Agenda packet — Pacific Grove City Council, April 2, 2025 (part 1 of 3)

CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, April 2, 2025, 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. Public comments received through this email address by noon on the day of the meeting will be posted with the corresponding agenda item.

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
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PLEDGE OF ALLEGIANCE: Councilmember McDonnell

1. APPROVAL OF AGENDA

2. PRESENTATIONS
A. Mayor's Proclamation: Methodist Church PG 7
Reference: Nick Smith, Mayor
Recommended Action: Receive presentation.

CEQA:

B. See Monterey Updates to City of Pacific Grove PG 9
Reference: Lindsey Stevens, VP Marketing- See Monterey
Recommended Action: Receive presentation.

CEQA:

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.

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

6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Resolution Amending Council Policy 000-19 for Records Retention and Records PG 24 Management
Reference: Sandra Kandell, City Clerk
Recommended Action:

Approve a resolution amending Council Policy No. 000-19 to update the City records retention and records management schedule and reflect revisions.

1. 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

7. ORDINANCES
Items pulled from this section will be placed under 11. Public Hearings A. Second Reading and Adoption of an Ordinance Establishing District-Based Elections for Council Members
Reference: Matt Mogensen, City Manager PG 71
Recommended Action: Hold second reading and adopt an Ordinance Establishing District-Based Elections for Council Members.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. David Avenue Street Rehabilitation – Award of Contract and Budget Modification PG 82 Reference: Daniel Gho, Public Works Director/Deputy City Manager Recommended Action: Hold second reading and adopt an ordinance amending the Operating and Capital Projects Budget for FY24/25.

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

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Appointments to Boards, Commissions, and Committees PG 87 Reference: Nick Smith, Mayor
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Recommended Action: Approve appointments to Boards, Commissions, Committees as follows:

Architectural Review Board: Martin Sublett
Library Board: Meganne Yeoman
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. 2025 Ford Police Interceptor Vehicle Purchase PG 91
Reference: Brian Anderson, Commander
Recommended Action: Authorize the City Manager to award a purchase order with Cypress Coast Ford of Seaside for the purchase of (1) 2025 Ford Police Interceptor Vehicle in an amount not to exceed $64,927.28.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Direction to use WorkPlan Focus Areas, Policy Statements, and Goals for the Development of the FY 25-26 / 26-27 Budget PG 93
Reference: Matthew Mogensen, City Manager
Recommended Action: It is recommended that the Council direct the use of the FY25-26/26-27 WorkPlan Focus Areas, Policy Statements and Goals in the Development of the Budget.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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D. Endorse the proposed Appointment of Council Member Cynthia Garfield as City Council Liaison to the Friends of Chautauqua Hall, a committee of the Heritage Society of Pacific Grove
Reference: Nick Smith, Mayor PG 96
Recommended Action: Endorse the proposed Appointment of Council Member Cynthia Garfield as City Council Liaison to the Friends of Chautauqua Hall, a committee of the Heritage Society of Pacific Grove
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

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

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. Introduction of an Ordinance Amending the City’s 2024-25 Budget, removing the allocation of one Program Manager Classification in the City Manager’s Office and replacing with one Deputy City Manager Classification in the City Manager’s Office Reference: Matthew Mogensen, City Manager PG 97
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 a first reading of an ordinance to amend the City’s 2024-25 Budget, removing the allocation of one Program Manager classification in the City Manager’s Office and adding one Deputy City Manager classification to the allocation plan in the City Manager’s Office to be funded in 2024-25 with current budget savings.

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. Annual Financial Reports and Audit PG 102
Reference: Fred Marsh, Administrative Services Director PGCC 4-2-25

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Recommended Action: Receive the reports noted in this report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. City Council Review and Discussion of the Legacy Parklet Encroachment Permits and a Motion to Waive Fees for Sidewalk Dining Permits PG 367 Reference: Matthew Mogensen, City Manager
Recommended Action:

1. Review the City’s legacy Parklet Encroachment Permits

2. Provide staff direction regarding the sunsetting of the legacy Encroachment Permits Motion to waive permit fees for all restaurants that obtain a Sidewalk Dining Permit prior to July 1, 2025

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

13. NEW BUSINESS

14. FULL PRESENTATIONS

15. CLOSED SESSION

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

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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: Staphany Arriola, Management Analyst (Confidential) MEETING DATE: April 02, 2025
SUBJECT: Mayor's Proclamation: Methodist Church
CEQA:

RECOMMENDATION
Receive presentation.

Attachments
Proclamation
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Agenda No. 2 B

RECOMMENDATION
Receive presentation.

Attachments
Presentation
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Monterey County Tourism
Pacific Grove
See Monterey 4.2.25
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SEE MONTEREY
Destination Marketing Organization
VISION
A thriving tourism economy
that enriches Monterey County's
economic vitality and quality of
life.

MISSION
To generate community
prosperity for Monterey County
through the responsible
promotion and growth of the
tourism economy
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FY2024-25 Mid-Year Summary (July-December)
Leveraging the City of Pacific Grove's YTD investment of $80,750 with the combined jurisdiction and hotel investments yielded a tremendous ROI for our entire community. This report showcases how this investment generated over $653K in group business and contributed to reaching over 5.3 million travel-ready households and more than 400,000 ad-influenced trips to Monterey County.

City of Pacific Grove
Business
Development ROI
City of Pacific
Grove Marketing
Communications
ROI
City of Pacific Grove
Business
Membership
See Monterey
website & visitor
app results
- Economic impact: $653,599.35
- Leads: 41
Potential room nights: 12,421
Potential new business: 19 Leads
5,802 Total Room Nights
- Booked groups: 3
- Booked room nights: 645
- Partner-site conversion: 18.24k clicks
from SeeMonterey.com to a local business
- Social engagements: 21,000
engagements (likes, comments, shares,
link clicks, and video views)
- Earned media impressions: 197.3 Million
- PR ad equivalency: $269,922
- Total members:81 business members
- Events promoted: 39 events published
and promoted
- Total web sessions: 18,800 sessions
- New downloads of app: 1,867
downloads
- Total App users: 1,415 Monthly
Average Users
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Marketing Communications
Public
Relations
Paid Campaigns Social Media
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Business Development
Client Engagement & Group Sales
• SITE (Northern CA) Meeting Planners
bike riding through Pacific Grove as part
of destination immersion.
• Pacific Grove promoted at IMEX America
with visibility to 5,758 meeting and
event planners.
• YTD 7 booked groups from across
California, Northeast, and Southwest
regions
• Travelers for Conference spend 158%
more than leisure
Over $2.4M in
Economic Impact
driven through booked
group business YTD
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MCT 2030
What’s Next?
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Monterey County Tourism 2030 Roadmap
Maximizing Tourism Economy Potential
• Intended to sharpen focus over next
half decade
• Includes new Resident Sentiment
Study & Visitor Profile Study
• Considers major challenges and
opportunities in the coming years
• Relies on community-wide
collaboration, planning and
implementation
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CHALLENGES
Economic Uncertainty
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THE CHALLENGE
Competitive Disadvantage
Tourism
Competition
is Fierce
Monterey County is
outspent per room vs. the
comp set.

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THE OPPORTUNITY
1,000 New Hotel Rooms by 2030
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Marketing Reach
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MCT 2030
Key Imperatives
• Raise the tide for all – grow market
share
• Attract visitors from further away –
tend to stay longer and spend more
• Tourism dispersion – spread travelers
throughout the entire county
• Transportation Collaboration – with

MRY, MST, TAMC
• Evolve Events – make current events
work harder; attract new
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Responsible Travel
Billboard Campaign
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Thank you
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Agenda No. 6 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk
MEETING DATE: April 02, 2025
SUBJECT: Resolution Amending Council Policy 000-19 for Records Retention and Records Management
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve a resolution amending Council Policy No. 000-19 to update the City records retention and records management schedule and reflect revisions.

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

DISCUSSION
On January 18, 2012, the City Council approved a resolution adopting Council Policy No. 000-19 (Policy). The Policy established the City’s Records Management and Records Retention Schedule (Schedule), and clarified the legal authority to manage records and documents. Effective records management is cost-effective, improves efficiency, and reduces the City’s potential liability regarding destruction of documents.

Periodically, the City Clerk's office will conduct a review of the Records Retention Schedule and request Department Heads and key staff to review for additions or revisions. The Council reviews and approves, but may opt to provide other direction.

After some review with other cities state-wide, the City Clerk's Office has made two proposed revisions to the Legal/Legislative section to improve best practices. Proposed revisions are as follows:

Legal/Legislative
Agenda Reports (Master, Subject Packet Files) CU + 10 changed to CU + 20 Tapes, Audio/Video CU + 3 mo. changed to CU + 10 (years) Staff received additional proposed revisions to the schedule from the Police Department to the Law Enforcement section to conform to new law. The proposed revision is as follows:

Law Enforcement
Personnel Complaints/Internal Investigations with a "Sustained" finding CL + 2 changed to CL + 15 PGCC 4-2-25

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No other revisions were received.

This action does not constitute a “Project” as that term is defined under CEQA Guideline Section 15378 (b)(5), an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

OPTIONS
Provide alternative direction—the Council may choose alternative retention periods, etc.

FINANCIAL IMPACT:

There is no fiscal impact.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Reso
Redlined Policy 000-19
Redlined Retention Schedule
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1 RESOLUTION NO. 25-XXX
MODIFYING COUNCIL POLICY NO. 000-19 REGARDING THE CITY OF PACIFIC GROVE’S RECORDS RETENTION AND RECORDS MANAGEMENT POLICY

FINDINGS

1. On January 28, 2012, the City Council approved Resolution 12-003 adopting Council Policy 000-19, which established the City of Pacific Grove’s (City’s) records retention and records management policy.

2. As part of the Policy 000-19, the Council approved the City’s Records Management and Records Retention Schedule (Schedule).

3. Policy 000-19 and the Schedule clarify the City’s legal authority to manage records and documents entrusted to its care.

4. Subsequent to adoption of Policy 000-19 and the Schedule, staff was advised of suggested revisions to the Schedule by City departments.

5. The revisions to the Schedule are necessary and appropriate.

6. This action does not constitute a “Project” as that term is defined under the California Environmental Quality Act (CEQA) Guideline Section 15378 (b)(5), as it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

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

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

2. Council Policy No. 000-19 and the attached Schedule are hereby approved as attached to this Resolution, which by this reference are incorporated as set forth in their entirety.

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 2nd day of April, 2025, by the following vote:

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2 AYES:

NOES:

ABSENT:

APPROVED:
_______________________________
NICK SMITH, Mayor
ATTEST:

DATED:________________________
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
BRIAN A. PIERIK, City Attorney
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City of Pacific Grove
Council Policy
Subject Policy Number Effective Date
Records Management and
Records Retention Schedule 000-19 January 18, 2012
Implementation
The purpose of this policy is to provide for the management of the City of Pacific Grove’s records in an efficient manner, to streamline paper flow, provide for document archiving, minimize the temporary storage constraints, and remain in compliance with the California Public Records Act and the California Government Code.

This Policy establishes the practice to be followed with respect to records retention and records management.

Definitions
 Active Records - Records that are referred to at least once a month per cubic foot of records.

Also, as a retention period for a Perpetual Record that remains “active” until some event occurs to change its status, at which time it has fulfilled its function. (See Perpetual Record)  Administrative Records - Records commonly found in all offices and used in the conduct of daily business. These are typically retained for short time periods, i.e., fewer than five years.

Examples include subject, chronological, work plans, and policy files.  Archival Records - Records with enduring value because they reflect significant historical events, document the history and development of the City, or provide valuable research data.  Damaged Records - Records that have been damaged by water, fire, and other forms of contamination during natural and man-made disasters. Dependent on the severity of the damage, records may be recovered or may need to be declared unrecoverable and destroyed.  Discovery - The pretrial disclosure of pertinent facts or documents by one or both parties to a civil action or proceeding. Anything requested during discovery must be disclosed if it exists - even non-records and records that should have been destroyed earlier. Discovery effectively freezes selected holdings until released by the opposing attorney or the court.  E-mail - The transmission of messages over communications networks. The messages can be notes entered from the keyboard or may include attachments of electronic files stored on disk.  Inactive Records - Records that are accessed an average of less than once per month per cubic foot of records, but that have not completed their full retention period. These records may be stored in a separate location from active files. Also, a Perpetual Record that has fulfilled its function. (See Perpetual Record)
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City Council Policy 000-19 Page 2 of 7
 Local Government - Government Code § 6252 provides: ‘‘‘Local Agency’ includes a county; city, whether general law or chartered; city and county; school district; municipal corporation; district; political subdivision; or any board, commission or agency thereof; other local public agency; or nonprofit entities that are legislative bodies of a local agency pursuant to subdivisions (c) and (d) of Government Code, Section 54952.”  Non-Records - Material not usually included within the definition of records or kept in the ordinary course of business, such as transitory documents, voicemail, e-mail, unofficial copies of documents kept only for convenience or reference, working papers, appointment logs, stocks of publications and blank forms, and library or museum material intended solely for reference or exhibition. Also, documents such as rough notes, calculations or drafts assembled or created and used in the preparation or analysis of other documents. NOTE: A draft that contains substantive comments from a project applicant, an applicant’s attorney, consultant or agent, should be treated as a record of comments received from that source, and the draft or portions showing the substantive comments should ordinarily be retained accordingly. (See Discovery)  Permanent Records - Records required to be kept in perpetuity, usually identified by statute or other written guidance. Examples include original minutes, ordinances, resolutions, land grant deeds, etc.
 Perpetual Records - Records retained as active files for an indefinite period of time and then stored or destroyed after some event takes place. Examples include office personnel files which are active until a person terminates employment; policy files kept until the policy is changed; contract files that are active until the contract terminates, then destroyed a fixed number of years later; current database information until it is superseded; etc.  Program Record - Record that relate to the primary function of the City in response to its daily mission. Examples include lien files, recorders files, election files, probate records, medical records, etc.
 Public Record - For purposes of the California Public Records Act, any writing containing information relating to the conduct of the public’s business prepared, owned, used, or retained by the City regardless of physical form or characteristics.  Record - A thing that constitutes an objective, lasting indication of a writing, event, or other information that is in the custody of a public officer and has been kept because it is necessary or convenient to the discharge of the public officer’s duties and was made or retained for the purpose of preserving its informational content for future reference. Substantive written communications from individuals or entities who are not City employees, officials, or contractors are ordinarily not considered records.
 Records Retention Schedule - A list of all records produced or maintained by the City and the actions taken with regards to those records. A retention schedule is the City’s legal authority to receive, create, retain, and dispose of official public records. It assists the City by PGCC 4-2-25

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City Council Policy 000-19 Page 3 of 7
documenting which records require office or temporary storage, which records have historic or research value, and which records should be destroyed because they no longer have any administrative, fiscal, historical, or legal value. In the event of litigation, courts accept a retention schedule as establishing the City’s “normal course of doing business.” The Schedule is attached hereto and incorporated herein by reference.
 Retention Period - The length of time a record must be retained to fulfill its administrative, fiscal historical and/or legal function. Then a record should be disposed of as soon as possible in accordance with an approved Records Retention Schedule.  Software - any system, program, application, instruction, or protocol designed to store, control or process data.
 Vital Record - record required for daily operations and to resume those operations after a disaster. A Vital Records program protects records from the effects of the disaster and assists in recovery from the event.

General Records Management
Official records are comprised of a collection of documentation, including legislative, historic, legal, fiscal, and administrative documents, as well as vital records. Records management entails administering various document formats such as correspondence, mail, e-mails, faxed material, historical reference, and electronic media.

Records management archiving is a conventional method of safeguarding history for the benefit of education, accessibility to research and preservation of valuable fiscal, legal and administrative information. As the records management system for the City includes a vast array of elements; it is incumbent upon each department to ensure proper safekeeping and destruction pursuant to the criteria set forth herein.

Statutory references are legal citations setting forth the retention and destruction guidelines.

These guidelines ensure that the records are maintained legally and efficiently. Records that are not appropriately maintained or improperly destroyed expose the City to potential liability.

In all instances that documentation of destruction is required, an Authorization to Destroy Obsolete Records must be completed and signed by the program manager and City Attorney.

This form serves as a permanent record, and would be utilized in any legal proceedings as evidence of proper destruction.

California Government Code Section 34090.5 provides that if a record series can be produced electronically and proper archival methods are set in place, the original may be destroyed, with the exception of those documents that are required to be kept permanently in their original format as outlined in the retention schedule.

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City Council Policy 000-19 Page 4 of 7
It is the goal of the City to move toward an electronic imaging program. Until an electronic system is in place, a concerted effort will be made to adhere to the retention schedule and to destroy all appropriate records that are being stored in various facilities throughout the City, and prepare archival material for electronic filing. Preparation of archival material will include indexing according to the City’s Filing System. Once an electronic imaging or other acceptable system has been installed, and training has been provided, all departments will manage the backlogged materials and proceed with proper archiving or destruction pursuant to the requirements in the retention schedule under the leadership of the City Clerk’s Office. This process will eliminate a large number of storage boxes and release space for other uses, as well as bring our records management program into full compliance.

In most cases, records not addressed in the attached schedule should be considered routine in nature and identified as general information under a specific record series. Retention for those files would be two years unless specific laws, decisions or opinions apply to that record series.

Transitory correspondence files, consisting of correspondence, routine transactions, memoranda, or e-mails holding no administrative, fiscal, historical, or legal value should not be filed in working files. Examples of transitory documents may be, but are not limited to transmittal letters, forms, e-mails (see section on e-mail below), requests for routine information or publications, announcements, and other documents not requiring action by the receiving office.

Documents that are not transitory in nature, not addressed in this schedule, and for which there are legal requirements or the record is essential either for legal, historical, fiscal, or administrative value, shall have a record series number and title assigned to them and added to the retention schedule. The retention schedule is not a permanently fixed document, but flexible in nature to accommodate legal, administrative, or fiscal policy changes. Contact the City Clerk for review of any requested changes.

E-mail Retention Policy
It is the City’s policy that City e-mail and e-mail systems are intended to be a medium of communication. City e-mail systems are not intended to be and may not be used for the electronic storage or maintenance of City records. The email system, to function as intended, anticipates or requires that employees regularly delete communications from the system.

E-mail messages and attachments comparable to hard copy documents that would be retained under this policy should be retained as follows: The document must be categorized in the appropriate record series and converted to the appropriate electronic format or printed in hard copy and retained for the required time period as outlined in the City’s Records Retention Schedule. No matter what form in which the record is retained, proper procedures as outlined in City’s Records Retention Policy must be followed prior to the destruction of any record.

Routine e-mail messages comparable to telephonic communications are non-records. They are not intended to be retained in the ordinary course of City business, and the informational content of such communications is neither necessary nor intended to be preserved for future City use or reference. Each user will have the responsibility to remove such non-records from folders within PGCC 4-2-25

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City Council Policy 000-19 Page 5 of 7
the City’s electronic mail system on a rolling 2 year schedule. This includes items in “received” and “sent” folders as well as any folders set up by individual users. Upon removal from the City’s email system, the non-records will be disposed of in the City’s ordinary course of business. An e-mail is considered destroyed as soon as it has been deleted from a user’s mailbox, even though it is temporarily stored in the trash folder before being purged from the e-mail system. This action is analogous to throwing a paper document into an office trashcan. Digital email back-up tapes are destroyed on a regular basis.

Each e-mail user will be trained in the application and implementation of this policy.

This policy does not prohibit employees from maintaining temporary working files or folders to allow for quick reference to recent e-mails.

Retention of Other Electronic Data
With the increased use of electronic data, attention to the retention requirements for electronic records becomes extremely important. Other than Internal Revenue Service Revenue Procedure 91-59, which recognizes electronic data interchange records and specifies that these records may be retained in electronic form unless a visible record is requested by a tax auditor, no other law at this time requires an organization to maintain both the electronic and hard copy form of the same information. You may, therefore, maintain records in any form unless the law either specifies the form or restricts the forms that can be used.

Databases
Databases consist of electronic files and fields of data that provide useful information to the organization. Typically, databases are modified over time through the addition, deletion, or modification of records. Reports are periodically prepared to reflect information from the databases that may be useful for specific purposes. Due to the large volume of information maintained in databases, reports rarely reflect all the information found in the database. Backups of databases, which are stored on City servers, are performed daily and would be used to restore the databases in case of accidental erasure or disaster.

Databases maintained by the City could include financial information, mailing lists, customer information, employee information, work order tracking, marketing information, records management information, etc. Since reports typically do not reflect the entire content of the database, the electronic form of the database contains different information than the visible reports. Electronic databases are often more useful than the paper reports, so visible reports are not equivalent to electronic databases.

