Sand City City Council
February 1, 2022

REGULAR MEETING

JOINT SAND CITY COUNCIL AND

SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY
TUESDAY, FEBRUARY 1, 2022
5:30 PM
1 1. ROLL CALL

2. PLEDGE OF ALLEGIANCE
AGENDA

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, February 1, 2022
5:30 PM

THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 361, SIGNED INTO LAW ON SEPTEMBER 16, 2021, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC

AGENCIES TO HOLD VIRTUAL MEETINGS DURING A PROCLAIMED STATE OF EMERGENCY AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.).

TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE:
https://us02web.zoom.us/j/4614728829
Meeting ID: 461 472 8829
To participate telephonically by calling the number below:
(669) 900-6833
Meeting ID: 461 472 8829#
If prompted to enter a participant ID, press #
How to submit written Public Comments:

If any member of the public would like to provide written comments at the meeting, please do as set forth below.

Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to [email protected].

Read Aloud During the Meeting: Email your comments to [email protected] when the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence).

DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. 2 3. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, & CITY STAFF

4. COMMUNICATIONS
Members of the public may address the City Council/Successor Agency on matters not appearing on the City Council/Successor Agency Agenda at this time for up to three minutes. In order that the City Clerk may later identify the speaker in the minutes of the meeting, it is helpful if speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the item is being considered by the City Council/Successor Agency.

The City Council Chambers podium is equipped with a portable microphone for anyone unable to come to the podium. If you need assistance, please advise the City Clerk as to which item you would like to comment on and the microphone will be brought to you.

5. CONSENT CALENDAR
The Consent Agenda consists of routine items for which City Council approval can be taken with a single motion and vote. A Council member may request that any item be placed on the Regular Agenda for separate consideration. 5A. Approval of January 18, 2022 Sand City Council Meeting Minutes

1.18.2022 Minutes.pdf
5B. Approval of City/Successor Agency Financial Report, December 2021 City.Successor Agency Financial Report. December 2021.pdf 5C. Approval of City RESOLUTION Authorizing Contract Services with Bartel Associates, LLC to Perform Actuarial Valuation Services for Fiscal Year ending June 30, 2022 in an amount not to exceed $4,850
Staff Report. Bartel & Associates Contract Renewal.pdf
Resolution. Authorizing Contract Services with Bartel and Associates, LLC.pdf

6. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR

7. PRESENTATION
7A. Presentation by So Gnar, Inc. and Council Discussion regarding We.mural Festival 2022, including consideration of Festival Budget we. Fest 2022.pdf

8. PUBLIC HEARING
8A. Consideration and Approval of South of Tioga Development Project Community Facilities District No. 2021-1 Formation Public Hearing, Elections and Authorization of Special Taxes
Staff Report. SOT.Community Facilities Distrtic No. 2021-1.pdf Attachment A. CFD Report for Community Facilities District No. 2021-1.pdf 8B. Approval of City RESOLUTION Establishing Community Facilities District No. 2021-1 (South of Tioga Project)
Attachment B. Resolution Establishing Community Facilities District No. 2021-1 (South of Tioga Porject).pdf
3 8C. Approval of City RESOLUTION Calling a Special Election for the Community Facilities District
Attachment C. Resolution Calling for a Special Election for a Community Facilities District.pdf
8D. Approval of City RESOLUTION Declaring Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien Attachment D. Resolution Declaring Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien.pdf
8E. First Reading: ORDINANCE of the City Council of the City of Sand City Authorizing the Levy of Special Taxes in a Community Facilities District Ordinance.Authorizing Levy of Special Taxes in a Community Facilities District.pdf

9. NEW BUSINESS
9A. Consideration of City RESOLUTIONS to Approve Salary Increases 1) Adoption of City RESOLUTION to Approve Salary Increase for the Position of City Clerk effective February 1, 2022
2) Adoption of City RESOLUTION to Approve Salary Increase for the Position of Finance/Human Resource Specialist effective February 1, 2022 3) Adoption of City RESOLUTION to Approve Salary Increase for the Position of Public Works Supervisor effective February 1, 2022
Staff Report.Resolutions Approving Salary Increases.pdf Exhibit A.Resolution.City Clerk.pdf
Exhibit B.Resolution.Finance.HR Specialist.pdf
Exhibit C.Resolution.Public Works Supervisor.pdf
9B. Approval of City RESOLUTION Amending the City's Salary Schedule Staff Report. Salary Schedule update 2022.pdf
Resolution. Feb 2022 Salary Schedule.pdf
9C. Comments by Council Members on Items of Interest to Sand City 9D. Upcoming Meetings/Events

10. CLOSED SESSION
10A. City Council/Successor Agency Board to adjourn to Closed Session regarding:
1). Conference with labor negotiator (Cal. Gov. Code Section 54957.6) Agency negotiator: City Attorney/Acting City Manager Vibeke Norgaard Represented employees: Sand City Police Officers' Association 2). Conference with legal counsel - anticipated litigation (Cal. Gov Code section 54956.9(d)(2)).
4 10B. Re-adjourn to Open Session to report any action taken at the conclusion of Closed Session in accordance with California Government Code section 54957.1

11. ADJOURNMENT
The current agenda is available in PDF format on our website at:
www.sandcity.org
If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation.
5 AGENDA ITEM
5A.

Approval of January 18, 2022 Sand City
Council Meeting Minutes
6 _____________________________________________________________________________________________ Joint Sand City and Successor Agency of the Redevelopment Agency

01.18.2022 Council Meeting Minutes

MINUTES

JOINT SAND CITY COUNCIL AND SUCCESSOR

AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, January 18, 2022
5:30 PM
As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference
Mayor Carbone opened the meeting at 5:31 p.m.

AGENDA ITEM 1, ROLL CALL

Present: Mayor Mary Ann Carbone
Council Member Cruz (virtual attendance)
Council Member Sofer (virtual attendance)
Council Member Hawthorne (virtual attendance)
Council Member Blackwelder (virtual attendance)
Staff: Vibeke Norgaard, Acting City Manager/City Attorney Connie Horca, City Clerk (virtual attendance)
Charles Pooler, City Planner
AGENDA ITEM 2, PLEDGE OF ALLEGIANCE
The pledge of allegiance was led by Mayor Carbone.

AGENDA ITEM 3, INVOCATION
The invocation was led by Reverend Robert Hellam.

AGENDA ITEM 4, ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, & CITY STAFF Acting City Manager/City Attorney Vibeke Norgaard announced the results of the January 14, 2022 Oversight Board meeting and the OB’s decision to uphold the loan as an enforceable obligation. She provided an update on the West Bay project, City Hall improvements, notified Council of the recruiter’s update on the City Manager recruitment, the Community Facilities District, and execution of the MOU and the First Amendment to the Development Agreement.

City Engineer consultant Leon Gomez provided an update on the Seaside Sanitation District sewer project, its expected date to commence at the end of January, streets that would be impacted, the length of the project to be approximately 3 months, and notification to residents/businesses that would be impacted.

There was discussion regarding street access, the electrical pole at the Catalina Lofts project and the stop work order. Mr. Gomez also provided an update on the construction of New Phase 1 wells and desalination plant water production.
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01.18.2022 Council Meeting Minutes
AGENDA ITEM 5, COMMUNICATIONS
5:50 p.m. Floor opened for Public Comment.

Vice President Todd Sheller of Lyles Diversified Inc. provided an update on the completion of Sabu Shake Way, the fence line relocation, and pending review from California Dept. of Fish and Wildlife (CDFW). He noted that the South of Tioga project is going well and requested that the City provide a letter of support to the CDFW.
5:53 P.M. Floor closed to Public Comment.

AGENDA ITEM 6, CONSENT CALENDAR
6A. There was no discussion of the December 21, 2021 Sand City Council Meeting Minutes.
6B. There was no discussion of City Resolution updating the Appointments to Various Local and Regional Agencies and Boards effective January 19, 2022 6C. There was no discussion of the City Resolution confirming Members of the Sand City Arts Committee.
6D. There was no discussion City/Successor Agency Monthly Financial Report, November 2021.
6E. There was no discussion of the City Resolution authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the period of January 19, 2022 through February 18, 2022 pursuant to AB 361 and Ralph M. Brown Act Provisions.

Motion to approve the Consent Calendar was made by Council Member Blackwelder, seconded by Council Member Sofer. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Sofer. NOES: None. ABSENT: Council Member Hawthorne. ABSTAIN:

None. Motion carried.

AGENDA ITEM 7, CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar.

AGENDA ITEM 8, PRESENTATION
{Council Member Cruz recused from the virtual meeting due to a possible conflict of interest by residing within 500’ of the subject property}
8A. Presentation by City Planner Charles Pooler and Vice President Todd Sheller of Lyles Diversified, Inc., on the Conceptual Park and Playground Designs for the South of Tioga easement
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01.18.2022 Council Meeting Minutes
City Planner Charles Pooler presented the site layout and conceptual designs for the South of Tioga easement. He displayed visual renderings of the proposed styles and designs of the playground equipment, sections, and elevations of the park area.

Mr. Sheller mentioned that the conceptual designs for the playground was created by Rhana Creek.

The Council discussed the various designs, how the materials used would last in a coastal environment, and suggestions to use different types of equipment to appeal to children of various ages.
6:09 P.M. The Mayor opened the floor to public comment, and seeing none, closed the floor to public comment.

The Mayor thanked Mr. Pooler and Mr. Sheller for the presentation. {Mayor Carbone recused from the meeting due to a possible conflict of interest by residing within 500’ of the subject property. Vice Mayor Blackwelder presided over the meeting.

