Seaside City Council
June 18, 2026

A G E N D A

CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/SUCCESSOR 440 HARCOURT AVE (COUNCIL CHAMBER) AGENCY TO THE Thursday, June 18, 2026
REDEVELOPMENT AGENCY 5:00 PM
Virtual Participation Guide: https://www.ci.seaside.ca.us/129/City-Council-Committee-Agendas https://www.youtube.com/c/CityofSeasideCalifornia | https://ci-seaside-ca-us.zoom.us/j/81936832059 | WEBINAR ID: 819 3683 2059 | (669) 900-9128

1. CALL TO ORDER

2. ROLL CALL – ESTABLISHMENT OF QUORUM
Ian N. Oglesby
David R. Pacheco
Alexis Garcia-Arrazola
Rita Burks
Alex Miller
Mayor/Chair
Mayor Pro Tem/Vice Chair
Council/Agency Member
Council/Agency Member
Council/Agency Member
Remote Participation Location for
Council/Agency Member Burks:
500 Hotel Circle N.

San Diego, CA

3. INVOCATION AND PLEDGE OF ALLEGIANCE

4. REVIEW OF AGENDA
If there are any items that arose after the 72-hour posting deadline, this is the point in the meeting where a vote may be taken to add the item to the agenda. (A 2/3- majority vote is required).

5. PUBLIC COMMENT
Members of the public wishing to address the City Council on matters within the jurisdiction of the City of Seaside, but not on this agenda, may do so during the Public Comment period for up to three (3) minutes. Public Comments for "Presentations" on this agenda are also taken at this time; comments on specific agenda items are heard under that item. For the public record, please state your name.

6. PUBLIC AGENCY COMMUNICATIONS
This is a time specifically set aside for representatives of public agencies to make brief comments of general interest to the City Council and the community.

A. SEASIDE CITY NEWS BROADCAST AND COMMENTS FROM THE CITY

MANAGER

7. CONSENT AGENDA
Packet Page 1
City Council REGULAR Meeting June 18, 2026 5:00 PM Agenda Page 2 A. APPROVE MINUTES FROM MAY 7, 2026, REGULAR MEETING, AND MAY 26 AND MAY 27, 2026, SPECIAL MEETINGS
RECOMMENDATION: Approve minutes as presented in the agenda packet.

B. APPROVE AND FILE CITY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of May 02, 2026 through May 15, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period of May 14, 2026. Total Accounts Payable and Payroll for the above referenced period is $2,126,719.41.

C. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of May 02, 2026 through May 15, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period May 14, 2026. Total Accounts Payable and Payroll for the above referenced period is $580.07.

D. ADOPT A RESOLUTION AUTHORIZING SUBMISSION OR PARTICIPATION IN A FISCAL YEAR 2025 FEDERAL EMERGENCY MANAGEMENT AGENCY

ASSISTANCE TO FIREFIGHTERS GRANT REGIONAL APPLICATION FOR

SELF-CONTAINED BREATHING APPARATUS
RECOMMENDATION: Approve submittal or participation in a FY 2025 FEMA Assistance to Firefighters Grant Regional application for self-contained breathing apparatus.

E. ADOPT A RESOLUTION APPROVING A POLICY ADDRESSING

DISRUPTION OF TELEPHONIC OR INTERNET SERVICE DURING PUBLIC

MEETINGS
RECOMMENDATION: Adopt a Resolution approving the City of Seaside Technology Disruption Policy for public meetings pursuant to Senate Bill 707 and Government Code Section 54953.4.

F. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

A FIRST AMENDMENT TO THE COMMUNICATION SITE LEASE

AGREEMENT WITH T-MOBILE WEST, LLC FOR EXISTING

TELECOMMUNICATIONS FACILITIES ON CITY-OWNED PROPERTY
LOCATED AT 1444 SKYVIEW DRIVE
RECOMMENDATION: Authorize the City Manager to execute the First Amendment to the Communication Site Lease Agreement with T-Mobile West LLC.

8. PUBLIC HEARING
Packet Page 2
City Council REGULAR Meeting June 18, 2026 5:00 PM Agenda Page 3 A. AN ORDINANCE TO AMEND SECTION 17.52.230 OF THE SEASIDE

MUNICIPAL CODE TO CREATE CONSISTENCY BETWEEN THE MUNICIPAL

CODE AND CALIFORNIA LAW REGARDING ACCESSORY DWELLING
UNITS AND JUNIOR ACCESSORY DWELLING UNITS. THIS ACTION IS

NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 21080.17 OF THE PUBLIC RESOURCES

CODE (SECOND READING - ROLL CALL VOTE)
RECOMMENDATION: Conduct second reading, open public hearing and adopt the ordinance.

B. AN ORDINANCE TO AMEND CHAPTER 9.12 OF THE SEASIDE MUNICIPAL

CODE TO CLARIFY NOISE ORDINANCE APPLICABILITY TO PERMITTED USES. THIS ACTION IS NOT SUBJECT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION
15061(B)(3) OF THE CEQA GUIDELINES (SECOND READING - ROLL CALL VOTE)
RECOMMENDATION: Conduct second reading, open public hearing and adopt the ordinance.

C. PUBLIC HEARING TO RECEIVE THE ANNUAL AB 2561 REPORT ON

CURRENT JOB VACANCIES, RECRUITMENT, AND RETENTION EFFORTS RECOMMENDATION: Hold a public hearing, receive the annual report on the status of job vacancies, recruitment, and retention efforts pursuant to Government Code Section 3502.3, and accept and file the report.

9. BUSINESS ITEMS
A. APPROVE THE SEASIDE STARS AD-HOC COMMITTEE

RECOMMENDATIONS FOR FOUR RECIPIENTS AND, AUTHORIZE THE

CITY MANAGER TO EXECUTE ASSOCIATED CONTRACTS WITH FMG

CUSTOM CONCRETE
RECOMMENDATION: Review and approve the Seaside Stars Ad-Hoc Committee recommendations for the 2026 recipients of the stars, and staff recommendations for installation, and authorize the City Manager to execute the contracts with FMG Custom Concrete.

B. CONSIDER APPROVAL OF NEIGHBORHOOD IMPROVEMENT

COMMISSION RECOMMENDATIONS AND CITY COUNCIL ALLOCATIONS

FOR TRANSIENT OCCUPANCY TAX-FUNDED NEIGHBORHOOD

IMPROVEMENT PROJECTS
Packet Page 3
City Council REGULAR Meeting June 18, 2026 5:00 PM Agenda Page 4 RECOMMENDATION: Approve or modify the Neighborhood Improvement Commission’s recommended FY 2026-2027 project list; select projects for the City Council’s allocation; and direct staff to proceed with implementation.

C. ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS,
AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO.

FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A

REIMBURSEMENT AGREEMENT WITH THE SEASIDE COUNTY

SANITATION DISTRICT FOR BROADWAY SEWER UPGRADES,

APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 RECOMMENDATION: Approve Project Plans and Specifications, award a construction agreement, approve a reimbursement agreement, and construction related consultant agreements.

D. ADOPT A RESOLUTION AUTHORIZING FISCAL YEAR 2026-2027 STREET REPAIR PROJECT LIST TO BE FUNDED IN PART WITH SB1: THE ROAD MAINTENANCE REPAIR AND ACCOUNTABILITY ACT OF 2017 FUNDS,

AND AUTHORIZING SUBMISSION TO THE CALIFORNIA

TRANSPORTATION COMMISSION
RECOMMENDATION: Authorize staff to submit a SB 1 Project List.

E. ADOPT A RESOLUTION APPROVING THE FISCAL YEAR 2026-2027

OPERATING BUDGET AND RELATED DOCUMENTS, INCLUDING THE

INVESTMENT POLICY, CAPITAL IMPROVEMENT PROGRAM, FEE

SCHEDULE, POSITION CONTROL LIST, SALARY SCHEDULE, STRATEGIC

PLAN, AND RESERVE AMOUNTS
RECOMMENDATION: Approve the Fiscal Year 2026-2027 Operating Budget, Investment Policy, Capital Improvement Program, Fee Schedule, Position Control List, Salary Schedule, Strategic Plan, and reserve amounts; and provide direction to staff regarding any final changes to be incorporated as part of implementation.

10. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
B. FOLLOW UP ON PREVIOUS REQUESTS

11. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR

COMMENTS AND REPORTS ON COMMITTEE ASSIGNMENTS
Packet Page 4
City Council REGULAR Meeting June 18, 2026 5:00 PM Agenda Page 5 This is a time specifically set aside for members of the City Council, the City Manager and City Attorney to make brief comments of general interest to the community and report on committee assignments.

12. CLOSED SESSION
Pursuant to Government Code Section 54956 et seq., the City Council and Successor Agency to Redevelopment Agency may adjourn to a Closed Session to consider specific matters dealing with litigation, certain personnel matters, property negotiations or to confer with the City Attorney. Public comments on these items are taken after being read by the City Attorney. For the public record, please state your name.

A. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54957.6
Agency Negotiators: Greg McDanel, City Manager; Samantha Sahkrani, Human Resources Director/Risk Manager
Employee Organizations: Seaside Police Officers' Association, Seaside Firefighters' Association, Seaside Public Safety Managers' Association, Seaside City Employees Association, Seaside Managers Employee Association, Non-Represented NonExempt Confidential Employees, Non-Represented Exempt Confidential Employees, Executive Employees, Unclassified Exempt Employees, and Unclassified NonExempt Employees B. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (D)(2)
Two potential matters

13. ADJOURNMENT
Next Regularly Scheduled Meeting:

July 2, 2026
5:00 p.m.

The City of Seaside is committed to providing accessible facilities and accommodating people with disabilities in all of its services programs and activities. If special considerations are needed by any person to fully participate in this meeting, contact the City Clerk at 899-6707 no fewer than two business days prior to the meeting to allow reasonable arrangements. Agendas are posted at:
http://www.ci.seaside.ca.us/129/City-Council-Committee-Agendas Agenda-related writings or documents provided during public meetings are available for public inspection during the meeting or from the office of the City Clerk. This agenda is posted in compliance with California Governor Newsom's Executive Orders N-29-20 and N-33-20.

Packet Page 5

DRAFT MINUTES

CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/ SUCCESSOR 440 HARCOURT AVE
AGENCY TO THE Thursday, May 7, 2026
REDEVELOPMENT AGENCY 5:00 PM

1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:00 p.m.

2. ROLL CALL – ESTABLISHMENT OF QUORUM
PRESENT: Garcia-Arrazola, Miller, Oglesby, Pacheco
ABSENT: Burks

3. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation was led by Pastor Ronald Britt (Greater Victory Temple COGIC). The pledge was led by Council/Agency Member Miller.

4. REVIEW OF AGENDA
No changes.

5. PUBLIC COMMENT
Pastor Ronald Britt, no name, Catherine Crockett, Lynda Cunningham, Carol Chobajan, Thomas Berrera

6. PUBLIC AGENCY COMMUNICATIONS
A. SEASIDE CITY NEWS BROADCAST AND COMMENTS FROM THE CITY

MANAGER
The following announcements were made:
• The Seaside Farmers Market has new summer hours. Starting May 7, stop by Laguna Grande Park from 4 to 8 p.m. to enjoy fresh produce, local food vendors, and music on the lawn. CalFresh and EBT shoppers can receive up to $30 in free fruits and vegetables when they spend $30 at the market. • Get outside with FOSPA and give back to your community. Join park cleanups on May 9 at Capra and Martin Parks, and May 16 at Farallones and Highland Otis Parks. Together, we keep Seaside clean, green, and thriving.

Packet Page 6
Thursday, May 7, 2026 City Council REGULAR Meeting Page 2 • It’s time to celebrate Mom—Seaside style. Join the Older Adults Program for a Mother’s Day Brunch on Saturday, May 9 at the Oldemeyer Center. Doors open at 10:30 a.m., program at 11, and lunch served at 12 noon. Mothers and grandmothers enjoy free admission and lunch, and guests can join for just $4 at the door. Good food, great company, and a beautiful way to say “thank you.” • The future of housing in Seaside is taking shape. Greater Victory Temple Church of God in Christ, the Seaside City Council, and KB-Bakewell Seaside Venture II invite the community to the groundbreaking of the GVT Apartments Complex. The ceremony will be held Saturday, May 16 at 10 a.m. at the Greater Victory Temple parking lot, 1620 Broadway Avenue. The project will deliver 21 very-low-income housing units as part of the Campus Town and Pacific Landing at Seaside development. To attend, send email to [email protected]. • Small business owners are invited to a Business Tax Strategies workshop on Monday, May 18, 2026, from 12:00 to 1:00 p.m. The workshop will be held in person and online, with the in-person session at the Monterey Peninsula Chamber of Commerce, located at 353 Camino El Estero in Monterey. Presenter Tania Santos, an SBDC Business Advisor, will share tax and accounting strategies for local businesses. To register, visit tinyurl.com/yf2fptd2. • Healthy pets, strong community—Seaside, this one’s for you. A low-cost mobile spay and neuter clinic will be available for Seaside residents on Tuesday, May 26 at 1271 Canyon Del Rey Boulevard, near Chili’s. Services are $25 and include pain medication, E-collars for dogs, and free rabies and booster vaccines. Spots are limited and appointments are required—call or text 925-967-1001 to schedule. • Seaside, it’s time to move, connect, and feel your best! The City of Seaside invites older adults to celebrate National Older Adult Health and Fitness Day on Wednesday, May 27, from 9 a.m. to 3:30 p.m.
• Join us at the Oldemeyer Center and Pattullo Swim Center for a full day of wellness—featuring a resource fair, aquatics, tai chi, stretching, line dancing, and pickleball. This event is free and open to older adults. For more information, call 899-6803.
• A new fitness experience is heating up in Seaside. HOTWORX Seaside invites the community to its grand opening on Friday, May 29, from 2 to 7 p.m. at 1105 Broadway Avenue, Suite 101. Enjoy food, local vendors, giveaways, and the opportunity to reserve a complimentary first session. For more information, visit hotworx.net/studio/seaside or call 884-5923.

7. CONSENT AGENDA
On motion by Council/Agency Member Garcia-Arrazola and second by Mayor Pro Tem/Vice Chair Pacheco and carried by the following vote, the City Council/Successor Agency moved to approve the consent agenda as presented.

PUBLIC COMMENT: None
RESULT: 4-0-0-1
AYES: Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
Packet Page 7
Thursday, May 7, 2026 City Council REGULAR Meeting Page 3 ABSTAIN: None
ABSENT: Burks
A. APPROVE AND FILE CITY CHECKS
ACTION: APPROVED
B. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
ACTION: APPROVED
C. ACCEPT AND FILE THE CASH AND INVESTMENTS REPORT FOR THE CITY

OF SEASIDE AND THE SUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF SEASIDE FOR THE QUARTER ENDING MARCH 31, 2026
ACTION: ACCEPTED & FILED
D. APPROVE A PROCLAMATION RECOGNIZING MAY 17-23, 2026 AS

NATIONAL PUBLIC WORKS WEEK
ACTION: APPROVED
E. APPROVE A PROCLAMATION RECOGNIZING MAY 20, 2026, AS WORLD

BEE DAY
ACTION: APPROVED
F. APPROVE A PROCLAMATION RECOGNIZING MAY 26, 2026, AS

NATIONAL POPPY DAY
ACTION: APPROVED
G. APPROVE A PROCLAMATION RECOGNIZING MAY AS NATIONAL OLDER

ADULTS MONTH
ACTION: APPROVED
H. APPROVE A MAYOR'S YOUTH FUND CONTRIBUTION REQUEST OF $3,000.00 FROM PALENKE ARTS TO ASSIST WITH THE COSTS

ASSOCIATED WITH EQUIPMENT AND SUPPLIES FOR A PHOTOGRAPHY

PILOT PROGRAM AT THEIR TEEN ARTS CENTER
Packet Page 8
Thursday, May 7, 2026 City Council REGULAR Meeting Page 4 ACTION: APPROVED
I. APPROVE A FEE WAIVER REQUEST FROM MONTEREY SANATAN
WOMEN'S CLUB INC. FOR THE USE OF SOPER COMMUNITY CENTER, ON MAY 23, 2026, FOR THEIR MONTEREY SANATAN WOMEN'S CULTURAL NIGHT IN THE AMOUNT OF $414.75
ACTION: APPROVED
J. ADOPT A RESOLUTION APPROVING A MASTER FUNDING AGREEMENT

WITH THE TRANSPORTATION AGENCY FOR MONTEREY COUNTY (TAMC) FOR RECEIPT OF $200,210.76 IN REGIONAL SURFACE

TRANSPORTATION PROGRAM (RSTP) FUNDS
ACTION: ADOPTED RESO #26-33
K. ADOPT A RESOLUTION ACCEPTING AN ANNUAL REPORT FOR THE SEASIDE HOUSING SUCCESSOR AGENCY FOR FISCAL YEARS 2013-2014 THROUGH 2024-2025
ACTION: ADOPTED RESO #26-34
L. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT FOR AN INCREASE OF $50,000.00 TO THE

CONTRACTOR SERVICES AGREEMENT WITH PRECISION CONCRETE

CUTTING FOR SIDEWALK INSPECTION AND RESTORATION SERVICES FOR AN AMOUNT NOT TO EXCEED $105,000.00
ACTION: ADOPTED RESO #26-35
M.ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE 2026 AGREEMENT FOR COUNTYWIDE 9-1-1 EMERGENCY

COMMUNICATIONS SERVICES AND GOVERNANCE WITH THE COUNTY

OF MONTEREY AND PARTICIPATING AGENCIES
ACTION: ADOPTED RESO #26-36
N. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

A USE AGREEMENT WITH MONTEREY CONDORS CLUB FOR A
FIREWORKS BOOTH ON CITY-OWNED PROPERTY LOCATED AT 1271

CANYON DEL REY BOULEVARD
ACTION: ADOPTED RESO #26-37
Packet Page 9
Thursday, May 7, 2026 City Council REGULAR Meeting Page 5 O. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A USE AGREEMENT WITH SEASIDE AQUATIC CLUB, INC. FOR A
FIREWORKS BOOTH ON CITY-OWNED PROPERTY LOCATED AT 490

BROADWAY AVENUE
ACTION: ADOPTED RESO #26-38
P. APPROVE TRAFFIC ADVISORY COMMITTEE (TAC) RECOMMENDATION

FOR THE INSTALLATION OF RED CURB AND NO OVERNIGHT PARKING SIGNS AT 1925 DEL MONTE BLVD
ACTION: APPROVED
Q. APPROVE TRAFFIC ADVISORY COMMITTEE (TAC) RECOMMENDATION FOR THE INSTALLATION OF A SECOND DRIVEWAY 1945 LUZERN
STREET
ACTION: APPROVED

8. PUBLIC HEARING
A. ADOPT AN ORDINANCE TO AMEND SECTION 10.30.010 OF THE

SEASIDE MUNICIPAL CODE TO AUTHORIZE THE DESIGNATION,

MODIFICATION, AND REMOVAL OF ONE-WAY STREETS BY RESOLUTION (SECOND READING - ROLL CALL VOTE)
Thomas Korman, Public Works Director/City Engineer, presented an ordinance amending Section 10.30.010 of the Seaside Municipal Code to allow the designation, modification, or removal of one-way streets by resolution rather than ordinance. The proposed change would streamline the process while maintaining City Council oversight and requiring at least 10 days’ notice to affected residents and businesses prior to Council action. Staff noted the revision was made in response to public concerns regarding notice and public input opportunities. Staff recommended approval of the ordinance amendment.

PUBLIC COMMENT: None
On motion by Council/Agency Member Garcia-Arrazola and second by Mayor Pro Tem/Vice Chair Pacheco and carried by the following vote, the City Council/Successor Agency moved to adopt the ordinance with proposed amendments.

RESULT: 3-1-0-1
AYES: Garcia-Arrazola, Oglesby, Pacheco
NOES: Miller
Packet Page 10
Thursday, May 7, 2026 City Council REGULAR Meeting Page 6 ABSTAIN: None
ABSENT: Burks
ACTION: Adopted Ord #2041
B. ADOPT A RESOLUTION APPROVING THE 2026-2027 ANNUAL ACTION

PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Haroon Noori, Administrative Analyst II, presented the Fiscal Year 2026–2027 Annual Action Plan for the Community Development Block Grant (CDBG) Program. The presentation provided an overview of the federal HUD-funded program, funding allocations for public service programs, public facilities and infrastructure projects, and program administration. Staff noted the City’s FY2026–2027 allocation increased by $31,060 above projections, with additional funds distributed proportionally among eligible activities. The presentation also summarized the public outreach process and funding timeline. Staff recommended approval of the FY2026–2027 Annual Action Plan, authorization for the City Manager or designee to execute related documents, and submission of the plan to HUD by the June 2, 2026 deadline.

PUBLIC COMMENT: None
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Agency moved to approve the 2026-2027 annual action plan for the CDBG program.

RESULT: 4-0-0-1
AYES: Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: Burks
ACTION: Adopted Reso #26-39

9. BUSINESS ITEMS
A. ADOPT A RESOLUTION TO APPROVE A DENSITY BONUS AND

INCLUSIONARY HOUSING AGREEMENT WITH KB BAKEWELL SEASIDE

VENTURE II, LLC AND GREATER VICTORY TEMPLE CHURCH OF GOD IN CHRIST TO DESIGNATE 21 NEW UNITS AS AFFORDABLE TO VERY-LOWINCOME HOUSEHOLDS AT 1620 BROADWAY AVENUE Andy Myrick, Housing and Planning Manager, presented a proposed resolution approving a density bonus and Inclusionary Housing Agreement with KB Bakewell Seaside Venture II, LLC and Greater Victory Temple Church of God in Christ for the development of 21 very-low-income affordable housing units at 1620 Broadway Avenue. The presentation outlined the history of the Campus Town Subdivision Packet Page 11
Thursday, May 7, 2026 City Council REGULAR Meeting Page 7 affordable housing requirements, project details, and provisions of the agreement, including affordability restrictions for households earning 50% or less of the Area Median Income for a period of 55 years. Staff also reviewed density bonus incentives and concessions authorized under California law and recommended adoption of the resolution.

PUBLIC COMMENT: Danny Bakewell, Jr., Lynda Cunningham
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Agency moved to approve a density bonus and inclusionary housing agreement with KB Bakewell, and Greater Victory Temple Church of God in Christ.

RESULT: 4-0-0-1
AYES: Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: Burks
ACTION: Adopted Reso #26-40
B. ADOPT A RESOLUTION APPROVING THE RECOMMENDATION FROM

REGEN MONTEREY TO INITIATE A COMPETITIVE REQUEST FOR

PROPOSAL (RFP) PROCESS FOR SOLID WASTE, RECYCLING, AND

ORGANICS COLLECTION SERVICES, ALLOWING GREENWASTE

RECOVERY, LLC (GREENWASTE) AND OTHER SERVICE PROVIDERS TO

COMPETE FOR THE FRANCHISE
Kirstin van Gend, Administrative Analyst II, and Sara Parral, Project Manager at HF&H Consultants, LLC, presented a recommendation from ReGen Monterey to initiate a competitive Request for Proposals (RFP) process for solid waste, recycling, and organics collection services. The presentation summarized community outreach and stakeholder engagement results, which reflected generally high satisfaction with current service provider GreenWaste Recovery, LLC, while also identifying concerns related to rates, customer service, and education and outreach. Staff and consultants reviewed considerations related to governance, affordability, service quality, assignment risk, and ReGen Monterey infrastructure, as well as the proposed timeline for the procurement process. Staff recommended adoption of a resolution authorizing GreenWaste and other qualified providers to compete for the future franchise agreement through the RFP process.

PUBLIC COMMENT: Kimmy Ito, Tim Morris, Manuel Gouveia, Emily Hansen, Kirstin O’Hara
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Packet Page 12
Thursday, May 7, 2026 City Council REGULAR Meeting Page 8 Agency moved to approve the recommendation to initiate a competitive RFP process for solid waste, recycling, and organics collection services.

RESULT: 4-0-0-1
AYES: Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: Burks
ACTION: Adopted Reso #26-41
C. ADOPT A RESOLUTION APPROVING AN AMENDMENT TO THE 2025 ONCALL LANDSCAPE ARCHITECTURE AND SITE DESIGN CONTRACT WITH

BFS LANDSCAPE ARCHITECTS TO INCREASE THE TASK ORDER LIMIT FROM $75,000.00 TO $300,000.00 FOR DESIGN SERVICES RELATED TO

THE LAGUNA GRANDE TRAILS PROJECT AND APPROPRIATE
$250,000.00 FROM THE GENERAL FUND TO THE LAGUNA GRANDE

RECREATION TRAIL PROGRAM PROJECT
City Manager Greg McDanel presented a proposed resolution approving an amendment to the City’s 2025 On-Call Landscape Architecture and Site Design Contract with BFS Landscape Architects to increase the task order limit from $75,000 to $300,000 for design services related to the Laguna Grande Trails Project. The presentation outlined the project scope, including planned renovation and expansion of approximately 1.5 miles of multi-use trails and related park amenities, supported primarily through a $1.62 million Recreational Trails Program grant from the California Department of Parks and Recreation. Staff reviewed project background, community outreach efforts, funding requirements, and the proposed timeline for design and construction. Staff recommended approval of the contract amendment and appropriation of $250,000 from the General Fund for the project.

PUBLIC COMMENT: Bobby Maxwell, Lynda Cunningham
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Agency moved to approve an amendment to the 2025 On-Call landscape architecture and site design contract with BFS Landscape Architects.

RESULT: 4-0-0-1
AYES: Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: Burks
ACTION: Adopted Reso #26-42
Packet Page 13
Thursday, May 7, 2026 City Council REGULAR Meeting Page 9 D. STRATEGIC PLAN QUARTER THREE REPORT AND FY 2026-2027

PRIORITY UPDATES
City Manager Greg McDanel presented the Strategic Plan Quarter Three Report and proposed Fiscal Year 2026–2027 priority updates. The presentation highlighted progress made under the City’s five strategic plan pillars, including governance, economic development, housing and community engagement, infrastructure and water supply, and public safety and quality of life. Staff reviewed completed and ongoing initiatives, project milestones, and departmental accomplishments during the third quarter. The presentation also outlined proposed near-term priority refinements for FY 2026–2027 to align with budget considerations and prepare for a comprehensive strategic planning process in 2027. Staff requested Council feedback on proposed priorities and recommended that the Council receive the quarterly update and provide direction for development of the final FY 2026–2027 Strategic Plan priority update to be considered with the budget in June 2026.

PUBLIC COMMENT: Lynda Cunningham
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Agency moved to accept the strategic plan quarter 3 report.

RESULT: 4-0-0-1
AYES: Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: Burks

10. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
None.

B. FOLLOW UP ON PREVIOUS REQUESTS
The City Manager informed the council that two items requested by council member will appear on the next agenda: Transgender Sanctuary City Resolution, and Letter of support in favor of AB2134.

11. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR COMMENTS

AND REPORTS ON COMMITTEE ASSIGNMENTS
Reports provided.

