CITY COUNCIL
SPECIAL MEETING AGENDA
Wednesday, November 19, 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. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8:
Property: City Parking Lot #4 located at168 Forest Avenue, Pacific Grove, California Agency negotiator: City Manager Matt Mogensen
Negotiating parties: Lisa Weiman
PGCC 11-19-2025
1 Negotiating parties: Lisa Weiman
Under negotiation: Price and Terms of Payment for Lease of portion of the Property for outdoor dining area.
ADJOURNMENT
PGCC 11-19-2025
2 CITY COUNCIL
REGULAR MEETING AGENDA
Wednesday, November 19, 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 11-19-2025
3 PLEDGE OF ALLEGIANCE: Councilmember McDonnell
1. APPROVAL OF AGENDA
2. PRESENTATIONS
A. Certificate of Recognition in Honor of Richard Stillwell PG 9 Reference: Nick Smith, Mayor
Recommended Action: Present certificate.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Report on Closed Session by City Attorney
B. Other
4. GENERAL PUBLIC COMMENT
General Public Comment must deal with matters subject to the jurisdiction of the City and the Council that are not on the Regular Agenda. This is the appropriate place to comment as to items on the Consent Agenda, only if you do not wish to have the item pulled for individual consideration by the Council. Comments from the public will be limited to three minutes and will not receive Council action. Comments regarding items on the Regular Agenda shall be heard prior to Council’s consideration of such items at the time such items are called.
Whenever possible, written correspondence should be submitted to the Council in advance of the meeting, to provide adequate time for its consideration.
A. Written General Public Comment
CONSENT AGENDA
The Consent Agenda deals with routine and non-controversial matters, and may include action on resolutions, ordinances, or other public hearings for which testimony is not anticipated. The vote on the Consent Agenda shall apply to each item that has not been removed. Any member of Council, staff, or the public may remove an item from the Consent Agenda for individual consideration. When items are pulled for discussion, they will be automatically placed at the end of their respective section within the Regular Agenda. One motion shall be made to adopt all non-removed items on the Consent Agenda.
5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business
6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business PGCC 11-19-2025
4 7. ORDINANCES
Items pulled from this section will be placed under 11. Public Hearings
8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Check Register and Interim Financial Report - October 2025 PG 11 Reference: David Stiles, Senior Accountant
Recommended Action:
1. Receive the Check Register and Interim Financial Report.
2. Alternatively, discuss and take other action related to this item.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. FY26 Q1 Quarterly Treasurer's Report PG 38
Reference: David Stiles, Senior Accountant
Recommended Action:
1. Receive the report.
2. Alternatively, discuss and take other action related to this item.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Community Human Services Highlights for October 16, 2025 PG 57 Reference: Lori McDonnell, Councilmember
Recommended Action: Receive the highlights.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
D. Monterey Salinas Transit Meeting Minutes for October 13, 2025 PG 60 Reference: Joe Amelio, Mayor Pro Tem
Recommended Action: Receive minutes.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Extension of Agreement with The Pun Group LLP for Independent Financial Audit Services Reference: Fred Marsh, Administrative Services Director PG 67 Recommended Action: Approve an Extension of Agreement with The Pun Group LLP for PGCC 11-19-2025
5 Recommended Action: Approve an Extension of Agreement with The Pun Group LLP for Independent Financial Audit Services for two additional Fiscal Years through March 31, 2028 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Cedar, Sunset & Congress Intersection Improvements Project Contract Amendments Reference: Daniel Gho, Public Works Director/Deputy City Manager PG 161 Recommended Action: 1. Authorize the execution of Amendment #1 with the Transportation Agency for Monterey County (TAMC) to increase the funding agreement by$137,961 for the Cedar, Sunset, and Congress Intersection Project.
2. Authorize the execution of Amendment #2 with GHD for an amount of $340,387 for the Cedar, Sunset and Congress Intersection Project, to continue with the Design Engineering Evaluation Report, for a roundabout at the intersection.
3. Alternatively, discuss and take other action related to this item CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 13. New Business A. Architectural Review Board Meeting Minutes: October 14, 2025. PG 197 Reference: Anna Bornstein, Associate Planner
Recommended Action: Receive the minutes.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Library Board Regular Meeting Minutes: September 2, 2025 PG 201 Reference: Rachel Gaither, Library Director
Recommended Action: Receive the minutes.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Recreation Board Minutes: February 27, March 27, and April 34, 2025 PG 202 Reference: Katie Clark, Recreation Manager
Recommended Action: Receive the minutes.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
REGULAR AGENDA
11. PUBLIC HEARINGS
PGCC 11-19-2025
6 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 Salary Schedule (Minimum Wage) PG 212 Reference: Staphany Arriola, Management Analyst, Leticia Livian, Human Resources Director
Recommended Action:
1. Request the City Attorney read the title of the ordinance;
2. Motion to waive further reading of the ordinance;
Introduce and hold first reading of an ordinance to amend the salary classification schedule modifying salary ranges for Cashier, Intern,Lighthouse Docent Coordinator and Recreation Assistant I.
3. Direct a summary of a proposed ordinance be published as approved by the City Attorney.
4. CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
12. UNFINISHED AND ONGOING BUSINESS
13. NEW BUSINESS
A. Review of Five-Year Operating and Capital Forecast, Infrastructure Needs and Public Engagement Agreement
Reference: Fred Marsh, Administrative Services Director PG 216 Recommended Action:
Receive a presentation regarding a review of the five-year fiscal forecast, infrastructure funding needs and the onboarding of a public engagement and polling consultant.
1. Approve a Professional Services Agreement with Props & Measures for ballot measure feasibility, preparation and outreach services in a not-to-exceed amount of $141,530.
2. 3. Direct staff to take an alternative action.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Approval Of the California Employers’ Pension Prefunding Trust (CEPPT) Participation Agreement with CalPERS
Reference: Fred Marsh, Administrative Services Director PG 255 Recommended Action: 1) Approve and adopt a resolution, authorizing establishment of the PGCC 11-19-2025
7 Recommended Action: 1) Approve and adopt a resolution, authorizing establishment of the California Employer Pension Pre-funding Trust (CEPPT) Section 115 Trust. 2) Adopt and Execute the CalPERS CEPPT Participation Agreement 3) Adopt and Execute the CalPERS CEPPT Delegation of Authority document listing the City Manager, and Administrative Services Director as authorized to request disbursements from the Trust.
4) Adopt the Certification of Pre-Funding Policy designating the CEPPT Trust Fund be established with the Asset Allocation Strategy of Strategy 1.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
14. FULL PRESENTATIONS
15. CLOSED SESSION
ADJOURNMENT
NOTICE OF ADA COMPLIANCE: Pursuant to Title II of the Americans with Disabilities Act (Codified At 42 United States Code Section 12101 and 28 Code of Federal Regulations Part 35), and Section 504 of the Rehabilitation Act of 1973, the City of Pacific Grove does not discriminate on the basis of race, color, religion, national origin, ancestry, sex, disability, age or sexual orientation in the provision of any services, programs, or activities. The City of Pacific Grove does not discriminate against persons with disabilities. City Hall is an accessible facility. A limited number of assisted listening devices will be available at this meeting. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting or provide the requested agenda format.
PGCC 11-19-2025
8 Agenda No. 2 A
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Nick Smith, Mayor
MEETING DATE: November 19, 2025
SUBJECT: Certificate of Recognition in Honor of Richard Stillwell CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Present certificate.
Attachments
Certificate of Recognition
PGCC 11-19-2025
9 MATT MOGENSEN Mayor NICK SMITH
Richard Stillwell
CERTIFICATE OF RECOGNITION This certificate is respectfully presented in honor of In recognition of his exceptional dedication, service, and contributions to our community. His unwavering commitment, generosity, and lasting influence enriched the lives of all who knew him and strengthened our community as a whole.
City Manager
PGCC 11-19-2025
10 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: David Stiles, Senior Accountant
MEETING DATE: November 19, 2025
SUBJECT: Check Register and Interim Financial Report - October 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
1. Receive the Check Register and Interim Financial Report.
2. Alternatively, discuss and take other action related to this item.
DISCUSSION
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 October 2025. In addition, a detailed listing of the checks issued for the month is available on the City's website.
The Administrative Services Department produces Quarterly Interim 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.
Please note that this report is preliminary for Quarter 1 of Fiscal Year 2025-26 and that it is possible that not all quarterly revenue and expenditure adjustments have been accrued and/or recorded at the time this report was generated.
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 Fund October 2025
Check Register by Detail October 2025
PGCC 11-19-2025
11 Check Register by Detail October 2025
FY26 Q1 Interim Financial Report
PGCC 11-19-2025
12 Fund Transaction Amount
01 - General Fund Total $ 1,622,383.41
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
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 $ 2,019,131.92
Check Register - Summary by Fund - September 2025
PGCC 11-19-2025
13 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
01 - GENERAL FUND 09/03/25 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 Rec Phones Aug 37.32
It Phones Aug 40.88
Pd Data 371210040 567.07
Pw Phones Aug 737.78
Pw Data 62.07
Fd Phones Aug 63.26
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
09/05/25 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:116 Health 506.85
Ded:4304 Hlth Retro (168.56)
Ded:111 Health 1,633.65
Ded:108 Health 1,918.93
Ded:3053 Health Fam 1,446.77
Ded:2071 Health 1,462.50
Ded:126 Health 1,475.23
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:123 Health 5,673.95
Ded:105 Health 7,906.86
Ded:2073 Health Fam 8,331.00
Ded:122 Health 11,348.00
City Of Pacific Gro Ded:3301 Aflac Med 1,520.72
EFT Ded:*Sca State Tax 15,986.57
Ded:*Ft Federal Tx 40,222.86
Ded:*Fm Medicare 11,187.60
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:1010 Work Comp 3,153.03
Ded:1003 Work Comp 5,241.26
Ded:7510 Pers Reimb 41.15
Ded:200 Dentaleoer 271.59
Ded:2101 Dentaleoee 978.98
Ded:2102 Dental+1Ee 1,022.08
Ded:2103 Dental Fam 1,559.90
Ded:0005 Suta 136.47
PERS Ded:2003 Pers Other 173.96
Ded:15 Pers-Retro 204.77
Ded:0022 Pers Sp Ms 218.16
Ded:0019 Pers Rt Sf (3.44)
Ded:0025 Pers Rt Ms 22.83
Ded:0004 Surv Ben 86.49
Ded:0009 Pers Other 478.02
Ded:0018 Pers Sp Sf 494.16
Ded:08 Pers Other 354.98
Ded:2001 Pers 2,193.46
Ded:0002 Pers 2,821.00
Ded:2000 Pers Emply 3,784.48
Ded:01 Pers 9,578.43
Ded:0017 Pers Rg Sf 6,314.65
PGCC 11-19-2025
14 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
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: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:7205 Assoc Dues 654.61
Ded:7204 Assoc Dues 8.00
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:300 Visioneoer 59.76
Ded:2504 Vision Fam 228.48
Ded:2503 Vision+1Ee 228.48
Ded:2502 Visioneoee 205.84
PERS Gasb 68 Fees 700.00
09/09/25 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 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
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 11-19-2025
15 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
09/12/25 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
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
PGCC 11-19-2025
16 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
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
Fin Desk Riser 186.81
Fin Desk Riser 186.81
Fin Office Supplies 20.13
Lib Office Supplies 23.94
Cdd Office Supplies 38.22
Cdd Office Supplies 41.50
Pw Park Clean Up 84.00
Pw Park Pest Contro 89.66
American Supply Com B&G Janitorial Supp 2,969.61
AT&T Lighthouse Internet 112.35
AT&T Calnet 3 Admin Phone 3242 2,108.11
Library Internet 33 222.13
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
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 Pd Cell Phones 5185 1,787.67
Library Phones 1990 222.06
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
Mech Stock 266.04
Stock /Repair Unit 239.91
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
PGCC 11-19-2025
17 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Hometek Mem Bench Engraving $ 495.00
Monterey Peace Offi Mcpoa Range Mbrship 560.00
Mcpoa Range Mbrship 630.00
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 Notice Public He 192.00
2Nd Read Cannibis O 144.00
Cc 2Nd Read Fire Zo 144.00
Pub Notice Ord 144.00
Notice Pub Hearing 144.00
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 114.88
Cdd Office Supplies 117.67
Fin Office Supplies 109.46
Cdd Office Supplies 69.36
O'Reilly Auto Enter Street Repair Suppl 339.34
Mech Credit Supplie (37.72)
B&G Repair Supplies 515.87
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 Vehicle Repairs 114.63
Pw Supplies 89.73
Cdd Office Supplies 84.54
Pd Repair Supplies 75.31
Fd Repair Supplies 64.18
Museum Repair Suppl 469.76
B&G Repair Supplies 383.62
Mech Supplies 3.05
Cdd Office Supplies 3.27
Forestry Supplies 3.92
Streets Supplies 230.00
Pw Supplies 239.47
B&G Repair Supplies 1,445.79
Street Supplies 684.03
Rec Supplies 181.40
Lib Repair Supplies 137.29
Pacific West Water Fin Water Service 42.85
Cdd 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 1,614.44
Pd Uniforms 1,790.35
Pd Uniforms 1,825.28
Pd Uniforms 1,825.28
Lehr Pd Vehicle Outfit 2,267.12
New Patrol Vehicle 24,408.54
Tom'S Site Services Labor Day Services 4,770.05
Verizon Business Pd Port Access 74.69
PGCC 11-19-2025
18 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Vestis Services, Ll Pd Linen Services $ 182.31
Brian Whitson Janitorial Services 380.00
Monthly Museum Jani 2,100.00
Aria Med Pd Background Medic 1,644.00
Pd Backgrounds 548.00
Community Human Ser Jpa Allocation Memb 23,175.00
Napa Auto Parts Club Hse Equipment 22.01
Fd Repair Unit 6414 100.42
09/15/25 PERS Ppe8.16.25 Inclcred 20,778.22
09/17/25 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
09/19/25 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:2071 Health 1,462.50
Ded:126 Health 1,475.23
Ded:116 Health 506.85
Ded:128 Health Emp 556.45
Ded:2072 Health 1,109.00
Ded:129 Health 1,134.79
Ded:111 Health 1,633.65
Ded:104 Health 2,027.40
Ded:4304 Hlth Retro 2,869.82
Ded:106 Health 2,952.20
Ded:103 Health 3,041.10
Ded:112 Health 2,225.80
Ded:3051 Health Emp 2,225.80
Ded:108 Health 3,837.86
Ded:123 Health 5,673.95
Ded:124 Health 5,900.92
Ded:2073 Health Fam 8,331.00
Ded:105 Health 9,224.67
Ded:122 Health 11,348.00
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:3999 Roth Ira 1,673.00
Ded:4000 Def Comp 11,559.68
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:1003 Work Comp 6,253.84
Ded:1009 Work Comp 220.46
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: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: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
Ded:2000 Pers Emply 3,784.48
Ded:0002 Pers 2,685.05
Ded:2001 Pers 2,193.46
PGCC 11-19-2025
19 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Ded:0021 Pers Reg M $ 15,243.18
Ded:0020 Pers Er M3 15,963.79
Ded:01 Pers 9,616.77
Ded:0011 Pers Er Sf 8,385.44
Ded:0020 Pers Er M3 (15,963.79)
Ded:0021 Pers Reg M (15,243.18)
Ded:01 Pers (9,616.77)
Ded:0011 Pers Er Sf (8,385.44)
Ded:0018 Pers Sp Sf (749.18)
Ded:0009 Pers Other (701.15)
Ded:08 Pers Other (348.83)
Ded:0019 Pers Rt Sf (316.89)
Ded:0022 Pers Sp Ms (299.45)
Ded:2003 Pers Other (173.96)
Ded:0004 Surv Ben (92.07)
Ded:0000 Pers (15.02)
Ded:0017 Pers Rg Sf (7,175.52)
Ded:0006 Pers City (6,879.63)
Ded:07 Pers City (6,294.90)
Ded:2000 Pers Emply (3,784.48)
Ded:0002 Pers (2,685.05)
Ded:2001 Pers (2,193.46)
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:300 Visioneoer 59.76
Ded:2502 Visioneoee 205.84
Ded:2504 Vision Fam 228.48
Ded:2503 Vision+1Ee 242.76
PERS Sep 2025 Ual 395,585.00
09/26/25 California American 1025 Morse Dr 1,497.17
620 Oceanview 1,546.44
196 Oceanview 525.23
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
PGCC 11-19-2025
20 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
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
09/25/25 PERS Ppe 8.30.25 & Adj 77,883.07
09/26/25 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
Dept Head Training 122.06
Rec Office Supplies 138.90
Library Supplies 141.30
Fin Cash Drawer 141.97
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
Rec Office Supplies 88.08
B&G Volunteer Suppl 43.44
Pd Monitor Mounts 43.68
Pd Office Supplies 44.75
Library Supplies 46.86
Rec Office Supplies 69.63
Pw Office Supplies 78.56
Cmo Credit Office (70.40)
Rec Program Supplie 9.20
Rec Program Supplie 10.28
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 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)
Pd Name Badges 37.03
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
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
PGCC 11-19-2025
21 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
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
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 824.50
Cmo Legal Services 2,325.00
Cmo Legal Services 3,686.00
Cty Cncl Legal Svcs 1,358.00
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 Cty Cncl Office Sup 136.11
Pd Office Supplies 427.80
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 B&G Fuel August 807.77
PGCC 11-19-2025
22 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
Streets Fuel August $ 403.88
Ar Fuel August 4,819.72
B&G Fuel July 1,051.78
Street Fuel July 525.89
Pd Fuel July 3,053.24
Pd Fuel August 1,741.90
A/R Fuel July 2,580.48
Suburban Propane Pw Propane August 49.75
Mech Propane August 49.75
B&G Propane August 49.76
Street Propane Augu 49.76
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
Pw Data 62.07
Fd Phone Sept 63.13
Admin Phone Sept 170.63
Cdd Phone Sept 142.19
Pw Phone Sept 674.26
Pd Data Sept 545.44
It Phone Sept 45.16
Asd Data 70.81
Lib Data 76.02
Pd Phone Sept 99.93
Cmo Phone Sept 89.83
Rec Phone Sept 37.34
Vestis Services, Ll Pd Linen Services 182.31
Pd Linen Services 182.31
Watsonville Ford Pd Repair Unit 5 253.93
Mech Repair Unit 35 736.54
Pd Repair Unit 02 161.49
Pd Repair Unit 02 111.79
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 09/09/25 US Bank A Canales Local His 261.29 09/12/25 Minuteman Press Local History 91.29
11 - LIBRARY BOOK FUND 09/09/25 US Bank A Canales Book/Matl 99.00 09/12/25 Amazon Capital Serv Lib Books Credit (25.07)
Lib Books & Materia 7.64
Lib Books & Materia 19.69
Lib Books & Materia 38.58
Lib Books & Materia 17.26
Overdrive, Inc. Lib Books & Materia 8.97
Lib Books & Materia 5.98
09/26/25 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 09/12/25 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
09/17/25 Pw Electric 4482-4 9,018.80
09/19/25 PERS Sep 2025 Ual 2,373.42
09/26/25 California American Cem 4% 42.13
PGCC 11-19-2025
23 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
4Leaf Fy 25/26 On-Call Tr $ 464.00
Sturdy Oil Company Gas Tax Fuel August 403.88
Gas Tax Fuel July 525.89
24 - STILLWELL CHILDREN'S POOL 09/12/25 American Supply Com Pool Supplies 932.41 Pacific Grove Hardw Pool Supplies 107.68
09/26/25 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. 09/09/25 US Bank D Gho Vlnteer Namet 153.38 09/12/25 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 441.22
Lh Repair Supplies 140.35
09/17/25 Kay Bonnell Lighthouse Merch 412.50
09/26/25 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 636.58
Lighthouse Merch 68.80
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 09/09/25 Us Bank R Gaither Poetry Pr 581.50 09/12/25 Amazon Capital Serv Lib Poetry Supplies 42.70
09/26/25 Lib Poetry Promotio 10.37
Avery Burns Poetry Promotion 100.00
Leroy Knight Jr Poetry Promotion 100.00
42 - PUB SAFETY AUG FUND 09/12/25 Monterey County Eme Dispatch Services & 128,832.00 63 - CAPITAL IMPROV PROJ FUND 09/26/25 Joseph Kavanagh Cip Sanctuary Fence 1,061.00 70 - EMP BENEFIT FUND 09/05/25 Calpers Health Sep2025 Ret & Chang 9,152.98 09/12/25 Claremont Behaviora Eap Sept Services 648.15
09/26/25 PARS Pars Fees July 389.89
71 - WORKERS COMP FUND 09/19/25 PERS Sep 2025 Ual 1,000.83 09/26/25 Faa Mike Monroney A Medicare Claim 1,707.66
72 - LIABILITY INS FUND 09/19/25 PERS Sep 2025 Ual 890.00 74 - LOCAL WATER PROJECT 09/12/25 Pacific Gas & Elect Lwp Elec 0792-1 13,891.79 09/26/25 California American 1313 Ocean View Bl 14,822.85 Perc Water Corporat Lwp O&M Services Fy 57,459.61
75 - CEMETERY FUND 09/12/25 Pacific Gas & Elect Cemetery - 1% 27.74 Cemetery - 1% 32.99
Cemetery 41.47
Crest & Ripple 15.02
Mission Uniform Ser Linen / Uniform Cle 470.73
Pacific Grove Hardw Cem Supplies 455.08
Cem Supplies 124.51
09/19/25 PERS Sep 2025 Ual 4,105.92
09/26/25 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 09/12/25 Pacific Gas & Elect Oceanview Blvd & 8T 8.59 520 Ocean View Blvd 7.13
Pump Sunset Arena 7.84
Pump Station 27.67
1996 Sunset Dr. 25.32
520 Ocean View Blvd 25.42
Pump Russell Svc Ct 18.97
Pump Russell Svc Ct 65.51
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
PGCC 11-19-2025
24 Check Register - Summary by Detail - September 2025
Fund Check Date Name Description Amount
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 4175- 45.00
Pw Sewer Elec 5126- 1,918.00
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
09/19/25 PERS Sep 2025 Ual 12,774.67
09/26/25 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 09/12/25 Pacific Gas & Elect 1313 Ocean View Blv 50.90 1313 Ocean View Blv 114.05
09/26/25 California American 1254 Delmontegolf30 442.23 1273 Crespi Pond 50 124.47
77 Asilomar 98.29
77 Asilomargolfhse 2,497.26
Grand Total $ 2,020,021.92
PGCC 11-19-2025
25 City of Pacific Grove
California
Interim Budget Status Report
For the Fiscal Year Ended June 30, 2026
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.org
PGCC 11-19-2025
26 Matthew Mogensen
City Manager
Table of Contents
Revenues by Fund ................................................. 3 Expenses by Fund ................................................. 4 General Fund Revenue and Expense Reports ....... 5
Enterprise Expense Funds Reports ........................ 8 Internal Service Expense Reports .......................... 9 Fund Numbers and Descriptions ......................... 10 General Fund Revenue Overview ........................ 11 Departmental Expenditure Overview .................. 12 Mission and Vision
Mission: To deliver quality professional public
services in the City and region
Vision: To thoughtfully grow as an inclusive
community, protecting its character
Core Values
Leadership: Uphold the highest work ethic
Inclusiveness: Cultivate an environment of trust
Integrity: Safeguard public trust
Collaboration: Promote transparent engagement
Stewardship: Protect our natural environment
Focused Priority Areas and Goals
Recreation: Robust and accessible activities
Infrastructure: Maintain community assets
Stewardship: Implement sustainable practices
Housing: Diversity affordable opportunities
City Council Fiscal Year 2025-26
Mayor: Nick Smith
Councilmembers: Joe Amelio, Mayor Pro Tempore
Cynthia Garfield
Lori McDonnell
Chaps Poduri
Tina Rau
Paul Walkingstick
The City of Pacific Grove
presents its interim financials
for Fiscal Year 2025-26.
This report presents the City’s
overall financial condition in
an easy to read format for all
users, focusing on major
revenues and expenses by
major fund type.
Summary of Annual Report
This report is an interim financial
update on the City’s various
funds, including its General,
Sewer, Local Water and
Cemetery funds, as presented in
more detail in the City’s adopted
budget for FY 2025-26.
Audit Opinion / Awards for Excellence
The City has received a “clean” unmodified audit
opinion for its prior audited financial reports, and
a Certificate of Achievement for Excellence in
Financial Reporting (COA) from the Government
Finance Officers Association (GFOA). In addition,
the City has received awards for excellence for its
operating budget from GFOA and the California
Society of Municipal Finance Officers. These
awards focus on providing quality documents
that are easy to understand by the public.
Social Media for the City
Website: cityofpacificgrove.org
Facebook: CityofPacificGrove
X/Twitter: @PacificGrove
Welcome Message
From the
City Manager
City of Pacific Grove
Interim Financials
Fiscal Year 2025-26
PGCC 11-19-2025
27 Revenues by Fund - FY 2025-26 (Unaudited)
Through September 2025
25% of Budget Year Complete
Fund
Revised
Budget YTD
YTD % of
Budget Prior YTD
Projected
Change for
Fiscal Year
Projected
Ending
Reserves *
Main Fund - Fund 01 32,729,400 $ 4,535,690 $ 14% 4,169,350 $ (1,969,722) $ 15,480,866 $ Other Funds Included 1,027,610 20,674 2% 10,321 (110,640) 61,089 General Fund 33,757,010 4,556,364 13% 4,179,671 (2,080,362) 15,541,955 Capital Projects $ 506,682 $ 143,555 28% 217,587 $ (143,318) 2,244,375 Capital Funds 506,682 143,555 28% 217,587 (143,318) 2,244,375 Local Water Project 1,288,746 488,911 38% 566,041 263,641 (127,082) Cemetery 580,902 16% 198,059 95,645 (267,207) 766,398
Sewer 4,099,809 76,130 2% 230,292 10,265,039 154,540
Golf 956,538 106,515 11% 109,033 (70,144) 881,890
Sewer Lateral Loans 3,908 38% 1,466 3,007 3,908 185,482 Enterprise Funds 6,929,903 768,667 11% 1,106,432 11,971,727 84,738 Employee Benefit 316,299 24% 66,059 76,394 3,599 65,661 Worker's Compensation 925,299 328,279 35% 169,728 8,351 614,952 Liability Insurance 753,944 200,557 27% 191,843 (128,223) 930,712 Internal Service Funds 1,995,542 605,230 30% 427,630 (116,273) 1,611,326 Library 13,141 37% 10,187 4,827 13,141 610,620
Cemetery 121,734 22% 56,050 26,645 121,734 2,411,891
Yount 8,000 - 0% 22,640 - 807,008
Trust Funds 142,875 22% 88,877 31,472 134,875 3,829,519 Library / Poetry 101,677 52,898 52% 55,267 14,277 332,397 Museum 8,073 2,329 29% 5,905 8,073 306,456
Public Safety 821,890 107,926 13% 108,265 (120,319) 458,245 Housing 48,956 14,612 30% 12,194 (107,927) 555,633
Streets 1,619,540 346,579 21% 145,684 (289,743) 1,656,268 Lighthouse 126,917 34,925 28% 37,366 (4,991) 219,181
Community Development/CDBG 41,957 7,260 17% 13,651 (241,444) 477,797 ARPA - - 0% 17,121 - 73,216
Downtown/Hospitality Districts 561,700 160,590 29% 163,436 - 58,804 Cable Franchise / Other 62,750 7,599 12% 73,587 (105,253) 265,021 Other Funds 3,393,460 734,718 22% 632,476 (847,327) 4,403,018 Totals All Funds 46,725,472 $ $ 6,840,006 15% 6,652,673 $ $ (2,967,667) $ 39,601,920 * Excludes Proposed Adjustments and Rollovers
Revenues Working Capital
Analysis: Q1 Revenues are slightly lower than budget primarily due to low Property, Sales, and Franchise Tax receipts. See analysis of General Fund Revenues for more detailed explanation. 13%
28%
11%
30%
22%
22%
15%
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 11-19-2025
28 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
25% of Budget Year Complete
Revised
Budget YTD
YTD % of
Projected
Purchase
Orders
YTD %
with POs Prior YTD
$ 34,699,122 $ 7,986,535 23% 3,150,442 $ 32% 8,510,490 $ 1,138,250 0% (2,985) - 0% 12,399
35,837,372 7,983,550 22% 3,150,442 31% 8,522,889
$ 650,000 $ 20,248 3% -$ 3% $ 7,125
650,000 20,248 3% - 3% 7,125
1,025,105 187,879 18% 391,858 57% 705,974
848,109 227,797 27% 31,112 31% 174,002
3,945,269 536,546 14% 1,618,197 55% 703,543
1,026,682 440,393 43% 29,150 46% 396,746
- - 0% - 0% -
6,845,165 1,392,615 20% 2,070,317 51% 1,980,265
312,700 23% 72,107 - 23% 132,755
916,948 391,793 43% - 43% 443,832
882,167 597,808 68% 68% 570,938 5,446
2,111,815 1,061,708 50% 51% 1,147,525 5,446
- - 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% 19,147 200% 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% 424,423 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% 718,926 38% 407,771
$ 49,693,139 $ 11,363,126 23% 5,945,131 $ 35% 12,066,786 $ Expenses
Analysis: Q1 Expenses are in line with budget. Individually significant items are as follows:
Museum: There were no budgeted expenses for the current year.
Community Development: There were two CDBG loans, for approximately $200k each, recorded in the year. It was budgeted for Community Development to expend all of their grant awards by FY26 Year End. This increase is due to awards not spent in FY25.
22%
3%
20%
50%
0%
21%
23%
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 11-19-2025
29 General Fund Revenues - FY 2025-26 (Unaudited)
Through September 2025
25% of Budget Year Complete
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 6,353,575 592,430 9% 6,353,575 563,951 9%
Business License/Cannabis Taxes 1,181,790 629,354 53% 1,181,790 217,467 73% Franchise Taxes 1,603,400 - 0% 1,603,400 - 0%
Utility User Taxes 2,183,500 384,335 18% 2,183,500 416,252 17% Transient Occupancy Tax 6,965,984 1,780,809 26% 6,965,984 1,778,151 26% 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 351,200 101,655 29% 351,200 106,141 29%
Water Entitlements 287,600 19% 287,600 53,766 146,170 9% Interest Earned 819,203 215,317 26% 819,203 255,235 49% Investment Market Value Gain/Loss - 127,930 200% 146,000 309,321 200% Indirect Cost Reimbursement 578,600 138,000 24% 578,600 138,000 25% Total Major Revenues 33,302,452 4,635,989 14% 33,448,452 4,379,183 13% Total General Fund Revenues 33,757,010 4,556,364 13% 33,904,000 6,264,450 19% 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 Analysis: Q1 Revenue is slightly lower than budget primarily due to:
1. Low Property Tax receipts, which are billed twice a year plus supplemental,
2. Low Sales Tax receipts, as Burns and Measure A revenues were recevied after Quarter-end,
3. No Franchise Tax receipts, as quarterly payments have not yet been received,
4. No Litter Abatement receipts, as quarterly payments were received after Quarter-end, And was offset by:
1. Business License/Cannabis Taxes, as the majority of business license revenue is received at the beginning ot the year.
2. Zoning Enforcement, as current YTD receipts are higher than prior three years at this same time. Zoning enforcement revenue is unpredictable in nature.
3. Investment Market Value Gain/(Loss), which is not a budgeted item due to unpredictable nature of markets. 0%
9%
53%
0%
18%
26%
0%
9%
73%
0%
17%
26%
Property Taxes - $11.0 million
Sales Taxes - $6.4 million
Business License/Cannabis Taxes - $1.2 million
Franchise Taxes - $1.6 million
Utility User Taxes - $2.2 million
Transient Occupancy Tax - $7.0 million
Budgeted Tax Revenues / YTD % of Budget - Current YTD vs Prior YTD 25-26 24-25
PGCC 11-19-2025
30 General Fund Expenses (including Transfer) by Department - FY 2024-25 (Unaudited) Through September 2025
25% of Budget Year Complete
Department Revised Budget
YTD
Expenditures
YTD % of
Budget
PY YTD %
of PY
Budget
Outstanding
Purchase
Orders
YTD %
with POs
Year End
Projection
City Council / Non Dept 7,310,984 $ $ 2,962,491 41% 121% -$ 41% 7,311,000 $ City Attorney 915,000 93,330 10% 93% 606,871 77% 915,000 City Manager 1,609,254 333,244 21% 91% 21% 1,650,000 9,018 Admin Services 2,699,548 499,811 19% 88% 89,684 22% 3,900,000 Community Development 2,439,321 321,775 13% 100% 1,297,994 66% 2,400,000 Police 7,981,343 1,671,371 21% 84% 21% 8,000,000 6,364
Fire 3,899,497 964,767 25% 67% 292,358 32% 3,890,000
Library 280,960 1,200,659 23% 81% 9,857 24% 1,200,000
Museum 424,493 104,785 25% 83% 282,000 91% 424,000
Recreation 1,802,832 451,703 25% 96% 7,860 25% 1,863,000 Public Works 4,416,191 922,698 21% 102% 548,435 33% 4,236,000 Total General Fund 34,699,122 $ 8,606,935 $ 25% 87% 3,150,442 $ 34% 35,789,000 $ Analysis: Q1 expenses are on target. City Council / Non Dept is high due to a $1.5M PERS P.O.B. payment made at the beginning of the year.
41%
10%
21%
19%
13%
21%
25%
23%
25%
25%
21%
25%
25%
City Council / Non Dept
City Attorney
City Manager
Admin Services
Community Development
Police
Fire
Library
Museum
Recreation
Public Works
Total General Fund
Percent of Year Complete
Revised Budget / YTD % of Budget - By Department
PGCC 11-19-2025
31 General Fund Expenditure Report - FY 2024-25 (Unaudited) Through September 2025
25% of Budget Year Complete
Expense Line Item
Revised
Budget YTD
YTD % of
Budget
Purchase
Orders
YTD % with
POs
Salaries 11,628,459 2,416,631 21% 0 21%
Contract/Professional Services 6,471,443 1,301,387 20% 2,457,896 58% Unfunded Pension Liability 4,747,019 1,186,755 25% 0 25% Debt Service 1,512,562 1,504,169 99% 0 99%
Health Insurance 1,368,833 331,530 24% 0 24%
Internal Service Charges 1,364,000 341,000 25% 0 25%
Retirement (PERS) 1,150,254 263,423 23% 0 23%
Fund Transfers Capital / Other 1,117,600 279,400 25% 0 25% Legal Services / Retainer 966,000 104,287 11% 606,871 74% Utilities 900,968 258,757 29% 0 29%
Other Employee Benefits 634,618 156,270 25% 0 25%
Repairs and Maintenance 537,892 63,286 12% 4,492 13%
Equipment and Related Leases 519,780 67,284 13% 47,123 22% Supplies 455,600 82,060 18% 24,796 23%
Other Operating Costs 443,625 98,428 22% 9,264 24%
Software Licenses and Support 397,569 69,892 18% 0 18%
Subscriptions and Memberships 285,200 64,193 23% 0 23%
Meetings / Travel / Training 181,500 18,182 10% 0 10%
Grand Total 34,682,922 8,606,935 25% 3,150,442 34%
Analysis: Q1 expenditures are on target. Debt Service represents a $1.5M PERS P.O.B. payment made at the beginning of the year.
21%
20%
25%
99%
24%
25%
23%
25%
11%
29%
25%
12%
13%
18%
22%
18%
23%
10%
25%
25%
Salaries
Contract/Professional…
Unfunded Pension Liability
Debt Service
Health Insurance
Internal Service Charges
Retirement (PERS)
Fund Transfers Capital /…
Legal Services / Retainer
Utilities
Other Employee Benefits
Repairs and Maintenance
Equipment and Related…
Supplies
Other Operating Costs
Software Licenses and…
Subscriptions and…
Meetings / Travel / Training
Grand Total
Budget or Projected / YTD % of Budget - Major Expense
Categories
Percent of Year Complete
PGCC 11-19-2025
32 Expense Report by Object - Enterprise Funds - FY 2024-25 (Unaudited) Through September 2025
25% of Budget Year Complete
Fund / Expense Line Item CY BUDGET CY Expenses % CY Budget PY Budget PY Expenses % PY Budget Local Water Project 1,025,105 581,475 57% 1,360,925 1,110,218 82% Supplies And Services 25,000 0 0% 25,000 1,467 6%
Contract Services 425,656 500,000 117% 419,476 502,232 120% Fund Transfers 0 0 0% 350,000 87,500 25%
Indirect And ISF Charges 41,000 10,250 25% 50,000 12,500 25% Debt Service 206,449 0 0% 206,449 0 0%
Project Utilities 327,000 71,225 22% 310,000 506,519 163% Cemetery Fund 848,109 263,909 31% 720,349 204,316 28%
Services And Supplies 88,700 42,790 48% 114,650 44,479 39% Salaries And Benefits 350,409 80,227 23% 315,699 53,306 17% Indirect Costs And Isf Charges 169,000 42,250 25% 169,000 42,250 25% Utilities 240,000 98,642 41% 121,000 64,282 53%
Sewer Fund 3,945,269 2,173,993 55% 3,250,050 1,524,932 47% Debt Service 87,814 44,782 51% 89,689 49,653 55%
Other Operating Costs 200,769 17,331 9% 238,069 274,508 115% Capital Improvements 1,050,000 1,592,474 152% 622,052 831,468 134% Employee Salaries 789,214 143,069 18% 637,237 144,866 23% Contract Services 407,000 128,448 32% 374,725 0 0%
Employee Benefits 211,176 43,106 20% 174,278 41,815 24% Indirect Cost / ISF Charges 430,000 107,500 25% 423,000 105,750 25% Maintenance Services 516,000 0 0% 450,000 0 0%
Unfunded Pension Liability 153,296 38,324 25% 141,000 35,250 25% Utilities 100,000 58,958 59% 100,000 41,622 42%
Golf Fund 1,026,682 469,543 46% 755,057 396,746 53%
Capital Projects And Equipment 128,000 29,150 23% 108,000 0 0% Services And Supplies 15,000 50 0% 30,000 0 0%
Debt Service 272,097 112,154 41% 272,057 135,955 50%
Utilities 23,019 7,613 33% 20,000 7,235 36%
Indirect Cost Allocation 20,000 5,000 25% 20,000 5,000 25% Utilities 568,566 315,576 56% 305,000 248,555 81%
6,845,165 3,488,919 51% 6,086,381 3,236,211 53%
Analysis: Q1 Enterprise Fund Expenses are higher than budget primarily due to:
1. Sewer - Capital Improvements: CY expenses higher than budget due to work on PY approved projects. Utilities: $36k true up.
