Pacific Grove City Council
October 15, 2025

CITY COUNCIL

SPECIAL MEETING AGENDA
Wednesday, October 15, 2025, 5:00 P.M.

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

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

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

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

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

AGENDA

CALL TO ORDER

APPROVAL OF THE AGENDA

SPECIAL MEETING

PUBLIC COMMENT ON SPECIAL MEETING MATTERS
Comments from the public will not receive Council action. Comments must deal with matters on the Special Meeting agenda and will be limited to three minutes.

A. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(a) Discussion with Chief of Police regarding procedures to improve security in City owned buildings.

ADJOURNMENT
PGCC 10-15-25

CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, October 15, 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
PGCC 10-15-25

PLEDGE OF ALLEGIANCE: Councilmember Garfield

1. APPROVAL OF AGENDA

2. PRESENTATIONS

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

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

Whenever possible, written correspondence should be submitted to the Council in advance of the meeting, to provide adequate time for its consideration.

B. Written General Public Comment

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

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business A. Minutes of the October 1, 2025 City Council Special and Regular Meetings PG 7 Reference: Sandra Kandell, City Clerk
Recommended Action: Approve the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
PGCC 10-15-25

6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Proposed Updates to City Council Policies 400-5 & 400-6 PG 13 Reference: Fred Marsh, Administrative Services Director Recommended Action:

1. Approve Resolution

2. Provide Alternate Direction
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 of an Ordinance Adopting the California Building Standards Code with Local Amendments PG 29
Reference: John Kuehl, Building Official
Recommended Action: Hold second reading and adopt an ordinance that adopts the 2025 Edition of the California Building Standards Code, with local amendments.

CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Check Register and Core Fund Summary - September 2025 PG 45 Reference: Nicholas Cina, Finance Management Analyst
Recommended Action:

1. Receive the Check Register and Core Fund Summary.

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

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

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business

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

REGULAR AGENDA
PGCC 10-15-25

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. Ordinance to Amend the Fiscal Year 25/26 Operating and Capital Improvement Budget Reference: Matt Mogensen, City Manager PG 64
Recommended Action:

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

2. Motion to waive further reading of the ordinance;
Introduce and hold the first reading of an ordinance amending the operating and capital budget for the Fiscal Year 2025-26;

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

4. CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Proposed Revision to Chapter 2.16 of the City Ordinance regarding the Purchasing System and Procedures PG 78
Reference: Fred Marsh, Administrative Services Director Recommended Action:

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

2. Motion to waive further reading of the ordinance;
Introduce and hold the first reading of a revision to Chapter 2.16 of the City Ordinance regarding the Purchasing System and Procedures

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

4. Approve the Resolution establishing dollar limits for approval of contracts for specified employee classifications.

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

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS
A. Discussion on the Allocation of Available Potable Water PG 103 Reference: Jon Biggs, Community Development Director
Recommended Action: Receive report, discuss, and provide direction to staff.

CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3) PGCC 10-15-25

CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

14. FULL PRESENTATIONS

15. CLOSED SESSION
A. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957 (b)

PUBLIC EMPLOYEE APPOINTMENT
Title: City Attorney – Discussion of appointment process

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.

PGCC 10-15-25

Agenda No. 5 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: October 15, 2025
SUBJECT: Minutes of the October 1, 2025 City Council Special and Regular Meetings CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve the minutes.

Attachments
Draft Minutes s10-1-25
PGCC 10-15-25

1 DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

SPECIAL MEETING
Wednesday, October 1, 2025, 5:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA Join the Zoom Meeting to participate live at:
https://www.cityofpacificgrove.org/Zoom_Closed

CALL TO ORDER
Mayor Smith called the meeting to order at 5:00 p.m. Present in Chamber: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers McDonnell, Poduri, Rau, and Walkingstick. Absent: Councilmember Garfield.

APPROVAL OF THE AGENDA
Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 6-0-1, Councilmember Garfield absent, to approve the Special Meeting Agenda.

SPECIAL MEETING

PUBLIC COMMENT ON SPECIAL MEETING MATTERS
No public comment received.

A. Conference with Real Property Negotiators (Government Code § 54956.8) Property: Point Pinos Grill, 79 Asilomar Blvd, Pacific Grove
Agency Negotiator(s): Matthew Mogensen, City Manager; Brian Pierik, City Attorney; Dan Gho, Public Works Director/Deputy City Manager; Fred Marsh, Administrative Services Director
Negotiating Party(ies): Tamie Aceves
Under negotiation: Price
DRAFT
and terms of payment of lease.

PGCC 10-15-25

2 DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

REGULAR MEETING
Wednesday, October 1, 2025, 6:00 P.M.

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

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

PLEDGE OF ALLEGIANCE:

Councilmember Rau led the pledge of allegiance.

1. APPROVAL OF AGENDA
Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 6-0-1, Councilmember Garfield absent, to approve the Regular Meeting Agenda.

2. PRESENTATIONS
A. Mayor's Proclamation: Declaring October 2025 as National Women's Small Business Month
Action: Presented proclamation.

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

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Report on Closed Session by City Attorney
Conference with Real Property Negotiators (Government
Code § 54956.8) Property: Point Pinos Grill, 79 Asilomar Blvd, Pacific Grove
Agency Negotiator(s): Matthew Mogensen, City Manager; Brian Pierik, City Attorney; Dan Gho, Public Works Director/Deputy City Manager; Fred Marsh, Administrative Services Director
Negotiating Party(ies): Tamie Aceves
Under negotiation: Price and terms of payment of lease.

City Attorney Brian Pierik reported no action was taken.

B. Council and staff made general announcements.

DRAFT PGCC 10-15-25

3 4. GENERAL PUBLIC COMMENT
General Public Comment received from Jean Anton, Mark Travaille, and Inge Lorentzen Daumer.

A. Written General Public Comment

CONSENT AGENDA
Action: Upon motion by Councilmember Poduri and seconded by Mayor Pro Tem Amelio, Council voted 6-0-1, Councilmember Garfield absent, to approve the Consent Agenda.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the September 17, 2025 City Council Special and Regular Meetings Action: Approved the minutes.

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

6. RESOLUTIONS

7. ORDINANCES
A. Second Reading and Adoption of Ordinance Regarding Code Enforcement Adding Chapter 1.17, Amending Chapter 1.18, Repealing and Replacing Chapter 1.19, Repealing and Reserving Chapter 3.30, Amending Chapter 6.09, Amending Chapter

7.40, and Amending Chapter 9.17
Action: Held second reading and adopted Ordinance No. 25-018 Regarding Code Enforcement Adding Chapter 1.17, Amending Chapter 1.18, Repealing and Replacing Chapter 1.19, Repealing and Reserving Chapter 3.30, Amending Chapter 6.09, Amending Chapter 7.40, and Amending Chapter 9.17.

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

8. REPORTS – INFORMATION ONLY
A. 2025-2027 Community Goals and Workplan Matrix Quarterly Update Action: Received and filed the 2025-2027 Community Goals and Workplan Matrix Quarterly Update.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Community Human Services Highlights for September 18, 2025 Action: Received the highlights.

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

9. REPORTS – REQUIRING ACTION

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES A. Library Board Special Meeting Minutes: July 29, 2025 Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
DRAFT PGCC 10-15-25

4 REGULAR AGENDA

11. PUBLIC HEARINGS
A. An Ordinance Adopting with California Building Standards Code with Local Amendments No public comment received.

Action: Mayor Pro Tem Amelio requested the City Attorney read the title of the ordinance.

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

2. Waive further reading of the ordinance;

3. Introduce and hold first reading of an ordinance that adopts the 2025 Edition of the California Building Standards Code, with local amendments; and

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

CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS
A. Hops and Fog Sidewalk, Bulb Out, Expansion
Public comment received from Ximena Waissbluth, Susan Goldbeck, Inge Lorentzen Daumer, and Lisa Ciani.

Action: Upon motion by Mayor Smith and seconded by Mayor Pro Tem Amelio, Council voted 6-0-1, Councilmember Garfield absent, to authorize an encroachment permit to be issued to Hops and Fog Brewing Company, located at 511 Lighthouse Avenue, to construct a bulb-out for sidewalk dining.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities
B. Recreation Board Needs Assessment Recommendation
No public comment received.

Action: No action was taken regarding developing a recreational needs assessment.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Proposal to draft an Ordinance to Regulate Operation of Unmanned Aircraft Systems (drones) to Prevent Wildlife Disturbances
Public comment received from Lisa Ciani, Kim Akeman, Inge Lorentzen Daumer, Laurie Adams, and Carmelita Garcia.

Action: Upon motion by Councilmember Rau and seconded by Councilmember McDonnell, Council voted 6-0-1, Councilmember Garfield absent, to direct staff to return to City Council with a draft first read ordinance regulating operation of Unmanned Aircraft Systems (UAS, aka drones), and to address enforcement.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
DRAFT PGCC 10-15-25

5 14. FULL PRESENTATIONS

15. CLOSED SESSION

ADJOURNMENT
Council adjourned the regular meeting at 7:47 p.m. in honor and memory of former Museum Board member Shel Virden.

Respectfully Submitted,
Sandra Kandell, City Clerk
Approved by Mayor: ____________________________________Date___________________ Attest by City Manager: _________________________________Date____________________ DRAFT PGCC 10-15-25

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: Fred Marsh, Administrative Services Director
MEETING DATE: October 15, 2025
SUBJECT: Proposed Updates to City Council Policies 400-5 & 400-6 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Approve Resolution

2. Provide Alternate Direction

DISCUSSION
On June 18, 2025, City Council adopted a two-year budget for the City. As part of the budget document, proposed revised policies were included for the following:
a. City Council Policy 400-5 Investments
b. City Council Policy 400-6 Budget and Financial Management These policies were last revised in 2021 and 2018, respectively. Links to the original policies, Council Policy 400-5 and 400-6, are provided for reference. The revised versions, showing all updates, are attached. New or modified sections are shown in bold. Track changes were not used because some sections were reordered, making it difficult to distinguish substantive edits from formatting changes.

Changes to the City’s investment policy were based upon best practices and review of guidelines provided by the California Municipal Treasurers Association (CMTA). Changes to the budget and financial management policy were based upon best practices and guidelines provided by the Governmental Finance Officers Association (GFOA).

The changes were discussed during the two-year budget development process and are now being formalized through the established process.

OPTIONS

1. Approve Resolution

2. Provide Alternate Direction
FINANCIAL IMPACT:

PGCC 10-15-25

There is no fiscal impact. These policies provide overall guidance to staff in the administration of the City’s investments and finances.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Resolution and Attached Policy Revisions 400-5 & 400-6
PGCC 10-15-25

RESOLUTION 25-XX
RESOLUTION OF THE CITY OF PACIFIC GROVE AMENDING COUNCIL POLICIES NO. 400-5 INVESTMENTS AND 400-6 BUDGET AND FINANCIAL MANAGEMENT

FINDINGS

1. The City periodically reviews its financial and investment policies to incorporate best practices and to address issues that have arisen in the past.

2. The revised investment policy is in compliance with State law provisions establishing investment objectives and setting forth permissible investment of public funds.

3. This action does not constitute a “Project” as that term is defined under the California Environmental Quality Act (CEQA) Guideline Section 15378, 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 Council determines that each of Findings set forth above is true and correct, and by this reference incorporates those Findings as an integral part of this Resolution

2. The Council authorizes adopting a resolution approving Council Policies 400-5 Investments and 400-6 Budget and Financial Management

3. The Council hereby approves the amendments and additions to Council Policies 400-5 and 400-6, as shown in bold in the attachments to this Resolution.

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

Passes and Adopted by the Council of the City of Pacific Grove this 15th day of October, 2025, by the following vote:

AYES:

NOES:

ABSENT:

PGCC 10-15-25

CITY OFPACIFICGROVE

CITY COUNCIL POLICY
Policy Governing Policy No. Effective Date Page No.

Investments 400-5 October 15, 2025 1 of 6
I. Purpose
This policy is intended to provide guidelines for the prudent investment of the City’s temporary idle cash and reserves, and to outline the procedures for managing the City’s treasury, in accordance with the guidelines of the California Municipal Treasurer’s Association (CMTA), California Debt and Investment Advisory Committee (CDIAC) and Association of Public Treasurers of the United States and Canada (APTUSC).

II. Scope
This investment policy applies to all financial assets of the City. These funds are accounted for in the City’s Annual Comprehensive Annual Financial Report and include:

A. General Fund
B. Special Revenue Funds
C. Capital Project Funds
D. Internal Service Funds
E. Enterprise Funds
F. Trust and Agency Funds
III. Standard of Care
In accordance with California Government Code, Section 53600.3, the “prudent investor” standard of care shall be applied to managing the City’s investment portfolio. Pursuant to this standard, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the investor shall act with care, skill, prudence, and diligence under the circumstances then prevailing. This includes, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character, with similar aims, to safeguard the principal and maintain liquidity for the City.

Credit risk is the possibility that deterioration of an issuer’s creditworthiness or potential default on its bonds will adversely affect the value of its bonds. This shall be mitigated by limiting investments to those allowed by this policy. Market or Interest Rate risk is defined as market value fluctuations due to changes in market price, should be mitigated by avoiding selling securities prior to maturity and investing operating funds primarily ins shorter-term securities, money market funds or similar investment pools, thereby limiting the average maturity of the portfolio.

Authorized individuals acting in accordance with written procedures, the investment policy and exercising due diligence, shall be relieved of personal responsibility for a specific security’s credit risk or market value changes, provided that deviations from expectations are reported in a timely PGCC 10-15-25

manner, and appropriate action is taken to control adverse developments from impacting the portfolio.

IV. Objective
The City’s investment objective is to enhance the economic condition of the City while ensuring the safety of the funds invested. The City attempts to obtain the highest yield on its investments consistent with the criteria established for safety and liquidity. The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible.

The three principal factors that are considered when making investments are listed below based on their level of priority:

Safety - Safety means limiting the potential for loss of principal, interest, or a combination of the two.

Liquidity - Liquidity refers to the ability to convert an investment to cash promptly with a minimal risk of losing principal or interest. A portion of the portfolio should be maintained in liquid short-term securities that can be converted to cash if necessary to meet disbursement requirements.

Yield - Yield is the average annual return on an investment based on the interest rate, price and length of time to maturity. The City attempts to obtain the highest yield possible, provided that the basic criteria of safety and liquidity have been met.

The City’s investment strategy is passive, therefore the basis used to determine whether market yields are being achieved should be to identify a comparable benchmark to the City’s average portfolio duration (i.e. 1 Year Treasury Bill, CAMP, LAIF). Benchmarks may change over time based on changes in the market or cash flows.

V. Investment Responsibility
The City Treasurer is responsible for investing the City’s funds in accordance with California Government Code, Sections 53600, et seq. and 53635, et seq. The City’s Administrative Services Director serves as the City Treasurer. Staff members of the Finance Department may be assigned to perform day-to-day treasury activities related to investments. The Deputy Director of Finance (Senior Program Manager) may serve as Acting City Treasurer in the absence of the Administrative Services Director.

VI. Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from any activity that could conflict with proper execution or management of the investment program or which could impair their ability to make impartial investments decisions. This includes refraining from undertaking personal investment transactions with the same individual who is conducting business with the City. The Administrative Services Director and the Deputy Director of Finance (Senior Program Manager) shall file a State Fair Political Practices Commission’s Statement of Economic Interests annually.

VII. Internal Controls
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure the assets of the City are protected from loss, theft, or misuse. The internal control structure shall PGCC 10-15-25

be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgement management. The internal controls shall include the following:
• Wire Approvals: Dual approval of investment wire transfers from the City • Separation of Duties: Separation of transaction authority from recordkeeping • Safekeeping: Custodial safekeeping
• Delegation: Clear delegation of authority to subordinate staff members • Documentation: Support confirming each investment transaction • Approval Levels: Establishment of wire approval levels for staff • Reconciliations: Performed regularly of activity to the City’s general ledger • Audit: Independent review by the external auditor in the audit VIII. Diversification
Investments shall be diversified among institutions, types of securities, and maturities to maximize safety and yield with changing market conditions. Local financial institutions will be given preferential consideration for investment of City funds consistent with the City’s objective of attaining market rates of return, and consistent with constraints imposed by its safety objectives, cash flow considerations, and state laws.

IX. Safekeeping
All investments of the City shall have the City of Pacific Grove as registered owner or shall be kept in the custody of the City or by a qualified safekeeping institution.

X. Interest Allocation
Except for cash in separate restricted accounts, the City will pool cash balances from all funds for investments to maximize earnings and efficiencies with regards to investment administration. The Finance division shall allocate interest to funds based upon their average cash balances and in accordance with Generally Accepted Accounting Principles (GAAP). All earnings not allocated shall be recorded in the General Fund.

XI. Investment Policy Adoption
The policy shall be reviewed every two years by the Administrative Services Director and any modifications made must be submitted to the City Council for their approval. The Treasurer shall bring this Policy to Council for formal review at least once every two years.

PGCC 10-15-25

XII. Permitted Investment Instruments
The Treasurer shall invest in the following investments and only under the guidelines as provided herein. Investment in these instruments shall not have a term exceeding five years from the date of purchase.

Certificates of Deposit
Non-Negotiable Certificates of Deposits will be made only in FDIC or FSLIC insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with Government Code 53652 and/or 53651 (m) (1). Investment in these instruments shall be limited to financial institutions that in the Treasurer’s judgment are of high quality. and shall not have a term exceeding five years from the date of purchase.

Securities of the U.S. Government or its Agencies
Includes obligations issued by Federal Home Loan Banks, Government National Mortgage Association, Farm Credit System, the Federal Home Loan Bank, Federal Home Loan Mortgage Association, Federal National Mortgage Association, or obligations or other instruments of or issued by a federal agency or a United States Government sponsored enterprise. Investment in these instruments shall not have a term exceeding five years from the date of purchase.

Treasury Bills and Notes
U.S. Treasury Bills, Notes, Bonds, or Certificates of Indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. The term of such securities shall not exceed five years from the date of purchase.

Local Agency Investment Fund (LAIF).

Investment of funds in the California LAIF which allows the State Treasurer to invest through the Pooled Money Investment Account (PMIA). Maximum investment is subject to state regulation. LAIF investments are available for City use.

CAMP Investment Pool, CLASS and Cal Trust Investment Pools These are Joint Powers Authority Investment pools that provide public agencies with the opportunity to invest funds on a cooperative basis in rated pools that are managed in accordance with state law with the primary objectives of offering participants safety, daily and next-day liquidity, and optimized returns.

State / Local Agency Debt Issues
Must be rated “A” or better by a national recognized rating agency, except for the Agency’s own bonds, which may have any rating. These issues include the following:

I. Registered state warrants or treasury notes or bonds of the State of California and any local agency within California.
ii. Registered treasury notes or bonds of any of the other 49 U.S. states PGCC 10-15-25

Money Market Funds
These must be registered with the Federal Securities and Exchange Commission (SEC), have over $500 million in total assets and only invest in either U.S. Government or federal agency securities, or other investment instruments in the City’s policy.

Debt Reserve Funds
Only debt reserve funds may be invested in the securities listed above for a period exceeding five years, so long as their maturities coincide with the expected use of funds.

The purchase of any security no listed above, but permitted by the California Government Code, is prohibited unless the City approves the investment either specifically or as a part of investment program approved by the City. Sales prior to maturity are permitted. It is also recognized that in a changing interest environment, it may be financially advantageous to sell investments at a book value loss if it is feasible to do so.

Repurchase Agreements.

A purchase of securities by the City pursuant to an agreement by which the seller will repurchase such securities on or before a specified date, or on demand of either party, and for a specified amount.

Investments in repurchase agreements will be used solely as short-term investments not to exceed 30days.

Other
Other investments that are, or may become, legal investments through the State of California Government Code, only with prior approval of the City Council.

XIII. Investment Pools
The City’s investment policy authorizes participation in the California LAIF investment pool. A review of this pool should be conducted on a periodic basis. Best efforts will be made to acquire the following information:
• Eligible Securities: Description of eligible investment securities and investment policy • Interest Allocation: Description of how gains and losses are treated. • Safeguarding: Description of how the securities are safeguarded • Audit: Copy of the most recent independent audit report • Authorizations: Description of who may invest in the program • Statements: Schedule for receiving statements and portfolio listings • Fees: Information on how and when fees are assessed
• Bond Proceeds: Acceptance or eligibility to receive bond proceeds PGCC 10-15-25

Section VIII (F) allows investments in other instruments with City Council approval. This could include the placement of funds in an additional investment pool or mutual fund. The documentation referenced within this section shall be evaluated prior to recommending participation in a new investment pool or a mutual fund. (XXX add this paragraph to budget document)
XIV. Investment Reports
Reports shall be submitted to the City Council quarterly and include the following data:
• Financial Institutions: Name of Financial Institutions • Investment Categories: Totals by each category
• Investment Details: Book and market values and interest yields • Compliance Review: Compliance of investments with investment policy • Maturities: Maturity dates on individual investments
• Distribution: Percentage in each investment category
The report shall include a statement denoting the ability of the City to meet its expense requirements for the next six months or provide an explanation as to why sufficient monies may not be available during the next six months. The report should include information on overall economic conditions, including trends with inflation, unemployment, sales and treasury rates. Background information on investment pools should be included in the report, including information on the distribution of their investments and their interest rate trends.

Adopted September 15, 2010, Resolution 10-078
Amended October 21, 2015, Resolution 15-055
Amended August 17, 2016, Resolution 16-047
Amended June 19, 2019, Resolution 19-016
Amended August 4, 2021, Resolution 21-025
PGCC 10-15-25

City of Pacific Grove
Council Policy
Subject Policy Number Effective Date Page
Budget and Financial
Management 400-6 October 15, 2025 Page 1 of 7
I. Purpose
This Budget and Financial Management policy is designed established to help ensure that the City’s  financial resources are available managed in a manner that fosters administrative transparency and confidence among the City  Council,  citizenry,  and  staff  that  the  City’s  resources  shall  be  available  to  fund  ongoing  City  services, incorporating consistent with local economic conditions and the City Council’s service priorities. The operating and capital budgets should be designed in accordance with the budget award programs of the Government Finance Officers Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO).

II. Budget Process
Budget management  occurs throughout the  year,  year-round, with  ongoing City Council  direction  and  public input. In addition to formal updates on the budget and fiscal forecast, staff provide periodic updates on revenues and expenditures. The City uses a five-year fiscal planning horizon, in which the two-year annual budget is the first two years year of the forecast. The forecast is a tool that helps decision-makers identify important trends and understand long-term consequences of budget decisions. Importantly, the forecast is not a budget and does not represent a plan. It is a model based on cost and revenue assumptions that is updated periodically continuously.

Since the degree of revenue uncertainty increases with each successive year of the forecast (i.e., we can place much more confidence in projections for the first year of the forecast period than for the last, the forecast is a more viable framework for decision-making in the near-term, and only suggests relative financial health based on stated economic assumptions in the later years.

The  annual  budget  process  begins  by  in  January  or  February  with  City  Council  discussion  of  goals  for  the following year. At this meeting, staff present the mid-year report and if completed an updated version of the current  year  budget  and  five-year  fiscal  forecast,  as well  as  estimates  of  revenues  for the  following  year  and baseline expenditure assumptions. Baseline expenditures include existing staffing levels and other costs required to continue current service levels. At this meeting, the City Council provides direction to staff on the goals for the following budget year and five-year forecast, which include both goals for services and capital projects as well as the amount of additional funding or expenditure reduction required to achieve the goals.

Based on this direction, The Finance Division City Manager distributes budget instructions and baseline staffing cost  information  to  department  managers  for  developing  the  budget.  Subsequently,  the  City  Manager  and Administrative Services Finance Director work with department directors and program managers to develop the budget consistent with Council goals.

In February and March, the City Council reviews evolving revenue information and expenditure assumptions and determines the process for City Council consideration of the budget.   The City Manager and Administrative Services Director finalize the recommended budget and present it to the City Council in May. After public input and  discussion  at  this  meeting,  the  City  Council  either  directs  modifications  to  the  budget  or  introduces  an ordinance  adopting the  budget.  At the  second  reading  of the  ordinance  at  a  subsequent  regular City Council meeting, the budget is adopted and effective July 1st of the fiscal year.  The Administrative Services Director may make any non-substantive changes afterwards to meet the GFOA and CSMFO award program criteria.

PGCC 10-15-25

III. Cost Allocation
The City uses a formal cost allocation plan and fee study which serves as the basis for allocating central support  department  costs  to  operational  functions  and  developing  overhead  rates.  Central  support departments include: City Council, City Attorney, City Manager, Administrative Services, Mechanical and Building and Grounds Maintenance. Costs are allocated based on the support activities, including number of financial transactions, square footage of buildings, number of computers, percent of budget, and number of full-time equivalent employees. Indirect costs are charged to the City’s enterprise and internal service funds based on this method; however, the basis is unique to each fund.

IV. Operating Budget
Budget Adoption
The City Council shall adopt an annual operating budget as part of a two-year budget, pursuant to Article 29 of the City Charter, prior to starting the fiscal year.

Revenue Contingencies
General Fund revenue projections for a year may include a negative contingency reserve of up to 2% of total  revenues,  depending  on  the  direction  of  the  economy.  The  need  for  such  a  contingency  can  be reevaluated after January 1st of the budget year.

Expense Contingencies
The budget may include an expenditure contingency in the General Fund up to 2%, designed to account for  unexpected  costs  or  to  spend  on  projects  required  to  advance  City  Council  goals,  expressed  either explicitly or through the City Council’s work plan.

Balanced Budget
The operating budget should include revenues sufficient to fund operating expenditures. Reserves may be used as a resource to fund operations, with City Council approval of such use and a plan for funding future operations within annual anticipated revenues.

