Pacific Grove City Council
April 15, 2026

and sewer). The Lease will be approved by Ordinance (Attachment 2). The proposed timeline for the Ordinance is a first reading of the Ordinance on April 15, 2026, and a second reading on May 6, 2026. The Lease of the Premises will not have a significant effect on the environment and is found to be exempt from the California Environmental Quality Act (CEQA) per Section 15301 of the CEQA Guidelines which allows for the leasing, licensing, repair, and maintenance of public or private structures.

OPTIONS

1. Approve ordinance

2. Provide alternate direction
FINANCIAL IMPACT:

Rent will be paid to the City by Fortunate Fork, LLC of 7% of monthly gross sales as specified in the Lease and as described above in this Agenda Report.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Concession Lease Agreement
Draft Ordinance
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C I T Y O F P A C I F I C G R O V E

L E A S E

THE GROVE AT POINT PINOS
79 ASILOMAR BLVD, PACIFIC GROVE
CITY:

CITY OF PACIFIC GROVE
TENANT:

FORTUNATE FORK, LLC
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1. BASIC LEASE PROVISIONS.

1.1 EFFECTIVE DATE OF LEASE: The date the CITY signs the Lease

1.2 LANDLORD: City of Pacific Grove,
a California Municipal Corporation and charter city (CITY)

1.3 TENANT: Fortunate Fork, LLC, a California Limited Liability Corporation

1.4 PREMISES: The portion of the building located at 79 Asilomar, Pacific Grove, CA (“Building”), that includes a kitchen, a banquet room, a dining room, service window and indoor space adjacent thereto, and two public restrooms plus the outdoor patio adjacent to the Building.

1.5 COMMENCEMENT DATE The date TENANT is delivered possession of the Premises. The Commencement Date shall be confirmed using Exhibit E of this Agreement.

1.6 EXPIRATION DATE Five Years from the Effective Date of Lease.

1.7 PERCENTAGE RENT: 7% of TENANT’S gross sales.

1.8 UTILITIES TENANT shall arrange for and pay for all utilities (including but not limited to water, electricity, gas, sewer, telephone, and cable) furnished upon the Premises.

1.9 ADDRESS FOR CITY NOTICES: See section 18

1.10 ADDRESS FOR TENANT
NOTICE: See section 18

1.11 PERMITTED USE: Food and beverage service including a restaurant facility, snack bar, banquet and dining rooms, outdoor patio, and vending machines, subject to the provisions of this Lease and Applicable Law, and no other purpose.

1.12 SECURITY DEPOSIT: $11,000, payable to the CITY upon execution of the Lease.

1.13 PARKING: TENANT may use all unreserved parking spaces adjacent to the Premises. All parking shall be subject to Article 15 of this Lease.

1.14 LEASE ELEMENTS: This Lease is comprised of the Basic Lease Provisions contained here in Section 1, the provisions of this Lease, and the following Exhibits:

Exhibit A – Premises Diagram
Exhibit B – Rules and Regulations
Exhibit C – Ongoing Maintenance Schedule
Exhibit D – List of Lessor-owned Furnishings
Exhibit E – Confirmation of Term of Lease
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2. LEASE.

2.1 Agreement to Lease. CITY  hereby  leases  to  TENANT,  and  TENANT  leases  from  CITY,  the Premises on the following terms and conditions. CITY and TENANT understand this Lease is comprised of the Basic  Lease  Provisions  contained in  Article  1  above  and  Article  2 through  20  and  any  Exhibits attached hereto. The Exhibits attached hereto are incorporated herein by this reference.

2.2 Premises; Property; Common Areas. The Premises consists of the area specified in Section 1.4 of the Basic Lease Provisions and more particularly described in Exhibit A. TENANT shall have exclusive use of the Premises. The “Property” is that certain real property located at 79 Asilomar Boulevard, Pacific Grove, CA 93950 which is improved with the Building and associated walkways, drive aisles, and parking spaces, those landscaped areas that are not part of the Golf Course, and hallways used in common with other tenants  (“Common Areas”). TENANT shall have the non-exclusive  right to use the Common Areas in common with the adjacent golf course (“Golf Course”), subject to Article 15 with respect to parking spaces.

CITY reserves the right at any time and from time to time, to: (a) make alterations in or additions to the Common Areas; (b) temporarily close any of the Common Areas for alterations, additions, improvements, or maintenance purposes; (c) promulgate reasonable and nondiscriminatory rules and regulations governing the  use  of  the  Common  Areas;  (d)  utilize  from  time  to  time  any  portion  of  the  Common  Area  for promotional, entertainment and related matters; (e) renovate, upgrade or change the shape and size of the Common  Area;  and  (f)  add,  eliminate,  or  change  the  location  of  improvements  to  the  Common  Area including,  without  limitation,  buildings,  parking  areas,  cart  paths,  and  to  construct  structures  on  the Common  Area.  CITY  further  reserves  to  itself  the  right,  from  time  to  time,  to  grant  such  easements, dedications and rights in, on or over the Common Areas that CITY deems necessary or desirable, provided that  such  easements,  dedications  and  rights  do  not  unreasonably  interfere  with  TENANT’s  use  of  the Premises.

2.3 Permitted Use. TENANT may use the Premises only for the Permitted Use, and the Common Areas only in connection with the Permitted Use, as set forth in Section 1.11 above. No other persons shall use or occupy  the  Premises  without  CITY’s  prior  written  consent.  TENANT  shall  not  commit  or  permit  any unlawful act in or about the Premises or Common Areas or permit use of the Premises or Common Areas for any purpose or in any manner that (i) is unsafe, (ii) could constitute a nuisance, (iii) may annoy, obstruct, or interfere with the peaceful enjoyment of the public, (iv) keep or permit to be kept in or on the Premises or  Common  Areas  anything  that  is  prohibited  by  any  insurance  company  providing  coverage  for  the Premises, Building or Common Areas that will, in the reasonable opinion of CITY, increase the possibility of fire or other casualty or increase the then-existing premiums for or void the coverage of any insurance on the Premises, Building, or Common Areas or (v) does not comply with any Laws. TENANT shall not use any portion of the Property for auction, going-out-of business, or liquidation sales or special events of any kind without prior written consent from CITY.

2.3.1 CITY Events. CITY retains the right to book events at the Premises (for itself or third parties) as long as the events do not conflict with an event previously booked by TENANT. CITY shall coordinate the  scheduling  of its  event  booking through  TENANT.  TENANT  shall  maintain the master event booking calendar, which the CITY may reference. TENANT and CITY agree to use their best efforts to prevent the booking of conflicting events. The CITY's booking of events shall not unreasonably interfere with TENANT's use and TENANT shall remain the exclusive food and beverage services provider for the Premises and Property except as provided in Section 2.3.4.

2.3.2 Room Rental Fees. CITY may charge a room rental fee for events it books for third parties at the  Premises.  CITY  will  consult  with  TENANT  before  it  charges  a  room  rental  fee  to  receive guidance  from  TENANT  as  to  food  and  beverage  services  TENANT  may  wish  to  provide  in conjunction with the event that CITY desires to book. CITY will not seek to charge room rental fees PGCC 4-15-26

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2.3.3 Certain Events. CITY-booked events that do not include food and beverage services shall be limited to a total of only four such events per year. CITY will be responsible for security, premises liability, and post event cleanup for all such events.

2.3.4 Exclusive Rights. TENANT shall have the exclusive right to provide food and beverages to patrons of the Golf Course during the Term except that incidental food and beverage may be brought to the course as part of a CITY sponsored or CITY approved event including, but not limited to the annual  Employees  Golf  Tournament  or  charity  golf  tournaments  that  benefit  CITY  services  or programs. In no case shall the number of events for which food and beverage may be brought onto the course exceed four (4) per calendar year. All such events shall be approved by the Golf Course Superintendent (Superintendent) and CITY.

2.3.5 CITY Event Blackout Periods. CITY shall not book events Memorial Day weekend, July 4th weekend, Labor Day weekend, Thanksgiving week, or December 15th through January 1st.

2.4 Operations.

2.4.1 Hours of Operation. TENANT agrees to  open its  business to the  public within  seven  (7) calendar days of the Commencement Date and to operate continuously and uninterruptedly from no later than dawn until dusk every day of the year except that the business shall close on Christmas Day. Any shortening of these hours of operation shall require CITY’s prior written consent, which may be withheld or conditioned in CITY’s sole and absolute discretion. TENANT may extend these hours to the fullest extent allowable under applicable Laws (defined below). CITY understands that TENANT may  seek  necessary  use  permits  or  ordinance  changes in  order to  allow  TENANT to provide nighttime food and beverage service for special events, but CITY shall retain full discretion respecting any such change. TENANT’s hours of operation shall be posted on the exterior of the Premises or in the Common Areas in a reasonably prominent location approved by CITY and on any TENANT website that is primarily used for the restaurant.

2.4.2 Special Events and Golf Related Service. TENANT and CITY shall work together to book food and beverage service for golf related events. TENANT shall determine the appropriateness of the food and beverage service for all golf related events and special events, with due consideration given to reasonable advice or requests of the CITY for golf related events and special events and the Golf Course Superintendent for golf related events. TENANT shall maintain the master calendar for events in order to maximize the utility of the facility.

2.4.3 General Method of Operation. TENANT shall operate the business with such due diligence and efficiency as will reasonably produce the maximum return to TENANT. The business will be operated taking into account the Premises’ proximity to the Golf Course and the fact that the Golf Course  and  the  business  in  the  Premises  share  customers,  and  TENANT  will  give  reasonable consideration to the advice and requests of the Golf Course Superintendent.

2.4.4 Management. A manager of TENANT shall be present at all times TENANT’s business is open to the public.

2.4.5 Quality and Price Control. Food and beverage sold at the Premises shall be of high quality and sold at prices comparable to those prevailing for similar services and facilities at similar golf courses. TENANT shall provide CITY with notice of the initial menu concept and general price PGCC 4-15-26

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2.4.6 Compliance with Law. TENANT shall not use the Premises, Common Areas, or Property or permit anything to be done in or about the Premises, Common Areas, or Property which will in any way  conflict  with  any  law,  statute,  zoning  restriction,  ordinance  or  governmental  law  or  rule, regulation, or requirement, or regulations, of any duly constituted public authorities now in force or which  may  hereafter  be  enacted  or  promulgated,  or  any  orders,  permits,  licenses,  approvals, authorizations, or regulations promulgated under any of the foregoing (each individually a “Law” and collectively, “Laws”), or which will subject CITY to any liability for injury to any person or property  by  reason  of  any  business  operation  being  conducted  in  or  about  the  Premises.  Laws include any “Environmental Law” which means any Law relating to Hazardous Materials or other environmental conditions on, under, or about the Premises, the Building, or the Common Areas, or soil and ground water conditions, including, but not limited to, the Comprehensive Environmental Response, Compensation,  and Liability Act  of  1980  (CERCLA)  (42 U.S.C.  §  9601  et  seq.), the Resource  Conservation  and  Recovery  Act  (RCRA)  (42  U.S.C.  §  6901  et  seq.),  the  Hazardous Materials Transportation Act of 1975 (49 U.S.C. § 1801 et seq.), the California Carpenter-PresleyTanner  Hazardous  Substance  Account  Act  (Cal.  Health  &  Safety  Code  §  78000  et  seq.),  the Hazardous Materials  Release  Response  Plans  and  Inventory  Act  (Cal.  Health  &  Safety  Code  § 25500 et seq.), the California Hazardous Waste Control Law (Cal. Health & Safety Code § 25100 et seq.), the California Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. Health & Safety Code  §  25249.5  et  seq.), the California  Porter-Cologne Water  Quality Control  Act  (Cal.

Water Code § 13000 et seq.), any other Law or legal requirement concerning Hazardous Materials, and  any  amendments  or  successor  statutes  to  the  foregoing  and  all  Laws:  (a)  relating  to  the environment, human health, or natural resources; (b) regulating, controlling, or imposing liability or standards of conduct concerning any Hazardous Materials; or (c) requiring notification or disclosure of releases of Hazardous Materials or of the existence of any environmental conditions on or at the Premises, Common Areas, or Property, as any of the foregoing may be amended, supplemented, or supplanted from time to time.

