Pacific Grove City Council
February 18, 2026

CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, February 18, 2026, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA Appearing Remotely Via Zoom: Councilmember Poduri
28 North Franklin Street
Chicago, IL 60606
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
PLEDGE OF ALLEGIANCE: Councilmember Rau

1. APPROVAL OF AGENDA

2. PRESENTATIONS

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

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

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

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 11. Unfinished and Ongoing Business A. Minutes of the February 4, 2026 City Council Regular Meeting Reference: Sandra Kandell, City Clerk
Recommended Action: Approve the minutes.

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

6. RESOLUTIONS
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business or 12. New Business A. Allowance of an Administrative Leave Bank for Experienced New Hires Reference: Leticia Livian, Human Resources Director
Recommended Action: Approve a Resolution Approving the Allowance of an Administrative Leave Bank for Experienced New Hires.

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

7. ORDINANCES
Items pulled from this section will be placed under 10. Public Hearings

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business or 12. New Business A. Monterey Salinas Transit Board of Directors Meeting Minutes: January 12, 2026 Reference: Joe Amelio, Mayor Pro Tem
Recommended Action: Receive the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. FY26 Q2 Quarterly Investment Report
Reference: Honorable Mayor and Members of the City Council 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. Check Register, Purchase Order report, and Interim Financial Report - January 2026 / Q2 Reference: Honorable Mayor and Members of the City Council Recommended Action:

1. Receive the Check Register, Purchase Order report, 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

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business or 12. New Business A. Pump Station 15.5 Replacement
Reference: Daniel Gho, Public Works Director/Deputy City Manager Recommended Action:

Award an agreement with Monterey Peninsula Engineering in an amount not to exceed $197,500 plus a 15% contingency for the Pump Station 15.5 Rehabilitation Project

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

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities B. PGUSD & City of Pacific Grove MOU for Expanded Learning Opportunities Program Summer Camp
Reference: Katie Clark, Recreation Manager
Recommended Action:

Approve the City of Pacific Grove to enter a Memorandum of Understanding with Pacific Grove Unified School District allowing Pacific Grove Recreation to operate the Expanded Learning Opportunities Program (ELOP) Summer Camp.

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

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Letter Supporting the Monterey Peninsula Water Management District's Request for Modifications to State Water Resources Cease-and-Desist Order WR 2016-0016 Reference: Jon Biggs, Community Development Director
Recommended Action: Authorize City Manager to Submit Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 12. New Business

1. Architectural Review Board Meeting Minutes: December 09, 2025 Reference: Anna Bornstein, Associate Planner
Recommended Action: Receive the minutes.

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

2. Recreation Board Minutes October 23, 2025
Reference: Katie Clark, Recreation Manager
Recommended Action: Receive the minutes.

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

REGULAR AGENDA

11. PUBLIC HEARINGS
For public hearings involving a quasi-judicial determination by the Council, the proponent of an item may be given 10 minutes to speak and others in support of the proponent’s position may be given three minutes each. A designated spokesperson for opposition to the item may be given 10 minutes to speak and all others in opposition may be given three minutes each. Very brief rebuttal and surrebuttal may be allowed in the sole discretion of the Council. In public hearings not involving a quasi-judicial determination by the Council, all persons may be given three minutes to speak on the matter.

A. Discussion and possible adoption of Resolution Calling And Giving Notice Of A Special Municipal Election To Be Held On June 2, 2026 For A Measure With A Proposed Ordinance Increasing The Monthly Compensation And Permitting City Councilmembers And Mayor To Waive Any Or All Of Their Monthly Compensation; Requesting Consolidation with the County Of Monterey With The Statewide Direct Primary Election To Be Held On June 2, 2026; Directing The City Attorney To Prepare An Impartial Analysis Concerning Such Measure; Authorizing The Drafting Of Primary Arguments And Rebuttal Arguments Concerning Such Measure And Requesting The County Of Monterey To Conduct The Election

Reference: Alex Lorca, City Attorney
Recommended Action:

Discussion of Resolution of the City Council Of The City Of Pacific Grove Calling And Giving Notice Of A Special Municipal Election To Be Held On June 2, 2026 For The Submission To The Voters Of The City Of Pacific Grove A Measure With A Proposed Ordinance Increasing The Monthly Compensation Of City Of Pacific Grove Councilmembers And The Pacific Grove Mayor And Permitting City Councilmembers And Mayor To Waive Any Or All Of Their Monthly Compensation; Requesting County Of Monterey To Consolidate The Special Election With The Statewide Direct Primary Election To Be Held On June 2, 2026; Directing The City Attorney To Prepare An Impartial Analysis Concerning Such Measure; Authorizing The Drafting Of Primary Arguments And Rebuttal Arguments Concerning Such Measure And Requesting The County Of Monterey To Conduct The Election (“Resolution”) attached to this Agenda Report. If the Council decides to adopt this Resolution, then the following actions are recommended.

1. 2. Motion to adopt the Resolution

3. Motion directing that the Resolution be submitted to the County of Monterey.

4. Other action related to this Agenda Item.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Budget Amendment Request for the CalHome Reuse (Fund 36) Budget for Fiscal Year 2025-26 Budget
Reference: Phillip Anderson Housing Program Manager
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 that amends the FY25/26 budget for the CalHome Reuse (Fund 36) Budget for the Fiscal Year 2025-26 Budget

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

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

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS

14. FULL PRESENTATIONS

15. CLOSED SESSION

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

Agenda No. 5 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: February 18, 2026
SUBJECT: Minutes of the February 4, 2026 City Council Regular Meeting CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve the minutes.

Attachments
Draft Minutes 2-4-26
1 DRAFT MEETING MINUTES

CITY COUNCIL

REGULAR MEETING
Wednesday, February 4, 2026, 6:00 P.M.

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

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

Absent: Mayor Smith.

PLEDGE OFALLEGIANCE
Councilmember Poduri led the pledge of allegiance.

ACTION: Councilmember Garfield appeared remotely pursuant to AB2449 just cause.

1. APPROVAL OFAGENDA
Upon motion by Councilmember Rau and seconded by Councilmember Poduri, Council voted to approve the Regular Meeting Agenda.

Motion carried 6-0-1, by the following roll call vote:

Ayes: Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick.

Noes: None.

Absent: Mayor Smith.

2. PRESENTATIONS

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

4. GENERAL PUBLIC COMMENT
General public comment received from Sally Moore, Tony, Amril Morris, Inge Lorentzen Daumer, Debby Beck, and Carmelita Garcia.

A. Written General Public Comment

CONSENT AGENDA
Action: Upon motion by Councilmember Rau and seconded by Councilmember Poduri, Council voted to approve the Consent Agenda.

DRAFT
2 Motion carried 6-0-1, by the following roll call vote:

Ayes: Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick.

Noes: None.

Absent: Mayor Smith.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the January 21, 2026 City Council Regular Meeting Action: Approved the minutes.

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

6. RESOLUTIONS

7. ORDINANCES
A. Second reading of an ordinance to amend the City Salary Classification Schedule Range for Code Compliance Officer
Action: Held second reading and adopted Ordinance No. 26-004 to amend the salary classification schedule salary range for Code Compliance Officer.

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

8. REPORTS – INFORMATION ONLY

9. REPORTS – REQUIRING ACTION
A. FY24/25 Street Rehabilitation Project
Action: Authorized an agreement with Kraemer Engineering for the FY24/25 Street Rehabilitation Project on 19th Street, Alder Street and the Alley between 2nd & 4th Street in an amount not to exceed $1,030,963 plus a 15% contingency.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities B. Prescott Lane Sidewalk Improvement Project– Award of Contract Action: Awarded an agreement with NXP Engineering in an amount not to exceed $172,915 plus a 15% contingency for the Prescott Lane Sidewalk Improvement Project.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities C. Appointment of City Manager Pro Tempore
Action: Appointed Joyce Halabi, Deputy City Manager, as City Manager pro tempore, effective February 5, 2026.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
D. Contract Extension with Access Media Productions (AMP) for Video Production and Broadcast Services for City's Public Meetings.

Action: Approved a three-year extension to the City’s contract with Access Media Productions (AMP) for video production and broadcasting services, with an optional two-year extension exercisable at the City’s discretion.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES

REGULAR AGENDA

11. PUBLIC HEARINGS
A. Appeal of Architectural Permit (AP) and Coastal Development Permit (CDP) 24-0044 for 685 Mermaid Avenue (APN 006-085-003-000)
Mayor Pro Tem Amelio opened the public hearing.

No members of Council reported ex-parte communications.

Community Development Department Associate Planner Garrett McCown presented to Council.

Appellant Leslie Anderson was provided 10 minutes to present to Council.

Applicant Charlie Hornisher and Historian Dana Supervowicz were provided 10 minutes to present to Council.

Appellant Leslie Anderson was provided 5 minutes for rebuttal.

Applicant representative Historian Dana Supervowicz was provided 5 minutes for rebuttal.

Public comment received from Cindy Belleci, Unnamed Speaker, Vicki, Maryanne.

Action: Upon motion by Councilmember Rau and seconded by Mayor Pro Tem Amelio, the Council voted to deny the appeal and affirm the Planning Commission approval of Architectural Permit (AP) and Coastal Development Permit (CDP) 24-0044, based on findings, conditions of approval, and Class 1 and 31 Categorical Exemptions (CEQA Guidelines Sections 15301, Existing Facilities, and 15331, Historical Resource Restoration and Rehabilitation).

Motion carried 6-0-1, by the following roll call vote:

Ayes: Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick.

Noes: None.

Absent: Mayor Smith.

CEQA: Categorical Exemption, CEQA Guidelines 15331, Historical Resources Restoration/Rehabilitation
Action: Council took a 10-minute break until 8:00 p.m.

B. Proposed Urgency Ordinance Repealing and Replacing Chapter 11.72 (Aircraft Landing) Regulating Aircraft Launch and Landing, and to Prohibit Recreational UAS Public comment received from Inge Lorentzen Daumer.

DRAFT
4 Action: Upon motion by Councilmember Poduri and seconded by Mayor Pro Tem Amelio, Council voted to adopt the Urgency Ordinance Repealing and Replacing Chapter 11.72 (Aircraft Landing) Regulating Aircraft Launch and Landing, and to Prohibit Recreational UAS, adding a new paragraph 3 to 11.72.020 Launch or landing of aircraft prohibited as follows: 3. The prohibitions and permit requirements set forth in this chapter shall not apply to any project or activity for which a valid city-issued use permit, architectural permit, or coastal development permit (CDP) was approved prior to February 4, 2026.

Motion carried 6-0-1, by the following roll call vote:

Ayes: Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick.

Noes: None.

Absent: Mayor Smith.

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

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS
A. Discussion and possible direction regarding regulation of electric bikes and other electric mobility devices
Public comment received from Rivko Reviro, Christine Italiano-Thomas, Kim Akeman, and Karl Lindstrom.

Action: Council provide general direction to staff and recommended that the proposed ordinance be presented to the Traffic Safety Committee for review and recommendation to the City Council.

CEQA: Proposed Ordinance not subject to CEQA based on Guideline Sections: 15060(c)(3) and 15378; 15060(c)(2); 15061(b)(3); and 150308
B. Discussion regarding Chautauqua Hall ownership, uses and responsibilities No public comment received.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted to

1. Direct staff to investigate and document ownership, rights, allowable activities, and responsibilities for the use of Chautauqua Hall.

2. Direct staff to return to a future City Council Meeting with updates to City Council Policy 100-1 Chautauqua Hall Building, and any necessary recorded document amendments proposed to manage the future use of Chautauqua Hall.

Motion carried 6-0-1, by the following roll call vote:

Ayes: Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick.

Noes: None.

Absent: Mayor Smith.

DRAFT
5 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
Action: Upon motion by Councilmember Rau and seconded by Councilmember McDonnell, Council voted to continue past 10:00 p.m. to complete the remaining item.

Motion carried 5-1-1, by the following roll call vote:

Ayes: Mayor Pro Tem Amelio, Councilmembers McDonnell, Poduri, Rau, and Walkingstick.

Noes: Councilmember Garfield.

Absent: Mayor Smith.

C. Recreation Board Committee Recommendation, Metrics Request No public comment received.

Action: Council received the recommendation report prepared by the Recreation Board and provide direction to staff to return to Council if the anticipated costs exceeding the $2000-3000 estimate.

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

14. FULL PRESENTATIONS

15. CLOSED SESSION

ADJOURNMENT
Council adjourned the regular meeting at 10:30 p.m.

Respectfully Submitted,
Sandra Kandell
City Clerk
Approved by Mayor: _____________________________________________Date________________ Attest by City Manager: ___________________________________________Date________________ DRAFT
Agenda No. 6 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Leticia Livian, Human Resources Director
MEETING DATE: February 18, 2026
SUBJECT: Allowance of an Administrative Leave Bank for Experienced New Hires CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve a Resolution Approving the Allowance of an Administrative Leave Bank for Experienced New Hires.

DISCUSSION
The 2025/2026 Community Goals and Workplan includes Goal 2.2 "Invest in Technology and Workforce Systems," and a supporting task to develop a plan to develop and retain key staff members.

In addition to retaining existing employees, the City faces an increasing need to attract experienced professionals who offer advanced training, proven expertise, and immediate operational value—reducing training demands, strengthening institutional capacity, and supporting the City’s long-term workforce stability.

Recruiting and hiring experienced personnel for key positions is increasingly challenging. The City’s local labor pool is limited, and we compete directly with surrounding cities for qualified candidates.

During recruitment, experienced candidates frequently request limited leave credit at the time of hire, most often to honor pre-commitments or to provide a basic safety net for illness during their initial months of employment. The City currently lacks the flexibility to accommodate these reasonable requests, as such provisions are not addressed in the applicable Memoranda of Understanding (MOUs).

