Agenda packet, regular meeting — Sand City City Council, June 4, 2024 (part 1 of 3)

CITY COUNCIL REGULAR MEETING

JOINT SAND CITY COUNCIL AND

SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY
TUESDAY, JUNE 4, 2024
5:30 PM
1 AGENDA

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
City Council Regular Meeting - Tuesday, June 4, 2024
5:30 PM

THIS MEETING WILL BE HELD VIRTUALLY AND IN PERSON, IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 2449, SIGNED INTO LAW ON SEPTEMBER 13, 2022, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC

AGENCIES TO CONTINUE TO HOLD VIRTUAL MEETINGS AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.).

TO PARTICIPATE IN THE ZOOM COUNCIL WEBINAR LIVE:
https://us02web.zoom.us/j/88349100938
Webinar ID: 883 4910 0938
To participate telephonically by calling the number below:
(669) 900-6833
Webinar ID: 883 4910 0938#
If prompted to enter a participant ID, press #
TO PARTICIPATE IN PERSON:

City Hall Council Chamber
1 Pendergrass Way
Sand City, CA
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). 2 1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. INVOCATION

4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER

5. 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.

6. 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.
6A. Approve the City Council Special Meeting and Regular Meeting Minutes for March 19, 2024, April 16, 2024, and May 21, 2024
Minutes
6B. Approve a Resolution Calling for the Holding of a November 5, 2024 General Municipal Election, Requesting the County of Monterey Board of Supervisors to Consolidate the General Municipal Election, and Requesting the County of Monterey Elections Department to Conduct the Election
Staff Report
Resolution
2024 Election Service Agreement
6C. Approve a Resolution Establishing an Appropriations Limit for Fiscal Year 2024- 2025 Pursuant to Article XIII B of the California Constitution Staff Report
Resolution
Price Factor and Population Information Letter
6D. Approve a Resolution Granting CUP 24-001 for 398 Shasta Street This item was continued from May 21, 2024.

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. Please use the "raise your hand" option on Zoom, and the City Clerk will call on your name.
3 Staff Report
Resolution
EXHIBIT A_Findings and Conditions of Approval (24-001)
Exhibit_B Notice of Exemption
EXHIBIT C_Aerial Map
EXHIBIT D_Site Floor Plan
EXHIBIT E_PARKING Plan
EXHIBIT F_Site Photo
EXHIBIT G_Haz Mat Questionnaire

7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR

8. PRESENTATION

9. PUBLIC HEARING

10. NEW BUSINESS
10A. Approve a Resolution Adopting the City of Sand City's Budget for the Fiscal Year 2024-2025
Staff Report
Resolution
FY 24-25 City Budget Book
10B. Approve a Resolution Approving Delegation of Authority for Executing Caltrans Documents
Staff Report
Resolution
10C. 2023-2031 Housing Element of the General Plan:

1. Approve a Resolution Adopting a Categorical Exemption for the 2023-2031 Housing Element Update and;

2. Approve a Resolution Adopting a General Plan Amendment to Repeal the 2015-2023 Housing Element and Adopt the 2023-2031 Housing Element of the General Plan in Compliance with State Housing Element Law Staff Report
1_Resolution Adopting Categorical Exemption
1_A Categorical Exemption
2_Resolution Adopting 2023-2031 Housing Element
2_A_2023-2031 Housing Element
3_HCD 90-day Letter 11.1.2023
4_Response to the HCD Findings 5.20.24
5_HCD Letter 5.24.24

11. COMMENTS BY COUNCILMEMBERS ON ITEMS OF INTEREST TO SAND CITY

12. ADJOURNMENT
4 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
6A.

Approve the City Council Special Meeting
and Regular Meeting Minutes for March
19, 2024, April 16, 2024, and May 21, 2024
6 1

MINUTES

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
City Council Special Meeting - Tuesday, March 19, 2024 4:30 PM As allowed by Assembly Bill AB 2449, this meeting was conducted in person and by teleconference.

Mayor Carbone called the meeting to order at 4:48 PM.

1. ROLL CALL

Present: Mayor Carbone
Vice Mayor Blackwelder
Councilmember Diaz
Councilmember Hawthorne
Councilmember Sofer
Staff: City Manager Vibeke Norgaard
Interim City Attorney Adam Lindgren
City Clerk Kerry Lindstrom

2. COMMUNICATIONS
No public comment received.

3. CLOSED SESSION
Regarding Item 3A, due to a conflict of interest, those residing within 500 feet of 501 Ortiz Avenue, Vice Mayor Blackwelder, Councilmembers Diaz, Hawthorne, and Sofer, a straw draw was conducted to establish a quorum by random selection. Councilmembers Diaz and Sofer were selected. Vice Mayor Blackwelder and Councilmember Hawthorne recused themselves from Item 3A.

Due to a conflict of interest, Vice Mayor Blackwelder recused himself from Items 3B and 3C
No public comment received.
3A. Conference with real property negotiators pursuant to Government Code §54956.8. Property: 501 Ortiz Avenue, APN 011-195-014 & 011-195-015. City Negotiators: City Manager Vibeke Norgaard, City Attorney Adam Lindgren, and EMC President Michael Groves. Negotiating Parties: Katherine M. Roper & Roper Trust and Robin Aeschliman. Under Negotiation: Price and terms of payment.
3B. Conference with legal counsel - anticipated litigation - significant exposure to litigation pursuant to Govt. Code 54956.9(d)(2); (existing facts and circumstances) (nine claims filed against the city related to flooding in the city on January 21-22, 2024).
3C. Conference with legal counsel – initiation of litigation (Gov Code section 54956.9(d)(4)
7 2
3D. Re-Adjourn to Open Session to report any action taken at the conclusion of Closed Session in accordance with California Government Code§54957.1 City Manager Vibeke Norgaard reported that Council received updates on Items 3A, 3B, and 3C, and no reportable action was taken.

4. ADJOURNMENT
____________________________
Kerry Lindstrom, City Clerk
8 1

MINUTES

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
City Council Regular Meeting - Tuesday, March 19, 2024 5:30 PM As allowed by Assembly Bill AB 2449, this meeting was conducted in person and by teleconference.

Mayor Carbone called the meeting to order at 5:30 PM.

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE
Councilmember Hawthorne led the Pledge of Allegiance.

3. INVOCATION
Reverend Hellam led the invocation.

4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER Mayor Carbone stated she was out of town for a few days attending a conference and will have the Mayor’s Report available at the next City Council Meeting. City Manager Vibeke Norgaard provided the Council with the City Manager's Report and copies were made available to the public.

5. COMMUNICATIONS
No public comment received.

6. CONSENT CALENDAR
No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve the Consent Calendar.
6A. Received January 2024 Financial Report.
6B. Approved Resolution SC 24-10 Honoring Mary L. Adams as the 2023 Monterey Peninsula Chamber of Commerce Ruth Vreeland Memorial Public Official of the Year.
6C. Approved Resolution SC 24-11 Honoring Clarissa Rowe as the 2023 Monterey Peninsula Chamber of Commerce 2023 Robert C. Littlefield Lifetime 9 2
Achievement Award.
6D. Approved Resolution SC 24-12 Honoring Ron Johnson as the Monterey Peninsula Chamber of Commerce 2023 Community Impact Award 6E. Approved Resolution SC 24-13 Honoring Mike Marotta, Jr. as the 2023 Monterey Peninsula Chamber of Commerce Citizen of the Year.

7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR
No items were pulled.

8. PRESENTATION
None.

9. PUBLIC HEARING
None.

10. NEW BUSINESS
10A. Discussion and Consideration of Planning, Building, and Engineering and Public Works Fee Schedule FY 2024-25
No public comment received.

Council discussed and considered Planning, Building, and Engineering and Public Works Fee Schedule FY 2024-25 and upon motion by Councilmember Sofer and seconded by Mayor Carbone, Council voted 5-0 to accept the proposed 50% of cost recovery fees.
10B.

State Coastal Conservancy Coastal Trail Grant Agreement and EMC Planning Group Contract for Coastal Trail Planning

1. Approve a Resolution Approving the Grant of Funds from the State Coastal Conservancy to the City of Sand City for the Purpose of Planning the Sand City Coastal Trail and;

2. Approve a Resolution Authorizing the City Manager to Enter into a Contract with EMC Planning Group Inc. to Plan, Obtain Permits, and Conduct CEQA Review for Sand City's Coastal Trail Project.

No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve Resolution SC 24-14 approving the Grant of Funds from the State Coastal Conservancy to the City of Sand City for the purpose of planning the Sand City Coastal Trail.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve Resolution SC 24-15 authorizing the City Manager to enter into a contract with EMC Planning Group Inc. to plan, 10 3
obtain permits, and Conduct CEQA review for Sand City’s Coastal Trail Project. 10C. Approve a Resolution Authorizing the Acquisition of Property at 501 Ortiz Avenue, and Authorize the City Manager to Execute a Purchase and Sale Agreement, Certificate of Acceptance, and Recordation of a Grant Deed Due to a conflict of interest, those residing within 500 feet of 501 Ortiz Avenue, Vice Mayor Blackwelder and Councilmembers Diaz and Hawthorne, a straw draw was conducted to establish a quorum by random selection. Councilmember Diaz name was selected. Vice Mayor Blackwelder and Councilmember Hawthorne recused themselves.

No public comment received.

Upon motion by Councilmember Sofer and seconded by Councilmember Diaz, Council voted 3-0-2, Vice Mayor Blackwelder and Councilmember Hawthorne recused, to authorize the City Manager to execute a Purchase and Sale Agreement, Certificate of Acceptance, and Recordation of a Grant Deed. 10D. Consideration and Approval for the Cancellation of the April 2, 2024 Regular City Council Meeting This item was heard by Council before Item 10C.

Upon motion by Councilmember Diaz and seconded by Councilmember Hawthorne, Council voted 5-0 to approve the cancellation of the April 2, 2024 Regular City Council Meeting.

11. COMMENTS BY COUNCILMEMBERS ON ITEMS OF INTEREST TO SAND CITY None.

12. ADJOURNMENT
Mayor Carbone closed the meeting in a moment of silence for Kelly Jack Morgan Sand City’s former City Administrator, Planner, and resident.

Council adjourned the meeting at approximately 6:52 PM. ____________________________
Kerry Lindstrom, City Clerk
11 1
AGENDA

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
City Council Special Meeting - Tuesday, April 16, 2024 5:00 PM As allowed by Assembly Bill AB 2449, this meeting was conducted in person and by teleconference.

Mayor Carbone called the meeting to order at 5:00 PM.

1. ROLL CALL

Present: Mayor Carbone
Vice Mayor Blackwelder
Councilmember Diaz
Councilmember Hawthorne
Councilmember Sofer
Staff: City Manager Vibeke Norgaard
Interim City Attorney Anthony Amara
City Clerk Kerry Lindstrom

2. COMMUNICATIONS
No public comment received.

3. CLOSED SESSION
No public comment received.
3A. City Council/Successor Agency Board to Adjourn to Closed Session, Conference with labor negotiators pursuant to Government Code Section 54957.6.

Negotiator: Vibeke Norgaard, City Manager and Interim City Attorney Anthony Amara. Employee organization: Police Officers Association 3B. 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 Interim City Attorney Anthony Amara reported Council discussed and considered Closed Session Item 3A and unanimously voted to appoint a labor negotiator.

The Council took no other reportable action.

4. ADJOURNMENT
The Council adjourned the meeting at approximately 5:25 PM. ____________________________
Kerry Lindstrom, City Clerk
12 1

MINUTES

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
City Council Regular Meeting - Tuesday, April 16, 2024, 5:30 PM As allowed by Assembly Bill AB 2449, this meeting was conducted in person and by teleconference.

Mayor Carbone called the meeting to order at 5:30 PM.

1. ROLL CALL

Present: Mayor Carbone
Vice Mayor Blackwelder
Councilmember Diaz
Councilmember Hawthorne
Councilmember Sofer
Staff: City Manager Vibeke Norgaard
Interim City Planner Zane Mortensen
Interim City Attorney Anthony Amara
City Clerk Kerry Lindstrom

2. PLEDGE OF ALLEGIANCE
Councilmember Sofer led the Pledge of Allegiance.

3. INVOCATION
Reverend Hellam led the invocation.

4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER Mayor Carbone announced copies of the Mayor’s Report were placed on the table in the Council Chamber for the public and noted the report contained a list of upcoming events.

Regarding Measure X, City Manager Vibeke Norgaard announced that the TAMC Oversight Committee is recommending to the TAMC Board to change the ordinance that sets the maintenance of effort and lower the maintenance of effort from $500,000 to $200,000. The City Manager attended a meeting at the CalAm Desal plant to understand why the desal plant is not producing at full capacity. While the plant has been down many facility upgrades have occurred. Grand opening of the South of Tioga playground is the end of May.

5. COMMUNICATIONS
Public comment received from Brian Clark, EKN Development President Ebbie Nakhjavani, and Jacqueline Simon.

6. CONSENT CALENDAR
No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Sofer, Council voted 5-0 to approve the Consent Calendar.
13 2
6A. Approved of City Donation/Contribution - In Support of the 2nd Annual Red Dress Day
6B. Approved Resolution SC 24-17 amending the Special Event Permit 24-01 for the Bicycle Criterium to change date to July 7, 2024.

7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR
No items were pulled.

8. PRESENTATION
Public comment received from Brian Clark.
8A. Received an update on the California American Water Desal Project from Josh Stratton and David Pezzini.

9. PUBLIC HEARING
None.

10. NEW BUSINESS
10A. Approve a Resolution Authorizing the City Manager to Execute an Agreement with Talking Walls for Mural Curator Services for the 2024 we.Mural Festival Public comment received from Brian Clark.

Upon motion by Councilmember Hawthorne and seconded by Vice Mayor Blackwelder, Council voted 5-0 to approve Resolution SC 24-18 authorizing the City Manager to execute an agreement with Talking Walls for mural curator services for the 2024 we.Mural Festival.
10B. Approve a Resolution Adopting the Proposed Budget Amendment #1 for Fiscal Year 2023-2024
No public comment received.

Upon motion by Councilmember Hawthorne and seconded by Councilmember Sofer, Council voted 5-0 to approve Resolution SC 24-19 adopting the Proposed Budget Amendment #1 for Fiscal Year 2023-2024. 10C. Approve a Resolution Amending the FeeSchedule
No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve Resolution SC 24-20 amending the Fee Schedule.
10D. Monterey Bay Air Resources District Clean Air Management Program Grant Funding for Multiuse Commuter Trail:

1. Approve a Resolution Authorizing Monterey Bay Air ResourcesDistrict 14 3
Clean Air Management Program Grant Funding and;

2. Approve a Resolution Approving a Professional Service Agreementwith EMC Planning Group for Preliminary Planning of the Sand City Multiuse Commuter Trail
No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve Resolution SC 24-21 authorizing Monterey Bay Air Resources District Clean Air Management Program grant funding for multiuse commuter trail and;
Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve Resolution SC 24-22 approving a Professional Service Agreement with EMC Planning Group for preliminary planning of the Sand City Multiuse Commuter Trail.
10E. Approve a Resolution Authorizing the City Manager to Enter Into a Contract with EMC Planning Group Inc. to Revise the City's Municipal Code to Reflect 6th Cycle Housing Element Programs
No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Sofer, Council voted 5-0 to approve Resolution SC 24-23 authorizing the City Manager to enter into a contract with EMC Planning Group Inc. to revise the City’s Municipal Code to reflect 6th Cycle Housing Element Programs.

11. COMMENTS BY COUNCILMEMBERS ON ITEMS OF INTEREST TO SAND CITY Councilmember Sofer reminded the public of 2024 Red Dress Day on May 4, 2024. Vice Mayor Blackwelder stated the Monterey One Water ad hoc committee is in the process of a feasibility study on purifying methane. Mayor Carbone commented that Monterey One Water is looking into ways to further treat and use wastewater and safely reintroduce it to the environment.

12. ADJOURNMENT
Council adjourned the meeting at approximately at 7:44 PM. ____________________________
Kerry Lindstrom, City Clerk
.
15 1

MINUTES

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY ________________________________________________________________________________ City Council Special Meeting - Tuesday, May 21, 2024 4:00 PM As allowed by Assembly Bill AB 2449, this meeting was conducted in person and by teleconference
________________________________________________________________________________

1. ROLL CALL

2. COMMUNICATIONS
No public comment received.

3. CLOSED SESSION
3A. Public Employee Performance Evaluation Pursuant toGovernmentCode §54957 Title:

City Manager
3B. Conference with Labor Negotiators pursuant to Government Code Section 54957.6.

Negotiators: Vibeke Norgaard, City Manager, Adam Lindgren, Interim City Attorney, andChe Johnson, LCW Attorney. EmployeeOrganization: Police Officers Association 3C. 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 Interim City Attorney Adam Lindgren reported on Item 3A; Council conducted and concluded the City Manager’s regularly scheduled annual performance evaluation and overall, the City Council concluded that in the last year, the City Manager’s performance was great. The City Council and the City Manager had a productive collaborative evaluation and the City Manager received valuable feedback to help further improve performance in the coming year.

Mayor Carbone reported Item 3B, will be continued to a date uncertain.

4. ADJOURNMENT
Council adjourned the meeting at approximately at 5:15 PM. ____________________________
Kerry Lindstrom, City Clerk
16 1
AGENDA

JOINT SANDCITYCOUNCIL ANDSUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY City Council Regular Meeting - Tuesday, May 21, 2024 5:30 PM As allowed by Assembly Bill AB 2449, this meeting was conducted in person and by teleconference.

Mayor Carbone called the meeting to order at 5:30 PM.

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE
Vice Mayor Blackwelder led the Pledge of Allegiance.

3. INVOCATION
Reverend Hellam led the invocation.

4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITYMANAGER Mayor Carbone announced she provided the Mayor’s Report and copies were made available to the public.

City Manager Vibeke Norgaard reported the Purchase and Sale Agreement for 501 Ortiz is in the hands of the owners and escrow is expected to be opened shortly. EMC submitted the Housing Element to HCD and is now in 7-day public review period and the City anticipates a substantial compliance letter from HCD by the end of next week for adoption at the June 4, 2024, City Council meeting.

Interim City Attorney Adam Lindgren attended the annual City Attorney’s Department Meeting of the CalCities 2 weeks ago, there were several productive panels, and one highlighted topic of conversation on housing and homelessness with a possibility of the supreme court decision changing the area of code enforcement as it relates to homeless encampments with cities getting back authority to regulate homeless encampments. Also, there were various updates on applicable laws.

5. COMMUNICATIONS
Public comment received from Brian Clark.
17 2

6. CONSENT CALENDAR
No public comment received.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to approve the Consent Calendar.
6A. Approved the City Council Regular Meeting Minutes for March 5, 2024 and May 7, 2024. 6B. Accepted the City/Successor Agency Financial Reports from April 2024. 6C. Approved Resolution SC 24-27 authorizing the renewal of a Maintenance Services Agreement with Hope Rehabilitation Services for Fiscal Year 2024-2025. 6D. Reviewed GreenWaste Recovery's 2024-25 Rate Request-FinalReport.

7. CONSIDERATION OF ITEMS PULLED FROM CONSENTCALENDAR
No items were pulled.

8. PRESENTATION
None.

9. PUBLIC HEARING
None.

10. NEW BUSINESS
10A. Approve FY 25 Amendments to Exhibits A & B of the MOU Between ReGen Monterey and its Member Jurisdictions RegardingCompliance withCalifornia's Senate Bill 1383 This item was continued to a date uncertain.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Council voted 5-0 to continue Item 10A to a date uncertain. 10B. Approve a Resolution AdoptingObjectiveDesign andDevelopment Standards Public comment received from Brian Clark
Upon motion by Councilmember Hawthorne and seconded by Vice Mayor Blackwelder, Council voted 5-0 to approve Resolution SC 24-28 adopting Objective Design and Development Standards.
10C. Approve a Resolution Granting CUP 24-001 for 398 Shasta Street This item was continued to June 4, 2024.
18 3
Due to a conflict of interest, those residing within 500 feet of 398 Shasta Street, Vice Mayor Blackwelder and Councilmembers Diaz and Hawthorne, a straw draw was conducted to establish a quorum by random selection. Vice Mayor Blackwelder’s name was selected. Councilmembers Diaz and Hawthorne recused themselves.

Public comment was received from Brian Clark.

Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Sofer, Council voted 3-0-2, Councilmembers Diaz and Hawthorne having recused, to continue Item 10C to June 4, 2024.

11. COMMENTS BY COUNCILMEMBERS ON ITEMS OF INTEREST TO SANDCITY Councilmember Sofer announced attending the Women’s Fund Luncheon on May 17, 2024.

12. ADJOURNMENT
Council adjourned the meeting at approximately at 6:20 PM. ____________________________
Kerry Lindstrom, City Clerk
19 AGENDA ITEM
6B.

Approve a Resolution Calling for the
Holding of a November 5, 2024 General
Municipal Election, Requesting the County
of Monterey Board of Supervisors to
Consolidate the General Municipal
Election, and Requesting the County of
Monterey Elections Department to
Conduct the Election
20 City of Sand City

STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Kerry Lindstrom, City Clerk
SUBJECT: Calling for November 5, 2024 General Municipal Election, Requesting the County Elections Department to Conduct the Election, and Requesting Consolidation of the Election
DATE: June 4, 2024
_______________________________________________________________________ BACKGROUND/DISCUSSION:

Section 6 of the Sand City Charter establishes November of even-numbered years as the General Municipal Election date for the election of the Mayor and two Councilmembers in Sand City.

The resolution calling for the election and requesting consolidation allows the City to combine its election with the statewide election and avoid duplication of printing and mailing of sample ballots, computer tabulation, precinct workers, and canvassing results.

The City may by resolution request that the Board of Supervisors of the County request that the County Elections Department conduct and consolidate the elections on behalf of the City. (See Cal. Elections Code section 10001).

It has been a standard procedure for the City of Sand City to consolidate the general municipal elections with the Monterey County Elections Department for the ease and convenience to the city’s registered voters and to minimize election costs. The City has also historically paid for the cost of the candidate’s statements.

CEQA:

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

FISCAL IMPACT:

The estimated cost per registered voter is $7 to $10 for the November 5, 2024, General Election. An allocation of $3450.00 has been incorporated into the Proposed Fiscal Year 2024-2025 City Budget. The estimated 200-word limit candidate statement cost is $94.00 per statement for both Mayoral and Councilmember candidates. The number of candidates is not known at this time.

RECOMMENDATION:

Staff recommends the Council approve a resolution calling for a November 5, 2024 General Municipal Election, Requesting the County Elections Department to Conduct the Election, and Requesting Consolidation of the Election.

ATTACHMENTS:
21 1. Resolution

2. Agreement
22 CITY OF SAND CITY
RESOLUTION SC 24-__, 2024

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY CALLING FOR THE HOLDING OF A NOVEMBER 5, 2024 GENERAL MUNICIPAL

ELECTION, REQUESTING THE COUNTY OF MONTEREY BOARD OF SUPERVISORS TO

CONSOLIDATE THE GENERAL MUNICIPAL ELECTION, AND REQUESTING THE

COUNTY OF MONTEREY ELECTIONS DEPARTMENT TO CONDUCT THE ELECTION WHEREAS, pursuant to the provisions of Section 4. of the Sand City Charter, each Councilmember shall be elected at large at the General Municipal Election. Said election shall be held on Tuesday, November 5, 2024; and
WHEREAS, pursuant to Sections 10001 of the Elections Code, the governing body of the City of Sand City must call the election to be held November 5, 2024, for the purpose of electing successors to the terms of office which will expire in 2024; and WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city may by resolution request the Board of Supervisors of the County to permit the County elections official to render specified services to the city relating to the conduct of an election; and WHEREAS, pursuant to Section 13307 of the Elections Code, it is incumbent upon this City Council to determine who will pay the cost of the candidate’s statement and to fix the maximum number of words to be submitted; and
WHEREAS, for the ease and convenience to the registered voters within this City and to take advantage of any possible reduction in election costs, it is desirable that this City election be consolidated with any other election to be held on the same day and that a vote by mail precinct be provided within the City of Sand City; and
WHEREAS, the City Council authorizes the City Clerk to enter into and sign the attached service agreement for the provision of election services between the City of Sand City and Monterey County Registrar of Voters.

NOW, THEREFORE, BE IT RESOLVED and ordered by the governing body of the City of Sand City that:

1. The Monterey County Elections Department conducts the election for the purpose of electing one Mayor for a two-year term, and two Councilmembers for four-year terms on November 5, 2024.

2. Pursuant to Elections Code Section 10002 said governing body hereby requests the Board of Supervisors of the County of Monterey to permit the Monterey County Elections Department to provide any and all services necessary for conducting an election and agrees to pay for said services in full, and
23 3. Pursuant to Section 13307 of the Elections Code, the City Council has resolved that the City will pay the cost of the candidate’s statement. Said statement shall not exceed 200 words in length and no other candidate materials will be allowed to be mailed pursuant to Section 13303 of the Election Codes. The cost for candidate statements will be included in the billing to the City of Sand City by the Monterey County Elections Department.

4. This election shall be consolidated with any other election to be held totally or partially within the boundaries of this City.

5. A vote-by-mail precinct/receiving station will be arranged at Sand City Hall, and the City will pay the costs associated with providing and operating this vote-by-mail precinct/receiving station within Sand City.

6. The City Council hereby authorizes the official canvass to be conducted by the Registrar of Voters commencing no later than November 5, 2024.

7. The Registrar of Voters is authorized to bill the City, on a prorated basis, for any and all costs associated with the City election and vote by mail precinct.

8. In all particulars not recited in this resolution, said elections shall be noticed and held and all publications made as provided by law for holding municipal elections.

NOW THEREFORE, BE IT FURTHER RESOLVED that:

1. Pursuant to Elections Code Section 15651(a), a tie vote shall be resolved by drawing lots.

2. Tie votes shall be determined by the City Council acting as the Election Board.

PASSED AND ADOPTED by the City Council of the City of Sand City on this __ day of ____, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
____________________________
Mary Ann Carbone, Mayor
ATTEST:
24 DATED: _____________________
____________________________
Kerry Lindstrom, City Clerk
5733726.1
25 26
27 28

AGENDA ITEM
6C.

Approve a Resolution Establishing an
Appropriations Limit for Fiscal Year 2024-
2025 Pursuant to Article XIII B of the
California Constitution
29 City of Sand City

STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Jennifer Pope, Finance Manager
SUBJECT: Resolution Setting the Appropriations Limit for FY 2024-2025 DATE: June 4, 2024
_______________________________________________________________________ BACKGROUND/DISCUSSION:

Article XIII B of the California Constitution provides that the total annual appropriations subject to limitations of each governmental entity, shall not exceed the appropriations limit of such entity of government for the prior year, adjusted for changes in population and inflation mandated by Proposition 4 (1979) and Proposition 111 (1990), except as otherwise provided in aid Article XIII B and implementing state statutes. Pursuant to Article XIII B of the California Constitution, and section 7900 et seq of the California Government Code, the City is required to calculate and set its appropriations limit for each fiscal year.

Pursuant to Section 7910 of the California Government Code, the City has made available to the public the documentation used to determinate the appropriations limit and the appropriations limit of $17,663,692 was established for Fiscal Year 2023-2024. The new appropriations limit for Fiscal Year 2024-2025 has been calculated at $18,349,043, using the inflation factor and annual percentage change in population as required by state law.

CEQA:

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

FISCAL IMPACT:

There is no fiscal impact.

RECOMMENDATION:

Approve a resolution setting the Appropriations Limit for Fiscal Year 2024-2025; or discuss and take other action related to this item.

ATTACHMENTS:

1. Resolution

2. Price Factor and Population Information Letter
30 CITY OF SAND CITY
RESOLUTION SC 24-___, 2024

RESOLUTION OF THE CITY COUNCIL OF SAND CITY ESTABLISHING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-2025 PURSUANT TO ARTICLE

XIII B OF THE CALIFORNIA CONSTITUTION
WHEREAS, Article XIII B of the California Constitution provides that the total annual appropriations subject to limitations of each governmental entity, including this City, shall not exceed the appropriations limit of such entity of government for the prior year adjusted for changes in population and inflation mandated by Proposition 4 (1979) and Proposition 111 (1990), except as otherwise provided in said Article XIII B and implementing state statutes; and
WHEREAS, pursuant to Article XIII B of the California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to calculate and set its appropriations limit for each fiscal year; and
WHEREAS, based on such calculations the City had determined said appropriations limit and pursuant to Section 7910 of the California Government Code has made available to the public the documentation used in the determination of the appropriations limit; and
WHEREAS, an appropriations limit of $17,663,692 was calculated and established for Fiscal Year 2023-2024, and a new appropriations limit for Fiscal Year 2024-2025 has been calculated as $18,349,043 illustrated on Exhibit A, attached hereto and incorporated herein by this reference, using the inflation factor and population increase factor allowed by state law.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Sand City that the appropriations limit for Fiscal Year 2024-2025 shall be and is hereby established in the amount of $18,349,043.

PASSED AND ADOPTED, at a regular meeting of the City Council of the City of Sand City, this 4th day of June, 2024 by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________
Mary Ann Carbone, Mayor
ATTEST:

DATED: ____________________
___________________________
Kerry Lindstrom, City Clerk 31

EXHIBIT A

CITY OF SAND CITY

APPROPRIATIONS LIMIT CALCULATION
FISCAL YEAR 2024-2025
A. LAST YEAR’S LIMIT $17,663,692
B. ADJUSTMENT FACTORS

1. Sand City Population Growth Ratio = 0.26 +100 = 1.0026 100

2. Inflation Ratio (Per Capita Income) = 3.62 +100 = 1.0362 100
C. Annual Ratio (increase) = 1.0362 x 1.0026 = 1.0388
D. THIS YEAR’S LIMIT (FY 2024-2025)
($17,663,692 X 1.0388 = $18,349,043) $18,349,043
32 April 30, 2024
Dear Fiscal Officer:

Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.

Each local jurisdiction must use their percentage change in population factor for January 1, 2024, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2024-25. Attachment A provides the change in California’s per capita personal income and an example for utilizing the factors to calculate the 2024-25 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2024. Please note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Richard Gillihan

RICHARD GILLIHAN
Chief Operating Officer
Attachment
33 May 2024
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2024-25 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2024-25 3.62
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2024-25 appropriation limit.
2024-25:

Per Capita Cost of Living Change = 3.62 percent
Population Change = 0.17 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362 100
Population converted to a ratio: 0.17 + 100 = 1.0017
100
Calculation of factor for FY 2024-25: 1.0362 x 1.0017 = 1.0379

34 Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 County
City
Percent Change
23-24
--- Population Minus Exclusions ---
1-1-23 1-1-24
Total
Population
1-1-24
Monterey
Carmel-By-The-Sea
Del Rey Oaks
Gonzales
Greenfield
King City
Marina
Monterey
Pacific Grove
Salinas
Sand City
Seaside
Soledad
Unincorporated

0.55 0.64

0.98 2.01

1.78 1.91

0.56 0.63

0.73 0.26

0.04 2.94

0.75 3,105
1,559
8,384
20,155
13,968
22,269
24,096
14,872
160,870
378
28,075
19,565
104,372
3,122
1,569
8,466
20,561
14,216
22,695
24,232
14,966
162,037
379
28,085
20,140
105,157
3,122
1,569
8,466
20,561
14,216
22,695
27,106
14,966
162,037
379
30,197
26,966
105,334
County Total 0.94 421,668 425,625 437,614
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 35 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Alameda
Incorporated
County Total
-0.48
-0.54
1,500,626
1,648,369
1,493,403
1,639,409
Alpine
Incorporated
County Total

0.00 -0.34
0 1,183
0 1,179
Amador
Incorporated
County Total
-0.80
-0.89
13,813
36,091
13,703
35,770
Butte
Incorporated
County Total

1.61 -0.32
144,871
206,579
147,197
205,928
Calaveras
Incorporated
County Total
-0.47
-0.15
3,604
44,853
3,587
44,786
Colusa
Incorporated
County Total
-0.18
-0.40
11,997
21,831
11,975
21,743
Contra Costa
Incorporated
County Total

0.11 0.12
971,251
1,145,274
972,337
1,146,626
Del Norte
Incorporated
County Total

0.52 -0.08
4,019
24,787
4,040
24,768
El Dorado
Incorporated
County Total

0.32 0.26
31,220
187,974
31,320
188,463
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 36 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Fresno
Incorporated
County Total

0.81 0.69
847,846
1,005,004
854,714
1,011,968
Glenn
Incorporated
County Total

2.77 1.43
14,458
28,330
14,858
28,736
Humboldt
Incorporated
County Total
-1.14
-1.11
63,392
134,351
62,667
132,866
Imperial
Incorporated
County Total

2.02 1.95
145,696
176,282
148,634
179,725
Inyo
Incorporated
County Total
-0.13
-0.16
3,853
18,826
3,848
18,796
Kern
Incorporated
County Total

0.96 0.77
587,734
887,906
593,394
894,734
Kings
Incorporated
County Total

0.15 0.04
108,741
133,516
108,903
133,575
Lake
Incorporated
County Total

0.90 0.47
21,343
66,619
21,535
66,933
Lassen
Incorporated
County Total
-0.22
-0.08
9,355
24,305
9,334
24,286
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 37 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Los Angeles
Incorporated
County Total

0.07 0.05
8,812,107
9,810,925
8,818,472
9,815,428
Madera
Incorporated
County Total

0.28 0.79
79,869
152,734
80,096
153,934
Marin
Incorporated
County Total
-0.55
-0.53
187,420
250,360
186,385
249,041
Mariposa
Incorporated
County Total

0.00 -0.04
0 16,912
0 16,905
Mendocino
Incorporated
County Total

0.27 -0.08
28,485
89,496
28,562
89,424
Merced
Incorporated
County Total

0.95 0.72
194,657
284,081
196,508
286,138
Modoc
Incorporated
County Total
-0.19
-0.20
2,664
8,501
2,659
8,484
Mono
Incorporated
County Total
-2.67
-2.53
7,305
13,097
7,110
12,765
Monterey
Incorporated
County Total

1.00 0.94
317,296
421,668
320,468
425,625
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 38 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Napa
Incorporated
County Total

0.47 0.38
111,044
132,816
111,570
133,324
Nevada
Incorporated
County Total
-0.01
-0.30
33,530
100,421
33,525
100,115
Orange
Incorporated
County Total

0.29 0.31
3,010,335
3,140,716
3,019,168
3,150,493
Placer
Incorporated
County Total

0.87 0.67
298,393
410,085
300,976
412,844
Plumas
Incorporated
County Total
-1.14
-0.80
2,099
18,993
2,075
18,841
Riverside
Incorporated
County Total

0.48 0.55
2,021,243
2,420,896
2,030,847
2,434,285
Sacramento
Incorporated
County Total

0.44 0.12
972,430
1,572,419
976,744
1,574,358
San Benito
Incorporated
County Total

0.73 1.06
44,579
65,165
44,904
65,853
San Bernardino
Incorporated
County Total

0.48 0.42
1,856,711
2,143,575
1,865,629
2,152,555
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 39 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
San Diego
Incorporated
County Total

0.03 0.07
2,756,900
3,235,324
2,757,771
3,237,699
San Francisco
Incorporated
County Total

0.11 0.11
841,745
841,745
842,644
842,644
San Joaquin
Incorporated
County Total

1.19 1.01
623,820
781,227
631,215
789,081
San Luis Obispo
Incorporated
County Total

0.17 -0.08
157,084
275,541
157,353
275,307
San Mateo
Incorporated
County Total
-0.49
-0.50
683,226
745,168
679,897
741,435
Santa Barbara
Incorporated
County Total

0.44 0.28
300,067
436,302
301,380
437,524
Santa Clara
Incorporated
County Total

0.05 0.02
1,811,705
1,901,768
1,812,582
1,902,166
Santa Cruz
Incorporated
County Total
-0.04
-0.29
135,179
263,282
135,121
262,509
Shasta
Incorporated
County Total

0.18 0.05
113,195
178,923
113,397
179,019
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 40 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Sierra
Incorporated
County Total
-0.41
-0.50
727
3,187
724
3,171
Siskiyou
Incorporated
County Total
-0.12
-0.15
19,636
43,430
19,613
43,363
Solano
Incorporated
County Total

0.06 0.04
417,409
434,801
417,662
434,963
Sonoma
Incorporated
County Total
-0.22
-0.27
348,147
478,480
347,375
477,187
Stanislaus
Incorporated
County Total

0.64 0.55
437,381
545,753
440,200
548,744
Sutter
Incorporated
County Total

1.90 1.90
78,432
98,248
79,924
100,110
Tehama
Incorporated
County Total
-0.50
-0.61
22,913
64,578
22,798
64,182
Trinity
Incorporated
County Total

0.00 -0.11
0 15,878
0 15,860
Tulare
Incorporated
County Total

1.08 0.90
340,642
474,294
344,328
478,547
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 41 Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change --- Population Minus Exclusions --- 23-24 1-1-23 1-1-24
Tuolumne
Incorporated 0.25 5,119 5,132
County Total -0.11 52,207 52,148
Ventura
Incorporated -0.21 732,348 730,833
County Total -0.23 822,161 820,254
Yolo
Incorporated 0.44 186,763 187,591
County Total 0.55 220,454 221,666
Yuba
Incorporated 0.93 16,492 16,645
County Total 1.25 80,672 81,679
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 42 AGENDA ITEM
6D.

Approve a Resolution Granting CUP 24-
001 for 398 Shasta Street This item was
continued from May 21, 2024.
43 City of Sand City

STAFF REPORT
TO: Mayor and City Council
FROM: Matt Papurello, Contract City Planner
SUBJECT: Conditional Use Permit 24-001 for Renovations at 398 Shasta Ave.

DATE: May 21, 2024
_______________________________________________________________________ BACKGROUND:

The Conditional Use Permit (CUP) 24-001 submitted by Jeff Reisdorf (The Applicant) consists of an extensive remodel to the existing triplex located at 398 Shasta Avenue, APN: 011-253-012 (The Subject Property). The triplex remodel involves interior improvements, including renovations to the existing bathroom and kitchen in each of the three units. At this time, the applicant has not indicated any exterior changes to the existing triplex or renovations of any kind associated with the existing vacant commercial office building located on the parcel.

The Subject Property is not located in the coastal zone and has a Planned-Mixed Use (MU-P) zoning designation and a General Plan land use designation of Mixed-Use (MUD). Multi-Family Dwellings are a permitted use under this zoning designation with an approved conditional use permit (Sand City Municipal Code 18.13.040(O)). A conditional use permit is required for all development uses within the MU-P Zoning district. This Conditional Use Permit only applies to the residential building on site. The Applicant would be required to apply for a separate Conditional Use Permit, when a use for the commercial building on site is proposed.

Improvements and rehabilitation of the city’s multi-family rental housing stock supports goals in the City’s Housing Element. Facilitating rehabilitation ensures that units are kept up in good habitable condition. Additionally the units range from 1-3 bedrooms which will provide for a wider array of income levels and family sizes.

SITE DISCRIPTION:

The Subject Property consists of a single parcel (011-253-012) which is roughly 100 feet wide by 70 feet deep. There are two buildings on this parcel, one multi-family residential triplex and one commercial office building. Neither building is currently occupied. Utilities (i.e. gas, electric, water, sewer, etc.) are available to the building and street improvements (i.e. curb, gutter, drive-apron, etc.) are in fair condition along the Subject Property’s Shasta Avenue frontage. The commercial building shares a driveway to its loading area, and the commercial building currently has no setback from the property line. 44 PROJECT DESCRIPTION:

The Applicant intends to remodel the interior of residential building only, at this time, which includes three (3) existing residential units in one building; and re-establish the building’s multi-family residential use. Each of the three units in the building will include their own kitchen area, bathroom, and bedroom(s). The proposed units bedroom and bathroom composition are as follows: unit 1 will be a two bedroom, one-bathroom apartment, unit 2 will be a one-bedroom one-bathroom apartment, and unit 3 will be a three-bedroom, onebathroom apartment. Each residence will have separate entrances, without interior connections or access between the units. There are no renovations proposed for the exterior of the building or the adjacent commercial office building located on the property at this time.

Land Use: The Subject Property has a Zoning Map designation of “Planned Mixed Use” and a General Plan designation of Mixed-Use Development (MU-D). Section 18.13.040 of the City’s Zoning Ordinance lists ‘multi-family residential’ as an allowable use subject to the issuance of a conditional use permit. The Applicant’s Use satisfies this zoning definition. Therefore, staff finds the Applicant’s Use consistent and compatible with the intent of the General Plan and Zoning Code.

Housing Element: The Housing Element is part of the City’s General Plan. The Housing Element is currently being updated (6th Cycle Housing Element Update), and encourages the creation of new housing opportunities to all income levels while protecting affordable housing while improving the overall housing stock; and to provide new affordable housing and other special needs housing.

Parking & Driveway: The property currently provides a total of five (5) parking spaces, which are accessible from Shasta Street. This does satisfy the parking space requirements for multi-family residential units in MU-P zoning which is as follows.

Dwellings, multiple (apartments, condominiums, or other multiple family developments), one and one-half (1-1/2) covered parking spaces per unit of which at least one parking space per unit shall be covered for units of zero through two bedrooms; two spaces per unit for units of three or more bedrooms, of which at least one parking space per unit shall be covered. (Sand City Municipal Code 18.64.050(G)). However; staff finds the off street parking this property to be legal non-conforming, and will therefore not be required to provide covered parking on the following basis: the addition of covered parking would require the Applicant to build directly against the property line, the Property currently has uniform setbacks to other nearby residential uses and the addition of carports in the front of the Property would change the property to no longer have uniform setbacks with other nearby residential uses, and according to Sand City Municipal Code such repairs and maintenance work as required to keep it in sound condition may be made to a nonconforming building or structure; provided, no structural alterations shall be made 45 except such as are required by law or ordinance or authorized by the Council. Except as otherwise provided elsewhere in this title, the total structural repairs and alterations that may be made in a nonconforming building or structure shall not, during its life subsequent to the date of its becoming a nonconforming use, exceed 50% of its then reasonable market value as determined by the City Council at such time, unless such building or structure is changed to a nonconforming use (Sand City Municipal Code

18.70.111).

Trash: Waste removal services are provided for the property. There shall be an enclosure where storage of individual residential containers for waste, recycling and yard waste/compost will be stored. These waste containers will be physically wheeled on collection days to the curb by building occupants for service and removed from the public right-of-way directly following trash collection.

Hazardous Materials: According to the Monterey County Hazardous Material Questionnaire completed and submitted by the Applicant (see Exhibit G), no hazardous materials or products will be stored or used on-site. This Questionnaire form was provided to the Monterey County Health Department by City staff in the processing of this application.

Water: It is staff understanding from discussions with the Applicant that this project will not require any new fixtures. It was previously a vacant three (3) unit, multi-family residential building prior to the remodel and will continue to be after the full remodel.

Therefore, the building currently has sufficient water credits for this use. Should fixture units change the Applicant shall be required to apply for extra water allocation from the city and a new permit from the Monterey Peninsula Water Management District (MPWMD).

Local/Regional Compliance: All requirements of the City’s contracted Building and Fire Departments, the City Engineer, the City Building Official, the City Police Department, the Sand City Code Enforcement officer(s), the Seaside County Sanitation District, Monterey One Water, the Monterey Bay Air Resources District, and Monterey County Health Department, that are applicable to the Applicant’s Use, shall be implemented to the satisfaction of each department/agency and inspector thereof. Failure of the Applicant to comply shall be sufficient grounds for City termination of CUP 24-001.

Fire Department: The Applicant’s Use of the Applicant’s Unit, as authorized by CUP 24-001, must conform to occupancy, exiting, storage, and operational requirements specified in the California Building and Fire Codes to the satisfaction of the City’s Building Official or Fire Department inspector. The Applicant shall work with the City’s Building Official to determine and post the occupancy load per the Building and/or Fire Codes. The Applicant’s Unit shall be available and open for Fire Department, City Building Official, and/or City code enforcement inspections. Failure to comply with Building Official, Fire Inspector, and/or code enforcement requirements may be 46 sufficient grounds for City issuance of a ‘Cease and Desist’ order for closure of the Applicant’s Use and/or City termination of CUP 24-001.

Indemnification: To the extent permitted by law, the Applicant and Property Owner shall indemnify and hold harmless the City, its City Council, its officers, employees, consultants, and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties, the Applicant, and/or Property Owner in connection with this Permit, including but not limited to any such action to attack, set aside, or void, any permit or approval authorized hereby, including (without limitation) reimbursing the City for its actual attorney’s fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

Consistency Determination: The project as proposed is consistent with the City’s General Plan, Housing Element and Zoning Code, with the exception of parking. The City;s Municipal Code requires one and one-half (1-1/2) covered parking spaces per unit of which at least one parking space per unit shall be covered for units of zero through two bedrooms; two spaces per unit for units of three or more bedrooms, of which at least one parking space per unit shall be covered. (Sand City Municipal Code 18.64.050(G)). The current water allocation is also consistent with the MPWMD rules and regulations, as well as; with the City’s current allocation of water for this parcel. To ensure consistency with the approved use type outlined in the Conditional Use Permit (CUP24-001), renovations to the existing multi-family residential building will require a building permit. The building permit process will include a final inspection of the property prior to occupancy.

CEQA:

The Applicant’s Use at the Subject Property qualifies for a categorical exemption, under the California Environmental Quality Act (CEQA) Guidelines, Section 15301(a), involving the minor alteration to the interior of an existing building.

RECOMMENDATION:

Staff Recommends APPROVAL of the CUP 24-001 with conditions.

FISCAL IMPACTS:

There is no fiscal impact to the City associated with this action.

ATTACHMENTS:

1. Resolution

2. Exhibit A: Findings and Conditions of Approval

3. Exhibit B: CEQA Exemption

4. Exhibit C: Aerial Map

5. Exhibit D: Floor Plan
47 6. Exhibit E: Parking Plan

7. Exhibit F: Site Photo

8. Exhibit G: Hazardous Material Questionnaire
48 CITY OF SAND CITY
RESOLUTION SC ___, 2024

RESOLUTION OF THE CITY COUNCIL OF SAND CITY
GRANTING CUP 24-001 for 398 SHASTA STREET
WHEREAS, Conditional Use Permit (24-001), application submitted by Jeff Reisdorf, consists of an extensive remodel of an existing residential triplex located at 398 Shasta Avenue (APN: 011-253-012). The residential triplex remodel involves interior improvements, including renovations and rehabilitation of the existing bathroom and kitchen areas in each of the three units; and
WHEREAS, the intended use for the existing residential building is rehabilitation and rental occupancy of three (3) multi-family residential units. Where unit 1 will be a two bedroom, one-bathroom apartment, unit 2 will be a one-bedroom one-bathroom apartment, and unit 3 will be a three-bedroom, one- bathroom apartment as described herein and illustrated by the Floor Plan (Exhibit D) attached hereto and incorporated herein by reference; and
WHEREAS, the property currently provides a total of five (5) parking spaces, which are accessible from Shasta Street. Staff finds there is adequate space for off street parking as set forth by Sand City Municipal Code 18.64.050, and is also considered legal non-conforming (Sand City Municipal Code 18.70.111). Therefore, the applicant will not be required to build covered parking for the subject property at this time.

WHEREAS, the Applicant’s Use at the Subject Property qualifies for a categorical exemption, under the California Environmental Quality Act (CEQA) Guidelines, Section 15301(a), involving the minor alteration to the interior of an existing building; and WHEREAS, existing on-site water credit will be sufficient to facilitate the project; and WHEREAS, the City Council of the City of Sand City has accepted the findings for approving Conditional Use Permit CUP23-003 as outlined in the City staff report, dated May 21, 2024, and futher described in Exhibit A, Findings and Conditions of Approval, attached hereto and incorporated herein by reference.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Sand City does hereby grant and issue the Conditional Use Permit CUP24-001 with the following terms and conditions listed in Exhibit A – Findings and Conditions of Approval PASSED AND ADOPTED by the City Council of the City of Sand City this ___, day of _____, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
49 APPROVED:
___________________________
Mary Ann Carbone, Mayor
ATTEST:

DATED: ____________________
___________________________
Kerry Lindstrom, City Clerk
50 EXHIBIT A
CUP24-001 FINDINGS AND CONDITIONS OF

APPROVAL

EXHIBIT A

CITY OF SAND CITY
CONDITIONAL USE PERMIT CUP24-001

FINDINGS AND CONDITIONS OF APPROVAL
Project Name: Conditional Use Permit (CUP24-001) for three (3) multi-family residential units at 398 Shasta Street
Address: 398 Shasta Street, Sand City, CA
Hearing Date: May 21st, 2024
Conditions of Approval:

A. Permit Effectiveness/Time Limits:

1. Conditional Use Permit CUP24-001, is not valid, and project use(s) shall not commence, until two (2) copies of this Resolution/Permit, signed by the permittee and landowner, acknowledging receipt of the Resolution/Permit and acceptance of the terms and conditions, are returned to the City's Planning Department. Failure of the applicant to return the 2 copies of the signed Resolution/Permit within thirty (30) days from the date of City Council approval shall cause said Conditional Use Permit to become null and void unless good cause to grant an extension is found acceptable by the Community Development Director.

B. Land Use Terms and Conditions:

1. Property Maintenance: The site shall be maintained in a clean, orderly, weed-free, and litter-free condition. The property owner shall be responsible for maintenance and upkeep of the entire property.

2. Refuge storage & pickup: Trash, litter, boxes, crates, debris, or other used and/or discarded materials generated by the occupants of this building shall be stored within the appropriate waste collection receptacle(s).

Except on a designated trash collection day, said waste receptacle(s) shall be screened from public view. The property owner shall be responsible for arranging and providing waste hauler access for standard pick-up services.
51 EXHIBIT A
CUP24-001 FINDINGS AND CONDITIONS OF

APPROVAL

3. Storage: No outdoor storage or storage containers are allowed, unless they are fully screened/enclosed, subject to review and approval of the Building Official.

4. Hazardous Material: No hazardous materials will be stored or used onsite.

5. Building: Proper building permits shall be acquired for all construction related activities, including the following: interior building remodel and trash enclosures, subject to approval of the City Building Official.

6. Design: Approval for all exterior improvements, shall be subject to design approval by the Design Review Committee and appealable to the City Council, prior to the issuance of a Building Permit.

C. General Requirements:

1. All use types will remain consistent with the permitted uses as described in the Conditional Use Permit, which includes the following:
 Multi-family residential

2. Any future use within the existing commercial building located on the property will require a separate CUP.

3. Violation: If the City determines any term or condition of the CUP 24-001 has been violated, written notice shall be issued to the property owner, that if such violation is not corrected or removed within 30 days, a public hearing may then be scheduled where the City Council may consider amending or revoking the Conditional Use Permit CUP24-001 and may then order said Permits amended or revoked.

4. Interpretation: Any questions of intent or interpretation regarding any condition of Conditional Use Permit CUP24-001 shall be resolved by the City Manager or their designee.

5. The issuance of Conditional Use Permit CUP24-001 shall not supersede or override any applicable requirements of any other City, County, State, or Federal agency.
52 EXHIBIT A
CUP24-001 FINDINGS AND CONDITIONS OF

APPROVAL
Findings of Approval:

2. The intended use type for the existing commercial building is consistent with the Planned Mixed-Use (MU-P) zoning of the surrounding properties as indicated in the Sand City Municipal Code (18.13.040); and on the City of Sand City Zoning Map;

3. The establishment of multi-family residential with the intended use types as described in CUP24-001 is allowed under the MU-P zoning regulations with an approved Conditional Use Permit as indicated in the Sand City Municipal Code (18.13.040); and on the City of Sand City Zoning Map;

4. Adequate parking can be provided for the project which is as follows. Dwellings, multiple (apartments, condominiums, or other multiple family developments), one and one-half (1-1/2) covered parking spaces per unit of which at least one parking space per unit shall be covered for units of zero through two bedrooms; two spaces per unit for units of three or more bedrooms, of which at least one parking space per unit shall be covered. (Sand City Municipal Code

18.64.050(G)). Staff finds the existing off-street parking conditions to be legal non-conforming, therefore the Applicant will not be required to build covered parking which is as follows: Such repairs and maintenance work as required to keep it in sound condition may be made to a nonconforming building or structure; provided, no structural alterations shall be made except such as are required by law or ordinance or authorized by the Council. Except as otherwise provided elsewhere in this title, the total structural repairs and alterations that may be made in a nonconforming building or structure shall not, during its life subsequent to the date of its becoming a nonconforming use, exceed 50% of its then reasonable market value as determined by the City Council at such time, unless such building or structure is changed to a nonconforming use (Sand City Municipal Code 18.70.110)

5. Utilities, including electricity, gas, and, sewer, are sufficiently available to facilitate the Applicant’s Use at the Subject Property as the properties previous use is not being changed from its existing use a 3-unit multi-family residential development.

6. The previous use of this building was three (3) one-bedroom one-bathroom multifamily residential, therefore, there will be no need for additional water credits as there is no change in use nor will there be a change in the number of units, as it is staffs understanding through conversation with the Applicant that there will be no change in fixture counts;

7. The Applicant’s Use is not anticipated to pose an impediment of traffic flow, once completed there will be no regular large shipments to the property which would require large vehicles to make deliveries that impede traffic flow to the surrounding area and neighborhood;
53 EXHIBIT A
CUP24-001 FINDINGS AND CONDITIONS OF

APPROVAL

8. A notice detailing the project was submitted to local advisory agencies on February 16, 2024. No comments or concerns regarding the project were received from the advisory agencies; and

9. The intended use on this property qualifies for a categorical exemption, under California Environmental Quality Act (CEQA) guidelines section 15301(a). which states that Interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances are permitted exempt projects given that the project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.
54 Statutory Exemptions. State code number:

_______________________________________________
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): ____________________________ P.O. Box 3044, Room 113 _______________________________________________ Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County:

Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:

Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011
55 EXHIBIT C
CUP 24-001 AERIAL MAP

EXHIBIT C

AERIAL MAP
Subject
Property
56 EXHIBIT D
CUP 24-001 SITE PLANS

EXHIBIT D

SITE PLANS
57 EXHIBIT E
CUP 24-001 PARKING PLANS

EXHIBIT E

PARKING PLANS
Sh
a
sta
St
re
e
t
58 EXHIBIT F
CUP 24-001 SITE PHOTO

EXHIBIT F

SITE PHOTO
59 EXHIBIT G
CUP 24-001 HAZARDOUS MATERIAL QUESTIONNAIRE

EXHIBIT G
X
X
60 EXHIBIT G
CUP 24-001 HAZARDOUS MATERIAL QUESTIONNAIRE
61 AGENDA ITEM
10A.