2.4.7 Licenses, approvals and permits. TENANT shall obtain all permits, licenses, and approvals required  under  any  Law  for  the  lawful  conduct  of  TENANT’s  business,  for  lawful  use  of  the Premises, or to allow TENANT to meet the obligations under this Lease, prior to performing any act  requiring  such  permits,  licenses,  or  approvals.  TENANT  shall  obtain  and  maintain  a  liquor license. All permits and licenses shall be maintained in TENANT's name. TENANT shall pay, at TENANT’s sole cost and expense, all charges and fees associated with such permits, licenses, and any other approval required under any Law.

2.4.8 Restaurant Name. The restaurant name shall be "The Grove at Point Pinos." Any change to this  name  shall  require  CITY’s  prior  written  consent.  This  name  shall  attach  to  the  Premises, TENANT and CITY shall only have the right to use the name during the Term. The TENANT and CITY  shall  cease  using  any  website  or  merchandise  with  the  restaurant  name  on  it  upon  the Expiration Date or earlier termination of the Lease.

2.4.9 Health and Sanitation. TENANT shall insure that all its employees are neatly attired in clean  and  appropriate  uniforms  whenever  on  duty. Before  any  of  TENANT's  employees engage in the preparation, handling, serving, or storage of food, such employee shall meet all requirements under applicable Laws to engage in such activity.

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2.4.10 City Municipal Powers.   City  enters this  Lease in its  proprietary  capacity,  and  as  such nothing in this Lease shall be construed as restraining, impairing, or restricting the City in its regulatory capacity, or granting any rights upon the TENANT with respect to the use, occupancy, or operation of the Premises in a manner inconsistent with the Law.

2.5 Rules. TENANT  shall  use  the  Premises  and  Common  Areas  in  compliance  with  all  Rules  and Regulations in Exhibit B attached hereto and incorporated herein.

3. TERM.

3.1 Term. The term  of the lease  shall  be  five  (5)  years. The term  of this Lease  commences  on the Commencement Date and terminates on the Expiration Date as described in Sections 1.5 and 1.6, unless sooner terminated or extended as provided in this Lease (the “Initial Term”).

3.2 Option. At the end of the Initial Term, TENANT may exercise an option to extend the Lease for five (5) additional years (“Additional Term”). TENANT shall have the option to further extend the Lease for five (5) additional years at the end of the Additional Term. This provides TENANT a total of two options to extend the Lease five (5) years, for a total of ten years. Such exercise must be made in writing to CITY at least sixty (60) days prior to the Expiration Date. The exercise of TENANT’S option(s) shall constitute agreement  to  and  extension  of  the  terms  of  this  Lease.  Each  time  TENANT  exercises  an  option,  the Expiration Date contained in Section 1.6 will be extended five (5) years.

3.3 Holdover. If TENANT remains in possession of any part of the Premises after the Expiration Date, CITY may, at CITY’s option in its sole and absolute discretion, (i) treat TENANT as a trespasser and pursue any remedy described in Section 13.2, or (ii) treat such holding over as a tenancy at will upon the same provisions as this Lease, including, but not limited to Section 9.1, except that, in either event, the Base Rent during  such  tenancy  at  will  shall  be  one  hundred  thirty  percent  (130%)  of  the  Base  Rent  in  effect immediately  prior  to  the  Expiration  Date  (a  “Hold Over TENANT”).  No  holding  over  by  TENANT, whether with or without consent of CITY, shall operate to extend this Lease. IN ORDER FOR TENANT

TO EXTEND THIS LEASE AT THE EXPIRATION OF THE TERM AND FOR TENANT NOT TO BE CONSIDERED A “HOLD OVER TENANT” WITH AN AUTOMATIC INCREASE IN BASE RENT BY 130%, TENANT MUST NOTIFY CITY OF ITS DESIRE TO EXTEND THE TERM OF THE LEASE IN WRITING AT LEAST SIXTY (60) DAYS PRIOR TO THE EXPIRATION OF THE TERM. IF TENANT NOTIFIES CITY THAT IT DESIRES TO EXTEND THE TERM, AND THE

CITY IS WILLING TO EXTEND THE TERM, CITY AND TENANT SHALL AGREE ON THE

TERMS AND CONDITIONS OF THE EXTENSION AND EXECUTE AN AMENDMENT TO THE LEASE.

4. RENT AND UTILITIES.

4.1 Rent. Commencing on the twenty-eighth (28th) day of each month after the Commencement Date, TENANT shall pay Percentage Rent, without deduction or offset whatsoever, in the amount set  forth in Section 1.7. Percentage Rent due shall be based upon the monthly accounting of gross sales pursuant to Section 7.4. Percentage Rent for any partial calendar month at the beginning or end of the Term shall equal the product of  (i) the number of days in such partial month, and  (ii) the quotient of the applicable Rent divided by the actual number of days in such calendar month. Percentage Rent and any other charges due under the Lease are collectively referred to as “Rent” in this Lease. Unless otherwise stated, any Rent is due within ten (10) days after CITY’s written demand therefor.

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4.1.1 Gross Sales Defined.  Gross  sales  shall include the  full  sale  price  of  each  beverage,  food product, ingredient, gift card, or item of merchandise sold at any time during the Term, including online sales; rental fees for any room in the Premises that are imposed at any time during the Term; catering charges or other specialty service charges imposed at any time during the Term, when any of such prices, fees, or charges pertain to sales ordered or fulfilled at or services provided in whole or in part at, related to, on or from the Premises (restaurant, banquet and meeting rooms, walk-up window,  online  sales,  or  portable  concession  stands  in  the  Common  Areas).  Gross  sales  shall exclude credit card service charges that are not included in the sale price to customers.

4.1.2. Rental Cap. The  dollar  amount  of  gross  sales  percentage  due  under this  section  shall  be capped  at  thirteen  thousand,  five  hundred  dollars  ($13,500)  per  month.  This  monthly  cap  shall increase by three percent (3%) annually, with the increase occurring on the yearly anniversary of the Effective Date identified in Section 1.1.

4.2 Utilities. During the Term, TENANT shall pay when due, directly to the utility suppliers, the cost of all separately-metered utilities furnished to the Premises, including, without limitation, electricity, gas, and  sewer.  TENANT  shall maintain  accounts  with the  utility  suppliers in  TENANT’s  name.  As  of the Effective  Date  all  utilities  furnished to the  Premises  are  separately  metered.  If  utilities  provided to the Premises are not separately metered in the future, CITY may determine in the exercise of its reasonable discretion TENANT’s “Proportionate Share” of such utilities furnished and TENANT shall pay CITY such “Proportionate Share” after CITY provides TENANT a statement requesting such payment. CITY shall not be  liable  to  TENANT  for  injury,  damage,  loss  of  TENANT’s  business  or  profits,  from  any  failure, interruption,  rationing  or  other  curtailment  in  the  supply  of  water,  electric,  gas,  or  other  utilities  from whatever cause.

4.3 Late Charges and Interest Rate. If CITY does not receive Rent or any other payment due from TENANT on or before 4:59p.m. of the fifth (5th) day after the date due, TENANT shall pay to CITY a late charge equal Five percent (5%) of such past due Rent or other payment (“Late Charge”). TENANT agrees that this Late Charge  represents a  fair and  reasonable estimate of the cost CITY will incur by  reason of TENANT’s late payment. Accepting any Late Charge shall not constitute a waiver by CITY of TENANT’s default with respect to any overdue amount nor prevent CITY from exercising any other rights or remedies available  to  CITY.  If  any  installment  of  Percentage  Rent  or  any  other  amount  payable  by  TENANT hereunder is not received by CITY by the date due, it shall bear interest at the Applicable Interest Rate until paid. All interest, and any late charges imposed pursuant to this Section, shall be considered additional Rent due from TENANT to CITY under the terms of this Lease. The “Applicable Interest Rate” is the lesser of Five Percent (5%) per annum or the maximum allowable interest under any usury Law. In the event of a Rent payment by check which is returned for insufficient funds, TENANT will also be charged a “Returned Check Charge” of $100.00 as additional Rent. CITY and TENANT recognize that the damage which CITY will suffer as a result of TENANT's failure to pay any Rent timely is difficult to ascertain and said Late Charge and interest are the best estimate of the damage that CITY will suffer in the event of late payment of Rent.

5. SECURITY DEPOSIT.

5.1 Security Deposit. Concurrently with TENANT’s execution and  delivery  of this Lease to CITY, TENANT shall deposit with CITY the Security Deposit as set forth in Section 1.12 above. The Security Deposit shall be held by CITY as security for the full and faithful performance by TENANT of all of the terms, covenants and conditions of this Lease to be performed by TENANT during the Term. In the event of  a  TENANT  Default  with  respect  to  any  of  its  obligations  under  this  Lease  and  in  the  event  CITY discovers after expiration or termination of the Lease that TENANT has  failed to clean the Premises or repair damage any TENANT Party (defined below) caused, CITY may (but shall not be required to) use, PGCC 4-15-26

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5.2 Failure to Obtain Loan.  TENANT  has  informed  CITY  that  it  intends  to  finance  the  Security Deposit and operations through a loan. If TENANT fails to obtain its desired loan, TENANT may terminate this agreement in writing. TENANT agrees to provide written termination within forty-eight (48) hours after determining it cannot  procure  sufficient  funds to  deliver the Security Deposit  on time,  or to  operate its business.

6. USAGE AND COMPLIANCE.

6.1 Hazardous Materials. TENANT agrees that neither TENANT nor the TENANT Parties (defined below) shall install, introduce, use, generate, transport, store, treat, dispose of, release or otherwise handle any  Hazardous  Materials  (as  defined  below)  in,  on,  under  or  about  the  Premises,  Common  Areas,  or Property without CITY’s prior written consent, which consent may be granted, denied, or conditioned upon delivery of a Hazardous Materials Disclosure Certificate and compliance with any other requirements of CITY, all in CITY’s absolute discretion, or transport any Hazardous Materials to or  from the Premises, Common Areas, or Property in violation of any applicable Environmental Laws. The term “Hazardous Material”  shall mean  any  and  all  substances, materials,  chemicals,  or wastes that  now  or  hereafter  are classified  or  considered to  be  hazardous  or toxic  under  any Environmental Law,  or that  are  or  become regulated by any governmental authority because of toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness, or reactivity under any Environmental Law applicable to the Premises, Common Areas, or Property, and shall also include: (a) gasoline, diesel fuel, and any other petroleum hydrocarbons; (b)  asbestos  and  asbestos  containing  materials,  in  any  form,  whether  friable  or  non-friable;  (c) polychlorinated biphenyls (“PCB”); (d) radon gas; and (e) flammable liquids and explosives.. TENANT shall provide CITY with prompt written notice of any known or suspected environmental discharges or releases  of  Hazardous  Materials  that  are  reportable  to  governmental  authorities  under  any  applicable Environmental Laws, together with a copy of any report, statement, notice, registration, application, permit, license, claim, action or proceeding or other communication given to or received from any governmental authority or third party with respect to any such release. TENANT covenants and agrees that no asbestos, asbestos-containing materials, PCB compounds will be used in any alterations, additions or improvements to, any portion of the Premises. TENANT shall indemnify, protect, defend and hold harmless CITY from and against all loss, costs, damages, claims, proceedings, demands, liabilities, liens, penalties, taxes, fines and  expenses, including  reasonable  attorneys’  fees,  consultants’  fees, litigation  costs,  and investigation, removal, remediation, cleanup and monitoring costs, asserted against or incurred by CITY at any time by reason of or arising out of the presence of any Hazardous Materials in, on, under, about or emanating from the Premises, Common Areas, or Property resulting from or in connection with (i) the action, inaction, fault or  neglect  of  TENANT  or  any  TENANT  Party,  (ii)  the  use,  generation,  storage,  treatment,  handling, transportation, disposal or release of any Hazardous Material in, on, about or emanating from the Premises, Common  Areas,  or  Property  by  or  for  TENANT  or  any  TENANT  Party,  or  (iii)  the  violation  of  any PGCC 4-15-26

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6.2 Suitability of Premises. TENANT acknowledges that neither CITY nor any of its representatives has made any representation or warranty with respect to the Premises, or the fitness of the Premises or the furniture,  fixtures,  and improvements therein  as  of the Effective Date, with  respect to the  suitability  or fitness  of the  same  for the  conduct  of TENANT’s  business  or  for  any  other  purpose  or with  respect to compliance of any of the foregoing with any Law.