Council Member Cruz remained recused.}
8B. Presentation by Leon Gomez, Contract City Engineer of Harris and Associates, Mike Bellinger of BFS Architects, and Mark Parker, Sand City Public Works Supervisor on the Calabrese Park Improvement Project Contract City Engineer Leon Gomez provided the project history of Calabrese Park, pursuit of the Prop 68 grant funding and subsequent award of funds to Sand City, and the project requirement to install ADA improvements. He introduced Mike Bellinger of BFS Architects who will be reporting on the proposed park improvements.

Mike Bellinger of BFS Architects provided visual renderings of the site plan, samples of playground equipment, where playground equipment would be installed, and conceptual plans of the upper, middle, and lower levels of the park.

Mr. Gomez also reported on the proposed civil improvements of the streets surrounding the park to include rehabilitation of the parking areas, curb & gutter improvements, replacement walkways in front of City Hall, as well as the estimated costs for both the park replacement and civil improvements. He reported on the funding sources for the park project and civil improvements, and recommended that the remaining $300,000 be spread out over a 3-year period.

The Council expressed concerns regarding the high expense for civil improvements, streets continuing to degrade over time, and the rise in costs to obtain materials/products.
6:35 P.M. Floor opened for Public Comment.
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01.18.2022 Council Meeting Minutes
Sand City resident Michelle Djokic expressed that it would be a nice feature to have a display of the history of Sand City and the original people who lived in the area.

Vice Mayor Blackwelder was in agreement with Ms. Djockic’s suggestion. 6:37 P.M. Floor closed to Public Comment.
{Mayor Carbone and Council Member Cruz rejoined the meeting. Mayor Carbone presided over the meeting.}
8C. Presentation by Steven Kitrell, Founder of Veloce Valuations on Proposed 2022 Petrol & Paint Celebration of the Arts
Mr. Steven Kitrell, founder of Veloce Valuations presented a proposal for a Petrol and Paint event for Sand City. He provided a footprint of the event, use of the existing murals as a backdrop for the automobiles, types of automobiles that would be participating, a theme at the proposed locations, the use of the Art Park for 20-25 cars, and a tentative date of May 22, 2022.

In response to Council Member Cruz inquiry why he chose the date in May and not ‘car week’ in August, Mr. Kitrell responded that the primary goal was to make Monterey a place for year-round events, that hotels are usually full in the area, and would like to make this a special event.

Council Member Hawthorne expressed that a different time frame is a good idea. Mr.

Kitrell responded to his inquiry regarding the ownership of the vehicles to be displayed.

Council Member Sofer mentioned Sand City’s history in car involvement, the excitement of a different venue, and stressed the importance of have a positive, safe and friendly environment.

Mr. Kitrell informed the Council of his experience in dealing with people involved with Concours de’ elegance, his staff and volunteers, and noted that it would be a oneday event, from 10:00 a.m. to 2:00 p.m. He also reported on the number of cars he predicts will be displayed at each section of the City, and that the automobiles would relate to the type of mural at the location.

In response to Council Member Hawthorne’s inquiry regarding the costs, Mr. Kittrell is approximating $25 per person including the entry fee.

Mayor Carbone asked Mr. Kitrell whether he had received property owners’ permission for the private property involved which he responded affirmatively to. She also mentioned the street work that will occur in Sand City. Mr. Kitrell remarked that he was open to conduct an October event and provided additional information on a fundraising event for a mural.
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01.18.2022 Council Meeting Minutes
7:15 P.M. Floor opened for Public Comment.

Sand City resident Michelle Djokic suggested having a display of electric cars. 7:16 P.M. Floor closed to Public Comment.

There was consensus of the Council directing Staff to work with Mr. Kitrell and to place the item on a future agenda further project details.

AGENDA ITEM 9, PUBLIC HEARING
{A name draw was conducted between Council Members Blackwelder, Hawthorne, and Sofer.

Council Members Hawthorne and Sofer recused from the virtual meeting due to a possible conflict of interest by residing within 500’ of the subject property.} 9A. Consideration of City RESOLUTION Approving Conditional Use Permit 650 for Michelle Djokic to Conduct and Host Performing Arts and Cultural Events at 440-A Ortiz Avenue
City Planner Charles Pooler presented the application submitted by Michelle Djokic to conduct and host performing art and cultural events at 440-A Ortiz Avenue. He reported that the applicant’s unit is in a mixed-use building with two residential condominium units split vertically on the 2nd and 3rd levels, outlined the project description with the intent to promote and perform various art and performing art mediums to include, film theater, music of multiple genres, and dance. The proposed events would occur during the weekday evenings after 4:30 p.m., and possibly extending to earlier daytime house on weekends, with no set schedule.

The City’s zoning code does not specifically identify parking requirements for performing art/cultural events and the closest would be ‘assembly halls without fixed seats”, and would exceed all of the on-site parking; especially those sites that are designated for specific units. Should the Council decide that the ‘assembly’ parking requirement is not applicable to the applicant’s use, the Council can make a finding with the use permit language to be amended. Mr. Pooler read the recommended language in its entirety for the conditional use permit.

Mr. Pooler also reported on parking in-lieu fees charges, possible noise impacts that may be generated with the applicant’s use, building and fire codes, that no truck deliveries or shipments are anticipated, and no additional water allocation is necessary for the proposed use. Staff is in support of the applicants use as it is compliant with Policy 2.1.1 of the General Plan to help vitalize the West End District and artist community. Staff would support an approval if the Council would make the finding that the ‘assembly’ classification of the Municipal Code does not appropriately describe the applicants use. A letter of support was received by the Arts Council of Monterey.
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01.18.2022 Council Meeting Minutes
Mr. Pooler further noted a typographical correction to the permit in Condition #3, that should read 10:00 p.m., not 9:00 p.m.

The Council received information regarding approximately how many events/performances may occur in a given week or month, and whether the applicant was the owner of the unit. Vice Mayor Blackwelder noted that he does not hear anything living next door to Ms. Djokic building, is a wonderful use of the property, and supports that the ‘assembly’ clause not apply to the use. 7:45 P.M. The Mayor opened the floor for public comment, and seeing none, closed the floor to public comment.

The applicant Michelle Djokic expressed her excitement and will work with the building official to provide another exit if the number of attendees exceed maximum capacity. The applicant further requested that the time on the permit be extended to 10:30-11:00 p.m. to clean and allow for conversation following a performance.

Mr. Pooler noted the change to also include that special circumstances may be allowed in excess of weekly performances subject to City Manager approval.

In response to the Mayor’s inquiry whether the applicant was in agreement with the conditions of the use permit, the applicant responded that she was in agreement with permit conditions.

Motion to approve the City Resolution approving Conditional Use Permit 650 for Michelle Djokic to Conduct and Host Performing Arts and Cultural Events at 440-A Ortiz Avenue as amended was made by Council Member Blackwelder, seconded by Council Member Cruz. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz. NOES: None. ABSENT: None. ABSTAIN: Hawthorne, Sofer.

Motion carried.
{Council Members Hawthorne and Sofer returned to the meeting} AGENDA ITEM 10, NEW BUSINESS
10A. Approval of City RESOLUTION Authorizing the City Attorney to Execute a Contract with Meyers Nave, Riback, Silver & Wilson, PLC Acting City Manager/City Attorney Vibeke Norgaard reported that the City has worked with Meyers Nave in the past, a law firm that has assisted Sand City on a number of legal projects, and that the amount of $37,495 has already been allocated in the budget through July 2022. Staff recommends approval of the attached resolution.
8:03 P.M. The Mayor opened the floor for public comments and seeing none, closed the floor to public comment.
12 _____________________________________________________________________________________________ Joint Sand City and Successor Agency of the Redevelopment Agency

01.18.2022 Council Meeting Minutes
Motion to approve the City Resolution authorizing the City Attorney to Execute a Contract with Meyers Nave, Riback, Silver & Wilson, PLC was made by Council Member Cruz, seconded by Council Member Sofer. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT:

None. ABSTAIN: None. Motion carried.
10B. Consideration of Successor Agency RESOLUTION Authorizing the Agency Counsel to Execute a Contract with Meyers, Nave, Riback, Silver & Wilson, PLC
Acting City Manager/Agency Attorney Norgaard presented the Successor Agency resolution regarding a contract with Meyers, Nave, Riback Silver & Wilson. She reported that at the January 14, 2022 Oversight Board meeting, the Board approved the reinstatement of the loan, and that part of the process may involve litigation should it not be approved by the Department of Finance. The contract will utilize funds from the Successor Agency for any expenses incurred. Staff recommends approval of the attached resolution.
8:08 P.M. The Mayor opened the floor for public comment, and seeing none, closed the floor for public comment.

Motion to approve the Successor Agency Resolution authorizing the Agency Counsel to Execute a Contract with Meyers Nave, Riback, Silver & Wilson, PLC was made by Agency Member Cruz, seconded by Agency Member Sofer. Roll call Vote AYES: Agency Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES:

None. ABSENT: None. ABSTAIN: None. Motion carried.
10C. Consideration and Approval of Future Dates for 2022 Sand City Events The Council reviewed the dates for upcoming Sand City events for 2022. Acting City Manager/City Attorney Norgaard that the exact dates for the We.mural festival will be announced at a future date, although it typically falls before the weekend of the West End Celebration.

There was consensus of the Council approving the dates for 2022 Sand City Events.
10D. Comments by Council Members on Items of Interest to Sand City Vice Mayor Blackwelder reported on the Waste Management meeting and SB 1383 recycling requirements that should were effective beginning in January.

