Pacific Grove City Council
June 3, 2026

CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, June 3, 2026, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA The Council will not begin consideration of any item on this agenda later than 10:00 p.m. unless such consideration is approved. Any items on this agenda not considered this evening will be continued to a future meeting.

Copies of the agenda packet are available for review at the Pacific Grove Library, in the Finance Department, and electronically at www.cityofpacificgrove.org/agendas. The most effective method of communication with the City Council is by sending an email to [email protected]. In order to allow the City Council adequate time to review communication related to an agenda item, it is recommended that the communication be sent no later than 9:00 AM on the day prior to the City Council meeting. Public comments received through this email address by noon on the day of the meeting will be posted with the corresponding agenda item.

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

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

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

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

THE PUBLIC MAY ALSO VIEW THE MEETING ON PENINSULA CHANNEL 25.

JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://www.cityofpacificgrove.org/Zoom_CC
Please click here for directions to dial into the meeting audio.

AGENDA

CALL TO ORDER
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PLEDGE OF ALLEGIANCE: Councilmember Poduri

1. APPROVAL OF AGENDA

2. PRESENTATIONS
A. Service Award: Katie Clark, 5 Years PAGE 6
Reference: Matthew Mogensen, City Manager
Recommended Action: Receive the presentation.

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

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Other

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

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

A. Written General Public Comment

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

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business A. Minutes the May 20, 2026 City Council Regular Meeting Reference: Sandra Kandell, City Clerk PAGE 8
Recommended Action: Approve the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines PGCC 6-3-2026

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

6. RESOLUTIONS
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business or 12. New Business A. GreenWaste FY 26/27 Rate Increase PAGE 18
Reference: George Fuerst, Environmental Program Manager Recommended Action: Adopt a Resolution affirming the accuracy of GreenWaste Recovery rate increase, per the franchise agreement, of 2.19% for FY 26/27.

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

7. ORDINANCES
Items pulled from this section will be placed under 10. Public Hearings A. Second Reading of an Ordinance Amending the Salary Classification Schedule to add Information Technology Analyst Classification PAGE 32
Reference: Leticia Livian, Human Resources Director
Recommended Action: Hold second reading and adopt an ordinance to amend the salary classification schedule to add Information Technology Classification.

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

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business or 12. New Business

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 11. Unfinished and Ongoing Business or 12. New Business A. Monterey Regional Waste Management District MOU Regarding California Senate Bill 1383 Compliance PAGE 39
Reference: George Fuerst, Environmental Program Manager Recommended Action: Authorize a Memorandum of Understanding (MOU) between Monterey Regional Waste Management District and the City regarding assistance with California Senate Bill 1383 compliance.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 12. New Business PGCC 6-3-2026

REGULAR AGENDA

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

A. Selection of Appointment to Fill City Council Vacancy and Administration of Oath of Office Reference: Sandra Kandell, City Clerk PAGE 56
Recommended Action:

Select an applicant to fill the City Council vacancy, pursuant to the process outlined in Council Policy 26-032;

1. Direct the City Clerk to administer the Oath of Office to the newly appointed Councilmember.

2. CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Artificial Intelligence (AI) Policy PAGE 88
Reference: Joyce Halabi, Deputy City Manager
Recommended Action:

1. Adopt a Resolution approving the Artificial Intelligence Policy, Council Policy 200-7

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

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Ordinance Amending City Municipal Code Chapter 2.16 (Purchasing System and Procedures) Reference: Fred Marsh, Administrative Services Director Recommended Action: PAGE 103
Introduce and hold the first reading of an Ordinance amending Municipal Code Chapter

2.16 (Purchasing System and Procedures)

1. Direct that a summary of a proposed ordinance be published as approved by the City Attorney.

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

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS
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14. FULL PRESENTATIONS

15. CLOSED SESSION

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

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Agenda No. 2 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Matthew Mogensen, City Manager
MEETING DATE: June 3, 2026
SUBJECT: Service Award: Katie Clark, 5 Years
CEQA: {CEQA}

RECOMMENDATION
Receive the presentation.

Attachments
Katie Clark
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Agenda No. 5 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: June 3, 2026
SUBJECT: Minutes the May 20, 2026 City Council Regular Meeting CEQA: {CEQA}

RECOMMENDATION
Approve the minutes.

Attachments
Draft Minutes 5-20-26
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1 DRAFT MEETING MINUTES

CITY COUNCIL

REGULAR MEETING
Wednesday, May 20, 2026, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA APPEARING REMOTELY:

Councilmember Chaps
Poduri 676 N. Michigan
Avenue Chicago, IL 60611
JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://www.cityofpacificgrove.org/Zoom_CC

CALL TO ORDER
Mayor Pro Tem Amelio called the meeting to order at 6:00 p.m. Present in Chamber Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, and Rau. Appearing remotely: Councilmember Poduri. Absent: Mayor Smith. Councilmember Poduri arrived at the meeting at approximately 6:25 p.m.

PLEDGE OF ALLEGIANCE:

Councilmember Rau led the pledge of allegiance.

1. APPROVAL OF AGENDA
Action: Mayor Pro Tem Amelio requested Regular Agenda item 13A be heard prior to Regular Agenda item 12C.

Action: Upon motion by Councilmember Rau and seconded by Councilmember Garfield, Council voted 4-0-2, Mayor Smith and Councilmember Poduri absent, to approve the Regular Meeting Agenda as modified.

2. PRESENTATIONS
A. Meritorious Conduct Award to Justin Harrell
Action: Received the presentation of a Meritorious Conduct Award to Justin Harrell awarded to citizens of the community who display courage in assisting the Fire Department and/or their fellow citizens. This award was presented by the City Council and the Fire Chief.

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

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

4. GENERAL PUBLIC COMMENT
General public comment received from one unnamed speaker, Andy Kubica, Karl DRAFT PGCC 6-3-2026

2 Lindstrom, and Inge Lorentzen Daumer.

A. Written General Public Comment

CONSENT AGENDA
Action: Consent Agenda Item Nos. 9B and 9C were pulled and considered immediately following the Consent agenda.

Action: Upon motion of Councilmember Rau and seconded by Councilmember Garfield, Council voted to approve the Consent Agenda as modified.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the May 6, 2026 City Council Regular Meeting Action: Approved the minutes.

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

6. RESOLUTIONS

7. ORDINANCES

8. REPORTS – INFORMATION ONLY
A. Monterey-Salinas Transmit Minutes for April 6, 2026
Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Notification of the extension of Permit No. AP-TPD-UP 19-0363 for the American Tin Cannery Hotel Project located at 109/125 Ocean View Boulevard and 124 Central Avenue.

Action: Received notification of the extension of Permit No. AP-TPD-UP 19-0363 for the American Tin Cannery Hotel Project located at 109/125 Ocean View Boulevard and 124 Central Avenue.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Check Register, Purchase Order Report, and Financial Status Report - April 2026 Action: Received the Check Register, Purchase Order Report, and Financial Status Report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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3 D. FY26 Q3 Quarterly Investment Report
Action: Received the report.

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

9. REPORTS – REQUIRING ACTION
A. 2026 9-1-1 Service Agreement with the County of Monterey Reference: Casey J. Day, Chief of Police
Action: Accepted and filed the report and directed the City Manager to execute the Agreement for 911 Emergency Communications Services.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Letter of Support for AB 1942 (Bauer - Kahan) - E-Bike: Registration & License Plates This item was pulled and heard immediately following the Consent Agenda.

Reference: Casey Day, Chief of Police
Recommended Action: Approved issuing a Letter of Support for AB 1942 (Bauer - Kahan) with Amendments, E-Bikes: Registration & License Plates CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Oppose Assembly Bill 1383 (McKinnor): Public Employees’ Retirement Benefits This item was pulled and heard immediately following the Consent Agenda.

Reference: Chaps Poduri, Councilmember
Action: Approved a formal position of "Oppose" for Assembly Bill 1383 and authorized the Mayor to sign and transmit an opposition letter.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES A. Architectural Review Board Meeting Minutes: February 10, 2026 Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Task Force on Diversity, Equity and Inclusion Meeting Minutes; April 13, 2026 Action: Received the minutes.

CEQA: Proposed Ordinance not subject to CEQA based on Guideline Sections:
15060(c)(3) and 15378; 15060(c)(2); 15061(b)(3); and 150308 *****

9.B. Letter of Support for AB 1942 (Bauer - Kahan) - E-Bike: Registration & License Plates Public comment received from Dave Sundy.

Action: Upon motion by Councilmember Rau and seconded by Mayor Pro Tem Amelio, Council voted to approve issuing a Letter of Support for AB 1942 (Bauer - Kahan) with Amendments, E-Bikes: Registration & License Plates.

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4 Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

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

9.C. Oppose Assembly Bill 1383 (McKinnor): Public Employees’ Retirement Benefits Public comment received from Mike Gibbs.

Action: Upon motion by Councilmember Rau and seconded by Mayor Pro Tem Amelio Council voted to approve a formal position of "Oppose" for Assembly Bill 1383 and authorized the Mayor to sign and transmit an opposition letter.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

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

REGULAR AGENDA

11. PUBLIC HEARINGS
A. Ordinance Amending the Salary Classification Schedule to add Information Technology Analyst Classification
No public comment received.

Action: Upon motion by Councilmember Rau and seconded by Mayor Pro Tem Amelio, Council voted to introduce and hold a first reading of an ordinance to amend the salary classification schedule to add Information Technology Classification; and directed that a summary of a proposed ordinance be published as approved by the City Attorney.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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5 B. Downtown Business Improvement District (BID) Program for Fiscal Year 2026-27 No public comment received.

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

1. Hold a public hearing to determine that majority protest to the annual assessment were not received.

2. Adopt Resolution No. 26-012 approving the annual report, approving the Program of Expenditures, assessing the levy, and appointing an advisory board for the Downtown Business Improvement District for Fiscal Year 2026-27

3. Authorize the City Manager to execute an agreement allowing the Pacific Grove Chamber of Commerce to administer the BID budget.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Hospitality Improvement District (HID) program for Fiscal Year 2026-27 No public comment received.

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

1. Hold a public hearing to determine that a majority protest to the annual assessment was not received.

2. Adopt Resolution No. 26-013 approving the annual report and program of expenditures, assessing the levy and appointing an Advisory Board for the Hospitality Improvement District for Fiscal Year 2026-27.

3. Authorize the City Manager to execute an agreement allowing the Pacific Grove Chamber of Commerce to administer the HID budget.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
D. Master Fee Schedule for Fiscal Year 2026-27
Public comment received from Mike Gibbs, Kris Lindstrom, and Inge Lorentzen Daumer.

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6 Action: Upon motion by Councilmember Garfield and seconded by Councilmember Rau, Council voted to approve Resolution No. 26-014 adopting the City's FY 2026-27 Master Fee Schedule, including the annual Consumer Price Index (CPI) adjustment and other changes as directed by Council.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
E. Appeal of Architectural Permit (AP), Historic Preservation Permit, and Coastal Development Permit (CDP) 25-0186 for 689 Mermaid Avenue (APN 006-085-001- 000)
Mayor Pro Tem Amelio opened the public hearing.

No ex parte communications were reported.

Associate Planner Garrett McCown presented to Council.

Appellant Jeanne Byrnes and Paul Simpson were provided 10 minutes to present to Council.

Public comment received from Cindy Belacci and Dean Kasparian.

Mayor Pro Tem Amelio closed the public hearing.

Action: Upon motion by Councilmember Garfield and seconded by Mayor Pro Tem Amelio, Council voted to reverse the action of the Planning Commission and approve Architectural Permit (AP), Historic Preservation Permit (HPP) (Resolution No. 26-015), and Coastal Development Permit (CDP) 25-0186 (Resolution No. 26-016), subject to the findings, recommended conditions, and Class 1 and 31 Categorical Exemptions (CEQA Guidelines Sections 15301, Existing Facilities, and 15331, Historical Resource Restoration and Rehabilitation) and direct that the appeal fee be refunded to the appellant/applicant.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Categorical Exemption, CEQA Guidelines 15331, Historical Resources DRAFT PGCC 6-3-2026

7 Restoration/Rehabilitation

12. UNFINISHED AND ONGOING BUSINESS
A. Re-Consider the Draft City Council Policy Entitled Vacancy in Elective Office and Appointment.

No public comment received.

Action: A motion by Mayor Pro Tem Amelio to adopt a Resolution approving the City Council Policy entitled Vacancy in Elective Office and Appointment failed for lack of a second.

Action: Upon motion by Councilmember Poduri and seconded by Mayor Pro Tem Amelio Council voted to adopt a Resolution approving the City Council Policy entitled Vacancy in Elective Office and Appointment with the amendment to change the last bullet point under “Appointment Day” to be a main bullet point and not a sub bullet.

Motion failed 2-3-1 with the following roll-call vote:

AYES: Mayor Pro Tem Amelio and Poduri.

NOES: Councilmembers Garfield, McDonnell and Rau.

ABSENT: Mayor Smith.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted to direct staff to return to Council June 3, 2026 to provide options as discussed.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Ownership Analysis and Control Analysis for Cannabis Business License Applications Public comment received from Nico Enea, Valentia Valentine Piccinini, David Ericks, Ephraim, David Dela Paz, Karl Lindstrom, Inge Lorentzen Daumer, and Kris Lindstrom.

Action: Upon motion by Councilmember Poduri and seconded by Councilmember Garfield, Council voted to receive the Ownership and Control Analysis and directed staff to proceed with the Lottery.

Motion carried 4-1-1 with the following roll-call vote:

AYES: Councilmembers Garfield, McDonnell, Poduri, and Rau.

NOES: Mayor Pro Tem Amelio.

ABSENT: Mayor Smith.

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8 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Artificial Intelligence (AI) Policy During the Approval of the Agenda, this item was moved to be heard following Regular Agenda item 13A. Due to time constraints, this item was continued to the Council’s June 3, 2025 meeting.