As a result, otherwise highly qualified candidates may decline employment or accept offers from neighboring jurisdictions. Surrounding agencies, including the City of Monterey, have the ability to offer leave banks to experienced new hires, placing the City of Pacific Grove at a competitive disadvantage in attracting top-tier talent in an already limited labor market.

Proposed Experienced New Hire Administrative Leave Bank Staff recommends that the City Council approve a Resolution providing discretionary authority for the City Manager to establish an “Experienced New Hire Administrative Leave Bank” of up to 80 hours.

This limited, non-cash leave bank would provide experienced new hires with flexibility to address family obligations, planned commitments, or unexpected illness during their initial period of employment, while they are accruing leave under existing policies.

The proposed leave bank would:

Have no cash value and would not be paid out upon separation Be used for sick leave or planned commitments
Apply only to Managers and Lateral Police Officers
This targeted approach ensures fiscal responsibility while directly addressing a key barrier to recruiting experienced professionals.

Experienced managers bring specialized knowledge, training, and proven leadership that significantly reduces onboarding time and minimizes the need for additional development. Their expertise allows them to contribute immediately and to mentor and train existing staff, strengthening organizational capacity and introducing best practices that support long-term workforce development.

Similarly, lateral police officers typically arrive with completed training, certifications, and a demonstrated record of successful service at other law enforcement agencies. Hiring lateral officers results in substantial cost savings by reducing academy and field training expenses and allows the Police Department to deploy productive officers far more quickly. While it generally takes approximately ten months for an entry-level officer to function independently, a lateral entry officer may be capable of solo-beat assignment in as little as four weeks.

Approval of the Experienced New Hire Administrative Leave Bank would enhance the City’s competitiveness in attracting highly qualified candidates, reduce vacancy durations, and provide a strong return on investment by accelerating productivity and lowering training costs—all while maintaining appropriate controls and limited applicability.

Proposed Program Criteria
Employees eligible to receive an Experienced New Hire Administrative Leave Bank must meet established criteria.

Managers
The candidate must possess significant, directly relevant professional experience in their local government specialty, typically demonstrated by:

A minimum of four (4) years of progressively responsible experience in a comparable management or supervisory role; or
Specialized expertise or certifications that substantially reduce the need for onboarding, training, or development.

Lateral Police Officers
Experienced New Hire Administrative Leave may be granted to Lateral Police Officers in the POA bargaining unit at the discretion of the City Manager or designee, in consultation with the Chief of Police, and subject to the following criteria:

Eligibility for appointment without the need for a full entry-level academy.

Currently employed or formerly employed within the last three years as a law enforcement officer in a California law enforcement agency and possess a valid California P.O.S.T. Basic Certificate (or higher).

Currently employed or formerly employed within the last three years as a law enforcement officer in a law enforcement agency outside of California and passed the California P.O.S.T. Basic Course Waiver examination.

Formerly employed as a law enforcement officer over three years ago in a California law enforcement agency and have completed the California P.O.S.T. Re-qualification process.

OPTIONS

1. Provide alternative direction
Not approve. This is not recommended, as it would not improve City competitiveness in the local labor market.

2. FINANCIAL IMPACT:

Any administrative leave granted under this program is accounted for within the employee’s existing salary allocation and does not create an additional fiscal impact to the City.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Resolution
1 RESOLUTION NO. 26-XXX

APPROVAL OF AN EXPERIENCED NEW HIRE ADMINISTRATIVE LEAVE BANK

FINDINGS

1. In establishing the 2025/2026 Community Goals and Workplan, City Council included Goal 2.2 Invest in technology and workforce systems, and a supporting task of develop a plan to retain key staff members; and

2. The City of Pacific Grove is in need to attract experienced professionals who offer advanced training, proven expertise, and immediate operational value—reducing training demands, strengthening institutional capacity, and supporting the City’s long-term workforce stability; and

3. Recruiting and hiring experienced personnel for key positions is increasingly challenging.

The City’s local labor pool is limited, and we compete directly with surrounding cities for qualified candidates; and

4. Currently, new hires (no- directors) are not provided with any leave time upon hire; and

5. Surrounding agencies have the ability to offer leave banks to experienced new hires, placing the City of Pacific Grove at a competitive disadvantage in attracting top-tier talent in an already limited labor market; and

6. Experienced candidates frequently request limited leave credit at the time of hire, most often to honor planned commitments or to provide a basic safety net for illness during their initial months of employment. The City currently lacks the flexibility to accommodate these reasonable requests, as such provisions are not addressed in the applicable Memoranda of Understanding (MOUs); and

7. Approving a resolution providing discretionary authority for the City Manager to establish an “Experienced New Hire Administrative Leave Bank” of up to 80 hours would provide flexibility for leave credit requests from experience new hires; and

8. The Administrative leave bank would have no cash value, would not be paid upon separation, would be used for sick leave or pre-planned commitments and apply to managers and lateral police officers; and

9. The Action proposed by this Resolution does not constitute a “Project” as that term is defined under California Environmental Quality Act (CEQA), CEQA Guideline section 15378.
2 NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE:

1. Employees that may be provide an Experienced New Hire Administrative Leave Bank, must meet certain criteria:

Managers
The candidate must possess significant, directly relevant professional experience in their local government specialty, typically demonstrated by:
• A minimum of four (4) years of progressively responsible experience in a comparable management or supervisory role; or
• Specialized expertise or certifications that substantially reduce the need for onboarding, training, or development.

Lateral Police Officers
Experienced New Hire Administrative Leave may be granted to Lateral Police Officers in the POA bargaining unit at the discretion of the City Manager or designee, in consultation with the Chief of Police, and subject to the following criteria:
• Eligibility for appointment without the need for a full entry-level academy. • Currently employed or formerly employed within the last three years as a law enforcement officer in a California law enforcement agency and possess a valid California P.O.S.T. Basic Certificate (or higher).
• Currently employed or formerly employed within the last three years as a law enforcement officer in a law enforcement agency outside of California and passed the California P.O.S.T. Basic Course Waiver examination. • Formerly employed as a law enforcement officer over three years ago in a California law enforcement agency and have completed the California P.O.S.T.

Requalification process.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 18th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
____________________________________
NICK SMITH, Mayor
ATTEST:
3 _______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
ALEX LORCA, City Attorney
Agenda No. 8 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joe Amelio, Mayor Pro Tem
MEETING DATE: February 18, 2026
SUBJECT: Monterey Salinas Transit Board of Directors Meeting Minutes: January 12, 2026 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the minutes.

Attachments
MST Minutes 1-12-26
Agenda # 3-3
February 9, 2026 Meeting

MEETING OF THE MST BOARD OF DIRECTORS
Meeting Minutes
January 12, 2026
10:00 a.m. (Pacific)

JURISDICTION BOARDMEMBER
(Alternate)
JAN 2026FEB 2026MAR 2026APR 2026MAY 2026JUN 2026JUL 2026AUG 2026SEP 2026OCT 2026NOV 2026 DEC 2026 Carmel-by-theSeaBob Delves
(J. Baron)
P
Del Rey Oaks Kim Shirley
(J. Hallock)
P
Gonzales Lorraine Worthey
Vice Chair
(M. Orozco)
A
Greenfield Ariana Rodriguez
(R. White)
P
King City Mike LeBarre
(C. DeLeon)
P
Marina Liesbeth Visscher
(B. Delgado)
P
Monterey Ed Smith
(J. Rasch)
P
Pacific Grove Joe Amelio
(C. Poduri)
P
Sand City Mary Ann Carbone
Chair
A
Salinas Tony Barrera
(G. De La Rosa)
P
Seaside Dave Pacheco
(A. Garcia-Arrazola)
P
Soledad Fernando Cabrera
(E. Banuelos)
P
County of
Monterey
Luis Alejo P
P=Present
A=Absent
R=Remote
P(A)= Present Alternate
Counsel: Michael D. Laredo General Counsel, De Lay & Laredo Staff: Carl Sedoryk General Manager/CEO
Lisa Rheinheimer Deputy CEO
Kelly Halcon Chief Human Resources Officer
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
Augustina Ursina Payroll Specialist
Beronica Carriedo C/S and Community Relations Supervisor Christine Church Compliance Officer
Cristy Sugabo Mobility Manager
Danitza Lopez Human Resources Assistant
David Bielsker Transit Scheduler
Diana Lopez Customer Service Representative
Emma Patel Planning Manager
Ezequiel Rebollar Systems Engineer
Fred Simkins Coach Operator
Jack Perrin Assistant Planner
Jacob Newman Operations Specialist
Jarrod Augusta Risk and Safety Manager
Jose Sanchez-Barajas Communications Systems Supervisor
Kevin Allshouse Contract Transportation Manager
Luiza Hatlestad Mobility Specialist
Maria Mendez Coach Operator
Marzette Henderson Transportation Manager
Natalie Flores Associate Planner
Paul Lopez Facilities Manager
Rolando Munoz Mobilities Specialist
Ruben Gomez Mobility Coordinator
Scott Taylor Information Technology Manager
Sonjé Dayries Civil Rights Officer
Steven Bruno Purchasing Agent
Steve Ramirez Coach Operator
Susie Flores Grants Analyst
Ursulla Scardina Communications Specialist
Vince Dance Project Management Coordinator
Public: Ariadne Sambrano TAMC
Michael Zeller TAMC
Liz Gonzalez County of Monterey
Jasmine Mejia-Cortes County of Monterey
Emily Paz Member of the Public
Christopher Wilmot Member of the Public
Lorna Moffet Member of the Public
Nancy Amadeo Member of the Public
Milena Zilo Zilo International Group

1. CALL TO ORDER
1-1. Roll Call.
1-2. Pledge of Allegiance
Director Pacheco called the meeting to order at 10:02 a.m. Roll call was taken and a quorum established. Director Cabrera led the pledge of allegiance.

Director Rodriguez arrived at 10:03 a.m.
1-3. Highlights of the agenda. (Carl Sedoryk)
General Manager/CEO, Carl Sedoryk reviewed highlights of the Agenda.

Director Alejo arrived at 10:06 a.m.

2. PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA
Emily Paz commented on her frustration with the RIDES program. Staff will follow-up with her about her concerns.

Christopoher Wilmot commented on route schedules in the RIDES program.

Lorna Moffett commented on her frustration with the Carmel Valley Road bus route. Staff will look into her concerns.

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. Approve Resolution 2026-11 Recognizing Fred Simkins, Coach Operator as Employee of the Year for 2025. (Carl Sedoryk)
3-2. Approve Resolution 2026-12 Recognizing Maria Mendez, Coach Operator, (Norman Tuitavuki)
3-3. Approve Minutes of the MST Board Meeting on December 8, 2025. (Jeanette Alegar-Rocha)
3-4. Receive Draft Minutes of the MST Board Operations Performance Committee Meeting on December 8, 2025. (Jeanette Alegar-Rocha) 3-5. Receive Draft Minutes of the MST Corporation Meeting on December 8, 2025. (Jeanette Alegar-Rocha)
3-6. Receive Draft Minutes of the Mobility Advisory Committee Meeting on November 19, 2025. (Ruben Gomez)
3-7. Authorize the General Manager/CEO or their Designee to Purchase up to 90 Sportworks Apex+3 Bike Racks and Mounting Deployment Kits in an Amount Not to Exceed $211,152. (Norman K. Tuitavuki)
3-8. Authorize the General Manager/CEO or their Designee to Approve and Execute Payment for the Final per-Bus Price Increase of $27,156 Each for 12 GILLIG Battery Electric Buses Previously Approved by the Board, for a Total Price Increase Not to Exceed $325,872. (Norman Tuitavuki) End of Consent Agenda
There were no public comments on the Consent Agenda.

Director Barrera pulled item 3-7 for a brief report.

On a motion by Director Smith and seconded by Director Cabrera, the Board approved items 3-1 through 3-6 and item 3-8 with Directors Carbone and Worthy noted as absent.

Norman Tuitavuki provided a verbal report on item 3-7.

On a motion by Director Barerra and seconded by Director Shirley, the Board approved item 3-7 with Directors Carbone and Worthy noted as absent.

4. RECOGNITIONS AND SPECIAL PRESENTATIONS
4-1. 2025 Employee of the Year Presentation – Fred Simkins, Coach Operator. (Carl Sedoryk)
4-2. January 2026 Employee of the Month – Maria Mendez, Coach Operator(Norman Tuitavuiki)
4-3. 2025 GM Manager Excellence Award – Ikuyo Yoneda-Lopez, Marketing and Communications Manager. (Carl Sedoryk)

5. PUBLIC HEARINGS
None.

6. ACTION ITEMS
6-1. Receive Updates from the Executive Team on Projects, Plans, and Programs in the Year Ahead and Emerging Issues. (Carl Sedoryk) a. Finance, Capital, and Marketing. (Lisa Rheinheimer)
b. Transportation, Maintenance, Facilities, Mobility Services, and Contracted Services. (Norman K. Tuitavuki)
c. Human Resources Department. (Kelly Halcon)
d. Information Technology. (Michael Kohlman)
e. Planning and Grants. (Michelle Overmeyer)
There were no public comments.

Director Rodriguez left the meeting at 11:30 a.m.
6-2. Receive Presentation on 2025 Rider Survey Results. (Ikuyo YonedaLopez) Director Delves left the meeting at 11:53 a.m.

Milena Zilo from Zilo International Group gave a presentation with results from the 2025 Rider Survey.

Christopher Wilmot gave public comment and requested more frequency on bus routes.