Maintenance
The budget should provide for maintenance and timely replacement of fixed assets and equipment working within the fiscal constraints of the City.

IV. Operating Budget (Continued)
Reporting
After the end of the fiscal year, staff shall present a report to the Council estimating the year-end results for the preceding fiscal year. This report shall compare budgeted amounts with the most recent year to date actual figures. Staff shall strive to present to the Council the final Annual Financial Comprehensive Report (ACFR) in January.

Budget  Control  Appropriations  are  approved  at  the  fund level.  All  budget  amendments  where  the  net impact of the change increases the overall budget of a fund must be approved by the City Council.

PGCC 10-15-25

The City Manager or  their  designee  shall  have  authority to transfer  funds within  a  given  fund  and  between department  appropriations  to  ensure  that  program  budgets  may  adapt  throughout  the  year  to  evolving circumstances. Departmental appropriations in the 5100 series of the chart of accounts (salary and benefits) that reflect salary and benefit savings, may not be used to offset expenditures in the 5200 series of account codes (services and supplies) or the 6000 series of account codes (capital expense) without the express, written approval of the City Manager or designee. These changes shall have no negative net effect on the given fund or the General Fund.

V. Five Year Forecast
Staff shall maintain a five-year General Fund fiscal forecast to include revenues, expenditures, as well as the net results of operations and the beginning and ending fund balances for each year of the forecast.  The five year forecast  should  include  descriptions  of  the  assumptions  used  for  projecting  future  revenues  and expenditures  which  account  for  recent  trends  including  inflation,  the  five  year  CIP,  employee memorandums  of  understanding  (MOUs),  debt  service  schedules  and  actuarial  reports  on  pension obligations from CalPERS.

VI. Capital Improvement Plan
The City shall adopt a five-year capital improvement and maintenance plan, with the first two years year of the plan to be appropriated as part of the operating budget. The purpose of the plan is to identify and prioritize capital project needs. The budget shall also include capital expenditures; where possible, such capital expenditures will be funded with non-recurring revenues or grants.  At least the first two years of the plan shall be fully funded, with funding shortfalls and challenges clearly identified in remaining years.

All estimated construction, maintenance, and operating costs and potential  funding sources  for each proposed capital improvement shall be identified. The City should finance only those capital improvements consistent with the adopted capital improvement plan and City priorities. All capital improvement operating and maintenance costs shall be included in the fiscal forecast.

VII. Basis of Accounting and Budgeting
Financial statements are prepared in accordance with General Accepted Accounting Principles and all relevant Pronouncements promulgated by the Governmental Accounting Standards Board (GASB). All governmental fund types are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets (usually within 60 days of the end of the fiscal year).

Expenditures  are  generally  recognized  under the modified  accrual  basis  of  accounting  when the  related  fund liability is incurred. An exception to this general rule is principal and interest on general long-term debt, which is recognized when due. Financial resources usually are appropriated in other funds for transfer to a debt service fund in the  period in which maturing  debt  principal  and interest must  be  paid.  Such  amounts  are  not  current liabilities of the debt service fund, as their settlement shall not require expenditure of existing fund assets. All proprietary fund types and nonexpendable trust funds are accounted for using the accrual basis of accounting.

Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred.

PGCC 10-15-25

The  budgeting  basis  is  the  same  as  the  basis  of  accounting,  except  for  the  exclusion  of  non-cash expenditures,  such  as  depreciation,  changes  to  the  pension  and  OPEB  liability,  amortization  of  bond premiums and discounts, and for proprietary funds, the inclusion of capital expenses, debt service and loan proceeds. Finance is authorized to carryover any unspent and encumbered funds from the prior year for operations  and  capital  projects  and  any  other  unspent  funds  for  active  capital  projects,  to  be reappropriated in  the current year’s budget  for continued use in  the same manner so long as  there are sufficient available fund balances to finance these commitments.

VIII. Annual Audit and Reporting
The  City  shall  undertake  an  annual  independent  audit.  The  City’s  Annual  Comprehensive  Financial Report (ACFR) should be completed no later than December 31 of each year and shall be in accordance with auditing standards established by the Governmental Accounting Standards Board (GASB).

Staff should prepare the ACFR and the related Popular Annual Financial Report (PAFR), a summary of the  ACFR,  in  accordance  with  the  GFOA  Certificate  Program  and  include  the  auditor’s  opinion.  A separate  “management  letter”  will  be  issued  by  the  auditor  to  address  weaknesses  and  include recommendations for improvements in internal control and accounting procedures.

Besides the reports mentioned above, the following must be issued annually:
 Single Audit reports are required when the City receives at least $1 million of direct or pass through federal grants.
 Other  reports  required  by  the  State,  including  the  Controller’s,  Employee  Compensation, Appropriations (Gann) Limit and Impact Fees reports
IX. Fund Reserves
Reserves are established to ensure that sufficient  resources should be maintained in the specified  funds listed below in amounts sufficient to manage reasonable risks, meet unanticipated needs, capitalize on opportunities, and  provide  for  reasonable  contingencies.  Further,  reserve  balances  should  be  categorized  and  prioritized  in accordance with GASB Statement #54, which are classified as either committed, assigned, or unassigned. If reserve balances  fall below the stated target amount, the City will strive to  restore  reserves to the stated level within four five fiscal years. The actual City reserve balances shall be reported each year, along with City reserve policy levels. The reserve information should appear in the ACFR. Unrestricted fund balance levels will be sufficient to meet funding requirements for approved programs or projects which are carried forward from the prior year; debt service reserve requirements; commitments for encumbrances; and other restrictions required by contracts, state law and generally accepted accounting principles.

X. General Fund Reserves
The  City  should maintain  a minimum  unassigned  fund  balance  of  at least  25%  of  operating  and  debt service  expenditures  in  the  General  Fund  for  fiscal  stability,  cash  flow,  contingencies  and  strategic opportunities, including addressing the following in accordance with policies developed by the GFOA:
 Revenue source stability, local disasters and downturns in the economy  Contingencies for unseen operating or capital needs
 Investment opportunities in the community approved by Council  The need to provide short-term bridge financing to other funds PGCC 10-15-25

 Other, such as State budget takeaways and unfunded mandates Reserves should not be used to fund ongoing costs or projected systemic “gaps.” on a perpetual basis. They should be restricted to one-time or short-term uses. The Council may also commit or assign specific General Fund  balance levels  above  the  reserve  target  for  capital  replacement  (based  upon  the  five  year  capital improvement  program),  technology  and  vehicle  replacement  (based  upon  future  expected  replacement costs), unfunded pension and compensated absence liabilities or other long-term goals that it determines to be in the best interests of the City, with a minimum reserve level of $1,000,000 each for unfunded liabilities related to pension and compensated absences, and capital replacement.

In  any  fiscal  year  where  revenues  and  transfers  in  exceed  expenditures  and  transfers  out,  the  annual surplus for the fiscal year should be allocated first to help meet the reserve policies for the General and Insurance  Internal  Service  Funds.  Any  remaining  surplus  should  be  allocated  ⅓  towards  reserves  for capital,  technology  and  vehicle  replacement,  ⅓  towards  addressing  unfunded  pension  and  long-term liabilities, and ⅓ towards other Council priorities or to build up reserves for the future.

XI. Golf Fund Reserves
The purpose of the Golf Fund is to enable operation of the golf course as an enterprise without operating subsidies from the  General  Fund,  unless  deliberately  authorized.  The City  establishes  a target  reserve level  of  25%  of expenditures  revenues  of  the  Golf  Fund,  as  of  June  30th  of  two  fiscal  years  prior,  to  be  used  for  capital improvements,  cash  management,  and  unexpected  operating  expenses.  emergency  protection.  Given  the vulnerability of the golf business to recession, 20% of the 25% would be retained for use in mitigating the effects of  unexpected  revenue  downturns,  and  5%  would  be  available  retained  for  emergency  repairs  or  other emergencies.

XII. Sewer / Insurance Internal Service Funds Reserves
The Sewer Fund should maintain a reserve to fund at least two years of projects to be funded by the Sewer Fund in the City’s five year capital improvement plan and as a rate stabilization reserve.  The Insurance funds  should  maintain  a  balance  of  current  assets  equal  to  75%  of  total  liabilities,  or  higher,  should actuarial  analysis  conclude  an  imminent  higher  risk  to  the  City  for  losses.  Note  that  for  the  worker’s compensation  fund  the  City’s  Self-Insured  Retention  Limit  is  $150,000  per  claim  and  $200,000  for  its Liability fund.

XIII. Capitalization Policy
All capital outlay with an original cost > $5,000 and a useful life > one year is subject to capitalization. The capitalization threshold is applied to individual units of fixed assets:
 To be adjusted in increments of $1,000 based upon changes in the Bay Area Consumer Price Index (CPI)
 Repair costs for fixed assets to be capitalized when it extends the useful life of the asset  For construction in progress, no depreciation is recorded until the asset is placed in service  The City shall use the straight-line method for depreciating all fixed assets  Depreciation should begin in the fiscal year the asset is placed in service PGCC 10-15-25

Any  capital improvement  project  related  to  buildings, infrastructure, machinery,  or  equipment, with  a useful life > one year and a total cost (including installation) > $50,000 or more is subject to capitalization.

This  amount  should  be  adjusted  in  increments  of  $5,000  in  future  years,  based  on  changes  in  the Engineering Construction Index (ENR). Capital project appropriations should remain in effect for the life of the project unless modified by the City Council. Fixed assets acquired by gift, donation or payment of a nominal sum not reflective of the asset’s market value shall be assigned cost equal to the fair market value at the time of receipt.

The following represents the useful life schedule to be used for capital outlay and capital projects:

Description Useful Life (In Years)
Buildings 20-100
Machinery, equipment and furniture 5-7
Infrastructure:

Improvements other than buildings 5-30
Sidewalks, curbs, gutters, streets, storm drains 20-50
Traffic signals / Street signs 15
Park equipment 10-50
XIV. Property Acquisition and Disposition
Acquisition of real property should be tied to a specific objective, with the source of adequate funds identified and considerations  given  for the long-term  fiscal and  policy impacts.  Disposition  of  real  property should  be considered  for  those  properties  without  specific  deed  restrictions  and  that  are  unused,  under-utilized, economically not viable, or that were acquired for an outdated plan or purpose.

XV. Debt Management
The City should manage its debt in conformance with policies established by CDIAC and SB 1029, which provide the parameters to be addressed in a debt policy, including the purposes for which debt proceeds may be used, the types of debt that may be issued, the relationship of the debt to, and integration with, the capital  improvement  program  or  budget,  the  policy  goals  related  to  the  City’s  planning  goals  and objectives,  and  the internal control procedures implemented  to ensure  the proceeds  of  a proposed debt issuance will be directed to the intended use. All issuance of debt requires prior City Council approval.

Long-term borrowing  should be restricted  to  the purpose  of  funding capital improvement projects  and equipment. The use of long-term borrowing for ongoing operations should be avoided. The term of the debt should not exceed the expected useful life of the object of the financing. Debt obligations shall be prioritized in the budget process and payments shall be made in a timely and efficient manner. The annual bonded debt service should not exceed 15% of the annual budget. Staff will time the issuance of debt to ensure that funds are available as needed for projects in the City’s Capital Program and to integrate those costs into its five year forecast and into its projections of fund reserve levels and how they align with reserve goals established by City Council, including ensuring that the debt service has been incorporated into its rate studies
The types of long-term debt that can be issued include the following:
 Revenue Bonds / Bond Anticipation Notes
 Certificates of Participation or Lease Revenue Bonds
 Federal and State Government Loans (Includes USBR/SRF/WIFIA) PGCC 10-15-25

 Lines of Credit / Refunding Bonds / Privately Placed Debt (Bank Loans)  Loans, including Equipment / Capital Lease Financing and Commercial Paper  Assessment and Special Tax (Mello Roos) Bonds
Refunding techniques should be employed where appropriate to allow for restructuring of outstanding debt to remove or change restrictive covenants, and/or to reduce annual debt service in an amount sufficient to justify the costs related to restructuring the debt, usually considered to be savings with a net present value of at least 3%. In circumstances where short-term borrowing (i.e., fewer than 12 months) is required to ensure cash flow demands may be met, either Tax and Revenue Anticipation Notes (TRAN), interfund loans or a commercial line of credit can be used, factoring in costs and administrative efficiencies.

The City will use the following internal controls regarding the use of bond proceeds: a.) Finance staff to review the approved use of bond proceeds with department staff authorized to initiate contracts to ensure proper use of funds. b.) Finance will educate staff responsible for preparing purchase orders and processing payments as  to proper account coding and items  that can be expended using bond proceeds and c.)  the Administrative Services Director will review and approve all draw-down requests.

XVI. Long-Term Interfund Loans
City Council approval should be obtained prior  to  the establishment of an interfund loan agreement of more than one year, incorporating the following terms into the interloan agreement;  A specific repayment date for the loan
 Specific revenue pledged to repay the loan based on realistic expectations for receipt  Funds pledged for repayment must be above the funds needed for annual operations; and  Interfund loans may be made from grant funds only if specifically authorized by the grantor  Borrowing fund(s) should pay interest at least at the rate earned on the City’s pooled investments Acronyms
USBR  United States Bureau of Reclamation
SRF  State Revolving Fund
WIFIA  Water Infrastructure and Innovation Act
Adopted:  Resolution 11-086 November 2, 2011
Amended:  Resolution 14-063 October 1, 2014
Amended:  Resolution 15-055 October 21, 2015
Amended:  Resolution 16-048 September 7, 2016
Amended:  Resolution 18-008 March 7, 2018
PGCC 10-15-25

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: John Kuehl, Building Official
MEETING DATE: October 15, 2025
SUBJECT: Second Reading of an Ordinance Adopting the California Building Standards Code with Local Amendments
CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Hold second reading and adopt an ordinance that adopts the 2025 Edition of the California Building Standards Code, with local amendments.

DISCUSSION
No changes were made between the first and second readings of the ordinance. The City Clerk caused a summary of the ordinance to be published on October 9, 2025.

The California Building Standards Code, which includes sections regulating building, fire, electrical, plumbing, and mechanical construction and installation standards are revised on a multi-year cycle. In January 2025, the State adopted and approved the 2025 Edition of the Building Standards Code, also known as the 2025 California Codes. These codes were published July 1, 2025 and will become effective January 1, 2026.

All local jurisdictions in California are mandated to begin enforcement of these new codes and standards by January 1, 2026.

Typically, and in accordance with state law, local jurisdictions incorporate additional regulations that address special circumstances in the community or area. The need for these amendments are to address local geographical, topographical, climatic, or environmental conditions and each amendment is supported by a finding that identifies which of these local conditions is being addressed. City staff have developed and incorporated a few local amendments into the Building Code being considered by the City Council. These amendments are consistent with and were included in past code adoptions and are an element of the existing codes in effect. However, not all the past amendments have been carried over because they have been incorporated into the 2025 California Code and thus there is no longer a need to include them as local amendments.

For each amendment to be effective, they must be adopted by the City Council along with the model codes that have been adopted by the state. Council could choose to adopt the new 2025 Edition of the Building Standards Code with no changes. However, the amendments have been found necessary to address local conditions and it is staff’s opinion that the amendments be adopted.

PGCC 10-15-25

Staff have worked with the Deputy Fire Marshall on local code amendments to include the addition of fire sprinklers on major remodel projects. These fire sprinkler requirements have been included among the amendments of prior code adoptions, and it is appropriate to adopt them again. It is also important to note that the State has printed a new Building Standards Code. This is now referred to as the Wildland-Urban Interface Code. The information contained in this new code is not new. In the previous editions the information was built into the body of both the Building and Fire Codes. Now it is a stand-alone code.This new code applies to new construction, and not to be confused with the recently adopted fire severity zone maps. The California State Fire Marshal will be providing the State with new guidelines and requirements for the maintenance of the exterior of existing properties.

The introduction of the 2025 California Codes with local amendments will allow staff to return at the next City Council meeting with an ordinance that is ready for adoption. If adopted at the next meeting of the City Council, the 2025 California Building Code will be ready for implementation on January 1, 2026, in line with state laws, and the codes will continue to mandate construction and installation standards that provide for improvements that result in safe and habitable structures in the City.

OPTIONS

1. Adopt the 2025 California Building Code with proposed amendments.

2. Adopt the 2025 California Building Code with no changes or amendments.

Decline adoption of the 2025 California Building Code and allow it to become effective on January 1, 2026 by process of law.

3. FINANCIAL IMPACT:

No significant fiscal impacts are expected in the adoption of an ordinance that implements the 2025 California Codes.

FOCUSED PRIORITY AREA: Community Development
Attachments
Attachment 1 An Ordinance Adopting the California Building Standards Code PGCC 10-15-25

4897-0220-1705 v1
1 ORDINANCE NO. 25 –
AN ORDINANCE OF THE CITY OF PACIFIC GROVE AMENDING
CHAPTERS 18.04 AND 18.32 OF THE PACIFIC GROVE MUNICIPAL CODE ADOPTING THE 2025 CALIFORNIA BUILDING STANDARDS CODE (TITLE 24, CALIFORNIA CODE OF REGULATIONS, PARTS 1 THROUGH 12) AND THE 2024 INTERNATIONAL PROPERTY MAINTENANCE CODE, AND ADOPTING LOCAL AMENDMENTS TO PARTS 2.5 AND 9 OF THE 2025 CALIFORNIA BUILDING STANDARDS CODE
WHEREAS,  pursuant  to  Sections  17922,  17958,  17958.5  and  17958.7  of  the California  Health  and  Safety  Code,  the  City  of  Pacific  Grove  (“City”)  may  adopt  the provisions of the International Building Code, the Plumbing Code, the Mechanical Code, the Fire Code, the, and the National Electrical Code, to  protect the  health, welfare and safety  of  the  citizens  of  Pacific  Grove  because  of  local  climatic,  geological, topographical, and Environmental conditions; and
WHEREAS, pursuant to Government Code 50020, the public hearing occurs at the second reading of this ordinance et seq; and
WHEREAS, this Ordinance is found to be categorically exempt from environmental review, per the provisions of Section 15061(b)(3) of the California Environmental Quality Act (“CEQA”) of 1970, as amended; and WHEREAS, in accordance with state law, local jurisdictions can incorporate additional regulations that address special circumstances in the community or area provided that they are at least as restrictive as the statewide codes.

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

SECTION 1. FINDINGS. The Pacific Grove City Council hereby finds as follows:
a. Each recital set forth above to be true and correct, and by this reference incorporates each as an integral part of this Ordinance. b. This Ordinance includes specific amendments which are more restrictive in nature than those sections adopted by the State of California (State Building Standards Code, and State Housing and Community Development Code) commonly referred to as Title 24 and Title 25 of the California Administrative Code.  These “Findings of Fact” are submitted and made a part of this Ordinance pursuant to Section 17958.5 and Section 17958.7 of the California Health and Safety Code.  Under the provisions of Section 17922.2 of the California Health and Safety Code, local amendments shall be based on climatic, geographical, or topographical conditions. The Findings of Fact contained PGCC 10-15-25

4897-0220-1705 v1
2 herein shall address each of these situations and shall present the local situation, which either singularly or in combination causes the established amendments to be adopted. c. The City of Pacific Grove encompasses an area of 4 square miles of land, with resident population of 15,569 as of the 2020 census. The physical location of the city is between the adjacent lands of the City of Monterey and the City of Carmel.  The placement of the residential and commercial development within the City of Pacific Grove has generally adopted itself to areas of least resistance, within the confines of ridges, foothills, mesas, and canyons.  Other unique environmental characteristics include the flatter plains that contain the shoreline of Monterey Bay, which create boundaries that attract the visitor population. Throughout the City of Pacific Grove there are major roadways and highways that create barriers. Other barriers could be considered the military facilities, which include the United States Army, Presidio of Monterey, United States Naval Postgraduate School, and the United States Coast Guard Station as well as the Monterey Peninsula Airport.

While the adoption of the local amendments may not prevent the incidence of fire or building related accidents, implementation of these various regulations and/or requirements may serve to reduce the severity and potential loss of life and property. e. The following are established and submitted as the Findings of Fact to support the amendments to the State Building Standards Code included in this Ordinance.

These Findings of Fact, which identify the various “climatic, geographical, and topographical” conditions, are considered reasonably necessary to modify the requirements established pursuant to Health and Safety Code Section 17922 based upon local conditions:

Climatic I: The climate weather patterns within the City of Pacific Grove are considered to be moderately affected by the ocean bodies of the Pacific Ocean and Monterey Bay, which extend the year around growing season of vegetation.  The normal year’s rainfall is approximately eighteen to nineteen (18-19) inches on the average yearly calendar.  Summer conditions, with the prevalent Pacific High Cell create mid-day fog normally associated with Pacific Grove.  This climatic fog assists the natural vegetation in growth.

Later in the year, the winds and drying vegetation mix to create a hazardous fuel condition, which has caused grassland and brush land fires in recent years.  While normal temperatures usually do not exceed 75-80 degrees, during late summer and early fall (August, September, October) the temperatures can climb to 85 degrees plus.  The afternoon winds can move a fire quickly in the hillsides and canyon areas of the city.

Because of weather patterns and population increases, the City of Pacific Grove (like other California cities) has experienced water rationing and water allocation.  Due to storage capacities and consumption, as well as climatic conditions, limited water resources are an issue.

While sound management of the water resources is possible, actual demands on an already stressed water supply can most assuredly be predicted.

PGCC 10-15-25

4897-0220-1705 v1
3 Geographical I: The mountains and canyons accent one another, as they wind around the city.  The forested areas along with the lower brush lands give a feel of balance and a sort of backdrop for the city itself.  These geographical features establish the roadways and building sites, as well create barriers for accessibility for fire suppression forces.

The forested areas of oak and pines create windbreaks from oncoming winds, while producing fuel from the annual fall leaves, which drop to the ground, as well as from decayed trees and branches.  The dry vegetation, mountainous terrain, and minimal water available tend to cause concern and added fire problems.

The City of Pacific Grove has within its boundaries potentially active seismic hazards with respect to the “Navy,” “Berwick Canyon,” “Chupines” and “Seaside” faults.

While systems have been developed to study and monitor the activity of earthquakes, science has not yet been able to predict (with reliability) the potential for activity on these or any active fault.

Seismic activity within the City occurs yearly with little or no damage, although real potential for damage does exist with these four active faults.  New construction may be limited by its respective distance to such faults, and replacement of existing structures could be costly.

The geographical layout of the forested areas creates hazardous conditions when a storm of gale-force winds causes trees to fall onto roadways used for access by Fire Department equipment and personnel.  The growing pattern and inherent nature of the Monterey Pine lends itself to being blown over easily.  This is due in part to the shallow root system associated with the Monterey Pine tree.

Landslides have also been experienced within the City of Pacific Grove, due to excessive land cuts associated with the roadway systems designed within the city.  While stability can sometimes be provided, heavy rainfall has caused failures.  These failures have closed roadways within the city, again making accessibility impossible until properly cleared.

Mountains and hills surrounding and within the City of Pacific Grove, create more than 60% slopes with an overall average of between five to ten percent throughout (if an average slope were to be accessed).  The City of Pacific Grove has a start at sea level and extends to areas more than 600 feet above sea level.  The elevation change caused by the mountains and hills creates the geographical foundation on which the city has built and will continue to build.  With much of the flatlands already built upon, it can be anticipated that future growth will occur on steeper slopes and with greater contrasts in terrain.

Geographical II: The region is in an area of high seismic activity as indicated by United States Geological Survey and California Division of Mines and Geology.  Recent earthquake activity has indicated the lack of flexibility of materials and/or building systems has been a contributing factor to damages that reduced the protection of the lifesafety of building occupants and increased the cost of rehabilitation of structures.

Activities have indicated the need for increased levels of safety in buildings systems, including but not limited to means of egress, wiring systems, and fire protection systems.

Topographical: The topographical finding is associated closely with Geographical finding II.  While the geographic features create topographic conditions, the findings in this section are caused by the construction and design of the City of PGCC 10-15-25

4897-0220-1705 v1
4 Pacific Grove, due to the elevation changes, as well as mountains and hills, that dissect the City.

The water supply (domestic and fire flow) system is directly affected by the topographic layout.  The distribution system consists of water lines that carry the water from storage tanks and dammed areas to the public via pipes.  These street mains create lift-zones where the pressure and flows are adequate at lower elevations and minimal, sometimes critical supplies at the top.  Water supplies within the City of Pacific Grove vary from less than 250 gallons per minute to flow more than 5,500 gallons-per-minute.

This wide variation may cause problems for development, as well as fire suppression forces.

The roadway system is designed around the topography with respect to narrow, windy, steep grades and overhanging tree branches.  The grades on the roadway surfaces exceed 25% and widths of less than twelve (12) feet for access are not uncommon.  Due to traffic congestion on many streets, especially the commercial downtown area, vehicles double park for loading and unloading purposes.  This creates barriers that reduce response time of fire equipment.

The topography also makes construction more restricted to the level portions of the city with higher concentrations of building in these areas.  The existing structures are being removed and replaced with larger, more cost-effective buildings.  Those existing structures which remain cause concern to the Fire Department because of their lack of adequate fire protection (firewalls, fire extinguishing systems, etc.).  The hazard exposure created by these structures poses a separate and significant problem.

It is not uncommon to see a single or two-story building torn down and replaced with a two-story building.  For practical and cost reasons, these new structures are built of wood (Type V).  The potential for conflagration exists with the high build out of the various specific areas of Pacific Grove.  The concentrated commercial, as well as residential occupancies cause concern regarding the exposure elements of building-tobuilding and building-to-grassland areas of this City.

The topographical nature of Pacific Grove also lends itself to power failures caused when trees and tree limbs damage sections of electrical transmission lines.  These power failures cause the electrical pumps to become inactive, interrupting water supplies.

Vehicular accidents also have been known to interrupt this pumping operation, due to the narrow streets, which are congested with residents and visitors.