Reference: Joyce Halabi, Deputy City Manager
Recommended Action:

1. Adopt a Resolution approving the Artificial Intelligence Policy, Council Policy 200-7.

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

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

13. NEW BUSINESS
A. Fiscal Year 2026/27 Capital Improvements Program During the Approval of the Agenda, this item was moved and heard prior to Regular Agenda item 12C.

No public comment received.

Action: Upon motion by Councilmember Rau and seconded by Councilmember Garfield, Council voted to

1. Receive and approve the update, including the two additional projects, to the Fiscal Year 2026/27 Capital Improvement Plan (CIP),

2. Approve the commitment of $750,000 from General Fund reserves for the Pier at Lover Point to act as a match for grant opportunities, and

3. Approve Resolution No. 26-017 adopting the FY 2026/27 Senate Bill 1 Project List.

Motion carried 5-0-1 with the following roll-call vote:

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

NOES: None.

ABSENT: Mayor Smith.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Garfield, Council voted to continued Regular Agenda item 12C to the Council’s June 3, 2026 Regular Meeting.

12.C. Artificial Intelligence (AI) Policy Due to time constraints, this item was continued the Council’s June 3, 2025 Regular Meeting.

Reference: Joyce Halabi, Deputy City Manager
Recommended Action:

3. Adopt a Resolution approving the Artificial Intelligence Policy, Council Policy 200-7.

4. Alternatively, take other action related to this item.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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9 14. FULL PRESENTATIONS
A. Update on Monterey Regional Airport
Public comment received from Inge Lorentzen Daumer.

Action: Council received the presentation.

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

15. CLOSED SESSION

ADJOURNMENT
Council adjourned the regular meeting at 10:05 p.m.

Respectfully Submitted,
Sandra Kandell
City Clerk
Approved by Mayor: ____________________________________________Date________________ Attest by City Manager: _________________________________________Date_________________ DRAFT PGCC 6-3-2026

Agenda No. 6 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: George Fuerst, Environmental Program Manager
MEETING DATE: June 3, 2026
SUBJECT: GreenWaste FY 26/27 Rate Increase
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Adopt a Resolution affirming the accuracy of GreenWaste Recovery rate increase, per the franchise agreement, of 2.19% for FY 26/27.

DISCUSSION
Background
In 2012, the City, participating with other members of the Monterey Regional Waste Management District, issued a competitive request for proposals for waste collection services. In2014, the City and GreenWaste Recovery Inc. (GWR) entered into a 15-year Franchise Agreement providing GWR with exclusive franchise rights to provide garbage, recycling, and organics collection to residential and commercial sectors within the City.

In accordance with the Franchise Agreement, rates are adjusted annually throughout the 15-year term using various inflationary indices, actual tonnage, and changes in the tipping fees at the Monterey Regional Waste Management District, as defined in section 8.2 and Exhibit E of the franchise agreement. Rate Adjustments are calculated using one of the 4 methodologies:

1. Multi-Index (E1 of franchise agreement)

2. Cost-Based (E2 of franchise agreement)

3. Extraordinary (Section 8.3 of franchise agreement)

4. Mutually agreed upon alternative method
a. Sector-Based Weighted Average Rate Adjustment
Previous Year Rate Increases
Table 1 presents an overview of the yearly rate increases. A narrative with background is provided below.

Table 1: Rate Increases To Date
Rate
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Fiscal Year Rate
Period Rate Increase Methodology
FY15/16 1 N/A Initial Year of the Agreement
FY16/17 2

3.4% (RES)

4.3% (COM)

5.2% (RO)
Sector-Based Weighted Average
FY17/18 3

4.8% (Res)

4.1% (Com)

2.1% (RO)
Sector-Based Weighted Average
FY18/19 4

7.6% (Res)

6.7% (Com)

7.3% (RO)
Sector-Based Weighted Average
FY19/20 5 0% No annual rate increase applied due to GWR late submission
FY20/21 6 31.04% Compound of Cost Based on RP5 (20.93%) and Multi-Index in RP6 (8.36%)
FY21/22 7

2.5%

2.54% SB 1383

0.7% increase to the solid waste fees

1.8% for SB 1383 (July, 2021)

2.54% additional SB 1383 increase
FY 22/23 8 1.54% Multi-Index based rate adjustment, uniform for all services
FY 23/24 9 2.77% Multi-Index based rate adjustment, uniform for all services
FY 24/25 10 2.99% Multi-Index based rate adjustment, uniform for all services
FY 25/26 11 3.80% Multi-Index based rate adjustment, uniform for all services
FY 26/67 12 2.19% Multi-Index based rate adjustment, uniform for all services
– Key: RES (residential), Com (commercial), RO (roll off container) Fiscal Years 15/16 through 18/19
The rates for Fiscal Year (FY) 15/16 were set upon execution of the Franchise Agreement. For FY16/17, FY17/18 and FY18/19 the City and GWR agreed that a Sector-Based Weighted Average was the best approach to determine adjustments for all rates charged to customers (Residential, Commercial and Roll-off).

Fiscal Year 19/20
For FY19/20, there was no annual rate increase applied. The omission was due to GWR requesting a Cost-Based Rate Adjustment (CBRA). The Franchise Agreement requires that the City Council make a good faith effort to affirm annual rate adjustments. Nevertheless, due to the lengthy CBRA process in FY 19/20, which extended well into FY20/21, no rates were changed.

Fiscal Year 20/21
The FY20/21 rate increase was 31.04%. This rate increase was calculated based on the following factors, which harnessed both a cost-based rate adjustment and index-based rate adjustments:

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- The CBRA showed the assumptions for revenue and expenses provided by the previous garbage provider were not accurate for all jurisdictions. The total revenue from all jurisdictions for the first five years of the original franchise agreement was close to initial assumptions. However, some jurisdictions had lower revenue and some higher revenue than what was expected for the expenses included in the rate base. GWR is required to “true-up” revenues and expenses in each individual jurisdiction’s franchise agreement during the CBRA process. Jurisdictions with lower revenue had to raise rates to cover the cost of services provided.

- The franchise agreement allows cost increases at the disposal facilities to be passed through to garbage rates. The only disposal facility utilized by GWR to fulfill its obligation with the City is two miles north of the City of Marina and operated by the Monterey Regional Waste Management District (MRWMD).
- The original franchise agreement included a provision for a $40 per ton credit for recyclable material collected in the blue bins and processed at the Monterey Regional Waste Management District Material Recovery Facility (MRF).

At that time, changes in the recycling market caused revenue for the sale of recyclable materials from the MRF to be severely impacted. Low contamination requirements resulted in the $40 per ton credit being eliminated in 2020 and a new charge of $40 per ton for recycled material effective July 1, 2020. The $40 charge is still below the regional average tipping fee for garbage.

That rate increase covered two years. It included the impact of transitioning from receiving $40 per ton to paying $40 per ton of recycled material and representing a 4% increase in the previous year’s garbage rates.
- In addition to the rate increases based on the services prescribed in the Franchise Agreement, GWR has provided additional services and accommodations, which were not included in the original Franchise Agreement. Providing additional services to meet demand resulted in a significant increase last year.

Fiscal Year 21/22
The FY21/22 rate increase was 2.5%, calculated in accordance with the Franchise Agreement.

The FY21/22 increase was comprised of two components:

A 0.7% increase to the solid waste fees. This is the minimum amount to increase the solid waste fees such that the City complies with its franchise agreement with GWR. This amount was determined using the Multi-Index Rate Adjustment method.

1. A 1.8% increase to ensure sufficient funds for the implementation of the new requirements related to California Senate Bill 1383 which take effective, January 1, 2022, which will require collection of organics for all sectors.

2. In addition to the annual increase of 2.5%, a rate increase of 2.54% took effect January 1, 2022, to cover the additional costs related to SB 1383.

Fiscal Year 22/23
The FY22/23 rate increase was 1.54%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 23/24
PGCC 6-3-2026

The FY23/24 rate increase was 2.77%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 24/25
The FY24/25 rate increase was 2.99%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 25/26
The FY 25/26 rate increase was 3.80%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 26/27
A 2.19% increase for FY 26/27 has been calculated in accordance with the Franchise Agreement using the Multi-Index Rate Adjustment method.

The table below is a representation for a typical increase for residential services.

Pacific Grove Rate Adjustment
Current rates (RP11) New rate (RP12)
Adjustment N/A 2.19%
Residential 32- gallon rate $37.39 $38.21
Residential 64- gallon rate $56.01 $57.24
Impact to Residents
The rate increase of 2.19%, uniformly applied for all services, equals an additional $0.82 per month for 32-gallon and $1.23 per month for 64-gallon container service.

The rate increase is scheduled to go into effect on July 1, 2026.

OPTIONS
Do nothing. Not recommended as rate increases are prospective, and GWR can back charge any delays in rate adjustments to July 1st.

FINANCIAL IMPACT:

The FY 26/27 proposed rate adjustment would not affect City expenses as City waste is collected at no charge under the terms of the Franchise Agreement. The rate adjustment would result in a proportional adjustment of the City’s Franchise and Litter Abatement Fees. The Franchise Fee for FY 26/27 is 16% of gross receipts, and the Litter Abatement Fee is 3.95% of gross receipts.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Pacific Grove RP12 Final Report
Resolution for Solid Waste Fee Increase 2026
PGCC 6-3-2026

HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
May 22, 2026
Daniel Gho
Public Works Director/Deputy City Manager
City of Pacific Grove
Sent via email
Subject: Review of GreenWaste Recovery’s 2026-27 Rate Request – Final Report Dear Daniel Gho,
HF&H Consultants, LLC (HF&H) was retained by ReGen Monterey (ReGen), formerly the Monterey Regional Waste Management District, to assist with a review of GreenWaste Recovery’s (GWR) request for an adjustment to customer rates, effective July 1, 2026, submitted to the City of Pacific Grove (City) on April 1, 2026. This report presents our findings and recommendations.

Executive Summary
HF&H’s review of GWR’s Rate Period 12 (RP12) rate request to the City resulted in the following outcomes:

HF&H has determined a 2.19% increase is appropriate, based on the following components:
• 3.50% inflationary increase in labor-related costs
• 2.30% inflationary increase in vehicle-related costs (excluding fuel) • Fuel rate held flat, as set by ReGen
• 2.30% inflationary increase in other costs
• Depreciation held flat, per the Agreement
• 1.45% overall increase in net processing costs due to increases in per-ton rates, slightly offset by decreases in recyclable and organic tonnages • 1.54% increase in disposal costs due to an increase in per-ton disposal rate, slightly offset by a decrease in tonnage
Refer to Figure 1 on the following page for the impact to sample residential rates.

PGCC 6-3-2026

Daniel Gho
May 22, 2026

Figure 1: Example Rate Impact of Adjustment
Background
In 2012, the City—participating with other members of ReGen—issued a competitive request for proposals for collection services and entered into the new Agreement with GWR effective July 1, 2015. The Agreement provides for the following, related to the adjustment of rates:
• Rates are to be adjusted annually throughout the term of the Agreement, using various inflationary indices, actual tonnage, and changes in the tipping fees at ReGen, unless either the City or GWR request a Cost-Based Rate Adjustment (CBRA). • The City and GWR may mutually agree upon alternative approaches to structuring rates without amending the Agreement (Section 8.2.D).
• During the CBRA review in RP5, a number of issues surrounding the process for setting rates and the resulting rate relationships amongst sectors and materials was identified.

As such, the City and GWR have negotiated an amendment to the prescribed methodology for the CBRA and index adjustments to not alter rate relationships between service sectors and material types.
• Through negotiations of the amendment and as a result of the desire to maintain current rate relationships between sectors and service levels, the City and GWR have prescribed a uniform rate adjustment to be applied to all sectors.

Rate Calculation Review

HF&H SCOPE OF WORK
HF&H performed this review of the rate request in accordance with Exhibit E1 for the indexbased rate adjustment. These procedures included:

1. Review of the rate request for completeness and compliance with the procedures contained in Exhibit E1 of the Agreement.

2. Review for mathematical accuracy and logical consistency to determine that the rate request is mathematically correct, the rows and columns of numbers add down and across as intended, and the stated assumptions were, in fact, used. Determine that the rate request is internally consistent and any summary schedules agree to the supporting schedules and worksheets.

3. Verify the inclusion of the franchise fee calculation in the adjustment.

Current Rates
(RP11) RP12
Adjustment 2.19%
Residential 32-gallon rate $37.39 $38.21
Residential 64-gallon rate $56.01 $57.24
PGCC 6-3-2026

Daniel Gho
May 22, 2026

4. Verify contract compliance regarding:

A. The indices used in the adjustment.

B. The tip fees reported for the disposal and processing rate components.

C. The use of quarterly reported tonnage data and allocations among agencies. A detailed audit of tonnage and allocations of tonnage reported by GWR was not a part of this scope of work. HF&H discussed GWR’s allocation methodology, which appears reasonable and consistent with standard industry practices.

D. Any changes in governmental fees on the fee component of the rates, and the accurate application of the resulting percentage changes to the various rate components in the rate schedule approved by the City through the Agreement.

REVIEW OF RATE REQUEST
RP12 Application
HF&H reviewed the rate application for RP12. The results of the RP12 calculation, performed in accordance with the methodology set forth in Exhibit E1 of the amendment, are presented in Figure 2 on the following page.

