format. When staff receives a complaint, a case is created. Staff conducts background research, performs an investigation, and makes contact with the property owner for a site inspection. If no violation is found, the case is closed and no further action is needed. If the merits of the complaint are confirmed, staff then work to educate the property owner of the City's codes and provide the pathway and timeframe for compliance. Most cases are closed within 30 days. The overarching goal is to achieve compliance in order to maintain the health, safety and welfare of residents and visitors.

Examples of typical complaints received are construction without permits, health and safety/unsafe dwellings, encroachment or obstruction, fence height, tall weeds, gas powered leaf blowers, unlicensed transient use, discharge into storm drain, property maintenance required, tree work without permit, and other municipal code violations.

For calendar year 2023, Code Compliance staff received 244 complaints. Staff were able to gain voluntary compliance on 240 of the 244 cases (98% closure rate). Staff is following the standard administrative process for compliance for the remaining four cases (attached).

Code Compliance staff also oversee the Administrative Enforcement Panel. For the 2023 year, we had six volunteer hearing officers that heard cases ranging from parking citation appeals for parking related offenses to administrative citations received for work without obtaining proper permits. Of the 28 cases heard by the officers, 22 were found in favor of the city (79%) and six cases were found in favor of the Appellant (21%) and were issued full or partial refunds.

Code Compliance staff also oversee the Residential Zoning Records Reports (RZRR). RZRR’s are required per Pacific Grove Municipal Code section 23.78 for the sale or transfer of any residential property within the City. In 2023, staff received 133 RZRR applications and provided those reports PGCC 5-1-24

prior to the transfer of title.

Utilizing the short-term rental software (Deckard Technologies), staff found 22 unlicensed short-term rentals (STR's) and have collected approximately $24,000 in administrative penalties. There is currently one pending case that is on track to collect approximately $4,000 in penalties for unlicensed short-term renting of a property.

In comparison to the previous year, Code Compliance saw an increase in cases reported by roughly 3%.

The closure and compliance rate increased from 90% in 2022 to 98% in 2023.

OPTIONS
N/A
FINANCIAL IMPACT:

No financial impact.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
2023 PPT
2022 Code Compliance Report and PPT
Code Compliance Administrative Procedures
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City Council
City of Pacific Grove
UU
Annual Report on Code Compliance
Program (2023)
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Types of Code Compliance Cases
Health and Safety
13%
Property
Maintenace
23%
Building Code
Violation
20%
Right-of-way
hazard
16%
Zoning Code
Violation
28%
Health and Safety Property Maintenace Building Code Violation Right-of-way hazard Zoning Code Violation
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Code Cases Created
238
256 254
182
207
237 244
2017 2018 2019 2020 2021 2022 2023
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Residential Zoning Records
Report
191 191
175
226 234
177
133
2017 2018 2019 2020 2021 2022 2023
# of RZRR received
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Agenda No. 8 E

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Andrew Butler, Code Compliance Officer
MEETING DATE: February 1, 2023
SUBJECT: Update on Code Compliance Program
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the report.

DISCUSSION
This is a yearly update for the code compliance program. For the 2022 calendar year, City Code Compliance staff received 237 complaints, with 22 of those still pending per the standard process for compliance (attached).

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

OPTIONS
N/A; no recommended action.

FINANCIAL IMPACT:

Receiving this report has no financial impact.

FOCUSED PRIORITY AREA:Not Applicable.

Attachments
PPT
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City Council
City of Pacific Grove
UU
Update on Code Compliance Program
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Annual Code Cases
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Residential Zoning Records Reports
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City Council
City of Pacific Grove
Tree Replant Reminders
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Short Term Rental Enforcement
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Questions?
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Pacific Grove Administrative Code Compliance Procedures

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

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

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

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

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

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

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

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

11. HO conducts
Hearing.

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

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

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

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

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

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

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

3. Council’s
decision
adopted by
resolution.

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

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

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Agenda No. 8 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Alyssa Kroeger, Housing Program Manager
MEETING DATE: May 01, 2024
SUBJECT: Housing Element Monthly Status Update
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive the report.

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

DISCUSSION
On December 20, 2023, City Council approved the first amendment to the contract with Rincon Consultants, initiating the preparation of the Housing Element Update (HEU), along with related General Plan Amendments, Zoning Amendments, and Environmental Impact Report (EIR). Subsequently, City Staff and Rincon Consultants continued/commenced work and provided the third monthly progress report update to Council on April 3, 2024.

Since then, the following tasks have been undertaken:

April 2, 2024: Housing Element Team coordination meeting to discuss new invoicing format and contract management regarding the out-of-scope activity per the City Council direction to consider alternative sites and rezoning/upzoning to accommodate the necessary housing unit capacity.

April 4, 2024: Rincon provided staff with an initial draft assessment of the current Objective Development Design Standards (ODDS) within the City’s zoning code and suggested changes to implement housing goals for further review and discussion. This information will inform the proposed zoning text amendments as part of the overall Housing Element/General Plan Update.

April 11, 2024: Ongoing Housing Element Team collaboration on potential alternative sites and rezoning/upzoning. Discussions included feasibility and potential capacity of identified sites. Discussed strategy for informing property owners so that they can participate in the process. Also, continued discussions on outreach activities for CDD’s Good Old Days table in May. Outreach activity will focus on the Health and Safety General Plan element. Also discussed revisions to the City’s adopted Vehicle Miles Traveled (VMT) policy and tentative dates for Planning Commission and City Council presentations.

April 12, 2024: Rincon provided staff with a draft health and climate change outreach activity concept to be developed and administered at CDD’s Good Old Days table. Responses may be used to help inform the forthcoming focused general plan work under the Land Use and Health and Safety Elements.

April 18, 2024: Internal staff coordination meeting to discuss next steps in reviewing and providing feedback to consultants on the initial draft ODDS zoning code assessment.

Housing Element Team includes City Planning, Housing, and City Manager staff, City legal representation, and Rincon/subconsultant staff.

Staff will provide a monthly status update to the Council throughout the process, leading to an adopted and PGCC 5-1-24

Staff will provide a monthly status update to the Council throughout the process, leading to an adopted and certified Housing Element. For more information, please visit the Housing Element Webpage:
https://www.cityofpacificgrove.org/our_city/departments/community_development/housing/housing_element.php

OPTIONS
N/A - This is information only.

FINANCIAL IMPACT:

There is no fiscal impact associated with receiving this report.

FOCUSED PRIORITY AREA: Affordable Housing
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Agenda No. 9 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: May 01, 2024
SUBJECT: George Washington Park Playground Equipment Selection CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION
Authorize an agreement with Park Planet, option 1, for a cost not to exceed $106,880.31 for the procurement, preparation of the site, and installation of playground equipment at George Washington Park.

1. 2. Alternative, take other action related to this item.

DISCUSSION
As a part of the FY22/23 Capital Improvement Plan (CIP), the City Council approved the George Washington Park (GWP) Children’s Playground Equipment Project with a $25,000 American Rescue Plan Act (ARPA) funding. The California department of Parks and Recreation, via the Parks Bond Act Per Capita Grant Program, awarded an additional $81,952 of funds. The total available funding for the project is $106,952.

On February 24, 2023, the City issued a Request for Proposal (RFP) for playground equipment for George Washington Park (GWP) to supplement the existing equipment, which is a structure that is geared towards kids that are 5-12 years of age.

The scope of work for the project consisted of the design, procurement, preparation of the grounds and the boarders, and installation of a playground system. The vision is to supplement the existing play equipment in the park with equipment that matches the general aesthetic of the park, and accommodates young children.

In February of 2023, the City received one proposal from Playcore Wisconsin Inc. DBA Gametime.

Their proposal included 3 options, but neither of the options met the Recreation Board’s vision for the playground equipment. The board wanted non-traditional equipment that matched the natural aesthetic of the park.

The City reissued a new RFP on January 2, 2024; this RFP specified that the play equipment should have a natural look. Five (5) proposals were received on February 9, 2024.

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Company Cost
Gametime (attachment 1) $106,927.24
Zoom Recreation (attachment 2) $138,973.60
Park Planet (attachment 3) Option 1: $106,880.31
Option 2: $106,739.45
Playworld (attachment4) Option 1: $125,720.00
Option 2: $187,867.00
Miracle (attachment 5) $97,763.66
City staff presented the results of the rebid process to the Recreation Board at their March 28, 2024 meeting. The Board recommends that the City Council approve an agreement with Park Planet, option 1, stating that this proposal is in line with their previous request for natural-looking equipment and their vision for the park.

The new equipment will be placed between the swings and the existing park equipment with a new border (location picture is included as Attachment 6).

Please note that no trees will be removed though some trimming may have to occur. If trimming does need to occur the City will perform the work under the supervision of the City Arborist. Public Works will obtain all the necessary permits for the installation of the playground equipment and for any tree trimming if deemed necessary.

AGREEMENT
If awarded, the City will use the standard construction contract approved by the City’s insurer, California Joint Powers Insurance Authority (CJPIA).

NEXT STEPS
Once a contract is executed, the City will work with the contractor to develop a construction schedule.

Project updates will be provided on the Clear Gov project page.

OPTIONS

1. Select alternative equipment from the proposals.

2. Do not approve the project.

FINANCIAL IMPACT:

This project has a budget of $106,952.00. The City has allocated $25,000 from American Rescue Plan Act (ARPA) funds and the remaining project budget of $81,952.00 is grant-funded, derived from a Parks Bond Act Per Capita Grant Program.

FOCUSED PRIORITY AREA: Recreation Services
Attachments
Gametime
Zoom Recreation
Park Planet
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Playworld
Miracle
Location
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George Washington
Park Playground
Pacific Grove, CA
Zoom Recreation
zoomrecreation.com 866-234-3392 4000 Barranca Parkway, Suite 250-659 Irvine, CA 92604 PGCC 5-1-24

Zoom Recreation
Why Zoom?
Why Superior?
We’ve Got you covered

1. All our equipment is proudly made in the USA.

2. CPSI & ASTM certified designers and installers to ensure safety comes first on every project.

3. Fully licensed, bonded and insured.

4. Turn-Key. We handle both the design and installation.

5. Exclusive rights partner of Superior Recreational Products zoomrecreation.com 866-516-5439 4000 Barranca Parkway, Suite 250-659 Irvine, CA 92604 PGCC 5-1-24

Designer: E.Carter Date: 02/06/2024
Preliminary Concept Design
Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion Project:

George Washington
Park Pacific Grove
Quote:

QUO0277387
Age Group
2-12
Transfer Steel
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Project: George Washington Park Pacific Grove
Quote: QUO0277387 Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion Preliminary Concept Design
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Project: George Washington Park Pacific Grove
Quote: QUO0277387 Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion Preliminary Concept Design
Scale: 1/8" = 1'
0 4 8
50'-0"
40'-0"
4LB: 4' Log Bench 6HL: 6' Half Log Beam
4LT: 4' Log Tunnel
Log Stumps:

TFR0649XX
TFR0650XX
TFR0651XX
FX3-NAT212-004:

Nature Theme

3.5" Steel Play
2-12 y/o
Approx. 2,000 sq ft
of EWF Surfacing
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Structure: FX3-NAT212-004-00
Age: 2-12 / Series: 3.5” Steel / Theme: Nature Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion Preliminary Concept Design
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Structure: FX3-NAT212-004-00
Age: 2-12 / Series: 3.5” Steel / Theme: Nature Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion Preliminary Concept Design
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Structure: FX3-NAT212-004-00
Age: 2-12 / Series: 3.5” Steel / Theme: Nature Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion June 13, 2023 Preliminary Concept Design 01A
Structure FX3-NAT212-004-00
ADA Accessibility
Number of Play Events 8
Number of Elevated Play Events 6
Number of Elevated Play Events Accessible By Ramp 0 Required 0 Number of Elevated Play Events Accessible by Transfer System Provided 6 Required 53 Number of Ground Level Play Events on Accessible Route Provided 2 Required 2 Number of Types of Ground Level Play Events on Accessible Route Provided 2 Required 2 Panels & Activities
Accessible On-Route Elevated Path
Non-Accessible Elevated Path
Accessible On-Route Ground Level
Activities
0 2 4
Scale: 1" = 4'
Minimal Fall Zone Surfaced with
Resilient Material
Use Zone Area: 600 SqFt
Use Zone Perimeter: 96' Ft
Use Zone Dimensions: 31'x28'
Structure Size: 19'x16'
Structure Overall Height: 16'6"
Structure is Designed for Children
Ages: 2-12
Post Diameter: 3.5" Steel
User Capacity: 27
Fall Height: 5'
48" Timber Count: 34
Designer: N Guice
Revised By:
16"
36"
60"
60"
Double Straight Slide
Chain Link Climber
Post Mounted Steering Wheel
Gear Panel
Bubble Panel (upper)
Store Front Panel (lower)
Right Turn Slide
Rock Wall Climber
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Structure: FX3-NAT212-004-00
Age: 2-12 / Series: 3.5” Steel / Theme: Nature Conceptual Renderings Only. Subject to change without notice at SRP’s Discretion June 13, 2023 Preliminary Concept Design 02A
Dimensions Structure FX3-NAT212-004-00
0 3 6
Scale: 1" = 6' 28'-0"
30'-11"
18'-4"
15'-8"
13'-5"
16'-5"
12'-4"
14'-4"
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srpplayground.com
866-795-7545
Partner
https://srpplayground.com/
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LICENSE # 1067651 (A, C61/D34)
DIR #1000655676
Zoom Recreation
4000 Barranca Parkway Suite 250-659
Irvine, CA 92604
+1 8665165439
[email protected]
Quote

ADDRESS
City of Pacific Grove
2100 Sunset Dr. Pacific Grove,
CA 93950

SHIP TO
City of Pacific Grove
700 Alder St, Pacific Grove, CA
93950
QUOTE # 3447
DATE 02/05/2024
EXPIRATION DATE 04/30/2024

PROJECT MANAGER
Toby Fernie

DATE ACTIVITY DESCRIPTION QTY RATE AMOUNT
FX3-NAT212-
004
FX3-NAT212-004
Themed Economy Series: Nature
Age: 2-12
Capacity: 27
Size: 19' x 16'
Use Zone: 31' x 28'
Fall Height: 5'
Est. Height: 34
1 30,506.00 30,506.00T
4LT Product Name: 4LT 4' Log Tunnel
Age Group: 2-5, 5-12
Space Required: 15' 5" x 151 8"
1 6,374.00 6,374.00T
TFR0645XX Product Name: TFR0645XX 12"" Tree
Stumps with Moss
Age Group: 2-5, 5-12
1 2,175.00 2,175.00T
TFR0650XX Product Name: TFR0650XX 20" Standard
Tree Stumps
Age Group: 2-5, 5-12
2 2,575.00 5,150.00T
TFR0651XX Product Name: TFR0651XX 28" Standard
Tree Stumps
Age Group: 2-5, 5-12
1 2,775.00 2,775.00T
6HL Product Name: 6HL 6' Half Log Beam
Age Group: 2-5, 5-12
Use Zone: 18' x 14'
1 3,745.00 3,745.00T
4LB Product Name: 4LB 4' Log Bench
Age Group: 2-5, 5-12
Dimensions: 4' x 2'
Material: GFRC (Glass Fiber Reinforced
Concrete)
1 3,372.00 3,372.00T
Professional
Certified
Installation of
Playground(s)
Professional Certified Installation of
Playground(s)
-Unloading
- Layout
1 48,375.00 48,375.00
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LICENSE # 1067651 (A, C61/D34)
DIR #1000655676

DATE ACTIVITY DESCRIPTION QTY RATE AMOUNT
- Excavation
-In-ground footers
- All concrete and required rebar/steel
reinforcement
- Assembly of structure
- Haul and dispose of spoils offsite
Wage type: Prevailing
Includes treated borders around the outside of
the play space to contain EWF.

Professional
Certified
Installation of
Playground(s)
Provide and Installation of pressure treated
wooden borders around perimeter of
play box - 40' x 50' x 12" Depth
Engineered
Wood Fiber
Engineered Wood Chip
ASTM Certified Engineered Wood Chips with

BLOWN IN
Installation
2000 square feet at 12 inch

FINAL THICKNESS AFTER NATURAL

COMPACTION
96 cubic yards
Fabric
Landscape Fabric per Square Foot

INSTALLATION -FABRIC

LANDSCAPE FABRIC INSTALLATION
Includes prevailing wages differential
1 11,395.00 11,395.00T
Custom-Service CPSI third party inspection of new playground and safety surfacing.
1 1,000.00 1,000.00
Storage
Container
Secure storage container to be staged onsite.

Dimensions of storage containers vary based
on size of the project.
-Storage container is required to be either
purchased through Zoom Recreation, or
provided by the client prior to the start of the
project
-Zoom Recreation bills $1,150/month for a
minimum of two months for 20' long storage
containers
1 2,300.00 2,300.00T
Installations scheduled after 90 days of proposal acceptance may be subject to price adjustments.

This proposal does not provide for the following:
- Service items, unless stated: receipt, inventory, loading, unloading, storage, security of equipment, or security fencing
- Site sub-grade issues: material not suitable for footings, material requiring demolition, or contaminates that may require remediation, or inplace mechanical systems, including, but not limited to: irrigation, water, electric, sewer, or gas.

Client acknowledges that Zoom Recreation is not liable for any damage to existing concrete, landscaping or other surfaces while installing and/or using heavy machinery on-site.