Mr. Pooler added that enforcement and citation would begin in 2024. 10E. Upcoming Meetings/Events
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01.18.2022 Council Meeting Minutes
The City Clerk reported that the upcoming January MCBC Luncheon has been postponed due to rising Covid cases.

AGENDA ITEM 12, ADJOURNMENT
The Mayor adjourned the meeting at 8:18 p.m. until the next regularly scheduled Council meeting on Tuesday, February 1, 2022.
_______________________
Connie Horca, City Clerk
14 AGENDA ITEM
5B.

Approval of City/Successor Agency
Financial Report, December 2021
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35 36
37 38
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57 AGENDA ITEM
5C.

Approval of City RESOLUTION Authorizing
Contract Services with Bartel Associates,
LLC to Perform Actuarial Valuation
Services for Fiscal Year ending June 30,
2022 in an amount not to exceed $4,850
58 59
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64 AGENDA ITEM
7A.

Presentation by So Gnar, Inc. and Council
Discussion regarding We.mural Festival
2022, including consideration of Festival
Budget
65 2021 Recap and Proposed Vision for the 3rd Annual Art Gathering curated by Pat Milbery & Hunter Stevens of the So-Gnar Creative Division.

WE. MURAL FESTIVAL 2022
66 67
68 69
We were so incredibly proud of how the 2nd
annual we. Art Gathering turned out this year!
For the 2nd year in a row, the event was held
during a pandemic yet we were so excited to
work in conjunction with the West End
Celebration and have so many members of the
public come and look out the art as it was
progressing. The Murals of Monterey County
Instagram has even started doing walking
mural tours!
In 2020, we curated 12 local and national
artists across 6 walls.

In 2021, we curated 31 local, national and
international artists this year across 13 walls.

For 2022, we’d like to scale back the number
of artists and aim for a max number of 12-14
artists on 6-8 walls. From a curation and
managerial stand point, this will make for a
much more streamlined curation process and
allow both the 2022 murals and the existing
pieces to really shine.

We have a shortlist of regional, national and
international artists we are wanting to reach
out to, (with approval from the art committee)
and will be putting out another local artist call.

LOOKING TO THE FUTURE
2021 RECAP &
70 we. Mural Festival - 2022 Proposed Budget
Total
$80,000.00
Item Cost
So-Gnar Inc. Art Curation $25,000.00
Artist Commission (12) $30,000.00
Equipment Rental $10,000.00
Paint/Supplies $7,500.00
Lodging Cost $6,000.00
Videography/Marketing $1,500.00
71 PROPOSED 2022 DATES
There are two different options we’d like to explore with regards to the 2022 we. Art Gathering.

Option 1: August 18, 2022 - August 25, 2022
-Murals will start the week before the West End Celebration and finish up before the event is being set up.

Option 2: August 22, 2022 - August 29, 2022
-Murals will be finishing up during the West End Celebration like they did last year. We will coordinate a cohesive plan with Steve and the WEC team to guarantee a smooth transition between the events and a great visual display.
72 - “Awesome Art In Sand City” -
California Live: https://bit.ly/
3FY0DCe
- “Sand City is making its own
reputation into reality as it
becomes a thriving arts
community.” - Monterey
County Weekly: https://bit.ly/
3rNzih1
- “Artists hit the streets of Sand
City to paint murals for West
End Celebration” - KSWB:
https://bit.ly/32ua92l
- “Looking to the return of the
we. Mural Festival in Sand
City” - Monterey Herald:
https://bit.ly/3IBcAPS
2021 PRESS LINKS
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AGENDA ITEM
8A.

Consideration and Approval of South of
Tioga Development Project Community
Facilities District No. 2021-1 Formation
Public Hearing, Elections and
Authorization of Special Taxes
77 Exhibit C

City of Sand City

STAFF MEMO
TO: Mayor and City Council
FROM: Vibeke Norgaard, Acting City Manager/City Attorney DATE: January 26, 2022
FOR: February 1, 2022 Council meeting
SUBJECT: South of Tioga Development Project – Community Facilities District No. 2021-1 Formation Public Hearing, Election and Authorization of Special Taxes
Background
As general background, at a June 5, 2018 public hearing and City Council meeting, Council approved the Vesting Tentative Map 18-01 (“VTM”), and related mitigation monitoring and reporting program (“MMRP”) for the South of Tioga Project, a project proposed by DBO Development No 30 LLC (Developer) to redevelop property in the approximately 10.64 acre area bounded by Tioga Avenue to the northeast, California Avenue to the southeast, East Avenue to the southwest, and the Merle street right-ofway to the northwest in the central portion of the City, generally referred to as the “South of Tioga” district. (“Project”). (Resolutions SC 18-58, SC18-59). Also on June 5, 2018, the City Council certified an Environmental Impact Report (EIR) for the Project (“EIR”). On November 6, 2018, the City Council approved conditional use permits and coastal development permits for a hotel and associated parking on parcels H1, H2, H1A and H2A. (Resolution Nos. SC 18-98, 18-99, 18-100 and 18-101). On December 4, 2018, the Council adopted goals and policies and appraisal standards for community facilities districts within Sand City. (Resolution SC 18-114, 2018).

On October 20, 2021, DBO and the City entered into a development agreement for the South of Tioga Project. (“Development Agreement”). A First Amendment to the Development Agreement was adopted at the City Council’s December 21, 2021 regular meeting (“First Amendment”).

In accordance with the VTM, the Development Agreement and the First Amendment, in order to offset negative fiscal impacts of the development and provide a funding mechanism for certain public services and maintenance, the Developer (owners of not less than 10% of the area of land proposed to be included in the proposed CFD) has petitioned the City to form a community facilities district (“CFD”).

On December 21, 2021 the formation of the Community Facilities District was initiated by adoption of the Resolution of Intention to Establish Community Facilities District No. 2021-2 (South of Tioga Project) (“Resolution of Intention”) and to Authorize the Levy of Special Taxes. The resolution described the services covered by the CFD, the CFD 78 Exhibit C

boundary and set a time and place for the public hearing on the establishment of the CFD.

CFD
Under the Mello-Roos Community Facilities Act of 1982, (Cal. Gov. Code section 53311 et seq.) (the “Act”), the City Council is authorized to establish a community facilities district and to act as its legislative body.

To that end, in July of 2018, NBS prepared a Fiscal Impact Analysis (“FIA”) related to the South of Tioga project. The FIA provides analysis and backup related to the fiscal impacts of the project on City services. Additionally, maintenance costs were identified for project specific services that are in addition to the fiscal impacts. Sara Mares at NBS has prepared all the necessary documents for the CFD on behalf of the City.

Public Hearing
The Resolution of Intention directed the City Manager to prepare the CFD Report (Att.

A). The Resolution of Intention also set the February 1, 2022 meeting as the time and place for a public hearing on the establishment of the CFD. In addition to the public hearing, written protests may be filed with respect to the formation of the CFD.

At the conclusion of the public hearing, if the CFD formation has not been eliminated by a protest (by 50% or more of the registered voters residing within the District or the owners of ½ or more of the area of land within the District) the City Council may consider the Resolution of Formation.

Resolution of Formation
The Resolution of Formation (Att. B) approves the CFD Report, confirms whether written protests have been filed against the formation of the CFD, references the recording information for the CFD boundary map, describes the services to be funded by the CFD, confirms the Rate and Method of Apportionment (“RMA”), designates the City Manager or their designee as the party responsible for preparing the annual special tax levy, provides for a special tax lien to be recorded to secure the special tax levy and proposes an appropriations limit for the CFD. The RMA describes the rates and method by which special taxes may be levied within CFD 2021-1. The estimated revenue is $550,000, which will increase by CPI on an annual basis in accordance with the Development Agreement and First amendment. There is also a mechanism by which the amount of special tax levied may be reduced if certain transient occupancy tax thresholds are exceeded by the hotel property within the CFD.

Election
By their consent via the executed petition, the landowner electors in the CFD have waived the election noticing period for the CFD election. This allows the City Council to 79 Exhibit C

call the election and certify the election results at this Council Meeting by adoption of the attached resolutions (Att. C & Att. D). The Resolution Certifying the Election Results also orders the recordation of a continuing lien against all non-exempt real property in the CFD. The ballot package was mailed to the landowner elector and has been returned to the City Clerk.

Ordinance
The Ordinance (Att. E) authorizes the levy of special taxes within the CFD in accordance with the RMA. The first reading of the ordinance will be followed by publication of a summary of the ordinance and then its adoption, anticipated to occur at the February 15, 2022 Council Meeting.

Next Steps
Following the adoption of the ordinance, the City will levy special taxes in accordance with the RMA, the First Amendment and the Development Agreement. The First Amendment to the Development Agreement provides that the CFD tax payments shall commence on the first of August following the issuance of the first Certificate of Occupancy issued for the Project.

CEQA
The action is not subject to the California Environmental Quality Act (CEQA) as there is no possibility that the adoption of a resolution of intent to form a CFD activity in question could have a significant effect on the environment. (Cal. Pub. Res. Code § 21065; Cal.

Code Regs. tit. 14, § 15061(B)(3)).

FISCAL IMPACT
The establishment of the CFD in the amount of $550,000 is intended to mitigate the negative fiscal impact of the Project.

STAFF RECOMMENDATION
Staff recommends APPROVAL of the resolution related to this first step in the CFD formation process.

ATTACHMENTS
Att. A: CFD Report
Att. B: Resolution of Formation
Att. C: Resolution Calling Election
Att. D: Resolution Certifying Election Results
Att. E: Ordinance
80 ATTACHMENT A
81 82
83 84
85 86
87 88
89 90
91 92
93 94
95 96

AGENDA ITEM
8B.