PGCC 6-3-2026

Daniel Gho
May 22, 2026

Figure 2: City of Pacific Grove Application of Index-Based Adjustments to RP12 RP 12
Annual Cost of Operations
Labor-Related Costs $1,001,014 1.035 $1,036,050
Vehicle-Related Costs 185,382 1.023 189,646
Fuel Costs 162,426 1 162,426
Other Costs 404,108 1.023 413,403
Direct Depreciation 266,606 N.A. 266,606
Total Allocated Costs - Labor, Vehicle, Fuel & Other 982,965 1.023 1,005,573 Total Allocated Costs - Depreciation & Start-Up 48,820 N.A. 48,820 Total Annual Cost of Operations $3,051,322 $3,122,524
Profit $365,612 OR=89.3 $374,143
Pass-Through Costs
Disposal Costs $505,463 Tons*Tip Fee $513,248
Curbside Supplemental (9,844) 1.00 (9,844)
Recycling Processing Costs 96,833 Tons*Tip Fee 97,557
Residue Processing Costs Tons*Tip Fee - -
Yard Trimmings Processing Costs 168,865 Tons*Tip Fee 172,396 Food Waste Processing Costs 23,423 Tons*Tip Fee 23,351
C&D Processing Costs Tons*Tip Fee - -
Interest Expense 78,899 N.A. 78,899
Direct Lease Costs - N.A. -
Total Allocated Costs - Lease 62,256 N.A. 62,256
Total Pass-Through Costs $925,895 $937,863
Total Costs before Agency Fees $4,342,829 $4,434,530
Agency Fees/Payments
Franchise Fee $877,338 16.00% $896,558
Litter Abatement Fee 216,593 3.95% 221,338
ReGen MOU Costs 44,792 Actual 51,060
Other Adjustments (as needed from time to time)
Adjustment from Tip Fee Estimates $1,810 N.A. -
Total Calculated Costs $5,483,361 $5,603,486

2.19%
RP 11 Adjustment Factor
PGCC 6-3-2026

Daniel Gho
May 22, 2026

Review of GWR Costs
There are four major components to GWR’s rate application: (1) the calculation and application of the inflationary indices, as prescribed in the Agreement; (2) the disposal and/or processing component; (3) the Agency Fees; and (4) other one-time adjustments.

There are three indices used in the index adjustment: Consumer Price Index (CPI), fuel index, and labor index. The annual percentage change in each index is used to project the coming year’s cost for the line items to which they apply.

HF&H has reviewed, and GWR has confirmed, the accuracy of each of these indices. It is noted that the fuel index remains unchanged, as reported by ReGen management staff.

Review of Disposal and Processing Components
Collected tonnage for Calendar Year 2024 was used for the RP12 review, in accordance with the amendment. The disposal and processing components also consider the tipping fees charged by ReGen to project anticipated disposal and processing costs at ReGen. Figure 3 below outlines the changes in the City’s disposal and processing costs for each material type— based on ReGen’s tip fees—effective July 1, 2026, which have been incorporated into our RP12 review.

Figure 3: Impact of ReGen Tip Fee Changes
Note: Values may not be exact due to rounding.

Review of Fee Component
HF&H ensured that the fee component of each rate matches the contractual percentage of 16% for franchise fees and 3.95% for litter abatement fees, which are remitted to the City by GWR.

Additionally, rate application review costs and other identified ReGen costs totaling $51,060 were added as a one-time adjustment. These costs cover the rate review, franchise management, staff time, public education and outreach, as well as other expenses related to SB 1383.

NEW RATES
Attached hereto is a table of all new rates recommended for RP12 based on the adjustments described in this report (Attachment A). HF&H recommends adopting these rates by resolution, effective July 1, 2026.

Material 2025 Tons Projected Per Ton
Tip Fee RP 12 Costs
A B A x B
Solid Waste 6,038 $85.00 $513,248
Recycling 2,269 43.00 97,557
Yard Trimmings 3,193 54.00 172,396
Food Waste 320 73.00 23,351
PGCC 6-3-2026

Daniel Gho
May 22, 2026

* * * * *
We would like to express our appreciation to GWR staff for their assistance and cooperation in this process. Should you have any questions, please call me at (925) 977-6964 or [email protected].

Sincerely,

HF&H CONSULTANTS, LLC
Rob Hilton Dave Hilton
President Senior Project Manager
PGCC 6-3-2026

Attachment A
City of Pacific Grove Rates Effective July 1, 2026
Service Level
Curbside 32 Gallon
Curbside 64 Gallon
Curbside 96 Gallon
One Way 32 Gallon
One Way 64 Gallon
One Way 96 Gallon
Backyard 32 Gallon
Backyard 64 Gallon
Backyard 96 Gallon
Notes:

See Exhibit B1 for specific service availability
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 32-Gallon Cart $33.17 $66.04 $98.83 $132.59 $166.04 $201.45 64-Gallon Cart $73.22 $116.11 $158.99 $177.47 $264.05 $350.65 96-Gallon Cart $104.65 $196.54 $289.04 $381.53 $474.01 $529.14 1-Cubic Yard Bin $153.06 $308.82 $465.65 $571.17 $702.43 $833.67 2-Cubic Yard Bin $305.07 $563.66 $822.40 $1,131.21 $1,323.12 $1,700.21 3-Cubic Yard Bin $458.12 $818.65 $1,170.64 $1,615.83 $1,995.82 $2,412.26 4-Cubic Yard Bin $559.91 $1,123.71 $1,612.09 $2,179.49 $2,595.37 $3,359.23 6-Cubic Yard Bin $814.89 $1,608.31 $2,310.68 $3,143.11 $3,957.67 $4,545.01 8-Cubic Yard Bin $1,119.96 $2,171.97 $3,133.07 $4,274.34 $5,280.80 $6,245.22 2-Cubic Yard Compactor $360.87 $675.26 $989.80 n/a n/a n/a 3-Cubic Yard Compactor $541.83 $986.03 $1,421.74 n/a n/a n/a 4-Cubic Yard Compactor $671.50 $1,346.90 $1,946.86 n/a n/a n/a Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $18.31 $29.02 $39.74 $44.36 $66.02 $87.66 96-Gallon Cart $26.18 $49.14 $72.26 $95.38 $118.49 $132.29 1-Cubic Yard Bin $38.26 $77.21 $116.42 $142.80 $175.60 $208.42 2-Cubic Yard Bin $76.26 $140.92 $205.60 $282.81 $330.77 $425.06 3-Cubic Yard Bin $114.54 $204.66 $292.65 $403.96 $498.96 $603.07 4-Cubic Yard Bin $139.97 $280.92 $403.02 $544.87 $648.84 $839.81 6-Cubic Yard Bin $203.73 $402.08 $577.66 $785.79 $989.42 $1,136.25 8-Cubic Yard Bin $279.98 $542.99 $783.27 $1,068.59 $1,320.20 $1,561.31 2-Cubic Yard Compactor $60.99 $110.38 $159.80 n/a n/a n/a 3-Cubic Yard Compactor $91.63 $158.87 $223.95 n/a n/a n/a 4-Cubic Yard Compactor $109.45 $219.86 $311.42 n/a n/a n/a Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $54.92 $87.08 $119.24 $133.09 $198.05 $262.99 96-Gallon Cart $78.50 $147.42 $216.79 $286.14 $355.52 $396.87 1-Cubic Yard Bin $114.79 $231.62 $349.23 $428.39 $526.82 $625.25 2-Cubic Yard Bin $228.79 $422.74 $616.79 $848.42 $992.33 $1,275.16 Residential Solid Waste Collection Rates
Solid Waste Recycling Organics
$38.21 Included Included
$57.24 Included Included
$76.13 Included Included
$62.33 Included Included
$81.36 Included Included
$100.25 Included Included
$70.36 Included Included
Commercial/Multi-Family Solid Waste Collection Rates
Frequency
Commercial/Multi-Family Recycling Collection Rates
Frequency
Commercial/Multi-Family Food Waste Collection Rates
$89.40 Included Included
$108.28 Included Included
Frequency

PGCC 6-3-2026

Attachment A
City of Pacific Grove Rates Effective July 1, 2026
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $54.92 $87.08 $119.24 $133.09 $198.05 $262.99 96-Gallon Cart $78.50 $147.42 $216.79 $286.14 $355.52 $396.87 1-Cubic Yard Bin $114.79 $231.62 $349.23 $428.39 $526.82 $625.25 2-Cubic Yard Bin $228.79 $422.74 $616.79 $848.42 $992.33 $1,275.16 3-Cubic Yard Bin $343.61 $613.99 $877.98 $1,211.87 $1,496.87 n/a 4-Cubic Yard Bin $419.92 $842.79 $1,209.04 $1,634.60 $1,946.54 n/a 6-Cubic Yard Bin $611.16 $1,206.23 $1,733.01 $2,357.35 $2,968.27 n/a 8-Cubic Yard Bin $839.96 $1,628.98 $2,349.79 $3,205.74 $3,960.59 n/a Service Level MSW REC YT C&D
10 YD $456.42 $456.42 $456.42 $456.42
20 YD $634.60 $634.60 $634.60 $634.60
30 YD $812.80 $812.80 $812.80 $812.80
40 YD $990.98 $990.98 $990.98 $990.98
Per Ton $106.18 $53.72 $67.46 $106.18
Service Sector Charge Per Event
Cart Rental - All Sizes RES
32 Gallon Cart Rental - Recycle RES
Cart Replacement RES
Re-Delivery or Re-Start RES
Cart Cleaning RES
Non-Scheduled Collection RES
Cardboard Sticker COM
Difficult to Service Cart COM
Difficult to Service Bin COM
Locking Bin COM
Cart Replacement COM
Cart Cleaning COM
Bin Swap - Cleaning or Repainting COM
Bulky - Recyclable RES/COM
Bulky - Non Recyclable RES/COM
Bulky - Event RES/MFD
Covered Box RO
Driver Time per Hour RO
Dry Run or Relocation RO
Extra Days RO
*Note: All rates charged monthly unless stated otherwise $14.48
$1.75
$5.26
$87.81
$5.26
$5.26
$105.37
$43.90
$43.90
$33.37
Additional Service Rates
Commercial/Multi-Family Yard Trimmings Collection Rates Frequency
Roll-Off Collection Rates (Per Pull)
Material
$105.37
$131.72
$43.90
$131.72
$35.13
$43.90
$52.69
$131.72
$193.19
$43.90

PGCC 6-3-2026

RESOLUTION NO. 26-xxx

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC

GROVE AFFIRMING ACCURACY OF RATES TO BE CHARGED BY
GREENWASTE RECOVERY EFFECTIVE JULY 1, 2026 FOR

COLLECTION OF FRANCHISED SOLID WASTE, RECYCLING, AND

ORGANICS

FINDINGS

1. The City of Pacific Grove (City) entered into a franchise agreement with GreenWaste Recovery, Inc. (GWR) on August 20, 2014 for solid waste, recycling, and organics collection services for the period of August 1, 2015 through July 31, 2030; and,

2. Section 8.3 of the Franchise Agreement describes the process for an adjustment to maximum customer rate, when there is a change in law or a City-directed change in scope and,

3. The application of the formulas required by the Franchise Agreement results in a rate increase of 2.19% for every service level; and,

4. HF&H Consultants has reviewed GWR’s calculation of the rate adjustments and finds the calculations to be accurate and consistent with the methodology and requirements of the franchise agreement; and,

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

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

1. The Council determines that each of 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 City Council of the City of Pacific Grove hereby affirms the following rate adjustments are accurate and appropriate to be charged by GWR under the franchise agreement, effective July 1, 2026: 2.19% Index Based Rate Adjustment to all singlefamily residential, commercial solid waste, recycling, and organics rates; and, all rolloff rates.

PGCC 6-3-2026

3. To the extent that this Resolution results in the imposition of any fees, rates, or charges for services or facilities in connection with the solid waste system providing services within the City’s territorial limits, those charges are adopted pursuant to California Health and Safety Code section 5471.

4. This Resolution shall become effective July 1, 2026, following passage and adoption thereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 3rd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

ALEX LORCA, City Attorney
PGCC 6-3-2026

Agenda No. 7 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Leticia Livian, Human Resources Director
MEETING DATE: June 3, 2026
SUBJECT: Second Reading of an Ordinance Amending the Salary Classification Schedule to add Information Technology Analyst Classification
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Hold second reading and adopt an ordinance to amend the salary classification schedule to add Information Technology Classification.

DISCUSSION
There were no changes made between the first and second readings of this ordinance. The City Clerk caused a summary of the ordinance to be published on May 28, 2026.

The City’s salary schedule identifies job classifications that have been approved by Council (e.g., Administrative Technician) and the hourly rates of pay for each classification at each step authorized by the Personnel Rules. Pursuant to Charter Article 25 and the Pacific Grove Municipal Code (PGMC) Section 4.20.280, approval and amendment to the salary schedule must be adopted by the Council.

The City’s Information Technology (IT) functions have historically been supported by a Management Analyst classification. This classification is broadly defined and utilized across multiple departments within the City, encompassing a wide range of administrative and analytical duties that are not specific to information technology.

The Management Analyst assigned to the IT unit resigned. This vacancy provides the City with an opportunity to evaluate the classification structure supporting IT operations and better align job duties with the specialized technical nature of the work performed.

Information Technology functions within the City have evolved significantly and now require specialized technical expertise, including systems administration, cybersecurity, network management, and support for enterprise applications. The current Management Analyst classification does not adequately reflect these technical responsibilities, which may limit the City’s ability to effectively recruit and retain qualified candidates.

Creating a dedicated Information Technology Analyst classification will:

PGCC 6-3-2026

More accurately reflect the technical duties and responsibilities of the position Better meet the needs of the City by incorporating the true responsibilities, duties and level of expertise demanded of this important position
Align the City’s job classifications with industry standards and comparable public agencies Improve recruitment outcomes in a highly competitive labor market, particularly given the City’s proximity to Silicon Valley
Support retention by offering a compensation structure consistent with market conditions To ensure the proposed classification is competitively positioned, the City engaged Bryce Consulting Services to conduct a salary survey. The survey results indicate that a revised salary range is necessary to remain competitive within the regional labor market for IT professionals.

The proposed hourly salary range for IT Analyst is outlined below.

Classification Step Step Step Step Step Step Step
238-000 1A 2B 3C 4D 5E 6F 7G
Information Technology Analyst $48.80 $51.24 $53.81 $56.50 $59.32 $61.55 $63.85 The creation of a dedicated Information Technology Analyst classification represents a strategic opportunity to modernize the City’s workforce structure, better align job duties with industry standards, and enhance the City’s ability to attract and retain qualified IT professionals. Staff recommends adoption of the proposed classification and salary range.