The natural rocky shorelines of Pacific Grove create a situation by which access to the building can only be made from the street.  The front of the building is essentially the only accessibility point for responding firefighters.  Built property-line to property-line, these structures create an element of construction of nearly nine blocks of continuous construction. Residential as well as commercial occupancies can be found along the entire shoreline of Monterey Bay.

Lastly, some older buildings in the City are constructed closer than would be presently allowed under the International Building Code.  Construction methods were also less restrictive than would be required today.  These structures and settings create barriers, which firefighters must work around and protect them from exposure.

PGCC 10-15-25

4897-0220-1705 v1
5 Findings for Residential Unit impacts: “(1) The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025.
(2) The commission deems those changes or modifications necessary as emergency standards to protect health and safety.
(3) The changes or modifications relate to home hardening. (4) The building standards relate to home hardening and are proposed for adoption by a local fire prevention district pursuant to Section 13869.7. (5) The changes or modifications are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy.
(6) The changes or modifications are related to administrative practices, are proposed for adoption during the intervening period pursuant to Section 18942, and exclusively result in any of the following:
(A) Reductions in time for a local agency to issue a post entitlement permit. (B) Alterations to a local agency’s post entitlement fee schedule. (C) Modernization of, or adoption of, new permitting platforms and software utilized by the local agency.
(D) Reductions in cost of internal operation for a local agency. (E) Establishment, alteration, or removal of local programs related to enforcement of building code violations or complaints alleging building code violations.”
SECTION 2. AMENDMENT OF SECTION 18.04.010. Section 18.04.010 of the Pacific Grove Municipal Code is amended in its entirety to read as follows:

18.04.010 Adoption of building codes; amendments.

Except as amended by this section and other sections within this title 18, the following amended model codes are hereby adopted by reference and are incorporated in this chapter as if fully set forth herein, as authorized by Government Code Section 50020 et seq. The city manager may enforce these codes in accord with the enforcement procedures and remedies set forth in Chapter 1.19 PGMC, in addition to any other provision of law.
(a) Model Codes Adopted. The following amended model codes are hereby adopted by reference as if set forth fully herein:
(1) 2025 California Administrative Code (Title 24, California Code of Regulations, Part 1);
PGCC 10-15-25

4897-0220-1705 v1
6 (2) 2025 California Building Code (Title 24, California Code of Regulations, Part 2);
(3) 2025 California Residential Code (Title 24, California Code of Regulations, Part

2.5, including Appendix BO):
(4) 2025 California Electric Code (Title 24, California Code of Regulations, Part 3); (5) 2025 California Mechanical Code (Title 24, California Code of Regulations, Part 4);
(6) 2025 California Plumbing Code (Title 24, California Code of Regulations, Part 5);
(7) 2025 California Energy Code (Title 24, California Code of Regulations, Part 6); (8) 2025 California Wildland-Urban Interface Code (Title 24, California Code of Regulations, Part 7);
(9) 2025 California Historic Building Code (Title 24, California Code of Regulations, Part 8);
(9) 2025 California Fire Code (Title 24, California Code of Regulations, Part 9 including appendix B, BB, C, CC, D, E, F, G, H, I, J, K, L, N, O, P, Q); (10) 2025 California Existing Building Code (Title 24, California Code of Regulations, Part 10);
(11) 2025 California Green Building Standards Code (Title 24, California Code of Regulations, Part 11);
(12) 2025 California Reference Standard Code (Title 24, California Code of Regulations, Part 12); and
(13) 2024 International Property Maintenance Code;
(b) Local Amendments. The Model Codes adopted in paragraph (a) of this section are amended as follows:
(1) Residential Code – Amendments to the California Residential Code.

PGCC 10-15-25

4897-0220-1705 v1
7 Section R309.2 exception 1 is hereby amended to read as follows:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025.

Topographical, Geographical 1, Climatic 1.

Section R309.2 exception 1 An automatic sprinkler system shall not be installed for additions, alterations, or repairs to existing buildings which involve the removal or replacement to fifty (50) percent or less of the linear length of walls of the building (exterior plus interior) within a five-year period shall meet the requirements of new construction or this code. To qualify as an alteration or repair, the wall must be physically added, removed, replaced or relocated; removal of wall coverings does not constitute an alteration or repair.
(2) Fire Code- Amendments to the California Fire Code.

Section 101.1 of the CFC is deleted in its entirety and replaced with the following:

FINDINGS; The changes or modifications are related to administrative practices, are proposed for adoption during the intervening period pursuant to Section 18942, and exclusively result in any of the following:
(A) Reductions in time for a local agency to issue a post entitlement permit.
101.1 Title. These regulations shall be known as the Fire Code for the City of Pacific Grove, hereinafter referred to as “Fire Code.”
Section 202 of the CFC is amended to add the following definitions:

FINDINGS; No residential impacts, Topographic 1.
202 Definitions
ALL WEATHER SURFACE. A road surface constructed to the minimum standards approved by the jurisdiction.

BRIDGE. A structure to carry a roadway over a depression or obstacle.

IDLE PALLET. A pallet or similar product storage and/or lifting device not currently in use and empty of product.

PGCC 10-15-25

4897-0220-1705 v1
8 Section 307.1.1 is deleted in its entirety and replaced with the following:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025. Geographical 1, Climatic 1.
307.1.1 Prohibited open burning. Open burning shall be prohibited, including outdoor rubbish fires and bonfires, unless:

1. the fire is confined to an approved container as defined by the Uniform Mechanical Code and authorized by the Monterey Bay Air Pollution Control District.

2. a special condition or circumstance exists, and written authorization is granted by the Fire Chief.

Section 505.1 of the CFC is deleted in its entirety and replaced with the following:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025. Geographical 1, Climatic 1.
505.1 Address Identification.  New and existing buildings shall be provided with an approved address identification. The address identification shall be legible and placed in a position that is visible at all times from the street or road fronting the property.  Address identification characters shall contrast with their background.

Address numbers shall be Arabic numbers or alphabetical letters.  Numbers shall not be spelled out.  Each character shall be not less than 4” high with a minimum width stroke of one-half inch for single family dwellings and duplexes.  For all other occupancies each character shall be not less than a minimum of 4” high with a minimum stroke of one-half inch unless otherwise required by the Fire Code Official.

Section 605.3 of the CFC is amended to add Section 605.3.1 to read as follows:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025. Geographical 1, Climatic 1.

PGCC 10-15-25

4897-0220-1705 v1
9 605.3.1 Spark arrestors.
605.3.1.1 An approved spark arrestor shall be installed on all chimneys, incinerators, smokestacks or similar devices using solid fuel for conveying smoke or hot gases to the outer air.
605.3.1.2 Spark arrestors shall have openings in accordance with Section 2113.9.2(3) of the California Building Code and Section 1003.9.2 of the California Residential Code with minimum openings of 3/8” and maximum openings of ½”.

Section 901.1 of the CFC is amended to add Section 901.1.1 to read as follows:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025. Geographical 1, Climatic 1.
901.1.1 Responsibility. The owner of the protected premises shall be responsible for all fire protection systems within the protected premises, whether existing or installed under this Code.

Section 901.2 of the CFC is amended to add Section 901.2.2 to read as follows:

FINDINGS; The changes or modifications are related to administrative practices, are proposed for adoption during the intervening period pursuant to Section 18942, and exclusively result in any of the following:
(A) Reductions in time for a local agency to issue a post entitlement permit. 901.2.2 Additional documentation. Additional documentation as required by the Fire Code Official shall be provided to the Fire Code Official in an acceptable format.

Section 903.2 of the CFC is deleted in its entirety and replaced with the following:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025.

Geographical 1, Climatic 1.

PGCC 10-15-25

4897-0220-1705 v1
10 903.2 Where required. Approved automatic sprinkler systems shall be provided in all new buildings and structures constructed, moved into or relocated within the jurisdiction.

Exceptions:
(1) Structures not classified as Group R occupancies and not more than five hundred (500) square feet in total floor area.
(2) Detached agricultural buildings, as defined by this code and the CBC, located at least one hundred feet (100) from any other structure or the property line, whichever is closer, and with a maximum size of 10,000 square feet. (3) Accessory structures not classified as R occupancies associated with existing non-sprinklered R-3 occupancies (one- or two-family dwellings) and less than one thousand five hundred (1500) square feet in total fire area with a clearance from the existing R-3 occupancy of not less than twenty (20) feet.

Sections 903.2.1.1, 903.2.1.2, 903.2.1.3, 903.2.1.4, 903.2.1.5, 903.2.3, 903.2.4, 903.2.4.1, 903.7.1, 903.7.3, 903.2.9, 903.2.9.1 and 903.2.9.2 of the CFC are amended as follows:

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025.

Geographical 1, Climatic 1.

The following Sections are amended by changing requirements to five hundred (500) square feet for fire sprinkler installation, as follows (the complete text of the section is not provided):
903.2.1.1 Group A-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.2 Group A-2. Change five thousand (5,000) square feet to five hundred (500) square feet.
903.2.1.3 Group A-3. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.4 Group A-4. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.5 Group A-5. Change one thousand (1,000) square feet to five hundred (500) square feet.
903.2.3 Group E. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.4 Group F-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.4.1 Group F-1. Change two thousand five hundred (2,500) square feet for PGCC 10-15-25

4897-0220-1705 v1
11 woodworking operations to five hundred (500) square feet. 903.2.7.1 Group M. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.7.3 Group M. Change twenty-four thousand (24,000) square feet to five hundred (500) square feet.
903.2.9 Group S-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.9.1 Repair Garages. Change ten thousand (10,000) square feet (2 story buildings) and twelve thousand (12,000) square feet (1 story buildings) to five hundred (500) square feet.
903.2.9.2 Bulk storage of tires. Change twenty thousand (20,000) cubic feet to five hundred (500) square feet.

Section 903.2.8 of the CFC, first paragraph is deleted in its entirety and replaced with the following: Exceptions remain unchanged.

FINDINGS; The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025.

Geographical 1, Climatic 1.
903.2.8 Group R. An automatic sprinkler system installed in accordance with Section 903.3 shall be provided in all buildings with a Group R fire area, including, but not limited to, one- and two-family dwellings, townhomes, and manufactured homes and mobile homes located outside of licensed mobile home parks hereafter constructed, moved into or relocated within the jurisdiction, including all additions to buildings already equipped with automatic fire sprinkler systems.
(Exceptions remain per 2025 California Fire Code)
Section 903.2.22 of the CFC is added to read as follows:

FINDINGS; No residential impacts,  Climatic 1, Topographical 903.2.22 Change of use. Automatic fire sprinklers shall be installed when the occupancy changes from a single occupancy to a mixed-use occupancy which would require the installation of an occupancy separation, or when the occupancy changes from any type of occupancy to an Assembly use occupancy.

Sections 903.3.1.2, 903.3.1.2.1, 903,3.1.2.3, of the CFC are deleted in its entirety and replaced with the following:

FINDINGS; The changes or modifications relate to home hardening, PGCC 10-15-25

4897-0220-1705 v1
12 Climatic 1, Topographical
903.3.1.2 NFPA 13R sprinkler systems. Automatic sprinkler systems in Group R occupancies up to and including four stories in height shall be permitted to be installed throughout in accordance with NFPA 13R as amended in this Code. 903.3.1.2.1 Balconies and decks. Sprinkler protection shall be provided for exterior balconies, decks and ground floor patios of dwelling units where the building is of Type V construction, provided there is a roof or deck above.

Sidewall sprinklers that are used to protect such areas shall be permitted to be located such that their deflectors are within 1 inch to 6 inches below the structural members and a maximum distance of fourteen (14) inches below the deck of the exterior balconies and decks that are constructed of open wood joist construction. 903.3.1.2.3 Attics. Where NFPA 13R sprinkler systems are installed, all attic areas shall be provided with sprinkler protection in accordance with NFPA 13. 903.3.1.2.4 Sprinkler control valves. Where NFPA 13R sprinkler systems are installed, sprinkler system control valves shall be installed in accordance with NFPA 13.

Sections 903.3.1.2, is amended to add section 903.1.2.4, 903.3.1.2.5, 903.1.2.6 and 903.3.1.2.7 to read as follows:

FINDINGS; The changes or modifications relate to home hardening, Climatic 1, Topographical
903.3.1.2.4 Sprinkler control valves. Where NFPA 13R sprinkler systems are installed, sprinkler system control valves shall be installed in accordance with NFPA 13.
903.3.1.2.5 Bathrooms. Automatic sprinklers shall be installed in all bathrooms, regardless of square footage.
903.3.1.2.6 Accessible storage areas. Automatic sprinklers shall be installed in all accessible storage areas.
903.3.1.2.7 Under-stair spaces. Automatic sprinklers shall be installed in all under -stair spaces including all under-stair closets.

Section 5704.2.9.6.1 is amended to add Section 5704.2.9.6.1.0 to read as follows:

FINDINGS: The changes or modifications relate to home hardening, Climatic 1, Topographical
PGCC 10-15-25

4897-0220-1705 v1
13 5704.2.9.6.1.0 Outdoor storage containers and portable tanks. Storage of Class 1 and Class II liquids in above ground tanks outside of buildings is prohibited within the limits established by law as the limits of the jurisdiction in which storage is prohibited except as permitted by the zoning ordinance.

Exceptions:

1. For marine fueling operations, a maximum of 2000 gallons of diesel fuel may be stored and dispensed from an above ground tank as approved by the Fire Chief.

2. Storage tanks of 500-gallons maximum capacity may be used only in conjunction with emergency generators as approved by the Fire Chief.

Section 6104.2 of the CFC is deleted in its entirety and replaced with the following:

FINDINGS: The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025.  Climatic 1, Topographical
6104.2 Maximum capacity within established limits. For the protection of heavily populated or congested areas, storage of liquified petroleum gas shall not exceed an aggregate capacity in any one mercantile occupancy of 200 gallons (757 L) or 40 5-gallon LPG tanks within the jurisdiction unless approved by the Fire Code Official.

Exception: In all other occupancy classifications, the capacity limit shall not exceed 10 5-gallon LPG containers or as determined by the Fire Code Official.

Section D103.2 of the CFC is deleted in its entirety and replaced with the following:

FINDINGS: Not residential impact, .  Climatic 1, Topographical D103.2 Grade. Fire apparatus access roads shall not exceed fifteen (15) percent in grade with a maximum side slope of five (5) percent.

EXCEPTION: Grades steeper than fifteen (15) percent, if approved by the Fire Code Official, shall be paved with perpendicularly grooved concrete.

SECTION 3. REPEAL OF SECTION 18.32.010. Section 18.32.010 of the Pacific Grove Municipal Code is hereby repealed.

SECTION 4.  This Ordinance shall take effect on January 1, 2026.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE THIS ____ day of ____________, 2025, by the following vote:

PGCC 10-15-25

4897-0220-1705 v1
14 AYES:

NOES:

ABSENT:

APPROVED:
____________________________
Nick Smith  Mayor
ATTEST:
_________________________________
Sandra Kandell City Clerk
APPROVED AS TO FORM:
_________________________________
Brian Pierik, City Attorney
PGCC 10-15-25

Agenda No. 8 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Nicholas Cina, Finance Management Analyst
MEETING DATE: October 15, 2025
SUBJECT: Check Register and Core Fund Summary - September 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive the Check Register and Core Fund Summary.

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

DISCUSSION
In accordance with Article 23 of the City Charter, a report including the monthly receipts, disbursements, and fund balances is attached.

In addition, a detailed listing of the check register is on the city’s website.

The check register is an account of monthly expenditures. It provides budgetary insight and promotes transparency. The check register is produced from the City’s financial system. The report groups the checks by the respective city fund. Attached is the check register report for September 2025.

The Administrative Services Department produces Monthly Core Financial reports to assist in evaluating the City's fiscal condition. The attached report provides details on General Fund revenues as well as a summary related to its other funds.

OPTIONS
N/A - This is informational only.

FINANCIAL IMPACT:

There is no fiscal impact. This is informational only.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Check Register (By Detailed) - September 2025
PGCC 10-15-25