6.3 Sewer Damage. TENANT agrees not to discharge any harmful or dangerous chemicals into the sewer system, whether it be inside the Premises area or inside the main system leading from the Premises to the main sewer line. Should TENANT discharge any harmful chemicals into the sewer system, TENANT shall be fully responsible for the cost and repair of such damage. CITY reserves the right to select an expert of its choosing to inspect any damage at TENANT’s cost. TENANT shall not be responsible for the cost of the expert if it is determined such damage is not caused by TENANT. TENANT accepts responsibility for any damage if the following conditions exist: (i) the damage to the sewer system is determined to be due to the chemicals used in the operation of TENANT’s business; or (ii) the damage exists only in the designated portion of the sewer system connecting to the Premises.

6.4 TENANT’s Nondiscrimination Covenant. TENANT herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this Lease is made and accepted upon and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, physical or mental disability or medical condition, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Premises herein leased nor shall the TENANT himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of TENANT or TENANT’S assignees or subtenants in the Premises herein leased.

6.5 Pest Control. TENANT, at TENANT’s sole cost, shall at all times keep the Premises free of pests (including without limitation rats, mice, spiders, mosquitoes, flies, termites, roaches, ants and other insects), including the obligation to maintain a pest control service contract with a licensed pest control operator and provide CITY with a copy of such pest control service contract. If TENANT fails to promptly and fully comply with this Section, CITY shall have the right, but not the obligation, to enter the Premises to perform such spraying or inspections at TENANT’s expense. Performance of such work by CITY shall not constitute a waiver of TENANT’s default in failing to do the same nor shall it entitle TENANT to any damage for any injury or inconvenience occasioned thereby nor to any abatement of Rent. TENANT shall reimburse CITY for any cost incurred by CITY pursuant to this Section upon demand therefor.

6.6 Recycling Program. TENANT,  at  TENANT’s  cost,  shall  participate  in  any  and  all  recycling programs in which CITY is obligated to participate by law or if TENANT is otherwise required to do so pursuant to any federal, state or local law, rule or regulation.

7. TAXES; RECORDS AND ACCOUNTING.

7.1 Taxes. TENANT shall be solely responsible for paying all of the following, collectively “Taxes”:
(i) taxes and assessments levied on trade fixtures, alterations, additions, improvements, partitions, cabling, wiring,  furniture,  equipment,  inventories  and  other  personal  property  located  and/or  installed  on  the Premises by or on behalf of TENANT; (ii) any and all property taxes levied on the TENANT’s possessory property interest; (iii) although not assessed as of the Effective Date, in the event later assessed due to a PGCC 4-15-26

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7.2 Notice: Payment of Taxes. A possessory property interest is created by this Lease, and may be subject to property taxation. TENANT acknowledges that this Section 7.2 constitutes notice under Revenue and Taxation Code Section 107.6 and that TENANT or the party in whom the possessory interest is vested shall be responsible for payment of such Taxes.

TENANT shall pay all Taxes prior to delinquency. To the extent any Taxes are not separately assessed or billed to TENANT by the taxing authority, CITY shall deliver to TENANT copies of the bill for such Taxes.

TENANT shall pay the bill amount directly to the taxing authority no later than ten (10) business days prior to the date on which such Taxes are due. Should TENANT fail to pay its Taxes, CITY may elect to do so on TENANT's behalf and, within five (5) days after CITY’s demand therefor, TENANT shall reimburse CITY for such Taxes and any penalties and fines, together with interest at the Applicable Interest Rate, from the date CITY tendered payment.

7.3 Records and Accounting. TENANT shall keep proper records and accounts of the Gross Sales and such records shall be kept in accordance with GAAP. Such records and accounts, including any sales tax reports that TENANT is required to furnish to any governmental authority, shall be open at all reasonable times  to  the  inspection  or  audit  of  CITY  or  CITY's  third  party  professional  auditor  or  authorized representative, upon at least five (5) business days’ prior notice and during business hours. TENANT shall maintain records and accounts in accordance with this Section for at least two (2) years after expiration of each period of twelve calendar months that commences on an anniversary of the Commencement Date and ends on the day immediately preceding the next anniversary of the Commencement Date (“Lease Year”).

TENANT  shall  reimburse  CITY  for  all  reasonable  and  documented  expenses  incurred  by  CITY  in performing  the  audit  or  inspection,  in  addition  to  all  additional  Percentage  Rent  found  to  be  owed  by TENANT following an audit or inspection under this Section.

CITY is a public entity subject to the California Public Records Act. Information provided to CITY pursuant to this Section 7.3 will be disclosed publicly as  required by law.  If CITY  receives a  request  for  records related  to  information  obtained  from  TENANT  pursuant  to  this  Section  7.3,  CITY  agrees  to  promptly provide TENANT with written notice of the request.  TENANT will then have the time specified in the CITY’s notice to determine whether it considers any of the information confidential proprietary information and  whether  it  will  take  legal  action  to  preclude  disclosure  of  the  requested  information.    TENANT understands CITY’s notice of a request for records under the California Public Records Act will require a prompt response from TENANT given the CITY’s legal obligation to respond to such a request within 10 days of its receipt.  Absent a timely response, CITY may release the requested records.  CITY shall have no monetary liability to TENANT for release of information pursuant to a request under the California Public Records Act or any subpoena. Likewise, CITY shall not be obligated to defend against any challenge related to a California Public Records Act request or a subpoena for records that TENANT asserts are confidential or not disclosable.  TENANT further agrees to be liable for and pay all judgments against the CITY, as well as attorney fees and costs, resulting from a challenge related to a records request or subpoena for records that TENANT asserts are confidential or not disclosable.

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7.4 Monthly Accounting. A monthly accounting of Gross Sales  shall be compiled and  furnished to CITY by the fourteenth (14th) of each month beginning after the Commencement Date, and attached to the payment of Percentage Rent as described in Section 4.1.

7.5 Annual Financial Statements. TENANT  shall  provide  to  CITY  annual  compiled  financial statements for TENANT’s business at the Premises. The annual financial statements shall be compiled by a Certified Public Accountant and are due to CITY within three (3) months after the end of each Lease Year.

If  an  annual  compiled  financial  statement  shows  an  amount  owing  by  TENANT that is  more than the Percentage  Rent  previously  paid  by  TENANT  for  such  Lease  Year,  TENANT  shall  pay  CITY  the deficiency. If such statement shows an amount owing by TENANT that is less than the Percentage Rent paid  by  TENANT  for the  Lease  Year, the  excess  shall  be  held  by CITY  and  credited  against the  next payment of Percentage Rent; however, if the Term has ended and TENANT was not in default at its end, CITY shall refund TENANT the excess.

8. INDEMNIFICATION AND EXCULPATION.

8.1 TENANT’s Assumption of Risk and Waiver. Except to the extent such matter is attributable to the gross negligence or willful misconduct of CITY or CITY’s agents, contractors, officers or employees, CITY  shall  not  be liable to TENANT,  or any  of TENANT’s Parties, as  hereinafter  defined,  for:  (i) any damage to property of TENANT, or of others, located in, on or about the Premises, (ii) the loss of or damage to any property of TENANT or of others by theft or otherwise,  (iii) any injury or damage to persons or property resulting from fire, explosion, personal injury, steam, gas, electricity, water, rain or leaks from any part of the Premises or from the pipes, appliance of plumbing works or from the roof, street or subsurface or from any other places or by dampness or by any other cause of whatsoever nature, (iv) any such damage caused by other persons in the Premises, occupants of any other portions of the Property, or the public, or caused by operations in construction of any private, public or quasi-public work, or (v) any interruption of utilities and services. CITY shall in no event be liable to TENANT for any consequential damages or for loss of business, revenue, income or profits and TENANT hereby waives any and all claims for any such damages. Notwithstanding anything to the contrary contained in this Section, all property of TENANT and TENANT Parties kept or stored on the Premises, whether leased or owned by any such parties, shall be so kept or stored at the sole risk of TENANT and TENANT shall hold CITY harmless from any claims arising out  of  damage to the  same, including  subrogation claims  by TENANT’s insurance carriers. “TENANT Parties” or “Tenant Party” includes TENANT, TENANT’s employees, members, partners, shareholders, agents, representatives, contractors, guests, customers, and invitees.

8.2 TENANT’s Indemnification. TENANT shall indemnify, defend, and hold harmless the CITY, its officers,  agents,  employees,  and  volunteers,  from  and  against  any  and  all  claims, liabilities,  and losses whatsoever (including damages to property and injuries to or death of persons, court costs, and reasonable attorneys’ fees) occurring or resulting to any and all persons, firms or corporations furnishing or supplying work, services, materials, or supplies in connection with the performance of this Lease, and from any and all claims, liabilities, and losses occurring or resulting to any person, firm, or corporation for damage, injury, or death arising out of or connected with (i) any default in the performance of any obligation on TENANT's part to be performed under the terms of this Lease, (ii) TENANT’s or TENANT Parties’ use of the Premises, Property, or Common Areas; (iii) the conduct of TENANT's business or any activity, work or thing done, permitted or suffered by TENANT or TENANT Parties in or about the Premises, Property, or Common Areas;  or  (iii) any  act,  error  or  omission  of  TENANT  or  TENANT  Parties  in  or  about  the  Premises, Property, Common Areas or any portion thereof except to the extent that such claims, liabilities, or losses described in (i), (ii), or (iii) result from, in whole or in part, the gross negligence or willful misconduct of the CITY.

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8.3 Survival. The  obligations  of TENANT  under this Article 8  shall  survive the expiration  or  other termination of this Lease with  respect to any claims or liability arising prior to such expiration or other termination.

9. INSURANCE.

9.1 TENANT’s Insurance Policies and Limits.  Without  limiting  TENANT’s  duty  to  indemnify, TENANT shall maintain in effect throughout the term of this Lease a policy or policies of insurance with the following minimum limits of liability:
(i) Commercial general liability insurance, no less broad than Insurance Services Office (ISO) CG 00 01, including but not limited to premises and operations, including coverage for Bodily Injury and Property  Damage,  Personal  Injury,  Contractual  Liability,  Broadform  Property  Damage,  Products  and Completed  Operations,  with  a  minimum  Limits:  $1,000,000  per  Occurrence;  $2,000,000  General Aggregate.  The  required  limits  may  be  provided  by  a  combination  of  General  Liability  Insurance  and Commercial Excess or Umbrella Liability Insurance.  If TENANT maintains higher limits than the specified minimum  limits, CITY  requires  and  shall  be  entitled  to  coverage  for  the  higher  limits  maintained  by TENANT.
(ii) Business  automobile  liability  insurance,  covering  all  motor  vehicles,  including  owned, leased, non-owned, and hired vehicles, used in providing services under this Lease, with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence. (iii) Workers’ Compensation Insurance, if TENANT employs others in the performance of this Lease, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.

9.2. Other Insurance Requirements.
(i) Insurer.  All  insurance  required  by  this  Lease  shall  be  executed  by  an  admitted  insurer authorized to transact Insurance business in the State of California that is acceptable to the CITY with a rating of A- or better. Unless otherwise specified by this Lease, all such insurance shall be written on an occurrence  basis,  or, if the  policy is  not written  on  an  occurrence  basis,  such  policy with the  coverage required herein shall continue in effect for a period of three years following the date TENANT completes its performance of services under this Lease.
(ii) Notice. TENANT shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required policies are reduced; (3) or the deductible or selfinsured  retention is increased.  In the event of any cancellation or  reduction in coverage or limits of any insurance, TENANT shall forthwith obtain and submit proof of substitute insurance. Should TENANT fail to immediately  procure  other insurance,  as  specified, to  substitute  for  any  canceled  policy,  CITY  may procure such insurance at TENANT’s sole cost and expense. (iii) Additional  Insureds.  Commercial  general  liability  and  automobile  liability  policies  shall provide an endorsement naming the City of Pacific Grove, its officers, agents, and employees as Additional Insureds with  respect to liability arising  out  of the TENANT’s work, including  ongoing and completed operations,  and  shall  further  provide that  such insurance is  primary insurance to  any insurance  or  selfinsurance maintained by the City and that the insurance of the Additional Insureds shall not be called upon to  contribute  to  a  loss  covered  by  the  TENANT’s  insurance.  The  required  endorsement  form  for Commercial General Liability Additional Insured is ISO Form CG 20 10 11-85 or CG 20 10 10 01 in tandem with CG 20 37 10 01 (2000). The required endorsement form for Automobile Additional Insured PGCC 4-15-26

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9.3 CITY’s Insurance. During the Term, CITY shall maintain insurance or an insurance equivalent (including, but not limited to, that offered to a municipality through and by a joint powers authority, a self insurance pool of liability coverage authorized pursuant to California Government Code Section 6500, or similar collective) covering the Premises (excluding, however, TENANT’s furniture, equipment and other personal property) against damage by fire and standard extended coverage perils (including, if CITY elects, "all risk" coverage, earthquake/volcanic action, flood and/or surface water insurance) and with vandalism and malicious mischief endorsements, rental loss coverage, and such additional coverage as CITY deems appropriate. At CITY’s option, all such insurance may be carried under any blanket or umbrella policies that CITY has in force for other buildings and projects. In addition, at CITY’s option, CITY may elect to self-insure all or any part of such required insurance coverage. CITY may, but shall not be obligated to, carry any other form or forms of insurance as CITY may reasonably determine is advisable.