OPTIONS

1. Take no action.

2. Provide alternative direction to staff.

FINANCIAL IMPACT:

The proposed classification and salary adjustment are expected to result in an estimated additional annual cost of approximately $19,451 to the General Fund for base salary, along with an estimated $14,503 in additional costs for benefits and payroll taxes. These costs will be offset by a reduction in the budget for IT contract services in the General Fund and incorporated into the Fiscal Year 2026–2027 budget. Recruitment for this position is anticipated to be completed in July of this year, at which time the associated costs will begin to be realized.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Classification Description
Ordinance
PGCC 6-3-2026

City of Pacific Grove
Established Date: 5/20/2026
Information Technology Analyst Pacific Grove 1 of 3

INFORMATION TECHNOLOGY ANALYST
SUMMARY: Under general supervision, performs professional level work in administering, securing, maintaining, implementing, analyzing, testing and managing the City’s information systems, networks and related infrastructure; works with users to analyze, troubleshoot and resolve system issues, and implements system improvements in the areas of software development, database administration, security administration, network and server administration, and service desk management. This role ensures reliable and secure technology services for staff and the public, supports compliance with regulatory requirements, and contributes to modernization initiatives that enhance operational efficiency and public service delivery.

ESSENTIAL FUNCTIONS: -- As defined under the Americans with Disabilities Act, essential functions may include any of the following representative duties, knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees may be assigned duties which are not listed below; reasonable accommodations will be made as required. The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following:
• Consult and collaborate with departments, vendors and technical staff to assess technology needs, define requirements, and implement projects, upgrades, and improvements. • Analyze and solve operating problems, make system modifications as necessary, evaluate and make recommendations regarding requests from departments related to information systems.
• Administer maintain and test computer systems, networks, firewalls, switches, and enterprise services ensuring optimal performance, reliability, and compliance with regulatory requirements.
• Provide advanced technical support and troubleshooting for complex system and network issues; provide systems support including analysis, diagnosis, maintenance and troubleshooting of hardware and software.
• Provide systems support for the City’s network and server infrastructure, including analysis, diagnosis, maintenance and troubleshooting; design, develop, test, implement, troubleshoot, monitor and maintain LAN and WLAN network, server systems and wireless equipment to measure performance, identify deviations from existing service levels and implement timely solutions to issues adversely affecting network performance and systems. • Develop and document procedures, system designs, and security measures. • Respond to service requests and incidents, deliver service desk coverage and on-call support as needed.
• Monitor and improve IT operations through automation, scripting, and best practices. • Assist in planning and implementing system security, backup, and recovery procedures. • Maintain audit-ready documentation, stay current with emerging technologies and recommend improvements to enhance efficiency, security, and business continuity, • Forecast technology needs of City programs, including but not limited to, PC replacements, and printer replacements.
• Evaluate operations and activities of customer support, recommend improvements and modifications, prepare various reports on operations and activities. • Provide responsive and professional customer service and technical support to end-users PGCC 6-3-2026

Information Technology Analyst Pacific Grove 2 of 3
via onsite, phone or remote access tools.
• Assist end-users through training, documentation, and guidance on hardware, software, and applications.
• Perform other duties as assigned.

TYPICAL QUALIFICATIONS:

Education, Training, and Experience Guidelines:
• Minimum Qualifications: Bachelor’s degree in Computer Science, Information Technology AND minimum 2 years of experience in IT systems administration and network management within a professional business or municipal environment, OR an equivalent combination of education, training, and experience.

Preferred certifications but not required:
• Systems & Infrastructure: CompTIA Network+, CompTIA Server+ • Microsoft Environment: Microsoft 365 Certified: Administrator Associate; Microsoft Certified:

Windows Server
Knowledge of:
• Enterprise Microsoft environments (Windows Server, Active Directory, Entra ID, Microsoft 365) across on-premises, cloud, and hybrid infrastructure (Azure/AWS). • Principles and practices of network architecture and operations, including routing, switching, wireless, firewalls, segmentation, secure remote access, and core protocols (TCP/IP, DNS, DHCP, VLANs, VPNs).
• Enterprise security and compliance frameworks (NIST CSF, CIS Controls, Zero Trust), including IAM (MFA, RBAC, SSO), endpoint protection, patch management, SIEM/log monitoring, and vulnerability remediation.
• Backup and disaster recovery strategy aligned to defined RPO/RTO objectives. • Automation and infrastructure management using PowerShell/Bash and Infrastructure as Code (Terraform, Ansible).
• Systems architecture and operating systems (Windows, macOS, Linux), MDM/UEM, unified communications, and A/V systems.
• Public-sector compliance standards (ADA/WCAG, records retention, audit readiness) and strong analytical, documentation, and collaboration skills. • Applicable laws, codes, policies and standards.
• Principles and techniques of troubleshooting for desktop computers, software, and printers in a network environment.
• Principles and practices of software development, testing and deployment. • Skills in:
• Analyzing operational requirements and implementing secure, cost-effective technology solutions aligned with public-service mandates and statutory obligations. • Administering and securing servers, endpoints, identity platforms, networks, and communications systems, ensuring configuration integrity, performance optimization, and compliance.
• Managing incidents, service requests, change/release processes, and vendor escalations in alignment with ITIL practices and mission-critical priorities. • Training or instructing users in the use of computer equipment and operating procedures.

PGCC 6-3-2026

Information Technology Analyst Pacific Grove 3 of 3
• Implementing and enforcing IAM controls, network segmentation, secure data sharing, and interagency connectivity.
• Monitoring infrastructure health and security using observability and log management tools; maintaining CMDB accuracy and audit-ready documentation. • Planning, testing, and maintaining backup and disaster recovery capabilities. • Automate operational workflows and infrastructure deployments; maintain version-controlled runbooks and technical documentation.
• Evaluating and recommending technical solutions.
• Produce reports and recommendations; collaborate across departments, public safety stakeholders, vendors, and partner agencies.
• Communicating clearly and concisely, both orally and in writing. • Fostering effective working relationships with all levels of staff.

LICENSE AND CERTIFICATION REQUIREMENTS:

A valid California State Driver’s License in good standing is required for driving on City business.

PHYSICAL DEMANDS AND WORKING ENVIRONMENT:

Work is performed in a standard office environment. Able to lift 25 lbs. at a time and be able to stand for periods at a time. May be required to work extended or irregular hours. Some field work may be required.

CLASS HISTORY
Class/Job Code: 238-000
Bargaining Unit: Management Employee Association (MEA)
EEO4 Category: Professional
Established Date: 5/20/2026
Worker’s Comp Code: Office/Administrative
FLSA Status: Exempt
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ORDINANCE NO. 26 -

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

AMENDING THE SALARY CLASSIFICATION SCHEDULE TO ADD

INFORMATION TECHNOLOGY ANALYST CLASSIFICATION
Findings

1. The City has historically utilized the classification of Management Analyst within the Information Technology (IT) unit, a broad classification used across multiple departments; and

2. The recent resignation of the Management Analyst assigned to the IT unit provides the City with an opportunity to evaluate and update its classification structure; and

3. The duties performed within the IT unit require specialized technical knowledge and skills that are not adequately reflected in the Management Analyst classification; and

4. The creation of an Information Technology Analyst classification will better align job duties with industry standards and improve the City’s ability to recruit and retain qualified candidates in a highly competitive labor market; and

5. The City engaged Bryce Consulting Services to conduct a salary survey using the City’s established comparator agencies and the results of the salary survey support the establishment of a competitive salary range for the new classification; and

6. The City Council desires to amend the Salary Schedule to add the classification of Information Technology Analyst and establish the associated salary range: and

7. Amendment to the salary schedule classification plan must be adopted by the City Council pursuant to Pacific Grove Municipal Code (PGMC) Section 4.20.280; and

8. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment pursuant Section 15378.

Ordinance

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

SECTION 1. The foregoing findings of the City Council are incorporated into this Ordinance as if set forth in full.

SECTION 2. The position classification plan approved and adopted by the City Council pursuant to PGMC § 4.20.280 is amended to add the Information Technology classification with the following salary schedule:

Classification - Hourly Rates Step
1A
Step
2B
Step
3C
Step
4D
Step
5E
Step
6F
Step
7G
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Job Code 238-000
Information Technology Analyst 48.80 51.24 53.81 56.50 59.32 61.55 63.85 SECTION 3. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement this Ordinance.

SECTION 4. Upon approval at second reading, this ordinance shall be given an effective date of June 7, 2026.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 3rd day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

ALEX LORCA, City Attorney
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Agenda No. 9 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: George Fuerst, Environmental Program Manager
MEETING DATE: June 3, 2026
SUBJECT: Monterey Regional Waste Management District MOU Regarding California Senate Bill 1383 Compliance.

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

RECOMMENDATION
Authorize a Memorandum of Understanding (MOU) between Monterey Regional Waste Management District and the City regarding assistance with California Senate Bill 1383 compliance.

DISCUSSION
The Monterey Regional Waste Management District's (District) seven (7) partner agencies who utilize GreenWaste Recovery (GWR), the County of Monterey, and the City of Monterey have been working together since 2020 to implement Senate Bill 1383 “Short-Lived Climate Pollutants (SLCP): Organic Waste Methane Emissions Reductions”.

This coordination is facilitated by the District’s Technical Advisory Committee (TAC) comprised of staff from each Member Agency, the three haulers in the District’s service area, and District staff. The Member Agencies determined that the District has the expertise and resources necessary to implement shared activities on the Member Agencies’ behalf and requested that the District incur costs to provide these activities. The Member Agencies have agreed to reimburse the District for proportionate shares of certain designated annual costs incurred by the District for these activities under a Memorandum of Understanding (MOU) between the Monterey Regional Waste Management District and its Member Agencies aegarding assistance with aompliance with California Senate Bill 1383.

In October 2021, June 2022, August 2023, June 2024, and again in June 2025 the City Council approved an MOU which provides the framework for how this group will move forward regarding workload division and cost allocation. The District took the lead on many of the actions needed to implement SB 1383 in coordination with the District’s TAC.

New for FY 26/27 are some activities that were previously funded by CalRecycle Local Assistance Grant Program (LAGP) that now must be funded directly by the Member Agencies. This includes mandated programs for procurement of organic material (compost), commercial and multi-family organics outreach, and increased funding for increased public education to continue with media spending for the Sort with Heart campaign. Overall, the expired grant funds and other cost increases have necessitated a year-over year cumulative increase of 7% to achieve compliance. This shared PGCC 6-3-2026

funding strategy remains an immense value for the Member Agencies to achieve compliance with SB 1383.

Exhibits A and B of the MOU have been amended for FY 26/27 and are in lieu of exhibits covering previous fiscal years.

Exhibit A - Detailed Activities and Costs: Contains the scope of work, and associated costs related to general SB 1383 activities. (Enacted June 2021, updated annually.) Exhibit B - Member Agencies’ Annual Proportionate Shares and Costs: Allocation of such costs to the Member Agencies. (Enacted June 2021, updated annually.) Authorization of this MOU will update Exhibits A and B to reflect costs for the 26/27 fiscal year and omits Exhibits C and D that are no longer applicable. The MOU contains no other substantial changes from the version approved by this body in October 2021, June 2022, August 2023, June 2024, and June 2025.

OPTIONS
Do not approve MOU. Note: Failure to approve the MOU will result in an accumulation of fees to the City of Pacific Grove from the Monterey Regional Waste Management District, as well as the potential for non-compliance with SB1383.

FINANCIAL IMPACT:

The total FY26/27 costs as a result of this MOU are not to exceed $51,060, funded by fees collected by the City as part of the approved GreenWaste Hauler Franchise agreement.

FOCUSED PRIORITY AREA: Environmental Stewardship
Attachments
MRWMD MOU FY26/27
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1 MEMORANDUM OF UNDERSTANDING

BETWEEN THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT AND ITS

MEMBER AGENCIES REGARDING ASSISTANCE WITH COMPLIANCE WITH CALIFORNIA SENATE BILL 1383
made and entered into as of the date of
the signatures set forth below by and between the MONTEREY REGIONAL WASTE Disposal District, and its member agencies including the cities of CARMEL-BY-THE-SEA, DEL REY OAKS, MARINA, MONTEREY, PACIFIC GROVE, SAND CITY, and SEASIDE; THE PEBBLE BEACH COMMUNITY SERVICES DISTRICT; and THE COUNTY OF Recitals
A. The State of California has passed legislation, known as Senate Bill 1383, Short-Lived Climate Pollutants regulation. The regulation will have significant impact on each Member Agency, with the goal of reducing organic material being landfilled by 75% by 2025, compared to a 2014 basis. The legislation mandates that Member Agencies undertake certain activities around the handling of organic waste materials collected within their jurisdictions. The regulation also requires 20% recovery of edible food by 2025 to direct it to a beneficial use and thus prevent it from entering the waste stream. Regulations take effect, and local program implementation will begin, on January 1, 2022.

B. The Member Agencies have determined that it is in their best interest to coordinate their Technical Advisory Committee (TAC) comprised of staff from each Member Agency, the three Haulers in the District service area (Haulers), Salinas Valley Recycles (SVR) and MRWMD.

C. The Member Agencies have further determined that the District has the expertise and have now requested that the District incur costs to provide these activities.

D. The Member Agencies have agreed to reimburse the District for proportionate shares of certain designated annual costs incurred by the District for these activities.

E. The form and content of this MOU have been presented to the TAC, and the TAC has recommended it for approval by the Parties
NOW THEREFORE, in consideration of the mutual benefits to be derived by the District and the Member Agencies, and of the promises contained in this MOU, the Parties agree as PGCC 6-3-2026

2 follows:

Section 1. Recitals: The recitals set forth above are incorporated into this MOU.

Section 2. Purpose: The purpose of this MOU is to provide a structure for the Member Agencies to reimburse the District for SB 1383 related activities it performs on behalf of the Member Agencies.