12. CLOSED SESSION
Packet Page 14
Thursday, May 7, 2026 City Council REGULAR Meeting Page 10 City Attorney Sheri Damon read the closed session items and did not anticipate any reports.

PUBLIC COMMENT: None
A. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9 - EXISTING LITIGATION
Monterey County Superior Court Case No. 24CV003912
Case Name: Fontes v. City of Seaside
No report.

B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8
Property: Campus Town Phase 2 property commonly located east of General Jim Moore Blvd and West of 7th Avenue and bounded on the north by Colonel Durham and the south by Gigling Road
Agency Negotiators: City Manager and City Attorney
Negotiating Parties: City of Seaside and KB Bakewell Seaside Venture II Under Negotiation: Price, Terms of Payment, or both
No report.

C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8
Property: APN 011-301-028 as corrected by Surveyor's Correction 20244046961 commonly referred to the southern pacific railway corridor and generally located between Olympia Boulevard and Canyon Del Rey
Negotiators: City Manager and City Attorney
Negotiating Parties: City of Sand City and City of Seaside Under Negotiation: Price, Terms or Both
No report.

D. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(2)
Two potential matters
No report.

13. ADJOURNMENT
Packet Page 15
Thursday, May 7, 2026 City Council REGULAR Meeting Page 11 With no further business, the meeting adjourned at 8:46 p.m.

Respectfully submitted,
_________________________ _________________________
Dominique L. Davis, City Clerk Ian N. Oglesby, Mayor
Packet Page 16

DRAFT MINUTES

CITY OF SEASIDE SPECIAL MEETING
CITY COUNCIL/ SUCCESSOR 440 HARCOURT AVE
AGENCY TO THE Tuesday, May 26, 2026
REDEVELOPMENT AGENCY 5:00 PM

1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:00 p.m.

2. ROLL CALL – ESTABLISHMENT OF QUORUM
PRESENT: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco ABSENT: None

3. PLEDGE OF ALLEGIANCE
The pledge was led by Council/Member Burks.

4. PUBLIC COMMENT
Dawn Mathes-Park

5. BUSINESS ITEMS
A. ADOPT A RESOLUTION CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026,

REQUESTING THE COUNTY OF MONTEREY ELECTIONS DEPARTMENT TO

CONDUCT THE ELECTION, AND REQUESTING CONSOLIDATION OF THE

ELECTION
City Clerk Dominique L. Davis presented the staff report recommending adoption of a resolution calling for the City of Seaside’s General Municipal Election to be held on Tuesday, November 3, 2026. The resolution identifies the offices to be elected as one Mayor and two City Councilmembers, each for four-year terms, requests that the Monterey County Elections Department conduct election services, and requests consolidation with the statewide general election. The presentation outlined the election administration timeline, including required County submissions, the candidate filing period, Election Day, and post-election certification of results. The City Clerk also summarized key resolution provisions, including the 200-word candidate statement limit, candidate responsibility for statement costs, and resolution of tie votes by lot pursuant to Elections Code Section 15651(a). The estimated fiscal impact is between $91,494 and $152,490, based on 15,249 registered voters at an estimated cost of $6 to $10 per voter.

On motion by Council/Agency Member Garcia-Arrazola and second by Council/Agency Member Miller and carried by the following vote, the City Packet Page 17
Tuesday, May 26, 2026 City Council SPECIAL Meeting Page 2 Council/Successor Agency moved to call for a general municipal election on Tuesday, November 3, 2026.

PUBLIC COMMENT: None
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO #26-51
B. RECEIVE A PRESENTATION ON THE DRAFT FISCAL YEAR 2026-2027

OPERATING BUDGET, CAPITAL IMPROVEMENT PROGRAM, FEE

SCHEDULE, POSITION CONTROL LIST, SALARY SCHEDULE, AND

RESERVE AMOUNTS AND PROVIDE DIRECTION TO STAFF AS TO ANY

CHANGES TO BE MADE PRIOR TO ADOPTION
City Manager Greg McDanel introduced the proposed Fiscal Year 2026–27 “Stabilization and Recovery” Budget, framing the City’s current fiscal condition as a period of transition shaped by flattening recurring revenues, rising operating costs, increasing personnel and pension obligations, and development revenues that remain timing-dependent. The proposed budget emphasized proactive realism, disciplined restraint, long-term recovery, and the protection of essential services.

The City Manager noted that the General Fund reflects approximately $51.3 million in operating revenues, $52.8 million in operating expenditures, and an operating deficit of approximately $1.5 million. The presentation further highlighted the continued use of 22 frozen positions as an expenditure-control measure, reserves funded at approximately 88% of policy targets, and the need to treat reserve use as a limited bridge rather than a permanent operating strategy.

Finance Director Jessie Riley presented an overview of the proposed Fiscal Year 2026–27 Budget, including recent and proposed fiscal policies, all-funds and General Fund revenues and expenditures, fund balance trends, and long-term forecast considerations. The presentation identified all-funds revenues of approximately $72.3 million and expenditures of approximately $81.6 million, resulting in an operating deficit of approximately $9.3 million. The General Fund balance is projected to decrease by approximately $4.7 million, or 15%, with funding allocated for capital improvements and street maintenance and repair. Strategic options to strengthen the fund balance included evaluating discretionary operating expenditures, deferring or rescoping General Fund-funded capital projects, reducing General Fund transfers to street operations, reviewing use of the Section 115 Pension Trust, workforce realignment and service sustainability, and broader financial resilience strategies, including quarterly financial reporting beginning in October 2026.

Packet Page 18
Tuesday, May 26, 2026 City Council SPECIAL Meeting Page 3 Staff also presented department-level budget summaries, accomplishments, and Fiscal Year 2026–27 goals for several operating areas, including Mayor and Council, City Manager, Neighborhood Improvement Commission, City Clerk/Public Affairs, City Attorney, Human Resources and Risk Management, Finance, Economic Development, and related commissions. Department presentations highlighted continued progress on major City priorities, including Campus Town, the Grand Hyatt Seaside Hotel & Resort, Main Gate redevelopment, neighborhood improvements, public engagement, records modernization, legislative advocacy, workforce capacity, risk management savings, financial reporting, economic development, housing, infrastructure, public safety, and transparent governance.

6. ADJOURNMENT
With no further business, the meeting adjourned at 8:57 p.m.

Respectfully submitted,
_________________________ _________________________
Dominique L. Davis, City Clerk Ian N. Oglesby, Mayor
Packet Page 19

DRAFT MINUTES

CITY OF SEASIDE SPECIAL MEETING
CITY COUNCIL/ SUCCESSOR 440 HARCOURT AVE
AGENCY TO THE Wednesday, May 27, 2026
REDEVELOPMENT AGENCY 5:00 PM

1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:00 p.m.

2. ROLL CALL – ESTABLISHMENT OF QUORUM
PRESENT: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco ABSENT: None

3. PLEDGE OF ALLEGIANCE
The pledge was led by Council/Agency Member Miller.

4. PUBLIC COMMENT
Robert Daniels, Jr., Rufus Brandus, Karla Lobo

5. BUSINESS ITEMS
A. RECEIVE A PRESENTATION ON THE DRAFT FISCAL YEAR 2026-2027

OPERATING BUDGET, CAPITAL IMPROVEMENT PROGRAM, FEE

SCHEDULE, POSITION CONTROL LIST, SALARY SCHEDULE, AND

RESERVE AMOUNTS AND PROVIDE DIRECTION TO STAFF AS TO ANY

CHANGES TO BE MADE PRIOR TO ADOPTION
City Manager Greg McDanel introduced the second night of the Fiscal Year 2026– 2027 Budget Sessin, framing the proposed budget as a stabilization and recovery budget intended to protect core services, maintain filled workforce capacity, and use reserves only as a limited transition bridge while the City continues longer-term recovery actions. Staff presented budget summaries and key highlights for Police, Fire, Recreation, Public Works and Engineering, the Capital Improvement Program, and the proposed fee schedule.

Department presentations reviewed Fiscal Year 2025–2026 accomplishments, Fiscal Year 2026–2027 goals, staffing levels, revenues, expenditures, commission work plans, and service priorities. The Police Department highlighted public safety initiatives, community outreach, traffic enforcement, illegal fireworks enforcement, technology advancements, and planned patrol vehicle purchases. The Fire Department reviewed service activity, incident trends, staffing, and budget needs.

The Recreation Department summarized programs, facility operations, community events, grant-supported initiatives, and the work plans of related commissions.

Public Works and Engineering reviewed core service areas, including engineering, Packet Page 20
Wednesday, May 27, 2026 City Council SPECIAL Meeting Page 2 utilities, facilities, parks maintenance, streets, vehicle maintenance, and capital project delivery.

Staff also presented the Fiscal Year 2026–2027 Capital Improvement Program, noting that the City’s Five-Year CIP includes 111 projects totaling approximately $198.3 million, with 27 projects totaling approximately $8.8 million recommended for appropriation in Fiscal Year 2026–2027. Of that amount, approximately $819,000 was proposed from the General Fund unassigned fund balance, with the balance funded through grants and other special revenue sources.

Finance Director Jessie Riley presented long-term General Fund projections and strategies to strengthen the fund balance. The forecast identified projected operating deficits, continued reserve pressure, and the need for structural alignment between ongoing revenues and expenditures. Staff reviewed potential strategies, including evaluating discretionary operating expenditures, deferring or rescoping General Fund-funded capital projects, reducing General Fund transfers to street operations, considering use of the Section 115 Pension Trust, workforce realignment, and advancing a broader financial resilience strategy focused on operational efficiency, revenue growth, economic development, expenditure discipline, and quarterly financial reporting beginning in October 2026.

Council received the presentations, discussed the stabilization framework, and provided direction for staff to continue refining the proposed budget, including any Council-supported adjustments to operating items, capital projects, street commitments, fee schedule changes, and reserve strategy assumptions prior to returning with the final budget adoption documents.

6. ADJOURNMENT
With no further business, the meeting adjourned.

Respectfully submitted,
_________________________ _________________________
Dominique L. Davis, City Clerk Ian N. Oglesby, Mayor
Packet Page 21

CITY OF SEASIDE

STAFF REPORT
Item No.: 7.B.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Corryn Bennett, Accountant II
DATE: June 18, 2026
SUBJECT: APPROVE AND FILE CITY CHECKS

RECOMMENDATION
Approve and file the accounts payable and wired payments made during the period of May 02, 2026 through May 15, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period of May 14, 2026. Total Accounts Payable and Payroll for the above referenced period is $2,126,719.41.

BACKGROUND
In accordance with Government Code Section 37208, at each City Council meeting, the Council is provided a listing of the payroll and general checks issued since the last report so that the checks can be inspected and confirmed. Each purchase has been reviewed and approved by the department making the purchase at the time of procurement. The invoices have been reviewed by the Finance Department prior to payment to ensure that they conform to the approved budget.

Therefore, in accordance with Government Code Section 37208, the above referenced and linked list of checks conforms to the approved budget and has been paid. These checks are submitted to the City Council for inspection and confirmation.

A description of the checks and wires exceeding $10,000.00 are as follows:
• $47,971.05 to CALIFORNIA-AMERICAN WATER for Multiple City water accounts under Cal-Am Water 03/21/26-04/22/26. Service addresses include city buildings, parks, fire hydrants, irrigation stations, and city affordable housing. • $16,345.00 to PARAMETRIX, INC. for Professional developing services through 04/03/2026: On-call traffic engineering services.

Packet Page 22

Item No. 7.B. Page 2 of 3
• $16,471.50 to JOHN E ARRIAGA for Fees for professional services for the periods of April and May 2026.
• $63,740.66 to PACIFIC GAS & ELECTRIC for Collective accts for street lights, highway lighting, park lights and city office buildings. Service for the statement period of 03/26/25-04/23/26.
• $24,679.96 to SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS FOR MONTEREY COUNTY, INC. for Animal care services for Police Department for the period of April 2026.
• $46,319.46 to U.S. BANK-CALCARD for City of Seaside purchase card transactions for the billing period of April 2026.
• $14,537.28 to CDW LLC for Virtual desktop software for the period of 04/26/26- 04/27/27.
• $53,302.40 to HARRIS & ASSOCIATES, INC. for Campus Town Phase 2 Demolition services for the period of March 2026.
• $40,540.76 to DUKE'S ROOT CONTROL, INC. for Root control sewer maintenance for the period of April 2026.
• $20,624.00 to DAVID OLSON, INC for Leak repair for the dehumidifier at Pattullo Swim Center.
• $126,716.95 to MARINA COAST WATER DISTRICT for Recycled water meter services for the period of April 2026.
• $18,652.61 to ICONIX WATERWORKS (US) INC. for Purchase of equipment and supplies for the Water Department.
• $39,000.00 to BEAR ELECTRICAL SOLUTIONS for Installation of ADA compliant audible alarm crossing signal push buttons at (3) intersections. • $30,427.74 to KIMLEY-HORN AND ASSOCIATES, INC. for Professional services for Phase 2 Broadway Complete Streets for the period of March 2026. • $20,812.50 STURDY OIL COMPANY for (2) invoices: 1,500 gallons of regular gas (ethanol) and 803 gallons of clear diesel delivered to the public works department on 04/22/2026; 1,400 gallons of regular gas (ethanol) delivered to the public works department on 04/10/2026.
• $10,677.08 HUNTINGTON PUBLIC CAPITAL CORP. for Lease contract payment for the Energy Project at City Hall, City Library, and Fire Department locations for the period ending 03/31/26.
• $16,416.00 SEASIDE HOUSING LP for June 2026 rental assistance program for (12) tenants.
• $22,596.76 ENTERPRISE FM TRUST for Monthly payment for (21) leased City vehicles for the period of May 2026.

The Net Payroll and Payroll benefits total was $980,291.8.

The remaining checks, totaling $516,668.41, include payments to vendors for operating expenditures.

Packet Page 23

Item No. 7.B. Page 3 of 3
The check report is available on the City's website here:
https://www.ci.seaside.ca.us/194/Check-Draft-Register

FISCAL IMPACT
There are no additional fiscal impacts.

STRATEGIC PRIORITY
Effective Accessible Governance

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 24

CITY OF SEASIDE

STAFF REPORT
Item No.: 7.C.

TO: Successor Agency to the Redevelopment Agency of the City of Seaside FROM: Greg McDanel, City Manager
BY: Corryn Bennett, Accountant II
DATE: June 18, 2026
SUBJECT: APPROVE AND FILE SUCCESSOR AGENCY CHECKS

RECOMMENDATION
Approve and file the accounts payable and wired payments made during the period of May 02, 2026 through May 15, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period May 14, 2026. Total Accounts Payable and Payroll for the above referenced period is $580.07.

BACKGROUND
In accordance with Government Code Section 37208, at each City Council meeting, the Council is provided a listing of the payroll and general checks issued since the last report so that it can inspect and confirm these checks. Each purchase has been reviewed and approved by the department making the purchase at the time of procurement. The invoice has been reviewed by the Finance Department prior to payment to ensure that it conforms to the approved budget.

Therefore, in accordance with Government Code Section 37208, the above referenced and linked list of checks conforms to the approved budget and has been paid. These checks are submitted to the City Council for inspection and confirmation.

A description of the checks and wires exceeding $10,000 are as follows:
• No checks exceeded $10,000.

The Checks report is available on the City's website here:
https://www.ci.seaside.ca.us/194/Check-Draft-Register
Packet Page 25

Item No. 7.C. Page 2 of 2

FISCAL IMPACT
There are no additional fiscal impacts.

STRATEGIC PRIORITY
Effective Accessible Governance

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 26

CITY OF SEASIDE

STAFF REPORT
Item No.: 7.D.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Paul Blaha, Deputy Fire Chief
DATE: June 18, 2026
SUBJECT: ADOPT A RESOLUTION AUTHORIZING SUBMISSION OR
PARTICIPATION IN A FISCAL YEAR 2025 FEDERAL

EMERGENCY MANAGEMENT AGENCY ASSISTANCE TO
FIREFIGHTERS GRANT REGIONAL APPLICATION FOR SELFCONTAINED BREATHING APPARATUS

RECOMMENDATION
Approve submittal or participation in a FY 2025 FEMA Assistance to Firefighters Grant Regional application for self-contained breathing apparatus.

BACKGROUND
The Fire Department seeks authorization to submit or participate in a FY 2025 Federal Emergency Management Agency (FEMA) Assistance to Firefighters Grant (AFG) Regional application with Monterey County partner agencies to replace self-contained breathing apparatus (SCBA). Quotes are still being finalized; therefore, staff recommends authorization to apply for up to the applicable AFG Regional maximum award, anticipated not-to-exceed $2,000,000 in federal funds for the combined service area, plus the required 10% local match. SCBA replacement is a high-cost, critical lifesafety need, and any excess cost over the grant award, in addition to the cost share, will need to be prioritized in the following budget cycle.

The FY 2025 AFG Program supports equipment purchases that equip emergency personnel to recognized standards, improve firefighter safety, increase operational efficiency, foster interoperability, and strengthen community resilience. Regional applications are specifically intended to address common needs across multiple jurisdictions where a regional solution improves standardization and mutual aid operations. SCBA units are essential respiratory protection devices used by firefighters Packet Page 27

Item No. 7.D. Page 2 of 2
during interior structure fires, hazardous materials incidents, vehicle fires, confined space emergencies, and other immediately dangerous to life and health environments.

The Fire Department’s SCBA units are expiring in two years, creating an urgent need for replacement to maintain compliance, firefighter safety, and operational readiness.

Replacement costs are significant, making a regional grant application the most fiscally responsible path to address this critical equipment need. Without grant funding, the Fire Department and its partners may be forced to defer or stagger replacements, increasing maintenance issues, incompatibility, firefighter safety risk, and operational disruptions when expired equipment must be removed from service.

FISCAL IMPACT
Adoption of the resolution authorizes submission of, or participation in, the regional grant application and commits the City to provide the required local cost share if awarded. No immediate budget appropriation is requested at this time. If awarded, staff will return to the City Council as necessary to accept the award, appropriate revenues and expenditures, approve any budget amendments, and authorize the required local match.

STRATEGIC PRIORITY
Community Safety & Quality of Life

ATTACHMENTS

1. Resolution
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 28
Meeting Date: 06/18/26
Item 7.D.

RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

AUTHORIZING THE SUBMISSION OR PARTICIPATION IN A FISCAL YEAR 2025 FEDERAL EMERGENCY MANAGEMENT AGENCY ASSISTANCE TO

FIREFIGHTERS GRANT REGIONAL APPLICATION FOR SELF-CONTAINED

BREATHING APPARATUS
WHEREAS, the Federal Emergency Management Agency (FEMA), through the Assistance to Firefighters Grant (AFG) Program, provides funding to fire departments and eligible agencies for equipment, personal protective equipment, training, emergency vehicles, and other initiatives that improve firefighter safety, operational efficiency, interoperability, and community resilience; and,
WHEREAS, regional AFG applications are intended to address common needs across multiple jurisdictions when a regional solution improves standardization, compatibility, and mutual aid operations; and,
WHEREAS, the Seaside Fire Department’s existing SCBA are expected to expire in approximately two years, creating a critical need for timely replacement to maintain firefighter safety, compliance, and operational readiness; and, WHEREAS, replacement of SCBA is a high-cost, critical life-safety need, and a regional grant application is a fiscally responsible approach to address the need while improving equipment consistency and interoperability among participating agencies; and, WHEREAS, the City of Seaside Fire Department seeks authorization to submit or participate in a regional FY 2025 AFG application with Monterey County partner agencies to replace self-contained breathing apparatus (SCBA); and, WHEREAS, the City’s Administrative Policy on Grant Management requires City Council approval for grant applications equal to or exceeding $10,000 and requires adoption of a resolution approving the filing of the application.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside does hereby:

1. Approves the filing of a grant application for the acquisition of self-contained breathing apparatus under the FY 2025 FEMA Assistance to Firefighters Grant Program.

2. Certifies that the proposed project is consistent with the City’s General Plan goals and objectives.

Packet Page 29
-2

3. Certifies that the City will have sufficient funds available to operate and maintain the project upon completion.

4. Authorizes and appoints the City Manager, or their designee, as the City’s agent to conduct all negotiations, execute and submit all documents, including but not limited to applications, agreements, amendments, payment requests, and related documents, which may be necessary for the completion of the projects and administration of the grant.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of Seaside duly held on the 18th day of June 2026, by the following vote:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS

APPROVED:
_______________________________
Ian N. Oglesby, Mayor

ATTEST:
______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
Packet Page 30

CITY OF SEASIDE

STAFF REPORT
Item No.: 7.E.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Dominique Davis, City Clerk
DATE: June 18, 2026
SUBJECT: ADOPT A RESOLUTION APPROVING A POLICY ADDRESSING

DISRUPTION OF TELEPHONIC OR INTERNET SERVICE DURING

PUBLIC MEETINGS

RECOMMENDATION
Adopt a Resolution approving the City of Seaside Technology Disruption Policy for public meetings pursuant to Senate Bill 707 and Government Code Section 54953.4.

BACKGROUND
SB 707 requires eligible legislative bodies to provide procedures for disruptions in remote public access, including service interruptions affecting two-way telephonic or audiovisual platforms used for public attendance and observation. The City’s proposed policy applies to City Council and other applicable City legislative body meetings where remote public participation is offered or required.

Under the proposed policy, if a disruption prevents the public from attending or observing a meeting remotely, the Presiding Officer, City Clerk, board or commission secretary, or designated staff will announce the disruption and staff will begin efforts to restore service. The open session must recess for at least one hour, or until remote access is restored, whichever occurs first. During that period, the legislative body may meet in closed session if otherwise permitted by law.

If remote access is restored, the meeting may reconvene and continue in the ordinary course. If remote access is not restored, the legislative body may adjourn the meeting or continue in open session after adopting, by roll-call vote, a finding that good-faith efforts were made to restore service and that the public interest in continuing the meeting outweighs the public interest in remote public access.

Packet Page 31

Item No. 7.E. Page 2 of 2
The policy also provides for documentation in the meeting minutes, including the nature and timing of the disruption, restoration efforts, whether service was restored, and any direction or findings made by the legislative body.

FISCAL IMPACT
There is no direct fiscal impact associated with adoption of the policy. Implementation will rely primarily on existing staff time, meeting support procedures, and information technology resources.

STRATEGIC PRIORITY
Effective Accessible Governance

ATTACHMENTS

1. Resolution

2. Exhibit 1 - SB 707 Technology Disruption Policy
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 32
Meeting Date: 06/18/26
Item #: X.X.

RESOLUTION NO. 26-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

ADOPTING A POLICY ADDRESSING DISRUPTION OF TELEPHONIC OR

INTERNET SERVICE DURING PUBLIC MEETINGS
WHEREAS, the Ralph M. Brown Act (Government Code § 54950 et seq.) establishes requirements for open and public meetings of local legislative bodies; and WHEREAS, Senate Bill 707 (2025) amended the Brown Act to update teleconferencing and accessibility requirements, including provisions related to remote participation in public meetings; and
WHEREAS, Government Code § 54953.4(b)(1)(A) requires eligible legislative bodies, on or before July 1, 2026, to adopt at a noticed public meeting in open session, and not on the consent calendar, a policy addressing disruption of telephonic or internet service during meetings conducted with remote participation; and WHEREAS, the required policy must address procedures for recessing and reconvening a meeting in the event of a disruption and the efforts the legislative body will make to attempt to restore service; and
WHEREAS, Government Code § 54953.4 further requires that, in the event of a disruption preventing members of the public from observing or participating in the meeting through a two-way telephonic or audiovisual platform, the legislative body shall recess the open session for at least one hour and make a good faith effort to restore service, and may not reconvene open session until at least one hour has passed or service has been restored, whichever occurs first; and
WHEREAS, if telephonic or internet service has not been restored upon reconvening, the legislative body must make findings by roll call vote that good faith efforts to restore service have been made and that the public interest in continuing the meeting outweighs the public interest in remote public access; and WHEREAS, adoption of a technology disruption policy is required to ensure compliance with state law and to promote transparency and continuity of public meetings; and
WHEREAS, the proposed policy addressing disruption of telephonic or internet service during meetings of the City Council has been prepared in accordance with Government Code § 54953.4 and is attached hereto as Exhibit 1; and Packet Page 33
WHEREAS, the activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.

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

Section 1. Adoption of Policy. The City Council hereby adopts the policy entitled “Disruption of Telephonic or Internet Service During Public Meetings,” substantially in the form attached hereto as Exhibit 1.

Section 2. Implementation. The City Clerk and/or City Manager is authorized and directed to implement the policy in coordination with agency staff, legal counsel, and technology support staff, as appropriate.

Section 3. Minor Modifications. The City Attorney may approve minor, nonsubstantive modifications to the policy as necessary to conform to applicable law, agency practices, or formatting requirements, provided such modifications do not materially alter the intent of the policy.

Section 4. Effective Date. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the 18th day of June, 2026 by the following vote:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
APPROVED:

__________________________
Ian N. Oglesby, Mayor
ATTEST:
___________________________
Dominique L. Davis, City Clerk
Packet Page 34
APPROVED AS TO FORM:
______________________________
Sheri L. Damon, City Attorney

Packet Page 35
City of Seaside | SB 707 Technology Disruption Policy

CITY OF SEASIDE
Technology Disruption Policy
Policy: Disruption of Telephonic or Internet Service During Public Meetings

1. Background
Senate Bill 707 amended the Brown Act to require eligible legislative bodies to adopt a policy addressing how the agency will respond to disruptions in telephonic or internet service that prevent members of the public from attending or observing a meeting remotely. This policy is adopted by the City of Seaside to support continuity of public participation, transparency, and orderly meeting administration during technology disruptions.

2. Purpose
This policy establishes procedures for responding to a disruption in the telephonic or internet services that provide two-way remote public access to meetings of the City of Seaside City Council and other applicable City legislative bodies, as required by the Brown Act, including Government Code section 54953.4.

The policy is intended to preserve meaningful public access, guide the Presiding Officer and City Clerk or designated staff during disruptions, and document the City’s good faith efforts to restore remote access services when disruptions occur.

3. Definitions
For purposes of this policy:
• “City” means the City of Seaside.
• “Disruption” means any failure, outage, or interruption of telephonic or internet service that prevents members of the public from attending or observing a meeting via the City’s remote access services. • “Legislative body” means the City Council and any other City board, commission, committee, or other body subject to the Brown Act for which remote public participation is offered or required. • “Presiding Officer” means the Mayor, Chair, or other officer presiding over the meeting. • “Remote access services” means the two-way telephonic service and/or two-way audiovisual platform used by the City to provide real-time remote public attendance and observation of meetings, including platforms such as Zoom or another City-designated remote meeting platform.

4. Applicability
This policy applies to all open and public meetings of the City of Seaside City Council and other City legislative bodies at which remote public participation is offered or required under the Brown Act.

Nothing in this policy requires the City to offer remote public participation for meetings where remote participation is not otherwise required by law or authorized by the City’s adopted procedures. When remote access is offered, this policy governs the City’s response to service disruptions that prevent remote attendance or observation.

