ITEM 8.A.
ADOPTION OF URGENCY
ORDINANCE REPEALING IN PART
ORDINANCE NO. 2034
July 16, 2026 | City Council Meeting
Greg McDanel, City Manager
• Item 8.A. is an Urgency Ordinance to repeal, in part, Ordinance No. 2034 to return Council compensation to
$400 a month effective immediately with no change to the $300 automobile stipend for Mayor
• Item 8.B. is a regular Ordinance that would increase the compensation of the Mayor and City Councilmembers by
$780, plus the $400, for a total of $1,180 a month to
commence after the November 3, 2026 election when one
or more Councilmembers are sworn into office
Agenda Items
2 • Adopted by City Council on May 1, 2025 increased the compensation of City Councilmembers and the Mayor from
$400 a month to $2,400 a month, also included a $300
automobile stipend for the Mayor
• Increased compensation was paid during the period of June 2025 through June 2026 (13 months)
• Last prior increase was Ordinance No. 703 adopted on
August 21, 1986 setting compensation at $400 per month
Ordinance 2034
3 • Ordinance No. 2034 included a mistake regarding
calculation of the amount of the compensation increase
• Increase in compensation by $2,000 plus $400
(compensation since 1986) for a total of $2,400 was
based on 5% per year formula of Government Code
Section 36516 compounded since 1986
• However, California Attorney General opinion found that the 5% formula should not be compounded
Amount of Compensation
4 • Without compounding, the increase of 5% since 1986
should have been $760 based on 38 years multiplied by
$20 (5% of $400) plus $400 existing compensation for
total compensation of $1,160
• There is no issue regarding the $300 automobile stipend allocated to the Mayor
Amount of Compensation
5 • Also a mistake in Ordinance No. 2034 regarding the
timing of the increase in compensation
• Ordinance No. 2034 provided the effective date was 30 days after adoption which would have been May 31, 2025
• However, Government Code Section 36516.5 requires
that payment commence only after one or more members
of the City Council are sworn into office following adoption • Next election is November 3, 2026
Timing of Compensation Increase
6 • City Councilmembers and Mayor received $2,000 a
month in increased compensation during the 13
month period from June 2025 through June 2026,
resulting in an overpayment of $26,000 each
• Staff Report Section V recommends City Manager be
directed to retain an independent Certified Public
Accountant or other qualified professional to
recommend repayment method for overpayments
Overpayment of Compensation
7 • Government Code Section 36516 allows for a
compensation increase in an amount equal to 5% for
each calendar year from the operative date of the last
adjustment of the salary in effect when ordinance is
enacted
• In the alternative, compensation increase for cities
with population of 35,000 or less of $950 per month is
allowed by Government Code Section 36516 based
on SB 329
Ordinance to Increase Compensation (8.B.)
8 • Ordinance includes recital that City and its needs
have grown in complexity increasing hours required
of Councilmembers
• Ordinance includes recital that increasing
compensation for Councilmembers would facilitate
additional representation in local government by
allowing public servants to balance careers, personal
obligations, and increase diverse participation,
consistent with the legislative intent of Government
Code Section 36516
Ordinance to Increase Compensation (8.B.)
9 •Includes 5% increase in monthly compensation
since 186, without compounding, would be 5% of
$400, which is $20 a year multiplied by 39 years
is $780
• $780 increase, plus $400 existing compensation,
totals $1,180 per month
Ordinance to Increase Compensation (8.B.)
10 1. Motion finding the proposed Urgency Ordinance Repealing in Part Ordinance No. 2034 to reduce City Council
compensation back to $400 per month is not a project for purposes of CEQA Section 15378 and is also exempt from
CEQA based on Section 15061(b)(3)
2. Motion to adopt Urgency Ordinance Repealing in Part
Ordinance No. 2034 (Attachment 5) to reduce City Council compensation back to $400 per month
Recommendations (8.A.)