9.4 Waiver of Subrogation. CITY  and  TENANT  hereby mutually  waive their  respective  rights  of recovery against each other for any loss to the Premises or its contents resulting from actions on or with respect to the Premises covered (or required by this Lease to be covered) by any insurance policy required to be carried by such party under this Lease and each party agrees to apply to their insurers to obtain similar waivers  from  such insurers. Each  party  shall  obtain  any  special  endorsements  required  by  such  party’s insurer  to  evidence  compliance  with  the  aforementioned  waiver. TENANT  shall  provide  to  CITY  an endorsement that the issuer waives the right of subrogation against CITY, its officers, officials, employees, agents and volunteers.

10. CONDITION; MAINTENANCE AND REPAIRS.

10.1 Beginning Condition. On the Commencement Date, TENANT shall accept the Premises and all furniture, fixtures, improvements, and equipment therein, including those in Exhibit D, in their “AS IS” condition.  TENANT  acknowledges that it  has inspected the  Premises  and  agrees that the  Premises  are suitable  for  TENANT’s  intended  use  and  TENANT  agrees  that  it  is  not  relying  on  any  warranty  or representation made by CITY or its officers concerning the use of the Premises. CITY does not represent or warrant that the Premises conform to zoning, setback, parking, impervious ground cover ratio, or other requirements under any Law that may relate to TENANT’s intended use.

10.2 Maintenance During the Lease.

10.2.1 TENANT’s Maintenance Obligations. During the Term  of this Lease, TENANT, at its expense, shall keep and timely maintain the interior of the Premises, including, without limitation, PGCC 4-15-26

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10.2.2 Services. TENANT shall arrange and pay for its own security system, telecommunication systems, and any and all other services that TENANT desires. TENANT shall arrange and pay for its own daily janitorial service (including on weekends) and trash removal service. TENANT shall also arrange and pay for the types of services at the frequency stated in Exhibit C.

10.2.3 Maintenance and Repair of Equipment and Fixtures. TENANT shall maintain and repair the  equipment  and  fixtures  in  the  Premises,  whether  provided  initially  by  TENANT  or  CITY.

TENANT shall maintain these items in a clean, good, safe condition and repair at all times.

10.2.4 Repair/Replace Costs.
(a) If any CITY-owned fixture or equipment identified on Exhibit D (as it may be updated from  time  to  time  with  the  approval  of  TENANT  and  CITY)  fails  to  operate  properly, TENANT shall notify CITY and TENANT shall attempt to have such fixture or equipment repaired. The cost to repair such fixture or equipment shall be at TENANT’s sole expense.

All  items  on  Exhibit  D  shall  remain  the  property  of  CITY  at  the  expiration  or  sooner termination of the Lease.
(b) Before replacing any fixtures or equipment owned by CITY (including items on Exhibit D as it may be updated from time to time, and fixture and equipment purchased by CITY for the Premises in CITY’s sole and absolute discretion), TENANT shall obtain CITY's prior written  consent  for  the  proposed  replacement  item  and  brand  and  replace  the  item  at TENANT’s sole cost and expense. TENANT will retain ownership of equipment purchased at their expense, excepting, however, that if replacement of the CITY-owned item is due to TENANT or TENANT’s Party damaging the item, CITY shall maintain ownership of the item. If it notes any deficiencies in the repair or maintenance, CITY shall send written notice of the deficiency to TENANT. TENANT shall repair or maintain the noted item(s) within a reasonable time as stated in the notice. If TENANT fails to do so, CITY may perform the necessary maintenance or repairs and require reimbursement from TENANT.

10.2.5 Premises Décor and Improvements.
(a) In  accordance  with  Section  11.1, TENANT  shall  be  responsible,  at its  sole  cost  and expense, for performing, installing, constructing, or causing to be performed, installed, or constructed,  all  TENANT-proposed  painting,  decorations,  and  Alterations,  including  all approved TENANT-proposed fixtures, improvements and furnishings.

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10.2.6 CITY Maintenance Obligations.
(a) CITY shall repair and maintain in good condition the exterior walls of the Building and Premises; the structure and exterior of the chimney connected to the Premises, including any flu  or  fan;  the  roof,  foundation,  and  other  structural  components  of  the  Building;  the components of the electrical, plumbing, mechanical, life/safety, heating, ventilation and air conditioning  (“HVAC”)  systems; exterior  painting, exterior  doors and  door  surfaces; the patio portion of the Premises; and the Common Areas. Notwithstanding the foregoing, CITY shall not be responsible for repairing any damage caused by any act, omission, or negligence of  TENANT,  or  its  responsible  employees,  agents,  invitees,  licensees,  assignees,  or subtenants.
(b)  CITY  shall  provide  TENANT  with  written  notice  at  least  30  days  before  it  begins substantial repairs or modifications to the Golf Course, the Golf Pro Shop, or parking lot in the Common Areas, which would have the effect of impairing the TENANT's business.

10.3 Condition Upon Surrender.  Upon the  expiration  or termination  of this  Lease,  TENANT  shall surrender the Premises to CITY broom clean, and, subject to  reasonable wear and tear, in the condition which  TENANT  shall  have  been  required to  maintain the  Premises  under this  Lease  with the  heating, ventilation, plumbing, electrical, lighting, man doors, dock doors, levelers, shelters, seals and bumpers (if any),  windows  and  floors  serving  the  Premises  in  good  operating  condition.  TENANT  shall  repair  all damage to the Premises caused by the installation or  removal of its trade  fixtures and other property of TENANT. TENANT shall restore the Premises to the same condition or better as existed immediately prior to the installation of any item removed.

11. ALTERATIONS AND SIGNS

11.1 Alterations. TENANT shall not make any alterations or construct, install, or allow to be constructed or installed any physical additions, fixtures, or improvements in, about, or to the Premises (“Alterations”) without  the  prior  written  consent of  CITY.  TENANT’s  request  for  consent  shall  include  detailed specifications, floor plans and necessary permits (if applicable) for CITY’s review. TENANT must obtain such  consent  of  CITY  prior  to  applying  for  any  permit  or  approval.  If  CITY  consents  to  TENANT’s proposed Alterations, TENANT shall ensure that the Alterations and the installation or construction of the Alterations comply with all Laws and obtain any and all permits or approvals required for the Alterations under any Laws. All contractors must be licensed in the State of California. CITY may, at any time during the Term of this Lease, notify TENANT that it  requires TENANT to  remove any or all Alterations and restore the Premises to their prior condition at TENANT's sole cost and expense. Any approved Alterations (except  trade  fixtures)  shall  become  the  property  of  CITY  unless  CITY  notifies  TENANT  that  CITY requires TENANT to remove the Alterations at any time before the Expiration Date or sooner termination of  the  Lease.  If  TENANT  fails  to  perform  its  obligations  under  this  Article  11,  CITY  may  perform TENANT’s obligations, and TENANT shall pay CITY for all costs so incurred by CITY as additional Rent after receiving a statement from CITY indicating the amount due.

11.2 Signs. TENANT shall have the right to install any directional, pricing, or other signs on the interior walls of the Premises. TENANT shall not have the right to place signs on the exterior of the Premises or in or on the Common Areas without CITY’s prior written consent. All signs must comply with applicable Laws. CITY may refuse consent to any proposed signage that is in CITY’s opinion too large, deceptive, PGCC 4-15-26

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TENANT shall repair all damage to the Premises resulting from the removal of signs installed by TENANT.

12. ENTRY BY CITY.

Upon reasonable prior written notice, CITY and its employees and agents shall have the right to enter the Premises to inspect the Premises, to show the Premises to prospective tenants or purchasers, post notices of non-responsibility on the Premises, to alter, improve or repair the Premises, or to perform any obligation of CITY or (if CITY so elects) any obligation of TENANT under this Lease. In exercising such entry rights, CITY shall endeavor to minimize, to the extent reasonably practicable, the interference with TENANT’s business, and shall provide TENANT with reasonable advance notice (oral or written) of such entry (except in emergency situations and for scheduled services). For each of the foregoing purposes, CITY shall at all times have and retain a key with which to unlock all of the doors in, upon and about the Premises, excluding TENANT’s vaults and safes (if any), and CITY shall have the means which CITY may deem proper to open said doors in an emergency in order to obtain entry to the Premises.

13. DEFAULT AND REMEDIES.

13.1 TENANT’s Default. The occurrence of any one (1) or more of the following events shall constitute a  “Default”  under  this  Lease  by  TENANT:
a) TENANT’s failure to pay any Rent by the date such amount is due where such failure continues for three  (3)  business  days  after  TENANTs  receipt  of  CITY’s  notice  that  Rent  was  not  received; b) TENANT fails more than twice within a 12‑month period to make any payment of Rent when due, in which case the third failure shall be a noncurable default, provided that in the first two instances in a 12-month period CITY has given TENANT the  required written notice described in 13.1(a) above;
c) The  abandonment  of  the  Premises  by  TENANT;
d) TENANT’s failure to observe and perform any other required provision of this Lease, where such failure  continues  for  thirty  (30)  days  after  written  notice  from  CITY; e) TENANT’s failure to maintain in effect any insurance policy required under Article 9 or failure of any insurance policy carried by TENANT to satisfy any of the terms and conditions of Article 9; f) TENANT’s  making  of  any  general  assignment  for  the  benefit  of  creditors; g) The filing by or against TENANT of a petition to have TENANT adjudged a bankruptcy or of a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of  a  petition  filed  against  TENANT,  the  same  is  dismissed  after  the  filing); h) The appointment of a trustee or receiver to take possession of substantially all of TENANT’s assets located at the Premises or of TENANT’s interest in this Lease, where possession is not restored to TENANT  within  thirty  (30)  days;
i) TENANT’s failure to operate the Premises for 7 or more consecutive days and failure to resume operation within three  calendar  days  of  notice  from CITY  regarding  such  non-operation,  absent PGCC 4-15-26

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13.2 CITY Remedies Upon TENANT Default. In the event of a TENANT Default, CITY, at its option, may  do  one  or  more  of  the  following:
a) Terminate this Lease, enter and take possession of the Premises in accordance with any applicable Laws  governing  such  repossession,  and  remove  TENANT  and  recover  all  damages  caused  by TENANT’s  breach;
b) With or without terminating the Lease, enter and take possession of the Premises in accordance with any  applicable  Laws  governing  such  repossession,  and  remove  TENANT; c) Continue the Lease in effect and recover Rent as it becomes due under California Civil Code Section 1951.4. Acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver  upon  CITY's  initiative  to  protect  its  interest  under  this Lease shall  not  of  themselves constitute  a  termination  of  TENANT's  right  to  possession; d) If CITY terminates the Lease, recover the worth at the time of award of the amount by which the unpaid Rent would have been earned after termination until the time of award exceeds the amount of such Rent loss that TENANT proves could have been reasonably avoided. For purposes of this provision, TENANT agrees that “Rent”  shall mean the  fair market  rental  value  of the  property; e) If CITY terminates the Lease, recover the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such Rent loss that TENANT proves could be reasonably avoided For purposes of this provision, TENANT agrees  that  “Rent”  shall  mean  the  fair  market  rental  value  of  the  property; f) To  appoint  a  receiver  to  take  possession  of  the  Premises,  collect  and  apply  Rent,  perform  any obligation  of  TENANT,  and  exercise  any  remedy  of  CITY  under  this  Lease; g) Bring  action  for  recovery  of  all  amounts  due  from  TENANT; h) Perform  any  obligation  of  TENANT  and  charge  TENANT  the  cost  incurred  to  perform  such obligation;
i) Pursue any other remedies available to CITY under this Lease, at law or in equity.

