Agenda packet — Seaside City Council, October 1, 2026

A G E N D A

CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/SUCCESSOR 440 HARCOURT AVE (COUNCIL CHAMBER) AGENCY TO THE Thursday, October 1, 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

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. PRESENTATIONS
A. RECEIVE A PRESENTATION FROM THE BOYS AND GIRLS CLUB OF

MONTEREY COUNTY ABOUT THEIR SUMMER ACADEMY
Packet Page 1
City Council REGULAR Meeting October 1, 2026 5:00 PM Agenda Page 2 B. 2026 SEASIDE CAR WEEK AFTER ACTION REPORT

8. CONSENT AGENDA
A. APPROVE MINUTES FROM SEPTEMBER 17, 2026
RECOMMENDATION: Approve minutes as presented.

B. APPROVE AND FILE CITY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of July 11, 2026 through August 07, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period of July 23, 2026 through August 06, 2026.

Total Accounts Payable and Payroll for the above referenced period is:

July 11, 2026 through July 24, 2026 = $6,197,839.64
July 25, 2026 through August 07, 2026 = $1,548,534.95
C. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of July 11, 2026 through August 07, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period July 23, 2026 through August 06, 2026. Total Accounts Payable and Payroll for the above referenced period is $6,269.25.

D. APPROVE A PROCLAMATION RECOGNIZING OCTOBER 18-24, 2026, AS

FREEDOM FROM WORKPLACE BULLYING WEEK
RECOMMENDATION: Approve proclamation.

E. APPROVE ENVIRONMENTAL SERVICES COOPERATIVE AGREEMENT (ESCA) REPORT COVERING ACTIVITIES FROM JULY THROUGH
SEPTEMBER 2026
RECOMMENDATION: Approve Environmental Services Cooperative Agreement (ESCA) report covering activities from July through September 2026.

F. APPROVE A FEE WAIVER REQUEST FROM MONTEREY COUNTY BRANCH

OF NAACP FOR THE USE OF LAGUNA GRANDE HALL AND KITCHEN FOR THEIR EDUCATION FORUMS "MONTEREY COUNTY CLOSING THE GAP ON EDUCATIONAL INEQUALITIES" ON NOVEMBER 19, 2026, AND
DECEMBER 17, 2026, IN THE AMOUNT OF $450.00
Packet Page 2
City Council REGULAR Meeting October 1, 2026 5:00 PM Agenda Page 3 RECOMMENDATION: Approve the fee waiver request.

G. APPROVE A FEE WAIVER FROM CENTRAL COAST BOMBERS FOR THE USE OF SOPER FIELD AND CUTINO FIELD FROM AUGUST 4, 2026 TO
OCTOBER 27, 2026, IN THE AMOUNT OF $3,132.00
RECOMMENDATION: Approve the fee waiver request.

H. ADOPT A RESOLUTION INCREASING THE COURTHOUSE PROJECT BUDGET TO $1,347,921.07 AND APPROPRIATING $60,099.03 FROM

RESERVES FOR DIVARTY STREET IMPROVEMENTS
RECOMMENDATION: Adopt a resolution increasing the Courthouse Project budget by $197,921.07, from $1,150,000.00 to $1,347,921.07, and appropriating $60,099.03 from reserves to fund the City’s remaining share of the Divarty Street infrastructure and utility undergrounding improvements.

9. PUBLIC HEARING
A. AN ORDINANCE TO AMEND CHAPTER 17.40 OF THE SEASIDE

MUNICIPAL CODE TO ALLOW ELECTRONIC MESSAGE DISPLAY SIGNS

FOR PLACES OF WORSHIP AND PUBLIC OR PRIVATE MEETING
FACILITIES ON LOCAL STREETS. 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: Adopt the ordinance.

10. BUSINESS ITEMS
A. DISCUSSION AND DIRECTION REGARDING A POTENTIAL RESPONSIBLE

BUSINESS DISCLOSURE AND UNSATISFIED FINAL WAGE JUDGMENT

ORDINANCE
RECOMMENDATION: Receive a report regarding potential City policies addressing responsible business disclosures and unsatisfied final wage judgments, and provide direction regarding whether and within what scope staff should prepare an ordinance for future City Council consideration.

B. RECEIVE THE FY 2025-2026 STRATEGIC PLAN YEAR-END PROGRESS REPORT
RECOMMENDATION: Receive the FY 2025–2026 Strategic Plan year-end progress report and provide direction on any priorities or implementation matters Packet Page 3
City Council REGULAR Meeting October 1, 2026 5:00 PM Agenda Page 4 requiring follow-up.

C. REVIEW OF CANNABIS DISPENSARY AGREEMENTS AND ANNUAL

OVERSIGHT
RECOMMENDATION: Receive a report regarding the compliance of cannabis dispensary operators with their respective Development/Operating Agreements, including the preliminary findings and the City Manager's Office plan for annual oversight. Provide direction regarding any further documentation or follow-up review Council wishes staff to pursue.

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

1. Reconsideration of a Project Labor Agreement Adoption (Oglesby)

2. Review support for Caltrans/TAMC Gateway for Monterey Bay ATP grant (Oglesby)

3. Discussion of Urgency Ordinance related to data centers (Oglesby)

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

COMMENTS AND REPORTS ON COMMITTEE ASSIGNMENTS
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.

13. 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 LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9 TWO MATTERS OF EXISTING LITIGATION
Case Name: Landwatch et al. v. City of Seaside
Case Number: Monterey County Superior Court 24CV002483/ 6th District Court of Appeal Case Number currently unassigned Packet Page 4
City Council REGULAR Meeting October 1, 2026 5:00 PM Agenda Page 5 B. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (D)(2)
Two potential matters

14. ADJOURNMENT
Next Regularly Scheduled Meeting:

October 15, 2026
5:00 PM
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, September 17, 2026
REDEVELOPMENT AGENCY 5:00 PM

1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:25 p.m. The Clerk announced that the Zoom link had been updated following a technical disruption.

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

3. CITY COUNCIL/SUCCESSOR AGENCY TO REDEVELOPMENT AGENCY OF

THE CITY OF SEASIDE

4. INVOCATION AND PLEDGE OF ALLEGIANCE
A moment of silence was held for the invocation. The pledge was led by Council Member/Agency Member Garcia-Arrazola.

5. REVIEW OF AGENDA
Closed Session Item 14A was removed from the agenda at the request of staff.

6. PUBLIC COMMENT
George Lang, Natalie, Karla Lobo, and Lucy Erenss.

7. PUBLIC AGENCY COMMUNICATIONS
None.

A. SEASIDE CITY NEWS BROADCAST AND COMMENTS FROM THE CITY

MANAGER
Due to technical difficulties with the audio, the Seaside City News broadcast was not played during the meeting. The City Manager advised that the City News would be posted on the City's website and that a link would be distributed through the City's next newsletter.

The City Manager announced a temporary closure of a section of Playa Avenue related to Monterey-Salinas Transit SURF! Busway and Bus Rapid Transit project near the border of Seaside and Sand City. As part of the ongoing project work, a section of Playa Avenue between California Avenue and Del Monte Boulevard was scheduled for a temporary full closure beginning September 20 at 7:00 p.m. through September 24 at 6:00 a.m. Detour signage would be provided during the Packet Page 6
Thursday, September 17, 2026 City Council REGULAR Meeting Page 2 closure, and additional project and traffic information would be made available to the public through the City's website and MST.

8. PRESENTATIONS
A. RECEIVE A PRESENTATION FROM THE HOUSING RESOURCE CENTER OF

MONTEREY COUNTY (JONATHAN AHMADI, BOARD OF DIRECTORS &

CATHERINE STIHLER, EXECUTIVE DIRECTOR)
Jonathan Amati, Housing Resource Center Board Member, and Interim Executive Director Katherine Stiller presented an overview of HRC programs focused on homelessness prevention and housing stability. HRC described rental and deposit assistance, coordinated assessment and referral, case management, housingspecialist services, landlord partnerships, and referral-based programs. For 2025, HRC reported serving 299 households and housing 1,041 individuals countywide, including 618 children, with 65 individuals served in Seaside. Council discussion addressed referral eligibility, long-term housing stability, landlord participation, services for families and youth, language access, and opportunities to expand privately funded assistance.

B. RECEIVE A PRESENTATION FROM EVERYONE'S HARVEST ON THE 25/26

COMMUNITY SOCIAL SERVICES GRANT PROGRAM
Executive Director Hester Parker reported on use of the City's grant at the Seaside Farmers Market, including enhanced Market Match benefits for CalFresh participants, outreach, food navigation, cooking demonstrations, and produceaccess programs. The grant period showed increased CalFresh transactions and increased spending at market vendors. Discussion addressed produce boxes, Sun Bucks, school outreach, food insecurity, social-service outreach, and efforts to recruit additional produce vendors. Everyone's Harvest also reported expansion of the Fresh Rx produce prescription program and continued state support for Market Match.

C. RECEIVE A PRESENTATION FROM GREATER VICTORY TEMPLE CHURCH ON THE 25/26 COMMUNITY SOCIAL SERVICES GRANT PROGRAM
Amanda Kennedy, Director of Educational Initiatives, presented on the Afternoon Community Support Program serving students from Martin Luther King School of the Arts. The program provides a safe after-school environment with literacy and academic support, enrichment, mentoring, meals and family support. Council discussion recognized the program's role in supporting students and families and the value of community-based educational partnerships.

D. RECEIVE A PRESENTATION FROM FRIENDS OF SEASIDE PARKS ASSOCIATION ON THE 25/26 COMMUNITY SOCIAL SERVICES GRANT

PROGRAM
Jeannie Reese, representing Friends of Seaside Parks Association (FOSPA), provided an update on the organization’s activities and accomplishments. Ree Packet Page 7
Thursday, September 17, 2026 City Council REGULAR Meeting Page 3 highlighted FOSPA’s efforts to improve City parks and neighborhoods through weekly volunteer activities, including planting California native plants, creating pollinator habitats, weeding, watering, mulching and other environmental improvements. FOSPA reported an average of approximately 25 volunteers participating each Saturday.

Reese also discussed plans to expand garden sheds, interpretive signage and bulletin boards at City parks; develop a multimedia project featuring park stewards; and launch a youth environmental education initiative. Council discussion included the Climate Action Fellows program and opportunities to connect FOSPA’s environmental work with the City’s climate-action efforts.

9. CONSENT AGENDA
Items 9F and 9K were pulled from the consent agenda for separate discussion.

Public comment was received on the consent agenda.

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 consent agenda.

RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
A. APPROVE MINUTES FROM SEPTEMBER 3, 2026
ACTION: APPROVED
B. APPROVE PROCLAMATION RECOGNIZING OCTOBER 2026 AS

NATIONAL DISABILITY EMPLOYMENT AWARENESS MONTH IN THE

CITY OF SEASIDE
ACTION: APPROVED
C. APPROVE A PROCLAMATION RECOGNIZING THE MONTH OF OCTOBER 2026 AS NATIONAL BREAST CANCER AWARENESS MONTH IN THE CITY

OF SEASIDE
ACTION: APPROVED
D. APPROVE A PROCLAMATION RECOGNIZING OCTOBER 4-10, 2026, AS

FIRE PREVENTION WEEK IN THE CITY OF SEASIDE
ACTION: APPROVED
Packet Page 8
Thursday, September 17, 2026 City Council REGULAR Meeting Page 4 E. APPROVE MAYOR'S YOUTH FUND CONTRIBUTION REQUEST OF
$3,000.00 FROM MONTEREY CONDORS CLUB TO ASSIST WITH THE

COSTS ASSOCIATED WITH THEIR SOCCER PROGRAMS
ACTION: APPROVED
F. APPROVE MAYOR'S YOUTH FUND CONTRIBUTION REQUEST OF
$3,000.00 FROM SEASIDE POLICE ACTIVITIES LEAGUE TO ASSIST

WITH THE COSTS ASSOCIATED WITH EXPENSES RELATED TO THEIR

SPORTS PROGRAMS
The item was pulled for separate consideration. Mayor Pro Tem/Vice Chair Pacheco recused himself due to his service on the Seaside Police Activities League Board and did not participate in consideration of the item.

Assistant City Manager Dan Meewis clarified that the Police Department does not provide dedicated funding to the Police Activities League; however, the Recreation Department provides staffing support for various activities.

RESULT: 4-0-0-1
AYES: Burks, Garcia-Arrazola, Miller, Oglesby
NOES: None
ABSTAIN: None
ABSENT/RECUSED: Pacheco
ACTION: APPROVED
G. APPROVE A FEE WAIVER REQUEST FROM NARCOTICS ANONYMOUS

FOR THE USE OF LAGUNA GRANDE HALL AND KITCHEN FOR A
WOMEN'S BRUNCH ON APRIL 10, 2027, IN THE AMOUNT OF $562.50 ACTION: APPROVED
H. APPROVE A FEE WAIVER REQUEST FROM SEASIDE HIGH SCHOOL FOR

COSTS ASSOCIATED WITH THE ANNUAL HOMECOMING PARADE ON
OCTOBER 23, 2026, IN THE AMOUNT OF $1,112.00
ACTION: APPROVED
I. APPROVE A FEE WAIVER FROM SARANGSAM PRISON MINISTRY FOR THE USE OF THE LAGUNA GRANDE HALL AND KITCHEN FOR THEIR 8TH ANNUAL MUSIC FESTIVAL ON OCTOBER 2, 2026, AND OCTOBER 3, 2026, IN THE AMOUNT OF $3,894.00
ACTION: APPROVED
Packet Page 9
Thursday, September 17, 2026 City Council REGULAR Meeting Page 5 J. APPROVE TAC RECOMMENDATION TO DENY PERMIT PARKING AT 1280

FREMONT
ACTION: APPROVED
K. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

AN OPTION AGREEMENT FOR EV CHARGING SERVICES SITE LICENSE AT PARKING LOT 1 FOR THE PURPOSE OF INSTALLING AND

OPERATING DIRECT CURRENT FAST CHARGING INFRASTRUCTURE
Public comment raised questions regarding electrical capacity, environmental and infrastructure impacts, and future lease terms. Staff clarified that the action authorized an option agreement to support a grant application and that a future site lease would return to Council if the grant is successful.

RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO #26-90
L. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AGREEMENT WITH MONTEREY PENINSULA UNIFIED SCHOOL

DISTRICT FOR STAFFING AT THE AFTER-SCHOOL RECREATION

PROGRAMMING AT THE DUAL LANGUAGE ACADEMY OF THE MONTEREY PENINSULA DURING THE 2026-27 SCHOOL YEAR
ACTION: ADOPTED RESO #26-91
M. ADOPT A RESOLUTION AUTHORIZING THE CLOSURE OF BROADWAY

AVENUE FROM ALHAMBRA TO CALAVERAS STREET FOR THE SEASIDE STARS 5TH ANNUAL UNVEILING EVENT ON SATURDAY, OCTOBER 10, 2026
ACTION: ADOPTED RESO #26-92
N. ADOPT A RESOLUTION AUTHORIZING THE CLOSURE OF YOSEMITE

STREET, BETWEEN BROADWAY AVENUE AND MENDOCINO STREET, ON OCTOBER 3, 2026 FOR SEASIDE FIRE DEPARTMENT'S ANNUAL

COMMUNITY PUBLIC EDUCATION OPEN HOUSE
ACTION: ADOPTED RESO #26-93
Packet Page 10
Thursday, September 17, 2026 City Council REGULAR Meeting Page 6 O. ADOPT A RESOLUTION APPROVING THE SPECIFICATIONS FOR THE TREE MAINTENANCE ON-CALL CONTRACT; AWARDING CONSTRUCTION

CONTRACTS TO THE THREE LOWEST RESPONSIVE, RESPONSIBLE
BIDDERS, WEST COAST ARBORISTS, INC., TOPE'S TREE SERVICE, INC., AND DAVEY TREE EXPERT COMPANY; AND AUTHORIZING AN ANNUAL NOT-TO-EXCEED FUNDING LIMIT OF $100,000.00
ACTION: ADOPTED RESO #26-94
P. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

A MUNICIPAL ADVISOR AGREEMENT WITH NHA ADVISORS, LLC, FOR

MUNICIPAL ADVISORY SERVICES WITH A NOT TO EXCEED AMOUNT OF $31,500.00
ACTION: ADOPTED RESO #26-95
Q. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

AN ENVIRONMENTAL SERVICES COOPERATIVE AGREEMENT WITH THE

DEPARTMENT OF THE ARMY FOR PFAS SOIL TESTING AT CAMPUS
TOWN PHASE 1B AND NURSES' BARRACKS
ACTION: ADOPTED RESO #26-96

10. PUBLIC HEARING
A. ADOPT A RESOLUTION APPROVING THE CONSOLIDATED ANNUAL

PERFORMANCE AND EVALUATION REPORT FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEAR 2025-2026 Administrative Analyst II Haroon Noori presented the CAPER, summarizing accomplishments and expenditures under the City's Community Development Block Grant program. Public comment: None.

RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO #26-97
Packet Page 11
Thursday, September 17, 2026 City Council REGULAR Meeting Page 7 B. AN APPEAL OF THE PLANNING COMMISSION'S APPROVAL OF
ARCHITECTURAL REVIEW APPLICATION NO. AR-2026-002 AND MINOR USE PERMIT NO. MUP-2026-001 FOR A SECOND-STORY ADDITION TO

AN EXISTING ONE-STORY SINGLE-FAMILY DWELLING, INCLUDING A 337 SQUARE FOOT DECK ABOVE A RELOCATED ZERO-LOT-LINE 391 SQUARE FOOT GARAGE AND A 234 SQUARE FOOT BALCONY, LOCATED IN THE SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT (RS-8) AT 1828 YOSEMITE STREET (APN 012-621-034).

Prior to consideration of the appeal, Councilmembers disclosed ex parte communications related to the matter. The Councilmembers making disclosures stated that they had not formed a final opinion and would base their decisions on the testimony and evidence presented during the hearing. Mayor/Chair Oglesby disclosed that he resides within 500 feet of the subject property, recused himself from consideration of the item, and turned the proceedings over to Mayor Pro Tem/Vice Chair Pacheco.

Staff, the appellant, applicant/property owner, and members of the public provided testimony. Council discussion focused on neighborhood compatibility, privacy, the zero-lot-line condition, project design, and documentation between neighboring property owners. On motion duly made and seconded, the Council approved the recommendation with two additional conditions addressing privacy screening and legal documentation as described by the City Attorney. The City Attorney characterized the appeal as partially granted and partially denied.

RESULT: 4-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Pacheco
NOES: None
ABSTAIN: None
ABSENT/RECUSED: Oglesby
ACTION: APPROVED WITH MODIFICATIONS RESO # 26-98
C. AN ORDINANCE TO AMEND CHAPTER 17.40 OF THE SEASIDE

MUNICIPAL CODE TO ALLOW ELECTRONIC MESSAGE DISPLAY SIGNS

FOR PLACES OF WORSHIP AND PUBLIC OR PRIVATE MEETING
FACILITIES ON LOCAL STREETS. THIS ACTION IS NOT SUBJECT TO THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15061(B)(3) OF THE CEQA GUIDELINES (FIRST READING -

ROLL CALL VOTE)
Housing and Planning Manager Andrew Myrick presented proposed amendments to the City's sign regulations. Council discussion addressed allowable hours, brightness, message changes, neighborhood impacts, equitable treatment of uses, and enforcement. Following public comment and Council deliberation, a motion was made.

Packet Page 12
Thursday, September 17, 2026 City Council REGULAR Meeting Page 8 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 first reading of the ordinance as presented.

RESULT: 4-1-0-0
AYES: Burks, Garcia-Arrazola, Oglesby, Pacheco
NOES: Miller
ABSTAIN: None
ABSENT: None
ACTION: Pass to print 2nd Reading at the next meeting on October 1, 2026.

The Council also approved extending the meeting past 10:30 p.m. by a 3-1 vote, with council member Miller absent at the time of the vote.

11. BUSINESS ITEMS
A. RECEIVE A PRESENTATION ON THE SAN PABLO PEDESTRIAN BRIDGE

TYPE SELECTION REPORT AND APPROVE THE CONCEPT DESIGN FOR

THE PROJECT
Public Works Director/City Engineer Thomas Korman presented the bridge type selection report, project history, design alternatives, funding, schedule, structural considerations, and aesthetic options. Council discussed the long-term character of the bridge, neighborhood context, decorative elements, costs and available funding.

On motion duly made and seconded, the City Council approved the Keystone bridge concept for the San Pablo Pedestrian Bridge project.

ACTION: APPROVED – KEYSTONE BRIDGE CONCEPT

12. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
Councilmember Garcia-Arrazola requested a follow-up discussion regarding the status of the previously requested wage theft ordinance. Mayor Oglesby requested future agenda discussion regarding reconsideration of the City's PLA adoption, review of the City's support for a TAMC Highway 68 grant, and consideration of an urgency ordinance related to data centers.

B. FOLLOW UP ON PREVIOUS REQUESTS
None.

Packet Page 13
Thursday, September 17, 2026 City Council REGULAR Meeting Page 9

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

AND REPORTS ON COMMITTEE ASSIGNMENTS
Reports and comments were provided, including committee and community-event updates and recognition of community members and City staff.

14. CLOSED SESSION
The Council met with legal counsel regarding one matter of existing litigation, LandWatch et al. v. City of Seaside, Monterey County Superior Court Case No. 24CV00002483, and one matter of potential litigation concerning correspondence regarding enforcement of the City's temporary sign regulations and a written notice of intent to seek federal injunctive relief. Councilmember Miller did not participate in the potential-litigation discussion and did not attend Closed Session. Upon return to open session, the City Attorney reported that Council received a briefing on the existing litigation with nothing to report and provided direction to legal counsel on the potential litigation with nothing further to report.

A. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE 54957.6
This item was removed from the agenda.

B. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9 ONE MATTER OF EXISTING LITIGATION
Nothing to report.

C. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(2)
Nothing to report.

15. ADJOURNMENT
With no further business, the meeting was adjourned at approximately 12:13 a.m.

The next regular meeting was announced for October 1, 2026 at 5:00 p.m.

Respectfully submitted,
____________________________ _________________________
Greg McDanel, Ex Officio City Clerk Ian N. Oglesby, Mayor Packet Page 14

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.B.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Corryn Bennett, Accountant II
DATE: October 1, 2026
SUBJECT: APPROVE AND FILE CITY CHECKS

RECOMMENDATION
Approve and file the accounts payable and wired payments made during the period of July 11, 2026 through August 07, 2026, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period of July 23, 2026 through August 06, 2026.

Total Accounts Payable and Payroll for the above referenced period is:

July 11, 2026 through July 24, 2026 = $6,197,839.64
July 25, 2026 through August 07, 2026 = $1,548,534.95

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:
• $50,000.00 to BOYS & GIRLS CLUB OF MONTEREY COUNTY for FY2024/2025 Packet Page 15

Item No. 8.B. Page 2 of 4
CDBG reimbursement for Seaside Clubhouse exterior parking lot improvement project.
• $65,678.02 to CALIFORNIA-AMERICAN WATER for Multiple City water accounts under Cal-Am Water for the period of 06/23/26-07/23/26. Service addresses include city buildings, parks, fire hydrants, irrigation stations, and city affordable housing.
• $38,875.00 to COMMUNITY HUMAN SERVICES for Annual Allocation for FY 2026- 27 CHS Joint Power Association.
• $32,049.70 to COUNTY OF MONTEREY for City's portion of FY 2026-27 LAFCO Budget Allocation.
• $14,920.50 to ATKINSON, ANDELSON, LOYA, RUUD & ROMO for Professional legal services for labor negotiations for the period of June 2026. • $19,616.27 to GEOSYNTEC CONSULTANTS, INC. for Campus Town PFAS testing services through 05/17/2026.
• $28,384.63 to GEOSYNTEC CONSULTANTS, INC. for Invoices for Campus Town PFAS testing services through 06/28/2026 and 08/26/2026. • $11,063.44 to HOME DEPOT CREDIT SERVICES for Invoices for various supplies for June 2026.
• $11,732.50 to HOPE SERVICES for Maintenance services for the period of June 2026.
• $35,142.06 to MEYERS NAVE, A PROFESSIONAL CORPORATION for Professional legal services for Seaside Highlands Litigation through the period of June 2026. • $42,213.01 to MONTEREY CO. CONVENTION & VISITOR'S BUREAU for TID (Tourism Improvement District) remittance for the reporting period of May 2026 for the 13 Seaside motels/hotels.
• $43,325.89 to MONTEREY CO. SHERIFF-CORONER for Criminial Justice Information System for April 1, 2026 through June 30, 2026. • $62,482.97 to WALLACE GROUP for May 2026 invoice for SSMP prof svcs, and June 2026 invoice for SCSD on-call flow monitoring.
• $72,251.77 to PACIFIC GAS & ELECTRIC for Collective accts for street lights, highway lighting, park lights and city office buildings. Service for the statement period of 05/23/26-06/23/26.
• $30,016.30 to SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS FOR MONTEREY COUNTY, INC. for Animal care services special humane case for the Police Department in June 2026.
• $15,119.50 to SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS FOR MONTEREY COUNTY, INC. for Animal care services special humane case for the Police Department from 07/01/26-07/14/2026.
• $10,515.00 to TRANSPORTATION AGENCY FOR MONTEREY CO. for FY 2026-27 contribution for congestion management and traffic monitoring. • $68,515.51 to U.S. BANK-CALCARD for City of Seaside purchase card transactions for the billing period of June 2026.
• $27,197.85 to HARRIS & ASSOCIATES, INC. for Campus Town Phase 2 Demolition services for the period of June 2026.

Packet Page 16

Item No. 8.B. Page 3 of 4
• $51,920.00 to VILLAGE PROJECT INC. for BSCC-Prop 47 Grant invoices for the period of May 2026.
• $15,000.00 to DON CHAPIN COMPANY, INC. for Payment for on-call construction services for Lincoln Cunningham Park rubberized play surfacing. • $19,385.00 to DAVID OLSON, INC for Additional leak repair for the dehumidifier at Pattullo Swim Center.
• $279,603.16 to MARINA COAST WATER DISTRICT for Recycled water meter services for the period of June 2026.
• $91,626.80 to AXON ENTERPRISE, INC. for Bundle for officer safety plan 10 - supplies for Police Department.
• $10,231.12 to TRAFFIC AND PARKING CONTROL CO., INC for Purchase of flashing stop sign for Noche Buena and Plumas Ave.
• $3,671,740.00 to CALIFORNIA JOINT POWERS INSURANCE AUTHORITY for Fiscal year 2026-27 annual worker's compensation contribution/liability program. • $31,403.00 to CALIFORNIA JOINT POWERS INSURANCE AUTHORITY for FY 26- 27 liability and worker's compensation premium for the Seaside County Sanitation District.
• $92,413.49 to PUEBLO CONSTRUCTION INC. for Professional construction services for finance trailer remodel and bathroom installation through 07/03/2026.
• $77,212.36 to PUEBLO CONSTRUCTION INC. for Professional construction services for improvements at 1380 Canyon del Rey through June 2026. • $12,500.00 to KIMLEY-HORN AND ASSOCIATES, INC. for June 2026 professional on-call services for San Pablo Bridge.
• $11,517.50 to KIMLEY-HORN AND ASSOCIATES, INC. for Professional services for the Campus Town Development project for the periods of April-June 2026. • $249,775.00 to U.S. BANK ST. PAUL for City of Seaside joint powers financing authority lease revenue bonds (2006 Bayonet and Blackhorse Golf Course project).
• $10,519.50 to DENISE DUFFY & ASSOCIATES, INC. for FY25-26 invoices for General Jim Moore well site professional services.
• $10,103.92 to STURDY OIL COMPANY for 1,557 gallons of regular gas (ethanol) and 477 gallons of clear diesel delivered to the public works department on 07/16/2026.
• $22,531.13 to ENTERPRISE FM TRUST for Monthly payment for (21) leased City vehicles for the period of July 2026.
• $15,703.75 to RRM DESIGN GROUP for Professional architectural and engineering services for Fire Station 2 for the period of June 2026.

The Net Payroll and Payroll benefits total was $1,974,313.38.

The remaining checks, totaling $413,506.31, include payments to vendors for operating expenditures.

Packet Page 17

Item No. 8.B. Page 4 of 4
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 18

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.C.

TO: Successor Agency to the Redevelopment Agency of the City of Seaside FROM: Greg McDanel, City Manager
BY: Corryn Bennett, Accountant II
DATE: October 1, 2026
SUBJECT: APPROVE AND FILE SUCCESSOR AGENCY CHECKS

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.

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 19

Item No. 8.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 20

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.D.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Dan Meewis, Assistant City Manager
DATE: October 1, 2026
SUBJECT: APPROVE A PROCLAMATION RECOGNIZING OCTOBER 18-24, 2026, AS FREEDOM FROM WORKPLACE BULLYING WEEK

RECOMMENDATION
Approve proclamation.

BACKGROUND
The City of Seaside is committed to fostering a safe, inclusive, and respectful work environment for all employees and community members. Workplace bullying is a serious issue that negatively impacts employee well-being, productivity, and organizational culture.

In recognition of this, the California Healthy Workplace Advocates and the Workplace Bullying Institute have promoted Freedom from Workplace Bullying Week to encourage public and organizational awareness of the detrimental impacts of bullying in the workplace.

In past years, the City of Seaside has joined other municipalities in issuing proclamations to highlight this observance, thereby reaffirming the City’s commitment to maintaining a supportive and abuse-free environment.

Discussion
Workplace bullying is defined as repeated, health-harming mistreatment of one or more persons by one or more perpetrators. It includes behaviors such as verbal abuse, offensive conduct, or work interference that undermines productivity and dignity.

Packet Page 21

Item No. 8.D. Page 2 of 2
Recognizing Freedom from Workplace Bullying Week aligns with the City’s organizational values of respect, equity, and integrity. By issuing this proclamation, the City Council underscores its ongoing commitment to providing a healthy and productive workplace and encourages both City employees and the broader community to stand against workplace bullying.

Issuing this proclamation reinforces the City’s dedication to fostering a safe, healthy, and respectful workplace and community. Staff recommends approval of the proclamation.

FISCAL IMPACT
None.

STRATEGIC PRIORITY
Effective Accessible Governance

ATTACHMENTS

1. 2026 Workplace Bullying Week Proclamation
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 22
City of Seaside

PROCLAMATION
Freedom from Workplace Bullying Week
Commemorative Observance
WHEREAS, the City of Seaside has an interest in promoting the social and economic wellbeing of its employees and citizens; and WHEREAS, that well-being depends upon the existence of healthy and productive employees working in safe and abuse-free environments; and
WHEREAS, bullying is a systematic campaign of interpersonal destruction that jeopardizes employee health, shatters careers, and strains families; and WHEREAS, bullying is a non-physical, non-lethal form of workplace violence that is abusive, causing psychological injuries and stress-related diseases; and WHEREAS, Freedom from Workplace Bullying Week provides an opportunity to break through the silence and secrecy, and to promote awareness, support, and solutions; and WHEREAS, the City of Seaside reaffirms that everyone deserves a safe, healthy, and dignified workplace.

NOW THEREFORE, BE IT PROCLAIMED, that I, The Honorable Ian N. Oglesby, Mayor of the City of Seaside, on behalf of the City Council, do hereby proclaim October 18-24, 2026, as Freedom from Workplace Bullying Week and commend the California Healthy Workplace Advocates and the Workplace Bullying Institute, which raise awareness of the impacts of, and solutions for, workplace bullying in California and the U.S. and encourage citizens to mark this week with special activities and programs to break through the shame and silence enshrouding adult bullying at work.

Ian N. Oglesby, Mayor
October 1, 2026
Packet Page 23

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.E.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Melissa Broadston, ESCA Program Manager
DATE: October 1, 2026
SUBJECT: APPROVE ENVIRONMENTAL SERVICES COOPERATIVE

AGREEMENT (ESCA) REPORT COVERING ACTIVITIES FROM
JULY THROUGH SEPTEMBER 2026

RECOMMENDATION
Approve Environmental Services Cooperative Agreement (ESCA) report covering activities from July through September 2026.

BACKGROUND
The Fort Ord Reuse Authority (FORA) closed all operations on June 30, 2020. Prior to sunset, the City of Seaside and FORA entered into a Memorandum of Agreement nominating Seaside as FORA’s Environmental Services Cooperative Agreement (ESCA) Successor-In-Interest (Successor). Seaside is now responsible for the remaining LongTerm Obligations (LTO) management responsibilities related to U.S. Army (Army) Munitions and Explosives of Concern (MEC) on ESCA property until June 30, 2028. A summary of the ESCA remediation program milestones and activities is provided below.

The Army requires a quarterly report after review and acceptance by the City Council.

FORA ESCA Remediation Program Background:

In 2007, the Army and FORA entered into an Army-funded ESCA for the removal of remnant MEC on 3,340 acres of the former Fort Ord. Under the ESCA terms, the Army awarded FORA approximately $98 million to perform Comprehensive Environmental Response Compensation and Liability Act (CERCLA) MEC cleanup on those parcels.

FORA also entered into the Administrative Order on Consent (AOC) with the United States Environmental Protection Agency (EPA) and California Department of Toxic Substance Control (DTSC) (collectively referred to as regulatory agencies), defining FORA’s contractual conditions to complete the Army remediation obligations for the Packet Page 24

Item No. 8.E. Page 2 of 4
“ESCA parcels.” FORA received ESCA property ownership after EPA approval and gubernatorial concurrence under a Finding of Suitability for Early Transfer in 2009.

The ESCA parcels received Records of Decision (ROD) documenting controls required to protect public health and safety. The Land Use Control Implementation Plan (LUCIP) / Operation and Maintenance Plan (OMP) outlines the implementation, operation and maintenance controls tailored to individual site conditions and historic MEC use. The final ESCA LUCIP/OMP documents were accepted by the Army, DTSC, and EPA in February 2019. These ESCA parcels received EPA Remedial Action Completion letters and EPA issued a site-wide ESCA remedial completion certificate in April 2020.

Remedial Action Completion initiated the Army's long-term obligations on ESCA properties. To complete the ESCA and AOC obligations, the Successor, Seaside, is required to perform all tasks until June 30, 2028, when the grant ends. These include site monitoring, ensuring compliance with the land use controls for ESCA parcels by land-holding jurisdictions, and mitigation, monitoring, and reporting for any potential or actual munitions and explosives of concern. Finally, there are tasks regarding public information and outreach for land use. Should any instances of MEC occur, the contractors of Arcadis, Inc., AHTNA, Weston Solutions, Inc. and Westcliffe Engineers, Inc. will assist with providing LTO support services.

ESCA QUARTERLY UPDATE
Jurisdiction Coordination
ESCA property could not be transferred to the designated recipients until the Army recorded deed modifications and issued CERCLA Warranties/Deed Amendments. These documents were recorded/completed in June 2020. All ESCA properties have been transferred to the designated recipients.

There are a few remaining property transfer tasks. Work continues to transfer the last two Economic Development Conveyance parcels from Army ownership to the designated recipient: Monterey-Salinas Transit (Parcels L2.3 and L2.4.1). Seaside, as successor to the Fort Ord Reuse Authority, will receive these two parcels, then transfer to Monterey Salinas Transit. This transfer will also include a Covenant to Restrict the Use of Property for both of these parcels. Transfer is currently projected for late 2026.

ESCA staff continues to host LTO Management, and Property, Planning, Police, and Property Manager quarterly meetings with all land-holding institutions and the Army.

These meetings review projects and activities affected by LUCIP requirements for their properties. A quarterly meeting was held on August 5, 2026.

ESCA assists with LUCIP-required documentation. ESCA assisted with the development of a Construction Support Plan for the excavation work on ESCA land related to the Verizon Antenna Relocation on San Pablo. ESCA also assisted with documentation for several small (less than 10 cubic yards in locations with a low probability to encounter munitions) projects in ESCA land.

Given the history of the former Fort Ord as an Army base, munitions may be Packet Page 25

Item No. 8.E. Page 3 of 4
encountered during reuse of the property. ESCA outreach specific to the munitions safety awareness class at FortOrdSafety.com serves as an important resource to remind community members who might discover suspicious objects to follow the 3Rs of explosives safety – Recognize, Retreat, and Report. ESCA is responsible for maintenance and participant tracking for the English and Spanish versions of the free online training class at FortOrdSafety.com. The training at FortOrdSafety.com supplements and complements the Army’s on-site munitions safety training program as an important community asset for the safe reuse of the lands of the former Fort Ord.

Over 450 individuals completed munitions safety training during this quarter, including most staff members of the Seaside Public Works Department.

The ESCA team continues to conduct weekly patrols of Seaside’s ESCA properties and biweekly patrols of other ESCA properties. ESCA patrols also included debris removal and identification of erosion in the borderlands fuel break roads.

ESCA provided program updates at the Army’s BRAC Cleanup Team meetings dedicated to munitions on July 9 and September 9, 2026. ESCA also participated in the Army’s Community Involvement Workshop (July 25) and Army Technical Review Committee (July 28). ESCA also provided a site tour and completed a site questionnaire to support the Army's CERCLA Five-Year Review report.

NEXT QUARTER GOALS
During the next quarter, the ESCA Program will be focusing on the following tasks. • ESCA will continue coordination supporting completion of property transfers. • ESCA will also continue coordination with jurisdictions and extensive public outreach on the Munitions Recognition and Safety Training which is available at FortOrdSafety.com. ESCA developed a draft manual that details how this site works. The final manual will be a part of the turn-over documentation when ESCA sunsets June 30, 2028.
• ESCA will continue weekly inspection and monitoring of activities on ESCA lands. • ESCA will continue follow-up of incidents of concern. • ESCA will offer “refresher” Read Your Deed training to all jurisdictions and property owners.
• ESCA will continue assistance and coordination with munitions documentation such as After Action Reports, Construction Support Plans, and notifications for projects located in ESCA properties with soil disturbances of less than 10 cubic yards with low probability of encountering munitions.
• ESCA will assist other jurisdictions and institutions with questions related to ESCA land use controls and assist with the development and completion of the next Annual Land Use Control report, which is due December 1. • ESCA will participate in the Army’s remaining munitions response 2026 BRAC Cleanup team meetings.
• ESCA will participate in the following near-term 2027 outreach events: Army Technical Review Committee (February), Army Community Involvement Packet Page 26

Item No. 8.E. Page 4 of 4
Workshop (February), and Army’s munitions response 2027 BRAC Cleanup team meetings.

FISCAL IMPACT
None. The actual cost to Seaside of these Army obligations will be fully reimbursed.

STRATEGIC PRIORITY
Not Applicable

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 27

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.F.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Dan Meewis, Assistant City Manager
Kee Hyon Higgins, Recreation Superintendent
DATE: October 1, 2026
SUBJECT: APPROVE A FEE WAIVER REQUEST FROM MONTEREY COUNTY

BRANCH OF NAACP FOR THE USE OF LAGUNA GRANDE HALL
AND KITCHEN FOR THEIR EDUCATION FORUMS "MONTEREY
COUNTY CLOSING THE GAP ON EDUCATIONAL INEQUALITIES"
ON NOVEMBER 19, 2026, AND DECEMBER 17, 2026, IN THE
AMOUNT OF $450.00

RECOMMENDATION
Approve the fee waiver request.

BACKGROUND
The Monterey Peninsula NAACP is a non-profit organization, and they are requesting a fee waiver to help cover the cost associated with their Education Forums "Monterey County Closing the Gap on Educational Inequalities." The first forum is on Thursday, November 19, 2026, from 3:30 p.m. to 7:30 p.m. in the Laguna Grande Hall at the Oldemeyer Center. The second Forum is on Thursday, December 17, 2026, from 3:30 p.m. to 7:30 p.m. in the Laguna Grande Hall at the Oldemeyer Center. The NAACP Monterey County Branch actively works to close the gap on educational inequalities by targeting systemic discrimination, advocating for funding equity, and providing direct community resources.

Based on the information in the application, the request meets the following criteria for the Fee Waiver Request Policy:
• The Monterey Peninsula NAACP is a non-profit organization based in Seaside. • 60% of the members or participants reside in Seaside.

Packet Page 28

Item No. 8.F. Page 2 of 3
• The organization does provide an in-kind service in the community for people in need.

The last fee waiver request for the Monterey Peninsula NAACP was approved at the March 5, 2026, City Council meeting. The Monterey Peninsula NAACP has submitted Fee Waiver requests, and they have been approved since 2017.

Staff recommends that the fees be waived for the rental cost of the facilities and that the organization provide liability coverage and pay only the non-refundable portion of the deposits totaling $196.50, which goes into the building maintenance fund.

FISCAL IMPACT
The approximate fees which are applicable to this request are:

Laguna Grande Hall & Kitchen Fee 4 Hours @ $56.25 (11/19/2026) $225.00 Laguna Grande Hall & Kitchen Fee 4 Hours @ $56.25 (12/17/2026) $225.00 Non-Refundable Deposit (11/19/26) $98.25
Non-Refundable Deposit (12/17/2026) $98.25
Total Fee Wavier Amount Requested $646.50
TOTAL Fee Wavier amount Recommended to be waived $450.00 Should the City Council approve the request with the staff recommendation to waive all rental fees but require payment for the non-refundable deposits only, the fiscal impact is $450.00.

STRATEGIC PRIORITY
Diverse and Inclusive Community

ATTACHMENTS

1. NAACP Education Forum Fee Wavier Request 2026

2. NAACP 501(c)(3) lookup information
Reviewed for Submission to the City Council by:

Packet Page 29

Item No. 8.F. Page 3 of 3
____________________________________
Greg McDanel, City Manager
Packet Page 30
Packet Page 31
Packet Page 32
Packet Page 33
Packet Page 34
Packet Page 35

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.G.

THE USE OF SOPER FIELD AND CUTINO FIELD FROM AUGUST
4, 2026 TO OCTOBER 27, 2026, IN THE AMOUNT OF $3,132.00

RECOMMENDATION
Approve the fee waiver request.

BACKGROUND
The Central Coast Bombers are requesting a Fee Waiver to use Soper Field from August 2026 to October 2026 on Tuesday and Thursday from 5:00 p.m. to 7:00 p.m. and Cutino Field from August 2026 to October 2026 on Tuesday from 7:15 p.m. to 9:15 p.m. They would keep up with the field maintenance and ensure that the parks are clean after each use. They would rake, drag, spike and clay batter boxes as needed.

Central Coast Bombers is a local Seaside organization serving youth that is dedicated to providing low or no-cost programs for its participants and their families. Ninety percent of their youth are local Seaside Pony Baseball players and the coaches are from Seaside Pony Baseball.

Staff recommends that the fees be waived for the rental cost of Soper Field and Cutino Field and that the organization provide liability coverage and pay only the lighting fee at Cutino Field of $1,755.00.

The City Council has approved a fee waiver request from the Central Coast Bombers since 2018.