5. Procedures in the Event of a Service Disruption

5.1 Response to Service Disruption
If the Presiding Officer, City Clerk, board or commission secretary, or designated staff becomes aware of a disruption to the City’s remote access services that prevents members of the public from attending or observing the meeting remotely:

Packet Page 36
City of Seaside | SB 707 Technology Disruption Policy

1. The Presiding Officer, City Clerk, board or commission secretary, or designated staff shall promptly announce the disruption to the legislative body and the public attending in person.

2. The Presiding Officer may call for a recess of the open session or, when appropriate and consistent with the Brown Act, convene the legislative body in closed session.

3. City staff shall begin efforts to diagnose and restore the disrupted remote access service.

4. The meeting shall remain in recess for at least one hour or until remote access service is restored, whichever occurs first. The recess period may be extended if restoration efforts are ongoing and the Presiding Officer determines that an extension is appropriate.

5.2 Efforts to Restore Service
The City shall make good faith efforts to restore remote access services. Depending on the nature of the disruption, such efforts may include:
• Troubleshooting the remote meeting platform, webinar settings, or teleconferencing software; • Resetting or replacing audiovisual equipment, microphones, cameras, livestream equipment, or related hardware;
• Attempting alternative internet or telephone connection methods, if available; • Contacting City information technology support, platform support, audiovisual support, or other service providers;
• Switching to backup equipment, alternate meeting links, or backup platforms, if available and operationally feasible; and
• Providing updates to in-person attendees and, when feasible, through the City’s website, agenda page, or other public communication channels.

The City Clerk, board or commission secretary, or designated staff shall document the restoration efforts undertaken.

6. Reconvening the Open Session

6.1 Timing
The open session may be reconvened after at least one hour has elapsed from the time of disruption or as soon as remote access service is restored, whichever occurs earlier.

6.2 If Service Is Restored
If remote access service is restored before or at the time the meeting reconvenes, the meeting may continue in the ordinary course, subject to the Presiding Officer’s direction and all applicable Brown Act requirements.

6.3 If Service Is Not Restored
If remote access service has not been restored after one hour, the legislative body may reconvene and either:

5. Adjourn the meeting; or

6. Continue the meeting in open session by adopting, by roll call vote, the following finding or a substantially similar finding:

7. Public Comment Considerations
When feasible, the Presiding Officer may provide a reasonable opportunity for public comments that were delayed or interrupted by the disruption, consistent with the agenda, the Brown Act, and the City’s adopted meeting procedures.

Packet Page 37
City of Seaside | SB 707 Technology Disruption Policy
If the meeting continues without restored remote access following the required finding, the legislative body should consider the nature of the remaining agenda items, the urgency of City business, the availability of in-person public comment, and whether continuing the meeting best serves the public interest.

8. Recordkeeping
The City Clerk, board or commission secretary, or designated staff shall enter a brief statement into the meeting minutes documenting the disruption and the City’s response. The record should include, as applicable:
• The nature and approximate time of the disruption;
• The remote access service or platform affected;
• The restoration efforts undertaken;
• The time the meeting recessed and reconvened, if applicable; • Whether remote access service was restored;
• Any finding adopted pursuant to Section 6.3; and
• Any other relevant direction provided by the Presiding Officer or legislative body.

9. Roles and Responsibilities
Role Responsibility
Presiding Officer
Announces disruption, calls recess as needed,
manages reconvening, and seeks any required finding
by roll call vote.

City Clerk / Board or Commission Secretary
Tracks the disruption, coordinates with staff,
documents restoration efforts, and records required
information in the minutes.

Information Technology / Audiovisual Support
Diagnoses and supports restoration of remote access
services, including platform, internet, telephone, audio, video, and equipment issues.

City Manager or Designee
Supports operational coordination and public
communication when broader service impacts or urgent
City business are involved.

10. Review and Updates
This policy may be reviewed periodically and amended by the City Council or applicable legislative body at a noticed public meeting in open session. Updates to this policy shall not be placed on the consent calendar when consideration is required by SB 707 or applicable Brown Act provisions.

11. Effective Date
This policy shall take effect upon adoption by the City Council or applicable legislative body and shall remain in effect unless amended or repealed.

Optional staff implementation note: Following adoption, staff should maintain a copy of this policy with meeting procedures, agenda production resources, and City Council meeting support materials so it can be accessed quickly during live meetings.

Packet Page 38

CITY OF SEASIDE

STAFF REPORT
Item No.: 7.F.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Laura Calata, Administrative Analyst
DATE: June 18, 2026
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE A FIRST AMENDMENT TO THE COMMUNICATION SITE

LEASE AGREEMENT WITH T-MOBILE WEST, LLC FOR EXISTING

TELECOMMUNICATIONS FACILITIES ON CITY-OWNED
PROPERTY LOCATED AT 1444 SKYVIEW DRIVE

RECOMMENDATION
Authorize the City Manager to execute the First Amendment to the Communication Site Lease Agreement with T-Mobile West LLC.

BACKGROUND
The City leases a portion of City-owned property at 1444 Skyview Drive to T-Mobile West LLC, successor-in-interest to Pacific Bell Mobile Services, for the operation of wireless telecommunications facilities. The original Communication Site Lease Agreement was executed in 1996 and provided for an initial five-year term with five additional five-year renewal terms. The current lease term expires on September 19, 2026.

T-Mobile has requested approval of a First Amendment to extend the lease and update certain business terms. The amendment would allow T-Mobile to continue operating its existing facilities at the site and would provide the City with increased lease revenue.

The amendment does not approve a new tower or new wireless facility.

The proposed First Amendment extends the existing lease through five additional fiveyear renewal terms beginning September 20, 2026. The lease will automatically renew for each successive renewal term unless T-Mobile provides written notice of nonrenewal at least 30 days before the expiration of the then-current term.

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Item No. 7.F. Page 2 of 2
The amendment increases monthly rent from $2,469.68 to $2,750 beginning September 20, 2026. Rent will then increase by 5% annually beginning September 20, 2027, and on each anniversary thereafter. The amendment also updates certain administrative provisions, including the tenant notice address and related lease administration language. Except as specifically amended, the remaining terms of the original lease remain in full force and effect.

Proposed Transaction Terms
Current lease expiration: September 19, 2026
New renewal structure: Five additional five-year renewal terms New monthly rent: $2,750 beginning September 20, 2026
Current monthly rent: $2,469.68
Monthly rent increase: $280.32
Annual escalation: 5% beginning September 20, 2027
Use: Continued operation of existing telecommunications facilities Other terms: Original lease terms remain in effect except as amended

FISCAL IMPACT
Beginning September 20, 2026, monthly rent will increase from $2,469.68 to $2,750, resulting in additional rent revenue of $280.32 per month, or $3,363.84 annually on a full-year basis. Rent will increase by 5% annually beginning September 20, 2027, and on each anniversary thereafter.

STRATEGIC PRIORITY
Not Applicable

ATTACHMENTS

1. Resolution

2. Original Tower Lease

3. First Amendment Tower Communications Lease
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 40
RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO

THE COMMUNICATION SITE LEASE AGREEMENT WITH T-MOBILE WEST, LLC

FOR EXISTING TELECOMMUNICATIONS FACILIITES ON CITY-OWNED PROPERTY LOCATED AT 1444 SKYVIEW DRIVE
WHEREAS, the City of Seaside (“City”) and Pacific Bell Mobile Services entered into a Communication Site Lease Agreement dated September 19, 1996, for the use of City-owned property located at 1444 Skyview Drive, Seaside, California, for the operation of telecommunications equipment; and,
WHEREAS, T-Mobile West LLC is the successor-in-interest to the original lessee under the Communication Site Lease Agreement; and,
WHEREAS, the current lease term expires on September 19, 2026; and, WHEREAS, the City and T-Mobile West LLC desire to enter into a First Amendment to the Communication Site Lease Agreement to extend the lease term and update certain business and administrative terms; and,
WHEREAS, the proposed First Amendment provides for five additional five-year renewal terms beginning September 20, 2026, subject to the renewal and non-renewal provisions set forth in the First Amendment; and,
WHEREAS, the proposed First Amendment increases monthly rent from $2,469.68 to $2,750 beginning September 20, 2026, with annual rent increases of five percent beginning September 20, 2027, and each anniversary thereafter; and, WHEREAS, approval of the First Amendment will allow continued operation of existing telecommunications infrastructure while increasing lease revenue to the City.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside authorizes the City Manager, to execute the First Amendment to the Communication Site Lease Agreement with T-Mobile West, LLC, and any related documents necessary to implement the terms of the agreement.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside, State of California, on the 18th day of June, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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ABSTAIN: COUNCIL MEMBERS:

APPROVED:

ATTEST:

______________________________
Ian Oglesby, Mayor
_________________________
Dominique L. Davis, City Clerk
Packet Page 42
MENT TO: RenoluLLon NO. 96-92
PAGES

COMMUNICATION SITE LEASE AGREEMENT

PACIFIC BELL MOBILE SERVICES

CITY OF SEASIDE WATER TANKS

AT SKYVIEW DRIVE
(PBMS SITE SF-711-21)
SEASIDE. CA
Packet Page 43

TABLE OF CONTENTS
Page
I DEMISED PREMISES . ........................................... 4 A PERMITTED USE . ......................................... 4 B . CONSTRUCTED IMPROVEMENTS ............................... 4 C . 'AS IS" CONDITION ..................................... 5 D . RIGHT TO GRANT EASEMENTS .............................. 5 I1 . TERM OF AGREEMENT .......................................... 6 A . COMMENCEMENT AND TERMINATION .......................... 6 B . SURRENDER OF PREMISES ................................. 6 C . ACCESS TO IMPROVEMENTS ................................ 7 I11 . RENT ....................................................... 9 A . BASIC RENT ............................................ 9 B . LATE PAYMENT CHARGE/PENAL TY ........................... 9 C ADJUSTMENT . OF RENT .................................... 9 IV . COVENANTS AND CONDITIONS ................................... 9 A CITY COVENANTS . ........................................ 9 1 . Quiet Possession ................................ 9 2 . Assignment and Subleasing ........................ 10 3 . Right to Encumber ................................ 10 4 . Hazardous Waste Representation ................... 10 B . LESSEE COVENANTS ...................................... 11 1 . Compliance with Law .............................. 12 2 . Taxes ............................................ 12 3 . Indemnity ........................................ 12 4 . Insurance Coverage ............................... 13 5 . Legal Proceedings ................................ 13 6 . Maintenance and Repairs .......................... 13 7 . Nondiscrimination ................................ 14 8 . Utility Costs .................................... 14 9 . Waste, Damage or Destruction ..................... 14 10 . Relocation ....................................... 15 11 . Contingency ...................................... 15 12 . Interference With Communications ................. 15 . .

C . RESTRICTIVE CONDITIONS ................................ 16 1 . Administration and Notices ....................... 16 2 . City Approval and Consent ........................ 17 Eminent Domain ................................... 17
Entry and Inspection ............................. 18
Holding Over ..................................... 18
Merger ........................................... 18
Default by Lessee ................................ 18
Right to Cure .................................... 19
City Rights if Default ........................... 20
Reservation of City Rights ....................... 20
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TABLE OF CONTENTS
(continued)
Page
C . RESTRICTIVE CONDITIONS (continued)
11 . Time is of the Essence ............................ 20 12 . Waiver ............................................ 21 13 . Recordation ....................................... 21 14 . Rights of Mortgage Lender ......................... 21 15 . Title ............................................. 21 16 . Estoppel Certificates ............................. 21 17 . Captions .......................................... 22 18 Entire Agreement . .................................. 22 19 . Severability ...................................... 22 20 . Successors ........................................ 23 21 Signature Page . .................................... 23 EXHIBIT "A" LEGAL DESCRIPTION OF CITY'S PROPERTY ............. 24 EXHIBIT 'B' DESCRIPTION OF PREMISES .......................... 25 EXHIBIT "C' LESSEE'S FACILITIES .............................. 26 Packet Page 45
A$H;ENT TO: RenoLLLtion No. 096-92

OF& PAGES

LEASE AGREEMENT

CITY OF SEASIDE AND PACIFIC BELL MOBILE SERVICES
THIS COMMUNICATIONS SITE LEASE AGREEMENT ("Lease") is
executed by and between the CITY OF SEASIDE, a municipal corporation, hereinafter called "City" and PACIFIC BELL MOBILE SERVICES, a California corporation, hereinafter called "Lessee" effective as of September 19,1996.

I. DEMISED PREMISES. City hereby leases to Lessee and Lessee leases from City a portion of that certain real property situated in the CITY OF SEASIDE, STATE OF CALIFORNIA, forming a portion of the City's water tanks and a portion of the ground in proximity thereto on Skyview Drive (Assessor's Parcel Numbers 012-673-002 and 012-673-008). The legal description of the real property owned by City containing the real property leased to Lessee is specifically described on Exhibit 'A" attached hereto (the "Property"). The portion of the Property leased to Lessee (collectively the "Premises"), consisting of that certain area on the sides of City's water tanks and consisting of approximately eighty (80) feet of ground in proximity thereto is delineated on ~xhibit 'B" attached hereto.

A. PERMITTED USE. The Premises may be used by Lessee for the provision of mobile/wireless communications services, including without limitation, the transmission and the reception of radio communication signals on various frequencies and the construction, maintenance and operation of related communications operating facilities. City agrees, at no expense to City, to cooperate with Lessee in making application for and obtaining all licenses, permits and any and all other necessary approvals that may be required for Lessee's intended use of the Premises.

The Premises will not be used for any activity or in any manner which would tend to lower the first-class character of the Premises, or in such a manner as to create any nuisance which disturbs, interferes with, or annoys any other neighboring person or entity.

B. CONSTRUCTED IMPROVEMENTS. Lessee may construct only
Lessee's Facilities (as defined in Subparagraph 2 of Article IIC.) . Any minor modifications of Lessee's Facilities shall be subject to the prior written consent of City, which consent shall not be unreasonably withheld. Before any work of construction, alteration, or repair is commenced on the Premises, Lessee shall comply with all of the following conditions and provisions unless City's written waiver is first obtained:

1. All new buildings or structures shall first comply
with City's applicable development standards and review process, Packet Page 46
eENT TO: RenolcLtian No. 96-92
PAGE~OF~ PASES
including review and approval of required Conditional Use Permits by the Planning Commission and/or City Council as appropriate, and review and approval of new construction and signage by the appropriate governmental body.

2. Lessee shall notify City in writing of Lessee's
intention to commence any work of improvements at least five (5) days prior to commencement of such work. The notice shall specify the approximate location and nature of the intended improvements.

City shall have the right to post and maintain on the premises any notices of non-responsibility provided for under applicable law, and to inspect the premises in relation to compliance with this Lease, other permits or the construction at all reasonable times.

3. Lessee shall secure and deliver to City, care of
the Department of Public Works, adequate evidence of compliance with all applicable building codes, ordinances, regulations, and requirements for all permits and approvals, including, but not restricted to grading permits, building permits, zoning and planning requirements, and approvals from various governmental agencies and bodies regulating water, sewer, and any other utility or improvement on the site.

4. Lessee shall require adequate bonds or other
adequate security in customary and reasonable form and amounts, securing completion of any new structures to be constructed upon the site, and shall furnish City, care of the Department of Public Works, with copies of said payment and performance bonds prior to undertaking any such construction on the premises.

5. Once any approved work of improvement is begun,
Lessee shall diligently prosecute completion of said work or construction. All work shall be performed in a good and workmanlike manner, and shall substantially comply with plans and specifications approved by City and as required by this Lease.

C. 'AS IS" CONDITION. Other than as expressly set forth in this Lease, City makes no covenants or warranties respecting the condition of the Premises that might affect Lessee's ability to construct and/or operate Lessee's Facilities upon the Premises.

Subject only to the express warranties set forth in this Lease, Lessee agrees to accept the Premises in 'as is" condition.

D. RIGHT TO GRANT EASEMENTS. City grants to Lessee the
right to grant public utilities, for the purpose of serving the Premises only, rights of way or easements on or over the Premises for conduits for telephone, electricity, water, sanitary sewers, and for other utilities and municipal or special district services as may be required, and in such location and sizes as the City may approve in its sole, reasonable discretion.

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ewr R~oLdon No. 96-92
PA~E~ OF^ PAGES

11. TERM OF AGREEMENT.

A. COMMENCEMENT AND TERMINATION. The term of this Lease shall be five (5) years ("Term") commencing with the issuance of a local building permit allowing Lessee to construct its mobile/wireless communications facilities on the Premises, or ~uly 1, 1997, whichever is earlier (hereinafter referred to as "Commencement Date"). Lessee shall have the right to extend the Term of this Lease for five (5) additional terms (hereinafter referred to as "Renewal Term") of five (5) years each. Each Renewal Term shall be on the same terms and conditions as set forth herein. This Lease shall automatically be extended for each successive five (5) year Renewal Term unless Lessee notifies City in writing of Lessee's intention not to extend this Lease at least thirty (30) days prior to the expiration of the first five year Term or any Renewal Term.

This Lease may be terminated without further liability upon thirty (30) days prior written notice as follows: (a) by either party upon a default of any covenant, condition, or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default (except for a default in the payment of Rent hereunder for which Lessee shall have only thirty (30) days to cure such default after receipt of written notice); (b) by Lessee for any reason or for no reason, provided Lessee delivers written notice of termination to City prior to the Commencement Date; (c) by Lessee if it does not obtain or maintain, licenses, permits or other approvals necessary to the construction or operation of Lessee's Facilities; or (d) by Lessee if Lessee is unable to occupy or utilize the Premises due to ruling or directive of the FCC or other governmental or regulatory agency, including, but not limited to, a take back of channels or change in frequencies; or (e) by Lessee if Lessee determines that the Premises are not appropriate for its operations for economic, environmental or technological reasons, including without limitation, signal strength or interference. Except for a termination for environmental reasons resulting from the discovery of Hazardous Materials in or around the Premises after the Commencement Date, in the event Lessee elects to terminate the Lease in accordance with subparagraph I1 A(e), Lessee shall pay to City as a lease termination fee, a sum equal to four (4) months' rent.

B. SURRENDER OF PREMISES. Lessee shall remove all Lessee Facilities (including any foundations poured below ground) at its sole expense upon cancellation, expiration or early termination of the Term or Renewal Term. Lessee shall repair any damage to the Premises caused by such removal and shall return the Premises to the condition which existed on the Commencement Date, reasonable wear and tear and damages beyond the control and without the fault or neglect of Lessee excepted. All such fixtures and any equipment not removed, and after compliance with any statutory notices, if any, required to be delivered by City to Lessee, shall Packet Page 48
RenobuAon No. 96-92
PAGE OF';I PAGES
conclusively be deemed to have been abandoned by Lessee and may be appropriated, sold, stored, destroyed, converted, or otherwise disposed of by City without further notice to Lessee or to any other person and without further obligation to account for them.

Lessee will pay City for all expenses incurred in connection with City's disposition of such property, including without limitation the cost of repairing any damage to the Premises caused by removal of such property. Lessee's obligation to observe and perfom the covenants of this paragraph shall survive the end of this Lease.

C. ACCESS TO IMPROVEMENTS.

1. Lessee shall have the right (but not the
obligation) at any time following the full execution of this Lease and prior to the Commencement Date, to enter the Premises for the purpose of making necessary inspections and engineering surveys (and soil tests where applicable) and other reasonably necessary tests (hereinafter singularly and collectively referred to as "Tests") to determine the suitability of the Premises for Lessee's Facilities (as defined herein) and for the purpose of preparing for the construction of Lessee's Facilities. During any Tests or pre-construction work, Lessee will have insurance as set forth in Section IV.B.4, Insurance. Lessee will notify City of any proposed Tests or pre-construction work and will coordinate the scheduling of same with City. If Lessee determines that the Premises are unsuitable for Lessee's contemplated use, the Lessee will notify the City and this Lease will terminate.

2. Lessee has the right to construct, maintain and
operate on the Premises radio communications facilities, including but not limited to, radio frequency transmitting and receiving equipment, batteries, utility lines, transmission lines, radio frequency transmitting and receiving antennas and supporting structures and improvements substantially in accordance with the facilities attached hereto as Exhibit "Ct'(hereinafter referred to as "Lessee's Facilities"). In connection therewith, Lessee has the right to do all work reasonably necessary to prepare, add, maintain and alter the Premises for Lessee's communications operations and to install utility lines and transmission lines connecting antennas to transmitters and receivers. Lessee acknowledges that the City may allow other communications facilities to be located adjacent to Lessee's Facilities subject to future express covenants that (i) all such operations shall be operated in compliance with all applicable laws, including without limitation all rules and regulations now and hereafter promulgated by the Federal Communications Commission or its successor agency, and (ii) such adjacent communications facilities shall not otherwise interfere with the use and operation of Lessee's Facilities, including without limitation, the interference of Lessee's radio transmission signals sent and received from the Premises. Lessee shall make reasonable efforts to operate its Facilities so as to permit adjacent Communications facilities; provided, however, that Lesee shall not be required to alter or Packet Page 49
modify its Lessee's Facilities approved by City hereunder to accommodate future adjacent communications facilities. Lessee shall upon request of the City make reasonable efforts to confer with such prospective operators of communications facilities concerning facility design and installation of such future systems in an effort to avoid potential interference. Lessee shall place underground all utility connections on that portion of the Premises which is on the ground. All of Lessee's construction and installation work shall be performed at Lessee's sole cost and expense and in a good and workmanlike manner. Title to Lessee's Facilities and any equipment placed on the Premises by Lessee shall be held by Lessee. All of Lessee's Facilities shall remain the property of Lessee and are not fixtures. Lessee has the right to remove all of Lessee's Facilities at its sole expense on or before the expiration or termination of this Lease.

3. City shall provide access to Lessee, Lessee's
employees, agents, contractors and subcontractors to the Premises twenty-four (24) hours a day, seven (7) days a week, at no charge to Lessee. City represents and warrants that it has full rights of ingress to and egress from the Premises, and hereby grants such rights to Lessee to the extent required to construct, maintain, install and operate Lessee's Facilities on the Premises, Lessee's exercise of such rights shall not cause undue inconvenience to City.

4. City shall maintain all access roadways from the
nearest public roadway to the Premises in a manner sufficient to allow access. City shall be responsible for maintaining and repairing such roadways, at its sole expense, except for any damage caused by Lessee or Lessee's agents or assigns. If Lessee or Lessee's agents or assigns cause any such damage, Lessee shall promptly repair same.

5. Lessee shall have the right to install utilities,
at Lessee's expense, and to improve the present utilities on or near the Premises (including, but not limited to the installation of emergency back-up power). Subject to City's approval of the location, size and character, which approval shall not be unreasonably withheld, Lessee shall have the right to place utilities on (or to bring utilities across) the Property in order to service the Premises and Lessee's Facilities. Upon Lessee's request, City shall execute recordable easement(s) evidencing this right.

6. Lessee shall fully and promptly pay for all
utilities furnished to the Premises for the use, operation and maintenance of Lessee's Facilities.

Packet Page 50
MENT TO: RenoL&on No. 096-92
PA~E~ OF& PAGES
A. BASIC RENT.

1. Upon the Commencement Date, Lessee shall pay City,
as rent, the sum of Six Hundred Dollars ($600.00) per month (the "Rent"). If the Commencement Date is other than the first day of a calendar month, Lessee may pay on the first day of the Term the prorated Rent for the remainder of the calendar month in which the Term commences, and thereafter, Lessee shall pay a full month's Rent on the first day of each calendar month, except that payment shall be prorated for the final fractional month of this Lease, or if this Lease is terminated before the expiration of any month which Rent should have been paid.

2. These amounts will be due and payable on or before
the first day of each month during the term of this Lease. The Rent will be paid in advance to the City, c/o P.O. Box 810, Seaside, CA 93955, without prior demand and without any abatement, deduction, or setoff.

B. LATE PAYMENT CHARGE/PENALTY. The Rent shall be
delinquent if not received by the close of the business day on the 10th of each calendar month. Such unpaid Rent shall be subject to a late payment charge or penalty equal to ten percent (10%) of such unpaid amounts. This late payment charge is intended to compensate City for its additional administrative costs resulting from the Lessee's failure, and has been agreed upon by City and Lessee, after negotiation, as a reasonable estimate of the additional administrative costs which will be incurred by City as a result of Lessee's failure; the actual cost in each estimate is extremely difficult, if not impossible, to determine. This late payment will constitute liquidated damages and a penalty, and will be paid to City together with such unpaid amounts. Acceptance of the payment of this late charge will not constitute a waiver by City of any default by Lessee under this Lease.

C. ADJUSTMENT OF RENT. The Rent in subparagraph A above will be adjusted according to this paragraph notwithstanding any provision in that subparagraph to the contrary:

1. Rent shall be increased on each anniversary of the
Commencement Date by an amount equal to Five Percent (5%) of the Rent for the previous year.

IV. COVENANTS AND CONDITIONS.

A. CITY COVENANTS.

1. Ouiet Possession. Lessee, paying the said Rent and
performing the covenants and agreements herein, shall and may at all times during the Term and any Renewal Term peaceably and Packet Page 51
eWT Tg, ReboluLLon No. 96-92
PAGE^ OF& PAGES
quietly have, hold and enjoy the said Premises for the Term and any Renewal Term thereof.

2. Assicmment and Subleasinq Lessee will neither
assign this Lease in whole or in part, nor sublease all or part of the Premises other than to an "affiliate" of Lessee without the prior written consent of City which consent shall not be unreasonably withheld. This section shall not be applicable to the rights of a mortgage holder or holder of other security interest created under terms of this Lease. An "affiliate" for the purposes of this subparagraph shall be deemed to mean any parent company, any subsidiary, and any successor-in-interest or other entity acquiring fifty-one percent (51%) or more of Lessee's stock or assets.

3. Riaht to Encumber. City does hereby consent and
agree that Lessee may encumber this Lease, its leasehold estate and its improvements hereon by deed of trust, mortgage, chattel mortgage or other security type instrument to assure the payment of a promissory note or notes of the Lessee. City further agrees that in the event said deed of trust or mortgage or any other security instrument should at any time be in default and be foreclosed or transferred in lieu of foreclosure, the City will accept the mortgagee or beneficiary thereof, if reputable, qualified and financially responsible, such as a State or Federal regulated financial institution, as its new tenant under this Lease with all the rights, privileges and duties granted and imposed in this Lease contract. In the event said mortgagee or beneficiary desires to assign or sublease this Lease to its nominee, if nominee is reputable, qualified and financially responsible in the opinion of the City, City hereby agrees that upon filing of an application for consent to such assignment or sublease as set forth in Paragraph 2 above, City will give its consent thereto. The right to encumber includes financing and refinancing, provided that the mount of the encumbrance does not exceed the fair market value of the assets encumbered. Lessee shall give City at least thirty (30) days notice of its intent to encumber stating the mount of encumbrance and the fair market value of the assets subject to be encumbered, and Lessee shall promptly deliver to City evidence of any mortgage, deed of trust, or other similar encumbrance upon the Premises.