SUBTOTAL 143,308.00
TAX 6,270.76
SHIPPING 6,535.84
1 9,000.00 9,000.00
TOTAL $138,973.60
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Location is between swing set and other play structure. Picture is looking east PGCC 5-1-24

Agenda No. 9 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joyce Halabi, Deputy Public Works Director
MEETING DATE: May 01, 2024
SUBJECT: Fire Station Bathroom & Shower Remodel Project (CIP23-12) CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION
Authorize an agreement with Shellco General Contractors in an amount not to exceed $134,950 plus a 10% contingency

1. 2. Alternatively, discuss and take other action on this item

DISCUSSION
Background
The Fire Station Bathroom & Shower Remodel Project (CIP23-12) was funded in the FY22/23 Capital Improvement Plan (CIP) with a $50,000 budget derived from American Rescue Plan Act (ARPA) funds.

The purpose of the project is to enhance the functionality of the bathroom facilities located on the dorm side on the Fire Station by designing and constructing improvements that allow for separate shower and restroom facilities that can be used interchangeably by female and male firefighters without privacy concerns. In addition to addressing the functionality and efficient usage of restroom facilities, the project aims to modernize the bathroom by replacing worn appliances that have surpassed their 20-year lifespan, ensuring the safety, efficiency, and comfort of the fire station's facilities.

Currently, there are two (2) bathroom facilities located on the dorm side of the Fire Station:

One has a large shower area with three shower heads with no separation for privacy.

The other contains a toilet and a urinal with dividers.

When decontaminating after exposure (fire and other types), multiple crew members should be able to shower concurrently or use the restroom without privacy concerns. The current configuration allows for only one crew member to take a shower at a given time.

Engineering Process
The project was engineered by August Design & Build. The design makes the two bathrooms equivalent and consistent by allowing both spaces to have a shower, toilet, and sink – making the two restrooms usable by any staff member without privacy concerns.

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The improvements were designed in a cost-efficient way to harness existing spaces with no large structural modifications; the project entails reconfiguration of the existing spaces, plumbing and electrical work and purchase/installation of new fixtures.

Bid Process
Following engineering, the project was put out to bid on May 25, 2023. The bid process closed on June 16, 2023. One bid was received from Shellco General Contractor; the bid amount was $147,895, well over the allocated budget.

City Staff worked with August Design & Build to value engineer the project. Value engineering was achieved by removing the specificity of materials and fixture types (brand, model, etc.), allowing the contractor to select a cost-efficient model for fixtures and materials vs. sourcing a specific type of material. The value engineered project was rebid.

The rebid process began in September 2023 and closed on October 13, 2023. Four (4) bids were received.

Company Bid Amount
Shellco General Contractor $134,950
T&S Intermodal Maintenance, Inc. $147,953
Commercial Solutions Group, Inc. $163,757.42
David Construction & Management, Inc $147,953
Shellco General Contractor was the lowest bidder. The low bid was still well above the project budget with a $104,173 deficit to fund the base bid ($134,950 plus a standard 10% construction contingency).

City Council Direction
On March 20, 2024, staff brought the item forward to council to request direction on how to proceed because there was not sufficient budget to proceed with construction. The original agenda report can be found here.

City Council directed staff to return with a plan to bridge the project funding delta.

Bridging the Delta - Reallocating ARPA Funding to the Fire Station Shower & Bathroom Remodel Project
Staff suggests reallocating funds from four (4) ARPA-funded projects to the Fire Station Bathroom and Shower remodel. This proposal includes reallocating funds from three (3) projects completed under budget and defunding one (1) project that isn’t expected to be complete within the December 31, 2024 ARPA deadline. Details are provided below.

1. Chataqua Hall Bathroom Repairs - Completed Under Budget The completed project replaced old linoleum flooring with new tiles, installed tile wainscoting, and toilets. A $2,928 surplus remains. Staff suggests transferring the leftover ARPA budget to the Fire Station Shower and Bathroom Remodel.

2. City Hall Roof Repairs – Completed Under Budget
This project effectively fixed known roof leaks at City Hall by:

Installing copper sheet metal on the chimney and existing roof vent to replace deteriorated metal causing water intrusion.

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causing water intrusion.

Adding step flashing and Reglet seals along the tower for better protection.

Replacing about 300 square feet of roof sheathing, along with new membrane and roofing.

Installing a new roof vent on the deteriorated section.

Further inspection revealed that the remaining roof doesn't currently need replacement. The repairs, finished in November 2023, have successfully withstood subsequent rain events. With the project completed, Staff recommends reallocating the remaining $30,278 project funding to the Fire Station Shower and Bathroom Remodel.

3. Recreation Board Park Inventory – Substantially Completed Under Budget In July 2022, the Recreation Board requested the project funding be put toward various recreational upgrades listed in the Recreation Board Park Inventory, including new picnic tables at several parks and storm drain upgrades at Arnett Park.

Although picnic tables were installed and stormwater improvements were completed, the replacement of the Gazebo at Elmarie Dyke Park was delayed due to plans for the proposed Chinese Pavilion and Moon Wall Project in the Gazebo’s location. The Council endorsed Elmarie Dyke Park as the desired at their March 3, 2024, meeting. As a result, the pavilion will replace the deteriorated gazebo, negating the need for the gazebo replacement via this project. The Chinese Pavilion and Moon Wall Project will be funded via Donations from the Monterey Bay Chinese Association and incorporated on the FY24/25 CIP.

Consequently, staff suggests reallocating $29,888 of the remaining funding to the Fire Station Shower Bathroom and Remodel Project. This leaves $15,000 for the Recreation Board and city staff to choose additional enhancements from the Park Inventory.

4. Restroom Replacement at Crespi Pond (CIP23-15) – Project Development Phase The Restroom Replacement at Crespi Pond project was funded with a $50,000 ARPA budget in the FY22/23 CIP. The Historic Resource Commission (HRC) determined, at their April 26, 2023 meeting, that the property didn't meet criteria for inclusion in the Historic Resources Inventory (HRI).

Community interest in preserving the structure's exterior led staff to consider interior improvements instead of replacing it entirely. However, due to ongoing deterioration and the need for temporary repairs to the pump station at Crespi Pond, focus shifted to the higher-priority Pump Station 15.5 Project.

Progress on the Crespi Pond Bathroom Repairs project has been limited. Meanwhile, the Pump Station

15.5 Project's design and engineering, including a permit application for a Coastal Development Permit (CDP), are completed.

Staff proposes reallocating the remaining $45,549 of funding to the Fire Station Bathroom and Shower Remodel as it is unlikely the Crespi Pond Restroom project would be completed before the ARPA funding deadline.

The unfunded Crespi Pond project may be reconsidered for FY24/25 CIP funding. Alternatively, the Council can use unassigned general funds for the Fire Station project, but staff does not recommend this to ensure ARPA funds are utilized appropriately.

AGREEMENT
If awarded, Staff will draft an agreement, harnessing the standard construction contract approved by the City’s insurer, California Joint Powers Insurance Authority (CJPIA).

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NEXT STEPS
Once a contract is executed, the City will work with the contractor to develop a construction schedule.

It is anticipated that all work will be completed well before the December 31, 2024, ARPA funding deadline. Project updates will be provided on the Clear Gov project page:
https://cleargov.com/california/monterey/city/pacific-grove

OPTIONS

1. Authorize the agreement

2. Do not authorize the agreement
FINANCIAL IMPACT:

The original $50,000 project budget was derived from ARPA funds. To date, $5,728 has been expended on the design project. $44,272 remains in the project budget.

As an element of this agenda report, staff is requesting reallocation of $108,643 of ARPA funds to bridge the project delta. If approved, the reallocation paired with the remaining original budget, allows for sufficient funding to award the agreement for $134,950 plus a 10% contingency and to allow for any additional construction services of August Design & Build, the project engineer, during construction (if needed). See breakdown below.

CIP Code Project Funding Transferred to Fire
Station Bathroom &
Remodel
CIP 23-13 Chataqua Hall Bathroom Repairs $2,928
CIP 23-15 Crespi Pond Bathroom Repairs $45,549
CIP 23-18 City Hall Roof Repairs $30,278
CIP 23-22 Recreation Board Park Inventory $29,888
TOTAL TO BE TRANSFERRED TO THE PROJECT $108,643
FOCUSED PRIORITY AREA: Infrastructure
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Agenda No. 11 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joyce Halabi, Deputy Public Works Director
MEETING DATE: May 01, 2024
SUBJECT: First Reading of an Ordinance Amending the Fiscal Year 2023-24 Budget CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Request the City Attorney read the title of the ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold first reading of an ordinance amending the Fiscal Year 2023-24 Operating and Capital Improvement Budget; and

3. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

4. DISCUSSION
The City Council gave its approval for the Fiscal Year 2023-24 Budget on June 21, 2023. It's a customary practice to revisit the Council to make any necessary adjustments to the budget in alignment with the Council's objectives.

Approval from the City Council is required for any amendments to the budget. Enclosed with this agenda report is an ordinance detailing these changes, along with a summary of the proposed modifications.

This budget amendment request focuses on allocating additional sewer funding for the approved FY23/24 Street Rehabilitation Capital Improvement Plan (CIP) project (CIP24-01).

The FY23/24 Street Rehabilitation Project, part of the FY23/24 CIP, targets the aging road infrastructure network, on segments of failed segments of roadway on Locust, Willow, Wood, Grand, and Pearl Streets. These segments were selected based on comprehensive assessments from the City's Pavement Management Program and in-field evaluations.

During the engineering phase, underground infrastructure was CCTV videoed to assess existing conditions. It was anticipated, based on the age of the lines and construction records, that some of the segments of the sewer infrastructure would need to be replaced. As such, the project budget included Sewer Enterprise Funds to address this anticipated need.

While videoing, staff discovered that all of the sewer lines on Locust, Willow, and Wood Street are in a PGCC 5-1-24

While videoing, staff discovered that all of the sewer lines on Locust, Willow, and Wood Street are in a deteriorated state and in need of replacement, from Sinex to Junipero. Additionally, the sewer line on Grand Avenue needs to be replaced from Gibson to Junipero. Between the 4 road segments, 2,540 linear feet of deteriorated sanitary sewer main will be replaced.

The FY23/24 Street Rehabilitation Project is funded from the Capital Improvement Fund, Measure X, Road Maintenance and Rehabilitation Account (RMRA) and the Sewer Fund with a total approved budget of $1,941,137, as shown below.

Funding Source Approved Budget
Fund 63 – Capital Improvement Fund $300,000
Fund 17 - Measure X Fund $536,088
Fund 47 – RMRA (SB1) $505,049
Fund 76 – Sewer Fund $600,000
TOTAL FUNDING $1,941,137
At the time of this writing, approximately $116,000 has been spent on engineering, leaving $1.8 million of construction funding.

Following a competitive bid process, there is sufficient funding to allow for the road improvements.

However, an additional $272,000 of Sewer Funding is required to fund the vital sewer elements of this project following the competitive bid process. This funding will allow for construction of the underground sewer infrastructure, a 10% sewer construction contingency, and any remaining engineering and construction management activities from the City Engineer.

Undertaking underground sewer work is crucial for health and safety and ensures that investments in pavement infrastructure reach their intended service life by preventing the need for disruptive road cuts for underground repairs.

As such, staff has prepared the requested budget amendment to allocate the additional sewer funding needed

OPTIONS

1. Proceed with Staff recommendation

2. Do not proceed with the Staff recommendation

3. Provide alternate direction to staff
FINANCIAL IMPACT:

There is sufficient funding in the Sewer Enterprise Fund to allow an additional $272,000 allocation to the Street Rehabilitation Project as noted in the attached ordinance.

FOCUSED PRIORITY AREA: Infrastructure
Attachments
Budget Ordinance
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ORDINANCE NO. xx-xxx

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

AMENDING THE OPERATING AND CAPITAL PROJECTS BUDGET FOR THE FISCAL YEAR (FY) 2023-24
FACTS

1. The City Council approved the Fiscal Year 2023-24 Budget on June 21, 2023.

2. It is customary to amend the budget to adjust revenues and expenditures to reflect updated information since the adoption of the Fiscal Year 2023-24 Budget.

3. The City Manager is recommending amendments to the Fiscal Year 2023-24 Budget to reflect the City Council goals for the fiscal year budget.

4. The Council has determined it is appropriate to amend the approved budget for FY 2023-24.

5. Pursuant to Charter Article 15, an amendment of the budget must be approved by ordinance.

6. A summary of the Ordinance, approved by the City Attorney, was published on ___________.

7. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq.

8. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) Guidelines Section 15378 because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

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 set forth fully within the body of this ordinance.

SECTION 2. The expenditure budget for the following funds is amended, as stated herein, which by this reference are incorporated as set forth in its entirety.

Expenditures Increase / Decrease
76 Sewer Fund ($272,000)
SECTION 3. The Fiscal Year 2023/24 estimated fund balances based on this adjustment, are referenced herein:

Fund Beginning Fund
Balance
Revenue FY 23/24 Expenditures
FY 23/24
Preliminary Estimated
Ending Fund Balance
76 $22,925,363 $4,040,500 $6,534,165 $20,431,698
The estimated ending “available” fund balance for the Sewer Fund is $4,804,405.

SECTION 4. In accord with Article 15 of the City Charter, this ordinance shall become effective upon adoption hereof.

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PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 15th day of May, 2024, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
________________________
BILL PEAKE, Mayor
ATTEST:
_________________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_________________________________
BRIAN A. 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: Leticia Livian, Human Resources Director
MEETING DATE: May 01, 2024
SUBJECT: First Reading of an Ordinance to Amend the Salary Classification Schedule for City Manager and City Manager Pro Tempore
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Request City Attorney to read title of ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold for first reading an Ordinance Amending Salary Classification Schedule to include salary for City Manager and City Manager Pro Tempore;

3. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

4. DISCUSSION
On April 17, 2024, the City Council approved the employment contract for City Manager which included a change in the annual base salary from the current City Manager classification listed on the City’s salary classification schedule. The salary for City Manager is $121.00 an hour ($251,680 annually) effective retroactively to May 6, 2024 (a second reading of the ordinance will be May 15, 2024). Since the City Manager Pro Tempore classification aligns with the City Manager classification, it will also be amended to the same hourly rate. The City Manager Pro Temp position is filled only in the event of a vacancy or an extended absence in the City Manager’s position.

Attached to this Agenda Report is a proposed Ordinance Amending Salary Classification Schedule to include the salary for City Manager and City Manager Pro Tempore.

The recommended action is for the City Council to request the City Attorney to read the title of the Ordinance and to waive further reading and introduce for first reading an Ordinance Amending Salary Classification Schedule to include Salary for City Manager and City Manager Pro Tempore.

The requested change to the salary classification schedule will only impact the City Manager and City Manager Pro Tempore classifications. All other classification hourly salary ranges will remain the same. To view the entire salary schedule, please refer to the City’s website. To view the revised classification hourly salary ranges for the classifications listed below, please see the related ordinance linked to this agenda report.

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OPTIONS
Not approve the Ordinance amending the salary classification schedule for City Manager and City Manager Pro Tempore.

1. 2. Provide alternative direction to staff.

FINANCIAL IMPACT:

City Manager
No impact to the FY 23/24 budget as this position is budgeted for the fiscal year.

City Manager Pro Tempore
When the position is assigned, cost will be an off-set because the City Manager Pro Tempore will generally serve as the City Manager in the City Manager’s vacancy.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Ordinance
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1 ORDINANCE NO. 24-0XX

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

AMENDING THE CLASSIFICATION SCHEDULE TO INCLUDE A SALARY

FOR CITY MANAGER CITY AND CITY MANAGERPRO TEMPORE
Findings

1. On April 17, 2024, the City Council approved the employment contract for City Manager which included a change in the annual base salary from the current City Manager classification listed on the City’s salary classification schedule. The salary for City Manager is $121.00 an hour ($251,680 annually) effective retroactively to May 6, 2024. Since the City Manager Pro Tempore classification aligns with the City Manager classification, it will also be amended to the same hourly rate; and

2. Amendments to the salary classification plan must be adopted by the City Council pursuant to Charter Article 25 and Pacific Grove Municipal Code (PGMC) Section

4.20.280; and

3. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. Enactment of this ordinance 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 pursuant Section 15378.

Ordinance

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

SECTION 1. The foregoing findings of the City Council are incorporated into this Ordinance as if set forth in full.

SECTION 2. The position classification plan approved and adopted by the City Council pursuant to Charter Article 15 and PGMC § 4.20.280 is hereby amended to include a salary for City Manager and City Manager Pro Tempore at $121.00 per hour effective retroactive to May 6, 2024.

SECTION 3. In accord with Article 15 of the City Charter, this ordinance shall become effective upon the second reading of the ordinance.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 15th day of May 2024, by the following vote:

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2 AYES:

NOES:

ABSENT:

APPROVED:

BILL PEAKE, Mayor
ATTEST:

DATED:

SANDRA KANDELL, 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: Brian Anderson, Police Commander
MEETING DATE: May 01, 2024
SUBJECT: AB 481 Military Equipment Annual Report for 2023.

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

RECOMMENDATION
Receive the AB 481 Annual Report for 2023.

DISCUSSION

BACKGROUND
On September 30, 2021, Governor Newsom signed California Assembly Bill (AB) 481. AB 481 requires California law enforcement agencies to obtain approval for a Military Equipment Use Policy from their applicable governing body before taking certain actions related to the funding, acquisition, or use of military equipment as defined by the legislature.

The intention behind AB481 is to increase transparency, accountability, and oversight for the acquisition and use of equipment. It safeguards the public's welfare, safety, civil rights, and liberties.

The Pacific Grove Police Department does not participate in the 1033 Program. It has not obtained any military equipment from the military, nor does it possess any equipment that was designed for military use.

The acquisition of military equipment and deployment in our communities may impact the public's safety and welfare. The public has a right to know about any funding, acquisition, or use of military equipment by local government officials, as well as a right to participate in any government agency's decision to fund, acquire, or use such equipment. Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public's welfare, safety, civil rights, and civil liberties. They should be based on meaningful public input.