Section 3. Voluntary: This MOU is voluntarily entered into by the Parties for the purpose of facilitating the implementation of SB 1383.

Section 4. Term: This MOU shall become effective on the last day of its execution by a Party and shall remain in effect until terminated by the Parties.

Section 5. Scope of Work, Costs & Cost Sharing: The scope of work, and associated costs, are set out in Exhibit A, entitled Detailed Activities and Costs, attached hereto and incorporated herein. Allocation of such costs to the Member Agencies is set out in Exhibit B, entitled l Proportionate Shares and Costs, attached hereto and incorporated Department of Resources Recycling and Recovery (CalRecycle) SB 1383 Local Assistance Grant Program (OWR1: 2021-22), attached hereto and incorporated herein. Exhibit D defines the estimated annual procurement requirements of organic material and estimated cost per ton of compost for each Member Agency, attached hereto and incorporated herein.

No later than March 1 of each year, and at such other times as directed by the Parties, the TAC shall meet to consider and, if deemed necessary, modify Exhibits A, B, C, and/or D subject to direction from the governing bodies of each Member Agency to its TAC representative.

Section 6. The District Agrees:
(a) District staff will manage activities as identified in Exhibit A, C, and D which activities include contracting with third party vendors when reasonably necessary and paying those vendors for contracted costs.
(b) Two times per year, on dates to be determined by the TAC, District will invoice Member Agencies for each proportionate share of costs as shown in Exhibit B (c) Upon award of CalRecycle SB 1383 Local Assistance Grant Program funds, the District will invoice Member Agencies for their full allocation of grant funds as shown in Exhibit C. Four times during the grant term, aligned with dates identified by CalRecycle grant Terms & Conditions, the District shall report to Member Agencies a summary of actual grant expenditures and progress toward grant tasks to date.

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3 (d) District will maintain an accounting of activities and expenses and provide reconciliation of payments annually. Material differences between estimated costs and actual incurred costs will result in either: 1) an adjustment made to the final annual payment for each Member Agency, or 2) such cost difference shall be incorporated into the subsequent year cost allocation.
(e) In year one only, in recognition of expected continuation of improved recycling revenues for the District from recyclable material sales, the District will off-set $140,000 of the costs identified in Exhibit A. This off-set is reflected in the cost allocations set out in Exhibit B for FY 2021-22.

Section 7. The Member Agencies Agree:
(a) To reimburse the District for all expenses incurred by the District under this MOU in accordance with each proportionate share as shown on Exhibit B, C, and D. (b) To make a full-faith effort to cooperate with one another and with the District to achieve the purposes of this MOU by providing information, reviewing information in a timely manner, and informing their respective administration and governing bodies.

Section 8. Termination. Any Party may terminate its participation in this MOU upon giving written notice to the District no later than April 1 of any calendar year during the term of this MOU.
charges then due and payable and shall pay when determined any additional charges that shall later come due under the MOU, subject to the limits set out in Exhibits A, B, C, and D.

Section 9. General Provisions.
(a) This MOU is binding and for the benefit of the respective successors, heirs, and assigns of each Party and the District; provided however, no Party may assign its respective rights or obligations under this MOU without the prior written consent of the District. (b) This MOU is governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California.
(c) If any provision of this MOU is determined by any court to be invalid, illegal, or unenforceable to any extent, then the remainder of this MOU will not be affected, and this MOU will be construed as if the invalid, illegal, or unenforceable provision had never been contained in this MOU.
(d) Waiver by the District or any Party to this MOU of any term, condition, or covenant of this MOU will not constitute a waiver of any other term, condition, or covenant.

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4 Waiver by the District or any Party of any breach of the provisions of this MOU will not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOU.
(e) This MOU may be executed in any number of counterparts, each of which is an original but all of which taken together will constitute one and the same instrument, provided, however, that such counterparts have been delivered to all parties to this MOU. (f) All parties acknowledge they have been represented, or have had the opportunity to be represented, by counsel in the preparation and negotiation of this MOU. Accordingly, this MOU will be construed according to its fair language. Any ambiguities will be resolved in a collaborative manner by the District and the Parties and must be rectified by amending this MOU.

IN WITNESS WHEREOF, the District and the Parties have caused this MOU to be executed by their duly authorized representatives as of the date of their respective signatures.

MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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5 CITY OF CARMEL-BY-THE-SEA
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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6 CITY OF DEL REY OAKS
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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7 CITY OF MARINA
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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8 CITY OF MONTEREY
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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9 CITY OF PACIFIC GROVE
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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10 SAND CITY
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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11 CITY OF SEASIDE
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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12 PEBBLE BEACH COMMUNITY SERVICES DISTRICT
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________

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13 COUNTY OF MONTEREY
By: ________________________ DATE: _______________
APPROVED AS TO FORM: _______________________
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Agenda No. 11 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk
MEETING DATE: June 3, 2026
SUBJECT: Selection of Appointment to Fill City Council Vacancy and Administration of Oath of Office
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Select an applicant to fill the City Council vacancy, pursuant to the process outlined in Council Policy 26-XXX;

1. 2. Direct the City Clerk to administer the Oath of Office to the newly appointed Councilmember.

DISCUSSION
Paul Walkingstick resigned from the City Council on April 1, 2026.

City Charter Article 12 provides as follows in regard to 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.” Because June 3, 2026, is more than 30 days after April 1, 2026, Article 12 of the City Charter provides that the vacancy must be filled by appointment of the Mayor. Mayor Smith has indicated that he will make the appointment only if a majority of the City Council is unable to reach agreement on a candidate.

The City Clerk made available an application for persons interested in applying for consideration of appointment as City Councilmember. Pursuant to direction from the City Council at its meeting on May 6, 2026, all applications were due by close of business on May 22, 2026.

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City Charter Article 7 provides as follows in regard to residential qualifications:

"No person shall be eligible to hold, by election or appointment, any elective office of the City unless he/she shall have been a resident and elector of the City for at least thirty (30) days before the date of his or her election or appointment."
The City Clerk received eleven applications with one withdrawal and one ineligible. The City Clerk has confirmed that all applicants listed below meet the requirements of City Charter Article 7.

The process for appointment is outlined in a draft Council Policy 000-032 considered by Council at their special meeting scheduled for 5:30 p.m. on June 3, 2026. A copy is attached hereto for ease of reference. Generally, the process will include:

Each candidate will be invited to present their qualifications for 5-minutes.

The City Council will ask each candidate questions and allow for 1-minute responses.

The City Council will hear public comment on the candidate presentations.

The City Council will then deliberate and vote for their desired candidate(s).

Upon appointment by Council, the City Clerk will administer the Oath of Office to the newly appointed Councilmember.

APPLICATIONS
Attached are redacted applications received by the City at close of business on May 22, 2022, and include the following in alphabetical order by last name:

1. Ben Bence

2. Chalet Booker

3. Jessica Denecour

4. Barton Hays

5. Tara Leweling

6. Jason Little

7. Nicholas Mourlam

8. Kimberly Pye

9. Chris Thomas

OPTIONS
Other action as directed by the City Council.

FINANCIAL IMPACT:

There is no fiscal impact relative to this agenda report.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Draft Policy
Applicants Applications
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1 City of Pacific Grove, California
City Council Policy
Policy Governing Policy No. Effective Date Page
Vacancy in Elective Office and Appointment 000-32 June 3, 2026 1 of 2

PURPOSE
This policy establishes a clear, fair, and efficient process to fill a vacancy on the City Council by appointment pursuant to City Charter Article 12, which states in part, “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.”
This policy is designed to foster transparency, inclusivity, and equitable opportunity for all eligible candidates.

ELIGIBILITY
Any individual meeting the established eligibility criteria for Council may be nominated pursuant to City Charter Article 7, which states, “No person shall be eligible to hold, by election or appointment, any elective office of the City unless he/she shall have been a resident and elector of the City for at least thirty (30) days before the date of his or her election or appointment.” Vacancies in a City Council seat that was elected in an at-large election shall be filled from the City at-large. Vacancies in a City Council seat that was elected in a by-district election shall be filled by an appointee residing in that district.

POLICY & PROCEDURE
When a vacancy is determined, City Staff will prepare an agenda report requesting a future date and time when the Mayor and all Council Members are able to be present, to hear applications, deliberate and make an appointment to fill the vacant seat. The agenda report will also provide other applicable instructions for persons interested in applying for appointment to the vacancy and specify whether the appointment is at-large or district-based.

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Vacancy in Elective Office and Appointment–Council Policy No. 000-32

Application
The City Clerk will post an application on the City Council’s webpage and make it available to persons upon request. Persons eligible for appointment must complete the application and provide it to the City Clerk by the date and time determined by the City Council.

Redacted applications will be posted on the City Council’s webpage for public review and will be attached to the agenda report to be posted in compliance with state law before the meeting at which the appointment is to be made.

Questions
Members of the Council may submit question(s) to the City Manager/City Clerk. Questions (one per Council Member) will be provided to the Council Members to be asked of the candidates during the appointment process.

Appointment Day
All stages of the nomination process must be conducted fairly without bias or undue influence and any disputes or challenges shall be addressed promptly according to established procedures.

PROCEDURE
A list of applicants and their application materials will be included in a brief staff report published on the City Council Agenda. The report shall also outline the procedure contained in this section and provide the Council Member Questions that will be asked. At the meeting staff will provide a brief oral report.

Presentations and Council Questions

1. The Mayor will invite the candidates one at a time to provide their presentation.

2. Each candidate shall have five to ten minutes, at the Mayor’s discretion, to present a statement to the Council describing their desire for appointment and their qualifications. (The set time will be dependent upon number of candidates and will be included in the agenda report to be posted in compliance with state law before the meeting at which the appointment is to be made.)

3. Following each candidate’s presentation, each Council Member will ask their question to the candidate. The candidate will have 1 minute to respond to each question.

Public Comment

1. The Mayor will seek public comment. Public comment may be shortened from 3 minutes based on the number of speakers, at the discretion of the Mayor.

Council Deliberation and First Slate Nominations

1. The Mayor and each Council Member will provide their oral comments, if they choose, and an oral nomination of their top candidate.

2. If one candidate receives a majority of the nominations, the City Clerk will take a roll call vote and process is concluded.

3. If no candidates receive a majority of the nominations, the process will proceed to the next step.

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Vacancy in Elective Office and Appointment–Council Policy No. 000-32

Council Deliberation and Second Slate Nominations
Each candidate that received a nomination in the first slate nominations will be eligible for the second slate nominations.

1. The Mayor will ask for nominations of candidates included in the first slate of nominations.

Each nomination must receive a second to be eligible for the second slate nominations.

2. Once the nominations and seconds are complete to determine the second slate nominations, the City Clerk will take a roll call vote.

3. If one candidate receives a majority of the votes, the candidate has been chosen and process is complete.

4. If no candidates receive a majority of the vote, the Mayor shall make the final candidate selection from those candidates eligible on the Second Slate Nominations.

Oath of Office
Following the appointment, the City Clerk will administer the Oath of Office to the newly appointed Council Member who will join the Council on the dais.

Recordkeeping
A record of nominations, applicants, and final voting results shall be maintained for official documentation and transparency.

MAYORAL VACANCY
In the event a vacancy occurs in the office of the Mayor, the remaining Council Members shall appoint, by four affirmative votes, one of their number to serve as Mayor for the remaining term of the vacated office of Mayor. If the Council does not fill the Mayoral vacancy within thirty (30) days, its appointment power shall lapse and the Mayor Pro Tempore shall assume the office of Mayor. In either event, a vacancy shall then exist as to the Council seat vacated by the new Mayor, which shall be filled in accord with the provisions of Article 12 of the Charter.

Adopted June __, 2026 (Resolution No. 26-XXX)
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Chalet L. Booker
Work Experience
2025-present Senior Administrative Officer
Community Foundation for Monterey County
Senior Administrative duties include working closely with Senior Director of Operations in departmental management. Responsible for database management. Lead the daily Cash Receipts Journal (CRJ) process of all funds received by the Foundation. Responsible for the records retention policy and implementation. Responsible for the management of the filing system, both physical and electronic. Assist interdepartmental communication with Operations team. Provide executive admin support for the Board of Directors and Executive committee. Maintain board web portal with monthly updates.

Assist with the maintaining department procedure and process manuals and guidelines.
2024-2025 Administrative Officer
Community Foundation for Monterey County
Monterey
Coordinate administrative support services for mail regulation and distribution.

Responsible for CRMdatabase management. Lead the daily Cash Receipts Journal (CRJ) process of all funds coming into the Foundation. Responsible for the records retention policy and implementation. Responsible for the management of the filing system, both physical and electronic. Assist interdepartmental communication with Operations team. Provide executive admin support for the Board of Directors and Executive committee. Maintain board web portal with monthly updates.
2021-2024 Administrative Specialist
Community Foundation for Monterey County
Monterey
Administrative duties include working with the Administrative Coordinator as a back-up receptionist. Coordinate administrative support services for security and office health, mail regulation and distribution, records management, maintain the filing system. Collaborate with the COAD manager to maintain Emergency and Disaster Preparedness manual updates and emergency equipment, monitor CFMC office to ensure a well-maintained environment. Maintain and process the daily CRJ. Update procedure manuals, documents and new hire orientation binders as needed. Oversee and manage the details for the foundation’s internal meetings, including room AV functions, special services. Assist with CNE and other department events as needed. Executive Admin support for the Board of Directors and Executive committee. Maintain up to date board web portal information.
2021-2021 Administrative Coordinator (one month)
Community Foundation for Monterey County
Monterey
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Office administrative support for the Community Foundation for Monterey County. Primary receptionist, assisted with the daily mail intake, processed mass mailings, tracked new fund process, maintain shared calendars and meeting requests, updated databases as needed. Tracked, order and inventoried office supplies for the Monterey office. Assisted the Administrative Services Manager with reception area management, MC Gives daily intake, and executive support. 2020-2021 Temporary Administrative support (December 2020- March 2021) Universal Staffing Inc.