Packet Page 36

Item No. 8.G. Page 2 of 2

FISCAL IMPACT
The approximate fees which are applicable to this request are:

Soper Field & Cutino Field Fees $3,132.00
Lighting Fee at Cutino Field $1.755.00
TOTAL $4,887.00
Should the City Council approve the request with the staff recommendation to waive all rental fees but require payment for the lighting fee at Cutino Field only, the fiscal impact is $3,132.00.

STRATEGIC PRIORITY
Diverse and Inclusive Community

ATTACHMENTS

1. Central Coast Bombers - 501(C)(3)

2. Central Coast Bombers - Fee Waiver Request

3. Central Coast Bombers - Faciltiy Field Use Application Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 37
Packet Page 38
Packet Page 39
Packet Page 40
Packet Page 41
Packet Page 42
Packet Page 43
Packet Page 44

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.H.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Andreas Baer, Assistant Public Works Director
DATE: October 1, 2026
SUBJECT: ADOPT A RESOLUTION INCREASING THE COURTHOUSE
PROJECT BUDGET TO $1,347,921.07 AND APPROPRIATING
$60,099.03 FROM RESERVES FOR DIVARTY STREET

IMPROVEMENTS

RECOMMENDATION
Adopt a resolution increasing the Courthouse Project budget by $197,921.07, from $1,150,000.00 to $1,347,921.07, and appropriating $60,099.03 from reserves to fund the City’s remaining share of the Divarty Street infrastructure and utility undergrounding improvements.

BACKGROUND
The City owned a vacant parcel of land south of Divarty Street between 1st Avenue and 2nd Avenue. On September 21, 2023, the City Council approved a draft property acquisition agreement between the City of Seaside and the State of California on behalf of the Judicial Council of California to transfer a 5.0-acre portion of the parcel to the Judicial Council for construction of the Monterey Family Justice Center.

The infrastructure improvements agreement portion of the property acquisition agreement requires the City of Seaside to install potable, recycled, and fire water; sanitary sewer; electric; and communications service to the Courthouse site. The agreement also requires the City to underground the overhead dry utilities (electric, phone, cable, and fiber) in front of the Courthouse site and across 2nd Avenue.

For efficiency and cost effectiveness, as part of the Dunes Phase 3 project, Marina Community Partners, LLC (MCP), an entity owned by Shea Homes LP, was asked to designed and constructed the undergrounding of overhead utilities along 1st Street Packet Page 45

Item No. 8.H. Page 2 of 2
from 8th Avenue to Divarty Street, and performed roadway and utility work along Divarty Street to satisfy the improvements agreement between the Courthouse and City of Seaside. The City established a reimbursement agreement with MCP for their work.

The amount budgeted to reimburse MCP was $1,150,000.00. The completed work exceeded the budgeted amount by $197,921.07 bringing the total cost to $1,347,921.07.

Whitson Engineers, a qualified independet third party, certified that MCP billing and actual work completed was correct, complete and per plan. City staff have reviewed the completed work and invoices and recommend that additional funding be for the Divarty St. work and that the budget be increased to $1,347,921.07 to allow for the reimbursement.

FISCAL IMPACT
The total cost reimbursable amount owed to MCP is $1,347,921.07.The Judicial Council's portion of the MCP reimbursable expenses came to $1,028,678.95, However, after administrative costs the total reimbursement from the Judicial Council will be $1,137,822.04, leaving the City responsible for $210,099.03. The City had originally approved $150,000.00 in the FY26/27 budget which means the utility undergrounding Divarty St. improvements work that the City is responsible for was underfunded by $60,099.03. Staff recommends that the City Council fund the balance of the Undergrounding work along Divarty St. from reserve funds, and direct the Finance Director to issue all bills and make all necessary adjustment and payments.

STRATEGIC PRIORITY
Vibrant Local Economy, Enhanced Physical Infrastructure & Abundant Water Supply

ATTACHMENTS

1. Exhibit 1 - Reimbursement Agreement

2. Exhibits A-C

3. Whitson Engineers Certification

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

____________________________________
Greg McDanel, City Manager
Packet Page 46
19982384.7

AGREEMENT FOR REIMBURSEMENT FOR CONSTRUCTION OF IMPROVEMENTS

ALONG DIVARTY STREET AND COOPERATION IN DEVELOPMENT ALONG DIVARTY STREET
This AGREEMENT ("Agreement") is made and entered into as of [Date] by and between MARINA COMMUNITY PARTNERS, LLC, a Delaware limited liability company ("MCP") and the CITY OF SEASIDE (the "City"), and collectively herein, the "Parties" RECITALS:

WHEREAS, MCP owns that certain property fronting Divarty Street on the North side of that street between 1st Avenue and 2nd Avenue within the jurisdictional boundaries of the City of Marina adjacent to the Northern boundary of the City of Seaside as depicted in EXHIBIT A (the "MCP Property"); and
WHEREAS MCP is in the process of developing the Dunes on Monterey Project, a 358 acre development within the City of Marina consisting residential, retail, office, multiple use, and park uses (the "Dunes Project") which extends to the MCP Property; and WHEREAS, the City owns that certain property fronting Divarty Street on the South side of that street between 1st Avenue and 2nd Avenue with the Assessor's Parcel Number 031-151- 013-000 as depicted in EXHIBIT A (the "City Property"); and WHEREAS, the New Fort Ord Courthouse Project (the "Courthouse Project") is a proposed 83,000-square-foot, three-story development on a five-acre portion of the City Property close to the intersection of 2nd Avenue and Divarty Street to be performed, operated, and occupied by the Judicial Council of California (“Judicial Council”) independent of and separate from this Agreement, and the Parties acknowledge and agree that the Judicial Council is not party to, nor responsible for any portion of, this Agreement between MCP and the City; and
WHEREAS the Parties desire to underground certain overhead dry utility lines operated by utility companies, including but not limited to Pacific Gas and Electric Company, AT&T Corporation, and Comcast Corporation, that currently run parallel to Divarty Street between 1st Avenue and 2nd Avenue, as depicted in EXHIBIT B; and
WHEREAS the Parties have agreed that the costs of undergrounding overhead dry utilities shall be shared pursuant to the terms of this Agreement; and WHEREAS the Parties anticipate that development and operation of the Courthouse Project may necessitate future improvements to Divarty Street and the Southern frontage of Divarty Street to accommodate future use of the Courthouse Project and greater traffic from and/or ingress and egress to the Courthouse Project, including, but not limited to, design changes and construction changes requested for Divarty Street in order to accommodate traffic, sanitary sewer improvements in Divarty Street required to serve the Courthouse Project, domestic water improvements in Divarty Street required to serve the Courthouse Project, and sidewalk and landscaping improvements along the Southern frontage of Divarty Street; and WHEREAS the Parties agree that MCP shall not be financially responsible for any improvements to Divarty Street required to accommodate future use of the Courthouse Project and greater traffic and/or ingress and egress to the Courthouse Project.

EXHIBIT 1
Packet Page 47
19982384.7

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL AGREEMENTS,

COVENANTS, AND CONDITIONS SET FORTH HEREIN, THE PARTIES HERETO DO AGREE AS FOLLOWS.

ARTICLE I: UNDERGROUNDING

1.1 Responsibility for Undergrounding. MCP shall, pursuant to the cost allocations and rights of reimbursement set forth in Article II of this Agreement, construct all of the improvements shown and delineated upon the plans contained in EXHIBIT B, collectively, the "Divarty Street Undergrounding."

1.2 Standards for Divarty Street Undergrounding. The Divarty Street Undergrounding shall be constructed by a contractor licensed by the State of California to construct such improvements. The Divarty Street Undergrounding shall be constructed in compliance with all State and local laws and regulations applicable thereto and the terms and conditions set forth herein.

1.3 Design Criteria and Requirements for Divarty Street Undergrounding. The Divarty Street Undergrounding shall be constructed in conformance with applicable standards and requirements of California Public Utilities Commission Rule 20, the applicable rules and regulations of the Pacific Gas and Electric Company on file with the California Public Utilities Commission, and any and all applicable requirements of the City of Marina City Engineer and/or the City of Seaside City Engineer.

1.4 Existing Infrastructure on City Property. The Parties agree that MCP shall not be responsible for removing or relocating any existing utility infrastructure on the City Property, including, but not limited to, existing overhead utility poles and existing overhead utility lines, unless removal or relocation of such existing utility infrastructure is necessary to accomplish the Divarty Street Undergrounding.

ARTICLE II: PAYMENT FOR UNDERGROUNDING

2.1 Estimated Costs of Improvements. The total cost of construction and completion of the Divarty Street Undergrounding is estimated to be the amount shown in EXHIBIT B. These estimates shall not be construed as a maximum limitation on cost-sharing and reimbursement obligations, but are merely for the convenience of the Parties.

2.2 Cost Allocation for Divarty Street Undergrounding. MCP and the City shall share the cost for the Divarty Street Undergrounding by each paying an allocated portion of the Divarty Street Undergrounding Costs in accordance with the following terms and conditions:

2.2.1 The "Divarty Street Undergrounding Costs" shall include all actual costs reasonably necessary to complete the Divarty Street Undergrounding, including, but not limited to, costs associated with construction, preliminary design and technical memorandum, final design, engineering, testing, geotechnical, surveying, bidding, contracting, contract administration, applications submitted to the City or the City of Marina and fees for review of any such applications, permit fees, and costs to modify any existing City of Marina approvals necessary to allow for the Divarty Street Undergrounding. The Divarty Street Undergrounding Costs shall also include any and all fees necessary to facilitate the Divarty Street Undergrounding as required by any utility companies, including, but not limited to, Pacific Gas and Electric Company, AT&T Corporation, and Comcast Corporation. The Divarty Street Packet Page 48
19982384.7
Undergrounding Costs shall also include an MCP overhead cost equivalent to 15 percent of all other costs described in this section.

2.2.2 The City shall be responsible for one hundred percent (100%) of the Divarty Street Undergrounding Costs associated with the portion of the Divarty Street Undergrounding occurring along the portion of Divarty Street fronted by the Courthouse Project.

The City shall be responsible for fifty percent (50%) of the Divarty Street Undergrounding Costs associated with the portion of the Divarty Street Undergrounding occurring along the portion of Divarty Street fronted by the remainder of the City Property. The proportional allocation of the Divarty Street Undergrounding Costs for the City shall be as specified in EXHIBIT B. In the event of any conflict between the written provisions of this Agreement and EXHIBIT B, EXHIBIT B shall control.

2.2.3 A reasonable estimate of the proportional costs of the Divarty Street Undergrounding allocated to the City is included in EXHIBIT B. However, the costs for the Divarty Street Undergrounding that are subject to the allocation and reimbursement provisions under this Agreement shall be equivalent to the Divarty Street Undergrounding Costs actually and reasonably incurred, as identified in section 2.2.1 of this Agreement.

2.2.4 MCP shall pay all Divarty Street Undergrounding Costs as they are incurred. The City shall pay its allocation of the Divarty Street Undergrounding Costs within thirty (30) days of the date upon which MCP sends the City an invoice ("Invoice Submittal") for its share of the Divarty Street Undergrounding Costs. All such invoices shall be sent with supporting documentation, including any relevant invoices from vendors, contractors, suppliers, and/or other consultants, or any other relevant receipts for payments made.

2.2.5 If the City disputes that a particular invoice is a cost reasonably necessary to complete the Divarty Street Undergrounding as contemplated under section 2.2.1, it shall provide notice of its dispute to MCP within fifteen (15) days of the Invoice Submittal. If notice of dispute is given, the City shall not be required to pay the invoice within thirty (30) days of the Invoice Submittal, and the Parties shall collaborate in good faith to reach an agreement on the payment of the invoice acceptable to both Parties. Once such an agreement is reached, the City shall pay its allocation of the Divarty Street Undergrounding Costs within thirty (30) days of the date of agreement. If notice of dispute is given, MCP may, at its sole option, elect to pause its work on the Divarty Street Undergrounding until the Parties reach an agreement on the payment of the invoice. The costs to any such pause in work shall be borne by the City.

2.2.6 Following the completion of the Divarty Street Undergrounding, MCP shall provide the City with a final accounting of all of the Divarty Street Undergrounding Costs and the allocation of the Divarty Street Undergrounding Costs between the Parties. In the event that final accounting shows a balance due to MCP from the City, the City shall provide final payment of any outstanding amount of the City's allocation of the Divarty Street Undergrounding Costs to MCP within thirty (30) days of Invoice Submittal of such final accounting.

2.2.7 If the City fails to make any payment for: (1) undisputed amounts due to MCP for the Divarty Street Undergrounding Costs required under sections 2.2.4, or 2.2.6; or (2) agreed upon payments acceptable to both parties under section 2.2.5, within the thirty (30) day period set forth under each respective section, the City shall immediately incur a late penalty equivalent to fifteen (15) percent of the outstanding payment. If City has not paid the outstanding payment and incurred late penalty within one hundred and eighty (180) days of the end of the thirty (30) day period set forth under each respective section, the City shall Packet Page 49
19982384.7
immediately incur an additional late penalty equivalent to fifteen (15) percent of the outstanding payment.

ARTICLE III: UTILITY SERVICE FROM THE DIVARTY STREET UNDERGROUNDING

3.1 Cooperation to Identify Tie-In. The Parties will cooperate in good faith with each other, and with utility companies, as needed, to identify a tie-in point for the Courthouse Project on the portion of the Divarty Street Undergrounding that fronts the City Property.

3.1.1 As used in this Agreement, a "tie-in point" shall mean a location on any utility equipment installed as part of the Divarty Street Undergrounding where other improvements or equipment can be constructed for the purposes of providing utility service to a specified property.

3.1.2 As used in this Agreement, "utility equipment" shall mean any improvements, including, but not limited to, wires, conductors, transformers, insulators, cutouts, switches, communication circuits, appliances, attachments and appurtenances, used or useful in supplying electric, communication, or similar or associated service.

3.2 City's Responsibility to Connect. Notwithstanding anything else in this Agreement, the City shall be solely responsible for submittal of all required applications to utility companies, including but not limited to Pacific Gas and Electric Company, AT&T Corporation, and Comcast Corporation, and shall be solely responsible for any application, construction, and associated costs necessary to connect the City Property, including without limitation the Courthouse Project site within the City Property, or any building or structure thereon, to any utility equipment installed in the Divarty Street Undergrounding.

ARTICLE IV: OTHER DIVARTY STREET IMPROVEMENTS

4.1 Divarty Improvement. Separate and independent from the Divarty Street Undergrounding, the Parties agree that construction and operation of the Dunes Project and the Courthouse Project may require the construction of improvements to Divarty Street to accommodate traffic, ingress and egress, and project operation associated with each of the aforementioned projects. Such improvements are collectively delineated in the plans contained in EXHIBIT C, on pages 1-4, and referred to herein as the "Divarty Improvement." The Divarty Improvement is anticipated to include, but shall not be limited to, the demolition of existing Divarty Street improvements, grading, construction of storm sewers, installation of domestic water infrastructure, curb construction, gutter construction, construction of a sidewalk along the northern boundary of Divarty Street, and signage and striping. The Divarty Improvement shall not include construction of a sidewalk along the southern boundary of Divarty Street, or any landscaping between the back of curb and any sidewalk along the southern boundary of Divarty Street. In the event of any conflict between the written description of the Divarty Improvement in this Agreement and EXHIBIT C, EXHIBIT C shall control.

4.2 Responsibility for Divarty Improvement. MCP shall, pursuant to the cost allocations and rights of reimbursement set forth in this section 4.4 of the Agreement, construct the Divarty Improvement. MCP shall not be responsible for construction of a sidewalk along the southern boundary of Divarty Street, or any landscaping between the back of curb and any sidewalk along the southern boundary of Divarty Street.

Packet Page 50
19982384.7

4.3 Standards for Divarty Improvement. The Divarty Improvement shall be constructed by a contractor licensed by the State of California to construct such improvements.

The Divarty Improvement shall be constructed in compliance with all State and local laws and regulations applicable thereto, including, but not limited to, the standards and specifications required by the City of Marina and Marina Coast Water District, and the terms and conditions set forth herein.

4.4 Cost Allocation for Divarty Improvement. The City shall be solely responsible for the Divarty Courthouse Improvement Costs, in accordance with the following terms and conditions:

4.4.1 The "Divarty Courthouse Improvement Costs" shall include all actual costs reasonably necessary to complete the portion of Divarty Improvement caused by the Courthouse Project, including, but not limited to, costs associated with construction, preliminary design and technical memorandum, final design, engineering, testing, geotechnical, surveying, bidding, contracting, contract administration, applications submitted to the City or the City of Marina and fees for review of any such applications, permit fees, and costs to modify any existing City of Marina approvals necessary to allow the Divarty Improvement. The Divarty Courthouse Improvement Costs shall also include an MCP overhead cost equivalent to 15 percent of all other costs described in this section. As used in this section 4.4.1, "Divarty Improvement caused by the Courthouse Project" shall mean any portion of the Divarty Improvement that will be utilized by users of the Courthouse Project, and would not otherwise be constructed in the absence of the Courthouse Project. The "Divarty Improvement caused by the Courthouse Project" shall include, but shall not be limited to, all roadway and design improvements to accommodate traffic associated with the Courthouse Project as identified in the New Fort Ord Courthouse Environmental Impact Report certified on or about September 2, 2023, all sanitary sewer improvements in Divarty Street required to serve the Courthouse Project, and all domestic water improvements in Divarty Street required to service the Courthouse Project from the Divarty Street water main.

4.4.2 A reasonable estimate of the total costs of the portion of Divarty Improvement caused by the Courthouse Project is included in EXHIBIT C. However, the costs for the Divarty Improvement that are subject to the allocation and reimbursement provisions under this Agreement shall be equivalent to the Divarty Courthouse Improvement Costs actually and reasonably incurred, as identified in section 4.4.1 of this Agreement.

4.4.3 MCP shall pay all Divarty Courthouse Improvement Costs as they are incurred. The City shall reimburse MCP any Divarty Courthouse Improvement Costs within thirty (30) days of the date of Invoice Submittal by MCP for Divarty Courthouse Improvement Costs.

All invoices for Divarty Courthouse Improvement Costs shall be sent with supporting documentation, including any relevant invoices from vendors, contractors, suppliers, and/or other consultants, or any other relevant receipts for payments made.

4.4.4 If the City disputes that a particular invoice for Divarty Courthouse Improvement Costs is a cost reasonably necessary to complete the portion of the Divarty Improvement caused by the Courthouse Project as contemplated under section 4.4.1, it shall provide notice of its dispute to MCP within fifteen (15) days of the associated Invoice Submittal.

If notice of dispute is given, the City shall not be required to pay the invoice within thirty (30) days of the Invoice Submittal, and the Parties shall collaborate in good faith to reach an agreement on the payment of the invoice acceptable to both Parties. Once such an agreement is reached, the City shall pay the agreed portion of the Divarty Courthouse Improvement Costs Packet Page 51
19982384.7
within thirty (30) days of the date of agreement. If notice of dispute is given, MCP may, at its sole option, elect to pause its work on the Divarty Improvement until the Parties reach an agreement on the payment of the invoice. The costs to any such pause in work shall be allocated pursuant to the cost allocation provisions in section 4.4.

4.4.5 Following the completion of the Divarty Improvement, MCP shall provide the City with a final accounting of all of the Divarty Courthouse Improvement Costs. In the event that final accounting shows a balance due to MCP from the City, the City shall provide final payment of any outstanding amount of the Divarty Courthouse Improvement Costs to MCP within thirty (30) days of Invoice Submittal such final accounting.

4.4.6 If the City fails to make any payment due to MCP for the Divarty Courthouse Improvement Costs required under sections 4.4.3, 4.4.4, or 4.4.5 within the thirty (30) day period set forth under each respective section, the City shall immediately incur a late penalty equivalent to fifteen (15) percent of the outstanding payment. If City has not paid the outstanding payment and incurred late penalty within one hundred and eighty (180) days of the end of the thirty (30) day period set forth under each respective section, the City shall immediately incur an additional late penalty equivalent to fifteen (15) percent of the outstanding payment.

ARTICLE V: FURTHER COOPERATION BETWEEN THE PARTIES

5.1 Necessary Permits for Divarty Street Undergrounding and Divarty Improvement. To the extent the Divarty Street Undergrounding or the Divarty Improvement shall require the issuance of permits from the City, including, but not limited to tree removal permits and grading permits, the City shall cooperate in processing any such applications as quickly as possible and shall work in good faith to issue all necessary approvals within ninety (90) days of receipt of any application for such a necessary approval. The City shall be solely responsible for the costs attributable to any delay to the Divarty Street Undergrounding or the Divarty Improvement caused by its non-compliance with this section 5.1, which shall be a cost separate and additional to the Divarty Street Underground Costs and the Divarty Courthouse Improvement Costs. To the extent that compliance with the Courthouse Project MMRP (as defined in section 5.3) requires that processing or review of a particular tree removal permit take longer than ninety (90) days from the date of receipt of the application for such permit, the costs attributable to any delay to the Divarty Street Undergrounding or the Divarty Improvement caused by the processing or review of the aforementioned tree removal permit shall be allocated pursuant to the cost allocation provisions in sections 2.2 and 4.4 of this Agreement.

5.2 Necessary Access and Easements.

5.2.1 The City agrees to facilitate access to the City Property as needed to construct the Divarty Street Undergrounding and the Divarty Improvement.

5.2.2 The City agrees to grant to MCP all necessary easements, rights-of-way, licenses, or other interests (the "Necessary Access Rights") over the City Property at no cost as may be required for construction, relocation, operation, and dedication of the Divarty Street Undergrounding and the Divarty Improvement, including, but not limited to, any utility easements and any easements for grading, tree removal, or de-vegetation work reasonably required for the Divarty Street Undergrounding or the Divarty Street Improvements. The City will use best efforts to assist in the coordination of any right of access or temporary construction easements over any property owned by the State of California .