Approve a Resolution Adopting the City of
Sand City's Budget for the Fiscal Year
2024-2025
62 City of Sand City

STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Vibeke Norgaard, City Manager, Jennifer Pope, Finance Manager, & Audrey Cray, HR/Risk Manager
SUBJECT: Approval of Proposed Budget for Fiscal Year 2024-2025 DATE: June 4, 2024
______________________________________________________________________ BACKGROUND/DISCUSSION:

In accordance with Sand City Municipal Code Section 2.50.070, we are pleased to present the proposed annual budget for the upcoming fiscal year. The proposed Fiscal Year 2024-2025 budget was developed with input from all City departments and is based on conservative growth projections in the forthcoming year.

The projected revenue for Fiscal Year 2024-2025 totals $13.4 million and includes $10.4 million in operating revenue and $3 million in special projects and grants, a $1,101,476 increase over the prior year’s amended budget. The Fiscal Year 2024-2025 proposed expenditure budget is approximately $12.2 million, out of which $8.7 million is projected operating expenditures and $3.4 million projected capital improvements and special projects. It is currently projected that the City will have a surplus of $1.3 million for Fiscal Year 2024-2025, though this will most likely be amended as financial circumstances change throughout the year and new projects come online.

CITY BUDGET SUMMARY
Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget
Difference
Operating Revenue $9,320,041 $10,289,504 $10,405,529 $116,025 Non-Operating Revenue $255,131 $2,045,696 $3,031,147 $985,451 SUB TOTAL $9,575,172 $12,335,200 $13,436,676 $1,101,476 Operating Expenditures $6,900,853 $8,256,040 $8,700,354 $444,314 Non-Operating Expenditures $823,003 $3,671,859 $3,460,859 -$211,000 SUB TOTAL $7,723,856 $11,927,899 $12,161,213 $233,314
TOTAL $1,851,316 $407,301 $1,275,463 $868,163
Revenue
The proposed revenue budget is $13.4 million, an increase of $1.1 million from Fiscal Year 2023-2024.
63 Operating Revenue:

The City is projecting a conservative increase in operating revenue for FY 2024-2025.

Staff’s projections included an estimated increase in operating revenues of approximately $116,025 when compared to Fiscal Year 2023-2024. Some of the larger changes include approximately $94,909 in Sales Tax and $185,000 in Transaction Use Tax.

Other Revenue:

Staff’s projections also include an estimated increase in Special Projects and Grant revenue of approximately $985,451 when compared to the previous fiscal year. This includes an increase of approximately $1.8 million in grant funding. The grant funding has been awarded but the City will be able to use it to reimburse expenditures as the projects move ahead. These include: Prop 1 SW IRWM (Catalina) grant ($652,000), Prop 1 SW (Contra Costa) grant ($1,639,500), the California Coastal Conservancy grant ($423,000), the Permanent Local Housing Allocation grant ($131,647), and Cannabis Retail Access grant ($115,000). It also includes a decrease of $725,000 from the Housing Account which will be used for the purchase of real estate and a decrease of $45,000 that was previously received through a reimbursement agreement for the South of Tioga Project.

City Revenue Budget Summary
Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget
Increase
(Decrease)
Percent
Change

OPERATING REVENUES
Property Taxes $158,418 $153,176 $137,962 -$15,214 -10% Sales/Use Taxes $3,622,075 $3,729,000 $3,823,909 $94,909 3% Transaction Tax $3,495,665 $4,446,000 $4,631,000 $185,000 4% TOT Tax $124,723 $126,000 $120,000 -$6,000 -5%
Franchise/Users Tax $288,154 $156,600 $140,500 -$16,100 -10% Business License $655,275 $711,000 $710,100 -$900 0%
Planning Revenues $8,308 $16,300 $11,925 -$4,375 -27%
Building Revenues $27,018 $31,800 $27,150 -$4,650 -15%
Police Revenues $49,296 $25,243 $17,700 -$7,543 -30%
Public Works Revenues $34,880 $57,040 $44,533 -$12,507 -22% Interest $267,889 $336,300 $235,600 -$100,700 -30%
Rental $17,293 $19,000 $19,000 $0 0%
ROPS Residual $145,642 $230,000 $230,000 $0 0%
SA Admin Fees Reimbursement $127,330 $0 $0 $0 0%
Misc. Revenues $87,005 $46,986 $57,250 $10,264 22%
Recurring Grants $159,176 $198,059 $191,900 -$6,159 -3% Cal-Am $51,892 $7,000 $7,000 $0 0%

SUBTOTAL OPERATING
REVENUE $9,320,041 $10,289,504 $10,405,529 $116,025 1%

OTHER REVENUE SOURCES
Special Project Revenues $234,380 $115,000 $70,000 -$45,000 -39% 64 Housing Account $0 $725,000 $0 -$725,000 -100%
Grants $20,751 $1,205,696 $2,961,147 $1,755,451 146%
SUBTOTAL OTHER REVENUE $255,131 $2,045,696 $3,031,147 $985,451 48% TOTAL REVENUE $9,575,172 $12,335,200 $13,436,676 $1,101,476 9% Expenditures
The proposed expenditure budget for FY 24-25 is $12.1 million, an estimated increase of $233,314.

Operating Expenditures:

The City anticipates an increase in operating expenditures for FY 2024-2025. Staff’s projections included an estimated increase in operating expenditures of approximately $444,314 when compared to the Fiscal Year 2023-2024 budget. For Fiscal Year 2024- 2025, there is a large increase to non-departmental expenditures ($710,333) and a large decrease to Public Safety ($250,125) and Public Works ($201,495). These changes are due to the new budget moving Unfunded Accrued Liability (UAL) payments and Retiree Health Payments from department expenditures to the non-departmental category. There is also an increase in planning ($45,373), building, ($49,990) and attorney’s fees ($117,900) which reflects the need for increased services due to the significant increase in capital improvements, major projects, and multiple awards of new grant funding requiring administration and project development in a short time period.

Other Expenditures:

Other expenditures include an estimated decrease of $211,000 compared to the previous fiscal year. The decrease in expenditures from the prior fiscal year is due to the one-time payment of $725,000 expected to be made in Fiscal Year 2023-2024 for the purchase of real estate.

City Expenditure Budget Summary
Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget
Increase
(Decrease)
Percent
Change

OPERATING EXPENSES
City Council $116,563 $105,188 $127,880 $22,692 22%
Administration $679,574 $856,239 $816,410 -$39,829 -5%
Finance $509,175 $596,970 $546,795 -$50,175 -8%
Attorney $172,814 $257,100 $375,000 $117,900 46%
Planning $399,475 $454,500 $499,873 $45,373 10%
Building $39,951 $54,800 $104,790 $49,990 91%
Police $3,490,115 $3,847,330 $3,597,205 -$250,125 -7%
Fire $328,054 $346,268 $358,387 $12,119 3%
Public Works $746,643 $1,248,861 $1,047,366 -$201,495 -16% 65 Parks $7,776 $39,500 $47,230 $7,730 20%
Government Buildings $71,905 $70,619 $87,853 $17,234 24% Community Outreach/Econ Dev $215,254 $240,800 $243,369 $2,569 1% Non-Departmental $123,554 $137,865 $848,198 $710,333 515%

SUBTOTAL FOR OPERATING
EXPENSES $6,900,853 $8,256,040 $8,700,354 $444,314 5%

OTHER EXPENSES
Capital Outlay $560,292 $2,259,918 $2,906,147 $646,229 28.60% Housing Account $0 $725,000 $0 -$725,000 -100.00%
Special Projects $262,711 $686,941 $554,712 -$132,229 -19.25% SUBTOTAL OTHER EXPENSES $823,003 $3,671,859 $3,460,859 -$211,000 -6% TOTAL EXPENSES $7,723,856 $11,927,899 $12,161,213 $233,314 2% Capital Improvement Plan
The proposed budget includes funding for ongoing capital improvement projects. An updated five-year Capital Improvement Plan will be presented to the Council during the first half of Fiscal Year 2024-2025.

At the May 29, 2024, Budget and Personnel Committee meeting, the Committee reviewed the Proposed Budget for Fiscal Year 2024-2025 and approved staff’s recommendation to bring the Proposed Budget to the City Council for consideration and approval.

FISCAL IMPACT:

The total revenue for the proposed Fiscal Year 2024-2025 budget is $13.4 million and the total proposed expenditures is $12.2 million, with an estimated surplus of $1.3 million for the fiscal year.

RECOMMENDATION:

Staff recommends the approval of the Fiscal Year 2024-2025 Proposed Budget.

ATTACHMENTS:

1. Resolution

2. Fiscal Year 2024-2025 Proposed Budget Book
66 CITY OF SAND CITY
RESOLUTION SC 24- ___, 2024

RESOLUTION OF THE CITY COUNCIL OF SAND CITY ADOPTING THE CITY OF SAND CITY’S BUDGET FOR THE FISCAL YEAR 2024-2025.

WHEREAS, the Budget and Personnel Committee and the City Council of Sand City has reviewed the Proposed Budget for Fiscal Year 2024-2025; and WHEREAS, the Budget and Personnel Committee has recommended the proposed budget (Exhibit A), be considered for adoption by the City Council; and WHEREAS, the City Council recognizes that the proposed budget is subject to further review and amendments at appropriate times as the fiscal year progresses; and WHEREAS, certain general economic conditions may impact the City which may require changes to the City Budget throughout the year: and
WHEREAS, the City Council of Sand City finds the Fiscal Year 2024-2025 Proposed Budget satisfactory to commence the operations and capital improvement programs of the City in the next fiscal year.

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

1. The Proposed City Budget for Fiscal Year 2024-2025 (Exhibit A) is hereby adopted.

2. City staff is authorized to continue City operations as generally prescribed in the 2024-2025 Proposed Budget and is directed to follow the general financial guidelines outlined therein.

PASSED AND ADOPTED by the Sand City Council on this __ day of ___ 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________________
Mary Ann Carbone, Mayor
ATTEST:

DATED: _____________________
____________________________
67 Kerry Lindstrom, City Clerk
68 CITY OF SAND CITY
2024-25 BUDGET
FY 24-25 City of Sand City
Mary Ann Carbone, Mayor
Jerry Blackwelder, Vice Mayor
Marilee Diaz, Councilmember
Greg Hawthorne, Councilmember
Elizabeth Sofer, Councilmember
Vibeke Norgaard, City Manager
69

Page 1 ends

TABLE OF CONTENTS
INTRODUCTION............................................................................................................... 2 City Manager’s Message...................................................................................................................2 Revenues.................................................................................................................................................8 Expenditures .......................................................................................................................................11 OPERATING BUDGET .................................................................................................. 13 City Council..........................................................................................................................................13 City Attorney........................................................................................................................................15 Administration .....................................................................................................................................17 Finance..................................................................................................................................................22 Non-Departmental.............................................................................................................................25 Community Development............................................................................................................... 28 Public Works .......................................................................................................................................34 Engineering.......................................................................................................................................38 Public Safety .......................................................................................................................................40 Police...................................................................................................................................................40 Fire .......................................................................................................................................................44 Community Outreach.......................................................................................................................45 Government Buildings .....................................................................................................................46 Parks ......................................................................................................................................................47 CAPITAL IMPROVEMENT PLAN................................................................................. 48 GRANTS .......................................................................................................................... 50 APPROPRIATIONS LIMIT............................................................................................. 55 70 City of Sand City
2024-25 Budget

Page 2 ends

City of Sand City
2024-25 Budget

CITY OF SAND CITY
Introduction
City Manager’s Message
Honorable Mayor, City Council, and Residents of Sand City, The Fiscal Year 2024-2025 (“FY 24-25”) proposed budget is presented for your consideration and recommended adoption on June 4, 2024. The proposed budget communicates what we think is the most fiscally responsible approach to funding operations and capital investments, to best serve the needs of the Sand City community. I am particularly proud to be presenting the budget in a new budget-book format that is intended to make the budget more accessible and transparent – a team effort by all Department Heads and the result of a great deal of hard work on the part of our Finance team.

We will start the fiscal year with a relatively strong projected financial outlook, and a highly competent and efficient workforce eager to improve the Sand City community. In fiscal year 23-24, much of our capacity has been spent on major projects such as the completion of the 6th Cycle Housing Element, researching and applying for grant funding for CIP projects such as the coastal trail and the multi -use bike trail, as well as completing two CIP projects that had languished for years – the Calabrese park upgrade and the restoration of the stormdamaged observation platform.

Although we are a small City, in our drafting of the Fiscal Year 24-25 budget we have taken into account various factors at the global, national, state and local levels that have the potential to impact our City’s financial health. At the global level, we continue to face economic uncertainty and instability due to relatively high interest rates, conflicts overseas, and volatility in financial markets. At the national level, we continue to see a decline in personal savings and the markets, along with other sectors of the economy, remain tentative about the effects of the outcome of the presidential race this year, remain higher than the long-term average of 3.28%. The national inflation rate at the time of writing this is

3.36% compared to 4.93% last year. At the state level, the economic outlook is mixed:
largely as a result of severe revenue decline in 2022-23, the state faces a $68 billion budget 71

Page 3 ends

deficit; at the same time, studies suggest that California’s economy should grow somewhat faster than the nation’s economy. At the same time, California’s unemployment rate is expected to remain above the national average. (According to the Bureau of Labor Statistics, the state’s unemployment rate is currently 5.3%; the national rate was 3.9%.).

The Consumer price index (a measure of the average change over time in the prices paid by urban consumers for consumer goods and services) is currently 3.4%.

These national and international events have the potential to affect budgeted revenue as they impact businesses and consequently sales tax revenue generated in the City. With these unknown variables in mind, we have produced a budget that is conservative from a revenue perspective. However, the City’s revenue has been greatly improved by the voters’ passage of a new transaction use tax initiative in 2022, as well as a strong grant writing effort on the part of the City staff. The budget, therefore, proposes a slight increase in revenue.

The projected revenue for FY 24-25 totals $13.4 million and includes $10.4 million in operation revenue and $3 million in special projects and grants revenue, a $1,101,476 increase over the prior fiscal year’s amended budget.

The FY 24-25 proposed expenditure budget is approximately $12.2 million, out of which $8.7 million is projected operating expenditures and $3.4 million projected capital improvements and special projects. The current budget projects that the City will have a surplus of $1.3 million for FY 24-25, although we anticipate that we will bring back to the Council a consideration of an amendment to the budget as financial circumstances change throughout the year and new projects come online. Notably, the surplus when just considering operating revenue compared to operating expenditures is approximately $1.7 million.

Over the last year, four new employees were hired in key City positions: a new Finance Director, Police Chief, Administrative Assistant, and a new HR/Risk Manager. Currently the City has 19 full-time employees within the following departments: Administration, Finance, City Clerk, Public Safety, and Public Works. The City utilizes consultants in several areas for assistance in lieu of permanent additions to the payroll, such as legal services, engineering, planning and information technology, which allows for a broad array of expertise in those areas from the firms that provide the services.

I believe the proposed budget will result in an even greater service level to our residents than we already offer, it allows for further technological efficiencies to move the City away from antiquated paper-based systems in accounting and other departments, and it retains a strong commitment to public safety and supports a strategic investment into infrastructure and economic development.
72 City of Sand City
2024-25 Budget

Page 4 ends

CITY BUDGET SUMMARY
Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget
Difference
Operating Revenue $9,320,041 $10,289,504 $10,405,529 $116,025 Non Operating Revenue $255,131 $2,045,696 $3,031,147 $985,451 SUB TOTAL $9,575,172 $12,335,200 $13,436,676 $1,101,476 Operating Expenditures $6,900,853 $8,256,040 $8,700,354 $444,314 Non Operating Expenditures $823,003 $3,671,859 $3,460,859 -$211,000 SUB TOTAL $7,723,856 $11,927,899 $12,161,213 $233,314
TOTAL $1,851,316 $407,301 $1,275,463 $868,163
Revenue:

The budget projects an estimated increase in operating revenues of approximately $116,025 when compared to FY 23-24. Some of the larger changes include approximately $94,909 in Sales Tax and $185,000 in Transaction Use Tax as well as an increase in grant revenue of approximately $985,451 when compared to the previous fiscal year.

The increase in revenue is partly affected by revenue generated from grant sources as grant-funded projects come online. These projects include: The Stormwater Improvement Project (Prop 1 SW IRWM -Catalina grant ($652,000) ; and Prop 1 SW- (Contra Costa grant ($1,639,500); the Coastal Trail project (California Coastal Conservancy grant ($423,000)), the feasibility study of an affordable housing project at the Art Park (the Permanent Local Housing Allocation grant ($131,647)); and the initiation of a cannabis retail program (Cannabis Retail Access grant ($115,000)). It also includes a decrease of $725,000 from the Housing Account which will be used for the purchase of real estate and a decrease of $45,000 that was previously received through a reimbursement agreement for the South of Tioga Project. 73

Page 5 ends

CITY REVENUE SUMMARY
Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget
Increase
(Decrease)
Percent
Change

SUBTOTAL OPERATING
REVENUE $9,320,041 $10,289,504 $10,405,529 $116,025 1%

OTHER REVENUE SOURCES
Special Project Revenues $234,380 $115,000 $70,000 -$45,000 -39% Housing Account $0 $725,000 $0 -$725,000 -100%
Grants $20,751 $1,205,696 $2,961,147 $1,755,451 146%
SUBTOTAL OTHER REVENUE $255,131 $2,045,696 $3,031,147 $985,451 48% TOTAL REVENUE $9,575,172 $12,335,200 $13,436,676 $1,101,476 9% 74 City of Sand City
2024-25 Budget

Page 6 ends

Expenditures
The budget proposes expenditures of $12.1 million, an estimated increase of $233,314.

The budget projections include an estimated increase in operating expenditures of approximately $444,314. There is also an increase in planning ($45,373), building, ($49,990) and attorney’s fees ($117,900) which reflects the need for increased services due to the significant increase in capital improvements, major projects, potential litigation and multiple awards of new grant funding requiring administration and project development in a short time period.

The large increase in Non-Departmental expenditures ($710,333) and a large decrease in Public Safety ($250,125) and Public Works ($201,495) are due to the new budget moving Unfunded Accrued Liability (UAL) payments and Retiree Health Payments from each individual department’s expenditures to the Non-Departmental category.

Other expenditures include an estimated decrease of $211,000 compared to the previous fiscal year which is due to a one-time payment of $725,000 expected to be made for the purchase of real estate.

CITY EXPENDITURE SUMMARY
Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget
Increase
(Decrease)
Percent
Change

OPERATING EXPENSES
City Council $116,563 $105,188 $127,880 $22,692 22%
Administration $679,574 $856,239 $816,410 -$39,829 -5%
Finance $509,175 $596,970 $546,795 -$50,175 -8%
Attorney $172,814 $257,100 $375,000 $117,900 46%
Planning $399,475 $454,500 $499,873 $45,373 10%
Building $39,951 $54,800 $104,790 $49,990 91%
Police $3,490,115 $3,847,330 $3,597,205 -$250,125 -7%
Fire $328,054 $346,268 $358,387 $12,119 3%
Public Works $746,643 $1,248,861 $1,047,366 -$201,495 -16% Parks $7,776 $39,500 $47,230 $7,730 20%
Government Buildings $71,905 $70,619 $87,853 $17,234 24% Community Outreach/Econ
Dev $215,254 $240,800 $243,369 $2,569 1%
75

Page 7 ends

Non-Departmental $123,554 $137,865 $848,198 $710,333 515%

SUBTOTAL FOR
OPERATING EXPENSES $6,900,853 $8,256,040 $8,700,354 $444,314 5%

OTHER EXPENSES
Capital Outlay $560,292 $2,259,918 $2,906,147 $646,229 28.60% Housing Account $0 $725,000 $0 -$725,000 -100.00%
Special Projects $262,711 $686,941 $554,712 -$132,229 -19.25%

SUBTOTAL OTHER
EXPENSES $823,003 $3,671,859 $3,460,859 -$211,000 -6%
TOTAL EXPENSES $7,723,856 $11,927,899 $12,161,213 $233,314 2% Capital Improvement Plan
The proposed budget includes funding for ongoing capital improvement projects. Council previously approved a five-year Capital Improvement Plan which will be updated and will be presented to the Council during the first half of FY 24-25.

I would like to thank each City Councilmember for their leadership, insight, and support.

Their guidance allows the City to operate within a fiscally responsible spending plan that reflects thoughtful goals, and most importantly, provides funding for municipal services that positively benefit the community.

I also thank the entire Sand City team for its awesome work this past year and its eagerness to make Sand City an even better place to live and visit than it already is! Respectfully submitted,
Vibeke Norgaard
City Manager
76 City of Sand City
2024-25 Budget

Page 8 ends

Revenues
The Fiscal Year 2024-2025 Proposed Budget includes $10,405,529 in recurring revenue and $13,436,676 in total revenue. As illustrated in the chart below, the major source of revenue is tax revenue at 65%.

Operating Revenue
Tax Revenue, at a proposed amount of $8,853,371 for Fiscal Year 2024-2025 consists of property taxes, franchise/utility users taxes, sales and use taxes, and transaction taxes, among others.
• Franchise Utility Users Tax is a five percent (5%) fee on those who provide garbage, electric, gas, and cable services. In Sand City, these are Greenwaste, Pacific Gas and Electric Company, CalAm, and Comcast.

Business License Revenue accumulates from the fee for business license applications and renewals for all businesses located in Sand City and all businesses providing Property Taxes, 1%
Sales/Use Taxes,
28%
Transaction Tax,
34%
Franchise/Users TOT Tax, 1%
Tax, 1%
Business License,
5%
Planning/Bldg
Revenue, 0.3%
Police Revenues,

0.1%
Public Works
Revenue, 0.3%
Interest, 2%
Lease/Rental, 0.2%
ROPS Residual,
2%
Misc. Revenues,

0.4%
Special Projects,
1%
Grants, 22%
24/25 Proposed Revenue Recurring Grants, 1%
77

Page 9 ends

supplies or services in Sand City. In Fiscal Year 2023-2024, Business License revenue is collected by HDL and sent to the City of Sand City. This ensures accurate tax reporting and oversight.

Interest Revenue stems from various bank accounts, Certificates of Deposit, and investment accounts.

Other Miscellaneous Revenue encompasses all items that do not fall into the other categories such as impact, mitigation fees, copies of documents, and West End Celebration revenue for donations and exhibitor fees.

Departmental Revenue is revenue that is created from the departments of Planning, Public Safety, and Public Works. Planning revenue ($11,925) comes from the fees associated with coastal development permits, conditional use permits, temporary conditional use permits, site permits, design review, plan check, and parking permits.

Building revenue ($27,150) comes from the fees of building permits and Short-Term Rental inspections. Public Safety ($17,700) revenue arises from City fines, parking violation fines, motor vehicle fines, State allocated funding, dog licensing, asset forfeiture, unclaimed property, and police reports. Public Works ($44,533) revenue derives from engineering fees; a combination of taxes, State allocated funding, and California code fines.

Recurring Grants includes the Department of Justice Community Oriented Policing Services (COPS) grant, the Bureau of Justice Assistance Bulletproof Vest Partnership (BVP) grant, the California Department of Resources Recycling and Recovery (CalRecycle) grant, the Monterey Bay Area Insurance Authority (MBASIA) Safety and Fitness grant, and County Service Agreement (CSA) 74 funds acquired through the Monterey County Emergency Medical Services (EMC) Agency.

The California American Water (CalAm) Lease was entered into in 2009 as an amended and restated lease agreement whereby CalAm leases and operates the desalination facility plant. CalAm will hold the lease property for a term of thirty (30) years. The minimum future rental under the lease as of June 30, 2024, is $7,000 per year through Fiscal Year 2038-2039.

Other Revenue
Special Projects Revenue includes developer reimbursement costs that fall under a Reimbursement Agreement with the City of Sand City.

Grants Revenue includes non-recurring grant revenue from the Permanent Local Housing Allocation Program (PLHA), the California Coastal Conservancy, Monterey Bay Air Resources District (MBARD), and Prop 1 SW Grants. See Grants for more information related to these revenue sources.
78 City of Sand City
2024-25 Budget

Page 10 ends

Account Description FY 22/23
Actuals
FY 23-24
Amended Budget
FY 24-25
Proposed Budget

OPERATING REVENUES
Property Taxes $158,418 $153,176 $137,962
Sales/Use Taxes $3,622,075 $3,729,000 $3,823,909
Transaction Tax $3,495,665 $4,446,000 $4,631,000
TOT Tax $124,723 $126,000 $120,000
Franchise/Users Tax $288,154 $156,600 $140,500
Business License $655,275 $711,000 $710,100
Planning Revenues $8,308 $16,300 $11,925
Building Revenues $27,018 $31,800 $27,150
Police Revenues $49,296 $25,243 $17,700
Public Works Revenues $34,880 $57,040 $44,533
Interest $267,889 $336,300 $235,600
Rental $17,293 $19,000 $19,000
ROPS Residual $145,642 $230,000 $230,000
SA Admin Fees Reimbursement $127,330 $0 $0
Misc. Revenues $87,005 $46,986 $57,250
Recurring Grants $159,176 $198,059 $191,900
Cal-Am $51,892 $7,000 $7,000
SUBTOTAL OPERATING REVENUE $9,320,041 $10,289,504 $10,405,529

OTHER REVENUE SOURCES
Special Project Revenues $234,380 $115,000 $70,000
Housing Account $0 $725,000 $0
Grants $20,751 $1,205,696 $2,961,147
SUBTOTAL OTHER REVENUE $255,131 $2,045,696 $3,031,147
TOTAL REVENUE $9,575,172 $12,335,200 $13,436,676
79

Page 11 ends

Expenditures
The Fiscal Year Proposed Budget includes $8,700,354 in operating expenditures and total expenditures of $12,161,213.

Operating Expenditures
Operating Expenditures for each department include Salaries and Benefits, Supplies, Small equipment purchases, telephones, contract services, Memberships, and Meeting/Training.

Non-Department Expenditures is comprised of expenses utilized citywide. This covers expenses for memberships, municipal code updates, committees, health benefit surcharges, LAFCO, Unfunded Accrued Liability (CalPERS), donations and contributions, advertising, office supplies, telephones, physical exams and vaccinations, and utilities.

Community Outreach describes expenses for the West End Celebration event, contract services for the community garden, electricity on the recreation trail, miscellaneous City events, maintenance for the recreation trail and the community garden, and City Council outreach.

City Council, 1%
Administration, 7%
Finance, 4%
Attorney, 3%
Planning, 4%
Building, 1%
Police , 30%
Public Works, 9% Fire, 3% Parks, .44%
Gov Bldgs, 1%
Econ Dev, 2%
Special Projects,
4%
Capital Outlay,
24%
Non-Departmental,
7%
24/25 Proposed Expenditures
80 City of Sand City
2024-25 Budget

Page 12 ends

Other Expenditures
Other Expenditures are funded though Grant Revenues for Fiscal Year 2024-2025.

Capital Outlay expenditures include ongoing Capital Improvement Projects (CIP) and Capital Outlay purchases. Fiscal Year 2024-2025 ongoing CIP includes Stormwater Improvement Projects for Contra Costa and Catalina, improvements at the Art Park, Coastal Trail Development, Bike Trail, and an affordable housing project. Capital Outlay expenditure includes updated body worn cameras for the Police Department.

Special Project expenditures include projects relating to digitizing Planning and Engineering files, Habitat Expense for North of Playa, Housing Element production/implementation, General Plan update, and Cannabis Retail project.

Account Description FY 22/23
Actuals
FY 23-24
Amended
Budget
FY 24-25
Proposed
Budget

OPERATING EXPENSES
City Council $116,563 $105,188 $127,880
Administration $679,574 $856,239 $816,410
Finance $509,175 $596,970 $546,795
Attorney $172,814 $257,100 $375,000
Planning $399,475 $454,500 $499,873
Building $39,951 $54,800 $104,790
Police $3,490,115 $3,847,330 $3,597,205
Fire $328,054 $346,268 $358,387
Public Works $746,643 $1,248,861 $1,047,366
Parks $7,776 $39,500 $47,230
Government Buildings $71,905 $70,619 $87,853
Community Outreach/Economic Develo $215,254 $240,800 $243,369 Non-Departmental $123,554 $137,865 $848,198
SUBTOTAL FOR OPERATING EXPENSES $6,900,853 $8,256,040 $ 8,700,354

OTHER EXPENSES
Capital Outlay $560,292 $2,259,918 $2,906,147
Housing Account $0 $725,000 $0
Special Projects $262,711 $686,941 $554,712
SUBTOTAL OTHER EXPENSES $823,003.00 $3,671,859.00 $ 3,460,859 TOTAL EXPENSES $7,723,856 $11,927,899 $ 12,161,213
81

Page 13 ends

OPERATING BUDGET
City Council
Department Pictures
Description
The City Council is responsible to the citizens of Sand City for the proper and orderly government of the City. As the legislative body, the Council enacts the laws that govern the activities of the City.

The Council is composed of five members elected by the registered voters of Sand City.

Councilmember terms last four years and the Mayoral term lasts two. The Council appoints the City Manager, City Attorney, and members of advisory committees. The Council chooses one of its members as Vice Mayor, who can preside at a Council meeting in the absence of the Mayor.

The Council receives recommendations on proposed legislation from the City Manager and City Attorney. In each legislative enactment, comments from citizens and organizations are heard and considered.

The Council is also responsible for adopting the City’s annual budget and authorizes the expenditure of funds for items in the budget. Plans and specifications for public works are approved by the Council.
82 City of Sand City
2024-25 Budget

Page 14 ends

Budget Summary
The main notable expenditures include:
• An increase to the Salaries line item of $26,000 due to the approved Mayor and Council stipend increase effective November 2024 with the entry of any new elected officials.
• A reduction to the CalPERS Unfunded Accrued Liability line item due to moving this expenditure to Non-Departmental expenditures in FY 2024-25.

Council Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Number Account Description Actual Expenses Amended Budget Proposed Budget 5025 Dues/Subscriptions $300 $0 $0
5030 Auto Allowance $2,400 $2,400 $2,400
5040 Salaries $5,700 $24,000 $50,000
5065 Dental $4,099 $4,300 $4,689
5066 VISION COVERAGE $764 $900 $775
5067 Life Ins. $0 $126 $0
5070 Health Benefits $57,900 $0 $0
5073 Pers Retire EE $415 $700 $4,316
5075 PERS $1,237 $2,000 $4,882
5078 PERS SURVIVOR $0 $200 $86
5079 DEFERRED COMP $4,400 $16,000 $14,400
5080 FICA/Medicare $3,903 $1,500 $873
5085 CA SUI/ETT $767 $1,200 $888
5095 Train/Meetings $8,292 $15,000 $15,450
5110 Council Meeting $12,000 $1,000 $1,236
5120 Elections $1,217 $0 $3,450
5137 CalPERS Unfunded Accrue $3,158 $16,200 $0
5925 Liability Ins. $717 $1,183 $3,446
5945 Office Phones $3,841 $2,400 $2,472
5965 Work. Comp. Ins $1,263 $4,079 $7,627
5970 Equip. Purchase $2,902 $3,000 $3,090
5985 Exercise Prgm $1,290 $9,000 $7,800
DEPARTMENT TOTAL $116,563 $105,188 $127,880
83

Page 15 ends

City Attorney
Department Picture
Description
The City Attorney of Sand City represents the City in all municipal affairs. The role of the City Attorney is to provide legal services to the City Council, committees, and staff. This includes offering advice that is reliable, timely, and useful. The City Attorney also defends the City in litigation and administrative actions; drafts and/or reviews ordinances, resolutions, contracts, permits and other legal documents and agenda items; prepares formal and informal opinions; and represents the City before various State and Federal agencies when needed. The City Attorney also prosecutes criminal infractions and misdemeanors involving violations of the Sand City Municipal Code and advises on meeting procedures, including the Brown Act.
2023-24 Accomplishments
• Employment legal advice, including contract for Police Chief. • Implementation of the South of Tioga Development project, including agreements transferring development obligations to new hotel owners, supporting utility services, contracting and negotiations relating to road improvements, and implementation of environmental mitigations.
• Drafted ordinance to expand options for and efficiency of code enforcement. • Drafting of resolutions and ordinances
• Drafted City Council donations policy to improve opportunities to support local nonprofits. • Litigation and violation notices from state agencies, including Successor Agency litigation and assisting in management of flood claims. • Negotiations and drafting of agreement for potential Art Park and housing project. • Assisted in securing grant funding for cannabis regulation. • Support, analysis and drafting of update of compensation of Mayor and Council members.
2024-2025 Initiatives
• Supporting the construction of the South of Tioga hotel and development. 84 City of Sand City
2024-25 Budget

Page 16 ends

• Continuing to provide litigation representation of the City to protect City interests and resources.
• Employment law update and compliance issues.
• Assisting staff on bike trail project.
• Supporting collaborative options to expand bluff protections and restoration. • Revise camping ordinance to comply with legal decisions. • Assist staff in implementation of new code enforcement ordinance.

City Attorney Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5072 Health Retirees $4,812 $5,100 $0
5545 Contract Services $168,002 $252,000 $375,000
DEPARTMENT TOTAL $172,814 $257,100 $375,000
85

Page 17 ends

Administration
Department Picture
Description
The Administration Department consists of the City Manager, City Clerk, and half of the cost of the HR/Risk Manager, and Administrative Assistant positions.

The City Manager is responsible for the efficient administration of the City government.

The City Manager provides strategic leadership and guidance to City operations and services through several areas:

The City Council sets policy direction for the City and confers that direction through legislative actions. To support the Council’s work, the City Manager prepares staff reports in collaboration with City departments, including analysis and recommended City Council action, and implements City Council actions. Working with other City Managers and other agencies, the City Manager also tackles cross-jurisdictional issues that affect the region.

Each year, the City takes on special projects that, due to their scale and scope, require extensive interdepartmental coordination, community outreach, and engagement with neighboring communities and public agencies. The City Manager manages these special projects to ensure efficient and effective coordination, cost-savings, implementation, and achievement of the City’s goals. Some projects are planned and identified as City Council priorities in one year or another and others arise as the City responds to unfolding events and community concerns.

The City Manager provides strategic leadership and guidance to the City’s Department Heads to ensure the provision of high-quality, cost-effective and focused services to the community. The City Manager ensures City operations demonstrate transparency and fiduciary responsibility to the public. In this capacity, the City Manager also provides timely, accurate, and results-oriented operational reports. Through the development of the budget, the City Manager ensures resources are allocated to the City Council’s policies and priorities.

The City Manager also supervises and maintains a highly qualified, engaged, and effective workforce to successfully achieve the City’s goals and objectives. Towards that 86 City of Sand City
2024-25 Budget

Page 18 ends

end, the City Manager cultivates a strong service culture and provides ongoing, informative communications with City employees regarding key objectives, challenges, and accomplishments.

The City Manager maintains collaborative relationships with businesses and residents to facilitate desired economic activity. In addition to addressing issues with individual businesses, local and regional associations serve as leaders and partners in this endeavor.

The City Manager also has the ultimate responsibility for the preparation of the City’s budget and supervises the day-to-day operations of all City departments and supervises all department heads. The City Manager also develops fiscal plans, communicates with the press, and maintains a unique understanding of how all City operations, goals and initiatives function together. The City Manager serves as the City Treasurer/ Finance Officer and Executive Director of the former Redevelopment Agency. The Manager represents the City with public agencies, private organizations, boards, commissions, City residents, businesses, and property owners.
2023-24 Accomplishments
Most of the accomplishments listed here are the result of a team effort by the entire Sand City team, or individual departments, under the overall guidance and leadership provided by the City Manager:
• We completed two main CIP projects – the Calabrese Park upgrade and the West Bay Platform reconstruction.
• Reorganized City Hall staffing to maximize efficiency and hired four new department heads.
• Continued to deliver services in an efficient and effective manner. • We managed to have 16% of the City’s streets resurfaced or newly constructed in the last year.
• Pursued and obtained several large grants for capital improvement projects and other City needs.
• Provided guidance, direction, and oversight to the team to initiate the TAMC right of way bike trail project the Coastal trail project and an upgrade to the City’s website.
• Initiated a long-term vision plan for the Art Park to increase affordable housing. • This year the team finalized the City’s Parking plan and began planning and implementation.
• We improved safety by installing ALPR readers throughout the City. 87

Page 19 ends

• We took a new consolidated Fee Schedule to Council for adoption to improve clarity of cost for services to the Community.
• We completed several technological improvements at City Hall and in the Police Department.
• We increased organizational effectiveness by digitizing paper-based filing systems, purchasing of accounting software and initiating business license online processing.
• We created a donations policy to govern use of public funds for donations to community serving nonprofits.
• Improved the transparency of the City’s budget with a new presentation. • Navigated the start of construction of a major private development project. • We received a letter of substantial compliance on the 6th Cycle Housing Element. 2024-25 Priorities:
• Improve Code Enforcement City wide.
• Bring a five-year CIP to Council for its consideration and approval. • Finish plans for the coastal trail; apply for implementation grants. • Finish planning of the TAMC right of way bike trail.
• Finish redesign of website with economic development pages. • Explore grant opportunities for Council’s CIP projects. • Begin to implement programs in Housing Element.
• Begin general plan update.
• Develop and implement façade improvement program.
• Restore and manage habitat in Edgewater.
• Begin implementing the City’s parking plan.

The City Clerk’s office organizes and oversees clerk related activities associated with the City Council and Successor Agency of the former Redevelopment Agency and receives and files all petitions, appeals, and lawsuits. The City Clerk’s department serves as the City representative point of contact, the custodian of the City Seal, and ensures that internal requests and external public records requests for information of City records are appropriately handled. The City Clerk serves as the Elections Official and oversees the receipt of Fair Political Practices regulations, statements of economic interest, campaign disclosure statements, and other legal documents.

The HR/Risk Manager oversees employee relations, secures regulatory compliance in accordance with FLSA and the DOL as well as safety compliance in accordance with 88 City of Sand City
2024-25 Budget

Page 20 ends

CalOSHA. The HR/Risk Manager also administers employee-related services such as pay, benefits and applicable training to City Employees. 2023-24 Accomplishments of City Clerk & HR/Risk Manager • Compiled thirty-three (33) agenda packets for a total of sixty-four (64) resolutions and five (5) ordinances.
• Performed annual Fair Political Practices Commission Form 700 filings for eightytwo (82) Form 700 filers (includes City staff, elected officials, etc.). • Coordinated City Hall cleanup/organization.
• Continued destruction of obsolete City records per the record retention policy. • Implemented the Workplace Violence Prevention Plan.
2024-25 Initiatives of City Clerk & HR/Risk Manager
• Update the City’s policies and procedures including the Personnel Manual, City’s Illness & Injury Prevention Plan, Conflict of interest code, and travel policies. • Implementation of Schedule of Benefits for Non POA staff members • Transition of Payroll from ADP to a new in-house system, ERP Pro • Facilitate the 2024 Municipal Election for Mayor and two (2) Councilmembers. • Facilitate the 2024 Conflict of Interest Code Biennial Update. • Organize the storage unit and continue with the disposal of non-essential records. • Participate in the Re-Design of City website.

Budget Summary
Main notable expenditures include:
• A reduction to Contract Services line item due to no longer requiring contracted assistance as new HR/Risk Manager was hired in FY 23/24. • Increase in Salary line item as well as associated Benefit line items to account for a full year of Salary & Benefits for HR/Risk Manager.
89

Page 21 ends

Administration Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5019 Temp Staffing $49,422 $0 $0
5020 Contract Svcs. $14,725 $93,275 $51,000
5025 Dues/Subscrptn $5,310 $4,200 $7,004
5030 Auto Allowance $3,600 $3,600 $3,600
5035 Service Cont. $9,232 $8,000 $13,390
5040 Salaries $319,023 $407,000 $446,776
5042 PAID TIME OFF $32,143 $13,200 $10,300
5060 L.T.D. $2,666 $2,200 $3,791
5065 Dental $3,108 $7,000 $6,924
5066 VISION COVERAGE $474 $1,100 $1,043
5067 Life Ins. $480 $800 $540
5070 Health Benefits $33,199 $62,700 $68,522
5072 HEALTH-RETIREES $25,788 $45,400 $0
5073 PERS Retiree EE $6,537 $0 $0
5075 PERS $25,084 $36,000 $43,139
5078 PERS SURVIVOR $0 $200 $89
5079 DEFERRED COMP $1,800 $10,800 $10,800
5080 FICA/Medicare $5,152 $5,300 $6,733
5085 CA SUI/ETT $271 $600 $468
5095 Train/Meetings $7,422 $17,000 $17,510
5137 CalPERS Unfunded Accru $70,752 $600 $0
5140 Records Retention $250 $0 $0
5210 ADP/SHREDDING $4,214 $5,600 $2,575
5425 Technical Spprt $5,538 $6,300 $0
5740 Employment Screening $199 $0 $0
5770 Computer Equip $0 $18,000 $20,600
5925 Liability Ins. $13,630 $23,352 $29,892
5945 Office Phones $3,383 $1,300 $1,545
5965 Work. Comp. Ins $32,829 $80,512 $66,169
5970 Equip. Purchase $2,563 $1,000 $1,000
5985 Exercise Prgm $780 $1,200 $3,000
DEPARTMENT TOTAL $679,574 $856,239 $816,410
90 City of Sand City
2024-25 Budget

Page 22 ends

Finance
Department picture
Description
The Finance Department consists of the Finance Manager, and one half of the time of the HR/Risk Manager and Administrative Assistant positions.

The goals of the Finance Department are to provide needed financial information to allow the City Council, City Manager and City Staff to make informed decisions for the City, to ensure the safety and security of the City’s assets, to develop and follow sound financial strategies for decisions, and to actively support the business community.

The Finance Department is responsible for the overall management and supervision of the accounting department. This department is also responsible for the purchasing functions which include the processing of all City purchase orders and development and maintenance of purchasing policies and procedures. In addition, the Budget function falls under the Finance Department to include coordinating the budget process, budget control and compliance, and developing budget reports and procedures. The Finance Manager is often requested to produce statistical information, analyze past operations, and estimate the cost of future endeavors.

The Finance Department includes all functions related to accounting including expenditures, revenues, and other transactions in accordance with Generally Accepted Accounting Principles in a timely and accurate manner. Staff also coordinate and ensure that all payroll and payroll taxes are paid and accurately follow up with all employee benefit plans.

In addition, the Finance Department also serves as the Revenue Department. The Administrative Assistant is responsible for the receipt and accounting of all monies received by the City. This department oversees bank reconciliation and the investment of excess funds in an equitable and safe way.

The department works with HDL on Business License Administration. HDL maintains individual business information, audits payments, and annually coordinates the license renewal process.
91

Page 23 ends

Coordination of all accounting, purchasing, budgeting, payroll, business licensing, and financial reporting, the Finance Manager serves as the audit liaison for all financial, compliance, and grant related audits.
2023-24 Accomplishments
• Implementation of a business license administration portal to provide the business community with convenient business license applications and renewal processes and online payments.
• Initiated a contract for the purchase and implementation of a new Enterprise Resources Planning software system.
• Received an unmodified (clean) independent auditor’s report. • Worked with consultant to prepare an actuarial study and report. • Assisted in the development of a City Master Fee Schedule. • Reinstated Monthly Financial Reports.
• Invested City funds to increase interest income.
• Updated and improved procedures for cash handling and cash receipts. • Production and distribution of FY 24/25 Budget Book.
2024-25 Initiatives
• Implement Purchasing Policy and Procedures Manual.
• Implement ERP Pro Financial Software.
• Move payroll from contracted services to ERP Pro Financial Software which will be managed by staff rather than a consultant.
• Implement paperless payroll check stubs.
• Implement Travel Policy & Procedures.
• Update Investment policy.

Page 24 ends

Finance Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5020 Contract Svcs. $148,726 $148,800 $53,000
5023 Sales/Transaction Tax Fees $11,078 $0 $0
5025 Dues/Subscrptn $540 $300 $515
5040 Salaries $86,680 $197,400 $210,873
5042 Paid Time Off $41,743 $0 $0
5060 L.T.D. $837 $900 $2,446
5065 Dental $419 $2,400 $4,422
5066 VISION COVERAGE $79 $400 $692
5067 Life Ins. $167 $500 $432
5070 Health Benefits $10,023 $40,900 $39,124
5072 HEALTH-RETIREES $0 $0 $0
5073 PERS Retiree EE $6,856 $0 $0
5075 PERS $12,548 $23,200 $24,740
5078 PERS SURVIVOR $0 $100 $59
5079 DEFERRED COMP $700 $5,200 $7,200
5080 FICA/Medicare $1,867 $2,700 $2,841
5085 CA SUI/ETT $112 $500 $429
5095 Train/Meetings $0 $6,000 $8,240
5137 CalPERS Unfunded Accrued Liabilit $72,636 $300 $0
5405 Property Tax Fees $991 $0 $0
5410 Audit $65,500 $61,000 $53,500
5415 Mngt. Services $4,056 $0 $0
5425 Technical Spprt $5,338 $6,500 $0
5440 HDL/BL/PROP/SAL $24,108 $35,000 $36,050
5770 Computer Equipment $0 $0 $2,575
5925 Liability Ins. $3,587 $7,096 $14,109
5965 Work. Comp. Ins $6,313 $24,464 $31,231
5970 Equip. Purchase $4,271 $5,000 $2,575
5985 Exercise Prgm $0 $3,310 $3,600
5986 Software App $0 $25,000 $48,142
DEPARTMENT TOTAL $509,175 $596,970 $546,795
93

Page 25 ends

Non-Departmental
Description
Non-Departmental costs are expenses spread across the entire organization for items that benefit all Departments. Non-Departmental items include public agency memberships with the Association of Monterey Bay Governments, the League of California Cities, the Local Agency Formation Commission (LAFCO), the Monterey County Mayors Association, the Monterey Regional Waste Management District, Monterey One Water, the Transportation Agency of Monterey County, the Monterey Peninsula Regional Water Authority, Monterey Salinas Transit, and the Seaside Groundwater Basin Watermaster; voluntary memberships with Community Human Services, the Monterey County Convention and Visitors Bureau, the Monterey County Business Council, and the Monterey Peninsula Chamber of Commerce; record management and agenda management software; asset management software; Municipal Code publishing; Art Committee funding; IT support; donations and contributions advertising in the Monterey County Weekly; equipment maintenance; office supplies; CalPERS Unfunded Accrued Liability and City Hall utilities.

Information Technology (IT) provides innovative and secure technology solutions that support City departments in delivering quality services to the community. The purpose of IT is to provide a broad range of high-quality technology solutions to employees, departments, Councilmembers, and the community and to continuously support and improve essential infrastructure for enabling daily operations of the City. This service is contracted with Monterey Bay Technologies.
94 City of Sand City
2024-25 Budget

Page 26 ends

Non-Departmental Revenues
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Revenue Amended Budget Proposed Budget 4005 Curr Prop Taxes $93,187 $81,150 $76,450
4006 RPTTF Residual $145,642 $230,000 $230,000
4008 SA Admin Fees Reimbursemen $127,330 $0 $0
4010 Prior Year Prop $713 $1,200 $1,000
4012 Vehicle License Fee $41,994 $45,626 $43,512
4013 MBASIA Claims $0 $1,764 $0
4015 SB 813 $20,770 $20,000 $14,000
4020 Prop Tax Transf $1,409 $4,700 $2,500
4025 Users Tax $183,267 $200,000 $180,000
4030 Sales/Use Tax $3,622,075 $3,529,000 $3,643,909
4032 Transaction tax $3,495,665 $4,446,000 $4,631,000
4033 State CASP Fee $1,475 $2,500 $1,600
4034 TOT Tax $124,723 $126,000 $120,000
4035 Cable Franchise $6,784 $7,700 $5,000
4040 Refuse Franchise $57,467 $63,000 $60,000
4041 AB939/SB1383 $12,584 $39,700 $12,500
4042 CalAm Franchise Fee $0 $0 $10,000
4045 PG & E Gas $4,238 $3,200 $4,500
4050 PG & E Electric $36,398 $31,500 $36,500
4055 Bus. License $655,053 $708,000 $708,000
4060 B. L. Late Fee $223 $500 $500
4305 Gas Tax Funds $1,188 $0 $0
4340 HOPTR Tax $346 $500 $500
4350 Seaside Sanitation $10,892 $11,500 $12,000
4410 Int. General $941 $1,000 $1,000
4411 OPEB Interest $522 $600 $600
4413 Housing Interes $14,571 $14,500 $14,000
4414 Int GASB 87 $5,676 $0 $0
4420 Int. LAIF $249,666 $300,000 $200,000
4425 LAIF Gain/Loss GASB 31 FMV -$23,594 $0 $0
4450 TVI CD Interest $20,107 $20,200 $20,000
4500 West End Revenue $37,521 $35,052 $49,500
4502 Mural Festival $2,222 $2,300 $2,200
4504 Art Park Events $855 $1,500 $1,000
4506 MST SURF Proj $0 $0 $5,000
4530 S of Tioga Reim $53,481 $50,000 $50,000
4531 S of Tioga PC $4,563 $20,000 $0
4532 S of Tioga BP $6,405 $30,000 $0
4533 CAL AM Reimb $2,255 $2,100 $0
4550 Copies Fee $0 $50 $50
4710 Mitigation $1,361 $1,400 $1,500
4729 MBASIA/Fitness $7,500 $7,500 $7,500
4730 Other $17,659 $1,200 $2,000
4732 Reimbursements $586 $1,000 $0
4736 US Bank CalCard $661 $620 $1,000
4740 Rental Income $17,293 $19,000 $19,000
4833 CAL AM Lease $51,892 $7,000 $7,000
DEPARTMENT TOTAL $9,115,566 $10,068,562 $10,174,821
95

Page 27 ends

Budget Summary
Main notable expenditures include:
• Increase to Health Benefits Admin & Retirees due to moving cost from Department Operating budgets.
• Increase to CalPERS Unfunded Accrued Liability due to moving cost from Department Operating budgets.
• An increase to the Advertising line item to account for actual costs associated with noticing requirements.

Non-Departmental Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5000 MUNI CODE $2,557 $3,100 $3,100
5001 MEMBERSHIPS PA $15,392 $14,000 $10,000
5002 MEMBERSHIPS VOL $6,229 $12,000 $10,000
5005 ARTS COUNCIL $2,800 $5,000 $10,000
5009 COVID General $1,742 $0 $0
5025 Dues/Subscrptn $182 $700 $750
5035 Service Cont. $0 $0 $14,420
5070 Health Benefits Admin Fee $953 $1,300 $824
5072 Health Benefits Admin & Retirees $0 $0 $182,949
5081 GASB 68 $2,100 $2,200 $2,266
5095 Trainings/Meetings $0 $0 $1,030
5137 CalPERS Unfunded Accrued Liability $0 $0 $489,410
5202 EAP PROGRAM $1,189 $1,615 $1,700
5425 Technical Spprt $11,042 $14,400 $20,000
5720 Auto Maint. $6,733 $2,000 $6,180
5770 Computer Equip/Software/Online App $0 $0 $1,030
5905 City Events $300 $0 $0
5910 Donations $4,386 $6,500 $6,695
5920 ADVERTISING $6,000 $20,600
5930 Misc. Expense $2,665 $3,000 $2,060
5935 Equip. Maint. $8,917 $8,400 $1,030
5940 Office Supplies $23,586 $25,000 $25,750
5945 Office Phones $1,144 $1,500 $1,545
5950 Physical/Vaccin $0 $0 $0
5955 Official Bonds $1,216 $1,300 $1,339
5960 Utilities $27,391 $25,000 $25,750
5970 Equip. Purchase $1,174 $2,100 $6,180
5980 Bank Charges $258 $250 $500
5998 Internet/Web $1,599 $2,500 $3,090
DEPARTMENT TOTAL $123,554 $137,865 $848,198
96 City of Sand City
2024-25 Budget

Page 28 ends

Community Development
Description
The Sand City Community Development Department consists of the Planning and Building Departments.

The Planning Department is primarily responsible for land use and development entitlements, and zoning code interpretation and enforcement; in addition to long-term planning that includes updates to the General Plan, Housing Element, and Zoning Ordinance (Municipal Code Title 18). The Planning Department also administers the City’s Design Review Committee (DRC) in terms of agendas, reports, action minutes, and presentations.

The Building Department is responsible for conducting construction plan review, building/fire code enforcement, and site inspections of all developments to ensure compliance with Building, Fire, and other relevant building codes (Cal-Green, Plumbing, Electrical, etc.).
2023-24 Accomplishments
The City’s planning department provides the following general services to the City and the public:
• General Planning staff support for the City and public. • Provide office hours at City Hall to support the Sand City Team by providing Planning Staff technical expertise and advice to the public. • Provided planning input to the City Manager in setting City Council Agendas. • Prepared notices for publication on various public hearing items. • Drafted planning resolutions, staff reports, findings and evidence, conditions of approval and associated materials for City Council consideration. • Processed land use planning applications; received and maintained schedules. • Assisted the City with mapping and website requests.
• Prepare or update City Planning documents (General Plan, Zoning Code, Parking Plan, Vibrancy Plan, etc.).
• Prepare CEQA (environmental) documentation, as necessary. • Prepare technical reports (biological, archaeological, air quality, etc), as necessary.
• Prepare and apply for City grant funding.