Nancy Amadeo gave public comment that more outreach is needed at senior centers.
6-3. Provide Direction on GILLIG Request for Tariff Related $416,390 Cost Increase for 13 Battery Electric Buses. (Norman K. Tuitavuki) There were no public comments.

Director Alejo left the meeting at 12:00 p.m.

On a motion by Director LeBarre and seconded by Director Amelio, the Board continued discussion of action item 6-3 to the next Board meeting with Directors Alejo, Delves, Carbone, Rodriguez, and Worthy noted as absent.

7. REPORTS & INFORMATION ITEMS
The Board will receive and file these reports, which do not require action by the Board. 7-1. General Manager/CEO Monthly Report – November 2025 7-2. Federal Legislative Advocacy Report
7-3. State Legislative Advocacy Report
7-4. Staff Trip Reports
7-5. Correspondence

8. 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.

9. ATTACHMENTS
None.

10. CLOSED SESSION
None.

11. ADJOURN
With no further business to discuss, Director Pacheco adjourned the meeting at 12:10 p.m. (Pacific).

Prepared by: ___________________Reviewed by: __________________ Jeanette Alegar-Rocha Carl G. Sedoryk
Deputy Secretary/Clerk to the Board General Manager/CEO 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: February 18, 2026
SUBJECT: FY26 Q2 Quarterly Investment 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 Quarterly Investment 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 Investment 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 December 31st, 2025 and shows that cash and investments were held citywide, with a market value of $42,699,475. There was a $4,897,868 increase in the cost basis of the City's investments from the prior quarter, and a $4,994,884 increase in the fair market value of the City's investments from the prior quarter. 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 City's applicable policies. All bank balances are insured. The City does not actively trade either certificates of deposit or federal agency securities, but holds investments in the portfolio until maturity. The table below shows the activity for the quarter:

Date Description Security Type Rate Dollar Amt./Face
Value Activity
12/03/25 Amerant Bank Natl
Assn Certificate of Deposit 0.45% $249,000 Matured
11/20/25 BMW Bank Certificate of Deposit 0.50% $249,000 Matured 11/28/25 Bridgewater Bank Certificate of Deposit 0.45% $249,000 Matured 12/15/25 JPMorgan Chase Bank Certificate of Deposit 0.50% $249,000 Matured 11/25/25 Texas Exchange Bank Certificate of Deposit 0.60% $249,000 Matured 12/15/25 Bank Hapoalim Certificate of Deposit 0.50% $205,000 Matured The average yield on the City's portfolio for the quarter is 3.80%. This represents a yield rate that is 0.12% more than the prior quarter and 0.68% more than the same quarter of the prior year.

Below is a link to the Investment Report for Quarter 2 of FY25-26, located on the City's website.

FY26 Q2 Investment Report

OPTIONS
N/A - This is informational only.

FINANCIAL IMPACT:

There is no fiscal impact. This is informational only.

FOCUSED PRIORITY AREA: Not Applicable.

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: David Stiles, Senior Accountant
MEETING DATE: February 18, 2026
SUBJECT: Check Register, Purchase Order report, and Interim Financial Report - January 2026 / Q2
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive the Check Register, Purchase Order report, 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. A detailed listing of the checks issued for the month is also available. Below is a link to the check register report for January 2026, located on the City's website.

Check Register Report - JAN 2026
The Purchase Order Report includes information on outstanding purchase orders that were issued. This report is intended to be consistent with the reporting requirement in Section 2.16.160 of the City’s Purchasing Systems and Procedures. Purchase orders are required for purchases of supplies, services, materials, equipment, and contractual services over $5,000. Below is a link to the purchase order report for Quarter 2 of FY25-26, located on the City's website.

FY26 Q2 Purchase Order Report
The Administrative Services Department produces Quarterly Interim Financial reports, to assist in evaluating the City's fiscal condition. The report provides details on General Fund revenues, as well as a summary related to its other funds. Below is a link to the Interim Financial Report for Quarter 2 of FY25-26, located on the City's website.

FY26 Q2 Interim Financial Report
Please note that this report is preliminary for Quarter 2 of Fiscal Year 2056-26 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 financial impact. This is informational only.

FOCUSED PRIORITY AREA: Not Applicable.

Agenda No. 9 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: February 18, 2026
SUBJECT: Pump Station 15.5 Replacement
CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION
Award an agreement with Monterey Peninsula Engineering in an amount not to exceed $197,500 plus a 15% contingency for the Pump Station 15.5 Rehabilitation Project

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

DISCUSSION
As part of the FY23/24 Capital Improvement Plan (CIP), the City Council approved funding for Pump Station 15.5 removal and replacement (CIP 23-06) with an initial budget of $360,000 funded from the City’s Sewer Fund, Fund 76. Initial funding of $110,000 was allocated for design, engineering and permitting, with an additional $250,000 for construction. To date we have spent $87,490 of the $110,000.

Per the City's 2021 Pump Station Condition Assessment, lift station 15.5 is in the worst condition of the City's seven (7) lift stations. It has disproportionately large operational and maintenance issues as compared to the other six lift stations. The conditions assessment revealed both pump motors had very low megohm readings, which indicates the need for replacement.

Utilizing the funding for engineering, the City completed the construction drawings and issued a Request for Proposals in December of 2025. The bidding period closed on January 22, 2026, and 3 bids were received:

Contractor Bid Amount
Monterey Peninsula Engineering $197,500.00
Koch & Koch Inc. $268,000.00
Anderson Pacific Engineering, Inc $365,117.00
This project would allow for a full replacement of lift station 15.5, located at Crespi Pond, which serves the public restroom.

Monterey Peninsula Engineering has qualified as the lowest responsible bidder.

SCOPE OF WORK
The scope of work includes:
· Remove and replace existing vault
· Replacement of all new pumps and wet well infrastructure · Replace all associated discharge and influent piping
· Replace all electrical wiring and alarm systems

AGREEMENT
If approved, the City’s standard construction agreement template will be used, which has been approved by the California Joint Powers Authority (CJPIA) and the City Attorney’s Office.

CONSTRUCTION TIMING & UPDATES
The City received a CDP exemption for the project in September of 2024, with Coastal Commission Staff supporting the exemption determination.

If the contract is awarded, the agreement will be executed, and construction will begin promptly.

OPTIONS

1. Authorize the agreement

2. Do not approve the agreement.

FINANCIAL IMPACT:

The 15.5 Pump Station Replacement project (CIP23-06) was approved in the FY23/24 CIP with a budget derived from the Sewer Fund (Fund 76) of $360,000. To date, $87,490 has been expended.

There is ample funding remaining within the project budget to complete the removal and installation of Pump Station 15.5.

FOCUSED PRIORITY AREA: Infrastructure
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: Katie Clark, Recreation Manager
MEETING DATE: February 18, 2026
SUBJECT: PGUSD & City of Pacific Grove MOU for Expanded Learning Opportunities Program Summer Camp
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve the City of Pacific Grove to enter a Memorandum of Understanding with Pacific Grove Unified School District allowing Pacific Grove Recreation to operate the Expanded Learning Opportunities Program (ELOP) Summer Camp.

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

DISCUSSION
The City of Pacific Grove partnered with the Pacific Grove Unified School District (PGUSD) to offer a free summer camp opportunity in 2023, 2024, and 2025 through the District’s Expanded Learning Opportunities Program (ELOP) Grant. The Expanded Learning Opportunities Program Grant, awarded by the state of California, provides schools with funding to operate programs outside the instructional school day. PGUSD has approached the City of Pacific Grove to work together for summer 2026 to provide the same free summer camp to serve the PGUSD's unduplicated pupil population. PGUSD will provide facilities, funding, and guidance on ELOP guidelines to support the ELOP Summer Camp Program. The City of Pacific Grove Recreation Department will provide the programming, staff training and oversight for this program. This camp will be located at Robert H. Down Elementary School and will run for seven weeks from June 8–July 24, 2026. Camp program hours will be Monday-Friday from 8:00 am-5:00 pm. Each week the program will serve up to 68 students. The final number of students will be dependent on the total number of staff hired for this program. PGUSD is assisting the City of Pacific Grove with recruitment efforts.

A Memorandum of Understanding between Pacific Grove Unified School District and the City of Pacific Grove has been drafted. See attachment 1. The attached MOU was received and approved by the PGUSD School Board on their consent agenda at their meeting on February 5, 2026.

OPTIONS

1. Take no action

2. Provide alternate direction
FINANCIAL IMPACT:

The proposed Memorandum of Understanding between PGUSD and the City of Pacific Grove presented in this report outlines the terms of the fiscal arrangement and other types of support to be provided by each entity. A short summary of the fees section has been included here for consideration.

The proposed MOU will be effective June 1, 2026-August 30, 2027. PGUSD will pay for all students recruited by the district for the Expanded Learning Opportunities (ELOP) Summer Camp at a rate of $266.40 per child, per week, for up to 68 students a week, for the duration of the 7-week program. Final payment will depend on actual registration numbers, up to 68 students per week, but not to exceed $126,806.40 and will be paid directly to the City of Pacific Grove. The $266.40 per child, per week of camp reflects the City of Pacific Grove fee to cover all staffing costs associated with the program. PGUSD will also be billed for any additional materials and supplies required for the ELOP Summer Camp Program, not to exceed the amount of $6,000.00.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
PGUSD & City of Pacific Grove MOU Expanded Learning Opportunities Program Summer Camp

MEMORANDUM OF UNDERSTANDING

BETWEEN PACIFIC GROVE UNIFIED SCHOOL DISTRICT AND

THE CITY OF PACIFIC GROVE
This Memorandum of Understanding (“Agreement”) is entered into between the Pacific Grove Unified School District (“District”) and The City of Pacific Grove (“City”) for the establishment of an Expanded Learning Opportunities Summer Camp Program located at the Pacific Grove Youth Center, 302 16th Street Pacific Grove, CA 93950 (the “Youth Center”), Robert Down Elementary School, 485 Pine Ave., Pacific Grove, CA 93950 (the “RHD”), and the Pacific Grove Community Center, 515 Junipero Ave, Pacific Grove, CA 93950 (the “Community Center”). Together, the sites listed in will be known as (the ”Facilities”). Together, the District and the City are referred to herein as the “Parties.” WHEREAS, the Community Recreation Act (California Education Code sections 10900 through 10914.5) authorizes school districts and cities to organize, promote, and conduct community recreation programs and activities to promote the health and general welfare of the community; and
WHEREAS, the California Civic Center Law (California Education Code sections 38130-38138) establishes a civic center at every school for use by citizens for a variety of purposes, including recreation; and
WHEREAS, the District is the owner of real property, including facilities and Active Use Areas that are capable of being used for community recreational purposes; and WHEREAS, the City is the owner of real property, including facilities and Active Use Areas that are capable of being used for community recreational purposes; and WHEREAS, under appropriate circumstances, these publicly held lands and facilities should be used most efficiently to maximize use and increase recreational opportunities for the community; and
WHEREAS, California Education Code section 10905 authorizes the governing bodies of any two or more public authorities may cooperate with each other to enter into agreements to promote the health and general welfare of the community and to enhance the recreational opportunities afforded to the community.

A. Term: The Term of this MOU shall be for the period June 1, 2026 through August 30, 2027.

B. Fees: The District shall pay for all District students recruited by the District for the Expanded Learning Opportunities (ELOP) Summer Camp Program. All fees associated with the District's ELOP City program will be paid at the rate of $266.40/child per week for up to 68 students for the 7 week program.

Any additional materials and supplies required to support the District’s Expanded Learning Opportunities Summer Camp Program will be billed to the District by its pro rata share of use.

Supplies for the 2026 Summer program are estimated to be $6,000.00 The District payment per student per week shall constitute reimbursement to the City for the additional cost in overhead associated with the increased capacity of the City’s Summer Camp Program to accommodate the District’s Expanded Learning Opportunities Summer Camp Program. The District has agreed to recruit additional Pacific Grove High School Students as chaperones, lifeguards, counselors etc. for the City’s Summer Camp Program, and the District will work directly with the students to fill out the online application required by the City.

The District will set up payment directly to the City, not to exceed $132,806.40 ($126,806.40 for tuition and $6,000.00 for supplies) for the District’s Expanded Learning Opportunities 2026 Summer Camp Program.

C. Use: The District shall have joint use of all Facilities associated with the City’s Summer Camp Program for the District’s expansion of the program known as Expanded Learning Opportunities Summer Camp Program.

The City shall have joint use of all Facilities associated with the District’s Expanded Learning Opportunities Summer Camp Program.

The Facilities will be used to conduct both the City’s Summer Camp Program and the District’s expansion of the program known as Expanded Learning Opportunities Summer Camp Program.

The District will offer their program slots to the unduplicated pupil population in grades TK-6. The District will give the exact number of students enrolled in the program following the District’s lottery to be held prior to May 1, 2026.

D. Termination: This Agreement will be in effect for the fiscal year 2025-26 and 2026-27, expiring as specified above. Both Parties have a right to terminate the Agreement within (30) days written notice to either party without cause or for any reason.

E. Utilities Services: Gas, electricity and water usage will not be assessed by either party associated with this Agreement.

F. Waste: All waste associated with the City’s Summer Camp Program and the District’s expansion of the program known as Expanded Learning Opportunities Summer Camp Program will be isolated to each of the defined Facilities. The District will provide custodial support staff to dispose of all waste at its real property location (RHD), and the City will provide custodial support staff to dispose of all waste at its real property location(s).

G. Nuisance: The District agrees that, in connection with its use of the Facilities, The District will not commit any public or private nuisance or any other act or thing which might or would reasonably be construed to disturb the quiet enjoyment of nearby property.

The City agrees that, in connection with its use of the Facilities, The City will not commit any public or private nuisance or any other act or thing which might or would reasonably be construed to disturb the quiet enjoyment of nearby property.