2. LWP - Contract Services: Operations & Maintenance are higher than budgeted.
3. Golf - Utilities: July through September are the highest water-use months.
4. Cemetery - Utilities: July through September are the highest water-use months. 57%
31%
55%
46%
82%
28%
47%
53%
Local Water Project - $1.0 million
Cemetery - $0.8 million
Sewer - $3.9 million
Golf - $1.0 million
CY Budget or Projected / YTD % of Budget - By Fund
YTD % of CY Budget
YTD % of PY Budget
PGCC 11-19-2025
33 Internal Service Funds Expense Report - FY 2024-25 (Unaudited) Through September 2025
25% of Budget Year Complete
Fund / Expense Line Item CY BUDGET CY Expenses % CY Budget PY Budget PY Expenses % PY Budget 70 - Employee Benefit Fund 312,700 72,107 23% 332,000 132,755 40% Other Costs 95,500 25,556 27% 89,000 25,372 29%
Health Benf. Reimbrmst 5,200 11,453 220% 57,000 9,686 17% Health Insurance Cost 209,000 33,640 16% 183,000 97,697 53% Unemployment Claims 3,000 1,458 49% 3,000 0 0%
71 - Workers Compensation 916,948 391,793 43% 735,949 443,832 60% Services And Supplies 25,000 150 1% 25,000 416 2%
Salary And Benefits 72,948 18,708 26% 55,949 2,704 5%
Insurance Premiums 319,000 285,241 89% 305,000 246,394 81% Insurance Claims 500,000 87,694 18% 350,000 194,318 56% Overtime 0 0 0% 0 0 0%
72 - Liability Insurance 882,167 603,254 68% 717,003 570,938 80% Services And Supplies 40,200 150 0% 39,200 162 0%
Salaries And Benefits 64,967 6,391 10% 49,803 2,454 5%
Insurance Premiums 677,000 586,511 87% 515,000 552,048 107% Insurance Claims 100,000 10,202 10% 113,000 16,274 14%
Grand Total 2,111,815 1,067,154 51% 1,784,952 1,147,526 64% Other Related Information for Insurance Funds:
Recommended Reserve Levels: 75% of outstanding liabilities for Insurance ISF Funds Self Insured Retention Amount: $150,000 per occurrence (WC) / $200,000 per occurrence (GL) New Claims for Quarter: Ҏ 2 (9 compared to 11 in same quarter of prior fiscal year) Claims Outstanding: Ҋ 2 (37 compared to 35 in same quarter of prior fiscal year) Analysis: Q1 Internal Service Fund Expenses are higher than budget primarily due to:
Workers Compensation - Insurance Premiums: Paid up front at the beginning of the year.
Liability Insurance - Insurance Premiums: Paid up front at the beginning of the year. 23%
43%
0%
40%
60%
0%
Employee Benefits
Worker's Compensation
Liability Insurance
Budget / YTD % of Budget - By Fund CY YTD % of Budget
PY YTD % of Budget
89%
18%
10%
87%
81%
56%
5%
107%
Worker's Comp Premiums
Worker's Comp Claims
Liability Premiums
Liability Claims
Budget / YTD % of Budget - For Selected Object Categories CY YTD % of Budget
PY YTD % of Budget
PGCC 11-19-2025
34 City of Pacific Grove, California
Fund Numbers and Descriptions
General and Capital Project Funds
General Fund - Accounts for funds not accounted for and reported in another fund, including the following subfunds:
• General Fund (01) • Asset Seizure (22) • Operating Donations (31) • Small Business Assistance (48) • Civic Center (14) • Stillwell Children’s Pool (24) • Vehicle Replacement (32) • Reiko Koo Estate Donation (93) • Drug Awareness (21) • Youth Center Donation (25) • Storm Water (44) Capital Projects (63) - Accounts for capital projects funded fully or in part by discretionary General Fund revenues.
Enterprise Funds
Cemetery (75) - Accounts for revenue from El Carmelo Cemetery site sales and the Little Chapel lease.
Local Water Project (74) - Accounts for the reclamation plant’s operation, treatment, and sale of recycled water.
Sewer (76,78) - Accounts for the City's sewer operations and maintenance (76) and provides funds for sewer lateral loans (78).
Golf Course (77) - Accounts for the concessionaire leases for the golf course, property improvement costs, and debt service.
Internal Service Funds:
Employee Benefit (70) - Accumulates contributions from departments to pay for a variety of employee benefit costs.
Workers' Compensation (71) – Accumulates contributions from departments to pay for premiums, claims and administrative costs.
Liability Insurance (72) – Accumulates contributions from departments for claims, legal costs, and insurance premiums.
Trust (Permanent) Funds
Library (85) - Retains donations and bequeaths for the benefit of Library materials and collections.
Cemetery (86) - Accounts for perpetual expenses; and preservation of burial sites, grounds, paths, roadways and structures.
Yount (90) - Supports beautification of the City and minor improvements to education or recreational facilities.
Other Funds
Library / Poetry (7,11,40) – Accounts for funds to support the promotion of poetry and library improvements and equipment.
Museum (8) – Accounts for donations designated for improvements to the City’s museum of natural history.
Public Safety (12,42-45) – Accounts for funds in support of fire and police safety programs, SRO and 911 services and equipment.
Housing (15,28,36) – Accounts for affordable housing activities for residents and seniors and supports loans for affordable housing.
Streets (17-20,47) – Accounts for Gas and RMRA taxes, Measure X, and other grant funds for street maintenance and improvements.
Lighthouse (27) – Supports the operation at the Point Pinos Lighthouse including staffing, supplies, maintenance and improvements.
Community Development/CDBG (5,34,55) – Accounts for Community Development Block Grants and other department activities.
ARPA (84) – Accounts for funds received and expenditures from the American Rescue Plan Act provided by the federal government.
Downtown/Hospitality Districts (9-10) – Funds support the Chamber of Commerce and Convention/Visitor’s Bureau operations.
Cable Franchise / Other (6, Other) – Funds programming on public access television (PEG) and other donations and grants, including:
• ASBS Grant (79) • Yount Income (41) • Chautauqua Hall (26) • Coastal Conservancy Grant (69) • Strong Disbursements (46) • Mcindoo Donation (92) • Operating Grants (30) • Carillon Fund (03)
PGCC 11-19-2025
35 Information related to major revenues categories is provided within this section. All graphs are in millions.
Property Taxes
Property tax revenues are received in December and April, with a minor amount in June. Proposition 13 sets FY 75-76 assessed values as the base year, with a growth rate limited to 2% for future years. The County Assessor also reappraises each real property parcel when there are purchases, construction, or other statutorily defined changes in ownership. Proposition 13 limits the property tax to 1% of each property’s full value, plus additional percentages for voter approved indebtedness. The City receives approximately sixteen cents of every dollar of property tax. Variations can result from timing differences, changes in assessed valuations, new developments and property sales during the year.
Sales Tax
Voters approved Measure A, a new 0.50% transaction and use tax. This increased the combined sales tax rate to 9.25% in October 2022. The General Fund portion of the City sales tax is comprised of a 1% Bradley-Burns statutory sales tax rate; and Measure U, a 1% transaction and use tax that was approved by voters in 2008. Restaurants and Hotels are the largest providers of sales tax to the City, followed by businesses in the building and construction category and from the County/State sales tax pool. Variances can occur annually resulting from timing differences, changes in car sales and online purchases, the two largest categories of its use tax, and from variances in tourism in the area.
Transient Occupancy Tax (TOT)
TOT is a lodging tax received on a monthly basis that is collected on overnight rental accommodation stays of 30 consecutive days or less. In 2010, the City updated its municipal code and began collecting TOT on residential or short-term rental properties (STRS). In Fiscal Year 17/18, the City approved an ordinance to reduce the number of short-term rentals, effective April 30, 2019. A one-time lottery was also conducted that eliminated 51 STR licenses to meet the ordinance’s new density requirements. In November of 2018 voters approved Measure U, increasing the TOT rate to 12%. This increased tax was partially offset by Measure M, eliminating STRs outside of the Coastal and Commercial zones. Variances can be affected by timing differences and changes in room and hotel occupancy rates.
Other Taxes
The City imposes a utility users’ tax on residents and businesses that utilize water, gas, electricity, telephone, and cable services. This tax is assessed at a rate of 5% of the amount charged by the utility; and it is paid by the person consuming the service.
The amount of revenues received is affected by timing differences and updates to the underlying rate structures or new development projects.
The City grants franchises to utilities to construct, maintain, lay infrastructure, or operate transportation on or over streets, alleys, lanes, or other public places within the City. New franchises or their renewal are levied a tax of at least 2% if gross annual receipts from franchises within the City.
The City charges a business license tax on entities doing business within the City. The tax rate is based upon gross receipts of the previous calendar year, with a minimum annual tax of $15 and a maximum of $3,000. The tax is payable on July 31st of each year along with a business improvement district assessment of 35% of the tax. The amounts can vary annually due to timing differences and periodic external audits and changes in business activity.
City of Pacific Grove
General Fund Revenue Overview
$8.2
$8.6
$9.3
$10.0
$11.0
2021
2022
2023
2024
2025
$5.0
$5.6
$6.7
$7.1
$6.4
2021
2022
2023
2024
2025
$4.0
$6.8
$7.1
$7.4
$7.0
2021
2022
2023
2024
2025
$3.8
$4.0
$4.3
$4.6
$5.0
2021
2022
2023
2024
2025
PGCC 11-19-2025
36 Note that expenditures for most operating departments include amounts budgeted for personnel costs, including allocations for payment of the City’s unfunded pension liability, meeting and travel costs (except the City Attorney, Fire and Museum departments, operated on a contract basis), and internal service charges for support provided by other departments. In addition, most departments include allocations for utilities and contracted professional services. Note that variances for departments frequently can occur due to vacancies, timing differences in the payment for items, unexpected repairs and delays in projects, and higher than anticipated increases in costs for products and services. The departments’ budgets also include the following expense categories, General Fund
City Council – Includes annual association memberships
City Attorney – Includes the legal retainer and contract legal services City Manager – Includes economic development and human resources programs and consultants Administrative Services – Includes contracted technology services, bank fees, leases for equipment and cloud based services, communication / phone services, software licenses, computer equipment / support and repairs Community Development – Includes contracted building, planning and dept legal professional services, bank fees, advertising for bidding, leases for equipment and cloud based services and software licenses Police – Includes dept legal services, communication / phone services, bank fees, safety and computer equipment / support, vehicle fuel and dept related debt service payments and fund transfers Fire – Includes contracted fire services, repairs, fire prevention services and dept related debt service / transfers Library – Includes new library books, leases for equipment and cloud based services and building repairs Museum – Includes the operation of the museum and building repairs Public Works – Includes maintenance of buildings, equipment, grounds and trees, street cleaning, maintenance of the fleet, leases for equipment and cloud based services, supplies and services and communication charges Recreation - Includes bank fees, advertising for recreation programs, building repair and operating supplies Enterprise / Internal Service Funds
Local Water Project – Funds equipment and its debt service payments. This fund may exceed budget by year end due to higher than expected utility costs
Cemetery – Includes its staffing and for operating supplies Sewer– Funds maintenance, equipment and vehicle repairs, equipment, supplies, capital and debt service Golf – Includes operations, improvements and for its debt service.
Employee Benefit – Includes contributions for various employee benefits Worker’s Compensation / Liability Insurance – Funds claims, administration and insurance premiums See additional details on capital expenditures for these funds in the City’s separate quarterly capital project report.
Other Funds
Several of the City’s funds will require mid-year adjustments due to the carryover of several capital projects from Fiscal Year 2024-25 to Fiscal Year 2025-26. These include the following funds:
• Museum (Fund 08) • Lighthouse (Fund 27)
• Local Streets / Roads (Fund 17) • Road Maintenance RMRA (Fund 47) • ARPA (Fund 84) • General Fund Capital Projects (Fund 63) • RSTP / TAMC Transportation (Fund 20) • Sewer (Fund 76) City of Pacific Grove
Departmental Expenditure Overview / Variance Analysis
PGCC 11-19-2025
37 Agenda No. 8 B
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: David Stiles, Senior Accountant
MEETING DATE: November 19, 2025
SUBJECT: FY26 Q1 Quarterly Treasurer's Report
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
1. Receive the report.
2. Alternatively, discuss and take other action related to this item.
DISCUSSION
Article 19, Section (K) of the City Charter requires that a quarterly statement of all funds in the treasury be submitted to the Council. The Treasurer’s report allows the Council and public to verify that the City’s funds are invested in a safe and prudent manner, and that such investments comply with City policy and state law. The Treasurer’s Report is different from a budget report, as its purpose is to report on cash balances.
This report reflects the City’s balances as of September 30th, 2025 and shows that cash and investments were held citywide, with a market value of $37,774,845. All investments are in government securities, certificates of deposit (CD), or other approved investment vehicles. The maturity dates are laddered, to ensure liquidity. Investments that have matured will be reinvested according to the cities' applicable policies. All bank balances are insured. The City does not actively trade either certificates of deposits or federal agency securities but holds investments in the portfolio for maturity. The average yield on the City’s portfolio for the quarter is 3.68%. This represents a yield rate that is 0.05% more than the prior quarter and 0.48% greater than the same quarter of the prior year.
OPTIONS
N/A – This is an informational report.
FINANCIAL IMPACT:
There is no fiscal impact. This is informational only.
FOCUSED PRIORITY AREA: Not Applicable.
Attachments
PGCC 11-19-2025
38 FY26 Q1 Treasurer's Report
PGCC 11-19-2025
39 City of Pacific Grove
California
Interim Investment Report
For the Fiscal Year Ended June 30, 2026
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.org
PGCC 11-19-2025
40 Matthew Mogensen
City Manager
Table of Contents
Investment Compliance Report .......................... 3 LAIF Pool Background ......................................... 4 Economic Trends ................................................ 5 Investment Summary and Details ....................... 6 Long Term Investment Restrictions
Only debt reserve funds may be invested in
securities exceeding five years without prior
Council approval, so long as their maturities
coincide with the expected use of funds.
Liquidity Objectives
The City’s investments will remain liquid to enable
it to meet all operating requirements which might
be reasonably anticipated. Maturities of some
investments for which there is limited opportunity
for resale shall be staggered to maximize liquidity.
Safety Objectives
The City’s investments shall be overseen in a
manner to ensure preservation of capital in the
portfolio. The City will diversify its funds among
a variety of securities with varying maturities.
Additional Resources for Information
Website: cityofpacificgrove.org
Facebook: CityofPacificGrove
X/Twitter: @PacificGrove
The City of Pacific Grove
presents its investment report
for the current fiscal year,
including details on types of
securities held and maturities
of its investments, as well as
reporting on compliance with
the City’s investment policy
and recent market conditions.
Cash Overview
The City pools its cash for investment purposes.
Highly liquid market investments with maturities
of one year or less at time of purchase are stated
at amortized cost. All other investments are stated
at fair value. Certain restricted funds, held by
outside firms through agreements with the City,
are not pooled and reported as restricted cash.
Investment Reporting Standards
The City reports its investments in accordance
with its investment policy, which has been
adopted by the Council. The policy is designed
to meet the standards of the Government
Finance Officers Association (GFOA), California
Municipal Treasurer’s Association (CMTA)
California Debt and Investment Advisory
Committee (CDIAC) and the Association of
Professional Treasurers of the United States and
Canada (APTUSC).
Yield Objectives
The objective is to attain a established benchmark
or an acceptable rate of return commensurate
with the City’s risk constraints identified in its
investment policy and its cash flow requirements.
Welcome Message
From the
City Manager
City of Pacific Grove
Investment Report
Fiscal Year 2025-26
PGCC 11-19-2025
41 Overview of Investment Policy
The following provides a summary of the City’s investment policy, which provides guidelines that City staff follow in placing investments. Investments of bond proceeds are governed by the debt issue covenants. Per the City investment policy, any investments temporarily in non-compliance will be addressed in subsequent months. The City is projected to have sufficient funds to meet its expenses for the next six months.
Investment Type
Maximum % or $ of Portfolio
Or In One Issuer
Minimum
Required
Rating
Maximum
Maturity
Agency in
Compliance?
Demand Deposits None None 5 years Yes
U.S. Treasuries None N/A 5 years Yes
U.S. Agencies None N/A 5 years Yes
Joint Powers Agency
Pool
100% - CAMP/CalTrust None N/A N/A
Money Market Funds 20% AAA N/A No
Bankers Acceptances 40% (10% with one institution) A1/P1 180 days None Held Commercial Paper 25% (10% with one firm) A1/P1 270 days None Held Placement Service /
Negotiable CDs
50% /
30% (10% with one bank)
A1 < 1 year
A for 1-5 years
5 years Yes
LAIF Per State Statute
$75 million per account
N/A N/A Yes
State / Local Agency
Debt Issues
None AA (except City
bonds)
5 years None Held
County Pool 100% None N/A None Held
City of Pacific Grove, California
Investment Disclosures and Compliance Review
PGCC 11-19-2025
42 Overview of Investment Policy (Continued)
Additional information on the investments allowed under the City’s investment policy is provided below, as described in the footnotes to the City’s annual financial report:
• 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 judgement, 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. • 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. • 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 determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).
Fair Value of Investments
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for assets liabilities in active markets at the measurement date.
Level 2 – Inputs, observable for the assets through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs reflecting the City’s best estimate of market pricing at the measurement date.
Federal Agency Securities and corporate bonds categorized as Level 2 are valued based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data.
PGCC 11-19-2025
43 September 4.212
August 4.251
July 4.258
June 4.269
May 4.272
April 4.281
LAIF Apportionment Rate(2): 4.34
LAIF Earnings Ratio(2): 0.00011893333163814
LAIF Administrative Cost(1)*: 0.26
PMIA Average Life(1): 254
LAIF Fair Value Factor(1): 1.001929581
PMIA Daily(1): 4.19
PMIA Quarter to Date(1): 4.24
Treasuries
51.39%
Agencies
29.08%
Certificates of
Deposit/Bank Notes
9.74%
Time
Deposits
3.25%
Commercial
Paper
5.80%
Corporate
Bonds
0.58%
Loans
0.16%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) .
*The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.
Source:
(1) State of California, Office of the Treasurer
(2) State of California, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 10/22/25
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 9/30/25
Chart does not include $987,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
9/30/25
$161.7 billion
PGCC 11-19-2025
44 Monthly Market Review
Information provided by CAMP’s Program Administrator PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc.
CAMP® is a registered trademark and the CAMP logos and designs are trademarks owned by the California Asset Management Trust (Trust). This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the Trust’s investment objectives, risks, charges and expenses before investing in the Trust. This and other information about the Trust is available in the Trust’s current Information Statement, which should be read carefully before investing. A copy of the Trust’s Information Statement may be obtained by calling 1-800-729-7665 or is available on the Trust’s website at www.camponline.com. While the Cash Reserve Portfolio seeks to maintain a stable net asset value of $1.00 per share and the CAMP Term Portfolio seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is possible to lose money investing in the Trust. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Trust are distributed by U.S. Bancorp Investments, Inc., member FINRA (www.finra.org) and SIPC (www.sipc.org). PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc., which serves as administrator and investment adviser to the Trust. U.S. Bancorp Asset Management, Inc. is a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bancorp Investments, Inc. is a subsidiary of U.S. Bancorp and affiliate of U.S. Bank N.A.
How many cuts does it take to get to the center of the Tootsie Pop? Economic Highlights
• The Federal Reserve (Fed) delivered its first rate cut of 2025, lowering the federal funds target range to 4.00% to 4.25%. Fed Chair Jerome Powell called it a “risk management cut” as the Fed weighs risks to its dual mandate of full employment and price stability. Newly confirmed Governor Stephen Miran dissented, favoring a 50 basis point (bps) cut.
• The median forecast from the Fed’s updated “dot plot” shows an additional 50 bps of rate cuts this year, 25 bps more than its June projections. This comes despite an upward revision to Fed projections for gross domestic product (GDP) growth and inflation, which is projected to remain above the Fed’s 2% target for longer, along with a slight downward adjustment to the projection for the unemployment rate.
• The October 1 shutdown of the U.S. government delayed the September jobs report, a key data point for the Fed given its focus on the labor market. Other labor market data continues to suggest a low hiring/low firing environment.
• The Consumer Price Index (CPI) rose to 2.9% year-over-year. Certain import-reliant goods are showing modest tariff passthroughs, but the Fed expects tariff price effects to be short-lived. The tension between the weakening labor market and sticky inflation reinforces the Fed’s data dependence.
• August’s retail sales and consumer spending data showed consumers continued to support the U.S. economy. Q2 GDP was revised higher with consumer spending up 2.5%, rebounding from Q1’s 0.6% reading
Bond Markets
• Yields on 3-month, 2-year, and 10-year U.S. Treasuries ended the month at 3.93%, 3.61%, and 4.15%, representing decreases of 21 bps, 1 bps, and 8 bps, respectively.
• The 30-year U.S. Treasury yield declined 20 bps and modestly flattened the yield curve from its steepest levels in over three years. This drop in longer-dated Treasury yields pushed mortgage rates to their lowest levels in nearly three years, improving the backdrop for home buying activity.
• As a result of lower yields in September, fixed income indices produced positive returns for the month. The ICE BofA 3-month, 2-year, and 10-year U.S. Treasury indices returned +0.33%, +0.27%, and +0.94%, respectively.
Equity Markets
• Equities rallied throughout the month and ended September just shy of all-time highs. The NASDAQ ended the month up +5.7%, the S&P 500 up +3.6%, and the Dow Jones Industrial Average up +2.0%. Year-to-date, the S&P 500 has returned 14.8%, while the NASDAQ is up 18.0% and the Dow Jones Industrial Average is up 13.9%. Notably, U.S. small cap stocks – which have materially lagged large caps – finally eclipsed their previous high from November 2021.
• International equities also reached all-time highs by month-end as measured by the MSCI ACWI ex U.S. Index which rallied +3.6% for the month. International equities continue to outperform domestic stocks as the index is up over 26% for the year. • The value of the U.S. Dollar reached its lowest level in over three years in September and is now down nearly 10% on the year. This continues to serve as a tailwind for international equities.
PFMAM Strategy Recap
• Given the expected trajectory of additional Fed rate cuts, we plan to maintain portfolio durations near 100% of benchmarks and position portfolios to take advantage of our curve steepening bias. • Spreads on federal agencies and supranationals remain quite narrow amid a lack of issuance. We do not anticipate any material changes or new issuance in the near term. We continue to monitor the Administration’s ongoing efforts to at least partially privatize Fannie Mae and Freddie Mac. Treasury Secretary Bessent has suggested a possible initial public offering (IPO) by yearend, though this timing remains challenging. Initial estimates are in the $50 billion range for up to a 15% equity stake, which would be the largest IPO in history.
• Investment-grade (IG) corporate bond spreads remained extremely tight through the month, ending near multi-year lows across most maturity structures. Spreads on the long end of the curve in particular remain exceptionally narrow. Relentless demand continues to highlight strong technicals while resilient economic conditions have supported corporate fundamentals.
We continue to look for opportunities to trim any issues we perceive as overvalued. • Spreads on asset-backed securities (ABS) stabilized and remained mostly unchanged over the month. AAA-rated ABS continue to offer more yield than equivalent-maturity AAA-A corporates. Current supply projections are for issuance to be down year-over-year.
• Mortgage-backed securities (MBS) posted strong excess returns in September as longer collateral MBS securities (30-yr mortgages) outperformed shorter-duration collateral structures (15-yr mortgages). Agency-backed commercial MBS (CMBS) grinded out positive excess returns for the month. Lower volatility continues to serve as a tailwind to the sector, although heighted fiscal policy uncertainty may weigh on volatility going forward. We remain cautious on rich valuations.
• On the short end of the curve, gross Treasury Bill issuance rose but net issuance declined as maturities of existing securities outweighed new issuance. The Treasury Bill market remains priced for further Fed rate cuts. Credit spreads on the short end of the curve stabilized during the month, allowing selective attractive buying opportunities across various maturities.
Fixed Income | October 2025
PGCC 11-19-2025
45 PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc. | For Institutional Investor or Investment Professional Use Only This material is not for inspection by, distribution to, or quotation to the general public.
Indices shown are not available for investment. The index data reference herein is the property of the index provider and/or its licensors. The index provider assumes no liability in connections with its use and does not sponsor, endorse or recommend the products or services contained herein. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change.
Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Spot Prices and Benchmark Rates
Index Sep 30,
2024
Aug 31,
2025
Sep 30,
2025
Monthly
Change
1-Month SOFR 4.85% 4.27% 4.16% -0.11%
3-Month SOFR 4.59% 4.17% 4.00% -0.17%
Effective Fed Funds Rate 4.83% 4.33% 4.09% -0.24%
Fed Funds Target Rate 5.00% 4.50% 4.25% -0.25%
Gold ($/oz) $2,636 $3,487 $3,825 $338
Crude Oil ($/Barrel) $68.17 $64.01 $63.05 -$0.96
U.S. Dollars per Euro $1.11 $1.17 $1.17 $0.00
U.S. Treasury Yields
Maturity Sep 30,
2024
Aug 31,
2025
Sep 30,
2025
Monthly
Change
3-Month 4.63% 4.15% 3.96% -0.19%
6-Month 4.41% 3.97% 3.85% -0.12%
2-Year 3.64% 3.62% 3.63% 0.01%
5-Year 3.56% 3.70% 3.74% 0.04%
10-Year 3.78% 4.23% 4.14% -0.09%
30-Year 4.12% 4.93% 4.70% -0.23%
Yields by Sector and Maturity
Maturity U.S.
Treasury
Federal
Agency
CorporatesAA-A IndustrialsAAA
Municipals
3-Month 3.96% 3.97% 4.15% -
6-Month 3.85% 3.85% 4.16% -
2-Year 3.63% 3.64% 3.98% 2.38%
5-Year 3.74% 3.75% 4.27% 2.42%
10-Year 4.14% 4.20% 4.79% 3.11%
30-Year 4.70% - 5.52% 4.05%
Economic Indicators
Indicator Release
Date Period Actual Survey (Median)
Retail Sales Advance MoM 15-Sep Aug 0.60% 0.20%
FOMC Rate Decision 17-Sep Sep 4.25% 4.25%
GDP Annualized QoQ 25-Sep 2Q T 3.80% 3.30%
Existing Home Sales MoM 25-Sep Aug -0.20% -1.50%
U. of Mich. Consumer Sentiment 26-Sep Sep F 55.1 55.4
PCE YoY 26-Sep Aug 2.70% 2.70%
ISM Manufacturing 1-Oct Sep 49.1 49
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
U.S. Treasury Yield Curve
9/30/2024
8/31/2025
9/30/2025
3-mo 2-yr 5-yr 10-yr 30-yr
0.23% 0.31% 0.10% 0.29% 0.34%
3.77%
4.11%
5.53%
3.27%
4.81%
1-5 Year Treasury 1-5 Year Agency 1-5 Year AAA-A
Corp
1-5 Year
Municipals
0-5 Year MBS
ICE BofA Fixed Income Index Returns
September Prior 12 Months
0.9%
3.6% 3.1%
1.9% 1.9%
17.6%
10.7%
15.0%
ICE BofA U.S. Treasury
Master Index
S&P 500 Russell 2000
(Small Cap)
MSCI EAFE
(Developed
Europe/Asia)
Total Return of Major Indices
September Prior 12 Months
3.5%
3.7%
3.9%
4.1%
4.3%
4.5%
4.7%
4.9%
5.1%
Sep '24 Dec '24 Mar '25 Jun '25 Sep '25
30-Day Money Market Yields
Commercial Paper (A1/P1) Federal Agency U.S. T-Bill
Source: Bloomberg. Data as of September 30, 2025, unless otherwise noted.
PGCC 11-19-2025
46 % of % Book Market
Institution Category Rating Total Yield Value Value
Cash Deposits
Petty Cash 0.05% 0.00% 1,045 1,045
Bank of America Checking 100% 0.00% 2,057,886 2,057,886 Total Cash Deposits 100% 0.00% 2,058,931 2,058,931
Investments - Yount Trust
Money Market Uncategorized Not Rated 0% 3.94% 509 509
Fixed Income Uncategorized Not Rated 27% 0.50% 205,000 203,452 U.S. Government Bonds Level 2 AA/AAA 73% 2.35% 542,000 540,403 Total Investments - Yount Trust 100% 1.84% 747,509 744,365 Investments - Other City Wide
State Local Agency Fund (LAIF) Uncategorized Not Rated 23% 4.40% 7,924,277 7,924,277 Dreyfus Money Market (TVI) Uncategorized Not Rated 1% 3.95% 324,889 324,889 Umpqua Bank Money Market Uncategorized Not Rated 6% 0.01% 2,018,018 2,018,018 Mututal Funds Uncategorized Not Rated 32% 4.14% 11,329,967 11,329,967 Certificates of Deposit Level 2 Not Rated 23% 3.33% 7,937,000 7,966,514 U.S. Government Bonds Level 2 AA/AAA 15% 3.90% 5,114,000 5,162,902 U.S. Treasury Securities Level 1 AA/AAA 1% 0.75% 250,000 244,983 Total Investments - Other City Wide 100% 3.71% 34,898,151 34,971,549 Total Cash and Investments - City Wide 3.68% 37,704,591 37,774,845 Difference in Cost/Market Value 70,254 0.19%
Net Deposits / (Withdrawals) for Quarter
As required under State law, the City is able to meet its expenditure requirements for the next six months.