The City contracts with EMC Planning Group (EMC) for Planning Services. The level of service and planning bandwidth has increased greatly since the City moved from having just one City Planner to utilizing the wide array of services provided by EMC Planning Group’s team. In addition to the general planning services set forth above, in fiscal year 23-24 EMC has accomplished a number of special projects including:
97

Page 29 ends

• Coordinated the initial conceptual design of the TAMC right of way Bike Trail to connect Playa Avenue to Contra Costa and beyond through Seaside and to Monterey; presented this design to TAMC; applied for and obtained grants to plan and partially implement this project.
• Coordinated the initial conceptual design of the Coastal trail improving access to the City’s coastline; applied for and obtained Coastal Conservancy grant for planning the trail.
• Worked with all departments to develop and obtain Council approval of an updated fee schedule to increase City’s’ ability to recoup its costs associated with City services.
• Developed an initial vision for Council to consider the short term and the long-term use of the City’s Art Park.
• Studied and advised City regarding MST’s SURF! Busway study impacts to Sand City vehicle, pedestrian, and bicycle circulation and the City’s shopping centers and biological resources, processing MST’s CDP application. • Prepared and administered a number of grant applications. • Worked with City Manager on Cal Am seawall removal and habitat mitigation; created a plan to remove the seawall and debris on the beach north of Tioga Avenue.
• Continued planning support to the West End Stormwater Project. • West Bay Street observation platform biological impacts, scheduling, and monitoring.
• East Dunes residential project, habitat preservation, and Incidental Take Permit; (working towards securing an Incidental Take Permit to create a developable residential area of the East Dunes in exchange for a habitat conservation area). • Planning of Edge Water Habitat Restoration.
• Ensuring the South of Tioga Park Completion.
• Reviewing final plans for Calabrese Park Completion.
• Drafting the City’s Housing Element and working with Council and HCD towards certification.
• Working with consultant to prepare Objective Design Standards for the City. • Finalized the City’s parking plan.
• Prepared quarterly newsletters for residents and business in Sand City. • Assisted City with design concepts for Tioga Avenue City Monument Sign Design and police car redesign.
• Organized the City’s planning files from the former system to a better system that allows current and future planners to locate files.
• Prepared procedures for the processing of permits to ensure all required steps are taken and the process is streamlined.
98 City of Sand City
2024-25 Budget

Page 30 ends

2024-25 Initiatives
Several initiatives are in the pipeline for fiscal year 24-25, including completing initiatives that were started in fiscal year 23-24:
• Continue to apply for grant funding for construction of the City’s TAMC right of way bike path (this will continue into the next fiscal year). • Prepare plans for the City’s coastal trail and apply for implementation grants (this will continue into the next fiscal year).
• Redesigning the City’s website -- creating economic development pages. • Developing a Cannabis Retail Licensing Program.
• Working with design firm to develop feasibility study and concept rendering for the City’s art park.
• Continue working with the City Engineer and design team to complete construction drawings and implement construction of street, storm water management, landscaping, and parking improvements along Catalina and Contra Costa Streets. • Completed Housing Element, per State law, and will now continue with the implementation of the Housing Element.
• Begin General Plan update to include CEQA review/documentation, including zoning code update. This will be a multi-year project.
• Work with the City Manager and Police Chief in developing an effective code enforcement program staffed with one (1) part-time code enforcement officer.

Building Department
The Building/Code Compliance Department has been active in FY 2023-2024. A few highlights of this Fiscal Year’s activity showcase the increased development happening in the City of Sand City. In FY 2023-24, there were approximately twelve new building permits issued including permits for a new Marriott Hotel and adjacent parking lot.

There are twenty (20) active permits under construction. FY 2023-2024 also saw the completion of the phase one improvements for South of Tioga, the Ohlone/Esselen park and the Calabrese Park project. The short-term rental program is entering year two with re-inspections on properties. Lastly, Code Compliance has been actively working to gain voluntary compliance through communications prior to starting the administrative process passed by City Council. The City contracts with 4LEAF for building services.

Budget Summary
Main notable expenditures include:
• An increase in Façade Improvement line item to design and implement the program funded by ARPA funding received in a prior fiscal year. 99

Page 31 ends

• A slight increase to Contract Service line item for EMC contract services for all general services provided to the City.

Planning Revenues
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Revenue Amended Budget Proposed Budget 4116 STR Application $5,370 $5,600 $2,875
4120 Coastal Permit $500 $1,600 $1,575
4125 CUP $1,754 $5,100 $2,800
4126 Temporary CUP $200 $500 $525
4145 Site Permits $0 $500 $350
4155 Design Review $150 $500 $700
4156 Sign Permit $0 $100 $100
4219 Parking Permits $400 $2,400 $3,000
DEPARTMENT TOTAL $8,374 $16,300 $11,925
100
City of Sand City
2024-25 Budget

Page 32 ends

Planning Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5020 Contract Svcs. $159,742 $427,600 $450,000
5040 Salaries $77,552 $0 $0
5042 Paid Time Off $21,010 $0 $0
5055 Overtime $210 $0 $0
5060 L.T.D. $651 $0 $0
5065 Dental $419 $0 $0
5066 Vision Coverage $79 $0 $0
5067 Life Ins $167 $0 $0
5070 Health Benefits $8,441 $0 $0
5072 Health Retirees $14,748 $21,700 $0
5073 PERs Retire EE $6,701 $0 $0
5075 PERS $12,773 $0 $0
5079 Deferred Comp $700 $0 $0
5080 FICA/Medicare $1,421 $0 $0
5085 CA SUI/ETT $112 $0 $0
5095 Train/Meetings $0 $0 $0
5137 GASB 68 Liability $75,794 $0 $0
5370 Planning/Other $95 $300 $0
5423 IWORQ $0 $3,000 $1,700
5425 Technical Spprt $567 $1,000 $0
5920 Advertising $7,444 $0 $0
5925 Liability Ins. $3,587 $0 $0
5945 Office Phones $950 $900 $927
5965 Work. Comp. Ins $6,313 $0 $0
5970 Equip Purchase $0 $0 $0
Façade Program $0 $0 $47,246
DEPARTMENT TOTAL $399,475 $454,500 $499,873
101

Page 33 ends

Budget Summary (Building)
• An increase overall to account for the amount of the approved Contract of $100,000 with 4Leaf for Building services due to combining all building services for building, previously shown under various accounts including special projects.

Building Revenues
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Revenue Amended Budget Proposed Budget 4115 Bldg. Permit $16,322 $17,100 $13,500
4164 STR Inspection $4,200 $4,200 $3,150
4165 Plan Check Fees $6,495 $10,500 $10,500
DEPARTMENT TOTAL $27,017 $31,800 $27,150
Building Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5020 Contract Svcs. $360 $5,300 $100,000
5318 STR INSPECTION $2,160 $4,500 $0
5319 Building Insp $32,655 $31,500 $0
5320 Plan Check $1,977 $10,500 $0
5423 IWORQ $2,800 $3,000 $4,790
DEPARTMENT TOTAL $39,951 $54,800 $104,790
102
City of Sand City
2024-25 Budget

Page 34 ends

Public Works
Description
The Public Works Department is responsible for the maintenance of City facilities and buildings, public streets and the storm drain system, public spaces, parks, bike trails and walking paths, as well as City-wide planning efforts to realize the City’s goals, policies, and initiatives.

Sand City Public Works performs a wide variety of tasks from planting and trimming City trees; maintaining the two City Parks and the Community garden, the recreation trail, City buildings, vehicles, equipment, and grounds to providing a safe, effective, and longlasting road system; repairing sidewalks, streets, and signs; ensuring clean streets, pothole repair; sign and pavement marking maintenance; street sweeping, including sand removal, repairs on vehicles and equipment; graffiti abatement; litter control; hanging and removing City banners; installing no parking signs as needed; maintaining storm water drainage; and doing so in an efficient, cost-effective manner without detrimental effects on the environment.

Public Works functions include administrative duties (quarterly storm water reports; Council staff reports; Public Works monthly report; safety meetings; well usage reporting; overseeing the Hope Crew); environmental duties; implementation of the State mandated storm water program; tracking of the City’s use of pesticides, herbicides, and fertilizers; as well as sweeper spoils and reporting any illicit discharges.

In addition, the Public Works department supports the City’s special events such as the City Barbecue, Tree Lighting, West End event, Mural Fest and the monthly 831 Night Market.
2023-24 Accomplishments
Public Works:
103

Page 35 ends

• Public Works hired a new employee to join the Sand City team. • Staff installed a new camera system with computer workstation access at City Hall.
• Public Works staff took over the SB-1383/CalRecycle mandates and related reporting.
• Staff cleaned 15 stormwater drain catch basins of debris. • Public Works staff filled potholes in the City streets and bike path, throughout Sand City.
• PWs staff repainted all the memorial benches and picnic table at the upper ridge lookout area.
• Public Works staff inspected and improved the storage/Conex containers across from City Hall and the PWs yard, along with the PWs building. • Staff completed and submitted four (4) storm water quarterly reports to the City engineer.
• Staff replaced 29 HID bulbs within the light fixtures along Sand Dunes Drive. • Public Works oversaw the installation of Flock Traffic Cameras, installed at various locations throughout Sand City.
• Staff reinforced and added wood pickets to the lower retaining wall in Calabrese Park.
• Installed new gate rollers for the art park gates.
• A weed abatement and clean-up of the Community Garden • Assisted in the reconstruction of the Police Department lobby. 2024-25 Initiatives
• Continue with maintenance and improvements to the Cities infrastructure with minimal budgetary impact.
• Implement the new City park and street landscape into the Public Works maintenance program.
• Install new fencing and gate to the City’s community garden and habitat. • Landscaping and improvements to Calabrese Park.
• Continue with repainting of red/blue curbs to include West Bay and Tioga avenues.

Budget Summary
Main notable expenditures include:
• A decrease in Contract Services as a separate Engineering budget section was created for FY 2024-2025 so that specific Engineering costs and fees could be easily identified.
104
City of Sand City
2024-25 Budget

Page 36 ends

• A decrease in CalPERS Unfunded Accrual Liability as this cost was moved to Non-Departmental expenditures.
• An increase to Street Maintenance in order to comply with AB413 which requires additional street maintenance such as patching, pothole repairs and striping.

Public Works Revenues
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Revenue Amended Budget Proposed Budget 4150 Bldg Dev. Fees $0 $500 $500
4160 Engineering Fees $13,054 $31,500 $18,000
4205 CA Code Fines $312 $700 $750
4305 Gas Tax Funds $14,753 $15,338 $15,660
4306 RMRA-Road Maint $6,760 $9,002 $9,623
DEPARTMENT TOTAL $34,879 $57,040 $44,533
105

Page 37 ends

Public Works Expenditures
Account Account Description Actual Expenses Amended Budget Proposed Budget 5019 TEMP STAFFING $1,517 $1,500 $0
5020 Contract Svcs. $139,440 $370,000 $5,000
5025 Dues/Subscrptn $573 $1,100 $1,133
5027 PERMITS/LICENSE $3,535 $13,644 $10,300
5028 Pest control $910 $800 $824
5040 Salaries $175,395 $245,200 $271,870
5042 PAID TIME OFF $1,105 $1,200 $2,575
5055 Overtime $4,944 $6,000 $6,180
5060 L.T.D. $2,271 $2,100 $2,741
5065 Dental $5,237 $5,300 $5,673
5066 VISION COVERAGE $834 $900 $795
5067 Life Ins. $719 $800 $648
5070 Health Benefits $47,480 $55,800 $52,164
5073 Pers Retire EE $10,972 $0 $11,772
5075 PERS $28,728 $46,100 $35,002
5078 PERS SURVIVOR $0 $200 $89
5079 DEFERRED COMP $2,500 $12,600 $10,800
5080 FICA/Medicare $3,411 $5,600 $5,063
5085 CA SUI/ETT $300 $400 $38,694
5095 Train/Meetings $0 $1,600 $5,150
5137 CalPERS Unfunded Accrue $95,528 $172,022 $0
5423 IWORQ $0 $2,100 $0
5425 Technical Spprt $51 $0 $0
5715 Auto Fuel $0 $0 $13,390
5720 Auto Maint. $12,097 $15,000 $15,450
5770 Computer Equipment $0 $0 $1,030
5795 Uniform Allow. $3,062 $3,000 $3,090
5820 STORM WATER MAT $0 $60,000 $20,600
5845 HOPE SERVICES $48,458 $72,000 $72,000
5855 St. Lighting $13,326 $11,000 $14,420
5860 St. Maintenance $4,241 $15,000 $66,950
5861 ADOPT A HWY $3,850 $4,200 $4,542
5865 Flags/Banners $4,551 $5,200 $5,624
5884 SECURITY $1,327 $1,500 $0
5885 SUPPLIES $3,647 $5,000 $5,150
5888 EQUIPMENT RENTA $385 $1,500 $1,545
5889 URBAN RUNOFF $11,910 $12,500 $0
5898 STREET SIGNS $751 $3,500 $4,635
5925 Liability Ins. $7,174 $15,917 $18,190
5935 Equip. Maint. $0 $1,000 $5,150
5936 STORAGE $4,354 $3,800 $0
5945 Office Phones $1,935 $1,500 $1,545
5961 REFUSE/TRASH $5,219 $6,300 $9,270
5965 Work. Comp. Ins $86,282 $54,878 $40,265
5970 Equip. Purchase $6,594 $7,000 $7,210
5985 Exercise Prgm $540 $2,900 $3,000
5998 Internet/Web $1,490 $1,200 $1,236
DEPARTMENT TOTAL $746,643 $1,248,861 $780,766
106
City of Sand City
2024-25 Budget

Page 38 ends

Engineering
The City Engineer, under the direction of the City Manager, and in collaboration with other City departments, coordinates, supervises and reviews the design and construction of City infrastructure and public facilities. The Engineering Department issues Invitations to Bids and Requests for Proposals, develops, and negotiates contracts, makes recommendations for award, provides inspection of construction projects, administers the City’s encroachment permit program, and provides engineering support to other City Departments for transportation-related projects and activities. The Engineering Department reviews all proposed development projects to ensure that City standards, local, state, and federal requirements related to public works are met.

The Engineering Department manages the City’s National Pollutant Discharge Elimination System (NPDES) municipal storm water program, and the City Engineer represents the City on various stormwater and transportation-related regional Committees.

The City contracts with Harris & Associates for City Engineering services. It also has an engineering contract with GHD Associates.

The City’s Land Surveyor reviews all land use maps, lot line adjustments, lot mergers, legal descriptions, and related materials. The City contracts with Polaris Land Surveying, LLC for Land Surveying services.
2023-24 Accomplishments
In Fiscal Year 2023-24, the Engineering Department was involved in the following public and private projects:
• Provided the design and preparation of construction documents for the Calabrese Park Improvement Project.
• Provided the design, preparation of construction documents, and materials testing and inspection services for the West Bay Street Coastal Access Repair Project. • West End South of Tioga Development- provided development review of the project plans for the construction of public improvements and during the construction phase ensured that all right of way improvements were constructed to City standards and requirements.
• Provided development review of the Stormwater Control Plans for the Marriott Dual Brand Hotel and the Esselen-Ohlone Park and coordinated with the City’s building department during the construction phase.
• Provided engineering review of the 65% and 95% project plans for the MontereySalinas Transit (MST) SURF! Bus Rapid Transit (BRT) as well as coordination with 107

Page 39 ends

MST, TAMC, and local stakeholders, and conditions of approval for the Coastal Development Permit.
• Provided project management of the West End Stormwater Improvement Project on Contra Costa Street and Catalina Street and managed the grants awarded for same.
• Worked with Planning to assist with the update of the fee schedule as it pertains to Engineering fees.
• Established an annual encroachment permit with PG&E to cover routine categories of work and ensure 100% cost recovery.
• Updated the City’s Pavement Management Program (PMP) including development of a draft 5-year maintenance program based on available funding. • Provided Engineering and technical support to respond to Public Records Requests.
• Provided conceptual project review and/or development review of a number of smaller projects in the City.

Budget Summary
• Beginning in FY 2024-2025, a separate Engineering budget section was created in order to identify specific costs related to Engineering.

Engineering Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5020 Contract Services $0 $0 $260,000
5936 STORAGE $0 $0 $6,600
DEPARTMENT TOTAL $0 $0 $266,600
108
City of Sand City
2024-25 Budget

Page 40 ends

Public Safety
Department Picture
Description
The Chief of Police manages the Police Department and acts as the Emergency Operations Center coordinator.

The Police Department is responsible for law enforcement and crime prevention within the City. The Mission of the Sand City Police Department is to work in partnership with the community to provide exceptional police services that improve the quality of life for our residents, businesses, and visitors. The Department works in partnerships with Seaside, Marina, and California State University Monterey Bay (CSUMB) to operate and support a Regional Emergency Coordination Center. The Department also maintains regional partnerships to participate in the Peninsula Regional Special Response Unit (SRU) and Peninsula Regional Violence and Narcotics Team (PRVNT).

The Fire Department is primarily responsible for saving lives and protecting property through the prevention and control of fires. Fire service has been provided under a contract with the City of Monterey since 1995. The City’s ambulance service is through the American Medical Response (AMR) service.
2023-24 Accomplishments
• The SCPD went live with the new Flock LPR system in March of this year. With this technology, we are now able to share vehicle data with all our law enforcement partners in Monterey County and beyond, to assist in crime detection as well as follow-up investigations where a vehicle was used to facilitate criminal activity. • The SCPD successfully passed several state audits which included the following:
o California State Commission on Peace Officer Standards and Training (POST) hiring and training audit.
o California State Department of Justice (DOJ) CLETS database and online security audit.
• Both Sergeants attended and successfully completed the state mandated 80-hour POST Supervisory Course.
• The Commander attended and successfully completed the state mandated threeweek 104-hour POST Management Course. 109

Page 41 ends

• Records Coordinator attended and successfully completed training specific to City Clerk duties to assist our City Clerk with her duties as needed. • SCPD in partnership with the American Red Cross and Vitalant Blood Donation services will have completed six community blood drives by the end of the current fiscal year.
• The Police Department lobby remodel, approved by council the year before last, is underway and should be completed before the end of this fiscal year. • The Police Department is also in the review process of the final draft of an update to the Emergency Operations Plan (EOP) and engaged in the first phase of a series of emergency operations training in conjunction with the Emergency Operations Center (EOC) at CSUMB.
2024-25 Initiatives
• Active Bystandership for Law Enforcement (ABLE) training--practical skills to intervene when officers witness harmful or inappropriate behaviors conducted by their peers.
• De-escalation training: Integrating Communications, Assessment, and Tactics (ICAT)--a training program designed to give officers a strong foundation in critical thinking as it relates to responding to crisis related incidents and potential use of force situations.
• The SCPD will continue to utilize, improve, and leverage technology to assist us in providing excellent service to our community in a more efficient and effective manner.
• Update our body worn camera system to include the latest version of BWC and move to cloud storage.
• Implement a new law enforcement software system called LEFTA Systems to improve the process for monitoring training requirements, community complaints, internal investigations, pursuit and use of force policy compliance, and other state mandated reports.

Budget Summary
Main notable expenditures include:
• A decrease in CalPERS Unfunded Accrual Liability as this cost was moved to Non-Departmental expenditures.
• A decrease in Equip/Computer of $38,325 due to a one time server expense in FY 2023-2024, not required in FY 2024-2025.
• A decrease in Equipment Lease due to the end of the Motorola Radio lease. • An increase in Salaries and associated benefits to account for step increases. 110
City of Sand City
2024-25 Budget

Page 42 ends

Public Safety Revenues
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Revenue Amended Budget Proposed Budget 4069 CLEEP Grant $147,973 $186,159 $180,000
4210 City Fines $2,754 $5,200 $4,200
4211 Vehicle release $1,143 $1,000 $1,000
4221 Sand City Parking $8,644 $10,500 $7,500
4325 Motor Vehicle $381 $500 $500
4330 Prop 172 $19,675 $4,000 $500
4335 Post Reimburse -$67 $2,000 $2,000
4515 Dog Licensing $0 $100 $100
4524 Asset Forfeitur $1,393 $1,500 $1,500
4560 Special Police $305 $400 $400
4639 Officer Wellness Grant $15,000 $0 $0
4647 Bullet Proof Vest Grant $1,203 $1,900 $1,900
4730 Other $0 $25 $0
4732 Reimbursements $0 $18 $0
4836 CSA74-GRANT EMS $2,500 $2,500 $2,500
DEPARTMENT TOTAL $200,904 $215,802 $202,100
111

Page 43 ends

Public Safety Police Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5025 Dues/Subscrptn $1,440 $2,000 $2,369
5040 Salaries $1,406,031 $1,544,500 $1,683,226
5041 W/C WAGES $123,225 $0 $0
5042 PAID TIME OFF $268,759 $280,000 $288,400
5043 HOLIDAY $7,744 $15,000 $15,450
5055 Overtime $53,107 $60,000 $70,000
5060 L.T.D. $3,017 $3,200 $5,872
5065 Dental $20,928 $21,900 $23,597
5066 VISION COVERAGE $3,203 $3,400 $3,254
5067 Life Ins. $2,542 $2,700 $2,376
5070 Health Benefits $223,199 $262,900 $264,419
5072 HEALTH-RETIREES $83,003 $95,500 $0
5073 Pers Retire EE $5,949 $6,200 $12,125
5075 PERS $229,949 $367,500 $356,083
5077 PERS REPLACEMNT $0 $7,500 $0
5078 PERS SURVIVOR $0 $700 $326
5079 DEFERRED COMP $12,900 $39,600 $43,200
5080 FICA/Medicare $26,725 $23,400 $32,107
5085 CA SUI/ETT $1,440 $1,700 $1,758
5095 Train/Meetings $9,696 $10,500 $11,330
5096 POST Training $0 $1,000 $0
5137 CalPERS Unfunded Accrued Li $209,447 $195,000 $0
5425 Technical Spprt $21,237 $18,000 $21,630
5710 Animal Reg/Vet $3,150 $4,000 $6,000
5715 Auto Fuel $34,773 $37,000 $24,720
5720 Auto Maint. $15,903 $22,000 $22,660
5721 AUTO DETAILING $3,149 $1,100 $3,100
5723 MOBILE LICENSE $0 $3,300 $0
5725 Comm & CJIS $29,630 $39,400 $42,266
5727 911 CENTER $37,448 $41,450 $46,095
5736 DOJ- VESTS POL $2,406 $1,800 $4,600
5740 Emplmnt Screen $13,753 $343 $3,500
5745 Equipment $1,930 $2,500 $10,300
5746 RANGE FEES/SUP $9,455 $10,000 $10,000
5747 SRU Annual Fee $5,000 $5,000 $5,000
5765 Reserves $17,097 $25,000 $25,750
5770 EQUIP/COMPUTER $7,930 $51,200 $12,875
5785 Police Supplies $4,671 $6,300 $6,489
5794 SPECIAL SKILLS $1,759 $1,300 $1,236
5795 Uniform Allow. $10,085 $10,000 $9,270
5796 PD Education $64,356 $67,600 $82,393
5797 ARRESTS/INVEST $5,882 $5,000 $5,150
5798 COMPUTER/MAINT $15,536 $16,000 $16,480
5884 SECURITY $498 $10,700 $0
5908 LIABILITY-AON $0 $979 $0
5925 Liability Ins. $114,777 $93,953 $111,405
5929 Rental Payments $5,848 $5,600 $5,768
5934 NGEN MAINTENANC $17,064 $19,475 $22,623
5935 Equip. Maint. $9,900 $10,200 $5,150
5945 Office Phones $8,505 $15,000 $12,360
5965 Work. Comp. Ins $287,887 $323,930 $246,609
5985 Exercise Prgm $2,520 $5,900 $6,600
5997 Nighthawk WiFi $2,897 $3,000 $3,090
5998 Internet/Web $2,337 $3,100 $3,193
6123 EOC Expenses $5,000 $5,000 $5,000
6362 CSA74 EMS GRANT EMS $908 $2,500 $0
6618 EQUIP LEASE-PRN $31,180 $32,000 $0
6619 EQUIP LEASE-INT $3,340 $3,500 $0
DEPARTMENT TOTAL $3,490,115 $3,847,330 $3,597,205
112
City of Sand City
2024-25 Budget

Page 44 ends

City Fire Department Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5070 Health Benefits -$826 $0 $0
5750 Fire Contract $328,840 $346,268 $358,387
5785 Police Supplies $40 $0 $0
DEPARTMENT TOTAL $328,054 $346,268 $358,387
113

Page 45 ends

Community Outreach
Department Picture
Description
The City funds several Community Outreach and economic development efforts that provide art, music, and other forms of culture to the community, and the region beyond, at no charge. These endeavors enhance the quality of life for residents and promote the City as an artistic and cultural destination, including:
• the annual West End Celebration
• the annual we. Mural festival
The City also operates a community art park which serves as a performance venue and is rented for a nominal fee by community members and non-profits for events for music, theatrical and other cultural activities.

In addition, the City holds several annual events that are open to the public and provide music, activities, and refreshments to the entire community at no charge such as the City’s Birthday Barbeque and the Holiday Season Tree Lighting Ceremony.

Community Outreach Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5004 West End $83,549 $95,000 $95,000
5025 Dues/Subscrptn $0 $0 $0
5095 Train/Meetings $1,066 $1,000 $1,030
5873 Bike Trail Elec $4,167 $4,200 $0
5905 City Events $32,618 $35,000 $41,200
5920 Advertising $15,080 $15,100 $15,450
5967 Public Survey $3,900 $0 $0
6020 Maint/Repairs $3,756 $6,300 $6,489
6394 Mural Festival $66,250 $80,000 $80,000
6399 Art Park $4,868 $4,200 $4,200
DEPARTMENT TOTAL $215,254 $240,800 $243,369
114
City of Sand City
2024-25 Budget

Page 46 ends

Government Buildings
Department Picture
Description
The Government Buildings section of the budget covers the maintenance, supplies for and security of several properties owned by the City: the City Hall building and the Public Works offices.

Budget Summary
• An increase to Security by $13,355 as it was moved from the Police Expenditure budget.

Government Buildings Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5884 SECURITY $3,431 $5,700 $19,055
5915 Fire/Theft $37,445 $46,670 $50,000
5940 Office Supplies $56 $249 $258
6020 Maint/Repairs $30,973 $18,000 $18,540
DEPARTMENT TOTAL $71,905 $70,619 $87,853
115

Page 47 ends

Parks
Department Picture
Description
The City provides for the beautification and maintenance of several public open spaces including Calabrese Park, the Recreation Trail, the Community Garden and the parklets at the entrances to the City. In addition, in the spring of 2024, one additional park has been accepted by the City – the Esselen-Ohlone Park – as well as parklets and landscaping in a new development in the City. The City’s public works staff maintain the parks.

Budget Summary
• The City has budgeted $15,450 for the addition of a fence in the community garden in Park & Rec Facility Improvements.

Parks Expenditures
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5020 Contract Services $4,800 $5,000 $5,000
5630 Parks Maintenance $183 $0 $2,575
5881 Parks Supplies $2,051 $4,000 $5,150
5935 Equipment Maintenance $0 $1,500 $2,575
5963 Irrigation $41 $10,000 $10,300
5970 Equipment Purchase $701 $4,000 $6,180
6030 Park & Rec Facility Improvemen $0 $15,000 $15,450
DEPARTMENT TOTAL $7,776 $39,500 $47,230
116
City of Sand City
2024-25 Budget

Page 48 ends

Capital Outlay, Capital Improvement & Special Projects
Department Picture
Description
Several Capital improvement and outlay projects are budgeted for including the Catalina – Contra Costa stormwater improvement project. Capital improvements include street repairs, the undergrounding of utilities, and other major projects. Capital outlay describes pieces of equipment, software, and the like that depreciate over time such as vehicles.

Budget Summary
• Two Capital Improvement Projects for Stormwater Improvements are scheduled to be completed in FY 2024-25. These projects have an offsetting revenue source from a State Water Resource Control Board Proposition 1 Grant. • The Police Department has budgeted $35,000 in Capital Outlay for the purchase of new Body Worn Cameras.
• The Art Park will be receiving improvements to the electrical as well as the ADA access at the park. $25,000 has been budgeted for these improvements. • A new Capital Improvement project will be underway in FY 2024-2025 to the planning of a new coastal trail. $423,000 has been budgeted for the expenditures of the planning portion, which will be fully funded by a grant from the Coastal Conservancy.
• To continue to acquire, analyze & develop land to be used for affordable housing, the remaining portion of the PLHA grant of $131,647 is budgeted in FY 2024-25. • The Bike Trail has $0 for FY 2024-2025 as most of the FY 2023-2024 budgeted amount will carry forward to FY 2024-2025. The City expects an amendment to this item once it obtains final award of several grants it has applied for. 117

Page 49 ends

CAPITAL OUTLAY & IMPROVEMENT PROJECTS
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5010 CIP- S.W.I.P Catalina $109,625 $388,336 $652,000
5010 CIP - S.W.I.P Contra Costa $0 $0 $1,639,500
5010 CIP - All Others $107,890 $836,253 $0
5732 FEMA Grant-West Bay $14,533 $325,929 $0
5020 Contract Services - Parking Plan $0 $16,000 $0
5010 Capital Outlay - Police Department $243,153 $210,000 $35,000 5010 CIP - City Hall Imp $756 $18,600 $0
5010 CIP - Art Park Imp $5,059 $25,000 $25,000
5010 CIP - Public Works $79,276 $32,800 $0
6364 CIP - Coastal Trail $0 $50,000 $423,000
6367 CIP - Bike Trail $0 $205,000 $0
6368 Affordable Housing - PLHA $0 $152,000 $131,647
DEPARTMENT TOTAL $560,292 $2,259,918 $2,906,147
Several special projects are included in the budget, while some will continue to be implemented in FY 24-25 with a carryover from the prior fiscal year. The City will continue its efforts to digitize files to move away from paper-based systems; the City hopes to restore the habitat behind the City shopping centers; further, the City is required to update its general plan.

SPECIAL PROJECTS
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Expenses Amended Budget Proposed Budget 5913 Digital Records $12,411 $10,000 $40,000
6281 Habitat Expense $0 $30,000 $50,000
6311 Housing Element $170,705 $211,653 $50,000
6312 General Plan $0 $250,000 $300,000
6365 Cannabis Grant $0 $288 $114,712
6370 REAP 2.0 Grant - Website $0 $85,000 $0
6420 S of Tioga Reimbursements $59,379 $88,500 $0
6421 S OF TIOGA PC $3,361 $0 $0
6422 S OF TIOGA BI $16,855 $11,500 $0
6445 MST SURF Proj $0 $0 $0
DEPARTMENT TOTAL $262,711 $686,941 $554,712
118
City of Sand City
2024-25 Budget

Page 50 ends

GRANTS
Recurring Grants
COPS Grant
This fund accounts for the expenditures for the Department of Justice Community Oriented Policing Services (COPS) grant for public safety. In FY 23-24, the projected COPS revenue of $150,000 is transferred to the General Fund for Police Department salaries for eligible positions.

There are no line items for expenses shown in “Recurring Grants Expenditures” as the funding is put toward salaries and is reflected in the Police Department budget.

Bulletproof Vest Partnership (BVP) Grant
The Bureau of Justice Assistance (BJA) initially awarded Sand City the Bulletproof Vest Partnership solicitation in Fiscal Year 2008-2009 and has continued the award since. The funding may be used for National Institute of Justice (NIJ) compliant armored vests and only one vest may be purchased per officer in a replacement cycle. Fifty percent (50%) of funding can be used to pay for this tactical-level armor.

MBASIA Safety/ Fitness Grant
Funding has been allocated by the Monterey Bay Area Self Insurance Authority (MBASIA) to be used for Safety Services. This funding can be used for items such as office mats, fire extinguishers, ergonomic keyboards, first aid kits, Public Works boots, Public Works safety vests, immunizations, orange street cones, Public Works hard hats, emergency kits for vehicles, and flashlights.

This grant also allocates funding for a fitness program reimbursement. The funding is used by the City to maintain a Health and Wellness Program, which provides an incentive to motivate employees toward healthy lifestyle choices. The program reimburses regular employees for a one-time initiation fee and a $150 monthly incentive per employee enrolled in a fitness plan.

The City has received this grant since Fiscal Year 2013-2014.

CSA 74 Emergency Medical Services Grant
On July 20, 2010, the Emergency Medical Care Committee (EMCC) approved the establishment of a $1.5 million reserve and the disbursement of available CSA 74 funds (after funding the EMS Agency’s budget) to approved jurisdictions using the same formula as the annual 9-1-1 dispatch billing. This formula uses assessed values, population counts, and workload numbers to compute a weighted average percentage. This 119

Page 51 ends

percentage is then used to distribute the available fund balance after the fiscal year has closed. The Monterey County Emergency Medical Services (EMS) Agency acquired these County Service Agreement (CSA) 74 funds that are available to participating agencies supporting Monterey County emergency medical services training and equipment expenditures.

Available County Service Agreement (CSA) 74 funds are to support Monterey County emergency medical services training and equipment expenditures. Distributed CSA74 funds can only be used for direct EMS training and equipment expenses.

There is no line item for expenses shown in “Recurring Grant Expenditures” as the funding is reflected in the budgets of various departments.
120
City of Sand City
2024-25 Budget

Page 52 ends

Non-Recurring Grants
These grants are those that are not expected on a regular basis and are typically onetime grant revenue. Expenditures for these items are shown in Capital Expenditures or Special Projects, however, revenues for these items are shown below.

American Rescue Plan Act of 2021 (ARPA) Grant
The American Rescue Plan Act of 2021 (ARPA) established the Coronavirus State and Local Fiscal Recovery Funds program under sections 602 and 603 of the Social Security Act which allocated $350 billion in emergency funding to help state and local governments address the economic and health consequences of the COVID-19 pandemic. Of the $350 billion allocated, the City received $95,449.00. It has been allocated to Premium Pay for essential nonexempt employees who worked during the pandemic and to fund a new Façade Program.

CA Natural Resources Agency Per Capita Grant – Calabrese Park Funds from this grant are available for local park rehabilitation, creation, and improvements to local governments on a per capita basis. Recipients of this grant are encouraged to use the funds to rehabilitate existing infrastructure and to address deficiencies in neighborhoods lacking access to the outdoors. The City received $177,952 which assisted in the rehabilitation and improvement of Calabrese Park.

Local Early Action Planning Grants Program (LEAP)
The LEAP grant reflects the State’s commitment to work in partnership with local governments to address California’s critical housing needs. The City was awarded $65,000 for use towards the completion of the 6th Cycle Housing Element.

Department of Cannabis Control (DCC) Grant
The Retail Access Grant provides local governments with resources to develop and implement cannabis retailer licensing programs. The City of Sand City has been awarded $115,000 and is the preliminary stages of this project.

Regional Early Access Planning (REAP) Grant 2.0
The REAP 2.0 program was established through AB 140 for transformative and innovative projects that implement a region’s Sustainable Communities Strategy (SCS) and help achieve the objectives of more housing and transportation options that reduce reliance on cars. The City of Sand City was awarded $85,000 for the redesign of the City’s website to enhance its Economic Development potential. 121

Page 53 ends

Permanent Local Housing Allocation Program (PLHA)
The PLHA Grant, awarded through the California Department of Housing and Community Development (HCD), provides funding to local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. The City of Sand City was awarded $283,647 which will be utilized to study, acquire, and develop property to be used for affordable housing in Sand City.

Coastal Conservancy Grant
The State of California Coastal Conservancy provides grant funding for a wide variety of projects along the California coast, San Francisco Bay, and in coastal watersheds to increase availability of beaches, parks, and trails for the public, protect and restore natural lands and wildlife habitat, preserve working lands, and increase community resilience to the impacts of climate change. The City of Sand City was awarded $473,500 to plan and design a new coastal trail, parking improvements and a restoration plan.

Monterey Bay Air Resources District (MBARD)
This grant serves to work in accordance with Assembly Bill 2766 Motor Vehicle Emission Reduction Program. The City of Sand City was awarded $205,000 to plan and design a Multiuse Trail and Bike Lane Improvements to meet AB 2766 emission reduction requirements.

State Water Resource Control Board (SWRCB) Proposition 1 Grant The SWRCB’s Integrated Regional Water Management (IRWB) grant program provides funding for projects that help meet the long-term water needs of the state. The City of Sand City was awarded two separate awards for storm water improvement projects along Catalina St and Contra Costa in the amount of $1,097,400 and $2,375,202 respectively. 122
City of Sand City
2024-25 Budget

Page 54 ends

Non-Recurring Grant Revenues
FY 22/23 FY 23/24 FY 24/25
Account Account Description Actual Revenue Amended Budget Proposed Budget 4684 CA Dept of Parks & Rec Grant $37,673 $171,486 $0
4607 LEAP Grant $0 $65,000 $0
4608 REAP Grant $65,000 $85,000 $0
4609 PLHA Grant $0 $152,000 $131,647
4611 Coastal Conservancy Grant $0 $50,000 $423,000
4612 MBARD Grant $0 $205,000 $0
4613 Cannabis Grant $0 $0 $115,000
4682 Prop 1 SW IRWM - Catalina $20,751 $111,151 $652,000 4683 PROP 1 SW $0 $366,059 $1,639,500
DEPARTMENT TOTAL $123,424 $1,205,696 $2,961,147
123

Page 55 ends

Appropriations Limit
Description
Article XIIIB of the California Constitution provides that the total annual appropriations subject to limitations of each governmental entity, including this City, shall not exceed the appropriations limit of such entity of government for the prior year adjusted for changes in population and inflation mandated by Proposition 4 (1979) and Proposition 111 (1990), except as otherwise provided in said Article XIIIB and implementing state statues.

Pursuant to Article XIIIB of the California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to calculate and set its appropriations limit for each fiscal year. Based on such calculations the City had determined said appropriations limit and pursuant to Section 7910 of the California Government Code has made available to the public the documentation used in the determination of the appropriations limit.

An appropriations limit of $17,663,692 was calculated and established for Fiscal Year 2023-2024, and a new appropriations limit for Fiscal Year 2024-2025 has been calculated as $18,349,043 using the inflation factor and population increase factor allowed by state law.

Fiscal Year 2023-2024 Limit $17,663,692
Adjustment Factors
Population Growth Ratio = 1.0026
Inflation Ratio (per capita income) = 1.0362
Annual Ratio = 1.0026 x 1.0362 1.0388
Fiscal Year 2024-2025 Limit
$17,663,692 x 1.0388 = $18,349,043 $18,349,043
Appropriations Limit Calculation
Fiscal Year 2024-2025
.26 + 100
100

3.62 + 100
100
124
City of Sand City
2024-25 Budget

Page 56 ends

1 Pendergrass Way, Sand City, CA 93955
(831) 394-3054 • sandcity.org
125

AGENDA ITEM
10B.

Approve a Resolution Approving
Delegation of Authority for Executing
Caltrans Documents
126
City of Sand City

STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Vibeke Norgaard, City Manager
SUBJECT: Authorization to Execute Caltrans Documents Required for the Association of Monterey Bay Area Governments Carbon Reduction Program DATE: June 4, 2024
_______________________________________________________________________ BACKGROUND/DISCUSSION:

In April 2024, EMC Planning Group prepared and submitted an application for the Association of Monterey Bay Area Governments (AMBAG) Carbon Reduction Program (CRP) grant to support the construction of an approximately one-mile new multiuse trail system within the Transportation Authority of Monterey County (TAMC) railway corridor.

The project involves the implementation of an approximately one-mile new trail system that would provide an extension from the existing Monterey Bay Coastal Trail at Del Monte Boulevard and Canyon Del Rey Boulevard to the future rapid transit station proposed at Playa Avenue and California Avenue in the City of Sand City (the “City”). The project includes two primary components; 1) implementation of a new multiuse trail system and parking in the TAMC railway corridor, and 2) improved bike lane striping along California Avenue and Holy Street.

On May 8th, 2024, the AMBAG Board of Directors authorized staff to begin the preparation of supporting documentation required to award funding to the City in the amount of $1,960,000 to support the construction of the multiuse trail system. Supporting documents required to obtain the allocated funding include the following:
 Master Agreements;
 Program Supplemental Agreements;
 Cooperative Agreements;
 Right-of-way Certifications;
 Project Certification;
 Fund Exchange Agreements; and
 Fund Transfer Agreements.

The attached resolution approves the delegation of authority to the City Manager to execute the required Caltrans documents listed above.

FISCAL IMPACT: Funding provided through the AMBAG CRP will be applied to costs associated with the construction of the proposed multiuse trial system. At this time the project is still in the preliminary planning phase and total cost of construction is unknown. 127
EMC has worked closely with City staff and grant writers to submit an application for additional grant funding in an effort to completely fund the implementation of the project.

Once the plans have been completed, the City will continue to seek additional construction funding if required to complete the project.

RECOMMENDATION:

Staff recommends:
1) APPROVAL of a resolution authorizing the City Manager to execute necessary agreements; and, thereafter to administer the grant with the Association of Monterey Bay Area Governments.

ATTACHMENTS:

1. Resolution approving delegation of authority for executing Caltrans documents. 128

CITY OF SAND CITY
RESOLUTION SC ___, 2024

RESOLUTION OF CITY COUNCIL OF THE CITY OF SAND CITY APPROVING

DELEGATION OF AUTHORITY FOR EXECUTING CALTRANS DOCUMENTS WHEREAS, the City of Sand City is eligible to receive Federal and/or State funding for certain transportation projects through the California Department of Transportation (Caltrans); and WHEREAS, Master Agreements, Program Supplemental Agreements, Cooperative Agreements, Right-of-way Certifications, Fund Exchange Agreements, Project Certification, and/or Fund Transfer Agreements need to be executed with the California Department of Transportation before such funds can be claimed; and
WHEREAS, the City of Sand City wishes to delegate authorization to execute these agreements, certifications and any amendments thereto to the City Manager and/or designee.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sand City that the City Manager or her designee is authorized to execute all Master Agreements, Program Supplemental Agreements, Cooperative Agreements, Right-of-way Certifications, Fund Exchange Agreements, Project Certifications, Fund Transfer Agreements and any amendments thereto with the California Department of Transportation.

PASSED AND ADOPTED ay a regular meeting of the City Council of the City of Sand City, this __ day of ____, 2024 by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________
Mary Ann Carbone, Mayor
ATTEST:

DATED: ____________________
___________________________
Kerry Lindstrom, City Clerk
129

AGENDA ITEM
10C.
2023-2031 Housing Element of the
General Plan: Approve a Resolution
Adopting a Categorical Exemption for the
2023-2031 Housing Element Update and;
Approve a Resolution Adopting a General
Plan Amendment to Repeal the 2015-2023
Housing Element and Adopt the 2023-
2031 Housing Element of the General Plan
in Compliance with State Housing Element
Law
130
City of Sand City

STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Michael Groves AICP, Contract Senior Principal
Kylie Pope, Associate Contract Planner
Kailon Thompson, Associate Contract Planner
SUBJECT: Adoption of CEQA Exemption and approve a General Plan Amendment to repeal the 2015-2023 Housing Element and adopt the 2023-2031 Housing Element of the General Plan in compliance with State housing element law.

DATE: June 4, 2024
_______________________________________________________________________ BACKGROUND/DISCUSSION:

The City has prepared a draft update to the Housing Element of the General Plan (Attachment 2, Exhibit A) to affirmatively further fair housing and accommodate the 260- unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 Housing Element 6th cycle. The content of the draft 2023-2031 Housing Element is structured for consistency with the requirements set forth in state law. In addition to responding to requirements of state law, the Housing Element also demonstrates the City’s strategy for meeting the City’s locally determined housing needs and that these needs are addressed through policies and programs outlined within the Housing Element. Public review and input have been a critical component of this 6th Cycle Housing Element Update.

This staff report provides a summary of the Housing Element requirements, an overview of the status of the City’s draft Housing Element, and the findings provided to the City by HCD on the first 90-day review and subsequent 60-day review of the draft. The City has responded to HCD’s comments and believes that the draft Housing Element substantially complies with Housing Element Law.

Background
CA Government Code Title 7, Division 1, Chapter 3, Article 10.6 [65580 – 65589.11] regulates the use and requirements of housing elements in California. The state law requires jurisdictions to update their General Plan Housing Element every eight years. State law further requires the current update for jurisdictions in the Association of Monterey Bay Area Governments (AMBAG) region to comply by December 15, 2023. 131
The City’s 2023-2031 Draft Housing Element was prepared with the benefit of input from the community and discussion at numerous public meetings held by the City Council.

Guidance was also provided by HCD throughout the process.

On May 5, 2023 the City released the Sand City Public Review Draft Housing Element for a 30-day review and public comment period. The public comment period ended on June 5, 2023. The draft was subsequently revised and on September 26, 2023, the City submitted the Sand City Initial Draft Housing Element to Housing and Community Development (HCD) for a 90-day review.

The City received HCD’s 90-day findings letter on December 21, 2023 Based on discussions with HCD, staff revised the draft Housing Element to include additional information and analysis. Prior to resubmittal to HCD the draft Housing Element was posted for public review and comment period of seven (7) days on February 28, 2024, April 16, 2024 and May 10, 2024. All public comments were considered during preparation of the subsequent drafts.

On May 20, 2024 the revised document was submitted to HCD for subsequent 60-day review period.

The following section summarizes the required components of Housing Element Updates per State law, new requirements since the 5th Cycle Housing Element Update (2015-2023), and penalties for noncompliance with Housing Element laws. The section also includes a summary of public meetings related to the 6th Cycle Housing Element Update prior to today’s meeting.

Required Components of a Housing Element
Pursuant to Government Code Section 65583, local governments are required to include the items below as components within their Housing Elements and subsequent updates thereto. Newly required components introduced as part of the 6th Cycle are noted below and discussed in further detail within the “New Requirements for the 6th Cycle Housing Element Update” Section below.

1. Housing Needs Assessment.

2. Evaluation of Past Performance.

3. Housing Sites Inventory

4. Community Engagement.

5. Constraints Analysis.

6. Policies and Programs.

7. Affirmatively Furthering Fair Housing.
132
New Requirements for the 6th Cycle Housing Element Update Pursuant to recent State legislation, the following items are now required as part of the Housing Element Update process:

Affirmatively Furthering Fair Housing (AFFH). Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing.

According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics (such as race, sexual orientation, or disability)” and is Federally mandated by the 1968 Fair Housing Act.

Public Comment on Draft Revisions. Assembly Bill 215 (AB 215, 2021) requires local governments to make the first draft revision of their housing element update available for public comment for at least 30days. Further, if any comments are received, a local government must take at least ten additional business days to consider and incorporate public comments into the draft revision before submitting to HCD. HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each housing element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

Penalties for Non-Compliance
In the 6th Cycle, jurisdictions face a number of new consequences for not having a certified Housing Element. Under legislation enacted in recent years, if a jurisdiction does not comply with State housing law, HCD may refer the jurisdiction to the Attorney General.

Significant fines may be imposed if a jurisdiction does not comply with a court order within one year. A court finding a Housing Element inadequate may limit local land use decisionmaking authority until the jurisdiction brings its Housing Element into compliance, or local governments may lose the right to deny certain projects, including those submitted under the “Builder’s Remedy”.

Conversely, an HCD-certified housing element makes jurisdictions eligible for, or with higher priority for, numerous sources of funding, such as Local Housing Allocations, Affordable Housing and Sustainable Communities Grants, SB 1 Planning Grants, CalHOME Program Grants, Infill Infrastructure Grants, Pro-Housing Design funding, Local Housing Trust Funds and Regional Transportation Funds (such as MTC’s OneBayArea Grants).

Summary of Prior Meetings and Outreach
133
The City has conducted a comprehensive community engagement and outreach strategy as required by the Government Code to inform the 6th Cycle Housing Element Update Process. These meetings and outreach events are summarized in Section 1.6 Public Participation of the final draft Housing Element. Feedback received throughout the ongoing community engagement and outreach process has assisted the consulting team in preparing the draft Housing Element Update and related items.

Regional Housing Needs Allocation (RHNA)
In August 2021, the California Department of Housing and Community Development (HCD) issued a Regional Housing Need Determination to the AMBAG region for the 6th Cycle planning period of June 30, 2023 to December 15, 2031 and determined that the region must zone to accommodate a minimum of 33,274 housing units during this period.

California housing law (Government Code § 65580 et seq.) requires AMBAG, acting in the capacity of Council of Governments (COG), to develop a Regional Housing Needs Allocation (RHNA) Plan to allocate existing and projected housing needs to local jurisdictions within Monterey and Santa Cruz Counties.

Based on the final RHNA Plan, each city and county must update its housing element to demonstrate how the jurisdiction will meet the expected growth in housing needs over this period of time. On October 12, 2022, the AMBAG Board of Directors adopted the Final 2023-2031 6th Cycle RHNA Plan. AMBAG’s Plan distributes the RHNA across the regions counties and cities based on demographic, and population data received from the California Department of Finance (DOF). Local jurisdictions must then utilize their ascribed RHNA to update the housing elements of their general plans for the 6th Cycle planning period, inclusive of identifying eligible land resources to accommodate this RHNA. The City of Sand City’s RHNA is 260 units.

RHNA requirements are organized into four affordability categories, established according to the Area Median Income (AMI) of a geography. These categories include very lowincome residential units, which are affordable to households earning less than 50% of AMI; low-income residential units, which are affordable to households earning between 50% and 80% of AMI; moderate income residential units, which are affordable to households earning between 80% and 120%; and above moderate-income residential units which are affordable to households earning upwards of 120% of AMI. The City’s RHNA breakdown is as follows:
59 very-low income units,
39 low-income units,
49 moderate-income units, and
113 above moderate-income units.
134
Housing Needs Assessment
As part of the Housing Element Update process the City is required to analyze the existing and projected housing needs of the City, including its fair share of RHNA requirements.

The City’s analysis of housing needs is required to include an assessment of detailed demographic data, including population, age, size, and ethnicity; household characteristics; overpayment trends; housing stock conditions; units in need of replacement or rehabilitation; and needs of special needs populations including the elderly, persons with disabilities, unhoused persons, extremely low-income households, and farmworkers. The 6th Cycle Housing Element Update outlines the housing needs of the City in Appendix A.

Constraints Analysis
In addition to analyzing the existing and projected housing needs of the City, the Housing Element Update must also identify and analyze potential and actual governmental and nongovernmental constraints to the maintenance, improvement, or development of housing for all income levels in the community, regardless of protected class. A summary of constraints to the development and improvement of housing in the City can be found in Appendix B of the Housing Element.

Housing Resources & Sites Inventory
As part of the 6th Cycle housing element update, the City is also required to identify resources available to the City for the preservation, rehabilitation, and production of housing throughout the community. This includes programmatic and financial resources, such as those offered locally or through State or Federal partners. These resources also include land resources within the City that were identified as eligible for accommodation of the City’s RHNA Requirements. Pursuant to Government Code Section 65583.2(a) the following land resources are eligible for accommodation of the City RHNA: vacant sites zoned for residential use; or vacant sites zoned for nonresidential use that allow residential development; or residentially zoned sites that are capable of being developed at a higher density; or sites zoned for nonresidential use that can be redeveloped for residential use, and for which the Housing Element includes a program to rezone the site. The City’s Housing Sites Inventory is summarized in Appendix C of the Housing Element.

Policies and Programs
The Housing Element Update includes a set of goals, policies, and implementing programs intended to promote the preservation, rehabilitation, and production of housing throughout the City. Goals are long range, broad, and comprehensive targets that describe the future outcomes the City desires. A policy is a specific instructional guideline that seeks to promote goals. Together, goals and policies are implemented through a series of programs that identify specific, quantifiable actions the City will undertake during the 6th Cycle 135
planning period. A summary of Draft Goals, Policies, and Programs can be found in Chapter 2 of the Housing Element.

AFFH
Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing as part of the Housing Element Update process. These requirements found in Government Code Section 8899.50 are intended to address racial inequalities seen today throughout the region which developed through historical policies and practices enacted at federal, state, regional and local levels and across the public and private sectors. Though many of these explicit forms of historical discrimination have been outlawed, the results of these systems have left a lasting imprint on both the region and the City. Racially explicit practices (e.g., racial covenants) that excluded persons of color from predominately white neighborhoods have been replaced with race-neutral land use policies that continue to exclude these same groups. Furthermore, rapidly increasing housing costs have deepened racial and economic disparity and segregation, displacing many lowincome individuals and people of color to the peripheries of the region or out of the region altogether.

Accordingly, the City must incorporate fair housing considerations into its 6th Cycle Housing Element Update to increase housing opportunities in high-resource neighborhoods and bring additional resources to traditionally under-resourced neighborhoods. A summary of the required AFFH component can be found in section 1.4 of the Housing Element.

Targeted Community Outreach
The City must demonstrate “meaningful, frequent, and ongoing community participation, consultation, and coordination” as part of the 6th Cycle Housing Element Update process.

This is intended to ensure that input has been received from groups historically and presently most impacted by fair housing issues and that local knowledge is incorporated into Housing Elements. A summary of the City’s targeted community outreach efforts can be found in section 1.6 of the Housing Element. Additional information can be found in Appendices E and F.

Assessment of Fair Housing
The City must also describe and analyze the unique housing circumstances of the City.

This analysis is referred to as an Assessment of Fair Housing (AFH) and analyzes circumstances within the City pertaining to Fair Housing which can be found in Appendix A of the Housing Element.

Segregation and Integration Patterns
136
The City’s AFH also analyzes segregation and integration patterns within the jurisdiction as well as regionally. Segregation and integration patterns are analyzed by evaluating the concentration (or lack thereof) of protected groups within the community, relative to their distribution across a larger geography.

Disparities In Access to Opportunity
The City’s AFH also evaluates disparities in access to opportunity within the City, which are areas within the City that have substantial differences in access to education, transportation, economic and environmental outcomes than other areas as identified by the California Tax Credit Allocation Committee (TCAC).

Disproportionate Housing Needs (For Low-Income Households and Protected Classes) The City’s AFH also evaluates disproportionate housing needs among low-income households and protected classes within the City. Disproportionate housing needs are evident when members of a protected group disproportionately experience a housing need compared to other groups or the total population. Disproportionate housing needs typically refer to the risk of displacement, overcrowding, or cost-burden, among others.

Sites Inventory
State Law requires the City to evaluate whether Housing Sites identified as suitable for accommodation of the City’s RHNA requirements are identified relative to the full scope of the assessment of fair housing (e.g., segregation and integration, racially and ethnically concentrated areas of poverty and affluence, access to opportunity, etc.). A summary of how Housing Sites were identified consistent with AFFH can be found in section 1.4 of the Housing Element.

Goals, Policies, and Actions
The policies and programs responsive to State Law demonstrating the City’s commitment to affirmatively further fair housing as part of the Housing Element Update process can be found in Chapter 2 of the Housing Element.