For records retention purposes, a database is an official record of the organization. The retention period is established as ‘until superseded (SUP)” to reflect that only the current version needs to be maintained. Daily digital backup tapes are destroyed after four days; weekly backup tapes are destroyed every three weeks; and monthly backup tapes are destroyed on a rolling twelve-month cycle. Periodic reports, which are produced in hard copy format from a database and used for administrative, fiscal, legal or historical purposes, may be official records. These reports must be maintained for the requisite retention period according to the particular records series they are PGCC 4-2-25

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City Council Policy 000-19 Page 6 of 7
assigned. For example, the City’s annual Budget Report is a “snapshot” of our financial position at the end of the fiscal year, and is used to inform Council (legal), staff (administrative) and citizens (legal & historical). That snapshot must be retained for its designated retention period to reflect operational needs.

Disaster Prevention and Damaged Records Recovery Policy It is the policy of the City to ensure that its records are identified and protected as much as humanly possible from natural and man-made disasters. This policy applies to all employees who create, receive, and maintain City records. The administrative procedures described below afford the City the most efficient and cost effective method for protecting City records and recovering records when disasters occur.

Adopted: October 5, 2011 (Resolution No. 11-079)
Revised: January 18, 2012 (Resolution No. 12-003)
Revised: August 15, 2018 (Resolution No. 18-028)
Revised: October 19, 2022 (Resolution No. 22-047)
Revised: April 2, 2025 (Resolution No. 25-XXX)
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City of Pacific Grove
Records Management and Records Retention Schedule
Adopted by Council on January 18, 2012
Revised and approved by Council on October 19, 2022
LEGEND
AC = Active L = Life
AU = Audit P = Permanent
CL = Closed/Completion S = Supersede
CU = Current year T = Termination
E = Election

CITATIONS
B&P = Business & Professions H&S = Health & Safety
CAC = California Administrative Code HUD = Housing & Urban Development CCP = Code of Civil Procedure OSHA = Occupational Safety & Health CCR = Code of California Regulations PC = Penal Code
CEQA = California Environmental Quality Act POST = Police Officers Standards Training CFR = Code of Federal Regulations UFC = Uniform Fire Code EC = Election Code USC = United States Code
FMLA = Family & Medical Leave Act WIC = Welfare & Institutions Code GC = Government Code
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ADMINISTRATION
Records Series Retention Citation Descriptor
AUDIT
Annual Financial Report P GC 34090 Independent auditor analysis Bonds CL + 10 GC 34090; CCP 337.5 Final bond documentation Budget P GC 34090 Annual operating budget approved by the Legislative Body.

Budget Operating (copies) S GC 34090 Departmental Reference Hearing or Review AU + 2 GC 34090; OMB A-128 Documentation created and/or received in connection with an audit hearing or review.

Reports AU = 4 GC 34090; OMB A-128 Internal and/or external Reviews, Internal/External
Periodic
CU GC 34090; GC 6250 Daily, weekly, monthly, quarterly or other summary, review, evaluation, log, list, statistics, except a report.

COMMUNITY SERVICES
Library Services CU + 2 GC 34090 Books, art, gifts, donations, exhibits, theatre, music, special events, etc.

Museum CU + 2
Plaques P Historic value

RECREATION
Sports Organization S + 2

ELECTIONS
Affidavit Index CL + 5 EC 17001
Applications, Absentee
Ballots and Envelopes
E + .5 EC 17505, EC 17302 From date of election
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Ballots Prop. 218 2 GC §26202, 34090,
60201
Property related fees (Assessment Ballot Proceeding)
Calendar E + 2 GC 34090
Canvass P GC 22932; EC 17130;
EC 2653
Notifications and Publication of Election; Records used to compile final election results, including tally sheets, voting machine tabulation, detailed breakdown of results, special election results
Certificates of Election T + 4 GC 81009(a) (d) Certificates of election; Original reports and statements Charter
Amendments/Measures
P GC 34458-60; 34090 Chapter designations by Secretary of State following adoption of voters Fair Political Practices
Administration/Campaign
Statements and Conflict of
Interest
CU + 5 FPPC Opinions
Campaign disclosure,
Elected
P GC 81009(b)(g) FPPC Filings
Campaign disclosure, Not
Elected
E + 5 GC 81009(b) FPPC Filings
Campaign disclosure –
Unsuccessful (all other
committees)
E + 7 GC 81009 FPPC Filings
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History P GC 34090 History of elections, sample ballots, certificates of destruction, other resolutions re:
elections
Statement of economic
interest – Elected Officials
T + 7 GC 81009 (e) FPPC Filings
Statement of economic
interest – Not Elected
E + 5 GC 81009(b) FPPC Filings
Lobbyist Registration P EC 81009(b) Statements
Maps, Precincts/Voter
Information
E + 2 GC 34090; EC 17501,
17301
Nomination Papers
Successful
Unsuccessful
E + 4
E + 2
EC 17100; GC 81009(b)
Notifications and Publications E + 2 GC 34090 Proof of publication or posting, certification and listing of notice of posting; copy of newspaper notice and certification of offices to be voted for at forthcoming election.

Oaths of Office T + 6 GC 34090; 29 USC
1113
Elected Officials
Petitions .75 EC 17200, 17400; GC
7253.5; EC 14700 + GC
3756.8
From date of filing or election; Initiative, referendum, recall, Charter Amendments.

Precinct Records E + .5 EC 17503 From date of election: precinct official material; declaration of intention, precinct board member applications, and order appointing members of precinct boards and designating polling places. Includes notice of appointment of office and record of service.

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GENERAL SUBJECT
Administration P GC 34090
Biographies CU + 2 GC 34090
Classifications and
Appointments
P GC 34090; GC 12946;
29 CFR 516.6(2); 29
CFR 1602.4
Includes supplemental Personnel records. Wage rate tables, 2 years.

Correspondence/Originating
Department
CU + 2 GC 34090(d) If not attached to agreement or project file Goals and Objectives CU + 2 GC 34090 Departmental goals and objectives Policies and Procedures,
Departmental
S + 5 GC 34090(d) Retain while current
Promotional Marketing
External
Internal
CU + 7
2 Reports
Departmental
Staff
CU + 2
CU + 2
GC 34090
Special or final summary, review or evaluation.

Non-agenda related, includes supporting documentation.

Special Projects CU + 2 GC 34090
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Travel Records CU + 2 GC 34090
GRANTS
Community Block Grant and
Urban Development
T + 5 GC 34090; 24 CFR
570.502; 24 CFR 85.42*
Applications, reports, contracts, supporting documents. CDBG standard agreement.*OMB Cir. A-102, A-110, A-128 (State tells us to keep everything. TS 3-6-18) Federal and State CL + 5 GC 34090 Refer to grant application close-out procedure Financial Reports CL + 5 GC 34090 Refer to grant application close-out procedure Unsuccessful CL + 2 GC 34090 Applications not leading to a grant award

HUMAN RESOURCES
Benefit Plan Claims P GC 6250 et seq.; OMB
A-129; 29 CFR
1602.30.32; Lab. Rel.
1174*
May include dental, disability, education, health, life and vision, including dependent care and Employee Assistance.
*29 CFR 1637.3; 29 USC 1027; 29 CFR 1627.3; 29 USC 1113.

Benefit Plan Enrollment,
Denied
CL + 4 GC 34090; OMB A-128
Bond, Personnel Fidelity T + 2 GC 34090 Employee Fidelity Bonds Employee Handbook S + 2 GC 34090 General employee information, including benefit plans Employee Programs CL + 2 GC 34090; GC 12946 Includes EAP and Recognition.

Employee Rights
General Employees
Safety (Police)
T + 2
T + 5
GC 12946; 29 CFR
1602; 29 USC 211(e);
20 (m); 207(g)
May include Arbitration, grievances, union requests, sexual harassment and Civil Rights, complaints, disciplinary actions
Hourly Employees T + 6 GC 12946; GC 34090* *29 CFR 1627.3, Labor Relations § 1174 PGCC 4-2-25

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Revised and approved by Council on October 19, 2022____________ AC = Active; AU = Audit; CU = Current year; E = Election; P = Permanent; T = Termination; CL = Closed/Completion; L = Life; S = Supersede B&P = Business & Professions; CAC = California Administrative Code; CCP = Code of Civil Procedure; CCR = Code of California Regulations; CFR = Code of Federal Regulations; EC = Election Code; FMLA = Family & Medical Leave Act; GC = Government Code; H&S = Health & Safety; HUD = Housing & Urban Development; OSHA = Occupational Safety & Health; PC = Penal Code; POST = Peace Officers Standards Training; UFC = Uniform Fire Code; USC = United States Code; WIC = Welfare & Institutions Code Immigrant CU+3 Immigration
Reform/Control Act
1986 Pub. L 99-603
1-9s
Medical Leave CL + 30 FMLA 1993 US OSHA;
29 CFR 1910.20*
May include family leave; certifications; tests; W-4s
*29 CFR 1602.30.32; 49 CFR 193-9
Motor Vehicle Pulls (DMV) CL + 7 GC 23946* *CA 91009; 8 USC 1324(a) Negotiation P 29 USC §§ 211(c),
203(m), 207(g)
Notes, notebooks, correspondence, contracts and Memorandums of Agreements Non-Safety Employees T + 3 29 CFR 1627.3; CCR §
1174; 29 CFR
1602.30.32; GC 6250 et
seq.; 29 CFR; GC
12946, 34090*
Non-safety employees may include Release authorizations; Certifications; Reassignments; outside employment; commendations, disciplinary actions; terminations, oaths of office; evaluations-pre-employee medicals; fingerprints; identification cards (ID=s) *1607.4; 29 CFR 655.202; 29 CFR 516.6 et. seq.; 45 CFR 1068.6(a) Personnel Records (copies) CU + 2 GC 34090; GC 6250 Attendance; evaluations; drafts; worksheets; postings PERS, Social Security, SSI P 29 CFR 1627.392); GC
12946; 34090

EEOC/ADEA
Recruitment CL + 3 GC 12946; GC 6250 et
seq.; 29 CFR 1602 et
seq.; 29 CFR 1607; 29
CFR 1627.3
Applications, resumes, alternate lists/logs, indices; ethnicity disclosures; examination materials; examination answer sheets, job bulletins; eligibility; electronic database.

Reports CU + 2 GC 34090 Employee statistics, benefit activity; liability loss.

Safety Employees T + 5 29 CFR 16273; LC §
1174; 29 CFR 1607.4*
Police, fire, emergency employees may include Release Authorizations; Certifications Reassignments; outside employment; commendations disciplinary actions; terminations; Oaths of Office; evaluations, pre-employment medical, background investigations, and PGCC 4-2-25

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Safety CU + 2 GC 34090 Certifications/designations
Vehicle Mileage
Reimbursement Rates
S + 2 GC 34090 Annual mileage reimbursement rates.

INFORMATION

SERVICES
Internet, World Wide Web S + 2 GC 34090 Management/Policies and supporting documentation Inventory, Information
Systems
S + 2 GC 34090 Hardware/Software Inventory logs; systems manuals. Backup tapes are not a record.

Network Information Systems
(LAN/WAN)
CU + 4 GC 34090; CCP 337.2;
343
Configuration maps and plans
Program Files and Directories CU + 2
CU + 2
mo.

CU + 1
CU + .5
GC 34040, 34090.7 Annual backup
Daily backup
Monthly backup
Weekly backup
Tapes Information Systems CU + 2 GC 34090 System Generation PGCC 4-2-25

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LEGAL/LEGISLATIVE
Agendas, Notices and
Meetings
CU + 2 GC 34090 Original agendas and special meeting notices, including certificates of posting, original summaries, original communications and action agendas for Council, Boards and Commissions
Agenda Reports (Master,
Subject Packet Files)
CU + 120 GC 34090(d) Documentation received, created or submitted to Council.

Appeals, Civil CU + 3 CCP 583.3209a)(3); GC
34090
Applications, Boards,
Commissions, Committees
(Not Selected)
CL + 2 GC 34090
Applications, Boards,
Commissions, Committees
(Selected)
T + 5 GC 34090; 40801
Articles of Incorporation P GC 34090; CCP 337.2
Case Log CL + 7 CCP 337.2, 343 From Close of cases listed; Chronological listing of cases.

Case Records – High Profile P GC 6254 Significant cases that have importance or set legal precedent. Includes logs, complaints, police reports, court orders, motions, notes, briefs.

Case Records CO + 7 42 USC 1983 Includes logs, complaints, police reports, court orders, motions, notes, briefs, closing statements (unless minors – 3 years after attaining 18) Contracts and Agreements
Excl. Capital Improvement
T + 5 CCP 337.2, 343; B&P
7042.5*
Includes leases, equipment, services or supplies.
*PU 7685; 48 CFR 2; GC 53066
Contracts and Agreements P 2.08.110* Construction
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Logs, Attorney Service
Request
CU + 2 GC 34090 Service request, summary of monthly requests Minutes P GC 34090(d), 36814,
40801
Official minutes and hearing proceedings of governing body or board, commission or committee
Opinions S + 2 GC 34090; GC 6254 Confidential
Ordinances P GC 34090(d), 40806 Charter amendments; municipal code Petitions CU + 1 GC 50115; GC 6253 Submitted to legislative bodies Resolutions P GC 34090(d), 40801 Legislative bodies
Tapes, Audio/Video CU + 3
mo.10
GC 34090.7 When used for minute preparation and may have historical value

MUNICIPAL CLERK
Assessment Districts P GC 34090 Original documentation
Inventory, Records CU + 2 GC 34090; 80
Ops.Atty.Gen. 106
Inventory of non-current or inactive records holdings and location, indices. Tapes may be recycled.

Municipal Code P GC 34090 Supplements included
Public Records Request CL + 2 GC 34090
Records Management Policies CL + 2 GC 34090 Document includes retrieval, transfers - inactive Records Management P GC 34090 Documentation of final disposition of records PGCC 4-2-25

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POLICIES/PROCEDURES
General Administrative S + 2 GC 34090, 40801 All city policies and procedures Policy, Council S + 2 GC 34090 Directives rendered by council not assigned a resolution or ordinance number.

Proclamations 4

PUBLIC INFORMATION
Brochures, publications,
newsletter, bulletins
S + 2 GC 34090
Calendar, City CU + 2 GC 34090
CDBG-Public Information
File
T + 5 CDBG Grant Management Manual, Chapter 18.

Media Relations CU + 2 GC 34090 Includes cable, newspaper, radio, message boards, and presentations.

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COMMUNITY DEVELOPMENT DEPARTMENT
Records Series Retention Citation Descriptor

ADMINISTRATION
Benchmark Data CU + 2 GC 34090(d) Horizontal, vertical & control Bids & Proposals (Unsuccessful) CL + 2 GC 34090(d)
Bonds
Development
Security
CL + 10
CL + 2
CCP 337.5
GC 34090
Housing; Industrial Development
Documentation created or received in connection with the performance of work/services for the City, or for parcel maps and subdivision work.

Code Books P GC 34090(e) National Electrical Code, Uniform Building, Fire, Mechanical, Plumbing and Supplements
Contractor CU + 2 GC 34090(d) Current listing
Correspondence CU + 2 GC 34090(d) Working documentation Development Conditions L GC 34090 Mitigation measures; filed with case files Development Agreements P CCP 337, 337.1(a),
337.15; GC 34090;
48 CFR 4.703
Infrastructure contracts, franchises. Original maintained for 7 years.

Development Standards P GC 34090(a) Landscape mediums, parkway landscape development, public works construction.

Zoning, Subdivision, and Sign Ordinance Standards
Drawings, Project Plan CU + 2 GC 34090(d) Does not include those usually filed with case or project.

Franchises P GC 65964,
65869.5, 34090*
Including subdivision agreements, contracts for sale or purchase of property, cable, grant of easements or involving construction of improvements. *CCP 337.2, 343; AC 16023
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C*
Project files, contracts, proposals, statements, reports, sub-recipient dockets, Environmental review, grant documents, applications, inventory, consolidated plan, etc.

Includes Section 108 loan guarantee
*OMB Cir. A-102 & 128 HUD regulations.

For planning grants only.

Historic Preservation Inventory S + 2 GC 34090(d) Historic structures and landmarks Incident Files 2 GC 34090(d) Emergency Call Outs
Land Uses, nonconforming P GC 34090(a) Building or site usage which does not conform to current standards Logs CU + 5 Logs, registers or similar records listing permits, certificates of occupancy issued; may include inspection, building activity, daily, plan check, utility Maps and Plats P GC 34090(a) Engineering and field notes and profiles; cross-section of roads, streets, right-of-way, bridges; may include annexations, parks, tracts, block, storm drains, water easements, benchmarks, trees, grading, landfill, fire hydrants, base maps, etc.

Master Plans, Annual S + 2 GC 34090 Special or long range program plan for municipalities – coordination of services; strategic planning.

Permits, Construction P GC 34090(a); H&S
19850; 4003, 4004
Plans, building, signs, grading, encroachment, including blueprint and specification.

Permits, Other CL + 2 GC 34090(d) Alterations, encroachment, excavations, road, street sidewalk and curb alterations, transportation, swimming pool draining, temporary uses, etc.

Photographs S + 2 GC 34090(d) Aerial photographs
Projects, Not Completed or Denied CL + 2 GC 34090(d) Building, engineering, planning Reports CU + 2 GC 34090 Activity, periodic
Seismic Retrofit Program P GC 34090(a) Includes Certificates of Compliance PGCC 4-2-25

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Surveys P GC 34090(a) Recording data and maps

BUILDING
General Information 2
Address Files P GC 34090d Paper & Microfiche, address assignments Projects in Plan Check C + 2 GC 34090 Destroy when Plan Check expires Final Projects P GC 34090 Plans, building, signs, grading. Destroy paper after scanning Code Books P GC 34090e National Electrical Code, Uniform Building, Fire, Mechanical, Plumbing & Supplements Archive Plans P GC 34090d Residential & Commercial; Large projects retained pursuant to the Reilly Act – pertains to schools and public buildings that are not exempt from the Architectural Practices Act.

Contractors C GC 34090 Current list-contractor database is contained within Permits Plus software Structural Calculations D/R GC 34090 Destroyed when permit final Issued Permit Documents P GC 34090a; H&S
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CODE ENFORCEMENT
Abandoned Vehicles CL + 2 GC 34090(d)
Case Files CL + 2 GC 34090(d) Building, housing and mobile home code violation records including inspections; public nuisance rubbish and weed abatement, vehicle abatement, citations, massage parlor permits, general.

Liens & Releases,
Supporting
Recorded
CL + 2
P
GC 34090 Utilities, abatement, licenses
Logs CU + 2 GC 34090(d) Lien recovery, citations, complaints Regulations S + 2 GC 34090(d) Includes rules
Reports, Federal and State P GC 34090(a) Code enforcement statistics; may contain records affecting title to real property or liens thereon.

Violations, Building, Property &
Zoning
CL + 2 GC 34090(d) Supporting code enforcement activity.

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ENVIRONMENTAL QUALITY
Air Quality (AQMD) CU + 7 CCP 338(k); GC
34090
Participants/voucher logs, Total Daily Mileage Survey (TDM); various local authorities; Commute Alternative
Asbestos P GC 34090(a) Documents abatement projects, public buildings California Environmental Quality
Act (CEQA)
P GC 34090(a) +
CEQA Guidelines
Exemptions, Environmental Impact Report, Mitigation monitoring, negative declaration, notices of completion and determination, comments, statements of overriding considerations
Congestion Management CU + 2 GC 34090(d) Ride sharing, trip reduction Environmental Review CL + 2 GC 34090(d) Correspondence, consultants, issues, conservation Pest Control CU + 2 GC 34090(d) Pesticide applications, inspections & sampling, documents Soil CL + 2 GC 34090(d) Analysis, construction recommendations Soil Reports P GC 34090(d) Final Reports

HOUSING
Bonds CL + 4 CCP 337 Revenue Bond Documentation
Programs CL + 5 24 CFR
570.502(b)(3); 24
CFR 85.42 &
OMB Cir. A-110,
#C
Includes comprehensive Housing Authority Strategy, Meeting Credit Certificate, Housing bond advisory, HOME, In-Lieu Housing Mitigation, Low/Moderate Housing, Rental Housing Assistance.

Redevelopment Budgets P GC 34090, 40802,
53901;
Includes annual audit
Bond Issues P GC 43900 et seq.

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MUNICIPAL FACILITY
Capital Improvements, Construction P 2.083110; GC
34090(a), 4004;
H&S 19850; GC
34090(a)
Contains records re: Planning, design, construction, conversion or modification of local government-owned facilities, structures and systems.