H. Fingerprinting/Background Checks: All District staff in direct contact with children will be required to be fingerprinted by the District via livescan at their sole expense. All City staff in direct contact with children will be required to be fingerprinted via livescan by the City at their sole expense.

I. Repairs: Outside of the normal Maintenance Obligations provided by the District, the District agrees to maintain all real property owned Facilities in good condition. All repairs and upgrades to the Facilities are at the expense of the District, unless otherwise agreed upon by both Parties.

Outside of the normal Maintenance Obligations provided by the City, the City agrees to maintain all real property owned Facilities in good condition. All repairs and upgrades to the Facilities are at the expense of the City, unless otherwise agreed upon by both Parties.

J. Insurance: The District and the City shall both carry and maintain, during the entire term hereof, at its own cost and expense, the following types of insurance:

1. Comprehensive General Liability Insurance covering bodily injury and property damage in an amount no less than $2,000,000 per occurrence, $2,000,000 aggregate.

2. Comprehensive general liability insurance policy shall be endorsed with the language that “District, its officers and employees”, is named as additional insured for all liability arising out of the operations in the performance of this MOU agreement.

3. Comprehensive general liability insurance policy shall be endorsed with the language that “the City, its officers and employees”, is named as additional insured for all liability arising out of the operations in the performance of this MOU agreement.

4. The additional insured endorsement must be noted on a separate form which accompanies the Certificate of Insurance (COI).

K. Hold Harmless: The City shall defend, indemnify, and hold harmless the District and its agents, representatives, officers, the District’s, employees, Board of Trustees, members of the Board of Trustees (collectively, the “District Parties”), from and against any and all claims, demands, liabilities, damages, losses, suits and actions, and expenses (including, but not limited to attorney fees and costs including fees of the District) of any kind, nature and description (collectively, the “Claims”) directly or indirectly arising out of, connected with, or resulting from any act, error, omission, negligence, or willful misconduct of the City, its agents, subcontractors, employees, material or equipment suppliers, invitees, or licensees (collectively, the “the City Parties”) in the performance of or failure to perform the City’s or the City Parties’ obligations under this Agreement, including, but not limited to the City’s or the City Parties’ use of District sites, performance of the Services, breach of any of the representations or warranties contained in this Agreement, or for injury to or death of persons or damage to property or delay or damage to the District or the District Parties. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity, which would otherwise exist as to a party, person, or entity described in this paragraph. The indemnification provided for in this Section includes, without limitation to the foregoing, claims that may be made against District by any taxing authority asserting that an employer-employee relationship exists by reason of this Agreement, and any claims made against District alleging civil rights violations by the City or the City Parties under the California Fair Employment and Housing Act (“FEHA”).

The District shall defend, indemnify, and hold harmless the City and its agents, representatives, officers, the City’s, employees, Mayor, City Council, members of the City Council (collectively, the “City Parties”), from and against any and all claims, demands, liabilities, damages, losses, suits and actions, and expenses (including, but not limited to attorney fees and costs including fees of the City) of any kind, nature and description (collectively, the “Claims”) directly or indirectly arising out of, connected with, or resulting from any act, error, omission, negligence, or willful misconduct of the District, its agents, subcontractors, employees, material or equipment suppliers, invitees, or licensees (collectively, the “the District Parties”) in the performance of or failure to perform the District’s or the District Parties’ obligations under this Agreement, including, but not limited to the District’s or the District Parties’ use of City sites, performance of the Services, breach of any of the representations or warranties contained in this Agreement, or for injury to or death of persons or damage to property or delay or damage to the City or the City Parties. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity, which would otherwise exist as to a party, person, or entity described in this paragraph. The indemnification provided for in this Section includes, without limitation to the foregoing, claims that may be made against City by any taxing authority asserting that an employer-employee relationship exists by reason of this Agreement, and any claims made against City alleging civil rights violations by the District or the District Parties under the California Fair Employment and Housing Act (“FEHA”).

L. Parking: the City shall have access to the parking lots located at the real property Facilities owned by the District during the time the City is using the Facilities.

PACIFIC GROVE UNIFIED SCHOOL DISTRICT
By: Date:

Title:

CITY OF PACIFIC GROVE
By:_ Date:

Title:

Agenda No. 9 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Jon Biggs, Community Development Director
MEETING DATE: February 18, 2026
SUBJECT: Letter Supporting the Monterey Peninsula Water Management District's Request for Modifications to State Water Resources Cease-and-Desist Order WR 2016-0016
CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Authorize City Manager to Submit Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016.

DISCUSSION
The City Manager has received a request from the Monterey Peninsula Water Management District for a letter to the State Water Board supporting modifications to Cease-and-Desist Order WR 2016-0016.

The Pure Water Monterey project, which came online in 2021, coupled with the Monterey Peninsula’s longstanding commitment to water-wise conservation strategies for both commercial and residential water consumption, has resulted in California American Water (Cal-Am) not exceeding the legal amount of water available from the Carmel River for the past four years.

With the Pure Water Monterey Expansion project now online, there is no threat of Cal-Am exceeding the legal water right limits on the Carmel River in the foreseeable future. This was confirmed by the California Public Utilities Commission (CPUC) in a decision adopted on August 14th, 2025. The current moratorium on new connections was put in place by the CPUC in response to the 2009 Order WR 2009-0060 by the State Water Board. This restriction on setting any new water meters in the service area could be lifted if the State Water Board were able to rescind Condition 2 of Order WR 2009-0060.

The following programs of the recently approved Update to the Pacific Grove Housing Element support submitting a letter to the State Water Board:

Program 11. Water Supply
The City continues to implement water conservation measures in an effort to make water allocations available for housing through potable water usage reduction measures at City sites such as the golf course and cemetery, and the implementation of MPWMD programs. The City will continue to actively participate in regional efforts to make water available. Projects that include affordable housing will be given priority to available water allocations. Water and wastewater agencies serving Pacific Grove will be provided a copy of the Housing Element pursuant to California Government Code §65589.7.

In an effort to fulfill this program, the Update to the Housing Element notes the City will:

Continue to work with regional partners to find a long-term solution to the water situation.

Participate in Regional Water Project through monthly meetings.

Biannually seek partners to lobby for use of water allocations to support affordable housing, Continue to seek creative solutions to support needed housing development within the confines of the water moratorium.

Establish at least two actions by the end of 2027 and continue to seek creative solutions to supplement water supply at least every other year, as needed.

Continue to apply water conservation measures in rehab projects and water re-use projects.

The City’s Regional Housing Needs Allocation (RHNA) and the programs that implement the Update to the Housing Element have been established in order to create more affordable housing options for local workforce employees. Therefore, it is appropriate for the City Council to authorize the City Manager to submit a letter supporting the Monterey Peninsula’s efforts to modify Cease-and-Desist Order WR 2016-0016.

OPTIONS

1. Decline Authorization to Submit Letter.

2. Provide Alternate Direction.

FINANCIAL IMPACT:

No significant impact is anticipated by the authorization and submittal of the subject letter.

FOCUSED PRIORITY AREA: Community Development
Attachments
Draft Letter Supporting Removal of Cease and Desist Order DRAFT
February XX, 2026
Dr. Juliet Christian-Smith, Deputy Director Water Rights State Water Resources Control Board
1001 I Street,
Sacramento CA 95814
RE: Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016 Dear Dr. Christian-Smith:

On behalf of the City of Pacific Grove, we respectfully request the State Water Board to modify the Cease and-Desist Order (CDO) to allow the Monterey Peninsula to experience an increase in much-needed housing and economic development.

The Pure Water Monterey project, which came online in 2021, coupled with the Monterey Peninsula’s longstanding commitment to water-wise conservation strategies for both commercial and residential water consumption, has resulted in California American Water (Cal-Am) not exceeding the legal amount of water available from the Carmel River for the past four years. With the Pure Water Monterey Expansion project now online, there is no threat of Cal-Am exceeding the legal water right limits on the Carmel River in the foreseeable future. This was confirmed by the California Public Utilities Commission (CPUC) in a decision adopted on August 14th, 2025.

The current moratorium on new connections was put in place by the CPUC in response to the 2009 Order WR 2009-0060 by the State Board. This restriction on setting any new water meters in the service area could be lifted if the State Board were able to rescind Condition 2 of the CDO.

Our community and vested stakeholders are eager to implement the programs of the recently approved Update to the Pacific Grove Housing Element in order to have more affordable housing options for local workforce employees. Working to align business and housing element interests for the benefit of our members is a win for all communities on the Monterey Peninsula.

The City of Pacific Grove encourages you and the State Water Board members to modify the Cease-and Desist Order to allow local jurisdictions the autonomy to develop projects that benefit our residents and businesses.

Sincerely,
Agenda No. 10 1

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: February 18, 2026
SUBJECT: Architectural Review Board Meeting Minutes: December 09, 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the minutes.

Attachments
ARB Minutes 12.09.2025

ARCHITECTURAL REVIEW BOARD

REGULAR MEETING AGENDA

MEETING MINUTES
Tuesday, December 9, 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: Member Boyle, Member Sublett
ABSENT: Vice Chair Byrne, Secretary Huff

2. APPROVAL OF THE AGENDA
ACTION: Upon a motion by Member Boyle and seconded by Member Sublett, the Board voted to approve the agenda.

Motion carried 3-0-2, by the following roll call vote:

AYES: Chair Brooks, Member Boyle, Member Sublett
NOES: None
ABSENT: Vice Chair Byrne, Secretary Huff

3. BOARD AND STAFF ANNOUNCEMENTS (City-Related Items Only) None

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 the November 12, 2025, Architectural Review Board Special Meeting Reference: Anna Bornstein, Associate Planner
Recommended Action: Approve the minutes of the November 12, 2025, Special 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 Member Sublett and seconded by Member Boyle, the Board voted to approve the consent agenda.

Motion carried 3-0-2, by the following roll call vote:

AYES: Chair Brooks, Member Boyle, Member Sublett
NOES: None
ABSENT: Vice Chair Byrne, Secretary Huff

REGULAR AGENDA

8. PUBLIC HEARINGS
A. Architectural Permit (AP) / Tree Permit with Development (TPD) 25-0222 for 221 Walcott Way (APN 006-348-001-000)
Zoning District/General Plan Designation: R-1/ Medium Density Residential (12.1 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 / Tree Permit with Development 25-0222 subject to the recommended findings, conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities).

Reference: Anna Bornstein, Associate Planner
Anna Bornstein, Associate Planner, provided the staff presentation.

Hunter Porter Eldridge, AIA provided the applicant presentation.

Written public comments were received by Robin Aeschliman Maria Mishkind provided public comments in chamber.

ACTION: Upon a motion by Member Boyle and seconded by Member Sublett, the Board voted to approve Architectural Permit / Tree Permit with Development 25-0222 subject to the recommended findings, conditions of approval, and Class 1 Categorical Exemption (CEQA Guidelines Section 15301, Existing Facilities).

Motion carried 3-0-2, by the following roll call vote:

AYES: Chair Brooks, Member Boyle, Member Sublett
NOES: None
ABSENT: Vice Chair Byrne, Secretary Huff

9. CONTINUED AND ONGOING BUSINESS
None

10. NEW BUSINESS
None

11. PRESENTATIONS
None

12. NEXT MEETING - January 13, 2026

13. ADJOURNMENT - 3:19pm
Agenda No. 10 2

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: February 18, 2026
SUBJECT: Recreation Board Minutes October 23, 2025
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the minutes.

Attachments
Recreation Board Minutes October 23, 2025

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: Alex Lorca, City Attorney
MEETING DATE: February 18, 2026
SUBJECT: Discussion and possible adoption of Resolution Calling And Giving Notice Of A Special Municipal Election To Be Held On June 2, 2026 For A Measure With A Proposed Ordinance Increasing The Monthly Compensation And Permitting City Councilmembers And Mayor To Waive Any Or All Of Their Monthly Compensation; Requesting Consolidation with the County Of Monterey With The Statewide Direct Primary Election To Be Held On June 2, 2026; Directing The City Attorney To Prepare An Impartial Analysis Concerning Such Measure; Authorizing The Drafting Of Primary Arguments And Rebuttal Arguments Concerning Such Measure And Requesting The County Of Monterey To Conduct The Election
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Discussion of the Resolution of the City Council Of The City Of Pacific Grove Calling And Giving Notice Of A Special Municipal Election To Be Held On June 2, 2026 For The Submission To The Voters Of The City Of Pacific Grove A Measure With A Proposed Ordinance Increasing The Monthly Compensation Of City Of Pacific Grove Councilmembers And The Pacific Grove Mayor And Permitting City Councilmembers And Mayor To Waive Any Or All Of Their Monthly Compensation; Requesting the County Of Monterey To Consolidate The Special Election With The Statewide Primary Election To Be Held On June 2, 2026; Directing The City Attorney To Prepare An Impartial Analysis Regarding Such Measure; Authorizing The Drafting Of Primary Arguments And Rebuttal Arguments Regrading Such Measure And Requesting The County Of Monterey To Conduct The Election (“Resolution”) attached to this Agenda Report. If the Council decides to adopt this Resolution, then the following action is recommended.

1. 2. Motion to adopt the Resolution.

DISCUSSION
The current compensation for City Councilmembers and the Mayor was set by Ordinance No. 98-24 The current compensation for City Councilmembers and the Mayor was set by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 27 years ago as of December 1, 2025, which increased the compensation of City Councilmembers from $300 a month to $420 a month and increased the compensation of the Mayor from $500 a month to $700 a month.

City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the Mayor and Councilmembers to decline all of their compensation, but not decline the compensation in part or accept in part.