Evaluation of Past Progress
Pursuant to State Law, the implementation status of Goals, Policies, and Programs from the City’s 5th Cycle Housing Element Update has been included in Appendix D of the Housing Element.

CEQA:

The City has prepared the necessary environmental review, consistent with CEQA, for the Draft 2023–2031 Housing Element Update. The City Council will be considering the adoption of a Categorical Exemption, consistent with CEQA, for the Draft 2023– 2031 Housing Element Update (Resolution 2024-XXX, Attachment 1) 137
FISCAL IMPACT:

The Housing Element Chapter includes programs and policies that the City must implement to comply with State Housing Law. Funding to complete the housing implementation requirements (policies and programs) is estimated at approximately $450,000, or about $56,000 per year for the lifetime of the City’s Housing Element (eight years). This does not include the full General Plan Update; which is estimated to cost approximately $650,000 - $750,000.

The City has begun work on implementation of the City’s Housing Element, based on direction from HCD and the City, and executed a contract on September 5, 2023 for $92,358 to develop Objective Design and Development Standards (adopted by City Council on May 21, 2024) and on April 16, 2024 for $170,000 to begin work on policies and programs related to required Zoning Code amendments.

The Housing Element was funded in part by a LEAP grant of $65,000 and a REAP grant also in the amount of $65,000, for a total of $130,000 in grant funding. The remainder of the funding came from the City’s General Fund. The total Housing Element contract cost, including the Objective Design and Development Standards, is $362,358.

RECOMMENDATION:

1. Adopt a Resolution 2024-XX adopting a CEQA Exemption for the 2023-2031 Housing Element of the General Plan; and

2. Adopt Resolution 2024-XX approving a General Plan Amendment to repeal the 2015- 2023 Housing Element and adopt the 2023-2031 Housing Element of the General Plan in compliance with State housing element law.

ATTACHMENTS:

1. Resolution – adopting Categorical Exemption

2. Resolution - adopting the 2023-2031 Housing Element

3. HCD 90-day Finding Letter, dated November 1, 2023

4. Response to HCD Findings (Draft 2023-2031 Housing Element submitted May 20, 2024)

5. HCD Letter, dated May 24, 2024
138

CITY OF SAND CITY
RESOLUTION SC 24-___, 2024

RESOLUTION OF THE CITY COUNCIL OF SAND CITY ADOPTING A CATEGORICAL EXEMPTION FOR THE 2023-2031 HOUSING ELEMENT UPDATE
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the Sand City City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Sand City’s regional housing need allocation (RHNA) of 260 housing units, comprised of 59 very-low-income units, 39 lowincome units, 49 moderate-income units, and 113 above moderate-income units; and WHEREAS, to comply with State Housing Element Law, the City of Sand City has prepared the 2023-2031 Housing Element in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and
WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and WHEREAS, the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”), together with State Guidelines (14 California Code Regulations §§ 15000, et seq., the “CEQA Guidelines”) require that certain projects be reviewed for environmental effects and that environmental documentation be prepared; and
WHEREAS, the City completed a Categorical Exemption; and WHEREAS, on May 24, 2024, a notice of the public hearing scheduled for June 4, 2024, was published in the Monterey Weekly in compliance with State law (California Government Code 65091) indicating the date and time of the public hearing; and WHEREAS, on or before May 31, 2024, the meeting agenda was posted in compliance with State law indicating the date and time of the public hearing; and WHEREAS, on June 4, 2024, the City Council held a duly noticed public hearing to receive public testimony regarding the 6th Cycle 2023-2031 Housing Element update and Categorical Exemption; and
WHEREAS, this Resolution and its findings are made based upon the evidence presented to the Council at the hearing, including, without limitation, the staff report and attachments which are incorporated herein by reference; and WHEREAS, the City Council did hear and consider all said reports, attachments, recommendations, and testimony as set forth above and incorporated herein by reference, and used their independent judgment to evaluate the project; and WHEREAS, the facts set forth in the recitals are true and correct and are incorporated herein by reference.
139
NOW, THEREFORE, BE IT RESOLVED that the City Council of Sand City does hereby adopt the Categorical Exemption, included as Exhibit A.

PASSED AND ADOPTED by the City Council of the City of Sand City this _4th__, day of June, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________
Mary Ann Carbone, Mayor
ATTEST:

DATED: ____________________
___________________________
Kerry Lindstrom, City Clerk
Exhibit A: Categorical Exemption
140
EMC Planning Group Inc. 1
Sand City 6th Cycle Housing Element Project
Description and Evidence for Categorical
Exemption

PROJECT DESCRIPTION
The proposed Sand City 6th Cycle Housing Element Update accommodates 138 new housing units on eight opportunity sites throughout Sand City that have not already been through the development review and approval process. Additionally, three accessory dwelling units (ADUs) are included, but ADUs are exempt from CEQA review. The housing sites and associated data are included as Exhibit A to this document. Additional housing units, for a total of 505, are included in the housing element update, but 364 units (South of Tioga and Catalina Lofts projects) have been through the environmental review process and have been approved by the City of Sand City. Therefore, these are considered pipeline projects, and do not need to undergo environmental review again, but are however, subject to mitigation measures and/or conditions of approval required in their respective project approvals.

CATEGORICAL EXEMPTION AND EVIDENCE
The proposed project qualifies for a categorical exemption under Article 19, Section 15332 of the California Environmental Quality Act (CEQA).

Class 32 consists of projects characterized as in‐fill development meeting the conditions described in this section.
(a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations.
(b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses. (c) The project site has no value as habitat for endangered, rare or threatened species.
(d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality. (e) The site can be adequately served by all required utilities and public services.
141
Project Description and Evidence for Categorical Exemption 2 EMC Planning Group Inc.

Evidence and Findings
(a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations.

Evidence. The number of proposed housing units at each of the housing opportunity site are allowed, and are consistent with each site’s general plan and zoning designations development densities. Future development at each of these housing opportunity sites will undergo design review to ensure they are consistent with applicable general plan policies and applicable zoning designations and regulations. (b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.

Evidence. The eight opportunity sites are all located within the developed city limits and are surrounded by urban uses. The size of the eight sites ranges from 0.045 acres to 3.204 acres. Cumulatively, they total 4.292 acres.
(c) The project site has no value as habitat for endangered, rare or threatened species.

Evidence. All of the housing opportunity sites are developed or previously disturbed.

Three of the sites are identified as vacant. Vacant sites 6 and 7 (0.172 acres) are used for storing vehicles and various materials associated with an adjacent Sylvania – Consolidated Electrical Distributors warehouse. Vacant Site 8 is 0.045 acres and was developed as recently as 2015, and used for storage, according to historical Google Earth photos and street view. None of the site have value as habitat for endangered, rare or threatened species.
(d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

Evidence ‐ Traffic. A vehicle miles traveled (VMT) study was conducted by Hexagon Transportation Consultants in March 2024 to determine if the cumulative units (147 at the time) would result in significant traffic effects. The full report is included as Exhibit B. The report concluded that cumulatively, development of the housing sites would not result in a significant VMT impact.

Evidence – Noise. The units would all be developed with existing residential or mixed‐use neighborhoods and therefore, any temporary (construction) or permanent noise increase would be minimal. Additionally, projects would be required to comply with applicant city noise regulations.

Evidence – Air Quality. Construction of the 138 housing units is assumed to occur occasionally over an eight‐year period, and therefore, construction air quality impacts 142
Sand City 6th Cycle Housing Element
3 EMC Planning Group Inc.
are considered to be less than significant. Regarding long‐term air quality impacts associated with vehicle use, the Monterey Bay Air Resources District estimates that 810 single‐family dwelling units or 1,195 townhouse dwelling units could have significant air quality impacts. Therefore, because the housing element update accommodates 138 housing units, the long‐term air quality impacts are considered less than significant.

Evidence – Water Quality. Development of each of the housing opportunity sites will be required to comply with the application city and Regional Water Quality Control Board standards for water quality associated with construction.

Therefore, approval and implementation of the housing element update, would not result in any significant effects relating to traffic, noise, air quality, or water quality. (e) The site can be adequately served by all required utilities and public services.

Evidence. All of the housing opportunity sites can be adequately served by required utilities and public services, including but not limited to water, wastewater, gas and electricity, and fire and police protection.

For these reasons, the proposed project is categorically exempt as the project is characterized.

Exceptions to Categorical Exemptions
Section 15300.2 of the CEQA Guidelines lists exceptions that would prohibit a project from qualifying for a Categorical Exemption, even if the project satisfies the requirements for one or more of the exemption classes. The City of Sand City’s CEQA consultant, EMC Planning Group, conducted an independent review and evaluation of the proposed housing element update and conducted independent research. Based on its review, EMC Planning Group concluded that none of the exceptions listed in CEQA Guidelines section 15300.2 (a‐f) apply to the proposed project (discussed below). Therefore, a Categorical Exemption is appropriate pursuant to CEQA Guidelines Section 15302.
a) Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located – a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are considered to apply all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies.

Discussion. The project qualifies for a Class 32 exemption and therefore, the location exception does not apply to the project.
b) Cumulative Impact. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant. 143
Project Description and Evidence for Categorical Exemption 4 EMC Planning Group Inc.

Discussion. The housing element is considered cumulative housing development in the City of Sand City. Therefore, there is no cumulative impact that would be significant.
c) Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.

Discussion. Neither City staff nor their consultants are aware of any unusual circumstances associated with the project such that the project would result in a reasonable possibility of resulting in a significant effect on the environment. d) Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified EIR.

Discussion. According to the Caltrans Scenic Highway System Map website, the nearest housing opportunity sites (numbers 4 and 5) are located approximately 260 and 407 feet, respectively from State Route 1. In this area State Route 1 is eligible for scenic highway designation, but is not officially designated as a scenic highway.

Therefore, no officially designated scenic highways, or scenic resources, would be affected as a result of the project. Additionally, these housing sites are currently developed, although underutilized, and therefore, redeveloping these sites would not affect State Route 1 eligibility to be officially designated. e) Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.

Discussion. One of the housing sites, Site #3 APN: 011‐236‐027‐000 & 011‐236‐029‐ 000, is located on the State Water Resources Control Board Geotracker website and identified as a leaking underground storage tanks (LUST) site; however, Geotracker reports that the site was cleanup and the case was closed in 2009. None of the other housing opportunity sites are located on a site that is included on any list compiled pursuant to Section 65962.5 of the Government Code. They are not listed on the California Environmental Protection Agency’s Cortese List (Health and Safety Code Section 25187.5). The State Water Resources Control Board’s Geotracker (Health and Safety Code Section 25295 and Water Code Sections 13273 and 13301) does not indicate any hazardous sites within the housing opportunity site. Additionally, they are not listed on the California Environmental Protection Agency’s list of solid waste 144
Sand City 6th Cycle Housing Element
5 EMC Planning Group Inc.
sites identified by the Water Board with waste constituents above hazardous waste levels outside the waste management unit (Health and Safety Code Section 116395). f) Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.

Discussion. Three of the housing sites are vacant. Those that contain structures are mostly industrial warehouse buildings. One contains a house in significant disrepair. None would be considered historically significant. Therefore, the proposed project would not cause a change in the significance of a historical resource.
145
1 2
3 4 5
6 7 8
9 10
California Ave.

Contra Costa St.

Dias Ave.

Redwood Ave.

Ortiz Ave.

Catalina St.

Orange Ave.

Shasta St.

Elder Ave.

Del Monte Blvd.

State Route 1
11 Hickory St.

Holly St.

Sites Inventory
Sand City 6th Cycle Housing Element
0 450 feet
Figure C-1
Source: Monterey County GIS 2023,
Google Earth 2023 City Limit
Coastal Zone
Underutilized
Pipeline Project
Consolidated
Vacant Sites
Sensitive Habitat City Owned

EXHIBIT A
146
Map
#
APN Address GENERAL

PLAN ZONING ACRES
MAX

DENSITY
per acre

REALISTIC

CAPACITY
(% of Max
Density)
VL L M AM Total
Salvation Army
1 011-186-020-000 801-803 California
Avenue EDSP M 0.3 20 5 5
Subtotal 0.3 83% 5 5
City of Sand City Art Park and adjacent privately owned properties 2 011-196-014-000 502 Ortiz Avenue MU-D MU-P 0.040 81 3 3 6 011-196-020-000 No address MU-D MU-P 0.175 81 3 3 6
011-196-015-000 No address MU-D MU-P 0.130 81 3 1 4
Subtotal 0.345 57% 9 7 16
The Independent, Phase 2
011-232-027-000 524 Elder Avenue MU-D MU-P 0.087 81 2 2 4 3 011-232-022-000 525 Elder Avenue MU-D MU-P 0.087 81 2 2 4 011-232-021-000 526 Elder Avenue MU-D MU-P 0.087 81 2 2 4 011-236-027-000 No address MU-D CZ-MU-P 2.727 81 38 23 30 91 011-236-029-000 No address MU-D CZ-MU-P 0.216 81 2 2 4
Subtotal 3.204 41% 46 31 30 0 107
Underutilized Sites
4 011-243-004-000 1793 Catalina Street MU-D MU-P 0.138 81 18% 2 2 5 011-237-001-000 1712 Catalina Street MU-D MU-P 0.088 81 14%* 1 1 Vacant Sites
6 011-238-012-000 No address MU-D MU-P 0.086 81 50% 3 3 7 011-238-011-000 No Address MU-D MU-P 0.086 81 50% 3 3 8 011-238-021-000 445 Orange Avenue MU-D MU-P 0.045 81 67%* 1 1 Subtotal 60 38 30 10 138
ADUS 2* 1 0 0 3
Pipeline Projects 9 7 26 322 364
Total 71 46 56 332 505
RHNA 59 39 49 113 260
Net Surplus 12 7 7 219 245
Percent Surplus 120% 118% 114% 294% 194%
147
Memorandum
Date: March 1, 2024
To: Mr. Stuart Poulter, EMC Planning Group
From: Ollie Zhou, T.E. and Huy Tran, T.E.

Subject: VMT Analysis for the Sand City Housing Element Update Hexagon Transportation Consultants, Inc. has completed a Vehicle Miles Travelled (VMT) analysis for the proposed 2023-2031 Housing Element Update (HEU) for Sand City. The purpose of this study is to comply with CEQA requirements and to determine whether the proposed HEU project would generate a VMT impact. The 2023-2031 HEU for Sand City proposes to increase residential capacity by adding 147 units across three different sites and underutilized or vacant parcels, as shown in Table 1 and Figure 1.

Vehicle Miles Traveled
State Bill (SB) 743, which was signed into law in 2013, initiated a change in how public agencies evaluate transportation impacts under the California Environmental Quality Act (CEQA).

Traditionally, transportation impacts have been evaluated by examining whether the project is likely to cause automobile delay at intersections and congestion on nearby individual highway segments and whether this delay will exceed local or regionally-defined thresholds of significance (this is known as Level of Service or LOS analysis).

Starting on July 1, 2020, agencies must analyze transportation impacts using a new metric known as vehicle miles traveled (VMT) instead of LOS. VMT is a metric that captures how much auto travel (additional miles driven) a proposed project would create on California roads. If the project adds excessive car travel onto our roads, it may cause a significant transportation impact.

VMT is generally defined as the total miles of travel by personal motorized vehicles a project is expected to generate in a day. VMT is calculated for residential and employment-generating projects using the Origin-Destination VMT method, which measures the full distance of personal motorized vehicle trips with one end within the project. When assessing a residential project, the project’s home-based VMT is divided by the number of residents expected to occupy the project to determine the VMT per capita.

VMT Thresholds
Given that neither Sand City nor the County of Monterey has formally adopted a VMT policy, the general practice is to follow the Governor’s Office of Planning and Research's (OPR) Technical Advisory on Evaluating Transportation Impacts in CEQA. Per OPR’s VMT guidelines, there are several categories of projects that could be presumed to have a less-than-significant VMT impact or be screened out of a VMT analysis. The relevant guidelines are described below:
 Screening Threshold for Small Projects: Projects that generate or attract fewer than 110 trips per day generally may be assumed to cause a less-than-significant transportation impact.

EXHIBIT B
148
Sand City Housing Element Update VMT Analysis March 1, 2024 Page | 2
Figure 1 HEU Site Locations
8 9
3 1
4 10
6 5
7 11
13 12
2 14
= Map Number = APN Boundary
LEGEND
XXx
149
Sand City Housing Element Update VMT Analysis March 1, 2024 Page | 3
Table 1
HEU Site Summary
 Map-Based Screening for Residential Projects: Residential projects that are located in areas with low VMT and that incorporate similar features (i.e., density, mix of uses, transit accessibility) will tend to exhibit similar low VMT and may be screened out of needing to prepare a detailed VMT analysis.

VMT Analysis
Small Projects
Without knowledge of the specific residential development type, Hexagon tested the daily project trip generation based on the land use with the highest trip generation rate to be conservative, which is single-family detached housing according to the Institute of Transportation Engineers’ (ITE) Trip Generation Manual, 11th Edition. As indicated in Table 2, each site is projected to generate more than 110 trips per day, exceeding the OPR's threshold for exemption from conducting a VMT analysis.

Map-Based Screening for Residential Projects
As discussed below and illustrated in Figure 2, given that all areas of the City are located in low VMT areas because the VMT per capita for each TAZ is below the VMT impact threshold of 9.6 VMT per capita, according to OPR guidelines, all HEU sites can be presumed to generate lessthan-significant VMT impacts.

Map # APN Address General
Plan Zoning Acres # of Units
Salvation Army
1 011-186-020-000 801-803 California Avenue MU-D MU-P 0.300 12 City of Sand City Art Park
2 011-196-014-000 502 Ortiz Avenue MU-D MU-P 0.040 6
3 011-196-020-000 No address MU-D MU-P 0.175 6
4 011-196-015-000 No address MU-D MU-P 0.130 4
Subtotal 0.345 16
The Independent, Phase 2
5 011-232-027-000 524 Elder Avenue MU-D MU-P 0.087 4
6 011-232-022-000 525 Elder Avenue MU-D MU-P 0.087 4
7 011-232-021-000 526 Elder Avenue MU-D MU-P 0.087 4
8 011-236-027-000 No address MU-D MU-P 2.727 91
9 011-236-029-000 No address MU-D MU-P 0.216 4
Subtotal 3.204 107
Underutilized
10 011-243-004-000 1793 Catalina Street MU-D MU-P 0.138 2 11 011-237-001-000 1712 Catalina Street MU-D MU-P 0.088 1 Vacant
12 011-238-012-000 No address MU-D MU-P 0.086 3
13 011-238-011-000 No address MU-D MU-P 0.086 3
14 * 011-238-021-000 445 Orange Avenue MU-D MU-P 0.045 3 Subtotal 0.305 12
Total 147
Notes: * Including 2 Accessory Dwelling Units (ADU)
150
Sand City Housing Element Update VMT Analysis March 1, 2024 Page | 4
Figure 2
Home-Based VMT per Capita by TAZ within Sand City under Year 2015 Existing Conditions

= Home-Based VMT per Capita
= TAZ Boundary
LEGEND
x.xXX
0 0

4.5 8.4

8.8 151
Sand City Housing Element Update VMT Analysis March 1, 2024 Page | 5
Table 2
Trip Generation Evaluation
VMT Analysis for Entire HEU Plan
Although all sites are presumed to have a less-than-significant VMT impact, a separate quantitative VMT analysis is conducted to assess the VMT effects of the proposed HEU plan as a whole, assuming the buildout of all sites.

The latest travel demand forecast model that represents travel within the Sand City is the Association of Monterey Bay Area Governments (AMBAG) Tri-County transportation model. This model serves as the primary forecasting tool for the City and is currently the best available analytical tool for VMT evaluations. The model is a mathematical representation of travel within the three counties in the Monterey Bay Region and is mainly composed of four main components: 1) trip generation, 2) trip distribution, 3) mode choice, and 4) trip assignment. The model uses socioeconomic inputs (i.e., households, number of jobs, hotel rooms) to estimate travel within Monterey County, Santa Cruz County, and San Benito County. Socioeconomic inputs are aggregated into geographic areas (transportation analysis zones). The model comprises 1,839 traffic analysis zones (TAZs) representing the three counties, with Sand City being represented by five TAZs.

Metrics and Impact Criteria
Residential (home-based) VMT per capita is the recommended metric to evaluate CEQA-related transportation impacts for residential land uses. As stated in the technical advisory, OPR recommends an impact threshold of 15% below the existing VMT levels for residential developments. OPR allows the existing VMT to be defined as the regional average VMT per capita or the county average VMT per capita. For the purpose of this study, the VMT threshold is defined as 15% below the existing county average.

Based on the AMBAG model, the year 2015 existing county average daily residential VMT per capita is 11.3. Therefore, the VMT impact threshold for the proposed residential developments will be set at 15% below the average, which is 9.6 daily miles traveled (11.3 x 85%), as shown in Table

3. Sand City’s existing residential VMT per capita is 8.6, which is well below the impact threshold. It is thus expected that the HEU units would also generate VMT well below the VMT impact threshold.

The 147 HEU units were analyzed under the year 2015 existing + HEU conditions by adding them to the year 2015 existing scenario of the AMBAG model. The results of the VMT analysis, as shown in Table 3, indicate that the VMT for Sand City as a whole would be 7.3 VMT per capita under the year 2015 + HEU conditions. Therefore, the proposed HEU Plan, at the plan level, would result in a VMT impact that is less than significant.

Site
Name Land Use1 Rate1 Trip >110
Salvation Army #210 - Single-Family Detached Housing 12 Dwelling Units 9.430 113 Yes City of Sand City Art Park #210 - Single-Family Detached Housing 16 Dwelling Units 9.430 151 Yes The Independent, Phase 2 #210 - Single-Family Detached Housing 107 Dwelling Units 9.430 1,009 Yes Underutilized and Vacant #210 - Single-Family Detached Housing 12 Dwelling Units 9.430 113 Yes Total #210 - Single-Family Detached Housing 147 Dwelling Units Notes:
1 ITE Trip Generation Manual, 11th Edition 2021.

Size
Daily
152
Sand City Housing Element Update VMT Analysis March 1, 2024 Page | 6
Table 3
VMT Analysis

Residential VMT per Capita 1
Monterey County Average (Year 2015 Existing) 11.3
Impact Threshold 2 9.6
Sand City
Year 2015 Existing 8.6
Year 2015 Existing + HEU 7.3
VMT Impact? No
Notes:

Data referenced AMABG travel demand model.

1. Residential VMT per capita accounts only for home-based VMT.

2. Neither the Sand City or County of Monterey has adopted VMT thresholds.

This impact threshold is calculated using OPR's technical advisory, which suggested 15% below the regional average. 153

CITY OF SAND CITY
RESOLUTION SC 24-___, 2024

RESOLUTION OF THE CITY COUNCIL OF SAND CITY ADOPTING A GENERAL PLAN AMENDMENT TO REPEAL THE 2015-2023 HOUSING ELEMENT AND ADOPT THE 2023-2031 HOUSING ELEMENT OF THE GENERAL PLAN IN COMPLIANCE

WITH STATE HOUSING ELEMENT LAW
WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Government Code Section 65589.5.); and WHEREAS, the Legislature has further found that “Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration” (Government Code Section 65589.5.); and
WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that “In 2018, California ranked 49th out of the 50 states in housing units per capita…California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years;” and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023- 2031 to accommodate the City of Sand City’s regional housing need allocation (RHNA) of 260 housing units, comprised of 59 very-low income units, 39 low-income units, 49 moderate-income units, and 113 above moderate-income units; and WHEREAS, to comply with State Housing Element Law, the City of Sand City has prepared the 6th Cycle 2023-2031 Housing Element in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and
WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and WHEREAS, as provided in Government Code sections 65352 – 65352.5 the City of Sand City mailed a public notice to California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and WHEREAS, none of the California Native American Tribes requested consultation after being provided with information, including documents, website resources, and notification of public meetings; and
154
WHEREAS, the preparation, adoption, and implementation of the Housing Element requires a diligent effort to include all economic segments of the community; and WHEREAS, the City of Sand City conducted community outreach over the last 20 months including, five City Council meetings; one outreach table at the West End Celebration in August 2023; the May 2023 Sand City Night Market; an online stakeholder survey; distribution of property owner forms with housing element information; and targeted meetings with stakeholders, including the Salvation Army; and one City Council adoption hearing; and
WHEREAS, in accordance with Government Code Section 65585 (b), on May 5, 2023, the City of Sand City posted the draft Housing Element and requested public comment for a 30-day review period from May 5 to June 5, 2023; and WHEREAS, on September 26, 2023, after responding to public comments, the City of Sand City submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on December 21, 2023, the City of Sand City received a letter from HCD providing its findings regarding the draft Housing Element; and WHEREAS, on February 9, 2024, the City of Sand City posted a revised draft Housing Element responding to HCD’s comments and findings for a 7-day public review and comment period from February 9 to February 16, 2024; and WHEREAS, on February 28, 2024, after responding to public comments, the City of Sand City re-submitted the draft Housing Element to the HCD for its review; and WHEREAS, on April 12, 2024, HCD contacted the City of Sand City to discuss the adequacy of the draft Housing Element, and based upon this, City of Sand City revised the draft Housing Element to include additional information and data; and WHEREAS, on April 16, 2024, the City of Sand City posted a revised draft Housing Element responding to HCD’s findings for a 7-day public review and comment period from April 16, 2024 to April 23, 2024; and
WHEREAS, on April 24, 2024, HCD contacted the City of Sand City to discuss the adequacy of the draft Housing Element, and based upon this, City of Sand City rescinded the February 28, 2024 draft submittal and revised the draft Housing Element to include additional information and data; and
WHEREAS, on May 10, 2024, the City of Sand City posted a revised draft Housing Element responding to HCD’s comments and findings for a 7-day public review and comment period from May 10, 2024 to May 17, 2024; and
WHEREAS, on May 20, 2024, after responding to public comments, the City of Sand City re-submitted the draft Housing Element to the HCD for its review; and WHEREAS, on May 24, 2024, the City of Sand City received a letter from HCD stating that the draft Housing Element is in substantial compliance with State Housing Element Law, and will comply with State Housing Element Law when it is adopted; and 155
WHEREAS, on June 4, 2024, the City Council conducted a duly and properly noticed public hearing to take public testimony and consider this Resolution regarding the proposed Housing Element, reviewed the Housing Element and all pertinent maps, documents and exhibits, including HCD’s findings, the City’s response to HCD’s findings, the staff report, and all attachments, and oral and written public comments.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Sand City does hereby find that, based on substantial evidence in the record:

1. The foregoing recitals are true and correct and are incorporated by reference into this action.

2. The Housing Element substantially complies with Housing Element Law, as provided in Government Code 65580 et seq., and contains all provisions required by State Housing Element Law.

3. As required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and Community Development included in the Department’s letter to the City dated December 21, 2023, consistent with Government Code Section 65585(f), the City Council has changed the Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.

4. The 2015-2023 Sand City Housing Element (5th Cycle) is hereby repealed in its entirety, and the 2023-2031 Sand City Housing Element (6th Cycle), as shown in Exhibit A to this Resolution and incorporated herein by reference, is adopted as an amendment to the City of Sand City’s General Plan.

5. This Resolution shall become effective upon adoption by the City Council.

6. The City Manager or designee is hereby directed to file all necessary material with the Department of Housing and Community Development for the Department to find that the Housing Element is in conformance with State Housing Element Law and is further directed and authorized to make all non-substantive changes to the Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by the Department to achieve certification.

7. The City Manager or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.

PASSED AND ADOPTED by the City Council of the City of Sand City this _4th__, day of June, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
156
___________________________
Mary Ann Carbone, Mayor
ATTEST:

DATED: ____________________
___________________________
Kerry Lindstrom, City Clerk
Exhibit A: 2023-2023 Sand City Housing Element
157
HCD Revised Draft
6th Cycle Housing Element Update
(2023-2031)
City of Sand City
May 20, 2024
Prepared by
EMC Planning Group
158
159

CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

REVISED DRAFT
6 TH CYCLE HOUSING ELEMENT UPDATE
(2023-2031)

CITY OF SAND CITY

PREPARED FOR
City of Sand City
Vibeke Norgaard, City Manager
1 Pendergrass Way
Sand City, CA 93955
Tel 831.394.3054
[email protected]

PREPARED BY
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
Anastazia Aziz, AICP, Principal
[email protected]
www.emcplanning.com
May 20, 2024
This document was produced on recycled paper.
160
161
EMC Planning Group Inc.

Table of Contents

1.0 INTRODUCTION.................................................................................................... 1-1

1.1 Introduction ...................................................................................................................... 1-1

1.2 California’s Housing Crisis.............................................................................................. 1-2

1.3 Regional Housing Needs Allocation .............................................................................. 1-3

1.4 Affirmatively Furthering Fair Housing.......................................................................... 1-4

1.5 Overview of Planning Efforts ........................................................................................ 1-7

1.6 Public Participation ........................................................................................................ 1-10

2.0 GOALS, POLICIES, AND PROGRAMS ................................................................... 2-1

2.1 Introduction ...................................................................................................................... 2-1

2.2 What’s New....................................................................................................................... 2-2

2.3 Program Overview and Quantified Objectives............................................................ 2-3

2.4 Goals, Policies, and Programs ........................................................................................ 2-4

3.0 OVERVIEW OF HOUSING NEEDS AND CONSTRAINTS..................................... 3-1

3.1 Introduction ...................................................................................................................... 3-1

3.2 Overview of Housing Needs .......................................................................................... 3-1

3.3 Governmental and Non-Governmental Constraints ................................................ 3-14

4.0 VACANT AND AVAILABLE SITES ........................................................................ 4-1

4.1 Introduction ...................................................................................................................... 4-1

4.2 Regional Housing Needs Allocation .............................................................................. 4-1

4.3 Site Inventory .................................................................................................................... 4-3

4.4 Summary and Conclusions .............................................................................................. 4-3

5.0 ENERGY CONSERVATION................................................................................... 5-1

5.1 Introduction ...................................................................................................................... 5-1

5.2 Opportunities for Energy Conservation ....................................................................... 5-1

5.3 Transit Service................................................................................................................... 5-3 162
EMC Planning Group Inc.

5.4 Pedestrian and Bike Trails ............................................................................................... 5-4

5.5 Housing Element Programs Related to Energy Efficiency and Transit Use ........... 5-5 Appendices
Appendix A Sand City Housing Needs & Fair Housing Report Appendix B Housing Constraints
Appendix C Vacant and Available Sites
Appendix D Review of Previous Housing Element
Appendix E Outreach and Public Participation
Appendix F Stakeholder Survey
Tables
Table 1-1 Regional Housing Needs Allocation ........................................................................... 1-4 Table 2-1 Quantified Objectives................................................................................................... 2-3 Table 3-1 Sand City and Regional Population Growth Trends, 2010-2019 ........................... 3-2 Table 3-2 Population Age Distribution by Jurisdiction, 2019 .................................................. 3-3 Table 3-3 Population by Race by Jurisdiction, 2019 .................................................................. 3-4 Table 3-4 Employment Growth by Jurisdiction, 2015-2040 .................................................... 3-4 Table 3-5 Unemployment Rate, Sand City, 2019........................................................................ 3-5 Table 3-6 Housing Forecast by Jurisdiction, 2015-2045............................................................ 3-5 Table 3-7 Households by Income Category, Sand City, 2019 .................................................. 3-6 Table 3-8 Population with Developmental Disabilities by Age, Sand City & Seaside, 2021................................................................................................................. 3-10 Table 3-9 Vacant Housing Units by Type, Sand City, 2019 .................................................... 3-13 Table 3-10 Housing Permits by Income Group, Sand City, 2015-2021.................................. 3-13 Table 3-11 Housing Affordability, Sand City, 2022 ................................................................... 3-15 Table 3-12 Summary of Governmental Constraints and Programmatic Actions .................. 3-16 Table 3-13 Summary of Non-Governmental Constraints and Programmatic Actions ........ 3-17 Table 4-1 Sand City’s Regional Housing Needs Allocation 2023–2031.................................. 4-2 Table 4-2 Sand City’s Adjusted RHNA ....................................................................................... 4-2 Table 4-3 Vacant/Partially Vacant and Available Sites.............................................................. 4-3 Table 5-1 PG&E Programs and Incentives for Residential Properties ................................... 5-4 Table 5-2 Summary of Energy and Resource Conservation Needs and Programmatic Actions ............................................................................................................................ 5-5 163
Chapter 1.0 – Introduction 1-1 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

1.0 Introduction

1.1 Introduction
Located in Monterey County, situated along the Monterey Bay coastline, the City of Sand City is a uniquely small coastal community. Sand City is located approximately two miles northeast of the City of Monterey and neighbors the City of Seaside. The City has a total area of 2.9 square miles, of which 2.4 square miles are water and only 0.5 square miles (320 acres) is land.

Sand City faces unique challenges when it comes to planning for the future of the community, while also respecting its existing fabric. The City is predominantly a business and retail community characterized by many small lots. Historically, the City has served the Monterey Peninsula as the industrial center, and now also includes a regional retail hub. The availability of large parcels of land has since diminished, adding to the challenge of developing new housing to support the workers of Sand City.

The City also contains both environmentally sensitive habitats and is located partially within the Coastal Zone. As a result, the City is subject to extensive Coastal Commission oversight, via Local Coastal Plan regulations. Development approvals for a significant proportion of the City’s land is subject to appeal by the Coastal Commission. Due to several areas designated as habitat preservation, there are lengthy and expensive processes for development in order to address environmental concerns, as well. Nevertheless, the City has laid the planning entitlement groundwork, in the South of Tioga planning area, to oversee the construction of over 350 new predominantly multi-family units in the 6th Housing Element cycle, a portion of which will be designated as affordable.

The City has not historically been associated with the perception of residential neighborhoods and residential uses. Additionally, the City’s small lot pattern combined with environmentally sensitive habitat has made attracting residential development challenging. This 2023-2031 Housing Element represents the City of Sand City’s intent to plan for the housing needs of the Sand City community while meeting the State’s housing goals as set forth in Article 10.6 of the California Government Code. The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State’s major housing goal. The Sand City Housing Element represents a sincere and creative effort to meet local and regional housing needs within the constraints of a predominantly light industrial and commercial land use base, an environmentally 164
Chapter 1.0 – Introduction 1-2 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 sensitive and coastal zoned area, limited land availability characterized by small lots that would benefit from assembly, and the high costs of land and housing that tend to be a common factor in coastal areas of California.

Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This 6th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the City’s 5th Cycle Housing Element that covered the period 2015 through 2023.

Per State Housing Element law, the document must be periodically updated to:
 Outline the community’s housing production objectives consistent with State and regional growth projections;
 Describe goals, policies and implementation strategies to achieve local housing objectives;  Examine the local need for housing with a focus on special needs populations;  Identify adequate sites for the production of housing serving various income levels;  Analyze potential constraints to new housing production;  Evaluate the Housing Element for consistency with other General Plan elements; and  Evaluate Affirmatively Furthering Fair Housing.

1.2 California’s Housing Crisis
The 6th Cycle Housing Element update comes at a critical time because California is experiencing a housing crisis, and as is the case for all jurisdictions in California, Sand City is committed to playing its part in meeting the growing demand for housing. In the period 2020 through 2045, the Association of Monterey Bay Governments (AMBAG) region is projected to add 36,544 jobs,1 which represents a nine (9) percent increase. These changes will increase demand for housing across all income levels, and if the region can’t identify ways to significantly increase housing production, it risks worsening the burden for existing lower-income households, many of whom don’t have the luxury or skill set to move to a new job center, but that are nonetheless faced with unsustainable increases in housing cost.

If the region becomes less competitive in attracting high-skilled workers and increasingly unaffordable to lower-income workers and seniors, then social and economic segregation will worsen, only exacerbating historic patterns of housing discrimination, racial bias, and segregation.

This potentiality has become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018. SB 686 requires all state and local agencies to explicitly address, 1 Source: AMBAG, November 18, 2022. “Final 2022 Regional Growth Forecast” 165
Chapter 1.0 – Introduction 1-3 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 combat, and relieve disparities resulting from past patterns of housing segregation to foster more inclusive communities. This is commonly referred to as Affirmatively Furthering Fair Housing, or AFFH (more on this below).

In the last Housing Element cycle (2015 to 2023), the City issued six housing permits.2 This was a fraction of Sand City’s Regional Housing Needs Allocation (RHNA), which called for the construction of 55 new housing units. All of the housing built were affordable to households with above moderate income. The City has spent time and effort working through the complex planning entitlement process in the South of Tioga planning area over the last eight years. Given the City’s limited staffing and complicated regulatory environment, limited City resources were directed to successfully entitling the South of Tioga area with planning permits. In an effort to achieve the RHNA goals set for the 6th Cycle, the City has committed to further improvements to the planning entitlement process to streamline and increase the issuance of building permits.

1.3 Regional Housing Needs Allocation
The Final Draft 2022 Regional Growth Forecast Summary forecasts that the Monterey Bay Area will add 32,867 new households between 2020 and 2045. For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing.3 This calculation is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need.

All jurisdictions in the Monterey Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due to changes in state law that led to a considerably higher Regional Housing Needs Determination compared to previous cycles. In April 2022, AMBAG issued its Draft 6th Cycle Regional Housing Needs Allocation Plan. For Sand City, the RHNA to be planned for this cycle is 260 units, a substantial increase from the last cycle and an approximate 141 percent increase over the City’s existing dwelling units. The 6th Cycle RHNA allocation places considerable pressure on jurisdictions across the state, especially cities subject to coastal zoning regulations and environmentally sensitive habitats like Sand City. Additionally, small cities are challenged in identifying adequate sites with limited available land and precarious land use constraints on which to develop.
2 Source: HCD’s APR Dashboard, October 2022.
3 HCD divides the RHNA into the following four income categories:

Very Low income: 0-50% of Area Median Income
Low income: 50-80% of Area Median Income
Moderate income: 80-120% of Area Median Income
Above Moderate income: 120% or more of Area Median Income 166
Chapter 1.0 – Introduction 1-4 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 1-1 shows the Sand City RHNA for the period 2023 through 2031.

Table 1-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low-Income4 <30 29
Very Low-Income <50 30
Low-Income 51-80 39
Moderate-Income 81-120 49
Above Moderate-Income 121 + 113
Total 260
Source: AMBAG, 2022
Per Government Code Section 65583(a), the Housing Element must also provide quantification and analysis of projected housing needs for extremely low-income households. The number of units for the extremely low-income level is not assigned by HCD, but is left for quantification by the local jurisdiction. This calculation is based on the HCD approved methodology,5 assuming that 50 percent of very low-income households qualify as extremely low-income households.

1.4 Affirmatively Furthering Fair Housing
Assembly Bill 686 (AB 686), signed in 2018, established an independent state mandate to affirmatively furthering fair housing (AFFH). AB 686 extends requirements for federal grantees and contractors to “affirmatively further fair housing,” including requirements in the federal Fair Housing Act. This bill extends these requirements to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.

AB 686 requires public agencies to:
 Administer their programs and activities relating to housing and community development in a manner to affirmatively further fair housing;
 Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing;
5 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-lowincome-housing-needs 167
Chapter 1.0 – Introduction 1-5 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Ensure that the program and actions to achieve the goals and objectives of the Housing Element affirmatively further fair housing; and
 Include an assessment of fair housing in the Housing Element.

The requirement to Affirmatively Further Fair Housing (AFFH) is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex—and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively Further Fair Housing and California Assembly Bill 686 (AB 686) (2018) mandate that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.

An AFFH analysis was prepared by EMC Planning Group and is included as an appendix to this Housing Element (see Appendix A).

Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or communities, meaning that groups are unevenly distributed across geographic space. Appendix A of this report examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction and city level segregation between jurisdictions in the Monterey Bay Area.

Neighborhood level segregation (within a jurisdiction, or intra-city): Segregation of race and income groups can occur from neighborhood to neighborhood within a city. For example, if a local jurisdiction has a population that is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents, that jurisdiction would have segregated neighborhoods.

City level segregation (between jurisdictions in a region, or inter-city): Race and income divides also occur between jurisdictions in a region. A region could be very diverse with equal numbers of White, Asian, Black, and Latinx residents, but the region could also be highly segregated with each city comprised solely of one racial group.

There are many factors that have contributed to the generation and maintenance of segregation.

Historically, racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made by federal, state, and local governments (Rothstein 2017).

Segregation patterns are also affected by policies that appear race-neutral, such as land use decisions and the regulation of housing development.
168
Chapter 1.0 – Introduction 1-6 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood services and amenities, parks and playgrounds, clean air and water, and public safety (Trounstine 2015). This generational lack of access for many communities, particularly people of color and lower income residents, has often resulted in poor life outcomes, including lower educational attainment, higher morbidity rates, and higher mortality rates (Chetty and Hendren 2018, Ananat 2011, Burch 2014, Cutler and Glaeser 1997, Sampson 2012, Sharkey 2013).

Segregation Patterns in the Monterey Bay Area
Across the Monterey Bay Area, Hispanic and Black residents are significantly more segregated from other racial groups. The highest levels of racial segregation occur between the Hispanic and White populations. The analysis completed for this report indicates that the amount of racial segregation both within Monterey Bay Area cities and across jurisdictions in the region has slightly increased since the year 2010.

Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies that impact segregation patterns. Land use regulations influence what kind of housing is built in a city or neighborhood (Lens and Monkkonen 2016, Pendall 2000). These land use regulations in turn impact demographics: they can be used to affect the number of houses in a community, the number of people who live in the community, the wealth of the people who live in the community, and where within the community they reside (Trounstine 2018). Given disparities in wealth by race and ethnicity, the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly differentiated across racial and ethnic groups (Bayer, McMillan, and Reuben 2004).6
Regional Segregation
The following are highlights of regional segregation metrics as they apply to Sand City.  Sand City has a higher share of White residents than other jurisdictions in Monterey County as a whole, a lower share of Latinx residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents; and
 Regarding income groups, Sand City has the lowest area median income than other jurisdictions when compared to neighboring jurisdictions, such as: Del Rey Oaks, Pacific Grove, and Seaside.

Local Sand City demographics are reflective of the City’s industrial base. Industrial development began in the 1940’s and ‘50’s in Sand City and business owners, who bought large pieces of property to develop industrial type businesses and some residential uses, were predominantly White.

Businesses established during this time included refuse disposal, sand mining, aggregates distribution, and auto body and repair shops. Sand City incorporated in 1960 in order to maintain 6 For the source data, see U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B19013B, Table B19013D, B19013H, and B19013I.
169
Chapter 1.0 – Introduction 1-7 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 local control of its industrial base and to avoid annexation from other jurisdictions, including Seaside. The City is now transitioning from its industrial past to an inclusive and vibrant arts community.

1.5 Overview of Planning Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.

Effectiveness of Previous Housing Element
The City of Sand City experienced significantly less development than projected in its Quantified Objectives (seven (7) permits issued v. 55 projected); however, major advancements in the planning entitlement process were achieved. Although the City failed to meet its RHNA allocation in every income category during the 5th Cycle, the City anticipates issuing 350+ building permits in the South of Tioga planning area over the course of the 6th Cycle because of the planning entitlement permit groundwork that was achieved over the past eight years. The entitlement of this project to provide housing in Sand City required years of small lot assembly (some with existing businesses that had to be relocated), mitigation for sensitive and endangered species, a lengthy environmental review (CEQA) process, and numerous other mitigations and conditions of approval that needed to be implemented. The site has now been graded and baseline infrastructure, including a public park, sewer, water, roadways, and other utilities been installed creating residential building pads that are ready for construction. This included providing habitat and other required mitigation. The City is continuing the forward development momentum of this area by including programs to revisit the development agreement, reaching out to residential developers, both market rate and non-profit, learning more about financing of affordable projects and obtaining a grant to develop an economic development website including highlighting the South of Tioga development opportunity.

Additionally, the City initiated the development of Objective Design Guidelines to simplify the permitting process.

The goals, objectives, policies, and actions in the 2015 Housing Element complied with State Housing Law and provided proper guidance for housing development in the City and the City directed limited resources to the complex regulatory environment in the South of Tioga planning area. With this 2023 Housing Element update, objectives for each of the goals are modified as appropriate to more specifically respond to the housing environment in Sand City from 2023 to 2031. Policies are also modified as needed to respond to current Housing Element Law and existing and anticipated residential development conditions. See Appendix D for a complete review and analysis of Sand City’s 5th Cycle Housing Element (2015-2023) including an additional focus on the programs related to the South of Tioga and East Dunes areas due to the City’s conditional status. 170
Chapter 1.0 – Introduction 1-8 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 New State Laws Affecting Housing
While the City has taken steps throughout the 5th Cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5th Cycle and during the 6th Cycle, the City will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production citywide.

In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, accessory dwelling unit (ADU) streamlining, and removing local barriers to housing production. The City will implement changes required by State law, likely through amendments to the Sand City Municipal Code. The following is a summary of recent legislation and proposed City activities that will further the City’s efforts to increase housing production during the 6th Cycle. Please see the section above for a discussion of AB 686 (Affirmatively Furthering Fair Housing).

Incentives for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of accessory dwelling units (ADUs), through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The City amended its regulations and procedures to make it easier and less expensive to build ADUs during the 5th Cycle Housing Element by, for example, exempting ADUs from parking requirements and certain fees.

Further changes to Sand City’s ADU regulations are incorporated into the City’s Municipal Code to reflect new legislation. In addition to these actions, the City identified options for incentivizing the construction of more Junior Accessory Dwelling Units (JADU) and ADUs that are available specifically for, and affordable to, lower-income households.

Density Bonus
AB 1763 requires jurisdictions to provide a density bonus to development projects that restrict 100 percent of their units as affordable to lower and moderate-income households. In addition, the City identified further amendments to increase densities and encourage redevelopment of smaller parcels and underutilized sites.

Low-Barrier Navigation Centers
AB 101 requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed uses and in nonresidential zones permitting multifamily uses, if the center meets specified requirements. The City will amend the Zoning Code to comply with state law. 171
Chapter 1.0 – Introduction 1-9 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize state and local surplus lands available for housing development affordable to lower-income households. The City has identified surplus lands through the adequate sites inventory of the 6th Cycle Housing Element and will report on these lands annually through the Housing Element Annual Progress Reports.

Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing production. The City amended their Municipal Code in 2016 to allow permanent supportive housing and transitional housing By Right as a limited use in all zones that allow multifamily housing.

Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished.

Additionally, any demolished units that were occupied by lower-income households must be replaced with new units affordable to households with those same income levels.

Housing and Public Safety
Finally, in response to SB 379 and other recent state legislation, local jurisdictions must update their safety element to comprehensively address climate adaptation and resilience (SB 379 and SB 1035 - 2018) and identify evacuation routes (SB 99 and AB 747). These updates are triggered by the 6th Cycle Housing Element update. This Housing Element contains an evaluation of the existing safety element and contains programming actions to update the safety element to satisfy the new state requirements. Also, as sites are identified and analyzed for inclusion in the City’s housing site inventory, the need for evacuation routes is also a consideration in the selection of sufficient sites. In this way, the City will coordinate updates to all three elements (land-use, housing, and safety), so that it can direct future development into areas that avoid or reduce unreasonable risks while also providing needed housing and maintaining other community planning goals.

Consistency with General Plan
The City of Sand City General Plan was adopted in February 2002 and is comprised of the following elements: 1) Land Use; 2) Circulation and Public Facilities; 3) Housing Element; 4) Conservation and Open Space; and 5) Public Safety and Noise.
172
Chapter 1.0 – Introduction 1-10 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Sand City’s Housing Element is being updated at this time in conformance with the 2023-2031 update cycle for jurisdictions in the Association of Monterey Bay Area Governments (AMBAG) region. The Housing Element builds upon the other General Plan elements and contains policies to ensure that it is consistent with other elements of the General Plan. The 6th Cycle Housing Element includes a program to update the City’s General Plan. The City will ensure that any updates to the Housing Element are checked for consistency against the overall goals and policies of the General Plan, and that other elements within the General Plan are reviewed for internal consistency against the Housing Element. The Annual Report will be used as a gauge to ensure internal consistency between all elements of the General Plan.

1.6 Public Participation
The primary purpose of this chapter is to describe the effort made by the City of Sand City to engage all economic segments of the community (including residents and/or their representatives) in the development and update of the Housing Element. This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from nine Native American tribes that are present and active in Monterey County. It is also responsive to AB 686 (Affirmatively Furthering Fair Housing), which requires local jurisdictions, as they update their Housing Elements, to conduct public outreach to equitably include all stakeholders in the Housing Element public participation program.

The 6th Cycle RHNA numbers are a substantial change for all California communities, and the success of the update process hinges in part on a community outreach and engagement program that is robust, inclusive, and meaningful. The City has a dedicated page on the City’s website where all updates will be provided as well as community engagement opportunities.

The draft Housing Element update has been presented to the community, and throughout the update process, members of the community were urged to review the draft Housing Element and recall the impacts of the last Housing Element cycle to determine the steps needs to develop solutions moving forward. This intention was rooted in allowing the community and decision makers alike to have an equal start at developing the 2023-2031 Housing Element.

The City acknowledges the timeliness required to complete the Housing Element update by the deadline, as well as the limitations of being a very small community that requires local knowledge to provide a comprehensive story of Sand City. As such, the City presents the community with this draft 6th Cycle Housing Element Update as an opportunity to:
 Inform the data with lived experiences;
 Provide local knowledge of factors contributing to housing inequities;  Advise what types of housing are desired; and
173
Chapter 1.0 – Introduction 1-11 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Call to action the programs and policies that should be considered to achieve what the community has envisioned.

For a comprehensive review of outreach, refer to Appendix E – Outreach and Public Participation, which details all public engagement and outreach conducted throughout the 6th Cycle Housing Element Update planning process.

Tribal Consultation
The City has reached out to affected tribes and is ready and prepared to meet to discuss the 6th Cycle Housing Element. Tribal consultation will remain in process throughout the entirety of the Housing Element update.

Public Participation to Affirmatively Further Fair Housing Sand City’s public participation and outreach efforts, throughout the draft Housing Element update, are responsive to Affirmatively Furthering Fair Housing (AFFH), which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the Housing Element public participation program (see the discussion above for more complete information on AFFH).

In an effort to encourage public participation and foster community engagement, the City of Sand City has taken the following steps:
 Conducted an online Stakeholder survey to gather community feedback about the Housing Element Update process, and the types of housing development that the community would like to see occur over the next eight (8) years;
 Created a Public Comment Report to capture the community’s (from all backgrounds and demographics) verbal and written comments in response to the draft Housing Element, and to ensure that community members are aware that their responses would be taken seriously and reflected in further iterations of the draft Housing Element;  Attended the Sand City Night Market (May 5, 2023) in an effort to: answer community questions regarding the Housing Element, review and receive community feedback on the Sites Inventory, gather contact information from community members to keep them informed throughout the Housing Element update;
 Conduct outreach to various community service providers and organizations (see Appendix E for further details); and
 Correspond with representatives from the Salvation Army Good Samaritan Center (in response to stakeholder interest in including affordable units on the site). Currently, the Salvation Army Good Samaritan Center, operates as a day center serving approximately 70-100 homeless and/or ELI families per day, providing services both on and off-site to those in need, including: daily hot meals, food boxes, showers, laundry, and mail services. For further details on this site, refer to Appendix C.
174
Chapter 1.0 – Introduction 1-12 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Public Review of Draft and Final Housing Element
The Public Review Draft was posted on May 5, 2023 and was available for a 30-day review and public comment period. Comments were received on the Public Review Draft in a number of different ways. In an effort to encourage public participation from Sand City residents of all backgrounds, the City used various methods to solicit community feedback, including:
 Gathering written responses during the 30-day public review period;  Gathering verbal feedback from the community at the Sand City Night Market (May 5, 2023) and Sand City West End Celebration (August 26 and 27, 2023);  Conducted an Online Stakeholder Survey; and
 Distributed Property Owner Interest Forms to gauge the level of interest in affordable housing development.

Written Comments
During the 30-day public review period, two written comments were received. Responses to these comments can be found in the Public Comment Report. The Draft Housing Element was amended, as needed, based on the comments received, and the Public Comment Report highlights where changes were been made in the Draft Housing Element to respond to these comments.

Verbal Comments
As required by HCD, the Public Draft Housing Element was available for 30-days of public review from May 5, 2023 to June 5, 2023. The Public Draft Housing Element was posted on the City of Sand City website and the dedicated Housing Element website and two public comments were received. A number of verbal comments were received at the Sand City Night Market on May 5, 2023, and at the Sand City Council meeting on May 16, 2023. Summaries of these comments have been provided in the Public Comment Report (see the Public Comment Report).

The City received comments from the public on a variety of subjects, including: updating the General Plan, establishing expedited permit processing procedures, timeframes for CEQA implementation, among other topics. The Public Comment Report shows the City’s responses to each of the public comments, and the location of revisions within the Housing Element.

Online Stakeholder Survey
An online Stakeholder Survey was posted on May 5, 2023 and remained open through September 30, 2023, or for the entire the HCD Initial draft comment period, whichever is longer. The EMC Planning Group team, on behalf of the City, set up a table at the City’s West End Celebration (August 26 and 27, 2023) and team members encouraged community members and event attendees to fill out the stakeholder survey, and discussed the 6th Cycle Housing Element with many members 175
Chapter 1.0 – Introduction 1-13 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 of the public. The goal of the survey is to better understand community members housing needs and desires, and to solicit community members input on how to achieve the RHNA. The survey responses represent a mix of age groups, income levels, homeowners and renters.

The Stakeholder Survey also helped inform local knowledge of factors contributing to housing inequities in Sand City. In general, contributing factors to housing inequities in Sand City include:
 Limited supply of housing;
 Lack of affordability;
 Lack of mental health facilities;
 Lack of rehabilitation;
 Increased rents and housing shortages; and
 Limited variety of housing options.

To see the survey results and an in-depth discussion of the results, see Appendix F.