Facility Rentals/Use CU + 2 GC 34090 Permits, contracts, diagrams, schedules, insurance binders Maintenance & Operations CU + 2 GC 34090(d) Service requests, invoices, supporting documentation; buildings, equipment, field engineering, public facilities including work orders and graffiti removal

PLANNING
Case files, Planning and Zoning P GC 34090(a); H&S
19850; 4003, 4004
Pertains to real property. May include case-tracking reports, project-related photos, approval resolutions and project-related Board/Commission meeting minutes, blueprints, drawings, maps, plans, reports, evaluations, correspondence, uses, permits, variances, studies, appeals, compliance certificates, lot line adjustments or other planning-related matters brought before legislative body.

Certificates L GC 34090 Retain during life of structure Flood Records CU + 2 GC 34090
General Plan and Elements P GC 34090 Includes sphere of influence General Plan Amendments
Approved
Denied
P
CU + 2
GC 34090
GC 65103* *GC 50110
Interpretations S + 2 GC 34090
Maps, Plans, Drawings, Exhibits, P GC 34090; H&S Zoning, tentative subdivision, parcel, land use map, aerial photos, specific plans PGCC 4-2-25

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PROPERTY
Abandonment P GC 34090(a) Buildings, Condemnation, Demolition Acquisition/Disposition CL + 10 GC 34090(a); GC
6254
Supporting documents re: sale, purchase, exchange, lease or rental of property by City Annexation Case Files P GC 34090(a) Reports, agreements, public notices Appraisals CL + 2 GC 34090, 6254(h) Exempt until final acquisition or contract agreement obtained Deeds & Promissory Notes P GC 34090(a)* *24 CFR 570.502(b)(3); 24 CFR 8.42 & OMB Circ. SA-110 Maps, City Boundary P GC 34090 Recorded maps, surveys and monuments Lot Split Cases P GC 34090(d)
Relocation Files CL + 2 GC 34090 e.g., Redevelopment

FINANCE
Records Series Retention Citation Descriptor

ACCOUNTING
Accounts Payable AU + 5 GC 34090 Invoices, check copies, supporting documents Accounts Receivable AU + 5 GC 34090
Applications CL + 2 GC 34090 Utility connections, disconnects, registers, service Assessment Districts P GC 34090 Collection information; original documentation files with City Clerk PGCC 4-2-25

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ADMINISTRATIVE SERVICES
Budget Operating (copies) S GC 34090 Departmental Reference Budget
Proposed
Adopted
CU + 2
P
GC 34090 Presented to Council
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FIXED ASSETS
Inventory AU + 5 GC 34090; 26 CFR
301 65-1(F)
Reflects purchase date, cost, account number
Surplus Property
Auction
Disposal
AU + 2
AU + 5
GC 34090
GC 34090; CCP
337
Listing of property
Sealed bid sales of equipment
Vehicle Ownership & Title L VC 9900 et. seq. Title transfers when vehicle sold

PAYROLL
Adjustments AU + 6 GC 34090; 29 CFR
516.5 – 516.6
Audit purposes
Employee Time Sheets AU + 6 GC 34090; 20 CFR
516.2*
Signed by employee for audit and FEMA Reports
*20 CFR 516.6(1); IRS Reg. 31.6001-1(e)(z); R&T 19530; LC 1174(d) Public Employee Retirement
System (PERS) Employee
Deduction Reports
T + 6 GC 34090; CAC
22-1085-2
Record of deductions
26 CFR 31.6001-1; 29 CFR 516.5, 516.6, LC 1174(d)
Register P GC 34090, 37207 Labor costs by employee and program Salary Records T + 6 GC 34090; 29 CFR
516.2
Deduction authorization, beneficiary designations, unemployment claims, garnishments

PURCHASING
Bids, RFQs, RFPs,
Successful
AU + 2
AU + 5
GC 34090; CCP
337*
Requests for Qualifications; Requests for Proposals regarding goods and services. *GC 25105-1, GC 34090
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Completed forms for ordering.

Vendor Register P GC 34090 Alpha vendor listing of purchase orders, invoices, account numbers and check date.

FINANCIAL REPORTING
Audits P GC 34090
Deferred Compensation T + 5 GC 34090; 26 CFR
16001-1*
Records of employee contributions and city payments
*29 CFR 1627.3(2)
Federal and State Tax AU + 6 GC 34090; 29
USC 436*
Forms 1096, 1099, W-4s and W-2s
*26 CFR 31.6001.1-4; IRS REG 31.6001-1(e)(2); R&T 19530; 29 CFR 516.5-516.6 Financial, Annual P GC 34090.7
Investment Transactions P GC 34090; CCP
337; GC 53607
Summary of transactions, inventory and earnings report.

RISK MANAGEMENT
Accident Reports – City Assets CL + 7 29 CFR 1904.2* Reports and related records *29 CFR 1904.6
Bonds, Insurance P CCP 337.2, 343 Bonds and other insurance policies insuring city property and other assets.

Claims, Damage CL + 7 GC 34090,
25105.5
Paid/denied.

Incident Reports CL + 7 29 CFR 1904.2; 29
CFR 1904.6
Theft, arson, vandalism, property damage or similar occurrence (excluding fire/law enforcement)
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Revised and approved by Council on October 19, 2022____________ AC = Active; AU = Audit; CU = Current year; E = Election; P = Permanent; T = Termination; CL = Closed/Completion; L = Life; S = Supersede B&P = Business & Professions; CAC = California Administrative Code; CCP = Code of Civil Procedure; CCR = Code of California Regulations; CFR = Code of Federal Regulations; EC = Election Code; FMLA = Family & Medical Leave Act; GC = Government Code; H&S = Health & Safety; HUD = Housing & Urban Development; OSHA = Occupational Safety & Health; PC = Penal Code; POST = Peace Officers Standards Training; UFC = Uniform Fire Code; USC = United States Code; WIC = Welfare & Institutions Code Insurance, ACCEL JT Powers
Agreement
P GC 34090 (Authority California Cities Excess Liability Insurance) B Accreditation/MOU = s/agreements/agendas
Insurance, Certificates P GC 34090 Insurance certificates filed separately from contracts, includes insurance filed by licensees
Insurance, Liability/Property P GC 34090 May include liability, property, Certificates of Participation, deferred use of facilities Insurance, Workers Compensation P GC 6410; 29 CFR
1910.20
Indemnity; PERS – working files – originals with Administrator Photographs, Negatives, Film CL + 7 GC 34090
Risk Management Reports CL + 7 OMB 1220-0029;
29 CFR 1904.4;
GC 34090
Federal OSHA Forms; Loss Analysis Report; Safety Reports; Actuarial Studies

TREASURER
Bank Statements AU + 5 FC 3368, 30210;
GC 43900 et seq.

Financing authority.

Bonds
Account Statements
Administration
Bonds and Coupons
CL + 10
CL + 10
CL + 2
GC 34090; CCP
337.5; GC 53921
Monthly statement of transactions
Supporting documents
Paid/canceled.

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EL CARMELO CEMETERY
Record Series Retention Citation Descriptor
Administration P Deeds, Disposition of Human Remains, Death Certificates, Letters Correspondence from families/Executor and Invoices.

Work Orders AU+5 Work Orders for burial and maintenance around gravesite, i.e. keeping gravesite presentable and removing debris
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PUBLIC SAFETY
Record Series Retention Citation Descriptor

EMERGENCY MANAGEMENT
EOP, Monterey County
Multijurisdictional Hazard Plan
S

LAW ENFORCEMENT
Administrative Police Department
Records
CU + 2 GC 34090 Administrative Police Records including, but not limited to Ride-Along waivers, Subpoenas Duces Tecum, Project and Program Files, Special Event and Film Permit Files Staff Schedules, Press Releases, Shift Notes, Survey Responses, General Correspondence, Close Patrol Requests
Department Policy S GC 34090 Includes General Orders, Procedure Manuals, Training Bulletins, and CALEA files.

Department-Issued Equipment
Radar and Breathalyzer
Calibration Records
S + 2
L +2
GC 34090 Equipment inventory, manuals, audits, assigned to the department and each employee Records maintained for the life of the equipment plus 2 years.

Internal Affairs Investigations
Officer Involved Shootings
Personnel Complaints/
Internal Investigations
Use of Force Supervisor
Review
P
CL + 5
CL + 152
CL + 2
PC 832.5, EVID
1045, PC 832.18
SB 1421
Initiated by citizens’ complaints; includes complaint, reports, findings. Hard copy.

Initiated by the Department; includes complaint, reports, findings. Hard Copy.

Internal Investigation with a “Sustained” finding.

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H & S 11357(a-c) & 11360(b)
arrests and convictions, occurring
after Jan. 1, 1976
see statute H & S 11361.5 Electronic
Concealed Carry Weapon Permits CU + 2 GC 34090
Property & Evidence Files
Audits, Inspections
Inventories
P
CL + 5
P
GC 34090 Includes Logs, Chain of Custody, Property Destruction Records, Property Receipts, weapon and narcotic destruction records. Electronic and Hard Copy.

Subpoenas CU + 2 GC 34090 Subpoenas received/served daily.

Registration Files GC 68152(c)(2) Arson, Sex, Gang, Narcotic Registrant Files. Electronic.

Case Report Files
Felony, Capital Crimes
Misdemeanor
Infractions
Non-Criminal, Informational
Child Abuse/Neglect,
P
CL + 10
CL + 2
CL + 2
CL + 10
PC 799, 800, 801,
PC 802
GC 34090
GC 34090
PC 11169, 1170
Case Report Files include Narratives, Arrest Reports, Dispositions, Photographs, and other Records related to the case. Provided there are no outstanding warrants, unrecovered weapons, criminal deaths, they are not historically significant, and not classified under PC 800, 290, H&S 11850, Statute of Limitations. Electronic.

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P GC 34090 Includes inventories, audits, weapons database, and logs.

Reporting to DOJ CU + 2 GC 34090 NIBRS/CIBRS, Monthly Arrest & Citation Register (MACR); Death in Custody; Uniform Crime Reports (UCR); Hate Crime Incidents; Law Enforcement Officers Killed or Assaulted (LEOKA); Juvenile Detention Logs.; Originals kept by Department of Justice, or Board of State and Community Corrections. Electronic.

Reporting (Traffic) CU + 2 GC 34090 Statewide Traffic Report System (SWTR-CHP)); Dept of Transportation (DOT) Originals kept by CHP or DOT. Electronic
Records Management System BackUpS Electronic
Sealed Records
Adult Found Factually Innocent
Seal for
three years
and then
destroy.

PC 851.8 General provision: Upon petition, records of agency must be sealed and destroyed in accordance with statute.

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Audio, Telephone and Radio
Communications
CU + 180
days
GC 34090.6 Exception: Recordings used as evidence in a criminal prosecution or claim filed or litigation or potential claims and litigation shall be preserved for 100 days after conclusion of the court action.

Automated License Plate
Recognition System
Non-Evidentiary
Parking Citation
60 hours
CL + 2
GC 34090 Includes images, data and video.

Exception: Recordings used as evidence in a criminal prosecution or claim filed or litigation or potential claims and litigation shall be preserved for 100 days after conclusion of the court action.

Surveillance/Security Video 30 Days GC 34090.6 Exception: Recordings used as evidence in a criminal prosecution or claim filed or litigation or potential claims and litigation shall be preserved for 100 days after conclusion of the court action.

Body Worn & In-Car Camera Video
Non-Evidentiary
Evidentiary, Use of Force,
Arrest/Detention
Access Logs
60 Days
2 Years
P
PC 832.18 Retain for the same length of time as other evidence relevant to a criminal prosecution, or at least for 2 years under any of the following circumstances:

Use of Force Incident, incident that leads to the detention or arrest of an individual or relevant to a formal or informal complaint.

Warrants, Unserved Until served,
or recalled
Electronic and on clipboard
Field Interview Cards CU + 2 GC 34090 Electronic
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Includes Administrative Reviews, Hearing and Appeal Records.

Originals forwarded to court.

Repossession/Private Impounds CU + 2 GC 34090 Private vehicle repossessions/impounds Permits and Licenses CU + 2 GC 34090 Alarm, Bicycle, Parking, Sound, Dumpster, Film, Garage, Dog, Alcohol Beverage Control, Massage and others issued by the Police Department. Electronic.

Restraining Orders CU + 2 PC 273.5; PC 273.6;
PC 646.9; PC
12028.5; PC 13700;
FC 6380-6383.

Emergency Protective Orders, Temporary Restraining Orders, Legal Stipulations, Orders After Hearing. Electronic.

Note 1: The destruction of felony, misdemeanor and infraction Crimes/Supplemental Reports is permitted providing all of the following conditions are met:

1. They do not relate to an unadjudicated arrest except for H&S 11357 or H&S 11360 violations;

2. They do not relate to unserved warrants;

3. They do not involve identifiable items that have not been recovered;

4. They do not relate to PC 290, PC 457.1, or H&S 11590 registrants;

5. They do not relate to violations listed in PC Sections 799 and 800; and

6. The cases are not presently involved in either a civil or criminal litigation.

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PUBLIC WORKS
Record Series Retention Citation Descriptor

ENGINEERING
Capital Improvement Projects CL + 10 CC 337.15 Supporting documents including bidders list, specifications, reports, plans, work orders, schedules, etc.

Construction Tracking, Daily P CC 337.15 Assesses value of real property Drawings, Traffic Control Plan P GC 34090(a) Signs, signing and striping, road construction.

Flood Control CL + 2 GC 34090(d) Storm drains
Special Districts P GC 34090(a) Supporting documents re: improvement, lighting, underground utility; bonds, taxes & construction
Street/Alley
(Abandonment/Vacation)
CL + 2 GC 34090(d) Relinquishment of rights and fee title Traffic Signals CL + 2 GC 34090(d) Counts, collisions, accidents PARKS
Agenda, Board CU + 2 GC 34090
Grants (refer to Admin.)
Inventory, Equipment AU + 2 GC 34090 Warranties, Purchase Orders Landscape CU + 2 GC 34090 Drawings, contracts, complaints, specifications, photos, reports Maintenance/Operations C + 2 GC 34090 Includes work orders, inspection, repairs, cleaning, reports, complaints Maps P GC 34090 Irrigation, plot plans
Minutes, Board P GC 34090
Photographs S + 2 GC 34090
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SANITATION, SOLID WASTE,

WASTEWATER
Maintenance and Operations CU + 2 GC 34090 Includes work orders, inspection, repairs, cleaning, reports, complaints Maps, Septic Tank P GC 34090 Location maps
Rates CU + 2 GC 34090
Recycling Programs S + 2 GC 34090
Regulations S + 2 GC 34090 Includes legislation
Reports
Studies CL + 2 GC 34090
Tonnage CU + 2 GC 34090

STREETS/ALLEYS
Abandonment/Vacations P GC 34090
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Revised and approved by Council on October 19, 2022____________ AC = Active; AU = Audit; CU = Current year; E = Election; P = Permanent; T = Termination; CL = Closed/Completion; L = Life; S = Supersede B&P = Business & Professions; CAC = California Administrative Code; CCP = Code of Civil Procedure; CCR = Code of California Regulations; CFR = Code of Federal Regulations; EC = Election Code; FMLA = Family & Medical Leave Act; GC = Government Code; H&S = Health & Safety; HUD = Housing & Urban Development; OSHA = Occupational Safety & Health; PC = Penal Code; POST = Peace Officers Standards Training; UFC = Uniform Fire Code; USC = United States Code; WIC = Welfare & Institutions Code Closures P GC 34090
Easements, Dedications, Rights-ofWayP GC 34090
Field Books P GC 34090
Grants (see Admin.)
Intersection Records CU + 2 GC 34090 Includes correspondence, volume counts, accident history Inventory, Traffic Control Device S + 2 GC 34090 Signs, lights Landscaping CU + 2 GC 34090 Plants, tree maintenance, work orders Lighting CU + 2 GC 34090 Maintenance, work orders
Maintenance/Operations CU + 2 GC 34090 Includes work orders, inspection, repairs, cleaning, reports, complaints, signals, striping
Maps P GC 34090 Fire hydrants, lighting districts, wheelchair ramps, storm drains, streets, sidewalks, sewers
Master Plans CU + 2 GC 34090 Copies
Parking
Lots CU + 2 GC 34090
Regulations S + 2 GC 34090
Reports/Studies CL + 2 GC 34090
Permits
Encroachment P GC 34090
Improvement CL + 2 GC 34090 May include curbs, sidewalks; Applications for excavation, fill, alterations Paving CL + 2 GC 34090
Use (Temporary) CU + 2 GC 34090 Includes Special Events Photographs S + 2 GC 34090 Includes aerials
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Revised and approved by Council on October 19, 2022____________ AC = Active; AU = Audit; CU = Current year; E = Election; P = Permanent; T = Termination; CL = Closed/Completion; L = Life; S = Supersede B&P = Business & Professions; CAC = California Administrative Code; CCP = Code of Civil Procedure; CCR = Code of California Regulations; CFR = Code of Federal Regulations; EC = Election Code; FMLA = Family & Medical Leave Act; GC = Government Code; H&S = Health & Safety; HUD = Housing & Urban Development; OSHA = Occupational Safety & Health; PC = Penal Code; POST = Peace Officers Standards Training; UFC = Uniform Fire Code; USC = United States Code; WIC = Welfare & Institutions Code Plans, Capital Improvement,
Projects
P GC 34090 Streets, curbs, gutters, sidewalks, storm drains Policies and Procedures S + 2 GC 34090 Includes rules, regulations, standards Naming and Numbering P GC 34090
Speed Limits S + 2 GC 34090
Programs
Federal Aid Urban CL + 2 23 CFR 633 (a),
(c)
Traffic Safety S + 2 GC 34090 Drivers Education, Pedestrian Safety, Bicycle Lanes Reports
Inspection CU + 2 GC 34090 Includes intersection, sidewalks. Bridges and Overpasses, keep life of structure Studies CL + 2 GC 34090 Traffic volume, accident history, requests, statistics, drawings supporting traffic devices
Traffic Count CL + 2 GC 34090 Evaluation of traffic volume Vehicle Accident CL + 2 GC 34090
Routes, School Bus & Truck S + 2 GC 34090 Truck routes, access ramps, rest areas Signage L + 2 GC 34090 Logbooks, index register cards, inventory lists, records of traffic signs Traffic Signals L Logs, drawings, wiring diagrams, codes, circuit numbers, installation records, testing and maintenance

UTILITIES
Facilities T + 2 GC 34090 If city owned
Gas & Electric Rates S + 2 GC 34090
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Revised and approved by Council on October 19, 2022____________ AC = Active; AU = Audit; CU = Current year; E = Election; P = Permanent; T = Termination; CL = Closed/Completion; L = Life; S = Supersede B&P = Business & Professions; CAC = California Administrative Code; CCP = Code of Civil Procedure; CCR = Code of California Regulations; CFR = Code of Federal Regulations; EC = Election Code; FMLA = Family & Medical Leave Act; GC = Government Code; H&S = Health & Safety; HUD = Housing & Urban Development; OSHA = Occupational Safety & Health; PC = Penal Code; POST = Peace Officers Standards Training; UFC = Uniform Fire Code; USC = United States Code; WIC = Welfare & Institutions Code Underground P GC 34090 GC 4003, 4004; H&S 19850
WATER
Connection Records P GC 34090 Maps, water line connections Flood Control
Drainage Facilities P GC 34090 Includes dams, lakes, basins, creeks Flood Zones P GC 34090 Includes flood maps
Insurance Programs S + 2 GC 34090 Includes copies of policies, rules, programs Policies/Procedures S + 2 GC 34090 Rules and Regulations Reports/Studies CL + 2 GC 34090
Grants (see Admin.)
Inventory, Equipment CU + 2 GC 34090
Locations P GC 34090 Mains, valves, hydrants, wells
Maintenance and Operations CU + 2 GC 34090 Includes work orders, inspection, repairs, cleaning, reports, complaints Service CU + 2 GC 34090 Includes work orders, entry cards, manholes, service to property owners Well & Pumping CU + 2 GC 34090 Times operational, power used and quantity Maps P GC 34090 Line location; easements
Master Plans CU + 2 GC 34090 Copies
Meter Operations CU + 2 GC 34090 Reader reports, orders, tests, Maintenance Reports Permits
National Pollutant Discharge
Elimination System (NPDES)
P 40 CFR 122.28 Municipalities of 100,000 or more, compliance with Clean Water Act re: pollutants Others CU + 2 GC 34090 May depend on terms of state or federal agency Policies and Procedures S + 2 GC 34090 Includes rules and regulations PGCC 4-2-25

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Reports
Conservation CU + 2 GC 34090
Consumption CU + 2 GC 34090
Corrosion Control CU + 12 40 CFR 141.91 Compliance documentation Discharge Monitoring CU + 5 40 CFR 122.41 Average amount of pollution discharged into waters of municipality Drinking Water Corrections CU + 10 40 CFR 141.33
Hydrograph P GC 34090 Daily flow of streams
Lead Service Line CU + 12 40 CFR 141.91 Compliance documentation Public Education CU + 12 40 CFR 141.91 Compliance documentation Quality Parameters CU + 12 40 CFR 141.91 Compliance documentation Sanitary Surveys CU + 10 40 CFR 141.33 Statistics, reports, correspondence Source Water CU + 12 40 CFR 141.91 Compliance documentation, e.g., lead and copper State Certification CU + 12 40 CFR 141.91 Compliance documentation Variances, Water System CU + 5 40 CFR 141.33
Well Level CU + 2 GC 34090
Sources CU + 2 GC 34090 May include wells, rivers, lakes, districts Surveyor Field Notes P GC 34090 Notes preparatory to maps of water installations Surveys, Water System Sanitary CU + 10 40 CFR 141.33 Statistics, reports, correspondence Tests
Bacteriological Analysis CU + 5 40 CFR 141.33 Compliance records include location, date, method and results; corrections, analysis of bacterial content
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Valve and Main Records P GC 34090
Violations, Drinking Water CU + 3 40 CFR 141.33 Retention applies to each violation.