Check Register (By Detailed) - September 2025
Check Register (By Fund) - September 2025
Core Fund Summary and GF Revenue
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
01 - General Fund 9/3/25 County Of Monterey Ceqa Noe Gw Park Ad $ 50.00 At&T Mobility Library Phones 1990 222.06
Pd Cell Phones 5185 1,787.67
Verizon Business Pd Data 371210040 567.07
Pw Phones Aug 737.78
Admin Data 72.87
Library Data 76.02
Cmo Phones Aug 89.39
Pd Phones Aug 99.87
Cdd Phones Aug 159.73
Admin Phones Aug 212.21
Pw Data 62.07
Fd Phones Aug 63.26
Rec Phones Aug 37.32
It Phones Aug 40.88
9/5/25 Aflac Ded:5200 Aflac Prem 694.67
Ded:5201 Aflac P/T 1,356.38
Calif Law Enforcmen Ded:3200 Ltd Pd 512.00
Calpers Health Ded:128 Health Emp 556.45
Ded:2072 Health 1,109.00
Ded:129 Health 1,134.79
Ded:3053 Health Fam 1,446.77
Ded:2071 Health 1,462.50
Ded:126 Health 1,475.23
Ded:4304 Hlth Retro (168.56)
Ded:111 Health 1,633.65
Ded:108 Health 1,918.93
Ded:112 Health 2,225.80
Ded:3051 Health Emp 2,225.80
Ded:103 Health 3,041.10
Ded:104 Health 3,041.10
Ded:106 Health 3,690.25
Ded:124 Health 4,425.69
Ded:116 Health 506.85
Ded:123 Health 5,673.95
Ded:122 Health 11,348.00
Ded:105 Health 7,906.86
Ded:2073 Health Fam 8,331.00
City Of Pacific Gro Ded:3301 Aflac Med 1,520.72
Eft Ded:*Fm Medicare 11,187.60
Ded:*Sca State Tax 15,986.57
Ded:*Ft Federal Tx 40,222.86
Franchise Tax Board Ded:7502 Wage Garn 1,368.78
Pacific Grove City Ded:7000 Assoc Dues 856.00
Mass Mutual (457 Pl Ded:3999 Roth Ira 1,348.00
Ded:4000 Def Comp 11,611.60
Mtry County Dept Of Ded:0023 Garnish 463.07
Pacific Grove Manag Ded:7203 Assoc Dues 40.00
City Of Pacific Gro Ded:1006 Work Comp 54.64
Ded:1009 Work Comp 215.91
Ded:1005 Work Comp 1,525.22
Ded:1003 Work Comp 5,241.26
Ded:1010 Work Comp 3,153.03
Ded:7510 Pers Reimb 41.15
Ded:200 Dentaleoer 271.59
Ded:2103 Dental Fam 1,559.90
Ded:2101 Dentaleoee 978.98
Ded:2102 Dental+1Ee 1,022.08
Ded:0005 Suta 136.47
Pers Ded:2003 Pers Other 173.96
Ded:15 Pers-Retro 204.77
Ded:0004 Surv Ben 86.49
Ded:08 Pers Other 354.98
Ded:0022 Pers Sp Ms 218.16
Ded:0009 Pers Other 478.02
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Ded:0018 Pers Sp Sf $ 494.16
Ded:0019 Pers Rt Sf (3.44)
Ded:0025 Pers Rt Ms 22.83
Ded:2000 Pers Emply 3,784.48
Ded:0002 Pers 2,821.00
Ded:2001 Pers 2,193.46
Ded:0017 Pers Rg Sf 6,314.65
Ded:07 Pers City 6,403.92
Ded:0006 Pers City 6,702.50
Ded:0011 Pers Er Sf 6,924.17
Ded:0021 Pers Reg M 15,189.32
Ded:0020 Pers Er M3 15,848.43
Ded:01 Pers 9,578.43
Ded:0019 Pers Rt Sf 3.44
Ded:0025 Pers Rt Ms (22.83)
Ded:0004 Surv Ben (86.49)
Ded:2003 Pers Other (173.96)
Ded:15 Pers-Retro (204.77)
Ded:0022 Pers Sp Ms (218.16)
Ded:08 Pers Other (354.98)
Ded:0009 Pers Other (478.02)
Ded:0018 Pers Sp Sf (494.16)
Ded:2001 Pers (2,193.46)
Ded:0002 Pers (2,821.00)
Ded:2000 Pers Emply (3,784.48)
Ded:0017 Pers Rg Sf (6,314.65)
Ded:07 Pers City (6,403.92)
Ded:0006 Pers City (6,702.50)
Ded:0011 Pers Er Sf (6,924.17)
Ded:01 Pers (9,578.43)
Ded:0021 Pers Reg M (15,189.32)
Ded:0020 Pers Er M3 (15,848.43)
Police Officers Ass Ded:7204 Assoc Dues 8.00
Ded:7205 Assoc Dues 654.61
Legal Shield Ded:6100 Legal Svc 31.75
State Disability Ta Ded:0026 Sdi 4,709.68
Standard Insurance Ded:3500 Life Ins 1,401.75
Transamerica Employ Ded:5202 Transameri 311.82
Union Bank Of Calif Ded:4005 Pars-457 826.20
Vision Service Plan Ded:2504 Vision Fam 228.48
Ded:2503 Vision+1Ee 228.48
Ded:2502 Visioneoee 205.84
Ded:300 Visioneoer 59.76
Pers Gasb 68 Fees 700.00
9/9/25 Total Security Solu Relocation Of Exisi 7,142.77 Us Bank B Anderson Refund (690.00)
L Livian Stamps 11.70
L Livian Emplee Eve 13.25
M Mogensen Mty Hera 18.00
M Khasimi Website F 20.99
D Delfino Summer Ev 21.12
C Day Natl Nt Out F 646.24
S Arriola Conf Fee 655.00
M Khasimi Pw Printe 753.80
L Livian Calpelra C 825.00
M Khasimi Repair Su 882.58
L Livian Subscripti 1,060.00
M Khasimi Printr/Mo 1,070.62
S Kandell Train/Con 1,079.88
F Marsh Seminar/Web 1,180.00
Pd 5084 Firearm Tra 1,490.30
S Arriola Natl Nt O 29.57
K Clark Staff Train 33.00
D Gho Mty Newspaper 34.00
D Delfino Seminar 35.00
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
M Mogensen Workshop $ 39.00
D Delfino Train Amm 56.72
D Gonzales Seminar 59.00
Pd 5084 Cape Membrs 60.00
K Clark Prgm Suppli 65.48
S Arriola Cm Report 70.50
D Gho Volunteer Foo 70.54
S Hoffman Tlo Searc 75.00
D Gonzales Fedex Ma 78.53
M Mogensen Mty Chmb 85.00
J Halabi Mty Chambe 85.00
S Arriola Cc Dinner 101.94
Pd 5084 Acdmy Recrt 132.19
S Arriola Emp Event 134.35
D Gho Mech Tools 151.95
D Gho Chapter Dues 185.00
F Marsh Misac Mbrsh 199.00
Pd 5084 Lobby Signs 235.14
K Clark Rec Supplie 265.89
M Khasimi Softwre F 279.85
S Arriola Job Posti 300.00
L Livian Dh Mtg/Mea 432.63
D Gho Training Food 443.04
B Anderson Conf/Air 536.96
M Khasimi Zoom Subs 702.15
Pd 5092 Ntl Nt Out 1,709.68
C Day Cpoa Training 1,895.00
9/12/25 Pacific Gas & Elect Forest 40 Ft E/O Lh 612.19
17Th St & Laurel 645.12
Fire Dept - 24% 665.77
Forest & Central Dr 716.87
Fire Dept - 24% 791.87
550 Central Ave 794.70
Chautauqua Hall 184.56
Caledonia Pk Lights 0.04
17 Mi Dr Ballpark 0.18
Forest Centrl Spr 0.25
117 Recreation Room 5.18
Lovers Point 6.16
17 Mi Dr Ballpark 7.84
Berwick Park 8.13
Platt Pk Sprnklr 9.26
Caledonia Pk Lights 10.59
Forest Centrl Spr 10.91
168 16Th St 11.04
17 Mi Dr Ballpark 11.39
Corp Yard Sunset Dr 15.10
Parking Lot Light 15.28
Corp Yard Dm & 5Th 15.63
300 16Th St. 17.77
Lovers Point 23.90
101 Ch -Cedd - 50% 24.77
101 Ch -Fin - 50% 24.78
1307 Forst Sinex Si 24.89
Cor Melrose 24.99
117 Recreation Room 20.87
Grand Av & Pk Pl 22.08
1307 Forst Pine Sig 26.69
Phone Booth-Berwick 27.60
Platt Pk Sprnklr 29.81
Piedmont & Moreland 30.66
Cor Melrose 61.41
1307 Forst Sinex Si 63.27
1307 Forst Pine Sig 66.84
162 16Th Street 87.34
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Oceanview & 17Th $ 87.40
Chautauqua Hall 90.02
Public Library 95.98
City Council - 3% 98.98
Recreation - 3% 98.98
17 Mi Dr Ballpark 100.00
City Council - 3% 83.22
Recreation - 3% 83.22
300 Forest Ave 84.20
Fire Dept 142.08
117 Community Ctr 143.03
17Th St & Laurel 148.24
Concession Stand 71.83
165 Forest Ave 151.79
Police Dept 161.90
Beach Boat Storage 188.35
Finance - 7% 194.19
17 Mile Drive 195.10
Finance - 7% 230.97
117 Community Ctr 240.07
Cedd - 9.5% 263.53
City Manager - 9.5% 263.53
Forest 40 Ft E/O Lh 288.18
117 Community Ctr 311.50
Cedd - 9.5% 313.45
City Manager - 9.5% 313.45
580 Pine Ave - Loan 1,046.81
Police Dept - 43% 1,192.84
Forest & Central Dr 1,327.92
Police Dept - 43% 1,418.77
Public Library 1,581.24
620 Ocean View Pool 1,654.58
Aloha Pool And Spa Pool Supplies 1,043.61
Amazon Capital Serv Fin Desk Risers 373.62
Lib Office Supplies 23.94
Fin Office Supplies 20.13
Cdd Office Supplies 38.22
Cdd Office Supplies 41.50
Pw Park Clean Up 84.00
Pw Park Pest Contro 89.66
Fin Desk Riser 186.81
Fin Desk Riser 186.81
American Supply Com B&G Janitorial Supp 2,969.61
At&T Lighthouse Internet 112.35
At&T Calnet 3 Library Internet 33 222.13
Admin Phone 3242 2,108.11
Pd Data Line 8120 1,057.31
Atkinson, Andelson, Legal Services 918.75
Behavioral Analysis Pd Backgrnd Psych 575.00
Bound Tree Medical, Fd Medical Supplies 1,330.35
Bps Tactical, Inc. Pd Vest Carriers 1,824.87
Pd Vest & Carriers 2,082.51
Ca Dept Of Industri Ch Elevator Fees 675.00
Ca Dept Of Justice Cmo Background Cks 107.00
Caltronics Business Konica Copies Fy26 23.47
Konica Copies Fy26 97.57
Konica Copies Fy26 148.21
Konica Copies Fy26 160.56
Konica Copies Fy26 175.69
Konica Copies Fy26 192.30
Rec Konica Lease 17.45
Carmel Pine Cone Cc Amnd Bid Request 87.75
Centralsquare Techn Fin Training Servic 945.00
Clint Box Rfnd Cancel Class 45.00
Code Publishing, In Cc Muni Code Subscr 416.50
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Comcast Ch Internet 0085844 $ 153.24
Community Human Ser Jpa Allocation Memb (23,175.00)
Jpa Allocation Memb 23,175.00
Daniel M Deis Pd Boot Reimbursemt 195.75
Ddi Signs Pd Media Background 1,635.00
Elizabeth Nicknam Rfnd Cancel Class 45.00
Ewing Irrigation Pr Irrigation Supplies 58.70
At&T Mobility Library Phones 1990 222.06
Pd Cell Phones 5185 1,787.67
Firsttwo, Inc. Pd Le Resource 3,600.00
Fitzgerald Brown Boot Reimbursement 247.40
Gachina Landscape M Park Mowing Service 1,387.00
Gardaworld Sept Services Fees 98.53
Granite Constructio Street Hot Mix 945.42
Granite Rock Compan Refund Concrete (2,345.41)
Street Supplies 436.50
Street Concrete Mix 2,132.04
Harris & Associates Contract Planning S 5,655.00
Contract Planning S 7,697.50
Hayward Lumber Comp Lib Repair Supplies 88.59
B&G Repair Supplies 3,834.35
Heihachiro Takarabe Pmt For Tai Chi Cla 84.00
Hinderliter, De Lla Cannabis Fee Study 2,100.00
International Busin Pd Cloud Services 58.34
Kimball Midwest B&G Stock Unit 58 2,049.11
Stock /Repair Unit 239.91
Mech Stock 266.04
Secure Solutions Pd Backgrounds 2,066.38
Pd Backgrounds 2,032.88
Pd Backgrounds 2,750.30
Liebert Cassidy Whi Legal Services 630.00
Lisa Romero Rfnd Cancel Class 45.00
Hometek Mem Bench Engraving 495.00
Monterey Peace Offi Mcpoa Range Mbrship 630.00
Mcpoa Range Mbrship 560.00
Mission Linen Suppl Fire Dept Linen Uni 331.87
Mission Uniform Ser Linen / Uniform Cle 470.74
Linen / Uniform Cle 126.66
Linen / Uniform Cle 240.88
Linen / Uniform Cle 470.73
Linen / Uniform Cle 470.73
Monterey Bay Pest C Rodent Control For 135.00
Rodent Control For 175.00
Monterey Co. Busine Cc Speaker Series 65.00
Monterey County Ele Cc Contract Svcs 404.27
Monterey County Wee Cc 2Nd Read Fire Zo 144.00
Pub Notice Ord 144.00
Notice Pub Hearing 144.00
2Nd Read Cannibis O 144.00
Cc Notice Public He 192.00
Monterey Tire Servi Pd Repairs Stock 280.95
City Of Monterey Fy26 Fire Services 286,394.00
Andrea M. Moreland Pd Backgrounds 2,136.80
Napa Auto Parts Club House Equipmt 22.01
Club House Equipmt (22.01)
Fd Repair Unit 6414 (100.42)
Fd Repair Unit 6414 100.42
Noland, Hamerly, Et Legal Services 6,664.00
Odp Business Soluti Fin Office Supplies 21.07
Cdd Office Supplies 69.36
Fin Office Supplies 109.46
Cdd Office Supplies 114.88
Cdd Office Supplies 117.67
O'Reilly Auto Enter B&G Repair Supplies 515.87
Street Repair Suppl 339.34
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Mech Credit Supplie $ (37.72)
Pd Repair Supplies 670.00
Fd Repair Supplies 5.04
Pacific Gas & Elect Rec Elec 0956-9 5,097.91
Golf St Elec 3438-9 38.87
Pacific Grove Hardw Rec Office Supplies 29.01
Lib Repair Supplies 33.81
B&G Tools 38.22
Fd Repair Supplies 15.49
B&G Repair Supplies 1,445.79
Mech Supplies 3.05
Cdd Office Supplies 3.27
Forestry Supplies 3.92
Streets Supplies 230.00
Pw Supplies 239.47
Museum Repair Suppl 469.76
B&G Repair Supplies 383.62
Street Supplies 684.03
Rec Supplies 181.40
Lib Repair Supplies 137.29
B&G Vehicle Repairs 114.63
Pw Supplies 89.73
Cdd Office Supplies 84.54
Pd Repair Supplies 75.31
Fd Repair Supplies 64.18
Pacific West Water Cdd Water Service 42.85
Fin Water Service 42.85
Parma Parma Conf Registrt 848.00
Peninsula Welding & Mech Supplies 68.48
Primo Brands Pd Water Service 352.46
Regional Government Payroll Advisory Se 302.50
Dunnigan Psychologi Pd Backgrounds 750.00
Salinas Valley Pros Pd Uniforms 1,790.35
Pd Uniforms 1,614.44
Pd Uniforms 1,825.28
Pd Uniforms 1,825.28
Lehr New Patrol Vehicle 24,408.54
Pd Vehicle Outfit 2,267.12
Tom'S Site Services Labor Day Services 4,770.05
Verizon Business Pd Port Access 74.69
Vestis Services, Ll Pd Linen Services 182.31
Brian Whitson Monthly Museum Jani 2,100.00
Janitorial Services 380.00
Aria Med Pd Backgrounds 548.00
Pd Background Medic 1,644.00
Community Human Ser Jpa Allocation Memb 23,175.00
Napa Auto Parts Club Hse Equipment 22.01
Fd Repair Unit 6414 100.42
9/15/25 Pers Ppe8.16.25 Inclcred 20,778.22
9/17/25 Ca Dept Of Conserva Smip 2022 Apr - Jun 717.78
Liebert Cassidy Whi 2025 Erc Membership 5,045.00
Quadient Finance Us Postage Aug 1,018.09
Spca Of Monterey Co Pd Animal Shelter 490.00
Pd Animal Services 930.00
The Pun Group, Llp Audit, Acfr, Gann R 21,000.00
Swift Car Wash Pd Car Washes 320.00
9/19/25 Aflac Ded:5200 Aflac Prem 694.67
Ded:5201 Aflac P/T 1,371.86
Calpers Health Ded:3053 Health Fam 1,446.77
Ded:2072 Health 1,109.00
Ded:129 Health 1,134.79
Ded:116 Health 506.85
Ded:128 Health Emp 556.45
Ded:2071 Health 1,462.50
Ded:126 Health 1,475.23
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Ded:2073 Health Fam $ 8,331.00
Ded:105 Health 9,224.67
Ded:122 Health 11,348.00
Ded:108 Health 3,837.86
Ded:111 Health 1,633.65
Ded:104 Health 2,027.40
Ded:112 Health 2,225.80
Ded:3051 Health Emp 2,225.80
Ded:4304 Hlth Retro 2,869.82
Ded:106 Health 2,952.20
Ded:103 Health 3,041.10
Ded:123 Health 5,673.95
Ded:124 Health 5,900.92
City Of Pacific Gro Ded:3301 Aflac Med 1,565.16
Eft Ded:*Sca State Tax 17,000.18
Ded:*Ft Federal Tx 42,378.47
Ded:*Fm Medicare 11,658.68
Franchise Tax Board Ded:7502 Wage Garn 1,368.78
Pacific Grove City Ded:7000 Assoc Dues 856.00
Mass Mutual (457 Pl Ded:4000 Def Comp 11,559.68
Ded:3999 Roth Ira 1,673.00
Mtry County Dept Of Ded:0023 Garnish 439.99
Pacific Grove Manag Ded:7203 Assoc Dues 40.00
City Of Pacific Gro Ded:1006 Work Comp 54.64
Ded:1009 Work Comp 220.46
Ded:1003 Work Comp 6,253.84
Ded:1010 Work Comp 3,178.04
Ded:1005 Work Comp 1,523.74
Ded:7510 Pers Reimb 56.58
Ded:200 Dentaleoer 271.59
Ded:2103 Dental Fam 1,559.90
Ded:2101 Dentaleoee 978.98
Ded:2102 Dental+1Ee 1,085.96
Ded:0005 Suta 143.11
Pers Ded:2003 Pers Other 173.96
Ded:0004 Surv Ben 92.07
Ded:2000 Pers Emply 3,784.48
Ded:07 Pers City 6,294.90
Ded:0006 Pers City 6,879.63
Ded:0017 Pers Rg Sf 7,175.52
Ded:0000 Pers 15.02
Ded:0002 Pers 2,685.05
Ded:2001 Pers 2,193.46
Ded:01 Pers 9,616.77
Ded:0011 Pers Er Sf 8,385.44
Ded:0021 Pers Reg M 15,243.18
Ded:0020 Pers Er M3 15,963.79
Ded:0009 Pers Other 701.15
Ded:0018 Pers Sp Sf 749.18
Ded:0022 Pers Sp Ms 299.45
Ded:0019 Pers Rt Sf 316.89
Ded:08 Pers Other 348.83
Police Officers Ass Ded:7205 Assoc Dues 654.61
State Disability Ta Ded:0026 Sdi 5,051.78
Transamerica Employ Ded:5202 Transameri 311.82
Union Bank Of Calif Ded:4005 Pars-457 819.90
Vision Service Plan Ded:2502 Visioneoee 205.84
Ded:300 Visioneoer 59.76
Ded:2504 Vision Fam 228.48
Ded:2503 Vision+1Ee 242.76
Pers Sep 2025 Ual 395,585.00
9/25/25 Ppe 8.30.25 & Adj 77,883.07
9/26/25 California American 1025 Morse Dr 1,497.17
620 Oceanview 1,546.44
196 Oceanview 525.23
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
1051 Oceanview $ 1,883.87
616 Oceanview 2,007.23
711 Oceanview 2,112.16
707 Oceanview 2,203.35
Caledonia Ave Irrig 2,348.23
150 Forest Pk 2,378.25
930 Sinex 2,443.32
980 Piedmont 2,831.92
230 17 Mile Dr 2,861.62
863 Oceanview 3,564.37
616 Oceanview 3,833.51
391 Oceanvw 8,490.82
643 Hydrants 44.54
Mech 5% 52.66
165 Forest Ave 61.55
611 Central 61.55
600 Pine Ave 61.55
300 Forest Ave 61.55
308 16Th St 83.68
748 Lighthouse 83.68
765 Lighthouse 83.68
800 Lighthouse Ave 83.68
792 Lighthouse 83.68
582 Lighthouse Ave 83.68
300 Forest Ave 525.23
580 Pine Ave 651.06
304 16Th St 888.49
610 Oceanview St 1,001.39
550 Central Ave 1,119.47
2100 Sunset Dr 83.68
840 Lighthouse 83.68
850 Lighthouse 83.68
882 Lighthouse 83.68
106 7Th St 83.68
304 16Th St 98.29
139 Grand Ave 108.33
300 Forest Ave 126.42
611 Central Ave 147.59
B & G 15% 157.99
Sunset-Corpyard18% 189.59
585 Laurel Ave 224.30
130 Lighthouse Ave 224.30
600 Pine Ave 340.82
165 Forest Ave 350.14
300 Forest Fire-50% 412.41
300 Forest Fire-50% 412.41
St Fund 50% 526.63
100 Oceanview 531.62
515 Junipero 639.07
Accent Clean & Swee Fy 25/26 Street Swe 18,810.00
Amazon Capital Serv Rec Progrm Supplies 2,097.44
Pd Office Equipment 557.73
Cmo Office Supplies 107.88
Rec Office Supplies 119.08
Rec Office Supplies 138.90
Library Supplies 141.30
Fin Cash Drawer 141.97
Dept Head Training 122.06
Rec Office Supplies 150.33
Rec Program Supplie 162.26
Pw Vacuum Supplies 207.56
Dept Head Training 246.26
Pw Office Supplies 205.38
Elop Progrm Supplie 507.93
Cmo Credit Office (70.40)
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Elop Supplies Credi $ (38.23)
Elop Supplies Credi (25.06)
Elop Supplies Credi (17.47)
Elop Supplies Credi (16.38)
Elop Supplies Credi (16.37)
Elop Supplies Credi (15.28)
Prgrm Supplies Cred (4.88)
Rec Program Supplie 9.20
Rec Program Supplie 10.28
Rec Prgrm Supplies 15.72
Rec Progrm Supplies 18.23
Elop Progrm Supplie 19.62
Pd Office Supplies 20.63
Pw Office Supplies 21.58
Pw Office Supplies 21.70
Elop Supplies Credi (46.94)
B&G Volunteer Suppl 43.44
Pd Monitor Mounts 43.68
Pd Office Supplies 44.75
Rec Office Supplies 25.01
Rec Program Supplie 26.21
Pd Binder Tabs 26.46
Rec Program Supplie 27.92
Rec Program Supplie 28.71
Pw Office Supplies 29.48
Rec Program Supplie 29.49
Elop Progrm Supplie 31.42
Pd Air Filter 32.64
Library Supplies 46.86
Rec Office Supplies 69.63
Pw Office Supplies 78.56
Pd Name Badges 37.03
Rec Office Supplies 88.08
Ambag Annual Membership 4,607.10
Arcpoint Labs Of Mo Pre Employmt Screen 70.00
Arlon Moore Reimburse Boots 250.00
Axon Enterprise, In Axon License/Fees 25,038.84
Baker & Taylor Comp Books & Materials / 303.42
Bills Plumbing, Dra Backflow Testing 225.00
Burke, Williams & S City Atty Services 31,719.43
Ca Dept Of Justice Pd Livescans 486.00
Cmo Background Chks 64.00
Caltronics Business Rec Konica Copier 394.96
Konica Copies Fy26 77.02
Konica Copies Fy26 132.42
Konica Copies Fy26 175.49
Konica Copies Fy26 404.05
Konica Copies Fy26 418.99
Konica Copies Fy26 2,518.23
Centralsquare Techn Finance Software Fy 5,211.10
Comcast Pw Internet 0194117 228.74
Pd Internet 0387836 151.24
Rec Internet 021497 99.21
City Hall Tv 003903 14.08
Cps Hr Consulting Credit For Pd Exams (70.00)
Pd Testing Material 687.50
Lib Testing Materia 890.75
Lib Testing Materia 890.75
Creekside Center Fo Fy 26 Monarch Sanct 8,000.00
Dianne Lyle Pmt For Jazz Classe 105.00
Doctors On Duty Med Dmv Physical A Hert 150.00
Dwan Elevator Co Museum Elevator 3,222.29
Engineered Fire Sys Fd Plan Review Augu 742.50
Ewing Irrigation Pr B&G Irrigation Supp 55.02
Fred Marsh Mileage Reimburseme 399.09
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Fresh Coats Auto Bo Pd Repair Unit 9 $ 3,368.20
Grainger B&G Stock 1,680.68
Granite Constructio Streets Supplies 471.88
Granite Rock Compan Streets Supplies 598.91
Hometek Mem Bench Engraving 495.00
International Code Cdd Books Supplies 301.50
Jd Repairs Inc Fd Repairs Unit 641 3,247.07
Fd Repairs Unit 641 871.42
Fd Repairs Unit 641 1,809.36
John Kenney Reimb Safety Boots 149.58
Language Line Servi Pd Dictation Servic 32.77
Liebert Cassidy Whi Cmo Legal Services 242.50
Cmo Legal Services 2,325.00
Cmo Legal Services 3,686.00
Cty Cncl Legal Svcs 1,358.00
Cmo Legal Services 824.50
Metal Specialties, Deposit Rail Work 1,190.00
Monterey Bay Pest C Rodent Control For 135.00
Rodent Control For 175.00
Rodent Control For 180.00
Rodent Control For 490.00
Monterey County Dis Pd Bac Costs 1,095.39
Monterey County Wee 2Nd Rd Ord 25-007 144.00
2N Rd Ord Cip Budge 144.00
Monterey Sports Cen Cm Fitness Assessmt 120.00
Nicholas Smith Per Diem Advance 170.00
Odp Business Soluti Pd Office Supplies 427.80
Cty Cncl Office Sup 136.11
Fin Office Supplies 91.75
Cmo Office Supplies 79.53
Pacific Products & Streets Stock 1,218.34
Pure Water Pw Water Service 23.95
Mech Water Service 23.95
B&G Water Service 23.95
Street Water Servic 23.95
Quadient Inc Postage Supplies 34.25
Becks Shoes And Rep B&G Boots 1,156.13
Street Boots 227.51
Rincon Consultants, Rincon - Housing El 20,924.00
Dunnigan Psychologi Pd Psych Eval 650.00
Pd Psych Eval Backg 1,000.00
Safety-Kleen System Mech Supplies 471.95
B&G Supplies 471.95
Streets Supplies 471.96
Mech Supplies 81.77
B&G Supplies 81.77
Streets Supplies 81.77
Same Day Shred Cmo Confidntl Shred 50.00
Sentry Alarm System Lwp / Fd Monitoring 106.50
Alarm Maint 685.85
Spca Of Monterey Co Pd Animal Services 3,380.00
Stitch Witch Pd Custom Patches 766.50
Stryker Sales Llc Heart Monitor For A 2,166.95
Sturdy Oil Company A/R Fuel July 2,580.48
Pd Fuel August 1,741.90
Ar Fuel August 4,819.72
B&G Fuel August 807.77
Street Fuel July 525.89
B&G Fuel July 1,051.78
Pd Fuel July 3,053.24
Streets Fuel August 403.88
Suburban Propane Pw Propane August 49.75
Mech Propane August 49.75
B&G Propane August 49.76
Street Propane Augu 49.76
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Summit Uniforms Pd Uniform Equip $ 142.19
Susan Carter Rfnd Zoning App Fee 215.00
The Monterey County Notice Cannabis Lic 178.63
Tina Rau Travel Advance 1,508.29
Tope'S Tree Service Contract Tree Servi 8,760.00
Uline Lib Office Equip 439.46
V & V Manufacturing Pd Chief Badge 193.30
Verizon Business Pd Port Access Sept 118.08
Cdd Phone Sept 142.19
Pw Data 62.07
Fd Phone Sept 63.13
Pw Phone Sept 674.26
Admin Phone Sept 170.63
Pd Data Sept 545.44
Pd Phone Sept 99.93
Asd Data 70.81
Lib Data 76.02
Cmo Phone Sept 89.83
Rec Phone Sept 37.34
It Phone Sept 45.16
Vestis Services, Ll Pd Linen Services 182.31
Pd Linen Services 182.31
Watsonville Ford Pd Repair Unit 5 253.93
Pd Repair Unit 02 161.49
Pd Repair Unit 02 111.79
Mech Repair Unit 35 736.54
Wells Fargo Vendor Konica Lease Fy25/2 91.57
Konica Lease Fy25/2 195.01
Konica Lease Fy25/2 230.57
Konica Lease Fy25/2 230.57
Konica Lease Fy25/2 291.72
Konica Lease Fy25/2 291.74
Konica Lease Fy25/2 291.74
Konica Lease Fy25/2 291.74
Brian Whitson Janitorial Services 380.00
Swift Car Wash Pd Car Washes Oct 320.00
07 - Library Bldg & Equip Fund 9/9/25 Us Bank A Canales Local His 261.29 9/12/25 Minuteman Press Local History 91.29
11 - Library Book Fund 9/9/25 Us Bank A Canales Book/Matl 99.00 9/12/25 Amazon Capital Serv Lib Books & Materia 19.69
Lib Books & Materia 38.58
Lib Books & Materia 17.26
Lib Books & Materia 7.64
Lib Books Credit (25.07)
Overdrive, Inc. Lib Books & Materia 5.98
Lib Books & Materia 8.97
9/26/25 Amazon Capital Serv Lib Books & Materia 32.51
Lib Books & Materia 406.67
Lib Books & Materia 114.76
Lib Books & Materia 21.80
Lib Books & Materia 17.69
Baker & Taylor Comp Books & Materials / 2,827.70
Midwest Tape Lib Books & Materia 49.15
Wt Cox Information Lib Books & Materia 2,688.74
18 - Gas Tax Fund 9/12/25 Pacific Gas & Elect Forest Av Sunset Av 26.51 Forest Ave Sunset A 50.86
Forest Ave Sunset A 23.14
19Th & Sunset Dr. 15.00
Forest Av Sunset Av 66.63
9/17/25 Pw Electric 4482-4 9,018.80
9/19/25 Pers Sep 2025 Ual 2,373.42
9/26/25 California American Cem 4% 42.13
4Leaf Fy 25/26 On-Call Tr 464.00
Sturdy Oil Company Gas Tax Fuel August 403.88
Gas Tax Fuel July 525.89
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
24 - Stillwell Children'S Pool 9/12/25 American Supply Com Pool Supplies $ 932.41 Pacific Grove Hardw Pool Supplies 107.68
9/26/25 Amazon Capital Serv Pool Supplies 17.57
Pool Supplies 19.36
25 - Recreation Donation Fund Youth Equip Donatio 16.38 Youth Equip Donatio 652.30
27 - Lighthouse Maint.& Impv. 9/9/25 Us Bank D Gho Vlnteer Namet 153.38 9/12/25 Pacific Gas & Elect Asilomar Blvd Pg Lh 69.74
Asilomar Blvd Pg Lh 148.88
Bella Terra Publish Lighthouse Merch 109.20
Minuteman Press Lighthouse Brochure 674.30
Pacific Grove Hardw Lh Repair Supplies 140.35
Lh Repair Supplies 441.22
9/17/25 Kay Bonnell Lighthouse Merch 412.50
9/26/25 California American 90 Asilomar Blvd 213.64
Amazon Capital Serv Lighthse Gift Suppl 13.48
Lh Merch Bal Due 1.65
Lighthse Supplies 42.72
Lighthouse Supplies 34.92
Lighthse Supplies 32.76
Lighthse Merch 31.62
At&T Calnet 3 Lighthouse Phone 31.41
Bella Terra Publish Lighthouse Merch 68.80
Lighthouse Merch 636.58
Bill Wolfe Lighthouse Audio Re 207.21
Escarraga'S Luxury Lighthse Cleaning 480.00
Ghost Town Publicat Lighthse Merch 293.50
Ziga Media Llc Lighthouse Merch 172.00
40 - Poetry Promotion Fund 9/9/25 Us Bank R Gaither Poetry Pr 581.50 9/12/25 Amazon Capital Serv Lib Poetry Supplies 42.70
9/26/25 Lib Poetry Promotio 10.37
Avery Burns Poetry Promotion 100.00
Leroy Knight Jr Poetry Promotion 100.00
42 - Pub Safety Aug Fund 9/12/25 Monterey County Eme Dispatch Services & 128,832.00 63 - Capital Improv Proj Fund 9/26/25 Joseph Kavanagh Cip Sanctuary Fence 1,061.00 70 - Emp Benefit Fund 9/5/25 Calpers Health Sep2025 Ret & Chang 9,152.98 9/12/25 Claremont Behaviora Eap Sept Services 648.15
9/26/25 Pars Pars Fees July 389.89
71 - Workers Comp Fund 9/19/25 Pers Sep 2025 Ual 1,000.83 9/26/25 Faa Mike Monroney A Medicare Claim 1,707.66
72 - Liability Ins Fund 9/19/25 Pers Sep 2025 Ual 890.00 74 - Local Water Project 9/12/25 Pacific Gas & Elect Lwp Elec 0792-1 13,891.79 9/26/25 California American 1313 Ocean View Bl 14,822.85 Perc Water Corporat Lwp O&M Services Fy 57,459.61
75 - Cemetery Fund 9/12/25 Pacific Gas & Elect Cemetery - 1% 27.74 Crest & Ripple 15.02
Cemetery - 1% 32.99
Cemetery 41.47
Mission Uniform Ser Linen / Uniform Cle 470.73
Pacific Grove Hardw Cem Supplies 455.08
Cem Supplies 124.51
9/19/25 Pers Sep 2025 Ual 4,105.92
9/26/25 California American 1254 Delmontecem70% 442.23
Sewer 8% 84.26
C & N Tractors Cem Repair Unit 70 663.70
Sturdy Oil Company Cem Fuel August 202.61
Cem Fuel July 17.04
76 - Sewer Fund 9/12/25 Pacific Gas & Elect Pump Station 27.67 1996 Sunset Dr. 25.32
520 Ocean View Blvd 25.42
Pump Russell Svc Ct 18.97
Oceanview Blvd & 8T 8.59
520 Ocean View Blvd 7.13
Pump Sunset Arena 7.84
Pump Russell Svc Ct 65.51
PGCC 10-15-25

Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
17Th & Ocnvw $ 85.31
Pump 17Th & Ocnvw 207.09
Pump Sunset Arena 224.72
471 Ocean View Bl. 164.58
1996 Sunset Dr. 77.81
Eardley Pump #1 80.27
471 Ocean View Bl. 342.50
Pump Sunset Arena 476.71
360 Ocean View Blvd 500.63
Eardley Pump #1 186.36
O V 9Th Pump #2 1,028.83
Kimball Midwest Sewer Unit 44 183.28
Mission Uniform Ser Linen / Uniform Cle 470.73
Monterey Peninsula Emergency Sewer Wor 26,023.00
Del Monte And Beach 57,327.00
Pacific Gas & Elect Pw Sewer Elec 5126- 1,918.00
Pw Sewer Elec 4175- 45.00
Pacific Grove Hardw Sewer Supplies 7.84
Pj Trucking Academy Class B Training - 5,800.00
Wallace Group Scsmp 1, 6, 9 Cip24 4,421.00
Scsmp 1, 6, 9 Cip24 11,638.41
9/19/25 Pers Sep 2025 Ual 12,774.67
9/26/25 California American 263 Grove Acre Ave 1,427.62 100 Oceanview 83.68
1273 Crespi Pond 50 124.47
Albion Environnment Sewer Monitor Oct 940.10
Sewer Monitor Nov 459.97
Bowman Consulting G Consulting Pump Stn 1,270.00
Neill Engineers Cor Admin Engineering S 1,000.00
Pure Water Sewer Water Service 23.95
Rincon Consultants, Amendment #3 - Arch 741.00
Safety-Kleen System Sewer Supplies 471.96
Sewer Supplies 81.78
Sturdy Oil Company Sewer Fuel August 625.28
Sewer Fuel Cr July (382.55)
Suburban Propane Sewer Propane Augus 49.76
77 - Golf Fund 9/12/25 Pacific Gas & Elect 1313 Ocean View Blv 50.90 1313 Ocean View Blv 114.05
9/26/25 California American 77 Asilomar 98.29
1254 Delmontegolf30 442.23
1273 Crespi Pond 50 124.47
77 Asilomargolfhse 2,497.26
Grand Total $ 2,100,940.69
PGCC 10-15-25

Check Register - Summary by Fund - September 2025
Fund Amount
01 - General Fund Total $ 1,703,302.18
07 - Library Bldg & Equip Fund Total 352.58
11 - Library Book Fund Total 6,331.07
18 - Gas Tax Fund Total 13,010.26
24 - Stillwell Children'S Pool Total 1,077.02
25 - Recreation Donation Fund Total 668.68
27 - Lighthouse Maint.& Impv. Total 4,409.86
40 - Poetry Promotion Fund Total 834.57
42 - Pub Safety Aug Fund Total 128,832.00
63 - Capital Improv Proj Fund Total 1,061.00
70 - Emp Benefit Fund Total 10,191.02
71 - Workers Comp Fund Total 2,708.49
72 - Liability Ins Fund Total 890.00
74 - Local Water Project Total 86,174.25
75 - Cemetery Fund Total 6,683.30
76 - Sewer Fund Total 131,087.21
77 - Golf Fund Total 3,327.20
Grand Total $ 2,100,940.69
PGCC 10-15-25

Revenues by Fund - FY 2025-26 (Unaudited)
Through September 2025
Fund Revised Budget YTD
YTD % of
Budget Prior YTD
Projected
Change for
Fiscal Year
Projected
Ending
Reserves *
Main Fund - Fund 01 $ 32,729,400 $ 2,797,849 9% 4,169,350 $ $ (1,969,722) $ 15,480,866 Other Funds Included 1,027,610 19,024 2% 10,321 (110,640) 61,089 General Fund 33,757,010 2,816,873 8% 4,179,671 (2,080,362) 15,541,955 Capital Projects $ 506,682 $ - 0% $ 217,587 (143,318) 2,244,375 Capital Funds 506,682 - 0% 217,587 (143,318) 2,244,375
Local Water Project 1,288,746 417,741 32% 566,041 263,641 (127,082) Cemetery 580,902 87,633 15% 198,059 (267,207) 766,398
Sewer 4,099,809 - 0% 230,292 154,540 10,265,039
Golf 956,538 100,000 10% 109,033 (70,144) 881,890
Sewer Lateral Loans 3,908 - 0% 3,007 3,908 185,482
Enterprise Funds 6,929,903 605,374 9% 1,106,432 84,738 11,971,727 Employee Benefit 316,299 33,268 11% 66,059 3,599 65,661 Worker's Compensation 925,299 187,763 20% 169,728 8,351 614,952 Liability Insurance 753,944 7,690 1% 191,843 (128,223) 930,712 Internal Service Funds 1,995,542 228,721 11% 427,630 (116,273) 1,611,326 Library 13,141 - 0% 10,187 13,141 610,620
Cemetery 121,734 8,113 7% 56,050 121,734 2,411,891
Yount 8,000 - 0% 22,640 - 807,008
Trust Funds 142,875 8,113 6% 88,877 134,875 3,829,519
Library / Poetry 101,677 50,156 49% 55,267 14,277 332,397 Museum 8,073 - 0% 5,905 8,073 306,456
Public Safety 821,890 21,468 3% 108,265 (120,319) 458,245 Housing 48,956 9,290 19% 12,194 (107,927) 555,633
Streets 1,619,540 296,778 18% 145,684 (289,743) 1,656,268 Lighthouse 126,917 33,073 26% 37,366 (4,991) 219,181
Community Development/CDBG 41,957 3,760 9% 13,651 (241,444) 477,797 ARPA - - 0% 17,121 - 73,216
Downtown/Hospitality Districts 561,700 99,961 18% 163,436 - 58,804 Cable Franchise / Other 62,750 2,750 4% 73,587 (105,253) 265,021 Other Funds 3,393,460 517,236 15% 632,476 (847,327) 4,403,018 Totals All Funds $ 46,725,472 $ 4,176,317 9% $ 6,652,673 $ (2,967,667) $ 39,601,920 * Excludes Proposed Adjustments and Rollovers
Revenues Working Capital
8%
0%
9%
11%
6%
15%
9%
General Fund
Capital Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Other Funds
Totals All Funds
Budgeted Revenues / YTD % of Budget - By Fund Type
PGCC 10-15-25

Fund
Main Fund - Fund 01
Other Funds Included
General Fund
Capital Projects
Capital Funds
Local Water Project
Cemetery
Sewer
Golf
Sewer Lateral Loans
Enterprise Funds
Employee Benefit
Worker's Compensation
Liability Insurance
Internal Service Funds
Library
Cemetery
Yount
Trust Funds
Library / Poetry
Museum
Public Safety
Housing
Streets
Lighthouse
Community Development/CDBG
ARPA
Downtown/Hospitality Districts
Cable Franchise / Other
Other Funds
Totals All Funds
Expenses by Fund - FY 2025-26 (Unaudited)
Through September 2025
Revised Budget YTD
YTD % of
Projected
Purchase
Orders
YTD %
with POs Prior YTD
$ 34,699,122 $ 7,937,193 23% 3,150,443 $ 32% $ 8,510,490 1,138,250 (2,985) 0% - 0% 12,399
35,837,372 7,934,208 22% 3,150,443 31% 8,522,889
$ 650,000 $ 20,248 3% $ - 3% $ 7,125
650,000 20,248 3% - 3% 7,125
1,025,105 180,379 18% 391,858 56% 705,974
848,109 190,517 22% 31,112 26% 174,002
3,945,269 448,296 11% 1,618,197 52% 703,543
1,026,682 435,393 42% 29,150 45% 396,746
- - 0% - 0% -
6,845,165 1,254,585 18% 2,070,317 49% 1,980,265
312,700 65,287 21% - 21% 132,755
916,948 379,734 41% - 41% 443,832
882,167 597,808 68% 5,446 68% 570,938
2,111,815 1,042,829 49% 5,446 50% 1,147,525
- - 0% - 0% -
- - 0% - 0% -
8,000 - 0% - 0% 1,211
8,000 - 0% - 0% 1,211
87,400 19,004 22% 17,337 42% 6,945
- 21,307 200% - 200% 33,768
942,209 315,543 33% 219,019 57% 170,913
156,883 27,673 18% - 18% 27,869
1,909,283 96,427 5% 417,607 27% 62,167
131,908 28,328 21% - 21% 29,009
283,401 396,692 140% 39,000 154% 3,491
- - 0% - 0% 33,209
561,700 - 0% - 0% 40,375
168,003 31 0% - 0% 25
4,240,787 905,005 21% 692,963 38% 407,771
$ 49,693,139 $ 11,156,875 22% $ 5,919,169 34% $ 12,066,786 Expenses
22%
3%
18%
49%
0%
21%
22%
General Fund
Capital Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Other Funds
Totals All Funds
Budgeted Expenses / YTD % of Budget By Fund Type
PGCC 10-15-25

General Fund Revenues - FY 2025-26 (Unaudited)
Through September 2025
Revenue Account Revised Budget YTD Revenues
YTD % of
Budget
Year End
Projection
Prior YTD
Revenues
Prior YTD %
of PY Actual
Property Taxes $ 11,022,700 $ 11,817 0% 11,022,700 15,519 0% Sales Taxes 5,945,600 - 0% 5,945,600 530,124 8%
Business License/Cannabis Taxes 416,000 432,760 104% 416,000 217,467 73% Franchise Taxes 1,603,400 - 0% 1,603,400 - 0%
Utility User Taxes 2,183,500 310,596 14% 2,183,500 416,252 17% Transient Occupancy Tax 6,713,700 899,227 13% 6,713,700 1,719,734 25% Litter Abatement 210,000 - 0% 210,000 - 0%
Construction Permits 932,200 335,134 36% 932,200 234,510 23% Zoning Enforcement 206,000 118,144 57% 206,000 38,240 18% Plan Check Fees 606,700 147,298 24% 606,700 160,226 29% Parking Meters 351,200 74,841 21% 351,200 106,141 29%
Water Entitlements 287,600 42,756 15% 287,600 146,170 9% Interest Earned 350,000 - 0% 350,000 111,694 21%
Investment Market Value Gain/Loss - - 0% - 37,228 115%
Indirect Cost Reimbursement 578,600 - 0% 578,600 138,000 25% Total Major Revenues 31,407,200 2,372,573 8% 31,407,200 3,871,305 12% Total General Fund Revenues 33,757,010 2,816,873 8% 33,758,000 4,169,352 13% FY 2023-24 Tax Revenues Property Taxes Sales Taxes BL/Other Franchise Hotel Taxes Utility 10,135,764 5,975,031 697,772 1,635,968 6,730,240 2,118,068 0%
0%
104%
0%
14%
13%
0%
8%
73%
0%
17%
25%
Property Taxes - $11.0 million
Sales Taxes - $5.9 million
Business License/Cannabis Taxes - $0.4 million
Franchise Taxes - $1.6 million
Utility User Taxes - $2.2 million
Transient Occupancy Tax - $6.7 million
Budgeted Tax Revenues / YTD % of Budget - Current YTD vs Prior YTD 25-26 24-25
PGCC 10-15-25

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: October 15, 2025
SUBJECT: Ordinance to Amend the Fiscal Year 25/26 Operating and Capital Improvement Budget
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

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

2. Motion to waive further reading of the ordinance;
Introduce and hold the first reading of an ordinance amending the operating and capital budget for the Fiscal Year 2025-26;

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

4. DISCUSSION
The adopted 2025/26 Capital Improvement Program included $100,000 for a fire station alerting system upgrade to bring the Pacific Grove station up to date and using the same compatible emergency dispatch alert system as the other stations that Monterey Fire staffs. The original estimate provided for the Pacific Grove budget was based on the costs for purchase and installation at the Monterey Fire Stations.

Those prices were from late 2024 when the project was completed. The budget estimate was based on Fire Station 12 and Fire Station 13 since they had similar device counts and relative size. Those installations were $90-100k each. Monterey Fire did not get a formal quote from US Digital Designs (USDD) since they did not have the drawings and layouts for Station 14. Once they were able to get the drawings they began the process of obtaining a formal quote in April of 2025. The formal quote also involved a walkthrough of the fire station. The updated quote received is $142,724.25, which is $42,724.25 more than approved in the 2025/25 CIP budget.

Since the original estimate in late 2024, there has been a price increase with USDD, due to cost increases for the components and labor costs. Below are examples of the increases that have been factored into the quote:

1. Voice alert license is 30% more ($1,289 vs $927)

2. G2 message remotes are 30% more ($1,578 vs $1,282)

3. G2 message signs have increased by 200% ($2,700 vs $945)

4. Omni Strobe equipment is 40% more expensive ($1,417 vs $1,035) PGCC 10-15-25

A majority of the cost increase (about $20,000) was from the installation costs due to labor increases.

After conducting the station walkthrough,USDD felt that there was additional labor (hours) required due to the specific layout and construction styles used at Station 14.

OPTIONS
Take an alternative action. This is not recommended as the alerting system is a critical infrastructure for the Fire Station that has a direct impact on response time of emergency services.

FINANCIAL IMPACT:

The project is being funded from the Fire Emergency Equipment Fund (Fund 12). There are adequate funds in Fund 12 to cover the updated cost of $142,724.25.

FOCUSED PRIORITY AREA: Infrastructure
Attachments
Ordinance
Updated Quote
PGCC 10-15-25

ORDINANCE NO. 25-xxx

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

AMENDING THE OPERATING AND CAPITAL PROJECTS BUDGET FOR THE FISCAL YEAR (FY) 2025-26
FACTS

1. The City Council approved the Fiscal Year 2025-26 Budget on June 18, 2025.

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 2025-26 Budget to reflect the unanticipated changes in the pricing for CIP projects.

4. The Council has determined it is appropriate to amend the approved budget for FY 2025-26.

5. Pursuant to Charter Article 156, 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 Capital Projects - Fire Equipment Fund - Fire Station Alerting System is amended for this item from $100,000 to a total amount of $142,724.25.

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 5th day of November, 2025, by the following
vote: AYES:

NOES:

ABSENT:

PGCC 10-15-25

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN A. PIERIK, City Attorney
PGCC 10-15-25

US DIGITAL DESIGNS Author: DWK
by Honeywell Date: 9/16/2025
1150 W Grove Pkwy St #110 Expires: 12/15/2025
Tempe, AZ 85283 Proposal: CA_PGRV002 v2
Quotation to:

City of Pacific Grove, CA
Pacific Grove Fire Department
Project:

G2 Fire Station Alerting System
One (1) Station System - FS14
Pricing pursuant to the Master Price Agreement entered into between League of Oregon Cities (LOC) and USDD, and made available to members of the National Purchasing Partners, LLC, dba Public Safety GPO, dba Law Enforcement GPO, and dba NPPgov - Contract #PS20350. More information available at: https://nppgov.com/contract/honeywell/ Pacific Grove Fire Department is a member: M-5726141
Paul Gyore
Principal Territory Manager
(602)-828-0287
(602)-687-1730
[email protected]
stationalerting.com
Installation by:

Tech Electric
Bob McCabe
This proposal is subject to corrections due to errors or omissions PROPRIETARY and CONFIDENTIAL TITLE Page 1 of 10
PGCC 10-15-25

US DIGITAL DESIGNS Date: 9/16/2025
by Honeywell Expires: 12/15/2025
Quote Submitted To: Proposal:

City of Pacific Grove, CA CA_PGRV002 v2
Pacific Grove Fire Department
STATION 14
USDD Design Referenced:

USDD.CA_PGRV.FS14.FSA.2025.09.02

STATION SYSTEM LICENSES
Part No. Description Quantity US List Unit Unit Price Extended Price G2-VA G2 Voice Alert - Single Station License 1 $ 1,433.25 $ 1,289.93 $ 1,289.93 G2-APP-DLA G2 Mobile FSAS App 24 $ 15.00 $ 13.50 No Charge

STATION SYSTEM CONTROLLER
Part No. Description Quantity US List Unit Unit Price Extended Price ATX G2 ATX Station Controller 1 $ 23,272.50 $ 20,945.25 $ 20,945.25 UPS-STD ATX UPS, Standard 1 $ 1,017.64 $ 915.88 $ 915.88 UPS-WMB Wall-Mount for UPS (Shelf/Bracket) 1 $ 77.25 $ 69.53 $ 69.53

STATION SYSTEM PERIPHERAL COMPONENTS
Part No. Description Quantity US List Unit Unit Price Extended Price TV-R G2 HDTV Remote 1 $ 1,121.50 $ 1,009.35 $ 1,009.35
PB-B Push Button, Standard (Black) 1 $ 126.50 $ 113.85 $ 113.85 PB-R Push Button, Emergency (Red) 1 $ 126.50 $ 113.85 $ 113.85 MR-2 G2 Message Remote 2 3 $ 1,753.75 $ 1,578.38 $ 4,735.14 USDD-LCD-SIGN G2 LCD Message Sign 2 $ 3,000.00 $ 2,700.00 $ 5,400.00 MS-MNT MS Mount - Articulating 2 $ 390.00 $ 351.00 $ 702.00 RR-2 G2 Room Remote 2 4 $ 2,275.35 $ 2,047.82 $ 8,191.28 SPK-LED-FM G2 Speaker - LED Illuminated, Flush Mount 14 $ 374.00 $ 336.60 $ 4,712.40 SPK-LED-SM G2 Speaker - LED Illuminated, Surface Mount (Metal Box) 13 $ 374.00 $ 336.60 $ 4,375.80 SPK-OAS G2 Speaker - OmniAlertStrobe 3 $ 1,575.00 $ 1,417.50 $ 4,252.50 SPK-W-SM Speaker - Appbay/Outdoor - Weatherized, Surface Mount 2 $ 373.75 $ 336.38 $ 672.76 STR-2 G2 Strobe Light / Red LED 1 $ 661.50 $ 595.35 $ 595.35

STATION SYSTEM SERVICES
Part No. Description Quantity US List Unit Unit Price Extended Price ST-INST Station Installation by: Tech Electric 1 $ 73,662.60 $ 73,662.60 $ 73,662.60 ST-SU Station Configuration & Commissioning 1 $ 2,750.00 $ 2,475.00 $ 2,475.00 ST-PM Station Project Management 1 $ 1,350.00 $ 1,215.00 $ 1,215.00 ST-ES Station Engineering & Design Services 1 $ 750.00 $ 675.00 $ 675.00 PROPRIETARY and CONFIDENTIAL FS14 Page 2 of 10
PGCC 10-15-25

STATION SYSTEM WARRANTY & OPTIONAL RECURRING ANNUAL SUPPORT Part No. Description Quantity US List Unit Unit Price Extended Price RS-1YR-STD
[STANDARD] 1st Year Warranty & Support - Included with Initial Purchase
Technical phone support Monday through Friday from 08:00 to 17:30 MST, excluding USDD holidays;
Remote access support Monday through Friday from 08:00 to 17:30 MST, excluding USDD holidays;

1.0 $ 6,454.99 $ 5,809.49 No Charge
STATION 14
Equipment Only: $ 58,094.87
System: $ 136,122.47
Shipping: $ 1,228.00
Warranty & Support: $ -
Estimated Tax: $ 5,373.78
Station Subtotal: $ 142,724.25
Warranty & Support Notes:

Customer must elect to choose any coverage they require beyond initial warranty period, or USDD will not be authorized to provide any service or support. Mobile Smart Phone Alerting App and Mapping Services only available to customer while under warranty or elected recurring annual support. Support Agreements subject to change if system design is modified. For additional details, please review current USDD Warranty Statement and Service Agreement. USDD cannot warrant nor support any system configuration that deviates from this specific proposal's documented station system design file number. USDD cannot warrant nor support any system not using USDD-approved UPS Battery Backup. USDD cannot warrant nor support any system not installed by G2 Trained & Certified Installation technician (installer). If customer intends to tie this system into any 3rdparty system or devices, USDD will be unable to warrant or support the sytem until we've had a chance to review documented engineering assumptions and approve system integrity, performance and reliability expectations.

For FSAaaS Program: The cost of service and support beyond initial warranty period is included in the FSASaaS Program for a total of 5 years. The service and support includes Mobile Smart Phone Alerting App and Mapping Services. Please see the FSASaaS Subscription Agreement for more information concerning the service and support provided by USDD. USDD cannot warrant nor support any system not using USDD-approved UPS Battery Backup. USDD cannnot warrant nor support any system not installed by G2 Trained & Certified Installation technician (installer). If customer intends to tie this system into any 3rd-party system or devices, USDD will be unable to warrant or support the sytem until we've had a chance to review documented engineering assumptions and approve system integrity, performance and reliability expectations.

Station System Installation Notes:
01 - Unless specifically detailed in this proposal, no installation by USDD or it's subcontractors is assumed or provided. 02 - Because these are mission-critical systems, USDD can only warrant and support systems installed by G2 Trained and Certified Contractors. 03 - USDD can source, qualify, train and certify Local Licensed Regional Subcontrators where needed. 04 - Installation warranted by installation contractor - G2 FSAS warranted, serviced and supported by USDD. 05 - Unless specifically detailed in this proposal, installation to be performed during normal working hours. 06 - Unless specifically detailed in this proposal, no permit fees or material charges have been included. 07 - Unless specifically detailed in this proposal, no removal or remediation has been assumed or included. 08 - Unless specifically detailed in this proposal, no bonds of any type (performance, bid) have been assumed,included or budgeted for in this proposal. 09 - USDD FSAS Equipment to be made available by owner to Installation Contractor prior to on-site arrival. 10 - Structural backing for system devices and other millwork (not specifically detailed) by others. 11 - If applicable, Gas Control Shutoff Valve Addendum (to USDD and installation contractor) must be signed prior to installation. 12 - All electrical power, including (but not limited to) raceway,conduit, backboxes, service panels, high-voltage wiring and fixtures by others. 13 - All communications pathway infrastructure (network, radio, etc.) by others unless specifically detailed in this proposal. 14 - USDD cannot warrant nor support any owner-furbished (3rd-Party) system or component we are required to integrate with. USDD cannot warrant nor support any system or component it has not proofed engineering for and has not specifically authorized for use within public safety environments. 15 - Any misuse, unauthorized modification, improper installation, excessive shock, attempted repair, accident, or improper or negligent use, storage, transportation, or handling by any party other than USDD shall render this limited warranty null, void and of no further effect PROPRIETARY and CONFIDENTIAL FS14 Page 3 of 10
PGCC 10-15-25

US DIGITAL DESIGNS Date: 9/16/2025
by Honeywell Expires: 12/15/2025
Quote Submitted To: Proposal:

City of Pacific Grove, CA CA_PGRV002 v2
Pacific Grove Fire Department
Unless Otherwise Noted, All Prices are $USD
STATION 14 SYSTEM: 137,350.47
STATION 14 WARRANTY & SUPPORT: -
STATION 14 ESTIMATED TAX: 5,373.78
US Digital Designs System Total: $ 142,724.25
(TBD By Customer) Customer must elect to choose any coverage they require beyond initial warranty period, or USDD will not be authorized to provide any service or support. Mobile Smart Phone Alerting App and Mapping Services only available to customer while under warranty or elected recurring annual support. Support Agreements subject to change if system design is modified. For additional details, please review current USDD Warranty Statement and Service Agreement Dispatch or station level training is not included in this proposal. Contact your Regional Territory Manager to schedule additional training if needed
Section Totals
Notes: One (1) Station System currently included in this proposal with installation by Tech Electric.

PROPRIETARY and CONFIDENTIAL SECTION TOTALS Page 4 of 10 PGCC 10-15-25

TERMS AND CONDITIONS OF HONEYWELL PRODUCT SALES
These terms and conditions of sale (“Terms and Conditions”) are adopted effective January 1, 2023 (the “Terms and Conditions Effective Date”), and supersede all prior versions covering the sale of products and related services (collectively, “Products”, as defined more specifically below) by Honeywell International Inc., through its US Digital Designs group (“Honeywell”). References to “Customer”, “you”, or “your” all pertain to the purchaser of Products. These Terms and Conditions, together with any separate agreement you may have with Honeywell that specifically references these Terms and Conditions (collectively, the “Agreement”) set forth the entire agreement between the parties relating to your purchase of Honeywell Products. The Agreement may only be modified by an authorized representative of each party in a signed writing.

1. ORDERS. Orders (including any revised and follow-on orders) (each, an “Order”) for Honeywell Products are non-cancelable, except as expressly set forth herein, and will be governed by the terms of the Agreement. All Orders are subject to acceptance by Honeywell and shall include the following information: purchase order number; customer’s legal name and billing address; Customer’s shipping address; and a list of the Products and quantities for each different type of Product Customer wishes to order. Honeywell’s acknowledgment of its receipt of an Order shall not constitute acceptance of such Order.

1.1 No Returns. Because of the nature of System and its Products, Honeywell cannot accept returns of Product for refund, credit, exchange or any other purpose. Notwithstanding, defective Products may be returned as provided for under Section 9.4 – Return Material Authorization Process. Customer must thoroughly assess its requirements and specifications prior to ordering.

2. REMITTANCES. All invoices shall be due and payable upon receipt in United States currency, free of exchange or any other charges, or as otherwise agreed in writing by Honeywell.

3. QUOTE PRICING. This proposal expires 30 days after its date. Prices are subject to correction for error. Prices, terms, conditions, and Product or Service specifications are subject to change without notice. Pricing is subject to immediate change upon announcement of Product discontinuance.

4. PAYMENT.

4.1. Invoicing & Payment. Honeywell reserves the right to invoice Customer monthly for all materials delivered. Invoices are due thirty (30) days from the date of the invoice, unless prepayment is required in the quote. If the Customer becomes overdue in any progress payment, Honeywell shall be entitled to suspend further shipments, shall be entitled to interest at the annual rate of 18%, or the maximum amount allowed by law, and shall also be entitled to avail itself of any other legal or equitable remedies. Customer agrees that it will pay and/or reimburse Honeywell for any and all reasonable attorneys’ fees and costs which are incurred by Honeywell in the collection of amounts due and payable hereunder.