TENANT  acknowledges  that  its  default  of  any  provision  under  this  Lease  will  cause  CITY  to  incur additional costs and expenses, the exact amounts of which are extremely difficult or impractical to fix at the time  of  TENANT’s  amount  due.  TENANT  further  acknowledges  that  the  negotiated  rent,  being  a Percentage Rent of gross sales, makes it difficult or impractical to establish the amount of Rent owed under the  remainder of the Lease in the event this Lease is terminated. Therefore, if any default by TENANT results in CITY exercising the right to terminate this Lease,  TENANT acknowledges that damages related to Rent owed or lost from the time the Lease is terminated until the Expiration Date of this Lease shall be calculated based on the fair market rental value of the property. TENANT agrees that for the purposes of this agreement only,  the  fair  rental market value of the Lease is eleven thousand  ($11,000) per month.

TENANT further agrees that the anticipated fair market value of the Lease in future years is difficult or PGCC 4-15-26

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TENANT agrees that such calculation is reasonable and not punitive.

The  "worth  at the time  of  award"  of the  amounts  referred to in  clauses  (c),  (d),  and  (e)  above  shall  be computed by allowing interest at the Interest Rate. The "worth at the time of award" of the amount referred to in clause  (f) above shall be computed by discounting such amount at the discount  rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).

13.3 Costs Upon Default and Litigation.  TENANT  shall  pay  to  CITY  as  additional  Rent  all  the expenses incurred by CITY in connection with any Default by TENANT hereunder or the exercise of any remedy by reason of any Default by TENANT hereunder, including court costs and reasonable attorneys’ fees and expenses.

13.4 CITY Default. If CITY fails to perform an obligation of CITY hereunder on or before (a) thirty (30) days after TENANT gives written notice that such obligation has not been performed when due, or (b) if such obligation cannot be reasonably performed in such thirty (30) day period, then such longer period as is reasonably required so long as CITY is diligently pursuing action to cure such obligation. Until such time, CITY shall not be deemed in Default, and TENANT shall have no remedy against CITY for such failure.

If CITY is deemed in Default, TENANT’s sole remedies are to (i) seek specific performance or injunctive relief,  (ii)  file  suit  against  CITY  seeking  damages  directly  resulting  from  such  default,  or  (iii)  seek  a declaratory judgment. TENANT waives and releases its rights, including its right to make repairs at CITY's expense,  under  California  Civil  Code  sections 1932(1),  1941,  and  1942  or  any  similar  Laws  now  or hereinafter in effect.

14. ABANDONED PROPERTY.

If TENANT leaves any personal property in or about the Premises after the Expiration Date or the earlier termination of this Lease, at CITY’s option, (i) such personal property shall become the sole property of CITY without any liability to account for the proceeds from CITY’s disposition, if any, of the property, or (ii) CITY may remove, store, destroy, sell, discard or otherwise dispose of the personal property. In such event, TENANT shall reimburse CITY for all expenses incurred by CITY in such disposition. TENANT hereby waives its rights under Sections 1980 to 1993.09 of the California Civil Code and agrees that CITY has no obligations to TENANT thereunder, including any obligation to pay TENANT any proceeds from any  sale  thereof  or  follow  the  noticing  process  described  therein,  with  respect  to  TENANT’s  personal property left at the Premises after the Expiration Date or earlier termination of this Lease. The provisions of this Section shall survive the Expiration Date or earlier termination of this Lease.

15. PARKING.

During the Term, TENANT shall be entitled to the non-exclusive use of the number and type of parking spaces specified in Section 1.13 of the Basic Lease Provisions within the parking areas of the Common Areas as designated by CITY  from time to time. CITY shall at all times have the  right to establish and modify the configuration of the parking areas of the Common Areas, including changing the type or number of parking spaces.  In addition, CITY may, in its discretion, designate any unreserved parking spaces as reserved  parking  for  other tenants  or CITY  staff members.  TENANT  shall  not  use  any  parking  spaces specifically assigned by CITY to other tenants, if any, or for such other uses such as visitor, handicapped or  other  special  purpose  parking. While TENANT is  entitled to  use the  above-described  parking  spots, TENANT acknowledges that it shares these parking spaces with the Golf Course and that CITY does not guarantee the availability of any parking.

PGCC 4-15-26

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16. CASUALTY.

16.1 CITY’s Rights and Obligations. If the Premises is damaged by fire or other casualty not caused by the  negligence  or willful misconduct  of TENANT  (“Casualty”) to an extent  not exceeding twenty-five percent (25%) of the full replacement cost thereof, and CITY’s contractor estimates in writing delivered to the parties that the damage thereto is such that the Premises may be repaired, reconstructed or restored to substantially its condition immediately prior to such Casualty within one hundred twenty (120) days from the date of such Casualty, and CITY will receive insurance proceeds sufficient to cover the costs of such repairs,  reconstruction and  restoration  (including proceeds  from TENANT and/or TENANT’s insurance which TENANT is required to deliver to CITY pursuant to this Lease), then CITY shall commence and proceed diligently with the work of repair, reconstruction and restoration and this Lease shall continue in full force and effect. If, however, the Premises is damaged to an extent exceeding twenty-five percent (25%) of the full replacement cost thereof, or CITY’s contractor estimates that such work of repair, reconstruction and  restoration  will  require  longer  than  one  hundred  twenty  (120)  days  to  complete  from  the  date  of Casualty,  or CITY will  not  receive insurance  proceeds  (and/or  proceeds  from TENANT, as applicable) sufficient to cover the costs of such repairs, reconstruction and restoration, then CITY may elect to either:
(i) repair, reconstruct and restore the portion of the Premises damaged by such Casualty, in which case this Lease shall continue in full force and effect; or (ii) terminate this Lease effective as of the date which is thirty (30) days after TENANT’s receipt of CITY’s election to so terminate. Under any of the conditions of this Section, CITY shall give written notice to TENANT of its intention to repair or terminate within the later of sixty (60) days after the occurrence of such Casualty, or fifteen (15) days after CITY’s receipt of the estimate from CITY’s contractor or, as applicable, thirty (30) days after CITY receives approval from CITY’s Mortgagee to rebuild.

16.2 TENANT’s Termination Right. In the event of any damage or destruction which (i) is not caused by TENANT or any of the TENANT Parties, (ii) materially affects TENANT’s use and enjoyment of the Premises and (iii) TENANT’s possession and use of the Premises cannot be restored by CITY within one hundred twenty (120) days for reasons other than delays caused by TENANT or any of TENANT’s Parties, TENANT shall have the right to terminate this Lease upon written notice to CITY given within thirty (30) days after the expiration of said 120-day period. TENANT waives the provisions of Sections 1932(2) and 1933(4) of the California Civil Code, or any other similar Law now or hereinafter in effect.

17. CONDEMNATION.

If any legally constituted authority condemns the Premises or if a portion of the Premises greater than or equal to 25% is condemned or the portion to be condemned includes a majority of the kitchen area, this Lease shall terminate on the date the public authority takes possession and TENANT’s obligation to pay Percentage Rent shall cease on such date. All compensation awarded for such taking of the fee and leasehold shall belong to and be the property of CITY without any deduction therefrom for any present or future estate of  TENANT  and  TENANT  hereby  assigns to  CITY  all its  right, title,  and interest to  any  such  award.

However, TENANT shall have the right to recover from the condemning authority, but not from CITY, such compensation as may be awarded to TENANT for goodwill lost by TENANT's business conducted on the Premises,  for moving and  relocation expenses, and  for depreciation to and  removal of TENANT's trade fixtures or personal property on the Premises.

18. NOTICES. Notices required under this Agreement shall be delivered personally or by nationally recognized  overnight  courier  to  CITY  and  TENANT  at  the  addresses  listed  below,  unless  CITY  or TENANT receives proper notice that the other party wishes to change the address listed below.

FOR CITY: FOR TENANT:

Attn: City Manager Attn: Jerry Regester or Gail Grammatico PGCC 4-15-26

Food and Beverage Concession Lease – The Grove at Point Pinos Lease                                    Page   of  20 31 City of Pacific Grove
300 Forest Avenue
Fortunate Fork LLC
4000 Rio Road, Suite 28
Pacific Grove, CA 93950 Carmel, CA 93923
Address Address
(831) 648-3101 831-269-9097 or 831-920-8217
Phone Phone

19. ASSIGNMENT AND SUBLETTING.

19.1 Consent Required. TENANT may not assign this Lease or sublet the Premises in whole or in part without CITY’s prior written consent. An assignment of this Lease or subletting of the Premises in whole or in part without CITY’s prior written consent is voidable by CITY in CITY’s sole and absolute discretion.

19.2 Change in Control Is An Assignment. If TENANT is a partnership or a limited liability company, any cumulative transfer of more than fifty percent (50%) of the partnership or the limited liability company membership  interests,  as  applicable,  shall  constitute  an  assignment  and  shall  require  CITY's  consent.

Without limiting the foregoing, it shall constitute an assignment requiring CITY's consent if: (a) TENANT is a limited partnership and there is a transfer of a general partner interest; or (b) if TENANT is a limited liability company and there is a transfer of any managing membership interest. If TENANT is a corporation, any change in a controlling interest of the voting stock of the corporation is an assignment requiring CITY’s consent.

19.3 Request for Consent. If TENANT seeks to assign this Lease or sublet any part of the Premises, then at least thirty (30) days prior to the proposed effective date of the proposed assignment or sublease, TENANT shall deliver to CITY written notice setting forth the terms and conditions of the assignment or sublease and the identity  of the  proposed assignee  or  subtenant. CITY will then  notify TENANT  of its election  to  do  one  of  the  following:  (i) request  additional  information  about  the  proposed  assignee  or subtenant to  evaluate the  proposal;  (ii)  consent to the  proposed  assignment  or  sublease  subject to  such reasonable conditions as CITY may impose in providing such consent; (iii) refuse such consent, in CITY’s reasonable discretion; or (iv) terminate this Lease as to all or such portion of the Premises which is proposed to be sublet or assigned and recapture all or such portion of the Premises for reletting by CITY.

19.4 TENANT Primarily Liable. If TENANT assigns this Lease or sublets any part of the Premises, TENANT will remain primarily liable for all of TENANT’s obligations under this Lease.

20. RELOCATION WAIVER
TENANT  fully  releases  and  discharges  CITY  from  all  and  any  manner  of  rights,  demands,  liabilities, obligations, claims, or cause of actions, in law or equity, of any kind or nature, known or unknown, now existing or hereinafter arising, which arise from or relate in any manner to the relocation of TENANT’s business operations, or the relocation of any person(s), business(es), or other occupant(s) located on within, on, or about, the Premises following the full or partial termination or expiration of TENANT's leasehold interest in the Premises (collectively, "Relocation Claims"), including waiver and release of any relocation rights  under  Government  Code  sections  7260  et  seq.  ("Relocation Assistance Law").  TENANT acknowledges and agrees that the release and waiver set forth in this Article 20 is material consideration for CITY’s agreement to this Lease, and that, but for this release and waiver, CITY would not have entered into this Lease. By releasing and forever discharging the Relocation Claims, TENANT expressly waives any rights under California Civil Code section 1542, which provides:

PGCC 4-15-26

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21. GENERAL PROVISIONS.

21.1 Governing Law. This Lease shall be governed by, and construed pursuant to, the laws of the State of California. Venue for any litigation between the parties hereto concerning this Lease or the occupancy of the Premises shall be initiated in Monterey County, California.

21.2 City Consent. Unless the context or Law requires otherwise or this Lease explicitly states otherwise, the City Manager shall have the authority to approve any consent TENANT is required to obtain from CITY under this Lease.

21.3 No Presumption Against Drafter. There shall be no presumption against CITY on the basis that the CITY drafted the Lease, and the Parties agree that the Lease was jointly prepared by both Parties.