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TRANSPORTATION
Record Series Retention Citation Descriptor

ADMINISTRATION
Agreements T + 4 CCP 337 Including concessionaire, slip rental, facility storage Special Events CU + 2 GC 34090 Permits, correspondence, related documents re use of rights of way Fueling AU + 3 CCP 337 Meter readings, fuel consumption reports, invoices, receipts and records pertaining to refueling operations
Hazardous Waste Disposal CU + 10 CAL OSHA; 40
CFR 122.21
Documentation re: the handling and disposal of hazardous waste Inventory, Equipment, Parts &
Supplies
L + 2 Includes vehicles, aircraft, vessels and related documents re repairs Inventory, Vehicle Ownership and
Title
L + 2 Owner’s manual, warranty documents, DMV title and registration, and related documents
Licenses, Permits CU + 2 Forms, related documentation re: licenses and permits required by federal and state agencies
Maintenance/Operations L + 2 GC 34090 Related to requests for service and work orders for fuel, vehicle and equipment maintenance and repairs
Report, Accident (Copies) CU + 2 GC 34090 Memos and working documents Vehicle Assignment CU + 2 GC 34090 Logbooks, request forms, lists

GROUND TRANSPORTATION
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HARBOR
Registers, Transient Vessel
Reservation
AU + 3 Reservation applications, receipts, and index registers relating to boats in transit, temporarily moored.

Slip Rental Index CU + 5 Annual and periodic reports of slip renters Slip Rental Permits CL + 2 Applications, statement of rental conditions, vessel inspection check sheets, copy of DMV registration, boat owner information, and other documents re: dock slip spaces.

Slip Rental Waiting List CU + 2
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Agenda No. 7 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Matt Mogensen, City Manager
MEETING DATE: April 02, 2025
SUBJECT: Second Reading and Adoption of an Ordinance Establishing District-Based Elections for Council Members
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Hold second reading and adopt an Ordinance Establishing District-Based Elections for Council Members.

DISCUSSION
At the meeting on March 5, 2025, the City Council introduced by first reading the Ordinance Establishing District-Based Elections for Council Members designating Map 101 and including sequencing for future elections.

On March 19, 2025, Council held second reading and adopted an Ordinance Establishing District-Based Elections for Council Member with the incorrect map. Ater legal consult, staff requests a further second reading of the ordinance with correct map attached. There is no substantial change to Map 101.

The former county island was inadvertently left out of the newly formed District 2 and needs to be incorporated.

The City Clerk again caused a summary of the ordinance to be published on March 27, 2025.

The recommended action is to hold second reading and adopt Ordinance Establishing District-Based Elections for Council Members.

OPTIONS
Take alternative action.

FINANCIAL IMPACT:

None.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
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Proposed Ordinance
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ORDINANCE 25-XXX

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

PACIFIC GROVE ESTABLISHING DISTRICT-BASED

ELECTIONS FOR COUNCIL MEMBERS BY AMENDING
PACIFIC GROVE MUNICIPAL CODE TITLE 2 TO ADD A
NEW CHAPTER 2.70 (“DISTRICT-BASED ELECTIONS”),

ADOPTING A DISTRICT BOUNDARY MAP AND

ASSIGNING A SEQUENCE OF ELECTIONS FOR THE NEW

DISTRICTS

1. The City of Pacific Grove (“City”) is a California Charter City and municipal corporation, duly organized under the Constitution and laws of the State of California, and exercising its authority pursuant to California Constitution Article XI, Sections 5 and 7.

2. The City Council (“Council”) is the governing body of the City, and the Council is comprised of seven members, including the directly elected Mayor and six Councilmembers.

3. Prior to the adoption of this Ordinance, each member of Council (the Mayor and each of the six Councilmembers) was elected in at-large elections, in which each member of Council was elected by the registered voters of the entire City except for Councilmember Cynthia Garfield who was appointed by the City Council to fill the vacancy which resulted from the resignation of Councilmember Debby Beck.

4. The Mayor serves a two-year term and each Council Member serves a four-year term which are staggered such that three Council Members are elected in the Presidential elections year and three Council Members are elected in the Gubernatorial election year.

5. On August 23, 2024, the City received a certified letter (“Letter”) from the District 12 Director of the League of United Latin American Citizens (“LULAC”). The Letter formally requested the City to transition from at-large to district-based elections to comply with the California Voting Rights Act (“CVRA”) and states their belief that the City’s at-large system dilutes minority voting strength potentially violating the CVRA and the Letter urges the City to avoid potential litigation, which has proven costly for municipalities and that transitioning voluntarily allows the City to maintain control over the districting process and engage the community meaningfully.

6. A violation of the CVRA may be established if it is shown that racially polarized voting has combined with an at-large voting system to impair the ability of a protected class of voters to elect candidates of its choice or to influence the outcome of an election (Elections Code § 14027).

7. The Letter received by the City did not include an assertion that racially polarized voting occurred in the City or any evidence to support such a claim, nor, at this time, is the City itself aware of any such evidence.

8. The City denies that its election system violates the CVRA or any other provision of law and asserts that City’s election system is legal in all respects.

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9. The CVRA applies only to at-large electoral systems and thus favors district-based electoral systems, as defined (Elections Code § 14026(b)), which are not subject to attack under the CVRA, even if there is racially polarized voting in the districts.

10. The City has broad constitutional “home rule” authority under California Constitution Article XI, Section 5, which includes the authority to adopt ordinances related to the conduct of elections, thus the City can transition to district-based elections even if there is no violation of the CVRA.

11. The California Legislature in Elections Code § 10010 has provided a method whereby a jurisdiction can expeditiously transition to a district-based election system and thereby protect itself against the high cost of litigation under the CVRA.

12. California Government Code § 34886 provides additional protection by authorizing the legislative body of a city, under certain circumstances and without a vote, to adopt an ordinance to change its method of election from an at-large system to a district-based system in which either (a) each council member is elected only by the voters in the district in which the candidate resides, or (b) all council members except the mayor are elected by district and the mayor is elected by a city-wide vote.

13. The CVRA, Elections Code § 10010 and Government Code § 34886 are General Laws of the State of California and Article 8 of the Charter of the City of Pacific Grove requires the City’s General municipal elections to be held pursuant to the provisions of the General Laws of the State of California

14. One of the purposes of the CVRA and Elections Code § 10010 is to encourage the election of the governing body of a jurisdiction on a by-district basis, such that the voters of each district elect one of the district’s own residents to be its representative on the governing body, thus protecting the jurisdiction from CVRA litigation.

15. Another purpose of California Elections Code § 10010 is to prohibit CVRA litigation and place a cap on the recovery of attorneys’ fees associated with a CVRA claim, if, within forty-five (45) days of receipt of a claim under the CVRA by certified letter, the City adopts a resolution stating its intent to transition to district-based elections, and, within ninety (90) days thereafter (or as otherwise stipulated by the parties), the City adopts an ordinance transitioning to a district-based election system consistent with the intent and purpose of the CVRA.

16. Pursuant to California Government Code § 34886, it is declared the change in the method of electing Council Members made by this Ordinance is in furtherance of the purposes of the CVRA and to continue to implement the guarantees of California Constitution Article I, Section 7, and Article II, Section 2, as set forth in Section 14031 of the CVRA, and to protect the City from potential liability under the CVRA.

17. The City Council has determined that the public interest is better served by initiating a process for transition to a district-based election system and thereby avoiding the high costs associated with defending a lawsuit under the CVRA.

18. At its regular meeting on October 2, 2024, the City Council adopted Resolution No. 24- 042 outlining its intention to transition from at-large to district-based elections for the six Council Members, pursuant to Elections Code Section 10010.

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19. At its regular meetings on November 20, 2024 and December 18, 2024, consistent with the provisions of California Elections Code § 10010, the City Council held two public hearings over a period of no more than thirty days, at which the public was invited to provide input regarding the composition of the districts before drawing a draft map or maps of the proposed boundaries of the districts.

20. On January 8, 2025 staff conducted a “community workshop” format meeting to educate residents on how to use map-drawing tools provided by the City’s consultant to facilitate drawing draft districting maps by members of the public.

21. The community was encouraged to submit proposed maps by January 24, 2025, for consideration at a public hearing on February 5, 2024, public hearing.

22. In accordance with Elections Code section 21130(b)(1), on January 24, 2025, the City posted on its districting webpage a report disclosing that it is not possible to create an election district or districts in which a minority group is sufficiently large and geographically compact to constitute a majority in a single-member district, as set forth in Thornburg v. Gingles (1986) 478 U.S. 30.

23. The City received 20 draft maps prepared by members of the public and the City’s consultant which were timely posted on the City’s redistricting webpage.

24. On February 5, 2025, the City Council held a public hearing to discuss all 20 maps and the City Council selected Maps 101, 108, 109, 118 and 119 for additional consideration.

25. After the February 5, 2025 public hearing, the City received one additional draft map from a member of the public and timely posted that new map.

26. The City held a second public hearing on the draft maps on March 5, 2025 with special focus on draft Maps 101, 108, 109, 118, and 119, and after the public hearing the City council selected draft Map 101 as the City’s new districting map for implementation of district-based elections.

27. Draft Map 101 complies with all legal requirements under the Constitutions of the United States and the State of California, the federal Voting Rights Act, and California Elections Code § 21130.

28. After the March 5, 2025 public hearing and selection of draft Map 101, the City Council considered options for the sequencing of elections in the new districts in accordance with California Elections Code § 10010(b), established a sequencing of elections in the districts in draft Map 101, and voted to introduce for a first reading and approval this Ordinance to establish bydistrict elections in six (6) single-member districts, as reflected in Exhibit A to this Ordinance.

29. Throughout the public hearing process related to the City’s transition from an at-large to a district-based election system, the City engaged in a significant amount of public outreach and engagement in addition to the public hearings, including public notices, news releases, social medial posts, a community map drawing workshop, consistent updates to the City’s districting webpage, advertisement in the City Manager’s Report Newsletter, and other public outreach activities.

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30. This Ordinance is intended to provide for the district-based election of six Council Members of the City of Pacific Grove by-district in six single-member districts while retaining a directly elected office of Mayor, pursuant to Articles 8 and 11 of the Charter of the City of Pacific Grove and California Government Code § 34886.

31. The City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including reports by City staff and all information provided during public meetings.

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

SECTION 1. Findings. The City Council hereby finds that the facts set forth in the recitals to this Ordinance are true and correct and establish the factual basis for the City Council’s adoption of this Ordinance.

SECTION 2. Adoption. Pacific Grove Municipal Code Title 2 is hereby amended by adoption of Chapter 2.70 as set forth in Exhibit “A,” attached hereto and incorporated herein by reference.

Accordingly, the City Council hereby authorizes and directs the codifier to: (A) amend the Table of Contents for Pacific Grove Municipal Code Title 2 to add the reference to Chapter 2.70 “DistrictBased Elections”; and (B) create a Table of Contents for Pacific Grove Municipal Code Chapter 2.70 to identify each of the Sections of Chapter 2.70, as set forth in this Ordinance.

SECTION 3. District Boundary Map. The City Council hereby approves the district boundary map identified as Map 101 for the district-based election system for six City Council Members as set forth in Exhibit “A,” attached hereto and incorporated herein by reference (Map 101 is attached to and incorporated into Exhibit “A” as Exhibit 1 and shall hereinafter be called, “City of Pacific Grove City Council District Map”.).

SECTION 4. Implementation. If necessary to facilitate the implementation of this Ordinance, the City Council hereby authorizes the City Manager, or his or her designee, to make technical adjustments to the district boundaries adopted in this Ordinance that do not substantively affect the populations in the districts, the eligibility of candidates, or the residence of elected officials within any district. The City Manager shall consult with the City Attorney concerning any technical adjustments deemed necessary and shall advise the City Council of any such adjustments required in the implementation of the districts.

SECTION 5. CEQA. The City Council finds that the actions authorized by this Ordinance are not subject to the requirements of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15060(c)(2) and 15061(b)(3) since the actions will not result in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 6: Severability. If any section, sub-section, subdivision, paragraph, clause or phrase in this Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining sections or portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, sub-section, subdivision, paragraph, sentence, PGCC 4-2-25

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clause, or phrase of this Ordinance, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases may be declared invalid or unconstitutional.

SECTION 7: Effective Date. This Ordinance shall become effective thirty (30) days following adoption.

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

AYES:

NOES:

ABSENT:

APPROVED
_______________________________
NICK SMITH, Mayor
ATTEST:

DATED: __________________________
___________________________________
SANDRA KANDELL, City Clerk

APPROVED AS TO FORM:
___________________________________
BRIAN J. PIERIK, City Attorney
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EXHIBIT A
CHAPTER 2.70

DISTRICT-BASED ELECTIONS

2.70.010 District-Based Elections for six Councilmembers.

Pursuant to Government Code § 34886, the six (6) members of the City Council of the City of Pacific Grove shall be elected by-district in separate single-member districts. a) Members of City Council shall be elected in the electoral districts established by Section

2.70.020 of this Chapter, as may be subsequently reapportioned as provided by law.

Elections shall take place “by-district” as that term is defined in California Government Code § 34871, meaning one member of the City Council shall be elected from each district, by the voters of that district alone.
b) Except as provided in subdivision (c) of this section, the Council Member elected to represent a district must reside in that district and be a registered voter in that district, and any candidate for City Council must live in, and be a registered voter in the district in which he or she seeks election at the time nomination papers are issued, pursuant to California Government Code § 34882 and Elections Code § 10227. Termination of residency in a district by a Council Member shall create an immediate vacancy for that Council district unless a substitute residence within the district is established within thirty (30) days after the termination of residency.
c) Notwithstanding any other provision of this section, the Members of the City Council in office at the time the Ordinance codified in this chapter takes effect shall continue in office until the expiration of the full term to which elected and until a successor is qualified. Midterm vacancies in a City Council seat elected at-large shall be filled from the City at-large.

At the end of the term of each Council Member elected at-large that Council Member’s successor shall be elected by-district in the districts established in Section 2.70.020.

Section 2.70.020 – City Council Districts and District Election Sequence.

The six (6) members of the City Council of the City of Pacific Grove shall be elected “by-district” in the districts shown and numbered on the map titled “City of Pacific Grove City Council District Map”, attached hereto as Exhibit 1 and incorporated herein by this reference, a copy of which shall be on file at all times in the City Clerk’s office.

In 2026 and every four (4) years thereafter, the following three (3) City Council districts shall be elected by-district at the general municipal election: District One (1), District Three (3), and District Five (5). In 2028, and every four (4) years thereafter, the following three (3) City Council districts shall be elected by-district at the general municipal election: District Two (2), District Four (4), and District Six (6).

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Section 2.70.030 – Adjustment of District Boundaries.

Pursuant to Elections Code § 21621, as it may be amended from time to time, the City Council shall adjust the boundaries of any or all of the City Council Districts following each decennial federal census to ensure that the districts comply with all applicable provisions of law.

Section 2.70.040 – Vacancies.

Any mid-term vacancy in a City Council district shall be filled in accordance with Section 12 of the Charter of the City of Pacific Grove, only by an eligible resident of the district.

Section 2.70.050 – Directly-elected Mayor.

The Mayor of the City of Pacific Grove shall continue to be directly elected by the voters of the City as set forth in Section 11 of the Charter of the City of Pacific Grove.

Section 2.70.050 – Effective Date.

This Ordinance shall be in full force and effect from and after thirty (30) days following its adoption in accordance with law.

Section 2.70.060 – Severability.

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Pacific Grove hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact any one or more sections, subsections, clauses, or phrases be declared invalid.

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Cypress
Av
W
e
alnut
St
Cedar St
S
e
v
ente
en Mile
Dr
Coral St
Del Monte
Blvd
David Ave Ransford
Ave
Seaview Ave
Marino Pines Rd
Sinex Ave
Montecito Ave
Buena
Vista
Ave
Presidio Blvd
Pied
m
o
nt Ave
Patterson
Ln
Pine Ave
Heacock Ave
Dennett St
Grove
Acre
Ave
Asilo
mar Ave
Jewell Ave
Crocker Av
e
Lighthouse Ave
Junipero Ave
1st
St
Rosemont Ave
Pacific Ave
Fountain
Ave
13th
St
Carmel Ave
12th
St
Eardley Ave
8th
St
19th
St
National Demographics Corporation, March 24, 2025
g
Election Sequence:
2026 Election: Districts 1, 3, 5
2028 Election: Districts 2, 4, 6
Pacific Grove
2024-2025 Districting
©2021 CALIPER
PGCC 4-2-25

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101 Numbered
District 1
Total Pop 2,443
Deviation from ideal -78
% Deviation -3.09%
% Hisp 10.8%
% NH White 77%
% NH Black 2%
% Asian-American 6%
Total 1,941
% Hisp 4%
% NH White 88%
% NH Black 3%
% Asian/Pac.Isl. 5%
Total 1,919
% Latino est. 7%
% Spanish-Surnamed 6%
% Asian-Surnamed 2%
% Filipino-Surnamed 1%
% NH White est. 76%
% NH Black 14%
Total 1,347
% Latino est. 6%
% Spanish-Surnamed 5%
% Asian-Surnamed 1%
% Filipino-Surnamed 1%
% NH White est. 77%
% NH Black 14%
Total 1,814
% Latino est. 6%
% Spanish-Surnamed 6%
% Asian-Surnamed 2%
% Filipino-Surnamed 1%
% NH White est. 77%
% NH Black est. 2%
ACS Pop. Est. Total 2,357
age0-19 11%
age20-60 40%
age60plus 48%
immigrants 13%
naturalized 64%
english 86%
spanish 3%
asian-lang 4%
other lang 7%
Language Fluency Speaks Eng. "Less than Very Well" 4%
hs-grad 37%
bachelor 34%
graduatedegree 25%
Child in Household child-under18 10%
Pct of Pop. Age 16+ employed 53%
income 0-25k 11%
income 25-50k 15%
income 50-75k 15%
income 75-200k 37%
income 200k-plus 23%
single family 66%
multi-family 34%
rented 54%
owned 46%
Total population data from the 2020 Decennial Census.

Surname-based Voter Registration and Turnout data from the California Statewide Database.

Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2018-2022 5-year American Community Survey and Special Tabulation data. 2 2,559
38 1.51%
13%
73%
1%
9%
1,892
7%
84%
2%
6%
1,737
7%
6%
2%
1%
87%
2%
1,225
6%
5%
2%
1%
88%
2%
1,577
7%
7%
2%
1%
88%
2%
2,292
18%
43%
40%
14%
74%
87%
2%
5%
7%
3%
39%
33%
25%
19%
52%
11%
14%
17%
39%
19%
67%
33%
48%
52%
3 2,385
-136
-5.39%
15%
71%
2%
7%
2,060
7%
84%
1%
7%
1,618
10%
9%
3%
2%
82%
2%
1,135
8%
7%
2%
2%
85%
2%
1,518
8%
8%
2%
2%
84%
2%
2,642
15%
52%
33%
12%
52%
86%
4%
4%
6%
1%
34%
26%
36%
16%
59%
10%
10%
16%
44%
19%
65%
35%
60%
40%
4 2,564
43 1.71%
12%
75%
1%
8%
1,953
10%
81%
1%
6%
1,856
7%
7%
3%
1%
88%
1%
1,351
6%
5%
2%
1%
89%
1%
1,701
6%
6%
2%
1%
89%
1%
2,532
19%
48%
34%
12%
55%
87%
2%
5%
6%
1%
36%
29%
33%
21%
57%
11%
8%
16%
43%
21%
78%
22%
49%
51%
5 2,585
64 2.54%
22%
60%
2%
12%
2,000
23%
66%
1%
9%
1,669
12%
10%
5%
1%
83%
0%
1,102
10%
9%
4%
1%
85%
0%
1,478
12%
11%
3%
1%
84%
0%
2,696
23%
56%
22%
14%
81%
72%
13%
2%
12%
4%
45%
21%
24%
28%
60%
6%
14%
17%
47%
17%
65%
35%
50%
50%
6 2,589
68 2.70%
14%
68%
3%
11%
1,964
12%
78%
1%
9%
1,710
11%
10%
4%
1%
84%
0%
1,149
9%
8%
3%
1%
86%
1%
1,527
7%
7%
5%
1%
86%
1%
2,584
21%
41%
37%
14%
79%
79%
8%
2%
10%
4%
40%
30%
25%
24%
45%
6%
12%
11%
52%
18%
66%
34%
42%
58%
Total
15,125
204

8.09%
14%
71%
2%
9%
11,809
11%
80%
2%
7%
10,509
9%
8%
3%
1%
83%
3%
7,310
7%
7%
3%
1%
85%
3%
9,615
8%
7%
3%
1%
84%
1%
15,105
18%
47%
35%
13%
68%
83%
5%
4%
8%
3%
38%
29%
28%
19%
54%
9%
12%
15%
44%
20%
68%
32%
51%
49%
03/06/2025 9:21 Page 1 of 1
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2022)
Voter Turnout
(Nov 2022)
Voter Turnout
(Nov 2020)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats
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Agenda No. 7 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: April 02, 2025
SUBJECT: David Avenue Street Rehabilitation – Award of Contract and Budget Modification
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Hold second reading and adopt an ordinance amending the Operating and Capital Projects Budget for FY24/25.