On May 21, 2025, the City Council adopted Ordinance No. 25-007 to repeal Ordinance No. 1872 N. S. and to increase the monthly compensation of City Council Members to $966 and increase the monthly compensation of the Mayor to $1610.

On August 20, 2025, following receipt by the City of a Referendum against Ordinance No. 25-007, the City Council approved a Motion to direct staff to return to the Council on September 3, 2025 with an ordinance repealing Ordinance No. 25-007 and to return to the Council at a future meeting for discussion of a possible ballot measure to be presented in 2026 for a public vote on an ordinance increasing the salary of the Mayor and City Councilmembers.

On September 3, 2025, the City Council introduced Ordinance No. 25-016 repealing Ordinance 25-007.

On September 17, 2025, the City Council adopted Ordinance No. 25-016 repealing Ordinance No. 25-007.

Based on Council direction on August 20, 2025, this Resolution is being presented to the City Council for discussion and possible adoption. There are multiple actions proposed in the Resolution including:

Calling And Giving Notice Of A Special Municipal Election To Be Held On June 2, 2026 For The Submission To The Voters Of The City Of Pacific Grove A Measure With A Proposed Ordinance Increasing The Monthly Compensation Of City Of Pacific Grove Councilmembers And The Pacific Grove Mayor And Permitting City Councilmembers And Mayor To Waive Any Or All Of Their Monthly Compensation;

1. Requesting County Of Monterey To Consolidate The Special Election With The Statewide Primary Election To Be Held On June 2, 2026;

2. 3. Directing The City Attorney To Prepare An Impartial Analysis Concerning Such Measure; Authorizing The Drafting Of Primary Arguments And Rebuttal Arguments Concerning Such Measure

4. 5. Requesting The County Of Monterey To Conduct The Election If the City Council decides to adopt this Resolution, then action would be a motion to adopt the Resolution and a motion directing that the Resolution be submitted to the County of Monterey.

The Ordinance attached to the Resolution proposes increasing the compensation of the City Councilmembers from $420 a month to $987 a month and the Mayor from $700 a month to $1,645 a month taking effect on the date a Councilmember begins a new term of office in December 2026.

The Ordinance proposes that the Ordinance may be amended by an ordinance adopted by the City Council provided that such ordinance is not adopted before January 1, 2031 (slightly more than four years after December 2026) unless the City Charter, as it may be amended from time to time, provides otherwise.

The proposed compensation amount for the City Councilmembers of $987 is based on Government Code Section 36516 (a)(4)(A), using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025. 5% of $420 is $21 multiplied by 27 years is a $567 increase. $420 plus $567 equals $987.

Government Code Section 36516.1 provides that an elected official may be provided with compensation in addition to that which the Mayor receives as a council member. When the question of the amount of the additional compensation for an elected Mayor is submitted to the electors, the additional compensation amount shall be the amount specified in the proposition at the municipal election.

If the 5% formula of Government Code Section 36516 (a)(4)(A) is applied for the Mayor’s compensation, then there would be a compensation increase for the Mayor from the current $700 a month to $1,645 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025. 5% of $700 is $35 multiplied by 27 years is a $945 increase. $700 plus $945 equals $1,645.

The Ordinance attached to the Resolution would also repeal City Ordinance No. 1872 and the Ordinance also provides that the Mayor and/or individual Councilmembers may waive any or all of the compensation permitted by the Ordinance.

OPTIONS

1. Take alternative action related to this subject.

2. Take no action.

FINANCIAL IMPACT:

If the Resolution is approved by the voters at the election on June 2, 2026, then the following increased annual costs will be incurred by the City which has been confirmed by the City Administrative Services Department:

Compensation. City Councilmembers compensation will increase by $567 a month which is an increase of $6,804 a year for each Councilmember multiplied by six Councilmembers equals an annual increase of $40,824. The Mayor’s compensation will increase by $945 a month which is an annual increase of $11,340. The total annual increase will be $40,824 plus $11,340 which equals of $52,164.

1. Compensation Related Increases. With the compensation increases, there will be the following annual compensation related increases: Medicare ($756), PERS ($3,919); PARS ($2,041) and Workers Compensation ($432) which combined equals $7,148.

2. Total Annual Increase for Compensation and Compensation Related Increases for Mayor and City Councilmembers. The annual increase for compensation and compensation related increases for Mayor and City Councilmembers if the Resolution is approved by the voters will be $52,164 in compensation plus $7,148 for compensation related increases for a total of $59,312.

3. FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Resolution
RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC

GROVE CALLING AND GIVING NOTICE OF A SPECIAL MUNICIPAL
ELECTION TO BE HELD ON JUNE 2, 2026 FOR THE SUBMISSION TO

THE VOTERS OF THE CITY OF PACIFIC GROVE A MEASURE WITH

A PROPOSED ORDINANCE INCREASING THE MONTHLY

COMPENSATION OF CITY OF PACIFIC GROVE COUNCILMEMBERS

AND THE PACIFIC GROVE MAYOR AND PERMITTING CITY

COUNCILMEMBERS AND MAYOR TO WAIVE ANY OR ALL OF THEIR
MONTHLY COMPENSATION; REQUESTING THE COUNTY OF

MONTEREY TO CONDUCT THE ELECTION AND CONSOLIDATE THE

SPECIAL ELECTION WITH THE STATEWIDE DIRECT PRIMARY
ELECTION TO BE HELD ON JUNE 2, 2026; DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS CONCERNING
SUCH MEASURE; AUTHORIZING THE DRAFTING OF PRIMARY

ARGUMENTS AND REBUTTAL ARGUMENTS CONCERNING SUCH

MEASURE AND REQUESTING THE COUNTY OF MONTEREY TO

CONDUCT THE ELECTION

RECITALS
WHEREAS, Article  11 of the  Charter  of the  City  of  Pacific  Grove  provides that the Mayor may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by State Law for General Law cities of comparable size to Pacific Grove, and
WHEREAS,  Article  12  of  the  Charter  of  the  City  of  Pacific  Grove  provides Councilmembers may  receive compensation as provided by ordinance, but in no case  shall the compensation exceed that amount which is permitted by the State Law for General Law cities of comparable size to Pacific Grove; and
WHEREAS, by Ordinance No. 1682 N. S. passed and adopted by council on July 19, 1989, compensation for Pacific Grove Councilmembers was set at $300.00 a month and compensation for the Pacific Grove Mayor was set at $500.00 a month; and WHEREAS, the current compensation for the Mayor and City Councilmembers was set by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 27 years ago as of December 1, 2025, which increased the compensation of the Mayor from $500 a month to $700 a month and increased the compensation of City Councilmembers from $300 a month to $420 a month; and
WHEREAS, on June 29, 2023, Senate Bill No. 329 was adopted by the California State Legislature  amending  Government  Code  Section  36516  and  was  approved  by  the  Governor pertaining to the compensation of City Councilmembers and became effective on January 1, 2024; and
4911-6384-7567, v. 3
2 WHEREAS, the findings in SB 329 included the following:

SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule  for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)  Allowing  cities to  adjust their  compensation  for inflation  since  1984 may  help  city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families; and WHEREAS, Government Code Section 36516 (a) provides that a city council may enact an  ordinance  providing that that  each member  of the  city  council  shall  receive  a  salary in the following amount:

1. For cities with a population of 35,000 or less, the compensation permitted increased by SB 329 from $300 dollars to $950 dollars, or.

2. In the alternative, the compensation of City Councilmember could be increased by the greater amount of:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the compensation in effect when the ordinance or amendment is enacted.
(B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year; and.

WHEREAS,  Government  Code  Section  36516  (b)  provides  that  “Notwithstanding subdivision  (a),  at  any municipal  election, the  question  of whether  city  council members  shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.” and WHEREAS, Government Code Section 36516.1 provides that an elected mayor may be provided with compensation in addition to that which he or she receives as a council member; and WHEREAS,  pursuant to  Government Code  Section  36516.1, the  amount  of  additional compensation for an elected mayor may be provided by an ordinance adopted by the city council or by a majority of the electors voting on the proposition at a municipal election; and WHEREAS,  the  California  Consumer  Price  Index  increased  from  December  1998  to December 2025 by over 100% percent; and
4911-6384-7567, v. 3
3 WHEREAS, City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the mayor and council members to decline all of their compensation, but not to decline the compensation in part or accept in part; and
WHEREAS, on May 21, 2025, the City Council adopted Ordinance No. 25-007 to repeal Ordinance No. 1872 N. S. and to increase the monthly compensation of City Council Members to $966 and increase the monthly compensation of the Mayor to $1610; and WHEREAS, on August 20, 2025, following receipt by the City of a Referendum against Ordinance No. 25-007, the City Council approved a Motion to direct staff to return to the Council on  September  3,  2025 with  an  ordinance  repealing Ordinance No.  25-007  and to  return to the Council at a future meeting for discussion of a possible ballot measure to be presented in 2026 for a public vote on an ordinance increasing the salary of the Mayor and City Councilmembers; and WHEREAS, on September 3, 2025, the City Council introduced Ordinance No. 25-016 repealing Ordinance 25-007; and
WHEREAS,  on  September  17,  2025, the City Council  adopted  Ordinance  No.  25-016 repealing Ordinance No. 25-007; and
WHEREAS,  Government  Code  Section  36516.5  provides  for  that  an  increase  in compensation  shall  be  effective  whenever  one  or  more  members  of  the  city  council  becomes eligible for a salary increase by virtue a council member beginning a new term of office, which would be in December 2026; and
WHEREAS,  applying  the  5%  per  year  formula  of  Government  Code  Section  36516 (a)(4)(A), there would be a compensation increase for City Councilmembers from the current $420 a month to $987 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $420 is $21 multiplied by 27 years is a $567 increase. $420 plus $567 equals $987; and WHEREAS,  applying the  formula  of  Government Code  Section  36516(a)(4)(A), there would be a compensation increase for the Mayor from the current $700 a month to $1645 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $700 is $35 multiplied by 27 years is a $945 increase. $700 plus $945 equals $1645; and
WHEREAS, pursuant to Government Code Section 36516 (b) , when the question of the amount of the compensation of the Councilmembers is submitted to the electors, the compensation amount shall be the amount specified in the election call; and WHEREAS, pursuant to Government Code Government Code Section 36516.1, when the question of the amount of the additional compensation for an elected Mayor is submitted to the electors, the additional compensation amount shall be the amount specified in the election call; and WHEREAS,  The  City  Council  exercises  its  independent  judgment  and  finds  that  this Resolution and the proposed Ordinance are not subject to the California Environmental Quality Act (“CEQA”), because the enactment of this Resolution and the proposed Ordinance:  (1) do not 4911-6384-7567, v. 3
4 constitute a “project” as defined by CEQA pursuant to Sections 15060(c)(3) and 15378; (2) will not  result  in  a  direct  or  reasonably  foreseeable  indirect  physical  change  in  the  environment pursuant to Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment pursuant to 15061(b)(3); and
WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city or district may  by  resolution  request the Board  of Supervisors  of the county to  permit the county elections official to render specified services to the city or district relating to the conduct of an election.  The city or district shall reimburse the county in full for the services performed upon presentation of a bill to the city or district; and
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district, city or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order consolidation.  The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and
WHEREAS, the City Council desires to submit a Measure with a proposed Ordinance as referenced above to the voters of the City at a Special Municipal Election to be held on June 2, 2026, which is on the same date as the Statewide Primary Election to be held on June 2, 2026; and WHEREAS, it is desirable that the City’s Special Municipal Election to be held on June 2, 2026, be consolidated with the Statewide Primary Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and  that  the  County  of  Monterey  Election  Department  canvass  the  returns  of  such  Special Municipal Election and that the election be held in all respects as if there were only one election.

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

Section 1. Calling of Special Municipal Election.  Pursuant to the laws of the State of California and the Pacific Grove City Charter, including,  but  not limited to, Elections Code Section  9222  and  10201,  there  is  called  and  ordered  to  be  held  in  the  City  of  Pacific  Grove, California, on June 2, 2026, a Special Municipal Election (“Special Municipal Election”) for the 4911-6384-7567, v. 3
5 purpose of submitting a ballot measure that, if approved, would enact an ordinance increasing the monthly  compensation  of  the  City  of  Pacific  Grove  Mayor  and  City  Councilmembers  and permitting the Mayor and Councilmembers to waive any or all of such compensation. As required by Elections Code Section 13247, the abbreviated form of the Measure to appear on the ballot is specified below in Section 2.

Section 2. Question.    The  City  Council  hereby  orders  the  following  question  be submitted to the voters at the Special Municipal Election:

Measure " " An Ordinance Increasing the Compensation of the City of Pacific Grove City Councilmembers and Mayor
Shall the Measure, increasing the compensation of the City of Pacific Grove City Councilmembers  from $420 a month to $987 and  the City of Pacific Grove Mayor from $700 a month to $1645 and with such new compensation taking effect on the date a Councilmember begins a new term of office in December 2026, be adopted? YES
NO
Section 3. Proposed Measure. The proposed complete text of the Measure with the proposed ordinance to be submitted to the voters is attached to this Resolution as Exhibit A and incorporated by reference. The full text of the Measure shall be printed in the Sample Ballot and Voters Pamphlet and shall be made available to the public and to any voter at the County Elections Department and the Pacific Grove City Clerk.

Section 4. Publication of Measure. The City Clerk is directed to publish a synopsis of the Measure in a newspaper of general circulation in the City of Pacific Grove, in accordance with California Elections Code section 12111 at least one time not later than one week before the election.

Section 5. Form of Ballot. The ballots to be used at the election shall be in form and content as required by law.