Property Owner Interest Forms
Three property owner interest forms were collected. These included a property owner who is interested in developing multi-family housing on their 2.5-acre lot, interest from the Salvation Army who is considering building Transitional Housing Units, and interest from Monterey Peninsula Unified School district in building employee housing.
176
Chapter 1.0 – Introduction 1-14 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
177
Chapter 2.0 – Goals, Policies, and Programs 2-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

2.0 Goals, Policies, and Programs

2.1 Introduction
The City is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. Sand City has endeavored for the past 30+ years to transform itself from being the industrial hub of the Monterey Peninsula into a vibrant pedestrian mixed-use community and the policies and programs listed below continue and build on that effort. To enable the construction of quality housing, the City has identified five goals:

Goal H-1 Build Housing
Goal H-2 Protect Affordable Housing and Improve the Housing Stock Goal H-3 Provide New Affordable and Other Special Needs Housing Goal H-4 Exemplify Sustainable Development and Energy Conservation Goal H-5 Publicize Housing Needs and Resources
The Policies and Programs below are intended to reduce the regulatory barriers to redevelop of these sites and to demonstrate the City is taking measures to ensure a better outcome, namely construction of more units, in the 6th Cycle. The programs listed below are intended to overcome the issues that the small jurisdiction of Sand City faces when trying to attract and facilitate residential development, including, the City’s perception as a predominantly industrial and regional retail hub, the predominance of small lots, and the presence of environmentally sensitive sand dune habitat.

The City’s demographic and housing needs assessment, including contributing factors to housing disparities, also formed an integral part of program development. The majority of Sand City households are renter-occupied households, of which 68 percent are experiencing housing problems. In Sand City, extremely low-income and minority groups experience disproportionate impacts of poverty, increasing the challenge of obtaining adequate housing in the City. Sand City also has significantly lower proportions of racial and ethnic minorities compared to Monterey County and the AMBAG region. The City also has more jobs than housing, and the largest household type is single-person households (48 percent) which reflects a demand for affordable housing units appealing to single-person households.
178
Chapter 2.0 – Goals, Policies, and Programs 2-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Contributing Factors
The following contributing factors that impact fair housing and affirmatively furthering fair housing (AFFH) within the City were identified and prioritized as follows:

High Priority
 Lack of adequate housing stock that meets the needs of residents;  Lack of affordable housing;
 Jobs to housing imbalance;
 Since 2015, there have been seven (7) housing permits in the City of which all are for above moderate-income households;
 There is a lack of developable land, an abundance of small parcels less than half an acre, and a portion of the City is subject to additional Coastal Zone regulations; and
 Lack of racial and ethnic diversity within the City.

Medium Priority
 Lack of access to information about fair housing rights; and  Limited knowledge of fair housing by residents.

More detailed AFFH information is located in Appendix A.

2.2 What’s New
This section provides an overview of significant new policy and program directions being taken by Sand City to address housing issues in the community and the larger Monterey Bay Area.

PRO: Prohousing Community
The first new policy direction being taken by Sand City is the decision to pursue becoming a “Prohousing” community. Last year as part of the 2019-20 Budget Act, AB 101 enacted the Prohousing Designation Program. This program enables the California Department of Housing and Community Development (HCD) to designate jurisdictions throughout the state as Prohousing when they demonstrate policies and planning that accelerate the production of housing. The benefit to jurisdictions receiving the Prohousing designation includes being given preference and, in some cases, additional points, when participating in various state funded programs including the Affordable Housing and Sustainable Communities (AHSC) for disadvantaged communities, and Infill Infrastructure Grant (IIG) programs.

The City’s submittal of an application to HCD to gain Prohousing designation is planned to be concurrent with the preparation and certification of its 6th Cycle Housing Element. Part of that 179
Chapter 2.0 – Goals, Policies, and Programs 2-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 effort includes the housing sites inventory. Policies and programs that support Sand City’s designation by HCD as a Prohousing Community are identified with the letters “PRO”.

MM: “Missing Middle” Housing
The second new policy direction that Sand City leads with this policy chapter is a focused effort to enable “Missing Middle” housing. Missing Middle housing is “a range of house-scale buildings with multiple units—compatible in scale and form with detached single-family homes—located in a walkable neighborhood.” This type of housing is called “Missing” because they have typically not been built since the mid-1940s due to zoning restrictions and financing limitations and “Middle” because they sit in the middle of a spectrum between detached single-family homes and mid-rise to high-rise apartment buildings, in terms of form and scale as well as the number of units and often times affordability (for middle-class residents).

For parcels in Sand City that are non-contiguous and 0.5 acres or smaller, “Missing Middle” could be a viable option to help Sand City achieve its RHNA goals. “Missing Middle” Housing presents a unique opportunity for construction of a wider variety of housing types, which may attract more diversity to the jurisdiction. Policies and programs that support Sand City’s implementation of “Missing Middle” Housing are identified with the letters “MM”.

2.3 Program Overview and Quantified Objectives
Quantified Objectives estimate the number of units likely to be constructed, rehabilitated, or conserved/preserved by income level during the planning period. The Quantified Objectives do not represent a ceiling on development, but rather set a target goal for the jurisdiction to achieve, based on needs, resources, and constraints. These objectives will focus communication between the City and HCD with future Annual Progress Reports (APRs). HCD does not demand that all objectives must be met, rather, it is a goal that enables objective assessments about program effectiveness so that the City may make informed determinations to continue, modify, or delete programs with the next Housing Element update Cycle. Table 2-1, Quantified Objectives, provides an estimate of the number of units likely to be constructed, rehabilitated or conserved/preserved in Sand City.

Table 2-1 Quantified Objectives
Income Category New Construction Rehabilitation* Conservation/Preservation* Very Low 71 1 0
Low 46 2 10
Moderate 56 3 1
Above Moderate 332 5 0
SOURCE: City of Sand City 2023
*NOTE: There are currently no at-risk affordable housing units in Sand City. All Below Market Rate units are deed restricted until 2065. 180
Chapter 2.0 – Goals, Policies, and Programs 2-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

2.4 Goals, Policies, and Programs
The purpose of this section is to set forth goals, policies, and programs to further the development of housing for all income levels in the community and to address the contributing factors listed above that affect segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs.

GOAL H1 BUILD HOUSING
Policy 1.1: Ensure that land is designated for residential densities appropriate to meet the regional housing need.

Policy 1.2: Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of housing.

Policy 1.3: Identify smaller parcels throughout the City for use in constructing affordable housing for very low and low-income residents.

Policy 1.4: Improve Development Review and Approvals Process.

GOAL H2 PROTECT AFFORDABLE HOUSING AND IMPROVE THE

HOUSING STOCK
Policy 2.1: Ensure that new residential developments are adequately served by infrastructure, including water and sewer, park and recreation areas, transportation, public safety and other community services.

Policy 2.2: Ensure that water and sewer providers allocate services on a priority basis to units that meet the City's Regional Housing Needs Allocation.

Policy 2.3: Support the preservation and conservation of existing housing units that provide affordable housing opportunities for City residents and workers.

Policy 2.4: Direct public funding resources to the conservation of existing housing units in neighborhoods where continued residential use is appropriate.

GOAL H3 PROVIDE NEW AFFORDABLE AND OTHER SPECIAL NEEDS

HOUSING
Policy 3.1: Encourage the provision of services and housing for those households with special needs. In Sand City, these households would include the homeless, people or families in transition, seniors and persons with disabilities.

Policy 3.2 Incentivize affordable housing development with an emphasis on affordable housing built to accommodate Very Low and Low-Income residents. 181
Chapter 2.0 – Goals, Policies, and Programs 2-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 GOAL H4 EXEMPLIFY SUSTAINABLE DEVELOPMENT AND ENERGY

CONSERVATION
Policy 4.1: Encourage residential construction that promotes energy conservation.

Policy 4.2: Support diverse transportation modes to reduce automobile use.

GOAL H5 PUBLICIZE HOUSING NEEDS AND RESOURCES
Policy 5.1: Support and market fair housing opportunities and services available to Sand City residents.

Policy 5.2: Develop and utilize all available funding resources in order to provide the maximum amount of affordable housing possible.

GOAL H1 BUILD HOUSING
Programs
Program 1.A Develop the “South of Tioga” area with Multi-Family Residential- PRO The City spent considerable time during the 5th Cycle planning period working on, and ultimately approving, the “South of Tioga” (SOT) development agreement and planning entitlements which involved working with many outside agencies. The City is committed to redeveloping the area known as SOT, as a mixed-use project with a large housing component of 356 units, 12 percent of which are affordable units. The City will expedite design review and building permits for residential uses by continuing to contract with outside firms that specialize in providing municipal planning permit services and processing multi-family residential building permits. Additionally, the City is actively conducting outreach to housing developers, both market rate and affordable, in an effort to secure the development of housing in this area.

If by December 2028 the City has not received building permits for SOT, the City will consider alternative land use strategies and make necessary amendments to zoning or other land use documents to facilitate the development of residential units, if necessary, including identifying additional sites within a year.

Implementation Policies: Policy 1.1; 1.2; 3.1; 4.1
Responsible Department: Planning Department
Timeframe: Complete by June 2031
Funding Source: General Fund, developer
Quantified Objective: Construct 9 very-low; 7 low; 26 moderate; and 314 above moderate for a total of 356 dwelling units
Performance Metric(s): Number of units constructed
(Formerly Program 4.1.1.A)
182
Chapter 2.0 – Goals, Policies, and Programs 2-6 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 1.B Amend the City’s Zoning Ordinance to comply with new State Density Bonus laws and include 10 percent density bonus - PRO
State law requires jurisdictions to provide density bonuses and development incentives to all developers who propose to construct affordable housing on a sliding scale, where the amount of density bonus and number of incentives vary according to the amount of affordable housing units provided. Specifically, state law requires the provision of total units to be affordable to lower- and moderate-income households. The City will update the Density Bonus Ordinance to reflect recent changes in State law. These include:
 AB 2556: Clarifies the replacement requirements as established by AB 2222. (2022);  AB 2345: Revised the requirements for receiving concessions and incentives, and the maximum density bonus provided from 35 percent to 50 percent. (2020);  AB 1763: Density bonus and increased incentives for 100 percent affordable housing projects for lower income households. (2019);
 AB 1227: Density bonus for student housing development for students enrolled at a full-time college, and to establish prioritization for students experiencing homelessness. (2018);  AB 2501: Makes changes to: the timeline for processing application for a density bonus; electing to accept no density increase; and determining the value of concessions and incentives. (9/2016);  AB 2442: Requires a density bonus be granted for a housing development if applicant agrees to construct housing for transitional foster youth, disabled veterans, or homeless person. (9/2016); and
 AB 1934: Provides a density bonus to a commercial development if the developer enters into an agreement for partnered housing, either as a joint project or two separate projects encompassing affordable housing. (9/2016).

The City recognizes that increasing the density above the current State law thresholds will encourage maximizing the use of property for residential units and increase overall unit count. In order to further encourage residential construction, the City will also amend the zoning ordinance to increase the allowed density by 10 percent as a Prohousing measure.

Implementation Policies: Policy 1.1; 1.2; 3.1; 3.2
Responsible Department: Planning Department
Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: Amendment of the Zoning Ordinance Performance Metric(s): Number of additional units constructed with density bonus (NEW)
183
Chapter 2.0 – Goals, Policies, and Programs 2-7 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 1.C West End Housing Diversity Overlay - PRO
The City will continue to encourage diverse and innovative housing design and “smart growth” strategies through its Mixed-Use and Planned Unit MU-P zoning district. Currently, development standards are unclear or overly regulatory, including but not limited to: discretionary setbacks, a Conditional Use permit requirement for all multi-family developments and to increase height from 60 ft to 85 ft; and a complex local density bonus. In order to further catalyze new development, the City will create an Overlay that will supersede requirements for the underlying zoning district within the West End (see section 18.13.060).

Following are the General Overlay incentives:

1. Apply the MU-P incremental density bonus dependent on lot size, as a single standard that grants to MU-P lots of any size a 250 percent density bonus (81 dwelling units/acre). By doing so, the potential number of units will be significantly increased and will function to incentivize redevelopment of underutilized properties into multi-family and mixed-use housing;

2. Assistance with lot consolidation;

3. Discretionary setbacks shall be eliminated and replaced with specific setback dimensions, including reducing front and side setbacks to zero to encourage a variety of multi-family housing types including townhomes and apartments per Government Code Section 65583 and 65583.2 (see Program 1.G for ODS);

4. By-right non-discretionary approval process for multi-family, mixed use and planned unit development projects (housing projects) in the following circumstances: A) Housing projects with four (4) or fewer units, or B) Housing projects with five (5) or more where at least 15% of the units are affordable to lower income households. This will simplify the permitting process, reduce fees and potential permit appeals. By Right means a jurisdiction shall not require:
a. Conditional Use Permit;
b. Planned Unit Development Permit;
c. Design review, other than Objective Development Design Standards; or d. Other discretionary, local government review or approval that would constitute a “project” as defined in Section 2100 of the Public Resources Code (California Environmental Quality Act “CEQA”).

5. Reduced or eliminate parking standards for developments that include affordable senior, disabled housing units or for units within half a mile of a major transit stop according to Government Code Sections 65585 and 65863.2.

Implementation Policies: Policy 1.1; 1.2; 3.1; 4.1
Responsible Department: Planning Department
184
Chapter 2.0 – Goals, Policies, and Programs 2-8 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Timeframe: Amendment December 2024;
Funding Source: General Fund
Quantified Objective: Construct 100 units in mixed-use and PUD areas Performance Metric(s): # of units constructed in mixed-use and PUD areas (Formerly Program 4.1.1.B)
Program 1.D Minimum Density 20 Dwelling Units per Acre for Selected Sites – PRO, MM This program is intended to encourage the redevelopment of selected sites within the sites inventory with a minimum density of 20 dwelling units per acre (du/ac) to increase residential units. The City will set minimum densities of 20 du/ac to encourage a higher multi-family unit yield and allow housing development projects up to 85 feet by-right by eliminating Conditional Use permit requirements for proposed projects that are consistent with the General Plan and zoning district.

Implementation Policies: Policy 1.1; 1.2; 3.1; 4.1
Responsible Department: City Staff and Council
Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: Amended zoning ordinance
Performance Metric(s): # of units built in MU-P zoning district (NEW)
Program 1.E Update the General Plan – PRO, MM
Local ordinances and policies are enacted to protect the health and safety of citizens and further the general welfare. The City’s adopted 2002 General Plan has a 2017 planning horizon and the document represents the policy direction of the 2002 City Council on community values, ideals and aspirations to govern a shared environment through 2017. The housing environment has changed dramatically since 2002 with land prices, development costs, and housing costs significantly more costly and constrained.

Given the age of the General Plan and the changes in the community and region since the Plan’s adoption, the City will update the General Plan which currently has lower densities than the Zoning Ordinance. Densities, as well as height limits, parking and allowed uses will all be updated to stimulate housing production including and not limited to increasing allowable residential densities.

The City of Sand City will conduct an internal consistency review of the General Plan as part of the annual General Plan implementation report required by Government Code section 65400. The City will ensure that any updates to the Housing Element are checked for consistency against the overall 185
Chapter 2.0 – Goals, Policies, and Programs 2-9 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 goals and policies of the General Plan, and that other elements within the General Plan are reviewed for internal consistency against the Housing Element. The Annual Report will be used as a gauge to ensure internal consistency between all elements of the General Plan.

Implementation Policies: Policy 1.1; 1.2; 3.1; 4.1
Responsible Department: City Staff and Council
Timeframe: Initiate update July 2024
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): N/A
(NEW)
Program 1.F Adequate Land Inventory – PRO, MM
The purpose of the land inventory is to identify specific sites that are suitable for residential development in order to compare the local government’s regional housing needs allocation (RHNA) with its residential development capacity. The City will continue to provide an inventory of land at appropriate zoning designations that will accommodate the Regional Housing Need as identified in this document. The current inventory accommodates a potential 511 units with vacant, underutilized and pipeline sites, which represents 197 percent of the RHNA and positions the City as Prohousing eligible.

The Planning Department shall annually evaluate and report to the City Council on the City’s progress in meeting its Housing Element objectives and submit the Annual Progress Report (APR) to HCD, as well as remain in compliance with the no-net loss requirements of Government Code Section 65863.

Implementation Policies: Policy 1.1; 1.2; 3.1
Responsible Department: Planning Department
Timeframe: Review annually in March
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): N/A
(Formerly Program 4.1.3.A)

Program 1.G Objective Design Standards- PRO
Sand City’s design guidelines date from 2001 and the City’s Vibrancy Plan references another specific set of design guidelines for the West End neighborhood. The current West End Design Guidelines include many objective standards but are older, and like the 2001 design guidelines, 186
Chapter 2.0 – Goals, Policies, and Programs 2-10 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 should be reviewed and updated given the age of the document and recent state legislation surrounding design guidelines. The lack of recent Objective Design Standards (ODS) poses a constraint to residential development. Guidelines that are overly subjective and/or out of date increase uncertainty and risk for housing developers. Objective Design Standards provide a measure of clarity that proposed developments will be measured against, and provide the community with assurance that developments will conform with measurable objective standards.

To ensure objectivity in reviewing multi-family residential developments, the City will develop and adopt ODS for multi-family developments in the West End District, including the South of Tioga area. The City has recently begun the process of developing ODS for multi-family developments, which will be reviewed by the Design Review Committee and receive public input through a community workshop prior to City Council review and adoption. Objective design standards are currently underway and scheduled for City Council adoption in Summer 2024.

Implementation Policies: Policy 1.2; 1.4; 3.1; 3.2
Responsible Department: City Staff and Council
Timeframe: December 2024
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Adopted document
(NEW)
Program 1.H Habitat Management Plan - PRO
The presence of environmentally sensitive habitat area presents a significant government constraint on the production of housing in Sand City. A Habitat Management Plan is a guide that facilitates appropriate development in sensitive areas by protecting and enhancing existing habitat in addition to creating new habitats in appropriate areas, and directing development to places that do not impact sensitive areas. An adopted Habitat Management Plan provides more certainty to residential developers by completing the necessary biological studies and surveys and identifying areas for development.

The City will initiate a Habitat Management Plan to provide programmatic incidental take permits for applicable properties identified in the Sites Inventory and the East Dunes area. Additionally, the City will work with the Seaside County Sanitation District and Monterey One Water to facilitate sewer service to the East Dunes area so it is developable in the next housing cycle.

The City will also pursue funding and other opportunities to secure and expand additional sewer capacity in the East Dunes area. The City will dedicate time and resources to this at least every three years during the planning period.
187
Chapter 2.0 – Goals, Policies, and Programs 2-11 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Implementation Policies: Policy 1.2; 1.3; 1.4; 3.1
Responsible Department: City Staff and Council
Timeframe: Pursue funding and other opportunities to secure and expand additional sewer capacity at least every three years during planning period; Initiate Habitat Management Plan by June 2028
Facilitation of sewer service to East Dunes area by December 2031 Funding Source: General Fund
Quantified Objective: Facilitate new unit construction through removal of regulatory requirements for individual projects
Performance Metric(s): Number of new units constructed; # of new lots and subdivisions (NEW)
Program 1.I California Housing Opportunity and More Efficiency (HOME) Act – SB 9 SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit on parcels zoned for singledwelling units. The City will codify SB 9 regulations to facilitate new construction. Codifying the regulations to allow new residential construction on all lots created under SB 9 with the same or similar development standards as the existing City Zoning districts provides a clear process and parity with existing lots.

Implementation Policies: Policy 1.2; 1.4; 3.1
Responsible Department: City Staff and Council
Timeframe: June 2026
Funding Source: General Fund
Quantified Objective: 10 units
Performance Metric(s): Number of new units constructed; # of new lots and subdivisions (NEW)

Program 1.J Reduce Minimum Parking Standards - PRO
Excessive parking standards that are not reflective of actual parking demand can pose a significant constraint to housing development by increasing development costs and reducing the potential land available for project amenities or additional units. The City’s West End Parking Plan is nearing completion and is anticipated to come before City Council in late 2023 for adoption. The draft Plan recommends shared, maximum and reduced parking for residential uses to further encourage the development of residential units. Upon adoption, the City will update parking regulations to reflect the West End Parking Plan recommendations.
188
Chapter 2.0 – Goals, Policies, and Programs 2-12 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Additionally, the Monterey Salinas Transit (MST) Sand City station meets the definition of a “major transit stop.” The Municipal Code parking regulations shall be amended to comply with Government Code Section 65863.2 that governs minimum parking standards within half a mile of a major transit stop and eliminates parking minimum parking requirements with certain exceptions.

Implementation Policies: Policy 1.2; 1.4; 3.1; 3.2
Responsible Department: Planning Department
Timeframe: December 2025
Funding Source: General Fund; Private Developer; Property Owners Quantified Objective: Adopted West End Parking Plan
Performance Metric(s): Amended parking regulations
(NEW)
Program 1.K Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Program – PRO, MM
Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs) provide affordable housing options for family members, seniors, students, and other small household types. In 2023, the State implemented several new provisions under the ADU law. The City will update its ADU ordinance to comply with State law and continue to implement the development of ADUs through a ministerial process in conformance with State law. Additionally, the City will promote the development of JADUs through additional outreach at City events and a dedicated webpage to both JADUs and ADUs. JADUs are generally affordable to construct, lend themselves well to lower income property owners as a means of supplemental income, and are an affordable form of rental housing.

Sand City will also promote Habitat for Humanity Monterey Bay’s ADU financing program for lowincome property owners. The City will develop guidance materials and create a Frequently Asked Questions webpage. The City will also amend the zoning ordinance to allow new ADU square footage construction in commercial zoning districts to further encourage ADU development.

Implementation Policies: Policy 1.1; 1.2; 1.4; 3.1; 3.2 Responsible Department: Planning Department & City Council Timeframe: December 2024
Funding Source: General Fund
Quantified Objective: 15 units
Performance Metric(s): Number of second dwelling units constructed (Formerly Program 4.1.3.B)
189
Chapter 2.0 – Goals, Policies, and Programs 2-13 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 1.L Universal Design - Encourage Accessible Housing for Persons with Disabilities - PRO
Universal Design allows for new construction and home modifications that enhance the full life cycle use of housing in order to accommodate a wide range of physical abilities or disabilities of a home’s occupants. This is particularly relevant to seniors and allows residents to age in place and remain in a particular unit for a longer period of time. Sand City’s demographics show the City’s aging trend and suggests a demand for housing geared toward middle aged to senior groups.

The City will adopt an ordinance to allow for Universal Design elements that address limited lifting (e.g. roll-in showers and grab bars), limited mobility (e.g. push/pull lever faucets, wide swing hinges) and limited vision (e.g. additional stairwell and task lighting) pursuant to Health and Safety Code section 17959, at the next International Building Code Update Adoption.

Implementation Policies: Policy 1.2; 1.4; 3.1
Responsible Department: Planning Department
Timeframe: December 2025
Funding Source: General Fund; Private Developer; Property Owners Quantified Objective: 30 units by 2031
Performance Metric(s): Adopted universal design ordinance (Formerly Program 4.4.1.D)
Program 1.M “Missing Middle” Housing – MM & PRO
Missing middle types of housing sit in the middle of the housing spectrum between single-family detached homes and mid-rise to high-rise apartment buildings. For parcels in Sand City that are noncontiguous and 0.5 acres or smaller, missing middle housing presents a viable opportunity.

The City will review legislation to develop affordable housing on parcels that are non-contiguous and smaller than 0.50 acre. In order to lower development costs and encourage the development of smaller missing middle units, the City will reduce the parking requirements for studio and onebedroom apartments to 1.0 space per unit and the City will also promote SB 9.

Implementation Policies: Policy 1.2; 1.3; 1.4; 3.1
Responsible Department: Planning Department
Timeframe: December 2025
Funding Source: General Fund
Quantified Objective: Identify parcels for missing middle housing; construct new units Performance Metric(s): # of parcels selected for development; # of new units constructed (NEW)
190
Chapter 2.0 – Goals, Policies, and Programs 2-14 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 1.N Small Sites Lot Consolidation - PRO
To achieve financial feasibility, many housing developments using state or federal resources have between 50 to 150 units and are between 0.5 -10 acres. Parcels that are too small, less than 0.5 acres, may not support the number of units necessary to be competitive and to access scarce funding resources.

To ensure that there is a sufficient supply of appropriately sized multi-family zoned land to meet the City’s regional housing needs allocation (RHNA), the City will continue to facilitate and encourage lot consolidations to combine small residential lots into larger developable lots to accommodate affordable housing units. As developers/owners approach the City interested in lot consolidation for the development of affordable housing, the City will offer the following incentives:
 Eliminate the Conditional Use permit requirement; and  Reduce setbacks and, in zoning districts that contain discretionary standards, implement clear objective design standards.

Additionally, to improve permit processing for small lots the City will offer:
 Reduced fees; and
 Concurrent/fast tracking of project application reviews for developers who provide affordable housing that include lot consolidation.

The City will also evaluate the most cost-effective way to market their incentives programs to developers.

Implementation Policies: Policy 1.3; 1.4; 3.1
Responsible Department: Planning Department
Timeframe: Annually; ongoing
Funding Source: General Fund
Quantified Objective: 50 units
Performance Metric(s): Number of affordable new units constructed (Formerly Program 4.1.3.C)

Program 1.O Update Permit Database - PRO
Processing permits efficiently and increasing public access to permitting information increases certainty in the development of a project. Databases can form a critical component to accurately track and record permit approval on a property. The City currently uses the iWorq database to track building permits; however, the information is not easily accessible to the public. Valuable limited staff time is used responding to calls about individual project activity. A database that clearly shows pertinent information to the public increases staff capacity for other critical tasks related to housing development and increases City accountability.
191
Chapter 2.0 – Goals, Policies, and Programs 2-15 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The City will update the iWorq database to include permit information on the City’s website.

Additionally, the database will be augmented to track affordable units.

Implementation Policies: Policy 1.4; 3.1
Responsible Department: Planning Department
Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): New database fields and website visibility (NEW)
Program 1.P Clarify permit processing - PRO
Processing and permit procedures can pose a considerable constraint to the production and improvement of housing. Unclear permitting procedures add uncertainty in the development of the project, and increase overall financial risk assumed by the developer.

The Zoning Ordinance Chapter 18.76 references a variety of permit types and advisory and decision-making bodies. The regulations will be updated to simplify and clarify both the required permit type(s) for multi-family residential uses and the recommending and decision-making authorities, with the goal to minimize the levels of review and establish a permit process that takes four months or less for those projects consistent with the General Plan and zoning regulations.

Additionally, the City will develop an associated easy to read handout that clearly illustrates the process and develop a universal application for planning permits. The City will also add language to the zoning ordinance to clarify that sites which are substandard in size are buildable.

Implementation Policies: Policy 1.4; 2.1; 2.2; 3.1; 3.2 Responsible Department: Planning Department
Timeframe: June 2026
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Updated Planning entitlement and Application Procedures (NEW)
Program 1.Q Contract out permit review and establish one single point of contact - PRO In an effort to further improve service and responsiveness, the City recently contracted with consulting firms to provide planning and building permitting services. There is one point of contact at the City for planning permits and one for building permits. Given the City’s small size and limited in-house contract staffing, permit review for large housing planning entitlement and building permit 192
Chapter 2.0 – Goals, Policies, and Programs 2-16 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 applications are referred out to the contracted firms additional staff in order to expedite multi-family housing applications. This methodology of staffing the City has significantly increased the level of service and permit processing, and the City will continue to implement this program as a means to facilitate residential development at all income levels in order to meet the RHNA.

Implementation Policies: Policy 1.4; 3.1; 4.1
Responsible Department: Planning Department
Timeframe: Mid-cycle review (June 2027); June 2031
Funding Source: General Fund
Quantified Objective: 200 permits processed
Performance Metric(s): Reduced approval Timeframes
(NEW)
Program 1.R Prepare Checklist and Procedures for SB 35 and SB 330 Government Code section 65913.4 allows qualifying development projects with a specified proportion of affordable housing units to move more quickly through the local government review process and restricts the ability of local governments to reject these proposals.

The City will create a SB 35 checklist and written procedures for processing SB 35 applications to ensure efficient and complete application processing and will update the documents in conformance with any changes to state law within twelve months of adoption of new laws. Additionally, the City will develop an application for SB 330 in conformance with State law.

Implementation Policy: Policy 1.4; 3.1; 4.1
Responsible Party: Community Planning and Building Department Timeframe: June 2025 and within 12 months of any change to the law that would impact the City
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Reduced approval Timeframes
(NEW)
Program 1.S Changes to the Zoning Code
In addition to the programs listed above, and in an effort to increase housing development for all income categories towards meeting RHNA goals, the City of Sand City will amend the Zoning Code to do the following:
 Permit mobile and manufactured housing in all zones, including the R-2 and R-3 zones, where single-family residential is allowed, in compliance with Government Code Section 65852.3(a); 193
Chapter 2.0 – Goals, Policies, and Programs 2-17 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Integrate findings of approval for Conditional Use Permits (see Appendix B), and remove the CUP requirements from multifamily zoning districts;
 In compliance with State requirements and the Employee Housing Act, the City of Sand City will amend the Zoning Code to include a definition for employee housing that permits employee housing for six or fewer employees to be treated as a single- family structure and permitted in the same manner as other dwellings within the R-1, R-2, and R-3 zoning districts;  Permit Low Barrier Navigation Centers as a use by-right in zones where mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65660 (zones R-3, MU-P, CZ-R-3, CZ MU-P, CZ-EDA). See Program 3.E for further details;
 Permit transitional and supportive housing in all zones allowing residential uses and only subject to the requirements of other residential uses of the same type in the same zone (R-1, R-2, R-3, M, PUD, MU-P, PF, CZ R-2, CZ R-3, CZ VS R-2, CZ MU-P, CZ-EDA) pursuant to Government Code section 65583(a)(5);
 Permit supportive housing as a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651;
 Increase height standards for residential development in the R-3 zone to permit a maximum of 40 feet (four stories); and
 Provide secure bicycle and electric Bicycle storage (see program 4.C for further details).

Implementation Policy: Policy 1.1; 1.2; 1.3
Responsible Party: Community Planning and Building Department Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Reduced approval Timeframes
(NEW)
GOAL H2 PROTECT AFFORDABLE HOUSING AND IMPROVE HOUISNG
STOCK
Programs
Program 2.A Capital Improvement Program - PRO
Onsite/offsite improvement standards establish infrastructure or site requirements to support new residential development such as streets, sidewalks, water and sewer, drainage, curbs and gutters, 194
Chapter 2.0 – Goals, Policies, and Programs 2-18 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 street signs, park dedications, utility easements, and landscaping. While these improvements are necessary to ensure that new housing meets the local jurisdiction’s development goals, the cost of these requirements can represent a significant share of the cost of producing new housing.

Such requirements can reasonably be considered regulatory barriers to affordable housing if the jurisdiction-determined requirements are greater (and hence, more costly) than those necessary to achieve health and safety requirements in the community.

The City will continue to implement its Five-Year Capital Improvement Program (CIP) and continue budgeting revenues into the capital improvement budget to improve streets, sidewalks, storm drainage, wastewater and water lines within the West End area. Additionally, the City will apply for funding and prioritize the CIP to pursue a variety of place-based strategies, including but not limited to, parks, streetscapes, public improvements, and other community amenities. The City will also continue current improvements, including Calabrese Park, South of Tioga Park, and the City’s Annual Mural Festival, which anticipates adding two new murals in 2024.

Implementation Policies: Policy 2.1; 2.2; 3.1
Responsible Department: City Engineer; Planning Department Timeframe: Ongoing; review and prioritize CIP annually; apply three to four times for grant funding annually
Funding Source: CDBG; other funds as available and received Geographic Target: West End District and throughout the city Quantified Objective: One to two improvements per year
Performance Metric(s): N/A
(Formerly Program 4.1.2.A)
Program 2.B Water and Sewer Providers and City Water Distribution Policy - PRO Per Chapter 727, Statues of 2004 (SB 1087), upon completion of an amended or adopted Housing Element, a local government is responsible for immediately distributing a copy of the Housing Element to area water and sewer providers. In addition, water and sewer providers must grant priority for service allocations to proposed developments that include housing units affordable to lower-income households. Chapter 727 was enacted to improve the effectiveness of the law in facilitating housing development for lower-income families and workers.

The City will provide water and sewer providers with the City’s adopted Housing Element. As provided in California Government Code Section 65589.7, water and sewer providers shall grant a priority to proposed developments which meet the City’s Regional Housing Need goals. The City’s own water desalination facility was designed to provide sufficient water for all segments of the housing market.
195
Chapter 2.0 – Goals, Policies, and Programs 2-19 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The City will develop a water distribution policy to ensure water allocations are directed to units that will meet the City’s Regional Housing Needs along with continued operation of the City’s desalination facility.

Implementation Policies: Policy 2.2; 3.1
Responsible Department: Planning Department; Water Providers Timeframe: Upon certification – provide adopted Housing Element to water and sewer providers
December 2025 – Develop Water Distribution Policy
Funding Source: General fund
Quantified Objective: N/A
Performance Metric(s): N/A
(Formerly Program 4.2.2.A)

Program 2.C Conservation and Preservation of existing units Through enforcement of local codes, the City will ensure that all existing units meet basic health and safety requirements. In residential neighborhoods the City will proactively provide information and assistance to owners of units that are in need of repair or rehabilitation. Examples of program assistance include weatherization grants (PG&E, State LIHEAP, local community action agency, etc.), home paint fix-up programs, and housing rehabilitation assistance including Permanent Local Housing Allocation grant funds.

The City will dedicate resources to ensure this information regarding the availability of these resources is affirmatively marketed by doing the following:
 Post information on the City’s website;
 Provide written marketing information describing the resources available to community groups and organizations that represent lower-income households at City Hall and through a variety of other methods throughout the City (E.g.: monthly Art Park Night Market and Annual West End Celebration);
 Distribute maintenance program information directly to property owners via direct mail; and  Distribute maintenance program materials directly to community groups and organizations, including the Salvation Army Day Center that serves extremely-low- and low-income families.

Additionally, the City will monitor the 11 existing affordable units that have protective covenants in place. These units are located at 600 Ortiz Avenue, The Independent, Phase 1. Ten (10) of the units have protective covenants in place until 2063 and one (1) unit has a 12-year protective covenant in place that expires in 2032.
196
Chapter 2.0 – Goals, Policies, and Programs 2-20 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Implementation Policies: Policy 2.3; 5.1
Responsible Department: Planning and Building Departments Timeframe: Ongoing; review annually
Geographic Target: West End District and throughout the city Funding Source: State HOME Funds
Quantified Objective: 11 deed-restricted units (10 low-income and 1 moderate income units) Performance Metric(s): N/A
(Formerly Program 4.3.2.A)
Program 2.D Replacement Unit Program
Sand City will adopt a policy and will require replacement housing units subject to the requirements of Government Code section 65915, subdivision (c)(3) on sites identified in the site inventory when any new development (residential, mixed-use, or nonresidential) occurs on a site that is identified in the inventory meeting the following conditions:
 Currently has residential uses or within the past 5 years has had residential uses that have been vacated or demolished;
 Was subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low-income;
 Subject to any other form of rent or price control through a public entity’s valid exercise of its police power; and/or
 Occupied by low or very low-income households.

Implementation Policies: Policy 2.3; 2.4
Responsible Department: Planning and Building Departments Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: No loss of housing units
Performance Metric(s): N/A
(NEW)
197
Chapter 2.0 – Goals, Policies, and Programs 2-21 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 GOAL H3 PROVIDE NEW AFFORDABLE AND SPECIAL NEEDS HOUSING Programs
Program 3.A Support the County of Monterey’s Homeless Continuum of Care Plan The City will continue to support housing opportunities for homeless individuals and families as provided in the County of Monterey’s Homeless Continuum of Care plan, including emergency shelters, transitional housing and permanent affordable housing.

The City will improve outreach by:
 Augmenting the Housing page on website with links to County programs and contacts;  Distribute flyers at local events including the West End celebration; and  Support and partner with the Salvation Army Day Center facility.

Implementation Policies: Policy 3.1; 5.1
Responsible Department: Planning Department; City Manager Timeframe: Ongoing
Funding Source: General Fund (Regional Homeless Coalition Support Funds); CDBG Quantified Objective: 25
Performance Metric(s): Number of Housing webpage views, number of brochures distributed. (Formerly Program 4.4.1.A)
Program 3.B Homeless and Extremely Low Income: Support for Day Center Facility and transitional housing
The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 20 extremely low-income (ELI) households (14 percent of total households) in Sand City. The existing Salvation Army operated day center facility serves 70-100 homeless and/or ELI families per day. The Center provides showers, laundry, caseworker services, food distribution, a small library, meeting space for service providers, and large indoor space to sit and eat and access services. At least once per month Valley Health Associates visits the center with a mobile truck to offer medical and mental health services. The facility caseworkers work with families and place families in transitional housing as it becomes available. The facility not only serves a local Sand City need, but also a wider regional need.

The City will continue to support the provision of services at the day center facility for homeless and extremely low-income individuals as currently provided by the Salvation Army. Additionally, the City will work with non-profit affordable housing developers to encourage the development of transitional and supportive housing on the site (#1).
198
Chapter 2.0 – Goals, Policies, and Programs 2-22 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 If the City has not received a building permit to develop transitional housing by mid-cycle, the City will rezone the site to MU-P to facilitate development of transitional and ELI housing on the site.

Implementation Policies: Policy 3.1; 5.1
Responsible Department: Planning Department; City Manager Timeframe: Pursue rezone Site #1 from M to MU-P by June 2027 Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): N/A
(Formerly Program 4.4.1.B)
Program 3.C Senior and disabled: Support and market opportunities to house seniors and disabled residents including reasonable accommodation procedures Seniors are identified as individuals 65 years and older and often experience a combination of factors that can make accessing or keeping affordable housing a challenge. Approximately 11 percent of Sand City’s population are seniors, 25 percent of whom earn less that the City’s median household income that would benefit from Countywide programs.

The City will continue to support and market the efforts of local nonprofit agencies that provide direct housing assistance to senior and disabled individuals. The City will prioritize Pro-housing developments that include units for seniors and disabled people.

In an effort to increase outreach on both housing opportunities and reasonable accommodation procedures, the City will affirmatively market these items by:
 Posting information on the City website;
 Providing materials at City Hall;
 Directing mail information to residents;
 Distributing information at City events like the West End celebration; and  Working with local nonprofits include the Salvation Army Day Center.

Implementation Policies: Policy 3.1; 5.1
Responsible Department: Planning Department; City Manager Timeframe: Host an annual workshop and disseminate information on an ongoing basis Funding Source: General Fund; CDBG
Quantified Objective: 25 individuals
Performance Metric(s): Count number of referrals
(Formerly Program 4.4.1.C & L)
199
Chapter 2.0 – Goals, Policies, and Programs 2-23 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 3.D Emergency Shelters
In 2023, AB 2339 was amended to expand the definition of emergency shelters to include other interim interventions, including but not limited to, navigation centers, bridge housing, and respite or recuperative care. In compliance with AB 2339, the City will amend the Municipal Code definition of emergency shelters.

According to Government Code Section 65583(a)(7), regardless of the need, at a minimum, all jurisdictions must have a zone in place to permit at least one year-round emergency shelter without a conditional use permit or any discretionary permit requirements. According to the 2022 Monterey Homeless Count and Survey Comprehensive Report prepared by Applied Survey Research, there are three (3) unsheltered homeless people living in Sand City. In 2010 the City identified the Public Facilities (PF) Zone to permit emergency shelters. However, both a design and site permit are required for construction in the Public Facilities (PF) Zoning districts where emergency shelters are a permitted use.

To comply with State law and to enable the development of emergency shelters in the PF Zone, the City will amend the Municipal Code to do the following:
 Remove design permit requirements for emergency shelters. However, the site permit requirement will remain in place because of the objective nature of site permit requirements such as height regulations and the City’s undertaking of Objective Design Standards; and  Establish parking requirements for emergency shelters in the PF Zone consistent with AB 139, requiring only sufficient parking to accommodate all staff working in the emergency shelter.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: Planning Department; City Manager Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: Removal of design permit requirement Performance Metric(s): Reduced permit processing time
(NEW)
Program 3.E Low Barrier Navigation Center
Homelessness in California is a continuing and growing crisis. Individuals and families experiencing homelessness are without permanent housing largely due to a lack of affordable housing.

Homelessness is often compounded by a lack of job training and supportive services to treat mental illness, substance abuse, or domestic violence. AB101 (2019) provides a pathway to permanent housing for people experiencing homelessness.
200
Chapter 2.0 – Goals, Policies, and Programs 2-24 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In order to comply with State law, the City will amend the Zoning Code definitions to include the definition for “Low Barrier Navigation Center” and allow it as a permitted use in the PF zoning district.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: City staff and Council
Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: Amended Zoning Code
Performance Metric(s): N/A
(NEW)
Program 3.F Affordable Housing Services for Extremely Low and Other Income Restricted Residents – PRO
The category “extremely low-income households” is a subset of “very low-income households,” and is defined as 30 percent (or less) of the area median income. Extremely low-income households are typically minimum-wage workers, disabled persons, farmworkers, artists, and seniors on fixed incomes and there were approximately 20 ELI households (14 percent of total households) in Sand City. Of the extremely low-income households in Sand City, 100 percent are renter-occupied households, or 14 percent of all households.

In order to support ELI residents, the City will support the construction of affordable housing and the development of support services that are suitable for extremely low-income residents through the following measures:
 Consider creating an “Affordable Housing Matching” program in which ELI residents are able to sign up for a list of the City’s available affordable housing inventory, and work with the regional Housing Authority to provide Housing Choice Vouchers (HCV) and allocate section 8 vouchers to eligible residents;
 Match residents with ADU or JADU owners that accept HCV or Section 8;  Work with local non-profit Salvation Army to support the day center including caseworker services; and
 Continue Community Human Services (CHS) service agreement to provide mental health, substance abuse and homeless services.

Implementation Policies: Policy 3.1; 3.2; 5.1
Responsible Department: City staff and Council
Timeframe: June 2025
Funding Source: General Fund
201
Chapter 2.0 – Goals, Policies, and Programs 2-25 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Quantified Objective: 10 property owners
Performance Metric(s): 10 housing matches
(Formerly Program 4.4.1.E)
Program 3.G Artist Live/Work Housing - PRO
Many artists fall into in the low and extremely low-income categories. Sand City has built up an energetic artist community, in part due to more affordable facilities than other parts of the Peninsula, that has vastly contributed towards the City’s positive transformation. To support the artist community, the City sponsors the annual West End Celebration art festival and the relatively new annual mural program. To ensure that artists, many of which are low and/or extremely-low income, continue to thrive and work in Sand City, the City will:
 Engage with artist/craft-persons residing in the City and organizations that support the Arts to assess the housing needs of the artistic community and how the City can address these needs programmatically;
 Conduct targeted marketing for artist/craft-persons when affordable units and Live/Work units become available; and
 Explore development of the City-owned Art Park in conformance with the Surplus Lands Act.

Implementation Policies: Policy 3.1; 3.2; 5.1; 5.2
Responsible Department: Planning Department; City Manager Timeframe: Ongoing
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Number of artists contacted
(NEW)

Program 3.H Reduced Fees for Affordable Projects - PRO
Development of new housing units imposes certain costs upon local government, such as the cost of providing planning services and inspections. In addition, there are long-term costs such as the continued maintenance of a community’s infrastructure and public facilities. In order to pay for such services, local governments charge fees for proposed development applications. High planning and site development fees can impact property owners’ ability to make improvements or repairs, especially for lower-income households.

Sand City fees are extremely low and have been for many years and do not currently pose a constraint to affordable projects; however, given the fee schedule was last updated in 2015 for planning permit fees and in the late 1990’s for building permit fees, the City is considering a nexus 202
Chapter 2.0 – Goals, Policies, and Programs 2-26 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 study and possibly increasing fees in the next budget cycle. Discounted or waived fees for affordable projects will form part of the fee schedule update. In addition, the City will work with outside agencies to develop a process to defer fees until the Certificate of Occupancy is ready to be issued as part of the fee schedule update.

Implementation Policies: Policy 1.4; 3.1; 3.2
Responsible Department: City Manager
Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Reduction of fees for affordable housing development (NEW)
Program 3.I Surplus Local Land for Affordable Housing
Assembly Bill 1486 (Ting, 2019) aims to connect developers who are interested in building more affordable homes on surplus local public land that is both available and suitable for housing development. Land leases that are greater than five years are also subject to the Surplus Lands Act (SLA).

At the Art Park (site #2), the City has identified two (2) city-owned underutilized parcels and one privately owned parcel. The City is in negotiations to acquire the privately owned parcel, with intentions to develop the parcels through the Surplus Land Act process over the next five years for the potential development of 16 units (eight (8) units affordable to very low- and eight (8) units affordable to low-income households). The site is planned to remain in City ownership and is anticipated to be made available for development through a long-term land lease for 55 years. The site will be made available for affordable housing consistent with the requirements of the Surplus Land Act.

Since parcel 011-196-020-000 (City-owned) was previously identified in the 5th cycle, the site is subject to by-right development requirements pursuant to Government Code section 65583.2(c). If a developer proposes a project with a minimum of 20 percent affordable, the City shall permit development without discretionary action.

Specific planned actions by the City include the development of a project description, publication of an RFP within 12-18 months, selection of a development partner, two years to enter into an Exclusive Negotiation Agreement, two years for land use entitlements and development agreements, 6-12 months for building permit issuance, and 1-2 years for construction. Council approval is required for each step in this process.
203
Chapter 2.0 – Goals, Policies, and Programs 2-27 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Specific actions and associated timelines the City is committed to:
 Maintain compliance with the Surplus Land Act throughout the 2023-2031 Housing Element period;
 Establish and implement development standards for the Art Park (Site #2);  Make properties available through the Surplus Land Act process;  Develop project description and establish an RFP process and solicit developers by Spring 2025;  Target Exclusive Negotiating Agreement by Fall 2025; and  Target land use entitlements issuance by Winter 2026.

If by December 2025, the City has not established the necessary developer agreements, the City will pursue the following alternative actions to enable the development of the sites for affordable housing:
 Increase outreach efforts with non-profit affordable housing developers beginning January 2026;  Re-issue RFP and solicit developers by December 2026;  Identify additional/alternative sites;
 Pursue funding opportunities such as Permanent Local Housing Allocation (PLHA), Multifamily Super NOFA, IIG Small Jurisdictions, CDBG Funds, and HOME Investment Partnerships to assist with entitlement and building permit fees (ongoing); and  Develop incentives for developers, including 60-day approval timeline; clear development standards; full cooperation with City staff and elected and appointed officials; accelerated approval process; waiving parking standards for multi-family development.

The length of time it takes to gain entitlement approvals can drastically impact the financial feasibility of development projects. The developer incentives outlined above are intended to shorten the period of time between submittal of entitlement applications and issuance of occupancy, in order to enable the development of multi-family residential units.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: City Manager
Timeframe: Complete investigations and potential partnership by December 2026; Pursue alternative actions by January 2026
Funding Source: General Fund
Quantified Objective: 8 Very Low- and 8 Low-Income units Performance Metric(s): Acres of surplus land
(NEW)
204
Chapter 2.0 – Goals, Policies, and Programs 2-28 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 3.J Employee and Farmworker Housing
In compliance with State requirements and the Employee Housing Act, the City of Sand City will amend the Zoning Code to include a definition for employee housing that permits employee housing for six or fewer employees to be treated as a single- family structure and permitted in the same manner as other dwellings within the R-1, R-2 and R-3 zoning districts.

Although the City does not have agricultural uses, and therefore, no housing designated specifically for farmworkers —the City supports the County of Monterey’s efforts to educate the public on resources that are available for agricultural workers. The City has identified the following resources that are available throughout the region for agricultural employees:
 Spanish Farmworkers Resource Line – provides information on a variety of issues such as legal help and medication services, stress, resources for farmworkers with disabilities, etc.  The Center for Community Advocacy – an organization whose mission is to support and build leadership within the community and in particular for farmworkers and their families.

The Center has worked side by side with farmworkers to help improve their living conditions, advocate to have more affordable housing and access to health services and resources.
 Farm and Food Worker Relief Program – Catholic Charities Diocese Monterey is providing direct financial relief to eligible farmworkers in the counties of Monterey, Santa Cruz, San Benito, and San Luis Obispo. The purpose of this program is to provide direct financial relief to eligible field workers, meatpacking workers, livestock workers, and grocery store workers.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: Planning Department
Timeframe: December 2024
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): N/A
(NEW)
Program 3.K Residential Care Facilities for Residents with Disabilities Residential care facilities, or group homes, are a type of supportive housing essential to residents that are living with disabilities. These facilities provide flexible and affordable housing options, and allow persons with disabilities to live in deinstitutionalized settings in a manner that helps them integrate into local communities.
205
Chapter 2.0 – Goals, Policies, and Programs 2-29 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In accordance with Sections 65650 – 65656 of the Government Code, the City will make the following amendments to the zoning code:
 Clarify and expand the definition of residential care facilities to include “group homes” and “sober living homes;”
 Amend the definition of “family” so that it does not distinguish between related and unrelated persons and does not impose limitations on the number of people that may constitute a family;  Amend the zoning and permitting procedures to allow seven or more persons (regardless of licensing) in all zones allowing residential uses;
 Replace CUP requirements with a site development permit and permit similar to other uses of the same type in the same zone; and
 Permit residential care facilities within the MU-P zoning district by-right, in accordance with Government Code Section 65651.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: City staff and Council
Timeframe: December 2024
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Amended Zoning Code
(NEW)
Program 3.L Update Reasonable Accommodation Procedures in the Municipal Code The City will update the reasonable accommodation procedures in the Zoning Code to remove subjective language that provides a constraint to individuals with disabilities, and seniors. The City will amend the Municipal Code to remove the findings requirement for requested accommodations stating the requested accommodation will not result in a “significant impact on surrounding uses.” In an effort to keep the public informed on reasonable accommodation procedures, the City will:
 Conduct educational workshops for landlords and tenants;  Connect to organizations and fair housing resources;
 Encourage tenants with disabilities to file discrimination complaints if necessary;  Establish a single point of contact to handle reasonable accommodation issues and provide necessary info; and
 Create an informational worksheet/flyer to distribute at Sand City’s front desk. 206
Chapter 2.0 – Goals, Policies, and Programs 2-30 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Implementation Policies: Policy 3.1; 3.2
Responsible Department: City staff and Council
Timeframe: June 2025
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): Amended Zoning Code
(NEW)
Program 3.M Brownfield Remediation Loans and Grant Assistance Site characterization, health risk assessment, and site remediation in accordance with state mandates can present major development expenses.

In order to maximize the potential of underutilized sites in the future, the City will facilitate the use of state loans and grants through the assessment loan and clean-up loan programs to provide financial, technical, and regulatory assistance to property owners and developers seeking to assess and remediate housing development sites on brownfields. The City will work with property owners and developers to seek outside funding opportunities for site remediation and offer technical assistance with funding applications. The City will provide information regarding loan and grant assistance on the City’s website.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: City staff and Council
Timeframe: City will meet with interested property owners and developers twice in the planning period; Update website annually
Funding Source: General Fund, California Dept. Toxic Substances Control (DTSC), US Environmental Protection Agency (EPA)
Quantified Objective: N/A
Performance Metric(s): N/A
(NEW)

Program 3.N Strategies to Improve Educational Outcomes
To support the improvement of educational opportunities and outcomes in Sand City, the City will meet with the Monterey Peninsula Unified School District (MPUSD) bi-annually to determine what, if any outside factors impede school performance that can be alleviated, such as stable housing opportunities, affordable childcare opportunities for working parent(s), and more. The City will also invite interested religious institutions to collaborate. If such needs are identified, the City will pursue solutions, which may include:
207
Chapter 2.0 – Goals, Policies, and Programs 2-31 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

1. Reviewing planning regulations to ease the process for entitling a Childcare/Day Care Center and ensuring that childcare facilities are permitted near employment centers. Recommended modifications include allowing day cares and pre-schools as a conditional use in areas that allow commercial and mixed uses;

2. Coordination with MPUSD and those that participate in programs through The Salvation Army Day Center in both Sand City and Seaside on identifying affordable childcare and after-school opportunities for low income, working parents; and

3. The City will partner with the MPUSD and homeless service providers to support at-risk families with information regarding local resources, fair housing education, access to legal aid, and potential housing opportunities.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: City staff and Council
Timeframe: June 2025; Meet with MPUSD bi-annually
Funding Source: General Fund; Other
Quantified Objective: Contact a minimum of 25 households annually Performance Metric(s): Bi-annual meeting with MPUSD, service providers, and local non-profits (NEW)

Program 3.O Family Friendly Housing – AFFH
Promote multi-family housing designs and unit mix to attract multigenerational households by encouraging developers to include housing features and more bedrooms (including four-bedroom units), as well as other on-site amenities, such as usable outdoor open space for multigenerational use, and multipurpose rooms that can be used for after-school homework clubs, computer, art, or other resident activities. To address potential displacement of households with four or more persons, the City will research options to expand regulatory incentives to encourage the development of larger units.

Implementation Policies: Policy 3.1; 3.2
Responsible Department: City staff and Council
Timeframe: June 2025; Meet with MPUSD bi-annually
Geographic Target: South of Tioga, West End District, and throughout the city Funding Source: General Fund; Other
Quantified Objective: 15 two-, three-, and four-bedroom units entitled; 15 family friendly designated units
Performance Metric(s): Develop Regulatory Incentive (Mid-Term); Implement Family Friendly Design Guidelines (Ongoing)
(NEW)
208
Chapter 2.0 – Goals, Policies, and Programs 2-32 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 GOAL H4 EXEMPLIFY SUSTAINABLE DEVELOPMENT AND ENERGY

CONSERVATION
Programs
Program 4.A Energy Conservation and Solar Energy Opportunities Planning to maximize energy efficiency and the incorporation of energy conservation and green building features can contribute to reduced housing costs for homeowners and renters, in addition to promoting sustainable community design and reduced dependence on vehicles. Such planning and development standards can also significantly contribute to reducing greenhouse gases.

The City will continue to enforce Title 24 and California Green Building Standards Code requirements for energy conservation and evaluate utilizing some of the other suggestions as identified in this document. Additionally, the City will use the design review process to promote optimum lot and building configuration for the use of solar energy systems.