DISCUSSION
There were no changes between the first and second readings on this ordinance. The City Clerk's office caused a summary of this ordinance to be published on March 27, 2025.

As an element of the FY22/23 Capital Improvement Plan, the City Council a project to address the deteriorating pavement conditions on David Avenue from Devisadero Ave to Forest Ave. This segment of roadway is currently in "poor " condition with a Pavement Condition Index rating of 48. This segment serves as a main arterial in and out of the City and provides access to local schools, neighborhoods and commercial/shopping areas.

The northbound lane poses a constant repair problem for Public Works Crews. Chunks of pavement are frequently dislodged from the road creating potholes and road hazards. The underground moisture and heavy traffic volumes further deteriorate road conditions. Public Works maintenance crews regularly perform hot mix patches on this segment of roadway, this merely serves as a temporary fix and is not a long-term solution; rehabilitation is needed.

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 the sewer lines on David Avenue are in a deteriorated state and in need of replacement, from Devisadero to Forest Ave. 350 linear feet of deteriorated sanitary sewer main will be replaced and upsized from 6” vitrified clay pipe to 8” PVC.

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Competitive Bidding:

Process Construction documents were completed in January of 2025 and a request for proposals was issued. On February 20, 2025 the bid period closed. Seven (7) bids were received:

Contractor Base Bid
Monterey Peninsula Engineering $480,560
Coastal Paving & Excavating $530,910
Precision Grade $563,195
Graniterock Company $594,740
Tri-Valley Excavating Co., Inc. $688,278
The Don Chapin Co., Inc. $706,165
JMS Cement Contractors Inc. $708,510

Monterey Peninsula Engineering (MPE) has been qualified as the lowest, responsible bidder. 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 FY24/25 David Avenue Street Rehabilitation Project bid includes:

Reconstruction of 18,600 SF of deteriorated pavement
Reconstruction of 400 SF of sidewalk
Construction of 60 LF of curb and gutter
Replacement of 350 LF of sewer main line
Construct 760 LF of 5’ wide AC Walkway, from David sidewalk to Forest curb ramp Construct 2,600 LF of 8’ wide AC Walkway, From David sidewalk, through the park to Morse Drive
Construction Schedule:

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

The City has obtained the necessary permits from the California Department of Transportation (Caltrans) as Caltrans operates the adjoining road segment, State Route 68, and the signal light at this intersection. As part of the project, the City will be removing and replacing Caltrans traffic loops that control the signal.

This project has numerous components, so coordination with Caltrans, the contractor, and the City will be crucial for the project's success. To ensure this success, it is anticipated that this section of David Avenue, from Seaview to Forest, will be closed during the sewer, storm drain, and resurfacing portions of the project.

When a schedule is developed with the Contractor and Caltrans, City staff will communicate this to the public through social media, the City Manager’s Summary, and at City Council, Boards and Commission meetings. We will also alert the City of Monterey’s Public Works team so they are aware of the closures and the work schedule.

Agreement & Timing
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Agreement & Timing
The standard CJPIA and City Attorney’s Office approved construction agreement template will be harnessed. The agreement will not be routed until after the second read of the Ordinance is adopted formally authorizing the funds.

OPTIONS
N/A
FINANCIAL IMPACT:

The project was initially funded with a $400,000 budget from Measure X.

During engineering, CCTV inspections of the underground sewer infrastructure revealed the need for sewer rehabilitation. To protect the longevity of the roadway investment, staff requested—and the City Council approved—an additional $156,000 in Sewer Funding to address the deteriorated infrastructure.

As part of the mid-year budget process, following the standard practice at the time, the Measure X budget was reduced to $266,157 to align with anticipated expenditures for that year, with the intent to restore the original budget in a future fiscal year. However, due to delays in obtaining required permits from Caltrans, staff deferred the budget adjustment until actual project costs could be determined through the competitive bid process, which has now concluded.

Staff is now requesting an additional $267,000 to cover construction, contingency, and any remaining in-field engineering and construction management needs.

Fund Current Budget Proposed Amendment Total
17, Measure X $266,157 $267,000 $533,157
76, Sewer Fund $156,000 N/A $156,000
Total $689,157
To date, $59,364.51 has been spent on engineering.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Budget Amendment
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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) 2024-25
FACTS

1. The City Council approved the Fiscal Year 2024-25 Budget on June 19, 2024.

2. It is customary to amend the budget to adjust revenues and expenditures to reflect updated information since the adoption of the Fiscal Year 2024-25 Budget.

3. The City Manager is recommending amendments to the Fiscal Year 2024-25 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 2024-25 to increase the Measure X funding allocation to the Davide Avenue Street Rehabilitation Project (CIP23-03) by $267,000 to allow for the rehabilitation of deteriorated road and sewer infrastructure.

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
17 Measure X $(267,000)
SECTION 3. The Fiscal Year 2024/25 estimated fund balances based on this adjustment, are referenced herein:

Fund Beginning Fund
Balance
Revenue FY 24/25 Expenditures
FY 24/25
Preliminary Estimated
Ending Fund Balance
17 $1,036,890 $788,815 $1,197,000 $628,705
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SECTION 4. The David Avenue Street Rehabilitation Project (CIP23-03) is funded from two funding sources, Measure X and the Sewer Fund, as noted below. This budget amendment authorizes an additional $267,000 from Measure X to amend the budget as follows:

Fund Funding Source Approved Budget Proposed
Amendments
TOTALS
17 Measure X $266,157 $267,000 $533,157
76 Sewer $156,000 N/A $156,000
PROJECT TOTAL $689,157
SECTION5. In accord with Article 15 of the City Charter, this ordinance shall become effective upon adoption hereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 19th day of March, 2025, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
________________________
NICK SMITH, Mayor
ATTEST:
_________________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_________________________________
BRIAN A. PIERIK, City Attorney
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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: Nick Smith, Mayor
MEETING DATE: April 02, 2025
SUBJECT: Appointments to Boards, Commissions, and Committees CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve appointments to Boards, Commissions, Committees as follows:

Architectural Review Board: Martin Sublett
Library Board: Meganne Yeoman

DISCUSSION
City committees play an important role in our city government. We are fortunate to have many highly qualified residents willing to serve on our committees.

I’ve used information gleaned from many sources to select these appointments: applications, resumes, personal contacts, observations, and feedback from City staff and residents. I’ve taken into consideration demonstrated commitment to the City and fit to the committee’s mission.

Terms for committee positions are 4 years for Charter and 2 years for committees. Terms of office begin February 1 and end January 31 of the respective year. Mayoral appointments to City committees must be confirmed by Council (City Charter, Art. 26).

Appointments for confirmation are as follows:

Architectural Review Board: Martin Sublet
Library Board: Meganne Yeoman

OPTIONS
None.

FINANCIAL IMPACT:

There is no fiscal impact on appointments to Boards, Commission, and Committees.

GOAL ALIGNMENT: Not Applicable.

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Attachments
Redacted Applications
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Agenda No. 9 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Brian Anderson, Commander
MEETING DATE: April 02, 2025
SUBJECT: 2025 Ford Police Interceptor Vehicle Purchase
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Authorize the City Manager to award a purchase order with Cypress Coast Ford of Seaside for the purchase of (1) 2025 Ford Police Interceptor Vehicle in an amount not to exceed $64,927.28.

DISCUSSION
Police vehicles are integral to the City’s fleet, serving as indispensable tools for the police department's daily operations. The Pacific Grove Police Department currently maintains a diverse fleet comprising nine marked patrol vehicles. This lineup includes (4) Ford Explorers, (2) Dodge Chargers, (1) Ford Crown Victoria, (1) Chevrolet Tahoe, and (1) Ford Expedition.

The City has spent tens of thousands of dollars to repair the aging fleet in the past year?and needs to purchase a new vehicle. The purchase of a new patrol vehicle will allow for replacing an older unit with high mileage in the fleet, specifically Unit 6. According to the California Department of General Services, the recommended mileage for replacing law enforcement vehicles is 100,000 miles after 60 months. Below is an approximate mileage chart of the Police Department's current fleet:

UNIT # YEAR VEHICLE TYPE APPROX. MILEAGE
1 2015 Ford Explorer 100,000
2 2015 Ford Explorer 95,000
3 2024 Ford Explorer 1,000
4 2018 Dodge Charger 53,000
5 2015 Ford Explorer 110,000
6 2010 Ford Crown Victoria 100,000
7 2017 Dodge Charger 87,000
8 2004 Ford Expedition 70,000
9 2023 Chevrolet Tahoe 5,000
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The City attempted to receive (3) dealership quotes for purchasing one 2025 Ford Police Interceptor.

Due to high demand and low inventory, two of the three dealerships did not have a vehicle for purchase, could not provide a quote, and did not have an in-stock estimated availability date. Outfitting of the vehicle (including lights, sirens, push bumpers, radio, wireless equipment, mobile data computer docking station, partition equipment storage, cabling, shotgun, and rifle mounts) is separate from the purchase price of the vehicle and will be sent out to bid.

DEALERSHIP VEHICLE QUOTE
Frontier Ford Unavailable
The Ford Store Morgan Hill Unavailable
Cypress Coast Ford $64,927.28
Cypress Coast Ford currently has a vehicle in stock, and based on this availability, the staff recommends that the award be granted to Cypress Coast Ford.

OPTIONS

1. Do not authorize the agreement with Cypress Coast Ford

2. Authorize the?purchase of the 2025 Ford Police Interceptor through Cypress Coast Ford

3. Take no action
FINANCIAL IMPACT:

The City Council approved a capital outlay project totaling $85,000.00 in the FY 2024/25 Annual Budget to purchase a new patrol vehicle and install public safety equipment. Funding has been allocated for this project in the Police Department FY 2024/25 Operations Budget.

FOCUSED PRIORITY AREA: Not Applicable.

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Agenda No. 9 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Matthew Mogensen, City Manager
MEETING DATE: April 02, 2025
SUBJECT: Direction to use WorkPlan Focus Areas, Policy Statements, and Goals for the Development of the FY 25-26 / 26-27 Budget
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
It is recommended that the Council direct the use of the FY25-26/26-27 WorkPlan Focus Areas, Policy Statements and Goals in the Development of the Budget.

DISCUSSION
The Council has initiated and completed several tasks in the development of the WorkPlan. These Tasks include the identification of Four Focus Areas, including (1) Fiscal Sustainability (2) Infrastructure, (3)Environmental Stewardship, and (4) Community Development. The Council has also completed the development of Policy Statements and Goals for each of the Focus Areas (please see the attached).

Public comments have been solicited throughout the process.

With the Council direction, staff will use the completed portions of the Workplan while developing the milestone projects to implement the WorkPlan. The completed WorkPlan, including Focus Areas, Policy Statements, Goals, and milestone projects, will be submitted as a part of the budget process.

The milestone projects for each Focus Area will include an allocation of resources and estimated completion dates for each if the implementing projects. As the budget and the WorkPlan are completed, they should be moved forward in tandem for periodic reviews.

To assist the staff in the development of milestone projects, Council members' submissions of policy statements and goals will be distributed. Several implementation tasks were included with these submissions. Recommendations from the Boards, Commissions, and Committees, and the list of City projects previously initiated but remain uncompleted.

OPTIONS
The Council could modify the completion of the process.

FINANCIAL IMPACT:

There is no direct impact associated with completing the development of the WorkPlan. However, PGCC 4-2-25

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There is no direct impact associated with completing the development of the WorkPlan. However, completion of this process will guide the development of the budget in the next cycle.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Listing of Focus areas, Policy and Goals
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Recommended Policy Value Statements and Goals by Focus Area Draft March 20, 2025
Financial Sustainability
Policy Value Statement: Pacific Grove manages its financial resources to ensure the long-term delivery of municipal services
Goal 1: Identify a program to reduce unfunded liabilities Goal 2: Review and revise reserve policies to meet equipment and facility requirements.

Infrastructure
Policy Value Statement: Pacific Grove prioritizes the provision of facility, human, and technology infrastructure that enhances the quality of life for residents and businesses Goal 1: Complete a five-year capital improvement program to address the completion of priority facility projects (sidewalks, streets, water, wastewater, and parks) Goal 2: Invest in technology and workforce systems
Environmental Stewardship
Policy Value Statement: Pacific Grove cares for and protects its natural resources and amenities Goal 1: Complete Climate Action and Adaptation Efforts
Goal 2: Protect and Preserve the Natural Resources of Pacific Grove Community Development
Policy Value Statement: Pacific Grove strategically implements programs to promote housing and economic opportunities.

Goal 1: Explore options for an affordable housing project and partner opportunities Goal 2: Review Planning and Permit processes to ensure barriers to housing and business development are eliminated
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Agenda No. 9 D

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Nick Smith, Mayor
MEETING DATE: April 02, 2025
SUBJECT: Endorse the proposed Appointment of Council Member Cynthia Garfield as City Council Liaison to the Friends of Chautauqua Hall, a committee of the Heritage Society of Pacific Grove
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Endorse the proposed Appointment of Council Member Cynthia Garfield as City Council Liaison to the Friends of Chautauqua Hall, a committee of the Heritage Society of Pacific Grove

DISCUSSION
None.

OPTIONS
None.

FINANCIAL IMPACT:

None.

GOAL ALIGNMENT: Not Applicable.

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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: Matt Mogensen, City Manager
MEETING DATE: April 02, 2025
SUBJECT: Introduction of an Ordinance Amending the City’s 2024-25 Budget, removing the allocation of one Program Manager Classification in the City Manager’s Office and replacing with one Deputy City Manager Classification in the City Manager’s Office
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.

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

4. DISCUSSION
On March 5, 2025, the City Council considered and approved the Fiscal Year 2024-25 Mid-Year Budget Modifications and First Reading of an Ordinance Amending the Fiscal Year 2024-25 Budget. Part of that approval was the allocation of a Program Manager to the City Manager’s Office for the purposes of providing for economic development, communications and outreach and special projects needs. The allocation was accomplished through reassigning unspent budget from economic development consultant services and discretionary spending to personnel expenses and adding to an existing .25 unfilled economic development staff allocation. This equated to approximately $100,000 annually. The remainder of the funding was to come from additional general fund monies to be budgeted in the next fiscal year. The total cost for the new position was to be approximately $125,000 annual top step salary plus benefits = approx. $160,000 total for this new position. This action was put in motion following direction from the City Council in December of 2024 to reallocate economic development funds to hiring a person to provide these much-needed services. This proposal put forth for this position did not have the benefit of fully analyzing additional information that came forth late in the development of the Mid-Year Budget Modifications though.

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On February 19, 2025, the City Council held a study session and received a presentation on a City-Wide Organizational Diagnostic report performed by Municipal Resource Group (MRG).

This report contained findings that identified gaps in service and operational challenges at the department level. In the City Manager’s Office the report found there is limited focus on economic development and tourism and we lack the capacity to achieve a cohesive communications program for our residents and businesses. We also need to improve our ability to provide employee engagement, team-building and enrichment activities, create positive culture and employee retention. In addition, the department is not able to make proactive progress on special projects and other needed proactive activities to move the organization forward and meet community, City Council, and organizational needs. Ultimately, the report recommended that a senior manager was needed to address deficiencies.

Following further review of the findings of the MRG report and discussion on how we move forward to address issues identified, the idea of adding a new Program Manager was found to be not the correct solution. We are better served by taking a step back and adjusting the classification level we are seeking to allow for additional needs to be met and greater flexibility to meet current and near future needs.

It is now recommended that the City Council consider adjusting the new staffing allocation of a Program Manager for the City Manager’s Office to a classification already existing in the City’s Classification Plan titled Deputy City Manager. This position currently exists on the City’s published salary schedule and can be used to better address needs in economic development, communications and outreach, special projects, employee engagement and enrichment activities, further program and project support to accomplish community and City Council goals, proactive addressing of issues and concerns, citizen responsiveness, strategy development and implementation, other higher level needs that arise daily, and the ability to manage programs and city divisions as the organization needs.

The intention in hiring for this position will be to open the recruitment to internal candidates to provide an opportunity for upward career growth and development for employees. This would additionally allow other employees to have an opportunity to achieve upward movement and greater job satisfaction. These types of opportunities are typically very limited in smaller organizations such as ours. When possible opportunities for career growth for employees go a long way to retaining institutional knowledge, creating great culture and providing individual job fulfillment.

The salary range for the Deputy City Manager classification ranges from $138,486.40 annually to $185,577.60 annually. An internal promotion has the opportunity of additional reorganization modifications that could lower the overall costs to the General Fund. However, that will be better known after a successful candidate is chosen and we can evaluate the budget impacts in next year’s budget. Also, with this being an internal recruitment, the anticipated starting salary will not be the top of the salary range scale, and benefit costs are already included in the existing budget.

This action would eliminate the recently approved staff allocation of one Program Manager in the City Manager’s Office and add one Deputy City Manager to the allocation plan in the City Manager’s Office. No additional funds are needed for this fiscal year, but next budget year we will allocate $185,577.60 (for budgeting purposes we budget at top step).

Pursuant to Charter Article 15, approval and amendment to the City budget must be adopted by the Council by ordinance.

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OPTIONS
Provide alternative direction.

FINANCIAL IMPACT:

Previously, the City Council approved the allocation of one Program Manager position to the City Manager’s Office. The position was to be funded in 2024-25 from budget savings. The top step salary for the Program Manager position is $123,073.60 annually plus benefits with a total cost of approximately $160,000.

This action would eliminate the previously approved Program Manager position and allocate one Deputy City Manager position. This position can be funded through budget savings through the remaining in fiscal year 2024-25. In FY 2025-26 a total budget for this position will be $185,577 at the top step of the existing salary range plus benefits with a total budgeted amount of approximately $240,000. The actual cost will depend on what placement in the salary step range the incumbent will be placed at.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Budget Amendment Ordinance
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1 ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE AMENDING THE OPERATING BUDGET FOR FISCAL YEAR (FY) 2024-25 FACTS

1. The City Council approved the Fiscal Year 2024-25 Budget on June 19, 2024, and a Mid-Year Modification on March 5, 2025.

2. It is customary to amend the budget to updated information and adjust to unanticipated changes since the adoption of the Fiscal Year 2024-25 Budget.

3. The City Manager is recommending amendments to the adopted 2024-25 Fiscal Year Budget (as amended by the Mid-Year Budget Modifications approved by the Council on March 5, 2025).

4. The Council has determined it is appropriate to amend the approved 2024-25 Fiscal Year Budget.

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.

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 General Fund is amended for the items listed below.

Which by reference are incorporated as set forth in its entirety.

Proposed Budget
Adjustment
Amount
Eliminate Allocation of One
Program Manager
Funded by 2024/25 budget savings to
Economic Development budget.

Allocate one Deputy City
Manager Classification to the
City Manager’s office
Funded by 2024/25 budget savings to
Economic Development budget.

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2 SECTION 3. In accord with Article 15 of the City Charter, this ordinance shall become effective upon adoption hereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 16th day of April 2025, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN A. 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: Fred Marsh, Administrative Services Director
MEETING DATE: April 02, 2025
SUBJECT: Annual Financial Reports and Audit
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the reports noted in this report.

DISCUSSION
The City contracted with The Pun Group, a firm of independent certified public accountants, to audit the City of Pacific Grove’s financial statements for the fiscal year ending June 30, 2024. The audit was performed in conformance with Generally Accepted Auditing Standards (GAAS).