11 ITEM 8.B.
INTRODUCTION OF ORDINANCE
AMENDING MUNICIPAL CODE SECTION
2.02.490 INCREASING THE
COMPENSATION OF THE MAYOR AND
CITY COUNCILMEMBERS
July 16, 2026 | City Council Meeting
Greg McDanel, City Manager
• Item 8.A. is an Urgency Ordinance to repeal, in part, Ordinance No. 2034 to return Council compensation to
$400 a month effective immediately with no change to the $300 automobile stipend for Mayor
• Item 8.B. is a regular Ordinance that would increase the compensation of the Mayor and City Councilmembers by
$780, plus the $400, for a total of $1,180 a month to
commence after the November 3, 2026 election when one
or more Councilmembers are sworn into office
Agenda Items
2 • Adopted by City Council on May 1, 2025 increased the compensation of City Councilmembers and the Mayor from
$400 a month to $2,400 a month, also included a $300
automobile stipend for the Mayor
• Increased compensation was paid during the period of June 2025 through June 2026 (13 months)
• Last prior increase was Ordinance No. 703 adopted on
August 21, 1986 setting compensation at $400 per month
Ordinance 2034
3 • Ordinance No. 2034 included a mistake regarding
calculation of the amount of the compensation increase
• Increase in compensation by $2,000 plus $400
(compensation since 1986) for a total of $2,400 was
based on 5% per year formula of Government Code
Section 36516 compounded since 1986
• However, California Attorney General opinion found that the 5% formula should not be compounded
Amount of Compensation
4 • Without compounding, the increase of 5% since 1986
should have been $760 based on 38 years multiplied by
$20 (5% of $400) plus $400 existing compensation for
total compensation of $1,160
• There is no issue regarding the $300 automobile stipend allocated to the Mayor
Amount of Compensation
5 • Also a mistake in Ordinance No. 2034 regarding the
timing of the increase in compensation
• Ordinance No. 2034 provided the effective date was 30 days after adoption which would have been May 31, 2025
• However, Government Code Section 36516.5 requires
that payment commence only after one or more members
of the City Council are sworn into office following adoption • Next election is November 3, 2026
Timing of Compensation Increase
6 • City Councilmembers and Mayor received $2,000 a
month in increased compensation during the 13
month period from June 2025 through June 2026,
resulting in an overpayment of $26,000 each
• Staff Report Section V recommends City Manager be
directed to retain an independent Certified Public
Accountant or other qualified professional to
recommend repayment method for overpayments
Overpayment of Compensation
7 • Government Code Section 36516 allows for a
compensation increase in an amount equal to 5% for
each calendar year from the operative date of the last
adjustment of the salary in effect when ordinance is
enacted
• In the alternative, compensation increase for cities
with population of 35,000 or less of $950 per month is
allowed by Government Code Section 36516 based
on SB 329
Ordinance to Increase Compensation (8.B.)
8 • Ordinance includes recital that City and its needs
have grown in complexity increasing hours required
of Councilmembers
• Ordinance includes recital that increasing
compensation for Councilmembers would facilitate
additional representation in local government by
allowing public servants to balance careers, personal
obligations, and increase diverse participation,
consistent with the legislative intent of Government
Code Section 36516
Ordinance to Increase Compensation (8.B.)
9 •Includes 5% increase in monthly compensation
since 186, without compounding, would be 5% of
$400, which is $20 a year multiplied by 39 years
is $780
• $780 increase, plus $400 existing compensation,
totals $1,180 per month
Ordinance to Increase Compensation (8.B.)
10 1. Motion finding the proposed Ordinance to Increase Compensation of the Mayor and City Councilmembers (Attachment 6) is not a project for purposes of CEQA Section 15378 and is also exempt from CEQA based on Section 15061 (b)(3)
2. Motion to Introduce the proposed Ordinance to Increase Compensation of the Mayor and City Councilmembers
3. Motion directing City Manager to retain an independent Certified Public Accountant or other qualified professional to recommend a repayment method for the overpayment of compensation for the 13 month period of June 2025 through June 2026 and authorize the City Manager to contact the Fair Political Practices Commission with any questions regarding the repayment method
4. Take other action related to this Agenda Item as directed by Council Recommendations (8.B.)
11 ITEM 8.C.
INTRODUCTION OF AN ORDINANCE AMENDING
SEASIDE MUNICIPAL CODE CHAPTER 13.12 CROSSCONNECTION CONTROL PROGRAM. THE PROPOSED
ACTION IS NOT SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT
TO SECTION 15061(B)(3) (FIRST READING - ROLL CALL
VOTE)
July 16, 2026 | City Council
Andreas Bear, Assistant Public Works Director
Thomas M. Korman, P.E., Public Works Director/City Engineer 2 • The State Water Resources Control Board adopted the CrossConnection Control Policy Handbook (CCCPH) July 1st 2024. • The CCCPH aims to protect public health by establishing standards to ensure a public water system's drinking water distribution system will not be subject the backflow of liquids, gases, or other substances
• The CCCPH repeals and replaces the Cross-connection control and backflow prevention regulation formerly found in Title 17 Background
3 • A summary of an ordinance change shall be posted in newspaper of general circulation at least 5 days prior
to the meeting at which the ordinance is to be adopted. • Ordinance approvals require two readings and then
become effective 30 days after adoption (44 – 51 days
from first council meeting)
• Ordinance changes require a roll call vote to ensure
absolute transparency and to create a permanent public
record of exactly how each elected official voted.