City of Pacific Grove
Cash and Investments Summary - All Funds
As of September 30, 2025
21%
36%
21%
16%
6%
Distribution of Cash and Investments
LAIF
Money Market / Mutual Funds
CDS
US Bonds
Bank Balances / Other
PGCC 11-19-2025
47 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
Wgtd Avg YTM * 3.37% Sector Par Value YTM * Weight
Wgtd Avg YTM with Liq. Bal.* 3.60% Agencies 5,903,000 3.82% 22.9% Wgtd Avg YTW ** 3.37% Treasuries 597,000 1.15% 2.3%
Wgtd Avg Mat (no call) 1.88 yrs Certificates of Deposit 7,895,000 3.21% 30.6% Wgtd Avg Mat with Liq. Bal. 1.05 yrs Municipal Bonds
Wgtd Avg Mat (all called) 1.77 yrs Corporate Bonds
Mortgages
Commercial Paper
Market Value 9/30/2025 14,341,598 Supra Nationals
Total 14,395,000 3.37% 55.8%
Balance Rate Weight
Par Value 14,395,000 Money Market 11,399,535 3.88% 44.2% Liquid Balances 11,399,535
Total Par with Liquid Bal. 25,794,535
Current MV with Liquid Bal. 25,741,133
11,399,535 3.88% 44.2% *** All ratings are shown in S&P format. * Purchase Yield to Maturity ** Purchase Yield to Worst Ratings Do Not Include Liquid Balances. 0 - 3mo 3 - 6mo 6 - 12mo 1 - 2yr 2 - 3yr 3 - 4yr 4 - 5yr 5 - 7yr 7 - 10yr Over 10yr As of As of
9/30/2025 1Mo Ago 3Mos Ago 6Mos Ago 12/31/2024 1Yr Ago 3Yrs Ago 5Yrs Ago Cusip Reason Yield to Maturity:
Portfolio 3.37% 3.35% 3.26% 3.38% n/a n/a n/a n/a
2-Year Treasury 3.63% 3.59% 3.72% 3.89% 4.25% 3.66% 4.22% 0.13% Fed Funds 4.25% 4.50% 4.50% 4.50% 4.50% 5.00% 3.25% 0.25% Maturity Distribution
Portfolio Summary Portfolio Composition (incl. Liquid Balances) Portfolio Ratings (Worst***) Account Name
Total Liquid Balances
9Mos Ago
n/a
1Yr Average
n/a
3.97%
Performance versus Benchmark as of 9/30/2025 Excluded Securities
4.24%
4.58% 4.50%
Bonds that are not found
will not be shown
$1.7MM
$1.4MM
$1.2MM
$3.4MM
$2.6MM
$4.2MM
$0.0 $0.0 $0.0 $0.0
$0
$.5MM
$1.MM
$1.5MM
$2.MM
$2.5MM
$3.MM
$3.5MM
$4.MM
$4.5MM
3.5%
41.0%
55.5%
AAA AA+ NR
22.9%
2.3%
30.6%
44.2%
Agencies Treasuries Certificates of Deposit Liquid Balances 2 Report Date: 9/30/2025
PGCC 11-19-2025
48 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
Type Par Nov-25 Dec-25 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Callable 1,047,000 744 0 0 0 170,744 0 10,078 0 0
Non-Callable 13,348,000 781,157 727,499 532,560 35,614 280,744 517,649 302,629 22,490 35,678 TOTAL 14,395,000 781,901 727,499 532,560 35,614 451,488 517,649 312,707 22,490 35,678 Interest Payments
Principal Payments
Cash-Flows - from 10/2025 to 09/2026 - Assuming None Called Oct-25 Jan-26 Feb-26
40,296 757,375 272,908
40,296 747,297 272,908
0 10,078 0
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 0 100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 3 Report Date: 9/30/2025
PGCC 11-19-2025
49 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
Type Par Nov-25 Dec-25 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Callable 1,047,000 744 0 0 0 170,744 0 260,078 0 0
Non-Callable 13,348,000 781,157 727,499 532,560 35,614 280,744 517,649 302,629 22,490 35,678 TOTAL 14,395,000 781,901 727,499 532,560 35,614 451,488 517,649 562,707 22,490 35,678 * Likelihood based on 09/30/2025 market rates
Cash-Flows - from 10/2025 to 09/2026 - Recognizing Likelihood of Call* Oct-25 Jan-26 Feb-26
40,296 747,297 272,908
Interest Payments
Principal Payments
0 10,078 0
40,296 757,375 272,908
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 0 100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 4 Report Date: 9/30/2025
PGCC 11-19-2025
50 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
# Cusip Par Value Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Year 1 Total 1 91282CAM3 250,000 0 0 0 0 0 0 0 0 0 0 0 0 0
2 05580AXU3 249,000 0 249,628 0 0 0 0 0 0 0 0 0 0 249,628 3 88241TJN1 249,000 123 249,127 0 0 0 0 0 0 0 0 0 0 249,250 4 108622LL3 249,000 92 249,095 0 0 0 0 0 0 0 0 0 0 249,187 5 02357QAN7 249,000 92 95 249,092 0 0 0 0 0 0 0 0 0 249,279 6 06251A2Q2 205,000 0 0 205,514 0 0 0 0 0 0 0 0 0 205,514 7 48128UTP4 248,000 0 0 248,622 0 0 0 0 0 0 0 0 0 248,622 8 25844MAM0 247,000 2,802 0 0 249,802 0 0 0 0 0 0 0 0 252,604 9 912797RJ8 97,000 0 0 0 97,000 0 0 0 0 0 0 0 0 97,000
10 31422B6K1 95,000 0 0 0 95,228 0 0 0 0 0 0 0 0 95,228 11 530520AA3 249,000 931 962 931 249,962 0 0 0 0 0 0 0 0 252,786 12 45581ECE9 249,000 0 0 0 0 249,565 0 0 0 0 0 0 0 249,565 13 552249CG7 244,000 0 0 0 0 0 249,747 0 0 0 0 0 0 249,747 14 89789AAJ6 247,000 1,029 1,029 1,029 1,029 1,029 248,029 0 0 0 0 0 0 253,174 15 3133EMZC9* 170,000 0 744 0 0 0 0 0 170,744 0 0 0 0 171,488 16 91282CCF6 250,000 0 938 0 0 0 0 0 250,938 0 0 0 0 251,876 17 02007GSU8 246,000 0 0 3,700 0 0 0 0 0 249,680 0 0 0 253,380 18 90348JN48 249,000 153 159 153 159 159 143 159 153 249,159 0 0 0 250,397 19 649447UZ0 249,000 0 0 0 879 0 0 0 0 0 249,864 0 0 250,743 20 25460FDV5 249,000 972 1,005 972 1,005 1,005 907 1,005 972 1,005 972 1,005 1,005 11,830 21 07181JAV6 248,000 1,019 1,053 1,019 1,053 985 1,019 1,053 1,019 1,053 1,019 1,053 1,053 12,398 22 87164WH84 248,000 0 0 1,554 0 0 0 0 0 1,546 0 0 0 3,100 23 052392CH8 249,000 1,013 1,047 1,013 1,047 1,047 946 1,047 1,013 1,047 1,013 1,047 1,047 12,327 24 3133ENKG4* 530,000 0 0 0 3,896 0 0 0 0 0 3,896 0 0 7,792 25 3133ENKG4* 97,000 0 0 0 713 0 0 0 0 0 713 0 0 1,426
26 15118RE78 249,000 962 994 962 994 994 898 994 962 994 962 994 994 11,704 27 32116QBK1 244,000 0 5,474 0 0 0 0 0 5,384 0 0 0 0 10,858 28 254673G34 246,000 0 0 3,885 0 0 0 0 0 3,864 0 0 0 7,749 29 58404DSN2 249,000 921 952 921 952 952 860 952 921 952 921 952 952 11,208 30 438649AJ4 249,000 952 983 952 983 983 888 983 952 983 952 983 983 11,577 31 02589ADB5 246,000 0 0 0 4,030 0 0 0 0 0 3,965 0 0 7,995 32 90352RCU7 249,000 846 819 846 846 764 846 819 846 819 846 846 819 9,962 33 31422XH70 334,000 6,329 0 0 0 0 0 6,329 0 0 0 0 0 12,658 34 914098DJ4 249,000 860 888 860 888 831 860 888 860 888 860 888 888 10,459 35 01664MAB2 249,000 900 931 900 931 931 840 931 900 931 900 931 931 10,957 36 51828MAC8 249,000 921 952 921 952 952 860 952 921 952 921 952 952 11,208 37 45157PAZ3 249,000 921 952 921 952 890 921 952 921 952 921 952 952 11,207 38 01882MAA0 249,000 993 1,026 993 1,026 960 993 1,026 993 1,026 993 1,026 1,026 12,081 39 82671DAB3 249,000 900 931 900 931 931 840 931 900 931 900 931 931 10,957 40 61690U3L2 244,000 0 0 0 0 0 5,929 0 0 0 0 0 6,027 11,956 41 91527PBW6 249,000 839 867 839 867 867 783 867 839 867 839 867 867 10,208 42 3130AXEL8 250,000 0 0 0 0 0 5,938 0 0 0 0 0 5,938 11,876 43 3133EPF91 500,000 0 11,250 0 0 0 0 0 11,250 0 0 0 0 22,500 44 3130AYJ31** 250,000 0 0 0 5,469 0 0 0 0 0 255,469 0 0 260,938 Extended Cash-Flows
5 Report Date: 9/30/2025
PGCC 11-19-2025
51 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
# Cusip Par Value Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Year 1 Total Extended Cash-Flows
45 3133EPW84 750,000 0 0 0 14,531 0 0 0 0 0 14,531 0 0 29,062 46 3133ERQD6 500,000 0 0 0 0 9,063 0 0 0 0 0 9,063 0 18,126 47 3133EP5J0 500,000 0 0 0 0 0 10,313 0 0 0 0 0 10,313 20,626 48 3133EPXV2 500,000 11,563 0 0 0 0 0 11,563 0 0 0 0 0 23,126 49 3133EPXV2 180,000 4,163 0 0 0 0 0 4,163 0 0 0 0 0 8,326 50 3133ERKX8 1,000,000 0 0 0 21,250 0 0 0 0 0 21,250 0 0 42,500 TOTAL 14,395,000 40,296 781,901 727,499 757,375 272,908 532,560 35,614 451,488 517,649 562,707 22,490 35,678 4,738,165 * Callable - currently not likely to be called See Cash-Flows graph above "Recognizing Likelihood of Call" for current projected cash-flows ** Callable - currently likely to be called
6 Report Date: 9/30/2025
PGCC 11-19-2025
52 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
Estimated Estimated
# CUSIP/Sec-ID Sec Desc 1 Weight Par Value Coupon * Settle Dt Mat Dt Nxt Call Dt Rating *** YTM ** YTW ** Duration Call Type Bps to Call Redem. Date 0 Total Liquid Balances 44.2% 11,399,535
1 91282CAM3 TREAS SER AD-202 1.0% 250,000 0.250 7/16/2021 9/30/2025 AAA 0.60 0.60 0.00 9/30/2025 2 05580AXU3 BMW BK NORTH AMER SALT LAKE 1.0% 249,000 0.500 11/20/2020 11/20/2025 NR 0.50 0.50 0.13 11/20/2025 3 88241TJN1 TEXAS EXCHANGE BK CROWLEY CD 1.0% 249,000 0.600 11/25/2020 11/25/2025 NR 0.60 0.60 0.15 Monthly 11/25/2025 4 108622LL3 BRIDGEWATER BK ST LOUIS PK M 1.0% 249,000 0.450 11/30/2020 11/28/2025 NR 0.45 0.45 0.15 11/28/2025 5 02357QAN7 AMERANT BK NATL ASSNCORAL CD 1.0% 249,000 0.450 12/3/2020 12/3/2025 NR 0.45 0.45 0.17 12/3/2025 6 06251A2Q2 BANK HAPOALIM B M NEW YORK C 0.8% 205,000 0.500 12/14/2020 12/15/2025 NR 0.50 0.50 0.20 12/15/2025 7 48128UTP4 JPMORGAN CHASE BK N A CD 1.0% 248,000 0.500 12/15/2020 12/15/2025 NR 0.50 0.50 0.20 Semi-Annual 12/15/2025 8 25844MAM0 DORT FINL CR UN GRAND BLAN 1.0% 247,000 4.500 1/10/2023 1/12/2026 NR 4.50 4.50 0.28 1/12/2026 9 912797RJ8 US TREASURY BILL 0.4% 97,000 0.000 9/26/2025 1/15/2026 NR 3.73 3.73 0.29 1/15/2026 10 31422B6K1 FAMCA 0.4% 95,000 0.480 1/27/2021 1/15/2026 AA+ 0.40 0.40 0.28 1/15/2026 11 530520AA3 LIBERTY FIRST CR UN LINCOLN NE 1.0% 249,000 4.550 1/17/2023 1/20/2026 NR 4.55 4.55 0.30 1/20/2026 12 45581ECE9 INDUSTRIAL &COML BK CHINA 1.0% 249,000 0.450 2/11/2021 2/11/2026 NR 0.45 0.45 0.35 2/11/2026 13 552249CG7 LYONS NATL BK N Y CD 0.9% 244,000 4.750 3/15/2023 3/16/2026 NR 4.75 4.75 0.45 3/16/2026 14 89789AAJ6 TRULIANT FEDERAL CREDIT UNI 1.0% 247,000 5.000 3/28/2023 3/27/2026 AA+ 5.00 5.00 0.48 3/27/2026 15 3133EMZC9 FFCB 0.7% 170,000 0.875 5/13/2021 5/13/2026 10/7/2025 AA+ 0.84 0.84 0.60 Anytime (293) 5/13/2026 16 91282CCF6 T 1.0% 250,000 0.750 7/16/2021 5/31/2026 AAA 0.70 0.70 0.65 5/31/2026 17 02007GSU8 ALLY BK SANDY UTAH CD 1.0% 246,000 3.000 6/9/2022 6/9/2026 NR 3.00 3.00 0.67 6/9/2026 18 90348JN48 UBS BK USA SALT LAKECITY UT CD 1.0% 249,000 0.750 6/23/2021 6/23/2026 NR 0.75 0.75 0.72 6/23/2026 19 649447UZ0 FLAGSTAR BK NATL ASSN HICKS 1.0% 249,000 0.700 6/30/2021 7/1/2026 NR 0.70 0.70 0.73 7/1/2026 20 25460FDV5 DIRECT FED CR UN NEEDHAM MA 1.0% 249,000 4.750 11/7/2022 11/9/2026 NR 4.75 4.75 1.07 11/9/2026 21 07181JAV6 BAXTER CR UN VERNON HILLS ILL 1.0% 248,000 5.000 11/28/2022 11/30/2026 NR 5.00 5.00 1.13 11/30/2026 22 87164WH84 SYNCHRONY BANK CD 1.0% 248,000 1.250 12/10/2021 12/10/2026 NR 1.25 1.25 1.15 12/10/2026 23 052392CH8 AUSTIN TELCO FED CR UN TEX 1.0% 249,000 4.950 12/16/2022 12/16/2026 NR 4.95 4.95 1.17 12/16/2026 24 3133ENKG4 FFCB 2.1% 530,000 1.470 1/31/2022 1/11/2027 10/7/2025 AA+ 1.67 1.67 1.24 Anytime (221) 1/11/2027 25 3133ENKG4 FFCB 0.4% 97,000 1.470 1/27/2022 1/11/2027 10/7/2025 AA+ 1.67 1.67 1.24 Anytime (221) 1/11/2027 26 15118RE78 CELTIC BK SALT LAKE CITY UTAH 1.0% 249,000 4.700 3/17/2023 3/17/2027 NR 4.70 4.70 1.41 3/17/2027 27 32116QBK1 FIRST NATL BK MIDDLETENN CD 0.9% 244,000 4.450 5/23/2023 5/19/2027 NR 4.45 4.45 1.54 5/19/2027 28 254673G34 CAPITAL ONE NATL ASSN VA CD 1.0% 246,000 3.150 6/7/2022 6/7/2027 NR 3.15 3.15 1.60 6/7/2027 29 58404DSN2 MEDALLION BK UTAH CD 1.0% 249,000 4.500 6/16/2023 6/16/2027 NR 4.50 4.50 1.64 6/16/2027 30 438649AJ4 HONOLULU FIRE DEPT FED CR UN 1.0% 249,000 4.650 6/22/2023 6/22/2027 NR 4.65 4.65 1.65 6/22/2027 Portfolio Details - Sorted by Maturity
Maturity Distribution
11.8%
9.9%
8.1%
23.3%
17.9%
29.0%
0.0% 0.0% 0.0% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
0 - 3mo 3 - 6mo 6 - 12mo 1 - 2yr 2 - 3yr 3 - 4yr 4 - 5yr 5 - 7yr 7 - 10yr Over 10yr 7 Report Date: 9/30/2025
PGCC 11-19-2025
53 City Of Pacific Grove
Portfolio Details - Sorted by Maturity
31 02589ADB5 AMERICAN EXPRESS NATL BK BR 1.0% 246,000 3.250 7/13/2022 7/13/2027 NR 3.25 3.25 1.70 7/13/2027 32 90352RCU7 USALLIANCE FCU RYE NEW YORK 1.0% 249,000 4.000 9/30/2022 9/30/2027 NR 4.00 4.00 1.91 9/30/2027 33 31422XH70 FAMCA 1.3% 334,000 3.790 11/22/2023 10/4/2027 AA+ 4.50 4.50 1.88 10/4/2027 34 914098DJ4 UNIVERSITY BK ANN ARBOR MICH 1.0% 249,000 4.200 11/30/2022 11/30/2027 NR 4.20 4.20 2.06 11/30/2027 35 01664MAB2 ALL IN FEDERAL CREDIT UNION AL 1.0% 249,000 4.400 12/20/2022 12/20/2027 NR 4.40 4.40 2.11 12/20/2027 36 51828MAC8 LATINO CMNTY CR UN DURHAM NOR 1.0% 249,000 4.500 12/21/2022 12/21/2027 NR 4.50 4.50 2.11 12/21/2027 37 45157PAZ3 IDEAL CR UN WOODBURYMN 1.0% 249,000 4.500 12/29/2022 12/29/2027 NR 4.50 4.50 2.13 12/29/2027 38 01882MAA0 ALLIANT CR UN CHICAGO IL 1.0% 249,000 4.850 12/30/2022 12/30/2027 NR 4.85 4.85 2.13 12/30/2027 39 82671DAB3 SIGNATURE FED CR UN ALEXANDRIA 1.0% 249,000 4.400 1/31/2023 1/31/2028 NR 4.40 4.40 2.19 1/31/2028 40 61690U3L2 MORGAN STANLEY BK N A CD 0.9% 244,000 4.900 3/24/2023 3/23/2028 NR 4.90 4.90 2.32 3/23/2028 41 91527PBW6 UNIVEST NATL BK TR SOUDERTON 1.0% 249,000 4.100 5/5/2023 5/5/2028 NR 4.10 4.10 2.44 5/5/2028 42 3130AXEL8 FEDERAL HOME LOAN BANK M1-2028 1.0% 250,000 4.750 10/31/2023 9/8/2028 AA+ 4.77 4.77 2.72 9/8/2028 43 3133EPF91 FFCB 1.9% 500,000 4.500 11/27/2023 11/27/2028 AA+ 4.40 4.40 2.88 11/27/2028 44 3130AYJ31 FEDERAL HOME LOAN BANK TU-2029 1.0% 250,000 4.375 1/17/2024 1/17/2029 7/17/2026 AA+ 4.24 4.12 0.77 71 7/17/2026 45 3133EPW84 FFCB 2.9% 750,000 3.875 1/18/2024 1/18/2029 AA+ 3.92 3.92 3.04 1/18/2029 46 3133ERQD6 FFCB 1.9% 500,000 3.625 8/20/2024 2/20/2029 AA+ 3.61 3.61 3.14 2/20/2029 47 3133EP5J0 FFCB 1.9% 500,000 4.125 3/21/2024 3/12/2029 AA+ 4.22 4.22 3.18 3/12/2029 48 3133EPXV2 FFCB 1.9% 500,000 4.625 4/26/2024 4/5/2029 AA+ 4.65 4.65 3.15 4/5/2029 49 3133EPXV2 FFCB 0.7% 180,000 4.625 4/30/2024 4/5/2029 AA+ 4.66 4.66 3.15 4/5/2029 50 3133ERKX8 FFCB 3.9% 1,000,000 4.250 7/22/2024 7/12/2029 AA+ 4.09 4.09 3.43 7/12/2029 TOTAL and AVERAGES 100.0% 25,794,535 1.88 yrs 1.77 yrs 3.37 3.37 1.71 * Semi-Annual interest payment ** Yields calculated using cost price, at settlement date *** Ratings Shown Are: Lowest Rating in S&P format, NR AGY = Non-Rated U.S. Government Agency 8 Report Date: 9/30/2025
PGCC 11-19-2025
54 City Of Pacific Grove
FOR INSTITUTIONAL INVESTOR USE ONLY
Callables purchased at Discount
3133EKPP5
3133EKTT3
* Securities only
Unrealized
# CUSIP/Sec-ID Sec Desc 1 Cpn Mat Dt Par Value Cost Purch Px Book Val Book Px Book YTM Mkt Val Mkt Px Mkt YTM Gain/Loss 1 91282CAM3 TREAS SER AD-202 0.25 9/30/2025 250,000 246,367 98.55 250,000 100.00 249,118 99.65 0.60 (882) 2 05580AXU3 BMW BK NORTH AMER SALT LAKE 0.50 11/20/2025 249,000 249,000 100.00 249,000 100.00 0.50 244,476 98.18 13.84 (4,524) 3 88241TJN1 TEXAS EXCHANGE BK CROWLEY CD0.60 11/25/2025 249,000 249,000 100.00 249,000 100.00 0.60 246,693 99.07 6.75 (2,307) 4 108622LL3 BRIDGEWATER BK ST LOUIS PK M 0.45 11/28/2025 249,000 249,000 100.00 249,000 100.00 0.45 244,291 98.11 12.48 (4,709) 5 02357QAN7 AMERANT BK NATL ASSNCORAL CD 0.45 12/3/2025 249,000 249,000 100.00 249,000 100.00 0.45 244,127 98.04 11.81 (4,873) 6 06251A2Q2 BANK HAPOALIM B M NEW YORK C0.50 12/15/2025 205,000 205,000 100.00 205,000 100.00 0.50 201,337 98.21 9.26 (3,663) 7 48128UTP4 JPMORGAN CHASE BK N A CD 0.50 12/15/2025 248,000 248,000 100.00 248,000 100.00 0.50 245,282 98.90 5.83 (2,718) 8 25844MAM0 DORT FINL CR UN GRAND BLAN 4.50 1/12/2026 247,000 247,000 100.00 247,000 100.00 4.50 247,267 100.11 4.07 267 9 912797RJ8 US TREASURY BILL 0.00 1/15/2026 97,000 95,920 98.89 95,950 98.92 3.73 95,907 98.87 3.92 (44) # 31422B6K1 FAMCA 0.48 1/15/2026 95,000 95,373 100.39 95,022 100.02 0.40 93,680 98.61 5.31 (1,342) # 530520AA3 LIBERTY FIRST CR UN LINCOLN NE 4.55 1/20/2026 249,000 249,000 100.00 249,000 100.00 4.55 249,334 100.13 4.10 334 # 45581ECE9 INDUSTRIAL &COML BK CHINA0.45 2/11/2026 249,000 249,000 100.00 249,000 100.00 0.45 242,329 97.32 8.02 (6,671) # 552249CG7 LYONS NATL BK N Y CD 4.75 3/16/2026 244,000 244,000 100.00 244,000 100.00 4.75 244,673 100.28 4.13 673 # 89789AAJ6 TRULIANT FEDERAL CREDIT UNI 5.00 3/27/2026 247,000 247,000 100.00 247,000 100.00 5.00 248,354 100.55 3.86 1,354 # 3133EMZC9 FFCB 0.88 5/13/2026 170,000 170,291 100.17 170,036 100.02 0.84 166,376 97.87 4.40 (3,661) # 91282CCF6 T 0.75 5/31/2026 250,000 250,596 100.24 250,082 100.03 0.70 244,033 97.61 4.42 (6,049) # 02007GSU8 ALLY BK SANDY UTAH CD 3.00 6/9/2026 246,000 246,000 100.00 246,000 100.00 3.00 242,777 98.69 4.95 (3,223) # 90348JN48 UBS BK USA SALT LAKECITY UT CD 0.75 6/23/2026 249,000 249,000 100.00 249,000 100.00 0.75 239,797 96.30 5.96 (9,203) # 649447UZ0 FLAGSTAR BK NATL ASSN HICKS 0.70 7/1/2026 249,000 249,000 100.00 249,000 100.00 0.70 239,573 96.21 5.93 (9,427) # 25460FDV5 DIRECT FED CR UN NEEDHAM MA 4.75 11/9/2026 249,000 249,000 100.00 249,000 100.00 4.75 250,803 100.72 4.08 1,803 # 07181JAV6 BAXTER CR UN VERNON HILLS ILL 5.00 11/30/2026 248,000 248,000 100.00 248,000 100.00 5.00 251,306 101.33 3.83 3,306 # 87164WH84 SYNCHRONY BANK CD 1.25 12/10/2026 248,000 248,000 100.00 248,000 100.00 1.25 237,311 95.69 5.01 (10,689) # 052392CH8 AUSTIN TELCO FED CR UN TEX 4.95 12/16/2026 249,000 249,000 100.00 249,000 100.00 4.95 251,712 101.09 4.02 2,712 # 3133ENKG4 FFCB 1.47 1/11/2027 530,000 524,988 99.05 528,659 99.75 1.67 508,053 95.86 4.84 (20,606) # 3133ENKG4 FFCB 1.47 1/11/2027 97,000 96,081 99.05 96,755 99.75 1.67 92,983 95.86 4.84 (3,771) # 15118RE78 CELTIC BK SALT LAKE CITY UTAH 4.70 3/17/2027 249,000 249,000 100.00 249,000 100.00 4.70 251,211 100.89 4.07 2,211 Agency Distribution Callable Breakdown Portfolio Composition * Amortization/Accretion Book Calculations
91.7%
8.3%
FFCB Other
41.0%
4.1%
54.8%
Agencies Treasuries Certificates of Deposit
9.0%
91.0%
Callable Non-Callable
48.5%
As percent of
Callables
4.4%
As percent of
Portfolio
9 Report Date: 9/30/2025
PGCC 11-19-2025
55 City Of Pacific Grove
Amortization/Accretion Book Calculations
# 32116QBK1 FIRST NATL BK MIDDLETENN CD 4.45 5/19/2027 244,000 244,000 100.00 244,000 100.00 4.45 245,240 100.51 4.12 1,240 # 254673G34 CAPITAL ONE NATL ASSN VA CD 3.15 6/7/2027 246,000 246,000 100.00 246,000 100.00 3.15 241,218 98.06 4.36 (4,782) # 58404DSN2 MEDALLION BK UTAH CD 4.50 6/16/2027 249,000 249,000 100.00 249,000 100.00 4.50 250,666 100.67 4.09 1,666 # 438649AJ4 HONOLULU FIRE DEPT FED CR UN 4.65 6/22/2027 249,000 249,000 100.00 249,000 100.00 4.65 251,413 100.97 4.07 2,413 # 02589ADB5 AMERICAN EXPRESS NATL BK BR 3.25 7/13/2027 246,000 246,000 100.00 246,000 100.00 3.25 241,481 98.16 4.33 (4,519) # 90352RCU7 USALLIANCE FCU RYE NEW YORK 4.00 9/30/2027 249,000 249,000 100.00 249,000 100.00 4.00 248,046 99.62 4.20 (954) # 31422XH70 FAMCA 3.79 10/4/2027 334,000 325,656 97.50 329,487 98.65 4.50 334,290 100.09 3.74 4,803 # 914098DJ4 UNIVERSITY BK ANN ARBOR MICH 4.20 11/30/2027 249,000 249,000 100.00 249,000 100.00 4.20 249,147 100.06 4.17 147 # 01664MAB2 ALL IN FEDERAL CREDIT UNION AL 4.40 12/20/2027 249,000 249,000 100.00 249,000 100.00 4.40 251,724 101.09 3.88 2,724 # 51828MAC8 LATINO CMNTY CR UN DURHAM NOR4.50 12/21/2027 249,000 249,000 100.00 249,000 100.00 4.50 252,581 101.44 3.82 3,581 # 45157PAZ3 IDEAL CR UN WOODBURYMN 4.50 12/29/2027 249,000 249,000 100.00 249,000 100.00 4.50 252,638 101.46 3.82 3,638 # 01882MAA0 ALLIANT CR UN CHICAGO IL 4.85 12/30/2027 249,000 249,000 100.00 249,000 100.00 4.85 254,591 102.25 3.80 5,591 # 82671DAB3 SIGNATURE FED CR UN ALEXANDRIA4.40 1/31/2028 249,000 249,000 100.00 249,000 100.00 4.40 252,182 101.28 3.82 3,182 # 61690U3L2 MORGAN STANLEY BK N A CD 4.90 3/23/2028 244,000 244,000 100.00 244,000 100.00 4.90 248,416 101.81 4.12 4,416 # 91527PBW6 UNIVEST NATL BK TR SOUDERTON 4.10 5/5/2028 249,000 249,000 100.00 249,000 100.00 4.10 248,305 99.72 4.21 (695) # 3130AXEL8 FEDERAL HOME LOAN BANK M1-20284.75 9/8/2028 250,000 249,783 99.91 249,865 99.95 4.77 258,008 103.20 3.59 8,143 # 3133EPF91 FFCB 4.50 11/27/2028 500,000 502,222 100.44 501,433 100.29 4.40 507,345 101.47 4.00 5,912 # 3130AYJ31 FEDERAL HOME LOAN BANK TU-20294.38 1/17/2029 250,000 251,500 100.60 251,010 100.40 4.24 249,013 99.61 4.50 (1,998) # 3133EPW84 FFCB 3.88 1/18/2029 750,000 748,500 99.80 748,944 99.86 3.92 743,085 99.08 4.18 (5,859) # 3133ERQD6 FFCB 3.63 2/20/2029 500,000 500,309 100.06 500,223 100.04 3.61 490,995 98.20 4.20 (9,228) # 3133EP5J0 FFCB 4.13 3/12/2029 500,000 497,883 99.58 498,480 99.70 4.22 499,825 99.97 4.14 1,345 # 3133EPXV2 FFCB 4.63 4/5/2029 500,000 499,400 99.88 499,566 99.91 4.65 511,190 102.24 3.94 11,624 # 3133EPXV2 FFCB 4.63 4/5/2029 180,000 179,759 99.87 179,825 99.90 4.66 184,028 102.24 3.94 4,203 # 3133ERKX8 FFCB 4.25 7/12/2029 1,000,000 1,007,345 100.73 1,005,677 100.57 4.09 1,003,370 100.34 4.15 (2,307) TOTAL and AVERAGES 14,395,000 14,383,971 14,393,014 3.36 14,341,598 4.81 (51,415) 10 Report Date: 9/30/2025
PGCC 11-19-2025
56 Agenda No. 8 C
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Staphany Arriola, Management Analyst (Confidential) MEETING DATE: November 19, 2025
SUBJECT: Community Human Services Highlights for October 16, 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Receive the highlights.
Attachments
CHS Highlights
PGCC 11-19-2025
57 HIGHLIGHTS OF
REGULAR BOARD MEETING
October 16, 2025
1. Mary Ann Carbone, Board Chair, called the meeting to order at 11:08 a.m. at the City Hall of Sand City.
2. Board approved Consent items: September 18, 2025 Board minutes and Disbursements for the period of September 1, 2025 through September 30, 2025, in the amount of $1,252,988.38
3. The Board received a Aduit update presentation from Chavan and Associates, LLP.
4. Robin McCrae, CEO, report was included in the board packet for review.
5. Shawn Stone, COO gave a construction project update. Shawn attended the Continuum of Care meeting focused on homeless services across Monterey County to discuss the recent executive order impacting homeless services and CoC funding. Shawn along with Sr. PO Marta Sullivan prepared a comprehensive presentation on our Adolescent Drug Treatment Program and other youth SUD services for the recent Superintendents Council Meeting. COO report was also included in the board packet for review.
6. Carol Harney, Development Director gave a brief overview of the Development Team's reports.
Carol also gave a pitch regarding Monterey County Gives!
7. Annette Yee-Steck, Finance Committee Chair, reported that the Finance Committee met earlier in the day. The dashboard is looking good with a net income of $310K. Account Receivable County over 60 days went up to $513K, since this report the County had made a payment of $500K. All JPA Allocations payments have been made!
8. Mary Ann Carbone, Board Chair, reported out for the Transition Committee. The Transition Committee met with Suzy Cowen of Kittleman & Associates on Friday, September 26th. We discussed several items including the schedule for the search and next steps. The next major step is to finalize the Position Guide which will be used to advertise the CEO position to potential candidates. A draft of the Position Guide will be presented to the Transition Committee by Kittleman on October 14th. The Committee will provide comments to Suzy and the Position Guide will be finalized and distributed on Monday, October 20th. The position Guide and Salary range is included in the agenda for approval.
9. Alex Miller, Facilities Committee member, reported that the Committee met to discuss action item K.2 Family Service Centers – Patio & Carport Project and K.3 Off Main Expansion which is included in the agenda for review & approval.
10. The Board approved the Transition Committee’s recommended salary range for the new CEO of $185,000 - $245,000.
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58 11. The Board approved the Facilities Committee’s recommendation to accept the bid from David Construction in the amount of $169,353, plus a 25% contingency, for a total not-to-exceed amount of $212,000.
12. The Board approved the Facility Committee’s recommendation to sign the lease for 1079 South Main Street, add $2,000 per month to the budget for the additional lease amount, authorize one-time facility improvements not to exceed $96,000, and terminate the lease at 47 San Miguel Avenue.
13. Shawn Stone, COO, gave a PowerPoint presentation regarding 5-year Funding Projection for the Substance Use Disorder & Mental Health Services.
14. Mary Ann Carbone encouraged Board Members to contribute to the MC Gives campaign.
15. The meeting adjourned at 1:05 p.m.
The next regular board meeting is scheduled for Thursday, November 20, 2025 from 11:00 a.m. to 1:00 p.m. at the Sand City City Hall, Sand City, CA.
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59 Agenda No. 8 D
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Staphany Arriola, Management Analyst (Confidential) MEETING DATE: November 19, 2025
SUBJECT: Monterey Salinas Transit Meeting Minutes for October 13, 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Receive the minutes.
Attachments
MST Minutes
PGCC 11-19-2025
60 Agenda # 3-2
November 10, 2025 Meeting
MEETING OF THE MST BOARD OF DIRECTORS
Meeting Minutes
October 13, 2025
10:00 a.m. (Pacific)
Present: Mary Ann Carbone, Chair City of Sand City
Lorraine Worthy, Vice Chair City of Gonzales
Bob Delves City of Carmel-by-the-Sea
Kim Shirley City of Del Rey Oaks
Liesbeth Visscher City of Marina
Ed Smith City of Monterey
Joe Amelio City of Pacific Grove
Tony Barerra City of Salinas
Dave Pacheco City of Seaside
Luis Alejo County of Monterey
Absent: Ariana Rodriguez City of Greenfield
Mike LeBarre City of King
Fernando Cabrera City of Soledad
Counsel: Michael D. Laredo General Counsel, De Lay & Laredo Staff: Carl Sedoryk General Manager/CEO
Lisa Rheinheimer Deputy CEO
Michael Kohlman Chief Information Officer
Norman Tuitavuki Chief Operating Officer
Michelle Overmeyer Director of Planning and Innovation
Jeanette Alegar-Rocha Deputy Secretary/Clerk to the Board Andrea Williams Finance Manager
Beronica Carriedo C/S and Community Relations Supervisor Cristy Sugabo Mobility Manager
Christine Church Compliance Officer
Danitza Lopez Human Resources Assistant
Ezequiel Rebolla Systems Engineer
Hector Suarez Payroll Specialist
Ikuyo Yoneda-Lopez Marketing and Communications Manager Jacob Huggins IT Specialist
Jacob Newman Communications Specialist
Jason Anderson Drug and Alcohol Coordinator
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61 Jose Sanchez Barajas Assistant Planner
Kelly Soriano Mobility Specialist
Luiza Hatlestad Mobility Specialist
Melissa Valadez HR Supervisor
Natalie Flores Associate Planner
Paul Lopez Facilities Manager
Rolando Munoz Mobility Specialist
Scott Taylor Information Technology Manager
Steven Bruno Purchasing Agent
Susie Flores Grants Analyst
Ursulla Scardina Communications Specialist
Vince Dance Project Management Coordinator
Yasmin Guevarra HR Assistant
Public: Michelle Adams City of Sand City Alternate
Emily Paz RIDES Customer
Christopher Wilmot Member of the Public
Andrew Brown Member of the Public
Rebecca Irwin Member of the Public
Jasmine Mejia-Cortes County of Monterey
Linda Gonzales County of Monterey
Christina Watson TAMC
1. CALL TO ORDER
1-1. Roll Call.
1-2. Pledge of Allegiance
Chair Carbone called the meeting to order at 10:06 a.m. Roll call was taken and a quorum established. Director Dave Pacheco led the pledge of allegiance. 1-3. Highlights of the agenda. (Carl Sedoryk)
General Manager/CEO, Carl Sedoryk reviewed highlights of the Agenda.
2. PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA
Emily Paz member of the public and RIDES customer commented on the need to retain coach drivers by increasing their wages. She also commented on the need to increase the number of customer service representatives to schedule RIDES.
Christopher Wilmot, a member of the public commented that more routes are needed and agreed that coach drivers wages should be increased.
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62 Andrew Brown, a member of the public commented that the length of time for his bus route to travel from South County to CSUMB is too long.
3. CONSENT AGENDA
These items will be approved by a single motion. Anyone may request that an item be discussed and considered separately.
3-1. Financial Reports – August 2025 (Lori Lee) (Page 9) a) Accept Report of August 2025 Cash Flow
b) Approve August 2025 Disbursements
c) Accept report of August 2025 Treasury Transactions
3-2. Approve Minutes of the MST Board Meeting September 8, 2025. (Jeanette Alegar-Rocha) (Page 21)
3-3. Receive Draft Minutes of the MST Board Administrative Performance Committee Meeting on September 8, 2025. (Jeanette Alegar-Rocha) (Page 27)
3-4. Adopt Resolution 2026-06 Recognizing Ezequiel Rebollar, Systems Engineer as Employee of the Month for October 2025. (Michael Kohlman) (Page 31)
3-5. Authorize the General Manager/CEO or Their Designee to Purchase 22 Paratransit Replacement Vehicles for MST’s RIDES Program from Model 1 in an Amount Not to Exceed $2,782,000. (Norman K. Tuitavuki) (Page 33)
3-6. Authorize the General Manager/CEO, or Their Designee to Execute an Agreement with Denise Duffy and Associates for Habitat Mitigation Monitoring Program Services in Support of Coastal Development Permit Conditions for the SURF! Project in an Amount not to Exceed $310,000. (Lisa Rheinheimer) (Page 35)
3-7. Approve Updates to MST’s Public Transportation Agency Safety Plan (PTASP). (Jarred August) (Page 37)
3-8. Authorize the General Manager/CEO or Their Designee to Execute Contracts Related to a Transportation Agency for Monterey County Enhancing Mobility Innovation Project Award in an Amount not to Exceed $449,860. (Michael Kohlman) (Page 69)
3-9. Approve 3.0% FY 2025 Incentive Pay Pool for Eligible Monterey-Salinas Transit Employee Association (MSTEA) and Confidential Unit Employees (Excluding the General Manager/CEO). (Carl Sedoryk) (Page 71) PGCC 11-19-2025
63 3-10. Receive Report Describing the Transfer of Four (4) Retired MCI Over-theRoad Coaches – Two (2) to San Joaquin Regional Transit District (SJRTD) and Two (2) to Stanislaus Regional Transit Authority (StanRTA). (Norman Tuitavuki) (Page 73)
3-11. Authorize the General Manager/CEO or Their Designee to Enter into a Three (3) Year Contract with Advanced Chemical Transport, LLC, with the Option to Extend for Two (2) Additional One (1) Year Terms, for the Transportation and Disposal of Hazardous Waste in an Amount Not to Exceed $535,500, Including Option Years. (Paul Lopez/Steven Bruno) (Page 75)
3-12. Reject Claim by the Claimant Moises Sarabia Lopez. (Jarred Augusta) (Page 77)
3-13. Reject Claim by the Claimant Yesenia Lopez Perez. (Jarred Augusta) (Page 79)
3-14. Reject Claim by the Claimant Zuleyka Sarabia Lopez. (Jarred Augusta) (Page 81)
3-15. Reject Claim by the Claimant Yesenia Sarabia Lopez. (Jarred Augusta) (Page 83)
3-16. Authorize the General Manager/CEO or Their Designee to Purchase Four (4) Ford Trucks at the Lowest Price/Best Options Available at the Time of Purchase in an Amount not to Exceed $370,000. (Norman K. Tuitavuki) (Page 85)
End of Consent Agenda
There were no public comments on the Consent Agenda.
On a motion by Director Alejo and seconded by Director Amelio, the Board unanimously approved the Consent Agenda with Directors Cabrera, LeBarre and Rodriguez noted as absent.
4. RECOGNITIONS AND SPECIAL PRESENTATIONS
4-1. October 2025 Employee of the Month – Ezequiel Rebollar, Systems Engineer. (Michael Kohlman)
4-2. 30 Year Service Recognition—James Lopez, Mechanic A. (Norman Tuitavuki)
4-3. The Wright Way Awards Recognition. (Kelly Halcon) (Page 87) PGCC 11-19-2025
64 5. PUBLIC HEARINGS
None.
6. ACTION ITEMS
6-1. Receive 1st Draft 2026-2030 Strategic Plan and Provide Comment. (Carl Sedoryk) (Page 89)
The Board received a public comment emailed by Rebecca Irwin with a suggestion that every stop be announced both with a recording and with a visible message on the light board inside. It would be attractive to tourists and new riders and also improve bus riding for people with visual or auditory difficulties.
It may be possible to apply for ADA funding for this improvement.
The Board members provided comments to staff.
REPORTS & INFORMATION ITEMS
The Board will receive and file these reports, which do not require action by the Board. 7-1. General Manager/CEO Monthly Report – August 2025 (Page 91) 7-2. Federal Legislative Advocacy Report – (Page 111)
7-3. State Legislative Advocacy Update – (Page 115)
7-4. Staff Trip Reports – (Pages 119-131)
7-5. Correspondence – (Page 133-135)
Lorraine Worthy left the meeting at 11:05 a.m.
7. BOARD REPORTS, COMMENTS, AND REFERRALS
8-1. Reports on Meetings Attended by Board Members at MST Expense. (AB 1234)
8-2. Board Member Comments and Announcements.
8-3. Board Member Referrals for Future Agendas.
8. ATTACHMENTS
9-1. The Monthly Report for August 2025 can be viewed online:
http://mst.org/about-mst/board-of-directors/board-meetings/
9. CLOSED SESSION
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65 Comments from the public will not receive Board action. Comments must deal with matters on the Closed Session agenda and will be limited to three minutes. 10-1. Review General Manager/CEO Performance Evaluation Gov. Code § 54957.6. (Mary Ann Carbone/Michael Laredo) (No Enclosure) Michael Laredo, MST General Counsel, reported that the Board met and discussed closed session item 10-1. This item will be returned for action on an agenda at a future date.
10-2. Conference with Real Property Negotiators – Gov. Code § 54956.8 APN#s: 003-051-086, 003-051-087, 003-051-072, and 003-863-040 in Salinas, CA and 031-151-024-000 in Seaside, CA.
MST Negotiators: Carl Sedoryk, General Manager/CEO
Under Negotiation: Price and Terms.
Michael Laredo, MST General Counsel, reported that the Board met and discussed closed session item 10-2. General discussion was held on the Salinas properties with no reportable action. General Discussion was held on the Seaside property and the item will return at a future meeting for action.
10. ADJOURN
With no further business to discuss, Chair Carbone adjourned the meeting at 12:17 p.m. (Pacific).
Prepared by: ___________________Reviewed by: __________________ Jeanette Alegar-Rocha Carl G. Sedoryk
Deputy Secretary/Clerk to the Board General Manager/CEO PGCC 11-19-2025
66 Agenda No. 9 A
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: November 19, 2025
SUBJECT: Extension of Agreement with The Pun Group LLP for Independent Financial Audit Services
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Approve an Extension of Agreement with The Pun Group LLP for Independent Financial Audit Services for two additional Fiscal Years through March 31, 2028
DISCUSSION
The City is required to conduct an annual independent financial audit in accordance with generally accepted auditing standards. To ensure that the City continues to receive the best audit services at the most competitive price, a Request for Proposal was previously issued soliciting proposals. The scope of services for the City Audit Services RFP included:
City Audit, Annual Comprehensive Financial Report (ACFR), and Management Letters State Controller's Annual Street Report & Financial Transactions Report Measure X Compliance Report
Single Audit and Single Audit Report
Annual Appropriations Limit (GANN) Review and Report
The audit firms were evaluated on the following criteria:
Understanding of the audit scope of services
Experience in conducting audits with similar local government agencies Education, work experience, and directly related audit experience Price
References
Upon staff presentation of the results from the RFP, the City Council selected the Pun Group to perform these services for the City. The executed contract was for a three year period for Fiscal Years 2022-23 through 2024-25, with the option to extend annually for two additional one year periods upon mutual written agreement. The Pun Group has proposed two one year extensions of $66,000 for Fiscal Year 2025-26 and $68,000 for Fiscal Year 2026-27, approximately a 3% increase for each of those two fiscal years and in line with the Bay Area Consumer Price Index, which was 2.5% for the year ended August 31, 2025. The fees are based on the audit of one major program for Single audit. The fee for auditing additional major programs will be $5,500 each. The number of programs determined to be PGCC 11-19-2025
67 auditing additional major programs will be $5,500 each. The number of programs determined to be “major” will be based on OMB Uniform Guidance. The Engagement Team will discuss this with the City of Pacific Grove’s management before starting Single Audit work.
The Pun Group has been providing local government auditing services for a number of years and also provides general guidance related to the implementation of new accounting standards and responds to accounting questions during the contract period.
Staff is recommending extending the contract for two years with the Pun Group, based upon their responsiveness, competitive pricing, and familiarity with our operations as displayed during their audits of the prior two fiscal years and for our most recent audit, anticipated to be completed by December 2025. A copy of the current contract and proposed amendment is included with this staff report.
OPTIONS
Approve the amendment to the Contract
Provide Alternate Direction
FINANCIAL IMPACT:
The fiscal impact would be $66,000 and $68,000 over the two year period, to be paid beginning in July 2026 for Fiscal Years 2025-26 and 2026-27.
FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
Contract Amendment
Original Vendor Contract-The Pun Group LLP-1_31_2026
PGCC 11-19-2025
68 AMENDMENT #_1_
AGREEMENT FOR VENDOR SERVICES WITH The Pun Group LLP
WHEREAS, the City of Pacific Grove (“City”) and The Pun Group LLP (“Contractor”) entered into a Vendor Services Agreement (“Agreement”) dated July 1, 2023; and WHEREAS, the City and Contractor desire to amend certain terms of the Agreement; NOW, THEREFORE, the parties agree as follows:
A. The Agreement is amended as follows:
This Agreement shall continue in effect until the tasks described below are completed, but in no event shall be later than March 31, 2028. The price for the audits for Fiscal Years 2025-26 and 2026-27 shall be $66,000 and $68,000 respectively, and include the following services:
• City Audit, Annual Comprehensive Financial Report (ACFR), and Management Letters • State Controller's Annual Street Report & Financial Transactions Report • Measure X Compliance Report
• Single Audit and Single Audit Report
• Annual Appropriations Limit (GANN) Review and Report
Fees for the Single Audit and its report are based on one (1) major program. The fee for auditing additional major programs will be $5,500 each. The number of programs determined to be “major” will be based on OMB Uniform Guidance. The Engagement Team will discuss this with the City of Pacific Grove’s management before starting Single Audit work.
B. All other terms of the Agreement remain the same.
Dated: ____________________
Dated: _____________________
________________________________
Contractor, Title
_________________________________
Administrative Services Director Name/ Title
Dated: ____________________
Dated: _____________________
________________________________
City Attorney Name, Title
_________________________________
City Manager or Mayor
PGCC 11-19-2025
69 Professional Services Agreement 07.19.2022
CITY OF PACIFIC GROVE
PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICE AGREEMENT (“ PSA”) FOR NON-CONSTRUCTION PROJECTS (“ Agreement”), is made and effective as of July 01 2023, between the City of Pacific Grove (“ City”), a municipal corporation and The Pun Group, LLP, a limited liability partnership CONSULTANT”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. TERM
This Agreement shall commence on July 01, 2023 and shall remain and continue in effect until the tasks described herein are completed, but in no event later than January 31, 2026, unless sooner terminated pursuant to the provisions of this Agreement. Upon mutual written agreement, the term of this Agreement can be extended annually for two (2) additional one (1) year periods.
2. SCOPE OF WORK
CONSULTANT shall perform the tasks and services (“ Services”) described and set forth in Exhibit A, Scope of Services, attached hereto and incorporated herein as though set forth in full. CONSULTANT shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. To the extent that Exhibit A is a proposal from CONSULTANT, such proposal is incorporated only for the description of the Scope of Services and no other terms and conditions from any such proposal shall apply to this Agreement unless specifically agreed to in writing.
3. PERFORMANCE
CONSULTANT shall at all times faithfully, competently and to the best of their ability, experience, and talent, perform all Services described herein. CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of CONSULTANT hereunder in meeting their obligations under this Agreement.
4. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL
CONSULTANT is bound by the contents of City’ s Request for Proposal on file hereto and incorporated herein as Exhibit D, and the contents of the proposal submitted by CONSULTANT, available on file in the City Clerk’ s Office, hereto and incorporated herein as Exhibit E. In the event of conflict, the requirements of City’ s Request for Proposals and this Agreement shall take precedence over those contained in CONSULTANT’ s proposals.
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5. CITY MANAGEMENT
The City Manager, or their designee, shall represent City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by CONSULTANT, but not including the authority to enlarge the Scope of Work or change the compensation due to CONSULTANT. The City Manager shall be authorized to act on City’ s behalf and to execute all necessary documents that enlarge the Scope of Work or change CONSULTANT’ s compensation, subject to Section 6 hereof.
6. PAYMENT
a. The City agrees to pay CONSULTANT monthly, in accordance with the payment rates and terms and the Payment Schedule as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed Sixty Thousand and Five Hundred dollars 60,500.00) for the first year of the agreement, with a 3% increase for subsequent years, for the total term of the Agreement unless additional payment is approved as provided in this Agreement.
b. The City Manager’ s contract authority is limited to $39,999.99, which includes all costs.
Contracts, including any contract amendments that exceed the total threshold, require City Council approval. Any contracts, including contract amendments that exceed the total threshold, which do not have City Council approval, shall be void. c. CONSULTANT shall not be compensated for any Services rendered in connection with its performance of this Agreement that are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager or the City Council. CONSULTANT shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and CONSULTANT at the time City’ s written authorization is given to CONSULTANT for the performance of said services. d. CONSULTANT shall submit invoices monthly for actual Services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for Services provided in the previous month. Payment shall be made within thirty 30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of CONSULTANT’ s fees it shall give written notice to CONSULTANT within thirty ( 30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this Agreement shall be made within forty-five ( 45) days of receipt of an invoice therefore.