A copy of the following reports for Fiscal Year 2023-24 are attached for the Board’s review:

Annual Comprehensive Financial Report (ACFR)
Popular Annual Financial Report (PAFR)
Report on Agreed-Upon Procedures Applied to the Appropriations Limit Schedule (GANN Limit) for FY 24-25
Transportation Safety and Investment Plan Account Fund (TAMC Measure X) Report Auditor’s Required Communication (AU-C 260)
The PAFR is new for Fiscal Year 2023-24 and provides an executive summary of the ACFR, including financial statements for the General Fund and the City’s other major and enterprise funds. The City’s General Fund met the Board adopted policy for reserves for Fiscal Year 2023-24 of 35% of its annual expenditures. The Independent Auditor's Report, indicates that the financial statements in the ACFR present fairly, in all material respects, the financial position of the City. This “unmodified” opinion is the optimal opinion to receive from an external auditor.

There was no single audit report for fiscal year 2023-24 as the City received less than $750,000 for FY 23-24 (increasing to $1 million for FY 24-25). There were no recommendations for improvements in internal controls noted by the auditors, no prior period adjustments or exceptions noted in the City’s calculation of the GANN limit. Both the ACFR and PAFR have been submitted to the Government Finance Officers Association (GFOA) for consideration as part of their awards programs, for which the Agency has won awards in prior years for its ACFR.

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OPTIONS
Receive the reports.

FINANCIAL IMPACT:

There is no financial impact associated with receiving this report.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
2024 Pacific Grove City of Measure X FINAL
ACFR Pacific Grove FY 23-24
PAFR Pacific Grove FY 23-24
2025 Pacific Grove, City of GANN FINAL Report
Management Controls Letter
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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, 2024
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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 4-2-25

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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, 2024 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, 2024, 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, 2024, 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

Page 2 ends

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

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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 5, 2024, 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 5, 2024
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FINANCIAL STATEMENTS
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ASSETS
Cash and investments $ 983,804
Intergovernmental receivable 196,581
Total assets $ 1,180,385

LIABILITIES,

AND FUND BALANCE
Liabilities:

Accounts payable $ 143,495
Total liabilities 143,495
Fund Balance:

Restricted 1,036,890
Total fund balance 1,036,890
Total liabilities, and fund balance $ 1,180,385
City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
June 30, 2024
Balance Sheet
See accompanying Notes to the Financial Statements.
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REVENUES:

Sales and use tax $ 785,820
Investment earnings 40,135
Total revenues 825,955
EXPENDITURES:

Capital outlay 943,822
Total expenditures 943,822
NET CHANGE IN FUND BALANCE (117,867)
FUND BALANCE:

Beginning of year 1,154,757
End of year $ 1,036,890
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, 2024
See accompanying Notes to the Financial Statements.
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City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements
For the Year Ended June 30, 2024
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, 2024
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 City’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 City’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, 2024
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 2019/20 1.37% 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% Engineering News Record construction index FY 2023/24 4.93% Index-adjusted maintenance of effort requirement $ 1,076,416 Current year eligible expenditures $ 1,657,779
Compliant (Yes or No) Yes
Total expenditures from the General Fund for street and highway purposes for the fiscal year ended June 30, 2024 were $1,657,779 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:

Sales and use tax $ 753,178 $ 828,000 $ 785,820 $ (42,180) Investment earnings 7,500 7,500 40,135 32,635
Total Revenues 760,678 835,500 825,955 (9,545)
EXPENDITURES:

Capital outlay 786,088 1,806,924 943,822 863,102
NET CHANGE IN FUND BALANCE $ (25,410) $ (971,424) (117,867) $ 853,557 FUND BALANCE:

Beginning of year 1,154,757
End of year $ 1,036,890
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2024
Transportation Safety and Investment Plan Account Fund
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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, 2024, and the related notes to the financial statements, which collectively comprise the Fund’s financial statements, and have issued our report thereon dated December 5, 2024.

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.

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

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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 5, 2024
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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, 2024.

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, 2024.

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.

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

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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 and 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.

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

Page 3 ends

21 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 5, 2024
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City of Pacific Grove
Transportation Safety and Investment Plan Account Fund
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
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.

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City of Pacific Grove
California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.org
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City of Pacific Grove,
California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Prepared by the Finance Department
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City of Pacific Grove
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ........................................................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting ................................................................... vi Organization Chart ....................................................................................................................................................... vii Officials of the City of Pacific Grove, California ........................................................................................................ viii Map of the City of Pacific Grove, California ................................................................................................................ ix

FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements .................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ........................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................................ 22 Statement of Activities .................................................................................................................................... 24 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................ 31 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... 32 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................... 33 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities and Changes in Net Position .......................................... 34 Proprietary Fund Financial Statements:

Statement of Net Position ......................................................................................................................... 36 Statement of Revenues, Expenses, and Changes in Net Position ............................................................. 39 Statement of Cash Flows ........................................................................................................................... 40 Index to Notes to the Basic Financial Statements .................................................................................................. 45 Notes to the Basic Financial Statements ................................................................................................................ 47 Required Supplementary Information (Unaudited):

Notes to the Budgetary Comparison Schedule ....................................................................................................... 85 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

General Fund ................................................................................................................................................... 87 RSTP Special Revenue Fund ........................................................................................................................... 88 CDBG Grant Special Revenue Fund ............................................................................................................... 89 Schedule of Proportionate Share of Net Pension Liability .................................................................................... 90 Schedule of Contributions – Pensions .................................................................................................................... 92 Schedule of Changes in Net OPEB Liability and Related Ratios:

Retiree Healthcare Plan ................................................................................................................................... 94 PGCC 4-2-25

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City of Pacific Grove
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Capital Improvement Projects Fund ................................................................................................................ 99 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................. 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 112 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Carillion Special Revenue Fund ............................................................................................................. 121 Environmental Enhancement Special Revenue Fund ............................................................................. 122 State Franchise PEG Special Revenue Fund ........................................................................................... 123 Library Building & Equipment Special Revenue Fund .......................................................................... 124 Museum Improvement Special Revenue Fund ....................................................................................... 125 Downtown Business District Special Revenue Fund .............................................................................. 126 Hospitality Improvement District Special Revenue Fund....................................................................... 127 Library Book Special Revenue Fund ...................................................................................................... 128 Fire Emergency Equipment Special Revenue Fund ................................................................................ 129 American Rescue Plan Act Special Revenue Fund ................................................................................. 130 Local Streets and Roads Special Revenue Fund ..................................................................................... 131 Gas Tax Special Revenue Fund .............................................................................................................. 132 Chautauqua Hall Special Revenue Fund ................................................................................................. 133 Lighthouse Maintenance & Improvement Special Revenue Fund .......................................................... 134 Senior Housing Special Revenue Fund ................................................................................................... 135 CalHOME Reuse Special Revenue Fund ................................................................................................ 136 Small Business Grants Special Revenue Fund ........................................................................................ 137 General Plan Maintenance Fee Special Revenue Fund ........................................................................... 138 Poetry Promotion Special Revenue Fund ............................................................................................... 139 Yount Income Special Revenue Fund ..................................................................................................... 140 Public Safety Augmentation Special Revenue Fund .............................................................................. 141 Supplemental Law Enforcement Special Revenue Fund ........................................................................ 142 Vehicle Abandonment Special Revenue Fund ........................................................................................ 143 Strong Disbursements Special Revenue Fund ........................................................................................ 144 Housing Special Revenue Fund .............................................................................................................. 145 Coastal Conservency Grant Special Revenue Fund ................................................................................ 146 Operating Grant Special Revenue Fund .................................................................................................. 147 RMRA Special Revenue Fund ................................................................................................................ 148 Traffic Congestion Relief Special Revenue Fund ................................................................................... 149 McIndoo Donation Special Revenue Fund ............................................................................................. 150 ASBS Special Revenue Fund .................................................................................................................. 151 Library Endowment Trust Permanent Fund ............................................................................................ 152 Cemetery Endowment Trust Permanent Fund ........................................................................................ 153 Yount Trust Permanent Fund .................................................................................................................. 154 PGCC 4-2-25

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City of Pacific Grove
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):

Internal Service Funds
Combining Statement of Net Position ........................................................................................................... 157 Combining Schedule of Revenues, Expenses, and Changes in Net Position ................................................ 159 Combining Statement of Cash Flows ............................................................................................................ 160 STATISTICAL SECTION (Unaudited)
Financial Trends:

Net Position by Component .................................................................................................................................. 164 Changes in Net Position ........................................................................................................................................ 166 Fund Balances of Governmental Funds ................................................................................................................ 170 Changes in Fund Balances of Governmental Funds .............................................................................................. 172 Revenue Capacity:

General Governmental Tax Revenue by Source ................................................................................................... 174 General Fund Revenues by Sources ...................................................................................................................... 175 Net Assessed Value of Taxable Property .............................................................................................................. 176 Direct and Overlapping Property Tax Rates ......................................................................................................... 177 Principal Property Tax Owners ............................................................................................................................. 178 Property Tax Levies and Collections .................................................................................................................... 179 Debt Capacity:

Ratios of Outstanding Debt by Type ..................................................................................................................... 180 Ratios of General Bonded Debt Outstanding ........................................................................................................ 182 Computation of Direct and Overlapping Debt ...................................................................................................... 183 Legal Debt Margin Information ............................................................................................................................ 185 Pledged-Revenue Coverage .................................................................................................................................. 186 Demographic and Economic Information:

Demographic and Economic Statistics .................................................................................................................. 188 Employees by Industry .......................................................................................................................................... 189 Number of City Employees by Department. ......................................................................................................... 190 Operating Information:

Operating Indicators by Function. ......................................................................................................................... 191 Capital Asset Statistics by Function ...................................................................................................................... 192 Other reports:

Independent Auditors’ Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ......................................................................................................................... 193 PGCC 4-2-25

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i
City of Pacific Grove
300 Forest Avenue
Pacific Grove, California 93950
Telephone (831) 648-3100  Fax (831) 375-9863
January 20, 2025
Citizens and City Council,
The City of Pacific Grove (City) is submitting its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024, including an unmodified opinion from its independent auditors. State law and bond covenants require the City to obtain an annual audit of its financial statements. This annual report was prepared in accordance with general accepted accounting principles (GAAP). Internal controls have been established to provide reasonable assurance regarding the reliability of reporting and compliance with applicable laws and regulations. Management assumes responsibility for the contents in this report.

The ACFR is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the City’s organizational chart and a list of municipal officers and officials. The financial section includes management’s discussion and analysis (MD&A), government-wide financial statements, fund financial statements, notes to the financial statements, and required supplementary information, as well as the auditor’s report on the financial statements and schedules. The MD&A provides additional information regarding management of the City’s finances and should be read in conjunction with the transmittal letter. The statistical section includes selected financial and demographic information of the City.

Budgetary Controls
In accordance with the City’s Budget and Financial Management Policy, the City Manager recommends the budget and presents it to the City Council in May. After public input and discussion is received, the City Council may request modifications to the budget or introduce an ordinance adopting the budget. The City’s budget is then adopted by ordinance and becomes effective on July 1st of each fiscal year.

Budgetary controls are set at the department level and are maintained to ensure compliance with the budget approved by the Board. The City Manager or the Administrative Services Director has the discretion to transfer between activities.

City Council approval is required for any overall increase in the budget for any fund or changes to the Capital Improvement Program.

All governmental, enterprise, and internal service funds are appropriated annually. The governmental funds include general, special revenue, capital project, and permanent funds. The Annual Comprehensive Financial Report includes all financial activities of the City. Financial data for all funds through which services are provided by the City have been included in this report.

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ii
City Profile
The City of Pacific Grove is a small coastal community located in Monterey County that occupies just under three square miles, with a population of approximately 15,000 residents, with 56% of the adults having college degrees, and almost half of the population over the age of 50, with an average household income of approximately $120K. The City is situated on a peninsula which is bordered by Monterey, Pebble Beach, the Pacific Ocean, and the Monterey Bay with a County unemployment rate of approximately 7%. Pacific Grove has a very temperate climates all year round, with temperatures ranging from the 70’s in the late summer to the mid 40’s in the winter. Pacific Grove has over 1,300 registered historical homes built prior to 1926. The school district includes schools ranked as the highest in the Monterey area.

The City is home to many attractions and seasonal events, including:
• Point Pinos Lighthouse • Pacific Grove Golf Links • Good Old Days • Monarch Butterfly Sanctuary • Hopkins Marine Station • Big Sur Half Marathon • Asilomar State Beach • Pacific Grove Natural Museum • Christmas at the Inns • Lovers Point Park and Beach • Butterfly House • Butterfly Days City Government Structure and Services
The City is a Charter City which was incorporated in 1889. The City operates under the Council-City Manager form of government with a seven-member City Council elected by the citizens. The Mayor is directly elected to serve a two-year term and Council members are elected to alternating four-year terms. The Council has the authority to establish all laws and regulations, subject only to the limits of the City Municipal Code and State legislation.

The City Council appoints a City Manager to serve as the City’s chief administrative officer. The City Manager provides direction to all City departments; and ensures that all Council policies are implemented.

The City provides police protection, street, park and facility maintenance, recreational, planning, zoning, economic development, library, administrative and financial services for Pacific Grove. Fire protection services are provided through a contract with the City of Monterey. Additional services include sewer operations, a municipal golf course, cemetery, and a local water reclamation facility.

Long-Term Forecast
The City uses a five-year forecast to facilitate long-term fiscal planning. The City’s conservative forecast for the next five fiscal years should assist in navigating future economic challenges. To assist with long-term planning, the City incorporates a Pavement Management Study, an Information Technology Master Plan, and a Sewer Master Plan. Additional plans for future
improvements include a Facility Asset Management Study, and a Streets Policy. The fiscal policy of the General Fund recommends maintaining reserves of at least 35% of its annual expenditures.

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iii
Departmental Achievements
Despite the limited resources available, the City has developed an ambitious two year workplan for the fiscal years 2023-2025, including the following which address the City’s mission and vision noted on a previous page.

City Council
• Developed the City’s long-term goals.
• Protected the environment and quality of life for the City. • Adopted the annual operating and capital improvement budget.

City Manager
• Completed with IT Laserfiche Documents Management System implementation project. • Implemented several provisions of the recruitment and retention plan. • Negotiated successor MOUs for the General Employee and Management Employee Association.

Administrative Services
• Received an unmodified or “clean” opinions on various mandated audit reports. • Completed an updated cost allocation plan and development impact fee study. • Received awards for the City’s Annual Comprehensive Financial Statements and Budget.

Community Development
• Continued efforts on Housing Element, General Plan, and Zoning Amendments Update. • Updated the Community Development website to receive online applications for permits. • Continued code enforcement to protect health and offered next day building inspection services.

Economic Development
• Worked with the Chamber to assist on local business initiatives. • Facilitated meetings for the Economic Development Commission. • Oversaw the Façade Improvement Program.

Library
• Implemented with IT a new “Self-Checkout” system at the library. • Created monthly poetry programs.
• Increased outreach for seniors and schools with a new Outreach Vehicle.

Fire and Police
• Completed a Community Wildfire Protection Plan.
• Hosted two Citizen Police Academies.
• Implemented the FLOCK Camera System.

Public Works
• Substantially completed the FY 23/24 Street Rehabilitation projects. • Performed a substantial amount of road rehabilitation and repair. • Planted more than 150 trees throughout the City.

Recreation and Museum
• Reestablished Youth Center Afterschool Program for youth. • Implemented Youth Soccer Clinics, Soccer League and Track and Field. • Improved and streamlined the park and facility reservation process.

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iv
Local Economy
The City’s local economy is supported by residents, regional visitors, and a strong tourism base. In Fiscal Year 24/25, the City’s three core revenues: Property Tax, Sales Tax, and Transient Occupancy Tax (TOT) are anticipated to be stable; however slower growth is projected. The projected $10.3 million in property tax receipts are anticipated to return to more traditional growth rates because of higher mortgage interest rates. Sales and Use tax is projected to be approximately $6 million, which is slower than the 23/24 Fiscal Year due to a flattening in the consumer market. TOT is expected to grow to approximately $7 million.

In November of 2022, voters approved two ballot measures related to cannabis sales. This included gauging support to allow the establishment of one cannabis storefront; and the ability to levy a tax up to 6% of gross receipts on the sale of cannabis and cannabis products. In Fiscal Year 24/25, the City continued to work to develop a cannabis licensing program, with the goal of authorizing one retail license. Cannabis taxes were initially projected to yield $300,000 annually; however, $100,000 in revenues were included in the Fiscal Year 24/25 to reflect a partial year of operation. This estimate may be modified to reflect program implementation timelines.

Economic development and revitalization of the commercial corridors, particularly the downtown, will continue to be a focus for the City. The addition of a new 100-room boutique hotel in the downtown, the P.G.

Hotel, which is proposed to be operated by the Kimpton Hotel group, promises to bring much needed additional foot traffic to the downtown.

This new hotel is anticipated to significantly increase transient occupancy tax, property tax and sales tax revenues once the project is complete and occupancy commences. The hotel developers broke ground on the project and expect a 2-year construction phase.

Over the last few years, inflation has increased significantly. These inflationary rates, combined with limited affordable housing within Monterey County, continue to impact the local economy and the ability for employers to retain an adequate workforce. The draft Housing Element, which includes the City’s Regional Housing Needs Allocation (RHNA), has indicated that the City needs to plan for 1,125 affordable housing units. Some of the potential development efforts could be challenging due to the State’s current Water Cease and Desist Order. To emphasize its importance, the Council has made affordable housing an Area of Focus.

The limited local pool of prospective employees and the regional high cost of housing have also made it difficult for the City to attract and retain highly qualified staff. To assist, compensation packages are also balanced with the need to achieve fiscal sustainability.

Like most California municipalities, the City has challenges with rising CalPERS pension costs. To assist with cost-containment, employees in “classic” retirement plans have agreed to pay 3-5% of the employer’s share of pension costs, in addition to their regular pension contributions. In Fiscal Year 24/25, the unfunded liability payment is $4.5 million, with the increase over the prior year primarily due to lower than anticipated rate of return on CalPERS investments. The estimated higher contributions have been built into the multi-year forecast.

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v
Key Initiatives
The City Council adopted Areas of Focus, Goals and Milestones for 2023-2025, which included the following initiatives for which significant progress was made during Fiscal Year 2023-24:

Recreation Services:
• Implementation of the expanded services funded in FY 23/24 Infrastructure:
• Completion of the Facility Asset Management and Prioritization Study • Continuation of work to develop a Complete Streets Policy Environmental Stewardship:
• Completion of a Climate Action and Adaptation Plan
• Continuation of effort to Plant and Maintain Trees – Urban Canopy • Completion of the Biological Assessment for a George Washington Park Master Plan Update Financial Policies / Gann Limit
The City has established financial policies to provide guidance on several financial areas, including the following which are included as part of the adopted budget:

City Council Policy 400-6: Budget and Financial Management City Council Policy 400-5: Investments
City Council Policy 400-4: Fees, Charges and Cost Recovery The City’s Investments, General Fund Reserve levels, and Fee Schedule are in compliance with these policies as of the end of Fiscal Year (FY) 23-24. In addition, the City’s revenues for FY 2023-24 are well under the adopted Gann Limit for that fiscal year, which restricts the amount of tax proceeds that can be spent in a fiscal year.

Awards
The City has received from GFOA awards for excellence in reporting for its budget and ACFR. It has also received awards for its operating budget from the California Society of Municipal Finance Officers (CSMFO). These awards focus on providing high quality documents that are easy to understand by citizens, City Council, customers, stakeholders, regulators and other interested parties. The City will submit the FY 24-25 budget to GFOA and CSMFO and the FY 23- 24 ACFR to GFOA in accordance with their award programs.

Acknowledgements
We wish to recognize the City Council for their leadership, support and commitment to fiscal sustainability and long-term financial planning. We also express appreciation to all departments for providing sound fiscal management and their assistance with preparation of the ACFR and budget, with special thanks to the staff of the Finance Department who assisted with the preparation of both.