First Hearing Of Ordinance Revision
4 • Suggested Language
13.12.030 Adoption.
These regulations are adopted pursuant to the State of
California Code of Regulations, Title 17 Public Health, entitled “Regulations Relating to Cross Connections” the State Water Resources Control Board CrossContamination Control Policy Handbook (CCCPH) latest edition and incorporating all updates and
amendments as defined in California’s Health and
Safety Code (CHSC) section 116275 (h) (Ord. 752 § 1
(Exh. A), 1988)
Proposed Ordinance
5 • Suggested Language
13.12.090 Type of protection required.
A. The type of protection that shall be provided to prevent backflow into the approved water supply shall be commensurate with the degree of hazard that exists on the consumer’s premises. The type of protective device that may be required (listing in an increasing level of the type of protection) includes: double check valve assembly (DC), reduced pressure principle backflow prevention device (RP) and air-gap separation (AG). The water user may choose a higher level of protection than required by the city. The minimum types of backflow protection required to protect the approved water supply at the user’s water connection to premises with varying degrees of hazard given in Table 1 of Title 17 California Code of Regulations, Section 7604, as that section may be revised from time to time are defined in the CCCPH. Situations which are not covered in Table 1 the CCCPH shall be evaluated on a case-by-case basis and the appropriate backflow protection shall be determined by the City Engineer or health agency.
Proposed Ordinance
6 • Suggested Language
13.12.110 Backflow prevention device
installation.
Backflow prevention devices shall be installed in a
manner prescribed in Section 7603, Title 17, of the
California Administrative Code the CCCPH. Location of
the devices should be as close as practical to the user’s connection. The City Engineer shall have the final
authority in determining the required location of a
backflow prevention device.
Proposed Ordinance
7 Staff recommends modifying the language of Section
13.12 of the Seaside Municipal Code to replace
references to title 17 with the CCCPH adopted by the
State Water Resource Control Board.
Recommendation
ITEM 9.A.
APPROVE THE
SEASIDE LIBRARY MURAL
July 16, 2026 | City Council Meeting
Kee Hyon Higgins, Recreation Superintendent
2 Seaside Library Project Description
In May 2026, a Request for Proposals (RFP) was released for design and installation of a mural on the staircase leading to the Seaside Public Library located at 550 Harcourt Avenue.
Background
At the July 2, 2026 City
Council Meeting, staff
received direction to add
additional artwork on the
staircase and additional
book titles on the concrete
columns on the left and
right side of the staircase.
3 Selected Artist, BEIS (Pedro Gonzalo Garcia)
Original Rendering
4 International Artist, BEIS (Pedro Gonzalo Garcia)
Updated Rendering
5 International Artist, BEIS (Pedro Gonzalo Garcia)
Updated Rendering
6 12 book titles will be added to the columns of the mural design:
1. “Racial Beachhead” - Carol McKibben (local historian)
2. "Images in America" - Carol McKibben (local historian)
3. "Joyful Noise" - Paul Fleischman (local Seaside resident/author)
4. "Esperanza Rising" - Pam Munoz (award winning author)
5. "Grandfather's Journey" - Allen Say (award winning author)
6. "Big" - Vashti Harrison (award winning author)
The remaining six book titles will be selected by City Council.
Book Titles
7 Seaside Library Mural:
Fiscal Impact
$15,000.00
This project is funded through annual Neighborhood Improvement Commission’s allocation of transient occupancy tax, which was approved by City Council during FY25-26 Budget Sessions.
Due to additional design changes and travel costs, the project budget was increased from $11,500 to $15,000.
8 Approve the Seaside Library Mural design.
Recommendation
ITEM 9.B.