4. Hazardous Waste Rewresentation. City hereby
warrants and represents to Lessee that is has no knowledge as of the effective date of this Lease of the presence in, under or near the Premises of hazardous wastes or substances, including, but not limited to: asbestos, PCBs, petroleum-based products, lead, cyanide, DDT, pesticides, acids, printing inks, ammonium compounds or underground storage tanks.

City further represents that to the best of its knowledge as of the effective date of this Lease, the Premises have not been used for the generation, storage, treatment or disposal of Packet Page 52
hazardous materials, hazardous substances or hazardous wastes. In addition, City represents that no hazardous materials, hazardous substances, hazardous wastes, pollutants, asbestos,
polychlorinated biphenyls (PCBs), petroleum or other fuels (including crude oil or any fraction or derivative thereof) or underground storage tanks are located on or near the Premises as of the effective date of the Lease. Notwithstanding any other provision of this Lease, Lessee relies upon the representations stated herein as a material inducement for entering into this Lease.

City shall indemnify, defend, protect and hold Lessee harmless from and against any and Claims made against Lessee by third parties and arising as a result of any hazardous materials which exist in, upon or near the Premises, as of the Commencement Date and any hazardous materials which are present in, upon or near the Premises after said date which are the result of the activities of City, its agents or contractors. The foregoing indemnity shall survive the expiration or earlier termination of this Lease.

In the event of breach of any representation made in the first two paragraphs of this section, or in the event any hazardous materials are discovered after the Commencement Date of the Lease in, under or near the Premises, whose presence is not the result of the activities of Lessee, its agents or contractors, Lessee, as its sole and exclusive remedy, notwithstanding any other provision of this Lease or applicable law, shall have the right to terminate this Lease without further liability upon not less than 30 days prior written notice to City. Lessee covenants not to maintain any legal proceeding against the City for breach of the hazardous materials representations contained herein, nor to pursue any claim against the City for lost profits or consequential damages arising from any breach of such representation and warranty. Furthermore, nothing in this paragraph is intended to impose upon the City any greater affirmative obligation, if any, to remediate any hazardous materials in, under, or near the Premises than may currently exist under applicable law. Notwithstanding the foregoing, nothing herein shall preclude Lessee from maintaining any action for indemnification authorized by the preceding paragraph against the City for any third party Claim arising from or related to any such hazardous materials.

Lessee shall not bring any hazardous materials onto the Premises except for those contamed in its back-up power batteries (lead-acid batteries) and common material used in
telecomunications operations, e.g., cleaning solvents, Lessee will treat all hazardous materials brought onto the Premises by it in accordance with all Federal, State and Local laws and regulations.

Packet Page 53
B. LESSEE COVENANTS.

1. Com~liance with Law. Lessee agrees, at its sole
cost and expense, to comply with all the requirements now in force, or which may hereafter be in force, of all municipal, county, state and federal authorities, pertaining to Lessee's use of the said Premises, or the operations conducted thereon, and to faithfully observe and secure compliance with Lessee's use of the Premises in accordance with all applicable county and municipal ordinances and state and federal statutes now in force or which may hereafter be in force.

2. Taxes. Lessee agrees to pay before delinquency all
taxes, assessments, and fees assessed or levied upon Lessee or the Premises, whatsoever, including the land and any buildings, structures, machines, appliances or other property or improvements of any nature whatsoever, erected, installed or maintained by Lessee or by reason of the business or other activities of Lessee upon or in connection with the Premises. Lessee recognizes and understands that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject to further payment of property or possessory interest taxes levied on such interest. Lessee further agrees that all such tax payments shall not reduce any rent due to the City hereunder and that any such taxes shall be paid by the Lessee before becoming delinquent. a. Lessee shall indemnify, defend, and hold City,
its employees, successors and assigns harmless from and against any and all loss, cost, claim, liability, action, damage, injury to or death of any person (including reasonable attorney's fees) (hereinafter referred to as "Claims") occurring on the Premises except for Claims arising out of (1) active negligence or willful misconduct of City, its agents or contractors, (2) violation of, law by City, its agents or contractors, (3) breach of any duty or obligation by City under this Lease, or (4) any condition relating to the Premises which Lessee has no obligation to repair or maintain. b. Lessee shall also indemnify and hold the City
harmless from and against any Claim outside of the Premises, provided (i) such Claim is caused by any activity or exercise of any right by Lessee, its agents or contractors under the Lease; and provided further, (ii) that such Claim is not contained within any one or more of the indemnity exceptions for Claims set forth in subsections (I), (2), (3) or (4) in Paragraph 3 (a) above, which exceptions are incorporated herein by reference.
c. City shall indemnify, defend, and hold Lessee,
its employees, successors and assigns harmless from and against any and all loss, cost, claim, liability, action, damage, injury Packet Page 54
eENT TO: Re~oLdon No. 96-92
PAGE& 0~31 PAGES
to or death of any person (including reasonable attorney's fees) (hereinafter referred to as "Claims") occurring on the Premises, arising out of (a) active negligence or willful misconduct of City, its agents or contractors, (b) violation of law by City, its agents or contractors, (c) breach of any duty or obligation by City under this Lease, or (d) any condition relating to the premises which the City is obligated by this Lease to repair or maintain.
d. The foregoing indemnity in a., b. and c. will
survive the termination, cancellation or expiration of this Lease.

4. Insurance Coveraae. During the entire term of this
Lease, Lessee agrees to procure and maintain the following insurance with a carrier licensed to do business in California satisfactory to the City: (a) Commercial General Liability with Limits of $5,000,000.00 per occurrence, (b) Automobile Liability with a combined single Limit of $1,000,000.00 per accident, (c) Worker's Compensation as required by law, and (d) Employer's Liability with limits of $1,000,000.00 per occurrence each and all with a carrier acceptable to City. Said insurance shall name City as an additional insured.

Each party to this Lease shall maintain standard form
property insurance ("All Risk" coverage) equal to at least 90% of the replacement cost of property owned by it on the Premises.

5. Leaal Proceedinas. Lessee agrees that should it
become necessary for City to commence legal proceedings to collect rent, recover possession, or enforce any other provision of this Lease, the prevailing party will be entitled to legal costs and expenses in connection therewith, including reasonable attorney's fees as determined by the court. The parties agree that the laws of the Sate of California shall be used in interpreting this lease agreement and will determine all rights and obligations hereunder, and it is agreed that this Lease is executed in Seaside, California.

6. Maintenance and Re~airs. Lessee agrees to assume
full responsibility for the operation, maintenance, and repairs of Lessee's Facilities upon said Premises and any damage to the Premises or the Property damaged by Lessee, its agents, or contractors, throughout the Term and any Renewal Term hereof without expense to the City unless otherwise specified herein, and to perform all repairs and replacements necessary to maintain and preserve said Lessee's Facilities upon said Premises in good order, in a decent, safe, healthy and sanitary condition, in a manner satisfactory to City in compliance with all applicable regulations and laws. Lessee agrees that City shall not be required to perform any maintenance, repairs, or services, or to assume any expense not specifically assumed herein, in connection with said Premises or Lessee's Facilities located thereupon. Upon expiration of this Lease, Lessee will surrender the Premises to Packet Page 55
City in good order and condition comparable to the order and condition Lessee received the Premises as of the Commencement Date, reasonable wear and tear excepted.

7. Nondiscrimination. Lessee agrees not to
discriminate in any manner against any person or persons on account of race, marital status, sex, religious creed, color, ancestry, or national origin in Lessee's use of the premises, including, but not limited to, the providing of goods, services, facilities, privileges, advantages and accommodations, and the obtaining and holding of employment.

8. Utilitv Costs. Lessee agrees to order, obtain and
pay all utilities, including but not limited to water, gas, electricity, telephone, communications services, sanitary and drainage services, and service installation charges on any improvements made by Lessee on the Premises. Lessee shall also secure and utilize waste disposal services, if applicable, for the Premises in accordance with local and state ordinances and laws.

City warrants that said utilities are available for Lessee's use adjacent to the site as of the Commencement Date. All utilities on the site shall be underground.

9. Waste. Damacre or Destruction. Lessee agrees to
give notice to City of any fire or other damage that may occur on the Premises within ten (10) days of such fire or damage. Lessee agrees not to commit or suffer to be committed any waste or injury or any public or private nuisance, to keep the Premises clean and clear of refuse and obstructions, and to dispose of all garbage, trash and rubbish in a manner satisfactory to the City.

If the Premises are destroyed or damaged so as in Lessee's judgment, to hinder its effective use of the Premises, Lessee may elect to terminate this Lease as of the date of the damage or destruction by so notifying City no more than 30 days following the date of damage or destruction. In such event, all rights and obligations of the parties which do not survive the termination of this Lease shall cease as of the date of the damage or
destruction.

If the water tanks containing the Premises are so substantially damaged that in the judgment of the City, the water tanks must be demolished, the City may elect to terminate this Lease upon not less than 30 days prior written notice to Lessee of the intended date of demolition, or such shorter period of time as may be required in the event of a public emergency.

If the water tanks including portions thereof containing the Premises are so substantially damaged as to materially impair the City' use of the water tanks, Lessee shall be afforded the right (but not the obligation) to repair the Premises to a condition suitable for the operation of Lessee's use and operation hereunder provided that the City does not intend to demolish the water tanks Packet Page 56
A+EN1 ReboLdon No. 96-97
PAGEL OFA PA6ES
completely or undertake substantial alteration and repair to them.

In the event the City undertakes substantial alteration and repair the City shall first use best efforts to accommodate Lessee's use and operation of Lessee's Facilities in an undamaged location on the water tanks if the Premises cannot be repaired or rebuilt in a commercially reasonable time.

During any period of damage or destruction to the Premises or other substantial damage to the water tanks which interferes with the use and operation of the Lessee's Facilities hereunder, Lessee shall have the right to bring onto the City's Property at Lessee's expense in a location reasonably approved by the City a portable generator and temporary communications facilities to provide for continuous service for Lessee's customers during such period.

Notwithstanding the foregoing, neither the placement nor the use of such equipment shall interfere with the operations of the water tanks or if the City has undertaken substantial alterations or repairs, then with such repair or reconstruction.

10. Relocation. Subject to the other provisions of
this Lease, in the event City desires to redevelop, modify, remodel or in any way alter its property and any improvements thereon ("Redevelopment"), City shall in good faith use its best effort to fully accommodate Lessee's continuing use of the Premises. Should any proposed Redevelopment necessitate the relocation of the Premises or Lessee's Facilities, and/or any alterations to Lessee's Facilities, subject to Lessee's prior written consent, which consent may not be unreasonably withheld, Lessee shall relocate or make the necessary alterations, at Lessee's sole cost, expense and risk; provided however, that City has provided Lessee with no less than one year prior written notice of City's proposed Redevelopment. City shall only be entitled to relocate Lessee's Facilities as set forth above following the expiration of the first (1st) renewal term. City shall not be entitled to relocate Lessee more than one (1) time during any 10 year period during the term of this Lease.

11. Continaency. It is understood by Lessee and City
that this Lease is fully contingent upon Lessee obtaining final development approvals for construction of improvements on the leased land from the City. In the event that such governmental approvals are not obtained on or before July 1, 1997, Lessee shall have a unilateral right to terminate this agreement. If terminated, Lessee shall have no further obligation to pay rent or comply with any other provision of this Lease.

12. Interference with Communications. Lessee's
Facilities shall not disturb the communications configurations, equipment and frequency which exist on City's Property on the Commencement Date (hereinafter referred to as "Pre-existing Communications"), and Lessee's Facilities shall comply with all non-interference rules of the Federal Communications Commission (FCC). City shall not permit the use of any portion of City's Packet Page 57
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PA~E-~~OF~ PAGES
Property in a way which interferes with Lessee's Facilities described in Exhibit 'C", including without limitation, Lessee's radio signal transmitted and received to and from the Premises.

Such interference with communications operations shall be deemed a material breach, and the breaching party shall have the responsibility to promptly terminate said interference. In the event any such interference does not cease promptly within three (3) business days following receipt of written notice, the parties acknowledge that continuing interference will cause irreparable injury, and therefore, the non-breaching party shall have the right in addition to any other remedy at law or in equity, to terminate the Lease immediately upon notice to the other.

Notwithstanding the foregoing, Pre-existing Communications operating in the same manner on the Commencement Date shall not be deemed interference.

Lessee shall comply with all present and future laws, orders and regulations relating to Electromagnetic Fields (EMFs), and the American National Standards Institute (ANSI) standards. Without limiting the provision of Lessee's indemnity contained herein, Lessee, on behalf of itself and its successors and assigns, shall indemnify the City from and against all claims of personal injuries due to EMFs to the extent such personal injuries are caused or alleged to be caused by Lessee's Facilities on the Premises.

RESTRICTIVE CONDITIONS.

1. Administration and Notices. City's agent for
control and administration of this Lease shall be the City Manager of the City of Seaside, and any communication relative to the terms or conditions or any changes thereto or any notice or notices provided for by this Lease or by law to be glven or served upon City may be given or served by registered letter deposited in the United States mails, postage prepaid, and addressed as indicated below. Any notice or notices provided for by this Lease or by law to be given or served upon Lessee, mortgagee, trustee or beneficiary may be given or served by depositing in the United States mails, postage prepaid, a letter addressed to said Lessee at the leased premises or at such other address designated in writing by Lessee, mortgagee, trustee or beneficiary, or may be personally served upon them or any person hereafter authorized by them to receive such notice. Any notice or notices given or served as provided herein shall be effectual and building for all purposes upon the principles of the parties so served upon personal service or forty-eight (48) hours after mailing in the manner required herein.

City: City Manager
City of Seaside
P.O. Box 810
Seaside, California 93955
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TO: Renoldon No. 96-92
PA~ELOPAGES
Lessee: Property Manager
Pacific Bell Mobile Services
4420 Rosewood Drive, Building 2, 4th Floor
Pleasanton, California 94588
City or Lessee may, from time to time, designate any other address for this purpose by written notice to the other party.

I

2. Citv Apwroval and Consent. The approval or consent
of the City, wherever required in this agreement, shall mean the approval of the City Manager or City Council of the City of Seaside.

3. Eminent Domain. In the event the Premises or any
part thereof shall be taken for public purposes by condemnation as a result of any action or proceeding in eminent domain, then the interests of City and Lessee, or beneficiary or mortgagee, if there is a Trust Deed or Mortgage then in effect, in the award and the effect of taking upon this lease agreement shall be as follows :
a. In the event of such taking of only a part of
the Premises, leaving the remainder of said Premises in such location and in such form, shape and size as to be effectively and practicably usable in the reasonable opinion of City for the conduct thereon of the operations permitted hereunder, this Lease shall terminate and end as to the portion of the Premises taken only as the date title to such portions vest in the condemning authority, but shall continue in full force and effect as to the remaining portion of the Premises not taken. From and after such date, the rent required by this Lease to be paid by Lessee to City shall be reduced in the proportion to which the value of the premises so taken bears to the total value of the demised Premises; provided, however, City shall have the right, with the consent of the Lessee, which shall not be unreasonably withheld, to substitute like adjacent property and maintain the rent schedule without diminution.
b. In the event of the taking of only part of the
Premises, leaving the remainder of said Premises in such location. or in such form, shape or reduced size as to render the same not effectively and practicably usable in the reasonable opinion of City for the conduct thereon of the operations permitted hereunder, this Lease and all right, title and interest thereunder shall cease on the date title to said Premises or the portion thereof so taken vests in the condemning authority.
c. In the event the entire Premises are so taken,
this Lease and all the right, title and interest thereunder shall cease on the date title to said Premises so taken vests in the condemning authority.

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PAGE& OFL PAGES
d. In the event of a taking under subparagraphs
a, b, or c, the City shall first receive the fair market value of the land as determined in the eminent domain proceeding as of the effective date of the taking and the Lessee shall receive the remainder.
e. Notwithstanding the foregoing provisions of
this section, City may, in its discretion and without affecting the validity and existence of this Lease, transfer the City's interests in said Premises in lieu of condemnation to any authority entitled to exercise the power of eminent domain. In the event of such transfer by City, Lessee shall retain whatever rights it may have to recover from the said authority the fair market value of Lessee's interest in the improvements taken by the authority and which Lessee has placed upon the leased premises in accordance with the provisions of this Lease.

4. Entrv and Ins~ection. City reserves and shall
always have the right to enter said Premises for the purpose of viewing and ascertaining the condition of the same, or to protect its interests in the Premises, or to inspect the operations conducted thereon. In the event that such entry or inspection by City discloses that said Premises are not in a decent, safe, healthy and sanitary condition as a result of Lessee's use or operation of the said Premises, City shall have the right, after thirty (30) days written notice to Lessee, to have any necessary maintenance work done for and at the expense of Lessee (to the extent Lessee is obligated to repair and maintain the Premises in accordance with Article 4B.6 of the Lease), and Lessee hereby agrees to pay promptly any and all costs incurred by City in having such necessary maintenance work done in order to keep said Premises in a decent, safe, healthy and sanitary condition.

Failure to reimburse City for the costs incurred by City within thirty (30) days of completion of said maintenance work shall constitute a default of this Lease.

5. Holdina Over. This Lease shall terminate without
further notice at expiration of the term. Any holding over by Lessee after expiration shall be under the same terms of this Lease, as may be amended, and shall not constitute a renewal or extension or give Lessee any rights in or to the Premises except as otherwise expressly provided in this Lease.

6. Meraer. The voluntary or other surrender of this
Lease by Lessee, or a mutual cancellation thereof, shall not work a merger and shall, at the option of City, terminate all or any existing subleases or subtenancies or may, at the option of City, operate as an assignment to it of any or all such subleases or subtenancies.

7. Default bv Lessee. Each of the following events
shall be a default by Lessee and a breach of this Lease:

Packet Page 60
a. Abandonment or surrender of the Premises or of
the leasehold estate, or failure or refusal to pay when due any installment of rent or any other sum required by this Lease to be paid by Lessee, or to perform as required or conditioned by any other covenant or condition of this Lease.
b. The appointment of a receiver to take
possession of the Premises or improvements or of Lessee's interest in the leasehold estate or of Lessee's operations on the Premises for any reason except receivership (i) pursuant to any mortgage permitted by provisions of this Lease relating to purchase or construction of improvements, or (ii) instituted by City, in which case, the event of default, shall not be the appointment of a receiver at City's instance, but the event justifying the receivership, if any.
c. An assignment by Lessee for the benefit of
creditors or the filing of a voluntary or involuntary petition by or against Lessee under any law for the purpose of adjudicating Lessee a bankrupt; or for extending time for payment, adjustment, or satisfaction of Lessee's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding is involuntary, and all consequent orders, adjudications, custodies, and supervision are dismissed, vacated, or otherwise permanently stayed or terminated within ninety (90) days after the assignment, filing, or other initial event.
d. Default or delinquency in the payment of any
loan secured by a mortgage or deed of trust or other security instrument against the leasehold.

8. Riaht to Cure. Notwithstanding any contrary
provision in this Lease, as a precondition to pursuing any remedy for an alleged default by Lessee, City shall first given notice of default to Lessee and to all qualifying subtenants and mortgagees whose names and addresses were previously given in writing to City by Lessee. Each notice of default shall specify in detail the alleged event of default and the necessary remedy. Rights to cure any default shall be as follows:
a. Each mortgagee shall have forty-five (45) days
after service of a notice of default within which to cure the default if it can be cured by the payment or expenditure of money, or to pursue valid assignment of leasehold interests as set forth in this Lease.
b. If the alleged default is nonpayment of rent,
taxes, or other sums to be paid by Lessee as provided in this Lease, Lessee shall have thirty (30) days after notice is given to cure the default. For the cure of any other default, Lessee shall promptly and diligently after the notice commence curing the Packet Page 61
default and shall have sixty (60) days after notice is given to complete the cure.
c. Any approved subtenant shall have the right,
at its election, to cure a curable default under this Lease, or under any mortgage then existing under provisions of this Lease relating to purchase or construction of improvements, or both.

Any subtenant who cures all defaults that are then curable shall not be disturbed by City or any mortgagee as long as the subtenant continues to perform the sublease provisions and subsequent defaults are cured as in this provision. Subtenants shall have the same periods of time to cure defaults as does Lessee as set forth in subparagraph b. above.

9. Citv Riahts if Default. If any default by Lessee
shall continue uncured following notice of default as set forth above and after expiration of the time allowed to cure defaults as established by this Lease, City has the right to elect to terminate the Lease by giving Lessee notice of termination. On the giving of the notice, all Lessee's rights in the premises and in all improvements thereon shall terminate. Promptly after notice of termination, Lessee shall surrender and vacate the Premises in accordance with the provisions of this Lease.

Termination under this paragraph shall not relieve Lessee from the payment of any sum then due to City or from any claim for damages previously accrued or then accruing against Lessee or from the obligation to remove any and all improvements on and all encumbrances against the Property as a result of exercising of rights under this Lease, or from any outstanding obligation under the Lease. City shall also be entitled to any and all other legal remedies available as against defaulting Lessee, including damages, in accordance with the laws of this state.

10. Reservation of Citv Riahts. City hereby reserves
all rights, title and interest of any and all gas, oil, minerals and water beneath said Premises. City shall have the reasonable right to enter said Premises for the purpose of making repairs to or developing municipal services. City hereby reserves the right to grant and use such easements or establish and use such rightsof-way over, under, along and across said leased premises for utilities, thoroughfares, or access as it may deem advisable for the public good; provided, however, City shall not unreasonably interfere with Lessee's use of the Premises and will reimburse Lessee for physical damages, if any, to the permanent improvements of Lessee located on the leased Premises resulting from City's exercising the rights retained in this paragraph. Such
reimbursement may include a reduction in the annual rent proportionate to the amount of any physical damage as determined by City. City shall pay the costs of maintenance and repair of all City installations made pursuant to the rights reserved herein.

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AmAc.MENr To: RraoluLion No. 96-9;
P&EL OF~PA~ES

11. Time is of the Essence. Time is of the essence of
each and all of the terms and provisions of this Lease and this Lease shall inure to the benefit of and be binding upon the parties hereto and any successor of Lessee as fully and to the same extent as though specifically mentioned in each instance, and all covenants, stipulations and agreements in this Lease shall extend to and bind any assigns or sublessees of Lessee.

12. Waiver. The waiver by City of any breach of any
term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition, or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by City shall not be deemed to be a waiver of any preceding breach by Lessee of any tern, covenant or condition of this Lease, regardless of City's knowledge of such preceding breach at the time of acceptance of such rent. Failure on the part of the City to require or exact full and complete compliance with any of the covenants, conditions or agreements of this Lease shall not be construed as in any manner changing the terms hereof and shall not prevent City from enforcing any provision hereof.

13. Recordation. Lessee may, at its cost, record this
Lease or a memorandum of this Lease.

14. Ricrhts of Mortcracre Lender. Any person having a
first mortgage, deed of trust or other first lien on the Lease for security purposes which is permitted under this Lease, shall have the right to reasonably approve any proposed modification to this Lease provided (i) such lender has provided the City written notice of its desire to be notified of such proposed modification and furnished the City with its current address; and provided further (ii) such lender does not unreasonably withhold or delay its approval.

15. Title.
a. City warrants that it has full right, power,
and authority to execute this Lease; City further warrants that Lessee shall have quiet enjoyment of the Premises during the Term of this Lease or any Renewal Ten.
b. Lessee has the right to obtain a title report or commitment for a leasehold title policy from a title insurance company of its choice. If, in the opinion of Lessee, such title report shows any defects of title or any liens or encumbrances which may adversely affect Lessee's use of the Premises, Lessee shall have the right prior to the Commencement Date, to terminate this Lease immediately upon written notice to City.

16. Estopwel Certificates. At any time and from time
to time within fourteen (14) days after notice of request by either party, the other party shall execute, acknowledge, and Packet Page 63
CWMENl Re.&Lution No. 96-92

PASEL OFAPA
deliver to the requesting party, or to such other recipient as the notice shall direct, a statement certifying that this Lease is unmodified and in full force and effect, or, if there have been modifications, that it is in full force and effect as modified in the manner specified in the statement. The statement shall also state the dates to which the rent and any other charges have been paid in advance.

17. Captions. The captions of the various articles and
paragraphs of this Lease are for convenience and ease of reference only and do not define, limit, augment, or describe the scope, content, or intent of this Lease or of any part of this Lease.

18. Entire Aareement. This Lease contains the entire
agreement between the parties. No promise, representation, warranty, or covenant not included in this Lease has been or is relied on by either party. Each party has relied on its own examination of this Lease, the counsel of its own advisors, and the warranties, representations, and covenants in the Lease itself. The failure or refusal of either party to inspect the premises, to read the Lease or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice.

19. severabilitv. The invalidity or illegality of any
provision of this Lease shall not affect the remainder of the Lease.

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,, To: ResoLlLtian No. 96-92

20. Successors. Subject to the provisions of this Lease on assignment and subletting, each and all of the covenants and conditions of this Lease shall be binding on and shall inure to the benefit of the heirs, successors, executors, administrators, assigns, sublessees, tenants, subtenants, and personal
representatives of the respective parties.

IN WITNESS WHEREOF, this lease agreement is executed by City, acting by and through the Mayor, and by Lessee, acting by and through its lawfully authorized officers.

APPROVED AS TO FORM:

COUNSEL FOR THE CITY OF SEASIDE

GOLDFARB & LIPMAN
BY % RICHARD JUDD, ESQ.

THE CITY OF SEASIDE
MAYOR
Tax ID# 94-6022439
PACIFIC BELL MOBILE SERVICES, a California Corporation
By: &- %&
E Kwtn
Print Name
Ne+wrrr~ h/~~tnd Mmaq er
Title
Tax ID# 94-3201-594
Date: [o(w/~L ,1996
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+ ro:R~oLdon No. 96-92

PAGEL OFL PAGES
EXHIBIT 'A"

LEGAL DESCRIPTION OF CITY'S PROPERTY
All of that certain land situated in the State of California. county of Monterey, City of Seaside and described as follows:

Parcel B, containing 0.237 acres as shown in Tract Number 540 Map of Del Monte Heights 'Unit F" filed for record April 19, 1967, in the Office of the County Recorder of the County of Monterey, State of California, in Volume 9 of Maps. "Cities and Towns", at page 13; and
Parcel B, together with any improvements lying therein, as said parcel is shown and designated on that certain map entitled "Tract Number 724, Mescal Heights Subdivision" being Parcel A, Unit F, Del Monte Heights filed for record December 20, 1973, in the Office of the County Recorder of the County of Monterey, State of California, in Volume 12 of Maps, "Cities and Towns", at page 42.

Assessor's parcel Numbers: 012-673-008, 012-673-002
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, EXHIBIT '8" ONE OF T@
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bMEN
TO: Reno&(L.tion No. 96-92
pm27 0~31 PAGES
EXHIBIT "C"

LESSEE'S FACILITIES

1. Ground space consisting of Eighty (80) square feet for placement of one (1) Base Transceiver Station (BTS) cabinet and supporting facilities.

2. Six (6) panel antennas, measuring 72.4" tall x 8.7" wide x 2.7" deep, to be side mounted on the existing water tanks together with six (6) Low Noise Amplifiers (LNAs), measuring 12.5" x 12.5" x 4.75" which will be mounted within 10 feet of the antennas, and supporting coaxial cables which will measure from 718" to 1 5/8 in diameter.