7. INSPECTION
City shall at all times have the right to inspect the work and materials. CONSULTANT shall furnish all reasonable aid and assistance required by City for the proper examination of the work and all parts thereof. Such inspection shall not relieve CONSULTANT from any obligation to perform said work strictly in accordance with the specifications or any modifications thereof and in compliance with the law.
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8. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a. The City may at any time, for any reason, without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon CONSULTANT at least thirty (30) days prior written notice. Upon receipt of said notice, CONSULTANT shall immediately cease all Services under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to CONSULTANT the actual value of the Services performed up to the time of termination, provided that the Services performed are of value to the City. Upon termination of the Agreement pursuant to this Section, CONSULTANT will submit an invoice to the City pursuant to Section 6.
9. DEFAULT OF CONSULTANT
a. CONSULTANT’ s failure to comply with the provisions of this Agreement shall constitute a default. In the event that CONSULTANT is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating CONSULTANT for any Services performed after the date of default and can terminate this Agreement immediately by written notice to the CONSULTANT. If such failure by the CONSULTANT to make progress in the performance of Services hereunder arises out of causes beyond the CONSULTANT’ s control, and without fault or negligence of the CONSULTANT, it shall not be considered a default.
b. If the City Manager or designee determines CONSULTANT is in default in the performance of any of the terms or conditions of this Agreement, they shall cause to be served upon CONSULTANT a written notice of the default. The CONSULTANT shall have ten ( 10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event CONSULTANT fails to cure its default within such period of time or fails to present City with a written plan for the cure of the default, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
10. OWNERSHIP OF DOCUMENTS
a. CONSULTANT shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of Services under this Agreement. CONSULTANT shall maintain adequate records of Services provided in sufficient detail to permit an evaluation of Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. CONSULTANT shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow PGCC 11-19-2025
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inspection of all work, data, documents, proceedings, and activities related to this Agreement. If there is a substantial billing deviation adverse to City, then the cost of an audit shall be borne by CONSULTANT. Such records, together with supporting documents, shall be maintained for a period of five (5) years after receipt of final payment. b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the Services to be performed pursuant to this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of CONSULTANT. With respect to computer files, CONSULTANT shall make available to City, at CONSULTANT’ s office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files.
CONSULTANT hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by CONSULTANT in the course of providing the Services under this Agreement.
11. RECORD AUDIT
In accordance with Government Code, Section 8546.7, for expenditures of greater than 10,000, records of both City and CONSULTANT shall be subject to examination and audit by the Auditor General for a period of three ( 3) years after final payment.
12. INDEMNIFICATION AND DEFENSE
Indemnity
To the fullest extent permitted by law, CONSULTANT shall indemnify and hold harmless City and any and all of its officers, employees and agents (“ Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsel’ s fees and costs, caused in whole or in part by the negligent or wrongful act, error or omission of CONSULTANT, its officers, agents, employees or subconsultants ( or any City or individual that CONSULTANT shall bear the legal liability thereof) in the performance of Services under this Agreement. CONSULTANT’ s duty to indemnify and hold harmless City shall not extend to the City’ s sole or active negligence.
Duty to defend
In the event City, its officers, employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the Services encompassed by this Agreement, and upon demand by City, CONSULTANT shall defend City at CONSULTANT’ s cost or at City’ s option, to reimburse City for its costs of defense, including reasonable attorney’ s fees and costs incurred in the defense of such matters to the extent the matters arise from, relate to or are caused by CONSULTANT’ s negligent acts, errors or omissions. Payment by City is not a condition precedent to enforcement of this indemnity. In the event of any dispute between CONSULTANT and City, as to whether liability arises from PGCC 11-19-2025
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the sole or active negligence of the City or its officers, employees, or agents, CONSULTANT will be obligated to pay for City’ s defense until such time as a final judgment has been entered adjudicating the City as solely or actively negligent. CONSULTANT will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’ s fees, expert fees and costs of litigation.
13. INSURANCE
CONSULTANT shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and part of this Agreement.
14. INDEPENDENT CONSULTANT
a. CONSULTANT is and shall at all times remain as to City a wholly independent consultant and/or independent contractor. The personnel performing the Services under this Agreement on behalf of CONSULTANT shall at all times be under CONSULTANT’ s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of CONSULTANT or any of CONSULTANT’ s officers, employees, or agents, except as set forth in this Agreement.
CONSULTANT shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of City.
CONSULTANT shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. b. No employee benefits shall be available to CONSULTANT in connection with the performance of this Agreement. Except for the fees paid to CONSULTANT as provided in the Agreement, City shall not pay salaries, wages, or other compensation to CONSULTANT for performing Services hereunder for City. City shall not be liable for compensation or indemnification to CONSULTANT for injury or sickness arising out of performing Services hereunder.
15. LEGAL RESPONSIBILITIES
CONSULTANT shall keep itself informed of State and Federal laws and regulations that in any manner affect those employed by it or in any way affect the performance of its Services pursuant to this Agreement. CONSULTANT shall at all times observe and comply with all such laws and regulations. City, and its officers, employees, and agents shall not be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this Section.
16. UNDUE INFLUENCE
CONSULTANT declares and warrants that no undue influence or pressure was used against or in concert with any officer, employee or agent of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer, employee or agent of City has or will receive compensation, directly or indirectly, from CONSULTANT, or from any officer, employee or agent of CONSULTANT, in connection with the award of this Agreement or any Services to PGCC 11-19-2025
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be performed as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to any and all remedies at law or in equity.
17. NO BENEFIT TO ARISE TO CITY OFFICERS AND EMPLOYEES
No officer, employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Services performed under the Agreement during their tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement.
18. RELEASE OF INFORMATION/ CONFLICTS OF INTEREST
a. All information gained by CONSULTANT in performance of this Agreement shall be considered confidential and shall not be released by CONSULTANT without City’ s prior written authorization. CONSULTANT, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered voluntary” provided CONSULTANT gives City notice of such court order or subpoena.
b. CONSULTANT shall promptly notify CITY should CONSULTANT, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“ Discovery”), court order, or subpoena from any person or party regarding this Agreement and the work performed there under or with respect to any project or property located within the City, unless City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless CONSULTANT is prohibited by law from informing City of such Discovery.
City retains the right, but has no obligation, to represent CONSULTANT and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is adverse to CONSULTANT in such proceeding, CONSULTANT agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by CONSULTANT. However, City’ s right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. c. If City determines CONTRACTOR comes within the definition of Contractor under the Political Reform Act ( Government Code § 87100 et seq.), CONTRACTOR shall complete and file and shall require any other person doing Work under this Agreement to complete and file a “ Statement of Economic Interest” with CITY disclosing CONTRACTOR’ s and/or such other person’ s financial interests.
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19. DISCRIMINATION
CONSULTANT agrees that in the performance of this Agreement, neither CONSULTANT nor any person acting on CONSULTANT’ s behalf shall discriminate against any person on the basis of race, religious creed, color, national origin, ancestry, disability, medical condition, genetic information, marital status, sexual orientation, sex, gender identity, gender expression, military or veteran status or age.
20. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by ( i) personal service, ( ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, by first class mail, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:
To City: Tori Hannah, Administrative Services Director/ City Manager Pro Tempore City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
Attention: City Clerk
To Consultant: Kenneth H. Pun, CPA, CGMA
The Pun Group
4600 La Jolla Drive, Suite 100,
San Diego, CA 92122
Notice is effective on the date of personal service, or 5 days following deposit in a United States mailbox, or date of postmark. The parties may agree to service by email.
21. THIRD PARTY BENEFICIARIES
Nothing contained in this Agreement shall be construed to create, and the parties do not intend to create, any rights in third parties.
22. ASSIGNMENT
CONSULTANT shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of CITY. Because of the personal nature of the Services to be rendered pursuant to this Agreement, only CONSULTANT shall perform the Services described in this Agreement. CONSULTANT may use assistants, under their direct supervision, to perform some of the Services under this Agreement.
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23. LICENSES
At all times during the term of this Agreement, CONSULTANT shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. CONSULTANT shall obtain a valid City Business License and shall maintain said Business License for the term of this Agreement and any extensions.
24. GOVERNING LAW
City and CONSULTANT understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in Monterey County, or federal district court with jurisdiction over City.
CONSULTANT agrees not to commence or prosecute any dispute arising out of or in connection with this Agreement other than in the aforementioned courts and irrevocably consents to the exclusive personal jurisdiction and venue of the aforementioned courts.
25. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to their obligations described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this Agreement, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’ s own independent investigation of any and all facts such party deems material. No amendment shall be valid unless in writing, executed by both parties.
26. DISPUTE RESOLUTION; ATTORNEY’ S FEES
CONSULTANT shall continue to perform under this Agreement during any dispute.
CONSULTANT and City hereby agree to make good faith efforts to resolve disputes as quickly as possible. In the event any dispute arising from or related to this Agreement results in litigation or arbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, including court costs, attorney fees, expenses for expert witnesses ( whether or not called to testify), expenses for accountants or appraisers ( whether or not called to testify), and other related expenses. Recovery of these expenses shall be as additional costs awarded to the prevailing party, and shall not require initiation of a separate legal proceeding.
27. WORK SCHEDULED/ TIME OF COMPLETION
City and CONSULTANT agree that time is of the essence in this Agreement.
28. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of CONSULTANT warrants and represents that they have the authority to execute this Agreement on behalf of the PGCC 11-19-2025
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CONSULTANT and have the authority to bind CONSULTANT to the performance of its obligations hereunder.
29. INTERPRETATION OF CONFLICTING PROVISIONS
In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.
30. SEVERABILITY
If any term of this Agreement is held invalid by a court of competent jurisdiction or arbitrator the remainder of this Agreement shall remain in effect.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.
CITY OF PACIFIC GROVE CONSULTANT
By: By:
Department Director Consultant
Date: Date:
By: By:
City Manager or Mayor City Administrative Services Department Date: ___________________________ Date: ___________________________ Approved As To Form:
City Attorney
Date
Attachments: Exhibit A Scope of Services
Exhibit B Payment Schedule
Exhibit C Insurance Requirements
Exhibit D Request for Proposal
Exhibit E Consultant’ s Proposal
Kenneth H. Pun
Aug 16, 2023
Tori Hannah
Aug 16, 2023
Tori Hannah
Aug 16, 2023
Sergio Rudin for Brian Pierik,
Aug 23, 2023
Bill Peake
Aug 24, 2023
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EXHIBIT A
SCOPE OF SERVICES
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Specific Audit Approach and Proposed Audit Schedule
Scope of Work, Audit Approach, and Methodology
The City of Pacific Grove is requesting the Firm to perform Professional Auditing Services and issue opinions on the City’s financial statements. The audits are to be completed in accordance with all applicable and generally accepted auditing standards, including, but not limited to, the following:
Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants AICPA).
US General Accounting Office’ s ( GAO) Standard for Audit of Governmental Organizations, Programs, Activities, and Functions.
Local Governments and Governmental Accounting Standards Board ( GASB) Pronouncements.
The standards applicable to financial audits contained in the most current version of the Generally Accepted Government Auditing Standards ( Yellow Book), issued by the Comptroller General of the United States.
The provisions of the Single Audit Act as amended in 1996.
The provisions of the US Office of Management and Budget ( OMB) Uniform Guidance ( formerly known as Circular A-133), Audits of State and Local Governments and Non- profit Organizations, and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
The Firm will perform the following services:
Financial Statement Audits and issuance of an opinion statement on the Annual Comprehensive Financial Report of the City of Pacific Grove. The audit will be conducted in accordance with Generally Accepted Government Auditing Standards. The report will be in full compliance with all current GASB pronouncements.
In addition, the Firm will assist in meeting the requirements for the Government Finance Officers Association GFOA) “ Certificate of Achievement for Excellence in Financial Reporting.” If required: Prepare a Single Audit Report which will include the following:
o Report on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. o Report on compliance with requirements applicable to each major program, internal control over compliance, and on the schedule of expenditures of federal awards in accordance with Uniform Guidance, “ Audits of State and Local Governments,” and the Single Audit Act of 1984 ( Public Law 98-502).
o Schedule of Expenditures of Federal Awards.
o Notes to Schedule of Expenditures of Federal Awards.
o Schedule of Findings and Questioned Costs.
o Any other required schedules or reports.
o Prepare the Data Collection Form for Reporting on Audits of States, Local Governments, and NonProfit Organizations.
Perform Agreed Upon Procedures Applied to the Appropriations Limit ( GANN), as consistent with recommendations by the League of California Cities and as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. Prepare and provide one ( 1) electronic and one 1) hard- copy report.
Issue an Auditor’ s Communication Letter with any reportable conditions found during the audit. A reportable condition will be defined as a material weakness or significant deficiency.
Issue a separate " Management Letter" that includes recommendations for improvements on internal control, accounting procedures, and other significant observations that are considered to be no reportable conditions.
Assist with the implementation of applicable Governmental Accounting Standards Board ( GASB) pronouncements, including, but not limited to, GASB 94 and 96.
Prepare and submit to the State Controllers’ Office: The Financial Transactions Report, the Annual Street Report, and any additional reports as required by the State Controllers’ Office on an annual basis in accordance with the time frames set by the State Controllers’ Office.
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Audit the Measure X financial statements of the City for each fiscal year and provide a compliance audit report on the requirements noted in TAMC Ordinance No. 2016- 01 and in the Measure X Master Programs Funding Agreement, attached as Exhibit C, as of June 30, 2021. Provide one electronic copy of the compliance report and one (1) hard copy of the report.
Provided By Client (PBC) Lists: They will be provided for both interim and final audits according to an agreed- upon timeline between the engagement team and the City in order to be reasonably prepared for a field audit. The engagement team will meet with the City’s management during the initial planning stage to discuss audit schedules and review the prior year' s audit findings ( if any). We will deliver a list of all documents to be provided by the City’ s staff. Once such materials are agreed upon by the engagement team and City’s finance personnel, no other schedules will be requested unless new information comes to light in the course of test work.
Attendance at Meetings and Hearings: The engagement team will participate in as many meetings with staff as needed to perform the work scope tasks, present the audit plan prior to beginning fieldwork, and discuss the draft audit reports. The team will attend public meetings to present and discuss its findings and recommendations. Once all issues of discussion are resolved, the completed Financial Reports, Single Audit report ( if applicable), and other reports will be delivered to the City according to the agreed- upon schedule.
Proposed Audit Adjustments: All proposed adjusting journal entries by the Firm will be discussed and explained in a timely manner with the designated Finance Department personnel. Such proposed adjustments will be in a format that shows the lowest level of posting detail needed for data entry in the general ledger systems.
Supplemental Reports, Audits, or Agreed-Upon Procedures: Other services, such as agreed- upon procedures, may be deemed necessary. These services will be performed at agreed- upon rates and will be added to a written agreement before commencing audit work. The Firm and the City of Pacific Grove will discuss and approve the scope and associated costs of these tasks.
Advice and Consultation: Will be provided throughout the year on matters relating to accounting and financial reporting. Such services do not include any task that entails significant research or a formal report.
GASB Implementation: The Firm will provide technical assistance and training in the implementation of applicable GASB pronouncements not yet in effect. We have a dedicated partner, Mr. Gary Caporicci, who will be responsible for providing advice and consultation for the implementation of these new standards. The Firm will advise the City on the applicability of accounting and reporting standards and other accounting issues and provide guidance on new note disclosures, GASB implementations, and other reporting requirements. We will also provide training, resources, and information on topics relevant to the City’s financial reporting and operations. ( Based on the scope, additional charges may apply.)
Report of all Irregularities and Illegal Acts: The Firm will make an immediate written report of all irregularities and illegal acts or indications of illegal actions of which we may become aware. The engagement team will also make all communications to the City required by the audit standards under which the engagement is performed.
Working Paper Retention and Access to Working Papers: The Firm will retain, at its own expense, all working papers and reports for a minimum of five (5) years unless the City of Pacific Grove notifies the Firm in writing of the need to extend the retention period. The Firm will make working papers available upon request by the City of Pacific Grove or its designees.
Also, we will comply with reasonable requests from successor auditors and allow them to review working papers that relate to matters of continuing accounting significance.
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EXHIBIT B
PAYMENT SCHEDULE
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Total All-Inclusive Maximum Price
Our proposed fees for Professional Auditing Services for the three fiscal years ending June 30, 2023, June 30, 2024, and June 30, 2025, with the option of auditing its financial statements for each of the two subsequent fiscal years, are as follows:
Name of Firm:
Name of Contact:
Location of Firm:
City Audit and ACFR
Agreed Upon Procedures for the Annual Appropriation Limit and Report State Controller Annual Financial Transactions Report
PROPOSAL FOR AUDITING SERVICES
Include this worksheet with the proposal.
4660 La Jolla Village Drive, Suite 100, San Diego, CA 92122 Kenneth H. Pun, CPA, CGMA
The Pun Group, LLP
Single Audit and Single Audit Report (as, needed) 5,000 State Controller Annual Street Report
Optional: Additional Printed Copies of the ACFR
Total
250/Copy
60,500$
Exhibit A
45,000
500
3,500
1,500
Measure X Compliant Report 5,000
Please provide the breakdown of costs associated with the following 1) Above exhibit A represents the total all-inclusive amount for the services provided for the fiscal year ending June 30, 2023. Each subsequent year will reflect a 3% increase in the total amount. 2) Single Audit fees based on one ( 1) major program. The fee for auditing additional major programs will be 5,000 each. The number of programs determined to be “major” will be based on OMB Uniform Guidance.
The Engagement Team will discuss this with the City of Pacific Grove’ s Management before starting Single Audit work.
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Out of Pocket Expenses are Included in the Total All-Inclusive Maximum Price and Reimbursement Rates The Firm’s policy is to maintain flexible billing rates to meet the needs of clients and help them control costs. In the interest of starting our long-term relationship, we will absorb expenses such as travel and printing costs. Additionally, our Partners will be available to provide advice and consultation as necessary to the City of Pacific Grove. The Firm will also absorb these costs.
Rates for Additional Professional Services
Below are the Firm’ s hourly billing rates, delineated by staffing levels:
Any supplemental reports, audits, or agreed- upon procedures not covered by this proposal may be added to a written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and associated costs of these tasks. Any additional work will be performed at the above- quoted hourly rates.
Manner of Payment
Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work performed for every audit task. The Firm will collect these timesheets and bill the City of Pacific Grove at the rates outlined in the Total All-Inclusive Maximum Price section in four stages: ( 1) at the conclusion of the planning phase, 2) at the conclusion of the interim phase, ( 3) at the conclusion of the Year-End phase, (4) and after presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar month. The billing amounts generally break down as follows:
Partner( s) 300$
Director( s) 250$
Senior Manager( s) 225$
Manager( s) 200$
Supervisor( s) 175$
Senior Accountant( s) 150$
Staff Accountant( s) 125$
Clerical 100$
Hourly Billing Rates
Work Performed % of Proposal Amount
Planning 10%
Interim 40%
Fieldwork 40%
Presentation and Acceptance of Reports 10%
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EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting CONSULTANT’ s indemnification of City, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than 1,000,000 per occurrence, $ 2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “ insured contract” language will not be accepted.
Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Professional liability ( errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and CONSULTANT agrees to maintain continuous coverage through a period no less than three ( 3) years after completion of the Services required by this Agreement.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance ( Statutory Limits) and Employer’ s Liability Insurance ( with limits of at least $ 1,000,000).
CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’ s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants.
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Primary/ noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’ s own insurance or self-insurance shall be called upon to protect it as a named insured.
City’ s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by CONSULTANT or City will withhold amounts sufficient to pay premium from CONSULTANT payments. In the alternative, City may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of Aor higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’ s Key Rating Guide, unless otherwise approved by the City’ s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss.
CONSULTANT hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions ( non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the City to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation ( except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/ umbrella liability policies.
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Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’ s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’ s limits of liability. The policy(ies) shall not contain any cross- liability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT.
CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.
CONSULTANT agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.
City’ s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety 90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the City and CONSULTANT may renegotiate CONSULTANT’ s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
Timely notice of claims. CONSULTANT shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’ s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
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EXHIBIT D
REQUEST FOR PROPOSAL
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Request for Proposal (RFP)
for
Professional Auditing Services
Issue Date: March 21, 2023
Proposal Due Date: April 19, 2023
Submit responses to:
City of Pacific Grove
Administrative Services Department
Attn: Jennifer Pope, Management Analyst
300 Forest Avenue
Pacific Grove, California 93950
jpope@cityofpacificgrove. org
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Table of Contents
1. RFP Overview
1.1 Introduction and Background
1.2 Purpose of RFP
1.3 Schedule of Events
1.4 RFP Coordinator
1.5 RFP Amendment and Cancellation
1.6 Letter of Intent to Respond
1.7 Questions Pertaining to the RFP
1.8 Public Records Law
1.9 Rights to Submitted Materials
1.10 City Agreements and Insurance Requirements
2. Scope of Work and Specifications
2.1 Overview of Services
2.2 Standards to Follow
3. Proposal Submission Requirements
3.1 General Instructions
3.2 Proposal Format
3.2.1 Transmittal Letter
3.2.2 Table of Contents
3.2.3 Executive Summary
3.2.4 Company Information
3.2.5 Company Background
3.2.6 Company Qualifications
3.2.7 References
3.2.8 Draft Audit Schedule
3.2.9 Pricing
3.3.0 Proposed Legal Agreements
4. Proposal Evaluation
5. General Terms and Condition
5.1 General Conditions
5.2 Reference Checks
5.3 Changes to RFP
5.4 Submittal Address
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1. RFP Overview
1.1 Introduction and Background
The City of Pacific Grove is a Charter City known for small-town hospitality and friendliness. It is run by a council-manager form of government. The major operating departments of the City are: City Manager, Administrative Services, Community Development, Public Works, Police, Fire, Recreation and the Library. The City population is 15,545 and it is approximately 2.86 square miles. The City shares borders with the City of Monterey, the Pacific Ocean, and the Del Monte Forest.
The City Finance Department is staffed with 6.33 FTE’ s. The department is the recipient of five consecutive Government Finance Officers Certificate of Excellence ( COE) Award in Financial Reporting; four consecutive GFOA Distinguished Budget Awards; and five consecutive California Society of Municipal Finance Officers (CSMFO) Operating Excellence Budget Awards. The City has retained the current audit firm since Fiscal Year 15/16.
The Finance staff have previously prepared the Transmittal, Statistical Section, and text associated with the Management Discussion and Analysis (MD&A) Section of the ACFR. The current audit firm prepares a MD & Atemplate, with tables and charts based on the financial statements. The City accrues revenues and expenditures through the end of August, with financial statements provided to the City Council by the second meeting in December.
1.2 Purpose of RFP
The City of Pacific Grove is seeking proposals for the preparation of both financial and compliance audit reports covering the City and its related operations from qualified firms of certified public accountants. A complete description of services to be provided is described later in this document.
The contract will be for a period of three years with an option to renew for an additional two years.
The first reporting period to be audited is July 1, 2022, through June 30, 2023. Responding firms shall be solely responsible for any expenses incurred in preparing proposals in response to this request.
1.3 Schedule of Events
The RFP schedule of events identifies the City’ s best estimate of the schedule that will be followed.
RFP Event Date/Time
RFP Issued March 21, 2023
Deadline for Written Questions April 5, 2023, at 5:00 pm Deadline for Letter of Intent to Respond April 5, 2023, at 5:00 pm City Issues Response to Written Questions April 12, 2023 Deadline for Submitting a Proposal April 19, 2023, at 3:00 pm City Evaluation of Proposals April 20-25, 2023
Selected Consultant Interviews May 1-3, 2023
City Determines Finalist May 8, 2023
Contract Awarded May 17, 2023
The City reserves the right to adjust this schedule as it deems necessary.
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1.4 RFP Coordinator
All communications concerning this RFP must be submitted in an e-mail to, Jennifer Pope, Management Analyst. The RFP Coordinator will be the sole point of contact for this RFP. The coordinator can be reached via email at jpope@cityofpacificgrove. org.
1.5 RFP Amendment and Cancellation
The City reserves the unilateral right to amend this RFP in writing at any time. The City also reserves the right to cancel or reissue all or any part of the RFP at its sole discretion. This information will be posted to the City’ s website. If an amendment is issued, it will be provided to all Consultants who have submitted a Letter of Intent to Respond.
1.6 Letter of Intent to Respond
Consultants who anticipate submitting a proposal should submit an email indicating a Consultant' s intent to respond to this RFP. The letter of intent should be emailed to the RFP Contact. The subject line should read, “ Company Name – Letter of Intent to Respond”. The following information should be included in the Letter of Intent to Respond:
Name of Consultant
Consultant’ s Address
Consultant’ s Contact Person
Contact Person’ s Telephone Number & E-mail Address
Submittal of a Letter of Intent to respond, by the specified deadline, is highly desirable for submitting a proposal and is necessary to ensure a Consultant’ s receipt of RFP amendments and other communications regarding the RFP. The Letter of Intent does not bind Consultants to submit a proposal. Not submitting a Letter of Intent does not preclude a Consultant from submitting a proposal by the required deadline.
1.7 Questions Pertaining to the RFP
All questions pertaining to this RFP must be submitted by e-mail to the RFP contact: Jennifer Pope, Management Analyst at jpope@cityofpacificgrove. org. All Consultants who have notified the City of their intent to respond to the RFP will be provided, via e-mail, a copy of all questions submitted as well as the City’ s response.
1.8 Public Records Law
Pursuant to the California Public Records Act, Government Code Section 6250 and following, public records may be inspected and examined by anyone desiring to do so, at a reasonable time, under reasonable conditions, and under supervision by the custodian of the public record. All submitted proposals are subject to the California Public Records Act, and may be determined to be public records subject to disclosure, even if the Consultant claims confidential treatment. The City will disclose public records as required under the California Public Records Act.
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1.9 Rights to Submitted Materials
All Proposals and related correspondence, reports, charges, schedules, exhibits and other documentation submitted with this RFP will become the property of the City and a matter of public record. All documents submitted in response to this request will be subject to disclosure if requested by a member of the public. There are a very limited number of narrow exceptions to these disclosure requirements.
1.10 City Agreements and Insurance Requirements
The successful proposer(s) will be required to sign a contract with the City relating to the work to be performed. Once selected, the proposer must procure and maintain insurance in accordance with the City’ s insurance requirements for the duration of the contract. The cost of this insurance is the proposer’ s responsibility.
2. Scope of Work and Specifications
2.1 Overview of Services
The City of Pacific Grove (City) is seeking proposals to perform the following services:
1. Audit all funds of the City in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller of the United States.
2. Prepare the City’ s Annual Comprehensive Financial Report ( ACFR) including accompanying schedules and notes no later than December 5 of each contract year. The form of the ACFR is to be compliant with the requirements of the Government Finance Officers Association (GFOA) Certificate Program.
3. Provide the City with draft financial statements in an excel and pdf format with sufficient time to allow for the preparation of the Statistical Section and supporting text for the M D A. Typically, the City has requested two weeks for review of the statements, and an additional week to complete the M D & A and Statistical Section. While this is requested, alternative timelines and options can be proposed.
4. Assist in the preparation of tables and charts related to the audited financial statements for incorporation into the City’ s Management’ s Discussion and Analysis ( MD&A), apply limited audit procedures to the MDA, and provide any supplementary information pertaining to the City’ s financial documents as required by the City.
5. Issue a separate “ management letter” that includes recommendations for improvements in internal control, accounting procedures, and other significant observations that are considered to be non-reportable conditions. Prior to the issuance of the final management letter, the auditor shall deliver a draft copy to the City of Pacific Grove’ s Administrative Services Director/Assistant City Manager for review and management’ s responses.
6. Render a report and opinion on the basic financial statements including both GovernmentWide Financial Statements and Fund Financial Statements.
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7. Attend a minimum of one City Council meeting for the purpose of discussing the audit and its conclusions.
8. Provide one ( 1) electronic file of each auditor-prepared report with the search feature enabled and suitable for posting to the City’ s website. The City may also request bound hard-copies of the ACFR.
9. Assist with the implementation of applicable Governmental Accounting Standards Board GASB) pronouncements including, but not limited to, GASB 94, and 96.
10. Prepare and submit to the State Controllers’ Office: The Financial Transactions Report, the Annual Street Report, and any additional reports as required by the State Controllers’ Office on an annual basis in accordance with the time frames set by the State Controllers’ Office.
11. Perform Agreed Upon Procedures Applied to the Appropriations Limit, as consistent with recommendations by the League of California Cities, and as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. Prepare and provide one (1) electronic and one (1) hard-copy report.
12. Audit the Measure X financial statements of the City for each fiscal year and provide a compliance audit report on the requirements noted TAMC Ordinance No. 2016-01 and in the Measure X Master Programs Funding Agreement, attached as Exhibit C, as of June 30, 2021. Provide one electronic copy of the compliance report and one (1) hard-copy of the report.
13. If required pursuant to OMB Circular A-133, perform a Single Audit on the expenditures of federal grants and render the appropriate audit reports on Internal Control over Financial Reporting based upon the audit of the City’ s financial statements in accordance with Government Auditing Standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A133. The single audit report will include an appropriate schedule of expenditures of federal awards, footnotes, findings, and questioned costs, including reportable conditions and material weaknesses, and follow-up on prior audit findings where required.
2.2 Standards to Follow
To meet the requirements of this request for proposal, these audits are to be performed in accordance with all applicable and generally accepted auditing standards including, but not limited to: the standards set forth for financial audits by the Government Accounting Standards Board (GASB), in the General Accounting Office’ s (GAO) Government Auditing Standards, and in the U.S. Office of Management (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
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3. Proposal Submission Requirements
3.1 General Instructions
Proposals should provide a straightforward, concise description of the Consultant’ s company, qualifications, proposed solution, and capabilities to satisfy the requirements of this RFP.
Emphasis should be on completeness and clarity of content.
Proposals should be organized consistent with the outline provided in this section of the RFP.
Consultants must follow all formats and address all portions of the RFP set forth herein providing all information requested.
Submittals must be received no later than Wednesday, April 19, 2023. Proposals received after this date and time will not be considered.
3.2 Proposal Format
Proposals must be structured, presented, and labeled in the following manner:
Transmittal Letter
Table of Contents
Executive Summary
Company Information
Company Background
Company Qualifications
References
Proposed Audit Schedule
Pricing
Proposed Legal Agreement( s)
Additional Information
Failure to follow the specified format, to label the responses correctly, or to address all of the subsections may result in the rejection of the Proposal.
3.2.1 Transmittal Letter
The proposal must provide a written transmittal of the proposal in the form of a standard business letter. The Transmittal Letter will reference and respond to each of the following bulleted items.
Signature of a company officer empowered to bind the Consultant to the provisions of this RFP and any contract awarded pursuant to it.
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A high-level statement of the Consultant’ s credentials to deliver the services sought under the RFP.
A statement indicating the proposal remains valid for at least 90 days.
A statement that the Consultant or any individual who will perform work for the Consultant is free of any conflict of interest ( e.g., employment by the City).
3.2.2 Table of Contents
All pages are to be numbered and the table of contents should identify each major section.
3.2.3 Executive Summary
This section of the proposal should provide a concise synopsis of Consultant’ s proposal and credentials to deliver the services sought under the RFP. In addition, it should explain how the Auditing Services Firm will differentiate itself from other Consultant solutions and the reasons the City should select the proposed solution. This may include a list of the unique features that give the Consultant a competitive edge in the agenda management system market.
3.2.4 Company Information
This section of the proposal must include the following company information:
Provide the legal entity name, Federal Employer Identification Number ( EIN), and form of business ( i.e. Corporation, LLC, etc.).
Identify if the Consultant is a subsidiary of a larger company. If so, whom? Provide a primary contact name, address, phone number, and email address.
Identify the location of company headquarters and offices, which will support the implementation.
Identify the location, hours of operation, and contact information of ongoing maintenance and support staff.
Provide the current number of employees at the company.
Provide the current number of employees dedicated to the solution you are proposing.
Identify all subcontractors and associated scope of work.
List the company’ s Pacific Grove business license number or statement of understanding that a business license must be purchased prior to doing business with the City.
Identify any pending litigation against the Consultant.
Identify if the Consultant has filed any bankruptcy or insolvency processing in the last 10 years.
Identify any mergers, acquisitions, or sales of the Consultant company within the last five years ( if so, an explanation providing relevant details).
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3.2.5 Company Background
This section should identify the following:
A description of the Consultant’ s background, nature of business, and organizational history.
A statement of how long the Consultant has been providing the solution you are proposing, as required by this RFP.
Disclose the Consultant’ s annual company revenues and profit for the last three company fiscal years. It is acceptable to include this information as an appendix in the proposal.
3.2.6 Company Qualifications
In this section of the proposal, the Consultant should identify company and staff qualifications and experience in implementing solutions. More specifically, this section should identify the following:
Describe your experience in providing Auditing Services; especially for municipalities similar in size to Pacific Grove.
Identify some examples of your existing client base including the number of clients you provided the services being proposed here.
Experience in preparing the relevant sections of the financial statements to meet GFOA requirements.
3.2.7 References
The Consultant must provide at least five references. At least three of the references should be for providing auditing services in the last three years. The City prefers references from local government agencies with similar demographics. For each reference, Consultant should provide the following information:
o Entity name
o Customer contact information ( name, title, phone, and email) o Scope of work performed identifying the services provided o Services start and end dates
3.2.8 Draft Audit Schedule
The City accrues revenues and expenditures through the end of August. While the City is flexible with interim audit scheduling, there is a preference to year-end audit fieldwork is in early October, with draft Basic Financial Statements provided to the City in November. This would allow the City time to review the document; and use the data to complete the MD &A and the Statistical Section. The City Council has typically requested a final electronic ACFR and audit presentation by the second Council Meeting in December. This also provided staff with sufficient time apply for the GFOA Award. Due PGCC 11-19-2025
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to COVID-19, an electronic copy was typically provided to the Council prior to December 31, with the presentation following in January.
The City is open to alternative schedules, especially in the first audit year. Please provide an overview a sample audit schedule for the first year; and tentative timeline for the following years. The City may need at least three weeks to complete the review, MD & A, and Statistical Section based on the draft financials. If any alternative methods are proposed to streamline the process, please provide additional details. At minimum, please include the following the key dates:
Interim Audit
Fieldwork/Year-End
Draft financial statements
Completed electronic ACFR
3.2.9 Pricing
The City is seeking a clear and comprehensive understanding of all costs associated with providing auditing services. In this section, the Consultant must itemize all costs, see Exhibit A. For ongoing costs Consultant is to include options for three to five years. As an optional item, the City may request ten ( 10) bound copies of the ACFR. Please provide an additional pricing for this service as a separate line item.
3.2.10 Proposed Legal Agreement
It is recognized that the formal basis of any agreement between the City and the Consultant is a contract rather than a proposal. In this section, the Consultants must include a draft of the proposed legal agreement( s) for services.
The proposed legal agreement( s) may serve as the basis for contract negotiations between the City and the selected Consultant( s) or the City may elect to use its own agreement, attached as Exhibit B, as the basis. Consultants’ legal agreements should take into account the City’ s status as a municipal corporation subject to California law and include contract language that is suitable for contracts with California public entities.
4 Proposal Evaluations
After the proposals are received, the City shall review and evaluate them for responsiveness to the RFP in order to determine whether the proposer possesses the qualifications necessary for the satisfactory performance of the services required. The City may also investigate the qualifications of all proposers to whom the award is contemplated, and the City may request clarifications of proposals directly from one or more proposers.
In reviewing the proposals, the City will consider the following:
The qualifications ( including education, training, licenses, experience, and past performance) of the proposer and its agents, employees, and sub-consultants in completing services of a similar type, size, and complexity.
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The feasibility of the proposal based upon the methodology of the proposed scope of services to meet the City’ s needs, the quality of services proposed, and the reasonableness of the total service costs and of the proposed time over which the work will be completed.
Understanding of the work to be completed based on the clarity of the proposal and responsiveness to this RFP.
Quality, clarity, completeness, and responsiveness of proposal.
Demonstrated ability to work in a cooperative and collaborative manner with clients.
Proposed timeline.
Anticipated value and price.
Perceived risk or lack of risk
Company financial stability.
References for each of the primary service( s) proposed.
Results of interviews.
Reasonableness of proposed terms and conditions of draft legal agreement( s) Ability to negotiate and execute a contract in a timely manner.
The City reserves the right, at its sole discretion, to request clarifications of proposals or to conduct discussions for the purpose of clarification with any or all Consultants. The purpose of any such discussions shall be to ensure full understanding of the proposal. Discussions shall be limited to specific sections of the proposal identified by the City and, if held, shall be after initial evaluation of proposals are complete. If clarifications are made as a result of such discussion, the Consultant shall put such clarifications in writing.
5 General Terms and Conditions
5.1 General Conditions
The City reserves the right to reject any and all proposals, to waive any informality, to request interviews of Contractor(s) prior to award and to select and negotiate the Contract services in the best interest of the City.
The City reserves the right to accept all or part of any proposal, and to negotiate a contract for services and cost with the selected Contractor.
The Contractor shall provide all necessary personnel, materials and equipment to perform and complete all work under this proposal.
The Contractor shall be unbiased and Consultant neutral.
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Unless otherwise stated, invoices are to be submitted to the Administrative Services Department upon delivery of service to the City. The invoice must include an itemization of all services provided, including unit list price, net price, extensions total amount(s) due, and amounts previously paid.
Unless otherwise stated, payment will be made within thirty (30) days of the completion of the service, in an acceptable fashion, to the City, and receipt of invoice, whichever is later.
The contract for the services described in the RFP should not be considered exclusive. As deemed necessary, the City reserves the right to obtain these services from any other Consultant.
Neither party shall be liable for any inability to perform its obligations under any subsequent agreement due to war, riot, insurrection, civil commotion, fire, flood, earthquake, storm or other act of nature.
Notification of the parties shall be considered to have been constructively received when it is mailed via the United States Postal Service, e-mailed, or delivered in hand to the parties as stated in the contract.
Proposal shall also mean quotation, bid, offer, qualification/experience statement, and services. Proposers shall also mean Consultants, proposer’ s, bidders, or any person or firm responding to a Request for Information.
The City reserves the right to retain all proposals for a period of 60 days for exam and comparison.
All contracts entered into by the City of Pacific Grove shall be governed by the Laws of the State of California. Any disputes shall be resolved within the venue of the State of California.
The proposer may submit an alternative proposal or proposals that it believes will also meet the City’ s objectives but in a different way. In this case, the proposed must provide an analysis of the advantages and disadvantages of each of the alternatives, and discuss under that circumstances the City would prefer one alternative to the other(s).
5.2 Reference Checks
The City of Pacific Grove reserves the right to contact any reference or any client listed in the documents for information that may be helpful to the City in evaluating the Contractor’ s performance on previous assignments.
5.3 Changes to RFP
Changes to the RFP will be e-mailed to all Consultants that submitted a letter of intent to respond.
Such changes become an integral part of the RFP for incorporation into any contract awarded pursuant to the RFP.
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5.4 Submittal Address
Send proposals to Jennifer Pope, Management Analyst at jpope@cityofpacificgrove. org or mail to:
City of Pacific Grove
Administrative Services Department
Attn: Jennifer Pope, Management Analyst
300 Forest Avenue
Pacific Grove, CA 93950
If submitting by mail, please ensure Professional Audit Services is written in the lower left-hand corner of the envelope. Three bound copies and one electronic copy should be submitted.
Proposals must be complete and submitted by the due date. Late submissions or delivery via facsimile will not be considered. The City assumes no responsibility for delays caused by delivery service.
Postmarking by the due date will not substitute for actual receipt.
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Professional Services Agreement 07.19.2022
EXHIBIT E
CONSULTANT’ S PROPOSAL
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ImageCredit: Shutterstock (Royalty-Free)
ManagingPartner
2121NorthCaliforniaBlvd., Suite290
WalnutCreek, CA94596
949) 777-8801 | [email protected]
KennethH. Pun, CPA, CGMA
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The Pun Group LLP is recognized for its professionalism, integrity and for providing clients with practical solutions unique to their circumstances and issues. You will receive a superior level of service and a quality audit.