Approval of City RESOLUTION Establishing
Community Facilities District No. 2021-1
(South of Tioga Project)
97 ATTACHMENT B

CITY OF SAND CITY
RESOLUTION SC ______, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2021-1 (SOUTH

OF TIOGA PROJECT)
WHEREAS, on December 21, 2021, this City Council of the City of Sand City (the “City Council”) adopted Resolution SC 21-80, 2021 entitled “A Resolution of Intention to Establish Community Facilities District No. 2021-1 (South of Tioga Project) and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to form the City of Sand City Community Facilities District No. 2021-1 (South of Tioga Project) (the “District”), pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the District and stating the services to be provided, the estimated cost of providing such services, and the rate and method of apportionment of the special tax to be levied within the District to pay for the services, is on file with the City Clerk (the “Clerk”) and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and
WHEREAS, under the Resolution of Intention, the City Manager was directed to make, or cause to be made, and file with the Clerk a report (the “Report”) in writing, presenting the services to be provided and an estimate of the reasonable cost of providing the services. The Report was prepared and submitted to the Clerk prior to the public hearing described below; and WHEREAS, the Resolution of Intention called for a public hearing pertaining to the formation of the District and the levy of said special tax to be held on Tuesday, February 1, 2022, at 5:30 p.m. or as soon thereafter as the matter may be heard, at the meeting place of the City Council; and WHEREAS, under the Resolution of Intention, the Clerk was directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District, and the Clerk caused the publication of such notice at least seven (7) days before the date set for said public hearing; and
WHEREAS, on this date, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the District; and WHEREAS, at the public hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District, the services to be provided therein and the levy of such special tax were heard and a full and fair public hearing was held; and WHEREAS, written protests with respect to the formation of the District, the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District or property owners of one-half (1/2) or more of the area of land within the District and not exempt from the proposed special taxes; and
WHEREAS, the special tax proposed to be levied in the District to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special taxes. 98

ATTACHMENT B
NOW, THEREFORE, be it resolved as follows:

1. The foregoing recitals are true and correct.

2. The proposed special tax to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Act.

3. All prior proceedings taken by the City Council in connection with the establishment of the District and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the requirements of the Act. The City Council has heretofore adopted Local Goals and Policies for Community Facilities Districts, and the City Council hereby finds and determines that the District is in conformity with said goals and policies.

4. The community facilities district designated as the “City of Sand City, Community Facilities District No. 2021-1 (South of Tioga Project)” is hereby established pursuant to the Act.

5. The District Report is hereby approved.

6. The boundaries of the District, as set forth in the map entitled "Map of Proposed Boundaries of the City of Sand City Community Facilities District No. 2021-1 (South of Tioga Project), City of Sand City, County of Monterey, State of California" heretofore recorded in the Monterey County Recorder’s Office on December 28, 2021 as Document Number 2021085494, in Book 5 at Page 20 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference and shall be the boundaries of the District.

7. The type of public services proposed to be financed by the District and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein (the “Services”). It is hereby found and determined that the Services are necessary to meet the increased demands as the result of development occurring in the District.

8. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the District pursuant to the Rate and Method of Apportionment, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected landowners.

9. The Rate and Method of Apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the District to estimate the maximum amount such owner will have to pay, is shown in Exhibit B attached hereto and hereby incorporated herein.

10. The City Manager of the City of Sand City, 1 Pendergrass Way, Sand City, California, telephone number (831) 394-3054, or a designee thereof, is the officer of the District who will be responsible for preparing annually a current roll of the levy of the special tax obligations by assessor’s parcel number and who will be responsible for estimating future levies of the Special Tax.

11. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the collection of the special tax by the District ceases.
99 ATTACHMENT B

12. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at an amount equal to $1,000,000 annually and such appropriations limit shall be submitted to the voters of the District as hereafter provided. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the California Constitution.

13. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this City Council.

14. This Resolution shall take effect upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Sand City on the _____ day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________________
Mary Ann Carbone, Mayor
ATTEST:

Connie Horca, City Clerk
100

ATTACHMENT B

EXHIBIT A

CITY OF SAND CITY
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(SOUTH OF TIOGA PROJECT)

DESCRIPTION OF SERVICES TO BE FINANCED BY THE DISTRICT
The captioned Community Facilities District will finance, in whole or in part, the following services ("services" shall have the meaning given that term in the Mello-Roos Community Facilities Act of 1982), including all related administrative costs, expenses and related reserves for replacement of vehicles, equipment and facilities:

Services
The services shall include, but not be limited to: (i) police, fire and related paramedic services required to sustain the public safety service delivery capability for emergency and non-emergency services including related facilities, equipment, vehicles, fire apparatus, services, supplies and personnel; (ii) maintenance and lighting of parks, parkways, streets, roads and open space; (iii) flood and storm protection services; as well as the provision of other public services authorized to be funded under Section 53313 of the California Government Code. CFD No. 2021-1 may also fund any of the following related described in the preceding sentence: obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof.

The services to be financed by CFD No. 2021-1 are in addition to those provided in the territory of CFD No. 2021-1 before the date of creation of the district, and will not supplant services already available within that territory when CFD No. 2021-1 is created.

Administrative Expenses:

The administrative expenses to be funded by CFD No. 2021-1 include the direct and indirect expenses incurred by the City in carrying out its duties with respect to CFD No. 2021-1, including, but not limited to, the levy and collection of the special taxes, fees and expenses of attorneys, any fees of the County of Monterey related to CFD No. 2021-1 or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City's general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to CFD No. 2021-1 or the services authorized to be financed by CFD No. 2021-1, and expenses incurred by the City in undertaking action to foreclose on properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to CFD No. 2021-1.

Other:

The incidental expenses that may be funded by CFD No. 2021-1 include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of CFD No. 2021-1.
101

ATTACHMENT B

EXHIBIT B

CITY OF SAND CITY
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(SOUTH OF TIOGA PROJECT)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
102
City of Sand City
Community Facilities District No. 2021-1 (South of Tioga Project) Page 1 A Special Tax as hereinafter defined shall be levied and collected within the City of Sand City Community Facilities District No. 2021-1 (South of Tioga Project) (“CFD 2021-1”) in an amount determined by the application of the procedures described below. All of the Taxable Property (defined below), unless exempted by the provisions hereof, shall be taxed for the purposes of, to the extent, and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2 as that may be amended from time to time, that is accessory to a single-unit dwelling. The ADU may be on the same Assessor’s Parcel as the single-unit dwelling or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Dwelling Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is not considered a separate Dwelling Unit from the primary Dwelling Unit on such Assessor’s Parcel for purposes of the Special Tax. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will not be subject to the levy of the Special Tax.
“Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map and secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final subdivision map, record of survey, or other recorded document creating or describing the Assessor’s Parcel. If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and geographic information systems (GIS).
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of CFD 2021-1 including, but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City, the CFD Administrator, or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs to the City, CFD 2021-1, or any designee thereof in complying with

CITY OF SAND CITY
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(SOUTH OF TIOGA PROJECT)