3. Electrical service to be provided from a new main meter and service box to be installed adjacent to the existing meter, the dimensions being 18" x 24" x 4 518".

Service from said service box to be routed under-ground to a sub-panel situated at the BTS location, the dimensions of said sub-panel being 18" x 24" x 4 518".

4. Telephone service to be provided by under-ground routing to a panel at the BTS unit, the dimensions of said panel being 24" x 26" x 26". Said routing to be trenched and patched to match the existing condition of the Premises. Telephone conduits to be installed per Phone Company specifications.

5. One (1) BTS cabinet, the dimensions being 52" wide x 63" tall x 29" deep, placed on a concrete slab 10' wide x 12' long x 6" thick.

SF-711-2I.City of Seaside.

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RECORDING REQUESTED BY. AND
WHEN RECORDED. RETURN TO:

Pacific Bell Mobile Services
4420 Rosewood Dr.. Bldg. 2.2nd Floor
Pleasanton. California 94588
Attention: Barbam Hendricks, Properly Manager
THIS MEMORANDUM OF LEASE ("Memorandum") dated as of Septernbeh 19 , 1996, is between the CITY OF SEASLDE, a municipal corporation ("Lessor"), and PACIFIC BELL MOBILE SERVICES, a California corporation ("Lessee").

RECITALS
WHEREAS, Lessor and Lessee have executed that certain Communications Site Lease Agreement ("Lease") dated as of A&~WL 19 . 1996. covering certain premises ("'Premises") situated on certain real property located in the City of Seaside. County of Monterey, State of California, and more panicularly described in Exhibit "A attached hereto and incorporated herein by this reference; and WHEREAS, Lessor and Lessee desire to record notice of the Lease in the Official Records of Monterey County, California;
NOW, THEREFORE, in consideration of the foregoing. Lessor and Lessee hereby declare as follows:
1 . U. Lessor has leased the Premises to Lessee (together with access rights), and Lessee has hired the Premises from Lessor. subject to the terms, covenants and conditions contained in the Lease.

2. The term of the Lease ("Term") is scheduled to commence on or before 91 19/96 and shall expire five (5) years thereafter, subject to Lessee's option to extend the Term pursuant to Section 11. A. of the Lease for five (5) additional terms of five (5) years each.

3. base Contru. This Memorandum is solely for the purpose of giving constructive notice of the Lease. In the event of conflict between the terms of the Lease and this Memorandum, the terms of the Lease shall control.
(Signature Page Follows)
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Redoldon No. 96-92
PA~E~ OF 31 PAGEE
IN WITNESS WHEREOF, Lessor and Lessee have executed this Memorandum of Lease as of the date and year first written above.

ATTEST WITNESS
Date:

Date:

ATTEST WITNESS
Date:

LESSOR

CITY OF SEASIDE,
Title: kw
Date: ~uT$; 1 $%
By:

Title:

Date:

LESSEE

PACIFIC BELL MOBILE SERVICES,
a California corporation
By:

Name: F. Kevin Flahetty
Title: Network Deployment Manager
Date:
>TATE OF CALJR3RNIA )
COUNTY OF Montae~~ )
On 1013196 before me. Jovct E. Nemome , penonally appeased DOH un . personally known to me (or proved to me on the basis of satisfactory evidence) to be the penon(s) whose name@) islare subscribed to the within instrument and acknowledged to me that hdshe/they executed the same in hiherltheir authorized capacity(ies), and that by hislherftheir signature(s) on the instrument the person(s), or the entity upon behalf of which the penon(s) acted. executed the insvument WITNESS my hand and offitial seal.
~i~nature:&Wt'~ e ' 14 d
STATE OF CALIR)RNlA ) - ----- COUNTY OF )
On before me, . personally appeared
, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hislhedthcir authorized capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s). or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature: (Seal)
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TO: ResollLtion No. 96-92
~~6~300~31 PAGES
SrAE OF CXLImRNJA 1

COUNTY OF )
On before me. . personally appeared
, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that hekhdthey executed the same in his/hcr/their authorized capacity(ies), and that by his/hultheir signaturc(s) on the instrument the person(s), or the entity upon behalf of which the penon(s) acted. executed the instrument.

WlTNESS my hand and official seal.

Signature: (Seal)

SUBSCRIBING-WITNESS ACKNOWLEDGMENT (WITNESS JURAT)
flAE OF CALW3RM.4
SS.

COW OF
On before me. , the undersigned Notary, personally
appeared , personally known to me to be the person whose name is subscribed to the within instrument as a witness thereto. who, being by me duly sworn. depoxs and says that he (she) was present and saw - , the same person described in and whose name is subscribed to the within and annexed instrument as a party thereto. execute the same. and that said affiant subscribed his (her) name to the within instrument as a witness at the request of

SUBSCRIBING-WITNESS ACKNOWLEDGMENT (WITNESS JURAT)
STAlB OF CALIFORNIA
SS.

COUNTY OF
On before me. , the undersigned Notary, personally
appeared , personally known to me to be the person whose name is subscribed to the within instrument as a witness thereto, who, being by me duly sworn, deposes and says that he (she) was present and saw - , the same person described in and whose name is subscribed to the within and annexed instrument as a party thereto, execute the same. and that said affiant subscribed his (her) name to the within instrument as a witness at the qest of

SUBSCRIBING-WITNESS ACKNOWLEDGMENT (WITNESS JURAT)

STATE OF GUIFORMA
SS.

COUNTY OF
On before me. , the undersigned Notary, personally
appeared . personally known to me to be the person whose name is subscribed to the within instrument as a witness thereto, who, being by me duly sworn. deposes and says that he (she) was present and saw - the same person described in and whose name is subscribed to the within and annexed instrument as a party thereto, execute the same, and that said affiant subscribed his (her) name to the within instrument as a witness at the request of
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EXHIBIT A
Lessor's property of which Premises are a part is legally described as follows:

All of that real property sihlate in the City of Seaside, County of Monterey, State of California, described as follows:

Parcel B, containing 0.237 acres as shown in Tract Number 540 Map of Del Monte Heights 'Vnit F', filed for record April 19, 1967, in the office of the County Recorder of the County of Monterey, State of California, in Volume 9 of Maps, "Cities and Towns", at page 13.

Parcel B, together with any improvements lying therein, as said parcel is shown and designated on that certain map entitled 'Tract No. 724, Mescal Heights Subdivision", being Parcel A, Unit F, Del Monte Heights, filed for record December 20,1973, in the Office of the County Recorder of Monterey, State of California, in Volume 12 of Maps, "Cities and Towns", at page 42.

Assessor's Parcel Number: 012-673-008, 012-673-002
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T-Mobile Site No: SF05711A
Market: San Francisco
1 FIRST AMENDMENT TO COMMUNICATION SITE LEASE AGREEMENT

THIS FIRST AMENDMENT TO COMMUNICATION SITE LEASE AGREEMENT (“Amendment”) is made and entered into as of the date of execution by the last party to sign (the “Effective Date”), by and between City of Seaside, a California municipal corporation ("City"), and T-Mobile West LLC, a Delaware limited liability company, formerly known as T-Mobile West Corporation, successor-in-interest to TMO CA/ NV LLC, formerly known as Pacific Bell Wireless, LLC, successor-in-interest to Pacific Bell Mobile Services, a California corporation ("Lessee") (Collectively the “Parties”). The Parties hereto recite, declare, and agree as follows:

Recitals
A. City and Lessee entered a COMMUNICATION SITE LEASE AGREEMENT dated September 19, 1996 (the “Lease”) for the leased premises (as more fully described in the Lease, the “Premises”) located at Skyview Drive, 1444 Skyview Drive, Seaside, CA 93955 (the “Property”).

B. Parties desire to enter this Amendment to modify and amend certain provisions of the Lease.

THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Parties agree as follows:

1. Renewal Term: Current Term expires at midnight on September 19, 2026. On September 20, 2026, Lessee shall have the right to extend this Lease for additional five (5) successive five (5) year terms, each included as Renewal Term on the same terms and conditions as set forth in the Lease, except as amended. The Lease shall automatically renew for each successive Renewal Term unless Lessee notifies City, in writing, of Lessee’s intention not to renew the Lease at least thirty (30) days prior to the expiration of the immediately preceding current Term or Renewal Term. If Lessee remain in possession of the Premises at the expiration of this Lease without a written agreement, such tenancy shall be deemed a month-to-month tenancy under the same terms and conditions of the Lease, as amended.

2. Rent and Escalation. The Parties hereby acknowledge and agree that the Rent payable from Lessee to City under the Lease is currently Two Thousand Four Hundred Sixty-Nine Dollars and sixty-eight cents ($2,469.68) per month (the “Rent”). Commencing on September 20, 2026 (09/20/2026), the Rent shall hereby increase to Two Thousand Seven Hundred Fifty Dollars ($2,750.00) per month. As of the Effective Date, the Rent increase set forth in Section C(1) of the Lease shall terminate and the Rent will increase by 5% of the Rent in effect for the previous year on September 20, 2027 and on every anniversary thereafter.

3. Payment Due. The Parties hereby agree that, as of the Effective Date, there are no payment obligations of Lessee under the Lease, including but not limited to the payment of Rent, or other costs or fees, that are overdue; and that any future charges payable under the Lease by Lessee shall be billed by City to Lessee within twelve (12) months from the date the charges were incurred or due; otherwise the charges shall be deemed timebarred, waived and released by City. Additionally, if it is determined by Lessee that Lessee overpaid City for any charges due under the Lease, Lessee is permitted, upon written notice to City, to deduct any such overpayment from Rent amounts due under this Lease.

4. Terms; Conflicts. The terms and conditions of the Lease are incorporated herein by this reference, and capitalized terms used in this Amendment shall have the same meaning as such terms are given in the Lease.

Except as specifically set forth herein, this Amendment shall in no way modify, alter, or amend the remaining terms of the Lease, all of which are ratified by the Parties and shall remain in full force and effect. To the extent there is any conflict between the terms and conditions of the Lease and this Amendment, the terms and conditions of this Amendment will govern and control.

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T-Mobile Site No: SF05711A
Market: San Francisco
2 5. Approvals. City represents and warrants to Lessee that the consent or approval of no third party, including, without limitation, a lender, is required with respect to the execution of this Amendment, or if any such third-party consent or approval is required, City has obtained all such consents or approvals.

6. Authorization. The people who have executed this Amendment represent and warrant that they are duly authorized to execute this Amendment in their individual or representative capacity as indicated.

7. Signatures. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute a single instrument. Signed electronic copies of this Amendment shall legally bind the parties to the same extent as original documents.

8. This Amendment will be binding on and inure to the benefit of the Parties, their heirs, executors, administrators, successors-in-interest, and assigns.

IN WITNESS WHEREOF, the Parties have executed this Amendment effective as of the Effective Date.

City:

The City of Seaside,
a California municipal corporation
Lessee:

T-Mobile West LLC,
a Delaware limited liability company
By: By:

Name: Name:

Title: Title:

Date: Date:

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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.A.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Andrew Myrick, Housing & Planning Manager
DATE: June 18, 2026
SUBJECT: AN ORDINANCE TO AMEND SECTION 17.52.230 OF THE

SEASIDE MUNICIPAL CODE TO CREATE CONSISTENCY

BETWEEN THE MUNICIPAL CODE AND CALIFORNIA LAW

REGARDING ACCESSORY DWELLING UNITS AND JUNIOR
ACCESSORY DWELLING UNITS. THIS ACTION IS NOT SUBJECT

TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
PURSUANT TO SECTION 21080.17 OF THE PUBLIC RESOURCES

CODE (SECOND READING - ROLL CALL VOTE)

RECOMMENDATION
Conduct second reading, open public hearing and adopt the ordinance.

BACKGROUND
Over the past several years, the State of California has passed a series of laws pertaining to the construction of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). These laws provide the rules and regulations under which ADUs and JADUs are processed and constructed. These laws are generally updated on an annual basis, taking effect in January of each year.

When reviewing applications for ADUs, staff takes the most recent California rules into consideration. However, staff does periodically update the Zoning Ordinance to maintain consistency with California rules. The rules were last updated in March 2023 to incorporate changes made to California law through 2022 into the Zoning Ordinance.

The proposed Ordinance would incorporate additional changes made in 2023 through 2025. These include the following significant changes:

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Item No. 8.A. Page 2 of 3
• Define that the size of ADUs and JADUs will be based upon the interior living space (ie excluding the exterior walls).
• Clarify that an ADU may not be denied based on an existing nonconforming zoning condition.
• Allow for different types of exempt ADUs to be constructed on the same parcel. • Allow for a maximum of eight detached ADUs at the site of an existing multifamily dwelling. • Provide that uncovered parking stalls that are removed to accommodate an ADU do not need to be replaced.
• Provide language relating to Deed Restrictions for JADUs • Provide updated material regarding timelines for the processing of applications for ADUs and JADUs.
• Establish a new appeal process for determinations of application incompleteness or application denial through the Planning Commission.

Additional material includes minor updates to requirements, language, and references (to adjust for a renumbering of ADU regulations within the California Government Code).

Staff is already processing applications with these provisions in place. However, the adoption of this Ordinance would bring the Municipal Code into compliance with California Law.

Planning Commission reviewed the proposed Ordinance on May 13, 2026 and unanimously (6-0) recommended that the City Council adopt the attached Ordinance.

Following adoption of the Ordinance, staff will provide a copy of the Ordinance to the California Department of Housing and Community Development (HCD) as required by law.

FISCAL IMPACT
There is no fiscal impact associated with this Item.

STRATEGIC PRIORITY
Diverse and Inclusive Community

ATTACHMENTS

1. ADU Ordinance
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Item No. 8.A. Page 3 of 3
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
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ORDINANCE NO. XXXX
AN ORDINANCE TO AMEND SECTION 17.52.230 OF THE SEASIDE MUNICIPAL

CODE TO CREATE CONSISTENCY BETWEEN THE MUNICIPAL CODE AND

CALIFORNIA LAW REGARDING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS.

WHEREAS, on March 2, 2023, the City Council passed and adopted Ordinance No. 2023 to set forth requirements for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) within the City of Seaside; and WHEREAS, the State of California has continued to pass legislation imposing requirements on local governments regarding the processing and evaluation of applications for ADUs and JADUs; and
WHEREAS, due to these changes in State law regarding ADUs and JADUs, Section 17.52.230 of the Seaside Municipal Code (SMC) relating to ADUs and JADUs must be updated; and
WHEREAS, the proposed Zoning Ordinance Amendment is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 21080.17 of the Public Resources Code; and
WHEREAS, on May 13, 2026, the Planning Commission held a duly noticed public hearing and adopted Resolution 26-09 recommending that the City Council adopt ZOA 2026-001 as presented by staff.

NOW, THEREFORE, The City Council of the City of Seaside does hereby ordain as follows:

SECTION 1. The City Council hereby finds and determines the foregoing recitals, which are incorporated herein by reference, are true and correct.

SECTION 2. Section 17.52.230 of the Seaside Municipal Code is hereby amended with underlines showing the additions to the language and strikeout deletions of language as provided in Exhibit A.

SECTION 3. The City Council hereby finds that this Ordinance implements Articles 2 and 3 of Chapter 13 of Division 1 of Title 7 of the California Government Code and is therefore not subject to the California Environmental Quality Act (CEQA) pursuant to Section 21080.17 of the Public Resources Code.

SECTION 4. If any provision, section, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any Packet Page 79
part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 5. This Ordinance shall become effective thirty days following adoption of its second reading.

INTRODUCED at a regular meeting of the City Council of the City of Seaside, State of California, held on the 4th day of June 2026
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside, State of California, held on the 18th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
__________________________
Ian N. Oglesby, Mayor
ATTEST:
__________________________
Dominique L. Davis, City Clerk

Attach:

Exhibit “A” – Zoning Ordinance Amendment Text

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Exhibit “A”
Zoning Ordinance Amendment Text

17.52.230 Accessory Dwelling Units
Sections:

A. Purpose and intent.

B. Definitions.

C. Locations permitted.

D. Effect of nonconforming.

E. Legal use requirements.

F. Exempt Projects
G. ADU and JADU design standards.

H. Off-street parking requirements.

I. JADU development requirements
I.J. Processing.

J.K.Contents of applications.

A. Purpose and intent. The purpose of this Chapter is to allow and regulate Aaccessory Ddwelling uUnits (ADUs) and Jjunior aAccessory dDwelling uUnits (JADUs) in compliance with Chapter 13 of Division 1 of Title 7 of the California Government Code sections 65852.2 and 65852.22, as may be amended. These regulations shall be in addition to any requirements imposed by any other applicable law, including, but not limited to, the Seaside Building Code and Seaside Fire Code.

B. Definitions. As used in this section, terms are defined as follows:
“Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit located on a parcel with a proposed or existing primary residence that provides a complete independent living facility containing separate kitchen, bath, sleeping, or and living facilities.

The term “attached accessory dwelling unit” means an accessory dwelling unit that is structurally attached to the main residence but which has independent, direct access from the exterior. The term “detached accessory dwelling unit” means an accessory dwelling unit that Packet Page 81
is not structurally attached to the main residence. An accessory dwelling unit also includes the following:

1. An efficiency unit, as defined by Section 17858.1 of the California Health and Safety Code, as may be amended; and

2. A manufactured home, as defined by Section 18007 of the California Health and Safety Code, as may be amended.
"Accessory structure" means a building or structure that is incidental to that of the main buildinga dwelling on the same parcel.
"Efficiency kitchen" means a kitchen that includes each of the following:

1. A cooking facility with appliances. Appliances shall mean a rangecooktop with a minimum of two burners, or the combination of an oven and cooktop with a minimum of two burners;

2. A sink that facilitates hot and cold water;

3. A food preparation counter or counters that are adequate for the size of the unit;

4. Food storage cabinets adequate for the size of the unit. "Junior aAccessory dDwelling uUnit" or "JADU" means a residential unit that:

1. IsContains no more than 500 square feet in sizeof interior livable space;

2. Is contained entirely within an existing or proposed single-family structure;

3. Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure; and

4. Includes an efficiency kitchen, as defined in this ChapterSection. "Living area" means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any other accessory structure, other than ADUs and JADUs.

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“Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
“Multifamily ADU” means either:

1. ADUs established within the potions of multifamily structures previously used as livable space, not exceeding 25 percent of the existing multifamily structures; or

2. Detached single family ADUs on a lot that has existing multifamily dwellings being subject to height limits and 4-foot rear yard setbacks. "Nonconforming zoning condition" means a physical improvement on a property that does not conform to current zoning standards.
"Proposed dwelling" means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
"Public transit" means a location, including, but not limited to, any fixed-route bus stop or other transit stop with transportation that runs on fixed routes, and is available to the public. "Tandem parking" means that two or more automobiles are parked on a driveway or in any other location on a parcel, lined up behind one another.
“Tract housing” is a type of housing development in which multiple similar houses are built on a tract (area) that is subdivided into smaller lots.
“Utility ADU” means an ADU no larger than 800 square feet of interior livable space and meeting four-foot required side and rear yard setbacks.

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C. Locations Permitted. Accessory dwelling units are permitted on parcels of any size in conjunction with a proposed or existing residential use in any zone that allows residential uses.

Unless specifically stated otherwise, nothing in this Section shall be interpreted to render any requirements applicable to the primary dwelling unit(s) on the site inapplicable.

D. Effect of Conforming. An ADU or JADU that conforms to the requirements in this section shall not be:

1. Deemed to be inconsistent with the General Plan and zoning designation for the parcel on which the ADU or JADU is located;

2. Deemed to exceed the allowable density for the parcel on which the ADU or JADU is located;

3. Considered in the application of any ordinance, policy, or program to limit residential growth; or

4. Required to correct a legally established nonconforming zoning condition. This does not prevent the City from enforcing compliance with applicable building standards in accordance with California Health and Safety Code Section 17980.12.

E. Legal use requirements. ADUs and JADUs shall comply with the following:

1. Short-term rental prohibited. Any rental term of an ADU or JADU that was legally created on or after January 1, 2017 shall be longer than 30 days.

2. Sale of units. The accessory dwelling unit may not be sold separately from the existing single-family home or multifamily dwelling(s) except as provided in California Government Code Section 65852.2666341.

F. Exempt Projects. The following Exempt Projects shall not be subject to the requirements set forth in Subsections G and H, below, when said projects are located within a residential or Packet Page 84
mixed use zoning district; however, these Exempt Projects shall comply with all applicable requirements of the Seaside Building and Fire Codes, including requirements for separation between structures and fire-resistance ratings:. Each parcel may make use of any combination of the following:

1. One Accessory Dwelling Unit and one Junior Accessory Dwelling Unit per lot with a proposed or existing Single-Family Dwelling if all of the following apply:
a. The Accessory Dwelling Unit or Junior Accessory Dwelling Unit is within the proposed space of a Single-Family Dwelling or is within the existing space of a SingleFamily Dwelling or Accessory Structure. If within the space of an existing Accessory Structure, the structure may be expanded a maximum of 150 square feet beyond its existing physical dimensions solely for the purpose of accommodating ingress and egress.
b. The ADU or JADU has its own exterior access without need to travel through the existing or proposed Single-Family Dwelling.
c. The side and rear yard setbacks are sufficient for fire and safety, as determined by the City Building Official and Fire Chief. d. Any JADU complies with the requirements of Article 3 of Chapter 13 of Division 1 of Title 7 of the California Government Code 65852.22, as such may be amended from time to time.

2. One new construction Detached Accessory Dwelling Unit, which may also include a JADU within the same building, on a lot with an existing or proposed Single-Family Dwelling, if all of the following apply:
a. The structure shall beis set back a minimum of four feet from the side and rear property lines.
b. The total floor area of the structure shall does not exceed 800 square feet of interior livable space.
c. The height of the structure shall be limited to no more than the heights specified in Section 17.52.230.(G)(.2).

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3. Multiple Accessory Dwelling Units within the portions of existing buildings used for Multifamily Dwelling Units that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages. Spaces converted in this manner must meet applicable Building Code standards for dwelling units. The number of Accessory Dwelling Units created in this manner shall not exceed 25% of the originally existing Multifamily Dwelling Units, except that at least one Accessory Dwelling Unit shall be allowed.

4. Not more than two Detached Accessory Dwelling Units that are located on a lot that has existing Multifamily Dwelling Units, where the Detached Accessory Dwelling Units have a height that does not exceed the heights specified in Section 17.-52.230.G.2 (G)(2) and are set back a minimum of four feet from all side and rear yard property lines. Up to eight ADUs may be constructed, although in no case shall the number of ADUs exceed the number of existing Multifamily Dwelling Units on the lot. In the case of a proposed Multifamily Dwelling Unit project, a maximum of two ADUs are permitted.

G. ADU and JADU design standards. ADUs and JADUs shall comply with the following standards:

1. Maximum Number. OExcept as provided in 17.52.230.F, one ADU and/or one JADU shall be allowed on each lot or parcel with a residential zoning designation. Multifamily ADUs shall comply with Government Code Section 65852.2.

2. Height limit. Accessory Dwelling Units shall comply with the following:
a. An attached accessory dwelling unit shall not exceed the maximum height specified for the Zoning District in which the ADU is located or 25 feet, whichever is less. b. A newly constructed detached ADU shall be limited to one story and shall not exceed a maximum overall height of sixteen feet (16’), except that a detached ADU may be constructed to a height of 18 feet if:
1) The detached ADU is located on a lot with an existing multistory Packet Page 86
multifamily dwelling unit; or
2) The detached ADU is located within one-half mile of a major transit stop or a high-quality transit corridor, as defined in Section 21155 of the Public Resources Code, in which case an additional two feet of height is also permitted if necessary to align the roof pitch of the ADU with the roof pitch of the primary dwelling. c. An attached ADU, accessory to a duplex or multifamily, shall be limited to a conversion of existing non-livable space and must maintain the existing height of the structure being converted.

3. Setbacks. ADUs and JADUs shall comply with the setback standards of the primary dwelling(s) for the applicable zone, except that minimum side and rear setbacks of shall be at least four feet shall be required.
a. A detached ADU shall be located behind the rear building line of the primary residence, and be clearly subordinate by location and size. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.
b. Existing Garage. No setback beyond that which already exists shall be required for an existing, legal, attached or detached garage and/or other existing structure that is converted to an ADU or JADU, or that is demolished and reconstructed in the same location as an ADU.

4. Maximum unit size.
a. The maximum square footage of an ADU shall not exceed 850 square feet for a studio or one-bedroom unit, and 1000 square feet for units with two or more bedrooms. In no case shall a detached ADU exceed fifty percent of the floor area of the living area of the primary dwelling. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

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b. The floor area of a JADU shall not exceed a maximum of 500 square feet, and shall be contained within a proposed or existing single-family dwelling or within an convertedattached garage, carport or covered patio.
b.c.For the purposes of this Section, all references to the area of the unit shall refer to the area of the interior livable space.

The floor area for multifamily ADUs shall comply with Government Code Section 65852.2.

5. Separate entrance required. An attached ADU and/or JADU shall provide a separate exterior access from the existing primary residence. Entry doors cannot be on the same facade as the primary entry/front door of the primary residence and exterior staircases or ramps shall be placed in the area furthest from any property lines if said staircase encroaches into a side or rear yard setback. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

6. Window placement. Windows facing an adjoining residential property shall be designed to protect the privacy of neighbors; alternatively, fencing or landscaping may be required to provide screening. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

7. Addressing. ADUs or JADUs constructed or established on the same parcel or lot as an existing or proposed single-family dwelling shall be distinguished by utilizing the same address numbers as the primary dwelling followed by the letter “B”, then “C”, and so forth. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

8. Exterior. ADUs or JADUs proposed in Master Planned Communities, areas regulated by Specific Plans, and any tract housing that obtained approval by the Board of Architectural Review shall substantially conform to the originally approved design elements, such as building materials, architectural style, roof pitch, height, scale, and Packet Page 88
exterior colors and finishes. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

9. Vehicular Door. A garage converted to an accessory dwelling unit shall include removal or exterior concealment of the garage door(s), which shall be replaced or concealed with a wall meeting Building Code requirements and including architectural treatment and features, including if appropriate walls, doors, windows, trim, and accent details, consistent with the primary dwelling. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

10. Lighting Restrictions. Any lighting associated with an ADU or JADU shall be shielded or down-lit and shall not shine onto adjoining properties, while meeting the minimum building code. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this Section.

11. Landscaping. No less than 20 percent of the lot shall be landscaped. All areas of the site that are not utilized for buildings, patios, parking, pedestrian, or vehicular access shall be landscaped and provided with a permanent irrigation system. The front yard shall be landscaped, exclusive of walkways and driveways. As site conditions allow, and concurrent with each newly established ADU or JADU, a minimum of one (1) tree of not less than (5) gallon size stock, shall be planted upon the same parcel or lot as the ADU or JADU. Upon request, the Zoning Administrator shall provide property owners with a preapproved list of acceptable tree species. The removal or loss of any tree in conjunction with an ADU or JADU shall be replaced with three (3) or more trees of the same species using at least (5) gallon size stock, as determined by the Zoning Administrator, and comply with the requirements of Chapter 8.54.040. All required yards and setback areas shall be attractively landscaped primarily with drought tolerant and native plant materials.