Thank You!
Thank you for allowing us to submit our qualifications to provide you with Professional Auditing Services.
The Pun Group LLP
Certified Public Accountants and Business Advisors
WHY CHOOSE
THE PUN GROUP LLP?
Big firm expertise, small firm values
Personal attention meets technical expertise
A unique firm culture
Innovation embraced
Achievable plans to move your organization forward
The Pun Group’s most
valuable asset is our
people, they and their
deep experience drive our
every interaction with
clients.
Kenneth H. Pun, CPA, CGMA
Founder & Managing Partner
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2121 North California Blvd., Suite290
Walnut Creek, California 94596
City of Pacific Grove
Transmittal Letter
April 19, 2023
City of Pacific Grove
Jennifer Pope, Management Analyst
300 Forest Avenue
Pacific Grove, CA 93950
Re: RFP for Professional Auditing Services
Dear Jennifer Pope:
Please allow us to introduce our Firm and share our qualifications and proposed services plan for the City of Pacific Grove ( the “ City”) according to your Request for Proposals for Professional Auditing Services for the three fiscal years ending June 30, 2023, June 30, 2024, and June 30, 2025, with the option of auditing its financial statements for each of the two subsequent fiscal years.
The Pun Group LLP ( the “ Firm”) has the knowledge and experience necessary to become the City’s next public accounting firm and the work plan to ensure a smooth process.
This letter is an acknowledgment of the Firm’s understanding of the work to be performed. We are offering our commitment to deliver all of the required work, complete the audit, and issue the necessary auditor’ s reports within the periods outlined by the City. No subcontractors will be utilized for this engagement.
The Pun Group is the right choice for the City of Pacific Grove because:
We Understand the Demographics and Your Needs. The Pun Group is reputable for its governmental practice. We are the principal auditors for cities in California such as Bell, Fresno, Gilroy, Hercules, Lakewood, Madera, Montebello, Monterey, Napa, National City, Palm Springs, Salinas, San Mateo, Santa Clarita, Stockton, Tracy, and several others. Accordingly, the proposed engagement team has a deep understanding of the current issues that municipalities are facing, such as varying demographics, economic environments, and the constantly changing landscape of laws and regulations.
Recognized Leader in the Governmental Industry. We are a small national Firm with licenses in the States of California, Arizona, and Nevada and a proven leader in professional services to the government sector. All key engagement team professionals are licensed to practice as Certified Public Accountants and meet the Continuing Professional Education requirements under US GAO’ s Government Auditing Standards to perform the proposed audits. The partners and all employees proposed to perform the requested services do not have a record of substandard audit work nor have any outstanding claim of substandard practice or unsatisfactory performance pending with the State Board of Accountancy or other professional organizations. In addition, we are members of the national AICPA Audit Quality Center.
We strongly believe that part of our success is credited to our professionals’ participation in various industry- leading organizations. Such affiliations are critical to addressing emerging accounting and auditing issues within the industry environment.
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You’ll Work with a Team that Embraces Innovation and Continuous Improvement. Our Firm is committed to continuous improvement as it relates to service delivery. We embrace innovation and identify areas of technological enhancements in our audit and project management approaches. For example:
Secure Data File Transfer System. In order to improve audit efficiency, workflow management software plays an essential role between your organization and our engagement team. We employ a secure data file transfer system called Suralink. Suralink’ s dynamic request list is integrated with our secure file hosting system for seamless documentrequest coordination, including the upload of large- size files. It means all our requests are in one place, updated in real-time, and accessible by everyone working on the engagement. Not only makes the operation more cost-efficient, but it also enables you and your team to spend your time getting the job done, not reconciling a messy list of outstanding items. In addition, Suralink’ s dashboard allows you to visualize the process of document- request fulfillment.
AI Auditor. The Pun Group leverages the technology and research tools required to provide excellent services to its clients. With the usage of Artificial Intelligence ( AI) technology, the Firm is capable of issuing all reports requested faster than other audit firms without exposing the City to unnecessary risks.
Remote Auditing Capability. Remote working arrangements have suddenly become the new normal” in these trying times. Our Firm has deployed top-notch technology and fully transitioned to “remote auditing,” offering our clients the quality services they deserve while being fully “ remote” or operating in a “hybrid” schedule. “ On-site” audits are still the Firm’s preferred method, and we’ll continue to offer and promote those as well.
Knowledge is Shared with You. As part of our pledge to keep you updated on new technical accounting and financial issues, we implemented our 2023 Virtual Government Accounting Conference, which qualifies for up to 15 hours of CPE – nearly double what other firms offer. These online sessions are free of charge and part of the service package provided to you. More details and dates can be found on the “Client Training Webinars” topic under this proposal.
The Pun Group is proud of its inclusive values and is an avid promoter of equality and diversity. In addition, the Firm is an equal opportunity employer and complies with all federal and state hiring requirements. We’re proud of supporting affirmative- action philosophies and work hard to provide opportunities for self-enhancement to members of disadvantaged groups.
This proposal is a firm and irrevocable offer valid for ninety (90) days following the closing date for the receipt of all proposals.
The Pun Group LLP requires all employees to adhere to strict independence standards concerning the Firm’s clients.
These independence standards exceed, in many instances, the rules promulgated by the American Institute of Certified Public Accountants ( AICPA). The Pun Group LLP certifies that it is independent of the City of Pacific Grove.
The Firm meets independence requirements defined by the United States Government Accountability Office’ s (US GAO’ s) Government Auditing Standards and the American Institute of Certified Public Accountants ( AICPA). Based on that, we have not identified an instance that constitutes a conflict of interest relative to performing the services requested by the City. The Firm had no relationship with the City of Pacific Grove during the past five (5) years.
Finally, we would like to emphasize one additional point: We want to earn your trust and your business! We are confident that the energetic and experienced team we have assembled is the right one for the City.
Our commitment to serving the City of Pacific Grove cannot be adequately conveyed in a letter, and I look forward to continuing the discussion with you. I’m assigned as your primary contact for contract negotiations and stand steadfast to serve as your engagement/ lead partner. I’m also authorized to legally bind the Firm. Should you have any questions or wish to discuss this proposal, please do not hesitate to contact me at (949) 777-8801 or by email at ken.pun@pungroup. cpa.
Sincerely,
Kenneth H. Pun, CPA, CGMA | Managing Partner | The Pun Group LLP 2121 North California Blvd., Suite 290, Walnut Creek, California 94596 PGCC 11-19-2025
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Table of Contents
Transmittal Letter ........................................................................................... 1 Table of Contents ........................................................................................... 3 Executive Summary ....................................................................................... 5 Company Information ..................................................................................... 7 Company Background ................................................................................... 9 Company Qualifications ............................................................................... 19 References ................................................................................................... 28 Specific Audit Approach and Proposed Audit Schedule .............................. 29 Pricing .......................................................................................................... 36 Proposed Legal Agreement ......................................................................... 39 Let’s Get to Work! ........................................................................................ 49 Appendix A – Available Training ..................................................................... i Appendix B – Certificate of Insurance ........................................................... ii PGCC 11-19-2025
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The Pun Group Wins
2023 “ Best of Accounting” Award
The Pun Group LLP is proud to have won 2023’s Best of
Accounting® award from ClearlyRated for providing superior service to its clients.
Winners of such awards have proven to be industry leaders in service quality based entirely on ratings provided by their clients. On average, clients of 2023 Best of Accounting winners are 70% more likely to be satisfied than those who work with non-winning firms.
I am pleased to introduce the 2023 Best of Accounting
winners alongside their validated service ratings on
ClearlyRated. com,” said ClearlyRated’ s CEO, Eric Gregg.
These firms have demonstrated a remarkable commitment to delivering amazing experiences, despite another year of upheaval and macroeconomic uncertainty. Hats off to these service leaders - it’s truly an honor to recognize and celebrate their achievements.”
The Pun Group LLP received satisfaction scores of 9 or 10 out of 10 from 94.1% of their clients, significantly higher than the industry’ s average of 50%.
Our firm excelled in five key areas: Responsiveness, Quality, Value, Needs Understanding, and Proactive Approach.
About ClearlyRated
Rooted in satisfaction research for professional service firms, ClearlyRated utilizes a Net Promoter® Score survey program to help professional service firms measure their service experience, build an online reputation, and
differentiate on service quality.
Excellent customer service and staff and
partners are expert in their fields.”
Lani H.
State and Local Government Client
We started using Pun Group when the
pandemic first started two years ago so
had a little apprehension about doing
everything remotely with a new firm. But
the audit went very well and was
completed on time without problem.”
Kevin W.
State and Local Government Client
The Firm has consistently exceeded our
expectations as client.”
Clint O.
State and Local Government Client
An excellent partner and amazing service.”
Jim T.
Private Sector Client
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Executive Summary
The Pun Group LLP, Certified Public Accountants, and Business Advisors, founded in 2012, is a limited liability partnership. We are a full-service accounting firm comprised of fifty professionals providing auditing, accounting, and advisory services to our clients.
The Firm has become one of the “ Top Accounting Firms” in Orange County according to the Orange County Business Journal and is also on the list of CalCPA Top 150 firms.
The combination of our hands- on experience and practical knowledge exercised by our audit professionals makes the Firm unique in our field. Our technical expertise and thorough understanding of current regulations and issues— along with the Firm’s commitment to hard work, integrity, and teamwork in every engagement— enable us to help our clients succeed.
Our Partners’ Group— which includes Kenneth Pun, Coley
Delaney, Andrew Roth, Frances Kuo, Vanessa Burke, John
Georger Jr., Gary Caporicci, and Jim Fritzsche — provides auditing, accounting, and advisory services to numerous governmental entities throughout the United States. With more than two hundred years of combined experience in the industry, we have become a trusted business partner and are wellrespected as leaders in the industry in one of the fastest- growing firms. With nearly 100 government and not-for-profit audit clients, our Partners have a real passion for the industry and believe we are unmatched in our municipal experience. The firm also meets professional standards generally accepted in the United States of America and the standards applicable to financial audits contained in ‘ Government Auditing Standards’ issued by the Comptroller General of the United States.
The Firm’s headquarters are located in Orange County, California, with five branches in San Diego, Walnut Creek, Sacramento California), Las Vegas ( Nevada), and Phoenix ( Arizona).
The Walnut Creek Office, located at 2121 North California Blvd., Suite 290, Walnut Creek, California 94596, will perform the requested services for the City. However, we may assign additional staff from our other offices to the engagement at no extra cost to the City. No subcontractors will be used in this engagement.
Global Capabilities
The Pun Group LLP is an independent member of Allinial Global, an association of over 100 independent accounting and consulting firms. Based in North America, Allinial Global offers international support by connecting its member firms to providers and global networks of accounting firms worldwide.
OUR
AFFILIATIONS
OUR FIRM
AT A GLANCE
50 full-time auditing,
accounting, tax and
advisory professionals
One of the fastest growing
firms serving California,
Nevada and Arizona
6 offices across
3 states
Client retention rate:
90 – 95%
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Full-Time Government Auditors
As full-time government auditors, we understand that governmental entities do not operate independently but in an increasingly complex web of local, state, and federal relationships. We know how these relationships work, what they mean at the local level, and how every public organization’ s focus on resource management is critical to success.
Also, while many accounting Firms can provide services, not all can build excellent working relationships with their clients. The Pun Group LLP prides itself on developing lasting, personal relationships with our clients. Our hands- on partner involvement and low personnel turnover are crucial tools to our success and are highly beneficial to the City.
Local Office’s Information Technology (IT) Audit Capabilities The Pun Group LLP continues our efforts to invest in our IT system to enhance our security further and promote audit efficiency.
Top security for your data is the key to our success. When we have your data virtualized, our Firm takes all the preventive steps to avoid putting your information at risk. Our In-House IT administrator maintains our server to ensure our IT environment is continuously updated with the latest security fixes. Through VPN and Microsoft Remote Desktop, our In-House network administrator can lock down files and system access from a single point, limiting the ability of remote sites to take data from our server.
Access to systems from anywhere and anytime. With more mobility being the norm rather than the exception, our engagement team needs robust access to the engagement files when they are working in your office. Accounting and Auditing Software applications are installed in our “ Private” server and can be securely accessed through VPN and Microsoft Remote Desktop. The Firm uses CCH ProSystem fx® Engagement for audit documentation, which allows real-time synchronization of the work papers and instant collaboration quality control review.
Secure Data File Transfer System. In order to improve audit efficiency, workflow management software plays an essential role between your organization and our engagement team. We employ a secure data file transfer system called Suralink.
Suralink’s dynamic request list is integrated with our secure file-hosting system for seamless document- request coordination. It means all our requests are in one place, updated in real-time, and accessible by everyone working on the engagement. As a client, you no longer have to manually maintain a spreadsheet amongst several people, only to repeat the process in a day or two. Not only makes the operation more cost- efficient, but it also enables you and your team to spend your time getting the job done, not reconciling a messy list of outstanding items.
The Suralink dashboard, as shown below, allows you to visualize the process of document- request fulfillment.
BIG FIRM EXPERTISE.
SMALL FIRM VALUES.
Our professional backgrounds at major national
firms showed us how to solve complicated
business and accounting challenges, but the
sense of personal connection was missing.
We launched The Pun Group because we believe
every client deserves to work with experienced
business advisors and CPAs who have the time –
and take the time – to create an authentic
connection. Every client is our top priority!
A UNIQUE CULTURE.
Personalization” is not just a buzzword – it’s part
of our firm’ s culture. We take a personal approach
to everything we do. We collaborate with our
clients, so they’ re always part of the process. We
listen to our staff to make sure they have the right
support and resources to do a great job. Getting to
know others and discovering how we can serve
them better is not just a sign of good business
practices; it’s a sign of good people.
INNOVATION EMBRACED.
New ideas keep you ahead of the game. From
leveraging the value of emerging technologies to
further refining trusted processes, we adopt proven
solutions to meet your needs.
WHERE YOU GO, WE GO.
WHERE YOU GROW, WE GROW.
Our success is defined by how you achieve yours.
Partner with accomplished accounting and
financial professionals who are laser- focused on
taking your business to the next level.
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Company Information
Provide the legal entity name, Federal Employer Identification Number (EIN), and form of business (i.e. Corporation, LLC, etc.).
Legal Entity Name: The Pun Group, LLP
Firm Registration:
California State Board of Accountancy Number – PAR 7601 Federal Identification Number – 46-4016990
The Pun Group LLP, Certified Public Accountants, and Business Advisors, founded in 2012, is a limited liability partnership.
Identify if the Consultant is a subsidiary of a larger company. If so, whom? The Pun Group, LLP is not a subsidiary of a larger company.
Provide a primary contact name, address, phone number, and email address.
The following professionals will serve as the City’s point of contact:
Kenneth H. Pun, CPA, CGMA
Managing Partner
Email: ken.pun@pungroup. cpa
2121 North California Blvd., Suite 290
Walnut Creek, CA 94596
Phone: ( 949) 777-8801 | Fax: ( 949) 777-8850
Coley Delaney, CPA
Partner
Email: coley. delaney@pungroup. cpa
4660 La Jolla Village Drive, Suite 100
San Diego, CA 92122
Phone: ( 858) 242-5101 | Fax: (949) 777-8850
Identify the location of company headquarters and offices, which will support the implementation.
The Firm’s headquarters are located in Orange County, California, with five branches in San Diego, Walnut Creek, Sacramento ( California), Las Vegas ( Nevada), and Phoenix ( Arizona).
Identify the location, hours of operation, and contact information of ongoing maintenance and support staff.
The Walnut Creek Office, located at 2121 North California Blvd., Suite 290, Walnut Creek, California 94596, will perform the requested services for the City. However, we may assign additional staff from our other offices to the engagement at no extra cost to the City.
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Provide the current number of employees at the company.
The Pun Group, LLP is a full-service accounting firm comprised of fifty professionals providing auditing, accounting, and advisory services to our clients.
Provide the current number of employees dedicated to the solution you are proposing.
The following professionals will be assigned to perform the requested services to the City:
Engagement / Lead Partner Kenneth Pun, CPA, CGMA
Technical/ Concurring Partner Coley Delaney, CPA
Compliance Partner Andrew Roth, CPA
Quality Control Reviewer John (“ Jack”) F. Georger, Jr., CPA, CIA, CGMA GASB Implementation Specialist Gary M. Caporicci, CPA, CGFM, CFF Engagement/ Project Director Sophia Kuo, M.B.A., CPA
Staff Auditors As Needed
Identify all subcontractors and associated scope of work.
No subcontractors will be used in this engagement.
List the company’ s Pacific Grove business license number or statement of understanding that a business license must be purchased prior to doing business with the City.
If selected, the Firm will maintain a valid City of Pacific Grove Business License while conducting any work under the contract.
Identify any pending litigation against the Consultant.
The Firm has no pending litigations that may affect the ability of the Firm to perform the required duties requested by the City of Pacific Grove.
Identify if the Consultant has filed any bankruptcy or insolvency processing in the last 10 years.
The Firm has no conditions such as bankruptcy or insolvency in the past 10 years that may affect the ability of the Firm to perform the required duties requested by the City of Pacific Grove.
Identify any mergers, acquisitions, or sales of the Consultant company within the last five years (if so, an explanation providing relevant details)..
The Firm has no pending mergers or any organizational conflict of interest that may affect the ability of the Firm to perform the required duties requested by the City of Pacific Grove.
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Company Background
Who We Are
With nearly 100 government and not-for-profit audit clients, our Partners have a real passion for the industry and believe we are unmatched in our municipal experience. During the last three years the Firm’ s revenue surpassed 6 million/ year.
The engagement team was carefully selected to provide the City with all the services needed to successfully complete the audit. Your assigned Engagement and Technical Partners will be personally involved in the project, leading a team that has significant experience in governmental auditing. You can be confident that our broad experience and technical capabilities will allow us to provide technical support, interpret findings, and offer practical solutions to any issues that may arise.
About Your Engagement Team
The personnel assigned to this engagement are fully qualified to perform an effective audit of the City, and their extensive experience will be critical to the audit process. Our professionals are familiar with the complexities of governmental accounting, auditing, and financial reporting, including but not limited to all GASB pronouncements, the Single Audit Act, Uniform Guidance ( formerly known as OMB Circular A-133), and fund operations. They have held positions as professional certified public accountants, as well as significant roles within and outside of government agencies. Such qualities will bring to an entity like the City of Pacific Grove the thought leadership, quality, and level of experience it requires.
As full-time government auditors, we understand that governmental entities do not operate independently but in an increasingly complex web of local, state, and federal relationships. We know how these relationships work, what they mean at the local level, and how every public organization’ s focus on resource management is critical to success.
Also, while many accounting Firms can provide services, not all can build excellent working relationships with their clients. The Pun Group LLP prides itself on developing lasting, personal relationships with our clients. Our hands- on partner involvement and low personnel turnover are crucial tools to our success and are highly beneficial to the City.
Because of the “familiarity threat” under the professional audit and independence standards that may exist in longterm relationships with audit firms, the Firm is committed and has sufficient resources to rotate engagement partners, managers, and or supervisors assigned to the City’s audit with personnel with similar or higher qualifications and experience in order to overcome this threat.
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If the Firm changes key personnel, we will provide the City with a written notification. Engagement partners, managers, and specialists will only be changed with the express prior written permission from the City. Audit personnel may be replaced only by those with similar or better qualifications and experience.
Kenneth H. Pun, CPA, CGMA | Engagement/ Lead Partner
Kenneth Pun is the Managing Partner and an Assurance Partner at the Firm. With over twenty- one years of public accounting experience in the state and local government sector, he specializes in audits, management, and consulting for governmental organizations. Mr.
Pun served as the Contract Deputy Finance Director for the City of San Marino in 2017. He has served as the Chair of the California Society of CPAs Governmental Auditing Accounting Committee. He is a Certified Public Accountant and a Chartered Global Management Accountant.
Mr. Pun will actively serve as the Engagement/ Lead Partner overseeing the Engagement Team, developing the audit plan, reviewing fieldwork for quality, approving final reports, and communicating with the Finance Department. He will also be responsible for the timely delivery of all services for the City.
Coley Delaney, CPA | Technical/ Concurring Partner
Coley Delaney is a Partner within The Pun Group LLP’ s Assurance division, in his fifteen ( 15) years of accounting and auditing experience. He has performed audits and other attestation services for several governmental agencies throughout California, including cities, counties, transportation agencies, public financing authorities, housing authorities, redevelopment agencies, and special districts. He is a Certified Public Accountant.
Mr. Delaney will act as the Technical/ Concurring Partner and provide a second partner review of significant high-risk areas, audit reports, and resolution of significant accounting, auditing, and reporting matters.
Andrew Roth, CPA | Compliance Partner
Andrew Roth is a Partner within the Firm and will serve as the primary point of contact for your team. He holds an Advanced Certification in Single Audits through the AICPA. Andrew draws more than a decade of governmental and not-for-profit experience in the areas of financial audit and reporting under governmental and financial accounting standards, evaluation of internal controls under the Committee of Sponsoring Organizations of the Treadway Commission ( COSO) Integrated Framework, the performance of Single Audits under the Uniform Guidance, subrecipient monitoring of Federal Grants, corporate financial reporting, data analytics, and exempt taxation. He is a Certified Public Accountant.
Mr. Roth will lead the audit team in all compliance- related matters, including the Uniform Guidance and Single Audit, and reports issued under specific laws and regulations.
John (“ Jack”) F. Georger, CPA, CIA, CGMA | Quality Control Reviewer Throughout his forty years of experience, Mr. Georger has spent many years in the “ Big 4” and national firms. He worked diligently alongside numerous governmental municipalities, including cities, counties, and transportation agencies, as well as not-for-profit entities, providing clients with financial and compliance auditing as well as consultation services. Mr.
Georger annually instructs over 300 hours in accounting and auditing subjects and has authored training material in governmental accounting and auditing for the AICPA. Mr.
Georger is also the technical reviewer of the CCH Knowledge- Based Audits™ of State and Local Governments with Single Audits, GAAP Guide (FASB), and Governmental GAAP Guide GASB), the gold standard for audit firms throughout the United States. As the Chief Quality Officer in our Firm, he advises clients with their complex accounting questions and supports the engagement team with audit issues. He is a Certified Public Accountant, a Certified Internal Auditor, and a Chartered Global Management Accountant.
Mr. Georger is responsible for reviewing all reports issued by the Firm to ensure the utmost quality and compliance with professional standards and the final quality- control assessment within the engagement.
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Gary M. Caporicci, CPA, CGFM, CFF | GASB Implementation Specialist Gary Caporicci is an appointed member of the State Controller’ s Retirement Advisory Committee. Mr. Caporicci is a leading expert and has authored and taught several courses for CalCPA and AICPA on GASB 68, Accounting and Financial Reporting for Pensions, and GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. As an assurance partner with over forty years of experience, Mr. Caporicci has performed financial, compliance audit, and consultation services to government clients, including cities, counties, transportation agencies, and school districts, as well as various notfor-profit entities. He is a Certified Public Accountant, a Certified Government Financial Manager, and Certified in Financial Forensics.
Mr. Caporicci will utilize his expertise in providing advice and consultation during the implementation of the new GASB standards.
Sophia Kuo, CPA, M.B.A. Engagement/ Project Director
Sophia Kuo is an Assurance Services Director in the Firm who holds an Advanced Certification in Single Audits through the AICPA. She possesses extensive auditing experience, including cities, counties, special districts, and not-for-profit entities. She will work closely with the engagement partners directing and supervising the audit team in its daily activities and tasks. She is a Certified Public Accountant and possesses a MAcc in Accounting and an M.B.A. in Business Administration.
Ms. Kuo will serve as the primary point of contact for your team and will work to ensure the services are conducted within the deadlines and will provide updates on our team’ s progress to the partners and you.
Continuing Education and Professional Development
Because of our commitment to providing the highest quality of services to the City, we provide our professionals with technical training to ensure our people stay current on topics within the industry sectors and better equip themselves to serve our clients.
All professionals are required to obtain continuing education that exceeds the requirements of the American Institute of Certified Public Accountants ( AICPA) and, where applicable, Government Auditing Standards. Our professionals participate in continuing education programs through the following means:
Governmental Accounting and Auditing Conference sponsored by AICPA.
Webinar sponsored by AICPA Government Audit Quality Center.
Annual Conference sponsored by California Society Municipal Finance Officers.
Governmental Accounting and Auditing Conference sponsored by CalCPA.
The Pun Group in-house training on government- specific topics, including but not limited to GASB updates, Government Auditing Standards Revision, Fraud in State and Local Governments, COSO Internal ControlIntegrated Framework, Audit of State and Local Governments, Single Audit, and Mindbridge AI Auditors™.
In 2022, our government professionals received an average of 52 hours of continuing professional education, compared with the 40 hours of accounting industry requirement.
By expanding our knowledge through these seminars/ conferences, we can provide the right solutions to our clients.
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Staff Continuity
The Pun Group LLP is committed to maintaining staff continuity throughout audit engagements, and we can assure you that the partners assigned to this audit will be involved throughout the entire contract term.
While we cannot guarantee that our staff-level members will stay with the Firm, we encourage loyalty by paying competitive wages, offering opportunities for promotion, using state-of-the-art equipment, and providing excellent working conditions. Also, we offer benefits, including retirement plans, medical plans, profit-sharing programs, and continuing education.
Quality-Control System
Our Firm meticulously monitors the quality and contents of our reports. The Pun Group LLP is 100% committed to providing only the highest grade of work possible for our clients and for those who rely on our audits. The Firm strives to exceed professional industry standards because of the continuing respect for our clients and our emphasis on creating long-lasting relationships. The Pun Group LLP works exclusively with those who share the same moral integrity and values. Our quality- control system has been crafted with excellence in mind. It not only meets AICPA standards but also matches our own elevated standards, which include following various professional development activities.
Engagement Team Resumes
The City of Pacific Grove deserves experienced professionals who work as a team. The Pun Group LLP will provide qualified professionals to perform the audit. No subcontractors and/or consultants will be utilized to perform the requested services. Resumes for key engagement team members are presented as follows:
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EXPERIENCE
Kenneth H. Pun is the Managing Partner and an Assurance Partner at The Pun Group LLP, which he founded in 2012 after serving in senior- level positions for well-established national and regional firms. Under his leadership, The Pun Group has become one of the “Top Accounting Firms” in Orange County, according to the Orange County Business Journal. The Pun Group is also on the list of CalCPA' s Top 150 firms.
Prior to founding The Pun Group, Ken served clients in a variety of industries, including small to very large state and local governmental agencies, insurance companies, not-for-profits, healthcare, technology, and manufacturing and distribution clients. His career in public accounting was spent primarily with Regional firms and National firms.
Leveraging more than 21 years of public accounting experience, Ken has earned a reputation of being a trusted advisor to governmental and Healthcare organizations throughout California and neighboring states.
Municipalities and public agencies engage him because of his premier level of client service, commitment, and innovative methods of increasing operational efficiencies and reducing costs.
Ken maintains his deep commitment to professional education through his work as an instructor for the California Education Foundation. He has authored training materials in governmental accounting and auditing, such as Financial Reporting for State and Local Governments, 2018 Government Auditing Standards, and Single Audit Fundamentals for California Education Foundation. He is also the technical reviewer of the CCH Knowledge- Based Audits™ of State and Local Governments with Single Audits. He advises clients on those topics at influential industry forums. Internally, Ken mentors audit teams by providing direction and technical guidance to ensure adherence to the firm’s quality controls.
EDUCATION
University of California, Riverside
B.S. Degree – Business Administration, Emphasis in Accounting
LEADERSHIP & AFFILIATIONS
Member, American Institute of Certified Public Accountants ( AICPA) Member, California Society of Certified Public Accountants ( CalCPA) Past Chair, CalCPA Governmental Accounting and Auditing Committee Member, CalCPA California Committee on Municipal Accounting Member, CalCPA Governmental Accounting and Auditing Conference Planning Committee Member Government Finance Officers Association ( GFOA)
Member, California Society of Municipal Finance Officers ( CSMFO) Member, CSMFO Professional Standards Committee
Speaker, CSMFO Conference ( 2014 and 2018)
Instructor, CalCPA Education Foundation
Technical Reviewer, CCH Knowledge- Based Audits™ of State and Local Governments with Single Audits
RELEVANT EXPERIENCE
City of National City City of San Bernardino
City of Palm Springs City of Desert Hot Springs
City of Lakewood City of Stockton
City of Pomona City of Redding
City of Clovis City of Shafter
CONTINUING PROFESSIONAL EDUCATION
Various courses are offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
Governmental and Nonprofit Annual Update
Government Auditing Standards
GASB Basic Financial Statements for State and Local Governments Single Audits: Uniform Guidance (formerly OMB Circular A-133) Financial Accounting Standards Board Annual Updates
Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.
Kenneth H. Pun
CPA, CGMA
Engagement/
Lead Partner
EMAIL
ken.pun@pungroup. cpa
WEBSITE
www. pungroup. cpa
Expertise:
C I T I E S
C O U N T I E S
T R A N S P O R T A T I O N
A G E N C I E S
E N T E R P R I S E
O P E R A T I O N S
H I G H E R
E D U C A T I O N
N O T - F O R - P R O F I T
L i c e n s e d t o P r a c t i c e i n :
C a l i f o r n i a
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EXPERIENCE
Coley Delaney is a Partner within The Pun Group LLP Assurance division. In his fifteen (15) years of accounting and auditing experience, Coley has worked with governmental agencies, not-forprofit entities, and private for-profit entities. He specializes in conducting financial audits under GAO Yellow Book standards and compliance audits in accordance with Uniform Guidance formerly known as OMB Circular A-133).
Mr. Delaney has performed audits and other attestation services for several governmental agencies throughout California, including cities, counties, redevelopment agencies, public financing authorities, housing authorities, transportation agencies, and special districts, and he has helped them publish their Comprehensive Annual Financial Reports in compliance with GASB Statement No. 34.
Mr. Delaney develops training materials and shares his expertise internally with other Firm professionals. Coley is a frequent speaker at in-house seminars on topics related to government auditing standards and Single Audits.
EDUCATION
University of California, Santa Barbara
B.A. Degree – Business Economics, Emphasis in Accounting
LEADERSHIP & AFFILIATIONS
Member, American Institute of Certified Public Accountants ( AICPA) Member, California Society of Certified Public Accountants ( CalCPA)
RELEVANT EXPERIENCE
City of National City City of San Bernardino
City of Encinitas City of Escondido
City of Shafter City of Stockton
City of Fairfield City of Hermosa Beach
City of Industry San Diego Metropolitan Transit System
CONTINUING PROFESSIONAL EDUCATION
Various courses are offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
Governmental and Nonprofit Annual Update
Government Auditing Standards
GASB Basic Financial Statements for State and Local Governments Single Audits: Uniform Guidance ( formerly OMB Circular A-133) Financial Accounting Standards Board Annual Updates
Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.
Expertise:
C I T I E S
C O U N T I E S
T R A N S P O R T A T I O N
A G E N C I E S
S P E C I A L
D I S T R I C T S
H I G H E R
E D U C A T I O N
N O T - F O R - P R O F I T
L i c e n s e d t o P r a c t i c e i n :
C a l i f o r n i a
Coley Delaney
CPA
Technical/
Concurrent Partner
EMAIL
coley. delaney@pungroup. cpa
WEBSITE
www.pungroup. cpa
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EXPERIENCE
Andrew Roth is a Partner within The Pun Group LLP. He has more than twelve ( 12) years of governmental and not-for-profit experience in the areas of financial audit and reporting under governmental and financial accounting standards, evaluation of internal controls under the Committee of Sponsoring Organizations of the Treadway Commission ( COSO) Integrated Framework, the performance of Single Audits under the Uniform Guidance, subrecipient monitoring of Federal Grants, corporate financial reporting, data analytics, and exempt taxation.
His client portfolio consists of moderate to large municipalities ( cities and counties), municipal transportation districts, water districts, municipal electric utilities, and not-for-profit organizations whose missions involve building communities. His governmental agency clients have federal grant expenditures that range from $ 100 million to $750 million annually.
In various engagements, Andrew has been responsible for leading the service delivery where he has actively contributed and managed the planning process, implementation of the audit work plan, supervision of multiple audit teams, and provided yearly team updates on the changes in compliance testing requirements for the Single Audits, and preparation of all deliverables including the Annual Comprehensive Financial Reports, the Single Audit, Compliance Reports, Data Collection Forms, and City Council/ Board presentations. He has also been a guest speaker on topics involving Federal grants, such as updates to Yellow Book Standards, Compliance Auditing, and Updates to the Uniform Guidance Procurement Requirements.
EDUCATION
San Diego State University
B.A. Degree – Accounting
LEADERSHIP & AFFILIATIONS
Member, American Institute of Certified Public Accountants ( AICPA) Member, California Society of Certified Public Accountants ( CalCPA)
RELEVANT EXPERIENCE
City of National City City of San Bernardino
City of Placerville City of Shafter
City of Beaumont
City of Lodi
Imperial County Local Transportation
Authority
City of Clovis San Diego Metropolitan Transit System
CONTINUING PROFESSIONAL EDUCATION
Various courses offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
Governmental and Nonprofit Annual Update
Government Auditing Standards
GASB Basic Financial Statements for State and Local Governments Single Audits: Uniform Guidance ( formerly OMB Circular A-133) Financial Accounting Standards Board Annual Updates
Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.
Andrew Roth
CPA
Compliance
Partner
EMAIL
andrew. roth@pungroup. cpa
WEBSITE
www. pungroup. cpa
Expertise:
C I T I E S
C O U N T I E S
T R A N S P O R T A T I O N
A G E N C I E S
E N T E R P R I S E
O P E R A T I O N S
H I G H E R
E D U C A T I O N
N O T - F O R - P R O F I T
L i c e n s e d t o P r a c t i c e i n :
C a l i f o r n i a
A r i z o n a
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EXPERIENCE
Jack Georger is the Chief Quality Officer within The Pun Group LLP’ s Assurance division. By leveraging more than forty ( 40) years of public accounting and auditing experience in the government, agribusiness, financial services, manufacturing, and nonprofit sectors, Mr. Georger brings in-depth knowledge and practical expertise to each engagement.
Jack coordinates, plans, and manages financial audit activities, consulting activities, federal and state compliance audit activities, performance audits, and numerous quality control and internal control reviews for a broad mix of governmental agencies and programs throughout the United States.
Mr. Georger leads our Peer Review department providing peer review services to other firms under the practice monitoring program of the AICPA.
Mr. Georger is a continuing professional education course instructor for the AICPA. Annually, he instructs over 300 hours in accounting and auditing subjects. Jack has authored training material in governmental accounting and auditing for the AICPA. He is the technical reviewer of the CCH Knowledge-Based Audits™ of State and Local Governments with Single Audits, GAAP Guide (FASB), and Governmental GAAP Guide (GASB).
Mr. Georger is licensed to practice as a certified public accountant in the states of California, New York, Virginia, Maryland, the District of Columbia, Missouri ( inactive), Connecticut ( inactive), and Wyoming (inactive). He is a Certified Internal Auditor (CIA).
EDUCATION
George Mason University Fairfax, Virginia
B.S. Degree – Accounting
LEADERSHIP & AFFILIATIONS
Member and Instructor, American Institute of Certified Public Accountants ( AICPA) Member, Institute of Internal Auditors
Member, California Society of Certified Public Accountants (CalCPA) Member, New York Society of Certified Public Accountants (NYSSCPA) Chairman, NYSSCPA Government Accounting and Auditing Committee Member, NYSSCPA Auditing Standards Committee
Member, NYSSCPA Sustainability Committee
Member, NYSSCPA Not-for-Profit Committee
Nevada Society of Certified Public Accountants (NSCPA)
Member, Government Finance Officers Association (GFOA) – Reviewer Member, Institute of Internal Auditors
CONTINUING PROFESSIONAL EDUCATION
He has instructed over 300 hours of municipal accounting courses offered by the AICPA.
Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.
John F. Georger, Jr .
CPA, CIA, CGMA
Quality Control
Reviewer
EMAIL
jack.georger@pungroup. cpa
WEBSITE
www. pungroup. cpa
Expertise:
C I T I E S
C O U N T I E S
T R A N S P O R T A T I O N
A G E N C I E S
E N T E R P R I S E
O P E R A T I O N S
H I G H E R
E D U C A T I O N
N O T - F O R - P R O F I T
L i c e n s e d t o P r a c t i c e i n :
C a l i f o r n i a
A r i z o n a
N e v a d a
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EXPERIENCE
Gary M. Caporicci has more than forty years of diversified business experience, including a specialization in audit and management consulting for government organizations. Gary’s clients include public and private universities and colleges, city and county governments, state agencies, joint power authorities, healthcare agencies, transportation agencies, and special districts. Known for his expertise in the areas of construction and government, Gary wrote the AICPA audit guides on these topics, and he has authored many audit and accounting courses for professional groups, as well as academic institutions. He frequently speaks and lectures at many professional organizations, governmental seminars, and conferences held by industry associations, other accounting firms, and universities. Also, he authors white papers for the California Committee on Municipal Accounting.
Before working with the Firm, Gary founded his accounting practice. He also spent eleven years with a “Big Eight” professional services firm, where he was an Audit Manager and gained broad experience in a wide range of industries such as government, construction, manufacturing, mutual funds, and insurance. Gary has held a consultant position with a “Big Four” practice and was Vice President of a national insurance and financial services company.
In 2015 Gary Caporicci was appointed to the State Retirement Advisory Committee by the State Controller.
EDUCATION
Armstrong University
B.S. Degree – Accounting and Finance
LEADERSHIP & AFFILIATIONS
Member and Instructor, American Institute of Certified Public Accountants (AICPA) Member, Author, and Instructor, California Society of Certified Public Accountants (CalCPA) Past Chair, CalCPA Governmental Accounting and Auditing Committee Chair and Speaker, CalCPA Governmental Accounting and Auditing State Conferences Member, CalCPA Council
Chair, California Committee on Municipal Accounting (CCMA) Member, Government Finance Officers Association (GFOA)
Member, California Society of Municipal Finance Officers (CSMFO) Member, Governmental Accounting Standards Board (GASB)
Member, Deposit and Investment Risks Disclosure Task Force (GASB No. 40) National Reviewer and Speaker, Government Finance Officers Association Adjunct Professor, National University
Past Member, Texas Governmental Accounting and Auditing Committee GFOA Certificate for Excellence in Financial Reporting – Reviewer
CONTINUING PROFESSIONAL EDUCATION
Author and instructor of various municipal accounting courses offered by the AICPA, CalCPA Education Foundation, and local universities, including:
Governmental and Non-profit Annual Update
Government Auditing Standards
GASB Basic Financial Statements for State and Local Governments Single Audits: Uniform Guidance ( formerly OMB Circular A-133) Financial Accounting Standards Board Annual Updates
Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.
Gary M. Caporicci
CPA, CGFM, CFF
GASB
Implementation
Specialist
EMAIL
gary.caporicci@pungroup. cpa
WEBSITE
www.pungroup. cpa
Expertise:
C I T I E S
C O U N T I E S
T R A N S P O R T A T I O N
A G E N C I E S
E N T E R P R I S E
O P E R A T I O N S
H I G H E R
E D U C A T I O N
N O T - F O R - P R O F I T
L i c e n s e d t o P r a c t i c e i n :
C a l i f o r n i a
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EXPERIENCE
Sophia Kuo is a Director within The Pun Group, LLP’ s Assurance division. In her seven years of accounting and auditing experience, Sophia has worked with governmental agencies, not-forprofit entities, and private for-profit entities. She possesses governmental expertise that ranges from GASB audit/reporting, Internal Controls/ COSO Framework, Single Audit, Corporate Financial Reporting, Data Analysis, and Taxation.