RATE AND METHOD OF APPORTIONMENT
103
City of Sand City
Community Facilities District No. 2021-1 (South of Tioga Project) Page 2 disclosure or reporting requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; and the costs of the City, CFD 2021-1, or any designee thereof related to any appeal of the levy or application of the Special Tax. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD 2021-1 for any other administrative purposes, including, but not limited to, attorney’s fees, proposed formation of CFD 2021-1, or any other expenses incidental to the provision of the services. “Annual Services Costs” means the amounts required to fund services authorized to be funded by CFD 2021-1.
“Assessor’s Data” means Acreage, Use Code, Property Owner or other Assessor’s Parcel information contained in the records of the Assessor of the County. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the assessor of the County designating parcels by an Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Assigned Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. "Backup Special Tax" means the Backup Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with the applicable subsection of Section C below. “Certificate of Occupancy” means that certificate issued by the City certifying a building’s compliance with applicable building codes and indicating it is suitable for occupancy. “CFD 2021-1” means the City of Sand City Community Facilities District No. 2021-1 (South of Tioga Project).
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. “City” means the City of Sand City.
“City Council” means the City Council of the City of Sand City, acting as the legislative body of CFD 2021-1.
“County” means the County of Monterey.
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Community Facilities District No. 2021-1 (South of Tioga Project) Page 3 “Excess Hotel Property TOT Revenue for Hotel Property Benefit Initial” means that amount of Hotel Property TOT Revenue that is tendered to the City for the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied that is in excess of $1,060,000, excluding any enforcement costs incurred by the City in collecting the TOT and excluding any TOT that is collected and tendered to the City more than 60 days after it is due, up to a maximum of $250,000. “Excess Hotel Property TOT Revenue for Hotel Property Benefit” means that amount of Hotel Property TOT Revenue that is tendered to the City for the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied that is in excess of $1,300,000, excluding any enforcement costs incurred by the City in collecting the TOT and excluding any TOT that is collected and tendered to the City more than 60 days after it is due, up to a maximum of $125,000. “Excess Hotel Property TOT Revenue for Residential Property – R-1 Benefit” means that amount of Hotel Property TOT Revenue that is tendered to the City for the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied that is in excess of $1,610,000, excluding any enforcement costs incurred by the City in collecting the TOT and excluding any TOT that is collected and tendered to the City more than 60 days after it is due, up to a maximum of $150,000. “Excess Hotel Property TOT Revenue for Residential Property – R-2 Benefit” means that amount of Hotel Property TOT Revenue that is tendered to the City for the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied that is in excess of $1,760,000, excluding any enforcement costs incurred by the City in collecting the TOT and excluding any TOT that is collected and tendered to the City more than 60 days after it is due, up to a maximum of $150,000. “Exempt Property” means all Assessors’ Parcels that are exempt from the Special Tax pursuant to Section E.
“Fiscal Year” means the City of Sand City’s fiscal year period starting July 1 and ending on the following June 30.
“Hotel Property” means all Assessor’s Parcels within the boundaries of CFD 2021-1 that have an establishment providing short-term lodging accommodations and other services for travelers and tourists. Typical County use code is 5N.
“Hotel Property TOT Revenue” means certain transient occupancy tax (“TOT”) collected by the Hotel Property that is tendered to the City for a specified Fiscal Year. “Initial Fiscal Year” means Fiscal Year 2022/23.
“Initial Formation Costs” means the costs associated with the formation of CFD 2021-1 in the amount of $33,000 to be included in the Special Tax Requirement in the Initial Fiscal Year only. 105
City of Sand City
Community Facilities District No. 2021-1 (South of Tioga Project) Page 4 “Maximum Annual Special Tax” means the maximum Special Tax, determined in accordance with the provisions of Section C below, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Property Owner” means the owner of record of an Assessor’s Parcel as indicated in the Assessor’s Data, or as otherwise known to the CFD Administrator pursuant to a recorded grant deed, preliminary title report or other documentation deemed acceptable by the CFD Administrator. "Property Owner Association Property" means, for each Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2021-1 that is owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. “Proportionately” means for Taxable Property that the ratio of the Special Tax levy to the Maximum Annual Special Tax is equal for all Assessor’s Parcels within each classification (Hotel Property, Residential Property – R-1 and Residential Property – R-2) within CFD 2021-1. “Public Property” means any property which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City, or any other public agency.
“Residential Dwelling Unit” means any residential dwelling unit constructed or to be constructed for habitable living purposes located on an Assessor’s Parcel as indicated in the records of the County Assessor, or, if not indicated, as otherwise determined by the CFD Administrator based on available official information, including building permit(s) issued. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Residential Dwelling Unit shall not be considered a separate Residential Dwelling Unit for purposes of calculating the Special Tax. An Accessory Dwelling Unit that is on an Assessor’s Parcel alone that does not also include a primary Residential Dwelling Unit shall not be considered a separate Residential Dwelling unit for purposes of calculating the Special Tax. “Residential Property – R-1” means all Assessor’s Parcels within the boundaries of CFD 2021-1 that are zoned R-1.
“Residential Property – R-2” means all Assessor’s Parcels within the boundaries of CFD 2021-1 that are zoned R-2.
“Special Tax” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement.
“Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for CFD 2021-1 to: (i) pay the Annual Services Costs; (ii) pay Administrative Expenses; (iii) in Fiscal Years 2022/23, the Initial Formation Costs, (v) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement funds, or reserve funds for CFD 2021-1; and 106
City of Sand City
Community Facilities District No. 2021-1 (South of Tioga Project) Page 5 (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; and less a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. “State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD 2021-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Use Code” means that code indicating the primary land use of property assigned by the County Assessor and included in the Assessor’s Data.
“Welfare Exempt Property” means all Assessor’s Parcels within the boundaries of CFD No. 2021-1 that have been granted a welfare exemption pursuant to Section 53340 (c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code by the County.

B. ASSIGNMENT TO LAND USE CATEGORIES
On or about July 1 of each Fiscal Year when the County secured roll data is released, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers within CFD 2021-1. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent an Assessor’s Parcel(s) of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor’s Parcel(s) pursuant to Section C.

Each Fiscal Year, all Assessor’s Parcels within CFD No. 20-1 shall be classified as follows:

1. Each Assessor’s Parcel shall be determined to be Taxable Property, Exempt Property, Property Owner Association Property, Public Property, Welfare Exempt Property.

2. Each Assessor’s Parcel of Taxable Property shall further be classified as Hotel Property, Residential Property – R-1 or Residential Property – R-2.

Each Assessor’s Parcel of Developed Property, Taxable Public Property and Taxable Welfare Exempt Property shall further be classified as Residential Property, Townhome Property, Apartment Property, Flat Property, or Non-Residential Property.

C. MAXIMUM ANNUAL SPECIAL TAX
The Maximum Special Tax for each Assessor’s Parcel shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.

1. Assigned Special Tax
107
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Community Facilities District No. 2021-1 (South of Tioga Project) Page 6 The Assigned Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to the table below:

Property Land Use
Fiscal Year 2022/23
Assigned Special Tax per
Property Land Use
Fiscal Year 2022/23 Assigned Special Tax
Allocation
Hotel Property $250,000
Total Maximum Annual Special Tax per
Property Land Use for Hotel Property to be
allocated to all Assessor’s Parcels of Hotel
Property on a Per Acre basis
Residential Property – R-1 $150,000
Total Maximum Annual Special Tax per
Property Land Use for Residential Property
– R-1 to be allocated to all Assessor’s
Parcels of Residential Property – R-1 on a
Per Residential Dwelling Unit basis
Residential Property – R-2 $150,000
Total Maximum Annual Special Tax per
Property Land Use for Residential Property
– R-2 to be allocated to all Assessor’s
Parcels of Residential Property – R-2 on a
Per Residential Dwelling Unit basis
On July 1 of each Fiscal Year, commencing with the Fiscal Year following the issuance of the first Certificate of Occupancy for any Assessor’s Parcels within CFD 2021-1, the Assigned Special Tax as calculated above shall be increased by the percentage change in the June annualized Consumer Price Index (CPI) for U.S. City Average, All Items, All Urban Consumers. If the percentage change in the annualized CPI is negative, the Assigned Special Tax rates shall not be decreased but shall remain at the Assigned Special Tax amount as computed for the previous Fiscal Year.

2. Backup Special Tax
The Backup Special Tax shall be applied if the Residential Property – R-1 and/or the Residential Property – R-2 becomes Exempt Property for any reason. In such event, the Assigned Special Tax that was assigned to such Exempt Property shall be reallocated to the remaining Taxable Property within CFD 2021-1 pro rata based on the Assigned Special Tax shown in the table above.

For example, if the Residential Property – R-2 becomes Exempt Property, the $150,000 Assigned Special Tax will be allocated to the Hotel Property in the amount of $75,000 and to the Residential Property – R-1 in the amount of $75,000.

On July 1 of each Fiscal Year, commencing with the Fiscal Year following the issuance of the first Certificate of Occupancy for any Assessor’s Parcel within CFD 2021-1] the Backup Special Tax as calculated above shall be increased by the percentage change in the June annualized Consumer Price Index (CPI) for U.S. City Average, All Items, All Urban Consumers. If the percentage change in the annualized CPI is negative, the Backup Special Tax rates shall not be decreased but shall remain at the Backup Special Tax amount as computed for the previous Fiscal Year. 108
City of Sand City
Community Facilities District No. 2021-1 (South of Tioga Project) Page 7 D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with the Fiscal Year following the issuance of the first Certificate of Occupancy for any Assessor’s Parcel within CFD 2021-1, and through Fiscal Year 2029/30, the CFD Administrator shall determine the Special Tax Requirement and shall levy the Special Tax on each Assessor’s Parcel of Taxable Property until the amount of Special Taxes equals the Special Tax Requirement. The Special Taxes shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Hotel Property at a rate of up to 100% of the applicable Maximum Annual Special Tax, less the Excess Hotel Property TOT Revenue for Hotel Property Benefit Initial amount when applicable.

Second: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Residential Property – R-1 at a rate of up to 100% of the applicable Maximum Annual Special Tax, less the Excess Hotel Property TOT Revenue for Residential Property – R-1 Benefit amount when applicable.

Third: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Residential Property – R-2 at a rate of up to 100% of the applicable Maximum Annual Special Tax, less the Excess Hotel Property TOT Revenue for Residential Property – R-2 Benefit amount when applicable.

Commencing with Fiscal Year 2030/31, and for each subsequent Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and shall levy the Special Tax on each Assessor’s Parcel of Taxable Property until the amount of Special Taxes equals the Special Tax Requirement. The Special Taxes shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Hotel Property at a rate of up to 100% of the applicable Maximum Annual Special Tax, less the Excess Hotel Property TOT Revenue for Hotel Property Benefit amount when applicable.

Second: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Residential Property – R-1 at a rate of up to 100% of the applicable Maximum Annual Special Tax.

Third: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Residential Property – R-2 at a rate of up to 100% of the applicable Maximum Annual Special Tax Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Residential Property be increased as a result of delinquencies by owners of other Assessor’s Parcels by more than ten percent (10%) above what the Assessor’s Parcel of Residential Property would have been levied had there been no delinquencies.

E. EXEMPTIONS
No Special Tax shall be levied on Public Property (except as otherwise provided in Sections 53317.3 and 53317.5 of the Act), Property Owner Association Property, or Welfare Exempt Property. 109
City of Sand City
Community Facilities District No. 2021-1 (South of Tioga Project) Page 8 However, should an Assessor’s Parcel no longer be classified as Public Property, Property Owner Association Property, or Welfare Exempt Property, its tax-exempt status will be revoked.

F. REVIEW/APPEAL
Any Property Owner may file a written appeal of the Special Taxes with the CFD Administrator claiming that the amount or application of the Special Taxes is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the appellant disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the Board of Directors requires the Special Taxes to be modified or changed in favor of the Property Owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes on the Assessor’s Parcel associated with the appeal in the Fiscal Year(s) following resolution of the appeal in favor of the Property Owner.

This procedure shall be exclusive and its exhaustion by any Property Owner shall be a condition precedent to filing any legal action by such owner.

G. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that CFD 2021-1 may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of the CFD 2021-1, and may collect delinquent Special Taxes through foreclosure or other available methods.