Monterey
Temporary administrative support for the Community Foundation for Monterey County. I assisted the Administrative Services Manager with reception area management, MC Gives daily intake, grant mailing, executive support, general filing.
2006-2020 Cultural Arts Assistant
Museum and Cultural Arts Division
City of Monterey
Assist Museum Manager with office management, accounting, departmental budgeting, data entry, report writing, interpretation, volunteer coordination, and project/collection management. I’ve managed a Cultural Arts Grant program, a City Art Collection, and various special events which included event planning and coordinating. I curated exhibits, processing archives and cared for city artifact and art collection. I helped to develop outreach programs and worked with special projects related to partnerships with Historic Monterey partners and various community organizations.
2002-2006 Office Assistant II
Museum and Cultural Arts Division
City of Monterey
Office management, payroll control, accounting, report writing, scheduling, volunteer coordination and recruitment, administrative assistance to cultural arts commission including recording minutes and providing reports, interpretation, event planning and coordinating, assist curator, data entry, processing archives and care of objects.
2002-2002 Legal Secretary
Spiering, Swartz & Kennedy
Monterey
Legal secretary in a general legal office. Arranged scheduling of clients, kept calendars, prepared legal documents for court, maintained files, fielded phone calls and assisted attorney.
2000-2000 Reservationist
Inns by the Sea
Carmel
Fielded phone calls in a busy reservation office, processed payments, filed reservations, wrote correspondence, and used customer service skills to accommodate guests.

Program/Office Knowledge
Salesforce, Adobe, Zoom platform, Comcast phone system, Microsoft 365 Office applications including Outlook, SharePoint, Word, Excel, PowerPoint, Teams, and Forms; FIMS, Picassa, Photoshop, Eden/Tyler Accounting system, Art Explosion Publisher Pro, PastPerfect Collection Management program, WordPerfect, and Voice Editor
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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:

Tara Leweling
Street Address:

City:

Pacific Grove
State:

CA
ZIP Code:
93950
Residence Telephone Number: Work Telephone Number: E-Mail Address:

Brief Description of Background and Qualifications:

Who am I?
I’m a wife, aunt, woman veteran, small business owner, and Pacific Grove resident with a lifelong commitment to community and public service. I have spent my career helping institutions navigate complex decisions, communicate with trust, and serve the people who depend on them. I built and grew sustainability and corporate responsibility efforts at three major financial institutions, served as a White House official working on U.S. policy toward Europe, and now run a boutique strategic advisory firm. I also serve on the California Governor’s Military Council, which advises the Governor on an industry with over $200 billion in statewide economic impact, including more than $4.2 billion in Monterey County.

Why do I want to serve?
I’m asking to serve because we are experiencing a unique moment for local governance. Decisions made at the federal level are affecting local budgets, schools, coastal protection, small businesses, tourism, agriculture, and the quality of life we experience every day. The Council will need to build a prudent budget, protect the character and natural beauty of our city, promote a resilient local economy, and make disciplined choices about the future. Some of the forces affecting Pacific Grove are outside the City’s control, but they are still within the Council’s responsibility to anticipate and proactively address. I want to help with that work.

Why do I think I could be useful?
Nearly 22 years in the Air Force taught me how to make sound decisions when conditions are changing. My corporate roles gave me deep experience in fiscal oversight, regulatory engagement, stakeholder trust, and consequential decision-making.

Running a small business on the Peninsula has given me a practical view of the local economy and the pressures facing small businesses. My nonprofit board service has reinforced the importance of listening well, stewarding resources carefully, and keeping mission at the center of decisions. I also bring governance training and credentials from the National Association of Corporate Directors, the Private Directors Association, and Stanford Directors College.

What would I focus on?
The issues I care most about are the issues already before this Council: strong schools, a healthy coastline, vibrant small businesses, effective city services, a resilient local economy, and the arts, culture, and natural beauty that give Pacific Grove its character. I’d approach these issues with respect for residents and discipline around tradeoffs.

This appointment is, at its core, an act of community service, which is what I have built much of my life around. I’d be honored to bring that commitment to the Council.

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

Signature of Applicant:

Print Name: Tara Leweling
Date:

May 22, 2026
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TARA LEWELING, PHD
Pacific Grove, CA | linkedin.com/in/taraleweling

EXECUTIVE SUMMARY
Seasoned executive, Air Force veteran, small business owner, and Pacific Grove resident with broad experience in civic leadership, community service, fiscal oversight, and governance across the public, private, and nonprofit sectors. Built and grew corporate responsibility and sustainability programs at three major financial institutions.

Advises boards and leaders on enterprise risk, stakeholder trust, and long-term value. Former White House official with experience in complex public policy and intergovernmental decision-making. Today, leads a boutique strategic advisory firm, serves on multiple boards, and works with local organizations to strengthen financial stability.

Appointed to the California Governor’s Military Council. Certified in board governance, climate risk, and cyber oversight. Stanford Directors College alumna.

CORE COMPETENCIES
Fiscal Oversight | Community and Civic Leadership | Local Economic Resilience | Sustainability and Environmental Stewardship | Stakeholder Engagement | Strategic Communications | Crisis Response | Nonprofit Fundraising

PROFESSIONAL EXPERIENCE
Founder and Principal, Sage 71 LLC, Monterey, CA
Leads a boutique strategic advisory firm providing governance, risk, and stakeholder engagement counsel.

Vice President, Corporate Affairs, USAA
Built sustainability function and strengthened enterprise governance and risk for $48B financial services firm.

Vice President, Corporate Relations, Allstate
Led business communications and sustainability for $64B insurer. Chaired Sustainability Council.

Executive Director, International Policy, JPMorganChase Directed international policy for large bank. Advised EMEA Risk Committee overseeing $600B in client assets.

Acting Senior Director for European Affairs and Director for Western Europe, White House National Security Council Advised senior White House leaders on European and NATO affairs.

Senior Policy Advisor, U.S. Mission to NATO, Brussels, Belgium Led interagency policy teams to enhance transatlantic security.

U.S. Air Force Officer, Various assignments globally
Command, programmatic, policy, and operational leadership across multiple assignments.

BOARD AND CIVIC SERVICE
Member, California Governor’s Military Council
Inaugural Member, OnBoard Governance Advisory Council
Board Chair, Dharma Collaborative
Nominating and Governance Chair, National Sustainability Society Member, Advisory Board of Cistern Capital
Past service: Member, USO Illinois | Finance Chair, BBF Family Services Inc

EDUCATION AND CERTIFICATIONS
PhD, Information Sciences and MS, Systems Engineering, Naval Postgraduate School | MS, International Relations, Troy University | BA, Mathematics and History, University of Michigan PGCC 6-3-2026

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Agenda No. 11 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joyce Halabi, Deputy City Manager
MEETING DATE: June 3, 2026
SUBJECT: Artificial Intelligence (AI) Policy
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Adopt a Resolution approving the Artificial Intelligence Policy, Council Policy 200-7

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

DISCUSSION
Artificial Intelligence (AI) is a rapidly changing landscape. Adopting an AI policy is essential in ensuring the City’s use of AI systems benefits the community, while safeguarding against potential harm.

Government agencies across the country are facing similar challenges, balancing limited resources with the demand for City services. AI has the potential to improve services and expand capacity in a resource constrained environment. Countless government agencies have adopted AI tools to enhance an array of services for their residents, while safeguarding against potential harm.

Adoption of this policy will establish the governance framework for the City of Pacific Grove to begin exploring AI tools for enhanced service delivery.

WHAT IS ARTIFICIAL INTELLIGENCE?
Artificial Intelligence is not new; AI is used in common, everyday tools/applications, including google/apple maps, digital assistants like Siri/Alexa, or streaming services (like Netflix, Spotify).

Although in existence for some time, recent AI advancements have made AI tools more accessible.

AI serves as an umbrella term and encompasses an array of applications, including generative AI, predictive AI, and more; the common thread is that these applications learn from data.

Artificial Intelligence (AI) is formally defined by the United States Code 15 U.S.C. 9401(3) as a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. AI systems use machine- and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information PGCC 6-3-2026

or action.

Government agencies have begun harnessing AI tools for public benefit, while mitigating potential risk, in a myriad of ways. Examples include, but are not limited to, live meeting transcription, translation services, assistance with permit review, website chatbot assistants that summarize publicly available City data and answer constituent questions, traffic congestion analysis, and infrastructure analysis to efficiently prioritize repair and maintenance.

AI POLICY
This proposed policy establishes a flexible governance framework for Artificial Intelligence (AI) systems used by, or on behalf of, the City. The policy enables the City to use AI systems for the benefit of the community while safeguarding against potential harm. Key elements include establishing guiding principles, defining roles and responsibilities, and defining prohibited uses.

The Guiding Principles for responsible AI use, establish values with regards to how AI systems are purchased, configured, operated or maintained. The Guiding Principles are as follows:

Human-Centered Design: AI Systems are developed and deployed with a human centered approach that evaluates AI powered services for their impact on the public and the community.

1. Security & Safety: AI systems maintain confidentiality, integrity, and availability through safeguards that prevent unauthorized access and use. Implementation of AI systems is reliable and safe, and minimizes risks to individuals, society, and the environment.

2. Privacy: Privacy is preserved in all AI systems by safeguarding personally identifiable information (PII) sensitive data from unauthorized access, disclosure, and manipulation.

3. Transparency: The purpose and use of AI systems is proactively communicated and disclosed to the public on the City’s website. An AI system, its data sources, operational model, and its use are understandable and documented. Disclosure is required when City data is used in external AI tools.

4. Equity: AI systems support equitable outcomes for everyone. Bias in AI systems is effectively managed with the intention of reducing harm for anyone impacted by its use.

5. Accountability & Compliance: Roles and responsibilities govern the deployment and maintenance of AI systems, and human oversight ensures adherence to relevant laws and regulations.

6. Effectiveness: AI systems are reliable, meet their objectives, and deliver precise and dependable outcomes for the utility and contexts in which they are deployed.

7. Workforce Empowerment: Staff are empowered to use AI in their roles through education, training, and collaborations that promote participation and opportunity.

8. These guiding principles help safeguard against potential risks of AI tools by establishing core principles by which all AI usage will adhere to.

Additionally, proposed use of AI tools will undergo review to assess any potential risk, to obtain necessary technical documentation about the AI system, and to ensure compliance with data standards and best practices as established in the Policy.

This policy establishes the general governance framework for AI use. Additional internal AI guidelines, procedures, and training materials will be created by the IT team to supplement this policy, providing staff more detailed guidance, use cases, and detailed best practices, and will be updated as needed to reflect technological advancements, operational needs, and evolving industry standards. All additional materials will be aligned with this policy.

Policy Development
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The template used as the basis for the policy was developed by the GovAI Coalition and recommended for use by the City’s insurer, California Joint Powers Insurance Authority (CJPIA). The GovAI Coalition is composed of government members from local, state, and federal agencies united to promote responsible and purposeful AI in the public sector. The coalition is led by the City of San Jose’s Information Technology Department.

The policy brought forward has been reviewed by the City Attorney’s Office.

OPTIONS

1. Adopt the Policy

2. Do not adopt the Policy
FINANCIAL IMPACT:

There is no fiscal impact associated with adopting this policy.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Resolution Authorizing a City Council Policy Regarding Artificial Intelligence Artificial Intelligence Policy
AI Fact Sheet Example
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RESOLUTION NO. 26-xxx

A RESOLUTION OF THE CITY OF PACIFIC GROVE CITY COUNCIL

ESTABLISHING AN ARTIFICIAL INTELLIGENCE (AI) POLICY

FINDINGS

1. AI has the potential to improve City services and expand capacity in a resource constrained environment.

2. Countless government agencies have adopted AI tools to enhance an array of services for their residents, while safeguarding against potential harm; and,

3. An AI Policy establishes a governance framework for the City to harness AI tools for enhanced service delivery.

4. Adopting an AI Policy is essential in ensuring the City’s use of AI systems benefits the community, while safeguarding against potential harm.

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 a Resolution establishing Council Policy 200-7, Artificial Intelligence (AI) Policy.

3. The AI Policy is hereby approved as attached to this Resolution.

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 _____ day of ______________, _______, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

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_______________________________
NICK SMITH, Mayor
ATTEST:

DATED:_______________________
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
ALEX LORCA, City Attorney
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CITY OF PACIFIC GROVE, CALIFORNIA

COUNCIL POLICY
SUBJECT POLICY NO. EFFECTIVE DATE PAGE
Artificial Intelligence (AI)
Policy
200-7 XXX 1 of 7
I. PURPOSE
This policy establishes a clear and flexible governance framework for Artificial Intelligence (AI) systems used by, or on behalf of, the City of Pacific Grove (City). It also outlines practical guidelines for the responsible use of AI tools. This policy enables the City to use AI systems for the benefit of the community while safeguarding against potential harm.

The key objectives of the AI Policy are to:
 Provide guidance that is clear, easy to follow, and supports decision-making for City staff or those operating on its behalf;
 Ensure that use of AI systems adheres to the Guiding Principles that represent values with regards to how AI systems are purchased, configured, operated, or maintained;
 Define roles and responsibilities related to the City’s usage of AI systems;  Define prohibited uses of AI systems;
 Establish “sunset” procedures to safely retire systems that no longer meet the needs of the City; and
This policy establishes the general framework and operating principles for the use of evolving AI technologies. Additional internal AI guidelines, procedures, and training materials will be created and will supplement this policy by providing more detailed guidance, use cases, and best practices, and may be updated regularly to reflect technological advancements, operational needs, and evolving industry standards. All additional materials will be aligned with this policy.

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All uses of AI must comply with applicable laws, regulations, and internal policies related to data protection, security, privacy, and acceptable use. The City will review and update this policy and related supporting documents as needed to maintain alignment with legal, ethical, and technological developments.

The City defines “artificial intelligence” or “AI” to be a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments.1 AI systems use machine- and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information or action.

The City defines an “AI system” to be any data system, software, hardware, application, tool, or utility that operates in whole or in part using AI.