Section 6. Coordination.  The  City  Clerk  is  authorized,  instructed,  and  directed  to coordinate  with the Monterey County  Elections  Department to  procure  and  furnish  all  official ballots,  notices,  printed  matter,  and  all  supplies,  equipment,  and  paraphernalia  that  may  be necessary in order to properly and lawfully conduct the election.

Section 7. Approval.  The vote requirement for this Measure to pass shall be a majority of those casting ballots on the Measure (50% plus 1).
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6 Section 8. Request for Consolidation.
(a) Pursuant to the requirements of Elections Code Section 10403, the Board of Supervisors  of  the  County  of  Monterey  is  hereby  requested  to  consent  and  agree  to  the consolidation of the Special Municipal Election with the Statewide Primary Election on Tuesday, June 2, 2026, for the purpose of submitting to the voters the abovementioned Measure. (b) The Monterey County Elections Department is authorized to canvass the returns of the Special Municipal Election. The election shall be held in all respects as if there were only  one  election,  and  only  one  form  of  ballot  shall  be  used.  The  election  will  be  held  and conducted in accordance with the provisions of law regulating the statewide elections, including, but not limited to, Elections Code Section 10418.
(c) The Board of Supervisors of the County of Monterey is requested to issue instructions to the Monterey County Elections Department to take any and all steps necessary for conducting and holding the consolidated election.
(d) The City of Pacific Grove recognizes that additional costs will be incurred by the County of Monterey by reason of this consolidation and agrees to reimburse the County of Monterey for any costs.

Section 9. Filing with County. The City Clerk shall file a certified copy of this Resolution with the Monterey County Board of Supervisors and Monterey County Elections Department.

Section 10. Impartial Analysis and Arguments.
(a) City Attorney Impartial Analysis.  Pursuant  to  Elections  Code  Section 9280, the City Attorney shall prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure on existing law and the operation of the Measure. The analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council.  In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type,  the  following:  “The  above  statement  is  an  impartial  analysis  of  Ordinance  or  Measure _________. If you desire a copy of the ordinance or measure, please call the election official’s office at (insert phone number) and a copy will be mailed at no cost to you.” The impartial analysis shall be filed by 12:00 p.m. on March 12, 2026.
(b) Primary Arguments.
(1) Pursuant  to  Elections  Code  Section  9282,  the  City  Council authorizes the Mayor to author and submit the primary argument in favor and pursuant to Elections Code  Section  9285(a)  not  to  exceed  300  words,  accompanied  by  the  printed  name(s)  and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 8 of the Elections Code, and authorizes the Mayor to submit a rebuttal argument to the argument against the Measure pursuant to Section 10(c).
4911-6384-7567, v. 3
7 (2) A primary argument in favor or against the Measure shall not exceed 300  words in length  and  shall  be  accompanied  by the  printed  name(s)  and  signature(s)  of the author(s) submitting it, or, if on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, in accordance with Article 4, Chapter 3, Division 8 of the Elections Code. Primary arguments shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument (see Form F-13).

Submittals of primary arguments are to be delivered to the City Clerk no later than 12:00 p.m. on March 12, 2026, and may be changed or withdrawn up and until such date and time. (3) In the  event that more than  one  argument in  favor  or  against the foregoing Measure is timely submitted, then consistent with Elections Code Section 9282, the City Clerk  shall  select the argument to  be included with the  ballot materials,  giving  preference and priority first, to arguments submitted by member(s) of the City Council, and second, to individual voters,  or  bona  fide associations  of citizens,  or a combination thereof, in the  order  set  forth in Elections Code Section 9287.
(c) Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, rebuttal arguments shall be permitted. When the City Clerk has selected the primary arguments for and against the Measure (not exceeding 300 words each), which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument in favor of the Measure to the authors of any argument against the Measure and a copy of an argument against the Measure to the authors of any argument in favor of the Measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. The rebuttal arguments shall be filed with the City Clerk,  signed,  with  the  printed  name(s)  and  signature(s)  of  the  author(s)  submitting  it,  or  if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, by 12:00 p.m. on March 19, 2026. The rebuttal arguments shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument (see Form F-13). Rebuttal arguments shall be printed in the same manner as the direct arguments.

Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. (d) Printing. The City Clerk shall cause the City Attorney’s impartial analysis, and duly selected arguments, to be printed and distributed to voters in accordance with State law regarding the same.

Section 11. Polls; Hours of Operation. The vote center locations and hours of operations, ballot drop box locations and hours of operations, vote-by-mail procedures and timing, the election officers, and all other persons and procedures for the Special Municipal Election shall be the same as those utilized by the County of Monterey and in compliance with the Elections Code of the State of California. In addition, the polls for the election shall be open at seven o’clock a.m. on the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls (vote centers) shall be closed, pursuant to Election Code Section 10242, except as provided in Elections Code Sections 14212 and 14401. 4911-6384-7567, v. 3
8 Section 12. Notice of Election. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

Section 13. Conduct of Election as Provided by Law. In all particulars not recited in this Resolution, the Special Municipal Election shall be held and conducted as provided by law  for holding municipal elections.

Section 14. Implementation. The City Clerk and City Manager are authorized to take all actions  as  necessary  to  effectuate  the  purposes  of  this  Resolution  and  the  election.  The  City Manager is authorized to execute all documents and to perform all other necessary City acts to enter  into  a  service  agreement  for  the  provision  of  election  services  with  Monterey  County Elections  Department.    The  City  Clerk  and  City  Attorney  are  authorized  to  make  any typographical,  clerical,  and  non-substantive  corrections  to  this  Resolution  as  may  be  deemed necessary by the Monterey County Elections Department.

Section 15. Declaration.  The City Council shall meet to declare the results of the election called for by this Resolution at their regular meeting following certification of election results.

Section 16. Effective Date. This Resolution shall take immediate effect upon its adoption by the City Council and the City Clerk shall certify the vote adopting the resolution.

Section 17. Environmental Compliance.  The City Council  finds the  adoption  of this Resolution and the Proposed Ordinance are not subject to the California Environmental Quality Act ("CEQA") , because the enactment of this Resolution and the Proposed Ordinance:  (1) do not constitute a “project” as defined by CEQA pursuant to Sections 15060(c)(3) and 15378; (2) will not  result  in  a  direct  or  reasonably  foreseeable  indirect  physical  change  in  the  environment pursuant to Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment pursuant to 15061(b)(3).

Section 18. All Necessary Services.  The City Council of the City of Pacific Grove hereby orders that  pursuant to Elections Code Section  10002  said  governing  body  hereby  requests the Board  of  Supervisors  of  the  County  of  Monterey  to  permit  the  Monterey  County  Elections Department to provide any and all services necessary for conducting an election and agrees to pay for said services in full.

Section 19. Printing of Measure. The City Council of the City of Pacific Grove hereby requests  that  the  Monterey  County  Elections  Department  print  the  attached  full  Measure  text Exhibit A exactly as filed or indicated on the filed document in the voter information guide for the June 2, 2026 statewide election.

PASSED AND ADOPTED by the Council of the City of Pacific Grove on this 18th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:
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9 APPROVED
NICK SMITH, Mayor
ATTEST:

DATED:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

ALEX LORCA, City Attorney
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10 EXHIBIT A
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY OF PACIFIC GROVE, CALIFORNIA, INCREASING

THE MONTHLY COMPENSATION OF CITY OF PACIFIC GROVE

COUNCILMEMBERS AND MAYOR AND PERMITTING CITY COUNCILMEMBERS

AND MAYOR TO WAIVE ANY OR ALL OF THEIR MONTHLY COMPENSATION

FINDINGS
The People of the City of Pacific Grove hereby find:

1. Article 11 of the Charter of the City of Pacific Grove provides that the Mayor may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is  permitted  by  State Law  for General Law  cities  of  comparable  size to  Pacific Grove, and

2. Article 12 of the Charter of the City of Pacific Grove provides Councilmembers may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by the State Law  for General Law cities of comparable size to Pacific Grove;

3. By Ordinance No.  1682 N. S.  passed and adopted  by council  on  July  19,  1989, compensation for Pacific Grove Councilmembers was set at $300.00 a month and compensation for the Pacific Grove Mayor was set at $500.00 a month.

4. The current  compensation  for  the Mayor  and  City  Councilmembers  was  set  by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 27 years ago as of December 1, 2025, which increased the compensation of the Mayor from $500 a month to $700 a month and increased the compensation of City Councilmembers from $300 a month to $420 a month.

5. On  June  29,  2023,  Senate  Bill  No.  329  was  adopted  by  the  California  State Legislature  amending  Government  Code  Section  36516  and  was  approved  by  the  Governor pertaining to the compensation of City Councilmembers and became effective on January 1, 2024.

6. The findings in SB 329 included the following:

SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule  for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)  Allowing  cities to  adjust their  compensation  for inflation  since  1984 may  help  city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families. 4911-6384-7567, v. 3
11 7. Government  Code  Section  36516  (a)  provides  that  a  city  council  may  enact  an ordinance providing that that each member of the city council shall receive a salary in the following amount:
(1) For cities with a population of 35,000 or less, the compensation permitted increased by SB 329 from $300 dollars to $950 dollars, or.
(2) In the alternative, the compensation of City Councilmember could be increased by the greater amount of:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the compensation in effect when the ordinance or amendment is enacted.
(B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.

8. Government Code Section 36516 (b) provides that “Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.”

9. Government Code Section 36516.1 provides that an elected mayor may be provided with compensation in addition to that which he or she receives as a council member.

10. Pursuant  to  Government  Code  Section  36516.1,  the  amount  of  additional compensation for an elected mayor, may be provided by an ordinance adopted by the city council or by a majority of the electors voting on the proposition at a municipal election.

11. The California Consumer Price Index increased from December 1998 to December 2025 by over 100% percent.

12. City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the  mayor  and  council  members  to  decline  all  of  their  compensation  but  may  not  decline  the compensation in part or accept in part.

13. On  May  21,  2025,  the  City  Council  adopted  Ordinance  No.  25-007  to  repeal Ordinance No. 1872 N. S. and to increase the monthly compensation of City Council Members to $966 and increase the monthly compensation of the Mayor to $1610.

14. On  August  20,  2025,  following  receipt  by  the  City  of  a  Referendum  against Ordinance No. 25-007, the City Council approved a Motion to direct staff to return to the Council on  September  3,  2025 with  an  ordinance  repealing Ordinance No.  25-007  and to  return to the Council at a future meeting for discussion of a possible ballot measure to be presented in 2026 for a public vote on an ordinance increasing the salary of the Mayor and City Councilmembers. 4911-6384-7567, v. 3
12 15. On  September  3,  2025,  the  City  Council  introduced  Ordinance  No.  25-016 repealing Ordinance 25-007.

16. On September 17, 2025, the City Council adopted Ordinance No. 25-016 repealing Ordinance No. 25-007.

17. Government Code Section 36516.5 provides for general law cities that an increase in compensation shall be effective whenever one or more members of the city council becomes eligible for a salary increase by virtue a council member beginning a new term of office which would be in December 2026.

18. Applying the 5% per year formula of Government Code Section 36516 (a)(4)(A), there would be a compensation increase for City Councilmembers from the current $420 a month to $987 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $420 is $21 multiplied by 27 years is a $567 increase. $420 plus $567 equals $987.

19. Applying the formula of Government Code Section 36516 (a)(4)(A), there would be a compensation increase for the Mayor from the current $700 a month to $1645 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $700 is $35 multiplied by 27 years is a $945 increase. $700 plus $945 equals $1645.

20. Pursuant to Government Code Section 36516 (b) when the question of the amount of the compensation of the Councilmembers is submitted to the electors, the salary amount shall be the amount specified in the election call.

21. Pursuant  to  Government  Code  Government  Code  Section  36516.1,  when  the question of the amount of the additional compensation for an elected Mayor is submitted to the electors, the additional compensation amount shall be the amount specified in the election call.

22. The City Council exercises its independent judgment and finds that this Resolution and  the  Proposed  Ordinance  are  not  subject  to  the  California  Environmental  Quality  Act ("CEQA"), because the enactment of this Resolution and the Proposed Ordinance:  (1) does not constitute a “project” as defined by CEQA pursuant to Sections 15060(c)(3) and 15378; (2) will not  result  in  a  direct  or  reasonably  foreseeable  indirect  physical  change  in  the  environment pursuant to Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment pursuant to 15061(b)(3).

NOW, THEREFORE, THE PEOPLE OF THE CITY OF PACIFIC GROVE DO ORDAIN AS FOLLOWS:

SECTION 1. Findings. The foregoing Findings are hereby incorporated by reference in full.

SECTION 2. Repeal of Ordinance No. 1872 N. S. Ordinance No. 1872 N. S. is hereby repealed in its entirety.
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13 SECTION 3. Compensation of Councilmembers and Mayor. Commencing on the date a City Councilmember begins a new term of office in December 2026, the compensation for City Councilmembers and the Mayor shall be as follows:

A. City Councilmembers    $ 987 per month
B. Mayor                                                          $1645  per  month SECTION 4. Waiver of Compensation.  The Mayor and/or individual Councilmembers may waive any or all of the compensation permitted by this Ordinance.

SECTION 5. Severability and Interpretation. This Ordinance shall be broadly construed in order to achieve its purpose. This Ordinance shall be interpreted so as to be consistent with all applicable Federal and State laws,  rules, and  regulations.  If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, part, or portion of this Ordinance is held to be invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The voters hereby declare that this Ordinance, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, part, or portion thereof would have been adopted or passed even if one or more sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, parts, or portions were declared invalid or unconstitutional.  If any  provision  of this Ordinance is  held invalid as applied to any  person  or circumstance, such invalidity shall not affect any application of this Ordinance that can be given effect without the invalid application.

SECTION 6.   Publication.   The City Clerk shall publish and/or post this Ordinance in the manner required by law.