Ms. Kuo has performed audits and other attestation services for several governmental agencies throughout California. Her portfolio includes cities, counties, redevelopment agencies, public financing authorities, housing authorities, transportation agencies, and special districts. Also, she has helped them publish their Annual Comprehensive Financial Reports in compliance with GASB Statement No. 34.
EDUCATION
Fu Jen Catholic University
B.A. Degree – International Trading and Finance, Emphasis in Finance Idaho State University
Master of Accounting ( MAcc)
Master of Business Administration ( M.B.A.)
LEADERSHIP & AFFILIATIONS
Member, American Institute of Certified Public Accountants ( AICPA) Member, California Society of Certified Public Accountants ( CalCPA)
RELEVANT EXPERIENCE
City of Coachella City of Culver City
City of Desert Hot Springs City of Gardena
City of Laguna Niguel City of Lakewood
City of Monterey City of Monterey Park
City of Perris City of Pomona
CONTINUING PROFESSIONAL EDUCATION
Various courses are offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
Governmental and Non-profit Annual Update
Government Auditing Standards
GASB Basic Financial Statements for State and Local Governments Single Audits: Uniform Guidance ( formerly OMB Circular A-133) Financial Accounting Standards Board Annual Updates
Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.
Sophia Kuo
CPA, M. B. A.
Engagement/
Project Director
EMAIL
sophia. kuo@pungroup. cpa
WEBSITE
www. pungroup. cpa
Expertise:
C I T I E S
C O U N T I E S
T R A N S P O R T A T I O N
A G E N C I E S
E N T E R P R I S E
O P E R A T I O N S
H I G H E R
E D U C A T I O N
N O T - F O R - P R O F I T
L i c e n s e d t o P r a c t i c e i n :
C a l i f o r n i a
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Company Qualifications
List of Current Municipal Clients
The Pun Group LLP has performed numerous audits of organizations subject to financial and compliance audits. These audits were performed under auditing standards generally accepted in the United States, Government Auditing Standards, Uniform Guidance ( formerly known as OMB Circular A-133), and its Compliance Supplement ( when applicable), Office of the State Controller’ s Minimum Audit Requirements and Reporting Guidelines.
A representative list of our current clients is as follows:
Municipalities Dates Financial
Audit
Single
Audit
GFOA
Certificate
Total
Hours
City of Adelanto 2021 – Present Yes Yes Yes 700
City of Alameda 2019 – Present Accounting and Consulting Services 150 City of Arvin 2013 – Present Yes Yes N/A 400
City of Baldwin Park 2022 – Present Yes Yes Yes 700
City of Bell 2018 – Present Yes Yes Yes 520
City of Bradbury 2012 – Present Yes N/A N/A 150
City of Calexico 2007 – Present Yes Yes N/A 750
City of Clovis 2006 – Present Yes Yes Yes 500
City of Coachella 2017 – Present Yes Yes Yes 410
City of Cottonwood, AZ 2007 – Present Yes Yes Yes 400
City of Corona 2021 – Present Yes Yes Yes 640
Town of Corte Madera 2022 – Present Yes Yes N/A 400
Town of Danville 1999 – Present Yes Yes Yes 400
City of Douglas, AZ 2020 – Present Yes Yes Yes 300
City of Desert Hot Springs 2013 – Present Yes N/A N/A 700 City of Fresno 2022 – Present Yes Yes Yes 1,450
City of Gardena 2007 – Present Yes Yes Yes 700
City of Gilroy 2020 – Present Yes Yes Yes 640
City of Glendora 2017 – Present Yes Yes Yes 430
City of Gustine 2017 – Present Yes N/A N/A 400
City of Hemet 2015 – Present Yes Yes N/A 380
City of Hercules 2020 – Present Yes Yes Yes 450
City of Lakewood 2013 – Present Yes Yes Yes 380
City of Lomita 2020 – Present Accounting and Consulting Services 150 PGCC 11-19-2025
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Municipalities Dates Financial
Audit
Single
Audit
GFOA
Certificate
Total
Hours
City of Lynwood 2016 – Present Yes Yes Yes 585
City of Madera 2019 – Present Yes Yes Yes 470
City of Montebello 2022 – Present Yes Yes Yes 600
County of Monterey 2023 – Present Yes Yes Yes TBD
City of Napa 2019 – Present Yes Yes Yes 750
City of National City 2013 – Present Yes Yes Yes 600
City of Palm Springs 2020 – Present Yes Yes Yes 1,000
City of Paramount 2023 – Present Yes Yes Yes 460
City of Patterson 2017 – Present Yes Yes Yes 450
City of Placerville 2008 – Present Yes Yes N/A 400
City of Redlands 2022 – Present Yes Yes Yes 650
City of Ridgecrest 2009 – Present Yes Yes Yes 300
City of Rohnert Park 2020 – Present Yes Yes Yes 700
City of Salinas 2022 – Present Yes Yes Yes 800
City of San Mateo 2021 – Present Yes Yes Yes 900
City of Santa Clarita 2022 – Present Yes Yes Yes 1,200
City of Santa Cruz 2023 – Present Yes Yes Yes 600
City of Seal Beach 2017 – Present Yes Yes Yes 410
City of Stockton 2012 – Present Yes Yes N/A 3,000
City of Tracy 2021 – Present Yes Yes Yes 960
Town of Tiburon 2022 – Present Yes Yes Yes 452
City of Visalia 2021 – Present Yes Yes Yes 650
Imperial County Transportation
Commission 2020 – Present Yes Yes Yes 600
Nevada County Transportation
Commission 2021 – Present ComplianceServices N/A N/A 450 San Diego Metropolitan Transit System 2005 – Present Yes Yes Yes 1,850 Shasta Regional Transportation Agency 2015 – Present Yes N/A N/A 400 Alameda County Water District 2018 – Present Yes Yes N/A 550 Camrosa Water District 2020 – Present Investment
Pool 120
Carmel Area Wastewater District 2022 – Present Yes Yes N/A 150 CAWD/ PBSCD Wastewater Reclamation
Project 2022 – Present Yes N/A N/A 150
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Municipalities Dates Financial
Audit
Single
Audit
GFOA
Certificate
Total
Hours
Central Basin Water District 2018 – Present Yes Yes N/A 400 Las Virgenes Municipal Water District 2014 – Present Yes N/A N/A 400 Los Angeles County Law Library 2020 – Present Yes N/A N/A 180 Marina Coast Water District 2012 – Present Yes N/A Yes 240 NALEO Educational Fund and NALEO 2020 – Present Yes N/A N/A 300 Olivenhain Municipal Water District 2019 – Present Yes Yes Yes 200 Padre Dam Municipal Water District 2020 – Present Yes Yes Yes 250 Rancho Murieta Community Services
District 2019 – Present Accounting and Consulting Services 800 Rancho Santa Fe Fire Protection District 2015 – Present Yes N/A N/A 120 San Bernardino County Emergency
Training Center 2020 – Present Yes N/A N/A 50
San Bernardino County Preschool
Services Department 2020 – Present Yes Yes N/A 150
San Bernardino County Fire Protection
District 2016 – Present Yes N/A N/A 200
San Elijo Joint Powers Authority 2016 – Present Yes N/A N/A 146 Santa Fe Irrigation District 2019 – Present Yes N/A N/A 250 Sweetwater Authority 2022 – Present Yes Yes Yes 270
South Bay Cities Council of
Governments 2020 – Present Yes N/A N/A 100
South Coast AQMD 2023 – Present Yes Yes N/A 410
South Orange County Water Authority 2017 – Present Yes Yes Yes 240 South Bay Regional Public
Communications Authority 2015 – Present Yes N/A N/A 100 Southwestern Community College
District 2009 – Present Yes Yes N/A 720
Valley Sanitary District 2015 – Present Yes N/A Yes 140 West Valley Mosquito and Vector Control
District 2016 – Present Yes N/A N/A 100
Zone 7 Water Agency 2020 – Present Yes Yes Yes 400
GFOA Award Program
The Pun Group LLP realizes the importance of maintaining the Certificate for Excellence in Financial Reporting from the GFOA. Our professionals are exceptionally well qualified to assist governments in obtaining and maintaining their certificates.
The Firm’ s commitment and involvement in the development of auditing and accounting standards can be shown in our active participation in the GFOA’ s financial statements certificate programs. 100% of our current clients who submitted their Annual Comprehensive Financial Report to the GFOA received these awards.
Also, two of our senior partners, Mr. Gary Caporicci and Mr. John F. Georger are members of the Government Finance Officers Association and participate in the GFOA Special Review Committee.
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Firm’s Experience with Single Audit and Grants
The Pun Group LLP works with numerous organizations that receive extensive governmental funding and are subject to auditing under Uniform Grant Guidance. This Firm’s specialization helps our audit team understand the procedures’ nuances and execute the engagement accordingly. We also assist in preparing the data collection form and preparing the reporting package for submission to the federal audit clearinghouse.
The Firm is a member of the AICPA Governmental Audit Quality Center and has demonstrated its commitment to audit quality, including those performed under Government Auditing Standards and Uniform Guidance. Also, we are a recipient of the Single Audit Resource Center’s Award for Excellence. This award is based on the positive feedback result from our clients in an independent survey, demonstrating our Firm’ s highest commitment to quality and client satisfaction.
We utilize standardized audit programs from the federal government’ s Compliance Supplement to ensure that our procedures meet federal standards. Our audit programs are continually updated to reflect the revisions of OMB.
Our Uniform Guidance risk-based approach focuses on areas of higher risk of non- compliance. Such an approach truly reflects the federal government' s intent by concentrating on the following four steps:
1. Planning & Internal control assessment: The engagement team will obtain an understanding of the City and its operating environment and its internal control over the Schedule of Expenditures of Federal Awards. The engagement team will perform the major program determination and communicate with the City’ s management before conducting major program testing.
2. Testing & compliance assessment: The engagement team will obtain an understanding of internal control over compliance on the direct and material compliance requirements for each major program. The engagement will perform testing on internal controls over compliance to ensure the controls are in place working effectively and properly and that the City is in compliance with the applicable regulations in administering major programs.
3. Reporting & Review: The engagement team will review and prepare the single audit reports and perform quality control procedures following the Quality Control Standards issued by the AICPA. Any comments will be issued to the management or the Charge with Governance, depending on the magnitude of the issues. Upon obtaining the final approvals from management, the Single Audit report will be issued.
4. Issuance to Clearing House: The engagement team will assist the City in drafting the data collection form and completing the final submission, including uploading the audit package to the Federal Clearing House.
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Our Firm has audited hundreds of millions of dollars in federal expenditures, making our engagement team uniquely experienced in single audits. We are familiar with grantors, such as:
Following are a few examples of the types of federal programs our engagement team has experience auditing:
Assistance
Listings
Child and Adult Care Food Program 10.558
Community Development Block Grants/Entitlement Grants 14.218 Home Investment Partnership 14.239
Housing Vouchers Cluster 14.871
Title XVI Water Reclamation and Reuse Program 15.504
Equitable Sharing Program 16.922
WIA/WIOA Adult Program 17.258
WIA/WIOA Youth Activities 17.259
WIA/WIOA Dislocated Worker Formula Grants 17.278
Airport Improvement Program 20.106
Highway Planning and Construction 20.205
Federal Transit - Capital Investments Grants 20.500
Federal Transit - Formula Grants 20.507
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 Capitalization Grants for Clean Water State Revolving Funds Cluster 66.458 Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 Special Programs for the Aging - Title III, Part C - Nutrition Services 93.045 Nutrition Services Incentive Program 93.053
Temporary Assistance for Needy Families (TANF) State Programs 93.558 Community Service Block Grant 93.569
Child Care and Development Block Grant 93.575
Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 ARRA - Emergency Contingency Fund for Temporary Assistance for Needy Families ( TANF) State Program s 93.714 National Urban Search and Rescue (US&R) Response System 97.025 Homeland Security Grant Program 97.067
Corporation for National and Community Services
Department of Agriculture
Department of Education
Department of Health and Human Services
Department of Housing and Urban Development
Department of Transportation
Environmental Protection Agency
Department of Commerce
Department of Labor
Department of Homeland Security
Department of Justice
Department of Treasury
Executive Office of the President
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Firm’s Experience with Finance and Community Development Institutions Our Firm has provided professional services to several Finance Authorities, as well as Community Development Agencies. Some examples are:
Finance Authorities:
City of Bell Public Finance Authority
City of Desert Hot Springs Financing Authority
City of Hercules Public Financing Authority
City of Lakewood Public Financing Authority
City of Madera Financing Authority
City of Palm Springs Public Financing Authority
City of Patterson Financing Authority
West Patterson Financing Authority
City of Perris Public Financing Authority
City of Pomona Public Financing Authority
Town of Danville Financing Authority
Community Development Agencies:
City of Lodi (Special Purpose Audits – Community Development Block Grant/ Home Funds) Morgan Towers ( Multi- Family Program), National City Community Development Commission National City Community Development Commission
Perris Community Economic Development Corporation
Firm’s Experience with Housing Authorities and Subsidized HUD Programs The assigned engagement team will count on their experience with numerous financial and compliance audits as well as agreed- upon procedures to deliver the requested services. Our team has extensive experience with the following subsidized HUD programs:
Housing Choice Voucher ( HCV)
Family Self Sufficiency ( FSS)
Shelter Plus Care (SPC)
Housing Opportunities for Persons with AIDS (HOPWA)
Veterans Affairs Supportive Housing ( VASH)
Community Development Block Grant ( CDBG) – City of Lynwood HOME Investment Partnership Grant ( HOME) – City of Lynwood In addition, our Firm has provided professional services to several Housing Authorities. Some examples are:
Calexico Housing Authority
Culver City Housing Authority
Douglas Housing Authority, AZ
Encinitas Housing Authority
Glendora Housing Authority
Lakewood Successor Housing Authority
National City Community Development Commission
Napa Housing Authority
Morgan Towers ( Multi- Family Program), National City Community Development Commission Monterey Park Housing Authority
Perris Housing Authority
Pomona Housing Authority
Port Hueneme Housing Authority
Poway Housing Authority
Housing Authority of the Redding
South Gate Housing Authority
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Firm’s Experience Performing Compliance Audits and Agreed-upon Procedures ( Measures) Our Firm has performed several audits with requirements similar to the ones requested by the City. Some examples follow:
Measure A
City of Coachella
City of Hemet
City of Perris
City of Stockton
Measure B
City of Hercules
City of Stockton
Measure BB
City of Seal Beach
Measure C
City of Hercules
Measure D
City of Palm Springs
Imperial County Local Transportation Authority
Measure G
City of Gardena
Measure J
City of Palm Springs
Measure L
City of Huntington Park
Measure M
City of Culver City
City of Stockton
Measure O
City of Hercules
Measure R
City of Culver City
City of Gardena
City of Lynwood
Measure T
City of Madera
Measure U
City of Port Hueneme
Measure W
City of Stockton
Measure X
City of Monterey
Measure Z
Southwestern Community College District
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Our Professional’s Experience with Pensions and Other Post-Employment Benefits Members of our team have experience in providing professional services to the following employee retirement systems:
California Public Employees' Retirement System ( CALPERS) Culver City Other Postemployment Benefit Plan
Nevada Public Employees Retirement Systems
Sacramento County Employees’ Retirement System
San Francisco Community College District
San Diego County Employees Retirement Association
San Diego City Employees’ Retirement System
San Diego Transit Corporation Employee’ s Retirement Plan San Jose Employee Retirement System
University of California Pension Plans
In addition, our team draws years of expertise reviewing budget documents as well as various pension and other post-employment benefits (“ OPEB”) plan documents, including but not limited to trust agreements, pension, and OPEB actuarial reports, GASB 68 and 75 reports, as well as GASB 75 reports prepared under Alternative Measurement Methods. A relevant list of plans includes:
California Public Employees' Retirement System GASB 68 reports Public Agency Retirement System (“ PARS”) GASB 68 reports San Bernardino County Employees’ Retirement Association (“ SBCERA”) GASB 68 reports PARS GASB 75 reports
Experience in Performing Program-Specific Audits
The assigned engagement team will count on their experience with numerous financial and compliance audits as well as agreed- upon procedures to deliver the requested services to the City. Our team is extremely experienced with the following:
National Transit Database (“ NTD”)
Federal Transit Administration (“ FTA”)
Local Transportation Fund (“LTF”)
State Transit Assistance Fund (“STAF”)
State of Good Repair (“ SGR”)
Low Carbon Transit Operations Program Accounts (“ LCTOP”) Public Transportation Modernization Improvement and Service Enhancement Account ( PTMISEA) Proposition 1B
State of California Transportation Development Act (“ TDA”), including the requirements of the Southern California Association of Governments’ Transportation Development Act Conformance Auditing Guide Special District, Transit District Reporting, and Transportation Reporting Requirements, as specified by the California State Controller
Sales Tax Measures
Debt Compliance/ Bond Debt
We have conducted financial, and compliance audits for transportation clients, such as:
Big Bear City Airport District Culver City Bus Lines
GTrans ( Gardena Municipal Bus Lines) Gold Coast Transit Imperial County Local Transportation Authority North County Transit District San Diego Metropolitan Transit System Shasta Regional Transportation Authority SunLine Transit Agency Ventura County Transportation Commission Imperial County Transportation Commission Nevada County Transportation Commission PGCC 11-19-2025
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Firm’s Expertise and Experience in Governmental Accounting Rules and Regulations, Including Implementation of new GASB Pronouncements
Changing federal laws, statutes, ordinances, and compliance provisions have created unprecedented complexity in public accounting today. Our GASB Implementation Specialist, Mr. Gary Caporicci, has helped our clients implement new standards while adapting to changes within the existing standards. Our partners serve on committees that have input into how new standards are written. They actively participate in industry associations focused on state and local governments. By participating in industry associations and activities, we are always up to date on the latest industry changes and their impact on your operations. We will keep you and our colleagues in the Firm fully informed of these developments.
Also, our professionals are familiar with the complexities of governmental accounting, auditing, and financial reporting, including but not limited to all GASB pronouncements, the Single Audit Act, and Uniform Guidance ( formerly known as OMB Circular A-133) and fund operations. They have held positions as professional certified public accountants and taken on significant roles within and outside government agencies. Such experience brings to our clients the thought leadership, quality, and level of expertise they require.
The Firm is well versed and experienced in assisting our clients with the implementation of the applicable GASB pronouncements every year, such as GASB 34, GASB 54, GASB 65, GASB 68, GASB 75, and GASB 84. Mr. Gary Caporicci, as a chair of the California Committee on Municipal Accounting “ CCMA,” wrote “ white papers” on each of these pronouncements.
Throughout the engagement, several new GASB pronouncements will become effective. The Engagement Team will pay specific attention to upcoming statements that will become effective and work with the City to create a plan to address new standards before the implementation period. This step will allow the finance department staff the needed time to be prepared.
Special Attention: GASB Pronouncements Effective for Reporting Year 2023 GASB Statement No. 87, Leases
The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.
Effective Date: The requirements of this Statement are effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements The primary objective of this Statement is to improve financial reporting by addressing issues related to publicprivate and public- public partnership arrangements ( PPPs).
Effective Date: for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.
GASB Statement No. 96, Subscription- Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription- based information technology arrangements ( SBITAs) for government end users ( governments).
Effective Date: for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.
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References
References
The following are examples of some of the engagements with similar requirements as the City of Pacific Grove’ s proposal. Please feel free to contact these agencies to learn more about their experiences working with us.
Name of Public Agency San Diego Metropolitan Transit System Contact Info Ms. Erin Dunn, Controller
[email protected] | (619) 557-4536
Total Hours Approximately 1,850 hours
Contract Price $ 225,000/year
Date of Services 2015 – Present
Scope of Work/
Reports Prepared
Financial Audit and Compliance Services: Annual Comprehensive Financial Report Audit, GFOA Award, San Diego Transit Corporation Employee’s Retirement Plan, AUP/National Transit Database ( NTD): MTS, San Diego Transit Corp., San Diego Trolley, Inc., AUP/Transportation Development Act ( TDA): MTS, San Diego Transit Corp., San Diego Trolley, Inc., AUP/Indirect Costs, and Public Transportation Modernization Improvement Service Enhancement Account (PTMISEA).
Name of Public Agency City of Stockton
Contact Info Mr. Jay Kapoor
[email protected] | (209) 937-5435
Total Hours 3,000 hours
Contract Price $ 272,000/year
Date of Services 2012 – Present
Scope of Work/
Reports Prepared
Financial Audit and Compliance Services: Annual Comprehensive Financial Report, GFOA Award, Single Audit, GANN Limit, Measure A, Measure W, Measure M, Entertainment Venues, Revenue and Expenditures related to Downtown Marina, Cannabis License Audits, Review of Major Revenues required by the Bankruptcy Agreement with Assured Guarantee.
Name of Public Agency City of Tracy
Contact Info Ms. Sara Cowell
[email protected] | (209) 831-6862
Total Hours 960 hours
Contract Price $ 96,500/year
Date of Services 2021 – Present
Scope of Work/
Reports Prepared
Financial Audit and Compliance Services: Annual Comprehensive Financial Report, GFOA Award, Single Audit, GANN Limit, National Transit Database ( NTD), State Controller’s Reports (City, PFA, Operating Partnership JPA, City’s Transit Operator’s General Services, and Specialized Services)
Name of Public Agency City of Desert Hot Springs
Contact Info Mr. Geoffrey Buchheim, Finance Director
[email protected] | (760) 329-6411
Total Hours 700 hours
Contract Price $ 75,000/ year
Date of Services 2013 – Present
Scope of Work/
Reports Prepared
Financial Audit and Compliance Services: Annual Comprehensive Financial Report Audit, GFOA Award, Single Audit, GANN Limit, Desert Hot Springs Successor Agency, Desert Hot Springs Financing Authority, Desert Hot Springs Health and Wellness Foundation, New Market Tax Credit Audit (Desert Hot Springs Health and Wellness Foundation), Annual State Controller’s Reports, AUP/Transient Occupancy Tax, Utility User Tax, DHS Housing Audits.
Name of Public Agency City of National City
Contact Info Mr. Phillip Davis, Financial Analyst
[email protected] | (619) 336-4246
Total Hours 600 hours
Contract Price $ 70,000/year
Date of Services 2013 – Present
Scope of Work/
Reports Prepared
Financial Audit and Compliance Services: Annual Comprehensive Audit, GFOA Award, Single Audit, GANN Limit, HUD Single Audit/Morgan Towers, Financial and Compliance Reports – Kimball Towers, Annual State Controller’s Report.
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Specific Audit Approach and Proposed Audit Schedule
Scope of Work, Audit Approach, and Methodology
The City of Pacific Grove is requesting the Firm to perform Professional Auditing Services and issue opinions on the City’s financial statements. The audits are to be completed in accordance with all applicable and generally accepted auditing standards, including, but not limited to, the following:
Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants AICPA).
US General Accounting Office’ s ( GAO) Standard for Audit of Governmental Organizations, Programs, Activities, and Functions.
Local Governments and Governmental Accounting Standards Board ( GASB) Pronouncements.
The standards applicable to financial audits contained in the most current version of the Generally Accepted Government Auditing Standards ( Yellow Book), issued by the Comptroller General of the United States.
The provisions of the Single Audit Act as amended in 1996.
The provisions of the US Office of Management and Budget ( OMB) Uniform Guidance ( formerly known as Circular A-133), Audits of State and Local Governments and Non- profit Organizations, and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
The Firm will perform the following services:
Financial Statement Audits and issuance of an opinion statement on the Annual Comprehensive Financial Report of the City of Pacific Grove. The audit will be conducted in accordance with Generally Accepted Government Auditing Standards. The report will be in full compliance with all current GASB pronouncements.
In addition, the Firm will assist in meeting the requirements for the Government Finance Officers Association GFOA) “ Certificate of Achievement for Excellence in Financial Reporting.” If required: Prepare a Single Audit Report which will include the following:
o Report on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. o Report on compliance with requirements applicable to each major program, internal control over compliance, and on the schedule of expenditures of federal awards in accordance with Uniform Guidance, “ Audits of State and Local Governments,” and the Single Audit Act of 1984 ( Public Law 98-502).
o Schedule of Expenditures of Federal Awards.
o Notes to Schedule of Expenditures of Federal Awards.
o Schedule of Findings and Questioned Costs.
o Any other required schedules or reports.
o Prepare the Data Collection Form for Reporting on Audits of States, Local Governments, and NonProfit Organizations.
Perform Agreed Upon Procedures Applied to the Appropriations Limit ( GANN), as consistent with recommendations by the League of California Cities and as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. Prepare and provide one ( 1) electronic and one 1) hard- copy report.
Issue an Auditor’ s Communication Letter with any reportable conditions found during the audit. A reportable condition will be defined as a material weakness or significant deficiency.
Issue a separate " Management Letter" that includes recommendations for improvements on internal control, accounting procedures, and other significant observations that are considered to be no reportable conditions.
Assist with the implementation of applicable Governmental Accounting Standards Board ( GASB) pronouncements, including, but not limited to, GASB 94 and 96.
Prepare and submit to the State Controllers’ Office: The Financial Transactions Report, the Annual Street Report, and any additional reports as required by the State Controllers’ Office on an annual basis in accordance with the time frames set by the State Controllers’ Office.
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Audit the Measure X financial statements of the City for each fiscal year and provide a compliance audit report on the requirements noted in TAMC Ordinance No. 2016- 01 and in the Measure X Master Programs Funding Agreement, attached as Exhibit C, as of June 30, 2021. Provide one electronic copy of the compliance report and one (1) hard copy of the report.
Provided By Client (PBC) Lists: They will be provided for both interim and final audits according to an agreed- upon timeline between the engagement team and the City in order to be reasonably prepared for a field audit. The engagement team will meet with the City’s management during the initial planning stage to discuss audit schedules and review the prior year' s audit findings ( if any). We will deliver a list of all documents to be provided by the City’ s staff. Once such materials are agreed upon by the engagement team and City’s finance personnel, no other schedules will be requested unless new information comes to light in the course of test work.
Attendance at Meetings and Hearings: The engagement team will participate in as many meetings with staff as needed to perform the work scope tasks, present the audit plan prior to beginning fieldwork, and discuss the draft audit reports. The team will attend public meetings to present and discuss its findings and recommendations. Once all issues of discussion are resolved, the completed Financial Reports, Single Audit report ( if applicable), and other reports will be delivered to the City according to the agreed- upon schedule.
Proposed Audit Adjustments: All proposed adjusting journal entries by the Firm will be discussed and explained in a timely manner with the designated Finance Department personnel. Such proposed adjustments will be in a format that shows the lowest level of posting detail needed for data entry in the general ledger systems.
Supplemental Reports, Audits, or Agreed-Upon Procedures: Other services, such as agreed- upon procedures, may be deemed necessary. These services will be performed at agreed- upon rates and will be added to a written agreement before commencing audit work. The Firm and the City of Pacific Grove will discuss and approve the scope and associated costs of these tasks.
Advice and Consultation: Will be provided throughout the year on matters relating to accounting and financial reporting. Such services do not include any task that entails significant research or a formal report.
GASB Implementation: The Firm will provide technical assistance and training in the implementation of applicable GASB pronouncements not yet in effect. We have a dedicated partner, Mr. Gary Caporicci, who will be responsible for providing advice and consultation for the implementation of these new standards. The Firm will advise the City on the applicability of accounting and reporting standards and other accounting issues and provide guidance on new note disclosures, GASB implementations, and other reporting requirements. We will also provide training, resources, and information on topics relevant to the City’s financial reporting and operations. ( Based on the scope, additional charges may apply.)
Report of all Irregularities and Illegal Acts: The Firm will make an immediate written report of all irregularities and illegal acts or indications of illegal actions of which we may become aware. The engagement team will also make all communications to the City required by the audit standards under which the engagement is performed.
Working Paper Retention and Access to Working Papers: The Firm will retain, at its own expense, all working papers and reports for a minimum of five (5) years unless the City of Pacific Grove notifies the Firm in writing of the need to extend the retention period. The Firm will make working papers available upon request by the City of Pacific Grove or its designees.
Also, we will comply with reasonable requests from successor auditors and allow them to review working papers that relate to matters of continuing accounting significance.
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As previously discussed, the Firm will deliver all of the required work, complete the audit, and issue the necessary auditor’ s reports within the periods outlined by the City. Milestones and proposed timeline for years 2+ of the engagement will be based on the City’s desired schedule of deliverables, although we would like to suggest the following:
Milestones and Proposed Timeline * ^
Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Completed Client Acceptance/ Continuance Checklist ••
Roll Forward Prior Year Workpapers ••
Perform Independence Check/ Annual Confirmation ••
Review Predecessor Workpapers ••
Prepare Engagement Budget & Engagement Letter ••
Prepare Audit Planning Memo ••
Upload PBC both interim and year end to Suralink ••
Schedule Interim and Year End Fieldwork •
Engagement Team Planning and Assign Staff • ••
Perform Risk Analysis on Legal Expenditures • ••
Send confirmations • ••
Perform Fraud Inquiries - Management and Governing Body • •• Review Conflict of Interest Policy and/ or Form 700 • •• Evaluate ITGC • ••
Review significant Transaction Cycles • ••
Census Data Testing for Pension and OPEB • ••
Complete Use of Specialist Form • ••
Review and document SSAE16 for each service organization • •• Confirm Year End Fieldwork Date • •`•
Engagement Team Planning and Assign Staff • ••
Conduct Fraud Discussion with Engagement Team • ••
Perform Journal Entry Testing - Fraud • ••
Perform retrospective review of significant accounting estimates • •• Review minutes • ••
Import closed trial balance and generate lead sheets • •• Upload detail general ledger to MindBridge AI Auditor • •• Perform beginning fund balance/ net position roll forward • •• Perform Major Fund Determination • ••
Calculate Planning Materiality • ••
Perform Preliminary Analytical Procedures • ••
Perform Audit • ••
Perform Final Analytical Procedures • •`•
Review Minutes • ••
Evaluate Commitment and Contingency Footnote • ••
Perform going concern evaluation • ••
Inquire Management about subsequent event • •
Draft Management Representation Letter • ••
Prepare Financial Statements and Notes Disclosures • •• Prepare Independent Auditor' s Report • ••
Partner & EQR Review • •
Obtain Management Representation Letter ••
Draft Reports to Client • ••
Final sign offs on Workpapers ••
Finalization of Reports * ^• by December 5th
Above proposed timeline is subject to review and approval, and it can be modified as needed to meet client's needs.
Based on Financial Statement/Annual Comprehensive Financial Reporting audit timing.
Single Audit timing to be determined by mutual consent
2024
Jan
Planning & Internal Control Evaluation
Fieldwork
Post Fieldwork
Dec
2023
Jul Aug Sep Oct Nov
Engagement Acceptance & General Planning
May Jun
Report Preparation & Review
Final Production
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Methodology and Segmentation of Engagement
The Firm’s audit approach consists of six phases: Engagement Acceptance and General Planning, Planning and Internal Control Evaluation, Fieldwork, Post Fieldwork, Report Preparation and Review, and Final Production.
1. Engagement Acceptance and General Planning: The engagement partner and manager will meet with City’s management to obtain an update on current City policies and procedures, help identify risk areas and new operations, and establish any specific requirements they may have. Our team will work on the identification of unique transactions, implementation of new GASB pronouncements, and develop the audit work plan for the engagement.
2. Planning and Internal Control Evaluation: The engagement team, including the engagement partner, will assess accounting policies adopted by the City in order to obtain an understanding of its structure and its operating environment. Also, our team will review internal controls on all significant transaction classes, perform walkthroughs and/or tests of internal controls, perform preliminary analytical procedures, develop an initial risk assessment, evaluate Single Audit compliance, identify any audit issues, and prepare confirmation correspondence. The engagement team and City’ s Management will establish expectations, including responsibilities and assignments for the year-end fieldwork, and will hold a progress status meeting at the end of the interim phase.
3. Fieldwork: The engagement team, including the engagement partner, will conduct audit procedures on account balances in the general ledger, finish confirmation procedures, perform data analysis using our AI tools, search for unrecorded liabilities, perform substantial analytical review procedures, complete work on compliance with Federal Assistance, and conclude fieldwork. The engagement team and City’s Management will hold an exit conference at year-end. Periodic update meetings will be held to communicate audit progress to management.
4. Post Fieldwork: During the phase, the engagement team, including the engagement partner, will review all documents and evaluate commitments and contingencies. The team will perform an assessment of the going concern and jointly plan for the next steps..
5. Report Preparation and Review: The Firm will review and prepare audit reports and perform quality control procedures following the Quality Control Standards issued by the AICPA. We will also examine reports for compliance with GFOA reporting guidelines at no additional cost. Any comments will be recorded in a letter to management. At the City’s request, the engagement partner and manager will present the audit to City’s Management and other governing bodies.
6. Final Production: The final phase of our approach entails obtaining the management representation letter and final financial statement report, which may include a final presentation to the City’ s Management and other governing bodies ( if applicable).
The Firm will complete the audit fieldwork and issue all reports within the established timeframe, assuming no internal circumstances within the City causes delays in the audit.
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Level of Staff and Number of Hours to be Assigned to Each Segment of the Engagement The Pun Group LLP understands that the City is not only looking to employ our auditing services but is also seeking to receive value within that professional relationship. We believe that our value derives from the in-depth knowledge, experience, and commitment that our auditing firm employs. We stress and emphasize “ employ” because all of the knowledge and expertise listed on paper will not benefit you unless it is applied. That is why we have developed a plan that we feel will accomplish the objectives of the City and your particular needs. Our Firm will utilize the information that you have shared with us and our experience from our previous audits of this nature from various government entities and cities to develop a practical plan for all major areas.
Estimated Total Hours*:
Partner( s)
Director/
Manager
Supervisory
Staff Staff Clerical Total
Engagement Acceptance & General Planning 2 3 6 10 0 21
Planning & Internal Control Evaluation 2 5 8 15 0 31
Fieldwork 12 24 42 75 2 155
Post Fieldwork 8 16 28 50 2 104
Report Preparation & Review 12 24 42 75 2 155
Final Production 4 8 14 25 1 52
Total* 40 80 140 250 8 518
Does not include CPE hours related to Governmental Webinars and/or optional services.
Sample Size and the Extent to Which Statistical Sampling is to be Used in this Engagement In our audit approach, random and statistical sampling is used in conjunction with our skilled judgment and knowledge of each situation. When designing an audit sample, our auditors consider the purpose of the audit procedure and the characteristics of the population from which the sample will be drawn. We determine a sample size sufficient to reduce sampling risk to an acceptably low level and select items for such a task in a way that we can reasonably expect it to be representative of the relevant sample and likely to provide the auditor with a reasonable basis for conclusions about the population.
Enhancing Auditing Quality with Artificial Intelligence There are plenty of challenges with established audit practices. Outdated CAAT tools, sampling practices, and the explosive growth of big data are some of the examples, and they all present significant barriers to detecting anomalies, intentional or otherwise, in financial data. The Pun Group deploys a comprehensive, risk-based approach, complemented by using MindBridge™' s Artificial Intelligence Platform, to conduct our audit. Through this tool, we can seamlessly analyze thousands and thousands of financial and operating data and records, identifying and cataloging significant risks in mere seconds.
The AI Auditor platform works by our side, augmenting our capacity to detect errors or fraud in the collected data not only by analyzing the entire set but by cross- correlating dozens of testing criteria against pre-established data points and presenting us with a view of every user, vendor, and transaction, by risk. All are happening within moments of ingesting analyzed data, which is something standard audit procedures simply cannot accomplish.
We utilize these tools to allow our audit team to increase efficiency in the audit process, enhance the existing quality of our work, provide directed testing in areas subject to the highest risk, and quickly assimilate large amounts of data your staff would typically be asked to gather. The tools also help us to meet our professional requirements regarding fraud and internal control, allowing us to:
Run Benford’ s analysis to check for fraud in transactions.
Increase the value of audit findings with complete, 100% data coverage.
Isolate risk and control issues before they impact your operations.
Improve productivity by automating procedures and eliminating manual tasks.
Conduct more direct, efficient, and effective audits to improve overall service quality.
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Our engagement team easily imports data in a secure environment from the City’s financial software and extracts useful data for testing and analytical procedures particular to the following areas:
Successful Fraud Test Kickback or Conflict- of-Interest Schemes Questionable Invoices Dormant Account Schemes
Phantom Vendor Schemes Money Laundering Schemes
Type and Extent of Analytical Procedures to be Used in the Engagement Analytical procedures are one of many financial audit processes that help an auditor understand the client’s operation and changes in the environment and identify potential risk areas to plan other audit procedures. Such procedures include a comparison of financial information on prior periods, budgets, forecasts, and industry benchmarks. We use trend and ratio analysis to identify any uncertain or unusual events. To perform these analyses, our Firm surveys cities and counties and develops benchmarks on specific vital financial indicators, such as the cost of services to tax revenues ratios, average general fund balance, capital assets, debt-to-capital, and general fund unassigned fund balance to total general fund expenditures, etc. Our engagement members have extensive experience in successfully implanting analytical procedures to the City’s benefit.
Our analytical procedures process is performed during three stages of the audit: ( a) at the start, ( b) in the middle, and (c) at the end. These three stages are risk assessment procedures, substantive analytical procedures, and final analytical procedures:
Risk assessment procedures are used to assist the auditor in understanding the business better and in planning the nature, timing, and extent of audit procedures.
Substantive analytical procedures are used to obtain evidential matters about particular assertions related to the account balances or classes of transactions. During the interim phase, our engagement team will set up expectations for the year-to-date results and balances and compare them with budgeted and prior- year amounts. This process allows us to forecast year- end amounts, reducing the workload during the year- end phase and allowing us to focus on areas of concern.
Final analytical procedures are used as an overall review of the financial information in the last review stage of the audit. The Engagement Partner( s) and Manager( s) will perform a high-level analytical analysis of the financial information, comparing its data both quantitatively and qualitatively to ensure the amounts are fairly presented in all material respect in the financial statements.
Approach to be Taken to Gain and Document an Understanding of the Internal Control Structure Audit risk assessment is established by an internal control review, combined with the engagement team’ s understanding of the City’s operations and accounting software. Using the Committee of Sponsoring Organizations COSO) Framework, staff members will evaluate the City’s processes and identify any control deficiencies. These diagnostic review procedures allow the engagement team to assess the City’s systems and controls and to provide constructive feedback to management.
During our initial planning phase of the audit, our engagement team, including the engagement Partner and Manager, will obtain an understanding of the entity and its environment. It is an essential aspect of performing an audit under generally accepted auditing standards. That understanding establishes a frame of reference within which the auditor plans the procedures and exercises professional judgment about assessing risks of material misstatement of the financial statements and responding to those risks throughout the examination.
During the interim phase of the audit, our engagement team will perform a walkthrough of all significant accounting systems, including processes for financial reporting, revenue recognition and cash receipts, purchasing/ contract management and cash disbursements, payroll and related liabilities, and others. Our auditors will obtain the written policies and procedures, inquiring accounting personnel, and document the process in either a flowchart or narrative summary format. After gaining an understanding of the accounting and internal control systems, our auditor will make a preliminary assessment of control risk, at the assertion level, for each material account balance or class of transactions.
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The form and extent of this documentation are influenced by the size and complexity of the entity and the nature of its accounting and internal control systems. Generally, the more complex the entity’ s accounting and internal control systems and the more extensive the auditor’ s procedures, the broader our documentation will need to be.
Approach to be Taken in Determining Laws and Regulations that Will be Subject to Audit Test Work The Firm stays continually up to date with audit requirements— including new regulations, compliance supplements, state guidelines, and related contracts— to ensure that we conduct audits under applicable laws and regulations. We test transactions for compliance with the Single Audit Act, California Government Code, GANN Appropriations Limit, provisions of applicable grant guidelines, requirements of local measures, and others.
For example, the Single Audit Act requires that we determine which grants to include in our audit and select transactions from those grants for detailed testing. While most items will be tested as part of the Interim phase, we cannot determine which grants will be selected for the Single Audit until the year- end/fieldwork stage of the audit.