Packet Page 52
19982384.7

5.2.3 For all Necessary Access Rights required pursuant to section 5.2.2, MCP shall prepare a proposed Necessary Access Right. The City shall review the proposed Necessary Access Right and provide any comments within 60 days of finalization of the Divarty Street Undergrounding design and Divarty Improvments, or shall approve the Necessary Access Right with no feedback, within thirty (30) days of receipt of MCP's proposed Necessary Access Right. If the City provides comment on the proposed easement, the City and MCP shall cooperate in good faith to create a revised easement acceptable to both Parties within sixty (60) days of the City's comments. The City shall be solely responsible for the costs attributable to any delay to the Divarty Street Undergrounding or the Divarty Improvement caused by its noncompliance with this section 5.2. To the extent that any Necessary Access Rights are not provided timely to MCP or maintained for MCP, MCP shall not be obligated to construct the Divarty Street Undergrounding and the Divarty Improvement, and MCP's failure to construct the Divarty Street Undergrounding and the Divarty Improvement in such circumstances shall not be a default under this Agreement.

5.2.4 To the extent the City sells or otherwise transfers any portion of the City Property to a third party, the City shall ensure that all Necessary Access Rights over the City Property are maintained for the benefit of MCP or, if the sale or other transfer occurs prior to the City's grant of the Necessary Access Rights to MCP, then City shall reserve the Necessary Access Rights in selling or transferring any portion of the City property to a third party and expeditiously thereafter grant MCP the Necessary Access Rights the City reserved. If the City fails to abide by this section 5.2.4, the City shall be liable for all costs incurred due to the failure to maintain the Necessary Access Rights, and any delay in the construction of the Divarty Street Undergrounding or Divarty Improvement associated with the loss or disruption of the Necessary Access Rights.

5.2.5 Notwithstanding Section 5.4 of this Agreement, to the extent that construction of the Divarty Street Undergrounding or the Divarty Improvement is occurring during construction of the Courthouse Project, the City shall have sole responsibility to ensure access to the Courthouse Project Site for construction vehicles or emergency vehicles.

5.3 Compliance with Courthouse Project MMRP. To the extent that any work related the Divarty Street Undergrounding or the Divarty Improvement requires compliance with the Mitigation, Monitoring and Reporting Program included as Appendix A to the August 2023 Final Environmental Impact Report for the New Ford Ord Courthouse, State Clearinghouse Number 2022070304. (the "Courthouse Project MMRP"), the City alone shall bear the responsibility for ensuring all such work complies with the Courthouse Project MMRP. MCP shall not be responsible for ensuring compliance with the Courthouse Project MMRP, and shall not bear the expense of compliance with the Courthouse Project MMRP. Any costs of compliance with the Courthouse Project MMRP shall be borne solely by the City, and shall be separate from the Divarty Street Undergrounding Costs and the Divarty Courthouse Improvement Costs. The City shall pay any costs attributable to compliance with the Courthouse Project MMRP incurred by MCP within thirty (30) days of the date Invoice Submittal for any such costs.

5.4 Construction Timing. The Parties acknowledge that construction of the Courthouse Project is anticipated to begin in September of 2025. The Parties desire to complete the Divarty Street Undergrounding and the Divarty Improvement by June of 2025. MCP shall use commercially reasonable efforts to advance the construction and completion of the Divarty Street Undergrounding and the Divarty Improvement expeditiously. MCP's failure to complete the Divarty Street Undergrounding and the Divarty Improvement by June 2025 despite Packet Page 53
19982384.7
commercially reasonable efforts to advance construction and completion expeditiously shall not be a default on MCP's obligations under this Agreement.

5.5 Coordination of the Courthouse Project. The Parties agree that coordination on the Courthouse Project is necessary to ensure the efficient and timely implementation of the Divarty Street Undergrounding and the Divarty Improvement.

5.5.1 The City shall organize monthly coordination meeting between MCP, the City, and any managers or representatives of the Courthouse Project that the City deems necessary. The schedule of meetings may be altered as needed to support coordination needs with the consent of both Parties.

5.5.2 The City shall provide MCP with all Courthouse Project site plans, improvement plans, and landscape plans for MCP's review in order to ensure consistency with any developments on the MCP Property. MCP shall provide the City with any plans for grading, finish elevations, or finish curb and gutter elevations for portions of Divarty Street abutting the City Property in order to ensure any future improvements on City Property may be consistent with the Divarty Street Undergrounding and Divarty Improvement. To the extent that the Courthouse Project site plans, improvement plans, or landscape plans require any alterations to Divarty Street Undergrounding or Divarty Improvement, the City shall either reimburse MCP for all costs of such alterations, or the City shall undertake all such alterations itself at its own expense.

5.6 2nd Avenue and Divarty Street Intersection. At this time, no roadway improvements to accommodate increased traffic are planned for the intersection of 2nd Avenue and Divarty Street. To the extent any such improvements are required in the future, MCP shall only be responsible for any such improvements triggered by construction or operation of the Dunes Project.

5.7 Continued Cooperation for Further Improvements. The Parties acknowledge that construction of the Divarty Street Undergrounding and Divarty Improvement may require further coordination with third parties, including, but not limited to California State University Monterey Bay, and that such coordination may result in necessary improvements or costs in excess of those contemplated under Exhibit B and Exhibit C to this agreement. To the extent that coordination with third parties results in improvements or costs in excess of those contemplated under Exhibit B and Exhibit C, the Parties agree to cooperate in good faith to determine a proportional share of the expenses for such improvements or costs, pursuant to the general principle that MCP shall only bear costs caused by, and in proportion to the impacts associated with, construction or operation of the Dunes Project.

5.8 Further Actions and Instruments. The City shall cooperate with and provide reasonable assistance to MCP to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement, including the construction of the Divarty Street Undergrounding and the Divarty Improvement.

Upon the request of MCP at any time, the City shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement.

Packet Page 54
19982384.7
ARTICLE VI: MISCELLANEOUS PROVISIONS

6.1 Attorney's Fees for Agreement. The City shall reimburse MCP for all reasonable attorney's fees incurred by MCP in preparing this Agreement. Following execution of this Agreement, MCP shall submit to the City an invoice for attorney's fees associated with the preparation of this Agreement. The City shall process and pay the invoice for attorney's fees associated with the preparation of this Agreement submitted by MCP within thirty (30) days of the Invoice Submittal. An estimate of the attorney's fees associated with the preparation of this agreement is included in Exhibit D; however, the City shall reimburse MCP for all actual attorney's fees incurred by MCP in preparing this Agreement.

6.2 Warranties of the Parties. Each party represents and warrants to the other that it has the power and authority to enter into this Agreement and each of its obligations, and that this Agreement is the valid and binding obligation of such party and is enforceable against it in accordance with its terms. The City represents that it is fee simple owner of the City Property, and that the City Property is not subject to any lien, encumbrance, or other interest that would preclude or adversely impact the City's authority to enter into this Agreement and undertake each of City's obligations herein. Each Party shall indemnify, protect, defend and hold harmless the other Party from any and all claims, liabilities, judgments, causes of action, damages, costs and expenses (including reasonable attorneys’ and experts’ fees), caused by or arising in connection with any inaccuracies and/or misrepresentations (intentional or negligent) set forth in this Representation and Warranty, and the foregoing indemnification shall survive any such termination of this Agreement. Notwithstanding anything else in this Agreement, City shall indemnify, protect, defend and hold harmless MCP from any and all claims, liabilities, judgments, causes of action, damages, costs and expenses (including reasonable attorneys’ and experts’ fees), caused by or arising in connection with any failure of MCP to receiving, any delay by MCP in receiving or being able to maintain, or interruption of the MCP's enjoyment of the Necessary Access Rights, or City obligations under this Agreement, including to satisfy terms of the Courthouse Project MMRP, and the foregoing indemnification shall survive any such termination of this Agreement.

6.3 Relationship of the Parties. This Agreement does not create any relationship or association between MCP and the City other than contracting parties, and it expressly understood that the City does not in any way nor for any purpose become a partner of MCP or a joint venturer with MCP in the conduct of MCP's business or otherwise, nor does the Agreement create between MCP and the City the relationship of principal and Agent. The Parties acknowledges that construction of the Divarty Street Undergrounding and the Divarty Improvements may require the payment of prevailing wage under California law, and agree that if such requirements apply, the Divarty Street Undergrounding Costs and the Divarty Improvements Costs will include the payment of prevailing wage.

6.4 No Third-Party Beneficiaries. The Parties do not intend to create any thirdparty beneficiaries to this Agreement. This Agreement is made and entered into for the sole protection and benefit for the Parties, as well as their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.

6.5 Interpretation and Applicable Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning, to achieve the objectives and purposes of the parties hereto. The rule of construction, to the effect that ambiguities are to be resolved against the drafting party or in Packet Page 55
19982384.7
favor of the non-drafting party, shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

6.6 Waiver. Failure of a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party 's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.

6.7 City to Coordinate with Third Parties. This Agreement shall run with the City Property and, to the extent the City leases or sells the City Property to any third party, or otherwise permits a third party to operate on the City Property, the City shall be responsible for ensuring that any lease, purchase and sale agreement, or other instrument of conveyance obligates such third party to comply with the terms of this Agreement, and otherwise provide any cooperation necessary to ensure the City's performance of its obligations under this Agreement.

6.8 Assignment. This Agreement may not be assigned without the prior written consent of the other Party hereto. A Party shall also inform all future assignees, if any, of the terms and conditions of this Agreement.

6.9 Priority of Agreement. It is specifically understood and agreed by the Parties hereto that any and all agreements, leases, encumbrances, liens, or interests in the City Property executed or established after the date of this Agreement and all rights, privileges and benefits thereunder shall be at all times subject to, subordinate and inferior to this Agreement.

6.10 Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances is held, to any extent, invalid or unenforceable, the remainder of this Agreement shall remain valid and enforceable to the fullest extent permitted by law unless the invalid or unenforceable term, provision, covenant or condition is related to the Payment for Improvements provisions in Article II of this Agreement. If any Payment for Improvement provisions in Article II of this Agreement are invalidated or held unenforceable, the Parties shall make good faith efforts to agree in writing to amend the Agreement to include alternative terms, provisions, covenants, or conditions to those determined invalid, void, or unenforceable. If such alternative terms, provisions, covenants, or conditions cannot be agreed upon, the Agreement shall terminate in its entirety and MCP shall have no obligations to design, construct, or otherwise facilitate the Divarty Street Undergrounding and the Divarty Improvement.

6.11 Enforcement. Any action at law or in equity arising under this Agreement or brought by any Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Monterey, State of California, or such other appropriate court in said county. In the event of any action between MCP and the City seeking enforcement of any of the terms and conditions to this Agreement, the prevailing party in such action shall be awarded, in addition to such relief to which such party is entitled under this Agreement, its reasonable litigation costs and expenses, including without limitation its expert witness fees and reasonable attorneys' fees.

6.12 Notices: All notices under this Agreement shall be effective when delivered by United States Postal Service mail, registered or certified, postage prepaid return receipt requested; and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing by providing notice to the other party:

Packet Page 56
19982384.7
If to MCP:

Shea Homes
Marina Community Partners LLC
Attn: Don Hofer and Jack Gao
4309 Hacienda Drive, Suite 180
Pleasanton, CA 94588
[email protected]
[email protected]
With a Copy to:

Hanson Bridgett LLP
Attn: Sean Marciniak
1676 No. California Blvd., Suite 620
Walnut Creek, CA 94596
Email: [email protected]
If to City:

City of Seaside
Attn: Nisha Patel
440 Harcourt Avenue
Seaside, CA 93955
With an electronic Copy to:

City of Seaside
Attn: Sheri Damon
[email protected]

6.13 Amendments. This Agreement may be amended only by written consent of both Parties specifically approving the amendment. The Parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters.

6.14 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

6.15 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the Parties with respect to the subject matter set forth herein, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. The Parties recognizes that the City and the Judicial Council have entered into a wholly separate Infrastructure Improvement Agreement with regard to the Courthouse Project. Nothing in this Agreement is intended to alter the City's obligations under Packet Page 57
19982384.7
the wholly separate Infrastructure Improvement Agreement between the City and the Judicial Council, and nothing in the Infrastructure Improvement Agreement is intended to alter or interpret the terms of this Agreement. MCP is not a party to the wholly separate Infrastructure Improvement Agreement between the City and the Judicial Council, and shall not be responsible for any obligations whatsoever under said Infrastructure Improvement Agreement.

6.16 Force Majeure. Notwithstanding anything to the contrary herein, neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other acts of God, fires, rains, winds, wars, terrorism, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the Party's employment force), government actions and regulations (other than those of the City), court actions (such as restraining orders, injunctions. or administrative challenges or lawsuits brought by third parties challenging any necessary governmental approvals or permits necessary for the construction of the Divarty Street Undergrounding or the Divarty Improvement), or other causes beyond the party's reasonable control.

6.17 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

6.18 Authority of Signatories. The person(s) executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party, if not an individual, is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such Party is bound. [Signatures on the following page(s)]
Packet Page 58
19982384.7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above.
“City”

THE CITY OF SEASIDE
Date:______________ _______________________________
[SIGNATORY]
“MCP”

MARINA COMMUNITY PARTNERS, LLC
Date:______________ _______________________________
[SIGNATORY]
“MCP”

MARINA COMMUNITY PARTNERS, LLC
Date:______________ _______________________________
[SIGNATORY]
Packet Page 59

I N E E

S O N W E N
I T H
S
G
R
1ST AVENUE
2ND AVENUE MCP PROPERTY LOT 21 23 C&T PG 36 DIVARTY STREET CITY OF SEASIDE PARCEL 1 23 SUR PG 97 APN: 031-151-013 STATE ROUTE 1 PROJECT No.:

C:\Users\cjones\OneDrive - Whitson Engineers\Desktop\3140\CAD\EXHIBITS\XB-DIVARTY-COURTHOUSE.dwg Civil Engineering + Land Surveying 6 Harris Court Monterey, CA 93940 831.649.5225 whitsonengineers.com 3140.46 AGREEMENT FOR REIMBURSEMENT MARINA, CALIFORNIA SUBJECT PROPERTIES 4/4/2024 EXHIBIT A 2ND AVENUE
Packet Page 60
PROJECT No.:

C:\Users\cjones\OneDrive - Whitson Engineers\Desktop\3140\CAD\EXHIBITS\XB-DIVARTY-COURTHOUSE.dwg Civil Engineering
Land Surveying
6 Harris Court
Monterey, California
831.6495225
whitsonengineers.com MARINA, CALIFORNIA
4/4/2024
3140.46

AGREEMENT FOR REIMBURSEMENT

EXHIBIT B

DIVARTY STREET UNDERGROUNDING

I N E E

S O N W E N
I T H
S
G
R

LEGEND SEE ABOVE SEE BELOW

DIVARTY STREET

CITY OF SEASIDE

COURTHOUSE PROJECT

MCP PROPERTY

CITY OF

SEASIDE

COURTHOUSE

PROJECT

DIVARTY STREET

MCP PROPERTY

CITY OF SEASIDE

MAIN GATE
CSUMB

PROPERTY
CSUMB

PROPERTY
1ST AVENUE
2ND AVENUE
Packet Page 61
Job No.: 3140.46
Unit
Item Description Quantity Unit Price Amount

OVERHEAD DRY UTILITY UNDERGROUNDING
1 Courthouse Property Frontage to 2nd Ave 960 LF $ 556.68 $ 534,413 2 Main Gate Property Frontage 554 LF $ 278.34 $ 154,200 SUBTOTAL UNDERGROUNDING REIMBURSEMENT AMOUNT $ 688,613
15% DESIGN/MANAGEMENT $ 103,292
10% CONTINGENCY $ 68,861
TOTAL UNDERGROUNDING REIMBURSEMENT AMOUNT (to nearest $1,000) $ 861,000 Notes
1)
2) Estimated Unit Costs per Linear Foot include Trenching, Vaults, Conduits, PG&E Electrical Systems, Street Lighting, and PG&E and AT&T Contract Costs.

Estimate is based on a 100% reimbursement for costs related to undergrounding Divarty Street overhead utilities along the Courthouse Project frontage to an existing pole at the east side of 2nd Ave and 50% reimbursement for costs related to undergrounding Divarty Street overhead utilities along the Main Gate Project frontage.

April 4, 2024

EXHIBIT B

DIVARTY STREET UNDERGROUNDING

MARINA, CALIFORNIA

PRELIMINARY COST ESTIMATE
3140-EST-Dunes-COS_02.xls Page 1 of 1 Printed On: 4/4/2024 Packet Page 62
STOP

STOP STOP

CITY OF SEASIDE

MAIN GATE

CITY OF SEASIDE

COURTHOUSE PROJECT
PROJECT No.:

AGREEMENT FOR REIMBURSEMENT
EXHIBIT C1

DIVARTY IMPROVEMENTS

I N E E

S O N W E N
I T H
S
G
R

LEGEND SEE ABOVE
PAGE 1 OF 4 SEE BELOW

DIVARTY STREET
1ST AVENUE

MCP PROPERTY

DIVARTY STREET

MCP PROPERTY
CSUMB

PROPERTY
CSUMB

PROPERTY
2ND AVENUE
Packet Page 63
PROJECT No.: C:\Users\cjones\OneDrive - Whitson Engineers\Desktop\3140\CAD\EXHIBITS\XB-DIVARTY-COURTHOUSE.dwg Civil Engineering + Land Surveying
6 Harris Court
Monterey, CA 93940
831.649.5225
whitsonengineers.com
3140.46

AGREEMENT FOR REIMBURSEMENT

MARINA, CALIFORNIA

DIVARTY IMPROVEMENTS (STREET SECTIONS)
4/4/2024
EXHIBIT C2

CITY OF

SEASIDE
MCP

PROPERTY

CITY OF

SEASIDE
MCP

PROPERTY

DIVARTY STREET IMPROVEMENT DESIGN

EXISITNG DIVARTY STREET

PRIOR TO IMPROVEMENTS
PAGE 2 OF 4
Packet Page 64

CITY OF SEASIDE

MAIN GATE

CITY OF SEASIDE

COURTHOUSE PROJECT
PROJECT No.:

AGREEMENT FOR REIMBURSEMENT
EXHIBIT C3

DIVARTY IMPROVEMENTS (GRADING ENCROACHMENTS) I N E E S O N

W E N I T H S G

R SEE ABOVE
PAGE 3 OF 4 SEE BELOW

DIVARTY STREET

MCP PROPERTY

DIVARTY STREET

MCP PROPERTY
CSUMB

PROPERTY
CSUMB

PROPERTY
1ST AVENUE
2ND AVENUE
Packet Page 65
PROJECT No.:

AGREEMENT FOR REIMBURSEMENT
EXHIBIT C4

DIVARTY IMPROVEMENTS (UTILITY INFRASTRUCTURE) I N E E S O N

W E N I T H S G
R

LEGEND SEE ABOVE
PAGE 4 OF 4 SEE BELOW

DIVARTY STREET

CITY OF SEASIDE

COURTHOUSE PROJECT

MCP PROPERTY

DIVARTY STREET

MCP PROPERTY

CITY OF SEASIDE

MAIN GATE
CSUMB

PROPERTY
CSUMB

PROPERTY
1ST AVENUE
2ND AVENUE
Packet Page 66
Job No.: 3140.46
Unit
Item Description Quantity Unit Price Amount

SANITARY SEWER
1 48" Manholes 2 EA $ 5,700.00 $ 11,400
2 8" PVC Sanitary Sewer Pipe 702 LF $ 61.00 $ 42,822
3 8" Pipe Stub 1 EA $ 1,500.00 $ 1,500
Subtotal Sanitary Sewer $ 55,722
WATER
1 6" Fire Water Stub 1 EA $ 4,000.00 $ 4,000
2 2" Domestic Water Stub 1 EA $ 2,000.00 $ 2,000
3 2" Irrigation Water Stub 1 EA $ 2,000.00 $ 2,000
Subtotal Potable Water $ 8,000
SUBTOTAL IMPROVEMENT AMOUNT $ 63,722
15% DESIGN/MANAGEMENT $ 9,558
10% CONTINGENCY $ 6,372
TOTAL DIVARTY STREET REIMBURSEMENT AMOUNT (to nearest $1,000) $ 80,000 April 4, 2024

EXHIBIT C

PRELIMINARY COST ESTIMATE

DIVARTY STREET IMPROVEMENTS

MARINA, CALIFORNIA
3140-EST-Dunes-COS_02.xls Page 1 of 1 Printed On: 4/4/2024 Packet Page 67
t:\monterey projects\3140\docs\cooresp\letters\3140-letter shea-cos_02.docx June 26, 2026 Job No.: 3140.49
Doug McArdle

SHEA HOMES
90 10th Street
Marina, CA 93933
Via email: [email protected]
The Dunes on Monterey Bay
Marina Community Partners, LLC & City of Seaside
Divarty Street Reimbursement Agreement
Dear Mr. McArdle:

I am the Civil Engineer associated with the above referenced community, and I am writing to certify that the Invoice Summary of $1,347,921.07 that was provided on 6/26/2026 is consistent with the plans and contract costs that we have reviewed related to the Divarty Street Reimbursement Agreement between Marina Community Partners, LLC and the City of Seaside.

Sincerely,
Whitson Engineers
Andrew Hunter PE | Principal
RCE 67730
Packet Page 68

Meeting Date: 10/01/26
Item #: 8.I.

RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE INCREASING THE COURTHOUSE PROJECT BUDGET TO $1,347,921.07 AND APPROPRIATING $60,099.03 FROM RESERVES FOR DIVARTY STREET

IMPROVEMENTS
WHEREAS, the City owns a vacant parcel of land south of Divarty Street between 1st Avenue and 2nd Avenue; and
WHEREAS, on September 21, 2023, the City Council approved a draft property acquisition agreement between the City of Seaside and the State of California on behalf of the Judicial Council of California to transfer a 5.0-acre portion of the parcel to the Judicial Council for construction of the Monterey Family Justice Center; and WHEREAS, the infrastructure improvements agreement portion of the property acquisition agreement required the City of Seaside to install potable, recycled, and fire water; sanitary sewer; electric; and communications service to the Courthouse site. The agreement also required the City to underground the overhead dry utilities (electric, phone, cable, and fiber) in front of the Courthouse site and across 2nd Avenue; and WHEREAS, the City needed to perform or manage the design, project management, construction, construction management, and acquisition of all required permits; and
WHEREAS, as part of the Dunes Phase 3 project, Marina Community Partners, LLC (MCP), an entity owned of Shea Homes LP, is designed and is constructing undergrounding of overhead utilities along 1st Street from 8th Avenue to Divarty Street and roadway and utility improvements along Divarty Street between 1st and 2nd Avenue; and
WHEREAS, it is more efficient and cost effective for the City to reimburse MCP for their designer and contractor to perform work to deliver the improvements the City is responsible for; and
WHEREAS, the undergrounding in front of the Courthouse site and the utilities for the Courthouse site are designed and constructed by MCP; the costs would be paid in full by the City, but would be reimbursed by the Judicial Council including construction management and administrative fees for managing the project; and Packet Page 69
WHEREAS, with the reimbursement agreement, MCP designed and contracted utility undergrounding along City property west of the Courthouse property to 1st street, and the City would share the costs to make those improvements with MCP, but they would not be reimbursed by the Judicial Council; and
WHEREAS, on 5/2/2024 the City Council approved the reimbursement agreement setting a budget of $1,500,000.00; and
WHEREAS, Final construction costs incurred by MCP for the undergrounding work including both the portion the City is responsible for and the portion to be reimbursed by the Judicial Council are $1,347,921.07; and WHEREAS, Whitson Engineers acting as a third party reviewed the construction costs and certified the invoice to be correct and accurate determining the increases are reasonable and due to normal construction inflation; and WHEREAS, The Judicial Council has agreed to reimburse the City $1,137,822.04 including reimbursable construction expenses as well as 5% administrative fee and 5% project management fee; and
WHEREAS, in FY 2024/2025, the city budgeted $154,200 for reimbursable expenses, and needs additional funding; and
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Seaside increases the Courthouse Project budget to $1,347,921.07; and BE IT FURTHER RESOLVED, that the City Council of the City of Seaside appropriates $60,099.03 from reserves for Divarty street improvements: and BE IT FURTHER RESOLVED, that the City Council of the City of Seaside, direct the Finance Director to make all necessary budget transfers, bills, and payments associated with the Courthouse Project and reimbursement agreement.

PASSED AND ADOPTED at a regular City Council meeting of the City of Seaside duly held on the 1st day of October 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

APPROVED:

Packet Page 70

Meeting Date: 10/01/26
Item #: 8.I.
_______________________________
Ian N. Oglesby, Mayor

ATTEST:

______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
Packet Page 71

CITY OF SEASIDE

STAFF REPORT
Item No.: 9.A.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Greg McDanel, City Manager
DATE: October 1, 2026
SUBJECT: AN ORDINANCE TO AMEND CHAPTER 17.40 OF THE SEASIDE

MUNICIPAL CODE TO ALLOW ELECTRONIC MESSAGE DISPLAY

SIGNS FOR PLACES OF WORSHIP AND PUBLIC OR PRIVATE
MEETING FACILITIES ON LOCAL STREETS. 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
Adopt the ordinance.

BACKGROUND
Electronic Display Message Signs - Background and Scope Signs in the City of Seaside are regulated by Chapter 17.40 of the Municipal Code. This Chapter identifies the allowable type, locations, size, and other characteristics regarding allowable signs in the City of Seaside.

Among the provisions of this Chapter is Section 17.40.050.B. Section 17.40.050 includes a list of types of signs which are prohibited in all circumstances in the City of Seaside. Section 17.40.050.B prohibits signs which meet the following:

Animated signs, including electronic message display signs, and variable intensity, blinking, or flashing signs, or signs that emit a varying intensity of light or color, except time and temperature displays (which are not considered signs) and electronic message display signs for places of worship and public and private meeting facilities Packet Page 72

Item No. 9.A. Page 2 of 8
The Zoning Ordinance does not include a definition of "Electronic Message Display Signs," although it does include a definition for "Electronic Reader Board Sign" (a term which does not appear in Chapter 17.40) as follows under the definition of "Sign" in Section 17.98.020.S:

Electronic Reader Board Sign.

A sign with a fixed or changing display composed of a series of lights, but not including time and temperature displays.

As noted above, electronic display message signs (as well as any other sign exhibiting the behaviors described) are prohibited in nearly all cases in all locations in the City.

There are only three exceptions where such signs may be considered:
- Time and Temperature Displays
- Electronic message display signs at places of worship and public and private meeting facilities.
- Gas pricing signs (although not specifically called out as an exception here, Section

17.40.040.B.7 identifies such signs as being exempt from the provisions of Chapter

17.40)
Section 17.98.020.M of the Seaside Zoning Ordinance defines Meeting Facility, Public or Private as follows:

Meeting Facility, Public or Private.

A facility for public or private meetings, including community centers, religious assembly facilities (e.g., churches, mosques, synagogues, etc.), civic and private auditoriums, grange halls, union halls, meeting halls for clubs and other membership organizations, etc. Also includes functionally related internal facilities such as kitchens, multi-purpose rooms, and storage. Does not include conference and meeting rooms accessory and incidental to another primary use that are typically used only by on-site employees and clients, and occupy less floor area on the site than the offices they support (see “Office”). Does not include: sports or other commercial entertainment facilities (see “Theater, Cinema or Performing Arts” and “Sports and Entertainment Assembly”); or convention centers (see “Conference/Convention Facility”). Related on-site facilities such as day care centers and schools are separately defined, and separately regulated by Section 17.10.030 (Permitted Land Uses and Planning Permit Requirements).

As a final point, in general, signs are permitted to be illuminated, provided that they comply with the provisions of Section 17.40.060.H. These standards are as follows:

Sign lighting. Sign lighting shall be designed to minimize light and glare on surrounding rights-of-way and properties in compliance with Section 17.30.070 (Outdoor Lighting) and the following:

1. External light sources shall be directed and shielded so they do not produce glare on Packet Page 73

Item No. 9.A. Page 3 of 8
any object other than the sign.

2. The light illuminating a sign shall not be of a brightness or intensity that will interfere with the reasonable enjoyment of residential properties.

3. Sign illumination shall not blink, flash, flutter, or change light brightness, color, or intensity, except for electronic message display signs per Section 17.40.080.I, Electronic Message Display Signs.

4. Colored lights shall not be used at a location or in a manner so as to be confused or construed as traffic control devices.

5. Neither the direct nor reflected light from primary light sources shall create hazards for pedestrians or operators of motor vehicles.

6. Reflective-type bulbs and incandescent lamps that exceed 15 watts shall not be used so as to expose the face of the bulb or lamp to a public right-of-way or adjacent property.

7. Light sources shall utilize hard-wired fluorescent or compact fluorescent lamps, or other lighting technology that is of equal or greater energy efficiency.

8. Permanently installed illuminated panels, visible tubing, and strings of lights outlining all or a portion of a structure, other than lighting that is primarily for indirectly illuminating architectural features, signs, or landscaping, shall be deemed “signs” subject to this chapter and shall be counted as part of the allowed sign area. Each line of tubing or lights shall be deemed to have a minimum width of at least six inches for the purpose of calculating area.

Some takeaways from this language includes:
1) Under the current and proposed Ordinances, electronic message display signs are prohibited at all locations other than Public and Private Meeting Facilities. They would continue to be prohibited for all other uses at all locations in the City. This Ordinance would not enable other users such as retail establishments to install such signs (except for time/temperature display signs and gas pricing signs). 2) Signs with changeable copy but which are not electronic and do not exhibit the behaviors described in Section 17.40.050.B are permitted. This means that "traditional" changeable copy such as the manually adjusted message boards used by religious assemblies do not fall under this prohibition and may be installed in accordance with the provisions of the Zoning Ordinance. These signs are permitted to be illuminated provided that they do not employ the behaviors described in Section 17.40.050.B and meet the requirements of Section 17.40.060.H. 3) Public or Private Meeting Facilities are allowed in any residential zone, but always require a Use Permit (Zoning Ordinance Section 17.12.030.C, Table 2-1). This means that the establishment of any new Public or Private Meeting Facility would be subject to public notification and hearings.

Proposed Ordinance
Packet Page 74

Item No. 9.A. Page 4 of 8
Existing law indicates that such signs must abide by the following operating standards:
- Signs must be located so that they do not interfere with visibility or functioning of traffic signals or signage;
- Signs must be at least 50 feet from the nearest residence; - Animated messages shall be limited to fading and dissolving, with no other effect to give the appearance of movement;
- Signs shall not include any audio message;
- Message shall have a minimum hold time of 30 seconds; - Signs shall not illuminate between 9:00 PM and 6:00 AM; - Illumination shall direct light towards the ground and shall not include excessive illumination (as defined in detail in Section 17.40.080.I.7); - Signs shall employ light detectors so that they automatically dim after dusk and before dawn.

This item is being brought forward due to language in Section 17.40.080.I.1 which provides that electronic signs must be located on an arterial or collector street.

Currently, electronic display message signs are prohibited on local streets, which include the majority of residential streets in the City. Staff has received inquiries from a church located on a local street regarding the possibility of replacing an existing internally illuminated message board with an electronic message board.

This Item was considered by the Planning Commission on May 13, 2026. The Planning Commission ultimately was supportive of allowing the placement of such signs on local streets. The Planning Commission voted to recommend that the City Council approve the Ordinance allowing such signs as they are allowed on other street types in the City, subject to the requirement that these signs would be subject to the Minor Use Permit process (which would include public notification) unless the sign was a replacement of an existing illuminated sign.

This Item was then considered by the City Council on June 4, 2026. Extensive public comment was received, both in favor of the Ordinance as well as opposed. Those in favor pointed to the challenges associated with changing sign copy by hand, especially in inclement weather, and also asserted that several churches had already placed signs with no apparent ill effects. Those opposed brought up a number of concerns relating to the quality of life for those in proximity to the signs. After hearing the public comment, the City Council referred the item back to the Planning Commission for comment regarding matters related to sign size, color, and hours of operation.

The Item was heard by the Planning Commission on July 22, 2026. At that hearing, extensive public comment in opposition to the installation of electronic message display signs on local streets was received, with the primary objection being that illuminated signs are inappropriate in residential neighborhoods. The Planning Commission Packet Page 75

Item No. 9.A. Page 5 of 8
reviewed the items pertaining to sign size, color, and hours of operation. In addition, the Planning Commission requested information regarding the technologies which could be utilized for these signs, as well as the potential locations of these signs within the City. The Planning Commission continued the Item to August 26, 2026 to allow staff to respond to the additional inquiries.

The Item was heard again by the Planning Commission on August 26, 2026. At this meeting, further discussion was held and additional concerns by the public were presented. Information related to potential technologies as well as the locations of Public or Private Meeting Facilities on local streets. After hearing the information presented by staff and the public, the Planning Commission voted to recommend that the City Council approve the Ordinance with several modifications.

Sign Size
Under the current Ordinance, electronic display message signs are allowed to be up to 8 feet in height; this may be increased up to 14 feet with a Minor Use Permit. Staff believes that this is unnecessary on local streets. Local streets generally have a speed limit of 25 miles per hour. While signs on roads where higher speeds are allowed may need to be larger in order to be readable (since traffic is moving faster, letters need to be larger so they can be read from farther away in order to provide sufficient time to communicate the message), on local streets smaller lettering would be sufficient.

The proposed Ordinance would match maximum sign heights on local residential streets to those for other signs in residential districts (6 feet for freestanding signs). Maximum sign area for the screen would be limited to 18 square feet, reduced from the 24 square feet allowed in other locations.

Sign Color
Several members of the public brought up potential issues related to the color(s) shown on the sign screen. The concept has been presented as signs allowing text - however, this does not preclude the use of designs or even of installing screens capable of displaying graphics.

Some factors to consider regarding different colors:
- Reds, greens, and yellows generally are colors used by traffic lights. The existing Ordinance includes language which limits the use of electronic display message signs when the signs could interfere with the operation of traffic signals or signage. Thus far, existing signs have made use of red lettering with no obvious negative effects. Further, traffic signals are rare on local streets, reducing the potential for interference or confusion.
- Blues and whites are unlikely to be confused with traffic signals. However, they also Packet Page 76

Item No. 9.A. Page 6 of 8
are closer to the natural daylight spectrum, which arguably could be more disruptive to sleep than other colors.
- Staff used Artificial Intelligence (AI) to conduct a review of the Ordinances of other California jurisdictions to see if other jurisdictions have passed Ordinances limiting the colors to a specific palette. None were found, although it was discovered that at least one jurisdiction outside of the state (Tyler, TX) limits the displays to amber lighting only when an institutional use is facing a residence (Section 10-415.a.15(a)). - Another possibility would be to limit signs to be monochromatic (only one color, although the color itself would be up to the applicant). Again, staff used AI to see if there are any other jurisdictions in California with such a requirement and, again, no Ordinances with such a requirement were found.
- Limiting the signs to a single color would effectively prohibit the use of color graphics on screens capable of displaying graphics (such as a PowerPoint slide), as most graphics make use of multiple colors.

Staff is providing this information for the Council's consideration. The Ordinance as presented has not been modified to reflect any of these changes.

Hours of Operation
Concerns were brought up that the allowable hours of operation (6:00 AM to 9:00 PM) might not be appropriate for residential neighborhoods. In particular, the concern was that the 9:00 PM end time might be too late and would be disruptive to residents' sleep.

Staff used AI to search for time restrictions in other jurisdictions. Four examples were found, in Alpine County and the Cities of Monrovia, Ceres, and National City. None of the examples were perfect parallels - for example, the hours may not apply to residential areas, or may only apply to certain uses. However, for the individual circumstances of each jurisdiction, the prohibited hours were 8:00 PM to 7:00 AM in Alpine County, 10:00 PM to 6:00 AM in Monrovia and Ceres, and 10:00 PM to 7:00 AM in National City.

Staff also explored the possibility of using a "dusk to dawn" requirement. Staff does not recommend this approach for two reasons. First, during the winter it is dark by 5:00 PM, which is a time when most people are still pursuing daily activities even though it is dark outside and would be a prime time to display the messages to capture the evening commute. Second, it is unclear when dusk or dawn actually begin, which makes enforcement challenging. Staff also considered a hybrid model (ie dusk to dawn in the summer with specified hours in the winter), but the resulting rules would be challenging to enforce due to their complexity.

At the August 26, 2026 Planning Commission hearing, the Planning Commission voted to recommend that the hours of operation on local streets be limited to 7:00 am to 8:00 pm. The Ordinance language reflects that recommendation.

Packet Page 77

Item No. 9.A. Page 7 of 8
Types of Signs
Changeable copy signs can generally be divided into three categories:
- LED displays, which come in a variety of types but are essentially screens with pixels that can display text, graphics, photographs, videos, and animation, where the pixels are backlit by an LED light;
- Other sources of electronic illumination, such as fiber, plasma, OLED, etc; and - Mechanical/flippable lettering where the content is not displayed electronically but instead is printed on surfaces that physically move, most commonly through a flipping rolodex-type mechanism.

The third type of changeable-copy signs (mechanical signs where the content is not displayed electronically) are not considered to be electronic message display signs, and thus are not subject to the restrictions for electronic message display signs (including the prohibition in 17.40.050.B), whether or not they are illuminated.

With regards to other technologies, there are differences between the various technologies with regards to typical installations and clarity. However, all can be adjusted to function adequately as messaging boards. The Ordinance as drafted is focused on performance standards such as brightness, and it is possible for signs using many of these technologies to achieve compliance. Therefore staff has not made any modifications to the Ordinance based upon this topic.

Sign Locations
Staff has reviewed the locations of existing Public or Private Meeting Facilities. A total of 29 locations have been identified in the original City "core" (defined roughly by all properties south of Military Avenue and west of General Jim Moore Boulevard), a list of which is provided as Attachment 2. Of these, 19 have at least one frontage on a local street. However, only seven have frontages solely on local streets. To minimize the potential impacts of electronic display message signs to local streets, the Ordinance has been modified to stipulate that whenever a facility proposes an electronic display message sign, it must be located on a street other than a local street if one exists, thus providing for a maximum of seven locations throughout the City which would be effected by this Ordinance.

In addition, at its August 26, 2026 hearing, the Planning Commission indicated that it felt that electronic message display signs should be prohibited on one-way streets and alleys. The proposed Ordinance reflects this change.

Miscellaneous
At its August 26, 2026 hearing, the Planning Commission indicated that it preferred a Packet Page 78

Item No. 9.A. Page 8 of 8
different name for the signs besides "electronic display message sign." In addition, the term "electronic display message sign" is undefined in the current Ordinance.

Accordingly, staff has proposed to rename the sign to "Electronic Changeable Copy Signs" and has added a definition to the Ordinance.

At the same hearing, the Planning Commission also indicated that it wished to clarify that signs that were exhibiting prohibited behavior, such as flashing, due to a technical issue should also be prohibited. The proposed Ordinance clarifies that flashing and other animations are prohibited whether they are generated by design or malfunction.

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

STRATEGIC PRIORITY
Community Safety & Quality of Life

ATTACHMENTS

1. CC Ordinance Electronic Signs 2026-09-17

2. Attachment 2 CC - List of Public or Private Meeting Facilities Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 79
ORDINANCE NO. XXXX
AN ORDINANCE TO AMEND CHAPTER 17.40 OF THE SEASIDE MUNICIPAL

CODE TO ALLOW ELECTRONIC MESSAGE DISPLAY SIGNS FOR PLACES OF

WORSHIP AND PUBLIC AND PRIVATE MEETING FACILITIES ON LOCAL

STREETS
WHEREAS, on November 17, 2017, the City Council passed and adopted Ordinance No. 1045 to set forth requirements for the installation of electronic message display signs at Public or Private Meeting Facilities; and WHEREAS, when initially adopted, the Ordinance prohibited the installation of electronic message display signs on local streets; and
WHEREAS, on May 13, 2026, the Planning Commission met and discussed the potential for a modification to the Zoning Ordinance to provide the criteria under which electronic message display signs could be installed on local streets in residential zones, and recommended adoption of the proposed Ordinance; and WHEREAS, on June 4, 2026, the City Council considered the proposed Ordinance and referred the matter back to the Planning Commission to consider potential impacts related to sign size, color, and hours of operation; and WHEREAS, on July 22, 2026 and August 26, 2026, the Planning Commission again met and discussed the potential for a modifications to the Zoning Ordinance; and WHEREAS, on August 26, 2026, the Planning Commission of the City of Seaside recommended that the City Council adopt the proposed Ordinance, subject to modifications which have been incorporated herein; and
WHEREAS, the proposed Zoning Ordinance Amendment 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.

Packet Page 80
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 17th day of September 2026 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside, State of California, held on the ___th day of _____ 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

Packet Page 81
Exhibit “A”
Zoning Ordinance Amendment Text

17.40.050 Prohibited Signs
All signs not expressly allowed by this chapter shall be prohibited. Examples of prohibited signs include the following:

B. Animated signs, including Eelectronic message displayChangeable Copy sSigns, and variable intensity signs, blinking, or flashing signs, or signs that emit a varying intensity of light or color (whether by design or malfunction), except time and temperature displays (which are not considered signs) and eElectronic message display Changeable Copy sSigns for places of worship and Ppublic andor pPrivate mMeeting fFacilities;

17.40.070 Zoning District Sign Standards
Each sign shall comply with the sign area, height, number, type, and other restrictions provided by this section, except as otherwise expressly provided in Section 17.40.080 (Standards for Specific Sign Types).

A. Residential zones. Each sign in a residential zone shall comply with the following requirements:

Packet Page 82
TABLE 3-15 – SIGN STANDARDS FOR RESIDENTIAL ZONES
Allowed Sign
Types
Maximum Sign
Height
Maximum
Number of Signs
Allowed per
Parcel
Maximum Sign
Area Allowed per
Parcel
Nonresidential Use
Wall or freestanding Wall signs: below
edge of roof no
higher than 12 ft
above grade
Freestanding: 6 ft
(See Figure 3-17
for sign height
measurement)
1 of either allowed
sign type
32 sf
Electronic
Changeable Copy
Signs for Public or
Private Meeting
Facility (Local
Streets)
Same as above 1 per parcel (may
be double-sided
with a maximum
cabinet depth of 24
inches)
40 sf per side with a
maximum digital
screen area of 18 sf
(maximum of two
sides)
Packet Page 83
Electronic message
displayChangeable
Copy sSigns for
private and
publicPublic or
Private mMeeting
Ffacility (Non-Local
Streets)
Same as above for
wall signs.