SECTION 7.  Effective Date. Pursuant to Elections Code Section 9217, this Ordinance shall be considered adopted on the date that the City Council declares that the voters of the City of Pacific Grove have approved the Ordinance by a vote of no less than a majority of the votes cast by the electors voting on this Ordinance at the Special Municipal Election held on Tuesday, June 2, 2026, and shall go into effect ten (10) days thereafter.

SECTION 8.  Amendment or Repeal. Except as otherwise provided in this Ordinance, this Ordinance may be amended or repealed only by the voters of the City of Pacific Grove.

SECTION 9.   Amendment by City Council.  Pursuant to Elections Code Section 9217, this Ordinance may be amended by an ordinance adopted by the City Council provided that such ordinance is not adopted before January 1, 2031 unless the City Charter, as it may be amended from time to time, provides otherwise.
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14 PASSED AND ADOPTED BY THE PEOPLE OF THE CITY OF PACIFIC GROVE this2nd day of June 2026
APPROVED:
_______________________________
Nick Smith, Mayor
Agenda No. 11 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Phillip Anderson Housing Program Manager
MEETING DATE: February 18, 2026
SUBJECT: Budget Amendment Request for the CalHome Reuse (Fund 36) Budget for Fiscal Year 2025-26 Budget
CEQA: Categorical Exemption, CEQA Guidelines Section 15061(b)(3)

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 that amends the FY25/26 budget for the CalHome Reuse (Fund 36) Budget for the Fiscal Year 2025-26 Budget

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

4. DISCUSSION
The City has an adopted CalHome Reuse loan program, Fund 36, that provides loans to qualified owner/homeowner(s) to rehabilitate and make their single-family dwellings safe. The City has received and processed an application for a loan from this program to rehabilitate an existing owner-occupied single-family dwelling in need of repairs that will make it safe and habitable. The owner of this property has been found to meet all qualifying criteria for this program. This rehabilitation project has been found to meet and comply with all the requirements of the CalHome Rehabilitation Loan Program. There are sufficient funds in the CalHome Reuse fund to support a transfer of $199,000 from the reserves of this fund to the expenditure column. In June of 2025, the City Council approved the Fiscal Year 2025-26 Budget and an amendment to the CalHome Reuse budget is necessary because funds sufficient to cover the issuance of the loan were not allocated. Pursuant to the Pacific Grove City Charter Article 15, an amendment to the budget must be approved by ordinance. Staff is recommending an amendment to the Fiscal Year 2025-26 Budget to reflect an opportunity to rehabilitate and preserve housing for the fiscal year budget.

OPTIONS

1. Decline approval of the ordinance reflecting the requested budget amendment

2. Provide an alternative direction
FINANCIAL IMPACT:

The following reflects the requested amendment to the CalHome Reuse Budget: Fund 36 The following reflects the requested amendment to the CalHome Reuse Budget: Fund 36 Beginning Expenditure Fund Balance $24,000.00
Available Reserves $273,086.00
Reserve Transfer $199,000.00
Ending Reserve Balance $74,086.00
Ending Expenditure Fund Balance $223,000.00
FOCUSED PRIORITY AREA: Community Development
Attachments
Proposed Resolution
RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC

GROVE CALLING AND GIVING NOTICE OF A SPECIAL MUNICIPAL
ELECTION TO BE HELD ON JUNE 2, 2026 FOR THE SUBMISSION TO

THE VOTERS OF THE CITY OF PACIFIC GROVE A MEASURE WITH

A PROPOSED ORDINANCE INCREASING THE MONTHLY

COMPENSATION OF CITY OF PACIFIC GROVE COUNCILMEMBERS

AND THE PACIFIC GROVE MAYOR AND PERMITTING CITY

COUNCILMEMBERS AND MAYOR TO WAIVE ANY OR ALL OF THEIR
MONTHLY COMPENSATION; REQUESTING THE COUNTY OF

MONTEREY TO CONDUCT THE ELECTION AND CONSOLIDATE THE

SPECIAL ELECTION WITH THE STATEWIDE DIRECT PRIMARY
ELECTION TO BE HELD ON JUNE 2, 2026; DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS CONCERNING
SUCH MEASURE; AUTHORIZING THE DRAFTING OF PRIMARY

ARGUMENTS AND REBUTTAL ARGUMENTS CONCERNING SUCH

MEASURE AND REQUESTING THE COUNTY OF MONTEREY TO

CONDUCT THE ELECTION

RECITALS
WHEREAS, Article  11 of the  Charter  of the  City  of  Pacific  Grove  provides that the Mayor may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by State Law for General Law cities of comparable size to Pacific Grove, and
WHEREAS,  Article  12  of  the  Charter  of  the  City  of  Pacific  Grove  provides Councilmembers may  receive compensation as provided by ordinance, but in no case  shall the compensation exceed that amount which is permitted by the State Law for General Law cities of comparable size to Pacific Grove; and
WHEREAS, by Ordinance No. 1682 N. S. passed and adopted by council on July 19, 1989, compensation for Pacific Grove Councilmembers was set at $300.00 a month and compensation for the Pacific Grove Mayor was set at $500.00 a month; and WHEREAS, the current compensation for the Mayor and City Councilmembers was set by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 27 years ago as of December 1, 2025, which increased the compensation of the Mayor from $500 a month to $700 a month and increased the compensation of City Councilmembers from $300 a month to $420 a month; and
WHEREAS, on June 29, 2023, Senate Bill No. 329 was adopted by the California State Legislature  amending  Government  Code  Section  36516  and  was  approved  by  the  Governor pertaining to the compensation of City Councilmembers and became effective on January 1, 2024; and
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2 WHEREAS, the findings in SB 329 included the following:

SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule  for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)  Allowing  cities to  adjust their  compensation  for inflation  since  1984 may  help  city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families; and WHEREAS, Government Code Section 36516 (a) provides that a city council may enact an  ordinance  providing that that  each member  of the  city  council  shall  receive  a  salary in the following amount:

1. For cities with a population of 35,000 or less, the compensation permitted increased by SB 329 from $300 dollars to $950 dollars, or.

2. In the alternative, the compensation of City Councilmember could be increased by the greater amount of:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the compensation in effect when the ordinance or amendment is enacted.
(B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year; and.

WHEREAS,  Government  Code  Section  36516  (b)  provides  that  “Notwithstanding subdivision  (a),  at  any municipal  election, the  question  of whether  city  council members  shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.” and WHEREAS, Government Code Section 36516.1 provides that an elected mayor may be provided with compensation in addition to that which he or she receives as a council member; and WHEREAS,  pursuant to  Government Code  Section  36516.1, the  amount  of  additional compensation for an elected mayor may be provided by an ordinance adopted by the city council or by a majority of the electors voting on the proposition at a municipal election; and WHEREAS,  the  California  Consumer  Price  Index  increased  from  December  1998  to December 2025 by over 100% percent; and
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3 WHEREAS, City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the mayor and council members to decline all of their compensation, but not to decline the compensation in part or accept in part; and
WHEREAS, on May 21, 2025, the City Council adopted Ordinance No. 25-007 to repeal Ordinance No. 1872 N. S. and to increase the monthly compensation of City Council Members to $966 and increase the monthly compensation of the Mayor to $1610; and WHEREAS, on August 20, 2025, following receipt by the City of a Referendum against Ordinance No. 25-007, the City Council approved a Motion to direct staff to return to the Council on  September  3,  2025 with  an  ordinance  repealing Ordinance No.  25-007  and to  return to the Council at a future meeting for discussion of a possible ballot measure to be presented in 2026 for a public vote on an ordinance increasing the salary of the Mayor and City Councilmembers; and WHEREAS, on September 3, 2025, the City Council introduced Ordinance No. 25-016 repealing Ordinance 25-007; and
WHEREAS,  on  September  17,  2025, the City Council  adopted  Ordinance  No.  25-016 repealing Ordinance No. 25-007; and
WHEREAS,  Government  Code  Section  36516.5  provides  for  that  an  increase  in compensation  shall  be  effective  whenever  one  or  more  members  of  the  city  council  becomes eligible for a salary increase by virtue a council member beginning a new term of office, which would be in December 2026; and
WHEREAS,  applying  the  5%  per  year  formula  of  Government  Code  Section  36516 (a)(4)(A), there would be a compensation increase for City Councilmembers from the current $420 a month to $987 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $420 is $21 multiplied by 27 years is a $567 increase. $420 plus $567 equals $987; and WHEREAS,  applying the  formula  of  Government Code  Section  36516(a)(4)(A), there would be a compensation increase for the Mayor from the current $700 a month to $1645 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $700 is $35 multiplied by 27 years is a $945 increase. $700 plus $945 equals $1645; and
WHEREAS, pursuant to Government Code Section 36516 (b) , when the question of the amount of the compensation of the Councilmembers is submitted to the electors, the compensation amount shall be the amount specified in the election call; and WHEREAS, pursuant to Government Code Government Code Section 36516.1, when the question of the amount of the additional compensation for an elected Mayor is submitted to the electors, the additional compensation amount shall be the amount specified in the election call; and WHEREAS,  The  City  Council  exercises  its  independent  judgment  and  finds  that  this Resolution and the proposed Ordinance are not subject to the California Environmental Quality Act (“CEQA”), because the enactment of this Resolution and the proposed Ordinance:  (1) do not 4911-6384-7567, v. 3
4 constitute a “project” as defined by CEQA pursuant to Sections 15060(c)(3) and 15378; (2) will not  result  in  a  direct  or  reasonably  foreseeable  indirect  physical  change  in  the  environment pursuant to Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment pursuant to 15061(b)(3); and
WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city or district may  by  resolution  request the Board  of Supervisors  of the county to  permit the county elections official to render specified services to the city or district relating to the conduct of an election.  The city or district shall reimburse the county in full for the services performed upon presentation of a bill to the city or district; and
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district, city or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order consolidation.  The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and
WHEREAS, the City Council desires to submit a Measure with a proposed Ordinance as referenced above to the voters of the City at a Special Municipal Election to be held on June 2, 2026, which is on the same date as the Statewide Primary Election to be held on June 2, 2026; and WHEREAS, it is desirable that the City’s Special Municipal Election to be held on June 2, 2026, be consolidated with the Statewide Primary Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and  that  the  County  of  Monterey  Election  Department  canvass  the  returns  of  such  Special Municipal Election and that the election be held in all respects as if there were only one election.

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

Section 1. Calling of Special Municipal Election.  Pursuant to the laws of the State of California and the Pacific Grove City Charter, including,  but  not limited to, Elections Code Section  9222  and  10201,  there  is  called  and  ordered  to  be  held  in  the  City  of  Pacific  Grove, California, on June 2, 2026, a Special Municipal Election (“Special Municipal Election”) for the 4911-6384-7567, v. 3
5 purpose of submitting a ballot measure that, if approved, would enact an ordinance increasing the monthly  compensation  of  the  City  of  Pacific  Grove  Mayor  and  City  Councilmembers  and permitting the Mayor and Councilmembers to waive any or all of such compensation. As required by Elections Code Section 13247, the abbreviated form of the Measure to appear on the ballot is specified below in Section 2.

Section 2. Question.    The  City  Council  hereby  orders  the  following  question  be submitted to the voters at the Special Municipal Election:

Measure " " An Ordinance Increasing the Compensation of the City of Pacific Grove City Councilmembers and Mayor
Shall the Measure, increasing the compensation of the City of Pacific Grove City Councilmembers  from $420 a month to $987 and  the City of Pacific Grove Mayor from $700 a month to $1645 and with such new compensation taking effect on the date a Councilmember begins a new term of office in December 2026, be adopted? YES
NO
Section 3. Proposed Measure. The proposed complete text of the Measure with the proposed ordinance to be submitted to the voters is attached to this Resolution as Exhibit A and incorporated by reference. The full text of the Measure shall be printed in the Sample Ballot and Voters Pamphlet and shall be made available to the public and to any voter at the County Elections Department and the Pacific Grove City Clerk.

Section 4. Publication of Measure. The City Clerk is directed to publish a synopsis of the Measure in a newspaper of general circulation in the City of Pacific Grove, in accordance with California Elections Code section 12111 at least one time not later than one week before the election.

Section 5. Form of Ballot. The ballots to be used at the election shall be in form and content as required by law.

Section 6. Coordination.  The  City  Clerk  is  authorized,  instructed,  and  directed  to coordinate  with the Monterey County  Elections  Department to  procure  and  furnish  all  official ballots,  notices,  printed  matter,  and  all  supplies,  equipment,  and  paraphernalia  that  may  be necessary in order to properly and lawfully conduct the election.

Section 7. Approval.  The vote requirement for this Measure to pass shall be a majority of those casting ballots on the Measure (50% plus 1).
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6 Section 8. Request for Consolidation.
(a) Pursuant to the requirements of Elections Code Section 10403, the Board of Supervisors  of  the  County  of  Monterey  is  hereby  requested  to  consent  and  agree  to  the consolidation of the Special Municipal Election with the Statewide Primary Election on Tuesday, June 2, 2026, for the purpose of submitting to the voters the abovementioned Measure. (b) The Monterey County Elections Department is authorized to canvass the returns of the Special Municipal Election. The election shall be held in all respects as if there were only  one  election,  and  only  one  form  of  ballot  shall  be  used.  The  election  will  be  held  and conducted in accordance with the provisions of law regulating the statewide elections, including, but not limited to, Elections Code Section 10418.
(c) The Board of Supervisors of the County of Monterey is requested to issue instructions to the Monterey County Elections Department to take any and all steps necessary for conducting and holding the consolidated election.
(d) The City of Pacific Grove recognizes that additional costs will be incurred by the County of Monterey by reason of this consolidation and agrees to reimburse the County of Monterey for any costs.