The Pacific Grove Police Department has a robust military equipment policy. The policy is available to the public on the Department's website.

SUMMARY OF USE
The Pacific Grove Police Department did not use any of the listed military use equipment during 2023.

There were instances where officers had military equipment ready for use in the field. However, there were no direct uses of any military equipment acquired by the Pacific Grove Police Department.

COMMUNITY ENGAGEMENT
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COMMUNITY ENGAGEMENT
Pacific Grove Police Department policy states that within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

The Pacific Grove Police Department conducted a public meeting regarding the Military Equipment Policy on March 27, 2024. The meeting was held in the City Council Chambers at 6 p.m., was open to the public, and was advertised on the police department's website, social media, and the City of Pacific Grove website.

The meeting was available for those who wanted to attend in person and those who wanted to attend virtually. No members of the public attended in person or virtually. The meeting was recorded and is available on the department website.

ANALYSIS
Pacific Grove Police Department policy section 706.7 ANNUAL REPORT states:

The Chief of Police or the authorized designee shall submit a military equipment report to the City Council for each type of military equipment approved within one year of approval and annually thereafter, for as long as the military equipment is available for use (Government Code § 7072). The Chief of Police or the authorized designee shall also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use.

The report shall include the following information for the immediately preceding calendar year as required by Government Code § 7072 for each type of military equipment in department inventory.

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

3. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing expenses, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

4. 5. The quantity possessed for each type of military equipment.

If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

6. Department Responses:

1. A summary of how military equipment was used and the purpose of its use.

The equipment was available to officers during their daily activities. None of the listed equipment was directly used, but it was used during training.

2. A summary of any complaints or concerns related to military equipment.

The Department did not receive any complaints concerning military equipment in 2023.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

A monthly audit/inventory is taken for ALL firearms owned by the Pacific Grove Police PGCC 5-1-24

Department. There were no discrepancies during any of the audits. The audits include all rifles and less lethal launchers included in the military equipment use policy. There were no violations of the military equipment use policy.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing expenses, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

Rifle/Pistol Ammunition: 13,000 rounds/$5266.77 (Practice ammunition) Total cost for ammunition: $5,266.77

Training: Firearms/Less Lethal
Rifle training for the Pacific Grove Police Department is conducted simultaneously with pistol training during two annual firearms training days. To complete training for the entire Department while maintaining adequate patrol staffing, most of this training is conducted on officers' days off and compensated as overtime.

In 2023, the Department completed 240 hours of firearms training. To fulfill mandated safety ratios for training, 128 instructor hours were used. Not all the instructor hours were conducted as overtime, and the cost was covered as "on-duty" hours.

The total cost for firearms training was approximately $19,900.00 Less Lethal:

Less lethal training is conducted bi-annually. No Less Lethal training was conducted in 2023.

Maintenance:

Department armorers did it on duty as needed—no additional costs for 2023.

Storage:

They are stored on-site in the department armory—no additional costs.

Transportation:

Equipment is carried daily in officers' police vehicles and transported to and from training sites in police vehicles. There are no additional costs.

Upgrades:

No equipment was upgraded in 2023.

Ongoing costs:

There are no additional ongoing costs for the military equipment.

Funding Source:

All equipment was acquired through the Department's equipment fund, and all training was completed either on duty or during overtime and funded through the Department's FY 23/24 operating budget.

5. The quantity possessed for each type of military equipment.

See attached tables of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

PGCC 5-1-24

The Pacific Grove Police Department plans to acquire five additional rifles in the next year at an approximate cost of $7,767.68.The Department has no other plans to acquire additional military equipment next year. In the event any of the currently owned equipment becomes non-operational or needs replacement, we will replace it. Replaced equipment will be noted in the subsequent annual report. Training and Duty ammunition will be used and replenished as needed and will be listed in the subsequent annual report.

COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department's policy. Military equipment used by other jurisdictions providing aid to the Pacific Grove Police Department shall comply with their respective military equipment use policies in rendering mutual aid.

Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department's policy. Military equipment used by other jurisdictions providing aid to the Pacific Grove Police Department shall comply with their respective military equipment use policies in rendering mutual aid.

The Pacific Grove Police Department is a participating member of the Monterey Peninsula Regional Special Response Unit (MPRSRU), which collaborates with other law enforcement agencies on the Monterey Peninsula. The MPRSRU provides capabilities to address specific law enforcement issues, such as active shooter incidents, hostage situations, barricaded subject incidents, etc. The Pacific Grove Police Department also collaborates with the Monterey County Sheriff's and other local, state, and federal law enforcement agencies that may be needed to aid the Pacific Grove Police Department.

The Pacific Grove Police Department currently has one officer assigned to the Special Response Unit as a team member, one sergeant and one corporal assigned as tactical negotiators. While deployed with the MPRSRU, our members must follow all the policies of the Pacific Grove Police Department.

OPTIONS
Not applicable.

FINANCIAL IMPACT:

Rifle/Pistol Ammunition: 13,000 rounds/$5266.77 (Practice ammunition) Total cost for ammunition: $5,266.77 which was budgeted in the FY 23/24.

1. The total cost for firearms training was approximately $19,900.00 which was budgeted in the FY 23/24.

2. The Pacific Grove Police Department plans to acquire five additional rifles in the next year at an approximate cost of $7,767.68 from the FY budget 24/25.

3. FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Military equipment list 2024
AB 481 power point
PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Less Lethal Weapon
Type 40mm Launcher
Description Penn Arms GL1 40mm launcher
Quantity 2
Capabilities The Penn Arms GL 40mm launcher will launch a 40mm less lethal projectile approximately 130 feet Expected
lifespan
15 years
Manufacturer's
description
A 40mm compact single-shot break-open frame launcher with a rifled barrel and folding stock. Features include: Double-action trigger, trigger lock push button and hammer lock safeties Purpose and
authorized uses
To compel an individual to cease his/her actions when such less lethal weapon presents a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact $1500 (each)
Legal and
proceduralrules
Refer to policies 300, 301, 301.8-301.11
Required
training
Sworn members utilizing the 40mm less lethal impact rounds are trained in their use by CA POST certified less lethal instructors.

Compliance
mechanisms
Use is subject to the applicable policies (300.5, 300.5.1, 300.5.3, 301, 303.4).

PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Less Lethal Weapon
Type Less Lethal Shotgun
Description Remington 870 Less Lethal Shotgun with Orange Stock and Fore-end denoting less lethal Quantity 5
Capabilities The Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-guauge Drag Stabilized Round up to a distance of 75 feet Expected
lifespan
25 years
Manufacturer's
description
The Remington Model 870 Pump Shotgun is a reliable 12-gauge with double-action bars for smooth pump operation. A steellined/grooved fore-end provides a stronger grip, while the Flexitab feeding system provides positive and easier cycling. A less-lethal application shotgun is available with the addition of a blaze orange synthetic SpeedFeed stock and fore-end for the instant recognition required.

Purpose and
authorized uses
To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact $950 each
Legal and
proceduralrules
Refer to policies 300, 301, 301.8-301.11
Required
training
Sworn members utilizing the Remington 870 less lethal shotguns are trained in their use by CA POST certified less lethal instructors.

Compliance
mechanisms
Use is subject to the applicable policies (300.5, 300.5.1, 300.5.3, 301, 303.4).

PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Less Lethal Ammunition
Type Defense Technology Exact Impact 40mm kinetic energy projectiles Description 40mm, foam-tipped kinetic energy fired from an agency-authorized 40mm launcher.

Quantity 36
Capabilities Operational range 5-131 ft.

Expected
lifespan
5 yrs.

Manufacturer's
description
The eXact iMpact™ 40 mm Sponge Round is a point-of-aim, point-of-impact direct-fire round. This lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel. The round utilizes smokeless powder as the propellant, and, therefore, have velocities that are extremely consistent. Used for Crowd Control, Patrol, and Tactical Applications.

Purpose and
authorized uses
To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact Approximately $20 per projectile
Legal and
proceduralrules
Refer to policies 300, 301, 301.8-301.11
Required
training
Sworn members utilizing the 40mm less lethal impact rounds are trained in their use by CA POST certified less lethal instructors.

Compliance
mechanisms
Use is subject to the applicable policies (300.5, 300.5.1, 300.5.3, 301, 303.4).

PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Less Lethal Ammunition
Type Defense Technology/Safariland Drag Stabilized 12-Guage Less Lethal Round Description A less lethal 2.5-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270 feet per second (FPS).

Quantity 145
Capabilities 12-guauge Drag Stabilized Round has an effective range from 20 feet up to a distance of 75 feet Expected
lifespan
5 years
Manufacturer's
description
The 12-Gauge Drag Stabilized™ Round is comprised of a translucent 12-Gauge shell loaded with a 40 gram, tear shaped bag made from a cotton and ballistic material blend and filled with #9 shot. This design utilizes four (4) stabilizing tails. The 12-Gauge Drag Stabilized™ Round utilizes smokeless powder as the propellant.

Purpose and
authorized uses
To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact Approximately $5 per round
Legal and
proceduralrules
Refer to policies 300, 301, 301.8-301.11
Required
training
Sworn members utilizing the Remington 870 less lethal shotguns are trained in their use by CA POST certified less lethal instructors.

Compliance
mechanisms
Use is subject to the applicable policies (300.5, 300.5.1, 300.5.3, 301, 303.4).

PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Lethal Weapon
Type Semi-Auto Patrol Rifle
Description Daniel Defense DDM4V7, Semi-Auto rifle, black in color, with aluminum handguard, and adjustable stock.

Quantity 9
Capabilities A rifle that fires an intermediate-power cartridge (.223/5.56) which is more powerful than a standard pistol.

Expected
lifespan
10 years
Manufacturer's
description
The DDM4 V7 AR15 style firearm features M-LOK attachment technology with the Daniel Defense MFR 15.0 rail. Built around a Cold Hammer Forged, 16-inch barrel, the V7 has a DD improved Flash Suppressor to reduce flash signature. The mid-length gas system provides smooth and reliable cycling under any condition and reduces both perceived recoil and wear on moving parts. With the MLOK attachment points that run along 7 positions and an uninterrupted 1913 Picatinny rail on top, the V7 has plenty of room for the sights, optics, and accessories the user may require. The independently ambi GRIP-N-RIP Charging Handle accommodates left- and right-handed shooters. This rifle also comes with the ergonomic Daniel Defense Buttstock and Pistol Grip.

Purpose and
authorized uses
The Daniel Defense DDM4V7 enables officers when in compliance with the PGPD's Use of Force Policy, to address short to long distance threats, or those threats who are heavily armed, armored or both. Further, in both short and long-distance deployments, they allow officers precision shot placement minimizing the risk to officers and innocent citizens. There are no known alternatives to these weapons that will provide the same level of distance and precision.

Fiscal impact $1,422.00 (each)
Legal and
proceduralrules
Refer to policies 300, 300.4, 300.4.1, 300.4.2, 300.5.1, 300.5.2, 300.5.3, 300.11, 303 Required
training
Sworn members utilizing the Daniel Defense DDM4V7 are trained is their use by CA POST certified firearms instructors.

Compliance
mechanisms
Use is subject to the applicable policies (300.4, 300.9, 303.3.2, 303.5, 303.7, 303.8, 303.9) PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Lethal Weapon
Type Semi-Auto Patrol Rifle
Description Colt LE6920, Semi-Auto rifle, black in color, with plastic handguard, and adjustable stock.

Quantity 13
Capabilities A rifle that fires an intermediate-power cartridge (.223/5.56) which is more powerful than a standard pistol.

Expected
lifespan
10 years
Manufacturer's
description
The Colt M4 Carbine is a Gas Operated Semi-Auto rifle, chambered in 223 Remington/5.56 NATO. The M4 Carbine features a 16.1" barrel and Reversible safety selector and has an overall expanded length of 35.5". The M4 Carbine utilizes a 4-position collapsible stock and A2 flash hider.

Purpose and
authorized uses
The Colt M4 Carbine enables officers when in compliance with the PGPD's Use of Force Policy, to address short to long distance threats, or those threats who are heavily armed, armored or both. Further, in both short and long-distance deployments, they allow officers precision shot placement minimizing the risk to officers and innocent citizens. There are no known alternatives to these weapons that will provide the same level of distance and precision.

Fiscal impact $1,100 (each)
Legal and
proceduralrules
Refer to policies 300, 300.4, 300.4.1, 300.4.2, 300.5.1, 300.5.2, 300.5.3, 300.11, 303 Required
training
Sworn members utilizing the Colt M4 Carbine are trained is their use by CA POST certified firearms instructors.

Compliance
mechanisms
Use is subject to the applicable policies (300.4, 300.9, 303.3.2, 303.5, 303.7, 303.8, 303.9) PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Lethal Ammunition
Type Speer Gold Dot Duty Ammunition .223 Caliber 55 grain rifle round Description Speer Gold Dot features nickel plated brass cases and Boxer primers and is a non-corrosive round. The Gold Dot projectile goes through a process of joining the jacket and core one molecule at a time which eradicates the potential for the leading cause of bullet failure (jacket/core separation). This process will guarantee extraordinary weight retention through barriers as strong as auto-glass.

Gold Dot rifle ammunition asserts remarkable accuracy with exact tolerances and unparalleled bullet uniformity.

Quantity 1,500
Capabilities Operational range 0-300 yards
Expected
lifespan
10 years
Manufacturer's
description
SPEER LE® Gold Dot® Duty Rifle brings proven bullet technology to rifle platform. The Gold Dot® bullet was the first high performance, bonded-core bullet available in handgun ammunition, and has since set the bar for duty ammunition. The nation's number one law enforcement option is now available in rifle ammunition for agencies everywhere. These specially designed loads bring law enforcement rifle ammunition to the next level. Gold Dot rifle bullets are optimized to ensure expansion out of barrels down to 10" at a wide variety of velocities out to 200 yards. This kind of performance greatly increases the capabilities of duty rifles and gives law enforcement personnel a distinct advantage when it matters most. In addition, these new loads boast outstanding feeding in short, very short and standard-length AR platforms. Like their handgun counterparts, the Gold Dot rifle bullets are constructed using Gold Dot technology. The process of joining the jacket and core one molecule at a time eliminates the potential for the leading cause of bullet failure—jacket/core separation. It also ensures impressive weight retention through barriers as tough as auto-glass. In addition to being tough, Gold Dot rifle loads boast outstanding accuracy. Exact tolerances and unprecedented bullet uniformity of jacket thickness give Gold Dot rifle loads outstanding accuracy. In addition, these loads feature flash suppressed propellants and a muzzle velocity of up to 3000 fps. The versatility, reliability, and superior construction of the new Speer LE Gold Dot Duty Rifle loads allow law enforcement agencies to utilize this tested and proven bullet technology in duty rifles with complete confidence.

Purpose and
authorized uses
To project a force against a selected target to have an effect and stop the threat when other reasonable options are not viable. A verbal warning should precede its application.

Fiscal impact $560.00 per case of 1000
Legal and
procedural rules
Refer to policies 300, 300.4, 300.4.1, 300.5, 300.5.1, 300.5.3, 300.11, 303, 303.3 Required
training
Sworn members utilizing Speer Gold Dot ammunition are trained in their use by CA POST certified instructors.

Compliance
mechanisms
Use is subject to applicable policies (303.3, 303.3.2)
PGCC 5-1-24

Pacific Grove Police Department
Military Equipment List
April 2024
Lethal Ammunition
Type Winchester Target Ammunition 5.56 Caliber 55 grain rifle round Description Winchester Target Ammunition features brass cases and Boxer primers and is a non-corrosive round. This ammunition is loaded with a full metal jacket bullet which is known for its positive functioning and exceptional accuracy. On impact this bullet does not expand and is ideal for target shooting.

Quantity 14,000
Capabilities 0-300 yards
Expected
lifespan
10 years
Manufacturer's
description
Winchester "USA White Box" stands for consistent performance and outstanding value, offering high-quality ammunition to suit a wide range of shooter's needs by providing consistent accuracy, positive functioning, and no expansion.

Purpose and
authorized uses
Practice
Fiscal impact $380.00 per case of 1000
Legal and
proceduralrules
Refer to policies 300, 300.4, 300.4.1, 300.4.2, 300.5.1, 300.5.3, 300.11 303 Required
training
Sworn members utilizing Winchester Target Ammunition are trained in their use by CA POST certified instructors.

Compliance
mechanisms
Use is subject to applicable policies (303.3, 303.3.2)
PGCC 5-1-24

City Council Meeting May 1, 2024
AB 481
Military Equipment
City Council Presentation
PGCC 5-1-24

 September 30, 2021 – Governor Newsom signed
AB 481
 Increase transparency, accountability, oversight
for acquisition and use of military equipment
 Provide safeguards to protect public’s welfare,
safety, civil rights and liberties
PGCC 5-1-24

 Annual town hall meeting at least 30 days before
presenting the annual report to City Council.
 Community meeting March 27th, 2024
PGCC 5-1-24

Annual Report

1. A summary of:
o How military equipment was used & its purpose.
o Complaints or concerns related to military equipment
and any actions taken in response.

2. The total annual cost for each type of military equipment, and how the funds were sourced.

3. The quantity possessed for each type of military equipment.

4. Intention to acquire additional military equipment in the current or following year, the quantity sought for each type of military equipment.

PGCC 5-1-24

PGPD Military Equipment
• (2) 40mm Projectile Launchers
• (5) Less Lethal Shotguns
• (22) Department Issued Rifles
• (5) Additional Rifles to be acquired in 2024
PGCC 5-1-24

Acquisition of (5) Additional Rifles
 Operational Need: Enhance our capability with responding to critical incidents.
 Uniformity in Training: Every officer will be using the same platform.  Spare Rifles: Will ensures that we can replace malfunctioning equipment.
 Technological Advancements: Improved accuracy & accessory compatibility.