Our compliance audits of cash, investments, debt covenants, and other areas will be performed following the California Government Code, which has many provisions and regulations covering investments.
Approach to be Taken in Drawing Audit Samples for Purposes of Tests of Compliance To test compliance, we will follow the AICPA’ s Audit Sampling Considerations of Uniform Guidance Compliance Audits. We will select an appropriate sample size based on our professional judgment and knowledge. Any deviations from control and compliance requirements will be documented.
Audit Firm’s Expectations of the Role and Participation of City’s Staff in the Audit Process The engagement team will meet with the City’s management during the initial planning stage to discuss audit schedules and review the prior year's audit findings ( if any). We will deliver a list of all documents to be provided by the City’s staff. Once such materials are agreed upon by the engagement team and City’s finance personnel, no other schedules will be requested unless new information comes to light in the course of test work.
Our goal is to cause the least amount of interruptions to the City’s daily operations; therefore, to the extent possible, we will use information in the form available from the City’s records.
We believe client/ engagement team communication is vital to perform results satisfactorily. With that sentiment in mind, we will hold regular meetings with the City’s management to determine the status of the audit as well as any items which will require special attention. Open and frequent communication is critical.
Objectives of Our Services
Our primary objective for the proposed audit is to examine the City’s financial statements and express our opinion on the fairness of the presentation, following generally accepted accounting principles. Other objectives that will benefit the City include the following:
To offer beneficial observations and recommendations about policies and procedures for accounting and operating controls
To identify opportunities to make City operations more efficient and reduce costs To perform the audit efficiently and effectively. Disruptions to office operations are kept to a minimum To provide continuing advisory services so the City can implement recommendations To meet these objectives at no additional cost to the City The Engagement Team will perform the audit abiding by the Firm’ s quality- control procedures, which include following standard audit programs, careful planning, using industry- standardized software for auditing and internal control documentation, and welcoming an objective review of audit work. In other words, our client-tailored approach emphasizes careful planning, open communication, and proper assignment of responsibilities.
The Firm will supply portable computers to the on-site staff members.
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Pricing
We are committed to the performance of a high-quality audit at the most reasonable fee level possible, both initially and throughout the engagement. Also, our partners will provide advice and consultation as needed at no additional cost to the City of Pacific Grove.
Name of Firm: The Pun Group LLP – Certified Public Accountants and Business Advisors Contact Name: Kenneth H. Pun, CPA, CGMA
Contact Email Address: ken.pun@pungroup. cpa
Authorization to Represent the Firm
I, the undersigned, certify I am duly authorized to represent The Pun Group LLP and am empowered to submit this bid. In addition, I certify I am authorized to contract with the City of Pacific Grove on behalf of the Firm.
April 19, 2023
Kenneth H. Pun, CPA, CGMA | Managing Partner Date
The Pun Group LLP
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Total All-Inclusive Maximum Price
Our proposed fees for Professional Auditing Services for the three fiscal years ending June 30, 2023, June 30, 2024, and June 30, 2025, with the option of auditing its financial statements for each of the two subsequent fiscal years, are as follows:
Name of Firm:
Name of Contact:
Location of Firm:
City Audit and ACFR
Agreed Upon Procedures for the Annual Appropriation Limit and Report State Controller Annual Financial Transactions Report
PROPOSAL FOR AUDITING SERVICES
Include this worksheet with the proposal.
4660 La Jolla Village Drive, Suite 100, San Diego, CA 92122 Kenneth H. Pun, CPA, CGMA
The Pun Group, LLP
Single Audit and Single Audit Report (as, needed) 5,000 State Controller Annual Street Report
Optional: Additional Printed Copies of the ACFR
Total
250/Copy
60,500$
Exhibit A
45,000
500
3,500
1,500
Measure X Compliant Report 5,000
Please provide the breakdown of costs associated with the following 1) Above exhibit A represents the total all-inclusive amount for the services provided for the fiscal year ending June 30, 2023. Each subsequent year will reflect a 3% increase in the total amount. 2) Single Audit fees based on one ( 1) major program. The fee for auditing additional major programs will be 5,000 each. The number of programs determined to be “major” will be based on OMB Uniform Guidance.
The Engagement Team will discuss this with the City of Pacific Grove’ s Management before starting Single Audit work.
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Out of Pocket Expenses are Included in the Total All-Inclusive Maximum Price and Reimbursement Rates The Firm’s policy is to maintain flexible billing rates to meet the needs of clients and help them control costs. In the interest of starting our long-term relationship, we will absorb expenses such as travel and printing costs. Additionally, our Partners will be available to provide advice and consultation as necessary to the City of Pacific Grove. The Firm will also absorb these costs.
Rates for Additional Professional Services
Below are the Firm’ s hourly billing rates, delineated by staffing levels:
Any supplemental reports, audits, or agreed- upon procedures not covered by this proposal may be added to a written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and associated costs of these tasks. Any additional work will be performed at the above- quoted hourly rates.
Manner of Payment
Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work performed for every audit task. The Firm will collect these timesheets and bill the City of Pacific Grove at the rates outlined in the Total All-Inclusive Maximum Price section in four stages: ( 1) at the conclusion of the planning phase, 2) at the conclusion of the interim phase, ( 3) at the conclusion of the Year-End phase, (4) and after presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar month. The billing amounts generally break down as follows:
Partner( s) 300$
Director( s) 250$
Senior Manager( s) 225$
Manager( s) 200$
Supervisor( s) 175$
Senior Accountant( s) 150$
Staff Accountant( s) 125$
Clerical 100$
Hourly Billing Rates
Work Performed % of Proposal Amount
Planning 10%
Interim 40%
Fieldwork 40%
Presentation and Acceptance of Reports 10%
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Proposed Legal Agreement
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Let’s Get to Work!
Benefits of Choosing The Pun Group LLP
The Pun Group LLP is recognized for its professionalism, integrity and for providing clients with practical solutions unique to their circumstances and issues. Our Firm prides itself on being able to provide personalized client services, and with that sentiment in mind, we have carefully chosen our engagement teams. The Pun Group’ s primary objective is to offer the City of Pacific Grove solutions and directions led by highly experienced and capable partners who can successfully implement the work and produce the results you expect. This philosophy and mindset allow us to provide a superior level of service and a quality audit.
We trust that this proposal has given you the information needed about the Firm, the engagement team members, the overall audit approach, cost-saving measures, and audit fees. We are committed to exceeding your expectations, and we look forward to bringing our experience and expertise to the City of Pacific Grove while providing you with the excellent level of service that you expect and deserve.
Thank You
Thank you for allowing us to submit our qualifications to provide you with Professional Auditing Services. Please direct inquiries to:
Kenneth H. Pun, CPA, CGMA
Managing Partner
Email: ken.pun@pungroup. cpa
Phone: ( 949) 777-8801 | Fax: (949) 777-8850
Sincerely,
The Pun Group LLP
Certified Public Accountants and Business Advisors
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Appendix A – Available Training
Strengthen Your Accounting Knowledge: TPG Client Training Webinars We pride ourselves in leading the governmental auditing profession nationwide and statewide. Members of our team have been assigned to the AICPA and State Government Accounting and Audit committees. Our membership with these two levels of government keeps us current, and such involvement helps our Firm with the constant changes in accounting and auditing standards, laws and regulations, and compliance provisions, which have created an unprecedented complexity in public accounting for state and local governments.
Every year, the Firm hosts a conference to update governmental clients on new technical accounting and financial issues. Since last year, by implementing “ Webinars,” we’ve been expanding our horizons and offering our clients 15 hours of Continuing Professional Education ( CPE). These sessions are free of charge and part of the service package provided to our clients.
CPE courses we offer:
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Appendix B – Certificate of Insurance
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ORANGE COUNTY SAN DIEGO BAY AREA LAS VEGAS PHOENIX
www.pungroup. cpa
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Signature:
Email:
Signature:
Email:
Signature:
Email:
Signature:
Email:
Kenneth H. Pun ( Aug 16, 2023 10:39 PDT)
Kenneth H. Pun
ken.pun@pungroup. cpa thannah@cityofpacificgrove. org
Sergio Rudin ( Aug 23, 2023 17:09 PDT)
Sergio Rudin
srudin@bwslaw. com
Bill Peake ( Aug 24, 2023 07:16 PDT)
Bill Peake
bpeake@cityofpacificgrove. org
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Prof Srvcs Agreement - The Pun Group
2023-2026
Final Audit Report 2023- 08-24
Created: 2023- 08-08
By: Tori Hannah ( thannah@cityofpacificgrove. org)
Status: Signed
Transaction ID: CBJCHBCAABAAvC5KChspcF7s_ 5_mcV1PP5qMHvVkNQ4w Prof Srvcs Agreement - The Pun Group 2023-2026" History Document created by Tori Hannah ([email protected]) 2023- 08- 08 - 8:50:21 PM GMT- IP address: 12.227. 61.194 Document emailed to [email protected] for signature
2023- 08- 08 - 8:55:27 PM GMT
Email viewed by ken.pun@pungroup. cpa
2023- 08- 10 - 7:43:32 PM GMT- IP address: 104. 47.58.254 New document URL requested by [email protected]
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2023- 08- 16 - 5:38:51 PM GMT- IP address: 104. 47.57.254 Signer [email protected] entered name at signing as Kenneth H. Pun 2023- 08- 16 - 5:39:57 PM GMT- IP address: 63.147. 119. 178 Document e-signed by Kenneth H. Pun ([email protected]) Signature Date: 2023- 08-16 - 5:39:59 PM GMT - Time Source: server- IP address: 63.147. 119. 178 Document emailed to Tori Hannah ([email protected]) for signature 2023- 08- 16 - 5:40:02 PM GMT
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Document emailed to bpierik@bwslaw. com for signature
2023- 08- 16 - 5:43:07 PM GMT
New document URL requested by Tori Hannah ([email protected]) 2023- 08- 21 - 11:58:31 PM GMT- IP address: 12.227. 61.194 Tori Hannah ([email protected]) replaced signer [email protected] with Sergio [email protected])
2023- 08- 22 - 0:01:21 AM GMT- IP address: 12.227. 61.194 Document emailed to Sergio ([email protected]) for signature 2023- 08-22 - 0:01:21 AM GMT
Email viewed by Sergio ([email protected])
2023- 08- 22 - 9:12:41 PM GMT- IP address: 206. 204. 27.22 New document URL requested by [email protected]
2023- 08- 23 - 9:01:42 PM GMT- IP address: 198. 24.204. 51 Signer Sergio ([email protected]) entered name at signing as Sergio Rudin 2023- 08- 24 - 0:09:39 AM GMT- IP address: 96.38.155. 45 Document e-signed by Sergio Rudin ([email protected])
Signature Date: 2023- 08-24 - 0:09:42 AM GMT - Time Source: server- IP address: 96.38.155. 45 Document emailed to [email protected] for signature 2023- 08- 24 - 0:09:44 AM GMT
Email viewed by [email protected]
2023- 08-24 - 2:10:59 PM GMT- IP address: 73.223.20.143 Signer [email protected] entered name at signing as Bill Peake 2023- 08- 24 - 2:16:40 PM GMT- IP address: 73.223. 20.143 Document e-signed by Bill Peake ([email protected]) Signature Date: 2023- 08-24 - 2:16:42 PM GMT - Time Source: server- IP address: 73.223. 20.143 Agreement completed.
2023- 08- 24 - 2:16:42 PM GMT
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Agenda No. 9 B
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: November 19, 2025
SUBJECT: Cedar, Sunset & Congress Intersection Improvements Project Contract Amendments
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
1. Authorize the execution of Amendment #1 with the Transportation Agency for Monterey County (TAMC) to increase the funding agreement by $137,961 for the Cedar, Sunset, and Congress Intersection Project.
2. Authorize the execution of Amendment #2 with GHD for an amount of $340,387 for the Cedar, Sunset and Congress Intersection Project, to continue with the Design Engineering Evaluation Report, for a roundabout at the intersection.
3. Alternatively, discuss and take other action related to this item
DISCUSSION
Background
In 2016, the Transportation Agency for Monterey County (TAMC), in partnership with the City of Pacific Grove (City) and California Department of Transportation (Caltrans), conducted a study of the State Route 68 Corridor (SR68) segment located in the Pacific Grove City bounds, the Pacific Grove Hwy 68 Corridor Study.
https://www.tamcmonterey.org/pacific-grove-hwy-68-corridor-study The intent of the study was to identify improvements that would provide safer access for all modes of travel. The study identifies several areas along the SR68 corridor, managed by Caltrans and within the City boundary, that are ripe for safety improvements. The City, in coordination with TAMC, has focused on complete street and safety improvements to the five-legged intersection of Sunset Drive, Congress Avenue and Cedar Street. This intersection has been selected because it is adjacent to two schools, is heavily trafficked, and has historically been an area of interest for improvement by the community and TAMC.
On November 8, 2016, TAMC placed the Transportation Safety & Investment Plan (Measure X) on the ballot, the measure was approved with 67.7% approval from Monterey County voters. The measure, through retail transactions and use tax of three-eighths of one percent (3/8%) is anticipated to generate an estimated $20 million annually for 30 years. The revenue from the sales tax measure is used for PGCC 11-19-2025
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transportation safety and mobility projects in Monterey County. 40% of the revenue is allocated to Regional Projects via the Regional Safety Mobility and Walkability Program. TAMC has identified and allocated funding for specific projects across the county; one of the projects identified includes improvements to the SR68 Corridor within Pacific Grove. A total of $5 million has been allocated.
On October 19, 2022, the Council approved a Measure X funding agreement with TAMC for an amount not to exceed $1,000,000, of the larger $5 million bucket, to the initial phase and kick off the project. At the July 5, 2023, meeting, Council authorized the City to enter into an agreement with GHD for Phase I of the Congress, Cedar, and Sunset Intersection Safety Improvement Project in an amount not to exceed $797,574. Since the commencement of the project and the authorization of the agreement with GHD, significant progress has been made.
At the City Council’s July 17, 2024 meeting, the Council chose to pursue a single build alternative for the five-way intersection –a roundabout with Cedar access relocated. The report with background information can be found here.
Update
The City has requested to use the Design Engineering Evaluation Report (DEER) process to document project initiation and project approval for the Project based on the single-build alternative presented to and accepted by City Council in July 2024. Subsequently, the City prepared draft studies and documents in support of the DEER, including preparation of draft Preliminary Design Drawings (30% design), a traffic analysis summarized in a draft Traffic Operations Analysis Report/Intersection Control Evaluation (TOAR/ICE) and a draft Preliminary Environmental Analysis Report (PEAR). In May 2025, Caltrans provided an expectations memorandum that memorialized the decision to move forward with a DEER for Caltrans oversight and approval. This memorandum provided a brief project scope, applicability of the DEER process, and expectations of the City for utilizing the DEER process for the Project. Specifically, the memorandum provided that the project was eligible to use the DEER process for project initiation and project approval.
GHD’s scope of work under the current agreement with the City is to complete a Project Initiation Document (PID) only. With the use of the DEER process, both the PID and Project Approval and Environmental Document (PA&ED) are combined.
Caltrans had five specific expectations for completion of the DEER for the project, which include:
1. Project Schedule: The City shall submit a schedule for the Project to Caltrans that establishes target dates for the DEER document development. These target dates should include, but are not limited to, anticipated dates for document submittal for Caltrans review, significant project milestones, and target completion date for the DEER document.
2. Environmental Documentation: Environmental documentation for CEQA and NEPA must be included as an appendix of the Project’s DEER document. The City should submit draft CEQA document to Caltrans for review and input.
3. Design Standard Decision Document: The proposed roundabout appears to include nonstandard features that require preparation of a Design Standard Decision Document (DSDD). The DSDD will be referenced in the DEER document and should be finalized before the DEER document is approved.
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State-Furnished Materials. The City and Caltrans will develop the terms of any cooperative agreement based on the Project’s needs.
5. Regular Coordination Meetings: Meetings with Caltrans and City staff have been occurring on a monthly basis. These meetings should continue to encourage open and productive collaboration.
The DEER process is outside the original scope for GHD, so GHD proposed an amendment that would replace the existing scope of work with the scope of work noted below.
Scope of Work
1. Project Management, Coordination and Documentation
2. Data Collection and Base Mapping (Work Previously Completed)
3. Alternatives Analysis
4. Preliminary Environmental Analysis
5. Geotechnical Investigation / Pavement Design Report
6. Preliminary Design
7. Environmental Documentation: NEPA and CEQA Documents, the primary scope of the amendment (This amendment will finalize NEPA and CEQA documents, enabling the City to begin seeking construction funding)
8. Storm Drainage Analysis
9. Right-of-Way Services
10. Caltrans Approval Documents
The budget request for this scope of work will be the difference between what is remaining in the current agreement and the budget needed to complete the scope of work for the DEER process. The proposed amendment would be an additional $340,387 on the original contract of $797,574.
Original Contract $797,574
This Amendment $340,387
Total $1,137,961
To date, the City has expended $444,110 of the original $797,574 contract with GHD. As specified, an additional $137,961 is needed to move forward with Phase 2 of the project. At the September 17, 2025 City Council meeting, the Council authorized staff to work with TAMC to amend the funding agreement by $137,961. At the October 22, 2025 TAMC Board meeting, the TAMC board approved the increase to the funding agreement.
Upon execution of Amendment #1 of the TAMC Funding Agreement, City Staff will then execute Amendment #2 with GHD. The City executed Amendment #1 with GHD in March of 2025, which granted a contract extension until June of 2026. Amendment #2 will increase the contract total and align the scope of services with the DEER process. The DEER process is anticipated to take approximately 12 months. The City will increase the contract term through this amendment until December 31, 2026.
OPTIONS
1. Do not authorize the execution of the two amendments FINANCIAL IMPACT:
As noted above, this project is funded via Measure X and is approved as part of the Capital PGCC 11-19-2025
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As noted above, this project is funded via Measure X and is approved as part of the Capital Improvement Program. Execution of the funding agreement with TAMC will prompt the allocation of additional Measure X Regional Funds, which will then be harnessed towards the GHD amendment.
FOCUSED PRIORITY AREA: Infrastructure
Attachments
GHD Amendment #2
TAMC Amendment
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AMENDMENT #2 TO THE AGREEMENT FOR THE CONGRESS, CEDAR, AND SUNSET
INTERSECTION SAFETY IMPROVEMENT PROJECT WITH GHD
WHEREAS, the City of Pacific Grove (“City”) and GHD (“Consultant”) entered into an Agreement (“Agreement”) dated July 24, 2023; and
WHEREAS, the City and Consultant need to amend certain terms of the Agreement; NOW, THEREFORE, the parties agree as follows:
A. The Agreement is amended as follows:
• Section 1 Term: This Agreement shall commence on 7/24/2023 and shall remain and continue in effect until tasks described herein are completed, but in no event later than 6/30/2026 12/31/2026, unless sooner terminated pursuant to the provisions of this Agreement.
• Section 5 Payment: This amount shall not exceed $797,574 $1,137,961 for the total term of the Agreement unless additional payment is approved as provided in this Agreement.
• Attachments: Amendment #2 will replace Exhibit A with the revised scope as attached to this amendment
• All other terms of the Agreement remain the same.
Dated: _____________________ ___________________________ Lindsey Van Parys, PE: Business Group Leader
Dated: _____________________ ___________________________ Daniel Gho: Public Works Director
Dated: _____________________ ___________________________ Brian Pierik: City Attorney
Dated: _____________________ ___________________________ Fred Marsh: Administrative Services Director
Dated: _____________________ ___________________________ Nick Smith: Mayor
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AMENDMENT #1 TO THE REGIONAL FUNDING AGREEMENT
FOR THE PRE-CONSTRUCTION PHASE OF THE
CONGRESS, CEDAR, AND SUNSET INTERSECTION SAFETY IMPROVEMENT PROJECT
BETWEEN THE TRANSPORTATION AGENCY FOR MONTEREY COUNTY
AND
THE CITY OF PACIFIC GROVE
THIS AMENDMENT NO. 1 to the agreement dated October 19, 2022 between the Transportation Agency for Monterey County, hereinafter referred to as “TAMC,” and the City of Pacific Grove, hereinafter referred to as “Sponsor,” is hereby entered into between TAMC and the Sponsor.
R E C I T A L S :
A. WHEREAS, TAMC and Sponsor entered into a Measure X regional funding agreement on October 19, 2022, hereinafter referred to as “Agreement;” and B. WHEREAS, the Sponsor entered into a consultant agreement with GHD at their July 5, 2023 Council meeting to complete a Project Initiation Document for the Congress, Cedar, and Sunset Intersection Safety Improvement Project; and C. WHEREAS, the Sponsor requested, and Caltrans authorized, the use of the Design Engineering Evaluation Report (DEER), which combines the Project Initiation Document with the Project Approval & Environmental Document; and D. WHEREAS, the Sponsor is requesting an additional $137,961 of Measure X funds dedicated to the State Route 68 Holman Highway project to fully-fund the DEER effort; and
E. WHEREAS, TAMC and Sponsor desire to amend the Agreement to increase the not-toexceed amount by $137,961 to fully-fund the project phase using funds that TAMC is authorized to program.
NOW, THEREFORE, the parties agree to amend the Agreement as follows:
1. FUNDING SUMMARY
The Funding Summary table included in Exhibit C is hereby replaced with the Funding Summary table included in Exhibit C-1, dated October 22, 2025.
2. REMAINDER OF TERMS UNCHANGED
All other terms of the Agreement remain in full effect.
An executed copy of this Amendment No. 1 shall be attached to the Agreement and shall be incorporated as if fully set forth therein.
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_____________
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement.
CITY OF PACIFIC GROVE TAMC
By:
Name/Title
By:
Todd Muck
Executive Director
Dated: Dated:
Approved as to form:
By:
Name
By:
Shane Strong
Dated:
City Attorney, Pacific Grove
Dated:
TAMC Counsel
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EXHIBIT C-1 - FUNDING SUMMARY
October 22, 2025
Project Phase Fund
Source
Fiscal
Year
Amount Reimbursable
Under this
Agreement
Funding
Secured?
PID & PA&ED Measure X 2022/23 $1,000,000 Yes Yes
Amendment #1
PID & PA&ED Measure X 2025/26 $137,961
Total Reimbursable Amount: $1,137,961
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Agenda No. 10 A
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Anna Bornstein, Associate Planner
MEETING DATE: November 19, 2025
SUBJECT: Architectural Review Board Meeting Minutes: October 14, 2025.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Receive the minutes.
Attachments
ARB Minutes 10.14.2025
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ARCHITECTURAL REVIEW BOARD
MEETING MINUTES
REGULAR MEETING AGENDA
Tuesday, October 14, 2025, 3:00 P.M.
Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA AGENDA
1. CALL TO ORDER & ROLL CALL
Chair Brooks called the meeting to order at 3:00 pm. Also present in the chamber: Secretary Huff, Vice Chair Byrne, and Member Sublett
ABSENT: Member Boyle
2. APPROVAL OF THE AGENDA
ACTION: Upon a motion by Vice Chair Byrne and seconded by Secretary Huff, the Board voted to approve the agenda.
Motion carried 4-0-1, by the following roll call vote:
AYES: Chair Brooks, Vice Chair Byrne, Secretary Huff, Member Sublett NOES: None
ABSENT: Member Boyle
3. BOARD AND STAFF ANNOUNCEMENTS (City-Related Items Only) Staff made announcements.
4. COUNCIL LIAISON ANNOUNCEMENTS
None
5. GENERAL PUBLIC COMMENT
None.
A. Written General Public Comment
None
CONSENT AGENDA
6. REPORTS FOR INFORMATION ONLY
None
7. REPORTS REQUIRING ACTION
None
A. Minutes of September 9, 2025, Architectural Review Board Regular Meeting.
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Reference: Anna Bornstein, Associate Planner
Recommended Action: Approve the minutes of the September 9, 2025, Regular Meeting of the Architectural Review Board.
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
ACTION: Upon a motion by Secretary Huff, seconded by Vice Chair Byrne, the Board voted to approve the Consent Agenda
Motion carried 4-0-1, by the following roll call vote:
AYES: Chair Brooks, Vice Chair Byrne, Secretary Huff, Member Sublett NOES: None
ABSENT: Member Boyle
REGULAR AGENDA
8. PUBLIC HEARINGS
A. Architectural Permit (AP) 25-0149 for 835 Bayview Avenue (APN 006-133-007-000) Zoning District/General Plan Designation: R-1/ Medium Density Residential (7.3 du/ac) Coastal Zone: No
Historic Resources Inventory: No
CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities
Recommended Action: Approve Architectural Permit 25-0149 subject to the recommended findings, conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities).
Reference: Anna Bornstein, Associate Planner
Vice Chair Byrne announced ex-parte communications with the project architect regarding the roof eaves.
Anna Bornstein, Associate Planner, provided the staff presentation.
The applicant presentation was provided by architect Jerry Case.
Bill Kempe provided public comments.
ACTION: Upon a motion by Vice Chair Byrne, seconded by Secretary Huff, the Board voted to approve Architectural Permit (AP) 25-0149, subject to the recommended findings and conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities) as amended to include a condition of approval requiring the Building Official to verify the fire safety of the ADU’s outdoor fireplace and neighboring trees and vegetation.
Motion carried 4-0-1, by the following roll call vote:
AYES: Chair Brooks, Vice Chair Byrne, Secretary Huff, Member Sublett NOES: None
ABSENT: Member Boyle
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9. CONTINUED AND ONGOING BUSINESS
None
10. NEW BUSINESS
None
11. PRESENTATIONS
None
12. NEXT MEETING - Special Meeting on Wednesday, November 12, 2025, at 3:00 p.m.
13. ADJOURNMENT – 3:18 pm
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Agenda No. 10 B
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Rachel Gaither, Library Director
MEETING DATE: November 19, 2025
SUBJECT: Library Board Regular Meeting Minutes: September 2, 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Receive the minutes.
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Agenda No. 10 C
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Katie Clark, Recreation Program Manager
MEETING DATE: November 19, 2025
SUBJECT: Recreation Board Minutes: February 27, March 27, and April 34, 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Receive the minutes.
Attachments
Recreation Board Minutes February 27, 2025
Recreation Board Minutes March 27, 2025
Recreation Board Minutes April 24, 2025
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RECREATION BOARD
REGULAR MEETING AGENDA
Thursday, February 27, 2025, 4:00 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_RB
AGENDA
1. CALL TO ORDER
Vice Chair Tulley called the meeting to order at 4:02 pm. Recreation Manager, Katie Clark conducted roll call with the following members present in person: Vice Chair Tulley, Sandra Lehman, Roger O’Sullivan, Alex White. Member Ashley Gamble was absent.
2. APPROVAL OF AGENDA
Action: Upon motion by Vice Chair Tulley and seconded by Sandra Lehman, the Recreation Board voted 4-0-1 to approve the agenda with one amendment, moving item 7B to the end of the meeting.
3. BOARD AND STAFF ANNOUNCEMENTS (City-Related Items Only) Recreation Manager, Katie Clark provided recreation department program announcements. There were no announcements from the Recreation Board.
4. COUNCIL LIAISON ANNOUNCEMENTS
Council Member Amelio provided updates from City Council.
5. GENERAL PUBLIC COMMENT
General public comment was received from Inge Lorentzen Daumer.
MEETING MINUTES
CITY OF PACIFIC GROVE
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A. Written General Public Comment
6. APPROVAL OF THE MINUTES
A. Recreation Board Draft Minutes January 23, 2025
Action: Upon motion by Vice Chair Tulley and seconded by Sandra Lehman the Recreation Board voted 4-0-1, with Member Gamble absent, to approve the minutes.
7. REGULAR AGENDA
A. Election of Officers
Action: By way of nomination, Jay Tulley was elected Chair for the Recreation Board.
Motion carried 4-0-1 with the following roll call vote:
AYES: Member White, Vice Chair Tulley, Members Lehman and O’Sullivan NOES: None
ABSENT: Member Gamble
Action: By way of nomination, Ashley Gamble was elected Vice Chair for the Recreation Board.
Motion carried 4-0-1 with the following roll call vote:
AYES: Member White, Chair Tulley, Members Lehman and O’Sullivan NOES: None
ABSENT: Member Gamble
B. Recreation Board Input on City Council Goal Setting* *This item was heard after item E at the end of the meeting Action: Upon motion by Member White and seconded by Member Lehman, the Recreation Board voted 4-0-1, with Member Gamble absent, to recommend the following 3 goals to City Council for the City Council Goal Setting Process:
1. Recreation Needs Assessment
2. Increase recreation programs for adults
3. Parks and open space plan
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.
C. Parks and Recreation Day 2025
Action: Upon motion by Chair Tulley and seconded by Member O’Sullivan, the Recreation Board voted 4-0-1, with Member Gamble absent, to approve itinerary and direct the Recreation Board Chair to prepare a recommendation with the Council Liaison for a future City Council agenda item.
DD. Needs Assessment Survey
Action: Upon motion by Member Lehman and seconded by Member white, the Recreation Board voted 4-0-1, with Member Gamble absent, to ask City Council to direct staff to help them start the process of a new needs assessment survey with the goal of having it ready in six months.
E. PGUSD & Pacific Grove Joint Use Agreement Review
Action: No action taken
ADJOURNMENT
Recreation Board adjourned the meeting at 6:03 pm
Respectfully Submitted,
Katie Clark
Recreation Program Manager
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RECREATION BOARD
REGULAR MEETING AGENDA
Thursday, March 27, 2025, 4:00 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_RB
AGENDA
1. CALL TO ORDER
Chair Tulley called the meeting to order at 4:07 pm. Chair Tully conducted roll-call with the following members present in person: White, Gamble, Chair Tulley, Lehman, O’Sullivan. Councilmember Amelio was not present.
2. APPROVAL OF AGENDA
Action: Upon motion by Member Gamble and seconded by Member White, the Recreation Board voted 5-0 to approve the agenda without minutes for item 6A.
3. BOARD AND STAFF ANNOUNCEMENTS (City-Related Items Only) Board – Chair Tulley provided announcements from the Recreation Board Staff – Recreation Manager, Katie Clark provided announcements for the Recreation Department
4. COUNCIL LIAISON ANNOUNCEMENTS
Council Liaison – No announcements were made
5. GENERAL PUBLIC COMMENT
No public comment was received.
Meeting Minutes
City of Pacific Grove
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A. Written General Public Comment
6. APPROVAL OF THE MINUTES
Action: No action taken
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7. REGULAR AGENDA
A. Basketball League Report
No public comment received
Action: Received report
B. Needs Assessment Discussion
No public comment received
Action: Upon motion by Chair Tulley and seconded by Member Gamble, the Recreation Board voted 5-0 to form a subcommittee comprised of Members Lehman and White.
9. ADJOURNMENT
Recreation Board adjourned the meeting at 5:15 pm
Respectfully submitted,
Katie Clark
Recreation Program Manager
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RECREATION BOARD
REGULAR MEETING AGENDA
Thursday, April 24, 2025, 4:00 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_RB
1. CALL TO ORDER
The meeting was called to order at 4:01 pm by Jay Tulley, Recreation Board Chair. Chair Tulley conducted roll-call with the following members present in person: Chair Tulley, Lehman and O’Sullivan. Members Gamble and White were absent. Councilmember Amelio was present.
2. APPROVAL OF AGENDA
Action: Upon motion by Member Lehman with a second by Chair Tulley, the Recreation Board voted 3-0-2 to approve the agenda, members Gamble and White absent.
3. BOARD AND STAFF ANNOUNCEMENTS (City-Related Items Only) Board Members – no announcements were received.
City Staff – announcements received from Recreation Manager, Katie Clark and Public Works Director, Dan Gho.
4. COUNCIL LIAISON ANNOUNCEMENTS
Council member – announcements received from Council Member Amelio.
Meeting Minutes
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5. GENERAL PUBLIC COMMENT
No public comments were received.
A. Written General Public Comment
6. APPROVAL OF THE MINUTES
A. Recreation Board Draft Minutes February 27, 2025
Action: Upon motion by Member Lehman with a second by Chair Tulley, the Recreation Board voted 3-0-2 to approve the Recreation Board Draft Minutes for February 27, 2025, members Gamble and White absent.
B. Recreation Board Draft Minutes March 27, 2025
Action: Upon motion by Member Lehman with a second by Chair Tulley, the Recreation Board voted 3-0-2 to approve the Recreation Board Draft Minutes for March 27, 2025, members Gamble and White absent.
7. REGULAR AGENDA
A. Recreation Budget Updates
No public comments were received.
Action: Received report.
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B. Youth Center Update
No public comments were received.
Action: Received report.
C. Needs Assessment Update
No public comments were received.
Action: Upon motion by Chair Tulley with a second by Member O’Sullivan, the Recreation Board voted 3-0-2 to submit BCC Recommendation to Council Member Amelio to put on City Council consent agenda for 20 hours of staff support. Members Gamble and White absent.
8. NEXT MEETING - May 22, 2025
9. ADJOURNMENT
Meeting adjourned by Chair Tulley at 5:21 pm
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Agenda No. 11 A
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM:
Staphany Arriola, Management Analyst, Leticia Livian, Human Resources Director
MEETING DATE: November 19, 2025
SUBJECT: Ordinance to Amend the Salary Schedule (Minimum Wage) CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
1. Request the City Attorney read the title of the ordinance;
2. Motion to waive further reading of the ordinance;
Introduce and hold first reading of an ordinance to amend the salary classification schedule modifying salary ranges for Cashier, Intern, Lighthouse Docent Coordinator, Recreation Assistant I,
3. 4. Direct a summary of a proposed ordinance be published as approved by the City Attorney.
DISCUSSION
The City salary classification schedule identifies the job classifications approved by Council (e.g., Office Assistant) and the hourly rates of pay for each classification at each step authorized by the Personnel Rules. Pursuant to Charter Article 25 and Pacific Grove Municipal Code (PGMC) Section
4.20.280, approval and amendment to the classification schedule must be adopted by the Council.
Increase to State Minimum Wage
Staff is proposing changes to the salary schedule to comply with an increase to California State Minimum Wage. California's minimum wage will increase from $16.50 to $16.90 per hour for all employers on January 1, 2026.
The salary ranges in the following classifications need to be adjusted to meet the State's minimum wage requirements:
Cashier
Intern
Lighthouse Docent Coordinator
Recreation Assistant I
The recommended approach is to increase the range of the entire classification, which preserves the City’s ability to hire personnel in the future at the lowest step, while complying with the new minimum wage law.
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Proposed New Salary Ranges:
Classifications Step 1A Step 2B Step 3C Step 4D Step 5E Cashier 16.90 17.75 18.63 19.56 20.54
Intern 16.90 17.75 18.63 19.56 20.54
Lighthouse Docent Coordinator 16.90 17.75 18.63 19.56 20.54 Recreation Assistant I 16.90 17.75 18.63 19.56 20.54
The requested change to the salary classification schedule will only impact the classifications listed in this agenda report. All other classification hourly salary ranges will remain the same. To view the entire salary schedule, please refer to the City’s website,
http://www.cityofpacificgrove.org/about-city/human-resources/salaries-benefits-and-mous.
OPTIONS
Provide alternative direction to staff.
FINANCIAL IMPACT:
There is no financial impact since the minimum wage was taken into consideration for the following fiscal year.
FOCUSED PRIORITY AREA: Not Applicable.
Attachments
25-0XX Min Wage Salary Sched Admt Ord
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1 ORDINANCE NO. 25-0XX
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE
AMENDING THE SALARY CLASSIFICATION SCHEDULE TO COMPLY
WITH CALIFORNIA MINIMUM WAGE
Findings
1. The State of California has increased minimum wage to $16.90 per hour effective January 1, 2026; and
2. Cashier, Intern, Lighthouse Docent Coordinator, and Recreation Assistant I, falls below the $16.90 per hour minimum requirement at the first step; and
3. Amending the salary schedule will meet the State requirements; and
4. Amending the salary schedule by adjusting the range preserves the City’s full flexibility for future hiring decisions and observes the intent of the state requirements; and
5. Amending the salary schedule avoids salary compaction issues; and
6. Amending the salary schedule will allow for the new salary rates to take effect; and
7. Amendment to the salary schedule classification plan must be adopted by the City Council pursuant to Pacific Grove Municipal Code (PGMC) Section 4.20.280; and
8. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment pursuant Section 15378.
Ordinance
NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:
SECTION 1. The foregoing findings of the City Council are incorporated into this Ordinance as if set forth in full.
SECTION 2. The position classification plan approved and adopted by the City Council pursuant to PGMC § 4.20.280 is amended for Cashier, Intern, Lighthouse Docent Coordinator, and Recreation Assistant I, classifications with the following salary schedule:
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2 Classifications Step 1A Step 2B Step 3C Step 4C Step 5E Cashier 16.90 17.75 18.63 19.56 20.54
Intern 16.90 17.75 18.63 19.56 20.54
Lighthouse Docent
Coordinator 16.90 17.75 18.63 19.56 20.54
Recreation Assistant I 16.90 17.75 18.63 19.56 20.54
SECTION 3. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement this Ordinance.
SECTION 4. Upon approval at second reading, this ordinance shall be given an effective date of 12/21/2025.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 21st day of December 2025, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
___________________________
ATTEST:
NICK SMITH, Mayor
DATED:
__________________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
___________________________________
BRIAN PIERIK, City Attorney
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Agenda No. 13 A
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: November 19, 2025
SUBJECT: Review of Five-Year Operating and Capital Forecast, Infrastructure Needs and Public Engagement Agreement
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
Receive a presentation regarding a review of the five-year fiscal forecast, infrastructure funding needs and the onboarding of a public engagement and polling consultant
1. Approve a Professional Services Agreement with Props & Measures for ballot measure feasibility, preparation and outreach services in a not-to-exceed amount of $141,530.
2. 3. Direct staff to take an alternative action.
DISCUSSION
The fiscal year (FY) 2025/26 budget included a General Fund 5-year fiscal forecast that demonstrated ongoing fiscal challenges. Since adoption, staff has been working toward the goal of fiscal sustainability through several measures. Expenditure reductions and efficiencies are being pursued to lower expenses and revenue enhancements are being investigated. In addition, staff is working on developing long-term capital need schedules so that the City can adequately plan to address the ongoing future needs.
This report is accompanied by a PowerPoint presentation, included as Attachment No. 1, that will be presented at the November 19th City Council Meeting. The presentation will provide updated fiscal information regarding:
A recap of the General Fund 5-year Fiscal Forecast adopted in the 2025/26 budget.
Adjusted General Fund 5-year Fiscal Forecast taking into account the year end actuals for 2024/25 and new expected revenue.
Discussion of the assumptions driving the forecast and summary of the General Fund Fiscal Challenges.
Summary of the Capital Improvement Plan (CIP) accomplishments in the last 5 years.
A recap of the Five-Year CIP Identified Needs from the November 5th Study Session presentation.
Proposal to utilize a consultant to engage the community regarding unmet needs and community views and expectations.
At the beginning of the fiscal year, the City Council was presented a budget that lowered revenue expectations by $700,000 (-2%) to account for softening revenues in larger categories. This budget also included a $1.4 million reduction in budgeted expenses to slow the expense growth rate and soften the impact of the 2% revenue reductions. Ultimately, due to the $1.4 million in capital outlay spending necessary and other factors, it was necessary to project $1.96 million in deficit spending for 25/26.
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The updated General Fund 5-year fiscal forecast has two primary changes that impact the forecast. The first factor was the final closure of last year’s budget. We added approximately $1.7 million to the fund balance due to unspent funds in the 24/25 fiscal year budget. This results in a more favorable 5-year projection of our reserve levels. Also added to this updated 5-Year Forecast $1 million in new revenue next year for additional Transient Occupancy Tax (TOT) from the Kimpton Hotel. This is a projection and performance could be higher or lower. This added TOT projection improves the projected deficit for the 26/27 fiscal year to approximately $1.57 million.