Section 9. Filing with County. The City Clerk shall file a certified copy of this Resolution with the Monterey County Elections Department.

Section 10. Impartial Analysis and Arguments.
(a) City Attorney Impartial Analysis.  Pursuant  to  Elections  Code  Section 9280, the City Attorney shall prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure on existing law and the operation of the Measure. The analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council.  In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type,  the  following:  “The  above  statement  is  an  impartial  analysis  of  Ordinance  or  Measure _________. If you desire a copy of the ordinance or measure, please call the election official’s office at (insert phone number) and a copy will be mailed at no cost to you.” The impartial analysis shall be filed by 12:00 p.m. on March 12, 2026.
(b) Primary Arguments.
(1) Pursuant  to  Elections  Code  Section  9282,  the  City  Council authorizes the Mayor to author and submit the primary argument in favor and pursuant to Elections Code  Section  9285(a)  not  to  exceed  300  words,  accompanied  by  the  printed  name(s)  and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 8 of the Elections Code, and authorizes the Mayor to submit a rebuttal argument to the argument against the Measure pursuant to Section 10(c).
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7 (2) A primary argument in favor or against the Measure shall not exceed 300  words in length  and  shall  be  accompanied  by the  printed  name(s)  and  signature(s)  of the author(s) submitting it, or, if on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, in accordance with Article 4, Chapter 3, Division 8 of the Elections Code. Primary arguments shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument (see Form F-13).

Submittals of primary arguments are to be delivered to the City Clerk no later than 12:00 p.m. on March 12, 2026, and may be changed or withdrawn up and until such date and time. (3) In the  event that more than  one  argument in  favor  or  against the foregoing Measure is timely submitted, then consistent with Elections Code Section 9282, the City Clerk  shall  select the argument to  be included with the  ballot materials,  giving  preference and priority first, to arguments submitted by member(s) of the City Council, and second, to individual voters,  or  bona  fide associations  of citizens,  or a combination thereof, in the  order  set  forth in Elections Code Section 9287.
(c) Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, rebuttal arguments shall be permitted. When the City Clerk has selected the primary arguments for and against the Measure (not exceeding 300 words each), which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument in favor of the Measure to the authors of any argument against the Measure and a copy of an argument against the Measure to the authors of any argument in favor of the Measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. The rebuttal arguments shall be filed with the City Clerk,  signed,  with  the  printed  name(s)  and  signature(s)  of  the  author(s)  submitting  it,  or  if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, by 12:00 p.m. on March 19, 2026. The rebuttal arguments shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument (see Form F-13). Rebuttal arguments shall be printed in the same manner as the direct arguments.

Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. (d) Printing. The City Clerk shall cause the City Attorney’s impartial analysis, and duly selected arguments, to be printed and distributed to voters in accordance with State law regarding the same.

Section 11. Polls; Hours of Operation. The vote center locations and hours of operations, ballot drop box locations and hours of operations, vote-by-mail procedures and timing, the election officers, and all other persons and procedures for the Special Municipal Election shall be the same as those utilized by the County of Monterey and in compliance with the Elections Code of the State of California. In addition, the polls for the election shall be open at seven o’clock a.m. on the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls (vote centers) shall be closed, pursuant to Election Code Section 10242, except as provided in Elections Code Sections 14212 and 14401. 4911-6384-7567, v. 3
8 Section 12. Notice of Election. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

Section 13. Conduct of Election as Provided by Law. In all particulars not recited in this Resolution, the Special Municipal Election shall be held and conducted as provided by law  for holding municipal elections.

Section 14. Implementation. The City Clerk and City Manager are authorized to take all actions  as  necessary  to  effectuate  the  purposes  of  this  Resolution  and  the  election.  The  City Manager is authorized to execute all documents and to perform all other necessary City acts to enter  into  a  service  agreement  for  the  provision  of  election  services  with  Monterey  County Elections  Department.    The  City  Clerk  and  City  Attorney  are  authorized  to  make  any typographical,  clerical,  and  non-substantive  corrections  to  this  Resolution  as  may  be  deemed necessary by the Monterey County Elections Department.

Section 15. Declaration.  The City Council shall meet to declare the results of the election called for by this Resolution at their regular meeting following certification of election results.

Section 16. Effective Date. This Resolution shall take immediate effect upon its adoption by the City Council and the City Clerk shall certify the vote adopting the resolution.

Section 17. Environmental Compliance.  The City Council  finds the  adoption  of this Resolution and the Proposed Ordinance are not subject to the California Environmental Quality Act ("CEQA") , because the enactment of this Resolution and the Proposed Ordinance:  (1) do not constitute a “project” as defined by CEQA pursuant to Sections 15060(c)(3) and 15378; (2) will not  result  in  a  direct  or  reasonably  foreseeable  indirect  physical  change  in  the  environment pursuant to Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment pursuant to 15061(b)(3).

Section 18. All Necessary Services.  The City Council of the City of Pacific Grove hereby orders that  pursuant to Elections Code Section  10002  said  governing  body  hereby  requests the Board  of  Supervisors  of  the  County  of  Monterey  to  permit  the  Monterey  County  Elections Department to provide any and all services necessary for conducting an election and agrees to pay for said services in full.

Section 19. Printing of Measure. The City Council of the City of Pacific Grove hereby requests  that  the  Monterey  County  Elections  Department  print  the  attached  full  Measure  text Exhibit A exactly as filed or indicated on the filed document in the voter information guide for the June 2, 2026 statewide election.

PASSED AND ADOPTED by the Council of the City of Pacific Grove on this _____ day of  ________ 2026, by the following vote:

AYES:

NOES:

ABSENT:
4911-6384-7567, v. 3
9 APPROVED
NICK SMITH, Mayor
ATTEST:

DATED:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

ALEX LORCA, City Attorney
4911-6384-7567, v. 3
10 EXHIBIT A
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY OF PACIFIC GROVE, CALIFORNIA, INCREASING

THE MONTHLY COMPENSATION OF CITY OF PACIFIC GROVE

COUNCILMEMBERS AND MAYOR AND PERMITTING CITY COUNCILMEMBERS

AND MAYOR TO WAIVE ANY OR ALL OF THEIR MONTHLY COMPENSATION

FINDINGS
The People of the City of Pacific Grove hereby find:

1. Article 11 of the Charter of the City of Pacific Grove provides that the Mayor may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is  permitted  by  State Law  for General Law  cities  of  comparable  size to  Pacific Grove, and

2. Article 12 of the Charter of the City of Pacific Grove provides Councilmembers may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by the State Law  for General Law cities of comparable size to Pacific Grove;

3. By Ordinance No.  1682 N. S.  passed and adopted  by council  on  July  19,  1989, compensation for Pacific Grove Councilmembers was set at $300.00 a month and compensation for the Pacific Grove Mayor was set at $500.00 a month.

4. The current  compensation  for  the Mayor  and  City  Councilmembers  was  set  by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 27 years ago as of December 1, 2025, which increased the compensation of the Mayor from $500 a month to $700 a month and increased the compensation of City Councilmembers from $300 a month to $420 a month.

5. On  June  29,  2023,  Senate  Bill  No.  329  was  adopted  by  the  California  State Legislature  amending  Government  Code  Section  36516  and  was  approved  by  the  Governor pertaining to the compensation of City Councilmembers and became effective on January 1, 2024.

6. The findings in SB 329 included the following:

SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule  for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)  Allowing  cities to  adjust their  compensation  for inflation  since  1984 may  help  city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families. 4911-6384-7567, v. 3
11 7. Government  Code  Section  36516  (a)  provides  that  a  city  council  may  enact  an ordinance providing that that each member of the city council shall receive a salary in the following amount:
(1) For cities with a population of 35,000 or less, the compensation permitted increased by SB 329 from $300 dollars to $950 dollars, or.
(2) In the alternative, the compensation of City Councilmember could be increased by the greater amount of:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the compensation in effect when the ordinance or amendment is enacted.
(B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.

8. Government Code Section 36516 (b) provides that “Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.”

9. Government Code Section 36516.1 provides that an elected mayor may be provided with compensation in addition to that which he or she receives as a council member.

10. Pursuant  to  Government  Code  Section  36516.1,  the  amount  of  additional compensation for an elected mayor, may be provided by an ordinance adopted by the city council or by a majority of the electors voting on the proposition at a municipal election.

11. The California Consumer Price Index increased from December 1998 to December 2025 by over 100% percent.

12. City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the mayor  and  council members to  decline  all  of their  compensation,  but may  not  decline the compensation in part or accept in part.

13. On  May  21,  2025,  the  City  Council  adopted  Ordinance  No.  25-007  to  repeal Ordinance No. 1872 N. S. and to increase the monthly compensation of City Council Members to $966 and increase the monthly compensation of the Mayor to $1610.

14. On  August  20,  2025,  following  receipt  by  the  City  of  a  Referendum  against Ordinance No. 25-007, the City Council approved a Motion to direct staff to return to the Council on  September  3,  2025 with  an  ordinance  repealing Ordinance No.  25-007  and to  return to the Council at a future meeting for discussion of a possible ballot measure to be presented in 2026 for a public vote on an ordinance increasing the salary of the Mayor and City Councilmembers. 4911-6384-7567, v. 3
12 15. On  September  3,  2025,  the  City  Council  introduced  Ordinance  No.  25-016 repealing Ordinance 25-007.

16. On September 17, 2025, the City Council adopted Ordinance No. 25-016 repealing Ordinance No. 25-007.

17. Government Code Section 36516.5 provides for general law cities that an increase in compensation shall be effective whenever one or more members of the city council becomes eligible for a salary increase by virtue a council member beginning a new term of office which would be in December 2026.

18. Applying the 5% per year formula of Government Code Section 36516 (a)(4)(A), there would be a compensation increase for City Councilmembers from the current $420 a month to $987 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $420 is $21 multiplied by 27 years is a $567 increase. $420 plus $567 equals $987.

19. Applying the formula of Government Code Section 36516 (a)(4)(A), there would be a compensation increase for the Mayor from the current $700 a month to $1645 a month using a 5% annual increase for the 27 year period from December 1998 (the last compensation increase) through December 2025 which is 27 years. 5% of $700 is $35 multiplied by 27 years is a $945 increase. $700 plus $945 equals $1645.

20. Pursuant to Government Code Section 36516 (b) when the question of the amount of the compensation of the Councilmembers is submitted to the electors, the salary amount shall be the amount specified in the election call.

21. Pursuant  to  Government  Code  Government  Code  Section  36516.1,  when  the question of the amount of the additional compensation for an elected Mayor is submitted to the electors, the additional compensation amount shall be the amount specified in the election call.

22. The City Council exercises its independent judgment and finds that this Resolution and  the  Proposed  Ordinance  are  not  subject  to  the  California  Environmental  Quality  Act ("CEQA"), because the enactment of this Resolution and the Proposed Ordinance:  (1) does not constitute a “project” as defined by CEQA pursuant to Sections 15060(c)(3) and 15378; (2) will not  result  in  a  direct  or  reasonably  foreseeable  indirect  physical  change  in  the  environment pursuant to Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment pursuant to 15061(b)(3).

NOW, THEREFORE, THE PEOPLE OF THE CITY OF PACIFIC GROVE DO ORDAIN AS FOLLOWS:

SECTION 1. Findings. The foregoing Findings are hereby incorporated by reference in full.

SECTION 2. Repeal of Ordinance No. 1872 N. S. Ordinance No. 1872 N. S. is hereby repealed in its entirety.
4911-6384-7567, v. 3
13 SECTION 3. Compensation of Councilmembers and Mayor. Commencing on the date a City Councilmember begins a new term of office in December 2026, the compensation for City Councilmembers and the Mayor shall be as follows:

A. City Councilmembers    $ 987 per month
B. Mayor                                                          $1645  per  month SECTION 4. Waiver of Compensation.  The Mayor and/or individual Councilmembers may waive any or all of the compensation permitted by this Ordinance.

SECTION 5. Severability and Interpretation. This Ordinance shall be broadly construed in order to achieve its purpose. This Ordinance shall be interpreted so as to be consistent with all applicable Federal and State laws,  rules, and  regulations.  If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, part, or portion of this Ordinance is held to be invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The voters hereby declare that this Ordinance, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, part, or portion thereof would have been adopted or passed even if one or more sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, parts, or portions were declared invalid or unconstitutional.  If any  provision  of this Ordinance is  held invalid as applied to any  person  or circumstance, such invalidity shall not affect any application of this Ordinance that can be given effect without the invalid application.

SECTION 6.   Publication.   The City Clerk shall publish and/or post this Ordinance in the manner required by law.

SECTION 7.  Effective Date. Pursuant to Elections Code Section 9217, this Ordinance shall be considered adopted on the date that the City Council declares that the voters of the City of Pacific Grove have approved the Ordinance by a vote of no less than a majority of the votes cast by the electors voting on this Ordinance at the Special Municipal Election held on Tuesday, June 2, 2026, and shall go into effect ten (10) days thereafter.

SECTION 8.  Amendment or Repeal. Except as otherwise provided in this Ordinance, this Ordinance may be amended or repealed only by the voters of the City of Pacific Grove.

SECTION 9.   Amendment by City Council.  Pursuant to Elections Code Section 9217, this Ordinance may be amended by an ordinance adopted by the City Council provided that such ordinance is not adopted before January 1, 2031 unless the City Charter, as it may be amended from time to time, provides otherwise.
4911-6384-7567, v. 3
14 PASSED AND ADOPTED BY THE PEOPLE OF THE CITY OF PACIFIC GROVE this2nd day of June 2026
APPROVED:
_______________________________
Nick Smith, Mayor