A Special Tax shall continue to be levied and collected within CFD 2021-1, as needed to fund the Annual Special Tax Requirement, in perpetuity.

H. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS
The Special Tax may not be prepaid.
110

AGENDA ITEM
8C.

Approval of City RESOLUTION Calling a
Special Election for the Community
Facilities District
111

ATTACHMENT C

CITY OF SAND CITY
RESOLUTION SC___, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY

CALLING A SPECIAL ELECTION FOR A COMMUNITY FACILITIES DISTRICT WHEREAS, this City Council of the City of Sand City (the “City Council”) adopted a resolution entitled “Resolution Establishing Community Facilities District No. 2021-1 (South of Tioga Project)” (the “Resolution of Formation”), ordering the formation of the City of Sand City Community Facilities District No. 2021-1 (South of Tioga Project) (the “District”), defining the public services (the “Services”) to be provided by the District, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, pursuant to the provisions of the Resolution of Formation, the propositions of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors of the District as required by the provisions of the Act; and NOW, THEREFORE, be it resolved as follows:

1. The foregoing recitals are true and correct.

2. Pursuant to the Act, the issues of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of the District at an election called therefor as provided below.

3. Pursuant to Section 53326(c) of the Act, this City Council finds that, for these proceedings, the qualified electors are the landowners within the District and that the vote shall be by such landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of the public hearing.

4. This City Council hereby calls an election to consider the issues described in Section 2, above, which election shall be held on February 1, 2022, and the results thereof canvassed at the meeting of this City Council on February 1, 2022. The City Clerk (the “Clerk”) is hereby designated as the official to conduct the election and to receive all ballots until the close of business on the election date. It is hereby acknowledged that the Clerk has on file the Resolution of Formation, a map of the boundaries of the District, and a sufficient description to allow the Clerk to determine the electors of the District. The election shall be conducted by messenger or mail-delivered ballot in accordance with the Act.

5. As authorized by Section 53353.5 of the Act, the issues described in Section 2 above shall be combined into a single ballot measure, the form of which as attached hereto as Exhibit A is hereby approved. The Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit A, to be delivered to each of the qualified electors of the District. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, have the return postage prepaid, and contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature 112

ATTACHMENT C
and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot.

6. This City Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the District. There is on file with the Clerk a written waiver executed by all of the qualified electors of the District allowing for a shortening of the time for the special election to expedite the process of formation of the District and waiving any requirement for notice, analysis and arguments in connection with the election. Accordingly, this City Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments and have thereby been fully protected in these proceedings. This City Council also finds and determines that the Clerk has concurred in the shortened time for the election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

7. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing the appropriations limit are cast in favor of the proposition after the canvass of the returns of such election, the City Council may levy such special tax within the District under the Act in accordance with the approved rate and method of apportionment of special tax. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in the Resolution of Formation, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered.

8. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the construction and/or acquisition of the Services and the incidental costs thereof including any debt, all as defined in the Resolution of Formation, shall constitute the specific single purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report as required by Section 50075.3 of the Government Code.

9. This Resolution shall take effect upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Sand City on the _____ day of February, 2022, by the following vote.

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________________
Mary Ann Carbone, Mayor
ATTEST:
___________________________
Connie Horca, City Clerk
113

ATTACHMENT C

EXHIBIT A

CITY OF SAND CITY
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(SOUTH OF TIOGA PROJECT)

OFFICIAL BALLOT

SPECIAL TAX ELECTION
This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Sand City (the “City”) no later than the hour of 5:30 p.m. on Tuesday, February 1, 2022, either by mail or in person. The Clerk’s office is located at 1 Pendergrass Way, Sand City, California.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another.

The estimated maximum amount of money raised annually by this measure is expected to be $550,000, in 2022/23 special tax rates, upon full build out of the CFD, based on the rate and duration of the special tax and subject to the tax escalation factor, as set forth in the rate and method of apportionment of special taxes for the CFD.

BALLOT MEASURE: Shall the City of Sand City be authorized to annually levy a special tax solely on lands within the Community Facilities District No. 2021-1 (South of Tioga Project) (the “CFD”) in accordance with the rate and method contained in the Resolution of Formation of the CFD adopted by the City Council on February 1, 2022, commencing in the City’s fiscal year 2022/23, to pay for services described in such Resolution, and shall the annual appropriations limit of the CFD be established in the amount of $1,000,000?
YES: __________
NO: __________
114

AGENDA ITEM
8D.

Approval of City RESOLUTION Declaring
Results of a Special Landowner Election
and Directing the Recording of a Special
Tax Lien
115

ATTACHMENT D

CITY OF SAND CITY
RESOLUTION SC ____, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY

DECLARING RESULTS OF A SPECIAL LANDOWNER ELECTION AND

DIRECTING THE RECORDING OF A SPECIAL TAX LIEN
WHEREAS, this City Council of the City of Sand City (the “City Council”) adopted a resolution entitled “Resolution Establishing Community Facilities District No. 2021-1 (South of Tioga Project)” (the “Resolution of Formation”), ordering the formation of the City of Sand City, Community Facilities District No. 2021-1 (South of Tioga Project), (the “District”), defining the public services (the “Services”) to be provided by the District, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, under the provisions of the Resolution of Formation, and pursuant to the resolution entitled “Resolution Calling a Special Election for a Community Facilities District” (the “Resolution Calling the Election”) heretofore adopted by this City Council, the propositions of the levy of the special tax and the establishment of the appropriations limit were submitted to the qualified electors of the District as required by the provisions of the Act; and
WHEREAS, pursuant to the terms of the Resolution Calling the Election, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A; and WHEREAS, this City Council has been informed of the Canvass, finds it appropriate and wishes to complete its proceedings for the District.

NOW, THEREFORE, be it resolved as follows:

1. The foregoing recitals are true and correct.

2. The issues presented at the special election were the levy of a special tax within the District and the approval of an annual appropriations limit of not to exceed an amount equal to the proceeds of the special tax collected annually all pursuant to the Resolution of Formation.

3. The City Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the District. Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the District by more than two-thirds (2/3) of the votes cast at the special election.

4. Pursuant to the voter approval, the District is hereby declared to be fully formed with the authority to levy the special taxes and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by this City Council with respect to the District were valid and in conformity with the Act.

5. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of Monterey a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this Resolution by the City Council.
116

ATTACHMENT D

6. This Resolution shall take effect upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Sand City on the _____ day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________________
Mary Ann Carbone, Mayor
ATTEST:
___________________________
Connie Horca, City Clerk
117

ATTACHMENT D

EXHIBIT A

CITY OF SAND CITY
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(SOUTH OF TIOGA PROJECT)

CANVASS AND STATEMENT OF RESULT OF ELECTION
I hereby certify that on February 1, 2022, I canvassed the returns of the election held on February 1, 2022, for the City of Sand City, Community Facilities District No. 2021-1 (South of Tioga Project) and the total number of ballots cast in such election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of Sand City, Community Facilities District
No. 2021-1 (South of Tioga Project)
Special Tax Election, February 1, 2022 __9__ _____ _____ _____ BALLOT MEASURE: Shall the City of Sand City be authorized to annually levy a special tax solely on lands within the Community Facilities District No. 2021-1 (South of Tioga Project) (the “CFD”) in accordance with the rate and method contained in the Resolution of Formation of the CFD adopted by the City Council on February 1, 2022, commencing in the City’s fiscal year 2022/23, to pay for services described in such Resolution, and shall the annual appropriations limit of the CFD be established in the amount of $1,000,000?
YES: __________
NO: __________
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on February 1, 2022.

By:

City Clerk
118

AGENDA ITEM
8E.

First Reading: ORDINANCE of the City
Council of the City of Sand City
Authorizing the Levy of Special Taxes in a
Community Facilities District
119

CITY OF SAND CITY
ORDINANCE NO. ____, 2022

AN ORDINANCE OF THE CITY COUNCIL OF CITY OF SAND CITY,

AUTHORIZING THE LEVY OF SPECIAL TAXES IN A COMMUNITY

FACILITIES DISTRICT
WHEREAS, this City Council of the City of Sand City (the “City Council”) on December 21, 2021, adopted Resolution SC 21-80, 2021 entitled “Resolution of Intention to Establish Community Facilities District No. 2021-1 (South of Tioga Project) and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”) has conducted proceedings (the “Proceedings”) to establish the City of Sand City Community Facilities District No. 2021-1 (South of Tioga Project) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”) provide for the costs of operating and maintaining stormwater and appurtenant facilities (the “Services) as provided in the Act; and WHEREAS, the Resolution of Intention called for a public hearing to be held on February 1, 2022, and as part of the Proceedings, the City Council held a public hearing under the Act relative to the determination to proceed with the formation of the District and the rate and method of apportionment of the special tax (the “Special Tax”) to be levied within the District to finance the Services and at such hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of the Special Tax were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; and WHEREAS, upon the conclusion of the hearing, this City Council adopted a resolution entitled “Resolution Establishing the Formation of Community Facilities District No. 2021-1 (South of Tioga Project)” (the “Resolution of Formation”), whereby the City Council (i) established the District, (ii) authorized the levy of the Special Tax within the District, and (iii) preliminarily established an appropriations limit for the District, all pursuant to the Act; and WHEREAS, on February 1, 2022, a special election was held among the landowner voters within the District at which the landowner voters approved the proposition relating to the levy of Special Taxes within the District and the establishment of an appropriations limit for the District by the two-thirds vote required by the Act, which approval has been confirmed by resolution of this City Council; and
WHEREAS, the City Council ordered the recordation with the County Recorder of the County of Monterey of a Notice of Special Tax Lien (the “Notice”).