UFor freestanding
signs, up to 8 ft
permitted; minor
use permit for signs
up to 14 ft
1 per parcel (may
be double-sided
with a maximum
cabinet depth of 24
inches)
40 sf per side with a
maximum digital
screen area of 24 sf
(maximum of 2
sides)

17.40.080 Standards for specific sign types
I. Electronic message displaychangeable copy signs. The following standards apply to Eelectronic message displayChangeable Copy sSigns where allowed by Section 17.40.070 (Zoning District Sign Standards) (see Tables 3-15 and 3-16):

1. Definition. An Electronic Changeable Copy Sign (ECCS) shall be defined for the purposes of this Chapter as any sign with a fixed or changing display composed of a series of lights or pixels.

2. Location.
a. Signs shall be located on a either an arterial roadway or collector street in a manner that the Zoning Administrator determines will not adversely interfere with the visibility or functioning of traffic signals or traffic signage, taking into consideration physical elements of the sign and surrounding area, such as information analyzing physical obstruction issues, line of sight issues, brightness issues, and visual obstruction or impairment issues.

No electronic changeable message sign shall be permitted on a local street. b. Signs must be 50 feet or more from the nearest residence on the same street as the sign. For purposes of this Subsection I, distances shall be measured from the sign to the nearest residential building (excluding non-habitable accessory structures) using a lineof-sight analysis. c. No Electronic Changeable Copy Sign shall be displayed on a one-way street or alley.

Packet Page 84
d. If a parcel or facility is located such that it has frontages on one or more local streets and also has at least one frontage on a street that is not a local street or alley, any Electronic Changeable Copy Sign must be located such that it is located closer to a property line fronting a non-local street than to any property line fronting on a local street or alley.

32. Sign area measurement. The area of an eElectronic message displayChangeable Copy sSign does not count toward area limits for other signs in Section 17.40.070.

43. Animation. Animated messages shall be limited to fading and dissolving, with no other effect (whether by design or malfunction) to give the appearance of movement.

54. Audio. No sign shall include any audio message.

65. Duration. Signs messages shall have a minimum hold time of 30 seconds.

76. Timing. The sign will not illuminate from the message display area between 9:00 p.m. and 6:00 a.m, except that this time period shall be from 8:00 p.m. to 7:00 a.m. if located on a local street (as designated by the then-current General Plan) and is within 100 feet of a residence.

87. Illumination. Electronic cChangeable messageCopy sSigns may be illuminated with continuous internal LED lighting. No sign shall be illuminated so that the primary source of the light is visible beyond the property line or in any way will cause excessive glare or brightness in excess of 0.3 foot candles. The Zoning Administrator reserves the right to require and/or complete a post-installation inspection of the sign illumination. If, as a result of this inspection, it is determined that the illumination is so bright as to adversely impact adjacent properties and uses, the Zoning Administrator may require shielding or a reduction and/or adjustment in the intensity of the sign illumination, so that it is in keeping with the general level of illumination of the surrounding properties.

Such intensity restriction may vary by time of day and ambient light conditions.

Illuminated signs located adjacent to any residential area shall be shielded to direct light downward and away from adjacent properties such that there is no spillover light and shall be controlled by a rheostat or functional equivalent to avoid excessive glare to residential properties.

Packet Page 85

98. Light detector. No permit for such sign shall be issued unless the sign is installed with an automatic or a scheduled dimming time by which the sign’s light intensity will reduce when ambient light conditions darken. Such dimming feature shall reduce the light intensity from the sign from dusk to dawn to a level that does not impair the visibility on any adjacent roadway, or be directed onto a residential property.

10. Permits Required. In addition to any required Building Permits or other applicable permits, Electronic Changeable Copy Signs shall be subject to the following permit processes:
a. An Electronic Changeable Copy Sign located on a local street (as designated by the then-current General Plan) or alley may be considered subject to approval of a Sign Permit, provided that the Electronic Changeable Copy Sign replaces an existing internally illuminated sign legally established prior to July 1, 2026, occupies the same location as the existing sign, and is no larger than the existing sign. b. An Electronic Changeable Copy Sign located on a street other than a local street may be allowed with a Sign Permit.
c. All other Electronic Changeable Copy Signs shall require approval of a Minor Use Permit.

Packet Page 86
Organization Address Address Road Type Corner W/Local? Other Corner? Bethel Missionary Baptist Church 390 Elm Ave Local Yes No Breaking Bread Ministry 1760 Fremont Blvd Mixed Use Boulevard Yes No Carpenter's House 1309 Broadway Ave Neighborhood Arterial Yes Yes Christian Memorial Church of God in Christ 520 Sonoma Ave Collector Yes No Church of Christ 1310 Broadway Ave Neighborhood Arterial Yes Yes Church of Jesus Christ of Latter-day Saints 1024 Noche Buena St Collector No Yes Covenant Presbyterian Church 1949 Waring St Local No No Emmanuel Church of God in Christ 1450 Sonoma Ave Collector Yes No Faith Lutheran Church 1460 Hilby Ave Collector No No
Friendship Baptist Church 1440 Broadway Ave Neighborhood Arterial Yes No Greater Victory Temple 1620 Broadway Ave Neighborhood Arterial No Yes Hays CME Church 625 Elm Ave Local No Yes
Hope Presbyterian Church 1460 Hilby Ave Suite B Collector No No Islamic Society of Monterey County 405 Elm Ave Local Yes No La Iglesia de San Pablo 1092 Noche Buena St Collector Yes Yes Lighthouse Baptist Church 1030 Hilby Ave Collector Yes No Lighthouse Full Gospel Church 1153 Hamilton Ave Local No No Monterey Bay Christian Center 1184 Hilby Ave Collector No No Monterey Korean Baptist Church 601 Sonoma Ave Collector No Yes Monterey Peninsula Buddhist Temple 1155 Noche Buena St Collector No Yes Monterey Peninsula Ramayan Bhajan Mandali 1182 Waring St Local No No New Hope Baptist Church 1304 Sonoma Ave Collector Yes Yes Ocean View Baptist Church 1200 Amador Ave Local Yes No
Salvation Army 1491 Contra Costa St Local Yes No
Seaside Community Church 986 Hilby Ave Collector Yes No Seaside Community Seventh-day Adventist Church 1600 Broadway Ave Neighborhood Arterial No Yes Seaside Hilltop United Methodist Church 1340 Hilby Ave Collector No Yes St. Francis Xavier Catholic Church 1475 La Salle Ave Collector Yes No St. Seraphim Orthodox Church Laguna Grande Park / Canyon Del Rey Blvd Regional Arterial No No Bold = Local street frontage(s) only
Italic = Local street frontage(s) in addition to other street type frontages Plain Text = No local street frontages
Packet Page 87

CITY OF SEASIDE

STAFF REPORT
Item No.: 10.A.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Greg McDanel, City Manager
DATE: October 1, 2026
SUBJECT: DISCUSSION AND DIRECTION REGARDING A POTENTIAL

RESPONSIBLE BUSINESS DISCLOSURE AND UNSATISFIED

FINAL WAGE JUDGMENT ORDINANCE

RECOMMENDATION
Receive a report regarding potential City policies addressing responsible business disclosures and unsatisfied final wage judgments, and provide direction regarding whether and within what scope staff should prepare an ordinance for future City Council consideration.

BACKGROUND
Wage theft is a general term used to describe the nonpayment of compensation legally owed to an employee. Examples may include unpaid minimum wages or overtime, unlawful deductions, off-the-clock work, or failure to issue required final wages. Claims may involve disputed facts and complex state and federal employment laws. The California Labor Commissioner's Office, courts, and other authorized agencies currently investigate and adjudicate these matters.

Effective January 1, 2026, Senate Bill 261 amended California law concerning unpaid wage judgments. Labor Code section 238.05 addresses a final judgment arising from nonpayment of wages for work performed in California that remains unsatisfied for at least 180 days after the time to appeal has expired, and no appeal is pending. The law allows enhanced civil penalties, subject to specified exceptions, including a qualifying accord with which the judgment debtor remains in compliance.

A potential Seaside policy could use this final-judgment framework as an objective standard when the City exercises its contracting or other discretionary authority. Under Packet Page 88

Item No. 10.A. Page 2 of 4
this approach, the City would not investigate wage complaints, determine whether wage theft occurred, recover wages for an employee, or replace the Labor Commissioner's enforcement role. The City would consider an existing final and enforceable judgment when deciding whether to award a covered discretionary benefit.

Municipal Approaches
California municipalities have taken different approaches based on local policy goals and organizational capacity. Larger jurisdictions may operate labor standards offices that receive and investigate local complaints. Other cities rely on final court or agency determinations and connect compliance to business licensing, construction permitting, or procurement. A more limited responsible-contracting policy may require bidders to disclose final wage judgments and allow the City to consider an unresolved judgment when determining whether a contractor is responsible and eligible for an award.For an organization of Seaside's size, the scope of any policy would materially affect workload, legal exposure, procurement timelines, and the need for hearing or appeal procedures.

The Council may therefore wish to consider a focused policy before directing staff to develop a broader regulatory program.

DISCUSSION
Potential Scope
The Council may consider the following general approaches:

Approach Potential Coverage Principal Considerations
No local policy Continue relying on existing
state enforcement and the
City's current procurement
rules.

No new administrative program.

The City would not add a local
consequence specifically tied to
unpaid wage judgments.

Focused policy Significant City contracts,
public works, and direct
City financial assistance.

Most closely connected to the
City's proprietary and financial
interests. Clear dollar thresholds
and cure procedures would be
needed.

Broader
ordinance
Contracts and financial
assistance plus leases,
franchises, development
agreements, or other
discretionary City benefits.

Broader reach would require
additional legal analysis,
departmental coordination, and
administrative capacity.

Policy Direction Requested
If the Council wishes staff to proceed, direction would be helpful on the following questions:
• Should the City develop a local policy, or continue relying on existing state enforcement and City procurement requirements?
Packet Page 89

Item No. 10.A. Page 3 of 4
• Should the policy initially be limited to significant City contracts, public works, and direct financial assistance, or should staff evaluate additional discretionary City benefits?
• Should the policy apply only to the primary applicant or contractor, or also to material subcontractors, affiliates, assignees, or operating entities? • Should the policy establish minimum contract or benefit thresholds to exclude routine purchases and minor agreements?
• What opportunity should a business have to demonstrate payment, a qualifying payment agreement, a stay, an appeal, or other corrective action? • Should exceptions be available for emergencies, essential operations, sole-source procurements, or circumstances in which no reasonably available alternative exists?
Administrative and Legal Considerations
Any policy returned for Council consideration would need to define an objective trigger, identify reliable sources for verifying judgments, align with the City's purchasing requirements, and provide notice and an opportunity to respond before an applicant is found ineligible. Staff would also need to determine responsibility for reviewing disclosures, maintaining records, monitoring required updates, and administering any appeal.

A broader policy could affect Finance, Public Works, Community Development, the City Manager's Office, and the City Attorney. It could also require new solicitation language, contract provisions, disclosure forms, verification procedures, and hearing services.

These requirements should be evaluated before the Council considers final legislation.

If directed to proceed, staff recommends first evaluating a focused policy tied to significant City contracts, public works, and direct City financial assistance. This would maintain a clear connection to the City's proprietary interests and allow the organization to assess workload and effectiveness before considering broader application. Any proposed ordinance or policy would return to the Council with legal review, implementation procedures, and a more complete fiscal analysis.

Environmental Review
Receiving this report and providing policy direction is not considered a project under the California Environmental Quality Act because the discussion does not commit the City to a course of action that may result in a direct or reasonably foreseeable indirect physical change in the environment. Any future ordinance would include the appropriate environmental determination when presented for consideration.

Options
• Direct staff to return with a focused policy addressing significant City contracts, public works, and direct City financial assistance.

Packet Page 90

Item No. 10.A. Page 4 of 4
• Direct staff to evaluate a broader ordinance and identify the additional City benefits that should be covered.
• Request additional information or community and business outreach before providing direction.
• Take no further action at this time.

Next Steps
If the Council directs staff to proceed, staff will refine the proposed scope with the City Attorney, evaluate administrative responsibilities and costs, and return at a future meeting with a proposed ordinance or a responsible-contracting policy.

FISCAL IMPACT
There is no direct fiscal impact associated with receiving this report and providing policy direction. Staff would provide a more specific fiscal and workload analysis with any future proposal.

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

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 91

CITY OF SEASIDE

STAFF REPORT
Item No.: 10.B.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Greg McDanel, City Manager
DATE: October 1, 2026
SUBJECT: RECEIVE THE FY 2025-2026 STRATEGIC PLAN YEAR-END

PROGRESS REPORT

RECOMMENDATION
Receive the FY 2025–2026 Strategic Plan year-end progress report and provide direction on any priorities or implementation matters requiring follow-up.

BACKGROUND

BACKGROUND
The City Council’s Strategic Plan organizes City priorities around five pillars: Effective, Accessible Governance; Vibrant Local Economy; Diverse, Inclusive Community; Enhanced Infrastructure, Mobility, and Water Resilience; and Community Safety and Quality of Life. Staff provides periodic progress reports to help the Council and community track implementation of the plan.

DISCUSSION
The year-end report summarizes progress through June 30, 2026, the close of FY 2025- 2026. It identifies accomplishments across the five pillars and provides the status of actions that were completed, remained in progress, experienced delays, or had not yet begun at year-end.

Staff will present the report and respond to Council questions. This item is presented for receipt and does not request a change to the Strategic Plan.

FISCAL IMPACT
There is no direct fiscal impact associated with receiving the year-end progress report.

Packet Page 92

Item No. 10.B. Page 2 of 2
Any future expenditure related to an individual Strategic Plan action would be considered through the applicable budget or separate Council action.

STRATEGIC PRIORITY
Effective Accessible Governance, Vibrant Local Economy, Diverse and Inclusive Community, Enhanced Physical Infrastructure & Abundant Water Supply, Community Safety & Quality of Life, Not Applicable

ATTACHMENTS
None
Reviewed for Submission to the City Council by:

____________________________________
Greg McDanel, City Manager
Packet Page 93

CITY OF SEASIDE

STAFF REPORT
Item No.: 10.C.

TO: City Council
FROM: Greg McDanel, City Manager
BY: Dan Meewis, Assistant City Manager
DATE: October 1, 2026
SUBJECT: REVIEW OF CANNABIS DISPENSARY AGREEMENTS AND

ANNUAL OVERSIGHT

RECOMMENDATION
Receive a report regarding the compliance of cannabis dispensary operators with their respective Development/Operating Agreements, including the preliminary findings and the City Manager's Office plan for annual oversight. Provide direction regarding any further documentation or follow-up review Council wishes staff to pursue.

BACKGROUND
The City of Seaside regulates cannabis dispensaries through discretionary land use approvals and Development/Operating Agreements between the City and individual cannabis operators. These agreements establish operational requirements and incorporate commitments regarding public benefits, local hiring, wages, community investment, charitable contributions, and other community benefits.

Article 4 of the Development/Operating Agreements establishes the public-benefit framework. Among other provisions, operators agree to use reasonable efforts to hire qualified Seaside residents and to comply with the local hiring and wage commitments contained in their respective Community Benefit Plans. The agreements also provide a mechanism for periodic and special review of compliance.

Under the special-review provisions, the City Council may order a review of an operator's compliance at any time. During a special review, the operator is required to demonstrate good-faith compliance with the terms of the agreement, and the burden of demonstrating compliance rests with the operator. If substantial evidence Packet Page 94

Item No. 10.C. Page 2 of 10
demonstrates that an operator has not complied in good faith, the agreements provide a process through which the City Manager may recommend modification or termination of the agreement, subject to City Council action.

At its August 6, 2026 meeting, the City Council requested that staff review the City's cannabis Development/Operating Agreements and report on compliance with commitments related primarily to community benefits and employee wages. On September 3, 2026, staff sent written requests for information to CannaCruz, Halfpipe, Rare Earth, and The Reef identifying specific commitments and requesting documentation demonstrating current compliance. Staff has since reviewed operator responses and supporting materials and summarizes its preliminary observations in this report.

The amended STIIIZY agreement is discussed separately because its first annual compliance report is not yet due.

AGREEMENT HISTORY
The dates shown below identify the original agreement dates and subsequent transfers or amendments. Several of the original agreements state that the printed agreement date is for execution purposes only and separately define an Effective Date.

Accordingly, annual and operational obligations should be evaluated from the applicable Effective Date, commencement of operations, transfer date, or other trigger specified in the agreement or Community Benefit Plan.

Packet Page 95

Item No. 10.C. Page 3 of 10

DISCUSSION
Staff's review focused on the commitments contained in each operator's Development/Operating Agreement and incorporated Community Benefit Plan. Because the plans were developed as part of different permitting and transfer processes, the specific commitments and applicable compliance periods vary among operators. The following summarizes the principal findings and information received to date.

CannaCruz - 680 Broadway Avenue
CannaCruz's 2024 agreement incorporates employment and community-benefit commitments that include an $18 per hour starting wage, employer payment of 50 percent of health insurance for eligible employees working an average of 20 or more hours per week following a 90-day probationary period, a hiring preference for Seaside residents, diversity/equity/inclusion and nondiscrimination practices, use of Seaside contractors and businesses, bilingual access, community giving and volunteer activities, and discounts for veterans and seniors.

CannaCruz has also reported community activities undertaken in Seaside, including Packet Page 96

Item No. 10.C. Page 4 of 10
hosting and sponsoring a beach clean-up, maintaining donation boxes at its location to collect supplies for Community Human Services, and hosting community event days in coordination with neighboring businesses. According to the operator, those events have included local food trucks, artists, clothing vendors, and other small businesses. These activities are relevant to the community-giving and local-business components of the plan; however, where supporting documentation has not independently verified the activity or where the commitment is ongoing, staff has treated the information as partially demonstrated rather than as complete historical compliance.

Halfpipe Cannabis / GBH Seaside LLC - 840 Broadway Avenue, Suite B-3 The original Development/Operating Agreement was entered into with PHSL LLC/Sugar Leaf Trading Company in 2018 and transferred to GBH Seaside LLC/Halfpipe on October 31, 2023. The transfer placed the rights, responsibilities, and conditions of approval on GBH Seaside LLC from the transfer forward.

Halfpipe's Community Benefit commitments reviewed by staff include a contribution to the City's Parks and Recreation Department identified in the City's September 3 inquiry as 1 percent of profits or $10,000, whichever is greater; charitable/community contributions; community board participation or sponsorship; a Seaside hiring preference; employee compensation of at least $40,000 annually for full-time employees with the plan referencing an approximately $17 hourly rate; and an employee revenue-sharing program.

GBH Seaside provided a September 3, 2026 employee list identifying 12 employees, four of whom list Seaside addresses, or approximately 33 percent. Reported hourly wages range from $18.00 to $24.50, exceeding the approximately $17 per-hour benchmark; however, the information reviewed does not establish that every full-time employee earns at least $40,000 annually. Staff also reviewed a profit-and-loss statement covering 2023 through July 31, 2026 and a September 2026 community food-drive flyer. The food drive demonstrates a community activity, but the materials reviewed do not by themselves demonstrate all charitable, board/sponsorship, Parks and Recreation contribution, or employee revenue-sharing commitments. Further documentation is needed to evaluate those commitments for each applicable period.

Rare Earth / Rare Earth Botica - 575 Broadway Avenue
Rare Earth's original Development/Operating Agreement dates to 2018. The commitments reviewed include preference for qualified Seaside residents, participation in marketing and promotion of the West Broadway Urban Village, contributions equal to Packet Page 97

Item No. 10.C. Page 5 of 10
5 percent or more of gross revenues to nonprofit organizations in the community, and a discount program for qualifying residents. The agreement also contains a mandatory wage provision requiring wages to be paid in accordance with the wage rate established in the incorporated Community Benefit Plan; however, the materials reviewed by staff do not identify a clear specific hourly wage rate for purposes of this review.

In its September 14, 2026, response, Rare Earth reported that qualified Seaside applicants are considered first and that approximately one-third of its current staff are Seaside residents. The operator also reported use of Seaside-based contract employees and Seaside businesses for vendor and third-party services. Rare Earth reported spending thousands of dollars promoting the business and West Broadway Urban Village through online, print, and tradeshow marketing, providing musical entertainment during Exotics on Broadway, and sponsoring the Seaside Music Festival.

Rare Earth also reported community contributions, including support for Greater Victory Temple Church of God in Christ youth programs and donated musical services at fundraising events. With respect to the commitment to contribute 5 percent of gross revenues to nonprofit organizations, Rare Earth stated that it has not met that contribution level because actual revenues have fallen substantially below its original projections and that it intends to continue contributing as feasible. Because the operator acknowledges that the specified 5 percent contribution level has not been met, staff identifies an acknowledged shortfall, with the amount and applicable periods requiring further reconciliation.

For the discount commitment, Rare Earth reported providing significant discounts to patrons experiencing severe illness or recovery, including cancer or addiction, but stated that it does not require medical records and handles eligibility on a case-by-case basis. Staff therefore treated this commitment as Partially Demonstrated because the practice described does not fully match the physician-documentation component identified in the original commitment.

The Reef / Canopy Monterey Bay LLC – 1900 Fremont Boulevard The Reef operates under the Development/Operating Agreement originally established in 2018. Staff reviewed commitments concerning local hiring, employee wages, and annual nonprofit contributions. The agreement includes a mandatory wage provision requiring employee wages to be paid in accordance with the Community Benefit Plan.

The original Community Benefit materials also referenced approximately $911,000 in projected first-year wages, although staff did not identify a specific minimum hourly wage in the materials reviewed.