II. SCOPE
This policy applies to:

1. All City-deployed AI systems, and any use of City data within AI tools by individuals with access to City data or systems; and

2. Staff (full-time, part-time), interns, consultants, contractors, partners, and volunteers who may be purchasing, configuring, developing, operating, or maintaining the City’s AI systems or who may be leveraging AI systems to provide services to the City.

III. GUIDING PRINCIPLES FOR RESPONSIBLE AI SYSTEMS
Usage of AI Systems shall adhere to the following principles:

1. Human-Centered Design: AI Systems are developed and deployed with a human centered approach that evaluates AI powered services for their impact on the public and the community.

2. Security & Safety: AI systems maintain confidentiality, integrity, and availability through safeguards that prevent unauthorized access and use. Implementation of AI systems is reliable and safe, and minimizes risks to individuals, society, and the environment.
1 1 Definition from 15 U.S.C. 9401(3).

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3. Privacy: Privacy is preserved in all AI systems by safeguarding personally identifiable information (PII) sensitive data from unauthorized access, disclosure, and manipulation.

4. Transparency: The purpose and use of AI systems is proactively communicated and disclosed to the public on the City’s website. An AI system, its data sources, operational model, and its use are understandable and documented. Disclosure is required when City data is used in external AI tools.

5. Equity: AI systems support equitable outcomes for everyone. Bias in AI systems is effectively managed with the intention of reducing harm for anyone impacted by its use.

6. Accountability & Compliance: Roles and responsibilities govern the deployment and maintenance of AI systems, and human oversight ensures adherence to relevant laws and regulations.

7. Effectiveness: AI systems are reliable, meet their objectives, and deliver precise and dependable outcomes for the utility and contexts in which they are deployed.

8. Workforce Empowerment: Staff are empowered to use AI in their roles through education, training, and collaborations that promote participation and opportunity.

III. ROLES & RESPONSIBILITIES
 The Information Technology (IT) Manager is responsible for:
o Overseeing the implementation, compliance, and enforcement of this policy and ensuring the City’s AI systems comply with the City’s internal IT policies/guidelines, security protocols, and industry standards and best practices.
o Overseeing the enterprise security infrastructure, cybersecurity operations, updating security policies, procedures, standards, guidelines, and monitoring policy compliance with the City’s internal IT policies/guidelines, security protocols, and industry standards and best practices. o Overseeing information/data privacy including enterprise digital privacy practices, data processing practices, and responsible usage of technology in compliance with the City’s internal IT policies/guidelines, security protocols, and industry standards and best practices.
o Notifying staff when an updates to this policy, or internal guidelines, is released.

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o Hosting regular training to ensure compliance and workforce empowerment of responsible AI tools.
o Maintaining a centralized, enterprise-wide AI Inventory of all approved and deployed AI systems, ensuring this registry is updated as new systems pass the AI Review Framework.
 Department Heads / Directors are responsible for:
o Ensuring that their staff strictly adhere to this policy and Internal IT Policies and AI Guidelines.
o Coordinating with the IT Manager for the procurement of AI technology, to ensure compliance with City’s internal IT policies/guidelines, security protocols, and industry standards and best practices.
 The City Attorney is responsible for advising of any legal issues or risks associated with AI systems usage by or on behalf of the City.
 The City Manager may, at its discretion, inspect the usage of AI systems and require a department to alter or cease its usage of AI systems or a partner’s usage of AI systems on behalf of the City.
 The Public Information Officer (PIO) is responsible for coordinating with the IT Manager and Department Heads to maintain the public-facing AI registry on the City’s website, ensuring that the purpose and use of the City's approved AI systems are proactively communicated to the public in alignment with the City’s Guiding Principles.
 Employees and agents, whether regular, temporary, interns, volunteers, contractors, consultants, vendors, and other third parties operating AI systems on behalf of the City are required to abide by this policy and ensure that AI-generated content is reviewed and verified for accuracy before it is acted upon or published.

IV. Policy
When purchasing, configuring, developing, operating, or maintaining AI systems, the City will:

1. Uphold the Guiding Principles for Responsible AI Systems;

2. Conduct an AI review to assess the potential risk of any new AI systems. Risk assessments and independent audits of AI systems will also be conducted to ensure continued compliance, fairness, and security. The IT Manager is responsible for coordinating review of AI systems used by the City.

3. Obtain technical documentation about AI systems using the AI FactSheet or create equivalent documentation if internally developing the AI system. The IT Manager is PGCC 6-3-2026

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responsible for requiring vendors to complete the AI Fact Sheet or producing the equivalent documentation for internal solutions.

4. Require consultants and contractors to comply with this AI Policy. In the event of an incident involving the use of the AI system, the City will follow the Information Technology Department’s Incident Response Plan. The IT Manager is responsible for overseeing the security practices of AI systems used by or on behalf of City departments.

5. Ensure the appropriate use of City data within all AI tools in compliance with internal policies, standards, practices, and training requirements, including prohibiting the use of non-public or confidential information in publicly available AI tools.

Prohibited Uses
The use of certain AI systems is prohibited due to the sensitive nature of the information processed and severe potential risk. This includes the following prohibited purposes:
• Real-time and covert biometric identification;
• Emotion analysis, or the use of computer vision techniques to classify human facial and body movements into certain emotions or sentiment (e.g., positive, negative, neutral, happy, angry, nervous);
• Fully automated decisions that substantially impact the rights or safety of individuals with no meaningful human oversight;
• Social scoring, or the use of AI systems to track and classify individuals based on their behaviors, socioeconomic status, or personal characteristics; and • Cognitive behavioral manipulation of people or specific vulnerable groups.

If staff become aware of an instance where an AI has caused harm or been used for a prohibited purpose, staff must report the instance to their supervisor, the IT Manager, and the Office of Employee Relations no later than 24 hours after discovery.

Reporting AI Concerns and Incidents
The City is committed to the safe and equitable use of Artificial Intelligence. To support this:
o Proactive Reporting: If staff observe algorithmic bias, ethical concerns, or become aware of an instance where an AI system has the potential to cause harm, staff must PGCC 6-3-2026

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immediately suspend use of the tool and report the concern to their direct supervisor and the IT Manager.
o Incident Reporting: If an AI system has already caused unintended harm or a data breach, staff must report the instance to their supervisor, the IT Manager no later than 24 hours after discovery.
o Prohibited Use Reporting: If staff learn of the intended use of AI for a prohibited purpose, staff must report the instance to their supervisor, the IT Manager, and the Office of Employee Relations no later than 24 hours after discovery.

Public Records
The City is subject to the California Public Records Act (CPRA). City staff must follow all current procedures for records retention and disclosure. Information entered into AI systems could be subject to a CPRA request. This also applies when City data is processed in external AI tools.

Sunset Procedures
If an AI system operated by the City or on its behalf ceases to provide a positive outcome to the City as determined by the staff or IT Manager, then the City must halt the use of that system unless express exception is provided by the IT Manager. If the abrupt cessation of the use of that AI system would significantly disrupt the delivery of services, a gradual phased out approach must be approved by the IT Manager before sunsetting.

All measures to minimize the impact and recovery must be considered in the termination or phase out protocol, including but not limited to:
• Ownership and future access of data;
• Portability of the AI model, algorithm, and/or data; and • Impact to services, users, and residents
Violations of the AI Policy
Violations of any section of the AI Policy may be subject to disciplinary action, up to and including termination. Violations made by a third party while operating an AI system on behalf of the City may result in a breach of contract, termination of contract, and/or pursuit of damages. Infractions that violate local, state, federal or international law may be remanded to the proper authorities.

Restricted Platform Alternatives
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provide a URL redirect to an internal website that will provide the employee with alternative AI platforms which have been vetted and approved by the City for use.

The purpose of this policy is to help prevent the exfiltration of City data. This approach allows employees to choose amongst various platforms which meet applicable privacy and security standards established by the City to facilitate productivity. The IT Manager will perform regular assessments of AI platforms and to regularly monitor platforms so that the City can restrict and remove access in the event of a security or privacy incident.

VIII. Terms & Definitions
Artificial Intelligence: “Artificial intelligence” or “AI” to be a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information or action.

Algorithm: A series of logical steps through which an agent (typically a computer or software program) turns particular inputs into particular outputs.

AI system: Any system, software, sensor, or process that automatically generates outputs including, but not limited to, predictions, recommendations, or decisions that augment or replace human decision-making. This extends to software, hardware, algorithms, and data generated by these systems, used to automate large-scale processes or analyze large data sets.

IX. Acknowledgement
Elements of this policy were derived from templates developed by GovAI Coalition, a coordinated efforts of over 150 California state and local agencies who are dedicated to the responsible and purposeful use of AI that benefits all members of the community.

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1 AI FactSheet
Please provide details regarding your artificial intelligence (AI) solution by filling out the AI FactSheet1 template below. This template was developed by the GovAI Coalition.

This AI FactSheet is for AI developers to complete. A developer is an entity that creates a standard software product or solution that is intended for many customers to use. These products may include AI systems built by the developer themselves, and/or a software solution that leverages third party AI tools within the product offering.

A service provider is an entity that guides, consults, advises, and supports agencies in navigating artificial intelligence (AI). A service provider may build custom AI solutions for a client, but does not sell the product as a standard solution to many customers on its own. If you are a service provider, please fill out the AI FactSheet for Service Providers instead.

Vendor Name Your “Doing business as” Name and Legal Name, if different.

Product Name Name of the AI product or suite of products.

Overview Brief summary of the AI system.

Purpose What function does the AI system perform, and for what purpose? If the system performs multiple functions, list each discretely and reference below.

For features that are configurable, please describe all configuration options and default settings.

Intended Domain What domain is the AI system intended to be applied in? Training Data How was the AI system trained? What data was used? How often is data added to the training set? Was all training data legally obtained and its use fully licensed?
Test Data What data was used to test system performance? Under what conditions has the system been tested?
Model Information General description of the model(s) used (e.g., large language model, transformer, deep learning, supervised learning, built on an existing open source model, computer vision)
Update procedure In general, how often are the models updated for users? Will the user have a choice in moving to the updated model or staying on the current model? What documentation is available for new versions of the model? Inputs and Outputs What are the inputs to the AI system? What are its outputs? What interfaces and integrations are supported?
Performance Metrics What are the performance metrics? What is your current level of performance on these metrics? How can the user monitor performance when deployed? 1 The FactSheet template is heavily inspired by the IBM Research AI FactSheets 360 project.

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2 Bias What biases does the tool exhibit and how does it manage that bias? This can include but is not limited to biases on human factors such as gender, race, socioeconomic status, disability, culture, age, or other protected classes, or biases on general factors such as a sampling bias, survivorship bias, detection bias, or observer bias.

Robustness How does the AI system handle outliers? Do overwritten decisions feed back into the system to help calibrate it in the future?
Optimal Conditions What conditions does the model perform best under? Are there minimum requirements for the quantity of records/observations?
Poor Conditions What conditions does the model perform poorly under? What are the limitations of the AI system? What kinds of errors can it make (e.g., hallucinations) and what conditions make those errors more likely? Explanation How does the AI system explain its outputs? Are the outputs of the AI system understandable by subject matter experts, users, impacted individuals, etc.? Data Protection List data protection frameworks you comply with (e.g., NIST 800-53, NIST AI RMF) and certifications (e.g., SOC II, HIPAA, FERPA, CJIS).

Environmental
Impacts
This can include, but is not limited to, energy and water consumption for training and/or per use of the model, sources of energy and water for your solution, and your organization’s approach to reducing environmental impact.

For energy consumption, report in megawatt-hours (MWh).2 For water consumption (in thousand liters), include the type of water (i.e., drinking water or reclaimed water) used in training and deploying the model (if the on-site water usage is unknown, use "1 L/kWh" as a default value).3 Ongoing Monitoring How is the AI system monitored to identify any problems in usage? Can outputs (recommendations, predictions, etc.) be overwritten by a human, and do overwritten outputs help calibrate the system in the future? Problems in usage can include false negatives, false positives, bias, hallucinations, and human-reported quality issues (such as poor translations or poorly generated images).

Independent
Evaluation
Have the vendors or an independent party conducted a study on the bias, accuracy, or disparate impact of the system? If yes, can the agency review the study? Include methodology and results.

This can include bias impact reports, algorithmic impact reports, or others.4 2 If you are unsure how to conduct energy measurements, see “A Beginner’s Guide to Power and Energy Measurement and Estimation for Computing and Machine Learning” published by the National Renewable Energy Laboratory and Intel. 3 If you are unsure how to conduct water impact measurements, see “Making AI Less 'Thirsty': Uncovering and Addressing the Secret Water Footprint of AI Models” published in Communications of the ACM. 4 See “Algorithmic bias detection and mitigation: Best practices and policies to reduce consumer harms” by the Brookings Institute for an example bias impact report template.

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3 Accessibility How does your solution accommodate a variety of users, such as users with disabilities?
Responsible AI
Strategy
Please share any relevant information, links, or resources regarding your organization’s responsible AI strategy.

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Agenda No. 11 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: June 3, 2026
SUBJECT: Ordinance Amending City Municipal Code Chapter 2.16 (Purchasing System and Procedures) CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Introduce and hold the first reading of an Ordinance amending Municipal Code Chapter 2.16 (Purchasing System and Procedures)

2. Direct that a summary of a proposed ordinance be published as approved by the City Attorney.

DISCUSSION
As a charter city, the City of Pacific Grove maintains local autonomy over its municipal affairs and is exempt from the provisions of the California Public Contract Code, except where municipal ordinances or Council agreements dictate otherwise. The City of Pacific Grove operates a purchasing system designed to secure high quality goods and services at the lowest reasonable cost, maximize financial accountability, and maintain good internal controls. Staff has prepared a proposed ordinance amending Chapter 2.16, with the key revisions discussed below, with the goals of adjusting for inflation, enhancing efficiencies, and minimizing delays in processing.