This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this section.

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12. Private Open Space/Patios and Decks. Each ADU or JADU shall have a deck or a patio, directly adjoining individual units. The minimum private open space required for each unit shall be no less than 96 square feet with a minimum width of six feet (6’) for a deck/patio and eight feet (8’) for landscaped area. This requirement shall not prevent the establishment of a Utility ADU that would otherwise comply with all other provisions of this section.

H. Off-street parking requirements. At least one off-street paved parking space shall be provided for an accessory dwelling unitADU, and may be located within the required interior side or rear property setback areas, or as tandem parking in compliance with Chapter 17.34 (Off-Street Parking).

1. Notwithstanding the above, no additional parking shall be required if one or more of the following conditions applies to the ADU:
a. The ADU is located within one-half mile walking distance of public transit. b. The accessory dwelling unit is located within an architecturally and historically significant historic district within which the parking requirement would be inconsistent.
c. The accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure.
d. When on-street parking permits are required but have not been offered to the occupant of the accessory dwelling unit.
e. When there is a car share vehicle located within one block of the accessory dwelling unit.
f. When a permit application for an ADU is submitted at the same time as a permit application for a new single-family or multifamily dwelling or dwellings located upon the same lot and the ADU meets any of the criteria specified in this subsection.

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2. When a garage, carport, or covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU, or converted to an ADU, those off-street parking spaces are not required to be replaced.

3. A new driveway approach or curb cut for an ADU or JADU, if needed, may require a separate encroachment permit from the City’s Engineering Department.

4. Notwithstanding Section 17.34.120.(A)(.1)(.d) of the Seaside Municipal Code, when an existing, legally constructed garage or carport served by an existing driveway is converted to an ADU or JADU, it is unnecessary to remove any the existing driveway access or curb cut that formerly served said garage or carport, provided that the driveway is a minimum of 20 feet in length.

I. JADU development requirements. JADUs which shall be subject to recordation of a Deed Restriction. Deed Restrictions shall be in a form provided by the City and executed by the applicant prior to a determination of completeness by the City. Deed Restrictions shall be recorded against the property prior to issuance of a Building Permit. The Deed Restriction shall include the following provisions:

1. If the JADU shares the use of a bathroom with the primary dwelling unit, a prohibition on the sale of the JADU separate from the sale of the single-family residence, including a statement that the Deed Restriction may be enforced against future purchasers;

2. A restriction on the size and attributes of the JADU to comply with the size requirements of the Municipal Code and California Law; and

3. If the JADU has shared sanitation facilities and is not owned by another governmental agency, land trust, or housing organization, a notice that owner occupancy shall be required in either the single-family residence or the JADU.

J. Processing. An application for an ADU or JADU may be made by submitting a Building Permit application pursuant to Title 15 of the Municipal Code. The City shall review the application in accordance with the following criteria:

1. The City shall determine whether an application for an ADU or JADU is complete within 15 business days of a submittal. The City shall deem ADU applications complete that include all of the information and materials required in the application submittal checklist, comply with the provisions of the Municipal Code and California Law, and include full payment Packet Page 91
of applicable review fees. If the application is deemed incomplete, City staff shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. Applicants shall have the opportunity to cure and address the items deemed to be incomplete.

2. Once an application has been deemed complete, the City shall provide an approval or denial of ADU and/or JADU applications within (60) sixty days from the date of receipt of the complete applicationdate such application is deemed complete, unless the applicant requests a processing delay, in which case the sixty-day period is tolled for the period of the requested delay, up to a maximum of 180 days. If a permit application for an ADU or JADU is submitted along with a permit application to create a new primary dwelling on the same parcel or lot, the City may delay acting on the ADU or JADU application until the City permits the new primary dwelling.

3. A determination that an application is incomplete or denied may appealed to the Planning Commission. Such appeal shall follow the procedures set forth in Chapter 17.76 of the Municipal Code, except that the decision of the Planning Commission shall be final and not subject to appeal to the City Council. A final written determination regarding the appeal shall be provided to the applicant no later than 60 business days following the request for an appeal.

JK. Contents of Applications. An ADU and/or JADU application shall include the following:

1. Completed Residential Building Permit Application;

2. Completed Monterey Peninsula Water Management District (MPWMD) residential water release form and permit application.

3. Plan Set - Signed and Dated (If Required). A single PDF file containing all plan sheets, 24”x 36” minimum size, to include:
a. COVER SHEET: Project address; assessor parcel number; legal property owner’s name, address, phone number; plan preparer’s title and license number (If Applicable), address, phone number; scope of work identifying all work proposed, clearly showing existing and proposed work and descriptions, and demonstrating compliance with all applicable CA codes and regulations, California Building or Residential Code, Electrical, Mechanical, Plumbing, Energy, Fire, Green Building Codes and City of Seaside Municipal Code; Packet Page 92
project data, property type, type of construction, occupancy classification, square footage of existing/remodeled/new proposed structure(s) and addition(s), overall building height, fire sprinkler (Yes / No), number of stories; sheet index; deferred submittal list – trusses, sprinklers, etc. (If Applicable); special inspections noted (If Required);
b. SITE PLAN: North arrow; scale; setbacks; lot dimensions; property boundaries; street names; new and existing structures; building footprint and roofline with all projections dimensioned to property lines; gates; walls; fences; driveways; walks; easements; utilities; meter locations; Cal Green Mandatory Measures Checklist legibly reproduced on the plans; site improvements, including grading, drainage, and landscape irrigation; c. DEMOLITION PLAN (if Applicable): Showing any existing structure(s), or portion(s) of a structure to be removed with floor plan(s) and framing details; d. FLOOR PLAN (Existing/Proposed): Drawn to scale, dimensioned, rooms labeled, doors and window types, sizes, schedules; framing details; e. EXTERIOR ELEVATIONS: All sides of the exterior of the building; existing & proposed exterior wall finishes and special finishes; roof materials and roof pitches; door, window, skylight, and other openings, locations, materials, and configurations; vertical dimensions showing the height of structure(s) and heights of finished floors; locations and extent of shear walls, let-in bracing, or other methods of shear transfer;
f. FOUNDATION PLAN: Detailed and dimensioned plans showing slabs and foundations for garages, patios, breezeways, driveways, walks; footings, piers, slabs, grade beams, retaining walls (sizes and locations); hold-downs, connections of new foundations to existing foundations; any special construction required by structure, site conditions, or expansive soils; required compressive strength of concrete; crawl access openings and screened vents under raised wood floors; North arrow;
g. ROOF FRAMING PLAN: Size and spacing of beams, rafters, headers, trusses, roof openings; layout of roof sheathing; nailing; North arrow; Packet Page 93
h. STRUCTURAL CALCULATIONS: Signed and dated; CRC Braced Walls or CBC Shear Walls; schedule (If Modified); Soils Report (If Applicable), signed and dated;
i. PLUMBING, MECHANICAL, ELECTRICAL PLANS: Location of new or existing mechanical equipment serving the added or altered area; electrical plan with receptacles, lighting, and panel schedule (If Modified); gas line diagram and calculations (If Modified); Energy Certificate of Compliance Forms reproduced on plan sheets; and
j. Monterey Peninsula Unified School District (MPUSD): Release for any payment of school district fees.

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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.B.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Andrew Myrick, Housing & Planning Manager
DATE: June 18, 2026
SUBJECT: AN ORDINANCE TO AMEND CHAPTER 9.12 OF THE SEASIDE

MUNICIPAL CODE TO CLARIFY NOISE ORDINANCE
APPLICABILITY TO PERMITTED USES. THIS ACTION IS NOT

SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) PURSUANT TO SECTION 15061(B)(3) OF THE CEQA

GUIDELINES (SECOND READING - ROLL CALL VOTE)

RECOMMENDATION
Conduct second reading, open public hearing and adopt the ordinance.

BACKGROUND
The CIty of Seaside has an interest in ensuring that residents' quality of life is not unduly impacted by excessive noise, while also allowing for normal levels of noise typically found in a suburban environment. The City of Seaside's Municipal Code addresses concerns related to noise in two locations. The first of these is located within Section 17.30.060 of the Seaside Zoning Ordinance. This Section implements the Noise Element of the City of Seaside's General Plan, and includes specific, quantitative measures (in decibels) of what constitutes excessive noise within the City's various Zoning Districts.

The second of these is Chapter 9.12 within the City's Public Peace, Morals, and Welfare Title, and is more focused on qualitative characteristics related to noise impacts.

Specifically, it relates to noises that are "excessive, unnecessary or unusually loud," a term which is defined in that Chapter as referring to "a noise disturbance which, because of its volume level, duration or character annoys, disturbs, injures or endangers the comfort, repose, health, peace or safety of any individual within the limits of the city."
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Item No. 8.B. Page 2 of 3
As an example of how the City would evaluate noise complaints under the two provisions of the Municipal Code, if someone were to play a recording of "nails on a chalkboard," under Section 17.30.060 the noise would be evaluated based on features such as volume, location, and time of day, while under Chapter 9.12 the characteristics of the sound would be evaluated based on criteria identified in that Chapter (such as citizen complaints, proximity to residential sleeping facilities, the nature and zoning of the area, etc).

Section 9.12.040 of Chapter 9.12 includes exemptions which indicate that certain noises do not constitute "excessive, unnecessary or unusually loud noise." Examples of this include cries for assistance, emergency sirens, and religious worship activities. This includes an exemption for parades and other special events which have obtained permits. However, it does not include permitted uses which are producing noises normally associated with such as use.

The proposed amendment would amend Section 9.12.040 to add an additional exemption to clarify that noises normally expected to be emitted as part of a permitted use are not "excessive, unnecessary or unusually loud" noises. This does not prevent the City from enforcing violations of Section 17.30.060 if the volume of noise exceeds the amount specified therein. However, it would establish that normal operational noises are not by their nature "excessive, unnecessary or unusually loud." Staff is also examining Section 17.30.060 as part of its Zoning Ordinance Update to ensure that Section is in compliance with the General Plan. Changes to that Ordinance will be brought to the Council by staff at a later date.

FISCAL IMPACT
There is no fiscal impact associated with this Item.

STRATEGIC PRIORITY
Community Safety & Quality of Life

ATTACHMENTS

1. Title 9 Noise Ordinance 2026-06-18
Reviewed for Submission to the City Council by:

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Item No. 8.B. Page 3 of 3
____________________________________
Greg McDanel, City Manager
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ORDINANCE NO. XXXX
AN ORDINANCE TO AMEND CHAPTER 9.12 OF THE SEASIDE MUNICIPAL CODE TO CLARIFY NOISE ORDINANCE APPLICABILITY TO PERMITTED USES.

WHEREAS, the City Council passed and adopted Ordinance Nos. 820 and 837 to add and amend Chapter 9.12 of the Municipal Code relating to the regulation of “excessive, unnecessary or unusually loud noises”; and
WHEREAS, the City Council desires to clarify that noises produced during the normal operations of permitted uses; and
WHEREAS, the proposed Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines.

NOW, THEREFORE, The City Council of the City of Seaside does hereby ordain as follows:

SECTION 1. The City Council hereby finds and determines the foregoing recitals, which are incorporated herein by reference, are true and correct.

SECTION 2. The Seaside Municipal Code is hereby amended with underlines showing the additions to the language and strikeout deletions of language as provided in Exhibit A.

SECTION 3. If any provision, section, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 4. This Ordinance shall become effective thirty days following adoption of its second reading.

INTRODUCED at a regular meeting of the City Council of the City of Seaside, State of California, held on the 4th day of June 2026
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside, State of California, held on the 18th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

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ABSTAIN:

APPROVED:
__________________________
Ian N. Oglesby, Mayor
ATTEST:
__________________________
Dominique L. Davis, City Clerk

Attach:

Exhibit “A” – Zoning Ordinance Amendment Text

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Exhibit “A”
Zoning Ordinance Amendment Text
Chapter 9.12

NOISE REGULATIONS
Sections:

9.12.010 Declaration of policy.

9.12.020 Prohibited generally.

9.12.030 Specific prohibitions.

9.12.040 Exemptions.

9.12.050 Persons responsible.

9.12.010 Declaration of policy.

It is hereby declared to be the policy of the city that the peace, health, comfort, safety and welfare of its citizens require protection from excessive, unnecessary, or unusually loud noises and vibrations from any and all sources in the community.

9.12.020 Prohibited generally.

A. It shall be unlawful for any person to knowingly make, continue or cause to be made or continued any excessive, unnecessary, or unusually loud noise.

B. The term “excessive, unnecessary, or unusually loud noise” means a noise disturbance which, because of its volume level, duration, or character, annoys, disturbs, injures, or endangers the comfort, repose, health, peace, or safety of any individual within the limits of the city.

C. For any kind of noise, whether or not enumerated in SMC 9.12.030, the standards which shall be considered in determining whether a violation exists may include, but shall not be limited to, the following:

1. The volume or intensity of the noise;

2. Citizen complaints;

3. The proximity of the noise to residential sleeping facilities;

4. The nature and zoning of the area within which the noise emanates;

5. The time and/or day of the week the noise occurs;

6. The duration of the noise;

7. Whether the noise is recurrent, intermittent, or constant; and

8. Whether the noise is produced by a commercial or noncommercial activity.

9.12.030 Specific prohibitions.

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The following specific acts, subject to the exemptions provided in SMC 9.12.040, are declared to be unlawful and public nuisances:

A. Using or operating out of doors, for any purpose, any loudspeaker, loudspeaker system, amplification device (including a boom box, radio, amplifier, phonograph, stereo, compact disc, or tape player), musical instrument, or other device for the producing or reproducing of sound, between the hours of ten p.m. and seven a.m., or at any time when such loudspeaker or amplification or similar device described herein is operated in such a manner, whether indoors or outdoors, that it can be heard at a place two hundred feet distant, or such that the sound therefrom creates a noise disturbance across a residential or commercial real property line;
B. Excessive, unnecessary, or unusually loud yelling, shouting, talking, whistling, or singing out of doors between the hours of ten p.m. and seven a.m. on any day;
C. Excessive, unnecessary, or unusually loud noise emanating from vehicle radios or other sound devices, whether the vehicle is on private or public property. The operation of any such radio or sound device in such a manner as to be plainly audible at a distance of twenty-five feet from the vehicle in which it is located or to which it is connected shall be prima facie evidence of a violation of this section;
D. Excessive, unnecessary or unusually loud operation or use of any of the following before seven a.m. or after seven p.m. daily (except Saturday, Sunday, and holidays, when the prohibited time shall be before nine a.m. and after seven p.m.):

1. Hammers, hand-powered saws, or similar implements; impact wrenches; or similar equipment powered by compressed air; tools or pieces of equipment powered by an internal combustion engine such as, but not limited to, chain saws, blowers, and lawn mowers; electrically powered tools or equipment such as, but not limited to, saws, drills, lathes, or routers; heavy equipment such as, but not limited to, bulldozers, steam shovels, road graders, back hoes; ground drilling and boring equipment; hydraulic crane and boom equipment; portable power generators or pumps; pavement or pile driving equipment,

2. Any construction, demolition, excavation, erection, alteration, or repair activity, unless authorized in writing by the building official. Written authorization may be issued in the case of an emergency, or where the building official determines that the peace, comfort and tranquility of the occupants of residential property will not be impaired because of the location or nature of the construction activity.

9.12.040 Exemptions.

Excessive, unnecessary, or unusually loud noise as used in this chapter does not include noise or sound generated by the following:

A. Cries for emergency assistance and warning calls;
B. Radios, sirens, horns, and bells on police, fire, and other emergency response vehicles;
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C. Parades, fireworks displays, and other special events for which a permit has been obtained from the city are exempted provided there is compliance with all conditions which have been noted in writing on the permit. Excessive, unnecessary, or unusually loud noise produced as a result of noncompliance with any condition specified on the permit is not exempt from the requirements of this cChapter;
D. Activities on or in publicly owned property and facilities, or by public employees or their franchisees, while in the authorized discharge of their responsibilities, are exempt; provided, that such activities have been authorized by the owner of such property or facilities or its agent or by the employing authority;
E. Religious worship activities, including, but not limited to, bells, organs, singing, and preaching.

F. Activities that are permitted within the respective Zoning District, as identified by Title 17 of this Municipal Code, or which are occurring with a valid permit.

9.12.050 Persons responsible.

Any person, driver, passenger, owner, agent, manager, or supervisor in charge of operating, ordering, directing, or allowing the operation or maintenance of any device, object, or machine creating a noise as prohibited in this cChapter shall be deemed guilty of violating this cChapter.

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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.C.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Samantha Sakhrani, Human Resources Director/Risk Manager DATE: June 18, 2026
SUBJECT: PUBLIC HEARING TO RECEIVE THE ANNUAL AB 2561 REPORT

ON CURRENT JOB VACANCIES, RECRUITMENT, AND

RETENTION EFFORTS

RECOMMENDATION
Hold a public hearing, receive the annual report on the status of job vacancies, recruitment, and retention efforts pursuant to Government Code Section 3502.3, and accept and file the report.

BACKGROUND
In accordance with the recently enacted AB 2561, which amended Government Code Section 3502.3 and became effective January 1, 2025, the City of Seaside is required to assess, track, and report on job vacancies annually. The new legislation aims to address the operational and service delivery challenges posed by job vacancies by mandating that public agencies regularly evaluate and respond to their staffing needs. In compliance with Government Code Section 3502.3 and as part of the City’s ongoing commitment to effective workforce planning and service delivery, staff has prepared an analysis of allocated positions and current vacancies across all City departments for Fiscal Year 2025-2026. This report provides an overview of staffing levels, highlights departments with higher vacancy rates, and identifies potential areas for targeted recruitment and retention efforts.

DISCUSSION
The table below summarizes the number of allocated positions, current vacancies, and the percentage of vacancies relative to allocated positions for each City department:

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Item No. 8.C. Page 2 of 4
Additionally, staff reviewed vacancy levels for each bargaining unit (Seaside City Employees/LIUNA, Seaside Firefighters Association, Seaside Management Employees' Association, Seaside Police Officers' Association, and Seaside Public Safety Management Association). No bargaining unit currently meets or exceeds the 20% vacancy threshold that would trigger additional reporting requirements under Government Code Section 3502.3.

KEY OBSERVATIONS
The overall vacancy rate across all departments is 4% (7 out of 161 positions).

Although the Building Department has the highest vacancy rate at 17% (1 out of 6 positions), that vacancy rate reflects the department's small workforce of 6 allocated positions, rather than a substantial staffing shortage within the department.

Other departments with notable vacancy rates include the Police Department (10%) and the Recreation Department (8%).

Department FY 25/26
Allocated
Positions
Vacancies
As of
June 10,
2026
Vacancy
Rate by
Department
Building
Department
6 1 17%
City Manager & City
Attorney
9 0 0%
Community/Econ
Dev
8 0 0%
Engineering 9 0 0%
Finance 6 0 0%
Fire 28 0 0%
Human Resources 3 0 0%
IT 3 0 0%
Maintenance &
Utilities
29 0 0%
Police 48 5 10%
Recreation 12 1 8%
Total 161 7 4%
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Item No. 8.C. Page 3 of 4

Several departments, including City Manager & City Attorney, Engineering, Finance, Human Resources, IT, Fire, Community/Economic Development, and Maintenance & Utilities currently have no vacancies.

Consistent with Government Code Section 3502.3, staff will continue to evaluate whether any policies, procedures, or recruitment activities may create obstacles in the hiring process and will identify potential changes as appropriate.

NEXT STEPS
Staff will continue to monitor vacancy trends and coordinate with department heads to address recruitment and retention challenges, particularly in departments with higher vacancy rates. Additional strategies may include targeted outreach, review of compensation packages, and process improvements in hiring.

CONCLUSION
City staff remains committed to maintaining appropriate staffing levels to ensure the effective delivery of services to the community. Staff will provide regular updates to the City Council regarding staffing trends and recruitment efforts as needed and in accordance with applicable law.

FISCAL IMPACT
There is no direct fiscal impact associated with receiving this report. However, ongoing vacancies may impact service delivery and could result in salary savings or increased overtime costs.

STRATEGIC PRIORITY
Diverse and Inclusive Community, Effective Accessible Governance

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

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Item No. 8.C. Page 4 of 4
____________________________________
Greg McDanel, City Manager
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CITY OF SEASIDE

STAFF REPORT
Item No.: 9.A.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Dan Meewis, Assistant City Manager
DATE: June 18, 2026
SUBJECT: APPROVE THE SEASIDE STARS AD-HOC COMMITTEE

RECOMMENDATIONS FOR FOUR RECIPIENTS AND, AUTHORIZE

THE CITY MANAGER TO EXECUTE ASSOCIATED CONTRACTS

WITH FMG CUSTOM CONCRETE

RECOMMENDATION
Review and approve the Seaside Stars Ad-Hoc Committee recommendations for the 2026 recipients of the stars, and staff recommendations for installation, and authorize the City Manager to execute the contracts with FMG Custom Concrete.

BACKGROUND
The Seaside Stars policy was approved by the City Council on February 3, 2022. The “Seaside Stars” provides a unique attraction that enhances and encourages a walkable downtown. Each star (aka plaque) will honor local Seaside residents and serve as a living historical record of our achievements as a community.The ultimate goal is to honor those individuals who have made a significant and lasting contribution to the quality of life, and who have, indeed, cast a long shadow on Seaside's history.

The primary purpose of the ad hoc committee is to review and score the nominee applications and make recommendations to the City Council on which nominee should receive a star each year. The committee also reviews the Seaside Stars Policy, location map for new stars, and recommends changes as necessary.

Timeline of Committee Work:

May 13, 2026: Held introductory meeting for the fifth cycle and received a report detailing the number of nominees and reviewed if any of the current committee Packet Page 107

Item No. 9.A. Page 2 of 3
members had any conflicts of interest with the current nominees. The committee was given the application packets to review and score.

June 3rd, 2026: The committee received the scores for the ranked applications and had a discussion and received a report on the final ranking of all the nominations and approved the top 4 candidates listed to be forwarded to the Council for approval. In addition, they reviewed and approved the locations for the 5th cycle. 5th class honorees
For the fifth class of honorees, there were seventeen applications submitted, and the Ad-Hoc Committee has elected to recommend four stars for Council consideration.

Those recommendations are:

Mayor Beauford T. Anderson
Councilmen Thomas M. Mancini
Regina Mason
Catherine Crockett
Plans for phase five Unveiling:

Staff is proposing a block party with a Seaside Stars induction ceremony with an invitation to the community to mingle and walk to see our newly installed Seaside Stars.

The date of the event is to be determined as it will depend on the ability of the contractor to obtain all the supplies needed for the installation. The estimated timeline is six to eight weeks from the time the order is made with the elements for each star.

The anticipated date for the installation is Saturday, October 10, 2026. This is also dependent on the weather.

Installation
FMG Custom Concrete, who has created and installed all of the stars in the program, and has submitted an estimate for phase five.

The Adhoc Committee and staff are requesting the following recommendations from the council for approval:
4 nominee recommendations
Installation locations (attached)
Execute the contract with FMG Custom Concrete

FISCAL IMPACT
The Council approved $40,000 in fiscal year 26/27 for phase five of the program. 1 14"x14" Plaque = $6,716
4 plaques = $26,864
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Item No. 9.A. Page 3 of 3
Balance = $13,136
The balance will be used to support the associated unveiling event.

STRATEGIC PRIORITY
Vibrant Local Economy, Diverse and Inclusive Community, Community Safety & Quality of Life

ATTACHMENTS

1. 5th Class Location

2. Catherine Crockett- application

3. Beauford Anderson - Application

4. Beauford Anderson - Application 2

5. Regina Mason - Application

6. Thomas Mancini - Application

7. Seaside Stars Resolution 2026

8. FMG CONCRETE DRAFT PSA 2026
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
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Meeting Date: 06/18/26
Item #: X.X.

RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE APPROVING

THE SEASIDE STAR ADHOC COMMITTEE AND STAFF RECOMMENDATIONS

FOR IMPLEMENTATION, DESIGN, INSTALLATION AND POLICY
WHEREAS, The Seaside Stars policy was approved by the City Council on February 3, 2022. The “Seaside Stars” will provide a unique attraction that enhances and encourages a walkable downtown; and
WHEREAS, each star (aka plaque) will honor local Seaside residents and serve as a living historical record of our achievements as a community; and WHEREAS, The ultimate goal is to honor those individuals who have made a significant and lasting contribution to the quality of life – who have, indeed, cast a long shadow on Seaside's history; and
WHEREAS, The purpose of the ad hoc committee is to make recommendations on the design of the plaque and to assist staff regarding placement recommendations on Broadway for the each cycle of the program; and
WHEREAS, the ad hoc committee is recommending the following community members to receive a plaque on the Broadway Avenue for the fifth cycle:
• Mayor Beauford T. Anderson Civics & Government
• Councilmen Thomas M. Mancini Civics & Government
• Regina Mason Community and Social Equality
• Catherine Crockett Environment & Conservation

WHEREAS, the Seaside Stars unveiling will be held on a Saturday once the plaques have been fully installed which will be a wonderful opportunity to activate our downtown. Staff is proposing a block party with a Seaside Star induction ceremony with an invitation to the community to see our new star recipients; and WHEREAS, FMG Custom Concrete has installed the previous phases of the Seaside Stars project. One 14"x14" plaque is $XXXXXX five plaques will be $XXXXXXX; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Seaside do hereby direct the City of Seaside City Manager to accept and execute on behalf of the City Council, the Seaside Star ad-hoc committee and staff recommendations for implementation, and installation.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the 18th day of June 2026 by the following vote:

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-2

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

______________________________
Ian N. Oglesby, Mayor
ATTEST:
___________________________
Dominique Davis, City Clerk

APPROVED TO FORM
______________________________
Sheri L. Damon, City Attorney
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SEASIDE STARS
Rev. 2/19 Page 1 COS PSA- Short Form

CITY OF SEASIDE

PROFESSIONAL SERVICES AGREEMENT
SEASIDE STARS+ PLAQUE INSTALLATION
This agreement is made by and between the City of Seaside (City), and FMG Custom Concrete (Consultant).

A. Engagement: The City agrees to engage the Consultant to provide as described in Exhibit A, attached hereto and, hereinafter referred to as “the Project.”
B. Relationship: The Consultant is an independent contractor and is not to be considered an agent or employee of the City.

C. Compensation: The City shall pay consultant on a time and materials basis in accordance with the standard billing rates shown in Exhibit B, attached hereto, not to exceed TWENTY SIX THOUSAND EIGHT HUNDRED SIXTY FOUR DOLLARS ($26,864.00)
D. Expense Reimbursement: City will reimburse for professional services and expenses at cost upon submission of receipts. FMG can invoice for a down payment of 10% (of the project), which will to go towards the overall cost of installation services.