PGCC 5-1-24

Monterey Peninsula Regional Special Response
Unit (MPRSRU)
• PGPD receives and provides mutual aid to/from all
area law enforcement agencies.
• Agencies are required by AB 481 to get approval from
Governing Body for the equipment owned. There is
currently no SRU equipment owned or maintained by
the City of Pacific Grove.
• One member on SRU and two members on CNT
• SRU did not respond to any incidents in Pacific Grove during 2023
PGCC 5-1-24

City Council City of Pacific Grove
Questions?
PGCC 5-1-24

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: May 01, 2024
SUBJECT: FY23/24 Street Rehabilitation Project
CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION
Authorize an agreement with Monterey Peninsula Engineering for the FY23/24 Street Rehabilitation Project on segments of Locust, Willow, Wood, Grand and Pearl St in an amount not to exceed $1,657,025 plus a 15% contingency.

1. 2. Alternatively, discuss and take other action on this item.

DISCUSSION
The FY23/24 Street Rehabilitation Project was approved as part of the FY23/24 Capital Improvement Plan (CIP)to address the aging road infrastructure network on:
· Locust Street, between Sinex Ave & Junipero Ave (PCI 3) · Willow Street, between Sinex Ave & Junipero Ave (PCI 7) · Wood Street, between Sinex Ave & Junipero Ave (PCI 19) · Grand Avenue, between Gibson & Junipero Ave(PCI 10)
· Pearl Street, between Monterey & 8th Street (PCI 0)
These segments were selected for rehabilitation based on a thorough review of the City’s Pavement Management Program, existing road conditions, and in-field observations.

Existing Conditions
None of these road segments have ever received a formal rehabilitation treatment since construction; they are all in a failed state and in dire need of replacement. All these roads have significantly deteriorated and need immediate attention.

Engineering Process
During the engineering phase, underground infrastructure was CCTV videoed to assess existing conditions. It was anticipated, based on the age of the lines and construction records, that some of the segments of the sewer infrastructure would need to be replaced. As such, the project budget included Sewer Enterprise Funds to address this anticipated need.

While videoing, staff discovered that all of the sewer lines on Locust, Willow, and Wood Street are in a PGCC 5-1-24

While videoing, staff discovered that all of the sewer lines on Locust, Willow, and Wood Street are in a deteriorated state and in need of replacement, from Sinex to Junipero. Additionally, the sewer line on Grand Avenue needs to be replaced from Gibson to Junipero. Between the 4 road segments, 2,540 linear feet of deteriorated sanitary sewer main will be replaced and upsized from 6” vitrified clay pipe to 8” PVC.

Competitive Bidding Process
Construction documents were completed in March of 2024 and a request for proposals was issued. On April 5, 2024, the bid period closed. Three (3) bids were received:

Contractor Base Bid
Monterey Peninsula Engineering $1,657,025
Coastal Paving & Excavating $1,940,940
Precision Grade 1,876,580
Monterey Peninsula Engineering (MPE) has been qualified as the lowest, responsible bidder. Their bid was competitive and is below the engineer's estimate which is $1,866,250. MPE is well qualified to perform this work and has successfully completed several paving and sewer projects for the City.

Scope of Work:

The scope of work for the FY23/24 Street Rehabilitation Project bid includes:
· Reconstruction of 39,400 SF of deteriorated pavement
· Construction of 19 driveway approaches for entrance onto roadways and 1 curb ramp · Reconstruction of 2,850 SF of sidewalk
· Construction of 810 LF of curb and gutter
· Replacement of 2,540 LF of sewer main line
· Reconstruction of 12 manholes
Permitting
The City has received a Coastal Development Permit Exemption, in accordance with PGMC

23.90.040.C: Repair or Maintenance Activities, from the Community Development Department.

Tribal & Archeological Monitoring
Tribal and Archeological Monitoring will occur during ground disturbance activities in the coastal zone.

Agreement
If awarded, Staff will begin collecting the necessary insurance documents and prepare the agreement, harnessing the standard construction contract approved by the City’s insurer, California Joint Powers Insurance Authority (CJPIA).

An agreement will not be routed for execution until the second read of the budget adjustment is heard and approved (see financial impact section below for additional details).

Construction Schedule
Following contract execution, a pre-construction meeting will be held to determine a project schedule.

It is anticipated that all work associated with the project will be completed by the summer.

Updated timelines will be posted to the Clear Gov Page linked here:
https://cleargov.com/california/monterey/city/pacific-grove/projects PGCC 5-1-24

OPTIONS

1. Authorize an agreement
Do not authorize the agreement. Failure to authorize an agreement could impact the ability to meet MOE requirements and would significantly delay the project.

2. FINANCIAL IMPACT:

The total approved project budget is $1,941,137 derived from the Capital Improvement Fund, Measure X, Road Maintenance and Rehabilitation Account (RMRA) and the Sewer Fund as specified below.

Funding Source Approved Budget
Fund 63 – Capital Improvement Fund $300,000
Fund 17 – Measure X $536,088
Fund 47- RMRA (SB1) $505,049
Fund 76- Sewer Fund $600,000
TOTAL $1,941,137
At the time of this writing, approximately $116,000 has been spent on engineering, leaving $1.8 million of construction funding.

There is sufficient funding to allow for the road improvements. However, an additional $272,000 of Sewer Funding is required to fund the vital sewer elements of this project following the competitive bid process. This funding will allow for construction of the underground sewer infrastructure, a 10% sewer construction contingency, and any remaining engineering and construction management activities from the City Engineer.

Undertaking underground sewer work is crucial for health and safety and ensures that investments in pavement infrastructure reach their intended service life by preventing the need for disruptive road cuts for underground repairs.

A budget amendment has been prepared to allocate an additional $272,000 as an element of tonight’s agenda. If approved, there is sufficient funding to accommodate the full construction contract.

Maintenance of Effort Compliance
$300,000 of the project funding is derived from the City’s Capital Improvement Fund and goes directly toward meeting annual Maintenance of Effort (MOE) requirements. The MOE must be met in order to be eligible for continued Measure X and RMRA/Senate Bill 1 funding. The City is on track to meet MOE requirements in the current fiscal year.

FOCUSED PRIORITY AREA: Infrastructure
PGCC 5-1-24

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: Robert Perrault, City Manager
MEETING DATE: May 01, 2024
SUBJECT: Initiative No, 21-0042A1, The Taxpayer Protection and Government Accountability Act.

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

RECOMMENDATION
Adopt a Resolution opposing Initiative No. 21-0042A1, the Tax Payer Protection and Accountability Act.

DISCUSSION
The Taxpayer Protection and Government Accountability Act would revise the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, and may make it more difficult to impose fines and penalties for violation of state and local laws.

The measure could have a significant negative impact on the City of Pacific Grove and its ability to sustain service levels that are expected by community members. The proposed initiative is sponsored by the California Taxpayers Association, The California Business Roundtable, and Howard Jarvis Taxpayers Association. Opponents to the measure include the League of California Cities and every other City Council within the County of Monterey.

Some of the key elements contained within the initiative that could impact cities:

1. Requires greater definitions and specificity for language in proposed ballot measures.

Tax measures approved after January 1, 2022, that do not comply with new rules are void unless rewritten and reenacted.

2. Requires fees and charges paid for the use of local and state government property to be "reasonable" but there is no definition of reasonable"

3. 4. Prohibits indexing for inflation when setting fees.

Expressly prohibits local advisory measures which allow local voters to express a preference for how local general tax dollars should be spent.

5. 6. New taxes can only be specified for a specific time period.

7. City Charters cannot be amended to include a tax or a fee.

Could limit the city's ability to collect certain fees associated with property use or services provided to a property.

8. Prohibits development project conditions which are dependent on vehicle miles traveled (vmt) calculation for project users and residents.

9. There are several additional elements that could impact the City. Although the intent of the PGCC 5-1-24

There are several additional elements that could impact the City. Although the intent of the legislation is broad and much of the initiative language is vague. Ultimately, the impact on cities will be determined according to further court action and language interpretation.

OPTIONS
The following options are presented for Council consideration:

1. Adopt the Resolution opposing the proposed initiative;

2. Modify and adopt the resolution;

3. Do not adopt a Resolution in opposition to the proposed initiative; or

4. Provide staff other direction.

FINANCIAL IMPACT:

It is likely that the claw back provisions included in the initiative would be to nullify the voter approved city initiative to adjust the sales tax by 1/2 percent. This initiative was approved in November of 2022, and most likely did not meet the specificity and definition requirements that are outlined in the initiative. The sales tax adjustment provides $1.2 million in revenue to the city's general fund annually.

There may be other impacts relating to the restricted ability to increase or change fees for a variety of city services.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Resolution
PGCC 5-1-24

1 RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OPPOSING INITIATIATIVE NO. 21-0042A1, THE TAXPAYER PROTECTION AND GOVERNMENT ACT

FINDINGS
WHEREAS, The City of Pacific Grove is a charter city organized under the constitution of the State of California;
WHEREAS, Several state-wide property tax associations have drafted Initiative no. 21-0042 A1 and said initiative would revise the California State Constitution as it related to the city’s ability to place revenue raising measures on the ballot and collect certain fees for services rendered; and WHEREAS, the City Manager has provided a report to the City Council describing several restrictions and requirements that would adversely affect the city’s ability to raise the needed revenue and or increase fees for services rendered by the city.

WHEREAS, The City Manager has determined that the claw back provision of the initiative would nullify the Sales Tax Adjustment Measure approved by the voters in November 2022 resulting in a loss of $1.2 million in annual revenue to the City of Pacific Grove; WHEREAS, the current California State Constitution also provides voter approved protections that limits the state and local government’s ability to adjust and collect certain taxes and fees including voter approved: Proposition 13, Proposition 218 and Proposition 26.

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 Adopts a position of opposition to Initiative No.21-00421A1, Taxpayer Protection and Accountability Act.

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

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this _____ day of ______________, _______, by the following vote:

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2 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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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: Tori Hannah, Administrative Services Director/Assistant City Manager MEETING DATE: May 01, 2024
SUBJECT: Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2023
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the Annual Comprehensive Annual Financial Report, which includes the Auditors' Opinion on the City's financial statements
Receive the Single Audit Report and Independent Auditors' Report Receive the Transportation Safety and Investment Plan Account Fund (TAMC Measure X) Report, which includes the Auditors' Report
Receive the Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Schedule (GANN Limit)
Receive a status on improvements based on the auditor's recommendations that are being implemented, and provide any desired direction

DISCUSSION
The City contracted with The Pun Group, a firm of licensed certified public accountants, to audit the City of Pacific Grove’s financial statements for the fiscal year ending June 30, 2023. The goal of the independent audit is to provide reasonable assurance that the basic financial statements are free from material misstatement.

Coley Delaney, CPA, and Partner with The Pun Group, will present the audit information remotely at the Council Meeting.

A brief overview of each report is provided below.

Annual Financial Statements and Independent Auditors' Report The Independent Auditor's Report, which is included on Page 1 of the Annual Comprehensive Financial Report (ACFR), indicates that the financial statements are presented fairly, in all material respects, the financial position of the City (pdf page 25). This “unmodified” opinion is the optimal opinion to receive from an external auditor.

The report also identifies three prior period adjustments. These adjustments were identified as part of a PGCC 5-1-24

The report also identifies three prior period adjustments. These adjustments were identified as part of a change to a new audit firm. These methods of recording have been in place for a number of years and have been accepted under prior audits. These include the allocation of an estimated portion of the Other Post Employment Benefit (OPEB) liability and related transactions from the General Fund to the Enterprise and Internal Service Funds; changing the offsetting account for the value of housing loans, and a year-end interest accrual adjustment. In Fiscal Year 21/22 and prior years, the value of loans receivable was offset by an equivalent amount of unearned revenue to show that these funds were not readily available for appropriation. As part of the Fiscal Year 22/23 audit, this method changed to offsetting the value of the loans receivable to a restricted fund balance. This change in accounting practice does not change the amount that was previously reported as available for the purpose of issuing new loans or funding housing-related expenses. It should also be noted that the City reported the full value of the loans receivable at the full and correct amount, with additional disclosures placed in Note 6 of the prior statements; and the value of the OPEB liability and the related deferred outflows and inflows were disclosed in total, at their correct amount.

As stated in the Prior Period Adjustments Section on the same page of the Independent Auditors Report, these adjustments do not impact the independent auditors' opinion in relation to fair presentation of the City's financial statements.

The Fiscal Year 22/23 ACFR can be accessed through this link.

The Government Finance Officers Association (GFOA) of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting for the City’s ACFR for the fiscal year ended June 30, 2023. This represents the sixth year that the City has received this prestigious award. A Certificate of Achievement is valid for a period of one year only. Staff believes that the Fiscal Year 22/23 ACFR continues to meet the program requirements; and the City will be submitting the attached ACFR to GFOA for consideration of another certificate.

Additional information can be found in the ACFR, while select highlights pertaining to the General Fund and Capital Improvement Funds are listed below.

Fund Balance
The General Fund’s year-end unrestricted fund balance increased from $12.2 million to $15.0 million. The $2.8 million increase primarily reflects greater than anticipated revenues, the reduced use of contract and professional services; salary savings from vacant positions, and approximately $890,000 in encumbered funds that were carried forward into the next fiscal year.

The unassigned fund balance was $15.0 million or 51.9% of total General Fund expenditures, prior to transfers.

The City's financial statements consolidate several minor funds with the General Fund for financial statement reporting purposes. This differs from the budgetary presentation. The budgetary General Fund Balance is $14.8 million, with approximately $191,000 attributed to minor sub-funds. This amount aligns with the General Fund beginning fund balance that was referenced in Fiscal Year 23/24 budget amendment ordinances. The separate unassigned General Fund balance is approximately 53% of the General Fund expenditures, prior to transfers.

The unassigned General Fund balance, from both a budgetary and financial statement perspective, is above the City’s policy level, which targets a minimum unassigned fund balance at 35% of operating expenditures and debt service.

The Capital Improvement Fund’s year-end balance was $22,626.

Revenues and Expenditures
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Revenues and Expenditures
General Fund revenues for this fiscal year were $31.5 million. This represents an increase in revenues of $3.9 million when compared to the prior year. This was largely attributed to the addition of Measure A taxes for the first three quarters of the year; strong performance in other tax revenue categories, and growth in the charges for services classification.

General Fund expenses for this fiscal year were $28.9 million, prior to transfers. This was an increase of $3.4 million when compared to the prior year expenditures. The annual difference reflects planned growth to align with economic recovery and estimated revenue increases; and includes funding for cost of living adjustments, rising unfunded liability payments, and the purchase of a new fire engine.

The net general fund transfers for Fiscal Year 22/23 was $172,641. This includes transfers-out of approximately $588,000 to support capital improvements, $224,000 for emergency communication services, a transfer of $162,500 in water entitlement sales to the Local Water Project; and $1,419 in minor transfers. These are net of $803,278 in transfers-in, which includes an $800,000 transfer from the American Rescue Plan Act Fund.

Transportation Safety and Investment Plan Account Fund (TAMC - Measure X) A copy of the Transportation Safety and Investment Plan Account Fund (TAMC - Measure X), which includes the Independent Auditors' Reports and Financial Statements is attached for reference. The independent auditor's statement confirms that the City is compliant, in all material respects, with the type of compliance requirements for Measure X. This information is included on Page 19 of the TAMC Audit Report (pdf page 23).

Single Audit and Independent Auditors' Report (Federal Funds - American Rescue Plan Act) A copy of the Single Audit and Independent Auditors' Report is attached for reference. A Single Audit is required when the City receives $750,000 or more in federal grant funding. In Fiscal Year 22/23, the City met this criteria by expending more than $1.07 million in American Rescue Plan Act (ARPA) funds. The Independent Auditors' Report is on page 3 of the report and indicates that the City complied, in all material respects, with the types of compliance requirements referred to within the document that could have a direct and material effect on its major federal programs.

The report did note an internal control weakness or "finding" in relation to the timely identification of the prior period adjustments for the OPEB liability allocation and the housing loans receivable offsetting account (page 9). There were no internal control weaknesses or compliance issues in relation to the audited federal programs (ARPA) on this same page. Additional details and management's response is on page 11, while page 12 confirms that there were no findings or questioned costs on the City's major federal programs (ARPA) for Fiscal Year 22/23.

Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Schedule (GANN Limit)
There were no exceptions noted to the City's presentation of the GANN limit. This information can be found on page 2 of the attached report.

OPTIONS
Receive Report
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Receive Report
FINANCIAL IMPACT:

There is no fiscal impact associated with receiving this report.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Independent Auditors' Report - Transportation Safety and Investment Plan Account Fund (TAMC Measure X)
Independent Auditors' Report - Single Audit
Independent Auditors' Report - GANN Limit
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City of Pacific Grove
Transportation Safety and Investment Plan
Account Fund
Pacific Grove, California
Independent Auditors’ Reports
and Financial Statements
For the Year Ended June 30, 2023
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City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Table of Contents
Page
Independent Auditors’ Report .................................................................................................................................... 1 Financial Statements:

Balance Sheet ........................................................................................................................................................... 7 Statement of Revenues, Expenditures, and Change in Fund Balance ...................................................................... 8 Notes to the Financial Statements ............................................................................................................................ 9 Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .................................. 15 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards .............................................................. …17 Independent Auditors’ Report on Compliance with TAMC Ordinance No. 2019-01 for Transportation Safety and Investment Plan Fund; and
Report on Internal Control Over Compliance .................................................................................................. 19 Schedule of Findings and Questioned Costs .......................................................................................................... 22 PGCC 5-1-24

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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of City Council
of the City of Pacific Grove
Pacific Grove, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Transportation Safety and Investment Plan Account Fund (the “Fund”) of the City of Pacific Grove, California (the “City”), which comprise the balance sheet as of June 30, 2023 and the related statement of revenues, expenditures, and changes in fund balance for the year then ended, and the related notes to the financial statements, as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standard applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2023, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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To the Honorable Mayor and the Members of City Council
Of the City of Pacific Grove
Pacific Grove, California

2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

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To the Honorable Mayor and the Members of City Council
Of the City of Pacific Grove
Pacific Grove, California

3 Supplementary Information
Our audit was conducted for the purpose forming an opinion on the financial statements of the Fund. The Supplementary Information, as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the Fund’s financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2023, on our consideration of the Fund’s internal control over financial reporting and on our tests of its compliance with the requirements described in the Transportation Agency for Monterey County’s (“TMAC”) Ordinance No. 2016-01 and in the agreement between TMAC and the City. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Fund’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund’s internal control over financial reporting and compliance.