4.2. Payment Disputes. Any disputes must be provided to Honeywell as soon as possible and must be accompanied by detailed supporting information. Disputes as to invoices are deemed waived fifteen (15) days following the invoice date. In the event that any portion of an invoice is undisputed, such undisputed amount must be paid by no later than the invoice due date.

4.3. No Set Off. Neither Customer nor any related entities (or representatives or agents thereof) shall attempt to set off or recoup any invoiced amounts or any portion thereof against other amounts that are due or may become due from Honeywell, its parent, affiliates, subsidiaries or other legal entities, business divisions, or units.

4.4. Credit Card Payments. All Honeywell quotes are developed for the Customer with the understanding that any purchase of the Products listed thereon will facilitated using to Honeywell’s standard Purchase Order and Invoice process. If Ccustomer would rather seek to use a Credit Card for purchase, then said order would be subject to a 4% credit card surcharge.

5. SURCHARGES.

5.1. For avoidance of doubt, Orders placed prior to the Terms and Conditions Effective Date which have not been delivered, including those on backlog or which requested delivery more than twelve (12) months from the date of Order, are subject to Surcharges.

5.2. Honeywell will invoice Customer, and Buyer agrees to pay for any Surcharges pursuant to the standard payment terms in these Terms and Conditions. If a dispute arises with respect to Surcharges and that dispute remains open for more than fifteen (15) days, Honeywell may, in its sole discretion, withhold performance or future shipments, or combine any other rights and remedies under this Agreement or permitted by law, until the dispute is resolved. The terms of this Section shall prevail in the event of inconsistency with any other terms in these Terms and Conditions. Any Surcharges, as well as the timing, effectiveness, and method of determination thereof, will be separate from and in addition to any changes to pricing that are affected by any other provisions in these Terms and Conditions.

6. CANCELLATION AND SUSPENSION. Any Order resulting from this proposal is subject to cancellation or instructions to suspend work by the Customer only upon agreement to pay Honeywell for all work in progress, all inventoried or ordered project parts and materials, and all other costs incurred by Honeywell related to the Order.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 5 of 10 PGCC 10-15-25

7. TAXES. Honeywell’s pricing excludes all taxes (including but not limited to sales, use, excise, value-added, and other similar taxes), tariffs and duties (including, but not limited to, amounts imposed upon the Product(s) or bill of material thereof under any Trade Act, including, but not limited to, the Trade Expansion Act, section 232 and the Trade Act of 1974, section 301) and charges (collectively “Taxes”). All Taxes of any kind levied by any federal, state, municipal or other governmental authority, which tax Honeywell is required to collect or pay with respect to the production, sale, or delivery of products sold to Customer, shall be the responsibility of and be invoiced to Customer, unless, at the time of Order placement, Customer furnishes Honeywell with a valid exemption certificate or other documentation sufficient to verify exemption from Taxes, including, but not limited to, a direct pay permit. Customer agrees to pay all such Taxes and further agrees to reimburse Honeywell for any such payments made by Honeywell.

8. SHIPPING/DELIVERY/RISK OF LOSS.

8.1. Delivery Liability. Delivery and shipment dates for Products are estimates only. Deliveries may be made in partial shipments. Honeywell and its affiliated entities are not liable, either directly or indirectly, for delays of carriers or delays in connection with any Force Majeure Event (as defined in Section 17 below), and the estimated delivery date shall be extended accordingly.

8.2. Future Delivery and Repricing. Honeywell will schedule delivery in accordance with its standard lead times unless the Order states a later delivery date or the parties otherwise agree in writing. Honeywell will accept Orders with a future ship date of up to eighteen (18) months from the date of the entry of the Order. Customer agrees that in the event an Order is scheduled to be delivered more than six (6) months from the date of the entry of the Order, Honeywell may, in its sole determination and at each six (6) month anniversary of the date of the entry of the Order, adjust the pricing of the Order to conform to the then-current prices of the Honeywell Products included in the Order.

Honeywell will include any repricing in its final invoice related to the Order.

8.3. Storage Fees. If delivery takes place more than six (6) months from the date of the entry of the Order, Customer agrees to pay Honeywell a storage fee (the “Storage Fee”), as set forth in the quote, for each month after six (6) months from the date of the entry of the Order Customer has not taken delivery of the Products in the Order. Honeywell will separately invoice any storage fees owed under this Section at the end of each month for which the storage fees are owed.

8.4. Title & Risk of Loss. Unless otherwise specifically detailed in this quote, delivery terms for Products (excluding software and services) are (i) EX Works (EXW Incoterms 2020) Honeywell’s point of shipment (“Honeywell Dock”) for all shipments (except that Honeywell is responsible for obtaining any export license), and (ii) F.O.B. Honeywell Dock for all domestic shipments. For shipments from a Honeywell Dock to a Buyer location within the same country, the import/export provisions of the INCOTERMS do not apply. Honeywell shall be responsible for obtaining insurance on each shipment to Customer for the full value of the shipment. Shipment shall be to a single point of delivery.

9. LIMITED WARRANTY. CUSTOMER’S EXCLUSIVE REMEDIES AND HONEYWELL’S SOLE LIABILITY AS TO ANY WARRANTY CLAIM ON ANY PRODUCT SOLD IN CONNECTION WITH THIS QUOTE IS AS SET FORTH IN THIS SECTION. SUCH REMEDIES ARE IN LIEU OF ANY

OTHER LIABILITY OR OBLIGATION OF HONEYWELL, INCLUDING WITHOUT LIMITATION ANY LIABILITY OR OBLIGATION FOR DAMAGE,

LOSS, OR INJURY (WHETHER DIRECT, INDIRECT, EXEMPLARY, SPECIAL, CONSEQUENTIAL, PUNITIVE OR INCIDENTAL) ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE, OR PERFORMANCE OF THE PRODUCTS. CREDIT, REPAIR OR REPLACEMENT (AT HONEYWELL’S OPTION) IS THE SOLE REMEDY PROVIDED HEREUNDER. NO EXTENSION OF THIS WARRANTY WILL BE BINDING UPON HONEYWELL UNLESS SET FORTH IN WRITING AND SIGNED BY A HONEYWELL AUTHORIZED REPRESENTATIVE.

9.1. Product Warranty Terms. Subject to the terms, conditions and limitations contained herein, and unless Honeywell has otherwise provided an alternative written warranty (in which case the terms of such warranty will control), Honeywell warrants and guarantees its products will be free from defects in workmanship and materials (collectively, “Defects”) for 12 months from Customer’s the “Go Live Date” (“Warranty Period”). This limited warranty does not cover defects caused by normal wear and tear or maintenance. For purposes of subparagraph, “Go-Live Date” shall mean means the date on which an authorized Honeywell technician has inspected and approved installations, confirmed that all connections and start-up configurations are properly working, and confirming the System can send and receive alerts through the configured communication pathways.

9.2. Product Defects. If a Defect with a Product arises and a valid claim is made within the Warranty Period, Customer shall initiate the RMA process as described below. Upon approval, Honeywell at its option, will either (1) repair the Product defect at no charge, using new parts or parts equivalent to new in performance and reliability or (2) exchange the Product with a Product that is new or equivalent to new in performance and reliability and is at least functionally equivalent to the original Product. Any replacement Product or part, including a user-installable part that has been installed in accordance with instructions provided by Honeywell, shall remain under warranty during the Warranty Period or for ninety (90) days from the date of repair, whichever is longer. When a Product or part is exchanged, any replacement item becomes the Customer’s property and the replaced item becomes the property of Honeywell. Parts provided by Honeywell in fulfillment of its warranty obligation must be used in the same Honeywell Fire Station Alerting System for which the warranty claim is made.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 6 of 10 PGCC 10-15-25

9.3. Procedure for Warranty Claims.

9.3.1. Prior to making a Warranty claim, Customer is encouraged to review Honeywell’s online help resources. Thereafter, to make a valid claim hereunder, Customer must contact Honeywell technical support and describe the problem or defect with specificity. The first such contact must occur during the Warranty Period. Honeywell’s technical support contact information can be found on Honeywell’s web site at https://buildings.honeywell.com/us/en/brands/our-brands/usdd. Customer must use its best efforts to assist in diagnosing defects, follow Honeywell’s technical instructions, and fully cooperate in the diagnostic process. Failure to do so shall relieve Honeywell of any further obligation hereunder.

9.3.2. If a defect with the Hardware arises and Customer makes a valid Support Service Request within the Warranty Period, Customer shall initiate the RMA process as described below. Upon approval, Honeywell will cause shipment of a replacement Hardware component to Customer prior to the defective Hardware component being returned to Honeywell for repair. The replacement Hardware will be new or equivalent to new in performance and reliability and at least functionally equivalent to the original Hardware. When Hardware is exchanged, any replacement item becomes the Customer’s property and the replaced item becomes the property of Honeywell. Replaced Hardware provided by Honeywell in fulfillment of the Support Services must be used in the System to which this Agreement applies.

9.4. Return Material Authorization Process.If a Customer makes a claim for an advanced replacement of a Hardware component during the Warranty Period, Customer must initiate an RMA request. As part of this RMA process, the Customer shall provide Honeywell with the Hardware, model, serial number, and a description of the Hardware’s failure to initiate the RMA process. Upon Honeywell’s issuance of the RMA, Honeywell will send the replacement Hardware, shipped postage paid, ground shipping, to the address provided by Customer. RMA requests approved between 12:00 a.m. and 2:00 p.m. Mountain Standard Time are shipped on the same business day. After 2:00 p.m.

Mountain Standard Time, the replacement Hardware will be shipped on the next business day. All RMA requests are processed on the business day on which the request was received, excluding holidays. Included with the shipped package will be return shipment instructions and a pre-paid return shipping label for the Hardware that the Customer is returning. The original Hardware must be returned in the shipping box provided by Honeywell. No goods will be accepted for exchange or return without a pre-approved RMA number, nor will goods which have not been properly packaged in Honeywell’s shipping box, as proper packaging ensures that goods are not damaged during the shipping process. The original Hardware must be shipped back within 10 days of receiving the replacement Hardware. Failure to return the original Hardware or failure to return the original Hardware in an appropriate manner will cause Customer to incur a replacement charge equal to full market value of the replacement Hardware.

9.5. No Fault Found. Customer understands that this fee is intended to discourage return of Products prior to proper troubleshooting or return because the product is “old.” Product returns will not be allowed if, upon examination of the returned Product, it is determined that the Product was subjected to accident, misuse, neglect, alteration, improper installation, unauthorized repair, improper testing, or poor packaging upon return. In such event, Honeywell shall invoice Customer for the full market value of the replacement Product.

9.6. WARRANTY EXCLUSIONS & DISCLAIMERS.

9.6.1. Honeywell does not warrant that the operation of its Products or any related peripherals will be uninterrupted or error-free.

Honeywell further does not warrant nor support any system configuration that deviates from this specific quote’s documented station system design file number.

9.6.2. Honeywell does not warrant or support any system not installed by G2 Trained & Certified Installation technician (installer). If Customer intends to tie this system into any 3rd-party system or devices, Honeywell will be unable to warrant or support the Products unless Honeywell has had a chance to review documented engineering assumptions and approve system integrity, performance, and reliability expectations.

9.6.3. Honeywell is not responsible for damage arising from Customer’s failure to follow instructions relating to the use of the Products.

This Warranty does not apply to any Products, including the hardware or software, not used for its intended purpose.

9.6.4. Honeywell cannot warrant nor support any system not using Honeywell-approved Uninteruptable Power Supply Battery Backup.

This Warranty does not apply to monitors or televisions manufactured by third parties. Repair or replacement of such components shall be subject exclusively to the manufacturer’s warranty, if any. Recovery and reinstallation of hardware and user data (including passwords) are not covered under this Warranty.

9.6.5. This Warranty does not apply: (a) to consumable parts, such as batteries, unless damage has occurred due to a defect in materials or workmanship; (b) to cosmetic damage, including but not limited to scratches, dents and broken plastic on ports; (c) to damage caused by use with non-Honeywell products; (d) to damage caused by accident, abuse, misuse, flood, lightning, fire, earthquake or other external causes; (e) to damage caused by operating the Product outside the permitted or intended uses described by Honeywell; (f) to damage or failure caused by installation or service (including upgrades and expansions) performed by anyone who is not a representative of Honeywell or a Honeywell authorized installer or service provider; (g) to a Product or part that has been modified to alter functionality or capability without the written permission of Honeywell; (h) to Software (as defined below); (i) to any other damage caused by an event or action outside of Honeywell’s control, including, without limitation, Customer’s failure to apply required or recommended updatres or patches to any Software or Product; or (h) if any serial number has been removed or defaced.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 7 of 10 PGCC 10-15-25

10. LIMITATIONS OF LIABILITY. TO THE EXTENT PERMITTED BY LAW, THE LIMITED WARRANTY IN SECTION 9 OF THESE TERMS AND

CONDITIONS AND ANY OTHER REMEDIES SET FORTH ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, REMEDIES AND CONDITIONS, WHETHER ORAL OR WRITTEN, STATUTORY, EXPRESS OR IMPLIED. AS PERMITTED BY APPLICABLE LAW,

HONEYWELL SPECIFICALLY DISCLAIMS ANY AND ALL STATUTORY OR IMPLIED WARRANTIES, INCLUDING, WITHOUT

LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES AGAINST HIDDEN OR LATENT DEFECTS. If Honeywell cannot lawfully disclaim statutory or implied warranties, then to the extent permitted by law, all such warranties shall be limited in duration to the duration of this express Warranty and to repair or replacement service as determined by Honeywell in its sole discretion. No reseller, agent, or employee is authorized to make any modification, extension, or addition to this Warranty. If any term is held to be illegal or unenforceable, the legality or enforceability of the remaining terms shall not be affected or impaired.

EXCEPT AS PROVIDED IN THE LIMITED WARRANTY IN SECTION 9 OF THESE TERMS AND CONDITIONS, AND TO THE EXTENT

PERMITTED BY LAW, HONEYWELL IS NOT RESPONSIBLE FOR INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL

DAMAGES RESULTING FROM ANY BREACH OF WARRANTY OR CONDITION, OR UNDER ANY OTHER LEGAL THEORY, INCLUDING BUT NOT LIMITED TO LOSS OF USE; LOSS OF REVENUE; LOSS OF THE USE OF MONEY; LOSS OF ANTICIPATED SAVINGS; LOSS OF GOODWILL; LOSS OF REPUTATION; AND LOSS OF, DAMAGE TO OR CORRUPTION OF DATA. HONEYWELL IS NOT RESPONSIBLE FOR

ANY INDIRECT LOSS OR DAMAGE HOWSOEVER CAUSED, INCLUDING THE REPLACEMENT OF EQUIPMENT AND PROPERTY, ANY

COSTS OF RECOVERING PROGRAMMING OR REPRODUCING ANY PROGRAM OR DATA STORED OR USED WITH HONEYWELL PRODUCTS, AND ANY FAILURE TO MAINTAIN THE CONFIDENTIALITY OF DATA STORED ON THE PRODUCT.

L PRODUCT CLAIMS ARE LIMITED TO THOSE EXCLUSIVE REMEDIES SET FORTH IN THE LIMITED WARRANTY IN SECTION 9 OF THESE TERMS AND CONDITIONS. HONEYWELL’S AGGREGATE LIABILITY IN CONNECTION WITH THEREWITH SHALL NOT EXCEED THE PURCHASE PRICE OF THE PRODUCTS PAID BY CUSTOMER TO HONEYWELL FOR THE PRODUCTS GIVING RISE TO THE CLAIM.

Honeywell disclaims any representation that it will be able to repair any Hardware under this Warranty or make a product exchange without risk to or loss of the programs or data stored thereon.

11. SERVICE AGREEMENT. The Product being purchased hereunder is not subject to any post-Warranty service agreement or maintenance program unless specifically contracted for between Honeywell and Customer. Honeywell offers a comprehensive post-Warranty Service Agreement at additional cost. Customer should contact Honeywell regarding its Service Agreement and costs associated therewith.

12. SOFTWARE PRODUCTS. All software Products delivered by Honeywell to Customer or for which Honeywell provides access, including, without limitation, Honeywell’s mobile application software and Products with embedded software or firmware (collectively, “Software”) are not sold and are licensed. At all times that Customer is in compliance with the terms of these Terms and Conditions and any other agreement between the parties, Customer shall have a non-exclusive, non-transferable, fully paid license to use the Software, but only in conjunction with the Products provided by Honeywell and Customer’s fire station alerting system (the “License”). The terms of such Software License may be set forth in a separate software license agreement or end user license agreement provided by Honeywell with such Software. In no event shall Customer have any right to (or authorize or allow any third party to) distribute, sell, lend, rent, transfer, or convey the Software; grant any sublicense, lease, or other rights in the Software; decompile, disassemble, reverse engineer, or otherwise attempt to reconstruct, identify, or discover any source code, underlying user interface architecture or techniques, or algorithms of the Software by any means; or take any action that would cause the Software or any portion of it to be placed in the public domain. In the event of a conflict between the terms of any Software license terms provided upon download or purchase a purchase and these Terms and Conditions, the relevant Software license terms shall control solely with respect to such Software.

13. INTELLECTUAL PROPERTY: Customer hereby agrees and acknowledges that Honeywell owns all rights, title, and interest in and to the Intellectual Property (as defined below). Customer agrees to not remove, obscure, or alter Honeywell’s or any third party's copyright notice, trademarks, or other proprietary rights notices affixed to or contained within or accessed in conjunction with or through Honeywell’s Product (as defined below). Nothing herein shall be deemed to give, transfer, or convey to Customer any rights in the Intellectual Property other than the License, as set forth above. For purposes of this Section,“Intellectual Property" means any and all rights of Honeywell related to Honeywell’s Products existing from time to time under patent law, copyright law, trade secret law, trademark law, unfair competition law, and any and all other proprietary rights, and any and all derivative works, work product, applications, renewals, extensions and restorations thereof, now or hereafter in force and effective worldwide.

14. FIRST ARRIVING MOBILE APP. If Customer wishes to use its First Arriving Mobile App (“First Arriving”) with the System being acquired from Honeywell, Customer agrees to the following:

14.1 Customer acknowledges that it bears full responsibility for complying with applicable law and resultations, including all privacy requirements, and for providing any required notices and obtaining all required consents in order for Honeywell to transmit alert to First Arriving. Customer also acknowledges that Honeywell bears no responsibility for any service failure by First Arriving, nor is Honeywell responsible for supporting First Arriving’s services or platform. Honeywell is offering to transmit alerts that are transmitted through its Honeywell service to First Arriving merely as a courtesy to Customer.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 8 of 10 PGCC 10-15-25

14.2 IN NO EVENT SHALL HONEYWELL BE LIABLE TO CUSTOMER FOR ANY CLAIMS, WHETHER ARISING FROM ANY INDEMNIFICATION

OBLIGATION HONEYWELL MAY HAVE OR THAT ARISE FROM A BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING

NEGLIGENCE), OPERATION OF LAW, OR OTHERWISE, AND EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF THE

LIABILITY OR THE LIABILITY IS OTHEWISE FORESEEABLE, FOR ANY LOST PROFITS OR REVENUE, SPECIAL, INCIDENTAL, INDEIRECT,

CONSEQUETIAL, EXEMPLARY, OR PUNITIVE DAMAGES OF ANY KIND (INCLUDING ALL DAMAGES DUE TO BUSINESS INTERRUPTION, LOSS OR CORRUPTION OF DATA, OR LOST USE OF ANY PROPERTY OR CAPITAL) THAT RELATE TO OR ARISE OUT OF HONEYWELL’S TRANSMISSION OF ALERTS TO FIRST ARRIVING. FURTHER HONEYWELL’S AGGREGATE LIABILITY IN CONNECTION WITH ITS

TRANSMISSION OF ALERTS TO FIRST ARRIVING WILL BE LIMITED TO THE GREATER OF THE AMOUNT PAID BY CUSTOMER TO HONEYWELL IN ORDER FOR HONEYWELL TO TRANSMIT ALERTS TO FIRST ARRIVING OR $100. 15 REMOTE ACCESS TO THE SYSTEM.

15.1 Remote Access. Honeywell requires remote network access to the Customer’s Products through Secure Shell (SSH) to perform implementation and support tasks under this Agreement. To enable remote network access, the Customer will provide Honeywell support personnel VPN or similar remote network access to the Products for Honeywell support personnel (“Customer Support”) to effectively troubleshoot critical or complex problems and to expedite resolution of such issues. Remote network access is also used to install core software upgrades and customized software. Honeywell will only access Customer’s Products with the knowledge and consent of Customer. Honeywell will not access any other systems or data.

15.2. Alternative to Network Access. If the Customer elects not to provide remote network access to the Products, then Honeywell may not be able to perform some support functions. Customers that elect not to routinely provide network access may temporarily reinstate this access to allow Honeywell to perform the above services. The following services will not be performed without this access: Product software upgrades; Product software customization; Network troubleshooting assistance including packet capture and network monitoring on Honeywell devices; Detailed log analysis; Bulk updates to certain Product database tables; Troubleshooting that requires low-level system access or large file transfer.

15.3. Timely Access. Customers much ensure that remote access is available prior to notifying Honeywell of a support request. In the event that the Customer is unable to provide remote access, Honeywell will not be required to provide support outside those tasks that do not require remote access, and any corresponding resolution response times will not apply.

15.4. Physical Security Tokens. Honeywell has multiple software engineers that provide after-hours support and these engineers do not typically take security tokens from the Honeywell office. If the customer requires the use of physical security tokens, this may delay after hours service.

16. GOVERNING LAW. This proposal and any contract or agreement resulting therefrom will be governed by and construed according to the laws of the State of Arizona without regard to its conflicts of law principles.

17. DISPUTE RESOLUTION/ARBITRATION. Before either Honeywell or Customer initiate any dispute resolution process related to the Agreement, they must schedule an executive resolution conference to be held within thirty (30) days of receipt of the other party’s written request. The conference must be attended by at least one executive from each party. At the conference, each party will present its view of the dispute in detail and the executives will enter into good faith negotiations in an attempt to resolve the dispute. If the dispute is not resolved within fifteen (15) days of the end of the conference or if one party refuses to attend the executive resolution conference, then Honeywell and Customer further agree that any remaining dispute between them arising out of or relating to this Agreement will be settled by litigation with jurisdiction being Maricopa County, Arizona.

18. FORCE MAJEURE. Except for Customer’s duty to pay sums due hereunder, neither party will be liable to the other for any failure to meet its obligations due to any Force Majeure Event. As used herein, a “Force Majeure Event” is one that is beyond the reasonable control of the non-performing party and may include, but is not limited to: (a) delays or refusals to grant an export license or the suspension or revocation thereof, (b) embargoes, blockages, seizure or freeze of assets, or any other acts of any government that would limit a party’s ability to perform the Contract, (c) fires, earthquakes, floods, tropical storms, hurricanes, tornadoes, severe weather conditions, or any other acts of God, (d) quarantines, pandemics, or regional medical crises, (e) labor strikes, lockouts, or pandemic worker shortages, (f) riots, strife, insurrection, civil disobedience, landowner disturbances, armed conflict, terrorism or war, declared or not (or impending threat of any of the foregoing, if such threat might reasonably be expected to cause injury to people or property), and (g) shortages or inability to obtain materials or components. The party unable to fulfill its obligations due to Force Majeure will promptly (i) Notify the other in writing of the reasons for its failure to fulfill its obligations and the effect of such failure; and (ii) Use all reasonable efforts to avoid or remove the cause and perform its obligations.

If a Force Majeure Event results in a delay, then the date of performance will be extended by the period of time that the non-performing party is actually delayed or for any other period as the parties may agree in writing. In the event that a Force Majeure Event is ongoing for a period of time which is sixty (60) days or longer, Honeywell may provide notice to Customer that it is cancelling its Order.

19. ACCEPTANCE OF TERMS. This proposal shall become a binding contract between the Customer and Honeywell when accepted in writing by the Customer. Without limiting the foregoing, issuance by Customer of a purchase order to Honeywell for any of the goods or services herein described shall constitute acceptance.

20. SEVERABILITY. In the event any provision or portion of a provision herein is determined to be illegal, invalid, or unenforceable, the validity and enforceability of the remaining provisions shall not be affected and, in lieu of such provision, a provision as similar in terms as may be legal, valid, and enforceable shall be added hereto.

21. WAIVER. The failure of either party to insist upon strict performance of any provision of these Terms and Conditions, or to exercise any right provided for herein, shall not be deemed to be a waiver for the future of such provision or right, and no waiver of any provision or right shall affect the right of the waiving party to enforce any provision or right herein.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 9 of 10 PGCC 10-15-25

22. NO JOINT VENTURE. The parties acknowledge that they are independent entities and nothing contained in these Terms and Conditions shall be construed to constitute either party hereto as the partner, joint venturer, employee, agent, servant, franchisee, or other representative of the other party hereto, and neither party has the right to bind or obligate the other, except as otherwise provided herein.

Furthermore, nothing contained in these Terms and Conditions shall be construed to constitute Customer as an exclusive purchaser of the Products in any respect.