The primary drivers of the budget challenges are a softening of a few major revenues, while certain costs continue to increase. The major costs are wages for employees, which generally assumes an ongoing COLA, continued 3% increase in operating costs including insurance premiums, and debt that has yet to level off. There are a number of measures that staff will continue to work on over the remainder of this fiscal year and going forward to reduce costs and improve revenues.
There have been many accomplishments on the City’s CIP schedule the last five years. The General Fund was able to fund approximately $7.4 million of the total $32 million in projects that have been accomplished. However, the 5-year CIP introduced at the November 5th Study Session brings significantly more fiscal demands than the General Fund will be able to provide for.
In 2007 and in 2016, the City hired a communications consultant and polling firm to engage Pacific Grove residents regarding their perceptions of the City’s services, facilities and infrastructure. That information was very valuable in understanding what residents value and view as needed in PG. The input was used when the City Council considered later efforts to allocate budget and seek additional revenue opportunities to meet the community’s desires. It has been almost a decade since this engagement was last sought by the City.
To provide the City Council with the option to seek input from the community and potentially to act on the information from the results of that input, staff has sought informal proposals from three of the top firms in this field. After interviews and discussions with the consultants, staff has determined that Props and Measures, with the subconsultant firm of True North Research, are best suited to assist the City with public engagement and scientific polling in this realm. Props and Measures has a proven track record of successful engagement and are the most competitive in pricing in addition. Attachment No. 2 to this report contains the Scope of Work proposed. Should the City Council approve this agreement the City’s Standard Professional Services Agreement will be utilized.
Recommendation number 2 for this report is for the City Council to approve an agreement in a not-to-exceed amount of $141,530. The scope of work and detailed proposal with pricing for each phase is described in Attachment No. 2. The pricing is broken down by phase, and the City can stop work at anytime and not expend further funds if that is desired. The first phase of the process will include a scientific research poll to gather the input of residents and will cost an estimated $53,150. After the first phase, should Council decide to continue forward, the cost of the second phase is estimated to be a total of $88,380. The second phase will consist of Props and Measures assisting the City with preparing a ballot measure, if that is determined by the City Council, and additional public engagement.
The proposed Agreement is before the City Council this time to ensure there is ample time for the City Council to engage the public, obtain feedback and appropriately take action next calendar year to pursue revenue opportunities should the City Council desire. If the Agreement is approved, the consultant will engage the public through a research poll in January 2026 and report to the City Council the results in February. At that point, the City Council can decide to end the Agreement or take further action with the consultant toward a ballot measure.
OPTIONS
1. Take no action.
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FINANCIAL IMPACT:
The total costs are estimated to be $141,530, to be funded out of the legal services line in the City Attorney’s budget. The scope of work is broken down into phases that allow the City to cancel the agreement at anytime. The first phase totals $53,150 and will consist of $19,500 for the consultant (plus $5,000 for travel and direct costs) and $28,650 for the polling. After the first phase, should Council decide to continue forward, the cost of the second phase is estimated to be a total of $88,380, consisting of $39,000 for the consultant (plus travel and direct costs noted above), $27,200 for an optional second polling and $22,180 for 2 rounds of informational mailers.
FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
Attachment No. 1 Preview of Five Year Operating and Capital Forecast, Infrastructure Needs and Public Engagement Agreement
Attachment No. 2 Props and Measures Proposal and Scope of Work PGCC 11-19-2025
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Review of Five Year Forecast /
Funding of Infrastructure
November 19, 2025
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 3 General Fund 5 Year Forecast
(In Thousands)
Proposed Projected Projected Projected Projected
Category 25-26 26-27 27-28 28-29 29-30
Revenues: $ 32,729 $ 33,303 $ 34,385 $ 35,505 $ 36,663
Expenses:
Operating Expenses 26,942 28,233 29,080 29,953 30,851
Pension / Debt Obligations 6,260 6,588 7,154 7,708 6,199 Capital Outlay / Transfers 1,488 1,056 1,087 1,119 1,153 Total Expenses 34,689 35,876 37,321 38,780 38,203
Net Change for Fiscal Year $ (1.96M) $ (2.57M) $ (2.94M) $ (3.28M) $ (1.54M) Projected Ending Reserves $ 12.02M $ 9.45M $ 6.51M $ 3.24M $ 1.70M Projected Reserve Level 36% 27% 18% 9% 5%
Proposed
Two Year Budget
Future Trends
(Not accounting for new hotels)
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 4 General Fund 5 Year Forecast
(In Thousands)
Proposed Projected Projected Projected Projected
Category 25-26 26-27 27-28 28-29 29-30
Revenues: $ 32,729 $ 33,303 $ 34,385 $ 35,505 $ 36,663
Projected revenues new hotels 1,000 1,050 1,100 3,150
Expenses:
Operating Expenses 26,942 28,233 29,080 29,953 30,851
Pension / Debt Obligations 6,260 6,588 7,154 7,708 6,199 Capital Outlay / Transfers 1,488 1,056 1,087 1,119 1,153 Total Expenses 34,689 35,876 37,321 38,780 38,203
Net Change for Fiscal Year $ (1.96M) $ (1.57M) $ (1.89M) $ (2.18M) $ 1.61M Projected Ending Reserves $ 13.70M $ 12.13M $ 10.24M $ 8.07M $ 9.68M Projected Reserve Level 41% 35% 28% 21% 26%
Adopted 2 Year Budget Future Trends
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 5 • Wages - Assumes no additional staffing for the five year period, and future annual COLA adjustments to be similar to those in the current employees’ MOUs.
• Other Operating Expenses - 3% annual increase, similar to the assumed future rate of inflation. Assumes no additional contributions to pension or capital reserves.
• Debt Service / Pension Actuarial Liabilities - Incorporates debt service on debt through their maturities. Pension includes estimated amounts from CalPERS actuarials. Assumes CalPERS will attain its annual assumed rate of return of 6.8%.
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6 Projected Future Shortfalls Due To:
• Minimal increases or stagnant revenues in most categories • Funding increased amounts for unfunded actuarial pension liability • Funding of anticipated increases in employee compensation in future fiscal years (assumed 3% annually)
• Additional PT salaries from expanding Recreation programs • Significant increases in insurance premiums
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7 Revenues:
• Hotel Taxes from New Downtown Hotel
(Estimated $1.0-$1.5 million annually beginning in FY 2026-27) • Hotel Taxes from potential new hotel at former outlet mall (ATC) (Estimated $2 million annually beginning in FY 2029-30) • Looking to increase recovery rates for CDD / Recreation • Explore Options for enhancing parking revenues and efficiencies • Review of Facility Rental Process and Fees
• Explore the availability of grant funding and sponsorships for special events • Assessing an administrative fee on the collection of the BID / HID fees 11/19/2025 Five Year Forecast / Funding of City Infrastructure PGCC 11-19-2025
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8 Expenditures:
• Debt service on pension obligation bonds ending in FY 2028-29 Resulting in savings of approximately $1.6 million annually • Looking into the feasibility of additional regional partnerships • Analyzing of contracting vs in house staff for services • Evaluate annual museum contributions
• Continuing to strive for additional operational efficiencies • Combine / reduce number of boards
• Integration of sewer and street components on projects • Expand the digitization of city records
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 9 PGCC 11-19-2025
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 10 Number of Projects
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 11 Number of Projects
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 12 (2024)
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 13 Note: The General Fund Contribution for CIP was $7.4 Million total over the past six fiscal years.
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11/19/2025 Funding of City Infrastructure Needs 15
Note: Sewer fees were last increased in Fiscal Year 2024-25. Public Works staff will be working with a consultant to prepare an update to the study on sewer infrastructure, to be presented to Council in the future along with recommendations for changes to the fee structure.
Category FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31
5 Year Totals
(FY 26-27
to 30/31)
Future Years
(FY 31-32
to 35-36)
Total
Needs
Transportation 1.51$ 2.41$ 2.43$ 2.83$ 2.96$ $ 12.14 $ 11.88 $ 24.02 Sewer 2.15 4.42 0.65 0.86 8.35 16.43 TBD 16.43
Stormwater TBD TBD TBD
Facilities 2.76 1.53 0.57 1.13 1.58 7.57 6.26 13.83
Parks / Recreation 1.45 1.45 TBD 1.45
Totals $ 6.09$ 7.42$ 4.61$ 5.40$ 14.07 $ 37.59 $ 18.14 $ 55.73 Note: In Millions
TBD
TBD
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11/19/2025 Five Year Forecast / Funding of City Infrastructure 16 The infrastructure needs and funding gaps summary compares identified needs with available funding, highlighting where funding falls short.
Category FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31
5 Year Totals
(FY 26-27
to 30/31)
Future Years
(FY 31-32
to 35-36)
Total
Needs
Transportation (0.19)$ 0.72$ 0.72$ 1.12$ 1.24$ $ 3.61 $ 3.27 $ 6.88 Sewer - TBD -
Stormwater TBD TBD TBD
Facilities 1.86 1.53 0.57 1.13 1.57 6.66 6.26 12.92
Parks / Recreation 1.45 1.45 TBD 1.45
Totals 3.12$ 2.25$ 1.29$ 2.25$ 2.81$ $ 11.72 $ 9.53 $ 21.25 Note: In Millions
TBD
TBD
TBD
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17 • Stagnant or decreasing revenues in most tax categories • Increased amounts needed to funded actuarial pension liability
• Compensation adjustments needed to remain competitive in labor market • Concerns about potential impacts of future inflation
• Non-tax Revenues will continue to be pursued, including grants and parking • Revenue Recovery Rates will be reevaluated for Recreation / CDD Activities • Operations will continue to be evaluated for opportunities for more efficiencies • Additional funding is needed to address deferred maintenance of streets / facilities 11/19/2025 Five Year Forecast / Funding of City Infrastructure PGCC 11-19-2025
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Proposal for Ballot Measure Feasibility,
Preparation and Outreach Services
Prepared for
City of Pacific Grove
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About Props & Measures
Props & Measures is a non-partisan strategy and communications consulting firm specializing in bond, tax and other public finance ballot measures supporting public programs, services and facilities. Props & Measures (formerly known as TBWBH Props & Measures and TBWB Strategies) launched in 2005 as an offshoot of Terris Barnes & Walters Political Media, which has been winning campaigns in California since 1988. The firm is fully remote and has staff located throughout the Bay Area and Sacramento. Our website can be found at www.PropsandMeasures.com
Building Public Consensus in Communities Throughout California Successful revenue measures are built upon a foundation of strong community consensus. We work with our clients to identify shared community priorities and values to identify the elements of a successful revenue proposal. We have built community consensus for revenue measures in hundreds of communities throughout our home state of California and many communities across the country. We know how to develop successful revenue proposals and communicate with voters in urban, suburban and rural communities.
Unparalleled Experience
The partners and consultants at Props & Measures have experience with numerous successful public finance ballot measures that have raised billions of dollars in voter-approved revenue for public programs, services and facilities. The successful measures include real property transfer taxes, bonds, parcel taxes, sales taxes, transient occupancy taxes, utility users taxes, assessments and fees. We help cities, counties, school districts, community colleges, parks, water and open space districts, fire districts, libraries, healthcare districts, transportation and transit agencies and others.
Commitment to Client Service
We have found that a close partnership with attention to daily details is essential. We know public finance measures, and you know the community you serve. We also understand your reputation is at stake when you seek funding from your community. It’s not enough just to “win,” but the measure and the related messaging must help you strengthen city government’s relationship with the community.
In-House Graphic Design, Digital Media and Production Coordination Props & Measures is one of the few firms in our industry that maintains an in-house Art Department and Production Department, to produce award-winning, creative concepts and attend to all the details required for efficient and timely delivery of digital media and printed materials. Our team will make sure your materials are given the necessary attention to deliver your message to your constituents effectively and on time.
Multimedia Communications
Local residents receive their information in a variety of ways. We offer innovative multimedia communication plans that deliver your message through a combination of direct mail, email, online display advertising, pre-roll video advertising and social media advertising to ensure a thorough reach to voters and maximize visibility. Props & Measures has experience blending traditional and new media strategies to maximize the impact of your message.
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Our Approach and Scope of Services
We have a proven general approach to successful revenue measures that follows four critical steps.
Within each step, we customize a set of strategies and tactics to address the specific challenges, circumstances and nuances for each of our projects.
PHASE 1
Feasibility study to determine if and under what conditions the city can pass a measure.
PHASE 2
Build consensus with outreach and awareness-building strategies that position your measure for success.
PHASE 3
Build a strong measure by aligning the measure’s features with the community’s priorities and sensitivities.
PHASE 4
Campaign for the win by efficiently getting your message out to persuade voters and mobilize your base of support.
The first three steps in this process are typically led by the public agency pursuing the revenue measure as part of the process to evaluate, plan and prepare a measure for the ballot. All publicly funded communication during this phase must be informational and not advocacy. The fourth step in the process, once a measure is on the ballot, must be coordinated by an independent campaign committee using private resources.
PHASE 1
Feasibility Study
In collaboration with True North Research, Props & Measures will help you assess the basic viability of a potential revenue measure and identify the strategic elements needed to maximize the chances for success. During the feasibility study we’ll help you tackle the most basic strategic questions that must be answered in order to identify a path to success.
Props & Measures and True North will help you answer:
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• How do the projects the Council is interested in funding (public safety, council stipends, infrastructure etc.) stack up versus residents’ priorities? • How does the external environment of the economy affect your chances? • What are the general parameters (in dollars) of the tax tolerance among residents right now? • Does sufficient community awareness of your needs already exist, or is proactive outreach required to build awareness? What are the key messages voters need to hear and what are the most effective channels for communication?
• How might specific exemptions or accountability protections be included in a successful measure?
• What competing issues must be considered before moving forward? To answer these questions, our team will carefully assess your needs, funding options, and competing issues in the community. To obtain a deeper understanding of current attitudes and opinions in your community, Props & Measures will work with True North Research to conduct opinion research with local voters. Our team will work closely with you to outline your research options, explain the tradeoffs for the different approaches, and create a specific research scope that best meets the needs of your community. In conjunction with True North Research, we’ll help you interpret the results and turn the data into an actionable plan for moving forward. We’ll also help you interpret and present recommendations to your administrative team, the Council, and other key stakeholders to build consensus around a unified strategic approach.
PHASE 2
Build Consensus
Based on the findings from the survey and feasibility assessment, if the decision is made to move forward with a measure, Props & Measures will help develop and implement a public information and outreach program to educate the community about your funding needs and build broad community consensus around a revenue solution.
Specifically, Props & Measures will:
• Develop informational messaging and a plan for disseminating the message to key audiences • Provide talking points, answers to frequently asked questions and a message training to key staff, employee groups and elected officials that will be speaking publicly about this issue • Provide information to be added to your website, distributed through social media and included in newsletters
• Prepare presentations for community meetings
• Write, design and produce informational mailings and advertising to educate, inform and engage voters
• Develop strategies and plans to inform and engage key internal stakeholder groups within the city and partner organizations
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Props & Measures has expertise in traditional communication strategies like direct mail, print advertising and earned media. We are also experts in utilizing online strategies such as social media, digital advertising and video. Our in-house graphic design and production capabilities allow us to deliver the highest level of strategic and creative communication for our clients.
PHASE 3
Build a Strong Measure
Once we know what a viable, winnable ballot measure looks like, Props & Measures will work with you to develop a revenue measure and qualify for the ballot.
During this phase of work, Props & Measures will:
• Work with you and your financial team to finalize the tax type, tax rates and the structure of your measure
• Refine the description of your needs and/or expenditure plan to make sure they are written in clear and understandable language featuring projects and programs that are high priorities for voters
• Work with you and your legal counsel to define important taxpayer accountability protections, including any potential independent citizens’ oversight committee and public reporting process, if needed
• Work with you and your legal counsel to develop all resolutions required for calling the election • Develop the critical ballot question that will appear on ballots • Develop and refine the full text of the measure and other materials that will appear in the ballot pamphlet mailed to all voters
• Present recommendations and documents to the City Council for formal approval PHASE 4
Campaign for the Win*
The next step in the process is to mount a strategic advocacy campaign to secure the votes needed to win on Election Day. This is the only step in the process that cannot be funded with public dollars.
While public agencies can continue to provide information to residents about the measure, only a privately funded campaign committee can advocate for the measure. We will work with you to understand if volunteers are available and motivated to step forward to run such an effort. Typically, as consultants to volunteer campaign committees, we build campaign plans with the following elements to ensure the best possible chance of success on Election Day:
• Effective messaging and materials. Campaign logos, brochures, websites, social media and other materials must be eye-catching and have a local feel in order to persuade and motivate voters effectively.
• Avoiding controversy and obstacles. We can’t take anything for granted in today’s economic and political environment. To win, it is important to run an organized campaign that avoids controversy and neutralizes opposition to the extent possible. • Good teamwork. We strive to build broad coalitions that include support from business, labor and the full spectrum of political ideologies.
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• Efficient grassroots organizing. The time and energy of your volunteers are precious resources.
We’ll work with you to develop a plan that maximizes the impact of their efforts on the outcome of the election.
• Strong fundraising. Fundraising for local ballot measures can be a challenge. It takes resources to get your message out to the voters who will determine the outcome of your election. We believe the key is forming a campaign committee well in advance whose primary job is to raise money for the measure. We can help you brainstorm ideas for committee members based on our knowledge of the local landscape. We generally value “doers” on a committee over big names, unless the big names are also willing to participate actively in day-to-day call time and other mechanisms for raising money.
*Note: The information provided in Step 4 is intended as information to convey Props & Measures’ full range of services available to assist with the tax measure process. The services described here are not proposed as part of the scope of services for the City of Pacific Grove. If a tax measure is placed on the ballot and an independent advocacy committee forms, these services would be offered to that group and privately funded under a separate agreement.
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Fees & Costs
As is the standard in our industry, Props & Measures contracts on a fixed-fee basis. Our standard consulting fee is $6,500 per month, pro-rated from the date of contract approval to the Council’s vote to place a measure on the ballot. Our fee doesn’t change regardless of how many times you need us on the phone, responding to emails, or attending online meetings. We don’t want you to hesitate to call on us when you need us.
Travel for meetings is billed separately, and while we are willing to travel to meetings since the COVID pandemic, our staff has successfully navigated working primarily remotely and is available for video and phone conferencing.
As highlighted in this proposal, if the feasibility study shows a path forward for a successful measure, we recommend that the district communicate with parents and voters, and the method of doing so is via informational mailers and digital media.
Sample pricing for informational mailings to all registered voters in the City of Pacific Grove (~10,602 voters in ~ 5,951 households) is included here. Actual pricing will depend on exact specifications and quantities. Should the City decide to engage in broader informational communication efforts, below we have provided pricing for production and distribution of informational mail.
Direct Mail:
Direct mail is priced separately on a per-piece basis as follows for informational mailings to all registered voters in the City of Pacific Grove – approximately 10,602 voters in 5,951 households. We recommend sending two mailers.
• 11x17, one-fold brochure or equivalent on 100# text: $10,430 • 11x17, one-fold brochure on 7 pt. with a tear-off return card: $11,750 Pricing includes design, stock photography, pre-press, print, mailing labels and address de-duping, ink jetting, postal handling including postage, shipping, bulk mailing forms, postal check-in, and applicable sales tax.
Fees and Costs
Phase 1 Consulting December 2025 – February 2026 $19,500 Phase 2-3 Consulting March 2026 – August 2026 $39,000
Informational Mailings 2 Mailings $22,180
Expenses (Travel, copies, etc.) $5,000
Baseline survey $28,650
Tracking survey (If needed) $27,200
Total NTE $141,530
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PACIFIC GROVE
True North Research, Inc. © 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 R ESEARCH P ROPOSAL
True North Research (True North) is pleased to present this proposal to provide voter opinion research and revenuemeasure consulting services to the City of Pacific Grove (City). Based on our discussions with Props & Measures and our experience designing hundreds of similar surveys for California cities, True North understands that the City is interestedin using the survey to produce an unbiased, statistically reliable evaluation of voters' interest in funding city services witha local revenue measure, as well as identify how to structure a measure so that it is well-aligned with the electorate’spriorities and sensitivities. In short, the goal is to assess the feasibility of placing a revenue measure on the November2026 ballot and—if feasible—determine how best to package a measure for voter approval.SCOPE OF WORK The scope of services that we propose to perform for the City includes all tasks associated withdesigning, conducting and analyzing the survey, as well as presenting the results. Briefly, the scope of services includes:
• Meet with the City to thoroughly discuss the research objectives and methodology for the study, as well as discuss potential challenges, concerns, and issues that may surround the study. • Develop a stratified and clustered sample of voters who—based on their voting history and registration status—are likely to participate in the election of interest (November 2026) on the natural or through targeted outreach efforts. • Develop a draft questionnaire for the City’s review and make revisions as needed until all parties approve of the instrument.
• Pre-test the survey instrument to ensure its integrity.• CATI (Computer Assisted Telephone Interviewing) program the finalized survey instrument to ensure accurate and reliable data collection using live telephone interviewers. • Web program the same survey instrument to allow for secure, password-protected online survey participation and data collection.
• Recruit participation in the survey using a combination of email, text messages, and telephone calls.• Complete at least 250 quality interviews according to the sampling plan and a strict interviewing protocol. Any interviews collected beyond 250 will be provided to the City at no additional cost. It is expect that the average interview will last between 15 to 17 minutes.
• Process the data, which includes conducting validity checks, cleaning, recoding, coding open-end responses, and adjusting for strategic oversampling (if used) through a statistical procedure known as ‘weighting’. • Prepare an initial topline summary which presents the overall findings of the survey.• Prepare a thorough report on the findings, including a detailed question-by-question analysis, description of the methodology, an executive summary of the key findings and conclusions/recommendations, as well as a comprehensive set of crosstabulations showing how the answers varied by subgroups of voters. The report will include PGCC 11-19-2025
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PACIFIC GROVE
True North Research, Inc. © 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 extensive full-color graphics displaying the findings, as well as insightful narrative discussion of the results and theirimplications. • Prepare an electronic copy of the final report to allow the City to reproduce the report as needed.• Prepare a PowerPoint presentation of the results and present the results to the City via Zoom or similar platform.• Be available to assist and provide advice to the City after the survey is complete.
TIME LINE True North will work with the City to establish a project schedule that meets the City’s needs. Figure 1below presents a typical time line for a voter survey that shows the stages of a survey project, the number of days that werecommend devoting to each stage, as well as the key research tasks that are completed in each stage. We have the flexibility and resources to adjust this time line if the City desires, and we can apply this time line to any start date set by theCity.
FIGURE 1 PROPOSED TIME LINECOSTS True North’s fixed-fee cost estimate to design and conduct the baseline survey as described in this proposal is $28,650. If advised and approved by the City, the costs for a subsequent tracking survey will be $27,200. These costs areinclusive of all tasks and deliverables, with the exception of travel time and expenses (if needed). 5 days 14 days 10 days 14 days 7 days 10 days Ongoing
Kickoff
Meeting
Background
Research
Share Plans
& Documents
Questionnaire
Design, Review & Approve
Pre-Test Sample
Language
Translation
CATI
Program/Test
Web
Program/Test
Interviewer
Training
Invitations
Email, Text
& Phone Recruiting
Online
Surveys
Telephone
Interviews
Monitoring
Data
Processing
Coding Weighting Crosstabs Topline
Summary
Statistical
Analysis
Modeling &
Targeting Tool
Full Report Powerpoint
Summary
Staff
Presentation
Council
Presentation
Strategic Advice
for Measure
Project
Initiation
Design
Prepare to
Field
Data
Collection
Data
Processing
Analysis &
Reporting
Presentations
Ongoing
Strategic
Consulting
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PACIFIC GROVE
True North Research, Inc. © 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A BOUT T RUE N ORTH
True North is a full-service survey research firm that is dedicated to providing California municipalities and publicagencies with a clear understanding of the opinions, perceptions, priorities and behaviors of their residents and voters.
Through designing and implementing scientific surveys, focus groups and one-on-one interviews, as well as expert interpretation of the findings, True North helps its clients to move with confidence when making strategic decisions in avariety of areas—such as performance measurement, planning, budgeting, revenue enhancement, and developingeffective public engagement/communications strategies.As specialists in research methodology and the public sector, our clients span the full range of public agencies includingcities, counties, special districts, utilities, councils of government, educational institutions, state agencies, and federalagencies. The diversity of our public sector clientele has enabled us to perform research at the local, regional, state,national, and international levels.COMPANY SPECIFICS True North Research was co-founded in 2002 as a two-person survey consulting firm by Dr.
McLarney and Mr. Sarles and is a certified Small Business Enterprise (SBE) and S-Corporation in good standing with the State of California. Although we have had many opportunities to expand our business during the past 23 years, we havechosen to maintain True North as a two-person research team. Dr. McLarney and Mr. Sarles still manage every aspect ofevery True North project. We are an extremely efficient, collaborative team of two—and we have chosen to keep it thatway so that our clients continue to receive exceptionally high quality customer service and research insights.REVENUE MEASURE EXPERIENCE Creating revenue measures that are ultimately approved by the necessarypercentage of voters is difficult, especially in the State of California. Successful measures require insightful research andsound, strategic advice. One testimony to the accuracy of our research and the reliability of our strategic advice is that we have the highest verifiable success rate in the State of California for revenue measures over the past decade (93%), and a 100% success rate in seven of the past ten election cycles. To date, we have helped our clients raise over $42 bill ion in voter approved revenue measures, including more than $7 billion in the past year alone (2024). Our experience includes all types of revenue measures including general and special sales taxes (transactions & use taxes), parcel taxes, bonds,transient occupancy taxes, utility users taxes, real estate transfer taxes, business licence taxes, benefit assessments, andproperty-related fees.MUNICIPAL CLIENTS During their careers, Dr. McLarney and Mr. Sarles have designed and conducted more than 500 surveys for California municipalities to help them identify community priorities with respect to city services and facilities, as well as identify how best to plan for and invest in service, facility, and infrastructure improvements. Below is a list of the California municipalities for which Dr. McLarney and Mr. Sarles have personally designed and conductedcommunity and voter surveys. It’s worth nothing that many of these municipalities have selected True North as theirresearch partner for multiple surveys, with repeated engagements spanning more than two decades.
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PACIFIC GROVE
True North Research, Inc. © 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 TRUE NORTH’S MUNICIPAL CLIENTS
Agoura Hills Cypress Lake Elsinore Rocklin
Alhambra Dana Point Lake Forest San AnselmoAliso Viejo Del Mar Lathrop San CarlosAnaheim Diamond Bar Lemon Grove San ClementeApple Valley East Palo Alto Lompoc San DiegoArroyo Grande Eastvale Long Beach San Dimas Atascadero El Cajon Los Angeles San GabrielAtherton Encinitas Los Gatos San Jose Azusa Escondido Madera San Luis Obispo
Baldwin Park Folsom Malibu San MarcosBanning Fontana Manhattan Beach San MarinoBarstow Fremont Menifee San MateoBelvedere Gilroy Mission Viejo Santa BarbaraBeverly Hills Glendale Modesto Santa ClaritaBig Bear Lake Glendora Moorpark Santa Monica Brea Goleta Murrieta Signal HillBuellton Grand Terrace Norwalk Solana BeachBuena Park Half Moon Bay Oceanside South Lake Tahoe Burbank Hemet Oxnard South PasadenaCampbell Hesperia Palmdale Temecula Carlsbad Huntington Beach Petaluma Thousand Oaks
Cerritos Indian Wells Pico Rivera TruckeeChino Irvine Placentia Upland Chula Vista Kerman Port Hueneme VenturaClaremont La Canada-Flintridge Rancho Cucamonga Watsonville Clayton La Mesa Rancho Palos Verdes West Hollywood
Commerce La Palma Rancho Santa Margarita Westlake Village Coronado La Verne Redlands WhittierCosta Mesa Laguna Beach Redondo Beach Yorba LindaCudahy Laguna Niguel Riverside Yucca Valley PGCC 11-19-2025
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Timothy McLarney, Ph.D.
PresidentRole: Project Manager & Lead
Project Manager Day-to-Day ContactSampling Design Questionnaire DesignAnalysis Report WritingPresentations Strategic Consulting Richard Sarles, M.S.Principal ResearcherRole: Data Science & Support Programming TestingData Collection Quality ControlData Processing Graphics Telephone & Online Data Collection
PACIFIC GROVE
True North Research, Inc. © 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 P ROJECT T EAM
Most research firms manage survey projects through division of labor and a lot of delegation. Althoughthe Principals may appear for the interview and for client meetings, their involvement beyond that point is generally negligible. The Project Manager’s role is to be the point of contact and help designthe study, but even they only handle about 20% of the workload. The unfortunate reality is that most ofthe important research tasks—data processing, data analysis, report writing, presentation building— are delegated to junior-level staff. And the bigger the firm, the more projects they manage, the morethey rely on junior staff to get the work done.We do things differently at True North. We believe the best approach to research is to have the personwith the most experience and expertise in the firm roll up their sleeves and actually do the work. Dr.McLarney will not only serve as the Project Manager and the day-to-day contact for the City, he willpersonally perform about 70% of the research tasks including all survey design, analysis, report writing,and presentations. We have purposely kept True North as a single office, two-person research teambecause of our commitment to this project management model and the many benefits it provides toour clients.Our approach to managing projects is one of the things that makes True North unique, as every task ofyour study will be performed by a highly-trained principal with 25+ years of experience. Put anotherway: You don't need to pick up the phone to get the attention of our principals - we are there with youat every step, doing (not delegating) the research.PROJECT ORGANIZATION True North Research will serve as prime contractor at the directionof the City of Pacific Grove. As shown in the figure to the right, Dr. Timothy McLarney (President ofTrue North) will be the Project Manager for the study and will perform all key design, analysis, andreporting tasks. Richard Sarles (Principal Researcher at True North) will assist with programming,testing, data processing, quality control, and graphics production. The telephone and online interviewswill be conducted by the same high quality, professional data collection firm (Dynata) that True Northhas teamed with to complete more than 1,000 community and voter opinion surveys.
RESUMES & ROLES For the City’s reference, the following paragraphs provide additional information about Dr. McLarney’s and Mr. Sarles’ respective roles on this project, as well as their educationand research backgrounds. Dr. McLarney and Mr. Sarles are committed to working with the City of Pacific Grove for the duration of this project—there will be no staff turnover, substitutions, or changes.
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PACIFIC GROVE
True North Research, Inc. © 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PROJECT MANAGER Timothy McLarney, Ph.D., will serve as the Project Manager for the proposed survey and will be the City’s point of contact on all matters related to the study. Dr. McLarney will lead all design, analysis, reporting andpresentation tasks. Approximately 70% of the research tasks will be performed directly by Dr. McLarney.Dr. McLarney has more than 25 years of experience in survey methodology, statistics, public opinion analysis, andproviding data-driven strategic advice to public agencies. During his career, he has occupied a lead role in over 1,500research studies, including more than 500 revenue measure feasibility surveys. To date, Dr. McLarney’s research has ledto over $42 billion in voter-approved revenue measures at the local level in California.
Dr. McLarney is a nationally recognized expert in survey research methodology, sampling theory, weighting, and the useof statistical methods to generalize survey results. His research has been published in academic journals and has earnedhim honors including the Andrew Mellon Fellowship (Cornell University), Sage Fellowship (Cornell University), and thetitle of Visiting Scholar at the Institute of Governmental Studies at UC Berkeley. He has also served as an independentexpert witness in survey research methodology for California legal cases.Dr. McLarney earned his Ph.D. and M.A. in Government from Cornell University with an emphasis in survey methodology, sampling theory, data science, and public opinion analysis, as well as a Bachelor's degree in Politics from UC Santa Cruz.PRINCIPAL RESEARCHER Richard Sarles, M.S., will assist Dr. McLarney with managing data collection, data processing, quality control, and graphics production. As Principal Researcher and co-founder of True North Research, Mr.Sarles has more than 25 years of expertise in survey research and data science, specializing in database management, sampling methodology, statistical analysis, and results interpretation. Throughout his career, Mr. Sarles has proven to beexceptional in transforming complex data sets into actionable insights that drive strategic decision-making. Withexperience spanning over 1,500 research studies, he has collaborated with local, state, and federal government agencies, Fortune 500 companies, and nonprofit organizations, delivering valuable, data-driven guidance across diverse sectors.Before co-founding True North Research, Mr. Sarles served as the Associate Research Director at another west-coastresearch firm. A published author, his work has been cited in sociological, psychological, and industry-specific journals.
Mr. Sarles holds an M.S. in Experimental Psychology with an emphasis in statistics from Illinois State University, where he graduated magna cum laude, as well as a B.S. in Psychology from the same institution, where he achieved summa cumlaude honors.
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11/13/2025
Renewable Guard Insurance Brokers, LLC
155 Montgomery Street
Suite 507
San Francisco CA 94104
Kate Cote
(800) 267-0311
[email protected]
Terris Barnes Walters Boigon Heath Lester Inc, DBA: CleanSweep 1569 Solanoa Ave
#93
Berkeley CA 94707
Hanover Fire & Casualty Ins Co
Hiscox Insurance Company 10200
CL25111302620
A Y OBF-D431868-10 10/01/2025 10/01/2026
2,000,000
300,000
10,000
4,000,000
4,000,000
Y OBF-D431868-10 10/01/2025 10/01/2026
1,000,000
1,000,000
Products - Comp/ Op 1,000,000
A Y W2F-D361933-10 10/01/2025 10/01/2026
1,000,000
1,000,000
1,000,000
B
Errors and Omissions
Y US UUA 2630235.25 10/01/2025 10/01/2026
Each Occurence 1,000,000
General Aggregate 2,000,000
City of Pacific Grove and its officers, employees, agents, and volunteers shall be additional insureds under such policies when required by a written contract. Primary Non-Contributory. Waiver of Subrogation is applicable.
City of Pacific Grove
300 Forest Ave
Pacific Grove CA 93950
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$
PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOS ONLY AUTOS
NON-OWNED
OWNED SCHEDULED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTHSTATUTEPER
(MM/DD/YYYY) LIMITS
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
LTR TYPE OF INSURANCE POLICY NUMBER
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $
AGGREGATE $
$
OCCUR
CLAIMS-MADE
DED RETENTION $
PRODUCTS - COMP/OP AGG $
GENERAL AGGREGATE $
PERSONAL & ADV INJURY $
MED EXP (Any one person) $
EACH OCCURRENCE $
DAMAGE TO RENTED
PREMISES (Ea occurrence) $
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY
PROJECT LOC
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
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Agenda No. 13 B
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: November 19, 2025
SUBJECT: Approval Of the California Employers’ Pension Prefunding Trust (CEPPT) Participation Agreement with CalPERS
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
1) Approve and adopt a resolution, authorizing establishment of the California Employer Pension Pre-funding Trust (CEPPT) Section 115 Trust.
2) Adopt and Execute the CalPERS CEPPT Participation Agreement 3) Adopt and Execute the CalPERS CEPPT Delegation of Authority document listing the City Manager, and Administrative Services Director as authorized to request disbursements from the Trust. 4) Adopt the Certification of Pre-Funding Policy designating the CEPPT Trust Fund be established with the Asset Allocation Strategy of Strategy 1.
DISCUSSION
The City is part of the California Public Employees' Retirement System (CalPERS) and is affected by its funding policies and actuarial assumptions. Over the past decade, pension costs have risen, prompting the State to enact the Public Employees’ Pension Reform Act (PEPRA), which introduced new pension formulas for employees hired after January 1, 2013. Despite these reforms, pension costs continue to rise, largely due to CalPERS' overly optimistic discount rate assumptions. The Unfunded Accrued Liability (UAL) has increased since 2003, primarily due to actual investment performance falling short of expectations or CalPERS reducing its discount rate.
The City is legally required to make payments to CalPERS for both current and retired employees under various pension plans, which include payments for normal costs and amortization of obligations (UAL).
Two common strategies for pre-funding pension liabilities are making payments directly to CalPERS and creating a Section 115 Trust. Direct payments to CalPERS can yield better long-term investment returns through options like a shorter amortization period (Fresh Start) or Additional Discretionary Payments (ADPs). While a Fresh Start leads to higher short-term payments and lower long-term payments, it is irreversible once elected. And although ADPs can help reduce future contributions to CalPERS, they are also irreversible once paid.
Alternatively, a Section 115 Trust allows the City maintain control over assets, providing flexibility in contributions and withdrawals for CalPERS payments. CalPERS established the CEPPT, which is an IRS Section 115 Trust set up for the sole purpose of receiving employer contributions that will pay for PGCC 11-19-2025
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pension costs. This program has been around since 2019, with over $300 million in assets under management, with 102 participants. Section 115 Trusts are used by cities and counties to reserve funds against pension liabilities. Funds can be transferred from a Section 115 Trust to pay for pension costs; they cannot be used for other purposes.
Advantages of CalPERS' Section 115 CEPPT Fund include:
· City has control over the contribution and its funding. A one-time deposit can be made at this time and, if needed, City can make additional deposits in the future as well. Funds can be withdrawn in the future to finance future pension contribution payments. · Earnings on assets would reduce future contributions
· Reducing the pension liability would improve City's overall balance sheet · Low administrative fee of 25 basis points on asset balances. For each $1,000,000 invested, an annual fee of $2,500 is paid from earnings. There are no additional costs to join or withdraw funds.
While the City's investment policy keeps the City's cash and investments safe and liquid, the return on investments is limited. Opening a CEPPT Section 115 Trust with CalPERS provides additional leverage to increase the City's return on investments, while maintaining safety and liquidity. Another benefit is that the City's overall finances will improve, as prefunding the pension costs will lower the overall pension liability, improving the City's overall balance sheet.
The funds will be held in a trust and will be invested through the CEPPT program via one, or both, of its investment strategies. These strategies invest in four common asset classes: Global Equity, Fixed Income, Global Real Estate (REITs) and Treasury Inflation Protected Securities (TIPS). The main distinction between the two is asset allocation among these four categories, with Strategy 1 having more assets in equities and Strategy 2 being more conservative with more assets in fixed income.
CEPPT Portfolios Strategy 1 Strategy 2
Expected Net Rate of Return 4.5% 3.5%
Standard Deviation of Expected Return 8.8% 6.1%
CEPPT does come with risk in that it would be more prone to market and economic volatility compared to the City's current investment in LAIF or US Treasury investments. The expected returns in either strategy are not guaranteed. Furthermore, the IRS Section 115 Trust is irrevocable, meaning the investment can be only utilized for pension-related costs. Payment of other unforeseen costs is not allowed. Additionally, funds cannot be withdrawn from the trust, with the exception of the pension costs detailed above.
Pursuant to the terms of the Agreement, the City must delegate certain City officials with the authority to request on behalf of the city, disbursements from the fund, and to certify the purpose for which those funds will be used. Staff recommends that the City Manager and Administrative Services Director be given that authority.
OPTIONS
· Approve the Resolution and Agreements
· Provide Alternate Direction
FINANCIAL IMPACT:
The fiscal impact for Fiscal Year 2025-2026 would be $250,000, to be paid in monthly installments of PGCC 11-19-2025
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The fiscal impact for Fiscal Year 2025-2026 would be $250,000, to be paid in monthly installments of $50,000 from the pension reserve in the City's General Fund over a two-year period beginning in 2026.
FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
CEPPT Delegation of Authority to Request Disbursements
CEPPT Fact Sheets and Investment Policy
Certification of Funding Policy
CEPPT Participation Agreement
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California Public Employees’ Retirement System
California Employers’ Pension Prefunding Trust (CEPPT)
400 Q Street, Sacramento, CA 95811
www.calpers.ca.gov
Delegation of Authority to Request Disbursements
California Employers’ Pension Prefunding Trust
(CEPPT)
RESOLUTION
OF THE
(GOVERNING BODY)
OF THE
(NAME OF EMPLOYER)
The
(GOVERNING BODY)
delegates to the incumbents
in the positions of
(TITLE)
and
(TITLE)
, and/or
(TITLE)
authority to request on behalf of the
Employer disbursements from the Pension Prefunding Trust and to certify as to the purpose for which the disbursed funds will be used.
By
Title
Revised 05/2020