Implementation Policies: Policy 4.1
Responsible Department: Planning and Building Departments Timeframe: Ongoing
Funding Source: General Fund
Quantified Objective: N/A
Performance Metric(s): N/A
(Formerly Program 4.6.1.A and 4.6.1.B)
Program 4.B Energy Rebate Programs
Pacific Gas and Electric Company (PG&E), which provides energy efficiency services in Sand City, offers public information and technical assistance to homeowners regarding energy conservation.

PG&E also provides numerous incentives for energy efficiency in new construction and home remodeling.

The City will implement Energy Rebate Programs by coordinating with PG&E to make available rebates to eligible owner and renter-occupied housing for improvements to housing units for energy conservation measures.

Implementation Policies: Policy 4.1
Responsible Department: Planning and Building Departments Timeframe: Ongoing
Funding Source: General Fund
Quantified Objective: 30 units targeted for rebates
Performance Metric(s): # of energy conservation rebates provided (NEW)
209
Chapter 2.0 – Goals, Policies, and Programs 2-33 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 4.C Encourage Transportation Demand Management Strategies The City is served by the Monterey Salinas Transit (MST) which operates bus routes on Del Monte Boulevard to the Sand City Station, located on Playa Ave, which serves six bus routes with a combined frequency of 15-minute service.

In order to facilitate transit use for residents of new multi-family residential developments in South of Tioga and The Independent (Phase II), the City will encourage the development of transportation demand management strategies that include but are not limited to the following:
 Provide transit passes to residents as part of MST’s Group Discount Program for a minimum of 10 years;
 Facilitate use of MST by providing information on bus frequency and transit stop locations in common areas for the life of the project;
 Reduction of minimum parking standards by December 2025; and  Provide secure bicycle and electric Bicycle storage by December 2025.

Implementation Policies: Policy 4.1; 4.2
Responsible Department: Planning and Building Departments Timeframe: Refer to individual timeframes above
Funding Source: General Fund
Quantified Objective: Provide 50 transit passes per year with new development Performance Metric(s): Residential building permit issued (NEW)
Program 4.D Seek Funding for a Pedestrian and Bike Trail along the Railroad Right-ofWay The TAMC Railroad Right-of-Way runs through Sand City adjacent to Del Monte Boulevard. In order to increase bicycle and pedestrian commuting, the City will seek grant funding to build a pedestrian and bike trail along the TAMC railroad right-of-way. The new trail would pass by the proposed SURF! Busway and Bus Rapid Transit, which, once completed, will serve as a major transit stop providing public transit service along Del Monte Boulevard every 15 minutes throughout the day. On April 16, 2024 the City Council approved funding for this project to initiate the entitlement and planning phases.

Implementation Policies: Policy 4.1; 4.2
Responsible Department: Planning and Building Departments Timeframe: Apply for funding every two years as necessary; Complete by June 2031 Funding Source: General Fund
210
Chapter 2.0 – Goals, Policies, and Programs 2-34 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Quantified Objective: 3 miles of trails
Performance Metric(s): Grant awards
(NEW)
Program 4.E Expand Sand City’s Coastal Trail
The Monterey Bay Coastal Recreation Trail is a dedicated pedestrian and bike trail which stretches 18 miles along the Southern Monterey Bay from Castroville in the north to Pacific Grove in the south. The Monterey Bay Recreation Trail runs through Sand City on the west side of State Route 1.

There is currently a critical gap in the Monterey Bay Recreation Trail in Sand City between Tioga Avenue and Playa Avenue. In order to increase walkability and bicycle use within the City, Sand City will continue to work with the property owner and Coastal Commission to allow for development of this gap in the Monterey Bay Recreation Trail and will apply for grants to plan and build this missing segment.

Sand City recently applied to the California Coastal Conservancy for a grant to plan for a coastal trail that will connect the City’s center to the coast. The project will provide access from Sand City’s Calabrese Park, northeast to Tioga Avenue, over the State Route 1 Tioga Avenue overpass, and southwest through the dunes west of State Route 1, ultimately ending at the West Bay Street coastal access point and viewing platform known as Vista Point. It will include a coastal trail, boardwalk system, educational signs, enhanced parking, and benches. The project will connect current and future residents within the City’s core to the coast, and will plan for much needed coastal access improvements along the City’s shoreline.

Implementation Policies: Policy 4.1; 4.2
Responsible Department: Planning and Building Departments Timeframe: Apply for funding for implementation every two years as necessary; Ongoing Funding Source: General Fund
Quantified Objective: 3 miles of trails
Performance Metric(s): Grant awards
(NEW)
211
Chapter 2.0 – Goals, Policies, and Programs 2-35 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 GOAL H5 PUBLICIZE HOUSING NEEDS AND RESOURCES
Programs
Program 5.A Fair Housing Services and Information – PRO A local equal housing opportunity program must provide a means for the resolution of local housing discrimination complaints and should include a program to disseminate fair housing information (including fair housing laws) and resource information throughout the community.

The City has not had any fair housing complaints and will continue to support and promote the services of organizations that provide fair housing programs to Sand City residents, including:
 The Salvation Army Day Center facility;
 Home Match Monterey;
 Conflict Resolution and Mediation Center;
 Legal Services for Seniors;
 Central Coast Center for Independent Living;
 Housing Resources Center Salinas; and
 Center for Community Advocacy.

The City will market the availability of the services provided by these organizations through written material available at City Hall and on the City’s website. Additionally, in April each year during Fair Housing Month the City will:
 Staff a public outreach booth at events such as the Sand City Night Market and/or the West End Celebration; and
 Issue an annual Council proclamation.

The City will also develop an engagement strategy to promote education and awareness of fair housing law and tenant protections, including source of income, State rent stabilization, just cause eviction regulations, and other related State laws. Additionally, the City will market listings for affordable housing as available.

Implementation Policies: Policy 5.1
Responsible Department: City Manager/Planning Department Timeframe: 2024-2031
Funding Source: General Fund; CDBG
Quantified Objective: 100 people per day via Salvation Army; Develop engagement strategy by December 2025
Performance Metric(s): Reduce the # of fair housing cases during the housing cycle (Formerly Program 4.5.1.A)
212
Chapter 2.0 – Goals, Policies, and Programs 2-36 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 5.B Housing Choice Voucher Program
The City shall continue to cooperate with the Monterey County Housing Authority in its administration of the Housing Choice (Section 8) rental assistance program. Specifically, the City shall encourage the Housing Authority to seek out and provide assistance to extremely low and very low-income households. The City shall publicize the Housing Choice Voucher Program rental assistance program through marketing efforts including brochures made available at City Hall.

Implementation Policies: Policy 5.1
Responsible Department: Planning Department
Time Frame: June 2025
Geographic Target: West End District, South of Tioga, and throughout the city Funding Source: General Fund
Quantified Objective: 10 vouchers
Performance Metric(s): N/A
(NEW)
Program 5.C State and Federal Housing Programs and Funding - PRO The cost of financing has a substantial effect on the affordability and availability of housing. EMC Planning Group, as planning consultants for the City, set-up a two part “Affordable Housing Financing” workshop with a California Bank that provides affordable housing financing to developers. The City Manager of Sand City attended. That workshop was followed by an in-person meeting with the City Manager and an affordable housing developer who is interested in the City.

Housing financing, including private financing and government assistance programs, is generally available to the community. In order to continue to incentivize the development of affordable units the City will:
 Continue to apply for appropriate state and federal housing funds, including CDBG and HOME funds. Use funds to assist with providing affordable housing opportunities in new and existing housing units;
 Contract with a planning consulting firm to supplement its planning and economic development capabilities. Availability of grant or other special funding for affordable housing will be posted on the City’s website and a new Economic Development website with information related to housing site opportunities and potential State and Federal Housing funding will be developed; and
 Notify affordable residential developers, community groups and organizations that serve and represent lower-income households of the availability of affordable housing resources, when available.
213
Chapter 2.0 – Goals, Policies, and Programs 2-37 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Where possible, the City will give priority to projects that are affordable to extremely low- and very low-income households. Some of the more likely sources of funds include:
 CDBG Funds: The City will continue to apply to the California HCD for special planning grants to pursue specific projects. The City will submit applications for those funds based on the state’s application time frame and process;
 HOME Funds: The State of California also awards HOME funds to localities on a competitive basis for developments that include rental housing, homeownership opportunities, special needs housing and tenant-based rental assistance. The City will submit applications for those funds based on the state’s application time frame and process;  Low Income Tax Credits: Federal and state tax credits are available to investors on a competitive basis for the development of lower-income housing units;  Other State-funded programs: The City will make use of available State-funding allocated for affordable housing; and
 Permanent Local Housing Allocation (PLHA) grant: The City applied for and was awarded a Permanent Local Housing Allocation grant. PLHA provides funding to local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. The City will identify local public agencies, public or private nonprofit corporations, and for-profit organizations with the legal and managerial capacity to acquire and manage at-risk projects (Government Code Section 65583(a)(9)(C)). New purchasers must agree to long-term affordability controls. The funds will be used for the following activities:
• Private-public partnerships to build live/work units/studios within the West End Planning District on City owned properties; and
• Purchase of additional existing market rate units to increase the number of inclusionary affordable units into the current housing stock.

Implementation Policies: Policy 5.2
Responsible Department: Planning Department
Timeframe: Annual Assessment; Ongoing
Funding Source: CDBG, HOME, PLHA grant, tax credits and other grants and programs, as applicable
Quantified Objective: Acquire revenue from various Federal and State funds for use in affordable housing
Performance Metric(s): Amount of funding gathered; Amount of funding allocated towards low-income households
(Formerly Program 4.2.2.A)
214
Chapter 2.0 – Goals, Policies, and Programs 2-38 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
215
Chapter 3.0 – Overview of Housing Needs and Constraints 3-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

3.0 Overview of Housing Needs and Constraints

3.1 Introduction
This chapter summarizes housing needs and constraints in the City of Sand City. The analysis of housing needs primarily utilizes U.S. Census, ACS 5-Year 2019 Estimate data. For a detailed analysis of housing needs, please see Appendix A— Housing Needs & Fair Housing Report. Also, for a detailed analysis of governmental and non-governmental constraints, please see Appendix B— Housing Constraints.

3.2 Overview of Housing Needs
The following section provides an overview of demographic information, household and housing stock characteristics, and special housing needs in Sand City. In summary:
 The City’s population is slowly increasing and the aging trend suggests a demand for housing geared toward middle-aged to senior groups;
 Sand City has more jobs than housing, and will require intentional development of housing at all income levels to effect balance;
 The largest household type is single-person households (48 percent) which reflects a demand for affordable housing units appealing to single-person households;  Lower-income households make up the majority of households (48 percent and nearly 15 percent of the households in Sand City identify as extremely low-income. The household income characteristics in Sand City reveal a demand for the development of more affordable housing options that appeal to lower-income, single-person households;  Sand City has a total of 143 households, of which more households rent than own their homes:
83 percent versus 17 percent and renter-occupied households earning between 0 to 80 percent AMI are at risk of potential displacement or gentrification. Senior households makeup 10 percent of all households, of which 70 percent rent their homes;  Sand City households have higher rates of cost burden. In Sand City, 34 percent of households are cost burdened (both renters and owners) and 21 percent are severely cost burdened. This reflects a demand for programs that prevent displacement and preservation of affordable units; and
216
Chapter 3.0 – Overview of Housing Needs and Constraints 3-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  12 percent of the population experiences some form of disability. Additionally, the most common living arrangement for individuals with disabilities is the home of parent/family/guardian followed by independent/supported living arrangements. This reflects a need for more units that are accessible and/or universal design.

Population Growth
Sand City faces unique housing challenges as its population size is extremely small with approximately 310 residents as of 2019. Table 3-1 shows population growth in Sand City, the County, and neighboring cities between 2010-2019. Between 2010 and 2019, Sand City’s population increased by 32 percent from 2010 to 2019. Although the City has experienced growth since 2010, it has been accompanied by a trend of flux rather than a steady increase.

Table 3-1 Sand City and Regional Population Growth Trends, 2010-2019 Jurisdictions Population
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
County
407,435 411,385 416,199 420,569 424,927 428,441 430,201 433,168 433,212 433,410 Sand City 234 292 264 307 355 312 301 355 318 310
Del Rey Oaks 1,774 1,734 1,781 1,779 1,727 1,673 1,683 1,555 1,596 1,525 Seaside 32,431 32,735 3,3050 33,402 33,729 33,999 34,120 34,259 34,077 33,956 Pacific Grove 14,902 14,995 15,102 15,241 15,365 15,505 15,546 15,617 15,567 15,522 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Age Characteristics
In 2010, Sand City’s predominant age group was individuals between 35 and 44 years of age (22.6 percent). Between 2015 and 2019, the City experienced a shift upward in age toward the 45 to 54 age group (18.9 percent in 2015) and then back down to the 25 to 34 age group (18.7 percent in 2019).

The general age of the population has been slowly increasing; however, the most populous age groups in the City appear to be individuals between 25 and 54 years of age. Accordingly, the most stable population between 2010 and 2019 has been individuals zero to four years of age. As of 2019, the City’s median age was 36. Overall, the City’s aging trend suggests a demand for housing geared toward middle-aged to senior groups.

Table 3-2 shows that Sand City’s most populous age group in 2019 was individuals 25 to 34 years of age (18.7 percent). Compared to the County and neighboring cities, Sand City has the largest 25 to 34 age group followed by Seaside (17.6 percent). In contrast, Del Rey Oaks (7 percent percent) and Pacific Grove (11 percent) have larger 75+ populations. 217
Chapter 3.0 – Overview of Housing Needs and Constraints 3-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 3-2 Population Age Distribution by Jurisdiction, 2019 Jurisdiction Population Age
0-4 5-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Monterey County 7.3% 14.8% 14.3% 14.4% 13.0% 11.8% 11.1% 7.7% 3.6% 1.9% Sand City 6.8% 9.1% 12.9% 18.7% 13.2% 13.2% 15.5% 8.7% 1.9% 0.0% Del Rey Oaks 5.7% 8.3% 5.7% 12.6% 12.5% 13% 18.9% 15.9% 4.4% 2.9% Seaside 8.5% 12.7% 14.8% 17.6% 12.7% 11.4% 11.4% 6.1% 3.0% 2.0% Pacific Grove 3.5% 12.2% 8.5% 10.0% 10.4% 13.3% 14.7% 16.5% 6.6% 4.3% SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Race and Ethnicity Characteristics
When comparing the City and the County, non-Hispanic White and Hispanic or Latino populations are the most represented; these populations show a nearly even contrast in percentages for the County and City. Non-Hispanic White individuals comprise the majority of Sand City’s population (59 percent) followed by Hispanic or Latino (30.5 percent). In contrast, the County’s largest population is Hispanic or Latino individuals (60 percent) followed by non-Hispanic White (31 percent). Despite having relatively limited diversity, Sand City has a slightly larger Black or African American population (5 percent) compared to the County (2.5 percent). Those identifying as Native Hawaiian or Other Pacific Islander represent the smallest population group within the County (0.5 percent) and City (zero percent), followed by American Indian or Alaska Native which in the County is (0.2 percent) and City (1.6 percent).

Table 3-3 provides a comparison of racial and ethnic composition by jurisdiction. In 2019, Sand City (59 percent) and the neighboring City of Pacific Grove (83 percent) had the largest non-Hispanic White populations compared to Del Rey Oaks (75.5 percent), City of Seaside (33.9 percent), and the County (30.8 percent). Sand City had the lowest Asian population (3.0 percent) than surrounding cities and the County. The Black or African American, non-Hispanic population in Sand City (5.0 percent) is the second largest when compared to surrounding cities and the County.

Between 2010-2019, Sand City’s population composition has experienced fluctuations in nearly all populations. In 2015, all populations experienced a decrease in size with the exception of American Indian or Alaska Native populations (0.7 percent increase) and Hispanic or Latino populations (12.2 percent increase). In 2019, Sand City saw growth in all populations except Hispanic or Latino populations (10.0 percent decrease) and Native Hawaiian and Other Pacific Islander populations (zero percent; consistent over the nine-year period). American Indian or Alaska Native populations have steadily increased from 2010 (zero percent) to 2019 (1.6 percent). 218
Chapter 3.0 – Overview of Housing Needs and Constraints 3-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 3-3 Population by Race by Jurisdiction, 2019
Jurisdiction
American
Indian or
Alaska
Native
Asian,
alone
Black or
African
American,
NonHispanic
White,
NonHispanic
Some
Other
Race
Hispanic
or
Latino
Native
Hawaiian
and Other
Pacific
Islander
Monterey County 0.2% 5.5% 2.5% 30.8% 0.1% 60.3% 0.5%
Sand City 1.6% 3.3% 4.9% 59.0% 0.7% 30.5% 0.0%
Del Rey Oaks 0.0% 7.1% 2.5% 75.5% 0.0% 13% 0.3%
Seaside 0.2% 10.4% 7.3% 33.9% 0.3% 45.4% 2.7%
Pacific Grove 0.2% 5.8% 1.0% 82.8% 0.0% 10.3% 0.1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Employment
The largest industries in which Sand City residents work are Arts, Recreation & Other Services, Health & Educational Services, and Professional & Managerial Services, respectively. These industries have remained the most populous in employment since 2010.

Sand City has more jobs than housing, and this difference has remained steady over time. Sand City has more jobs than residents at all income levels. Historically, Sand City has served the Monterey Peninsula as the industrial hub. Therefore, the jobs–housing imbalance is not unusual, but will require intentional development of housing at all income levels to effect balance.

Table 3-4 illustrates employment growth for Sand City, the County, and neighboring cities from 2010-2019. Between 2010-2019, Sand City experienced an employment growth of 53 percent compared to the County which experienced 7 percent growth. Neighboring cities, Del Rey Oaks and Pacific Grove experienced declines in employment. Sand City’s increase in employment presents an opportunity to construct additional housing options for the existing and future workforce.

Table 3-4 Employment Growth by Jurisdiction, 2015-2040
SOURCE: AMBAG Regional Growth Forecast, 2018
NOTE: *Projected growth values
Jurisdictions Employed Population
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey County 176,225 175,425 176,109 174,453 175,455 177,333 180,631 182,439 185,025 187,708 Sand City 108 139 111 121 153 138 131 167 165 166
Del Rey Oaks 868 903 905 858 897 848 849 795 807 788
Seaside 15,318 15,109 15,074 14,529 14,561 14,636 15,225 15,321 15,557 15,478 Pacific Grove 7,428 7,282 7,168 7,374 7,214 7,252 7,363 7,304 7,019 7,142 219
Chapter 3.0 – Overview of Housing Needs and Constraints 3-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 3-5 provides a breakdown of unemployment rates for Sand City, the County, and neighboring cities. Sand City has the lowest unemployment rate compared to surrounding cities and the County.

This indicates an approximate 2.0 percent less than Pacific Grove, 3.0 percent less than the County and Del Rey Oaks, and 4 percent less than Seaside.

Table 3-5 Unemployment Rate, Sand City, 2019
Jurisdictions Unemployment Rate
Monterey County 4.9%
Sand City 1.8%
Del Rey Oaks 5.1%
Seaside 6.1%
Pacific Grove 3.9%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Household Characteristics
Table 3-6 provides an overview of the projected housing units needed in the AMBAG region, Monterey County, Sand City, and neighboring cities, Seaside and Pacific Grove.1 Sand City is
forecast to have a household growth of approximately 199 percent by 2045 – an increase of 350 housing units. Compared to the neighboring city of Del Rey Oaks, this reflects 138 percent more growth.

Table 3-6 Housing Forecast by Jurisdiction, 2015-2045
Jurisdictions 2015 2020* 2025* 2030 2035* 2040* 2045*
Percent
Change
from 2015-
2045
AMBAG Region 262,660 267,812 277,645 288,386 296,352 301,307 304,900 16% Monterey County 139,177 141,764 146,716 153,852 159,100 162,612 165,328 19% Sand City 176 189 198 228 333 446 526 199%
Del Rey Oaks 741 741 762 809 848 1,052 1,195 61%
Seaside 10,913 10,920 11,437 11,925 12,248 12,604 13,192 21% Pacific Grove 8,184 8,201 8,214 8,267 8,336 8,400 8,463 3% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
1 Source: AMBAG Regional Growth Forecast, 2022
220
Chapter 3.0 – Overview of Housing Needs and Constraints 3-6 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Household Type and Size
In Sand City, the largest household type is single-person households (48 percent) followed by married-couple family households (32 percent). In contrast, the largest household type in the County and neighboring cities was married-couple family households followed by single-person households.

Sand City has the lowest percentage of female-headed households (3 percent) compared to the County (13 percent), Del Rey Oaks (7 percent), Seaside (12 percent), and Pacific Grove (9 percent).

Sand City’s largest household type according to size is 1-person households (48 percent) followed by 2-person households. This is consistent with single-person households remaining the largest household type since 2010. This reflects a demand for affordable housing units appealing to singleperson households.

Household Income
In Sand City, lower-income households make up the majority of households (48 percent) followed by above moderate-income households (41 percent). Nearly 15 percent of the households in Sand City identify as extremely low-income (Table 3-7).

Table 3-7 Households by Income Category, Sand City, 2019 Income Category (% of County MFI) Households Percent
Extremely Low-Income (30% MFI or less) 20 14%
Very Low-Income (30-50% MFI) 10 7%
Low-Income (50-80% MFI) 39 27%
Moderate-Income (80-100% MFI) 14 10%
Above Moderate-Income (>100% MFI) 60 41%
Total 143 100%
SOURCE: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 Sand City’s median household income was $63,333 – approximately $7,682 lower than the County.

The City of Del Rey Oaks had the highest median household income at $95,000 followed by Pacific Grove ($88,250). Understanding Sand City’s median household income clarifies what income category households identify with and what is deemed affordable.

The household income characteristics in Sand City reveal a demand for the development of more affordable housing options that appeal to lower-income, single-person households.

Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a City and region. Generally, renters may be displaced more quickly if prices increase. 221
Chapter 3.0 – Overview of Housing Needs and Constraints 3-7 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 As of 2019, Sand City has a total of 143 households, of which more households rent than own their homes: 83 percent versus 17 percent. By comparison, 49 percent of households in Monterey County are renters, while 51 percent rent their homes.

Homeownership rates often vary considerably across race/ethnicity in the Monterey Bay Area and throughout the country. These disparities not only reflect differences in income and wealth but also stem from federal, state, and local policies that limited access to homeownership for communities of color while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Monterey Bay Area communities. All Black households rented their homes, while homeownership rates were 100 percent for American Indian or Alaska Native households, 7 percent for Hispanic or Latinx households, 38 percent for White households, and 22 percent for Multiple Races. Notably, recent changes to state law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements.

In many cities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Sand City, 60 percent of households in detached single-family homes are homeowners, while 28 percent of households in multi-family housing are homeowners.

Disproportionate Housing Needs
Overcrowding
Understanding the prevalence of overcrowded households within a community helps determine the need for affordable and adequately sized housing units for the community. Overcrowding is defined by the United State Census as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding may occur due to a lack of available affordable and/or adequately sized housing units. Cultural norms and customs combined with low-income or lack of adequately size housing units can result in overcrowding too.

In Sand City, the majority of households (90 percent) do not experience overcrowding. Six (6) percent of households in Sand City are overcrowded and four (4) percent are severely overcrowded.

When analyzing overcrowding by tenure, 12 percent of renter-occupied households experience some form of overcrowding, while no owner-occupied households experience overcrowding. Monterey County has a four (4) percent higher rate of overcrowding than Sand City.

Cost Burden
According to HCD, overpayment or cost burden is measured as households spending more than 30 percent of their gross income including utilities for housing; severe overpayment or severe cost burden is measured as households spending 50 percent or more of their gross income for housing. 222
Chapter 3.0 – Overview of Housing Needs and Constraints 3-8 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The cost burden rates of owners and renters in a community provide insight to housing needs such as, the affordability of the local housing market and the availability of housing units that accommodate household needs like size and housing type. Additionally, federal and state agencies examine cost burden to determine a community’s need for housing assistance.

Compared to the County and neighboring cities, Sand City households have higher rates of cost burden. In Sand City, 34 percent of households are cost burdened (both renters and owners) and 21 percent are severely cost burdened. The City of Seaside has a slightly higher rate of severely cost burdened households (23 percent) compared to Sand City (21 percent). Overall, the City of Del Rey Oaks has the lowest percent of households experiencing any type of cost burden.

When analyzing cost burden by tenure, renter-occupied households experience substantially higher rates of cost burden (38 percent) and severe cost burden (25 percent) than owner-occupied households. Owner households experience 15 percent cost burden and no severe cost burden.

Eighty-three (83) percent of households in Sand City are renters – this in tandem with 63 percent of renter-occupied households experiencing some type of cost burden reflects a demand for more affordable housing units. Moreover, this indicates that Sand City has high barriers to access the housing market for the majority of its households (48 percent single-person households).

Neighborhoods
All Sand City residents live in neighborhoods identified as “Moderate Resource” areas by Statecommissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.2 The two areas the City falls into lower composite scores are economic outcomes and environmental outcomes.

Special Needs Groups
Extremely Low-Income Households and Poverty Status
Extremely low-income households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent or less of the MFI.

The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 38 extremely low- and very low-income households living in Sand City. There are approximately 24 extremely low-income households in Sand City, all of which are renters; there are no extremely low-income owner households.
2 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website: https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. 223
Chapter 3.0 – Overview of Housing Needs and Constraints 3-9 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In Sand City, 41 percent of households make more than 100 percent of the Area Median Income (AMI),
3 compared to 14 percent making less than 30 percent of AMI, which is considered extremely low income. In Monterey County, 30 percent AMI is the equivalent to the annual income of $21,305. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries.

Throughout the region, there are disparities between the incomes of homeowners and renters.

Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In Sand City, the largest proportion of both renters and homeowners fall in the Greater than 100 percent of AMI group. However, lower-income renters as a whole (0-80 percent of AMI), makeup 54 percent of households.

Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.4 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement or homelessness. In Sand City, Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty (67 percent), followed by Hispanic or Latinx residents (24 percent).

In Sand City, senior households makeup 10 percent of all households, of which 70 percent rent their homes. Conversely, the County and neighboring cities’ senior households primarily own their homes.

People with Disabilities
Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them. 3 Source: https://www.hudexchange.info/faqs/programs/neighborhood-stabilization-program-nsp/programrequirements/eligible-activitiesuses/how-is-area-median-income-calculated/ 4 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.
224
Chapter 3.0 – Overview of Housing Needs and Constraints 3-10 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Overall, 12 percent of people in Sand City have a disability of some kind.5 The California Department of Developmental Services provides ZIP code level counts on populations with developmental disabilities based on age and residence type. Due to Sand City sharing a ZIP code with the neighboring City of Seaside, reported figures for developmental disabilities are inclusive of both Sand City and Seaside. Between Sand City and Seaside, it is estimated 171 persons have a developmental disability. Of these, 92 are children (i.e., under the age of 18) and 79 are adults (Table 3-8). In both Sand City and Seaside, 12 percent of the population experiences some form of disability. Additionally, the most common living arrangement for individuals with disabilities in Sand City and Seaside is the home of parent/family/guardian followed by independent/supported living arrangements.

Table 3-8 Population with Developmental Disabilities by Age, Sand City & Seaside, 2021 Age Group Number
Age Under 18 92
Age 18+ 79
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2021).

NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.

Large Households
Large households are defined as households of five (5) or more individuals. Large households often have different housing needs than smaller households. Household income and local housing markets can greatly impact a household’s ability to afford adequately sized housing. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Similarly, large households may experience overpayment as a result of a high housing market and limited availability. Sand City has eight (8) large households all of which are renter households. Renter households make up the majority of all households by approximately 83 percent. This combined with a total cost burden rate of 63 percent for renter households (Figure A-27), suggests it is likely that large households in Sand City may experience overcrowding and/or overpayment.

Single-Parent Households
Households headed by one person are often at greater risk of housing insecurity, particularly femaleheaded households, who may be supporting children or a family with only one income. Female5 These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.
225
Chapter 3.0 – Overview of Housing Needs and Constraints 3-11 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging.

In Sand City, female-headed family households make up 25 percent of single-parent households and male-headed households makeup 75 percent. Conversely, the County and neighboring cities’ singleparent households are primarily comprised of female-headed households. In 2019, there were two female-headed households with children that fell in the Below Poverty Level category compared to zero male-headed households with children that fell in the Below Poverty Level category in Sand City.

Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern.

Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.

According to the California Employment Development Department, the average farm worker (Farming, Fishing, and Forestry Occupation) in Monterey County earned a median annual income of $29,901. This annual income places each individual or household in the very low-income bracket for Sand City. Additionally, this limited income may be significantly impacted by employment status (permanent or seasonal).

There are no agriculture uses within the City of Sand City. Nonetheless, Sand City shares the responsibility for farmworker housing as farmworkers may live within 75 miles of agricultural land uses (including dairy, vineyards and produce) and the City is within 75 miles of these uses.

Persons Experiencing Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Far too many residents who have found themselves cost burdened have ended up homeless in recent years, either temporarily or longer term.

Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances.

In Monterey County, the most common type of household experiencing homelessness are those without children in their care. Among households experiencing homelessness that do not have children, 83 percent are unsheltered. Similarly, 45 percent of homeless households with children are unsheltered. In Sand City, the number of households experiencing homelessness has decreased between 2017 to 2022 from 31 persons to three (3), respectively. 226
Chapter 3.0 – Overview of Housing Needs and Constraints 3-12 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Housing Stock Characteristics
Housing Growth
The number of new homes built in the Monterey Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. In 2019, Sand City had 176 housing units, up by approximately 60 percent from the 106 units that existed in 2010. This is substantially higher than the growth for Monterey County during the same period, which was two (2) percent.

Between 2015 and 2021, seven (7) housing units, all above moderate-income, were issued permits in Sand City which represents 13 percent of the RHNA number of 55 units assigned in the 5th Cycle Housing Element.

Housing Type
In recent years, most housing produced in the region and across the state consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing,” including duplexes, triplexes, townhomes, cottage clusters and accessory dwelling units. These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.

It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2019 Sand City’s mix of housing types was as follows:
 63 percent of homes were multifamily;
 35 percent were single-family detached;
 2 percent were single-family attached; and
 0 percent were mobile homes.

Between 2010 and 2020, the number of large multifamily units (5+ units) increased more than single-family units. Generally, in Sand City, the share of the housing stock that is large multi-family is higher than that of other jurisdictions in the region and detached single family homes is lower.

Housing Availability
Sand City has the second highest vacancy rates of the neighboring cities at 17 percent. At 18 percent, the City of Pacific Grove has the highest vacancy rate, just one point above Sand City. The City of Seaside has the lowest vacancy rate at eight (8) percent (9 percent below Sand City). Table 3-9 shows vacant housing units by type, revealing that of the units that are vacant, 63 percent of the units are for rent, suggesting a mismatch of housing need in some proportion (i.e., affordability, size, etc.). 227
Chapter 3.0 – Overview of Housing Needs and Constraints 3-13 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 3-9 Vacant Housing Units by Type, Sand City, 2019 Housing Unit Type Estimate Percentage
For rent 19 63%
Rented, not occupied 0 0%
For sale only 0 0%
Sold, not occupied 6 20%
For season, recreations, or occasional use 0 0%
For migrant workers 0 0%
Other vacant 5 17%
Total 30 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Table 3-10 shows housing permits issued by the City of Sand City by income group. Between 2015 and 2021, permits were issued for seven (7) housing units in Sand City. Of those, all were for above moderate-income units.

Table 3-10 Housing Permits by Income Group, Sand City, 2015-2021 Income Group Number Percent
Very Low-Income Permits 0 0%
Low-Income Permits 0 0%
Moderate-Income Permits 0 0%
Above Moderate-Income Permits 7 100%
Total 7 100%
SOURCE: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2022).

NOTE: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories: Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the jurisdiction is located. Low Income: units affordable to households making between 50 percent and 80 percent of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120 percent of the Area Median Income for the county in which the jurisdiction is located. Above Moderate Income: units affordable to households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located.

Displacement
Because of increasing housing prices, displacement is a major concern in the Monterey Bay Area.

Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.
228
Chapter 3.0 – Overview of Housing Needs and Constraints 3-14 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 According to the California Department of Housing and Community Development (HCD) AFFH Data Viewer and the Urban Displacement Project 2022 estimates, Sand City renter-occupied households earning between 0 to 80 percent AMI are at risk of potential displacement or gentrification.

Housing Costs and Affordability
Housing costs reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages and job outlook, coupled with land and construction costs. In the Monterey Bay Area, the costs of housing have been steadily increasing since 2000, besides a decrease during the Great Recession. Due to a lack of data on home and rental prices in Sand City, values for Seaside according to Zillow Home Value Index reports are provided.

A diversity of homes at all income levels creates opportunities for all Sand City residents to live and thrive in the community.
 Ownership: The median home value in 2022 was estimated to be $729,055. Home prices increased by 84 percent from 2014 to 2022 (33 percent from 2019-2022). This increase is less than that of Monterey County (95 percent from 2014-2022), but on par with neighboring cities.  Rental Prices: As of 2023, the average rent for an apartment in Sand City ranged from $1,450 (studio) to $4,048 (four-bedroom).

Table 3-11 reports the maximum monthly housing costs affordable to households according to income group in Monterey County. Income groups are based on the HCD 2022 State Income Limits Report, which considers housing affordable assuming a household can pay up to 30 percent of its monthly income toward housing.

As discussed earlier, the median home price in Sand City6 in December 2022 was $729,055, which is only affordable to above moderate-income households earning approximately $183,000 annually or more (42 percent of Sand City households are categorized as above moderate-income).

3.3 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost of land and building materials and the availability and cost of housing loans.

Housing Elements are required to investigate the impact of these constraints as they present themselves in the city for which the Housing Element is being prepared. This subsection provides a brief overview of governmental and non-governmental constraints in the City of Sand City. Please see Appendix B for a full discussion of housing constraints. 6 Reported median home values for Sand City are reflective of Seaside median home values due to lack of available data for Sand City.
229
Chapter 3.0 – Overview of Housing Needs and Constraints 3-15 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 3-11 Housing Affordability, Sand City, 2022
Income Group HCD Income Limits
Maximum Affordable Price
Monthly Rental Ownership
Extremely Low (0-30% AMI)
One Person $23,900 $598 $100,340
Two Person $27,300 $683 $114,614
Three Person $30,700 $768 $128,889
Four Person $34,100 $853 $143,163
Very Low (30-50% AMI)
One Person $39,800 $995 $167,093
Two Person $45,500 $1,138 $191,024
Three Person $51,200 $1,280 $214,954
Four Person $56,850 $1,421 $238,675
Low (50-80% AMI)
One Person $63,700 $1,593 $267,433
Two Person $72,800 $1,820 $305,638
Three Person $81,900 $2,048 $343,843
Four Person $91,000 $2,275 $382,048
Moderate (80-100% AMI)
One Person $75,650 $1,891 $317,603
Two Person $86,500 $2,163 $363,155
Three Person $97,300 $2,433 $408,497
Four Person $108,100 $2,700 $453,839
SOURCE: California Department of Housing and Community Development, State Income Limits, 2022, Monterey County NOTE: Maximum affordable sales prices are based on the following assumptions: 6.42 percent interest rate, 7 30-year fixed loan, and 5 percent down payment.

Summary of Governmental Constraints
Government constraints include an outdated General Plan, Sand City’s location within the Coastal Zone, unclear permit processes and the development review process, city fees, parking requirements, and permitting timelines, to name a few.

Land use regulation by the California Coastal Commission, in general, and the presence of environmentally sensitive habitat area, specifically, presents a significant government constraint on the production of housing in Sand City. Sand City’s location in the Coastal Zone is, no doubt, a significant part of the reason why the City has struggled to meets its regional housing needs allocation in past Cycles (e.g., seven units or 13 percent of RHNA in the 5th Cycle planning period). 7 Interest rate based on December 29, 2022 interest rate according to Freddie Mac Primary Mortgage Market Survey 230
Chapter 3.0 – Overview of Housing Needs and Constraints 3-16 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 For this 6th Cycle update, sites in the Coastal Zone were not identified for low- and moderateincome housing due to being adversely affected by Coastal Commission regulations. Additionally, sites with potential environmentally sensitive habitat were largely excluded.

In addition to the obvious constraints associated with the City’s location in the Coastal Zone, the City has identified a number of ways in which it can otherwise reduce the burden of governmental constraints on the production of housing. This 6th Cycle Housing Element update includes new programs to address constraints related to the following areas of government regulation in Table 3-12:

Table 3-12 Summary of Governmental Constraints and Programmatic Actions Governmental Constraint Programmatic Action
Location in the Coastal Zone
Certain areas of Sand City are located in the
California Coastal Zone and are therefore subject to
a host of regulations that are not present in
communities outside the Coastal Zone.

Program 1.H: Habitat Management Plan
Program 1.C: West End Housing Diversity Overlay
Zoning Ordinance and Development Review
Process
Multiple zoning districts and overlay districts
currently complicate permitting and can be an
impediment to developers. Updating the Zoning
Ordinance and consolidating districts can ease the
regulatory process.

Program 1.P: Clarify permit processing
Program 1.G: Objective Design Standards
Program 1.I: California Housing Opportunity and More Efficiency (HOME) Act Program 1.B: Amend the City’s Zoning Ordinance to align with new State Density Bonus laws and include 10 percent density bonus
Out-of-date General Plan
The City’s General Plan was adopted in 2002 and
had a 15-year planning horizon. The residential
densities allowed by the General Plan do not match
the residential densities allowed by the Zoning
Ordinance.

Program 1.E: Update the General Plan
City Fees
While Sand City’s building fees are lower than
surrounding communities, fees can still pose as an
impediment to development.

Program 3.H: Reduced Fees for Affordable Projects
Development Standards
Parking requirements
Minimum lot coverage
Program 1.J: Reduce Minimum Parking Standards
Program 1.C: West End Housing Diversity Overlay
Program 1.S: Changes to Zoning Code
Zoning to Permit a Variety of Housing Types
Emergency Shelters
Low-barrier Navigation Centers
Employee and Farmworker Housing
Transitional and Supportive Housing
Mobile and Manufactured Housing
Residential Care Facilities
Program 3.D: Emergency Shelters
Program 3.E: Low Barrier Navigation Center
Program 3.J: Employee and Farmworker Housing
Program 1.S: Changes to Zoning Code
Program 3.K: Residential Care Facilities for Residents with Disabilities Reasonable Accommodation Program 3.L: Update Reasonable Accommodation Procedures in the Municipal Code
SB 9 Program 1.I: California Housing Opportunity and More Efficiency (HOME) Act SOURCE: City of Sand City
231
Chapter 3.0 – Overview of Housing Needs and Constraints 3-17 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Summary of Non-Governmental Constraints
In terms of non-governmental constraints, the availability of land and land costs will remain a constraint to affordable housing, and programs to use publicly-owned lands—such as City-owned land—can make a difference. The cost of construction and construction materials has escalated dramatically in recent years due to both labor and construction supply shortages and prices continuing to remain very high as a result of ongoing inflation from the COVID-19 pandemic. High costs comprise a significant constraint, and to the degree that the City can subsidize affordable housing projects with available funds dedicated to housing, this too can make a difference. The 6th Cycle Housing Element includes programs to refer developers to Federal and State loan programs as well as referring individual property owners to Habitat for Humanity Monterey Bay’s ADU loan program, which also supplies labor to help defray construction costs.

This 6th Cycle Housing Element update includes new programs to address constraints related to the following areas of non-government regulation in Table 3-13:

Table 3-13 Summary of Non-Governmental Constraints and Programmatic Actions Non-Governmental Constraint Programmatic Action
Land and Construction Costs
As is the case in most Coastal cities, the land
and construction costs can be expensive and
result in constraints to housing production.

Program 1.N Small Sites Lot Consolidation
Program 1.B: Amend the City’s Zoning Ordinance to comply with new Density bonus State laws and include 10 percent density bonus
Program 1.C: West End Housing Diversity Overlay – MU-P Zoning District Amendments
Limited Land
Sand City’s size limits areas where new housing
can be constructed.

Program 1.C: West End Housing Diversity Overlay – MU-P Zoning District Amendments
Environmental Constraints
The presence of special status species and
environmentally sensitive habitat areas limit
areas available for development within the City.

Program 1.H: Habitat Management Plan
Availability of Financing
Developers typically pass the cost of financing
development projects on to buyers or tenants,
thus affecting the affordability and availability of
housing types for residents.

Program 5.C: State and Federal Housing Programs and Funding SOURCE: City of Sand City
232
Chapter 3.0 – Overview of Housing Needs and Constraints 3-18 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
233
Chapter 4.0 – Vacant and Available Sites 4-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

4.0 Vacant and Available Sites

4.1 Introduction
The 6th Cycle Regional Housing Needs Allocation Plan 2023-20311 has identified the region’s housing need as 33,274 units. The total number of housing units assigned is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Monterey Bay Area must plan compared to previous cycles.

4.2 Regional Housing Needs Allocation
In April 2022, AMBAG adopted its Draft Regional Housing Needs Allocation Plan. For Sand City, the RHNA required to be planned for this cycle is 260 units, which when achieved will represent a 70 percent increase in the city’s 2022 population.

RHNA Summary
Sand City’s share of the regional housing need for the eight-year period from 2023 to 2031 is 260 units, which is a 472 percent increase over the 55 units required by the 2014 to 2022 RHNA and a 141 percent increase over the City’s existing total housing units. This will result in more than doubling Sand City’s available housing units. The housing need is divided into the five income categories of housing affordability. Table 4-1, Sand City’s Regional Housing Needs Allocation – 2023–2031 shows Sand City’s RHNA for the planning period 2023 through 2031 in comparison to the RHNA distributions for Monterey County and the Monterey Bay Area region. 1 Source: Association of Monterey Bay Area Governments, April 2022 234
Chapter 4.0 – Vacant and Available Sites 4-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 4-1 Sand City’s Regional Housing Needs Allocation 2023–2031 Income Group Sand City
Units Percent
Monterey
County
Units
Percent
Monterey
Bay Area
Units
Percent
Very Low Income (<50% of AMI) 59 22.7% 4,412 21.7% 7,868 23.6% Low Income (50%-80% of AMI) 39 15.0% 2,883 14.2% 5,146 15.5% Moderate Income
(80%-120% of AMI) 49 18.8% 4,028 19.8% 6,167 18.5%
Above Mod. Income
(>120% of AMI) 113 43.5% 8,972 44.2% 14,093 42.4%
Total 260 100.0% 20,295 100.0% 33,274 100.0%
SOURCE: AMBAG 2022
Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2023 through December 15, 2031. The statutory adoption date for the 6th Cycle Housing Element is January 1, 2024—a full six months after the beginning of the planning period. To account for this discrepancy, the City of Sand City must account for the number of housing units permitted prior to adoption of the 6th Cycle Housing Element and apply these to the 2023-2031 RHNA. Accordingly, the units permitted in this period count towards the 2023-2031 planning period RHNA and are subtracted from the 6th Cycle RHNA. Table 4-2, Sand City’s Adjusted RHNA, shows the City of Sand City’s adjusted RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document.

Table 4-2 Sand City’s Adjusted RHNA
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome
Units
Total
Units
2023–2031 RHNA 59 39 49 113 260
Units permitted between June
30, 2023 and January 1, 2024 9 7 26 332 364
Remaining RHNA 50 32 23 -209 -
SOURCE: City of Sand City 2022
235
Chapter 4.0 – Vacant and Available Sites 4-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

4.3 Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023-2031 in order to accommodate Sand City’s assigned 260 housing units. The City doesn’t build the housing but creates the programs and policies to plan for where it should go and how many units could be on potential sites. See Appendix C for a complete and detail description of all sites included in Sand City’s inventory of vacant and available housing sites.

Table 4-3, Vacant/Partially Vacant and Available Sites, summarizes Sand City’s sites inventory for the 2023-2031 planning period.

Table 4-3 Vacant/Partially Vacant and Available Sites
Housing
Resource
Very LowIncome
Capacity
Lower Income
Capacity
Moderate
Income
Capacity
Above
ModerateIncome
Capacity (Net)
Total
Capacity
ADUs 2 1 0 -- 3
Total 71 46 56 332 505
RHNA 59 39 49 113 260
Diff 12 7 7 219 245
SOURCE: City of Sand City; EMC Planning Group Inc.

4.4 Summary and Conclusions
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate approximately 194 percent of the Sand City’s Regional Housing Needs Allocation for the 6th Cycle planning period.
236
Chapter 4.0 – Vacant and Available Sites 4-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
237
Section 5.0 – Energy Conservation 5-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024

5.0 Energy Conservation

5.1 Introduction
This chapter summarizes opportunities for energy conservation in the construction of housing in the City of Sand City. Planning to maximize energy efficiency and the incorporation of energy conservation and green building features can contribute to reduced housing costs for homeowners and renters, in addition to promoting sustainable community design and reduced dependence on vehicles. Such planning and development standards can also significantly contribute to reducing greenhouse gases.

Sand City is conveniently located within the Monterey Peninsula and is well positioned to provide additional housing close to jobs, services, and amenities which will reduce congestion and long commutes. The City is well served by Monterey Salinas Transit and is investing in pedestrian and trail improvements as means to reduce reliance on vehicles and reduce vehicle miles travelled (VMT) as discussed below.

5.2 Opportunities for Energy Conservation
The City of Sand City has been working with the Local Government Commission (LGC) to develop a set of sustainability best practices and in 2019 was awarded the Beacon Spotlight Award. The Beacon Program is sponsored by the Institute for Local Government and the Statewide Energy Efficiency Collaborative (SEEC). SEEC is an alliance between three statewide non-profit organizations and California’s four Investor-Owned Utilities.

Sand City’s sustainability best practices include:
 AMBAG Energy Watch has conducted energy assessments of all City facilities (Silver);  Through a partnership with AMBAG Energy Watch, all City facilities have been benchmarked using the Portfolio Manager tool (Gold);
 The City of Sand City has been working with AMBAG Energy Watch, in order to access technical assistance and financial incentives, including facility audits, rebates and on-bill financing (Gold);
 The City of Sand City owns a reverse osmosis desalinization water plant, which provides a renewable source of water for the City. The plant has been in operation since 2010 (Silver); 238
Section 5.0 – Energy Conservation 5-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  The City of Sand City is part of the Hero Program, a Property Assessed Clean Energy (PACE) Program, which allows community members to access loan funding to implement green building retrofits (Silver);
 The City of Sand City provides detailed recycling information to the community, which is available on the website (Silver);
 The City of Sand City considers life cycle pricing, to ensure that the maintenance, operating, insurance, disposal and replacement cost of products or services are taken into account when evaluating purchase options. For example, the City has worked to replace fluorescent and incandescent lights with LED lighting to reduce life cycle costs and reduce GHG emissions (Silver);
 In 2017, City of Sand City joined the Monterey Bay Community Power (since re-named Central Coast Community Energy, or 3CE), a CCA which will enable community members to purchase carbon-free electricity (Silver);
 The City of Sand City is part of AMBAG, the federally designated MPO for the Monterey, San Benito and Santa Cruz counties. The City of Sand City uses the transportation model provided by AMBAG, which includes different modes of transportation (Silver);  The City of Sand City is partnering with AMBAG to work on a Sustainable Communities Strategy, as part of SB 375 (Silver);
 The City has adopted a forward-looking policy as part of its Municipal Code (16.04) to protect trees within City boundaries (Silver);
 The City of Sand City has partnered with AMBAG Energy Watch to provide the community with webinars, seminars and trainings on a wide variety of sustainability topics, the most recent a webinar covering passive house design and certification (Silver); and  The City of Sand City has partnered with AMBAG Energy Watch to provide the community with information and project assistance to pursue energy efficiency opportunities (Gold).

The City requires compliance with Title 24 of the California Code of Regulations on the use of energy efficient appliances and insulation. Through compliance with Title 24, new residential development has reduced energy demand. The City also provides streamlining of permit applications for solar panel installations on residential units (see Chapter 15.14 – Streamlined Permitting for Small Residential Rooftop Solar Systems – of the Sand City Municipal Code).

Providing energy conservation opportunities to residents can ultimately lead to a reduction in utilityrelated housing costs for many households. 239
Section 5.0 – Energy Conservation 5-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May, 2024 Central Coast Community Energy
Central Coast Community Energy (3CE) is the community electricity provider for 33 Central Coast communities in Monterey, San Benito, Santa Cruz, San Luis Obispo, and Santa Barbara counties and is governed by local elected officials serving on the Board of Directors. 3CE was formed with the mission to reduce dependence on fossil fuels by providing carbon-free, affordable and reliable electricity and innovative programs within the community. 3CE is on a path to sourcing 100 percent clean and renewable energy by 2030. In collaboration with regional and statewide partners, 3CE provides customers with access to energy program rebates and incentives to electrify the region’s transportation, buildings, and agricultural sector. Sand City joined 3CE in 2017.

Pacific Gas & Electric Energy Efficiency Programming
Pacific Gas and Electric Company (PG&E), which provides energy efficiency services in Sand City, offers public information and technical assistance to homeowners regarding energy conservation.

PG&E also provides numerous incentives for energy efficiency in new construction and home remodeling. For example, remodeling rebates exist for projects installing three or more upgrades from a flexible menu of options that earn points towards incentives and rebates. This program's incentives range between $1,000 and $4,500. One of the more recent strategies in building energyefficient homes is following the U.S. Green Building Council's guidelines for LEED Certification.

The LEED for Homes program includes standards for new single-family and multi-family home construction.

Additionally, PG&E provides residents with information regarding energy saving measures, including various incentives and programs available to developers and residential property owners.

Table 5-1 includes a description of the various financial and energy-related assistance that PG&E offers low-income customers:

5.3 Transit Service
Sand City is conveniently located within the Monterey Peninsula and is well positioned to provide additional housing close to jobs, services, and amenities which will reduce congestion and long commutes. Occupants of residential housing units that are proximate to convenient transit options are more likely to use public transit.

The City is serviced by Monterey Salinas Transit (MST) and the Sand City Station located on Playa Avenue serves six bus routes – lines 17, 18, 20, 94, Jazz A, and Jazz B. Jazz A and B lines have a combined frequency of 15-minute service from 7:26am to 6:48pm and the station meets the definition of a “major transit stop” under AB 2097. Additionally, the SURF! Busway and Bus Rapid Transit are underway and once completed, there will also be public transit along Del Monte Boulevard every 15 minutes throughout the day.
240
Section 5.0 – Energy Conservation 5-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table 5-1 PG&E Programs and Incentives for Residential Properties Program Description
Energy Savings Assistance
Program
PG&E’s Energy Savings Assistance program offers free weatherization measures and energy-efficient appliances to qualified low-income households. PG&E determines qualified households through the same sliding income scale used for CARE. The program includes measures such as attic insulation, weather stripping, caulking, and minor home repairs. Some customers qualify for replacement of appliances including refrigerators, air conditioners, and evaporative coolers.

Energy Efficiency for Multifamily
Properties
The Energy Efficiency for Multi-Family Properties program is available to owners and managers of existing multi-family residential dwellings containing five or more units.

Multifamily Properties The Energy Efficiency for Multifamily Properties program is available to owners and managers of existing multifamily residential dwellings containing five or more units.

The program encourages energy efficiency by providing rebates for the installation of certain energy-saving products.

California Alternate Rates for
Energy (Care)
PG&E offers this rate reduction program for low-income households. PG&E determines qualified households by a sliding income scale based on the number of household members. The CARE program provides a discount of 20 percent or more on monthly energy bills.

Reach (Relief for Energy
Assistance Through Community
Help)
The REACH program is sponsored by PG&E and administered through a non-profit organization. PG&E customers can enroll to give monthly donations to the REACH program. Qualified low-income customers who have experienced uncontrollable or unforeseen hardships, which prohibit them from paying their utility bills may receive an energy credit. Eligibility is determined by a sliding income scale based on the number of household members. To qualify for the program, the applicant’s income cannot exceed 200 percent of the Federal poverty guidelines.

Medical Baseline Allowance The Medical Baseline Allowance program is available to households with certain disabilities or medical needs. The program allows customers to get additional quantities of energy at the lowest or baseline price for residential customers.

SOURCE: PG&E, 2022.

The City is also investing in public pedestrian infrastructure as a strategy to offset the demand for vehicle parking and to encourage walking in a pleasant and safe environment. New developments will be encouraged to participate in MST’s Group Discount Program and incorporate transportation demand management strategies to help encourage and increase use of transit reduce to greenhouse gas emissions.

5.4 Pedestrian and Bike Trails
The Monterey Bay Coastal Recreation Trail is a dedicated pedestrian and bike trail which stretches 18 miles along the Southern Monterey Bay from Castroville in the north to Pacific Grove in the south. The Monterey Bay Recreation Trail runs through Sand City on the west side of State Route 1 and connects Sand City to nearby cities including Monterey and Pacific Grove, which are top job centers in the region.
241
Section 5.0 – Energy Conservation 5-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May, 2024 Sand City is currently applying for a grant to the State Coastal Conservancy for funding to formalize and improve pedestrian trail network which will connect Sand City’s City-center east of State Route 1 to the Monterey Bay Coastal Recreation Trail and beaches on the west side of State Route 1.

Additionally, Sand City would like to pursue additional grants in the future to create a new segment of bike and pedestrian trail which would run through Sand City along the railroad right-of-way and would increase walkability and bicycle commuting in the area. The trail would pass by the proposed SURF! Busway and Bus Rapid Transit, which, once completed, will provide public transit service along Del Monte Boulevard every 15 minutes throughout the day.