NOW, THEREFORE, be it resolved as follows:

1. The foregoing recitals are true and correct.

2. By the passage of this Ordinance, the City Council hereby authorizes and levies the Special Tax within the District pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of Special Tax set forth in the Resolution of Formation, which rate and 120
method is by this reference incorporated herein. The Special Tax is hereby levied commencing in fiscal year 2022/23 and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District, as contemplated by the Resolution of Formation and the Proceedings.

3. The City Manager of the City of Sand City or designee or employee or consultant of the City of Sand City is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation.

4. Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation and the applicable provisions of the Act. In no event shall the Special Tax be levied on any parcel within the District in excess of the maximum Special Tax specified in the Resolution of Formation.

5. All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City of Sand City in administering the District, and the costs of collecting and administering the Special Tax.

6. The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The City Manager of the City of Sand City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Monterey in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of Monterey for fiscal year 2022/23 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City of Sand City.

7. If for any reason any portion of this ordinance is found to be invalid, or if the Special Tax is found inapplicable to any particular parcel within the District, by a court of competent jurisdiction, the balance of this ordinance and the application of the Special Tax to the remaining parcels within the District shall not be affected.

8. The Mayor shall sign this Ordinance and the City Clerk shall cause a summary of the same to be published immediately after its passage at least once in a newspaper of general circulation.

9. This Ordinance shall take effect 30 days from the date of final passage.

10. This Ordinance will not be codified and published in the Sand City Municipal Code.

INTRODUCED and first read on the 1st day of February, 2022; and PASSED AND ADOPTED this 15th day of February, 2022.
121
DATED:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
___________________________
ATTEST: Mary Ann Carbone, Mayor
__________________________
Connie Horca, City Clerk
122

AGENDA ITEM
9A.

Consideration of City RESOLUTIONS to
Approve Salary Increases 1) Adoption of
City RESOLUTION to Approve Salary
Increase for the Position of City Clerk
effective February 1, 2022 2) Adoption of
City RESOLUTION to Approve Salary
Increase for the Position of
Finance/Human Resource Specialist
effective February 1, 2022 3) Adoption of
City RESOLUTION to Approve Salary
Increase for the Position of Public Works
Supervisor effective February 1, 2022
123
Exhibit C

City of Sand City

STAFF MEMO
TO: Mayor and City Council
FROM: Vibeke Norgaard, Acting City Manager/City Attorney DATE: January 26, 2022
FOR: February 1, 2022 Council meeting
SUBJECT: Resolutions approving salary increases for the positions of City Clerk, Finance/HR Specialist and Public Works Supervisor Effective February 1, 2022.

Background
At its December 2, 2021 meeting, the Budget and Personnel committee considered requests by the City Clerk, Finance/HR Specialist and Public Works Supervisor for salary increases. The Committee made certain recommendations that were brought to the City Council for its consideration on January 18, 2022.

The City Council directed the City Attorney to bring back the attached resolutions to increase the salaries of the positions of City Clerk by 7.5%, Finance/HR Specialist by

7.5% and Public Works Supervisor by 7%. The resolutions become effective upon approval by Council.

CEQA
The action is not subject to the California Environmental Quality Act (CEQA) as there is no possibility that the approval of salary increases could have a significant effect on the environment. (Cal. Pub. Res. Code § 21065; Cal. Code Regs. tit. 14, § 15061(B)(3)).

FISCAL IMPACT
The total annual cost to the City of the salary increases is $20,800.

STAFF RECOMMENDATION
Staff recommends APPROVAL of the attached resolutions.

ATTACHMENTS
Exh. A: Resolution approving salary increases for the positions of City Clerk Exh. B. Resolution approving salary increases for the positions of Finance/HR Specialist Exh. C. Resolution approving salary increases for the positions of Public Works 124

CITY OF SAND CITY
RESOLUTION SC ____, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY TO

APPROVE SALARY INCREASE FOR THE POSITION OF CITY CLERK
EFFECTIVE FEBRUARY 1, 2022
WHEREAS, the City of Sand City wishes to ensure that Sand City offers an attractive salary and benefit package that is competitive with other cities on the Monterey Peninsula to retain and attract high quality City employees; and
WHEREAS, the Personnel and Budget Committee of the City Council has worked with staff to ensure that any proposed increase in salary are within the City’s ability to maintain a balanced budget to continue to deliver services to its residents; and WHEREAS, in October 2002, Connie Horca joined the City of Sand City working as a temporary employee in the finance department prior to becoming a permanent employee in 2005; and WHEREAS, upon retirement of the former City Clerk, Ms. Horca was appointed as the City Clerk in March 2021, and continues to perform duties in a highly satisfactory manner related to the office of the City Clerk in the preparation of agendas, directs its compilation, distribution and public posting, attendance at meetings; and serves as the local official for Elections, the Public Records Act, Political Reform and Brown Act; and
WHEREAS, Ms. Horca has satisfied her new duties at a commendable level and continues to educate herself regarding new developments in her field; and WHEREAS, Ms. Horca also has demonstrated her skills and knowledge of principles and practices of administrative management, systems analysis and implementation, records management, conduct of municipal elections, and continues to remain up to date with current policies, procedures, and laws related to the position of City Clerk.

WHEREAS, the changes referenced herein will be reflected in the mid-year budget amendment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sand City as follows:

1. That a 7.5% increase be applied to the current salary for the position of City Clerk.

2. That the City’s salary schedule be updated to reflect the salary increase.

3. That the Sand City Finance/Human Resources staff is directed and authorized to incorporate the above salary adjustments, to be effective on February 1, 2022.

PASSED AND ADOPTED by the City Council of the City of Sand City on this ___, day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________________
Mary Ann Carbone, Mayor
ATTEST:
_______________________
Connie Horca, City Clerk 125

CITY OF SAND CITY
RESOLUTION SC ____, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY TO

APPROVE SALARY INCREASE FOR THE POSITION OF FINANCE/HUMAN RESOURCE SPECIALIST EFFECTIVE FEBRUARY 1, 2022
WHEREAS, the City of Sand City wishes to ensure that Sand City offers an attractive salary and benefit package that is competitive with other cities on the Monterey Peninsula to retain and attract high quality City employees; and
WHEREAS, the Personnel and Budget Committee of the City Council has worked with staff to ensure that any proposed increase in salary are within the City’s ability to maintain a balanced budget to continue to deliver services to its residents; and WHEREAS, in November 2007, Devon Lazzarino joined the City of Sand City’s finance department, and has demonstrated a high level of knowledge and skills related to finance and accounting principles; and
WHEREAS, upon the departure of the prior Administrative Services Director in May, 2020 Ms. Lazzarino has taken on many additional responsibilities in both Finance and Human Resources and successfully navigated several complicated issues; and WHEREAS, Ms. Lazzarino’s duties involve the development of programs and procedures in support of Finance and Human Resources operations, tracks City contracts, grants and ledgers, maintains City bank accounts and personnel files, oversees the processing of payroll, accounts payables and receivables and business licenses, assists the City Manager with the annual budget and amendments; and
WHEREAS, Ms. Lazzarino works closely with the auditors and has successfully ensured that the City’s records remain updated and accurate providing a clean audit result with no significant issues or difficulties arising from the audit process; and WHEREAS, Ms. Lazzarino has exhibited both a strong work ethic and strong abilities in her dual roles; and
WHEREAS, the changes referenced herein will be reflected in the mid-year budget amendment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sand City as follows:

1. That a 7.5% increase be applied to the current salary for the position of Finance/Human Resource Specialist.

2. That the City’s salary schedule be updated to reflect the salary increase.

3. That the Sand City Finance/Human Resources staff is directed and authorized to incorporate the above salary adjustments, to be effective on February 1, 2022. 126
Sand City Resolution SC ___, 2022
PASSED AND ADOPTED by the City Council of the City of Sand City on this ___, day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________________
Mary Ann Carbone, Mayor
ATTEST:
_______________________
Connie Horca, City Clerk
127

CITY OF SAND CITY
RESOLUTION SC ____, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY TO

APPROVE SALARY INCREASE FOR THE POSITION OF PUBLIC WORKS SUPERVISOR EFFECTIVE FEBRUARY 1, 2022
WHEREAS, the City of Sand City wishes to ensure that Sand City offers an attractive salary and benefit package that is competitive with other cities on the Monterey Peninsula to retain and attract high quality City employees; and
WHEREAS, the Personnel and Budget Committee of the City Council has worked with staff to ensure that any proposed increase in salary are within the City’s ability to maintain a balanced budget to continue to deliver services to its residents; and WHEREAS, in October 2017, Mark Parker joined the City of Sand City as the Public Works Foreman, and was promoted in 2018 to Public Works Supervisor; and WHEREAS, Mr. Parker continues to display a high level of knowledge, and skills pertinent to his job duties to include coordination of the public works crew in the repair, maintenance and upkeep of the City streets, sewers, storm drains, parks, and public facilities; and WHEREAS, Mr. Parker also works collaboratively with consultants and outside agencies involving City projects, assists in the implementation of goals, and provides insight to the needs of the City related to public works; and
WHEREAS, the changes referenced herein will be reflected in the mid-year budget amendment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sand City as follows:

1. That a 7% increase be applied to the current salary for the position of Public Works Supervisor.

2. That the City’s salary schedule be updated to reflect the salary increase.

3. That the Sand City Finance/Human Resources staff is directed and authorized to incorporate the above salary adjustments, to be effective on February 1, 2022.