Santa Ana, California
December 19, 2023
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FINANCIAL STATEMENTS
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ASSETS
Cash and investments $ 1,228,038
Intergovernmental receivable 204,458
Total assets $ 1,432,496

LIABILITIES,

AND FUND BALANCE
Liabilities:

Accounts payable $ 277,739
Total liabilities 277,739
Fund Balance:

Restricted 1,154,757
Total fund balance 1,154,757
Total liabilities, and fund balance $ 1,432,496
City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
June 30, 2023
Balance Sheet
See accompanying Notes to the Financial Statements.
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REVENUES:

Transportation Safety and Investment Plan Account revenue $ 786,743 Investment earnings 7,570
Total revenues 794,313
EXPENDITURES:

Capital outlay 595,120
Total expenditures 595,120
NET CHANGE IN FUND BALANCE 199,193
FUND BALANCE:

Beginning of year 955,564
End of year $ 1,154,757
City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2023
See accompanying Notes to the Financial Statements.
8 PGCC 5-1-24

City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements
For the Year Ended June 30, 2023
9 Note 1 – Summary of Significant Accounting Policies
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Transportation Safety and Investment Plan Account Fund (the “Fund”) of the City of Pacific Grove (the “City”) is a governmental fund type. Governmental funds are accounted for using a “current financial resources” measurement focus. The application of this measurement focus provides that, in general, only current assets and current liabilities are present on the balance sheet. Operating statements of these funds present revenues and expenditures.

The modified accrual basis of accounting is used for the Fund. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e., both measurable and available). Measurable means that the amount of the transaction can be determined. Available means the funds are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures of governmental funds are generally recognized when the related fund liability is incurred.

Reporting Entity
The Transportation Safety and Investment Plan Account Fund from the Transportation Agency for Monterey County (“TMAC”) was approved on November 8, 2016. The revenue from the Measure X sales tax measure will be used to fund transportation safety and mobility projects in Monterey County. Expenditures are restricted to road improvements, pothole repairs, street and road maintenance, traffic deduction and regional safety, mobility and walkability.

The Fund financial statements and related accounting policies of the City conform with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to governments in the United States of America. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The financial statements present only the Fund of the City and do not purport to, and do not present, the City’s financial position and changes in financial position. The City’s basic financial statements are available from the Finance Department at City’s address and website.

A. Fund Balances
The Fund reports fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent. Fund balances are categorized as follows:

Restricted - This amount indicates the portion of fund balances which has been restricted; a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; b) imposed by law through constitutional provisions or enabling legislation.

The County Council establishes, modifies, or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the year.

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City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
10 Note 1 – Summary of Significant Accounting Policies (Continued) A. Fund Balances (Continued)
When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the County’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the County’s policy is to first apply committed fund balance, then assigned fund balance, and finally unassigned fund balance.

B. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates and assumptions.

Note 2 – Cash
The City follows the practice of pooling cash and investments for all funds (including the Fund) under its direct daily control. Interest earned on pooled cash and investments is allocated periodically to the various funds based on average cash balances. Detailed disclosure regarding the City’s cash and investment is included in the notes to City’s basic financial statements.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost.

All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Certain disclosure requirements, if applicable, for deposits and investment risks in the following areas:
 Interest rate risk
 Credit risk
- Overall
- Custodial credit risk
- Concentration of credit risk
 Foreign currency risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

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City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
11 Note 3 – Maintenance of Effort
The Measure X Master Programs Funding Agreement between the City and the TAMC as amended, requires that the City must expend each fiscal year from its General Fund for street and highway purposes an amount not less than the annual average of its expenditures from its General Fund during the 2009-10, 2010-11, and 2011-12 fiscal years, but not less than what was expended in 2016-17 (when Measure X passed), as reported to the Controller pursuant to Streets and Highways Code section 2151 (“Maintenance of Effort”). This baseline amount is indexed annually to the Engineering News Record construction index.

The following expenditures were made:

Fiscal year ended June 30:
2010 326,756 $
2011 396,862
2012 720,604
Total $ 1,444,222
Three-year average $ 481,407
Fiscal year ended June 30, 2017 $ 912,274
Maintenance of effort baseline $ 912,274
Engineering News Record construction index FY 2020/21 1.27% Engineering News Record construction index FY 2021/22 2.05% Engineering News Record construction index FY 2022/23 7.34% Index-adjusted maintenance of effort requirement $ 1,025,842 Current year eligible expenditures $ 1,429,478
Compliant (Yes or No) Yes
Total expenditures from the General Fund for street and highway purposes for the fiscal year ended June 30, 2023 were $1,429,478 and consisted of salaries and construction costs. The City was in compliance with the Maintenance of Effort requirement of the Measure X Master Programs Funding Agreement between the City and the TAMC.

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SUPPLEMENTARY INFORMATION
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Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)
REVENUES:

Transportation Safety and Investment Plan Account revenue $ 769,992 $ 769,992 $ 786,743 $ 16,751 Investment earnings 5,000 5,000 7,570 2,570
Total Revenues 774,992 774,992 794,313 19,321
EXPENDITURES:

Capital outlay 896,304 1,705,146 595,120 1,110,026
NET CHANGE IN FUND BALANCE $ (121,312) $ (930,154) 199,193 $ 1,129,347 FUND BALANCE:

Beginning of year 955,564
End of year $ 1,154,757
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Transportation Safety and Investment Plan Account Fund
15 PGCC 5-1-24

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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and the Members of City Council
of the City of Pacific Grove
Pacific Grove, California
We have audited, in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Safety and Investment Plan Account Fund (the “Fund”) of the City of Pacific Grove, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Fund’s financial statements, and have issued our report thereon dated December XX, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Fund’s internal control over financial reporting (the “internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Fund’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

PGCC 5-1-24

To the Honorable Mayor and the Members of City Council
of the City of Pacific Grove
Pacific Grove, California

18 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of that report is solely to report our opinion on compliance and to describe the scope of our testing of internal control over financial reporting and the results of that testing, and not to provide an opinion on the effectiveness of the Fund’s internal control over financial reporting. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. This report is intended solely for the information and use of City Council, management of the Transportation Agency for Monterey County and for filing with the appropriate regulatory agencies and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
December 19, 2023
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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
REPORT ON COMPLIANCE WITH TAMC ORDINANCE NO. 2019-01 TRANSPORTATION SAFETY AND INVESTMENT PLAN FUND; AND

REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Independent Auditors’ Report
To the Honorable Mayor and the Members of City Council
Of the City of Pacific Grove
City of Pacific Grove, California
Report on Compliance with TAMC Ordinance No. 2019-01 for Transportation Safety and Investment Plan Fund
Opinion
We have audited the City of Pacific Grove, California’s (the “City”) compliance with the types of compliance requirements described in Transportation Agency’s for Monterey County’s (the “TAMC”) Ordinance No. 2019-01 and Measure X Master Programs Funding Agreement between TAMC and the City (the “Agreement”), for the year ended June 30, 2023.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the Agreement for the year ended June 30, 2023.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of City and TAMC and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the TAMC. Our audit does not provide a legal determination of the TAMC’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City.

PGCC 5-1-24

To the Honorable Mayor and the Members of City Council
of the City of Pacific Grove
Pacific Grove, California

20 Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards will always detect material noncompliance when it exists.

The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements as a whole.

In performing an audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Fund’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the Fund’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Government Auditing Standards, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a compliance requirement on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a compliance requirement that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

PGCC 5-1-24

21 To the Honorable Mayor and the Members of City Council of the City of Pacific Grove
Pacific Grove, California

Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing on internal control over compliance and the results of that testing based on the requirements of TAMC Ordinance No. 2019-01.

Accordingly, this report is not suitable for any other purpose.

Santa Ana, California
December 19, 2023
PGCC 5-1-24

City of Pacific Grove
Transport Safety and Investment Plan Account Fund
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2023
22 Audit Findings and Questioned Costs
A. Current Year Findings and Questioned Costs
No current year findings were noted
B. Prior Year Findings and Questioned Costs
No prior year findings were noted
PGCC 5-1-24

City of Pacific Grove
Pacific Grove, California
Single Audit and
Independent Auditors’ Reports
For the Year Ended June 30, 2023
PGCC 5-1-24

City of Pacific Grove
Table of Contents
Page
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................... 1 Independent Auditors’ Report on Compliance for Each Major Federal Program, and Report on Internal Control Over Compliance Required by the Uniform Guidance, and Report on Schedule of Expenditures of Federal Awards ........................................................................ 3 Schedule of Expenditures of Federal Awards ............................................................................................................ 7 Notes to the Schedule of Expenditures of Federal Awards ........................................................................................ 8 Schedule of Findings and Questioned Costs .............................................................................................................. 9 PGCC 5-1-24

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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pacific Grove, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the basic financial statements which collectively comprise the City’s basic financial statements and have issued our report thereon dated April 15, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item 2023-001 that we consider to be a material weakness.

PGCC 5-1-24

To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California

2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City’s Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The City’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
April 15, 2024
PGCC 5-1-24

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM,

REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE

UNIFORM GUIDANCE, AND REPORT ON SCHEDULE OF EXPENDITURS OF FEDERAL AWARDS Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Pacific Grove, California’s (the “City”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of the auditors' results section of the accompanying Schedule of Findings and Questioned Costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

PGCC 5-1-24

To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California

4 Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

PGCC 5-1-24

To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California

5 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated April 15, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming our opinions on the City’s financial statements. The accompanying Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Santa Ana, California
April 15, 2024
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City of Pacific Grove
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2023
See accompanying notes to the Schedule of Expenditures of Federal Awards. 7 Assistance
Federal Grantor/Pass-Through Grantor Listing Grant Award Federal Program Title Number Number Expenditures
U.S. Department of the Treasury:

Passed-through the State of California
Coronavirus State and Local Fiscal
Recovery Funds 21.027 n/a $ 1,071,924
Total U.S. Department of the Treasury 1,071,924
Total Expenditures of Federal Awards $ 1,071,924
PGCC 5-1-24

City of Pacific Grove
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2023
8 Note 1 – Reporting Entity
The City of Pacific Grove, California (the “City”) is primarily a residential community located at the tip of the Monterey Peninsula on the Central California coast. The community was incorporated as a city on July 16, 1889. It was granted a charter by the State on April 22, 1927. The City operates under a council-manager form of government.

The seven-member City Council appoints a City Manager, who is the administrative head of the municipal government. City amenities include a library, natural history museum, a community center, a youth center, a senior center, a golf course, a cemetery, sewer services, a monarch butterfly sanctuary and habitat preserve and general administration services. The City Council acts as the governing board. In addition, City staff perform all administrative and accounting functions for these entities and these entities provide their services entirely to the City.

Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. The City had no component units as of June 30, 2023.

Note 2 – Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City and some amounts in this schedule may differ from amounts presented in the City’s financial statements.

Note 3 – Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.

Note 4 – Indirect Cost Rate
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.

Note 5 – Subrecipients
The City did not provide funding to subrecipients during the year ended June 30, 2023.

Note 6 – Contingencies
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

PGCC 5-1-24

City of Pacific Grove
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2023
9 Section I – Summary of Auditors’ Results
Financial Statements
Type of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting:
 Material weakness(es) identified? 2023-001
 Significant deficiency(ies) identified? None Reported Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None Reported Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No
Identification of major programs:

AL Number(s) Name of Federal Program or Cluster Expenditures

21.027 Coronavirus State and Local Fiscal Recovery Funds $ 1,071,924 Total Expenditures of All Major Federal Programs $ 1,071,924 Total Expenditures of Federal Awards $ 1,071,924
Percentage of Total Expenditures of Federal Awards 100.00% Dollar threshold used to distinguish between type A and type B programs $750,000 Auditee qualified as low-risk auditee in accordance with 2 CFR 200.520? No PGCC 5-1-24

City of Pacific Grove
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2023
10 Section II – Financial Statement Findings
A. Current Year Findings – Financial Statement Audit
Finding 2023-001 Internal Control Over Financial Reporting – Prior Period Adjustments Criteria:

Management is responsible for the preparation and fair presentation as well as the accuracy of its financial statements including disclosures in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. As part of satisfying that responsibility, staff should possess that skills, knowledge, and experience necessary to complete year-end close and diligently employ that knowledge, skill, and experience to produce reliable and accurate financial information.

Generally accepted auditing standards defined internal control as a process – affected by the members of City Council, management, and other personnel – designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
 Reliability of financial reporting,
 Effectiveness and efficiency of operations, and
 Compliance with applicable laws and regulations.

The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) established the following framework that stress the need for policies and procedures to promote effective internal control for an entity:
 Control Environment – establish structures, reporting lines, authorities and responsibilities,  Risk Assessment– select and develop control activities that mitigate risks,  Control Activities – deploy control activities through policies and procedures,  Information and Communication – communicate internal control information internally, and  Monitoring – evaluations are used to determine if controls are present and functioning.

An overall purpose of internal control over financial reporting is to foster the preparation of reliable financial statements. Reliable financial statements must be materially accurate.

Conditions:

The City previously recorded unavailable revenue in certain governmental funds as an offset to loans receivable rather than recording non-spendable or restricted fund balance, as appropriate.

Additionally, the City had not previously allocated the net OPEB liability, OPEB-related deferred outflows and deferred inflows of resources, and OPEB expense to enterprise funds or internal service funds, despite having OPEB-eligible employees’ payroll and related expenses charged to those funds.

PGCC 5-1-24

City of Pacific Grove
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2023
11 Section II – Financial Statement Findings (Continued) A. Current Year Findings – Financial Statement (Continued) Finding 2023-001 Internal Control Over Financial Reporting – Prior Period Adjustments (Continued) Cause:

The City has a small Finance Department, with limited staff with technical knowledge. Most staffing resources were focused on internal controls with current accounting functions, as well as implementing new GASB pronouncements. The City did not have sufficient technical staff to revisit transactions that were deemed acceptable in the prior audit.

Effect or Potential Effect:

Certain material prior period adjustments were necessary to correct fund balance/net position as of July 1, 2022 as follows:
 Reallocate the beginning balance of OPEB-related items:
 Cemetery Enterprise Fund - $(100,659)
 Sewer Enterprise Fund - $(247,964)
 Business-type activities - $(348,623)
 Adjust unearned revenue related to loans receivable:
 CDBG Grant Special Revenue Fund - $789,439
 CalHOME Reuse Special Revenue Fund - $302,888
 Housing Special Revenue Fund - $290,841
Other prior period adjustments were made (see Note 16 in the Annual Comprehensive Financial Report for details) that were immaterial and did not rise to the level of a finding.

Context:

See conditions above for context of the finding.

Recommendation:

The City should enhance its review processes to ensure the accurate and complete year-end closing of the general ledger and the preparation of its basic financial statements.

PGCC 5-1-24

City of Pacific Grove
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2023
12 Section II – Financial Statement Findings (Continued) A. Current Year Findings – Financial Statement (Continued) Finding 2023-001 Internal Control Over Financial Reporting – Prior Period Adjustments (Continued) Management View and Corrective Action Plan:

The City agrees with making this update and these items have been adjusted in the Fiscal Year 22/2023 Annual Comprehensive Financial Report.

The City would like to clarify that the value of loans receivable was disclosed at the full and correct amount, with an equivalent offset to unearned revenue, in the Fiscal Year 21/2022 financial statements. Additional information regarding the loans receivable and the associated unearned revenue was also disclosed to readers in Note 6 of the prior year financial statements. In funds that were subject to this change and reported an “available” restricted fund balance, the amount available for appropriation was also reported appropriately. As the audit firm indicated, this adjustment changes the accounting treatment by offsetting the value of loans receivable with an equivalent amount of restricted fund balance, rather than offsetting the loans receivable with unearned revenue.

The City would also like to clarify that the value of the OPEB liability and the related deferred outflows and inflows of resources were disclosed in total, at their correct amount. This adjustment reflects a revised estimate of the amounts allocated to the enterprise and internal service funds. The original estimate was conducted at the time the prior audit firm was retained and the amount allocated was determined to be immaterial.

These updates were identified as part of a change in audit firms. The methods of recording had been accepted under prior audits.

B. Prior Year Findings – Financial Statement Audit
No findings were noted on the City’s financial statement audit for the year ended June 30, 2022.

PGCC 5-1-24

13 Section III – Federal Award Findings
A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2023.

B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2022.

City of Pacific Grove
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2023
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City of Pacific Grove
Pacific Grove, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ending June 30, 2024
PGCC 5-1-24

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Pacific Grove, California (the “City”) for the year ending June 30, 2024. The City’s management is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ending June 30, 2024, and compared the limit and annual calculation factors that were adopted by resolution of the City Council. We also compared that the population and inflation options included in the aforementioned worksheets were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and compared the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures.