Respectfully submitted,
Fred Marsh
Administrative Services Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pacific Grove
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
vi
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City of Pacific Grove
Organization Chart
Fiscal Year 2023-2024

CITIZENS OF PACIFIC GROVE
Risk
Management
Local Water
Project
Lighthouse
Recreation
Sewer
Building
(Contract)
Golf Course
(Contract)
Cemetery
Code
Compliance
Environmental
Planning
Information
Technology
Housing Capital
Improvements Police Services
Planning
Bldgs., Grounds,
Streets, Eqpt.,
Forestry
Public Safety Finance /
Accounting
Museum
(Public/Private Partnership)
Community
Development
Department
Library
Fire
(Contract)
Police Public Works Administrative
Services
City Clerk
Human Resources
Volunteering
Boards and
Commissions City Attorney City Manager

CITY COUNCIL
vii
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City Of Pacific Grove
List Of Principal Officials
Fiscal Year Ended June 30, 2024
Elected Officials
Appointed Officials
Department Heads / Administrators
Administrative Services: Fred Marsh Chief of Police: Cathy Madalone City Clerk: Sandra Kandell Community Development: Karen Vaughn Human Resources: Leticia Livian Public Works: Daniel Gho Library Director: Rachel Gaither Fire (Contract): Andrew Miller Bill Peake
Mayor
Joe Amelio
Councilmember
Debby Beck
Councilmember
Lori McDonnell
Councilmember
Chaps Poduri
Councilmember
Nick Smith
Councilmember
Luke Coletti
Councilmember
Matt Mogensen
City Manager
Brian Pierik
City Attorney
viii
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Pacific Grove
Map of Pacific Grove and the
Monterey Bay Area
ix
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x
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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 the City Council of the City of Pacific Grove
Pacific Grove, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic 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 respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with 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. 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 opinions.

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.

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 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.

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

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2 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 auditing standards generally accepted in the United States of America 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 auditing standards generally accepted in the United States of America 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules – General Fund and Major Special Revenue Funds, the Schedule of Proportionate Share of Net Pension Liability, Schedule of Contributions - Pensions, and the Schedule of Changes in Net OPEB Liability and Related Ratios as listed in the table of contents be presented to supplement the basic financial statements. Such 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. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

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3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements 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 basic 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 basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 20, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. 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 City’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 City’s internal control over financial reporting and compliance.

Santa Ana, California
January 20, 2025
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5 Management Discussion and Analysis (Unaudited)
This discussion and analysis (MD&A) includes an overview of the City of Pacific Grove’s (City’s) financial activities and performance for the fiscal year ended June 30, 2024. This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which consists of three parts: (1) Government-Wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Basic Financial Statements.

This report also contains other supplementary information in addition to the basic financial statements themselves. The financial statements presented herein include all of the activities of the City and its component units. Please read the MD&A in conjunction with the transmittal letter, the basic financial statements, and the accompanying notes to those financial statements in the Annual Comprehensive Annual Report (ACFR).

Government-Wide Financial Statements
These provide readers with a broad view of the City’s finances, using the economic resources measurement focus and accrual basis of accounting. These accounting methods are similar to those used by private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, certain interfund receivables, payables, and interfund activity have been eliminated. An overview of the City’s functions associated with each classification is listed below.

Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public safety, public works, recreation, library, museum, and community development. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees.

Business-Type Activities – The City’s enterprise activities include cemetery, sewer, water reclamation and golf operations. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.

The Statement of Net Position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or declining. The Statement of Activities presents information showing how the net position changed during the recent fiscal year.

Fund Financial Statements
These provide readers with additional information about the City’s major funds, how services were financed in the short term, and fund balances available for financing future projects. Most of the City’s funds, excluding the City’s General Fund and Internal Service Funds, have significant restrictions, commitments, or other limitations, which affect the availability of their fund resources for future use.

Notes to the Financial Statements / Supplementary Information These provide additional information to give the reader a better understanding of the data provided in the Government-Wide Financial Statements and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City’s progress in funding its obligation to provide pension and retiree health benefits to its employees. The combining statements for non-major and internal service funds are presented immediately following the required supplementary information.

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6 Financial Highlights
Statement of Net Position
 Net Position – Representing the difference between assets plus deferred outflows of resources less liabilities plus deferred inflows of resources is ↑ $6.3 million to $55.3 million, due to increased revenues from taxes and sewer fees.
 Working Capital – Representing current assets less current liabilities was ↑ $ 5.6 million to $30.9 million, due to increased revenues from taxes and sewer fees.
 Net Investment in Capital Assets – The City’s largest portion of net position reflects investments in net capital assets less any related debt that was used to acquire those assets. The ending balance was $63.9 million, reflecting the purchase of a new fire truck and completion of capital projects during the fiscal year.  Unrestricted Net Position – The City had a deficit in unrestricted net position of $19.4 million at the end of the fiscal year. Many different items comprise the unrestricted net position, including the City’s net pension liability offset.

Statement of Activities
 Change in Net Position - Was $6.3 million during the year, comprised of a net change from governmental activities of $3.5 million and from business type activities of $2.8 million.  Operating Revenues / Expenses – Operating revenues consisted of $10.1 million for Charges for Services, $1.8 million for Operating Grants and Contributions, $474K for Capital Grants and Contributions and $31.7 million for taxes and general revenues. Operating expenses consisted of $34.2 million for governmental activities and $4.1 million for business type activities.

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7 Statement of Net Position
The increase in assets and net position in the Statement of Net Position is due to increased tax receipts and sewer revenues, as well as other revenue and expense variances noted elsewhere in this document. The deficit of Net Position is net of pension related liabilities, inflows and outflows.

Current and Other Assets
This includes unrestricted cash and investments and items such as receivables, inventory and prepaid items expected to be converted into cash within one year.

Capital Assets
Consisting of land, buildings, improvements, infrastructure, vehicles, equipment, and the right-to-use assets.

These items are not available for future spending.

Current and Other Liabilities
Represents liabilities expected to be paid with cash within one year.

Long Term Liabilities
Includes the outstanding obligations for the City, including pensions, OPEB, compensated absences, leases, subscriptions, claims outstanding, and bonded debt.

Net Position
Net investment in capital assets represents the City’s capital assets net of accumulated depreciation and related debt. The restricted portion is subject to externally imposed restrictions for activities such as capital projects, debt service, and community development and is not available for general operations. The unrestricted portion is available for general operations. The deficit amount shown in Governmental Activities is due to the City’s outstanding pension obligations.

2024 2023 2024 2023 2024 2023
Assets
Current assets 31,536,158 $ 28,283,390 $ 12,595,155 $ 11,959,454 $ 44,131,313 $ 40,242,844 $ Capital and other assets 52,208,677 52,331,856 29,811,564 28,531,697 82,020,241 80,863,553 Total Assets $ 80,615,246 83,744,835 $ 42,406,719 $ 40,491,151 $ 126,151,554 $ 121,106,397 $ Deferred Outflows of Resources 20,365,434 $ 20,411,891 $ 356,339 $ 906,222 $ 20,721,773 $ 21,318,113 $ Liabilities
Current liabilities 11,250,624 $ 12,065,938 $ 1,955,768 $ $ 1,178,517 $ 13,206,392 $ 13,244,455 Noncurrent and other liabilities 63,260,135 61,892,717 7,301,671 9,121,474 70,561,806 71,014,191 Total Liabilities $ 74,510,759 $ 73,958,655 $ 9,257,439 $ 83,768,198 10,299,991 $ $ 84,258,646 Deferred Inflows of Resources 5,943,387 $ $ 6,862,623 $ 1,824,958 $ 2,246,234 $ 7,768,345 $ 9,108,857 Net Position
Net investment in capital assets 42,670,667 $ $ 42,333,875 $ 21,619,974 21,252,446 $ 63,923,113 $ $ 63,953,849 Restricted 10,470,523 10,055,437 296,448 298,348 10,766,971 10,353,785 Unrestricted (deficit) (29,485,067) (32,183,453) 10,131,767 6,932,826 $ (19,353,300) (25,250,627) Total Net Position $ 23,656,123 $ 20,205,859 $ 28,851,148 31,680,661 $ 55,336,784 $ $ 49,057,007 Summary of Net Position
Governmental Activities Business-Type Activities Total
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8 Statement of Changes in Net Position
The Statement of Changes in Net Position reflects the fact that the City’s net position increased by approximately $6.3 million in the current fiscal year. The increase in net position is due to increases in tax and sewer fee revenues received. The City’s Statements of Activities are shown below for FY 2024 and 2023:

Increase Increase
Functions/Programs 2024 2023 (Decrease) 2024 2023 (Decrease) Program Revenues
Charges for services $ 3,820,786 $ 3,643,560 $ 177,226 $ 6,318,159 $ 5,855,243 $ 462,916 Operating grants and contributions 1,803,700 2,689,705 (886,005) - - - Capital grants and contributions 474,137 1,109,485 (635,348) - - - Total Program Revenues 6,098,623 7,442,750 (1,344,127) 6,318,159 5,855,243 462,916 General Revenues
Taxes 29,147,787 27,480,551 1,667,236 - - -
Investment earnings 1,443,592 345,550 1,098,042 511,470 151,223 360,247 Other revenues 1,150,805 1,991,162 (840,357) - -
Total General Revenues 31,742,184 29,817,263 1,924,921 511,470 151,223 360,247 Total Revenues 37,840,807 37,260,013 580,794 6,829,629 6,006,466 823,163 Expenses
General government 6,440,878 3,241,604 3,199,274 - - -
Public safety 15,217,138 7,895,196 7,321,942 - - -
Public works 5,230,431 2,809,143 2,421,288 - - -
Recreation 1,562,919 554,042 1,008,877 - - -
Library 1,248,197 741,061 507,136 - - -
Museum 360,431 223,551 136,880 - - -
Community development 3,666,942 1,426,245 2,240,697 - - - Interest on fiscal charges 476,107 470,144 5,963 - - -
Cemetery operating - - 452,270 469,815 (17,545)
Sewer operating - 1,224,324 - 2,158,900 (934,576)
Local water project - 2,042,255 - 1,107,370 934,885
Golf course - - 468,767 364,089 104,678
Total Expenses 34,203,043 17,360,986 16,842,057 4,187,616 4,100,174 87,442 Excess / (Deficiency) before Transfers 3,637,764 19,899,027 2,642,013 (16,261,263) 1,906,292 735,721 Transfers (187,500) (162,500) (25,000) 187,500 162,500 25,000 Increase / (Decrease) in Net Position 3,450,264 19,736,527 2,829,513 (16,286,263) 2,068,792 760,721 Net Position, Beginning of Year 20,205,859 469,332 19,736,527 28,851,148 26,782,356 2,068,792 Net Position, End of Year $ 23,656,123 $ 3,450,264 20,205,859 $ $ 31,680,661 $ 28,851,148 $ 2,829,513 Summary of Statement of Changes in Net Position
Governmental Activities Business-Type Activities
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9 Statement of Changes in Net Position (Continued)
The following represents a breakout of program revenues and expenditures by major activity:

Revenues include charges for services such as sewer charges, grants, and funding received from other organizations for the purpose of financing the operating and capital costs of special programs, and taxes, including property, sales and transaction, franchise, transient occupancy, and business license taxes.

Expenses include Administration (including City Manager, Human Resources, Finance and Information Services, Police, Fire, Public Works, Community Development (including planning, building, housing and economic development), Recreation (including the library, museum and adult and youth activities), the City’s golf course, Sewer, Cemetery and the City’s local water project.
2022 2023 2024
Program Expenses
Governmental activities:

General government $ 5,800,659 $ 3,241,604 $ 6,440,878
Public safety 16,706,460 7,895,196 15,217,138
Public works 6,611,056 2,809,143 5,230,431
Recreation 1,117,468 554,042 1,562,919
Library 741,061 1,437,706 1,248,197
Museum 431,708 223,551 360,431
Community Development 1,426,245 4,075,001 3,666,942
Interest and fiscal charges on long-term debt 470,144 580,350 476,107 Total governmental activities expenses 36,760,408 17,360,986 34,203,043 Business-type activities:

Cemetery 469,815 610,773 452,270
Sewer 2,842,577 1,045,865 1,224,324
Local Water Project 1,048,075 2,136,404 2,042,255
Golf 281,320 282,177 468,767
Total business-type activities expenses 4,782,745 3,934,261 4,187,616 Total primary government expenses 41,543,153 $ 21,295,247 $ 38,390,659 $ Program Revenues
Governmental activities:

Charges for services:

General government $ 1,720,294 $ 1,439,808 $ 1,210,812
Public safety 31,244 593,308 599,859
Public works 2,646 21,550 1,639
Recreation 390,314 452,660 599,573
Library 34,443 2,132 2,374
Community Development 1,134,102 882,556 1,406,529
Operating grants and contributions 2,526,917 2,689,705 1,803,700 Capital grants and contributions 2,248,708 1,109,485 474,137 Total governmental activities program revenues 7,837,122 9,958,525 6,098,623 Business-type activities:

Charges for services:

Cemetery 773,195 800,923 716,931
Local Water Project 597,011 598,195 1,026,820
Sewer 3,565,896 3,693,156 3,829,192
Golf 611,397 791,881 745,216
Total business-type activities program revenues 5,576,411 5,855,243 6,318,159 Total primary government program revenues 13,413,533 13,297,993 12,416,782 Net (expense)/revenue:

Governmental activities (28,923,286) (9,918,236) (28,104,420) Business-type activities 793,666 1,920,982 2,130,543
Total primary government net (expense)/revenue (28,129,620) $ $ (7,997,254) $ (25,973,877) Fiscal Year Ended June 30
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10 Statement of Changes in Net Position (Continued)
Governmental Activities
The total cost of services for all governmental activities in FY 23-24 was $34.2 million, with program revenues covering $6.1 million resulting in a net cost of $28.1 million. The remaining portion of governmental activities was covered by taxes (some of which can only be used for certain programs) and other revenues, such as interest and other miscellaneous revenue. The cost of services went up driven by cost escalations and the impact of negotiated labor agreements and the most recent pension actuarial.

Business Activities
The total cost of all Business-Type activities this year was $4.1 million. As shown in the Statement of Activities, these were funded by charges for services totaling $6.3 million amounts paid by users of the systems, along with interest earned on invested cash balances. Net position increased by $2.8 million for business-type activities (including investment earnings and transfers) to $31.7 million. 2022 2023 2024
General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes 8,573,969 $ $ 9,330,981 $ 10,001,561
Sales and use taxes 5,630,320 6,734,940 7,146,935
Franchise taxes 1,489,888 1,620,136 1,682,562
Transient occupancy taxes 6,821,183 7,105,256 7,375,869 Utility users taxes 1,940,677 2,097,934 2,118,068
Business license tax 425,691 371,310 644,911
Property transfer tax 150,278 231,389 159,401
Property taxes in lieu of motor vehicle fee - 15,335 18,480 Unrestricted Investment earnings 179,637 1,443,592
Miscellaneous or Other revenues 1,400,243 1,143,687 1,150,805 Transfers - (162,500) (187,500)
Total governmental activities 26,056,675 28,807,288 31,554,684 Business-type activities:

Unrestricted Investment earnings (18,409) 151,223 511,470 Miscellaneous or Other revenues -
Transfers - 162,500 187,500
Total business-type activities (18,409) 147,810 698,970 Total primary government 26,038,266 $ 28,955,098 $ 32,253,654 $ Fiscal Year Ended June 30
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11 Financial Analysis of the City’s Governmental Funds
The Fund Financial Statements focus on individual parts of the City’s government, reporting operations in more detail than the Government-Wide Statements.

The City’s governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The City’s governmental funds reported a combined fund balance at June 30, 2024 of $28 million, an increase of $2.9 million over the end of the previous fiscal year. Major changes are noted below.

The General Fund is the chief operating fund of the City and reflects an increase of $2.6 million in fund balance. due to higher than anticipated tax revenues and expenditure savings due to vacancies. Capital Projects fund balances increased by $338,000 due to the carryover of some capital projects to Fiscal Year 24-25.

CDBG Capital Other
General RSTP Grant Projects Governmental
Fund Fund Fund Fund Funds Total
Total Revenues $ 69,450 33,249,760 $ 50,472 $ 123,482$ $ 3,886,772 $ 37,379,936 Total Expenditures 378,644 29,471,819 535,912 5,132 3,884,750 34,276,257 Revenues Over (Under) Expenditures $ (309,194) 3,777,941 $ 45,340 $ (412,430) $ 2,022 $ 3,103,679 $ Transfers in 3,359 750,000 322,000 1,075,359
Transfers out (10,349) (1,252,510) (1,262,859)
Proceeds from sale of assets 6,800 - - - - 6,800
Inception of subscription liabilities - 20,846 - - 20,846 Net change in fund balances (deficit) $ (309,194) 2,556,436 $ 45,340 $ 337,570$ $ 313,673 $ 2,943,825 Beginning of year Fund Balance (deficit) (40,122) 15,025,352 1,279,643 22,626 8,720,644 25,008,143 End of year Fund Balance (deficit) $ (349,316) 17,581,788 $ 1,324,983 $ 360,196 $ 9,034,317 $ 27,951,968 $ Table 3 - Summary of Changes in Fund Balance - Governmental Funds Major Funds
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12 General Fund Budgetary Highlights
Over the course of the year, the City Council revised the City’s budget with adjustments for various revenue and expenditure changes. After taking into account these adjustments, General Fund revenues were higher than the final budget by $1.0 million, which is primarily attributable to higher tax collections and an increase in return on the City’s investments, and General Fund expenditures were under budget by $2 million, due to personnel cost savings resulting from vacancies in several of the City’s departments. Significant variances are shown below:

Original Final
Functions/Programs Budget Budget Actual Variance
Revenues
Taxes
Property taxes 9,609,000 9,881,000 10,001,561 120,561
Sales and use taxes 5,957,000 6,039,000 5,975,031 (63,969) Franchise and other taxes 1,585,000 1,625,000 1,635,968 10,968 Transient occupancy taxes 6,562,000 6,840,000 6,820,365 (19,635) Utility user taxes 2,005,000 2,003,000 2,118,068 115,068 Business license tax 370,000 385,000 607,647 222,647
Other taxes 187,000 182,000 177,881 (4,119)
Intergovernmental 41,000 234,000 278,308 44,308
Licenses, permits and impact fees 885,000 1,318,000 1,322,285 4,285 Fines and Forfeitures 530,000 394,000 314,242 (79,758)
Charges for services 1,643,000 1,783,000 1,737,498 (45,502) Interest, rents and concessions 436,750 603,057 1,125,585 522,528 Other revenues 1,362,787 1,001,100 1,135,321 134,221
Total Revenues 31,173,537 32,288,157 33,249,760 961,603 Expenses
General government 5,322,421 5,673,734 5,305,657 368,077 Public safety -
Police 8,305,755 8,116,264 7,850,494 265,770
Fire 4,425,400 4,521,532 4,508,537 12,995
Public works 4,967,832 4,998,854 4,399,769 599,085
Recreation 1,101,418 1,403,404 1,224,512 178,892
Library 1,143,910 1,172,182 1,129,218 42,964
Museum 337,400 343,400 346,494 (3,094)
Community development 3,006,773 3,881,283 2,908,796 972,487 Capital Outlay 215,000 362,222 291,690 70,532
Debt Service: -
Principal retirement 498,070 498,020 576,256 (78,236)
Interest and fiscal charges 930,396 930,396 930,396 -
Total Expenses 30,254,375 31,901,291 29,471,819 2,429,472 Other Financing Uses (Net) (1,784,187) (1,596,500) (1,221,505) (374,995) Increase / (Decrease) in Net Position (865,025) (1,209,634) 2,556,436 (3,766,070) Net Position, Beginning of Year, as Restated 15,025,352 Net Position, End of Year ` $ 17,581,788
General Fund Budget Actual
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13 Financial Analysis of the City’s Proprietary Funds
These funds provide the same type of information found in the Government-Wide Financial Statements but in more detail. Factors concerning these funds have previously been addressed in the discussion of business-type activities under the Government-Wide Statements.