21.4 Independent Covenants.  TENANT's  covenants to  pay Rent  and  other  sums  due  hereunder  are independent  of  CITY's  covenants  hereunder  and  TENANT  shall  have  no  right  to  withhold  any  such payments on account of any alleged failure by CITY to perform or comply with any of CITY's covenants.

21.5 Calculation of Time for Performance; Extension for Performance Due on Non-Business Days.

Days will be counted by excluding the first day and including the last day. If the last day is a Saturday, Sunday,  or  legal  holiday  as  described  in California Government  Code  §§6700–6701,  then  it  will  be excluded. Any  act  required  by this Lease to  be  performed  by  a  certain  day will  be timely  performed if completed before 5 p.m. Pacific time on that date. If the day for performance of any obligation under this Lease is a Saturday, Sunday, or legal holiday, then the time for performance of that obligation is extended to  5  p.m. local time  on the  first  following  date that is  not a Saturday, Sunday,  or legal  holiday. Unless otherwise expressly  provided in this Lease, all  periods  of time  referenced in this Lease will include all calendar days. For purposes of this Lease, the term “business day” will mean any calendar day other than a Saturday, Sunday, or legal holiday as described in Government Code §§6700–6701. Section 13.1(i) is not subject to this provision, and timelines thereunder shall be calculated by calendar days regardless of the existence of a Saturday, Sunday, or legal holiday occurring during the relevant timeframe.

21.6 Successors and Assigns. Subject to the provisions of Article 19, above, and except as otherwise provided in this Lease, all of the covenants, conditions and provisions of this Lease shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective heirs, personal representatives and permitted successors and assigns; provided, however, no options or other rights which are expressly made personal to the  original TENANT  hereunder  or in any Exhibit attached  hereto  shall  be assignable to  or exercisable by anyone other than the original TENANT under this Lease.

21.7 No Merger. The voluntary or other surrender of this Lease by TENANT or a mutual termination thereof shall not work as a merger and shall, at the option of CITY, either (i) terminate all or any existing subleases, or (ii) operate as an assignment to CITY of TENANT’s interest under any or all such subleases.

21.8 Memorandum of Lease. CITY may elect to have either this Lease or a short form memorandum hereof  recorded  pursuant to the  requirements  of California Government Code  section 37393. TENANT shall cooperate with CITY in executing and acknowledging any such memorandum of lease.

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21.9 Waiver. Any waiver of any terms and conditions of this Lease must be in writing and signed by CITY and TENANT. A waiver of any of the terms and conditions of this Lease shall not be construed as a waiver of any other terms or conditions in this Lease. A failure to enforce a term of this Lease shall not be construed as a waiver of such term or condition.

21.10 Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.

21.11 Time of the Essence. Time is of the essence with respect to performance of every provision of this Lease in which time or performance is a factor.

21.12 Payments and Notices. All Rent and other sums payable by TENANT to CITY hereunder shall be paid to CITY at the address designated in the Basic Lease Provisions, or to such other persons and/or at such other places as CITY may hereafter designate in writing.

21.13 Prior Agreements; Amendments. This Lease, including the Summary and all Exhibits attached hereto, contains all of the covenants, provisions, agreements, conditions and understandings between CITY and TENANT concerning the Premises and any other matter covered or mentioned in this Lease, and no prior agreement or understanding, oral or written, express or implied, pertaining to the Premises or any such other matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. The parties acknowledge that all prior agreements, representations and negotiations are deemed superseded by the execution of this Lease to the extent they are not expressly incorporated herein.

21.14 Accord and Satisfaction. No payment by TENANT or receipt by CITY of a lesser amount than the Rent  payment  herein  stipulated  shall  be  deemed to  be  other than  on account  of the Rent,  nor  shall any endorsement  or  statement  on  any  check  or  any letter  accompanying  any  check  or  payment  as  Rent  be deemed  an  accord  and  satisfaction,  and CITY may  accept  such  check  or  payment  without  prejudice to CITY’s  right  to  recover  the  balance  of  such  Rent  or  pursue  any  other  remedy  provided  in  this  Lease.

TENANT agrees that each of the foregoing covenants and agreements shall be applicable to any covenant or agreement either expressly contained in this Lease or imposed by any statute or at common law.

21.15 Force Majeure.  If  either  party  hereto  shall  be  delayed  or  hindered  in  or  prevented  from  the performance  of  any  act  required  hereunder  by  reason  of  strikes,  lock-outs,  labor  troubles,  inability  to procure materials,  failure  of  power,  governmental moratorium  or  other  governmental  action  or inaction (including, without limitation, failure, refusal or delay in issuing permits, approvals and/or authorizations), injunction  or  court  order,  riots,  insurrection,  war,  terrorism,  bioterrorism,  fire,  earthquake,  inclement weather including rain, flood or other natural disaster or other reason of a like nature not the fault of the party delaying in performing work or doing acts required under the terms of this Lease (but excluding delays due to financial inability) (herein collectively, “Force Majeure Delay(s)”), then performance of such act shall be excused for the period of such Force Majeure Delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. The provisions of this Section shall not apply to nor operate to excuse TENANT from the payment of Rent, or any other payments strictly in accordance with the terms of this Lease.

21.16 Signatures; Counterparts. TENANT shall sign this Lease prior to CITY executing this Lease. This Lease may be executed in any number of counterparts, each of which shall be deemed an original binding on the parties hereto. The exchange of copies of this Lease and of signature pages by electronic means, including PDF e-mail or shall constitute effective execution and delivery of this Lease as to the Parties and may be used in lieu of the original Lease for all purposes. Signatures of the Parties transmitted by electronic means, including PDF, shall be deemed to be their original signatures for all purposes. Neither Party shall PGCC 4-15-26

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21.17 Authority. Any individual  executing this Lease  on  behalf  of CITY  or TENANT  represents  and warrants hereby that he or she has the requisite authority to enter into this Lease on behalf of such party and bind the party to the terms and conditions of this Lease.

21.18 Joint and Several Liability. If more than one person or entity executes this Lease as TENANT: (a) each  of  them  is  and  shall  be  jointly  and  severally  liable  for  the  covenants,  conditions,  provisions  and agreements of this Lease to be kept, observed and performed by TENANT; and (b) the act or signature of, or notice from or to, any one or more of them with respect to this Lease shall be binding upon each and all of the persons and entities executing this Lease as TENANT with the same force and effect as if each and all of them had so acted or signed, or given or received such notice.

21.19 Waste. TENANT shall not commit, or allow to be committed, any waste, damage, or nuisance on the Premises.

21.20 Liens. TENANT shall keep the Premises  free and clear  from any liens arising out of any work performed, material furnished, or obligation incurred by TENANT.

21.21 Claims. TENANT shall notify CITY, in writing, by the end of the next non-holiday weekday, of any occurrences at the Premises which involve any injury to person or property including a full description of the facts, circumstances, nature and results of the occurrence; names and addresses of persons involved; photographs of any injuries or damage; and a map, diagram or plat of the place of the occurrence. TENANT will promptly provide CITY with copies of any claims for damage of any sort, including complaints in any court actions involving such claims. Likewise, if CITY is involved in any claims that affect the Premises or affect the TENANT's use of the Premises, CITY shall promptly notify TENANT in writing.

This space is left blank, intentionally.

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CITY OF PACIFIC GROVE TENANT
By: ____________________________
Matthew Mogensen, City Manager
____________________________
_______________
Date:
____________________________
By: ____________________________
____________
Approved as to Form
By: ____________________________
City Attorney
Date:
____________________________
Date: ____________________________
Approved as to
Fiscal Provisions1
By: ____________________________
(Signature of Secretary, Asst. Secretary,
CFO, or Asst. Treasurer)
By: ____________________________
Finance ____________________________
Date:
____________________________
Date: ____________________________
City Lease Number: ______________________________.
1 Approval by Finance necessary only if financial questions or issues raised in the City’s approval of agreement.

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EXHIBIT A

PROPERTY DESCRIPTION
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EXHIBIT B

RULES AND REGULATIONS

1. TENANT shall not obstruct any sidewalks, halls, passages, exits, entrances, elevators, escalators or stairways of the Building. The halls, passages, exits, and entrances are not for the general public, and CITY shall in all cases retain the right to control and prevent access thereto of all persons whose presence in the judgment of CITY would be prejudicial to the safety, character, reputation and interests of the Building and its tenants provided, that nothing herein contained shall be construed to prevent such access to persons with whom any tenant normally deals in the ordinary course of its business, unless such persons are engaged in illegal activities. TENANT and no employee, invitee, agent, licensee or contractor of TENANT shall go upon or be entitled to use any portion of the roof of the Building unless in connection with the chimney sweep work or otherwise authorized by the City.

2. CITY will furnish TENANT, free of charge, two keys to each door lock in the Premises. CITY may impose a reasonable charge for any additional keys. TENANT may not make or have made additional keys, and TENANT shall not alter any lock or install a new additional lock or bolt on any door or window of its Premises. TENANT, upon termination of its tenancy, shall deliver to CITY the keys of all doors which have been furnished to, or otherwise procured by TENANT, and, in the event of loss of any keys, shall pay CITY the cost of replacing the same or of changing the lock or locks opened by such lost key if CITY shall deem it necessary to make such change.

3. IT cables and equipment, telephone lines and security systems shall not be installed in the Premises except with the approval and under the direction of CITY.

4. CITY reserves the right to exclude from the Building between the hours of 7:00 p.m. and 6:00 a.m., or such other hours as may be established from time to time by CITY, and on legal holidays, any person unless that person is known to the person or employee in charge of the Building and has a pass or is properly identified. CITY shall not be liable  for  damages  for  any  error  with  regard to the  admission to  or  exclusion  from the  Building  of  any  person.

TENANT shall be responsible for all persons for whom it requests passes and shall be liable to CITY for all acts of such persons.

5. TENANT shall close and lock all doors of its Premises and entirely shut off all water faucets or other water apparatus, and, except with regard to TENANT’s computers and other equipment which reasonably require electricity on a 24-hour basis, all electricity, gas or air outlets before TENANT and its employees leave the Premises. TENANT shall be responsible for any damage or injuries sustained by other TENANTs or occupants of the Building or by CITY for noncompliance with this rule.

6. The bathrooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed.

7. TENANT shall not sell, or permit the sale at retail, of newspapers, magazines, periodicals, theater tickets, or any other goods or merchandise to the general public in or on the Premises.

8. TENANT shall not install any radio or television antenna, loudspeaker or other device on the roof or exterior walls of the Building. TENANT shall not interfere with radio or television broadcasting or reception from or in the Building or elsewhere.

9. Except as expressly  permitted in the Lease, TENANT  shall  not mark,  drive  nails,  screw  or  drill into the partitions, window mullions, woodwork or plaster, or in any way deface the Premises or any part thereof, except to install normal wall hangings. TENANT shall repair any damage resulting from noncompliance under this rule.

10. Canvassing, soliciting and distribution of handbills or any other written material, and peddling in and around the Project or the Buildings are expressly prohibited, and each TENANT shall cooperate to prevent same.

11. CITY  reserves the  right to exclude or expel  from the Buildings any person who, in CITY’s judgment, is intoxicated or under the influence of liquor or drugs or who is in violation of any of the Rules and Regulations of the Project.

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12. All garbage and refuse disposal shall be made in accordance with directions reasonably issued from time to time by CITY.

13. TENANT shall not use in any space any hand trucks except those equipped with rubber tires and side guards, or such other material-handling equipment as CITY may approve.

14. TENANT agrees that it shall comply with all fire and security regulations that may be issued from time to time  by  CITY,  and  TENANT  also  shall  provide  CITY  with  the  name  of  a  designated  responsible  employee  to represent TENANT in all matters pertaining to such fire or security regulations. TENANT shall cooperate fully with CITY in all matters concerning fire and other emergency procedures.

15. TENANT assumes any and all responsibility for protecting its Premises from theft, robbery and pilferage.

Such responsibility shall include keeping doors locked and other means of entry to the Premises closed.

16. CITY may waive any one or more of these Rules and Regulations for the benefit of TENANT or any other TENANT, but no such waiver by CITY shall be construed as a waiver of such Rules and Regulations in favor of TENANT or any other such TENANT, nor prevent CITY from thereafter enforcing any such Rules and Regulations against any and all of the TENANTs in the Building.