E. Method of Payment: The City shall pay within 30 days in accordance with Consultant’s Fee Schedule, attached hereto, upon receipt of a written invoice from Consultant detailing services rendered.

F. Term: The term of this agreement shall commence on June 18, 2026 and terminate March 31, 2027.

G. Termination: This agreement may be terminated; (a) by either party at any time for failure of the other party to comply with the terms and conditions of this Agreement; (b) by either party upon 10 days prior written notice to the other party; or (c) upon mutual written agreement of both parties. In the event of termination, the Consultant shall stop work immediately and shall be entitled to compensation for professional fees and expense reimbursement to the date of termination and for any work necessitated by that termination.

H. Indemnity: To the fullest extent permitted by law, Consultant shall indemnify and hold harmless Agency and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, Packet Page 168

costs and expenses, including legal counsel’s fees and costs, caused in whole or in part by the negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or sub-consultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of services under this agreement. Consultant’s duty to indemnify and hold harmless Agency shall not extend to the Agency’s sole or active negligence.

I. Duty to Defend: In the event the Agency, its officers, employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the services encompassed by this agreement, and upon demand by Agency, Consultant shall defend the Agency at Consultant’s cost or at Agency’s option, to reimburse Agency for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters to the extent the matters arise from, relate to or are caused by Consultant’s negligent acts, errors or omissions. Payment by Agency is not a condition precedent to enforcement of this provision. In the event of any dispute between Consultant and Agency, as to whether liability arises from the sole or active negligence of the Agency or its officers, employees, or agents, Consultant will be obligated to pay for Agency’s defense until such time as a final judgment has been entered adjudicating the Agency as solely or actively negligent. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation.

J. Insurance: Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as follows; Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.

General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in Packet Page 169

connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than 1,000,000 combined single limit for each accident.

Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

Consultant shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees and volunteers.

K. Project Management. The (Contract Manager) will represent the City for all purposes under this Agreement. Dan Meewis, Recreation Director, is designated as the Project Manager for the City. The Project Manager will be Consultant’s point of contact with respect to performance, progress and execution of the Services. The City may designate an alternate Project Manager from time to time.

L. Ownership of Work Product:
a. Upon completion of, or in the event of termination or suspension of this Agreement, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, computer discs, and reports prepared by the Contractor under this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of Contractor. With respect to computer files, Contractor shall make available to City, at City's office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. b. The City agrees to hold Consultant harmless from all damages, claims, expenses, and losses arising out of any reuse of the plans, specifications, drawings, maps, models, computer files and other documents for purposes other than those described in this Agreement, unless written authorization of Consultant is first obtained.

M. Assignment
a. The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Because of the personal nature of the services to be rendered pursuant to this Agreement, FMG Custom Concrete, American Metal works and Monterey Signs shall perform the services described in this Agreement. b. FMG Custom Concrete may use assistants under his/her supervision to perform services under this Agreement. Consultant shall provide City fourteen (14) days' notice prior to the departure of American Metal works and Monterey Signs from Consultant's employ. Should he/she leave Consultant's employ, the City shall have the option to immediately terminate Packet Page 170

this Agreement, within three (3) days of the close of said notice period.

Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Engineer and the Consultant.

N. Conflict of Interest
a. Consultant shall at all times avoid conflicts of interest, or the appearance of conflicts of interest, in the performance of this Contract. b. If City determines Consultant comes within the definition of Consultant under the Political Reform Act (Government Code §87100 et seq.) Consultant shall complete and file and shall require any other person doing work under this Agreement to complete and file a "Statement of Economic Interest" with City disclosing Consultant’s and/or such other person’s financial interests.

O. Miscellaneous:
a. The entire agreement between the parties with respect to the subject matter hereunder is contained in this agreement.
b. Neither this agreement nor any rights or obligations hereunder shall be assigned or delegated by the Consultant without the prior written consent of the City.
c. This agreement shall be modified only by written agreement duly executed by the City and the Consultant.
d. Should any of the provisions hereunder be found to be invalid, void or voidable by a court, the remaining provisions shall remain in full force and effect.
e. This agreement shall be governed by and construed in accordance with the laws of the State of California.
f. All notices required or permitted under this agreement shall be deemed to have been given if and when deposited in the United States mail, properly stamped and addressed to the party for whom intended at such party’s address listed below, or when delivered personally to such party. A party may change its address for notice hereunder by giving written notice to the other party.

Packet Page 171

Wherefore, the parties have entered into this agreement as of the later of the dates stated below.

Approved:

Dated: ____________________ CONSULTANT
___________________________________
By: Fermin Gonzales
Title: CEO FMG Custom Concrete
Address: ____________________________
____________________________________
Dated: _____________, 2022 City of Seaside:
_______________________
By: Greg McDanel
Title: City Manager
Attachments: Exhibit A Scope of Work
Exhibit B Consultant’s Estimate of Services
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Exhibit A
Scope of Work

1. Creation and installation of concrete “star” plaques on Broadway Avenue between Fremont and Del Monte.

2. Stars will be installed at the intersections of Broadway and Calaveras, Alhambra and Hillsdale.

3. Five new stars will be installed

4. FMG will work with City Staff on the exact placement locations before installation.

5. When installing the plaques
a. The contractor will match the existing saw cut lines. If the contractor cuts past the square for the walk of fame star, they will need to notify the City and patch the area as needed.
b. If the rebar is cut during the installation, the contractor will tie rebar back into the existing.
c. If the cut rebar is epoxy coated, contractor must apply epoxy to cut ends before the rebar is tied in the existing.

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Map of installation
4 th Class
Packet Page 174

Exhibit B
Consultant’s Estimate of Services
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CITY OF SEASIDE

STAFF REPORT
Item No.: 9.B.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Dan Meewis, Assistant City Manager
DATE: June 18, 2026
SUBJECT: CONSIDER APPROVAL OF NEIGHBORHOOD IMPROVEMENT

COMMISSION RECOMMENDATIONS AND CITY COUNCIL

ALLOCATIONS FOR TRANSIENT OCCUPANCY TAX-FUNDED

NEIGHBORHOOD IMPROVEMENT PROJECTS

RECOMMENDATION
Approve or modify the Neighborhood Improvement Commission’s recommended FY 2026-2027 project list; select projects for the City Council’s allocation; and direct staff to proceed with implementation.

BACKGROUND
The primary objective of the Neighborhood Improvement Commission (NIC) is "to make recommendations to the City Council on ways to improve the appearance of the city and elicit voluntary cooperation to beautify and minimize vandalism in the city." In accomplishing this objective, the NIC seeks input from Seaside residents, community volunteer groups, and collaborative efforts with other boards and commissions.

In July 2018, the City Council adopted Ordinance No. 1054 which directed 50% of all transient occupancy tax (TOT) generated by short-term rentals (STRs) to be directed toward community and park improvements, with the Neighborhood Improvement Commission providing recommendations to the Council for consideration and approval.

Since January 2026, the NIC has held multiple meetings regarding STR TOT fund allocation for Fiscal year 2026-2027 to make recommendations to the City Council. Staff has also provided additional recommendations for the Council's consideration for potential projects that were not selected by the Commission.

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Item No. 9.B. Page 2 of 3
For Fiscal Year 2026-2027, the NIC allocation is $393,000, which must be spent or encumbered by June 30, 2027. The City Council also has a separate allocation of approximately $171,541 for Council-selected neighborhood improvement projects.

FY 2026/2027 - Available funding to be spent / encumbered by June 30, 2027: $393,000
Recommendations of NIC:

Solar Powered Bench $ 8,000.00
Seaside Stars QR code Plaques/signs $ 7,500.00
Cutino Park Basketball Court (Seal & Strip) $ 20,000.00 Pet Waste Stations $ 5,000.00
South Del Monte Landscaping Medians $ 10,000.00
Seaside Gateway Sign & Fence $ 22,000.00
Trinity Park Entry Improvements $ 28,500.00
Heermann's Gull Awareness Signs $ 2,000.00
Green House of the Month Program $ 2,500.00
Boulders for FOSPA Parks $ 5,000.00
Pathway Improvements (Havana-Soliz) $ 100,000.00
Tree Give-Away $ 5,000.00
Annual allocation for Benches $ 15,000.00
Annual allocation for Utility Boxes $ 10,000.00
Design for a mural on the Caltrans right of way
— Highway 1 and Fremont BLVD
$ 20,000.00
Welcome banners $ 2,000.00
Rasied Flower Beds Havana Soliz & Capra
Parks
$ 2,500.00
Banners for dumpsters $ 1,200.00
Triangle Landscaping at San Pablo and Baker $ 30,243.73 Encanto Park Improvements $ 20,000.00
Mescal Neil Service Road Improvements $ 40,000.00
Seaside High Tennis Court Inprovements $ 40,000.00
TOTAL $396,443.73
Additional recommendations for potential projects that were not selected:

1. $10,000 Holiday Lights on Broadway

2. $15,000 Color Changing LED lights for the Seaside Library and Oldemeyer Center

3. $15,000 Shade Structure at Durant Park

4. $10,000 for the Canyon Del Rey Gateway project

5. $100,000 for the Mural on the Caltrans right of way at Highway 1 and Fremont BLVD Packet Page 177

Item No. 9.B. Page 3 of 3
In addition, the City Council will determine which projects, if any, to fund with the Council’s separate allocation of approximately $171,541. Council may choose to fund projects from the NIC recommended list, the additional potential project list, or other eligible neighborhood improvement projects identified during Council discussion. Council may also elect to return all or a portion of the allocation to the General Fund.

FISCAL IMPACT
The Fiscal Year 2026-2027 budget included $393,000.00 for the Neighborhood Improvement Commission-recommended projects and $171,541.00 for City Councilselected projects. Unspent or unencumbered funds of the Commission do not automatically roll forward to the subsequent budget year unless a project is under contract prior to June 30, 2027.

STRATEGIC PRIORITY
Diverse and Inclusive Community, Community Safety & Quality of Life

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
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CITY OF SEASIDE

STAFF REPORT
Item No.: 9.C.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Thomas Korman, Public Works Director/City Engineer
Andreas Baer, Assistant Public Works Director
Leslie Llantero, Assistant Engineer
DATE: June 18, 2026
SUBJECT: ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE

COMPLETE STREET CORRIDOR IMPROVEMENT PLANS AND

SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT
TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED
$12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR

BROADWAY SEWER UPGRADES, APPROVING A

CONSTRUCTION MANAGEMENT & INSPECTION SERVICES
AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN
AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING

AND AMENDMENT FOR DESIGN SERVICES DURING
CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC.

PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00

RECOMMENDATION
Approve Project Plans and Specifications, award a construction agreement, approve a reimbursement agreement, and construction related consultant agreements.

BACKGROUND
The Broadway Avenue Complete Streets Corridor Improvements (Project) will implement a road diet along Broadway Avenue from Fremont Boulevard to General Jim Moore Boulevard, reducing the roadway from four lanes to two lanes. The Project includes roadway reconfiguration and striping; construction of seven roundabouts, curb extensions, and median improvements; installation of Americans with Disabilities Act (ADA)–compliant curb ramps; sidewalk and concrete improvements; street lighting; Packet Page 179

Item No. 9.C. Page 2 of 5
drainage modifications; signage and pavement markings; streetscape enhancements; and sanitary sewer upgrades. Sewer upgrades were added to the Project and provide significant efficiencies by avoiding future trenching and reconstruction of newly improved pavement, reducing overall construction costs through shared mobilization, traffic control, and restoration efforts, and minimizing repeated disruption to traffic and the surrounding community.

Project design began in 2023, focusing primarily on creating safety improvements and offering improved multi-modal transportation options. The City held community outreach meetings coordinated with Martin Luther King Jr. School of the Arts, Seaside Fire, Monterey Salinas Transit, and set up multiple simulations to test designs. Models were created to demonstrate traffic flow and emergency response. The final design includes improved aesthetics, landscaping, and architectural features continuing the lower Broadway improvements.

The City secured construction funding in the amount of $9.45M from the Active Transportation Program administered by Caltrans and $4M from the Regional Surface Transportation Program administered by the Transportation Agency for Monterey County for a total amount of $13.45M in construction funding for the corridor improvements. The upgrades to the sewer project will be paid by the Seaside County Sanitation District.

The Project Plans and Specifications were completed in March and packaged with the sewer plans. The Project was advertised for public bidding on April 9, 2026. A mandatory pre-bid meeting was held on April 23, 2026, with 13 prospective bidders in attendance, and a total of 5 bids were received on May 21, 2026.

The basis of the award includes corridor improvements (Schedules A–D) and sewer improvements within substantial restoration areas (Schedules E–J and O). Additive sewer improvements are included in Schedules K-N. The Total Project cost is the combination of the basis of award and additive sewer upgrades, Schedules A-O. Table 1 below shows the bid comparison from the responsive bidders.

Table 1: Bid Comparison
Bidder
Basis of Award
Schedules AD and Sewer
Upgrades
Schedule E-J & O
Additive Sewer
Upgrades
Schedules

K, L, M, & N
Total Project
Costs
The Don Chapin Co.

Salinas, CA
$11,277,375.00* $899,000.00 $12,176,375.00
Monterey Peninsula
Engineering
$12,544,698.00 $1,040,800.00 $13,585,498.00
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Item No. 9.C. Page 3 of 5
Marina, CA
Precision Grade
Salinas, CA
$13,552,317.00 $700,225.00 $14,252,542.00
McGuire and Hester
Oakland, CA
$14,780,144.00 $1,095,965.00 $15,87,109.00
Granite Rock Co.

San Jose, CA
$18,393,442.50 $1,754,510.00 $20,148,952.00
*Corrected from original submission
The bids were reviewed by city staff and minor irregularities were identified. Public agencies may waive informalities or minor irregularities in a bid as long as they do not give a competitive advantage to a bidder over others. City staff identified a minor irregularity which reduced The Don Chapin Co. bid by $625.00. Based upon the bids received, The Don Chapin Co. (Chapin) is determined to be the lowest, responsive, responsible bidder. Chapin has completed several similar types of projects and has the reputation and work force necessary to complete this project.

On June 9, 2026, the Seaside County Sanitation District (SCSD) Board approved a reimbursement agreement to fund all sewer bid schedules for the sewer upgrades on Broadway Avenue. Consultant's will perform construction management and inspections services. The reimbursement agreement defines the roles and fiduciary responsibilities of both agencies and identifies SCSD as responsible for utility improvements in accordance with Sections 673 and 680 of the California Streets and Highways Code.

Under the agreement, SCSD will reimburse the City for all sewer-related construction costs, including a proportionate share of mobilization, traffic control, water pollution control, construction staking, and construction management and inspection services.

Reimbursement will be based on actual bid prices, including a contingency for sewer improvements, and proportional contract support costs. The estimated reimbursement from SCSD for its share of construction and related services is $2,968,000.00.

In support of the construction phase, Kimley Horn Associate will provide Design Services During Construction (DSDC) and Harris & Associates (Harris) will provide Construction Management and Inspection Services. Both consultants were selected through a Request for Qualifications/Proposal process. KHA designed the Project improvements and provided a proposal for DSDC for a total of $388,034.00 over the course of the construction and through project completion. Harris was selected to provide Construction Management and Inspection Services for the project for an amount not to exceed $1,638,529.00.

ENVIRONMENTAL REVIEW
The Project’s limits of construction are located in an urbanized area void of riparian habitat, wetlands, fisheries, or otherwise biologically sensitive habits and the Project will Packet Page 181

Item No. 9.C. Page 4 of 5
not impact or alter any historic structures or examples of the area’s history or prehistory. Improvements will be implemented within the existing public right of way with no expansion of the existing roadway and therefore categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) Existing Facilities.

FISCAL IMPACT
The construction agreement with The Don Chapin Co. is for an amount not to exceed $12,176,375.00, plus a construction contingency of ∼13% or $1,528,625.00, for a total Project construction costs of $13,705,000.00. The Broadway Avenue Complete Street Corridor Improvements Project is in the adopted FY 25/26 Capital Improvement Program as work is funded through RSTP and ATP grants with an available budget of $13,450,000.00 and $2,968,000.00 from the Sanitation District for a total Project budget is $16,418,000.00. There are sufficient funds in the Broadway Avenue Corridor Improvement project account No. 212-8950-9600 and the Broadway Avenue Sewer Upgrades project account No. 953-8820-9319 for the construction agreement, design services during construction, and construction management and inspection services as outlined above.

STRATEGIC PRIORITY
Diverse and Inclusive Community, Enhanced Physical Infrastructure & Abundant Water Supply, Community Safety & Quality of Life

ATTACHMENTS

1. Resolution

2. Chapin Construction Agreement

3. KHA DSDC DRAFT PSA Amendment 1

4. Harris CM Services PSA

5. Reimbursement Agreement with Exhibit A

6. Plans

7. Specifications

8. Addendum 1

9. Addendum 2

10. Addendum 3

11. Addendum 3 Revised Plan Sheets dated 05-07-2026

12. Addendum 4
Reviewed for Submission to the City Council by:

Packet Page 182

Item No. 9.C. Page 5 of 5
____________________________________
Greg McDanel, City Manager
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RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

APPROVING THE BROADWAY AVENUE COMPLETE STREET CORRIDOR

IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT WITH THE

SCSD FOR BROADWAY SEWER UPGRADES, APPROVING A CONSTRUCTION

MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND

APPROVING AND AMENDMENT FOR DESIGN SERVICES DURING
CONSTRUCTION TO THE KIMLEY HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00
WHEREAS, the Broadway Avenue Complete Street Corridor Improvements Project (Project) is located within the public right-of-way along Broadway Avenue from Fremont Boulevard to General Jim Moore Boulevard and along Yosemite Street from San Pablo Avenue to Wanda Avenue; and,
WHEREAS, the Project includes construction of a 1.3-mile road diet on Broadway Avenue, converting the existing four-lane roadway to two lanes with curb extensions, buffered and protected bicycle facilities, roundabouts, and Safe Routes to School improvements. Yosemite Street improvements include bicycle pavement markings, signage, curb extensions, and high-visibility crosswalks; and, WHEREAS, The Project including construction, design/engineering, and construction management services are fully funded by a combination of grants including an Active Transportation Program (ATP) award of approximately $12,000,000.00, and a Transportation Agency for Monterey County (TAMC) Regional Surface Transportation Program (RSTP) of $4,600,000.00; and,
WHEREAS, The Project was designed by Kimley Horn and Associates, Inc., and an amendment to the design agreement is needed to fund design services during construction; and,
WHEREAS, The Seaside County Sanitation District (SCSD) designed Broadway Avenue Sewer Upgrades which were bid jointly with the Project; and, WHEREAS, on June 9, 2026, SCSD approved a reimbursement agreement paying its share of probable costs up to $2,968,000.00 as outlined in Exhibit A funded from the Broadway Avenue Sewer Upgrades (Account No. 953-8820-9319); and, Meeting Date: 06/18/2026
Item X.X
Packet Page 184
WHEREAS, On January 29th, 2026 a request for proposal for Construction Management Services related to the Project was advertised, and Harris & Associates Inc. was selected as the best qualified firm; and,
WHEREAS, the Project including the sewer upgrades were advertised for public bidding on April 9, 2026 and bids were received on May 21, 2026; and, WHEREAS, on May 21, 2026, 5 bids were received and The Don Chapin Co. is the lowest, responsive, responsible bidder with a total Project bid amount of $12,176,375.00; and,
WHEREAS, The Don Chapin Co. has successfully completed projects for the City of Seaside in the past and they have the experience and work force necessary to complete this Project; and,
WHEREAS, there are sufficient funds in the Broadway Avenue Complete Street account No. 212-8950-9600 and Broadway Sewer Upgrades account No. 953-8820-9319 totaling $16,418,000.00 to support the project construction costs; and, WHEREAS, the Project’s and limits of construction are located in an urbanized area void of riparian habitat, wetlands, fisheries, or otherwise biologically sensitive habits, and the Project will not impact or alter any historic structures or examples of the area’s history or pre-history. Improvements will be implemented within the existing public right of way with no expansion of the existing roadway and therefore categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) Existing Facilities;
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside does hereby:

1. Approve the Broadway Avenue Complete Street Corridor Improvement Plans and Specifications dated April 9, 2026 and subsequent addenda; and,

2. Accepts the lowest responsive and responsible bid from the Don Chapin Company Inc. waving minor bid irregularities; and,

3. Authorizes the City Manager to execute a construction agreement with The Don Chapin Co. for an amount not to exceed $12,176,375.00 plus an additional construction contingency for written amendments, extensions, and change orders to the construction agreement outlined above such that the full value may not exceed $13,705,000.00; and,

4. Authorizes the City Manager to execute a reimbursement agreement, as approved with minor edits by the City Attorney, with the Seaside County Sanitation District to fund the Broadway Sewer Upgrades (953-8820-9319) included in the Broadway Avenue Complete Street Corridor Improvements (212-8950-9600) as outlined in Exhibit A;
Packet Page 185

5. Authorizes the City Manager to execute an amendment to the professional service agreement with Kimley Horn and Associates, Inc. for design services during construction for an amount not to exceed $388,034.00; and,

6. Authorizes the City Manager to execute a professional service agreement with Harris & Associates Inc. for Construction Management and Inspection Services for an amount not to exceed $1,638,529.00; and,

7. Finds the Project to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) Existing Facilities.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the 18th day of June, 2026, by the following vote:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS

APPROVED:
___________________________
Ian N. Oglesby, Mayor

ATTEST:
____________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
____________________________
Sheri L. Damon, City Attorney
Packet Page 186
Packet Page 187
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 2 Chapin Construction Agreement
Packet Page 188
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 3 KHA DSDC DRAFT PSA Amendment 1
Packet Page 189
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 4 Harris CM Services PSA
Packet Page 190
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 5 Reimbursement Agreement
Packet Page 191
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 6 Plans
Packet Page 192
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 7 Specifications
Packet Page 193
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 8 Addendum 1
Packet Page 194
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 9 Addendum 2
Packet Page 195
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 10 Addendum 3
Packet Page 196
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 11 Addendum 3 Revised Plan Sheets dated 05-07-2026 Packet Page 197
June 18, 2026
City Council Regular Meeting
Item 9C

ADOPT A RESOLUTION APPROVING THE BROADWAY AVENUE COMPLETE

STREET CORRIDOR IMPROVEMENT PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION AGREEMENT TO THE DON CHAPIN CO. FOR AN AMOUNT NOT TO EXCEED $12,176,375.00, APPROVING A REIMBURSEMENT AGREEMENT

WITH THE SEASIDE COUNTY SANITATION DISTRICT FOR BROADWAY SEWER

UPGRADES, APPROVING A CONSTRUCTION MANAGEMENT & INSPECTION SERVICES AGREEMENT WITH HARRIS & ASSOCIATES INC. FOR AN AMOUNT NOT TO EXCEED $1,638,529.00, AND APPROVING AND AMENDMENT FOR

DESIGN SERVICES DURING CONSTRUCTION TO THE KIMLEY-HORN AND ASSOCIATES, INC. PSA FOR AN AMOUNT NOT TO EXCEED $388,034.00 Attachment 12 Addendum 4
Packet Page 198

CITY OF SEASIDE

STAFF REPORT
Item No.: 9.D.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Thomas Korman, Public Works Director/City Engineer
Andreas Baer, Assistant Public Works Director
Kirstin van Gend, Administrative Analyst II
DATE: June 18, 2026
SUBJECT: ADOPT A RESOLUTION AUTHORIZING FISCAL YEAR 2026-2027

STREET REPAIR PROJECT LIST TO BE FUNDED IN PART WITH
SB1: THE ROAD MAINTENANCE REPAIR AND ACCOUNTABILITY
ACT OF 2017 FUNDS, AND AUTHORIZING SUBMISSION TO THE

CALIFORNIA TRANSPORTATION COMMISSION

RECOMMENDATION
Authorize staff to submit a SB 1 Project List.

BACKGROUND
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide.

SB1 places accountability and compliance requirements on jurisdictions in order to exhibit the effectiveness of the program. The City must adopt, by resolution, a list of projects proposed to receive fiscal year funding in part from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1. The City of Seaside RMRA revenues generated from SB1 are budgeted to be $918,384.00 in FY 2026-2027. As part of this year’s project list update, the City is submitting the 2025 Pavement Rehabilitation Project (construction).

Staff recommends that the City Council adopt a resolution approving the attached SB1 Project List in order to update the project list with the CTC for continuation of SB1 Packet Page 199

Item No. 9.D. Page 2 of 2
funding.

ENVIRONMENTAL COMPLIANCE
Per Title 14 of the California Code of Regulations, Chapter 3, “Guidelines for Implementation of California Environmental Quality Act (CEQA),” Article 19, “Categorical Exemptions,” Section 15301.c, “Existing Facilities”, repair, maintenance or minor alterations involving negligible or no expansion of existing or former use of "Existing highway and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety)” are categorically exempt from CEQA (California Environmental Quality Act)."

FISCAL IMPACT
The City of Seaside RMRA revenues generated from SB1 are budgeted to be $918,384.00 in FY 2026-2027. The proposed project list (Attachment 2) will be partially funded from the budgeted RMRA SB1 revenues accounted for in #210-3526 and expended from budgeted amount in the Pavement Resurfacing Account (212-8920- 9600).

STRATEGIC PRIORITY
Enhanced Physical Infrastructure & Abundant Water Supply

ATTACHMENTS

1. Resolution

2. SB 1 Project List
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 200
Meeting Date: 6/18/26
Item #: x.x.

RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE AUTHORIZING FISCAL YEAR 2026/2027 STREET REPAIR PROJECT LIST TO BE FUNDED IN PART WITH SB1: THE ROAD MAINTENANCE REPAIR AND ACCOUNTABILITY ACT OF 2017 FUNDS, AND AUTHORIZING STAFF TO

SUBMIT THE LIST TO THE CALIFORNIA TRANSPORTATION COMMISSION WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide;
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Seaside (City) must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, attached hereto as Exhibit A, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvements; and WHEREAS, the City will receive an estimated $918,384 in RMRA funding in Fiscal Year 2026-2027 from SB 1; and
WHEREAS, this is the Tenth Year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities, including City Council Meetings, and Council’s direction to focus on rehabilitating residential roadways; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate approximately 7-8 street segments throughout the City as part of the 2025 Pavement Rehabilitation Improvements Project; and
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-2
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City/County streets and roads are in an “at risk” condition and this revenue will help us improve the overall quality of our road system; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside does hereby approve the Fiscal Year 2026-2027 Street Repair Project List (Exhibit A) to be funded in part with SB1: The Road Maintenance Repair and Accountability Act of 2017 funds, to allocate these funds to the Pavement Resurfacing Account (212-8920-9600), and authorize staff to submit the list to the California Transportation Commission.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of Seaside duly held on the 18th day of June 2026, by the following vote:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS

APPROVED:
_______________________________
Ian N. Oglesby, Mayor

ATTEST:
______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
Packet Page 202
Exhibit A: Senate Bill (SB) 1 Proposed Project List for Fiscal Year 2023-24 Title Description
New or Carried Over
Project for SB1
Reporting
Location
Estimated
Project
Completion
Est Useful
Life Min
Est Useful
Life Max
FY26/27 Estimated
SB1 Funding
2025 Pavement Rehabilitation
Improvements Project
Remove & Replace failed road sections utilzing, dig
outs, slurry seals, and HMA overlays and signage
and striping improvements.