5.5 Housing Element Programs Related to Energy Efficiency and Transit Use
As part of this Housing Element Update, the City of Sand City will implement the following programs as shown in Table 5-2:

Table 5-2 Summary of Energy and Resource Conservation Needs and Programmatic Actions
Energy and Resource
Conservation Need Programmatic Action
Energy Efficiency Program A: Energy Conservation and Solar Energy Opportunities Program B: Energy Rebate Programs
Reduced Vehicle Miles Travelled Program 4.C: Encourage transportation demand management strategies Program 4.D: Seek Funding for a Pedestrian and Bike Trail along the Railroad Right-of-Way
Program 4E: Expand Sand City’s Coastal Trail
242
Section 5.0 – Energy Conservation 5-6 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
243
Sand City Housing Needs & Fair Housing Report A

APPENDIX
244
245
Table of Contents
APPENDIX A SAND CITY HOUSING NEEDS & FAIR HOUSING REPORT...................... A-1 A.1 Introduction ........................................................................................................................... A-1 A.2 Population, Employment, and Household Characteristics ............................................. A-6 A.3 Disproportionate Housing Needs ..................................................................................... A-32 A.4 Special Needs Groups ......................................................................................................... A-44 A.5 Access to Opportunity ........................................................................................................ A-69 A.6 Housing Stock Characteristics........................................................................................... A-82 A.7 Fair Housing Enforcement and Outreach Capacity....................................................... A-98 A.8 Fair Housing Recommendations ..................................................................................... A-105 A.9 Conclusion .......................................................................................................................... A-110 Tables
Table A-1 Population Growth by Jurisdiction, 2010-2019 ....................................................A-7 Table A-2 Population Age Distribution by Jurisdiction, 2019 .............................................A-9 Table A-3 Population by Race by Jurisdiction, 2019 ........................................................... A-10 Table A-4 Employment Growth by Jurisdiction, 2010-2019 ............................................. A-18 Table A-5 Employment by Sector, Sand City, 2010 and 2019 ........................................... A-19 Table A-6 Unemployment Rate, Sand City, 2019................................................................. A-21 Table A-7 Regional Housing Needs Allocation .................................................................... A-21 Table A-8 Occupations by Mean Salary, Monterey County, 2019..................................... A-22 Table A-9 Housing Forecast by Jurisdiction, 2015-2045..................................................... A-23 Table A-10 Households by Income Category, Sand City, 2019 ........................................... A-27 Table A-11 Maximum Household Income by Household Size, Sand City, 2019 .............. A-31 Table A-12 Overview of Special Needs Groups..................................................................... A-44 Table A-13 Extremely Low-Income Households, Sand City, 2015-2019........................... A-48 Table A-14 Disability Status by Age, Sand City, 2021 ........................................................... A-55 246
Table A-15 Population with Developmental Disabilities by Age, Sand City & Seaside, 2021............................................................................................................ A-56 Table A-16 Population with Developmental Disabilities by Residence, Sand City & Seaside, 2021............................................................................................................ A-56 Table A-17 Homeless Population by Jurisdiction, 2017-2022.............................................. A-66 Table A-18 Homelessness by Household Type and Shelter Status, Monterey County, 2019 ........................................................................................................... A-66 Table A-19 Housing Unit Growth Trends by Jurisdiction, 2010-2019............................... A-82 Table A-20 Housing Units by Type by Jurisdiction, 2019 ..................................................... A-83 Table A-21 Housing Units by Type and Tenure, Sand City, 2019 ....................................... A-84 Table A-22 Household Size by Tenure by Jurisdiction, 2019 ............................................... A-85 Table A-23 Vacant Housing Units by Type, Sand City, 2019 ............................................... A-87 Table A-24 Housing Permits by Income Group, Sand City, 2015-2021............................. A-88 Table A-25 Median Home Value by Jurisdiction, 2019-2022 ............................................... A-94 Table A-26 Average Rent by Number of Bedrooms, Sand City, 2023 ................................ A-95 Table A-27 Housing Affordability, Sand City, 2022............................................................... A-96 Table A-28 Fair Housing Issues & Contributing Factors .................................................... A-108 Figures
Figure A-1 Major Public and Legal Actions that Influence Fair Access to Housing ......... A-5 Figure A-2 Population Growth, Sand City, 2010-2019........................................................... A-7 Figure A-3 Population Distribution by Age, Sand City, 2010-2019...................................... A-8 Figure A-4 Population by Race Compared to the County, 2019 ........................................... A-9 Figure A-5 Population by Race, Sand City, 2010-2019 ......................................................... A-11 Figure A-6 Predominant Population, Sand City, 2017-2021 ................................................ A-12 Figure A-7 Diversity Index, Sand City, 2018 .......................................................................... A-13 Figure A-8 R/ECAPS, Monterey County, 2009-2013........................................................... A-15 Figure A-9 Poverty Status, Sand City....................................................................................... A-16 Figure A-10 RCAAs, Monterey County, 2015-2019................................................................ A-17 247
Figure A-11 Worker Earnings by Place of Residence & Place of Work, Sand City, 2019 .......................................................................................................................... A-20 Figure A-12 Household by Type by Jurisdiction, 2019 ........................................................... A-24 Figure A-13 Changes in Household Types, Sand City, 2010-2019........................................ A-25 Figure A-14 Households by Household Size by Jurisdiction, 2019 ...................................... A-25 Figure A-15 Median Household Income by Jurisdiction, 2019 ............................................. A-28 Figure A-16 Median Household Income, Sand City, 2015-2019........................................... A-29 Figure A-17 Income by Category, Sand City, 2019.................................................................. A-30 Figure A-18 Housing Tenure by Jurisdiction, 2019 ................................................................. A-30 Figure A-19 Percent of Households with any of the Four Severe Housing Problems, Monterey County .................................................................................................... A-34 Figure A-20 Housing Problems by Tenure, Sand City, 2015-2019 ....................................... A-35 Figure A-21 Severe Housing Problems by Tenure, Sand City, 2015-2019........................... A-35 Figure A-22 Overcrowding by Severity, Sand City, 2019 ....................................................... A-36 Figure A-23 Overcrowding by Tenure and Severity, Sand City, 2019 .................................. A-36 Figure A-24 Overcrowding by Severity by Jurisdiction, 2019................................................ A-37 Figure A-25 Overcrowded Households, Sand City, 2019 ....................................................... A-38 Figure A-26 Overcrowded Households, Sand City, 2021 ....................................................... A-39 Figure A-27 Cost Burden Severity by Jurisdiction, 2015-2019 .............................................. A-40 Figure A-28 Cost Burden by Tenure, Sand City, 2015-2019.................................................. A-41 Figure A-29 Cost Burden by Home Owners, Sand City, 2015-2019 .................................... A-42 Figure A-30 Cost Burden by Renter Households, Sand City, 2015-2019 ............................ A-43 Figure A-31 Percent Living Below the Poverty Line by Race and Ethnicity, Sand City, 2019 ....................................................................................................... A-49 Figure A-32 Senior Population by Jurisdiction, 2019 .............................................................. A-51 Figure A-33 Senior Households by Tenure by Jurisdiction, 2019 ......................................... A-51 Figure A-34 Senior Household Income, Sand City, 2019 ....................................................... A-52 Figure A-35 Population by Disability Status by Jurisdiction, 2021........................................ A-54 Figure A-36 Trends in Persons with Disabilities, Sand City, 2012-2021.............................. A-54 248
Figure A-37 Households by Size and Tenure, Sand City, 2019 ............................................. A-58 Figure A-38 Single-Parent Households by Jurisdiction, 2019 ................................................ A-59 Figure A-39 Trends in Single-Parent Households, Sand City, 2010-2019............................ A-60 Figure A-40 Hired Farm Labor, Monterey County, 2002-2017............................................. A-62 Figure A-41 TCAC Opportunity Composite Score, Sand City, 2022 ................................... A-70 Figure A-42 TCAC Opportunity Areas – Economic Domain, Monterey County ............. A-71 Figure A-43 TCAC Opportunity Economic Score, Sand City, 2023 .................................... A-73 Figure A-44 TCAC Opportunity Areas – Education Domain, Monterey County ............. A-74 Figure A-45 TCAC Opportunity Education Score, Sand City, 2022 .................................... A-75 Figure A-46 CalEnviroScreen 4.0, Monterey County.............................................................. A-77 Figure A-47 CalEnviroScreen 4.0, Sand City, 2021 ................................................................. A-78 Figure A-48 Social Vulnerability Index by Census Tract, Sand City, 2018 .......................... A-79 Figure A-49 Walkability Index, Sand City ................................................................................. A-81 Figure A-50 Housing by Type, Sand City, 2010-2019............................................................. A-84 Figure A-51 Household Tenure by Income Level, Sand City, 2019 ..................................... A-85 Figure A-52 Household Tenure by Race, Sand City, 2019 ..................................................... A-86 Figure A-53 Vacancy Rates by Jurisdiction, 2019 .................................................................... A-87 Figure A-54 Sensitive Communities, Monterey County .......................................................... A-91 Figure A-55 Displacement Risk, Sand City, 2022 .................................................................... A-92 Figure A-56 Housing Stock Age, Sand City, 2019 ................................................................... A-93 Figure A-57 Housing Choice Vouchers by Census Tract, Sand City .................................... A-97 Figure A-58 FHEO Cases Total, Monterey County, 2020 ................................................... A-100 Figure A-59 FHEO Cases, Disability Bias, Monterey County, 2020 .................................. A-101 249
Appendix A – Housing Needs & Fair Housing Report A-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Appendix A
Sand City Housing Needs & Fair Housing Report
A.1 Introduction
The following report provides both the City of Sand City Housing Needs Assessment and Fair Housing Assessment. This analysis primarily utilizes U.S. Census Bureau American Community Survey (ACS) 5-Year Estimate data and California Department of Housing and Community Development (HCD) data. It is important to note that due to the exceptionally small population size of Sand City, there are discrepancies between U.S. Census Bureau ACS data and HCD data, specifically when analyzing Sand City at a regional scale.

Housing Needs Assessment
The Housing Needs Assessment for the City of Sand City provides and in-depth analysis of the City’s housing and population conditions including population, employment, economics, household and housing stock characteristics. This assessment develops context for the City’s goals, programs, and policies for the 6th Cycle Housing Element.

Fair Housing Assessment
In 2018, Governor Brown signed Assembly Bill (AB 686) requiring all public agencies to administer programs related to housing in a way that affirmatively furthers fair housing (AFFH) effective January 1, 2019.1
This affirmative duty is not limited to those agencies with relationships with the federal government and is broadly applied throughout agencies at the state and local level. Now, all public agencies must both (1) administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing, and (2) take no action inconsistent with this obligation”2 AB 686 also made changes to Housing Element Law to incorporate requirements to AFFH as part of the Housing Element and General Plan to include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices. 1 Public agencies receiving funding from the U.S. Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The federal obligation stems from the fair housing component of the federal Civil Rights Act mandating federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice. 2 California Department of Housing and Community Development Guidance, 2021, page 9. 250
Appendix A – Housing Needs & Fair Housing Report A-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd. (a)(1).)”
SOURCE: California Department of Housing and Community Development Guidance, 2021, page 14.

History of segregation in the region
The United States’ oldest cities have a history of
mandating segregated living patterns—and cities
located in south Monterey Bay are no exception.

Monterey County and the Monterey Bay region have
an interesting past, as far as the fight to end racial
segregation is concerned. Some of the segregation in
the Monterey Bay area can be attributed to historically discriminatory practices, such as: redlining and
discriminatory mortgage approvals—as well as
“structural inequities” in society, and “self-segregation” (i.e., preferences to live near similar people).

Carol McKibben’s 2012 book Racial Beachhead: Diversity
and Democracy in a Military Town details the history of Seaside and adjacent cities, and how the military
presence in the region led to a shift in demographics
and migration within the region. With the construction
of the Fort Ord military base, the area transitioned in the early and mid-20th century, and became more diverse.

McKibben, in a contribution to the Blackpast.org news article, further states: “The locating of the sprawling base there discouraged both housing and infrastructure development and led to Seaside’s reputation as a less desirable community than neighboring Monterey. The Depression in the 1930s reinforced that perception as migrants from the American Dust Bowl flocked into This history of segregation
in the region is important
not only to understand how
residential settlement
patterns came about—but,
more importantly, to
explain differences in
housing opportunity among
residents today. In sum, not
all residents had the ability
to build housing wealth or
achieve economic
opportunity. This
historically unequal playing
field in part determines why
residents have different
housing needs today.
251
Appendix A – Housing Needs & Fair Housing Report A-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Monterey for work in the canneries. They quickly settled in Seaside, where property values were lowest in the area. In fact, squatters often simply claimed a piece of land and built a home on it.

World War II brought expansion of Fort Ord and another new population infusion of soldiers, many of whom were black and Filipino, along with military families who were mixed race.”3 In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Monterey Bay area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous populations and how the effects of those atrocities are still being felt today. Historically, the Monterey Peninsula had been home to indigenous populations for more than 10,000 years. The original inhabitants of present-day Monterey County were the Ohlone (Costanoan), Salinan, and Esselen tribes who have “…lived in communities related by language, family, and custom.”4 However, “[d]ue to the devastating policies and practices of a succession of explorers, missionaries, settlers, and various levels of government over the centuries since European expansion, these tribes have lost the vast majority of their population as well as their land.”5 The lasting influence of these policies and practices have contributed directly to the disparate housing and economic outcomes collectively experienced by Native populations today.6
The Monterey County Weekly news outlet highlights the past and present effects of restrictive covenants, along with other housing issues such as “the lack of affordable housing, generational wealth inequities and zoning issues,” as contributing factors to the higher levels of segregation within the county.7 Many local cities included restrictive covenants prohibiting the sale of property to non-Whites which greatly contributed to the racial patterns seen on the Peninsula today. This was a common practice used by jurisdictions where large military bases were present to control who was able to purchase property and affect the racial makeup of the city.

Though Sand City’s population demographics are not as diverse as Seaside’s, enacting policies and programs that promote AFFH and highlight the community’s assets could attract individuals to the area, and encourage those that work in Sand City to live there as well.

The timeline of major Federal Acts and court decisions related to fair housing choice and zoning and land use appears in Figure A-1.
3 https://www.blackpast.org/african-american-history/race-and-color-california-coastal-community-seaside-story/. 4 From Racial Beachhead: Diversity and Democracy in a Military Town, by Carol Lynn McKibben, 2012, Stanford University Press.
5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/ 7 A new group sets out to explore the history of racist housing covenants in Monterey County. | News | montereycountyweekly.com
252
Appendix A – Housing Needs & Fair Housing Report A-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 As shown in the timeline, exclusive zoning practices were common in the early 1900s. Courts struck down only the most discriminatory and allowed those that would be considered today to have a “disparate impact” on classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co. (272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy” the character and desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of color, including immigrants.

The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial zoning ordinances appeared in U.S. cities. This coincided with a shift away from federal control over low-income housing toward locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies)—the latter of which is only effective when adequate affordable rental units are available.

Figure A-1 provides a timeline of major legal and public actions that have influenced fair access to housing beginning in 1910.

The City of Sand City has come a long way from its roots as a center for heavy industry, including coastal sand mining and is now focusing on addressing the significant need for housing. Local business owners paved the way for the City’s incorporation on May 31, 1960, which created the public arena for local control and to avoid annexation into other jurisdictions, including Seaside. Local Sand City demographics are reflective of the City’s industrial base.

Industrial development began in the 1940’s and ‘50’s in Sand City and the business owners, who bought large pieces of property to develop businesses and some residential uses, were predominantly White. Businesses established during this time included auto body and repair, refuse disposal, sand mining, and aggregates distribution.

Recent history shows a steady progress toward redevelopment of the town, starting with the development of two shopping centers where there was once significant urban blight. Also, in 1996, the City reached an agreement to retain between 70 to 80 percent of its coastline for parks and open space, while maintaining two development areas primarily dedicated to coastal resort development which is allowed in the City’s certified local coastal program. This blending of fiscal responsibility and coastal stewardship is also reinforced by the City’s ability to garner a larger percentage of property tax revenues within the redevelopment project plan area adopted in 1987.
253
Appendix A – Housing Needs & Fair Housing Report A-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-1 Major Public and Legal Actions that Influence Fair Access to Housing SOURCE: Root Policy Research
254
Appendix A – Housing Needs & Fair Housing Report A-6 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Sand City has served the Monterey Peninsula as a commercial base, currently providing jobs for approximately 3,000 and attracting 40,000 to 50,000 shoppers daily to the city’s businesses.

Redevelopment has given this small city the opportunity to redefine itself in a progressive, sustainable way. In 2005, the City received unanimous coastal commission approval for a small desalination facility that was completed in early 2009. This small facility allows the city to continue its redevelopment efforts without depending upon a sustainable regional water supply being developed by other agencies that has proven difficult to achieve over more than thirty years in the planning stages. The City’s plant uses brackish water from on-shore wells situated near the coast for purifying into potable drinking water. Following this reverse osmosis process, the byproduct water, or waste discharged that is not potable, is injected into beach wells for recycling. This byproduct water is the approximate salinity as ocean water and causes no disruption or negative impact on marine life.

The City is now transitioning from its industrial past to an inclusive and vibrant arts community, similar to the transition of Emeryville.

Overview of Sand City
Over the past 20 years, Sand City has experienced growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the City has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many cities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across incomes being able to purchase homes or meet surging rents. Additionally, with increasing population and economic pressures comes the space for inequitable housing practices. The following Housing Needs and Fair Housing Assessment develops context for the goals, programs, and policies that Sand City will implement to address inequities in the 6th Cycle Housing Element.

A.2 Population, Employment, and Household Characteristics Population characteristics impact current and future housing needs in a community. A city’s population growth, age composition and race and ethnicity composition determine the type and extent of housing needed. The following section provides analysis of population characteristics and local trends that affect housing demand in Sand City.

Population Growth
For the purposes of this Housing Needs report, the cities of Del Rey Oaks, Seaside, and Pacific Grove were chosen for comparative analysis upon the basis of population size. The cities of Monterey, Marina, and Salinas population sizes do not provide effective comparative analyses due to extreme size differences to Sand City. Table A-1 shows population growth in Sand City, the County, 255
Appendix A – Housing Needs & Fair Housing Report A-7 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 and nearby cities between 2010-2019. In Sand City, the population increased approximately 32 percent (76 residents) from 2010 to 2019. While the County’s population steadily increased, Sand City’s population experienced fluctuations in growth. Similarly, the City of Del Rey Oaks’ population also experienced ebbs and flows in growth.

Table A-1 Population Growth by Jurisdiction, 2010-2019
Jurisdictions Population
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
County
407,435 411,385 416,199 420,569 424,927 428,441 430,201 433,168 433,212 433,410 Sand City 234 292 264 307 355 312 301 355 318 310
Del Rey Oaks 1,774 1,734 1,781 1,779 1,727 1,673 1,683 1,555 1,596 1,525 Seaside 32,431 32,735 3,3050 33,402 33,729 33,999 34,120 34,259 34,077 33,956 Pacific Grove 14,902 14,995 15,102 15,241 15,365 15,505 15,546 15,617 15,567 15,522 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Figure A-2 illustrates population growth in Sand City between 2010-2019. Sand City’s population increased by 32 percent from 2010 to 2019. Although the City has experienced growth since 2010, it has been accompanied by a trend of flux rather than a steady increase.

Figure A-2 Population Growth, Sand City, 2010-2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 0 50
100
150
200
250
300
350
400
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Population
Year
256
Appendix A – Housing Needs & Fair Housing Report A-8 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Age Characteristics
A community’s housing needs are partly determined by preferences of age groups and household types (age, family/non-family, presence of children, female-headed, etc.). When seeking housing, households may prioritize factors such as size, accessibility, and price. For instance, younger and middle-aged households may seek homes that can accommodate a growing household size, whereas older adults may seek to downsize to an apartment with assistive care services or a smaller more affordable single-family home. Disabled persons may seek homes that are accessible and include universal design or visitability features. Overall, the life stages of a population determine the housing stock that is needed in a community.

In 2010, Sand City’s predominant age group was individuals between 35 and 44 years of age (22.6 percent). Between 2015 and 2019, the City experienced a shift upward in age toward the 45 to 54 age group (18.9 percent in 2015) and then back down to the 25 to 34 age group (18.7 percent in 2019).

Figure A-3 shows that between 2010 and 2019, the general age of the population has been slowly increasing; however, the most populous age groups in the City appear to be individuals between 25 and 54 years of age. Accordingly, the most stable population between 2010 and 2019 has been individuals zero to four years of age. As of 2019, the City’s median age was 36. Overall, the City’s aging trend suggests a demand for housing geared toward middle-aged to senior groups.

Figure A-3 Population Distribution by Age, Sand City, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2015, 2019 Table A-2 shows that Sand City’s most populous age group in 2019 was individuals 25 to 34 years of age (18.7 percent). Compared to the County and nearby cities, Sand City has the largest 25 to 34 age group followed by Seaside (17.6 percent). In contrast, Del Rey Oaks (7 percent percent) and Pacific Grove (11 percent) have larger 75+ populations.

Age 0-4 Age 5-14 Age 15-
24 Age 25-
34 Age 35-
44 Age 45-
54 Age 55-
64 Age 65-
74 Age 75-
84 Age 85+
2010 5.1 8.6 13.7 11.1 22.6 18.8 13.3 2.6 4.3 0.0
2015 7.1 14.5 17.3 16.0 12.8 18.9 8.0 3.8 1.6 0.0
2019 6.8 9.1 12.9 18.7 13.2 13.2 15.5 8.7 1.9 0.0
0%
5%
10%
15%
20%
25%
257
Appendix A – Housing Needs & Fair Housing Report A-9 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-2 Population Age Distribution by Jurisdiction, 2019 Jurisdiction Population Age
0-4 5-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Monterey County 7.3% 14.8% 14.3% 14.4% 13.0% 11.8% 11.1% 7.7% 3.6% 1.9% Sand City 6.8% 9.1% 12.9% 18.7% 13.2% 13.2% 15.5% 8.7% 1.9% 0.0% Del Rey Oaks 5.7% 8.3% 5.7% 12.6% 12.5% 13% 18.9% 15.9% 4.4% 2.9% Seaside 8.5% 12.7% 14.8% 17.6% 12.7% 11.4% 11.4% 6.1% 3.0% 2.0% Pacific Grove 3.5% 12.2% 8.5% 10.0% 10.4% 13.3% 14.7% 16.5% 6.6% 4.3% SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Race and Ethnicity Characteristics
Understanding the racial and ethnic composition of a city is vital to ensuring equal opportunity to housing for all groups. Figure A-4 illustrates the racial and ethnic composition of Sand City compared to the County; however, it is important to note that the statistics are unreliable due to the small size of Sand City.

Figure A-4 Population by Race Compared to the County, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
When comparing the City and the County, non-Hispanic White and Hispanic or Latino populations are the most represented; these populations show a nearly even contrast in percentages for the County and City. Non-Hispanic White individuals comprise the majority of Sand City’s population (58 percent) followed by Hispanic or Latino (30 percent). In contrast, the County’s largest population is Hispanic or Latino individuals (59 percent) followed by non-Hispanic White (30 percent). Despite having relatively limited diversity, Sand City has a slightly larger Black or African American
Indian or
Alaska
Native
Asian
Black or
African
American,
NonHispanic
White,
NonHispanic
Some
other race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
Sand City 1.6% 3.2% 4.8% 58.1% 2.3% 30.0% 0.0%
Monterey County 0.2% 5.4% 2.5% 29.9% 2.9% 58.7% 0.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
258
Appendix A – Housing Needs & Fair Housing Report A-10 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 American population (5 percent) compared to the County (3 percent). Those identifying as American Indian or Alaska and Native Hawaiian or Other Pacific Islander represent the smallest population groups within the County and Sand City.

Table A-3 provides a comparison of racial and ethnic composition by jurisdiction. In 2019, Sand City (58 percent) and the neighboring City of Pacific Grove (79 percent) had the largest nonHispanic White populations compared to Del Rey Oaks (72 percent), City of Seaside (32 percent), and the County (30 percent). Sand City had the lowest Asian population (3 percent) than surrounding cities and the County. The Black or African American, non-Hispanic population in Sand City (5 percent) is the second largest when compared to surrounding cities and the County.

Table A-3 Population by Race by Jurisdiction, 2019
Jurisdiction
American
Indian or
Alaska
Native
Asian,
alone
Black or
African
American,
NonHispanic
White,
NonHispanic
Some
Other
Race
Hispanic
or
Latino
Native
Hawaiian
and Other
Pacific
Islander
Monterey
County 0.2% 5.4% 2.5% 29.9% 2.9% 58.7% 0.5%
Sand City 1.6% 3.2% 4.8% 58.1% 2.3% 30% 0%
Del Rey Oaks 0.0% 6.8% 3.8% 72.1% 4.5% 12.5% 0.3%
Seaside 0.2% 9.8% 6.9% 32.1% 5.5% 43% 2.6%
Pacific Grove 0.2% 5.5% 0.9% 79.1% 4.5% 9.8% 0.0%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
When analyzing race and ethnicity in a city, it’s important to understand how demographics have changed over time. Figure A-5 illustrates changes in population by race between 2010-2019 in Sand City. During this time frame, Sand City’s population composition has experienced fluctuations in nearly all populations. In 2015, all populations experienced a decrease in size with the exception of American Indian or Alaska Native populations (0.7 percent increase), Hispanic or Latino populations (12.2 percent increase), and Some Other Race/Multiple Races (3.2 percent). In 2019, Sand City saw growth in all populations except Hispanic or Latino populations (9 percent decrease), Some Other Race/Multiple Races (0.9 percent decrease), and Native Hawaiian and Other Pacific Islander populations (zero percent; consistent over the nine-year period). American Indian or Alaska Native populations have steadily increased from 2010 (zero percent) to 2019 (1.6 percent). 259
Appendix A – Housing Needs & Fair Housing Report A-11 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-5 Population by Race, Sand City, 2010-2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2015, 2019 Demographic characteristics such as the racial and ethnic composition of a city are necessary to inform the housing needs of a community inclusive of cultural norms and preferences.

Figure A-6 illustrates the predominant population in Sand City. According to the HCD Data Viewer, Sand City’s predominant population is Hispanic/Latino. In contrast, U.S. Census ACS 5-Year 2019 Estimates report Sand City has little diversity with approximately 58 percent White and 30 percent Hispanic households. This discrepancy is likely due to Sand City’s extremely small size and analyzing data at different scales.

American
Indian or
Alaska
Native
Asian
Black or
African
American,
NonHispanic
White,
NonHispanic
Some
other race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
2010 0.0% 3.0% 5.6% 63.2% 0.0% 28.2% 0.0%
2015 0.6% 1.3% 3.8% 51.9% 3.2% 39.1% 0.0%
2019 1.6% 3.2% 4.8% 58.1% 2.3% 30.0% 0.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
260
Appendix A – Housing Needs & Fair Housing Report A-12 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-6 Predominant Population, Sand City, 2017-2021 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Diversity Index
The Diversity Index measures the degree to which the five major ethnic populations (non-Hispanic White, non-Hispanic Black, Asian and Pacific Islander, Hispanic, and Two or more races) are evenly distributed across a geographic area. The index ranges from 0 to 1 – where 0 is low diversity, meaning only one group is present and 1 is high diversity, meaning an equal proportion of all five groups is present).

Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.

Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 31. 261
Appendix A – Housing Needs & Fair Housing Report A-13 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-7 illustrates the level of diversity in Sand City. According to the HCD AFFH Data Viewer map of diversity, Sand City’s diversity level is greater than 85, reflecting a high diversity level across the City. In contrast, U.S. Census ACS 5-Year 2019 Estimates report Sand City has little diversity with approximately 58 percent White and 30 percent Hispanic populations. This discrepancy is likely due to Sand City’s extremely small size and analyzing data at different scales. For example, Sand City shares a census tract (140) with the City of Seaside, within which a block group is also spread across both cities. Based on the mapping provided by the HCD AFFH Data Viewer, it appears this data is inclusive of both Seaside and Sand City racial/ethnic populations. According to ESRI mapping8 ,
diversity levels in 2023 have remained relatively the same (88.3 percent).

Figure A-7 Diversity Index, Sand City, 2018
SOURCE: California Department of Housing and Community Development AFFH Data Viewer 8 https://affh-data-and-mapping-resources-v-2-0-cahcd.hub.arcgis.com/datasets/CAHCD::diversity-index-2018-blockgroup-/explore?location=36.614050%2C-121.850580%2C15.15 262
Appendix A – Housing Needs & Fair Housing Report A-14 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Local Knowledge
Based on local knowledge, there isn't a specific area within Sand City that exhibits a concentration of any particular racial or ethnic group. The city's small size makes it challenging for segregative patterns to emerge. Additionally, Sand City is predominantly made up of low and moderate-income households, without significant income disparity gaps, which often contribute to segregative patterns in a city.

Racially or Ethnically Concentrated Areas of Poverty and Affluence Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and Racially Concentrated Areas of Affluence (RCAAs) represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies that created and perpetuate these areas of high opportunity and exclusion.9 R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:

A census tract that has a non-White population of 50 percent or more (majority-minority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR A census tract that has a non-White population of 50 percent or more (majority-minority) AND the poverty rate is three times the average tract poverty rate for the County, whichever is lower.

SOURCE: California Department of Housing and Community Development Guidance, 2021.

Poverty and Segregation
Regional Trends
As shown in Figure A-8, R/ECAP areas in Monterey County solely occur in Salinas. In total, there are five R/ECAP tracts identified in Salinas. According to 2019 UDP estimates, populated R/ECAP areas in Salinas all had a Hispanic/Latino concentration. The central R/ECAP is adjacent to other tracts that are mostly Hispanic/Latino. Comparatively, other R/ECAP areas adjoin tracts that have a concentration of both Hispanic/Latino and white populations. The western area of Salinas had a R/ECAP area that adjoins a tract that contains Asian American-Hispanic/Latino-white concentration. No other R/ECAP areas are identified throughout Monterey County. 9 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124 263
Appendix A – Housing Needs & Fair Housing Report A-15 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-8 R/ECAPS, Monterey County, 2009-2013
SOURCE: HCD AFFH Data Viewer
Local Trends
While there are no R/ECAPs as defined by HUD in Sand City, the city does have higher levels of poverty than surrounding areas. According to 2021 ACS estimates, approximately 10.8 percent of Sand City’s population is living below the poverty line, a decrease of 24.8 percent from the 2012 poverty rate (35.6 percent). Figure A-9 shows the percentage of the population with an earned income below the poverty level. The AFFH Data Viewer reports between 20-30 percent of households in Sand City live below the poverty line, compared to the ACS estimates, which reported

10.8 percent. This is likely due to the small nature of Sand City and reporting data at different scales. 264
Appendix A – Housing Needs & Fair Housing Report A-16 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-9 Poverty Status, Sand City
SOURCE: HCD AFFH Data Viewer
Concentrated Areas of Affluence
It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity, and conversely, RCAAs are meant to identify areas of particular advantage and exclusion.

RCAAs
HCD and HUD’s definition of an RCAA is a census tract 1) with a percentage of its total White population that is 1.25 times higher than the average percentage of the COG region’s White population; and 2) has a median income that is 2 times higher than the COG Area Median Income (AMI). Generally, these are understood to be neighborhoods in which there are both high concentrations of non-Hispanic White households and high household income rates.

SOURCE: California Department of Housing and Community Development Guidance, 2023 265
Appendix A – Housing Needs & Fair Housing Report A-17 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Regional Trends
Figure A-10 illustrates RCAA tracts in Monterey County that are concentrated in communities strewn along the Monterey Salinas Highway, primarily south and east of the corridor.

Unincorporated areas of the county have the highest concentration of RCAAs compared to incorporated cities. Specifically, they are located in the southern region of the peninsula, south of the city of Monterey, and east of the Monterey Salinas Highway near the Toro Regional Park. The city of Monterey is the only incorporated city in Monterey County that has RCAAs. By tract, RCAAs generally have higher percentages of white populations and lower percentages of non-white populations. One census tract (116.02) that is identified as a RCAA contains a large percentage (28 percent) of children living in single-parent, female-headed households compared to the rest of the county.

Figure A-10 RCAAs, Monterey County, 2015-2019
SOURCE: HCD AFFH Data Viewer
Local Trends
There are no RCAAs in Sand City. Due to the extremely small size of the city, there is little to no differentiation in levels of poverty, median household income, or racial concentrations. Sand City is located in Census Tract 140, Block Group 1. At the census tract level, data may present skewed 266
Appendix A – Housing Needs & Fair Housing Report A-18 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 percentages because the neighboring City of Seaside is also located in Census Tract 140. This is the case when interpreting the HCD AFFH Data Viewer, which explains the differences in ACS reported data. According to 2021 ACS estimates, the median household income in Sand City was $60,682 and the predominant population is Hispanic/Latino.

Employment
Employment characteristics can significantly impact the housing needs and trends of a community from income and wage scale to job location and industry. Employment and income are determinates of a population’s ability to purchase housing including the type of housing and size, both of which can induce negative effects such as overpayment and overcrowding. Table A-4 illustrates employment growth for Sand City, the County, and nearby cities from 2010-2019.

Table A-4 Employment Growth by Jurisdiction, 2010-2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010-2019 Between 2010-2019, Sand City experienced an employment growth of 54 percent compared to the County which experienced 7 percent growth. Nearby cities, Del Rey Oaks and Pacific Grove experienced declines in employment. Sand City’s increase in employment presents an opportunity to construct additional housing options for the existing and future workforce.

Table A-5 shows 2010 and 2019 employment data for Sand City by sector. Key findings in employment data include the following:
 In 2010, the largest employer in Sand City was professional, scientific, management, and administrative services industries (29 percent), whereas in 2019 the largest employer in the City was arts, entertainment, recreation, accommodation, and food services (25 percent);  Public administration industries experienced the greatest increase between 2010 and 2019 (400 percent), followed by arts, entertainment, recreation, accommodation, and food services (250 percent) and finance and insurance, real estate, and rental leasing (125 percent); Jurisdictions Employed Population
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
County
176,225 175,425 176,109 174,453 175,455 177,333 180,631 182,439 185,025 187,708 Sand City 108 139 111 121 153 138 131 167 165 166
Del Rey Oaks 868 903 905 858 897 848 849 795 807 788
Seaside 15,318 15,109 15,074 14,529 14,561 14,636 15,225 15,321 15,557 15,478 Pacific Grove 7,428 7,282 7,168 7,374 7,214 7,252 7,363 7,304 7,019 7,142 267
Appendix A – Housing Needs & Fair Housing Report A-19 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Three sectors experienced declines in employment between 2010 and 2019 including manufacturing (100 percent), wholesale trade (75 percent), and professional, scientific, management, and administrative services (10 percent);
 Both agriculture, forestry, fishing and hunting, and mining industries (0 percent) and transportation and warehousing, and utilities (0 percent) industries experienced zero growth; and  Overall, there was a 54 percent increase in employment for Sand City residents between 2010 and 2019.

Table A-5 Employment by Sector, Sand City, 2010 and 2019 Industry Sector
2010 2019 Percent
Change
2010-2019 People
Employed
Percent of City
Employment
People
Employed
Percent of City
Employed
Agriculture, forestry, fishing and
hunting, and mining 0 0% 10 6% 0%
Construction 10 9% 15 9% 50%
Manufacturing 3 3% 0 0% -100%
Wholesale Trade 12 11% 3 2% -75%
Retail Trade 14 13% 15 9% 7%
Transportation and warehousing,
and utilities 7 7% 7 4% 0%
Information 0 0% 2 1% -
Finance and insurance, real
estate, and rental leasing 4 4% 9 5% 125%
Professional, scientific,
management, and administrative
services
31 29% 28 17% -10%
Education services, healthcare,
and social assistance 13 12% 25 15% 92%
Arts, entertainment, recreation,
accommodation, and food services 12 11% 42 25% 250%
Public Administration 2 2% 10 6% 400%
Total Employment 108 100% 166 100% 54%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2019 Balance of Jobs to Workers
A city houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a city may have job sites that employ residents from the same city but more often employ workers commuting from outside of it. Smaller cities will typically have more employed residents than jobs and export workers, while larger cities tend to have a surplus of 268
Appendix A – Housing Needs & Fair Housing Report A-20 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 jobs and import workers. To some extent, the regional transportation system is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale.

One measure of local imbalance is the relationship between workers and jobs. A city with a surplus of workers, “exports” workers to other parts of the region, while a city with a surplus of jobs must conversely “import” them.

A community may offer employment for relatively low-income workers but have relatively few housing options for those workers. Conversely, it may house residents who are low-wage workers but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear.

Figure A-11 illustrates earnings of workers in comparison to worker place of residence and place of work in Sand City. The City has more jobs than residents at all income levels. Specifically, the City experiences the largest imbalances for low- and moderate-wage jobs to residents, respectively (where low-wage refers to jobs paying less than $25,000 and moderate-wage refers to jobs paying less than $49,999).

Figure A-11 Worker Earnings by Place of Residence & Place of Work, Sand City, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Historically, Sand City has served the Monterey Peninsula as the industrial hub. Therefore, the jobs– housing imbalance is not unusual, but will require intentional development of housing at all income levels to effect balance.
16 37 45 29 45
305
418
547
235
164
0 100
200
300
400
500
600
Less than
$9,999
$10,000 to
$24,999
$25,000 to
$49,999
$50,000 to
$74,999
$75,000 or
more
Place of Residence
Place of Work
269
Appendix A – Housing Needs & Fair Housing Report A-21 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Unemployment rates are essential to understanding the affordability needs of a community when determining housing options. Table A-6 provides a breakdown of unemployment rates for Sand City, the County, and nearby cities. Sand City has the lowest unemployment rate compared to surrounding cities and the County. This indicates an approximate 2 percent less than Pacific Grove, 3 percent less than the County and Del Rey Oaks, and 4 percent less than Seaside.

Table A-6 Unemployment Rate, Sand City, 2019
Jurisdictions Unemployment Rate
Monterey County 4.9%
Sand City 1.8%
Del Rey Oaks 5.1%
Seaside 6.1%
Pacific Grove 3.9%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
The Monterey Bay Area approved Regional Housing Needs Assessment (RHNA) Methodology is broken down into four income levels:
 Very Low Income (50 percent or less of the County’s median income);  Low Income (50-80 percent of the County’s median income);  Moderate Income (80-120 percent of the County’s median income); and  Above moderate Income (120 and above the County’s median income).

Sand City’s RHNA allocation is presented in Table A-7.

Table A-7 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low-Income10 <30 29
Very Low-Income <50 30
Low-Income 50-80 39
Moderate-Income 80-120 49
Above Moderate-Income 120+ 113
Total 260
SOURCE: City of Sand City
10 Extremely low-income RHNA is found as a subset within the very low-income category for all other tables in this document.
270
Appendix A – Housing Needs & Fair Housing Report A-22 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In Monterey County, the median household income in 2019 was an estimated $71,015 compared to Sand City at $63,333. Table A-8 lists occupations by mean salary in Monterey County. According to Table A-8, the occupations that fall below 50 percent of the median income are Food Preparation and Serving-Related Occupations; Personal Care and Services Occupations; and Farming, Fishing, and Forestry Occupations. The majority of occupations in Monterey County have an average income that is low (50-80 percent AMI) or very low (<50 percent AMI). If applied to Sand City, it should be anticipated that affordable housing is needed to accommodate a majority of low- and very low-income households.

Table A-8 Occupations by Mean Salary, Monterey County, 2019 Occupation Salary
Management Occupations $117,738
Business and Financial Operations Occupations $78,900
Computer and Mathematical Occupations $96,980
Architecture and Engineering Occupations $92,554
Life, Physical, and Social Science Occupations $84,516
Community and Social Services Occupations $59,549
Legal Occupations $103,094
Education, Training, and Library Occupations $69,296
Arts, Design, Entertainment, Sports, and Media Occupations $56,599 Healthcare Practitioners and Technical Occupations $115,486 Healthcare Support Occupations $42,625
Protective Service Occupations $70,161
Food Preparation and Serving-Related Occupations $30,127 Building and Grounds Cleaning and Maintenance Occupations $36,330 Personal Care and Service Occupations $31,984
Sales and Related Occupations $42,099
Office and Administrative Support Occupations $44,239
Farming, Fishing, and Forestry Occupations $29,901
Construction and Extraction Occupations $60,870
Installation, Maintenance, and Repair Occupations $54,180 Production Occupations $41,905
Transportation and Material Moving Occupations $37,144
SOURCE: California Employment Development Division, Occupational Wage data, 2019 271
Appendix A – Housing Needs & Fair Housing Report A-23 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Household Characteristics
Characteristics of a household include household type and size, income, affordability, and special needs groups. According to HCD, a household is defined as “All persons who occupy a housing unit. The occupants may be a single family, on person living alone, two or more families living together, or any groups of related or unrelated persons who share living arrangements.” Large families, single parent households, female-headed households, or extremely low- and low-income households may be classified as Special Needs groups. Special Needs groups are identified due to the unique nature of household characteristics and potential housing challenges faced. The following section examines household characteristics trends in Sand City and the region.

Table A-9 provides an overview of the projected housing units needed in the AMBAG region, Monterey County, Sand City, and nearby cities, Seaside and Pacific Grove.11 Sand City is forecast to have a household growth of approximately 199 percent by 2045 – an increase of 350 housing units.

Compared to the neighboring city of Del Rey Oaks, this reflects 138 percent more growth.

Table A-9 Housing Forecast by Jurisdiction, 2015-2045
Jurisdictions 2015 2020* 2025* 2030 2035* 2040* 2045*
Percent
Change
from 2015-
2045
AMBAG Region 262,660 267,812 277,645 288,386 296,352 301,307 304,900 16% Monterey County 139,177 141,764 146,716 153,852 159,100 162,612 165,328 19% Sand City 176 189 198 228 333 446 526 199%
Del Rey Oaks 741 741 762 809 848 1,052 1,195 61%
Seaside 10,913 10,920 11,437 11,925 12,248 12,604 13,192 21% Pacific Grove 8,184 8,201 8,214 8,267 8,336 8,400 8,463 3% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
Household Type and Size
Figure A-12 illustrates household characteristics by type in 2019 for Sand City, the County, and nearby cities, Del Rey Oaks, Seaside, and Pacific Grove. In Sand City, the largest household type was single-person households (48 percent) followed by married-couple family households (32 percent).

In contrast, the largest household type in the County and nearby cities was married-couple family households followed by single-person households. Sand City has the lowest percentage of femaleheaded households (3 percent) compared to the County (13 percent), Del Rey Oaks (7 percent), Seaside (12 percent), and Pacific Grove (9 percent).
11 Source: AMBAG Regional Growth Forecast, 2022
272
Appendix A – Housing Needs & Fair Housing Report A-24 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-12 Household by Type by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Figure A-13 illustrates household changes between 2010-2019 in Sand City. Over the last decade, single-person households have remained the largest household type in the City followed by marriedcouple family households. Despite making up the second largest household type in the City, married-couple family households experienced the greatest decline (11.7 percent) between 2010- 2019, and single-person households experienced the greatest increase (8 percent). These changes in household type over time indicate a need for housing options that appeal to smaller sized households (keeping affordability in mind).

13.3%

2.7% 6.9% 12.2% 8.8%

6.5%

8.2% 4.5%

7.6%

2.8%

52.5%

32.2%

51.4%

48.2%

45.9%

6.1%

8.9%

3.7%

8.3%

6.4%

21.6%

47.9%

33.5%

23.7%

36.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monterey
County
Sand City Del Rey Oaks Seaside Pacific Grove
Single-person Households
Other Non-Family Households
Married-couple Family Households
Male-headed Households
Female-Headed Households
273
Appendix A – Housing Needs & Fair Housing Report A-25 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-13 Changes in Household Types, Sand City, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010-2019 NOTE: Non-family households include unrelated persons living in one housing unit.

Figure A-14 illustrates households by household size for Sand City, the County, and nearby cities.

Sand City’s largest household type according to size is 1-person households (48 percent) followed by 2-person households. This is consistent with findings in Figure A-14, with single-person households remaining the largest household type since 2010. This reflects a demand for affordable housing units appealing to single-person households.

Figure A-14 Households by Household Size by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019

2.0% 6.3% 11.2% 14.3% 13.0% 13.4% 10.7% 6.5% 2.0% 2.7% 4.1% 0.0%

3.2% 2.4% 2.6% 2.8% 2.1%

3.9% 6.8% 8.2%

43.9% 40.5%

35.2%

37.3%

31.2% 25.4% 30.7% 39.0%

32.4% 32.2%

10.2%

4.0%

6.4%

4.8%

7.1% 11.3% 8.6%

9.7%

10.8% 8.9%

39.8%

49.2% 44.0% 41.3% 46.1% 47.2% 47.9%

40.9%

48.0% 47.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Single-person Households
Other Non-Family Households
Married-couple Family Households
Male-headed Family Households
Female-Headed Family Households

47.9%

23.9% 33.5% 23.7%

36.0%

24.0%

31.1%

38.2%

29.9%

36.2%

22.6%

34.0%

21.4%

31.6%

22.2%

5.5% 11.0% 6.9% 14.8% 5.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sand City Monterey
County
Del Rey Oaks Seaside Pacific Grove
1-Person Household 2-Person Household
3-4-Person Household 5-Person or More Household
274
Appendix A – Housing Needs & Fair Housing Report A-26 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Local Knowledge
Based on local knowledge, a proportion of families in Sand City reside in the city's R-1, R-2, and R-3, MU-P Zones, located south of Tioga Avenue. Given that the city's residential land uses have predominantly developed over the past 30 years, much of its residential areas are compact and closely clustered. This pattern reflects the city's ongoing transition from being primarily industrybased to a blend of commercial and residential uses.

As previously discussed, the predominant household type in Sand City is single-person households, accounting for 48 percent. This can be traced back to the city's history as an industrial and manufacturing center, attracting many residents seeking employment. However, over the past three decades, the city has gained recognition for its vibrant artist community, reshaping its image to emphasize creativity and innovation. Loft spaces and work/live units have become prevalent housing options in the city, catering to artists and others who wish to integrate their work and living spaces.

Married-couple families represent the second largest household type, comprising 32 percent of the city's households. This shift can also be linked to Sand City's transformation from an industrial hub to a mixed-use area blending commercial and residential spaces.

Multi-family housing is the most common housing type in Sand City. This trend is influenced by the limited availability of land, which encourages higher-density living. Additionally, the city's residents value affordability, convenience, and a pedestrian-friendly environment, further driving the demand for multi-family housing options.

There are no state licensed childcare facilities in Sand City. Residents rely on Monterey County childcare services and those of the Monterey Peninsula Unified School District, which has childcare services located in neighboring Seaside.

Household Income
Affordability is a key component in determining the housing needs of a community. Household income determines the ability of a household to purchase or rent a housing unit. However, fluctuating household incomes may result in the need to spend disproportionate amounts of income on housing costs, referred to as overpayment or cost burden. As a result, this may also lead to overcrowding and/or substandard living conditions.

The following are income categories based on area median income (AMI) according to HCD:
 Extremely low-income: households earning 0-30 percent of AMI;  Very low-income: households earning 30-50 percent of AMI;  Low-income: households earning 50-80 percent of AMI;
275
Appendix A – Housing Needs & Fair Housing Report A-27 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Moderate-income: households earning 80-100 percent of AMI; and  Above-moderate income: households earning 100-120 percent of AMI.

Government Code Section 65583(a) defines extremely low-income households as earning 30 percent or below area median income, and considers them as a subset of the very low-income category. The extremely low-, very low-, and low-income groups are referred to as lower-income.

Table A-10 summarizes households by income category in Sand City in 2019. Lower-income households makeup the majority of households in the City (48 percent) followed by above moderate-income households (41 percent). Nearly 15 percent of the households in Sand City identify as extremely low-income. This reflects a need for more affordable housing in the City, and in tandem with Figure A-11 and Figure A-12 findings, it is likely that the demand for single-person households is accompanied by a need for affordable options.

Table A-10 Households by Income Category, Sand City, 2019 Income Category (% of County MFI) Households Percent
Extremely Low-Income (30% MFI or less) 20 14%
Very Low-Income (30-50% MFI) 10 7%
Low-Income (50-80% MFI) 39 27%
Moderate-Income (80-100% MFI) 14 10%
Above Moderate-Income (>100% MFI) 60 41%
Total 143 100%
SOURCE: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 Figure A-15 illustrates the median household income in Sand City, the County, and nearby cities in 2019. Sand City’s median household income was $63,333 – approximately $7,682 lower than the County. The City of Del Rey Oaks had the highest median household income at $95,000 followed by Pacific Grove ($88,250). Understanding Sand City’s median household income clarifies what income category households identify with and what is deemed affordable. 276
Appendix A – Housing Needs & Fair Housing Report A-28 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-15 Median Household Income by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Figure A-16 illustrates median household income across Sand City. According to the HCD AFFH Data Viewer, Sand City’s households experience no variation in median household income based on location, with households earning below $55,000 annually. In contrast, U.S. Census ACS 5-Year 2019 Estimates report Sand City has a median household income of $63,333. This discrepancy is likely due to Sand City’s extremely small size and analyzing data at different scales and time periods. $71,015.00
$63,333.00
$95,000.00
$63,575.00
$88,250.00
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Monterey
County
Sand City Del Rey
Oaks
Seaside Pacific
Grove
277
Appendix A – Housing Needs & Fair Housing Report A-29 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-16 Median Household Income, Sand City, 2015-2019 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Figure A-17 provides a breakdown of 2019 incomes by category in Sand City. Twenty-three (23) percent of Sand City residents earn an annual income between $50,000-$74,999. Conversely, an approximate 40 percent are earning less than $50,000 and less than the City’s median household income. Of the 40 percent earning below the median household income, 18 percent are earning below $25,000.
278
Appendix A – Housing Needs & Fair Housing Report A-30 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-17 Income by Category, Sand City, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Figure A-18 illustrates housing by tenure in Sand City, the County, and nearby cities. Eight-three (83) percent of the households in Sand City are renters. This reflects an approximate 34 percent higher renter population than the County (49 percent) and 54 percent higher than Del Rey Oaks (29 percent). This may be an indicator that the housing market is too high for the majority of local households to purchase units.

Figure A-18 Housing Tenure by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
18%
4%
18%
23%
11%
12% Less than $25,000
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
17%
51%
71%
40% 46%
83%
49%
29%
60% 54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sand City Monterey
County
Del Rey Oaks Seaside Pacifc Grove
Owner Occupied Renter Occupied
279
Appendix A – Housing Needs & Fair Housing Report A-31 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The California Housing and Community Development releases State Income Limits annually to inform housing affordability for households according to size. Table A-11 shows the maximum annual income level for each income group according to household size in Monterey County. The maximum annual income is then used to calculate the maximum affordable housing payments for households according to income level and eligibility for federal housing assistance.

Table A-11 Maximum Household Income by Household Size, Sand City, 2019 Income Category
Household Size
1 2 3 4 5 6 7 8
Extremely Low-Income $23,900 $27,300 $30,700 $34,100 $36,850 $39,600 $42,300 $46,630 Very Low-Income $39,800 $45,500 $51,200 $56,800 $61,400 $65,950 $70,500 $75,050 Low-Income $63,700 $72,800 $81,900 $91,000 $98,300 $105,600 $112,850 $120,150 Median Income $63,050 $72,100 $81,100 $90,100 $97,300 $104,500 $111,700 $118,950 Moderate-Income $75,650 $86,500 $97,300 $108,100 $116,750 $125,400 $134,050 $142,700 SOURCE: California Department of Housing and Community Development, State Income Limits, 2022 The household income characteristics in Sand City reveal a demand for the development of more affordable housing options that appeal to lower-income households. Sand City is comprised of primarily lower-income households (48 percent), most of which identify as single-person households (48 percent).

Local Knowledge
As previously mentioned, Sand City's compact size sets it apart. The southern portion of the city, located south of Tioga Avenue, predominantly houses residential uses. This results in a mixedincome residential landscape, with a significant 83 percent of households being renter-occupied.

The city features approximately six areas designated for R-1 single-family dwelling units and R-2 one/two family dwelling units. These zones are very small and situated adjacent to mixed-use (MUP) and commercial zones, meaning even single-family neighborhoods are closely situated to multifamily developments. This proximity is largely due to the city's limited residential space.

Sand City has a poverty rate of approximately 11 percent, and according to local knowledge, there is not a specific area within the city that exhibits concentrated poverty. The city doesn't have any federally or state-assisted residential units. However, at the local level, The Independent at 600 Ortiz Avenue offers 11 deed-restricted affordable rental units. This mixed-use multi-family development is zoned MU-P and is situated adjacent to an R-2 zoning district.

Given this context, any concentrations of higher-income households likely reside in the few singlefamily zones scattered throughout the city. Sand City's future residential development vision 280
Appendix A – Housing Needs & Fair Housing Report A-32 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 emphasizes expanding mixed-use developments to maintain an affordable, pedestrian-friendly, and sustainable community. This vision aligns with the city's goals of preserving environmentally sensitive habitats north of Tioga Avenue and along its coastal area west of Highway 1. Notably, a significant portion of the city's land falls within the coastal zone, rendering it largely undevelopable, a condition that aligns with environmental preservation objectives.

A.3 Disproportionate Housing Needs
Housing Problems and Severe Housing Problems
The following section details housing problems and severe housing problems in Sand City according to the Census Bureau Comprehensive Housing Affordability Strategy (CHAS).

Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.”
SOURCE: California Department of Housing and Community Development Guidance, 2021, page 39.

The CHAS data set provides in-depth analysis on housing needs by income level according to types of households. According to CHAS, housing problems are defined as having one or more of the following variables:
 Incomplete kitchen facilities;
 Incomplete plumbing facilities;
 More than one person per room; and
 Cost burden greater than 30 percent.

Severe housing problems are defined as having one or more of the following variables:
 Incomplete kitchen facilities;
 Incomplete plumbing facilities;
 More than 1.5 persons per room; and
 Cost burden greater than 50 percent.
281
Appendix A – Housing Needs & Fair Housing Report A-33 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Additionally, CHAS defines cost burden as the ratio of housing costs to household income. The following defines cost burden by renter and owner:
 Renter Cost Burden: gross rent (contract rent plus utilities); and  Owner Cost Burden: select monthly owner costs including mortgage payment, utilities, association fees, insurance, and real estate taxes.