THIS QUOTE SUBJECT TO REVIEW FOR ERRORS AND OMISSIONS.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 10 of 10 PGCC 10-15-25

Agenda No. 11 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: October 15, 2025
SUBJECT: Proposed Revision to Chapter 2.16 of the City Ordinance regarding the Purchasing System and Procedures
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

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

2. Motion to waive further reading of the ordinance;
Introduce and hold the first reading of a revision to Chapter 2.16 of the City Ordinance regarding the Purchasing System and Procedures

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

4. Approve the Resolution establishing dollar limits for approval of contracts for specified employee classifications.

5. DISCUSSION
Staff is proposing a few minor changes to the City’s current ordinance regarding its Purchasing System and Procedures, including:

Defining the Purchasing Agent as the City Manager and/or his or her designees Increasing the amount when City Council authorization is required for a purchase from $40,000 as of July 1, 2020 to $50,000 as of July 1, 2025, based upon the changes in the Bay Area Consumer Price Index over the past five fiscal years (rounded up in accordance with the ordinance to the nearest $5,000)
Indicating that the price of bids, for projects involving the use of federal or state grant funds, cannot be reduced for purposes of evaluation by the amount of sales tax received by the City from the transaction.

That written reports of all purchases made shall be provide to the Council in the form of a check register on a monthly basis.

In addition, staff has developed a Resolution for Council consideration that would establish dollar limits for approval of contracts for specified employee classifications.

OPTIONS
Approve ordinance and resolution
PGCC 10-15-25

Approve ordinance and resolution
Provide alternate direction
FINANCIAL IMPACT:

There is no fiscal impact to the adoption of the resolution and proposed revisions to this ordinance.

FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
Proposed Ordinance with Redline Changes
Clean Version of Proposed Changes
Purchasing Resolution
PGCC 10-15-25

ORDINANCE NO. 25-xxx

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE AMENDING CHAPTER 2.16 PURCHASING SYSTEM AND PROCEDURES
FACTS

1. The City had previously adopted Chapter 2.16 regarding its purchasing system and procedures

2. Staff has proposed several changes to these purchasing procedures, which have been incorporated into a revised Chapter 2.16 for consideration by Council.

3. A summary of the ordinance, approved by the City Attorney, was published on ______.

4. 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.

5. Enactment of this ordinance does not constitute a “project” as defined by California Environmental Quality Act (CEQA) and as such is not subject to/exempt from CEQA because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment and involves the creation of a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.

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

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

SECTION 2. That the City Council does hereby approve and adopt a revised Chapter 2.16 regarding its purchasing system and procedures, which is attached to this Ordinance SECTION 3. This Ordinance shall become effective 30 days after the second reading of this Ordinance (“Effective Date”).

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 5th day of November, 2025, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

PGCC 10-15-25

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN PIERIK, City Attorney
PGCC 10-15-25

Chapter 2.16

PURCHASING SYSTEM AND PROCEDURES
Sections:

2.16.010 Purchasing procedures by city manager.

The city manager is the city’s purchasing agent, who can also designate these duties to the Administrative Services Department and other specified employees. He or she or their designees shall establish the procedures and forms to carry out such duty in accordance with the charter and this chapter. [Ord. 1405 N.S. § 2, 1984].

2.16.020 Applicability of chapter.

All purchases of and contracts for supplies, services, materials, equipment and public works by the city, or by an oƯicer or employee thereof, shall be made only in accordance with and pursuant to the provisions of this chapter. [Ord. 1405 N.S. § 2, 1984].

2.16.030 Encumbrance of funds.

A purchase order for supplies, services, materials or equipment shall not be issued unless there exists an unencumbered appropriation in the fund against which the purchase is to be charged. [Ord. 1405 N.S. § 2, 1984].

2.16.040 Declaration of policy.

A centralized purchasing system for all departments is adopted in order:
(a) To secure supplies, services, materials and equipment at the lowest possible cost commensurate with quality needed;
(b) To exercise positive financial control over purchases; (c) To define authority for the purchasing function;
(d) To assure the quality of purchases. [Ord. 1405 N.S. § 2, 1984].

2.16.050 Estimates of requirements.

Departments shall file detailed estimates of their requirements for supplies, services, materials and equipment in such manner, at such times, and for such future periods as the purchasing agent or their designees shall prescribe. For the remainder of this document, the purchasing agent or their designees shall be referred to as the “Agent.”. [Ord. 1405 N.S. § 2, 1984].

2.16.060 Requisitions.

All departments shall submit to the purchasing agentAgent requests for supplies, services, materials and equipment in such manner, at such times, and on such requisition forms as the purchasing agentAgent shall prescribe. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.070 Purchase orders.

All departments shall purchase supplies, services, materials and equipment only in such manner, at such times, and by such purchase order forms as the purchasing agentAgent shall prescribe. Purchase orders shall be required for all expenditures. [Ord. 1405 N.S. § 2, 1984].

2.16.080 Bidding procedures – Dispensation when.

Purchase of supplies, services, materials and equipment shall be by quotation or bid procedures as set forth in this chapter. Such procedures may be dispensed with by the purchasing agent, in his or her sole discretion and judgment as to the best interest of the city, as follows:
(a) When an emergency requires that an order be placed immediately with the nearest available source of supply;
(b) When the amount involved is less than $2,000;
(c) When the supply, service, material or equipment can be obtained from only one vendor or supplier; (d) When a service, such as that available from an attorney, accountant, architect or specialized consultant, involves a specialized knowledge or personal skill; (e) When supplies or equipment, such as communication systems, traƯic signals, and parking meters, have been uniformly adopted in the city or otherwise standardized; (f) When the supplies, equipment or materials are such that suitable technical or performance specifications are not availableavailable, and the city is unable to develop descriptive specifications; (g) When the article can be purchased more economically through the central purchasing authority of another governmental agency;
(h) When specific used supplies, materials or equipment will best serve the city’s needs; or (i) When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property.

Provided, that even when procedures are dispensed with hereunder, council approval, by resolution, shall be required for purchases in excess ofmore than the maximum amount for which the purchasing agent Agent is authorized, as specified in Article II of this chapter. [Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.090 Competitive negotiation.

As an alternative to the procedures set out in Articles II and III of this chapter, in the case of obtaining consulting and other specialized personal services, those services may be obtained by competitive negotiations. When this process is utilized, the best oƯer judged against proposal evaluation shall be accepted. Any oƯer exceeding the maximum amount for which the purchasing agent isAgent is authorized, as specified in Article II of this chapter, shall require council approval by resolution prior to acceptance. [Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.100 Lowest responsible bidder – Determining.

For the purpose of this chapter, in addition to price, the “lowest responsible bidder” will be determined after the following factors have been considered:
(a) The ability, capacity and skill of the bidder to perform the contract or provide the service required; (b) Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference;
(c) The character, integrity, reputation, judgment, experience and eƯiciency of the bidder; (d) The bidder’s record or performance of previous contracts or services; (e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;
(f) The suƯiciency of the financial resources and ability of the bidder to perform the contract or provide the service;
(g) The quality, availability and adaptability of the supplies, equipment, materials or services to the particular use required;
(h) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;
(i) The number and scope of conditions attached to the bid.

In the event the lowest bidder is rejected, the purchasing agentAgent or council, as the case may be, shall shall provide the lowest bidder with written explanation and/or findings regarding the rejection. (j) In the case of a bid received from a bidder, a portion of whose sales tax is paid to the city, the purchasing agentAgent shall calculate the actual cost to the city of accepting such bid. Said actual cost shall be the bid amount less sales tax revenue which would be received by the city were the city to accept such bid. Said actual cost shall be the price utilized by the city, in addition to the other factors set out in this section, in determining the lowest responsible bidder. This provision does not apply to any purchases involving the use of State or Federal grant funds, including pass through funds (k) Local Business Preference .
(1) Local bidders must bid with the same specification as required of nonlocalnon-local bidders. (2) Where competitive bidding is utilized for the purchase of supplies, equipment, materials or general services as specifically set forth in this section, the city shall grant preference to a local bidder who submits a quote or bid within five percent of the lowest responsible bidder and who is otherwise responsive and responsible to the invitation for bids.
(3) Where the lowest responsible bidder is not a local business, the purchasing oƯicer shall provide the lowest responsible local business bidder, should one exist and its bid is within five percent of the lowest PGCC 10-15-25

responsible bidder, with notice and an opportunity to reduce its bid to match that of the lowest responsible bidder.
(4) Upon notice being provided pursuant to this section, the local business shall have two full business days to provide written notice to the purchasing oƯicer of its desire to match the lowest bid. (A) In the event the local business elects to match, the contract will be awarded to the local business. (B) In the event the local business provided the opportunity to match does not opt to match the lowest responsible bid, the award of the contract shall be given to the lowest responsible bidder. (5) In instances where a local business and a nonlocal business submit equivalent lowest responsible bids, the purchasing oƯicer shall give preference to the local business. (6) All notices required under this section may be made orally, in writing or electronically. (7) The application of a local preference as set forth in this section shall only apply if factors such as quality, previous performance, and availability are equal among bidders. (8) Local preference shall not apply to any procurement of public work, purchases procured under federal or state requirements, cooperative purchases with other agencies, or where prohibited by other specific directive.
(9) No Exemption From Local Sales Tax. The application of a local preference as set forth in this section shall not exempt any eligible local business to which a contract is executed or awarded from having to pay all applicable federal, state or local sales tax.
(10) Local Business Defined. For purposes of this section, a “local business” means a business enterprise including, but not limited to, a sole proprietor, partnership, or corporation which has the following:
(A) A valid business license issued from the city; and
(B) Has a place of business with a physical address located within the jurisdictional limits of the city at least six months prior to publication of the call for bids and has at least one full-time employee located at the city business address. [Ord. 21-030 § 2, 2021; Ord. 1828 N.S. § 1, 1992; Ord. 1405 N.S. § 2, 1984].

2.16.110 Surplus supplies and equipment.

All using departments shall submit to the purchasing agentAgent, at such time and in such form as he or she shall prescribe, reports showing all supplies and equipment which are no longer usedused, or which have become obsolete or worn out. The purchasing agentAgent shall have authority to sell all supplies and equipment which cannot be used by any departmentdepartment, or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment. The purchasing agentAgent shall utilize all appropriate means to realize maximum return possible on such sales, exchanges and trades. [Ord. 1405 N.S. § 2, 1984].

2.16.120 Inspection – Testing.

The purchasing agentAgent shall inspect supplies and equipment delivered and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The PGCC 10-15-25

purchasing agentAgent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. [Ord. 1405 N.S. § 2, 1984].

2.16.130 Illegal contracts – Interest by city employee, oƯicer. (a) No oƯicer or employee of the city shall be or become directly interested in any contract work, or business, or in the sale of any article, the expense, price or consideration of which is payable from the city treasury, nor shall such oƯicer or employee receive any gratuity or advantage from any contract or person furnishing labor or material for same.
(b) Any contract with the city in which any oƯicer or employee is or becomes interested may be declared void by the council.
(c) The following shall be exempt from the provisions of this section:
(1) Members of city volunteer and reserve organizations who are not also full- or part-time employees of the city;
(2) Members of city boards, commissions and committees. (d) The provisions of this section shall not be construed so as toto excuse compliance with state laws regulating conflicts of interest. [Ord. 1910 N.S. § 1, 1993; Ord. 1405 N.S. § 2, 1984].

2.16.140 Interference with bidding procedure by oƯicer or employee.

No oƯicer or employee of the city shall aid or assist a bidder in securing a contract to furnish labor, materials, supplies, equipment or services, at a higher price or rate than that proposed by any other bidder, or favor one bidder over another, or give or withhold information from any bidder not given or withheld from all other bidders, or willfully mislead any bidder in regard to the character of the materials or supplies called for, or knowingly accept materials, supplies or equipment of a quality inferior to that called for by the contract, or knowingly certify to a greater amount of labor performed or materials, supplies or equipment furnished, than has respectively been performed or received. [Ord. 1405 N.S. § 2, 1984].

2.16.150 OƯicer defined.

The term “oƯicer” as used in PGMC 2.16.130 and 2.16.140 shall include the mayor, councilmembers, city clerk, city manager, city treasurer, city attorney, members of boards, commissions and committees, and assistants, if any, to the clerk, manager, treasurer and attorney. [Ord. 1405 N.S. § 2, 1984].

2.16.155 Exemption from Public Contract Code.1
Except as provided in this code or pursuant to agreement approved by the city council, the city of Pacific Grove, as a charter city, is exempt from the provisions of the California Public Contract Code. [Ord. 02-26 § 1, 2002].

2.16.157 Optional purchasing procedures for special assessment districts.

When authorized by resolution, the city manager may delegate, or thereafter revoke, purchasing authority under this chapter to an agent selected by the advisory board for any district formed by the city and PGCC 10-15-25

operating in accord with California Streets and Highways Code 36500. Expenditure of assessment revenues on behalf of the city shall be in accordance with the BID program and budget approved by the city council, but such expenditures may be made without compliance with the city purchasing regulations required by this chapter. The city manager may authorize assessment revenues remitted to the city for that district to be deposited directly with the agent holding delegated purchasing authority pursuant to this section; provided,provided that the city council has approved the budget and an agreement with the agent regarding program deliverables. The delegated agent shall report to the city manager each receipt or expenditure made under this section. [Ord. 07-020 § 2, 2007].

Article II. Open Market Purchases

2.16.160 Authorized for purchases by the purchasing agentAgent. (a) Purchases of supplies, services, materials, equipment and contractual services, including public works, having an estimated market value under $5035,0002 may be made by the purchasing agentAgent in the open market, as hereinafter described in this article, without observing the formal contract procedures prescribed in Articles III and IV of this chapter. The City Manager may delegate to specified employees the authority to execute contracts up to the amount specified by Resolution. (b) The purchase authority limit set forth in subsection (a) of this section shall be adjusted on July 1st of each fifth fiscal year, starting on July 1, 20250, by council resolution. The adjustment shall cause an increase or decrease to the purchase limit based upon the cumulative change in the Consumer Price Index (CPI) that occurred since the last adjustment, based upon the “CPI, All Urban Consumers, San Francisco-Oakland-San Jose area; base years 1982-1984 = 100,” as published by the U.S. Department of Labor, or any comparable replacement or successor index. For ease of administration, the purchase authority limit set for each following five-year period shall be adjusted by rounding to the nearest $5,000. (c) A written report of all purchases made under authority of this section in the form of a check register shall be provided to council on a monthly quarterly basis. (d) All purchases made under the authority of this section shall be accumulative per subject as per PGMC 2.16.420, Splitting projects. [Ord. 22-017 § 4, 2022; Ord. 21-019 § 2, 2021; Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.170 Quotations – Notice of invitation.

The purchasing agentAgent shall invite quotations from prospective sellers, vendors, suppliers or contractors. [Ord. 1405 N.S. § 2, 1984].

2.16.180 Quotations – Submission in writing.

Written quotations shall be submitted to the purchasing oƯicerAgent who shall keep a record of all open marketopen-market quotations and orders for a period of two years after receipt of such quotations. [Ord. 1405 N.S. § 2, 1984].

2.16.190 Quotations – Number required.

Open market purchases shall be based, wherever reasonably possible, on at least three written quotations. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.200 Quotations – Rejection.

The purchasing agentAgent, in his or her sole discretion, may reject:
(a) Any quotation that fails to meet the quotation requirements in any respect; or (b) All quotations for any reason whatsoever and may invite new quotations. [Ord. 1405 N.S. § 2, 1984].

2.16.210 Award of purchase orders.

Purchase orders shall be awarded by the purchasing agentAgent to the person submitting the lowest responsible quotation except if two or more quotations are received for the same total amount or unit price, quality and service being equal, and further, if in the sole discretion of the purchasing oƯicer the public interest will not permit the delay of inviting new quotations, then the purchasing agentAgent may accept the one he or she chooses or accept the lowest quotation made by negotiation with the persons submitting the tie quotations. [Ord. 1405 N.S. § 2, 1984].

Article III. Purchases in Amounts over the Purchasing AgentAgent’s Authorization

2.16.220 Formal contract procedure.

Except as otherwise provided herein, purchases and contracts for supplies, services and equipment of estimated market value greater than the maximum amount for which the purchasing agentAgent is authorized, as specified in Article II of this chapter, shall be by contract, approved by the council by resolution or motion, with the lowest responsible bidder pursuant to the procedure prescribed in this article except when such procedures may be dispensed with as defined in Article I of this chapter or as otherwise provided by law. Standard contracts may be used when approved by city attorney and council by resolution or motion. Contracts shall be provided to council prior to approval. Standard contracts may be incorporated by reference into an agenda report with specification of the parties, termterms, scope of work, price, and contingencies to extend the term and/or increase the price. (The procedures prescribed in Article IV of this chapter shall be observed in the case of all public works projects, as defined in Article IV of this chapter, involving expenditures greater than the maximum amount for which the purchasing agentAgent is authorized, as specified in Article II of this chapter.) [Ord. 22-017 § 4, 2022; Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.230 Notice inviting bids.

Notice inviting bids shall include a general description of the article(s) to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. [Ord. 1405 N.S. § 2, 1984].

2.16.240 Published notice.

Notice inviting bids shall be published at least 10 days before the date of opening of the bids. Notice shall be published once in an oƯicial newspaper of the city. [Ord. 1405 N.S. § 2, 1984].

2.16.250 Bidders’ list.

The purchasing agentAgent shall also solicit sealed bids from all prospective suppliers known to the purchasing agentAgent as responsible vendors dealing in the product to be purchased. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.260 Bidders’ security.

When deemed necessary bidders’ security may be prescribed in the notice and solicitation for bids.

Bidders shall be entitled to return of bid security; provided,provided that a successful bidder shall forfeit his or her bid security upon refusal or failure to execute the contract within 15 calendar days after notice of award of contract has been mailed, unless the city is responsible for the delay. The council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the diƯerence between the low bid and the second lowest bid; the surplus, if any, shall be returned to the lowest bidder. [Ord. 1405 N.S. § 2, 1984].

2.16.270 Bid opening procedure.

Sealed bids shall be submitted to the purchasing agentAgent and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the notice. A tabulation of all bids received shall be open for public inspection during regular hours for a period of not less than two years after the bid opening. [Ord. 1405 N.S. § 2, 1984].

2.16.280 Rejection of bids.

The council may reject any and all bids presented and may, in its discretion, readvertise for other bids. [Ord. 1405 N.S. § 2, 1984].

2.16.290 Open market purchase.

After rejecting bids the council may determine and declare by a vote of at least five of its members that the supplies, services, materials or equipment may be purchased at a lower price in the open market, and after adoption of a resolution to that eƯect, it may direct the purchasing agentAgent to so purchase. [Ord. 1405 N.S. § 2, 1984].

2.16.300 Tie bids.

If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising for bids, the council shall determine the successful bidder by drawing of lots. [Ord. 1405 N.S. § 2, 1984].

2.16.310 Performance bonds.

The city shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interest of the city. If the city requires a performance bond, the form and amount of the bond shall be described in the notice of solicitation inviting bids. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

Article IV. Public Works Contracts

2.16.320 Written contract.

Every project involving an expenditure greater than the maximum amount for which the purchasing agentAgent is authorized, as specified in Article II of this chapter, for the erection, improvement or repair of public buildings and works, in all sewer and street work, and in furnishing materials or supplies for same shall be let by written contract, approved by the council by resolution, with the lowest responsible bidder in accordance with the procedures prescribed in this article. PGMC 2.16.080 notwithstanding, dispensation of bid procedures for projects described in this section shall be made only as allowed in this article. [Ord. 14-005 § 2, 2014; Ord. 1667 N.S. § 1, 1989; Ord. 1405 N.S. § 2, 1984].

2.16.330 Notice inviting bids.

Notices inviting bids shall be published once in an oƯicial newspaper of the city at least 10 days before the date of opening the bids. In addition to the published notice, the purchasing agentAgent may solicit bids from prospective vendors and contractors by direct mail requests, by notice on oƯicial city bulletin boards, or by any other means advantageous to the city. Notices inviting bids shall include a general description of the contractual services to be purchased and shall state where bid blanks and written specifications may be secured, and shall designate the date, time and place for opening bids. [Ord. 1405 N.S. § 2, 1984].

2.16.340 Bidders’ security.

When deemed necessary, bidders’ security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided,provided that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute the contract within 15 calendar days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The council, on refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsible bidder. The amount of the lowest bidder’s security shall be applied by the city to the contract price diƯerential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. [Ord. 1405 N.S. § 2, 1984].

2.16.350 Bid opening procedure.

Sealed bids submitted to the city shall be identified as bids on the envelope, and shall be opened in public on the date, at the time and place stated in the public notices. [Ord. 1405 N.S. § 2, 1984].

2.16.360 Tabulation of bids.

All bids received shall be tabulated and after consultation with the appropriate department head shall be forwarded to the council with a recommendation as to the best and lowest bid. A tabulation of all bids received shall be available for public inspection for not less than two years after the bid opening. [Ord. 1405 N.S. § 2, 1984].

2.16.370 Tie bids.

PGCC 10-15-25

If two or more bids received are for the same amount, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the council shall determine the successful bidder by drawing ofdrawing lots. [Ord. 1405 N.S. § 2, 1984].

2.16.380 Acceptance or rejection of bids.

The council, in its discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, and may reject any or all bids. [Ord. 1405 N.S. § 2, 1984].

2.16.390 Work by day labor.

If all bids are rejected or no bids are received the council may readvertise or may, by an aƯirmative vote of at least five of its members, declare and determine that in its opinion the work in question may be more economically or satisfactorily performed by day labor, by either city employees or others, and after adoption of a resolution to that eƯect, may proceed to have the same done in the manner stated. [Ord. 1405 N.S. § 2, 1984].

2.16.400 Emergencies – Contracts let without bids.

Public works contracts governed by this article may be let without advertising for bids if such work shall be deemed by the council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by resolution passed by an aƯirmative vote of at least five of its members and containing a declaration of the facts constituting such urgency. [Ord. 1405 N.S. § 2, 1984].

2.16.410 Performance bonds.

The council, before entering into a contract governed by this article, may require a performance bond or other adequate security guaranteeing performance, in an amount as it shall find reasonably necessary to protect the best interests of the city. Form of acceptable security shall be described in the notice inviting bids. [Ord. 1405 N.S. § 2, 1984].

2.16.420 Splitting projects.

No undertaking involving amounts in excess ofmore than the maximum amount for which the purchasing agentAgent is authorized, as specified in Article II of this chapter, shall be split into parts for the purpose of avoiding the provisions and restrictions of this article. [Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984]. 1 Editor’s Note: As adopted by Ord. 02-26, this section was designated as PGMC 2.16.160. It was editorially amended to PGMC 2.16.155 due to the earlier codification of PGMC 2.16.160.
2 By operation of PGMC 2.16.160(b) the purchase authority limit referenced in this subsection (a) was adjusted to $40,000 for the period beginning July 1, 2020, and ending June 30, 2025.

Formatted: Font: 8 pt
Formatted: Font: 8 pt
PGCC 10-15-25

Chapter 2.16
PURCHASING SYSTEM AND PROCEDURES
Sections:

2.16.010 Purchasing procedures by city manager.

The city manager is the city’s purchasing agent, who can also designate these duties to the Administrative Services Department and other specified employees. He or she or their designees shall establish the procedures and forms to carry out such duty in accordance with the charter and this chapter. [Ord. 1405 N.S. § 2, 1984].

2.16.020 Applicability of chapter.

All purchases of and contracts for supplies, services, materials, equipment and public works by the city, or by an officer or employee thereof, shall be made only in accordance with and pursuant to the provisions of this chapter. [Ord. 1405 N.S. § 2, 1984].

2.16.030 Encumbrance of funds.

A purchase order for supplies, services, materials or equipment shall not be issued unless there exists an unencumbered appropriation in the fund against which the purchase is to be charged. [Ord. 1405 N.S. § 2, 1984].

2.16.040 Declaration of policy.

A centralized purchasing system for all departments is adopted in order:
(a) To secure supplies, services, materials and equipment at the lowest possible cost commensurate with quality needed;
(b) To exercise positive financial control over purchases; (c) To define authority for the purchasing function;
(d) To assure the quality of purchases. [Ord. 1405 N.S. § 2, 1984].

2.16.050 Estimates of requirements.

Departments shall file detailed estimates of their requirements for supplies, services, materials and equipment in such manner, at such times, and for such future periods as the purchasing agent or their designees shall prescribe.  For the remainder of this document, the purchasing agent or their designees shall be referred to as the “Agent”. [Ord. 1405 N.S. § 2, 1984].

2.16.060 Requisitions.

All departments shall submit to the Agent requests for supplies, services, materials and equipment in such manner, at such times, and on such requisition forms as the Agent shall prescribe. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.070 Purchase orders.

All departments shall purchase supplies, services, materials and equipment only in such manner, at such times, and by such purchase order forms as the Agent shall prescribe. Purchase orders shall be required for all expenditures. [Ord. 1405 N.S. § 2, 1984].

2.16.080 Bidding procedures – Dispensation when.

Purchase of supplies, services, materials and equipment shall be by quotation or bid procedures as set forth in this chapter. Such procedures may be dispensed with by the purchasing agent, in his or her sole discretion and judgment as to the best interest of the city, as follows:
(a) When an emergency requires that an order be placed immediately with the nearest available source of supply;
(b) When the amount involved is less than $2,000;
(c) When the supply, service, material or equipment can be obtained from only one vendor or supplier; (d) When a service, such as that available from an attorney, accountant, architect or specialized consultant, involves a specialized knowledge or personal skill; (e) When supplies or equipment, such as communication systems, traffic signals, and parking meters, have been uniformly adopted in the city or otherwise standardized; (f) When the supplies, equipment or materials are such that suitable technical or performance specifications are not available, and the city is unable to develop descriptive specifications; (g) When the article can be purchased more economically through the central purchasing authority of another governmental agency;
(h) When specific used supplies, materials or equipment will best serve the city’s needs; or (i) When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property.

Provided, that even when procedures are dispensed with hereunder, council approval, by resolution, shall be required for purchases more than the maximum amount for which the Agent is authorized, as specified in Article II of this chapter. [Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.090 Competitive negotiation.