PGCC 5-1-24

To the Honorable Mayor and Members of City Council
of the City of Pacific Grove
Pacific Grove, California

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an audit or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

Santa Ana, California
April 15, 2024
PGCC 5-1-24

City of Pacific Grove
Appropriations Limit Schedule
For the Year Ending June 30, 2024
See accompanying Notes to the Appropriations Limit Schedule. 3 Amount Source
A. Appropriations Limit from FY 2022-2023 $ 45,591,100
B. Adjustment Factors:

1. Growth in City Population 1.0008 State Department of Finance

2. California per Capita Personal Income Growth 1.0444 State Department of Finance

3. Adjustment Factor B1*B2 1.0452
C. Annual Adjustment Increase 2,062,337 A * (B3 - 1)
D. Other Adjustments:
1) Loss reponsibility (-) – N/A
2) Transfer to private (-) – N/A
3) Transfer to fees (-) – N/A
4) Assumed responsibility (-) – N/A
E. Total Adjustments 2,062,337 (C+D)
F. Appropriations Limit FY 2023-2024 $ 47,653,437 (A+E) Prior Year appropriations
limit adopted by the City

PGCC 5-1-24

City of Pacific Grove
Notes to the Appropriations Limit Schedule
For the Year Ending June 30, 2024
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIII-B, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ending June 30, 2024, represents the annual percentage change in population for the county.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ending June 30, 2024, represents the percentage change in California per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity.

The City had no such adjustments for the year ending June 30, 2024.

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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: Mohammed Khasimi, Chief Information Officer
MEETING DATE: May 01, 2024
SUBJECT: IT Infrastructure High Availability Assessment Report CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the IT infrastructure high availability assessment report and presentation.

DISCUSSION
The city has been experiencing outages related to its IT infrastructure components. These outages cause disruption of the city’s business and services to the community.

Staff realized that the majority of these outages could be avoided by making the City’s IT infrastructure more resilient by adding redundancy and providing high availability to its various components.

Therefore, upon direction from the former City Manager, staff selected and contracted with ClientFirst Consulting Group, LLC, to perform a comprehensive assessment of the City’s IT infrastructure for high availability.

The project started late last year. Over the last few months, the consultant interviewed the City’s departments and the IT staff to gather information; identify the City’s most critical operations and services; and assess the IT infrastructure.

The consultant then prepared a High Availability Assessment Report, which included recommended improvements to the City’s IT infrastructure to improve its resiliency to meet the demands for critical operations and services. These recommendations also enhance the City's data protection and security, and include disaster recovery initiatives and cloud backups. A five-year proposed budget plan for implementing the recommended improvements are included in the attached agenda report.

The information can be further evaluated and prioritized for consideration in future budgets.

OPTIONS
Receive the IT infrastructure high availability assessment report and presentation Provide alternate direction
FINANCIAL IMPACT:

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There is no fiscal impact associated with receiving this report. While a five-year budget plan is attached for implementing the recommended improvements to the City's IT infrastructure, these recommendations will be further assessed and prioritized as part of each years' annual budget process.

GOAL ALIGNMENT: Not Applicable.

Attachments
HA Assessment Report
HA Assessment Report - Budget Plan
HA Assessment Report - Summary Presentation
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Optimal Technology Guidance
Technology High
Availability Assessment
March 2024
Client Locations
Coast-to-Coast
Practice Locations
California
Illinois
North Carolina
Texas
800.806.3080
www.clientfirstcg.com
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Table of Contents

1. INTERNET BANDWIDTH ............................................................. 3

2. COUNCIL CHAMBERS AUDIOVISUAL UPGRADE ........................... 4

3. BACKUPS ................................................................................ 5

4. NETWORK UPGRADE ................................................................ 6

5. VMWARE UPGRADE AND SERVER REFRESH .............................. 7

6. DISASTER RECOVERY PLANNING .............................................. 8

7. COMPUTER EQUIPMENT REPLACEMENT PLANNING .................... 9

8. NETWORK MANAGEMENT TOOLS ............................................ 10

9. COMPUTER ROOM POWER AND POWER DISTRIBUTION ............. 12

10. VOIP PHONE SYSTEM IMPROVEMENTS ................................ 13

11. STRUCTURED CONNECTIVITY SYSTEM ................................. 15

12. SINGLE SIGN-ON ............................................................... 16

13. FIBER CAPACITY PLANNING STUDY (OPTIONAL) .................. 17 PGCC 5-1-24

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1. Internet Bandwidth
Background
Increased Internet bandwidth and high availability are becoming increasingly important to organizations for daily functionality. They allow for additional resources to become available during peak Internet usage and provide resiliency when disasters cause primary Internet connections to be no longer accessible.

Findings and Observations
• Primary Internet connectivity for the City is a 100Mb fiber-based AT&T connection. • City Hall Internet firewalls are configured in High Availability mode. • Secondary Internet connectivity is a 100Mb down and 25Mb up Comcast Business Class coaxial connection located at the Police Department.
• Bandwidth issues, including noticeable delays in Council meeting videos, have been documented.
• The Library has a single 1Gb Internet connection provided by CENIC.  By contract, this connection is limited to patron use.  A single firewall supports this connection.
• Public Works and the Lighthouse have separate Internet connections, supported by single firewalls.

Recommendations
• Upgrade both City Hall Internet connections to a minimum of 500Mb fiber-based connections.
 If the cost difference is small, upgrade both Internet connections to 1Gb.  As a Best Practice, maintain two different Internet connections from different providers at the same speed.
 Utilize automatic load-balancing and failover to increase resiliency. • Upgrade the Police Department firewall to a High Availability pair.  Implement internal and external load balancing to maintain inbound and outbound communications.
• When conducting the Fiber Optic Assessment, consider utilizing City private fiber as a pathway to City Hall Internet for the Library and Public Works.  This would provide the Library and Public Works with resilient Internet connectivity. • Add a tertiary Internet connection at City Hall using satellite Internet connectivity if 100Mb upload speeds are available.
 City Hall connection to serve Police Department in the event of an issue with fiber based internet.
 Consider adding satellite Internet or redundant Internet to the Library. Note that Erate does not subsidize redundant Internet connections for libraries.

Benefits
• Improved performance
• Increased Internet uptime
• Increased resiliency, providing increased cloud-based applications and services uptime PGCC 5-1-24

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• Reduced risk and liability
• Disaster recovery safeguard

2. Council Chambers Audiovisual Upgrade
Background
Council Chambers audiovisual (AV) tools record and stream public meetings to the Internet. The resulting recording can be matched with the agenda items through software to allow interested parties to select an item and click directly to the related video.

Findings and Observations
• Council chambers audiovisual equipment is located in a small room next to the council chambers.
 Very little space is available within the room for additional switching equipment.  The room does not have air conditioning or environmental control for humidity. • The audiovisual computer room equipment utilizes a single electrical circuit for power.  A large UPS is installed in the room to provide some protection in the event of power spikes or outages.
 A recent power outage caused the Extron to require re-configuration. • Internet failures cause the failure of Council meeting streaming. • During a recent upgrade, individual councilmember displays were implemented on the dais.  An Extron switch, network switch, and UPS for these displays are located underneath the Clerk’s desk.
 A single network cable runs from this equipment back to the audiovisual equipment room.
 The network switch fan is loud, reducing the Clerks’ ability to hear some meeting speakers.

Recommendations
• Implement an HVAC system in the audiovisual control room.  Implement an environmental monitor in the room to provide staff with temperature or humidity alerts.
• Consolidate all cabling and switching equipment to the audiovisual control room.  An initial review highlighted the need for a small wall-mount cabinet to house the relocated equipment.
• Add a second data circuit in the audiovisual control room.  Revise power cabling to match best practices.
• Follow recommendations for secondary and tertiary Internet connections in the City.  Test network routing to verify streaming functions in the event of a network outage during a broadcast.

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Audio/Visual Equipment Recommendation
• Approximately 5 minutes of downtime:
 Alternate system failover – includes: MICs, speakers, camera (one), control panel and switching equipment
Benefits
• Improved production quality of City meetings and other public meetings held in the Council Chambers
• Improved government transparency
• Improved uptime of broadcast capability

3. Backups
Findings and Observations
• The City utilizes Veeam as a backup solution, performing daily local backups. • GIS servers are not backed up.
• Microsoft Azure and Office 365 cloud-based services are not backed up.  It is best practice to back up Microsoft cloud-based services to a separate service.  Office 365 is also used as an electronic mail archive for Public Records Requests and legal holds.
• The City has purchased Veeam Cloud Restore but has not implemented it yet.

Recommendations
• Expand backups to include GIS and any other onpremise storage. • Expand the use of Veeam to include Azure servers.
• Implement an Office 365/SharePoint/Teams backup
solution.
• Test backups on a regular basis.
 Conduct individual file restoration tests until cloudbased server recovery is in place.  Once cloud-based server recovery has been
implemented, test a full server restore every quarter.
• Implement Veeam Cloud Backup and Disaster Recovery.
 Consider utilizing a Veeam Disaster Recovery as a Service partner to manage cloud DR.

Benefits
• Ultimate fallback in the event of malware attack.
• Ability to restore in the event of a catastrophic failure PGCC 5-1-24

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4. Network Upgrade
Background
A Local Area Network (LAN) is a group of interconnected computers that span a building using copper, fiber cabling, or wireless technology as a means of communication. Typically, access to a LAN is controlled by authentication software integrated with Active Directory. Authorized users can access the network and use resources and applications assigned to them. LANs are very common due to their small size, low maintenance, fast speeds, and ease of use.

Findings and Observations
• City LANs consist primarily HPE/Aruba data switches.
 City Hall switches were purchased in late 2018.
• There is a single Police Department core switch.
 A high availability design would include redundant
core switches at Police.
 The Police Department core switch becomes endof-life in 2023. • Dynamic Host Control Protocol (DHCP) controls IP
address assignments for all computers.
 A single DHCP server is installed at City Hall.
• Domain Controllers handle authentication and other critical network services.  There is a single Domain Controller configured at Police Department.  There is a single Domain Controller configured at City Hall. • Micro-segmentation is a cybersecurity trend, and virtual networking is a network management trend.

Recommendations
• Replace the end-of-life Police Department Core switch.  Include a redundant switch in the procurement.
 Include redundant power supplies for each switch.
• Procure a redundant network switch at the Library.
 Include redundant power supplies.
• Move DHCP services to firewalls as a part of the High Availability implementation. • Move primary Domain Controllers to Microsoft Azure cloud-based services.  Utilize redundant domain controllers at City Hall and Police. • Expand VLANs to separate critical applications (micro-segmentation) further.  Expand the use of VLANs to increase prioritization and security.  Add VLANs to segment system backups.
 Determine the best method of implementation of port-level security to prevent unauthorized connections.

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Benefits
• Improved network performance and reliability
• Increased security on network and resources
• Reduced costs associated with replacements and failures • Ability to establish an internal SLA (99.9% would be standard for local government.) • Improved budget and project planning
• Increased network resiliency and performance
• Reduced IT staff support effort

5. VMware Upgrade and Server Refresh
Background
Hardware virtualization refers to the creation of virtual machine(s) that act like a real computer with an operating system. Software executed on a virtual machine is separated from the underlying hardware resources. Virtualization enables servers to be easier to implement and less costly to own and manage.

Findings and Observations
• City IT has implemented VMware for server
virtualization.
 City Hall and Police have server installations.
• At City Hall, there are two VMware servers.
 It takes three VMware servers to create a
resilient server cluster.
• At Police, there is a single Hyper-V server.
 At Police, limited resource requirements will allow for the creation of a redundant pair of servers.
• At City Hall, disk storage is provided by a Nimble Storage Area Network (SAN).  The SAN is connected to the servers using shared HPE/Aruba network switches.

Recommendations
• Purchase and configure additional servers for City Hall and Police Department to build resilient server infrastructure.
• Revise network connectivity through core switching to assure resiliency. • Move Police Department to VMware for consistency.
• Purchase standalone redundant switches to connect.

Benefits
• Reduced data center space needs
• Reduced power requirements
• Improved failover and reliability
• Increased uptime
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6. Disaster Recovery Planning
Background
Disaster recovery planning is a critical component of cyber security readiness. A disaster recovery plan outlines expected timeframes and work steps to restore computer systems should a significant incident cause a long-term (usually expected to be greater than 24 hours) outage.

Expected recovery timeframes should be documented as service-level agreements between the IT function and the Departments for recovery of systems and maximum data loss.

A disaster recovery plan should contain the detailed work steps required for recovery. The City cannot assume that primary IT staff will be available in the event of a disaster.

Findings and Observations
• The City does not have Disaster Recovery, Business Continuity, or Cybersecurity Incident Response plans.
• As a part of this engagement, the Departments requested the following recovery timeframes:
 Internet and authentication availability to be as close to utility grade.  Utility grade = 99.999% or less than five minutes of downtime per year.  On-premise systems are to be restored in less than four hours. • In the event of a local emergency, the Library is a designated Shelter.  We have found that Internet access is very important to residents and visitors in the event of an emergency.
• System restoration capabilities are on-premise.
 Cloud-based backups and virtual recovery servers have not been implemented.  A cloud-based backup and recovery tool has been purchased.

Recommendations
• Implement primary, secondary, and tertiary Internet connections for City Hall and Police. • Implement primary, secondary, and tertiary Internet connections for the Library.  Alternatively, connect the Library with City Hall through underground fiber optic cable. • Implement cloud-based backup solutions as recommended in this Assessment.  Consider a Disaster Recovery as a Service vendor to manage cloud-based backup and disaster recovery capabilities with the capability of meeting the above Service Level Agreement of restoration in under four hours.
 Include the ability to activate virtual servers in the cloud in the event of a disaster.  Best practice for cloud-based backup is a system that protects against malware attacks through additional separation from production systems (immutable backups).  Test virtual server recovery on a quarterly basis.
• Develop recovery a Disaster Recovery Plan/Business Continuity Plan.  Include detailed instructions for user access to cloud-based recovered applications.

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• Develop strategies for the restoration of high-priority applications.  Develop plans for continued staff access to applications in the event a major District facility is no longer available.

Benefits
• Emergency preparedness compliance
• Improved communication
• Awareness of procedures
• Better diagnostics and problem identification
• Reduced risk and liability
• Faster, well-informed decision-making
• Identification of business-critical functions
• Decreased recovery times and exposure to system failures • Awareness of immediate actions

7. Computer Equipment Replacement Planning
Findings and Observations
• The City has a replacement schedule for most capital computer equipment, including servers, storage, switches, or firewalls.
• IT replaces desktop PCs and laptops on a regular basis, approximately every five years. • Other technology systems, such as audiovisual systems, camera systems, door access control systems (pending), video surveillance, and UPS systems, do not have formal replacement schedules.

IT Equipment
Recommended
Replacement
Cycle (Years)
Network Switches 7
Phone System
Upgrade 5
Phone System
Replacement 10
Audiovisual
Equipment 5
Servers 5
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Recommendations
• Maintain current systems across the organization if at all possible.
• Create and maintain an inventory of all technology-related equipment, year purchased, warranty duration, and other useful information.
 Expand the inventory to all technology with a standard life expectancy.
• Develop a ten-year, rolling computer equipment
replacement plan and budget accordingly.
• Allow customized length of time for replacement of any technology that may have a unique end-of-life.
• Continue to purchase discounted extended warranties at the time of purchase that will cover the equipment
throughout its useful life (e.g., five years for computers and servers).

Benefits
• Reduced end-user downtime
• Improve computer performance
• Better forecasting of purchases
• Managed process that flattens capital expenditures over time • Better ability to patch and maintain workstations
• Improved portability through the use of a single device • Ability to keep spare equipment around to be reissued, eliminating employee downtime • Increased employee performance by eliminating the use of old, slow, and post-life cycle technology
• Reduced total cost of ownership

8. Network Management Tools
Background
Network management is the general term used for the activities, procedures, and tools related to the operation, administration, provisioning, and maintenance of computer network systems, keeping the network running smoothly while monitoring the system to identify potential problems quickly.

Disk Storage 5
PCs 5
Laptops 4
Mobile Devices 2
Wireless Devices:

Point-to-Point 5
Wireless LAN 4
Windows Software +/- 5
MS Office +/- 5
Printers, Scanners 5
Plotters 5
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Findings and Observations
• The City uses a product for Security Event and Incident Management (SEIM).
 Only Microsoft Azure default logs are currently
ingested by the system.
• The City utilizes a tool for device inventory, patching, software push, and other operational needs.
• The City does not utilize a network management tool for alerts and alarms.
 Network management tools can provide early
warning of potential and actual network failures.
 Network management tools can simplify
configuration updates by automatically storing
configuration files and tracking revision levels.

Recommendations
• Expand SEIM tool utilization to include ingesting logs from all City infrastructure devices. • Select and implement a tool for network management, including alerts and alarms.  Consider PRTG, ManageEngine, What’s Up Gold, or similar.  Configure alarms for common issues:
 Low disk space
 High memory utilization
 Network segment failure
 Internet service provider failure
Benefits
• Reduced downtime due to more rapid notification of issues • Proactive management of internet bandwidth, network and servers • Less time manually managing and monitoring
• Increased utilization
• Increased resource access
• Centralized access to multiple applications and platforms PGCC 5-1-24

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9. Computer Room Power and Power Distribution
Findings and Observations
• Some computer room electric power sources utilize UPS systems, while other servers are plugged directly into generator-driven power outlets.
 Generators have been known to create power spikes and brown-outs that decrease the life of attached equipment.
• Power distribution units (PDUs) are used within the City Hall Police Department computer rooms.
 In some cases, redundant PDUs are plugged into the same UPS.  PDUs can extend the life of network hardware by utilizing power more efficiently.  PDUs can be used to monitor and remotely control power distribution to computer infrastructure equipment.
 Some of the PDUs in place can be connected to the network for remote control and monitoring.
• The UPS units in place are not advanced enough to support Best Practices monitoring and management functions.
 Not all UPS systems have network monitoring capabilities. • There are no additional available electrical circuits at the City Hall or Police computer rooms.  These rooms are central communication hubs and will require redundant systems to maximize applications regardless of on-premise or cloud-based applications. • Police Department UPS systems vary in size, reducing their ability to perform redundantly. • One recent outage was caused by a clogged condenser drain dripping on a UPS.