In its September 14, 2026 response, The Reef reported eight current employees, two of whom are Seaside residents (25 percent). The operator reported an average hourly Packet Page 98

Item No. 10.C. Page 6 of 10
rate of approximately $20 per hour plus tips and access to health, dental, and vision coverage, paid time off, sick leave, and reimbursable continuing education. The operator further reported that it continues to favor qualified Seaside residents as hiring opportunities arise.

The Community Benefit Plan calls for annual nonprofit contributions, including $10,000 per year to the Boys & Girls Club of Monterey County and $10,000 per year to Community Human Services, or qualifying nonprofit recipients as applicable under the plan. The Reef stated that it made the annual contributions through 2023 but made no nonprofit donations in 2024 or 2025 because of financial constraints. The operator acknowledged the shortfall and stated that beginning in 2026, and each year thereafter until the shortfall is closed, it intends to donate at least $15,000 to each nonprofit organization, or $30,000 total annually.

Staff independently contacted the Boys & Girls Club of Monterey County to verify contributions received from Canopy Monterey Bay LLC. The Boys & Girls Club confirmed receipt of two $10,000 contributions: August 24, 2022, and August 14, 2023, for a total of $20,000. The organization also reported that in September 2025, Canopy Monterey Bay LLC indicated that it intended to make another $10,000 contribution and apologized for the delay. Boys & Girls Club staff followed up several times through February 2026 but reported that no additional response or contribution was received.

The Boys & Girls Club also provided important context regarding the period prior to 2022. The organization stated that it did not begin accepting cannabis-related donations until 2022 based on guidance from Boys & Girls Clubs of America concerning potential implications for organizations receiving federal funding. Accordingly, the absence of contributions to the Boys & Girls Club between 2018 and 2021 should not, by itself, be interpreted as evidence that The Reef failed to satisfy its Community Benefit obligations during those years. Additional review would be necessary to determine whether contributions were made to another qualifying nonprofit organization or otherwise satisfied the applicable Community Benefit requirement during that period.

Staff also independently contacted Community Human Services, which confirmed receipt of three $10,000 contributions from Canopy Monterey Bay LLC on April 16, 2020; August 22, 2022; and August 18, 2023, totaling $30,000. Community Human Services reported that it did not identify additional contributions in its records, while acknowledging the possibility that contributions could have been made under another name or in different amounts.

Based on the information currently available, the documentation confirms $50,000 in combined contributions to the two identified nonprofit organizations: $20,000 to the Boys & Girls Club of Monterey County and $30,000 to Community Human Services.

However, the documentation does not establish that the annual contribution Packet Page 99

Item No. 10.C. Page 7 of 10
commitments were satisfied for every applicable year. In particular, The Reef has acknowledged that the required nonprofit contributions were not made in 2024 or 2025 and has proposed increased annual contributions beginning in 2026 to address the outstanding shortfall. Staff will reconcile the annual obligations, any qualifying contributions to other organizations, and the operator’s proposed payment plan. The acknowledged absence of contributions in 2024 and 2025 should be distinguished from earlier years for which documentation remains incomplete.

STIIIZY Seaside - 1440 Canyon Del Rey Boulevard
The underlying Development/Operating Agreement was originally entered into with Higher Level of Care LLC in 2018. On July 16, 2026, the City approved a transfer and amendment to STIIIZY Seaside LLC. Under the transfer, STIIIZY assumed the rights, responsibilities, and conditions of the Development/Operating Agreement, and the prior Community Benefit Plan was replaced with a new Exhibit C.

The amended agreement expressly provides that STIIIZY's benefits, including charitable contributions, are to be provided on a calendar-year basis. On or before February 1 of each calendar year, STIIIZY is required to submit a report to the City detailing activities during the prior calendar year demonstrating compliance.

The amended Community Benefit Plan establishes starting wages including $20.50 per hour for Dispensary Sales Associates and $75,000 plus bonus for the General Manager; access to health coverage for employees averaging at least 20 hours per week, with the company paying 70 percent of the premium; a minimum of $15,000 annually in contributions to Seaside-based nonprofit organizations; community outreach and educational/volunteer activities; a compassionate-care initiative; local hiring and workforce-development efforts; and prioritization of Seaside trades, vendors, and service providers when feasible. The first annual compliance report is not yet due. Staff will evaluate the obligations applicable to the 2026 calendar year when that report and supporting documentation are available.

COMPLIANCE REVIEW AND ANNUAL OVERSIGHT
Staff’s initial review has identified different levels of performance and documentation.

Some reported activities are supported by the information received, while other commitments are only partially documented. Rare Earth and The Reef have acknowledged shortfalls in specified nonprofit contributions. For other recurring obligations, additional records are needed to determine what was required and what was provided in each applicable year. STIIIZY’s first annual report under its amended Packet Page 100

Item No. 10.C. Page 8 of 10
agreement is not yet due. These observations are preliminary and do not constitute final determinations of contractual default.

The review has also identified a gap in the City’s administration of these agreements.

The City has not maintained a consistent annual process to request supporting records, assess performance against each operator’s specific commitments, and document the results. The City Manager’s Office will take responsibility for establishing and maintaining that process. It will track the obligations and reporting dates in each agreement, request the required documentation, coordinate review with the appropriate City departments, and record an annual assessment for each operator, including any outstanding information or follow-up action.

For the current review, the City Manager’s Office will seek the additional records needed to reconcile prior-year obligations and evaluate the acknowledged shortfalls.

Staff will return to the City Council with its findings, unresolved issues, and any recommended action. Where the completed review identifies potential noncompliance, the City will follow the review, notice, and cure procedures in the applicable agreement before recommending enforcement action. The City Manager’s Office will thereafter provide the Council with an annual summary of the operators’ compliance status and any matters requiring further action.

NON-COMPLIANCE AND ENFORCEMENT
The Development/Operating Agreements provide that operators are responsible for demonstrating good-faith compliance with their respective agreements. If, following the review process, the City Manager determines based upon substantial evidence that an operator has not complied in good faith, the City Manager may recommend that the City Council terminate the agreement or modify the agreement and impose conditions reasonably necessary to protect the City's interests.

The agreements also contain default-and-remedy provisions. Generally, failure or delay in performing a term or provision may constitute a default, subject to written notice and an opportunity to cure. The agreements generally provide a 30-day cure period, with additional time where a default cannot reasonably be cured within 30 days so long as the operator begins the cure within the applicable period and diligently pursues completion. Following the applicable procedures, the City may pursue remedies available under the agreement, at law, or in equity.

STIIIZY's 2026 transfer agreement is particularly explicit that failure to comply with conditions and responsibilities, including public benefits in the Development/Operating Agreement, may result in enforcement actions and could result in revocation of the Use Packet Page 101

Item No. 10.C. Page 9 of 10
Permit, Development/Operating Agreement.

NEXT STEPS
Following Council's review of the information presented, Council may receive and file the report, request additional documentation, or provide direction to staff regarding specific commitments requiring further review. Where documentation does not establish full compliance for an annual or recurring obligation, the City Manager's Office will continue to reconcile the applicable years and return with additional findings as appropriate. The City Manager's Office will implement the annual documentation and review process above and provide Council with an annual status summary.

If the record establishes potential noncompliance, staff can proceed consistent with the review, notice, hearing, default, cure, and remedy provisions of the applicable Development/Operating Agreement. Staff recommends that any formal finding of default or enforcement action be made only after completion of the procedures required by the applicable agreement.

FISCAL IMPACT
There is no direct fiscal impact associated with receiving this report.

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

ATTACHMENTS

1. Letter 2026-09-03 CannaCruz

2. Letter 2026-09-03 Halfpipe

3. Letter 2026-09-03 Rare Earth

4. Letter 2026-09-03 The Reef

5. AG 2026-138 Cannabis Dispensary Development and Operating Agreement Transfer - STIIIZY Seaside, LLC.

Reviewed for Submission to the City Council by:

Packet Page 102

Item No. 10.C. Page 10 of 10

____________________________________
Greg McDanel, City Manager
Packet Page 103
Packet Page 104
Packet Page 105
Packet Page 106
Packet Page 107
Packet Page 108
Packet Page 109
Packet Page 110
Packet Page 111
Packet Page 112
Packet Page 113
Packet Page 114
Packet Page 115
Packet Page 116
Packet Page 117
Packet Page 118
Packet Page 119
Exhibit A to Draft Development Operating Agreement: Location Map 680 Broadway Avenue
APN: 011-291-019
Packet Page 120
RESOLUTION NO. 17-100

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASTOE

GRANTING THE APPROVAL OF A DISCRETIONARY USE PERMIT TO ALLOW A MEDICAL/ADULT RECREATIONAL CANNABIS FACILn'Y LOCATED AT 680 BROADWAY (APN# 011-291-019) IN THE MDOED USE (MX) ZONING DISTMCT.

WHEREAS, Baird Family Trus^Peter Baiid, property owner and CannEdge LLC, dba Cannatopia, applicant, have applied for a Discretionary Use Permit to allow:

A. The establishment of a MedicaVAdult Recreation Cannabis facility.

WHEREAS, the proposed project requires discretionary use permit approval, and it is the responsibility of the Planning Commission in the Seaside Municipal Code to have considered and weighed the merits of the application and public input in relation to the policies, standards and intent of the Seaside General Plan and Seaside Municipal Code in making a recommendation on fhe proposed cannabis facility to the City Council; and
WHEREAS, the Seaside Plamung Uonunission considered oral comments and written information concerning the proposed amendment at fhree duly noticed special public meetings held on December 4, 2017, December 5, 2017, and December 20, 2017; and WHEREAS, the Seaside Planning Commission acted to declare the application as being a qualified applicant on December 20, 2017 and made a recommendation (hat fhe City Council consider the application for the issuance a cannabis facility; and
WHEREAS, the Seaside Municipal Code requires the approval of a discretionary use permit by fhe City Council for a Medical/Adult Recreation Caimabis facUity, and it is the responsibility offhe City Council to have considered and weighed the merits of the appUcation and public input in relation to the policies, standards and intent of the Seaside General Plan and Seaside Municipal Code in review of the application; and
WHEREAS, the Seaside City Council considered oral comments and written information concerning the proposed amendment at a duly noticed special public meeting held on December 28, 2017; and
WHEREAS, the project is a Categorically Exempt, Class 1, Section 15301 meeting the following conditions:
a) The proposed development will consist of converting an existing commercial building into a retail medieal/adult recreation eannabis facility which will not change the intensity of the project site or the City's infrastructure ofF-site in order to accommodate the proposed use. It can be seen with certainty that the proposed use wiU not create any significant environmental impact on the community and neighboring properties.

Packet Page 121
NOW, THEREFORE, BE IT RESOLVED, that the City Council adopts the following findings for (he MedicaI/Adult Recreation Cannabis facility Discretionary Use Permit 1) The proposed use is aUowed within (he applicable zone and complies with all other applicable provisions of this Zoning Ordinance and the Municipal Code.

Evidence: This project is located within the Mixed use Zoning District in which a MedicaVAdult Recreation Cannabis facility may be established with use permit approval.

Evidence: The applicant will provide sufficient security measures to both deter and prevent unauthorized entrance into the facility, eliminate any unauthorized loitering inside and outside of the facility, and minimize excessive calls for service by the City's public safety resources.

Evidence: There are no existing cannabis dispensary facilities operating within 1,000 feet of the project site.

Evidence: Cannatopia scored full points for location of business, which will serve as a catalyst project for the City of Seaside within the West Broadway Urban Village Specific Plan.

Evidence: Cannatopia scored well for business plan points by demonstrating revenue and capitalization, achievable within the City of Seaside based on the project location being located within an established retail area and the project location having access from the City's entrances on Fremont Boulevard to the north and south and the entrance on Broadway Avenue to the east.

Evidence: Cannatopia scored well for local enterprise and community benefits points, which fosters economic and community development within the City of Seaside and provides financial contributions to local non-profit community organizations within the City of Seaside.

Evidence; Cannatopia scored full points for neighborhood compatibility with commitments to exemplary security and facade improvement upgrades, which promotes neighborhood unity and land use compatibility/vitality within the City of Seaside.

Evidence: Cannatopia scored well for safety and security, which helps to provide public safety wifhin the City of Seaside by not creating any type of nuisance which would be detrimental to the overall general health, safety and welfare of the community and/or cause a financial burden on public safety resources for unnecessary calls for service. 2) The proposed use is consistent with the General Plan and any applicable specific plan.

Seaside General Plan Confoimance
Evidence: Per the General Plan Land Use Element, the site is designated as Mixed use (MX) West Broadway Urban Village Specific Plan. The following Goals and Policies would apply:

Land Use Element Goal LU-1: Promote a mixture of land uses and a balance of jobs and housing to support a community in which people can live, work, and play.

Packet Page 122
Land \Use Element Policy LU- 1.1
Land Use Element Policy LU-1.2:

Land Use Element Goal LU-1. 3:

Evidence: The project site will be contained wifhin an existing commercial building which has demonstrated that it can contain the necessary capacity to operate a cannabis dispensaiy without overburdening existing roadways and City infrastructure.

The proposed use would serve to implement and diversify the land uses within the West Broadway Urban Vfllage Specific Plan and improve the City's job housing balance.

Evidence: The project would occupy a vacant tenant space, increase pedestrian activity, have the potential for increased pass by trips for adjoining businesses, and wUl employ Seaside residents.

The proposed use will serve to provide additional jobs to improve the City's job housing balance.

Evidence: The project will employ Seaside residents.

Encourage regional commercial and visitor-serving commercial development that will enhance the identity of Seaside and attract visitors to the community.

Evidence: The project would occupy a vacant tenant space, increase pedestrian activity, and complete a commercial fayade upgrade.

Land Use Element Goal LU-2:

Element Policy -LU-2.1:

Revitalize existing commercial areas.

Evidence: The cannabis facility will serve to establish a regional commodity within the City of Seaside that will provide a substantial investment within the commimity that will serve to improve the character offhe West Broadway Spedfic Plan area and attract customers both from the Monterey Bay area and tourism.

The proposed project will serve to revitalize an existing commercial area of the community that is targeted as a specific plan area to provide new jobs and services as the downtown core of the community.

Evidence: The proposed use will serve to fill a vacant commercial site and remove a blighted condition through the extended vacancy of the site since it was consh-ucted.

Packet Page 123
3) The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and planned future land uses in (he vicinity.

Evidence: The proposed Medical/Adult Recreation Cannabis facility will meet <fae needs of the community consistent within the West Broadway Urban Village Specific Plan design goals and improve the overall business character with the infusion of new facade treatments and monetary investment in the infi-astructure of the site.
4) The site is physically suitable for the type, density and intensity of discretionary use being proposed, including access, utilities, and the absence of physical constraints.

Evidence: The project site is served by existing water, wastewater, and electrical infrastructure and facilities with adequate capacity to serve the proposed project. The proposed conversion of a retail commercial building to a Medical/Adult Recreation Caimabis facility with interior changes and exterior fayade changes conforms to Land Discretionary use Element of the Seaside General Plan. 5) Granting the permit would not be detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicimty and zone district in which the property is located.

Evidence: The proposed Medical/Adult Recreation Cannabis facility will provide for a community facility that is safe and attractive for a Cannabis dispensary use.

Evidence: The proposed conversion of a commercial retail bmlding to a Medical/Adult Recreation Cannabis facility would not be detrimental to the public health, safety and general welfare of the people of the City and surrounding neighborhood. The proposed use is located on an in-fill site and would help maintain a compact city form consistent with the scale and character of the surrounding commercial neighborhood.

BE IT FURTHER RESOLVED, that fhe City Council approves (he Discretionary Use Permit Application for "Caimatopia" subject to the following conditions:

Project Specific
Plamung;

1. Except as modified by required conditions of approval, the permittee shall have the right to operate a Medical/Adult Recreation Retail Cannabis Facility substantially in accordance with the project material stamped "Received by the City of Seaside November 21, 2017" and subject to the floor plan and exterior facade being modified to comply with the general Cannabis and conditions listed. The aerial site plan is provided as Exhibit "A".

Cannabis

1. Cannabis may not be inhaled, smoked, eaten, ingested, or otherwise consumed within the Business, on the Property, in the parking areas of the Property, or in those areas restricted under the provisions of Health and Safety Code §11362. 79.

Packet Page 124

2. All storage, display, sales or other distribution ofcannabis shall occur only within an enclosed area of a medical cannabis business and shall not be visible from the exterior of the business.

Delivery shall be as approved by fhe Seaside Police Department.

3. The cannabis facility shall have an odor-absorbing ventilation and exhaust system to ensure that odor generated inside the premises is not detected outside the premises.

4. A sign shall be posted in a conspicuous location inside the property advising that use of cannabis may impair a person's ability to drive a motor vehicle or operate heavy machinery.

5. No person, other than a patient, caregiver, licensee, employee, or a contractor shall be in the medical carmabis dispensary room.

6. Medical/Adult Caimabis Dispensary hours of operation shall be as regulated by State and City law.

7. Adults 21 and over can buy cannabis at retail dispensaries with an "A" adult use license as of Jan 1, 2018 as regulated by State Law.

8. No Caimabis Dispensary, Management Employee or employee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on the Property or in the parking area of the property.

Testing. Packaemg, Labeline

9. All cannabis product labels shall also include the following information, prominently displayed and in a clear and legible font: For packages containing only dried flower, the net weight of medical cannabis in the package; A warning if nuts or other known allergens are discretionary used; List ofpharmacologically active ingredients, including, but not limited to, tetrahydrocannabmol (THC), cannabidiol (CBD), and other cannabinoid content, the THC and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total; Clear indication, in bold type, that the product contains medical cannabis; Identification of the source and date of cultivation and manufacture.

10. Only generic food names may be used to describe edible medical cannabis products. Businesses should refer to State and local law to determine what activities are permitted or prohibited for licensed dispensaries in the City of Seaside. Failure to comply may result in penalties, suspension or revocation of the dispensary business license.

Transportation

11. All caimabis-infused products must be hand packaged, sealed and labeled, and the products stored in closed containers that are labeled. All medical cannabis m a usable form for medicinal use must be packaged and stored in closed containers that are labeled.

Packet Page 125

12. Each container used to transport or deliver cannabis must be labeled as regulated by State law.

The label shall be shown to any law enforcement ofBcer who requests to see the label.

Community Relations

13. Each Cannabis Business shall designate a Community Relations Liaison, who shall be at least twenty-one (21) years of age; and shall provide the Liaison's name to the City Manager. The Liaison shall receive all complaints received by the City Manager regarding the MedicaVAdult Cannabis Dispensary, and make good faith attempts to promptly resolve all complaints.

Inspections

14. State and Local representatives (Health, Fire and Building inspectors) may enter and inspect the Property of each Cannabis Business between fhe hours of nine (9) am and eight (8) pm or during normal business hours.

15. Licensing authorities and State and Local agencies may, at any time, inspect shipments and request documentation for current inventory.

16. Every Cannabis Business shall implement sufficient security measures, as approved by the Seaside Police Dqiartment to both deter and prevent unauthorized entrance into areas containmg cannabis or cannabis products and theft ofcannabis or cannabis products. These security measures, as appropriate, shall include, but not be limited to, the following: (a) Preventing individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business; (b) Establishing limited access areas accessible only to authorized personnel; (c) Storing all finished cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss.

17. Each Camiabis Business shall install and maintain a fully operational digital video surveillance and camera recording system that monitors no less than the front and rear of the Property, all points ofingress and egress at the business, all points of sale within the business, all areas within the business where medical cannabis products are displayed for sale, and all limited access areas within the facility as approved by the Seaside Police Department.

18. The video and surveillance system shall, at a minimum, meet the following requirements: (a) Capture a fall view of the public right-of-ways and any parking lot under the control of the medical cannabis business; (b) Record and maintain video 24/7 for a minimum of ninety (90) days, or as otherwise determined by the Seaside Police Dqiartment.

19. The cannabis busiuess shall install and use a safe for storage of any processed caimabis and cash on the property when the business is closed to the public. The safe shall be incorporated into the building as a secure recqrtacle.

20. The cannabis business shall install and discretionary use a fire and burglar alarm system that is monitored by a company that is staffed twenty-four hours (24) a day, seven (7) days a week.

Packet Page 126
The security plan submitted to the City shall identify the company monitoring the alarm, including contact information. Changes in the security plan shall be approved by the Seaside Police Dq)artment prior to implementation.

21. A cannabis business engaged in retail sales shall retain and maintain a security guard or patrol, licensed by the State of California, generally located at an indoor guard station, to an extent sufGcient to ensure safety and approved by the Seaside Police Dq>artment.

22. No dried caimabis shall be stored at the property in structures that are not completely enclosed, in an unlocked vault or safe, or in any other unsecured storage structure.

23. Windows and roof hatches at the Cannabis Business shall be secured so as to prevent unauthorized entry.

Accountine/Record Keemna

24. The Caimabis Business shall maintain an inventory management system. The point of sale software shall be, upon regulatory implementation of the MMRSA, compliant with the State Unique Identifier and Track and Trace Program.

25. The records of the business shall clearly track cannabis product inventory purchased and/or grown and sales and disposal thereof to clearly track revenue fi-om sales of any medical cannabis from other paraphernalia or services offered by the Cannabis Business.

26. The records shall clearly show the source, amount, price and dates of all caimabis received or purchased, and the amount, price, dates and business, patient or caregiver for all cannabis sold.

27. Each Cannabis Business shall keep a complete set of books of account, invoices, copies of orders and sales, shipping instructions, bills of lading, weigh bills, bank statements including cancelled checks and deposit slips and all other records necessary to show fully the business transactions of such licensee.

28. Each business shall maintain an inventory record documenting the dates and amounts of camiabis sold at the Property, and the daily amounts ofcannabis stored on the Property.