17. These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of premises in the Buildings.

18. CITY reserves the right to make such other and reasonable Rules and Regulations as, in its judgment, may from time to time be needed for safety, security, care and cleanliness of the Buildings and for the preservation of good order therein. TENANT agrees to abide by all such Rules and Regulations hereinabove stated and any additional rules and regulations which are adopted.

19. TENANT shall be responsible for the observance of all of the foregoing rules by TENANT’s employees, agents, clients, customers, invitees or guests.

20. TENANT shall not without CITY’s consent, which may be given or withheld in CITY’s sole and absolute discretion, receive, store, discharge, or transport firearms, ammunition, or weapons or explosives of any kind or nature at, on or from the Premises or the Buildings.

21. EXCEPT WITH THE PRIOR WRITTEN PERMISSION OF CITY, NO OVERNIGHT PARKING IS PERMITTED AT THE PREMISES. A DAILY FEE OF ($100) SHALL BE CHARGED AS RENT FOR EACH VIOLATION.

22. SMOKING IS NOT PERMITTED ON THE PREMISES OR COMMON AREAS EXCEPT IN SPECIFIC AREAS DESIGNATED BY CITY. A FEE OF ($50) SHALL BE CHARGED AS RENT FOR EACH VIOLATION.

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EXHIBIT C

ONGOING MAINTENANCE SCHEDULE
Type Frequency
Carpet Cleaning Every 6 months
Window Washing Monthly
Ansul System Flush Every 6 months
Grease Trap Quarterly
Hoods ducts Every 6 months
Hoods and Stove Trays Weekly
Auto-Chlor Monthly
Fridge and Freezer Preventative Maintenance Annually
Deep Clean Annually
Interior Paint Touch Ups Annually
Chimney Sweep Annually
Outdoor Furniture Weather Treatment Annually
Bathroom Cleaning/janitorial service At least twice per day or more as needed PGCC 4-15-26

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THE GROVE AT POINT PINOS

EQUIPMENT AND FURNISHINGS LIST AT COMMENCEMENT DATE

LESSOR-OWNED EQUIPMENT AND FURNISHINGS

ITEM QTY DESCRIPTION
1 1 Can Wash Faucet and Hose (outside the building)
2 1 Janitors/Mop Sink in the storage room
3 2 Chemical storage multi-rack shelf in the storage room 4 7 6 dry storage multi-rack shelves and 1 wine rack in the storage room 6 1 Walk-in Refrigerator with 5 multi-rack storage shelves 7 1 Walk-in Freezer with 4 multi-rack storage shelves
8 1 Unit Evaporator (Freezer)
9 1 Unit Evaporator (Refrigerator)
11 1 Snack bar counter
12 1 Worktable with preparation sinks
13 1 Fire suppression system
14 1 Cube ice machine with storage bin
15 1 Employee handwashing sink
16 1 lot Wall mounted shelf and utensil rack
17 1 Clean dish table/utensil sinks and drain boards
18 1 Booster heater
19 1 Type II vapor hood
21 1 Pre-rinse unit
22 1 Soiled dish table
23 1 Wall mounted rack shelf
24 1 Stainless steel wall lining
25 1 Type 1 exhaust ventilator
26 1 Vulcan six burner stove w/ convection oven
27 1 Vulcan six burner stove w/ oven
28 1 Under boiler with oven
29 1 Griddle top range with convection oven
30 1 Salamander broiler
31 2 Deep fat fryer with filter system
32 1 Worktop with base cabinet
33 1 Single section reach-in refrigerator/Freeze
34 1 Refrigerated work counter with cold rail
35 2 Refrigerated prep stations
36 1 lot Wall-mounted shelf
37 1 Chef’s work counter with sink
38 1 11-quart soup well unit
39 1 Waitress counter
40 1 Two-section under counter refrigerator
42 1 Ice/Water station
43 3 Compartment sink with two drain boards
44 1 Bottle cooler
45 1 Drain board
46 1 Handwashing sink
47 1 Drain board
48 1 Serving counter
49 12 Bar Stools
50 3 Round High-Top Tables
51 22 Square Tables
52 2 Outdoor Teak Bench (Matches patio furniture)
54 50 Indoor dining chairs
55 12 Teak Patio Tables – various sizes
56 72 Teak Patio Chairs – various styles
57 5 Child highchair
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EXHIBIT E

CONFIRMATION OF TERM OF LEASE
This Confirmation of Term of Lease is made by and between City of Pacific Grove, a California Municipal  Corporation  and  charter  city  (“CITY”)  and  ____________________________,  a ____________________ (“TENANT”), who agree as follows:

1. CITY  and  TENANT  entered  into  a  Lease  dated  [insert Effective Date:
__________________] (“Lease”), in which CITY leased to TENANT and TENANT leased from CITY the Premises (as defined in the Lease) in the building located at 79 Asilomar Boulevard, Pacific Grove, CA 93950.

2. CITY and TENANT agree to confirm the Commencement Date and Expiration Date of the Term of the Lease as follows:
(a) __________________, 20__, is the Commencement Date; (b) __________________, 20__, is the Expiration Date; and (c) [insert other relevant negotiated dates, add lowercase letter sections as needed]

3. TENANT hereby confirms that the Lease is in full force and effect and:
(a) TENANT has accepted possession of the Premises as provided in the Lease; (b) The improvements (including those identified in Lease Exhibit E) and space required to be furnished by CITY under the Lease have been furnished;

4. The Lease has not been modified, altered or amended, except as follows:
____________________________________________________________________;

5. There are no setoffs or credits against rent and no security deposit has been paid except as expressly provided by the Lease.

6. The provisions of this Confirmation of Term of Lease shall inure to the benefit of, or bind, as the case may require, the parties and their respective successors, subject to the restrictions on transfer and subleasing contained in the Lease.
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Food and Beverage Concession Lease – The Grove at Point Pinos Lease                                    Page   of  31 31

CITY OF PACIFIC GROVE TENANT
By: ____________________________
Matthew Mogensen, City Manager
By: ____________________________
Date: ____________________________
By: ____________________________
Approved as to Form
By: ____________________________
City Attorney
By: ____________________________
Date: ____________________________
Date: ____________________________
Approved as to
Fiscal Provisions2
By: ____________________________
Finance
Date: ____________________________
2 Approval by Finance necessary only if financial questions or issues raised in the City’s approval of agreement.

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ORDINANCE NO. 26-____

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

APPROVING A CONCESSION LEASE BETWEEN FORTUNATE FORK, LLC AND

THE CITY OF PACIFIC GROVE FOR FOOD AND BEVERAGE CONCESSION

SERVICES AT THE POINT PINOS GRILL
FACTS

1. The City owns the Pacific Grove Golf Course Clubhouse, known as Point Pinos Grill, located at 79 Asilomar Boulevard (“PREMISES”).

2. The City operates the PREMISES through a concessionaire agreement for food and beverage services.

3. The PREMISES is improved with a restaurant including a kitchen, a banquet room, a dining room, outdoor patio, two public restrooms, and a snack bar.

4. The previous tenant of the PREMISES vacated the PREMISES on November 23, 2025. In order to maintain business continuity, staff negotiated and entered into a temporary month-to -month management agreement with CourseCo Inc. effective December 1, 2025.

5. The City issued a Request for Proposal (RFP) on December 15, 2025. The RFP closed January 29, 2026 at 2:00 pm. On January 29, 2026, the City received sealed proposals from two entities. A panel of staff reviewed the proposals and interviewed each proposer. As a result of the selection process, the proposal submitted by Fortunate Fork, LLC was selected as the highest rated proposal for their unique qualifications and vision for the PREMISES.

6. The concession lease allows Fortunate Fork, LLC the exclusive use of PREMISES for the sale of food, beverages (including alcoholic beverages) and related services including banquets, and other related events.

7. The concession lease is not an expanded use of the PREMISES.

8. The concession lease allows Fortunate Fork, LLC to change the name of the PREMISES from “Point Pinos Grill” to “The Grove at Point Pinos”.

9. Leasing of the PREMISES will not have a significant effect on the environment and is found exempt from the California Environmental Quality Act (CEQA) per Section 15301 of the CEQA Guidelines which allows for the leasing, licensing, repair, and maintenance of public or private structures.

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

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

SECTION 2. The request for concession agreement hereby is approved, in the form attached hereto, titled AGREEMENT FOR FOOD AND BEVERAGE CONCESSION SERVICES AT THE POINT PINOS GRILL.

SECTION 3. In the event of legal challenge to any aspect of this approval, Fortunate Fork, LLC shall defend and save harmless city against any claim, judgment or liability arising out of such challenge. Fortunate Fork, LLC may, in the event of such challenge and as an alternative to its obligation to defend and save harmless, terminate the concession agreement.

SECTION 4. As a condition of the approval hereby made, Fortunate Fork, LLC shall not only execute the concession lease, but shall also sign and acknowledge the findings, terms and conditions of this ordinance on a line to be provided below by the city clerk.

SECTION 5. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement effect this Ordinance.

SECTION 6. Severability. If any provision, section, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 7. In accord with Article 15 of the City Charter, this ordinance shall become effective on the thirtieth (30th) day following its passage and adoption [or insert other date].

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

AYES:

NOES:

ABSENT:

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APPROVED:
_______________________________
NICK SMITH, Mayor
ATTEST:
_______________________________
SANDRA KANDELL, City Clerk
DATED:_______________________
APPROVED AS TO FORM:
_______________________________
ALEX LORCA, City Attorney
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Agenda No. 12 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joe Amelio, Councilmember
MEETING DATE: April 15, 2026
SUBJECT: Amend Council Policy 000-25 Regarding Code of Conduct for Council, Boards, and Commissions
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Adopt a Resolution amending City Council Policy 000-25 regarding the Code of Conduct for Council, Boards, and Commissions.

DISCUSSION
Council Policy 000-25 (“Policy”) concerns guidelines on public decorum, norms and expectations, and conduct during meetings with respect to the City Manager, Staff, and with the public. The existing version of the Policy was weakened from a more robust version by a previous Council.

The proposed revisions to the Policy will apply to elected and appointed City officials while exercising their duties of office and ensure they perform those duties in a manner that will instill public confidence and trust in the fair operation and integrity of City government. This action is to clarify rules and procedures consistent with how cities across the State are working to maintain decorum during public meetings as well as a means to increase efficiency and productivity.

The purpose of this revised Policy is to provide guidelines for City Council, Board, Commission, and Committee members to conduct business in an orderly, consistent, respectful, and fair manner. The provisions are not intended to limit the legal authority of the City Council, Boards, Commissions, or Committees; rather it is intended to reinforce the expectation that elected and appointed officials are expected to treat each other, staff, and the general public with dignity, respect and fairness. It is expected that all elected and appointed members will adhere to the Policy and that violations of the Code of Conduct may result in some consequence.

The following conduct and decorum policies were reviewed by the former Assistant City Attorney Heidi Quinn and Human Resources for reference in developing the draft conduct policy for the City of Pacific Grove.

City of Salinas
City of Palo Alto
City of Sacramento
City of Riverside
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OPTIONS

1. Take no action.

2. Provide alternative direction.

FINANCIAL IMPACT:

There is no fiscal impact associated with this report.

GOAL ALIGNMENT: Not Applicable.

Attachments
000-25 Code of Conduct Policy - Redlined
00-25 Code of Conduct - Clean
Proposed Resolution re 000-25 Code of Conduct
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City of Pacific Grove, California
City Council Policy
Policy Governing Policy No. Effective Date Page
Code of Conduct 000-25 November 3, 2021 1 of 2

PURPOSE
The City of Pacific Grove City (City) Council adopts this Code of Conduct to asensure all elected and appointed officials (Officials), while exercising their duties of their office, conduct themselves in a manner that will instill public confidence and trust in the fair operation and integrity of City government.

CODE OF CONDUCT POLICY

1. General Norms and Expectations.

A. Officials will work for the common good of the residents of the City Pacific Grove (City), not for personal interest.

B. Officials will serve as a model of leadership and civility to the community.

C. Officials will asensure fair and equal treatment of all persons, claims, and transactions coming before the City Council and its various Boards and Commissions.

2. General Conduct.

Officials shall:

A. Make the public feel welcome and not be partial, prejudiced or disrespectful toward the public.

B.A. Treat each other, staff, and members of the public with dignity, courtesy, and respect, valuing all opinions and being tolerant of new and different ideas while encouraging creativity and innovation. Agree that inappropriate behavior is derogatory and damages the perception of the City.