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Recommendations
• Evaluate all electrical connections and develop a detailed list of improvements. • Budget for redundant circuits in the City Hall and Police Department computer rooms. • Budget for additional replacement UPS systems that can be network attached.  Procure and utilize network management software for UPS systems. • Budget for and implement PDUs for any connections that do not have them. • Create battery and PDU replacement cycle.
• Procure “water snakes” to provide network management alerts in the event water is detected on the floor of a computer room.

Benefits
• Reduces power-related failures
• Improved support for electronic devices
• Improved management and monitoring capabilities
• Longer-lasting equipment
• Reduced cost in replacement of failed hardware

10. VoIP Phone System Improvements
Background
Voice over Internet Protocol (VoIP) technology uses an Internet connection to transmit calls. It is highly reliable and fast when compared to conventional telephone systems and is an accepted communication standard. Benefits include reduced costs, the ability to change numbers as needed easily, and increased features and support. VoIP hardware upgrades can occur automatically and seamlessly.

Findings and Observations
• The City implemented an on-premise MITEL VoIP system in late 2019 or early 2020. • The on-premise system was initially designed with local controllers at any City facility with more than five phones.
 Local analog backup lines were included in the initial design to allow outboard calling in the event of a network outage.
 The local controller at Public Works was destroyed in the fire.  Public Works phones now receive dial tone through the City Hall controller.  Configuration issues have been uncovered at:
 Community Center
 Cemetery
 Lighthouse
Recommendations
• Utilize the telephone system maintenance vendor to update the facilities with configuration issues.
• Determine whether additional analog backup capability is required at Public Works.

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 Public Works staff may feel that emergency analog phones would be sufficient instead of a dedicated on-premise controller with emergency analog lines.

Benefits
• Reduced implementation, support, and maintenance costs • Ability to dial E911 when the network fails
• Continued communications in the event of a network failure • Enhanced communications
• Increased use of features
• Improved user experiences
• Reduced total cost of ownership
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11. Structured Connectivity System
A Structured Connectivity System is a complete set of cabling and connectivity products that integrate voice, data, video, and other technology systems into a comprehensive infrastructure.

Findings and Observations
• Police Department computer room patch cables and layout have deteriorated and are no longer configured in a Best Practices manner.
 Some communications system patch panels, wiring blocks, and faceplates are not labeled in a reliable manner and/or, in some cases, are not labeled at all.  Cabling at the Police Department is Category 5 and must be upgraded to support current applications.
 The computer rack is on wheels and should be secured to the structure as a part of earthquake mitigation.
 A few small, unmanaged network switches have been added to the system over time.

These switches are a cyber security and reliability risk. • The Library tele/data closet has been moved away from the source of many of the environmental issues that have plagued the equipment.
 IT has installed a sensor to monitor temperature and humidity • One City Hall computer rack is also on wheels.
• The fiber-optic backbone system varies throughout the buildings and, in some cases, has bandwidth limitations at 1 GB.
• Equipment racks and cabinets are not properly fastened to floors and walls. • Equipment racks and cabinets are not grounded.
• Communications wiring rooms do not have sufficient cooling, power, and/or emergency backup equipment.
• As-built record documentation related to the horizontal and backbone communications system does not exist.
• Computer rooms and tele/data closets have keyed entry systems.  In some cases, non-IT staff have access to these rooms.  Keyed entry systems do not provide for audit logs of entry as required by CJIS and HIPPA.

Recommendations
• Provide a suitable patch cord management system at equipment racks and/or cabinets in all facilities.
• Develop and issue an RFP to upgrade deficient structured cabling and electrical grounding systems at Police and Public Works.
• Secure the computer racks to the structure for earthquake mitigation. • Upgrade to a digital proximity ID-based door access control system.

Benefits
• Can reduce mistakes and accidental termination of connectivity. • Reduces troubleshooting time, increasing uptime and system availability.

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12. Single Sign-On
Background
Single Sign-On is an authentication scheme that allows a user to log in with a single ID and password to any of
several related yet independent applications. True single sign-on allows users to log in once and access services without re-entering authentication factors.

Many enterprise applications integrate with Active Directory, allowing users to sign on to Active Directory and access additional applications. Many other applications do not integrate with Active Directory, forcing users to sign on to each application individually. This causes users to track and change multiple user IDs and passwords.

Findings and Observations
• Some City applications integrate with Active Directory; some do not.  The applications that do not integrate with Active Directory cause users to maintain a separate user ID and password for each system.
• It is advantageous to use Active Directory integration when available.  Single sign-on reduces the number of individual user ID/password combinations staff must remember.
• Upcoming CJIS (Criminal Justice Information System) regulations will be expanded, requiring Multi-Factor Authentication (MFA) even when in a secure facility.  Single sign-on can reduce the amount of times a user must utilize MFA. • Single sign-on capabilities exist through Microsoft Azure. • The IT function has recommended utilizing a Security Assertion Markup Language (SAML) standard for town cloud-based applications.
• SAML will allow third-party cloud applications to integrate with Active Directory, providing for Single Sign-on to the application.

Recommendations
• Inventory major applications to determine which integrate with Active Directory. • Continue to implement Active Directory integration where available. • Consider the implementation of a single sign-on solution for those major applications that do not integrate with Active Directory.
• Formalize the recommendation of SAML capabilities in cloud-based applications. • Determine if current application vendors’ cloud-based solutions support SAML. • Include SAML requirements in future application system selections. • Implement a password manager application for staff.

Benefits
• Improved functionality and security
• Reduced application administration
• Reduced password management
• Reduced time spent logging into applications
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13. Fiber Capacity Planning Study (Optional)
Background
The need for fiber-optic cabling to support agency inter-site bandwidth needs, Internet of Things connectivity, or municipal wireless has increased dramatically. Many agencies are incorporating fiber optic pathway planning into upcoming public works projects and adding additional capacity to support the local business community or residents’ broadband needs.

Federal funding is available through the National Telecommunications and Information Administration for public broadband initiatives where the private sector cannot or will not meet minimum bandwidth requirements. The priority for funding is to provide broadband to unserved areas (those below 25/3 Mbps), followed by underserved areas (those below 100/20 Mbps), and then serve community anchor institutions (1/1 Gbps).

Findings and Observations
• City Hall and Police Department are interconnected using private fiber. • Community Center and Public Works are connected to City Hall through AT&T fiber-based WAN connections.
• At one time, the Community Center and Public Works were also interconnected using private fiber.
 We have been told that the fiber-optic cable to these locations exists, but for some unknown reason, the connections are not functioning.
• The Library and other small sites are connected to the City through an Internet-based pointto-point virtual private network (VPN). • Software Defined Networks (SDWAN) provide a primary connection and a secondary cellular failover connection.
 Software Defined Network failover where 5G cellular service is available provides sufficient bandwidth for ongoing operations.

Recommendations
• Assess existing fiber-optic network connections and repair them as necessary. • Assess connectivity alternatives to add the Library to the City MAN and procure using best practices.
• Leverage increased MAN speeds to consolidate servers to the data center.  Library CENIC connectivity for patron Internet access should remain at the Library. • Move to a Software Defined Network WAN using CALNet and 5G cellular SDWAN devices.  Connect all major sites using SDWAN technology until fiber optic connectivity is available.
 Utilize the Library to City Hall path as a backup to Library Internet.

Benefits
• Development of a Fiber Optic WAN Strategy and Sustainable Plan. • Timely access to information for serving emergency operations, residents, and public • Reliability, dependability, and consistency of network communication Internet connectivity PGCC 5-1-24

HA Assessment - Budget Plan
FY 2025-26 FY 2026-27
Low High Enterprise Grade Utility Grade Enterprise Grade Utility Grade Enterprise Grade Utility Grade Enterprise Grade Utility Grade Enterprise Grade Utility Grade 1 Internet Bandwidth
Add secondary internet connection to increase uptime. Complete High Availability firewall implementation.

H Ongoing Cost Ongoing Cost $43,500 $21,000 $21,000 $21,000 $21,000 1a StarLink for Tertiary Citywide Internet Tertiary internet connection at City Hall & PD. H Ongoing Cost Ongoing Cost $11,700 $11,700 $11,700 $11,700 $11,700 1b High Availability Firewalls at Library Tertiary internet connection at Library H Ongoing Cost Ongoing Cost $49,100 $25,200 $25,200 $25,200 $25,200 2 Council Chambers Audiovisual Improvements
Move dais switching equipment to A/V room. HVAC for A/V room. Improved power distribution.

H $25,000 $50,000 $97,000 $15,000
2a Failover A/V S
ystem Backup A/V equipment and rack H $125,000 $200,000 $172,000 3 Backups
Expand backups to include cloud based and Office 365. Includes cloudbased restoration.

H Ongoing Cost Ongoing Cost $45,600 $33,600 $33,600 $33,600 $33,600 4 Network Upgrade
Build in additional redundancy at City Hall and Police Department computer rooms. Core switch redundancy City Hall, Police, Library, Council Chambers A/V H $25,000 $50,000 $62,000 $40,000
4a Council Chambers Switch Redundancy Includes redundant connection to City Hall computer room H $15,000 $25,000 $17,900 5 VMware Upgrade and Server Refresh
Implement resilient server configurations at City Hall in current budget year. Police Department to Microsoft Azure next budget year.

H Ongoing Cost Ongoing Cost $71,000 $45,000 $18,000 $18,000 5a Replication City Hall VMware at Police
Replicate City Hall VMware cluster at Police. Requires additional rack, power.

H $125,000 $175,000 $156,000
6 Disaster Recovery/Incident Response Planning
Develop a plan to document malware/ransomware incident response. Disaster recovery plan for application systems restoration.

M $15,000 $25,000 $15,000 $15,000
7 Computer Equipment Replacement Planning
Scheduled replacement of infrastructure equipment to proactively eliminate end-of-life devices.

H $51,000 $51,000 $35,000 $35,000
8 Network Management Tools
Implement network management tools to provide automated alerts in the event of an issue.

H $35,000 $50,000 $42,000 $15,000 $15,000
9 Computer Room Power and Power Distribution
Add second electronic circuit in City Hall, Police Department, Library and Council Chambers A/V computer rooms.

H $25,000 $50,000 $40,000 $25,000
9a Secondary Power at Council Chambers A/V H $10,000 $25,000 $25,000 10 VoIP Improvements
Assess and implement backup analog connections in phone system controllers.

H Ongoing Cost Ongoing Cost $5,000 $6,000 $6,000 $6,000 $6,000 11 Structured Connectivity System
Upgrades to cabling system to improve ease of troubleshooting and reduce risk of failure.

H $15,000 $25,000 $25,000
12 Single Sign-On Long term project to reduce separate application sign-ons M $25,000 $50,000 $37,600
13 Fiber Capacity Planning Study (Optional)
Study to determine feasibility of fiber optic based connections to City facilities.

M $25,000 $40,000 $40,000
Recommended Project Subtotal $238,800 $49,100 $235,300 $396,100 $317,900 $25,200 $245,300 $25,200 $165,300 $25,200 Enterprise Grade Implementation $1,202,600 Utilit
y Grade Implementation (additional) $520,800
Grand Total $1,723,400
Implementation Project Management (Optional)
Provide implementation project management and procurement assistance.

H $5,000 $15,000 $9,750 $19,500 $19,500 $16,400
Project Management Subtotal $65,150
FY 2024-25 FY 2027-28 FY 2028-29
Initiative
No. Technology Initiatives Comments
Priority Budget Range
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City of Pacific Grove
High Availability Assessment
Presented by
Tom Jakobsen, Senior Partner, ClientFirst Technology Consulting PGCC 5-1-24

Introduction
Who We Are
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Tom has over 40 years of experience in the information technology arena.

He serves as an IT Strategic Advisor for several agencies and focuses on IT management, infrastructure, and cybersecurity-related issues in local government.
• Specialties include:
• IT Operations Management
• IT Staffing
• Cybersecurity
• Disaster Recovery
• Project Management
• Assessments, Strategy, and Planning
• Contract and Interim CIO/IT Management
Tom Jakobsen
Partner, IT Support and Infrastructure Practice Leader, ClientFirst 3 PGCC 5-1-24

4 ClientFirst California Clients
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Scope and Methodology
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• Assess Pacific Grove’s IT infrastructure.
• Focus on core systems resiliency.
• Provide recommendations to increase the availability of technology services. Two levels:
• Enterprise-grade availability
• Downtime approximately one hour per year
• Utility-grade availability
• Downtime approximately five minutes per year
• Areas of Focus:
• Police Department
• Council Chambers Audio Visual
• Library
• City Hall systems
Project Scope
P r o p r i e t a r y – N o t f o r R e d i s t r i b u t i o n © 2 0 2 3 C l i e n t F i r s t C o n s u l t i n g G r o u p , L L C . A l l r i g h t s r e s e r v e d . 6 PGCC 5-1-24

• Review IT documentation
• Interview IT staff:
• Review recent downtime events
• Discuss initial ideas for improvement
• Evaluate all components from the electrical outlet to the internet • Interview departments to gather requirements
• Draft detailed report and budget
• Workshop results with IT
• Prepare summary presentation and deliver
Methodology
7 PGCC 5-1-24

Key Findings
Critical Needs
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• IT Staff working hard to improve infrastructure
• Busy just keeping the wheels on
• Best Practice redundancies not in place
• From power plug to the internet
• Several projects started but not quite finished
• Third-party assistance necessary to implement report
recommendations
• Subject-Matter Expertise
• Project Management
• Budget includes third-party assistance and optional
project management
Key Findings
9 PGCC 5-1-24

• Limited Internet fiber transit points on the
peninsula
• Add StarLink backup for City Hall, PD, and
Library
• Staff complaints of internet slowness
• Upgrade internet speeds at City Hall and
Police
• City Hall and Police internet recommended to
be the same speed
• Internet connectivity lacks full redundancy
• Complete implementation if high-availability
firewall and core switch pairs
Key Findings - Internet
Why important?
1) Most frequent failure point
2) Need access to cloud
services
10 PGCC 5-1-24

• Council Chambers A/V Issues:
• Equipment reliability
• Recommend separate HVAC for A/V room
• Review power distribution to validate UPS utilization • Noisy switch under Clerks desk
• Re-cable Councilmember displays directly to A/V room
• Internet slowness reported
• Increase internet speeds
• For utility grade redundancy, implement:
• Redundant network switches and cabling
• Alternate Failover A/V equipment
Key Findings – Council Chambers A/V
Why important?
1) Broadcasts are key to
transparency
2) Equipment is complicated.

Difficult to troubleshoot.
11 PGCC 5-1-24

• Expand backups to include all City data
• Cloud-based services (Azure)
• GIS
• Office 365
• Complete implementation of cloud backup and restoration solution • Create Disaster Recovery and Incident Response plans
Key Findings – Backups and Planning
Why important?
1) Backups are a legal
requirement
2) Ultimate anti-malware defense
12 PGCC 5-1-24

• Network and Servers lack redundancy
• Implement redundant core switches
• City Hall, Police, and Library
• Complete build-out of resilient server infrastructure • Third server for City Hall cluster
• PD requires a second server for failover
• Move to Best Practice server/storage area network
connectivity
• For utility grade redundancy:
• Replicate City Hall VMware cluster to PD
• Replicate PD file servers to the cloud
Key Findings – Network and Servers
Why important?
1) Network and server failures are
Top 5 in probability
13 PGCC 5-1-24

Why important?
1) Part of ultimate antimalware defense
Best practice Disaster Recovery with
Cloud Backups & O365
City Hall
Computer Room
Police Computer
Room
Backups
Cloud &
O365
Email
Archive /
Continuity
Fiber
14 PGCC 5-1-24

• Computer room improvement necessary
• Police computer room requires re-cabling
• City Hall computer room has a short list of
improvements
• Public Works tele/data closet needs
environmental controls
• Library computer room move complete
Key Findings – Computer Room
Why important?
1) Speeds troubleshooting,
ultimately reducing
downtime.
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• A Security Event and Incident Management (SEIM) tool has been implemented
• Currently limited to Microsoft Azure logs
• Network Management, Alert, and Alarm software are not in place • IT posture is reactive, waiting for notification from user community of an issue • Recommend utilizing a third party to:
• Expand SEIM tool implementation
• Implement a network management tool
Key Findings – Network Management
Why important?
1) Provides early warnings
2) Key to pro-active issue
resolution
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• Power distribution limited
• Single electrical circuit available in computer
rooms
• Various UPS systems in place
• Must be inventoried and expanded
• Some Power Distribution Unit (PDU)
improvements are necessary
Key Findings – Power Distribution
Why important?
1) Power outages are a top 5
issue (probably #2).
17 PGCC 5-1-24

• The phone system implementation lacked appropriate fail-over capabilities
• Staff have identified specific issues
• Staff is working to enhance fail-over capabilities
• No additional equipment is required
• The fire destroyed the phone controller at Public Works • Staff feel analog “red phones” will be sufficient as backup Key Findings – Phone System
Why important?
1) Must be able to contact
emergency responders.
18 PGCC 5-1-24

Budgets
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High Availability – Implementation Budget
FY 2025-26 FY 2026-27
Low High Enterprise
Grade Utility Grade Enterprise Grade Utility Grade Enterprise Grade Utility Grade Enterprise Grade Utility Grade Enterprise Grade Utility Grade 1 Internet Bandwidth
Add secondary internet connection to
increase uptime. Complete High
Availability firewall implementation.