Carried Over
Lightfighter Drive, Coe Avenue, Auto
Center Parkway, Calaveras Street,
Clementina Avenue, Echo Avenue,
Heitzinger Plaza, Geary Plaza, Plumas
Avenue, Fremont Boulevard, and Del
Monte Boulevard
June 2027 5 30 918,384.00
Total Estimated Budget: $ 918,384.00
S:\CIP\Active Projects\SB1 Projects\CTC Reporting\Project List Updates\FY 26-27 Project List Update\DRAFT_SB1 project-list_26-27.xlsx - SB1 FY22.23 Project List Print 5/28/2026 Packet Page 203

CITY OF SEASIDE

STAFF REPORT
Item No.: 9.E.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Jessica Riley, Finance Director
DATE: June 18, 2026
SUBJECT: ADOPT A RESOLUTION APPROVING THE FISCAL YEAR 2026- 2027 OPERATING BUDGET AND RELATED DOCUMENTS,

INCLUDING THE INVESTMENT POLICY, CAPITAL

IMPROVEMENT PROGRAM, FEE SCHEDULE, POSITION

CONTROL LIST, SALARY SCHEDULE, STRATEGIC PLAN, AND

RESERVE AMOUNTS

RECOMMENDATION
Approve the Fiscal Year 2026-2027 Operating Budget, Investment Policy, Capital Improvement Program, Fee Schedule, Position Control List, Salary Schedule, Strategic Plan, and reserve amounts; and provide direction to staff regarding any final changes to be incorporated as part of implementation.

BACKGROUND
The purpose of this item is to present the Fiscal Year 2026-2027 Operating Budget and related budget documents for City Council consideration and adoption. These documents establish the City’s operating, financial, staffing, capital, fee, investment, strategic implementation, and reserve framework for the upcoming fiscal year.

Staff began preparations for the Fiscal Year 2026-2027 budget in March 2026 following the Fiscal Year 2025-2026 mid-year budget review. The proposed budget has been developed through departmental review, revenue and expenditure analysis, capital improvement planning, and City Council budget discussions held on May 26th and 27th.

The Fiscal Year 2026-2027 budget and related policy documents are now being presented for Council consideration and adoption. If the City Council provides final direction as part of this item, staff will incorporate that direction into the final adopted budget documents and implementation materials. If Council directs substantive changes Packet Page 204

Item No. 9.E. Page 2 of 3
requiring further review, staff will return with a revised budget prior to June 30, 2026.

The proposed budget reflects the City’s continued effort to maintain essential services, preserve organizational capacity, support capital and infrastructure needs, and manage reserve use during a transitional financial period. Staff will continue to monitor revenues, expenditures, staffing, and capital project implementation throughout the fiscal year and return to the City Council with updates or budget amendments as necessary.

Strategic Plan
As part of the Fiscal Year 2026-2027 budget process, the City is updating the Strategic Plan as an internal implementation refresh to carry forward current priorities, sharpen near-term action items, and better align department work plans with the upcoming budget cycle. This refresh is intended to support organizational focus and accountability during the fiscal year and is not intended to replace a more comprehensive, multi-year strategic planning process. A broader strategic planning effort is anticipated to begin in January 2027, unless otherwise directed by the City Council.

FISCAL IMPACT
Adoption of the Fiscal Year 2026-2027 Operating Budget will establish the City’s appropriation authority for the fiscal year beginning July 1, 2026. The final budget includes operating revenues, operating expenditures, capital improvement appropriations, approved staffing levels, fee schedule updates, salary schedule updates, reserve amounts, and related policy documents as set forth in the budget materials.

STRATEGIC PRIORITY
Effective Accessible Governance, Vibrant Local Economy, Diverse and Inclusive Community, Enhanced Physical Infrastructure & Abundant Water Supply, Community Safety & Quality of Life

ATTACHMENTS

1. Resolution

2. Investment Policy FY 26-27

3. Revised Budget
Reviewed for Submission to the City Council by:

Packet Page 205

Item No. 9.E. Page 3 of 3
____________________________________
Greg McDanel, City Manager
Packet Page 206
RESOLUTION NO. 26-XX and 26-XX SA

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY

OF SEASIDE

ADOPTING THE ANNUAL OPERATING BUDGET, OTHER FUNDS BUDGETS, THE

CAPITAL OUTLAY BUDGET, THE CAPITAL IMPROVEMENT BUDGET AND FIVE

YEAR PLAN, THE FEE SCHEDULE, THE INVESTMENT POLICY, THE POSITION

CONTROL LIST AND SALARY SCHEDULE, THE ANNUAL APPROPRIATIONS

LIMIT, AND THE RESERVE BALANCES OF THE CITY OF SEASIDE FOR THE FISCAL YEAR 2026-2027 AND AUTHORIZING ACTIONS AS NECESSARY FOR

BUDGET IMPLEMENTATION
WHEREAS, the City Council of the City of Seaside and the Agency Board of the Successor Agency to the Redevelopment Agency of the City of Seaside has considered the Proposed 2026-2027 Annual Operating Budget, Other Funds Budgets, Capital Outlay Budget, Capital Improvement Budget and Plan, the Annual Fee Schedule, the Investment Policy, the Position Control List and Salary Schedule, the Annual Appropriations Limit, and the Reserve Balances; and
WHEREAS, the City Council and the Agency Board has reviewed the aforementioned documents and made desired modifications; and
WHEREAS, the City Council and the Agency Board is required to adopt a balanced budget in which total appropriations do not exceed estimated revenues and/or other available funds; and
WHEREAS, the City Council is required to adopt an Annual Appropriations Limit and Reserve Balances.

NOW, THEREFORE BE IT RESOLVED, that the City Council and the Agency Board of the City of Seaside adopts the following:

1. The 2026-2027 General Fund Operating Budget, as may be modified;

2. The 2026-2027 Other Funds Budgets, as may be modified;

3. The 2026-2027 Capital Outlay Budget, as may be modified;

4. The 2026-2027 Capital Improvement Budget, as may be modified and the 2026-2027 through 2031-2032 Capital Improvement Plan;

5. The 2026-2027 Fee Schedule, as may be modified;

6. The 2026-2027 Investment Policy, as may be modified;

7. The 2026-2027 updated Strategic Plan, as may be modified; Meeting Date: 6/18/2026
Item X.X
Packet Page 207

8. The 2026-2027 Position Control List and Salary Schedule;

9. Authorize other actions as necessary to implement the 2026-2027 Budget.

10.The 2026-2027 Adopted Budget will be published as required by the Municipal Code and City Ordinance.

11.The appropriations limit for the Fiscal Year 2026-2027, in accordance with Article XIIIB of the California State Constitution, calculated as follows:
2026-2027 Appropriations Limit Adjustment Factors:

Increase in Per Capita Personal Income Factor 1.0495
Population Change Factor (County Factor) 0.9982
Combined Factor 1.047692
2026-2027 Appropriations Limit $ 50,882,054
2026-2027 Appropriations Subject to the Limit $ 44,289,827 2026-2027 Limit in Excess of Appropriations $ 6,592,227

13. In accordance with Section 3.12 of the City of Seaside Municipal Code and Government Accounting Standard #54, the City Council is required to set Reserve amounts each fiscal year. The Proposed 2026-2027 Budget establishes Reserves at 88% of the Municipal Code minimums.

PASSED AND ADOPTED at a meeting of the City Council of the City of Seaside and the Agency Board of the Successor Agency to the Redevelopment Agency of the City of Seaside duly held on the 18th day of June, 2026 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

APPROVED:

________________________________
Ian N. Oglesby, Mayor

ATTEST:
________________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
________________________________
Sheri L. Damon, City Attorney
Packet Page 208

CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
1 Adopted June 18, 2026
I. Introduction
The purpose of this document is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment process and to organize and formalize investment-related activities. Related activities which comprise sound cash management include accurate cash flow projections, control of disbursements, expedient collection of revenues, cost effective banking relations and a short term borrowing program which coordinates investment opportunity with working capital requirements.

The ultimate goal is to enhance the economic status of the City of Seaside while protecting its pooled cash resources.

The investment policies and practices of the City of Seaside are based on state law and prudent money management. All funds will be invested in accordance with the City's Investment Policy and the authority governing investments for municipal governments as set forth in the California Government Code, Sections 53601 through 53659. The investment of bond proceeds are to be restricted by the provisions of relevant bond documents.

II. Scope
It is intended that this policy cover all short-term operating funds and investment activities of the City. These funds are accounted for in the annual audit report, and include:
 General Fund
 Special Revenue Funds
 Debt Service Funds
 Capital Projects Funds
 Enterprise Funds
 Internal Service Funds
 Fiduciary Funds
This investment policy applies to all City transactions involving the financial assets and related activity of the above mentioned funds. Any additional funds that may be created from time to time shall also be administered with the provisions of this policy and comply with current State Government Code.

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CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
2 III. Prudence (Standard of Care)
The City of Seaside operates its pooled idle cash investments under the prudent man rule (Civil Code Section 2261, et. seq.). In addition, Government Code Section 53600.3 provides that those persons to whom investment decisions have been delegated are trustees with a fiduciary responsibility to act as a prudent investor.

Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. This affords a broad spectrum of investment opportunities as long as the investment is deeded prudent under current law.

The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. All persons investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds shall act with care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City.

It is the City's intent at the time of purchase to hold all investments until maturity to ensure the return of all invested principal dollars but sales prior to maturity are permitted.

IV. Objectives
A. Investment Criteria:

Government Code Section 53600.5 states: “When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objective of the trustee shall be to safeguard the principal of funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control”.

Simply stated, safety of principal is the foremost objective, followed by liquidity and return on investment (known as yield). Each investment transaction shall seek to first ensure the capital losses are avoided, whether they are from market erosion or Packet Page 210

CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
3 security defaults.

The primary objectives, in priority order, of the City's investment activities shall be:

1. Safety - Safety of principal is the foremost objective of the investment program. The City's investments shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio. The City shall seek to preserve principal by mitigating the two types of risk, credit risk and market risk. Investment decisions should not incur unreasonable credit or market risks in order to obtain current investment income. a. Credit Risk: Defined as the risk of loss due to failure by the issuer of a security.
b. Market Risk: Defined as the risk of market value fluctuations due to overall changes in the general level of interest rates.

2. Liquidity - The City's investment portfolio will remain sufficiently liquid to enable the City to meet its cash flow requirements. An adequate portion of the portfolio should be maintained in liquid short term securities which can be converted to cash and guarantee the City’s ability to meet operating expenditures.

3. Return on Investment (Yield) - The City's investment portfolio shall be designed with the objective of attaining a market rate of return on its’ investments consistent with the constraints imposed by its safety objective and cash flow considerations. Yield is to be a consideration only after the basic requirements of adequate safety and liquidity have been met.

B. Market Rate of Return
The investment portfolio shall be managed to attain a market average rate of return throughout budgetary and economic cycles. This takes into account the City’s cash flow requirements and investment risk constraints, state and local laws and ordinances or resolutions that restrict the placement of short term funds.

C. Performance Standards
The investment portfolio shall be managed with the objective of producing a yield meeting or exceeding the average return on the one year U.S. Treasury. This index is considered a benchmark for low to moderate risk investment transactions.

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CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
4 Therefore, they comprise a minimum standard for the portfolio’s rate of return.

The investment program shall seek to augment returns above this threshold, consistent with risk limitations identified herein and prudent investment principles.

This benchmark will be reviewed thoroughly and may be adjusted as required by market conditions to prevent incurring unreasonable risks to attain yield.

D. Diversification
The investment portfolio shall be diversified to prevent incurring unreasonable and avoidable risks regarding specific security types, individual financial institutions or maturity segments.

E. Public Trust
Public Trust - All participants in the investment process shall act responsibly as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

V. Delegation of Authority
The management and oversight responsibility for the investment program in hereby delegated to the Treasurer who shall monitor and review all investments for consistency with this investment policy. The City Manager and Treasurer shall jointly establish procedures to implement and monitor this investment policy. Such procedures shall include explicit delegation of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the limits of this policy.

VI. Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or that could impair their ability to make impartial decisions.

VII. Selection of Financial Institutions and Broker/Dealers To provide for the optimum yield in the City's portfolio, the City's procedures shall be Packet Page 212

CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
5 designed to encourage multiple bids and offers on investment transactions from an approved list of broker/dealers. The Treasurer shall maintain a list of authorized broker/dealers and financial institutions which are approved for investment purposes, in the State of California, and it shall be the policy of the City to purchase securities only from authorized institutions or firms. The investment guidelines and procedures shall identify the criteria under which brokers and dealers may qualify to conduct business with the City.

In order to assist in identifying qualified financial institutions, the Treasurer shall forward copies of the City’s investment policy to those financial institutions with which the City is interested in doing business and will require written acknowledgment of the policy. In addition, all dealers approved to do business with the City shall receive a copy of the Investment Policy annually. Confirmation of receipt of this policy shall signify that the dealer understands the Investment Policy and intends to present only appropriate investments.

VIII. Permitted Investment Instruments
Allowable investment instruments are defined in the California Government Code Section 53600 et. seq., as amended. If the Code is further revised to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to these changes, excluding those changes that may be prohibited by this policy. Where Government Code Section specifies a percentage limitation for a particular category of investments, that percentage is only applicable only at the date of purchase.

Investments may be made in the following instruments:

1. Government obligations pledged by the full faith and credit of the United States for the payment of principal and interest.

2. Obligations issued by Agencies or Instrumentalities of the U.S. Government.

3. Repurchase Agreements used solely as short term investments not to exceed one year.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying Repurchase Agreements must be delivered to the City's custodian bank versus Packet Page 213

CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
6 payment. The market value of securities that underlay a Repurchase Agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be reviewed on a regular basis and adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investment in repurchase agreements shall be in compliance if the value of the underlying securities is brought back to 102 percent no later than the next business day.

4. Banker's Acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System, the short term paper of which is rated in the highest category by Moody's Investors Services or by Standard & Poor's Corporation.

Purchases of Banker's Acceptances may not exceed 180 days maturity or 40 percent of the City's surplus money. However, no more than $2,000,000 of the City's surplus funds may be invested in the Banker's Acceptance of any one commercial bank.

5. Commercial paper rated in the highest short term rating category, as provided by Moody's Investors Service, Inc. (P-1) or Standard & Poor's Corporation (A-1) provided that the issuing corporation is organized and operating within the United States, has total assets in excess of $500 million, and has an "A" or higher rating for its long term debt, (if any, as provided by Moody's or Standard & Poor's).

Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than $1,000,000 from an issuing corporation.

Purchases of commercial paper may not exceed 15 percent of the City's surplus money that may be invested.

6. Medium term corporate notes of a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Medium term corporate notes shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating agency.

Investments will be limited to a maximum of 30% of the City's portfolio. The maximum principal amount in any one company will not exceed $1,000,000.

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CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
7 7. FDIC insured or fully collateralized time certificates of deposit in financial institutions located in California, including United States branches of foreign banks licensed to do business in California. The maximum maturity of a time deposit shall not exceed 180 days. All time deposits must be collateralized in accordance with California Government Code section 53651 and 53652, either using:
a) 150% of promissory notes secured by first mortgages and first trust deeds upon improved residential property in California eligible under Section 53601 (m), or
b) 110% of eligible marketable securities listed in subsections (a) through (l) and (n).

8. Negotiable certificates of deposit or deposit notes issued by a nationally or state chartered bank or a state or federal savings and loan association or by a state licensed branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated "AA" or better by Moody's or Standard & Poor's.

Purchase of negotiable certificates of deposit may not exceed 30 percent of the City's surplus money.

9. State of California's Local Agency Investment Fund. (LAIF) Investment in LAIF may not exceed limits as set forth by the LAIF Board and adjusted from time to time. The current per account limit is $75 million per account.

10. Shares of beneficial interest issued by diversified management companies (Money Market
Mutual Funds) investing in the securities and obligations authorized by sections a through l of Government Code section 53601. To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered with the Securities and Exchange Commission with not less than five years experience investing in securities and obligations authorized by Government Code Section 53601 and with assets under management in excess of $500,000,000.

The purchase price of shares shall not exceed 10 percent of the City's surplus money.

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CITY OF SEASIDE AND THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SEASIDE

INVESTMENT POLICY
8 Table A summarizes the maximum percentage and maturity limits, plus other constraints, by instrument, established for the City's total pooled funds portfolio.

IX. Safekeeping of Securities
To protect against fraud or embezzlement or losses caused by collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party bank trust department. Designated third parties shall act as agent for the City under the terms of a custody agreement or PSA agreement (repurchase agreement collateral).

All trades executed by a dealer will settle delivery vs. payment (DVP) through the City's safekeeping agent. Original copies on non-negotiable certificates of deposit and confirming copies (safekeeping receipts) of all other investment transactions must be delivered to the City. Investment officials shall be bonded to protect the public against possible embezzlement or malice.

Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.

X. Maximum Maturity
Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled so as to permit the City to meet all projected obligations.

Investments that mature more than five years from the date of purchase can not occur without prior approval of the City Council. As defined in Government Code Section 53601, “no investment shall be made in any security… that at the time of investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment approved by the legislative body no less than three months prior to the investment.” XI. Ineligible Investments
Certain investments are prohibited under Government Code Sections 53601.6 and 53631.5. Security types which are prohibited include, but are not limited to:
(a) "Complex" derivative structures such as range notes, dual index notes, inverse floaters, leveraged or deleveraged floating rate notes, or any other complex variable rate or structured note.
(b) Interest only strips that are derived from a pool of mortgages or any Packet Page 216

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9 security that could result in zero interest accrual if held to maturity. (c) Reverse Repurchase Agreements.

Purchasing these types of instruments does not coincide with this Policy’s objectives and would require a thorough review and monitoring of the underlying security. Although some of these transactions are legal under Government Code, they do not meet the objectives contained herein.

By virtue of the allowable investment in the State Pool, the City is investing idle cash with a large number of government agencies. The Pool is managed by outside administrators and are subject of the Government Codes as well as polices put in place by their governing boards. The Pool’s investment policy may allow for investment in some of the prohibitions noted above for Seaside. Investment in the State and County Pools is permitted, assuming a diminutive portion of their portfolio’s (10% or less) are tied to the high-risk products noted above. The Treasurer is responsible to monitor and review the Pool’s portfolio on an ongoing basis. The City shall take any necessary action should the Pool exceed the allowable 10% limit.

XII. Reporting Requirements
Pursuant to Government Code Section 53646, the Treasurer shall render to the City Council a separate quarterly investment report, which shall include, at a minimum, the following information for each individual investment:
- Type of investment instruments (i.e. Treasury Bill, medium term note) - Issuer names (i.e., General Electric)
- Purchase date (trade and settlement date)
- Maturity date
- Par value
- Current rate of interest
- Purchase price
- Current market value and the source of the valuation
- Overall portfolio yield based on cost
- Weighted average days to maturity
The quarterly report also shall (i) state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance, (ii) include a description of any of the City's funds, investments or programs that are under the Packet Page 217

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10 management of contracted parties, including lending programs, and (iii) include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

Market value adjustments, as required under Government Accounting Standards Board (GASB) Statement No. 31, are treated as year-end accounting adjustments to the financial records of the City. quarterly investment reports will demonstrate market fluctuations and continue to compare purchase price versus market value status. Accounting adjustments under GASB Statement No. 31, which compare changes to beginning and ending par market value in each fiscal year, are not included as part of the quarterly investment reports.

This quarterly report shall be submitted to the City Council within 45 days following the end of the quarter. Reporting to the California Debt and Investment Advisory Commission (CDIAC) commenced January 2001. Seaside will comply with CDIAC or any other oversight agency reporting requirements.

XIII. Policy Adopting Changes and Updates
The Treasurer shall annually render to the Council a statement of investment policy, which the Council shall consider at a public meeting.

The policy shall be reviewed annually by the City Manager and Treasurer to ensure its consistency with the global objective of preservation of investment principal, sufficient liquidity, rate of return and relevance to current laws and financial trends. Any modifications to the policy must be approved by the City Council.

XIV. Internal Controls
The Treasurer shall establish and implement a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets or imprudent actions by employees and officers of the City.

XV. Depositories
The Treasurer shall establish selection criteria for pre-approval of institutions that do business with the City of Seaside. To qualify for consideration, an institution must have an Packet Page 218

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11 office in California. The Treasurer will maintain a listing of approved institutions.

XVI. Risk Tolerance
The City recognizes that investment risk can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to minimize and control these risks.

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12 GLOSSARY OF TERMS
Bankers' Acceptances - negotiable time drafts or bills of exchange drawn on and accepted by a commercial bank. Acceptance of the draft obligates the bank to pay the bearer the face amount of the draft at maturity. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. The sale of the underlying goods will generate the funds necessary to liquidate the indebtedness. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States and the storage of readily marketable staple commodities. Banker's Acceptances are sold at a discount from par and the amount and maturity dates are fixed. Bankers' Acceptances have the backing of both the bank and the pledged commodities with no known principal loss in over 70 years. State law permits cities to invest up to 40% in bankers' acceptances.

Certificate of Deposit - A deposit insured up to $100,000 by the FDIC at a set rate for a specified period of time.

Collateral - Securities, evidences of deposit or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.

Corporate Medium Term Notes - Unsecured promissory notes issued by corporations operating within the United States. The notes mature in one to five year periods. Purchase of these notes may not exceed 30% of the City's portfolio and the notes must have at least an "A" rating by a nationally recognized rating service.

Commercial Paper - An unsecured promissory note of industrial corporations, utilities and bank holding companies having assets in excess of $500 million and an "A" or higher rating for the issuer's debentures. Interest is discounted from par and calculated using the actual number of days on a 360-day year. The notes are in bearer form, mature from one to 270 days and generally start at $100,000. There is a secondary market for commercial paper and an investor may sell them prior to maturity. Unused lines of credit back commercial paper from major banks.

State law permits cities to invest up to 30% in commercial paper.

Credit Risk - Defined as the risk of loss due to failure of the issuer of a security. This loss shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City's capital base and cash flow.

Current Yield - The interest paid on an investment expressed as a percentage of the current Packet Page 220

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13 price of the security.

Custody - A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement which also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.

Delivery vs. Payment (DVP) - Delivery of securities with a simultaneous exchange of money for the securities.

Fannie Mae - Trade name for the Federal National Mortgage Association (FNMA), a United States sponsored corporation.

Federal Reserve System - The central bank of the United States which consists of a seven member Board of Governors, 12 regional banks and 5,700 commercial banks that are members.

Federal Deposit Insurance Corporation (FDIC) - Insurance provided to customers of a subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.

Freddie Mac - Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a United States sponsored corporation.

Ginnie Mae - Trade name for the Government National Mortgage Association (GNMA), a direct obligation bearing the full faith and credit of the United States Government.

Interest Rate - The annual yield earned on an investment, expressed as a percentage.

Liquidity - Refers to the ability to rapidly convert an investment into cash.

Local Agency Investment Fund (LAIF) Demand Deposit - Was established by the state to enable treasurers to place idle funds in a pool for investment. Each agency is currently limited by LAIF to an investment of $75 million plus any bond proceeds.

Market Risk - Defined as market value fluctuations due to overall changes in the general level of interest rates. Adverse fluctuation possibilities shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis, and eliminating the need to sell securities prior to maturity. Also, avoiding the purchase of long term securities for the sole purpose of short-term speculation mitigates marker risk.

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14 Market Value - The price at which a security is trading and could presumably be purchased or sold.

Maturity - the date the principal or stated value of an investment becomes due and payable.

Portfolio - Collection of securities held by an investor.

Purchase Date - The date in which a security is purchased for settlement on that or a later date.

Rate of Return - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Repurchase Agreement (REPO) - Are contractual arrangements between a financial institution or dealer and an investor. The investor puts up their funds for a certain number of days at a stated yield. In return, they take title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds are repaid with interest.

Reverse Repurchase Agreement (Reverse REPO) - A transaction where the seller (City) agrees to buy back from the buyer (bank) the securities at an agreed upon price after a stated period of time.

Sallie Mae - Trade name for the Student Loan Marketing Association (SLMA), a United States sponsored corporation.

Treasury Bills - United States Treasury Bills which are short term, direct obligations of the United States Government issued with original maturities of 13 weeks, 26 weeks and 52 weeks; sold in minimum amounts of $10,000 in multiples of $5,000 above the minimum. Issued in book entry form only. T-bills are sold on a discount basis.

United States Government Agencies - Instruments issued by various United States Government Agencies most of which are secured only by the credit worthiness of the particular agency.

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15 Permitted Investments
Table A
City Policy Maximum
Legal Limit Legal Limit Maturity City Policy
Permitted Investments (% or $) (% or $) Constraints Other Constraints U.S.Government
Obligations
Unlimited Unlimited 5 years * None
U.S. Government
Agencies & Instruments
Unlimited Unlimited 5 years * None
Repurchase Agreements Unlimited Unlimited 1 year 102% Market value on underlying securities
Bankers Acceptances 40% 40% 180 days No more than $2,000,000 invested in any one
commercial bank
Commercial Paper 30% 30% 270 days U.S. Corporations with assets in excess of $500,000,000;
“A” debt rating; maximum of
$1,000,000 from an issuing
corporation
Medium Term Corporate
Notes
30% 30% 5 years U.S. Corporations; “A” debt
rating maximum of
$1,000,000 per issuing
company
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16 Certificates of Deposit Unlimited Unlimited 5 years * Must be collateralized to 110% of the CD value by
other eligible securities or
150% by promissory notes
secured by California Deeds
& Mortgages
Negotiable Certificates of
Deposit
30% 30% 5 years * State and Federally chartered
banks and savings
institutions, “AA” rating by
one agency
LAIF State Pool $75,000,00
0 **
$75,000,000
**
N/A Limited to 15 transactions
per month, per account, per
State Policy - last changed
11/16/09.

Mutual Funds 15% 10% N/A Funds invested as defined in
Section 53601 (a) to (l);
highest debt rating from 2 of
top 3 national rating services
OR investment advisor
registered with SEC for at
least 5 years and assets
under management in excess
of $500,000,000.
* Maximum terms unless the City Council expressly authorizes longer maturities and within the prescribed time frame for said approval.
** Not set by Government Code, but instead by LAIF Governing Board.

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June 18, 2026
City Council Regular Meeting
Item 9E
ADOPT A RESOLUTION APPROVING THE FISCAL YEAR 2026-2027 OPERATING

BUDGET, INVESTMENT POLICY, CAPITAL IMPROVEMENT PROGRAM, FEE

SCHEDULE, POSITION CONTROL LIST, SALARY SCHEDULE, STRATEGIC PLAN,

AND RESERVE AMOUNTS AND PROVIDE DIRECTION TO STAFF AS TO ANY

CHANGES TO BE MADE PRIOR TO ADOPTION
Attachment 1 – Revised 25-26 Budget
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