Regional Trends
According to 2016-2020 ACS estimates, Monterey County has approximately 1,002 substandard housing units which comprise less than 1 percent of the total occupied units in the county. A housing unit is considered substandard if it lacks complete plumbing or kitchen facilities. Of the 1,002 substandard units, approximately 41 percent lack complete plumbing facilities and 59 percent lack complete kitchen facilities. As displayed in Figure A-19, areas that experienced the greatest concentration of housing problems are typically in the urban areas. Specifically, the greatest proportions (greater than 40 percent of total households) were in the southeastern portion of the county including the cities of Gonzales (43 percent), Greenfield (43 percent), and King City (47 percent). In contrast, cities in the northwestern areas of the county had less than 40 percent of households with one of the four housing problems.
282
Appendix A – Housing Needs & Fair Housing Report A-34 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-19 Percent of Households with any of the Four Severe Housing Problems, Monterey County
SOURCE: California Department of Housing and Community Development AFFH Data Viewer Local Trends
Figure A-20 and Figure A-21 illustrate housing problems by tenure and severe housing problems by tenure in Sand City during 2019. Approximately 68 percent of renter households have at least one of four housing problems and 33 percent have at least one of four severe housing problems. In contrast, 17 percent of owner households experience at least one housing problem and severe housing problem.
283
Appendix A – Housing Needs & Fair Housing Report A-35 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-20 Housing Problems by Tenure, Sand City, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
NOTE: The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.

Figure A-21 Severe Housing Problems by Tenure, Sand City, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
NOTE: The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 person per room, and cost burden greater than 50%.

Overcrowding
Understanding the prevalence of overcrowded households within a community helps determine the need for affordable and adequately sized housing units for the community. Overcrowding is defined as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding may occur due to a lack of available affordable and/or adequately sized housing units. Cultural norms and customs combined with low-income or lack of adequately size housing units can result in 17%
68%
83%
32%
0% 20% 40% 60% 80% 100%
Owner %
Renter %
Household has at least 1 of 4
Housing Problems
Household has none of 4 Housing
Problems OR cost burden not
available, no other problems
17%
33%
83%
67%
0% 20% 40% 60% 80% 100%
Owner %
Renter %
Household has at least 1 of 4 Housing
Problems
Household has none of 4 Housing
Problems OR cost burden not
available, no other problems
284
Appendix A – Housing Needs & Fair Housing Report A-36 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 overcrowding too. For example, in Asian culture, households are often comprised of multigenerations. If this custom is also compounded by low-income or lack of adequately sized housing units overcrowding may occur.

Figure A-22 illustrates overcrowding by severity in Sand City during 2019. Ninety percent of households (132 households) in Sand City do not experience overcrowding. Six percent of households (eight households) in Sand City are overcrowded and 4 percent (six households) are severely overcrowded.

Figure A-22 Overcrowding by Severity, Sand City, 2019
SOURCE: U.S. Census Bureau, 2019
In Sand City, zero owner-occupied households experience overcrowding, whereas 12 percent (14 households) of renter-occupied households experience some form of overcrowding (Figure A-23).

Of the 12 percent of overcrowded renter households, 5 percent (six households) is considered severe (more than 1.5 occupants per room) and 7 percent (eight households) is considered moderate (1.01 to 1.5 occupants per room). This is indicative of a lack of affordable housing options that accommodate the needs of Sand City renter households.

Figure A-23 Overcrowding by Tenure and Severity, Sand City, 2019 SOURCE: U.S. Census Bureau, 2019
100%
88%
0%
7%
5%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Owner Occupied Renter Occupied
More than 1.5
Occupants per Room

1.01 to 1.5 Occupants
per Room

1.0 or Less Occupant
per Room
90%
6%
4%
0% 20% 40% 60% 80% 100%

1.0 or Less Occupants per Room

1.0 to 1.5 Occupants per Room
More than 1.5 Occupants per Room
285
Appendix A – Housing Needs & Fair Housing Report A-37 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-24 illustrates overcrowding by severity in Sand City, the County, and nearby cities in 2019.

The City of Del Rey Oaks households experience the least amount of overcrowding (0.8 percent) and no severe overcrowding, compared to Sand City households that experience 6 percent overcrowding and 4 percent severe overcrowding. Monterey County has a higher overall percentage of households that experience overcrowding (9 percent) and severe overcrowding (5 percent) compared to Sand City.

Figure A-24 Overcrowding by Severity by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, 2019
According to the HCD AFFH Data Viewer, Sand City’s households experience no variation in overcrowding based on location, with more than 20 percent of households experiencing overcrowding (Figure A-25). In contrast, U.S. Census ACS 5-Year 2019 Estimates report 10 percent of households in Sand City experience some type of overcrowding. This discrepancy is likely due to Sand City’s extremely small size and analyzing data at different scales and time periods.

As of 2021, the HCD AFFH Data Viewer reported that rates of overcrowding in Sand City decreased ranging between 5 to 10 percent (Figure A-26). This is reflective of U.S. Census ACS 5-Year 2021 Estimates. Regionally, the majority of jurisdictions have less than 5 percent of overcrowded households. Regions located to the north and east of Sand city have higher rates of overcrowding than those located south and along the coastline. Similar to Sand City, the cities of Seaside and Marina have overcrowding rates ranging between 5 to 15 percent. 90%
86%
99%
88%
92%
6%
9%
1%
7%
3%
4% 5%
0%
6% 5%
75%
80%
85%
90%
95%
100%
Sand City Monterey
County
Del Rey
Oaks
Seaside Pacific
Grove
More than 1.5 Occupants per
Room

1.0 to 1.5 Occupants per Room

1.0 or Less Occupants per Room
286
Appendix A – Housing Needs & Fair Housing Report A-38 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-25 Overcrowded Households, Sand City, 2019
SOURCE: California Department of Housing and Community Development AFFH Data Viewer 287
Appendix A – Housing Needs & Fair Housing Report A-39 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-26 Overcrowded Households, Sand City, 2021
SOURCE: California Department of Housing and Community Development AFFH Data View Local Knowledge
According to local knowledge, there are no areas of concentrated overcrowding in Sand City. As previously mentioned, the city's housing landscape is primarily characterized by multi-family housing, making up 83 percent of housing units. Interestingly, five or more-bedroom units are the most prevalent housing type, with approximately 39 percent of all households in the city residing in such accommodations.
288
Appendix A – Housing Needs & Fair Housing Report A-40 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Code enforcement reports have not identified any complaints or instances of suspected overcrowding in Sand City.

For the duration of this report, overpayment will be referred to as cost burden.

The cost burden rates of owners and renters in a community provide insight to housing needs such as, the affordability of the local housing market and the availability of housing units that accommodate household needs like size and housing type. Additionally, federal and state agencies examine cost burden to determine a community’s need for housing assistance.

Figure A-27 illustrates cost burden severity in Sand City, the County, and nearby cities. Compared to the County and nearby cities, Sand City households have higher rates of cost burden. In Sand City, 34 percent of households (52 households) are cost burdened and 21 percent (32 households) are severely cost burdened. The City of Seaside has a slightly higher rate of severely cost burdened households (23 percent) compared to Sand City (21 percent). Overall, the City of Del Rey Oaks has the lowest percent of households experiencing any type of cost burden.

Figure A-27 Cost Burden Severity by Jurisdiction, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
42%
59% 67%
50%
61%
34%
22%
21%
26%
21%
21% 18% 11%
23% 16%
3% 1% 1% 1% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sand City Monterey County Del Rey Oaks Seaside Pacific Grove 0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing Not Computed
289
Appendix A – Housing Needs & Fair Housing Report A-41 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 According to 2019 ACS 5-year estimates, approximately 50 percent (20 households) of extremely low-income households experience cost burden; 33 percent (four households) of very low-income households experience cost burden; 12 percent (four households) of low-income households experience cost burden; and 17 percent (four households) of above moderate-income households experience cost burden. No moderate-income households experience cost burden.

Figure A-28 illustrates cost burden by tenure in Sand City. Renter households experience substantially higher rates of cost burden (38 percent or 48 households) and severe cost burden (25 percent or 32 households) than owner households. Fifteen percent of owner households experience cost burden (four households) and none experience severe cost burden. Figure A-18 reports that 83 percent of households in Sand City are renters – this in tandem with 63 percent of renter households experiencing some type of cost burden reflects a demand for more affordable housing units. Moreover, this indicates that Sand City has high barriers to access the housing market for the majority of its households (48 percent single-person households).

Figure A-28 Cost Burden by Tenure, Sand City, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
According to the HCD AFFH Data Viewer, Sand City’s households experience no variation in cost burden based on location, with 40-60 percent of owner-occupied households experiencing cost burden (Figure A-29). Neighboring Seaside also has concentrations of 40-60 percent homeowners experiencing cost burden. Across Monterey County, there are areas with concentrations between 20- 60 percent of owner households experiencing cost burden. 85%
33%
15%
38%
0%
25%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Owner Occupied Renter Occupied
Not Computed
50%+ of Income Used for
Housing
30%-50% of Income Used
for Housing
0%-30% of Income Used
for Housing
290
Appendix A – Housing Needs & Fair Housing Report A-42 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-29 Cost Burden by Home Owners, Sand City, 2015-2019 SOURCE: California Department of Housing and Community Development AFFH Data Viewer 291
Appendix A – Housing Needs & Fair Housing Report A-43 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-30 highlights cost burden for renter households within Sand City and other areas in Monterey County. Renter-occupied households are significantly more affected by cost burden than owner-occupied households ranging from 60-80 percent. The map below shows no variations in cost burden based on location.

Figure A-30 Cost Burden by Renter Households, Sand City, 2015-2019 SOURCE: California Department of Housing and Community Development AFFH Data Viewer 292
Appendix A – Housing Needs & Fair Housing Report A-44 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 A.4 Special Needs Groups
Special needs groups are those that may face particular challenges in obtaining adequate housing due to inherent circumstances such as age, disabilities, household size, income level, age, and occupation.

Large families, single parent households, female-headed households, or extremely low- and lowincome households, and homeless persons may be classified as Special Needs groups. Special Needs groups are identified due to the unique nature of household characteristics and potential housing challenges faced. Table A-12 provides a summary of special needs groups in Sand City.

Table A-12 Overview of Special Needs Groups
Special Needs Groups Count Percent of Total
Households
Percent of Total
Population
Total population 310 -- 100%
Total occupied units (households) 145 100% --
Extremely Low-income (0-30% of HAMFI)
households 20 households 14% --
Total Senior Population 33 persons -- 11%
Senior Owner-Households 6 households 4% --
Senior Renter-Households 10 households 7% --
Persons with Disabilities 48 persons -- 15%
Persons with Developmental
Disabilities1 171 persons -- --
Large Households 8 households 6% --
Single-Parent Households 16 households 11% --
Single-Parent, Female Headed
Households with Children (under 18)
Below Poverty Line
2 households 1% --
People Living in Poverty 51 persons -- 17%
Farmworkers2 26,929 persons -- --
Migrant Farmworkers 4,972 persons -- --
Seasonal Farmworkers 12,123 persons -- --
Permanent Farmworkers 14,806 persons -- --
Persons Experiencing Homelessness3 3 persons -- --
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019; U.S. Census Bureau CHAS 2015-2019 Data; USDA Statistics Services; California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2021).

NOTE: 1. Data provided by California Department of Developmental Services and taken at the ZIP code level. Reported figures are representative of Sand City and Seaside due to a shared ZIP code.

2. Agriculture, forestry, fishing and hunting and mining industry. Farmworker data is taken of the population 16 years and older. Data provided by USDA Statistics Services and taken at the County level for 2017; includes seasonal and permanent farmworkers.

3. Total results from 2022 Monterey Homeless Count and Survey Comprehensive Report. 293
Appendix A – Housing Needs & Fair Housing Report A-45 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Effectiveness of 5th Cycle Policies and Programs for Special Needs Groups During the update of the 5th Cycle Housing Element, the City of Sand City committed to enact various programs that were designed to increase access to affordable housing options for all special needs groups, including: ELI residents and households, seniors, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness. Many of these policies and programs were supportive in nature, with the intent to support the County or other service providers and community organizations in their efforts to address the needs of the protected groups. As such, the effectiveness most of the 5th Cycle policies and programs is subjective, and difficult to be measured. The following 5th Cycle programs were aimed at supporting the development of housing for special needs groups and conducting outreach and publicizing available resources. Below is a summary of outcomes for each program related to special needs groups. Appendix D provides a detailed list of all of the policies and programs that the City committed to during the 5th Cycle.

Program 4.4.1.A Support the County of Monterey’s Homeless Continuum of Care Plan. The City’s Public Facilities (PF) Zone was updated to address building and/or providing housing for homeless persons. The program, now Program 3.A, will be revised to complete additional amendments to the Zoning Code and including information on the City’s housing webpage with links to County programs and resources.

Program 4.4.1.B Homeless: Support for Day Facility. The Salvation Army Day Center continues to operate under a conditional use permit and owns the property. This facility provides support for between 70-100 homeless and at-risk families daily. Presently, the City does not conduct an annual review on conditional use permits unless a complaint is reported (i.e., conditional use permit does not allow overnight sleeping, but does allow the provision of office support, laundry facilities, mailing services, vaccinations, etc.) The property owner has indicated a desire to build transitional housing to supplement the day center facility. The City will initiate a zoning code amendment to allow additional related activities to support skills development and basic needs as well as allowing transitional housing (now Program 3.B).

Program 4.4.1C Elderly and Disabled: Support and Marketing of Countywide Programs. The city will continue to support County programs that direct housing assistance to senior and disabled residents. In order to increase outreach the City will engage in a wider variety of outreach efforts (now Program 3.C). Additionally, the City will prioritize pro-housing developments that include units for seniors and disabled residents.

Program 4.4.1D Remove Constraints to Housing Development and Encourage Accessible Housing for Persons with Disabilities. The number of accessible housing units constructed was limited. In order to facilitate the construction of accessible units, the City is working to incorporate an Objective Design Standards program in tandem with a Universal Design amendment to the City’s 294
Appendix A – Housing Needs & Fair Housing Report A-46 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Building Code (now Program 1.L). The city continues to have the lowest fees on the Monterey Peninsula, minimizes public hearing continuance, and implemented a Sustainable Transportation Plan that addresses ADA accessibility within the City.

Program 4.4.1E Identify Methods to Support Homeless Services and Shelters. The City amended the Public Facilities (non-coastal only) Zoning District to allow for a homeless shelter as a permitted use. Since 1989, the City has been a member of a Service Agreement with Community Human Services (CHS). CHS provides mental health, substance abuse and homeless services to Monterey County residents. Additionally, the City donates funds annually to the Salvation Army Day Center. The City includes a line item for donations in the Annual Budget. The City has developed a new set of actions to support extremely low-income households (now Program 3.F).

Program 4.4.1F Ensure the Availability of Appropriate Sites for Emergency Shelters per Senate Bill 2. The City amended the Public Facilities (non-coastal only) Zoning District to allow for a homeless shelter as a permitted use. The existing Salvation Army Day Center includes case workers that among other services including providing rent relief funds and funds for utilities and transportation, also refers clients to their emergency shelter and transitional housing facility in the adjacent City of Seaside. The City will continue to support this facility (now Program 3.D). In the event of an emergency the Day Center has functioned as an emergency shelter during times of urgent need.

Program 4.4.1.G Amend the City’s Zoning Ordinance to Comply with Statutory Requirements for Transitional and Supportive Housing. The City incorporated transitional supportive housing in 2016, which is considered a permitted use for mixed-use and residential zones.

Ordinance 16-05. Program 1.S includes additional actions to comply with current state law.

Program 4.4.1.H Amend the City’s Zoning Ordinance to Comply with Statutory Requirements for Single-Room Occupancy Residences. The City adopted Single-Room Occupancies as a conditional use in 2016.

Program 4.4.1.I Develop a Reasonable Accommodation Process for Persons with Disabilities. The City has a formalized process for accommodation of persons with disabilities per S.18.78.060. In an effort to better reach residents that may not be aware of the process, the City will enhance outreach efforts by and affirmatively marketing to people with disabilities. Program 3.L includes additional actions to comply with current state law.

Program 4.4.1.J Amend the City’s Zoning Ordinance to Accommodate for the City’s Homeless Shelter and Supportive Housing Needs. The City amended the Zoning Ordinance to remove 2-bed limit in the Public Facilities Zoning District, added the definition of supportive housing and enabled the use to be by-right (Ordinance 16-05). 295
Appendix A – Housing Needs & Fair Housing Report A-47 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Program 4.4.1.K Amend the City’s Zoning Ordinance to Increase the City’s Density Bonus/Incentive. The City amended the Zoning Ordinance in 2016 to comply with AB 1866 and AB 2222. Ordinance 16-05. The City will amend the ordinances to reflect current state law (now Program 1.B).

In an effort to affirmatively further fair housing and provide measurable impact for special needs groups during the 6th Cycle Housing Element and beyond, the City of Sand City has committed to using programmatic action as a means to facilitate affordable housing construction, increase housing mobility and choice, and connect the community to much needed housing and social service resources. The policies and programs that fall under Goals H3 and H5 in Chapter 2 of the Housing Element are specifically designed to meet the needs of households that fall into any of the “special needs” categories. Through programmatic actions such as zoning code amendments, community engagement and outreach, fee reductions, downpayment assistance, and other initiatives, the City aims to fill in the gaps that were present after the 5th Cycle Housing Element update, and continuously monitor the effectiveness of 6th Cycle policies and programs through quantified objectives, mid-cycle reviews, and discrete timelines.

The following sections provide a deeper analysis of each of the special needs groups, as relevant to Sand City and the region; in addition to a list of programs that propose to address the needs of individuals and households in the “special needs” categories. For a comprehensive list of all policies and programs, refer to Chapter 2 of the Housing Element.

Extremely Low-Income Households and Poverty Status
Extremely low-income (ELI) households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent of less of the MFI. Extremely low-income households typically face a combination of housing challenges related to income status, family size/type, disability status, access to housing opportunities and other household characteristics. Additionally, ELI households are more likely to experience overcrowding, cost burden, and substandard housing conditions. Extremely low-income households are typically minimum-wage workers, disabled persons, farmworkers, artists, and seniors on fixed incomes.

The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 20 ELI households (14 percent of total households) in Sand City (Table A-13). Of the extremely low-income households in Sand City, 100 percent are renteroccupied households, or 14 percent of all households.

When analyzing cost burden by ELI households, approximately 20 ELI households experience severe cost burden (paying more than 50 percent of median gross income on housing) and 20 experience moderate cost burden (paying more than 30 percent of median gross income on housing). All ELI households experiencing cost burden are renter-occupied households. 296
Appendix A – Housing Needs & Fair Housing Report A-48 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-13 Extremely Low-Income Households, Sand City, 2015-2019 Households Number Percentage of Total
Households
Total occupied units (households) 145 100%
Total Lower-income (0-80% of HAMFI) households 69 48%
Extremely Low-income (0-30% of HAMFI) households 20 14% Extremely Low-income renters 20 14%
Extremely Low-income owners 0 0%
Lower-income households paying more than 50% 28 19%
Extremely Low-income paying more than 50% 20 14%
ELI Renter HH severely cost burdened 20 14%
ELI Owner HH severely cost burdened 0 0%
Lower-income households paying more than 30% 57 39%
Extremely Low-income paying more than 30% 20 14%
ELI Renter HH moderately cost burdened 20 14%
ELI Owner HH moderately cost burdened 0 0%
Lower-income households experiencing 1 of 4 Housing Problems 60 41% ELI Renter HH experiencing 1 of 4 Housing Problems 20 14% ELI Owner HH experiencing 1 of 4 Housing Problems 0 0%
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019.

NOTE: MFI = HUD Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. MFI will not necessary be the same as other calculations of median incomes (such as Census number), due to a series of adjustments that are made.

The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%. ***Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.

Data for overcrowding by income level is not available for Sand City. However, because renteroccupied households exclusively experience overcrowding (12 percent; Figure A-23) in addition to exclusively representing ELI households, it is a likely assumption that ELI households may experience overcrowding.

The projected RHNA for ELI households was based on the assumption that 50 percent of very lowincome households qualify as ELI households. The very low-income housing need is 59 housing units, of which the City estimates 29 housing units will accommodate the ELI housing need.

In 2019, approximately 51 persons were identified as living below the poverty line.12 Figure A-31 illustrates the percent of the population in Sand City living below the poverty line in 2019 by race and ethnicity. Despite being one of the smallest populations in the City, the Other Race or Multiple 12 U.S. Census Bureau ACS 5-Year Estimate 2019, Table S1701 297
Appendix A – Housing Needs & Fair Housing Report A-49 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Races population is estimated to have the highest rate of poverty (67 percent). In contrast, the White population represents 83 percent of the total population and only 15 percent is living below the poverty line. The Hispanic or Latinx population experiences the second highest rate of poverty with 24 percent living below the poverty line.

The Salvation Army operates a Day Center at 800 Scott Street in Sand City which serves the greater Monterey Peninsula region ELI and homeless clients. The center serves 70-100 families per day and all the programs are directed primarily towards families and the goal is to keep families housed. The Center provides showers, laundry, caseworker services, food distribution, a small library, meeting space for service providers, and large indoor space to sit and eat and access services. At least once per month Valley Health Associates visits the center with a mobile truck to offer medical and mental health services. The facility caseworkers work with families and place families in the Salvation Army’s transitional housing facility in nearby Seaside which has 15 units with three staff. The objective at the transitional housing facility is to place families in permanent housing within a twoyear timeframe. Interest has been expressed by the Salvation Army in developing transitional housing units at the Sand City property as well to augment the day center facility services. The 800 Scott St. site is included in the Site Inventory.13
Figure A-31 Percent Living Below the Poverty Line by Race and Ethnicity, Sand City, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Race/Ethnicity represents percentage of the total population. 13 Meeting with Major John Bennett June 27, 2023 and June 16, 2023 letter.

Hispanic or
Latinx
Other Race
or Multiple
Races
(Hispanic
and NonHispanic)
White
(Hispanic
and NonHispanic)
White,
NonHispanic
Asian
alone
Native
Hawaiian
and Other
Pacific
Islander
Black or
African
American
(Hispanic
and NonHispanic)
American
Indian or
Alaska
Native
(Hispanic
and NonHispanic)
Below Poverty Line 23.7% 66.7% 15.2% 15.0% 20.0% 0.0% 0.0% 0.0% Race/Ethnicity* 30% 5% 83% 58% 3% 0% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
298
Appendix A – Housing Needs & Fair Housing Report A-50 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Resources
To address the needs of ELI households, the City will adopt housing programs to facilitate the construction of affordable and supportive housing for extremely low-income households. Programs that will directly impact ELI households include:

Program 3.A: Support the County of Monterey’s Homeless Continuum of Care plan; Program 3.B: Homeless and Extremely Low Income: Continue to support the provision of services at the day center facility and transitional housing.

Program 3.C: Seniors and disabled: Support and marketing of countywide programs; and Program 3.F: Affordable Housing Services for Extremely Low - Income and Other Income - Restricted Residents.

All housing policies and programs can be found in Chapter 2 of the Housing Element.

In the City of Sand City, housing costs and affordability may pose a challenge to residents that are from Extremely Low-Income households. With a median household income of $63,333 (compared to a median household income of $71,015 in Monterey County), ELI residents may find it difficult to achieve homeownership. Additionally, ELI residents normally experience limited accessibility to suitable transportation services to commute from home to work.

In addition to the City's initiatives to foster affordable housing and link ELI and special needs households with the necessary support and resources, the following regional service providers and programs are available to assist ELI households:
 Fair Housing Education;
 Housing Choice Voucher Program;
 211 Monterey/United Way;
 CHISPA Housing;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey); and  MST Rides ADA Paratransit Agency.

Seniors
Seniors are identified as individuals 65 years and older. Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups. 299
Appendix A – Housing Needs & Fair Housing Report A-51 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-32 illustrates the senior population in Sand City, the County, and nearby cities. Compared to the County and nearby cities, Sand City has the lowest senior population (11 percent), approximately 3 percent less than the County. Conversely, the City of Pacific Grove has the highest senior population (27 percent).

Figure A-32 Senior Population by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older.

Figure A-33 illustrates senior housing by tenure in Sand City during 2019. Senior households in Sand City are primarily renters (70 percent). Compared to the County and nearby cities, the majority of senior households own their homes. In the County, 73 percent of senior households own their homes and 27 percent rent.

Figure A-33 Senior Households by Tenure by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older.

10.60%

13.20%

23.20%

11.10%

27.40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Sand City Monterey
County
Del Rey Oaks Seaside Pacific Grove
30%
73%
91%
71% 68%
70%
27%
9%
29% 32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sand City Monterey
County
Del Rey Oaks Seaside Pacific Grove
Owner Renter
300
Appendix A – Housing Needs & Fair Housing Report A-52 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-34 illustrates senior households by their income. The majority of Sand City’s senior households earn a yearly income between $75,000-$99,999 (35 percent). An estimated 25 percent of senior households earn less than the City’s median household income of $63,333.

Figure A-34 Senior Household Income, Sand City, 2019
SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older.

Resources
In Sand City, seniors (age 65+) make up approximately 10 percent of the population. Consequently, the County and local non-profits often offer services tailored for senior residents instead of the City.

Comfort Keepers, situated at 1815-D Contra Costa Street, offers a range of in-home care services for adults and seniors. These services include companion care, personal care, transportation, technological assistance, temporary or respite care, and interactive caregiving. Additionally, the organization offers specialized 24-hour care.

Due to the small size of Sand City, there are no licensed residential care facilities in the City.

However, according to the California Department of Social Services, the neighboring City of Seaside has four licensed care facilities, including the following:
 About Care Assisted Living Center – 1201 La Salle Avenue, Seaside: 15 beds;  Anjellica’s Villa – 555 Francis Avenue, Seaside: 40 beds;  Monterey Bay Guest Home – 1100 Carson Street, Seaside: 22 beds; and  Mescal Housing – 1722 Mescal Street, Seaside: six (6) beds.

The close proximity of Sand City to Seaside facilitates shared resources between the two communities.
301
Appendix A – Housing Needs & Fair Housing Report A-53 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In addition to the local resources listed above, the City has identified the following regional service providers and programs to assist seniors:
 Central Coast Senior Services, Inc.;
 Meals on Wheels of the Monterey Peninsula;
 Seniors Helping Seniors;
 Seaside Recreation Services – Senior Center Programs;  Habitat for Humanity Monterey;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey); and  MST Rides ADA Paratransit Agency.

People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities are not only in need of affordable housing but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers.

Figure A-35 illustrates population by disability status in Sand City, the County, and nearby cities in 2021. In Sand City, 12 percent of the population has some form of disability. This is consistent with Del Rey Oaks, Seaside, and Pacific Grove but a slightly higher percentage compared to the County (9 percent).

Disability
“Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and independent living difficulty.” 302
Appendix A – Housing Needs & Fair Housing Report A-54 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-35 Population by Disability Status by Jurisdiction, 2021 SOURCE: U.S. Census Bureau, 2021
Over the last decade, the population of persons with disabilities has slightly increased in Sand City.

Figure A-36 illustrates trends in persons with disabilities in Sand City between 2012-2021. In 2016, the population of persons with disabilities began to slightly increase from 7 percent in 2015 to 10 percent. By 2018, the City reached its highest percentage of persons with disabilities at 15 percent, but quickly decreased to 12 percent and reached 11 percent by 2021. Overall, between 2012-2021, Sand City’s population of persons with disabilities has increased 2 percent.

Figure A-36 Trends in Persons with Disabilities, Sand City, 2012-2021 SOURCE: U.S. Census Bureau, 2012-2021
88%
91%
87% 88% 88%
12%
9%
13% 12% 12%
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Sand City Monterey
County
Del Rey
Oaks
Seaside Pacific
Grove
With a disability
No disability
91% 91% 92% 93% 90% 90%
85% 88% 88% 89%
9% 9% 8% 7% 10% 10%
15% 12% 12% 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
No disability
Disability
303
Appendix A – Housing Needs & Fair Housing Report A-55 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-14 provides an overview of disability by type and age in Sand City during 2021. Ambulatory difficulty is the most widespread disability in Sand City (31 percent) with the highest concentration in persons 18-64 years of age. Self-care difficulties was the least common disability with no person experiencing this in Sand City.

Table A-14 Disability Status by Age, Sand City, 2021
Disability Type Under 18 18-64 65 and
over
Total
Percent of
Population with
a Disability
Hearing Difficulty 0 11 3 14 29%
Vision Difficulty 0 6 0 6 13%
Cognitive Difficulty 0 10 0 10 21%
Ambulatory Difficulty 0 12 3 15 31%
Self-care Difficulty 0 0 0 0 0%
Independent Living Difficulty 0 2 1 3 6%
Total 0 41 7 48 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2021
NOTE: These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.

State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.

The California Department of Developmental Services provides ZIP code level counts on populations with developmental disabilities based on age and residence type. Due to Sand City sharing a ZIP code with the neighboring City of Seaside, reported figures in Table A-15 and Table A-16 are representative of Sand City and Seaside. Between Sand City and Seaside, it is estimated 171 persons have a developmental disability. Of these, 92 are children (I.e., under the age of 18) and 79 are adults (Table A-15). In both Sand City and Seaside, 12 percent of the population experiences some form of disability.
304
Appendix A – Housing Needs & Fair Housing Report A-56 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-15 Population with Developmental Disabilities by Age, Sand City & Seaside, 2021
Age Group Number
Age Under 18 92
Age 18+ 79
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2021).

The most common living arrangement for individuals with disabilities in Sand City and Seaside is the home of parent/family/guardian followed by independent/supported living arrangements.

Table A-16 Population with Developmental Disabilities by Residence, Sand City & Seaside, 2021
Residence Type Number
Home of Parent/Family/Guardian 154
Foster/Family Home <11
Independent/Supported Living 12
Other <11
Community Care Facility 0
Intermediate Care Facility 0
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2021).

Local Knowledge
Since Sand City lacks licensed group homes or residential care facilities within its limits, there are no concentrations of such facilities in the city. Additionally, there are no senior living communities established within Sand City. However, the neighboring City of Seaside provides both residential care facilities for seniors and senior living communities, which are available to Sand City senior residents. The City did not received any requests for reasonable accommodation during the 5th cycle planning period. To ensure residents are aware of their rights to reasonable accommodation, the City has included Program 3.L, which outlines public outreach actions the City is committed to completing (see Chapter 2).
305
Appendix A – Housing Needs & Fair Housing Report A-57 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Resources
Special housing needs for persons with disabilities fall into two general categories: physical design to address mobility impairments and in-home social, educational, and medical support to address developmental and mental impairments. In Sand City, approximately 12 percent of the population live with a disability. The majority of the residents that have disabilities are between the ages of 18 and 64. Housing and transportation costs may pose a challenge to residents with disabilities.

The California Department of Social Services, Community Care Licensing Division indicates that Sand City currently has no state-licensed residential care facilities. However, the neighboring City of Seaside boasts four state-licensed care facilities: three for the elderly and one for adults. Comfort Keepers is a community-based, non-profit located in Sand City that offers in-home care services for both adults and seniors. A comprehensive list of services offered by Comfort Keepers can be found in the Resources section for Seniors, mentioned earlier.

The San Andreas Regional Center (SARC) is a community-based, private nonprofit organization funded by the State of California. It operates under the mandate of the Lanterman Developmental Disabilities Services Act, commonly known as the Lanterman Act. This legislation outlines the rights and responsibilities of individuals with developmental disabilities in California. SARC is one of 21 regional centers across California and serves individuals and families residing in Monterey, San Benito, Santa Clara, and Santa Cruz Counties. The center conducts diagnosis and eligibility assessments, facilitates planning, and coordinates and monitors services and supports tailored to the needs arising from developmental disabilities. The center has eight facilities in the City of Seaside, which provide a range of services, including habilitation, miscellaneous referrals, physician assistance, group placement, support training for parents, community integration training, supportive living services, and public transit.

In addition to the resources listed above, the City has identified the following regional service providers and programs to assist residents that are living with disabilities:
 Monterey County Aging and Adult Services;
 Paradigm Adult Services;
 Special Kids Connect;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey); and  MST Rides ADA Paratransit Agency.

Large Households
Large households are defined as households of five or more individuals. Large households often have different housing needs than smaller households. Household income and local housing markets can greatly impact a household’s ability to afford adequately sized housing. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in 306
Appendix A – Housing Needs & Fair Housing Report A-58 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 overcrowded conditions. Similarly, large households may experience overpayment as a result of a high housing market and limited availability.

Figure A-37 illustrates 2019 households by size and tenure in Sand City. Sand City has eight (8) large households, of which 100 percent are renter households. Renter households makeup the majority of all households by approximately 85 percent. This combined with a cost burden rate of 63 percent for renter households (Figure A-28), suggests it is likely that large households in Sand City may experience overcrowding and/or overpayment.

Figure A-37 Households by Size and Tenure, Sand City, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Resources
In Sand City, there are approximately eight (8) large households, all of which are renters. Housing costs may pose a challenge to large households, as they are more likely to rent as opposed to purchasing a home, and experience higher cost-burden and overcrowding. Furthermore, finding suitable transportation may be a challenge as well.

Generally, large households in Sand City can benefit from general programs and services for lower and moderate-income households, including the Housing Authority of the County of Monterey Housing Choice Voucher program, and various community and social services provided by nonprofit organizations in the region. Program 3.O has been included in this Housing Element to encourage the development of family friends affordable housing units (see Chapter 2).

The City also has the ability to leverage city-owned sites to incentivize the development of larger, family friendly units that accommodate a minimum of three bedrooms per unit. The City will work with non-profit affordable housing developers to encourage housing development that meets the needs of large households.
11%
40%
5%
14%
0%
89%
60%
95%
86%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 Person
Household
2 Person
Household
3 Person
Household
4 Person
Household
5 Or More
Person
Household
Owner Occupied Renter Occupied
307
Appendix A – Housing Needs & Fair Housing Report A-59 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In addition to the City’s efforts to enable the development of family friendly residential units, the following regional service providers and programs are available in Monterey County to assist large households:
 Housing Choice Voucher Program;
 Fair Housing Education;
 Monterey County Down-payment Assistance Program;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey);  Monterey Dial-A-Ride Program; and
 Ridesharing services.

Single-Parent Households
Households headed by one person are often at greater risk of housing insecurity, particularly femaleheaded family households, who may be supporting children or a family with only one income.

In Sand City, there are a total of 16 single-parent households. Of which, female-headed family households make up 25 percent (four households) and male-headed households makeup 75 percent (12 households) (Figure A-38). Compared to the County and nearby cities, Sand City has significantly less female-headed family households than male-headed family households.

Figure A-38 Single-Parent Households by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019

67.3%

25.0%

60.8% 61.7%

75.7%

32.7%

75.0%

39.2% 38.3%

24.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monterey
County
Sand City Del Rey Oaks Seaside Pacific Grove
Female-Headed Family Households Male-headed Family Households 308
Appendix A – Housing Needs & Fair Housing Report A-60 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Over the last decade, both female-headed and male-headed family households have increased in Sand City. Figure A-39 illustrates trends in single-parent households in Sand City between 2010- 2019.14 During this period, female-headed households climbed from 2 percent in 2010 to its highest at 14.3 percent in 2013. By 2015, the trend began to steadily fall reaching 2 percent by 2018, before slightly increasing to 2.7 in 2019.

Between 2010-2019, male-headed family households experienced fluctuations in population size similar to female-headed family households, but on a lower scale. Female-headed family households remained greater than male-headed family households from 2011-2017. Male-headed family households have greatly exceeded the percentage of female-headed family households since 2018.The small household size and increase in male-headed households could be associated with the trend towards farmworker families remaining in Southern California while male workers migrate to Monterey County for the approximate nine-month harvest season15.

Figure A-39 Trends in Single-Parent Households, Sand City, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging. In 2019, there were two female-headed households with children that fell in the Below Poverty Level category compared to zero maleheaded households with children that fell in the Below Poverty Level category in Sand City. 14 The data reports female- and male-headed family household as a percentage of total households in Sand City. 15 AMBAG Director’s Forum August 28, 2023 - 2026 Regional Growth Forecast

2.0%

6.3%

11.2%

14.3%

13.0% 13.4%

10.7%

6.5%

2.0%

2.7%

4.1%

0.0%

3.2%

2.4% 2.6% 2.8%

2.1%

3.9%

6.8%

8.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Female-Headed Family Households
Male-headed Family Households
309
Appendix A – Housing Needs & Fair Housing Report A-61 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Resources
Limited household income constrains the ability of single-parent households to afford adequate housing, childcare, health care, and other necessities. In Sand City, there are approximately 16 singleparent households, but due to resource constraints, the City doesn't offer childcare services. This is not atypical given that Sand City does not have school facilities within city limits. Instead, local youth attend schools in the Monterey Peninsula Unified School District, including those in Seaside.

School districts often offer after-school programs and collaborate with non-profit organizations to provide affordable childcare options, supporting low-income and single-parent families.

The neighboring City of Seaside provides a range of programs tailored for children and families.

These include Tiny Tot University Preschool Programs, K-5th Grade Programs/Camps, Teen Programs, Sports Programs, and seasonal camps. As mentioned earlier, the close proximity of Sand City to Seaside enables the sharing of resources.

Single-parent households in Sand City can also benefit from general programs and services for lower and moderate-income households, including the Housing Authority of the County of Monterey Housing Choice Voucher program, and various community and social services provided by nonprofit organizations in the region. The following regional service providers and programs are available to assist single-parent households:
 Housing Choice Voucher Program;
 Fair Housing Education;
 Monterey County Down-payment Assistance Program;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey); and  Ridesharing services.

Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern.

The U.S. Department of Agriculture, National Agricultural Statistics provides data on hired farm labor in the U.S. at the State and County level only. In Monterey County, the number of permanent farm workers has decreased since 2002, totaling 14,806 in 2017. Similarly, the number of seasonal farm workers has also decreased, totaling 12,123 in 2017. Figure A-40 shows hired farm labor in Monterey County between 2002-2017.
310
Appendix A – Housing Needs & Fair Housing Report A-62 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-40 Hired Farm Labor, Monterey County, 2002-2017 SOURCE: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor.

NOTES: Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors). Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm.

Agriculture consisting of crop farming and livestock grazing is the largest industry in Monterey County and contributes a significant amount of money to the County’s economy. Out of approximately 1.3 million acres of County land dedicated to agriculture, most of this area (approximately 80 percent) is used for grazing. The most productive and lucrative farmlands in the County are located in the North County, Greater Salinas, and Central Salinas Valley Planning Areas.

According to the 2021 American Census Survey (ACS) data, 4.3-percent of individuals residing in Sand City households reported that they were employed in the Agriculture, Forestry, or Fishing and Hunting industry.16 There are no agricultural lands or agriculturally zoned properties within the City limits. There are no farm labor housing developments in the City nor are there projects assisted with Rural Housing Administration financing; however, the City shares the responsibility for farmworker housing as farmworkers may work within 75 miles of agricultural land uses (including dairy, vineyards, and produce) and the City is within 75 miles of these uses. While HCD has no established metrics, the United States Department of Agriculture, (USDA) considers farmworkers that work at a specific location within 75 miles of their home to be “settled” and thus permanent members of their home community.
16 Sand City 2021 ACS data; Source: City of Sand City, California - Census Bureau Profile 17,538
13,564
12,306
13,875
16,159 16,713
14,806
12,123
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Permanent Seasonal
Farm Workers
2002 2007 2012 2017
311
Appendix A – Housing Needs & Fair Housing Report A-63 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The California Institute for Rural Studies released a Farmworker Housing Study and Action Plan for Salinas Valley and Pajaro Valley in April 2018. Key findings of the Study included:
 A survey of 420 farmworkers in the labor shed as well as interviews with employers and other stakeholders was conducted to gather primary data. Among the farmworkers surveyed, men and women were relatively evenly distributed across age groups with 75 percent of the interviewees married. The clear majority of the immigrant farmworker interviewees had very few years of schooling. They were 92 percent immigrants (not born in the U.S.). About one fifth were followthe-crop migrants (FTC) who had traveled outside the two-County (Monterey and Santa Cruz counties) area for agricultural employment;
 Most households of farmworkers interviewed included non-family members who were for the most part other farmworkers. There are consistently stunningly high rates of residences that are above the severely crowded condition of 2.0 people per room. This is true of almost all the subgroups of the population. Often more than 5 people per bathroom;  About 40 percent of respondents live in houses, 30 percent in apartments. Another 19 percent live in rented rooms without kitchens – either in houses or apartments. Another 12 percent live in “other” types of dwellings. Eighty-nine percent of farmworkers were renters and 11 percent owners. Of those who reported as owners, a quarter owns mobile homes; and  Other characteristics of those interviewed included:
• Most have only completed primary school.
• Wages ranged from a median of $12.79 per hour, mean of $13.64, with median annual income of $25,000.
• The majority do not work all year in agriculture – 7.5 months is the median. • 44 percent of migrants work all year, 20 percent of non-migrants work year-round. • Average age at arrival is about 20.
• Median number of years in the US is 15 years.
• Median age was 37.
• Median number of years with current employer is 4 years; a quarter worked for their employer for 8 years or more.
• Two-thirds are from four states in Mexico:
 Oaxaca 21 percent
 Michoacan 19 percent
 Jalisco 14 percent
 Guanajuato 10 percent
312
Appendix A – Housing Needs & Fair Housing Report A-64 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 • 13 percent self-identified as indigenous Mixtec, Triqui, Zapotec. • They work in a range of crops throughout the region.
 46 percent participate in harvest
 16 percent are packers
 38 percent participate in all other farm-related tasks such as:
 Weeding
 Irrigating
 Thinning
 Pruning
 Loading
 Driving
 Operating machines
The farmworker housing demand model developed as part of the study calculates the total housing units needed of all types, based on target People Per Dwelling (PPD), and total permanent affordable farmworker housing based on the current rate that farmworkers access subsidized housing.

Key findings of the demand model were:
 An additional 33,159 units of farmworker housing are needed to alleviate critical overcrowding in farmworker households that are occupied at 7.00 PPD to the average PPD of 3.23 in Monterey County and the average PPD 2.60 in Santa Cruz County;  A total of 4,393 units of permanent affordable farmworker housing are needed to maintain the present “access rate” of 7.6 percent of farmworkers to subsidized housing; and  The data from this study indicate an overwhelming need for affordable permanent year-round family housing.

Resources
The housing needs of farmworkers are addressed under Sand City’s overall programs for affordability, consistent with the California Institute for Rural Studies 2018 report. Although the City does not have agricultural uses, and therefore, no housing designated specifically for farmworkers —the City supports the County of Monterey’s efforts to educate the public on resources that are available for agricultural workers. The City has included Program 3.J to identify and publicize resources that are available throughout the region for agricultural employees, and amend the zoning code to add a definition for “employee housing,” including agricultural employees.
313
Appendix A – Housing Needs & Fair Housing Report A-65 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The County, in compliance with State legislation and the Employee Housing Act, acknowledges the division of available farmland for the creation of farmworker or employee/family housing17. In compliance with State requirements, the City of Sand City has included Program 1.S to amend the Municipal Code’s to include a definition for employee housing, and the zone in which employee housing would be allowed (see Chapter 2). Program 3.F has been added to address the needs of farmworkers and other special needs groups (see Chapter 2).

In addition to the City’s efforts to enable the development of employee housing, including housing farmworkers, the following regional service providers and programs are available to assist farmworker households with the greater Monterey County region:
 Spanish Farmworkers Resource Line;
 The Center for Community Advocacy;
 Farm and Food Worker Relief Program;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey);  MST Rides ADA Paratransit Agency; and
 Rideshare services.

Persons Experiencing Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances.

According to the 2022 Monterey Homeless Count and Survey Comprehensive Report, Sand City has seen a decrease in homeless persons since 2017 (31 persons), totaling three persons in 2022 (Table A-17). Similarly, the Monterey Bay Area overall has seen a decrease in homeless populations with the exception of Seaside.
17 https://www.co.monterey.ca.us/home/showpublisheddocument/45812/636389938528430000 314
Appendix A – Housing Needs & Fair Housing Report A-66 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-17 Homeless Population by Jurisdiction, 2017-2022 Jurisdiction
Unsheltered Sheltered Total 2019-2022 %
Change 2017 2019 2022 2017 2019 2022 2017 2019 2022
Monterey County 1,692 1,492 1,089 724 560 652 2,416 2,052 1,741 -15% Sand City 31 8 3 0 0 0 31 8 3 *
Del Rey Oaks 111 0 2 0 0 0 111 0 2 *
Seaside 40 126 90 58 56 62 98 182 152 -16%
Pacific Grove 35 14 29 0 0 0 35 14 29 *
Total 1,909 1,640 1,213 785 616 714 2,691 2,256 1,927 -28% SOURCE: 2022 Monterey Homeless Count and Survey Comprehensive Report NOTE: % change was not calculated when jurisdiction was below 25 individuals.

Table A-18, shows household type and shelter status in Monterey County in 2019. In Monterey County, the most common type of household experiencing homelessness are those without children in their care. Among households experiencing homelessness that do not have children, 83 percent are unsheltered. Similarly, the majority of homeless households with children are unsheltered (45 percent).

Table A-18 Homelessness by Household Type and Shelter Status, Monterey County, 2019
Type of Shelter
People in
Households
Composed Solely
of Children
Under 18
People in
Households with
Adults and Children
People in
Households without
Children Under 18 Total
Count Percent Count Percent Count Percent
Sheltered –
Emergency Shelter
0 0% 146 22% 218 11% 364
Sheltered –
Transitional
Housing
0 0%
218 33% 124 6% 342
Unsheltered 10 100% 303 45% 1,685 83% 2,340
Total 10 100% 667 100% 2,027 100% 2,704
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019).

For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-01.

NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January.
315
Appendix A – Housing Needs & Fair Housing Report A-67 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 As mentioned earlier, the Salvation Army operates a Day Center facility at 800 Scott Street in Sand City which serves regional and local ELI and homeless clients. The Center provides showers, laundry, caseworker services, food distribution and a small library and large indoor space to sit and eat and access services. Program 3.B provides for ongoing support for the facility. Additionally, the City entered a joint powers agreement with the Community Human Services Project, to assist in providing mental health, substance abuse and homeless services.

Local Knowledge
According to local knowledge, Sand City does not have a significant homeless population, and there is no specific area where homeless individuals congregate in the city. If a situation were to arise leading to an increase in homelessness, Sand City is well-served by public transportation, providing access for individuals to seek necessary services.

At the local level, Sand City does not offer extensive resources for homeless individuals due to limited resources and staffing constraints. Nonetheless, The Salvation Army Day Center in Sand City does provide assistance to homeless and low-income individuals. Additional regional service organizations and programs are listed below in the Resources section.

Resources
Housing and transportation costs can be barriers to residents that are experiencing homelessness.

Those experiencing homelessness often need wrap-around support, access to community services, and State/Federal assistance to end the cycle of homelessness. Many individuals thar are homeless may experience difficulties with finding emergency shelter, having access to food and job-training resources. Lack of adequate transportation to commute to job interviews and appointments with social service providers may also be an obstacle to individuals experiencing homelessness.

Generally, three types of facilities provide shelter for homeless individuals and families, including emergency shelters, transitional housing, and permanent supportive housing. In Sand City, none of these types of facilities are available due to the small nature of the City and limited available resources. However, the City of Seaside offers both emergency shelter and transitional housing options. The following includes day and resource centers, emergency shelters, transitional housing, and health and wellness services provided in Sand City and neighboring Seaside.  The Salvation Army – Day Center – 800 Scott Street, Sand City. Provides many services to extremely low income and homeless individuals including case managers, public benefits, food distribution, laundry and shower facilities.
 Monterey Peninsula Unified School District Family Resource Center – Emergency Shelter – 1295 La Salle Avenue, Seaside. Provides support for homeless children and families within the Monterey Peninsula Unified School District, including clothing, school supplies, and referral to other community resources to remove barriers to education. 316
Appendix A – Housing Needs & Fair Housing Report A-68 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Community Homeless Solutions Central Coast Respite Center – Emergency Shelter – 780 Hamilton Avenue, Seaside. Provides a six-bed shelter for homeless adults in need of respite care following stays in three participating hospitals. Access to meals, case management, and supportive services designed to help participants transition to permanent housing. By hospital referral only. The program also maintains a bridge housing program for guests coming out of respite care while lining up permanent housing options.  Community Human Services Casa de Noche Buena – Emergency Shelter – 1292 Olympia Avenue, Seaside. A 28-35 bed year-round shelter. Capacity depends on the number of children in families. Provides case management, housing navigation, meals, laundry facilities, mail service, social recreation activities, and linkages to income, education, and employment.  Safe Parking Program – Emergency Shelter – An overnight safe parking program for people living in their legally registered vehicles. The program opens at 7:00pm nightly and closes each morning at 7:00am.
 The Salvation Army Casa de Las Palmas – Transitional Housing. Family transitional housing provides residential care for up to 24 months. Capacity for nine (9) units and 36 beds.  The Salvation Army Frederiksen House – Transitional Housing. Family transitional housing provides residential care for up to 90-days. Provides case management, information, and referral services.
 Sun Street Centers Outpatient Counseling – Health and Wellness – 1201 Echo Avenue, Seaside. Provides counseling services for men, women, and teens. Group and individual sessions are provided for people struggling with alcohol or drug abuse. Bi-lingual services are available. Counseling for couples and families is also available.

In addition to the resources listed above, the following regional service providers and programs are available to assist residents experiencing homelessness:
 Community Human Services;
 Habitat for Humanity Monterey;
 Peacock Acres;
 Interfaith Outreach of Monterey;
 Monterey-Salinas Transit;
 Independent Transportation Network of Monterey (ITN Monterey);  MST Rides ADA Paratransit Agency; and
 Rideshare Services.
317
Appendix A – Housing Needs & Fair Housing Report A-69 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 A.5 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, transportation, and environment. The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of opportunity maps that help to identify areas of the community with good or poor access to opportunity for residents.

These maps were developed to align funding allocations with the goal of improving outcomes for low-income residents—particularly children.

Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ neighborhoods. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions).” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 34.

The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access to opportunity in quality education, employment, transportation, and environment. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.

Disparities in Access to Opportunity
As can be seen in Figure A-41, Sand City is a moderate resource area. Neighboring areas such as Seaside also shows concentrations of moderate resources, whereas areas to the southwest are majority high and highest resource areas. It is important to recall that Sand City households are majority renter-occupied (83 percent) of which 54 percent are lower-income earners. This in tandem with moderate access to resources may indicate a lack of investment in economic and educational opportunities.
318
Appendix A – Housing Needs & Fair Housing Report A-70 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-41 TCAC Opportunity Composite Score, Sand City, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Economic Outcomes
Housing opportunities are directly related to economic outcomes. Access to high-quality employment close to desired and affordable housing results in more housing opportunities and shorter commute times. The analysis for economic opportunities uses TCAC economic indicators, employment participation data from the ACS, and the HUD Jobs Proximity Index. TCAC economic opportunities are measured by census tract and consider poverty (the percent of the population with an income above 200 percent of the federal poverty line), adult education (the percent of adults with a bachelor’s degree or above), employment (the percent of adults between age 20 to 64 who are employed in the civilian labor force or armed forces), job proximity (the number of jobs filled with less than a bachelor’s degree that fall within a determined radius), and median home values (the value of owner-occupied units). A higher economic index score reflects more positive economic outcomes. The HUD Jobs Proximity Index measures the accessibility to job opportunities at the census block group level.

319
Appendix A – Housing Needs & Fair Housing Report A-71 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Regional Trends
Figure A-42 shows a variety of economic outcomes across Monterey County. Areas with more positive economic outcome scores were identified in the northern, western, and central northern portions of the county near Carmel-by-the-Sea, Pacific Grove, Monterey, and western area of Marina. Conversely, the cities of Salinas, Gonzales, and Soledad had large concentrations of census tracts reflecting less positive economic outcomes. According to 2016-2020 ACS estimates, Monterey County had a labor force participation rate of 61 percent of persons 16 years and over, which is approximately 4 percent lower than the county’s 2010 labor force participation rate. Estimates show that the mean earning in Monterey County in 2020 was $97,156.

Figure A-42 TCAC Opportunity Areas – Economic Domain, Monterey County SOURCE: HCD AFFH Data Viewer, 2022

320
Appendix A – Housing Needs & Fair Housing Report A-72 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Local Trends
According to TCAC estimates shown in Figure A-43, there is no geographical variation in economic opportunity throughout the city. As shown in Figure A-43, Sand City has a low economic opportunity score of 0.19. This reflects a low level of opportunity for economic advancement for residents in Sand City, which in part is likely due to the historical jobs-workers imbalance (Figure A-11).

HUD’s Job Proximity Index utilized Longitudinal Employer-Household Dynamic estimates to examine the distance from a given neighborhood to all job locations within the Salinas-Monterey Area and measures the accessibility to job opportunities at the census block group level. Because the size of employment centers and the supply of labor differ across the region, the distance from any single job location is positively weighted by the size of employment (job opportunities) at that location and inversely weighted by the labor supply (competition) to that location.18 The higher the index value, the better the access to employment opportunities for residents in a neighborhood.

According to the Jobs Proximity Index, access to employment opportunities does not differ across Sand City. All neighborhoods within Sand City have a job proximity index of 52.

As previously discussed, Sand City historically served as an industrial and manufacturing hub.

However, over the past three decades, the city has been shifting towards a mix of commercial and residential uses. This transition is evident in the jobs-to-workers imbalance, with Sand City having more jobs than resident workers, particularly in low to moderate-wage sectors.

The city is actively pursuing the expansion of its residential landscape to address this imbalance, aiming for a more harmonious environment. Despite these efforts, the dominant industry in Sand City is arts, entertainment, recreation, accommodation, and food services. The city is home to major retail outlets like Costco, Marshalls, and Target. Consequently, economic opportunities are somewhat limited, presenting challenges for diversifying the local economy. 18 6HUD. AFFH-T Data Documentation Data Version AFFHT0006 (2020). 321
Appendix A – Housing Needs & Fair Housing Report A-73 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-43 TCAC Opportunity Economic Score, Sand City, 2023 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Educational Outcomes
Educational attainment is directly linked to housing opportunities. TCAC education domain scores measure educational outcomes using math and reading proficiency (the percentage of 4th graders who met or exceed math proficiency standards), high school graduation rates (the percentage of high school cohorts that graduate on time) and student poverty indicators (the percent of students not receiving free or reduced-priced lunch). The TCAC education domain scores are derived from 2018- 2019 Department of Education data. This analysis incorporates demographic and socioeconomic measures to spatially evaluate access to educational opportunities at the census tract level.

Sand City City CouncilJune 4, 2024

Sand City City Council
June 4, 2024