H
Ongoing
Cost
Ongoing
Cost $43,500 $21,000 $21,000 $21,000 $21,000
1a StarLink for Tertiary Citywide Internet Tertiary internet connection at City Hall & PD. H
Ongoing
Cost
Ongoing
Cost $11,700 $11,700 $11,700 $11,700 $11,700
1b High Availability Firewalls at Library Tertiary internet connection at Library H Ongoing
Cost
Ongoing
Cost $49,100 $25,200 $25,200 $25,200 $25,200
2 Council Chambers Audiovisual Improvements
Move dais switching equipment to A/V
room. HVAC for A/V room. Improved
power distribution.

H $25,000 $50,000 $97,000 $15,000
2a Failover A/V System Backup A/V equipment and rack H $125,000 $200,000 $172,000 3 Backups
Expand backups to include cloud
based and Office 365. Includes cloudbased restoration.H Ongoing
Cost
Ongoing
Cost $45,600 $33,600 $33,600 $33,600 $33,600
4 Network Upgrade
Build in additional redundancy at City
Hall and Police Department computer
rooms. Core switch redundancy City
Hall, Police, Library, Council
Chambers A/V
H $25,000 $50,000 $62,000 $40,000
4a Council Chambers Switch Redundancy Includes redundant connection to City Hall computer room H $15,000 $25,000 $17,900
5 VMware Upgrade and Server Refresh
Implement resilient server
configurations at City Hall in current
budget year. Police Department to
Microsoft Azure next budget year.

H
Ongoing
Cost
Ongoing
Cost $71,000 $45,000 $18,000 $18,000
5a Replication City Hall VMware at Police
Replicate City Hall VMware cluster at
Police. Requires additional rack,
power.

H $125,000 $175,000 $156,000
6 Disaster Recovery/Incident Response Planning
Develop a plan to document
malware/ransomware incident
response. Disaster recovery plan for
application systems restoration.

M $15,000 $25,000 $15,000 $15,000
7 Computer Equipment Replacement Planning
Scheduled replacement of
infrastructure equipment to pro-actively
eliminate end-of-life devices.

H $51,000 $51,000 $35,000 $35,000
8 Network Management Tools
Implement network management tools
to provide automated alerts in the
event of an issue.

H $35,000 $50,000 $42,000 $15,000 $15,000
9 Computer Room Power and Power Distribution
Add second electronic circuit in City
Hall, Police Department, Library and
Council Chambers A/V computer
rooms.

H $25,000 $50,000 $40,000 $25,000
9a Secondary Power at Council Chambers A/V H $10,000 $25,000 $25,000 10 VoIP Improvements
Assess and implement backup analog
connections in phone system
controllers.

H
Ongoing
Cost
Ongoing
Cost $5,000 $6,000 $6,000 $6,000 $6,000
11 Structured Connectivity System
Upgrades to cabling system to improve
ease of troubleshooting and reduce
risk of failure.

H $15,000 $25,000 $25,000
12 Single Sign-On Long term project to reduce separate
application sign-ons M $25,000 $50,000 $37,600
13 Fiber Capacity Planning Study (Optional)
Study to determine feasibility of fiber
optic based connections to City
facilities.

M $25,000 $40,000 $40,000
Recommended Project Subtotal $238,800 $49,100 $235,300 $396,100 $317,900 $25,200 $245,300 $25,200 $165,300 $25,200 Enterprise Grade Implementation $1,202,600 Utility Grade Implementation (additional) $520,800 Grand Total $1,723,400
Implementation Project Management (Optional)
Provide implementation project
management and procurement
assistance.

H $5,000 $15,000 $9,750 $19,500 $19,500 $16,400
Project Management Subtotal $65,150
FY 2024-25 FY 2027-28 FY 2028-29 Initiative No. Technology Initiatives Comments Priority Budget Range PGCC 5-1-24

Questions and Answers
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Agenda No. 13 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Robert Perrault, Interim City Manager
MEETING DATE: May 01, 2024
SUBJECT: Consider Three (3) Planning Commission Resolutions of Intention to Amend Chapter 23 of the Pacific Grove Municipal Code
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Do not move forward with the proposed Zoning Code text amendments at this time due to other priorities.

DISCUSSION
At their December 14, 2023 and January 11, 2024 public meetings, the Planning Commission voted to forward three Resolutions of Intention (ROI) to amend sections of Chapter 23 (Zoning) of the Pacific Grove Municipal Code (PGMC). The three ROI's pertain to the following topical areas:

1. Hotel Parking Requirements;
Story Poles;
Clarification of Various Sections including Interpretations; Definitions; R-H District Special Regulations; Height Limits for Fences; Types of Review, Application and Roles of Review Authorities; Historic Resources Committee/ Notice of Hearing for Architectural Permits; Accessory Buildings and Structures; Counter Review and Determinations; and Staff Approvals.

The ROI's seek approval to allocate Staff and City Attorney resources to assist the Planning Commission with the proposed Zoning Code text amendments. If directed, Staff and City Attorney work would include review of proposed edits for consistency with other PGMC provisions, consistency with other City policy and regulatory documents, consistency with applicable Federal, State and Local laws and regulations, environmental analysis in conformance with the California Environmental Quality Act (CEQA), practical application and enforcement, and preparation of materials for public hearings.

The Zoning Code is the tool for implementation of the City's adopted General Plan. The City is currently working on updates to the Housing Element, Land Use Element, and Health and Safety Element of the General Plan. Zoning code amendments are also proposed in order to implement the updated General Plan Elements. This work is underway and Staff anticipates completion within the first half of 2025.

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Subsequent to those General Plan and Zoning amendments noted above, the City is considering a second phase of General Plan amendments to update the remaining Elements. Zoning code amendments would also be needed at that time in order to align with and implement the updated General Plan.

In a cursory review of the proposed Zoning Code text amendments, Staff suggests the following considerations be taken into account:

Hotel Parking
The proposed change to require one garage parking space per room could potentially create new non-conforming conditions for existing and approved, but not yet constructed, hotels within the City. This could have subsequent implications pertaining to property insurance, future land valuation and transactions, and application of additional zoning code regulations pertaining to Non-Conforming Uses and Buildings (Chapter 23.68 PGMC).

The existing code language allows for flexibility to apply parking standards with consideration to individual hotel development proposals. Hotel projects often include parking programs such as valet, off-site parking, shuttle services, and concierge services including rideshare programs.

Requiring a more stringent parking ratio would remove flexibility in considering project-specific parking study recommendations and creative parking solutions.

Changes to commercial parking requirements are generally considered as part of an overall policy discussion and with the assistance of a Parking Study (analysis and recommendations).

Story Poles
Staff currently relies upon the City's adopted Story Pole Policy (Council Resolution No. 09-028) and subsequent Advisory Committee memorandum, dated February 19, 2020.

The City Manager's Story Pole Advisory Committee, convened in 2020, determined that "staking requirements should not be codified, but rather should remain as enforceable requirements".

Addition of Story Pole requirements to the City's Municipal Code would require CEQA analysis.

It could also require amendments to the City's LCP.

Clarification of Various Sections
The proposed changes in definitions could create conflicts with other sections of the Code and may inadvertently change current City policies. For instance, the proposed text changes to the definitions of "Grade" and "Height" would require a property owner to commission a property survey in order to satisfy the definition as part of any proposed project. The City does not currently require property surveys as part of permit submittal packages. This would be a policy change resulting in additional cost burden to applicants.

The proposed text changes could potentially create new non-conforming conditions. For instance, the proposed text change to 23.64.135 Prohibited Fences, includes chainlink fencing as prohibited where it is not currently.

The proposed changes appear to remove some authority currently assigned to the City Manager and Staff.

Because there is no time-sensitive issue being addressed by the proposed Zoning Code text amendments and no alignment with the City Council's established goals and priorities, Staff does not recommend moving forward with the proposals at this time. To do so would redirect Staff time away from other priority areas such as the Housing Element Update, LCP Amendments for Coastal Hazards PGCC 5-1-24

(grant-funded/time-sensitive) and meeting state mandated timelines for permit processing. If Council wishes to grant a pathway forward for the proposed work, Staff would suggest the inclusion of the proposed Zoning Code text amendments in a future workplan associated with General Plan and Zoning Code Updates (Phase 2, after completion of the Housing Element Update).

OPTIONS
Do not move forward with the proposed Zoning Code text amendments at this time. (Staff recommendation)

1. Direct Staff to include the proposed Zoning Code text amendments as part of a future workplan in conjunction with the second phase of updates to the City's General Plan.

2. Direct Staff and the City Attorney to assist the Planning Commission with the preparation, analysis, review and public hearing consideration of the proposed Zoning Code text amendments.

3. 4. Provide other direction.

FINANCIAL IMPACT:

Should the Council wish to direct Staff and the City Attorney to assist the Planning Commission with the proposed Zoning Code text amendments, the financial impact would be borne by the City and would include Staff time, City Attorney time, required CEQA analysis, and final codification.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
PC Resolution No. 2023-01 Hotel Parking
PC Resolution No. 2024-01 Story Poles
PC Resolution No. 2024-02 Clarifying Various Existing Provisions Planning Commission agenda reports and materials
Story Pole Advisory Committee Memorandum, dated February 19, 2020 CC Resolution No. 09-028 Noticing and Story Poles
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Agenda No.8 D

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: HONORABLE CHAIR AND MEMBERS OF THE PLANNING COMMISSION FROM: Steven Lilley, Planning Commission Chair

MEETING
DATE: 12/14/2023
SUBJECT: Adoption of a Resolution of Intention to Amend Chapter 23.64.190(d) of the Pacific Grove Municipal Code (PGMC) related to Hotel Parking.

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

RECOMMENDATION
It is recommended that the Planning Commission (PC) consider 1) confirming a motion adopted on December 8, 2022, recommending changes to the municipal code related to hotel parking; 2) adopting the attached Resolution of Intention (RoI); and 3) requesting that the City manager authorize staff and legal resources necessary to assist the PC in preparing the final proposed legislative amendment for Council consideration.

DISCUSSION
Procedure for Legislative Amendments
Chapter 23.84 PGMC sets forth the procedure for legislative amendments to the general plan, Chapter 23 of the PGMC, the zoning map, the local coastal program, specific plans, or other amendments.

PGMC 23.84.020 authorizes the PC to initiate amendments through a Resolution of Intention (RoI).

Following adoption of the RoI and drafting of the proposed amendment and findings required under PGMC 23.84.060, the PC then holds a noticed public hearing on the proposed amendment and whether to recommend to the Council adoption of the amendment. The amendment and the Commission’s recommendation are then forwarded to the Council who shall approve, approve in modified form, or disapprove the proposed amendment based upon the findings in PGMC 23.84.060. For zoning code amendments, these findings require that the a) proposed amendment is consistent with the general plan and local coastal plan; b) the proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city; and c) there is internal consistency with other applicable provisions of the code regulations.

In general, planning and legal staff support is recommended to assist the PC in preparation of the proposed legislative amendments. In particular, the City Attorney plays a crucial role in assisting in the drafting of all ordinances, including zoning amendments. Legal oversight and review of the proposed amendments ensures that proposed zoning amendments do not conflict with the City Code, State Constitution, and laws of California and the United States; appropriate findings are made;

internal code consistency is achieved; and that appropriate noticing and public hearings are conducted.

Further, the attorney confirms that the appropriate level of environmental review is determined and that CEQA compliance is achieved.

Depending on the complexity and/or number of proposed amendments by the PC, it is important to confirm that there are budgeted funds and adequate staff resources available to support the work of the PC. The City’s Boards, Committees, and Commissions Handbook provides that staff may accept assignments from a Committee given City management or Department Head concurrence.

Accordingly, it is recommended that the PC forward a request to City Manager, concurrent with the RoI for each proposed amendment, requesting legal and staff resources necessary to finalize and process the amendment proposed to be considered by the City Council.

Prior Consideration of this matter by the PC
At two previous meetings in 2022, a member of the community proposed that the Planning Commission consider recommending to the City Council an amendment to PGMC Chapter 23.64.190 regarding hotel parking. That amendment would require not less than one garage space for each guest room in any hotel.

Chapter 23.64.190 Off-Street Parking and Storage addresses space for the parking of automobiles off the street in any district. Chapter 23.64.190(d) provides that “Not less than one garage space for each four guest rooms in any hotel and not less than one parking space for each unit in a motel.” Other subsections of Chapter 23.64.190 merit mention. Chapter 23.64.190(g) stipulates, “Parking space required for other uses allowed in any district and not set forth above shall be determined by the planning commission and set forth as a condition to the granting of the use permit for such use.” On December 8, 2022, after consideration of this matter, the Planning Commission passed a motion, “to direct staff to prepare a resolution of intention to initiate an amendment to the PGMC consistent with the Commission's direction."
At the November 9, 2023, Planning Commission meeting, staff stated that legal review would be requested by Thanksgiving (November 23). On November 12, 2023, with subsequent confirmation on December 2, 2023, Chair Lilley requested staff place the Hotel Parking Requirements matter the December 14, 2023, agenda, so that the Planning Commission could review the matter and determine how best to proceed. Accordingly, it is recommended that the Planning Commission (PC) consider 1) confirming a motion adopted on December 8, 2022, recommending changes to the municipal code related to hotel parking; 2) adopting the attached Resolution of Intention (RoI); and 3) requesting that the City manager authorize staff and legal resources necessary to assist the commission prepare the final proposed legislative amendment for Council consideration.

Tourism is a leading industry for Monterey Peninsula communities, including Pacific Grove. With the COVID-19 State of Emergency behind us, people are traveling again and utilizing services and facilities here. A new downtown hotel is under construction and a second one has been approved by the City Council. This will result in increased traffic and parking needs in the community.

The Planning Commission has expressed an interest in considering whether to recommend an increase in the ratio of garage parking spaces to guest rooms in future hotel development, in order to minimize parking impacts on nearby neighborhoods. Currently, three neighboring cities, Carmel, Monterey, and Marina already have ordinances that require one parking space for each hotel guest room. Typically, hotels in those areas have parking facilities on site or nearby.

There is the point of view that hotel parking need not be at a ratio of one garage parking space to one guest room, because some guests ride by Uber or Lyft to the hotel. However, no one has provided a study of the frequency of such ride volume to any overnight facility in Pacific Grove.

Some also may point out that the ratio of one garage space to one guest room ignores additional parking needs for hotel staff, on-site restaurant use, or convention meeting facilities attendance. Again, Chapter

23.64.190(g), gives the Planning Commission the flexibility and authority to require parking spaces for other uses when not set forth in the municipal code and as a condition for the granting of use permits.

Therefore, this proposal changes two words in the first sentence of Chapter 23.64.190(d). It would read, “Not less than one garage space for each guest room in any hotel and not less than one parking space for each unit in a motel.” (See Attached Amendment to Chapter 23.64.190 PGMC). Note that this proposal ensures that requirements for motel parking remain unchanged, as would provisions of Chapter

23.64.190(g) and 23.64.190(i). In addition, no project approved before the date of adoption of this proposed amendment by the City Council would be subject to the ordinance change.

The Planning Commission’s adopted motion requesting a resolution of intention one year ago would have advised the City Council that a proposed ordinance change was coming. Therefore, it is recommended that to mitigate further delay in this process, the PC should move forward with the recommended action.

Attachments
Draft Amendments Hotel Parking
RoI Hotel Parking

1 ATTACHED AMENDMENT TO CHAPTER 23.64.190 PACIFIC GROVE MUNICIPAL CODE (PGMC):

Chapter 23.64.190 PGMC is annotated with a change removing the word “four” before the word “guest” and the letter “s” at end of word “room” on the first line of Chapter 23.64.190(d). The word and letter to be removed are shown in bold red with strikethrough on the following page.

ATTACHED AMENDMENT
CHAPTER 23.64.190 PGMC WITH ANNOTATED CHANGE TO 23.64.190(d)

23.64.190 Off-street parking, storage.

Storage or parking space for the parking of automobiles off the street shall be provided in any district as follows:
(a) Not less than two garage or carport spaces for each single-family dwelling; provided, however, in cases of single-family dwellings on lots of 5,000 square feet or less, on which the living space floor area is 1,000 square feet or less, and in which there are less than three bedrooms, one garage or carport shall be required and tandem parking shall be allowed; (b) For each family unit in a duplex, apartment house or dwelling group, parking spaces may be tandem and shall be provided as follows:
(1) One and one-half spaces for each unit having less than two bedrooms; and (2) Two spaces for all other units;
(3) One space for each unit shall be in a garage or carport; (c) Not less than one garage space for each two guest rooms in any rooming house; (d) Not less than one garage space for each four guest rooms in any hotel and not less than one parking space for each unit in a motel. The planning commission may require additional parking at a ratio of one space for each 50 square feet of accessory dining area within the R3-M district; (e) Not less than one parking space for each 300 square feet of floor area in each professional office building permitted, except that for office buildings located in areas assessed for the payment of off-street parking lots, parking spaces shall not be required as set forth in subsection (g) of this section;
(f) Not less than one parking space for each six seats provided for visitors to churches, community centers, social halls, lodges, and clubs and not less than one parking space for each six beds and one parking space for each employee on the shift with the maximum number of employees in any rest home, nursing home, convalescent home or hospital; (g) Parking space required for other uses allowed in any district and not set forth above shall be determined by the planning commission and set forth as a condition to the granting of the use permit for such use;
(h) The review authority shall be authorized to approve compact parking spaces under the following conditions:
(1) Where a minimum of eight standard spaces are provided for commercial or industrial parking lots, 50 percent of parking in excess of the eight may be compact size; and (2) Fifty percent of the parking provided in excess of that required for any R district use may be compact size;