ADOPT A RESOLUTION AUTHORIZING THE
SUBMISSION OF LOCAL AUTHORITY
RECOMMENDATIONS TO THE CALIFORNIA
GOVERNOR’S OFFICE OF BUSINESS AND
ECONOMIC DEVELOPMENT FOR
OPPORTUNITY ZONES 2.0 DESIGNATION
OF CENSUS TRACTS
06053014108 AND 06053014000
July 16, 2026 | City Council Meeting
Greg McDanel, City Manager
• Economic development tool for long-term private
investment
• Specifically a designated census tract where federal tax benefits are available to private investors making
investments through Qualified Opportunity Fund
• Can assist financing for housing, mixed-use, hospitality, and commercial projects
• Projects in Opportunity Zones are more competitive for private capital
Opportunity Zones 2.0
2 • Does not provide a direct grant or require City funding, fee reductions, or subsidies
• Does not change zoning, approve projects, or create land use entitlements
• Does not impose new taxes or assessments
• Future projects remain subject to City, State,
environmental, land use, and public review requirements What Designation Does Not Do
3 • Only census tracts appearing on official Treasury eligible tract list may be recommended
• GO-Biz accepting Local Authority Recommendation
Forms by 11:59 p.m. on July 20, 2026
• State review and public comment process to follow
• Governor to nominate up to 25% of eligible census tracts • US Treasury then certifies final designations
Designation Process
4 • Includes areas associated
with Main Gate, Campus
Town, Grand Hyatt
Seaside Hotel & Resort
• Supports former Fort Ord
reuse, housing, tourism,
workforce, and job
creation objectives
Census Tract 06053014108
5 • Census Tract lies within both
Seaside and Sand City
• Includes commercial areas
along Del Monte Boulevard
and West Broadway Urban
Village
Census Tract 06053014000
6 • Defer: Federal tax on the original capital gain may be deferred for five (5) years
• Reduce: After five (5) years, only 90% of the original gain is federally taxable
• Potentially Eliminate: New appreciation may be excluded from federal capital-gains tax
• Example:
• $10 million eligible capital gain invested
• $ 9 million of the original gain taxable after five (5) years • If investment grows to $16 million, $6 million in new appreciation may be excluded from federal capital-gains after 10-year hold Private Investment Benefits
4 •Adopt the resolution authorizing the submission of
Local Authority Recommendations to the California
Governor’s Office of Business and Economic
Development for Opportunity Zone 2.0 designation
of Census Tracts 06053014108 and 06053014000
Recommendation
7 ITEM 9.C.
ADOPT A RESOLUTION IN SUPPORT OF
MODIFICATION OF STATE WATER BOARD
ORDERS WR 2009-0060 AND 2016-0016 TO
LIFT THE MORATORIUM ON NEW WATER
SERVICE CONNECTIONS
July 16, 2026 | City Council Meeting
Sheri L. Damon, City Attorney
BACKGROUND
2 • 1995 – SWRCB Order 95-10 ordering CalAm to reduce illegal diversions off the Carmel River
• 2009 – SWRCB Order 2009-0060 order CalAm to not make new water connections for new or intensified uses
• 2016-SWRCB Order 2016-0016 administrative clarifications to prior orders
• 2019-2025 MPWMD and others implemented water supply projects (primarily Pure Water Monterey and Expansion Project)
• 2025 – MPWMD submits an Application for Modification of SWRCB Orders to allow Cal Am to make new water connections
• 2026 – SWRCB issues a Notice of Hearing on Application for Modification
• https://www.waterboards.ca.gov/waterrights/water_issues/projects/calif ornia_american_water_company/
CONDITIONS HAVE CHANGED
3 Reduced Usage
Actual water use
has declined
significantly since
2009. Cal-Am has
not exceeded
authorized
Carmel River
diversion limits for
at least 4
consecutive
years.
New Water Supply
The Pure Water
Monterey
Expansion project
came online in 2021
and has further
improved regional
water supply
conditions,
augmenting the
available supply.
No Current
Violation
MPWMD contends
— and the State
Water Board's own
Notice of Hearing
acknowledges —
there is no current
or foreseeable
threatened
violation of the
existing orders.
PROPOSED RESOLUTION
4 • Places Seaside on record in support of modifying Condition 2 of Order WR 2009-0060 to lift the new-connection moratorium • Supports retention of key reporting requirements and a clear reimposition trigger if future conditions warrant
• Aligns with the City's Nov. 1, 2025 letter already submitted to the State Water Board and with the MPWMD Application
• Is not a CEQA "project" — no environmental review required at this stage
SWRCB HEARING TIMELINE
5 Written testimony is due August 19, 2026
Rebuttal: September 18, 2026
Public Hearing: November 5, 2026
Closing Briefs: November 10, 2026
Written testimony, exhibits, and closing briefs should
be submitted to:
[email protected]
Or by Mail at the Address in the Notice
•Adopt a resolution in support of the Monterey
Peninsula Water Management application to modify
the SWRCB Orders WR 2009-0060 and 2016-0016
to authorize new water connections and authorize
the City Manager to submit as comments to the
SWRCB
RECOMMENDATION
6