Governmental
Activities
Local Golf Internal
Cemetery Water Sewer Course Service
Fund Project Fund Fund Fund Total Funds
Total Operating Revenues $ 1,026,820 716,931 $ 3,829,192 $ 745,216 $ 6,318,159 $ 2,014,597 $ Total Operating Expenses 1,179,528 452,270 2,021,906 405,786 4,059,490 1,388,276 Revenues Over (Under) Expenses $ (152,708) 264,661 $ 1,807,286 $ 339,430 $ 2,258,669 $ 626,321 $ Transfers in 187,500 187,500
Investment Earnings 3,111 47,725 368,224 92,410 511,470 45,683 Interest Expense (20,349) (44,796) (62,981) (128,126) (9,246) Net change in Net Position $ (6,893) 312,386 $ 2,155,161 $ 368,859 $ 2,829,513 $ 662,758 $ Beginning of year Net Position 1,109,022 933,230 23,124,603 3,684,293 28,851,148 128,957 End of year Net Position $ 1,102,129 1,245,616 $ 25,279,764 $ 4,053,152 $ 31,680,661 $ 791,715 $ Ending Working Capital $ (222,566) 1,086,245 $ 8,761,146 $ 1,026,041 $ 10,650,866 $ 920,672 $ Summary of Changes in Net Position - Proprietary Funds
Business Type Activities
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14 Capital Assets
The City of Pacific Grove’s investment in capital assets for its governmental and business-type activities as of June 30, 2024 amounts to $71.9 million (net of accumulated depreciation and amortization). This includes net capital assets from governmental activities of $43.4 million and net capital assets from business type activities at $28.5 million. This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, and sewer systems. The table below summarizes the City’s capital assets net of depreciation:

The City had the following capital commitments outstanding as of June 30, 2024:

Capital Commitment
Amount
Outstanding
Street Improvements $785,877
Facility Improvements 52,014
Park Improvements 8,131
Total $846,022
Major capital projects and capital outlay during the fiscal year included the following:
 Phase 9 Sewer Improvements
 Street Rehabilitation Project
 Street Crack and Slurry Seal
 Cedar, Sunset and Congress Intersection
 Sewer Pump Station Replacement
 Design of Sidewalk Extension for Outdoor Dining
 Backstop Replacement Municipal Ball Park
 Reconstruction Public Works Facilities
 George Washington Park Enhancements
Additional information on capital asset activity is described in the notes to the financial statements. 2024 2023 2024 2023 2024 2023 % Change
Land $ 2,338,270 $ 2,338,270 $ 362,953 $ 362,973 $ 2,701,223 $ 2,701,243 0% Construction in progress 5,524,639 5,603,986 983,414 436,247 6,508,053 6,040,233 8% Buildings and improvement 8,448,463 8,841,034 4,608,292 4,813,851 13,056,755 13,654,885 -4% Infrastructure 25,910,303 24,691,259 22,135,513 22,458,821 48,045,816 47,150,080 2% Machinery and equipment 883,493 798,968 393,898 459,805 1,277,391 1,258,773 1% Subscriptions (SBITAs) 298,136 429,597 - 298,136 429,597 100% Total Capital Assets, Net 43,403,304 $ 42,703,114 $ 28,484,070 $ $ 28,531,697 $ 71,887,374 $ 70,805,214 2% Governmental Activities Business-type Activities Total
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15 Long-Term Debt, Pension and Other Post Employment Benefit (OPEB) Obligations The City’s net pension and net OPEB obligations as of June 30, 2024 were $55.0 million and $3.0 million respectively. As of June 30, 2023, the City’s net pension obligation was 76.7% funded.

During the year, Long-Term Debt from governmental activities decreased by $0.9 million, primarily due to regular debt service payments. Long-term debt attributable to business type activities decreased by $0.4 million due to regular debt service payments on the following bond issues:

Pension Obligation Bonds
On June 1, 2006, the City issued Taxable Pension Obligation Bonds in the principal amount of $19.4 million. The bonds were part of the California Statewide Communities Development Authority Taxable Pension Obligation Bonds Program.

Clean Water State Revolving Fund Loan
In November 2015, the City secured State Water Resources Control Board ("SWRCB") funding for $5.3 million for the construction of a recycled water treatment plant, sewer diversion structure, waste pump main station, and user connections.

Golf Course COP Refunding / 2013 Wastewater Revenue Refunding Bond The City entered into a $3.1 million Site Lease with Umpqua Bank to refund its 2014 Golf Course Certificate of Participation, secured by the transfer of property rights to Umpqua Bank. - The City issued Wastewater Revenue Refunding Bonds for $1.2 million, which refinances the California State Community Development Authority Series 2001B Revenue Bonds.

The following table summarizes the City’s debt at the end of the year:

City Bond Rating / GO Bonds - Standard and Poor’s Rating Services and Moody’s Investor Services Inc., assigned a rating of SP-1+ and MIG 1, respectively, to the City’s 2006 Pension Obligation Bonds. The City has not received any updates to this rating. The City does not have any General Obligation Bonds (GO). The California Government Code, Section 43605 caps GO debt at 15% of the assessed value of all real and personal property within the City. The legal debt margin based upon the Fiscal Year 23-24 ACFR is $713 million.

Additional information on these obligations is described in the notes to the financial statements. 2024 2023 % Change Maturity Interest
Pension Obligation Bonds 6,458,191 $ 7,403,565 -12.8% 2029 5.67-6.12% PG&E Loan 31,403 51,451 -39.0% Varies Varies
SBITA Liability 200,738 317,788 -36.8% Varies Varies
Total outstanding long-term debt $ 6,690,332 $ 7,772,804 -13.9% 2024 2023 % Change Maturity Interest
2013 Wastewater Revenue Refunding Bonds 573,704 $ 639,629 -10.3% 2031 3.35% Golf Course COP Refunding 1,526,268 1,725,451 -11.5% 2030 4.35% Clean Water State Revolving Fund Loan 4,385,661 4,546,643 -3.5% 2048 1% Total outstanding long-term debt $ 6,485,633 $ 6,911,723 -6.2% Summary of Outstanding Long-Term Debt at Fiscal Year End Governmental Activities
Business-type Activities
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16 Economic Factors / Next Year’s Budget
The City prepares an annual budget based on council-set goals and priorities, which contains a multi-year financial plan that focuses on long-term financial viability and allows decision-makers to understand the impact of their policy decisions. Budget development is guided by a series of policies adopted by the City Council, which guides long-term planning, minimum reserve levels, employee compensation, cash and debt management, information technology, and utility rates. The budget was based on these key assumptions:

Property Taxes
Proposition 13 set the Fiscal Year 75/76 assessed values as the base year for future annual inflationary assessed
values, with a growth rate limited to 2% for any given year.

The County Assessor also re-appraises each real property parcel when there are purchases, construction, or other statutorily defined, “changes in ownership”. Proposition 13 limits the property tax to 1% of each property’s full value, plus any additional percentages for specific voter approved indebtedness. The City receives approximately
sixteen cents of every dollar of the property tax paid on properties assessed within the City, with the balance
distributed to the Pacific Grove Unified School District, County of Monterey, and local special districts.

Sales Tax
In April 2022, approximately 60% of voters approved Measure A, a new 0.50% transaction and use tax. This increased the combined sales tax rate to 9.25% in October 2022. The General Fund portion of the City sales tax is comprised of a 1% Bradley-Burns statutory sales tax rate; and Measure U, a 1% transaction and use tax that was approved by voters in 2008. The tax rate increased to 1.5% when Measure A became effective.

Utility Users Tax
The City imposes a utility users’ tax to residents and businesses within the City that utilize water, gas, electricity, telephone, and cable services. This tax is assessed at a rate of 5% of the amount charged by the utility; and it is paid by the person consuming the service. The amount of revenues received is primarily influenced by updates to the underlying rate structures or new development projects.

Transient Occupancy Tax (TOT)
TOT Is a lodging tax that is collected on overnight rental accommodation stays of 30 consecutive days or less. In 2010, the City updated its municipal code and began collecting TOT on residential or short-term rental properties (STRS). In Fiscal Year 17/18, the City approved an ordinance to reduce the number of short-term rentals, with an effective date of April 30, 2019. At the beginning of Fiscal Year 19/20, there were approximately 200 properties, with an additional 12 home-sharing licenses. In November of 2018, 74.9% of voters approved Measure U, allowing the City to increase the TOT rate from 10% to 12%. This new rate became effective on July 1, 2019. This increased tax has been partially offset by Measure M, which eliminated STRS outside of the Coastal and Commercial zones, which became effective in May of 2020.

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17 Economic Factors / Next Year’s Budget (Continued)
Personnel costs
These are based on approved staffing levels for Fiscal Year 24-25. Impacts of labor agreements effective July 1, 2022, through June 30, 2026, have been included and COLA
adjustments are accounted for in outer years.

Health Costs
Based upon information provided by our health care
providers, the City’s health costs are projected to increase significantly in FY 24-25 and beyond. The budget assumes sharing between the City and employees for any increases in health premiums for future fiscal years.

Pension Costs
Pension rates for FY 24-25 are based on information provided by CalPERS, which assumes that they meet their targeted net discount rate of 6.8%.

Internal Service Funds (ISF) Funding
Funding to the City’s ISFs has been adjusted in FY 24-25 to fund operational and reserve levels for general and worker’s compensation insurance claims. In past years, the City underfunded its ISF reserves to maintain the General Fund reserve levels at 35%, as mandated by Council Policy 400-6 on Budget and Financial Management.

Capital Projects
The City’s adopted capital improvement program (CIP) for FY 24-25 is $2.9 million and $0.5 million for capital outlay. The CIP is designed to meet community needs, with special emphasis on those projects that contribute to the City’s economic vitality and quality of life. Some of the projects and capital outlay funded for Fiscal Year 2024-25 include the following:

Capital Outlay Capital Projects
 IT Network Upgrade  Pedestrian Safety - Central
 Library Upgrades  Pump Station 15.5
 Phone System Upgrades  Street Crack and Slurry Seal
 Door Access Upgrade  Street Rehabilitation
 Patrol Vehicle Purchase  Golf Cart Path Improvements  Police Equipment  Golf Tee Expansion / Renovation
 Fire Equipment  Recreation Trail Improvements
Additional information related to the City’s key revenues, expenditures, and major initiatives are included in the Transmittal Section of this document.

Request for Financial Information
This financial report is designed to provide a general overview of the City of Pacific Grove's finances for all of Pacific Grove's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions regarding this report or requests for additional information should be addressed to the Department of Finance at 300 Forest Avenue, Pacific Grove, CA 93950, or visit the City of Pacific Grove webpage at www.cityofpacificgrove.org.

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18 PGCC 4-2-25

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19 City of Pacific Grove, California
Basic Financial Statements
Rip Van Winkle Open Space
Hopkins Marine Station
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20 PGCC 4-2-25

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21 City of Pacific Grove, California
Government Wide Financial Statements
Pacific Grove Museum of Natural History
Monarch Grove Sanctuary
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Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 27,411,424 $ 10,232,217 $ 37,643,641 $ Restricted cash and investments 70,237 296,448 366,685
Receivables:

Taxes 2,799,558 2,799,558 -
Accounts 1,068,517 1,685,442 2,753,959
Loans, due within one year - 40,513 40,513
Leases, due within one year 61,719 366,388 428,107
Interest 79,501 2,250 81,751
Internal balances 28,103 (28,103) -
Prepaid items 17,099 - 17,099
Total current assets 31,536,158 12,595,155 44,131,313
Noncurrent assets:

Loans receivable, due in more than one year 1,131,177 1,131,177 - Leases receivable, due in more than one year 1,428,769 1,327,494 2,756,263 Available for sale assets 6,245,427 6,245,427 -
Capital assets:

Nondepreciable/amortizable 7,862,909 1,346,387 9,209,296 Depreciable/amortizable, net 35,540,395 27,137,683 62,678,078 Total capital assets 43,403,304 28,484,070 71,887,374
Total noncurrent assets 52,208,677 29,811,564 82,020,241 Total assets 83,744,835 42,406,719 126,151,554

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 20,056,797 331,620 20,388,417
Related to OPEB 308,637 24,719 333,356
Total deferred outflows of resources 20,365,434 356,339 20,721,773 Primary Government
City of Pacific Grove
Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 22 PGCC 4-2-25

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Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 2,480,557 $ 1,394,945 $ 3,875,502 $
Accrued payroll 310,252 17,878 328,130
Deposits and other liabilities 42,646 - 42,646
Interest payable 2,480 50,743 53,223
Unearned revenue 6,246,685 - 6,246,685
Claims payable - due within one year 156,505 - 156,505
Compensated absences - due within one year 299,763 40,146 339,909 Long-term debt - due within one year 1,568,308 440,577 2,008,885 Total OPEB liability - due within one year 143,428 11,479 154,907 Total current liabilities 11,250,624 1,955,768 13,206,392 Noncurrent liabilities:

Long-term debt - due in more than one year 5,122,024 6,045,056 11,167,080 Claims payable - due in more than one year 317,926 - 317,926 Compensated absences - due in more than one year 899,290 120,435 1,019,725 Net pension liability 54,110,601 911,094 55,021,695
Total OPEB liability - due in more than one year 2,810,294 225,086 3,035,380 Total noncurrent liabilities 63,260,135 7,301,671 70,561,806 Total liabilities 74,510,759 9,257,439 83,768,198

DEFERRED INFLOWS OF RESOURCES
Related to leases 1,387,028 1,615,537 3,002,565
Related to pensions 2,734,639 63,518 2,798,157
Related to OPEB 1,821,720 145,903 1,967,623
Total deferred inflows of resources 5,943,387 1,824,958 7,768,345

NET POSITION
Net investment in capital assets 42,670,667 21,252,446 63,923,113 Restricted for:

Insurance 70,237 - 70,237
Social service programs 885,693 - 885,693
Public safety 772,852 - 772,852
Community development 5,903,351 - 5,903,351
Lost revenue recovery 895,169 - 895,169
Street improvements 1,943,221 - 1,943,221
Debt service - 296,448 296,448
Total restricted 10,470,523 296,448 10,766,971
Unrestricted (deficit) (29,485,067) 10,131,767 (19,353,300) Total net position $ 31,680,661 23,656,123 $ 55,336,784 $ Primary Government
City of Pacific Grove
Statement of Net Position (Continued)
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 23 PGCC 4-2-25

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Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Governmental activities:

General government $ 6,440,878 $ 1,210,812 $ 291,776 $ 267,219 $ 1,769,807 Public safety 15,217,138 599,859 387,077 - 986,936
Public works 5,230,431 1,639 817,091 206,918 1,025,648
Recreation 1,562,919 599,573 32,857 - 632,430
Library 1,248,197 2,374 65,819 - 68,193
Museum 360,431 - - - -
Community development 3,666,942 1,406,529 209,080 - 1,615,609 Interest 476,107 - - - -
Total governmental activities 34,203,043 3,820,786 1,803,700 474,137 6,098,623 Business-type Activities:

Cemetery 452,270 716,931 - - 716,931
Local Water Project 1,224,324 1,026,820 - - 1,026,820
Sewer 2,042,255 3,829,192 - - 3,829,192
Golf 468,767 745,216 - - 745,216
Total business-type activities 4,187,616 6,318,159 - - 6,318,159 Total primary government $ 10,138,945 38,390,659 $ 1,803,700 $ 474,137 $ 12,416,782 $ City of Pacific Grove
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
See accompanying Notes to the Basic Financial Statements. 24 PGCC 4-2-25

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Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:

General government (4,671,071) $ - $ $ (4,671,071)
Public safety (14,230,202) - (14,230,202)
Public works (4,204,783) - (4,204,783)
Recreation (930,489) - (930,489)
Library (1,180,004) - (1,180,004)
Museum (360,431) - (360,431)
Community development (2,051,333) - (2,051,333)
Interest (476,107) - (476,107)
Total governmental activities (28,104,420) - (28,104,420) Business-type Activities:

Cemetery - 264,661 264,661
Local Water Project - (197,504) (197,504)
Sewer - 1,786,937 1,786,937
Golf - 276,449 276,449
Total business-type activities - 2,130,543 2,130,543
Total primary government 2,130,543 (28,104,420) (25,973,877) General revenues and transfers:

General revenues:

Taxes:

Property taxes 10,001,561 - 10,001,561
Sales and use taxes 7,146,935 - 7,146,935
Franchise and other taxes 1,682,562 - 1,682,562
Transient occupancy taxes 7,375,869 - 7,375,869
Utility users taxes 2,118,068 - 2,118,068
Business license tax 644,911 - 644,911
Property transfer tax 159,401 - 159,401
Property taxes in lieu of motor vehicle fee 18,480 - 18,480 Total taxes 29,147,787 - 29,147,787
Investment income 1,443,592 511,470 1,955,062
Miscellaneous 1,150,805 - 1,150,805
Total general revenues 31,742,184 511,470 32,253,654
Transfers (187,500) 187,500 -
Changes in net position 3,450,264 2,829,513 6,279,777
Net position - beginning of year 20,205,859 28,851,148 49,057,007 Net position - end of year $ 31,680,661 23,656,123 $ 55,336,784 $ Net (Expense) Revenue and
Changes in Net Position
City of Pacific Grove
Statement of Activities (Continued)
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 25 PGCC 4-2-25

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26 PGCC 4-2-25

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27 City of Pacific Grove, California
Fund Financial Statements
This section includes Governmental and Proprietary Fund Financial Statements.

Pacific Grove Golf Links
Point Pinos Lighthouse
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28 PGCC 4-2-25

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29 City of Pacific Grove, California
Governmental Fund Financial Statements
General Fund - To account for and report all financial resources not accounted for and reported in another fund.

RSTP Fund - This special revenue fund receives federal and state transportation funding through the Transportation Agency for Monterey County (TAMC). TAMC allocates these funds to local agencies. Funds are used for variety of projects including bicycle and pedestrian projects, local roads, and transit.

Community Development Block Grant (CDBG) Fund - This special revenue fund was established to account for amounts received from Community Development Block Grants and for the loan and administrative activities of the City’s various CDBG grants.

Capital Improvement Projects Fund - This Capital Improvement Projects Fund accounts for capital projects funded fully or in part by discretionary General Fund revenues. These projects are distinct from projects funded by the self-supporting Enterprise Funds or Special Revenue Funds.

Nonmajor Governmental Funds - To account for the aggregate of all the nonmajor governmental funds.

Lovers Point
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30 PGCC 4-2-25

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Capital
CDBG Improvement Nonmajor Total
General RSTP Grant Projects Governmental Governmental
Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments 16,138,035 $ - $ $ 583,077 $ 450,045 $ 8,798,702 $ 25,969,859 Receivables:

Accounts 252,614 349,316 - 227,598 224,910 1,054,438
Taxes 2,459,598 - - - 339,960 2,799,558
Loans - - 744,739 - 386,438 1,131,177
Leases 1,490,488 - - - - 1,490,488
Interest 77,485 - - - 2,016 79,501
Prepaid items 17,099 - - - - 17,099
Due from other funds 361,558 - - - - 361,558
Total assets $ 20,796,877 $ 349,316 $ 677,643 1,327,816 $ $ 9,752,026 $ 32,903,678

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 1,473,905 $ 58,507 $ 2,833 $ 317,447 $ 609,591 $ 2,462,283 Payroll-related liabilities 310,252 - - - - 310,252
Deposits and other liabilities 42,646 - - - - 42,646
Due to other funds - 290,809 - - 42,646 333,455
Unearned revenue 1,258 - - - - 1,258
Total liabilities 1,828,061 349,316 2,833 317,447 652,237 3,149,894 Deferred inflows of resources:

Lease-related 1,387,028 - - - - 1,387,028
Unavailable revenue - 349,316 - - 65,472 414,788
Total deferred inflows of resources 1,387,028 349,316 - - 65,472 1,801,816 Fund balances:

Nonspendable:

Prepaid items 17,099 - - - - 17,099
Permanent funds - - - - 3,492,262 3,492,262
Restricted:

Social service programs - - - - 1,261,146 1,261,146
Public safety - - - 358,064 - 358,064
Community development - - 1,324,983 - 1,086,106 2,411,089 Lost revenue recovery - - - - 895,169 895,169
Street improvements - - - - 1,943,221 1,943,221
Committed 12,033,000 - - - - 12,033,000
Assigned:

Capital projects - - 360,196 - - 360,196
Unassigned (deficit) 5,531,689 (349,316) - - (1,651) 5,180,722 Total fund balances 17,581,788 (349,316) 1,324,983 360,196 9,034,317 27,951,968 Total liabilities, deferred inflows of
resources, and fund balances $ 20,796,877 $ 349,316 $ 677,643 1,327,816 $ $ 9,752,026 $ 32,903,678 Major Funds
City of Pacific Grove
Balance Sheet
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 31 PGCC 4-2-25

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Total Fund Balances - Total Governmental Funds $ 27,951,968 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, not being depreciated 7,862,909
Capital assets, depreciable/amortizable 65,863,073
Less accumulated depreciation/amortization (30,322,678) (2,480)
(1,568,308)
(5,122,024)
(299,680)
(899,040)
19,945,428
(53,804,626)
(2,713,307)
306,896
(2,937,064)
(1,811,447)
414,788
791,715
Net position of governmental activities $ 23,656,123
Internal service funds are used by management to charge the costs of stores, vehicle maintenance, and various insurance costs to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-Wide Statement of Net Position.

Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet.

Net pension liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Net other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Revenues earned but not available to pay for current expenditures for governmental funds are unavailable.

Long-term debt - due in more than one year
Aggregate net OPEB liabilities, net of $16,658 reported in the internal service funds OPEB related deferred inflows of resources, net of $10,273 reported in the internal service funds Pension related deferred outflows of resources, net of $111,369 reported in the internal service funds Aggregate net pension liabilities, net of $305,975 reported in the internal service funds Pension related deferred inflows of resources, net of $21,332 reported in the internal service funds OPEB related deferred outflows of resources, net of $1,741 reported in the internal service funds Compensated absences - due within one year, net of $83 reported in the internal service funds Compensated absences - due in more than one year, net of $250 reported in the internal service funds City of Pacific Grove
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Long-term debt - due within one year
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the Governmental Funds Balance Sheet.

See accompanying Notes to the Basic Financial Statements. 32 PGCC 4-2-25

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Pacific Grove City CouncilApril 2, 2025

Pacific Grove City Council
April 2, 2025