1. Increase in Open Market Purchasing Threshold for Staff (PGMC 2.16.160(a)) This amendment adjusts the baseline authority for open market purchases performed by the Purchasing Agent (City Manager) or their designees from the prior maximum of $40,000 to $50,000. This adjustment reduces the volume of routine administrative items brought to the City Council, optimizing agenda space for major agenda items.

2. Establishment of Process for CPI Adjustments (PGMC 2.16.160(b)) To prevent the purchasing limits from becoming obsolete due to future inflation, the ordinance allows for the adjustment of this limit on July 1st of every five fiscal years using the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose area, rounded to the nearest $5,000.

3. Other Administrative Changes
Modifying various sections to allow the City Manager to, either through procedures or on a case-by-case basis, delegate any of the powers and duties of the purchasing agent provided for by this Chapter to the Administrative Services Department or other employees. (PGMC 2.16.010)
Clarifying that the procedure for determining bid amounts for determining the lowest responsible bidder shall not deduct the amount received by the City in sales tax for purchases involving the use of State or Federal grant funds, including pass through funds. (PGMC

2.16.100)
Clarifying that the procedures for the disposal of City surplus supplies and equipment (PGMC 2.16.110) Applies to items with an individual cost of $5,000 or more Allows the City to donate such items to another governmental entity or charitable organization Does not allow for the purchase of these items directly by employees PGCC 6-3-2026

4. Preserved Protections and Council Safeguards
Note that the expansion of the open market limits does not dilute public transparency or compromise fiscal oversight. The following statutory protections are in place:

1. Monthly Check Register Reports: In compliance with PGMC 2.16.160(c), a complete check register report detailing every single transaction executed under open market authority must continue to be provided to the City Council on a monthly basis.

2. Anti-Project Splitting Rules: Section 2.16.160(d) and Section 2.16.420 strictly prohibit dividing public works projects or general procurement undertakings into smaller component parts to intentionally evade formal bidding procedures or bypass council authority boundaries.

3. Council Resolutions for Large Procurements: Any contract for services or public works projects exceeding the new adjusted limit ($50,000) requires a formal resolution or motion approved by the City Council. Furthermore, under PGMC 2.16.080, even if competitive bidding procedures are legally dispensed via a standard exception (e.g., sole source, emergency, or unique specialized skill), council approval by resolution is required for any purchase exceeding the Purchasing Agent's limit.

Procurement Tier Prior Version Proposed Change Required Process / Approval Authority Micro-Purchases /
Exempt Bids Under $2,500 Under $7,500(PGMC 2.16.080) It is recommended, (not required) that staff obtain bids Open Market Purchases $7,500 to $40,000 $7,500 to $50,000 Requires minimum of 3 written quotes, unless an exemption is approved by the City Manager or Administrative Services Director. (PGMC 2.16.190, 2.16.080)
Formal Contract
Procurements Over $40,000 Over $50,000(PGMC 2.16.160 a) Formal competitive bidding; newspaper publication 10 days prior; Council approval via resolution or motion

OPTIONS

1. Take No Action

2. Provide Alternate Direction to Staff
FINANCIAL IMPACT:

The adoption of this ordinance has no fiscal impact to the City. Long-term fiscal benefits include reduced administrative overhead, fewer legal advertising expenses for mid-tier contracts, and improved staff productivity.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Purchasing Ordinance with changes incorporated
PGCC 6-3-2026

Chapter 2.16

PURCHASING SYSTEM AND PROCEDURES
Sections:

2.16.010 Purchasing procedures by city manager.

The city manager is the city’s purchasing agent, who can also delegate any of these duties to the Administrative Services Department and other employees. TheyThe city manager and Administrative Services Department He or she shall establish the procedure and forms to carry out such duty in accordance with the charter and this chapter. The city manager may, either through procedures or on a case-by-case basis, delegate any of the powers and duties of the purchasing agent provided for by this Chapter to the Administrative Services Department or other employees. [Ord. 1405 N.S. § 2, 1984].

2.16.020 Applicability of chapter.

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

2.16.030 Encumbrance of funds.

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

2.16.040 Declaration of policy.

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

2.16.050 Estimates of requirements.

Departments shall file detailed annual budgeted estimates of their requirements for supplies, services, materials and equipment in such manner, at such times, and for such future periods as the Administrative Services dDepartment purchasing agent shall prescribe.”. [Ord. 1405 N.S. § 2, 1984].

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2.16.060 Requisitions.

All departments shall submit to the purchasing agent or their designees’ requests for supplies, services, materials and equipment in such manner, at such times, and on such requisition forms as the Administrative Services Department purchasing agent shall prescribe. [Ord. 1405 N.S. § 2, 1984].

2.16.070 Purchase orders.

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

2.16.080 Bidding procedures – Dispensation when.

Purchases of supplies, services, materials and equipment shall be by quotation or bid procedures as set forth in this chapter. Such procedures may be dispensed with by the purchasing agent or Administrative Services Director, in theirhis or her sole discretion and judgment as to the best interest of the city, as follows:
(a) When an emergency requires that an order be placed immediately with the nearest available source of supply;
(b) When the amount involved is less than $72,5000;
(c) When the supply, service, material or equipment can be obtained from only one vendor or supplier;
(d) When a service, such as that available from an attorney, accountant, architect or specialized consultant, involves a specialized knowledge or personal skill; (e) When supplies or equipment, such as communication systems, traffic signals, and parking meters, have been uniformly adopted in the city or otherwise standardized; (f) When the supplies, equipment or materials are such that suitable technical or performance specifications are not available and the city is unable to develop descriptive specifications; (g) When the article can be purchased more economically through the central purchasing authority of another governmental agency;
(h) When specific used supplies, materials or equipment will best serve the city’s needs; or PGCC 6-3-2026

(i) When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property.

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

2.16.090 Competitive negotiation.

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

2.16.100 Lowest responsible bidder – Determining.

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

In the event the lowest bidder is rejected, the purchasing agent or their designeescouncil, as the case may be, mayshall provide the lowest bidder with written explanation and/or findings regarding the rejection.
(j) In the case of a bid received from a bidder, a portion of whose sales tax is paid to the city, the purchasing agent shall calculate the actual cost to the city of accepting such bid,. Said actual cost shall be the bid amount less sales tax revenue which would be received by the city were the city to accept such bid. Said actual cost shall be the price utilized by the city, in addition to the other factors set out in this section, in determining the lowest responsible bidder. This provision does not apply to any purchases involving the use of State or Federal grant funds, including pass through funds.
(k) Local Business Preference.
(1) Local bidders must bid with the same specification as required of nonlocal bidders. (2) Where competitive bidding is utilized for the purchase of supplies, equipment, materials or general services as specifically set forth in this section, the city shall grant preference to a local bidder who submits a quote or bid within five percent of the lowest responsible bidder and who is otherwise responsive and responsible to the invitation for bids. (3) Where the lowest responsible bidder is not a local business, the purchasing officer shall provide the lowest responsible local business bidder, should one exist and its bid is within five percent of the lowest responsible bidder, with notice and an opportunity to reduce its bid to match that of the lowest responsible bidder.
(4) Upon notice being provided pursuant to this section, the local business shall have two full business days to provide written notice to the purchasing officer of its desire to match the lowest bid.
(A) In the event the local business elects to match, the contract will be awarded to the local business.
(B) In the event the local business provided the opportunity to match does not opt to match the lowest responsible bid, the award of the contract shall be given to the lowest responsible bidder.
(5) In instances where a local business and a nonlocal business submit equivalent lowest responsible bids, the purchasing officer shall give preference to the local business. (6) All notices required under this section may be made orally, in writing or electronically. (7) The application of a local preference as set forth in this section shall only apply if factors such as quality, previous performance, and availability are equal among bidders.

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(8) Local preference shall not apply to any procurements of public work, purchases procured under federal or state requirements, cooperative purchases with other agencies, or where prohibited by other specific directive.
(9) No Exemption From Local Sales Tax. The application of a local preference as set forth in this section shall not exempt any eligible local business to which a contract is executed or awarded from having to pay all applicable federal, state or local sales or business license tax. (10) Local Business Defined. For purposes of this section, a “local business ” means a business enterprise including, but not limited to, a sole proprietor, partnership, or corporation which has the following:
(A) A valid business license issued from the city; and
(B) Has a place of business with a physical address located within the jurisdictional limits of the city at least six months prior to publication of the call for bids and has at least one full-time employee located at the city business address. [Ord. 21-030 § 2, 2021; Ord. 1828 N.S. § 1, 1992; Ord. 1405 N.S. § 2, 1984].

2.16.110 Surplus supplies and equipment.

All using departments shall submit to the Administrative Services Departmentpurchasing agent, at such time and in such form as the departmenthe or she shall prescribe, reports showing all supplies and equipment with an original individual cost over $5,000 which are no longer used , or which have become obsolete or worn out. The purchasing agent or their designees shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment, donate to another governmental entity or charitable organization, or dispose of if no other option is available. Employees are not eligible to purchase or receive surplus property directly from the City. The purchasing agent or their designees shall strive utilize all appropriate means to realize maximum return possible on such sales, exchanges and trades. [Ord. 1405 N.S. § 2, 1984].

2.16.120 Inspection – Testing.

The purchasing agent or their designees shall inspect supplies and equipment delivered and review contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The purchasing agent or their designees shall have authority to require chemical and physical tests of samples submitted with bids and PGCC 6-3-2026

samples of deliveries which are necessary to determine their quality and conformance with specifications. [Ord. 1405 N.S. § 2, 1984].

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

2.16.140 Interference with bidding procedure by officer or employee.

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

2.16.150 Officer defined.

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

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

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2.16.157 Optional purchasing procedures for special assessment districts.

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

Article II. Open Market Purchases

2.16.160 Authorized for purchases by the purchasing agent or their designees. (a) Purchases of supplies, services, materials, equipment and contractual services, including public works projects, having an estimated market value under $5035,0002 may be made by the purchasing agent in the open market, as hereinafter described in this article, without observing the formal contract procedures prescribed in Articles III and IV of this chapter. (b) The purchase authority limit set forth in subsection (a) of this section shall be adjusted on July 1st of each fifth fiscal year, starting on July 1, 20250, by council resolution. The adjustment shall cause an increase or decrease to the purchase limit based upon the cumulative change in the Consumer Price Index (CPI) that occurred since the last adjustment, based upon the “CPI, All Urban Consumers, San Francisco-Oakland-San Jose area; base years 1982-1984 = 100,” as published by the U.S. Department of Labor, or any comparable replacement or successor index. For ease of administration, the purchase authority limit set for each following five-year period shall be adjusted by rounding to the nearest $5,000. (c) A check register written report of all purchases made under authority of this section shall be provided to council on a monthly quarterly basis.
(d) All purchases made under the authority of this section shall be accumulative per subject as per PGMC 2.16.4 2 0, Splitting projects. [Ord. 22-017 § 4, 2022; Ord. 21-019 § 2, 2021; Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.170 Quotations – Notice of invitation.

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

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2.16.180 Quotations – Submission in writing.

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

2.16.190 Quotations – Number required.

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

2.16.200 Quotations – Rejection.

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

2.16.210 Award of purchase orders.

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

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

2.16.220 Formal contract procedure.

Except as otherwise provided herein, purchases and contracts for supplies, services and equipment of estimated market value amounts greater than the maximum amount for which the purchasing agent is authorized, as specified in section 2.16.160Article II of this chapter, shall be by contract, approved by the council by resolution or motion, with the lowest responsible bidder pursuant to the procedure prescribed in this article except when such procedures may be dispensed with as defined in Article I of this chapter or as otherwise provided by law. Standard contracts may be used when approved by city attorney and council by resolution or motion. Contracts shall be provided to council prior to approval. Standard contracts may be incorporated by reference into an agenda report with specification of the parties, term, scope of work, price, and contingencies to extend the term and/or increase the price. (The procedures prescribed in Article IV of this chapter shall be observed in the case of PGCC 6-3-2026

all public works projects, as defined in Article IV of this chapter, involving expenditures greater than the maximum amount for which the purchasing agent is authorized, as specified in Article II of this chapter.) [Ord. 22-017 § 4, 2022; Ord. 14-005 § 2, 2014; Ord. 1405 N.S. § 2, 1984].

2.16.230 Notice inviting bids.

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

2.16.240 Published notice.

Notice inviting bids shall be published at least 10 days before the date of opening of the bids.

Notice shall be published once in an official newspaper of the city. [Ord. 1405 N.S. § 2, 1984].

2.16.250 Bidders’ list.

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

2.16.260 Bidders’ security.

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

2.16.270 Bid opening procedure.

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

2.16.280 Rejection of bids.

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

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2.16.290 Open market purchase.

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

2.16.300 Tie bids.

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

2.16.310 Performance bonds.

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

Article IV. Public Works Contracts

2.16.320 Written contract.

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

2.16.330 Notice inviting bids.

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

2.16.340 Bidders’ security.

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

2.16.350 Bid opening procedure.

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

2.16.360 Tabulation of bids.

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

2.16.370 Tie bids.

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

2.16.380 Acceptance or rejection of bids.

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

2.16.390 Work by day labor.

If all bids are rejected or no bids are received the council may readvertise or may, by an affirmative vote of at least five of its members, declare and determine that in its opinion the work in question may be more economically or satisfactorily performed by day labor, by PGCC 6-3-2026

either city employees or others, and after adoption of a resolution to that effect, may proceed to have the same done in the manner stated. [Ord. 1405 N.S. § 2, 1984].

2.16.400 Emergencies – Contracts let without bids.

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

2.16.410 Performance bonds.

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

2.16.420 Splitting projects.

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

Editor’s Note: As adopted by Ord. 02-26, this section was designated as PGMC 2.16.160. It was editorially amended to PGMC 2.16.155 due to the earlier codification of PGMC 2.16.160.
2 By operation of PGMC 2.16.160(b) the purchase authority limit referenced in this subsection (a) was adjusted to $40,000 for the period beginning July 1, 2020, and ending June 30, 2025.

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