C.B. Avoid negative comments that could offend members of the public and other Officials during public meetings, on social media, through electronic communications, in the media, and all other times.

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Code of Conduct–Council Policy No. 000-25 Page 2
D. Follow through on commitments and be accountable to each other, including the commitment to start and end meetings on time, work from an agenda, and be present, attentive, and prepared.

E. C. Keep comments clear, concise, and on-topic to maximize opportunities for all to express themselves.

F. D. Continuously strive to improve how members work as a team.

G. E. Place clear and realistic demands on staff resources and time when requesting action.

H. At all times be in compliance with all state and locally mandated ethics and reporting requirements.

I. Project a positive image of the City when dealing with other third parties (e.g., other public agencies, organizations, and media)
J. Show tolerance and respect for other parties’ opinions and issues and, if necessary, agree to disagree.

K. Represent official policies or positions of the Council or Boards and Commissions when designated as delegates of a legislative body.

L. F. Provide only non-confidential, non-privileged background information to the media. Officials shall not discuss or go “off the record” to discuss, confidential or privileged information pertaining to closed sessions, or attorney-client privileged or attorney work product communications, including personnel, litigation, or real property negotiations.

3. Conduct During Meetings.

The Officials shall:

A. Treat each other and everyone with courtesy and refrain from inappropriate behavior and derogatory comments.

B. Inform the Mayor or Chair of their desire to speak and be acknowledged by the Mayor or Chair before speaking.

C. Work together to preserve order and decorum during meetings.

D. Not delay or interrupt the proceedings or the peace of the City Council, Board or Commission, nor disturb any Council Member, Board Member or Commissioner while speaking, by conversation or otherwise.

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Code of Conduct–Council Policy No. 000-25 Page 3
E. Attempt to build consensus on an item through an opportunity for dialogue, but when this is not possible, the majority vote shall prevail and the majority shall show respect for the opinion of the minority, and vice versa.

F. Once a vote is taken on an issue, Officials will support the direction taken by the City Council, Board or Commission

4. City Council Conduct with City Manager and Staff.

The Mayor and Council Members shall:

A. Speak directly to the City Manager or Deputy City Manager on issues and concerns, who will then address or delegate the matter to appropriate staff.

B. Treat staff professionally and refrain from publicly criticizing individual employees or employee groups during public meetings, on social media, in the media, and all other times.

C. Avoid involvement in personnel issues, including hiring, firing, disciplining, and other personnel matters, except during City Council Closed Sessions regarding City Council appointed staff and City Council Closed Sessions regarding labor negotiations.

D. Request answers to questions on City Council agenda items from the City Manager, City Attorney, or Deputy City Manager prior to the subject Council meeting, whenever possible.

E. All other inquiries regarding City-related business and activities may be made through the “administrative service” in conformance with Article 21 of the City of Pacific Grove Charter, Section 2.04.110(a)(1) of the Municipal Code and City Council Policy 000-31 Council Inquiry.

5. City Council Compliance with General Norms and Expectations A. Censure. Upon a majority vote of the full City Council, any City Council member found to violate any provision of this Policy shall be subject to censure at a Public Hearing held before the City Council. Notice of such hearing shall be provided to the full Council.

B. Council Members who intentionally and repeatedly fail to follow proper conduct could be reprimanded or formally censured by the Council.

Adopted November 3, 2021, Resolution 21-031
Adopted April 15, 2026, Resolution 26-XXX
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0.11", No widow/orphan control, Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers, Tab stops: 0.5", Left
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City of Pacific Grove, California
City Council Policy
Policy Governing Policy No. Effective Date Page
Code of Conduct 000-25 November 3, 2021 1 of 2

PURPOSE
The City of Pacific Grove City (City) Council adopts this Code of Conduct to ensure all elected and appointed officials (Officials), while exercising the duties of their office, conduct themselves in a manner that will instill public confidence and trust in the fair operation and integrity of City government.

CODE OF CONDUCT POLICY

1. General Norms and Expectations.

A. Officials will work for the common good of the residents of the City, not for personal interest.

B. Officials will serve as a model of leadership and civility to the community.

C. Officials will ensure fair and equal treatment of all persons, claims, and transactions coming before the City Council and its various Boards and Commissions.

2. General Conduct.

Officials shall:

A. Treat each other, staff, and members of the public with dignity, courtesy, and respect, valuing all opinions and being tolerant of new and different ideas while encouraging creativity and innovation. Agree that inappropriate behavior is derogatory and damages the perception of the City.

B. Avoid negative comments that could offend members of the public and other Officials during public meetings, on social media, through electronic communications, in the media, and all other times.

C. Continuously strive to improve how members work as a team.

D. Place clear and realistic demands on staff resources and time when requesting action.

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Code of Conduct–Council Policy No. 000-25 Page 2
E. Officials shall not discuss or go “off the record” to discuss, confidential or privileged information pertaining to closed sessions, or attorney-client privileged or attorney work product communications, including personnel, litigation, or real property negotiations.

3. Conduct During Meetings.

A. Officials shall Treat each other and everyone with courtesy and refrain from inappropriate behavior and derogatory comments.

4. City Council Conduct with City Manager and Staff.

The Mayor and Council Members shall:

A. Speak directly to the City Manager or Deputy City Manager on issues and concerns, who will then address or delegate the matter to appropriate staff.

B. Treat staff professionally and refrain from publicly criticizing individual employees or employee groups during public meetings, on social media, in the media, and all other times.

C. Avoid involvement in personnel issues, including hiring, firing, disciplining, and other personnel matters, except during City Council Closed Sessions regarding City Council appointed staff and City Council Closed Sessions regarding labor negotiations.

D. Request answers to questions on City Council agenda items from the City Manager, City Attorney, or Deputy City Manager prior to the subject Council meeting, whenever possible.

E. All other inquiries regarding City-related business and activities may be made through the “administrative service” in conformance with Article 21 of the City of Pacific Grove Charter, Section 2.04.110 (a)(1) of the Municipal Code and City Council Policy 000-31 Council Inquiry.

5. City Council Compliance with General Norms and Expectations A. Censure. Upon a majority vote of the full City Council, any City Council member found to violate any provision of this Policy shall be subject to censure at a Public Hearing held before the City Council. Notice of such hearing shall be provided to the full Council.

B. Council Members who intentionally and repeatedly fail to follow proper conduct could be reprimanded or formally censured by the Council.

Adopted November 3, 2021, Resolution 21-031
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Code of Conduct–Council Policy No. 000-25 Page 3
Adopted April 15, 2026, Resolution 26-XXX
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RESOLUTION 26-XXX

A RESOLUTION OF THE CITY OF PACIFIC GROVE CITY COUNCIL AMENDING COUNCIL POLICY 000-25 “CODE OF CONDUCT” FOR ALL ELECTED AND

APPOINTED OFFICIALS

FINDINGS

1. The current Code of Conduct, Policy 000-25, for the City of Pacific Grove City Council and Board and Commission members is not sufficient.

2. Adopting a more clear and comprehensive Code of Conduct Policy will ensure all elected and appointed officials, while exercising their duties of office, perform in a manner that will instill public confidence and trust in the fair operation and integrity of City government.

3. The purpose of the Code of Conduct is to provide guidelines for City Council, Board, and Commission members to conduct business in an orderly, consistent, respectful, and fair manner.

4. It is expected that all elected and appointed members will adhere to the Code of Conduct and that violations of the Code of Conduct may result in some consequence.

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

1. The Council determines that each of the Findings set forth above is true and correct, and by this reference incorporates those Findings as an integral part of this Resolution.

2. The Council authorizes adoption of this Resolution to update the Code of Conduct Policy.

3. The City Council Code of Conduct Policy is hereby approved as attached to this Resolution, which by this reference is incorporated as set forth in its entirety.

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

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 15th day of April, 2026, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

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4910-0184-0030, v. 2
2 DATED________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

ALEX J. LORCA, City Attorney
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Agenda No. 13 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Alex J. Lorca, City Attorney
MEETING DATE: April 15, 2026
SUBJECT: Process for Submitting Applications to Fill Vacant Council Seat CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Direct the City Manager to advise potential applicants that they may submit an application to the City Clerk by the close of business on May 1, 2026 for the position of City Councilmember and that the City Manager return to the City Council at its regular meeting on May 20, 2026 for a review of the applications and the appointment of an applicant to the position of City Councilmember and for the appointed applicant to be sworn in by the City Clerk.

DISCUSSION
Councilmember Walkingstick has resigned from the City Council effective at the end of the regular City Council meeting held on April 1, 2026.

City Charter Article 12 provides as follows regarding the filling of a vacancy on the City Council:
“A vacancy in an elective office shall be filled by appointment by the Council, such appointee to hold office until the next general municipal election and until a successor is elected and qualified.

Such successor shall be elected for the unexpired term of his or her predecessor at the general municipal election and until his successor is elected and qualified. Such successor shall be elected for the unexpired term of his or her predecessor at the general municipal election next succeeding such appointment. Should the Council fail to fill any such vacancy within thirty days after the same occurs, then it shall be filled by appointment by the Mayor; provided, however, that if the offices of a majority, or more, of the Council shall become vacant, then the City Clerk shall call a special election at once to fill the vacancies for the unexpired terms, and the same shall be conducted substantially in the manner provided for general municipal elections.” The City Clerk prepared the attached Application for persons who are interested in applying for consideration of appointment to the position of City Councilmember.

Note that Pacific Grove Municipal Code section 2.70.010(c), provides in relevant part, “Mid-term vacancies in a city council seat elected at-large shall be filled from the city at-large.” Councilmember Walkingstick was elected at an at-large election before the City transitioned to by-district elections.

Therefore, pursuant to section 2.70.010(c), filling the mid-term vacancy cannot be limited to applicants residing in Councilmember Walkingstick’s electoral district.

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In the meantime, at the May 6th Council meeting, staff will present a recommendation for the process of filing the vacancy created by Councilmember Walkingstick’s resignation.

OPTIONS
Provide alternative direction to the City Manager regarding the process for the appointment of an applicant to the position of City Manager.

FINANCIAL IMPACT:

There is no fiscal impact as a result of this item.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Application for CC Vacancy
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M

CITY OF PACIFIC GROVE
www.cityofpacificgrove.org
Application for Appointment to City Council
Persons interested in being appointed to serve on the City Council of the City of Pacific Grove are invited to complete the following application. This appointment will expire upon the election and qualification of a successor at the General Election set for November 3, 2026. (City Charter, Article 12 The Council)
Name:

Street Address:

City: State: ZIP Code:

Residence Telephone Number: Work Telephone Number: E-Mail Address:

Brief Description of Background and Qualifications (Additional Information May Be Attached on Separate Sheets and Attachment of Resume is Desirable):

NOTE: The Application must be submitted by email on or before 5:00 PM on May 1, 2026, to City Clerk Sandra Kandell at [email protected] A copy of all Applications are confidential until attached to an Agenda Report for consideration at a City Council meeting currently scheduled for May 20, 2026 with the Applicant’s personal information redacted.

I hereby certify that I am a registered voter of the City of Pacific Grove.

Signature of Applicant:

Print Name:

Date:

FOR CITY USE ONLY / APPOINTMENT TO CITY COUNCIL
Date of Appointment: ____________________
End of Term: ___________________________
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Agenda No. 14 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: April 15, 2026
SUBJECT: Update Regarding Montage Health's Community Work CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the report.

Attachments
PPT
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Mike McDermott, MD, MBA
President and CEO, Montage Health
Pacific Grove City Council Meeting — April 15, 2026
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Before Montage Health
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Our Conversation
 Access to care
 Economic and workforce vitality
 Partnering for our community
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Access to Care: Primary, Specialty, and Urgent Care
Montage Medical Group
30+ specialties
230,000 patient visits annually
MoGo Urgent Care
3 locations across the peninsula
48,000 patient visits annually
NEW: Montage Orthopedics
& Sports Medicine
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Access to Care: New Life-Saving Stroke Care
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Economic Vitality: Workforce Recruitment & Retention
Healthcare Careers Academy MPC & CSUMB partnerships Clinical Careers Program
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Economic Vitality:

Home Loan Program
 Making homeownership more
attainable for our employees
 Supporting long-term workforce
stability
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Working Together for a Healthier Pacific Grove
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Thank you
Questions?
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