As an alternative to the procedures set out in Articles II and III of this chapter, in the case of obtaining consulting and other specialized personal services, those services may be obtained by competitive negotiations. When this process is utilized, the best offer judged against proposal evaluation shall be accepted. Any offer exceeding the maximum amount for which the Agent is authorized, as specified in Article II of this chapter, shall require council approval by resolution prior to acceptance. [Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.100 Lowest responsible bidder – Determining.

For the purpose of this chapter, in addition to price, the “lowest responsible bidder” will be determined after the following factors have been considered:
(a) The ability, capacity and skill of the bidder to perform the contract or provide the service required; (b) Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference;
(c) The character, integrity, reputation, judgment, experience and efficiency of the bidder; (d) The bidder’s record or performance of previous contracts or services; (e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;
(f) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
(g) The quality, availability and adaptability of the supplies, equipment, materials or services to the particular use required;
(h) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;
(i) The number and scope of conditions attached to the bid.

In the event the lowest bidder is rejected, the Agent or council shall provide the lowest bidder with written explanation and/or findings regarding the rejection.
(j) In the case of a bid received from a bidder, a portion of whose sales tax is paid to the city, the Agent shall calculate the actual cost to the city of accepting such bid. Said actual cost shall be the bid amount less sales tax revenue which would be received by the city were the city to accept such bid. Said actual cost shall be the price utilized by the city, in addition to the other factors set out in this section, in determining the lowest responsible bidder.  This provision does not apply to any purchases involving the use of State or Federal grant funds, including pass through funds (k) Local Business Preference (1) Local bidders must bid with the same specification as required of nonlocal bidders. (2) Where competitive bidding is utilized for the purchase of supplies, equipment, materials or general services as specifically set forth in this section, the city shall grant preference to a local bidder who submits a quote or bid within five percent of the lowest responsible bidder and who is otherwise responsive and responsible to the invitation for bids.
(3) Where the lowest responsible bidder is not a local business, the purchasing officer shall provide the lowest responsible local business bidder, should one exist and its bid is within five percent of the lowest responsible bidder, with notice and an opportunity to reduce its bid to match that of the lowest responsible bidder.

PGCC 10-15-25

(4) Upon notice being provided pursuant to this section, the local business shall have two full business days to provide written notice to the purchasing officer of its desire to match the lowest bid. (A) In the event the local business elects to match, the contract will be awarded to the local business. (B) In the event the local business provided the opportunity to match does not opt to match the lowest responsible bid, the award of the contract shall be given to the lowest responsible bidder. (5) In instances where a local business and a nonlocal business submit equivalent lowest responsible bids, the purchasing officer shall give preference to the local business. (6) All notices required under this section may be made orally, in writing or electronically. (7) The application of a local preference as set forth in this section shall only apply if factors such as quality, previous performance, and availability are equal among bidders. (8) Local preference shall not apply to any procurement of public work, purchases procured under federal or state requirements, cooperative purchases with other agencies, or where prohibited by other specific directive.
(9) No Exemption From Local Sales Tax. The application of a local preference as set forth in this section shall not exempt any eligible local business to which a contract is executed or awarded from having to pay all applicable federal, state or local sales tax.
(10) Local Business Defined. For purposes of this section, a “local business” means a business enterprise including, but not limited to, a sole proprietor, partnership, or corporation which has the following:
(A) A valid business license issued from the city; and
(B) Has a place of business with a physical address located within the jurisdictional limits of the city at least six months prior to publication of the call for bids and has at least one full-time employee located at the city business address. [Ord. 21-030 § 2, 2021; Ord. 1828 N.S. § 1, 1992; Ord. 1405 N.S. § 2, 1984].

2.16.110 Surplus supplies and equipment.

All using departments shall submit to the Agent, at such time and in such form as he or she shall prescribe, reports showing all supplies and equipment which are no longer used, or which have become obsolete or worn out. The Agent shall have authority to sell all supplies and equipment which cannot be used by any department, or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment. The Agent shall utilize all appropriate means to realize maximum return possible on such sales, exchanges and trades. [Ord. 1405 N.S. § 2, 1984].

2.16.120 Inspection – Testing.

The Agent shall inspect supplies and equipment delivered and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The Agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.130 Illegal contracts – Interest by city employee, officer. (a) No officer or employee of the city shall be or become directly interested in any contract work, or business, or in the sale of any article, the expense, price or consideration of which is payable from the city treasury, nor shall such officer or employee receive any gratuity or advantage from any contract or person furnishing labor or material for same.
(b) Any contract with the city in which any officer or employee is or becomes interested may be declared void by the council.
(c) The following shall be exempt from the provisions of this section:
(1) Members of city volunteer and reserve organizations who are not also full or part-time employees of the city;
(2) Members of city boards, commissions and committees. (d) The provisions of this section shall not be construed to excuse compliance with state laws regulating conflicts of interest. [Ord. 1910 N.S. § 1, 1993; Ord. 1405 N.S. § 2, 1984].

2.16.140 Interference with bidding procedure by officer or employee.

No officer or employee of the city shall aid or assist a bidder in securing a contract to furnish labor, materials, supplies, equipment or services, at a higher price or rate than that proposed by any other bidder, or favor one bidder over another, or give or withhold information from any bidder not given or withheld from all other bidders, or willfully mislead any bidder in regard to the character of the materials or supplies called for, or knowingly accept materials, supplies or equipment of a quality inferior to that called for by the contract, or knowingly certify to a greater amount of labor performed or materials, supplies or equipment furnished, than has respectively been performed or received. [Ord. 1405 N.S. § 2, 1984].

2.16.150 Officer defined.

The term “officer” as used in PGMC 2.16.130 and 2.16.140 shall include the mayor, councilmembers, city clerk, city manager, city treasurer, city attorney, members of boards, commissions and committees, and assistants, if any, to the clerk, manager, treasurer and attorney. [Ord. 1405 N.S. § 2, 1984].

2.16.155 Exemption from Public Contract Code.1
Except as provided in this code or pursuant to agreement approved by the city council, the city of Pacific Grove, as a charter city, is exempt from the provisions of the California Public Contract Code. [Ord. 02-26 § 1, 2002].

2.16.157 Optional purchasing procedures for special assessment districts.

When authorized by resolution, the city manager may delegate, or thereafter revoke, purchasing authority under this chapter to an agent selected by the advisory board for any district formed by the city and operating in accord with California Streets and Highways Code 36500. Expenditure of assessment revenues on behalf of the city shall be in accordance with the BID program and budget approved by the city council, but such expenditures may be made without compliance with the city purchasing regulations required by this chapter. The city manager may authorize assessment revenues remitted to PGCC 10-15-25

the city for that district to be deposited directly with the agent holding delegated purchasing authority pursuant to this section; provided that the city council has approved the budget and an agreement with the agent regarding program deliverables. The delegated agent shall report to the city manager each receipt or expenditure made under this section. [Ord. 07-020 § 2, 2007].

Article II. Open Market Purchases

2.16.160 Authorized for purchases by the Agent.
(a) Purchases of supplies, services, materials, equipment and contractual services, including public works, having an estimated market value under $50,000 may be made by the Agent in the open market, as hereinafter described in this article, without observing the formal contract procedures prescribed in Articles III and IV of this chapter.  The City Manager may delegate to specified employees the authority to execute contracts up to the amount specified by Resolution. (b) The purchase authority limit set forth in subsection (a) of this section shall be adjusted on July 1st of each fifth fiscal year, starting on July 1, 2025, by council resolution. The adjustment shall cause an increase or decrease to the purchase limit based upon the cumulative change in the Consumer Price Index (CPI) that occurred since the last adjustment, based upon the “CPI, All Urban Consumers, San Francisco-Oakland-San Jose area; base years 1982-1984 = 100,” as published by the U.S. Department of Labor, or any comparable replacement or successor index. For ease of administration, the purchase authority limit set for each following five-year period shall be adjusted by rounding to the nearest $5,000. (c) A written report of all purchases in the form of a check register shall be provided to council on a monthly basis.
(d) All purchases made under the authority of this section shall be accumulative per subject as per PGMC 2.16.420, Splitting projects. [Ord. 22-017 § 4, 2022; Ord. 21-019 § 2, 2021; Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.170 Quotations – Notice of invitation.

The Agent shall invite quotations from prospective sellers, vendors, suppliers or contractors. [Ord. 1405 N.S. § 2, 1984].

2.16.180 Quotations – Submission in writing.

Written quotations shall be submitted to the Agent who shall keep a record of all open-market quotations and orders for a period of two years after receipt of such quotations. [Ord. 1405 N.S. § 2, 1984].

2.16.190 Quotations – Number required.

Open market purchases shall be based, wherever reasonably possible, on at least three written quotations. [Ord. 1405 N.S. § 2, 1984].

2.16.200 Quotations – Rejection.

The Agent, in his or her sole discretion, may reject:
(a) Any quotation that fails to meet the quotation requirements in any respect; or (b) All quotations for any reason whatsoever and may invite new quotations. [Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.210 Award of purchase orders.

Purchase orders shall be awarded by the Agent to the person submitting the lowest responsible quotation except if two or more quotations are received for the same total amount or unit price, quality and service being equal, and further, if in the sole discretion of the purchasing officer the public interest will not permit the delay of inviting new quotations, then the Agent may accept the one he or she chooses or accept the lowest quotation made by negotiation with the persons submitting the tie quotations. [Ord. 1405 N.S. § 2, 1984].

Article III. Purchases in Amounts over the Agent’s Authorization

2.16.220 Formal contract procedure.

Except as otherwise provided herein, purchases and contracts for supplies, services and equipment of estimated market value greater than the maximum amount for which the Agent is authorized, as specified in Article II of this chapter, shall be by contract, approved by the council by resolution or motion, with the lowest responsible bidder pursuant to the procedure prescribed in this article except when such procedures may be dispensed with as defined in Article I of this chapter or as otherwise provided by law.

Standard contracts may be used when approved by city attorney and council by resolution or motion.

Contracts shall be provided to council prior to approval. Standard contracts may be incorporated by reference into an agenda report with specification of the parties, terms, scope of work, price, and contingencies to extend the term and/or increase the price. (The procedures prescribed in Article IV of this chapter shall be observed in the case of all public works projects, as defined in Article IV of this chapter, involving expenditures greater than the maximum amount for which the Agent is authorized, as specified in Article II of this chapter.) [Ord. 22-017 § 4, 2022; Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.230 Notice inviting bids.

Notice inviting bids shall include a general description of the article(s) to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. [Ord. 1405 N.S. § 2, 1984].

2.16.240 Published notice.

Notice inviting bids shall be published at least 10 days before the date of opening of the bids. Notice shall be published once in an official newspaper of the city. [Ord. 1405 N.S. § 2, 1984].

2.16.250 Bidders’ list.

The Agent shall also solicit sealed bids from all prospective suppliers known to the Agent as responsible vendors dealing in the product to be purchased. [Ord. 1405 N.S. § 2, 1984].

2.16.260 Bidders’ security.

When deemed necessary bidders’ security may be prescribed in the notice and solicitation for bids.

Bidders shall be entitled to return of bid security; provided that a successful bidder shall forfeit his or her bid security upon refusal or failure to execute the contract within 15 calendar days after notice of award PGCC 10-15-25

of contract has been mailed, unless the city is responsible for the delay. The council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid; the surplus, if any, shall be returned to the lowest bidder. [Ord. 1405 N.S. § 2, 1984].

2.16.270 Bid opening procedure.

Sealed bids shall be submitted to the Agent and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the notice. A tabulation of all bids received shall be open for public inspection during regular hours for a period of not less than two years after the bid opening. [Ord. 1405 N.S. § 2, 1984].

2.16.280 Rejection of bids.

The council may reject any and all bids presented and may, in its discretion, readvertise for other bids. [Ord. 1405 N.S. § 2, 1984].

2.16.290 Open market purchase.

After rejecting bids, the council may determine and declare by a vote of at least five of its members that the supplies, services, materials or equipment may be purchased at a lower price in the open market, and after adoption of a resolution to that effect, it may direct the Agent to so purchase. [Ord. 1405 N.S. § 2, 1984].

2.16.300 Tie bids.

If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising for bids, the council shall determine the successful bidder by drawing of lots. [Ord. 1405 N.S. § 2, 1984].

2.16.310 Performance bonds.

The city shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interest of the city. If the city requires a performance bond, the form and amount of the bond shall be described in the notice of solicitation inviting bids. [Ord. 1405 N.S. § 2, 1984].

Article IV. Public Works Contracts

2.16.320 Written contract.

Every project involving an expenditure greater than the maximum amount for which the Agent is authorized, as specified in Article II of this chapter, for the erection, improvement or repair of public buildings and works, in all sewer and street work, and in furnishing materials or supplies for same shall be let by written contract, approved by the council by resolution, with the lowest responsible bidder in accordance with the procedures prescribed in this article. PGMC 2.16.080 notwithstanding, dispensation of bid procedures for projects described in this section shall be made only as allowed in this article. [Ord. 14-005 § 2, 2014; Ord. 1667 N.S. § 1, 1989; Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

2.16.330 Notice inviting bids.

Notices inviting bids shall be published once in an official newspaper of the city at least 10 days before the date of opening the bids. In addition to the published notice, the Agent may solicit bids from prospective vendors and contractors by direct mail requests, by notice on official city bulletin boards, or by any other means advantageous to the city. Notices inviting bids shall include a general description of the contractual services to be purchased and shall state where bid blanks and written specifications may be secured, and shall designate the date, time and place for opening bids. [Ord. 1405 N.S. § 2, 1984].

2.16.340 Bidders’ security.

When deemed necessary, bidders’ security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute the contract within 15 calendar days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The council, on refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsible bidder. The amount of the lowest bidder’s security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. [Ord. 1405 N.S. § 2, 1984].

2.16.350 Bid opening procedure.

Sealed bids submitted to the city shall be identified as bids on the envelope, and shall be opened in public on the date, at the time and place stated in the public notices. [Ord. 1405 N.S. § 2, 1984].

2.16.360 Tabulation of bids.

All bids received shall be tabulated and after consultation with the appropriate department head shall be forwarded to the council with a recommendation as to the best and lowest bid. A tabulation of all bids received shall be available for public inspection for not less than two years after the bid opening. [Ord. 1405 N.S. § 2, 1984].

2.16.370 Tie bids.

If two or more bids received are for the same amount, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the council shall determine the successful bidder by drawing lots. [Ord. 1405 N.S. § 2, 1984].

2.16.380 Acceptance or rejection of bids.

The council, in its discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, and may reject any or all bids. [Ord. 1405 N.S. § 2, 1984].

2.16.390 Work by day labor.

If all bids are rejected or no bids are received the council may readvertise or may, by an affirmative vote of at least five of its members, declare and determine that in its opinion the work in question may be more economically or satisfactorily performed by day labor, by either city employees or others, and after PGCC 10-15-25

adoption of a resolution to that effect, may proceed to have the same done in the manner stated. [Ord. 1405 N.S. § 2, 1984].

2.16.400 Emergencies – Contracts let without bids.

Public works contracts governed by this article may be let without advertising for bids if such work shall be deemed by the council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by resolution passed by an affirmative vote of at least five of its members and containing a declaration of the facts constituting such urgency. [Ord. 1405 N.S. § 2, 1984].

2.16.410 Performance bonds.

The council, before entering into a contract governed by this article, may require a performance bond or other adequate security guaranteeing performance, in an amount as it shall find reasonably necessary to protect the best interests of the city. Form of acceptable security shall be described in the notice inviting bids. [Ord. 1405 N.S. § 2, 1984].

2.16.420 Splitting projects.

No undertaking involving amounts more than the maximum amount for which the Agent is authorized, as specified in Article II of this chapter, shall be split into parts for the purpose of avoiding the provisions and restrictions of this article. [Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

PGCC 10-15-25

RESOLUTION NO. 25-

RESOLUTION OF THE CITY OF PACIFIC GROVE ESTABLISHING

DOLLAR LIMITS FOR APPROVAL OF CONTRACTS FOR SPECIFIED

EMPLOYEE CLASSIFICATIONS

FINDINGS

1. The City is revising Chapter 2.16 of the City Ordinance regarding its Purchasing System to allow for the designation of these duties from the City Manager to specified employees

2. It is necessary to establish dollar approval limits for contracts for these specified employees and for use of petty cash

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

1. That the use of petty cash as reimbursement to employees for minor expenses that are either incurred or purchased for City business is increased from $25 to $50 per transaction.

2. That the following classifications are authorized to execute contracts up to the amounts listed below. Note that the limits are a cumulative amount for each fiscal year of a contract:

Position Title Contract Approval Limit
City Manager $50,000
Deputy City Manager, Administrative
Services Director, Public Works Director
$30,000
Other Department Directors $15,000
Senior Program Manager/Deputy Directors $8,000
Other Designated Employees $2,000

3. This Resolution shall take effect upon the approval of the second reading of the proposed changes to Chapter 2.16 of the City Ordinance on November 5, 2025.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 15th day of October 2025, by the following vote:

AYES:

NOES:

ABSENT:

PGCC 10-15-25

Agenda No. 13 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Jon Biggs, Community Development Director
MEETING DATE: October 15, 2025
SUBJECT: Discussion on the Allocation of Available Potable Water.

CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Receive report, discuss, and provide direction to staff.

DISCUSSION
Introduction
One of the City Council’s current goals is an evaluation of the City’s current and future water allocations and facilitation of a City Council discussion on prioritizing water credits. This is timely given that it is expected that the Pure Water Monterey Ground Water Replenishment Project (PWM/GWR) project will be issued operational permits soon, and its allocation of water ready for use in the city.

Potable Water Available
The PWM/GWR project is an advanced water recycling project jointly developed by the Monterey Peninsula Water Management District (MPWMD) and Monterey One Water (M1W). The approved PWM/GWR project has an operational capacity of 5.0 million gallons per day (5.0 mgd). The MPWMD is authorized to allocate some of this water to Monterey Peninsula Jurisdictions within its service area.

Pacific Grove has been allocated 32-acre feet of water (AFY) from the PWM/GWR project by the district. Ordinance No. 197 of the MPWMD, which authorized the district to allocate this water, notes that the district anticipates that this additional water supply will be on-line by the fourth quarter of 2025.

While the MPWMD is responsible for allocating water to municipalities, it is up to the city to determine how that water is used. Chapter 11.68 of the Pacific Grove Municipal Code, Water Distribution Regulations, provides that the City Council may distribute potable water by resolution.

In addition to the PWM/GWR allocation, the City of Pacific Grove has water available for sale from the Pacific Grove Local Water Project (PGLWP), also referred to as entitlement water. This project, which began operation in January 2018, produces recycled water that replaces potable water previously used for landscaping at the Pacific Grove Golf Links and the El Carmelo Cemetery. This project generated

47.88-acre feet of water. The City Council has adopted two resolutions authorizing the City Manager to sell this water. The adopted FY 25-26 Fee schedule reflects a price of $262,250 per AFY or $26,225 per

0.10 AFY. In authorizing the sale of this entitlement water, the City Council also directed the City Manager to apply a 30% discount on the price of the water. With this discount, the cost for this water is $183,575 per AFY or $18,357.5 for 0.10 AFY.

PGCC 10-15-25

The City Council, in addition to authorizing the sale of the PGLWP water, also directed the City Manager to create a reserve of 11.5 AFY for affordable housing. With the Deduction of the affordable housing allocation, the amount of water available for sale at the start of this effort was 36.38 AFY (47.88-11.5). The sale of this entitlement water appears to have started in 2019, and sales have been on-going since then. To date, there is approximately 19.2551 AFY of the entitlement water (this is minus the affordable housing allocation) for sale (Note – This number may change as staff is reconciling the water accounting).

Finally, there are some small amounts of water accounted for in the MPWMD monthly report. The MPWMD report of August 2025 notes there is 0.019 AFY of water from the Paralta & Pre-Paralta Water plus an additional 0.002 AFY in the public credits category. Given the small amount of these allocations, staff have not aggregated them into the tally of total water available to allocate.

The tally of water available to allocate is 51.2551 AFY (PWM/GWR - 32 AFY + PGLWP – 19.2551 AFY). This amount does not include the 11.5 AFY allocated from the PGLWP for affordable housing.

Acre-Foot, Water Credit, and Fixture Count:

An acre-foot is a unit of volume commonly used to measure large-scale water resources in agriculture as well as municipal water supplies. One acre-foot is the amount of water it takes to cover one acre of land to a depth of one foot. If 1 acre is 43,560 square feet, then 1 acre-foot is 43,560 cubic feet of water (or 325,851 gallons).

Fixture count refers to items such as sinks, toilets, bathtubs, showers, and other similar fixtures. The MPWMD assigns a factor to each fixture in a residential dwelling based on its water usage. For commercial properties, water usage is typically calculated based on other factors such as square footage, number of restaurant seats, etc.

A water credit refers to the total amount of water allocated to a parcel or required to support a plan. Staff will use the fixture unit counts for residential projects and the other appropriate factors for commercial or municipal projects when evaluating the water demand for a project.

Draft Housing Element
As the City Council is aware, the Draft Housing Element Update is nearing completion and will be scheduled for consideration by the Planning Commission at its meeting in November and consideration by the City Council at its meeting in December. This update of the City’s Housing Element covers the planning period of June 30, 2023, through December 15, 2031 (called the 6th Cycle Housing Element update). Pacific Grove’s share of the regional housing need was allocated by the Association of Monterey Bay Area Governments (AMBAG) and based on recent growth trends, income distribution, and capacity for future growth. Pacific Grove’s share of regional future housing needs is 1,125 total units (Commonly referred to as the RHNA). The RHNA units are distributed among four income categories, very low, low, moderate, and above moderate.

The following two tables from the Draft Housing Element list the number of RHNA housing units distributed across the four income categories. The first table (Table 2-1) shows the total number of housing units identified in the RHNA and provides for a buffer (The State of California Office of Housing and Community Development, HCD, has found the Pacific Grove Draft Housing Element statutorily compliant with the inclusion of this buffer, which will provide the City with the capacity to address potential net loss issues over the planning period).

The second table (Table 2-2) accounts for approved but not constructed housing units and the estimated PGCC 10-15-25

number of ADU’s, by income category, that could be constructed over the planning period. In accounting for this, it also keeps a tally of the remaining RHNA by each income category.

Table 2-1 Pacific Grove Needs for 2023-2031
Income Category Number of Units Units Plus 20%
Buffer
Percent of Total
Units
Very Low (30 to 50% of
AMI)
362 434 34%
Low (51 to 80% of AMI) 237 284 22%
Moderate (81% to 120% of
AMI)
142 170 13%
Above Moderate (> 120% of
AMI)
384 384 30%
Total 1,125 1,272
Table 2-2 Progress Towards Meeting RHNA
Income Category
RHNA
Allocation Plus
20% Buffer
Pending and
Approved Estimated
ADUs
Remaining
RHNA
Very Low (30 to 50% of
AMI)
362 0 67 295
Low (51 to 80% of AMI) 237 1 67 169
Moderate (81% to 120% of
AMI)
142 0 68 74
Above Moderate (> 120%
of AMI)
384 9 22 353
Total 1,125 10 224 891
A Technical Memorandum from the MPWMD, dated June 1, 2023, provides a summary of the water supply requirements for the RHNA assigned to each jurisdiction within its service area. The projected water demand to meet the RHNA is based on water use factors based on the income levels for each of the four categories. The projected water demand for Pacific Grove’s RHNA is 130 AFY.

Discussion
As noted earlier, the purpose of this agenda item is to facilitate the City Council’s discussion on prioritizing water credits. The water available to the city can be allocated among several uses, including residential (single-family and multi-family), affordable housing (including some ADU’s – Draft Housing Element includes estimated ADU counts in the very-low-, low-, and moderate-income categories), commercial, and municipal. The City Council may also wish to allocate some water to an unallocated reserve so that it can address unanticipated water demands in the future.

To help the City Council with its discussion, staff is providing the following table, which includes staff’s recommendations for the amount of each allocation that can be attributed to one of the four use categories and includes a line for an unallocated reserve:

Staff Recommendation City Council Direction
PWM/GWR - 32 AFY
Residential 0
Affordable Housing 23 AFY
PGCC 10-15-25

Commercial 6 AFY
Municipal 3 AFY
Unallocated Reserve 0
Total - 32 AFY
PGLWP – 19.2551
Residential 15 AFY
Affordable Housing 0
Commercial 0
Municipal 0
Unallocated Reserve 4.2551 AFY
Total - 19.2551 AFY
These recommendations are based on staff’s anticipated demand for water by category with an eye towards supporting economic opportunities that can enhance the City’s revenue stream.

Other Considerations
Considering the PWM/GWR project water will be low cost, or at least much lower than the current city price, the City Council may consider further discounting the price of the PGLWP water as an incentive to help support economic activity in some of the City’s business districts such as Downtown and Forest Hill. This coupled with the allocation of PWM/GWR water could be incentives to encourage businesses and improvements to buildings/properties that could accommodate a wider variety of uses at a site.

Staff suggests an increase in the discount for entitlement water from 30% to 60%.

Conclusion
In conclusion, staff is requesting that the City Council provide direction on:

1. The allocation/assignment of water to various use categories.

Whether there should be an increase in the discount on entitlement water and if so, should that discount increase from 30% to 60%?

2. Based on the feedback provided by the City Council, staff will return at a future meeting with a resolution that reflects the assignment of available water among the various uses and should the City Council direct, include any further discounts on the entitlement water sales price. With these in place, staff will be able to appropriately guide and plan for the allocation of water as projects, in their varied forms, come forward for city consideration.

OPTIONS

1. Receive report, discuss, and provide direction to staff.

2. Decline consideration of this agenda item.

Refer to staff for further information and clarifications and continue to a future City Council meeting.

3. FINANCIAL IMPACT:

It is not anticipated that a discussion on this agenda item and providing direction to staff will result in a significant financial impact.

PGCC 10-15-25

FOCUSED PRIORITY AREA: Community Development
PGCC 10-15-25