PASSED AND ADOPTED by the City Council of the City of Sand City on this ___, day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________________
Mary Ann Carbone, Mayor
ATTEST:
__________________________
Connie Horca, City Clerk
128

AGENDA ITEM
9B.

Approval of City RESOLUTION Amending
the City's Salary Schedule
129
City of Sand City

STAFF REPORT
TO: MAYOR AND CITY COUNCIL
FROM: DEVON LAZZARINO, FINANCE/HR SPECIALIST

VIBEKE NORGAARD, ACTING CITY MANAGER/CITY ATTORNEY
SUBJECT: FISCAL YEAR 2021-2022 SALARY SCHEDULE AMENDMENT DATE: JANUARY 19, 2022
FOR: FEBRUARY 1, 2022 COUNCIL MEETING
_______________________________________________________________________ Discussion:

State law requires that Cities contracting with CalPERS adopt a publicly available pay schedule that identifies the title for every employee position at the City, shows the payrate for each position, and indicates the effective date of any revisions. (2 CCR 570.5(a)(1)- (8)). The schedule is required to be posted on the City’s website. The City established a pay schedule in 1991 (Resolution SC-29, 1991) and has updated it by resolution as listed on the salary schedule (Attached as Exhibit A).

This amendment to the schedule is necessary to reflect changes related to employee rates of pay for the fiscal year 2021-2022.

CEQA:

This action does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.

Fiscal Impact:

The salary schedule reflects salary increases to the positions of City Clerk (7.5%), Finance/HR Specialist (7.5%) and Public Works Supervisor (7%). The salaries are before council for approval at its regularly scheduled meeting on February 1, 2022. The total annual cost of the increases will be $20,800 for the changes listed above.

Recommendation: It is recommended that the Council approve the attached FY 2021- 2022 Salary Schedule Resolution Amendment.
130

CITY OF SAND CITY
RESOLUTION SC , 2022
RESOLUTION OF THE CITY COUNCIL OF SAND CITY AMENDING THE CITY’S

SALARY SCHEDULE
WHEREAS, California Code of Regulations, Title 2, Section 570.5 requires that governing bodies of local agencies contracting with CalPERS adopt a publicly available pay schedule; and
WHEREAS, the City of Sand City established a salary schedule for City employees by Resolution SC-29, 1991 and revised the salary schedule in Resolutions SC 94-08, 1984; 97-66, 1997; 99-51, 1999; 01-61, 2001; 02-53, 2002; 05-49, 2005; 07-99, 2007; 10-75, 2010; 15-46, 2015; 18-87, 2018; 18-92, 2018; 20-86, 2020; 21-46, 2021 and WHEREAS, an amendment to the salary schedule is necessary to reflect changes related to the positions of City Clerk, Finance/HR Specialist and Public Works Supervisor rates of pay approved at the February 1, 2022 City Council meeting.

NOW, THEREFORE, BE IT RESOLVED by the Sand City Council that the revised Salary Schedule attached to this resolution as Exhibit A, is hereby adopted.

PASSED AND ADOPTED by the Sand City Council on this 1st day of February, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

ATTEST:
________________________________
Mary Ann Carbone, Mayor
________________________
Connie Horca, City Clerk
131
Pay Period Step 1 Step 2 Step 3 Step 4 Step 5 Maxium
Step 6 1 2
36 Maintenance Worker II Hourly 24.4796 25.7036 26.9888 28.3382 29.7551 31.2429 32.8050 34.4453 Monthly 4,247.34 4,459.71 4,682.69 4,916.83 5,162.67 5,420.80 5,691.84 5,976.43 Annual 50,967.90 53,516.30 56,192.11 59,001.72 61,951.80 65,049.39 68,301.86 71,716.95 39 Community Services Hourly 25.1125 26.3681 27.6865 29.0709 30.5244 32.0506 33.6532 35.3358 Coordinator Monthly 4,356.12 4,573.93 4,802.62 5,042.75 5,294.89 5,559.64 5,837.62 6,129.50 Annual 52,273.20 54,886.86 57,631.20 60,512.76 63,538.40 66,715.32 70,051.09 73,553.64 40 Maintenance Worker III Hourly 25.1638 26.4220 27.7431 29.1302 30.5868 32.1161 33.7219 35.4080 Monthly 4,361.41 4,579.48 4,808.45 5,048.88 5,301.32 5,566.39 5,844.71 6,136.94 Annual 52,336.89 54,953.73 57,701.42 60,586.49 63,615.82 66,796.61 70,136.44 73,643.26 46 Records Coordinator Hourly 29.8739 31.3676 32.9360 34.5828 36.3119 38.1275 40.0339 42.0356 Monthly 5,178.04 5,436.94 5,708.79 5,994.23 6,293.94 6,608.64 6,939.07 7,286.02 Annual 62,136.41 65,243.23 68,505.39 71,930.66 75,527.19 79,303.55 83,268.73 87,432.17 48 Deputy City Clerk Hourly 32.9128 34.5584 36.2864 38.1007 40.0057 42.0060 44.1063 46.3116 Monthly 5,712.19 5,997.80 6,297.69 6,612.57 6,943.20 7,290.36 7,654.88 8,037.62 Annual 68,546.17 71,973.48 75,572.15 79,350.76 83,318.30 87,484.21 91,858.42 96,451.34 50 Public Works Supervisor Hourly 35.2386 37.0005 38.8506 40.7931 42.8327 44.9744 47.2231 49.5842 Monthly 6,115.68 6,421.46 6,742.54 7,079.66 7,433.65 7,805.33 8,195.60 8,605.38 Annual 73,388.05 77,057.45 80,910.33 84,955.84 89,203.63 93,663.82 98,347.01 103,264.36 51 Acting City Clerk Hourly 34.6034 36.3336 38.1502 40.0578 42.0606 44.1637 46.3719 48.6905 Temporary position Monthly 5,997.81 6,297.70 6,612.59 6,943.21 7,290.38 7,654.89 8,037.64 8,439.52 Annual 71,973.73 75,572.42 79,351.04 83,318.59 87,484.52 91,858.74 96,451.68 101,274.27 52 Finance/HR Specialist Hourly 39.0615 41.0146 43.0653 45.2186 47.4795 49.8535 52.3461 54.9635 Monthly 6,778.09 7,116.99 7,472.84 7,846.49 8,238.81 8,650.75 9,083.29 9,537.45 Annual 81,336.80 85,403.64 89,673.82 94,157.51 98,865.39 103,808.66 108,999.09 114,449.05 54 City Planner Hourly 38.1813 40.0904 42.0949 44.1996 46.4096 48.7301 51.1666 53.7249 Monthly 6,624.40 6,955.62 7,303.40 7,668.57 8,052.00 8,454.60 8,877.33 9,321.20 Annual 79,492.53 83,467.16 87,640.51 92,022.54 96,623.67 101,454.85 106,527.59 111,853.97 57 City Clerk Hourly 41.1093 43.1648 45.3230 47.5892 49.9686 52.4670 55.0904 57.8449 Monthly 7,125.48 7,481.75 7,855.84 8,248.63 8,661.07 9,094.12 9,548.82 10,026.27 Annual 85,505.35 89,780.62 94,269.65 98,983.13 103,932.29 109,128.90 114,585.35 120,314.61 71 Dir. Of Admin. Services Hourly 64.1240 67.3302 70.6967 74.2315 77.9431 81.8403 85.9323 90.2289 Dir of Community Dev Monthly 11,096.65 11,651.48 12,234.06 12,845.76 13,488.05 14,162.45 14,870.57 15,614.10 Annual 133,159.08 139,817.03 146,807.89 154,148.28 161,855.69 169,948.48 178,445.90 187,368.20 72 Dir. Of Community Dev./ Hourly 65.7230 69.0092 72.4596 76.0826 79.8867 83.8811 88.0751 92.4789 Assistant City Manager Monthly 11,374.07 11,942.77 12,539.91 13,166.91 13,825.25 14,516.52 15,242.34 16,004.46 Annual 136,488.06 143,312.46 150,478.09 158,001.99 165,902.09 174,197.19 182,907.05 192,052.41 Pay Period Rate
Monthly 15,416.66
Annual 185,000.00
City Attorney Monthly 16,032.89
Annual 192,394.65
Amended: Resolution SC - 29, 1991; 94-08, 1994; 97-66, 1997; 99-51, 1999; 01-61, 2001; 02-53, 2002; 05-49, 2005; 07-99, 2007; 10-75, 2010; 15-46, 2015; 18-87, 2018; 18-92, 2018; 20-86, 2020; 21-46, 2021; 2022 effective Date: February 2022 City Manager
Exempt Employees
Recommended Title
Range #
2021-2022 Miscellaneous Employees
Range Placement Table

2.5% Between Ranges; 5% Between Steps
Longevity *
*Employees who have worked for the City for at least 7 years shall receive a 5% longevity increase. Employees who have worked for the City for at least 10 years shall receive an addition 5% longevity increase. 1/21/2022
132

AGENDA ITEM
9C.

Comments by Council Members on Items
of Interest to Sand City
133

AGENDA ITEM
9D.

Upcoming Meetings/Events
134

AGENDA ITEM
10A.

City Council/Successor Agency Board to
adjourn to Closed Session regarding: 1).

Conference with labor negotiator (Cal.

Gov. Code Section 54957.6) Agency
negotiator: City Attorney/Acting City
Manager Vibeke NorgaardRepresented
employees: Sand City Police Officers'
Association 2). Conference with legal
counsel - anticipated litigation (Cal. Gov
Code section 54956.9(d)(2)).
135

AGENDA ITEM
10B.

Re-adjourn to Open Session to report any
action taken at the conclusion of Closed
Session in accordance with California
Government Code section 54957.1
136