29. Receipts shall be maintained via a computer program or by pre-numbered receipts and discretionary used for each sale.

30. Each business shall maintain on-site proof of a valid Business License Permit issued by the City of Seaside.

31. All records kept and maintained by the licensee shall at all times protect the confidential information of the patient or caregiver. All records must be identified as confidential and any disclosure shall be limited in a manner that maintains the confidentiality of the information contained therein.

Packet Page 127

32. A Cannabis Dispensary holding a Business License Permit shall report to the City Manager each of the following within the time specified; provided that if no time is specified, such a report shall be provided within fifteen (15) days of the triggering event: (1) The transfer or change of ownership interest, business manager, or m the permit application at least thirty days before the transfer or change; (2) Sales and taxable transactions and file sales and discretionary use tax reports to fhe City quarterly; (3) A conviction of any disqualifying crime by any applicant of a Cannabis Business.

City Standards

33. Discretionary Use Permit approval is subject to revocation procedures contained in S.M.C.S.

17. 80.060 in the event any of the conditions of this approval are violated, this discredonary pennit was granted on (he basis of false or misleading information, written or oral, given willingly or negligently by the applicant or property owner, and/or (here has been a discontinuance of the discretionary use, or purposed for which the permit was issued, for a period of 1 80 days or more.

34. This Discretionary Use Permit is subject to procedures and requirements of Chapter 17.64 (Permit Implementation, Time Limits, and Extensions), and those related to appeals and revocation in Article 6 (Zoning Ordinance Administration) of Title 17 of the Municipal Code.

35. The applicant agrees as a condition and in consideration of the approval of this discretionary permit that it will defend, indemnify and hold harmless the City of Seaside or its agents, ofGcers and employees from any claim, action or proceeding against the City or its agents, ofBcers or employees to attack, set aside, void or annul this approval. The applicant will reimburse the City for any court costs and attorney's fees, which the City may be required by a court to pay as a result of such action. City may, at its sole discretion, participate in the defense of such action; but such participation shall not relieve applicant of his obligations under this condition. The City shall promptly notify the applicant of any such claim, action, or proceeding, and the City shall cooperate fully in the defense thereof.

36. Any proposed future development shall comply with the requirements of the applicable City and County agencies and must be in compliance with State Law.

37. The project shall comply with the requirements and the applicable ordinances of the Monterey Peninsula Water Management District (MPWMD) and Monterey Regional Water Pollution Control Agency (MRWPCA).

38. The project shall be responsible for all applicable local and/or regional development and/or impact fees including, but not limited to, sewer, water, and traffic fees, which shall be paid prior to building permit issuance.

39. This Discretionary Use Permit will expire 12 months from the date of approval. In accordance with Section 17.54.080.B. l.a of the Zoning Code, the applicant must file request for time extension at least 30 days prior to expiration date in order to receive consideration of time extension by the City CouncU.

Packet Page 128

40. For purposes of assuring compliance, the applicant, agents, representatives or their assignees agree not to deny or impede access to the subject property by City employees in the performance of their duties.

PASSED AND ADOPTED at the special meeting of the City Council of the City of Seaside, State of California, on the 28fh of December, 2017, by fhe following vote:

AYES: 4 COUNCILMEMBERS: Alexander, Campbell, Pacheco, Rubio NOES: 0 COUNCILMEMBERS: None
ABSENT: 1 COUNCILMEMBERS: Jones
ABSTAIN: 0 COUNCILMEMBERS: None
ATTEST:

APPROVED:

Ralph Rubio, Mayor
Lesley Milton-Rerig, City Clerk
Packet Page 129
Resolution No. 17-100
These permits are hereby accepted upon the express terms and conditions hereof, and shall have no force or effect unless and until agreed to, in writing, by the applicant and property owner(s).

The undersigned hereby acknowledge the approved terms and conditions and agree to fully conform to, and comply with, said terms and conditions within the time frames approved by the City of Seaside City Council.
, 3- ^-°r - / -7
Applicant's Signature Date
/.i. - -2- 9 -^ "7
Property O^nei^Slgnature (if different from above) Date Packet Page 130
12 SECTION B: LABOR EQUITY, DIVERSITY AND

INCLUSION
Labor and Employment
In addition to creating full-time, permanent positions, CannaCruz will make every effort to use city of Seaside contractors and businesses and to give preference to city of Seaside contractors and businesses who also hire other city of Seaside contractors and businesses.

Number of Employees
The number of employees at opening and at full capacity is approximately 20.

Positions and Responsibilities
The job titles and wage scale are as follows:

POSITION DESCRIPTION
General Manager The General Manager is responsible for all of the day-to-day activities required to operate the facility. These include, but are not limited to: HR and personnel management, management of inventory, production / processing and packing, reception activities, POS system operation, customer database, and employee training, and security. The Manager will assume the duties and responsibilities of any vacant position.

Quality Control Specialist /
Packaging & Labeling
Labeling all packages in accordance with CannaCruz and state procedures. Record keeping for all phases of packaging.

Management of quality control programs including but not limited to: Conduct internal audits and submit summary reports to management for review and the development of improvement strategies, batch packet review and final ‘positive release’, daily monitoring of operational procedures for compliance to all applicable regulations, guidelines and policies.

Information Specialist Meet with qualifying customers to discuss various aspects of their cannabis needs. Enter pertinent information into the customer database. Educate customers about various strains of cannabis, methods of administration, and recent medical studies on the effects of cannabis. Discuss other CannaCruz services that may enhance the customers experience such as treatment studies, Packet Page 131
13 support groups, seminars, reading material, community outreach programs, discount promotions, volunteer days, etc.

Inventory Manager Prepare and maintain documents that account for all cannabis received, stored, packaged, dispensed and destroyed.

Conduct
routine physical inventory counts and cycle counts.

Investigate
discrepancies in inventory and off target yields.

Maintain
accurate inventory in POS and parallel paper systems.

Receptionist Receive customers. Distribute and collect all required paperwork.

Verify eligibility of customers and compliance to rules governing ‘qualifying customers’. Maintain organized workspace. Data entry and additional clerical work as needed. Answer phones and email inquiries.

Register Clerk/Bud-Tender Convey cannabis packages from dispensing area to counter / POS register. Operate Point of Sale (POS) cash register and record purchase of cannabis products. Work with customers for
seamless service.

Security Chief Implement and maintain a security program. Manage security staff. Write routine reports. Monitor surveillance equipment for activities outside the normal CannaCruz activities. Actively solicit an open relationship with local law enforcement.

Review Safety
and Security Plan annually for updates. Monitor new laws and regulations that require security improvements. Train staff on security SOP’s.

Security Screen individuals requesting entrance to the facility. Monitor premises for activities outside the normal and acceptable activities. Monitor separate areas of the facility for the purpose of controlling access to those areas. Proactively identify safety concerns. Usher customers to the appropriate area. Write reports.

Bookkeeper Accounting and payroll for CannaCruz.

Janitor Facilities cleaning and maintenance. Daily disposal of trash.

Monitor CannaCruz facilities inside and outside to ensure a clean and organized facility.

Packet Page 132
14 Wages and Benefits
CannaCruz supports the concept of paying its employees a competitive living wage for their work.

Employee compensation will be commensurate with experience and qualifications and will be in line with the industry.

Heightened Pay and Living Wage
CannaCruz currently offers employees a competitive compensation package and living wage.

Minimum wage in California is currently $15.50, and we offer a starting wage of $18, plus benefits, which equates to $23 to $25. CannaCruz is committed to providing a living wage and fair compensation to all employees.

Employee Benefits
HEALTH
CannaCruz offers 50 percent paid health insurance to eligible employees, including spouse and dependent coverage. To be eligible, employees must work an average of 20 or more hours per week and successfully complete the 90-day probation period.

TIME OFF
CannaCruz offers all Employees the opportunity for a healthy work–life balance by encouraging planned time off, as long as workflow is maintained to CannaCruz standards. CannaCruz offers eligible Employees Paid Time Off (PTO) as paid sick leave and vacation/personal time off.

CannaCruz offers ineligible Employees various unpaid leaves and allowances that do not impact one’s attendance record. PTO for required sick leave will be accrued in keeping with state and federal law.

Employee Training and Continuing Education
In addition, CannaCruz is committed to providing employee training and support for the continuing education of its employees.

Through training outlined in its employee handbook, CannaCruz plans to provide job training and professional development for all of its employees.

We will have regular meetings to make sure that staff is updated on the evolving regulatory environment of cannabis whether it be new products, laws and regulations and anything else that maybe pertinent to the industry (local and state).

We will make every effort to train, promote and fill open positions from within our qualified staff before recruiting externally. Employees be provided paid training on the following topics:

Packet Page 133
15 x Inventory control
x Product storage and handling
x Track and trace software
x Packaging and labeling
x Security measures and procedures
x Safety handling procedures
City of Seaside Recruitment and Hiring
CannaCruz intends to provide economic benefits to the city of Seaside in the form of providing competitive wages and benefits, providing employee training and development, recruiting and hiring city of Seaside residents, and employing city of Seaside contractors.

Local hiring is a benefit for any business for many reasons. The city of Seaside is an ideal location for the proposed business due to its vibrant, diverse workforce. Recruitment efforts and hiring preference will be designed to give preference to city of Seaside residents. We anticipate that 100 percent of the employees who work for CannaCruz will be city of Seaside hires.

To enhance our city of Seaside recruitment efforts, we may consider a number of strategies such as participating in city of Seaside job fairs, participating in city of Seaside business organizations, and providing incentives for relocation. Some strategies that we may employ to recruit city of Seaside employees are as follows:
x Local connections of principals
x Outreach to city of Seaside organizations such as Chamber of Commerce x Outreach to city of Seaside education centers
x Advertising in city of Seaside media outlets
x Signage at the proposed business
Partnerships With City of Seaside Vendors, Contractors, Service Providers
In addition, CannaCruz will make every effort to use city of Seaside contractors and businesses and to give preference to city of Seaside contractors and businesses who also hire city of Seaside residents and work with other city of Seaside businesses.

Packet Page 134
16 We intend to use as many city of Seaside professionals as possible because it makes good business sense, results in efficiency as locals have better knowledge of local regulations, is convenient, and benefits the city in which we do business.

Supplies that will be needed for the startup and operation of the proposed CannaCruz business will be purchased from city of Seaside. In addition, CannaCruz plans to employ a city of Seaside accounting firm, janitorial services and other city of Seaside services.

Locally Owned Enterprise
In order to become a locally managed enterprise, CannaCruz is fully committed to hiring employees and managers from city of Seaside, training employees for all positions including management, and providing opportunities for advancement rather than hiring outside of the city of Seaside workforce.

Labor Organization
If applicable, CannaCruz will have a labor peace agreement or plan to negotiate one.

Diversity, Equity and Inclusion
Prioritizing diversity and inclusivity in hiring practices is key to success for any business. We believe that a culture of diversity, equity and inclusion (DEI) contributes to collaboration, productivity, innovation, and longevity. We aspire to build a team whose diversity reflects the community of Seaside and surrounding areas. Not only does a diverse staff respectfully represent the surrounding neighborhood, but it also strengthens our business. Inclusion of all origins, beliefs, and preferences, will bring a variety of perspectives to discussions about problem solving and new ideas.

CannaCruz is committed to providing a positive, respectful, accepting and supportive workplace. We embrace a rich and diverse workforce with diverse perspectives, work and live experiences, religious and cultural differences, all of which provide opportunities for employee development. To foster DEI, we embrace the following practices –
x Strive for a diverse workforce in hiring and recruiting. x Model DEI through management.
x Educate staff in DEI.

Non-Discrimination
CannaCruz will have a non-discrimination policy and will adhere to all applicable guidelines regarding discrimination. CannaCruz is committed to providing equal benefits.

Packet Page 135
33 SECTION G: COMMUNITY BENEFITS AND

INVESTMENTS PLAN
Economic Development
CannaCruz is a member of the Salinas Valley Chamber of Commerce and welcomes the opportunity to develop meaningful connections with city of Seaside business owners and community members.

In addition, CannaCruz supports many charitable programs. CannaCruz has contributed to Heroes of Salinas over the years and is committed to identifying other high-quality city of Seaside causes to support.

It is anticipated that CannaCruz will provide economic benefits to the city by providing permanent jobs with competitive wages and benefits, recruiting and hiring from city of Seaside, providing employee training and development.

Tax Revenue Generation
CannaCruz will benefit the city of Seaside through tax revenue generation. CannaCruz currently generates approximately $500,000 in tax revenue annually for the City of Salinas. In addition, CannaCruz generates approximately $400,000 annually for City of Santa Cruz.

City of Seaside Recruitment and Hiring
CannaCruz intends to provide economic benefits to the city of Seaside in the form of providing competitive wages and benefits, providing employee training and development, recruiting and hiring city of Seaside residents, and employing city of Seaside contractors.

Local connections of principals
Outreach to city of Seaside organizations such as Chamber of Commerce Outreach to city of Seaside education centers
Packet Page 136
34 Advertising in city of Seaside media outlets
Signage at the proposed business
Partnerships With City of Seaside Vendors, Contractors, Service Providers
In addition, CannaCruz will make every effort to use city of Seaside contractors and businesses and to give preference to city of Seaside contractors and businesses who also hire city of Seaside residents and work with other city of Seaside businesses.

We intend to use as many city of Seaside professionals as possible because it makes good business sense, results in efficiency as locals have better knowledge of local regulations, is convenient, and benefits the city in which we do business.

Employee Training and Continuing Education
In addition, CannaCruz is committed to providing employee training and support for the continuing education of its employees.

Through training outlined in its employee handbook, CannaCruz plans to provide job training and professional development for all of its employees.

We will make every effort to train, promote and fill open positions from within our qualified staff before recruiting externally. Employees be provided paid training on the following topics:

Inventory control
Product storage and handling
Packet Page 137
35 Track and trace software
Packaging and labeling
Security measures and procedures
Safety handling procedures
Community Support
CannaCruz currently offers discounts to all active and retired military service personnel.

CannaCruz support efforts are intended to express our intent and interest in bettering our community. We have gained insight into the ideals and concerns of our neighbors. Through mindful planning, we have devised a rich community giving program and will utilize diverse and inclusive hiring practices. We have also considered the impact our operation will have on our surroundings and practice a good neighbor policy.

Community Relations
The team knows that creating a positive relationship with our city of Seaside community is paramount to the health of our business and the community. In order to create those important ties to our neighborhood and beyond, CannaCruz will collaborate with locals and invest time in bilingual staffing to serve our diverse customer base.

Collaboration with Neighbors
CannaCruz works hard to create meaningful relationships and build community rapport. We listen to our neighbors and will work to ensure their concerns are addressed as we move forward. We will continue to check-in with the members of our community to make certain we are putting the health of our neighborhood first.

Bilingual Access
The CannaCruz team knows that many of our potential customers are Spanish speaking. In order to honor this, we have been developing ways to reach out to our bilingual community. Part of that outreach includes providing materials about CannaCruz which are printed in both English and Spanish. CannaCruz will have a Spanish speaking staff member available to ensure clear communication with our customers and neighbors.

Community Giving Program
At CannaCruz, we fully acknowledge that the legal cannabis industry has the ability to work to make positive changes in the communities in which we all operate. While our industry supplies much Packet Page 138
36 needed tax revenues, sales, excise, local business taxes, we also go the extra mile and give of our time. CannaCruz brings our staff members to critical volunteer days to make a difference.

Discounts for Veterans and Seniors
Two groups that benefit from cannabis the most are Veterans and Seniors. For those who have regular relief 49 of 70 from our topical products that reduce pain. Cannabis helps with a myriad of issues, and discounts are a way to make it easier to provide access to those who need it most. We are proud to offer discounts to these two groups. We also work hard to showcase products that are grown and manufactured by Veterans themselves, closing the loop on medicine creation to provision. Over the past three years, we have offered community discount days to our medical, elderly, and veteran customers resulting in a total of 279,666 transactions from those demographics.

Please see Table 1 for a visual analysis of these transactions.

Environmental Support
In the past, we have volunteered to assist in cleaning up our park areas. One of our favorite activities was a very successful beach-cleanup in our flagship city of Santa Cruz. We look forward to similar opportunities in Seaside.

Packet Page 139
Packet Page 140
Packet Page 141
Packet Page 142
Packet Page 143
Packet Page 144
Packet Page 145
Packet Page 146
Packet Page 147
Packet Page 148
Packet Page 149
Packet Page 150
Packet Page 151
Packet Page 152
Packet Page 153
Packet Page 154
Packet Page 155
Packet Page 156
Packet Page 157
Packet Page 158
Packet Page 159
Packet Page 160
Packet Page 161
Packet Page 162
Packet Page 163
Packet Page 164
Packet Page 165
Packet Page 166
Packet Page 167
Packet Page 168
Packet Page 169
Packet Page 170
Packet Page 171
Packet Page 172
Packet Page 173
Packet Page 174
Packet Page 175
Packet Page 176
Packet Page 177
Packet Page 178
Packet Page 179
Packet Page 180
Packet Page 181
Packet Page 182
Packet Page 183
Packet Page 184
Packet Page 185
Packet Page 186
Packet Page 187
Packet Page 188
Packet Page 189
Packet Page 190
Packet Page 191
Packet Page 192
Packet Page 193
Packet Page 194
Packet Page 195
Packet Page 196
Packet Page 197
Packet Page 198
Packet Page 199
Packet Page 200
Packet Page 201
Packet Page 202
Packet Page 203
Packet Page 204
Packet Page 205
Packet Page 206
Packet Page 207
Packet Page 208
Packet Page 209
Packet Page 210
Packet Page 211
Packet Page 212
Packet Page 213
Packet Page 214
Cannabis Dispensary
Development and Operating Agreement Transfer

1. The Dispensary located at 1440 Canyon del Rey Boulevard (also known as 310 Amador Avenue) on Assessor’s Parcel Number (APN) 011-315-017 (the “Property”) has been acquired by STIIIZY Seaside, LLC which is principally owned and operated by James Kimand Tak Sato. The Development and Operating Agreement for the Cannabis Dispensary, originally issued to Higher Level of Care, LLC and attached hereto as Attachment 1 is hereby transferred to STIIIZY Seaside, LLC, with the following amendments:

A. Exhibit A and Exhibit B to the Development and Operating Agreement shall in in accordance with the attached Exhibit A and Exhibit B; and B. Exhibit C to the original Development and Operating Agreement shall be replaced with the attached Exhibit C. STIIIZY Seaside, LLC shall provide these benefits, including Charitable Contribution benefits, on a calendar year basis. References to Exhibit D in the original Agreement shall be deemed to refer to Exhibit C.

C. On or before February 1 of each calendar year, STIIIZY Seaside, LLC shall provide a report to the City of Seaside, on a form acceptable to the City, detailing all activities taken during the prior calendar year which demonstrate compliance with these requirements.

2. All rights, responsibilities and conditions of approval are now the responsibility of the undersigned. The undersigned agreesthat failure to comply with all conditions and responsibilities, including public benefits outlined in theDevelopment and Operating Agreement, will result in enforcement actions and could result in revocation of the Use Permit, Development and Operating Agreement, and/or all State licenses.

3. STIIIZY Seaside, LLC and the owner(s) of the Property shall execute the Indemnification Agreements included as Attachment 2 to this Agreement.

4. In addition to the assumption of all responsibilities required under the terms of the Development and Operating Agreement and the Use Permit, STIIIZY Seaside, LLC also agrees to pay outstanding taxes previously owed by Higher Level of Care, LLC in the amount of $372,556.52. The City recognizes this payment to fully meet all prior obligations incurred by Higher Level of Care, LLC, and shall not request any further payment related to obligations incurred by Higher Level of Care, LLC.

STIIIZY Seaside, LLC shall make the payments on the following timeline:

A. 10% of the total ($37,255.65) prior to the approval and execution of this Agreement;
B. 45% of the total ($167,650.42) within 14 calendar days of the approval of this Agreement by the City of Seaside City Council; and Resolution No. 26-76
Meeting Date: 7/16/26
Item 7.F.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 215
C. 45% of the total ($167,650.44) shall be paid in four equal quarterly installments of $41,912.61. These payments shall be received by the City of Seaside no later than October 1, 2026, January 1, 2027, April 1, 2027, and July 1, 2027.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of July 16, 2026.

CITY OF SEASIDE: STIIIZY SEASIDE LLC
Greg McDanel James Kim
City Manager CEO
Tak Sato
President
APPROVED AS TO FORM:

Sheri Damon
City Attorney
Attachments
Attachment 1 - Development and Operating Agreement (Resolution 18-16) with the following Exhibits:

Exhibit A – Map showing Property and its location.

Exhibit B – Resolution of City Granting a Dispensary Permit with Conditions at 310 Amador Avenue.

Exhibit C – Owner Commitment to Community Benefit Program Attachment 2 - Business and Property Owner Indemnification Agreement Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 216
Attachment 1

DEVELOPMENT/OPERATING AGREEMENT

BY AND BETWEEN

THE CITY OF SEASIDE
AND
HIGHER LEVEL OF CARE LLC.

ARTICLE 1. PARTIES AND DATE.

This Development/Operating Agreement (“Agreement") is dated March 15, 2018, for execution purposes only and is entered into between (i) the City of Seaside (“City”), a California municipal corporation, and Higher Level of Care LLC.fOwner”), a California Limited Liability Company. This Agreement shall become effective on the Effective date defined in section 3.1.6.

ARTICLE 2. RECITALS.

2.1 WHEREAS, City is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property; and

2.2 WHEREAS, this Agreement and the Project are consistent with the City's General Plan and Zoning Code and applicable provisions of the City's Zoning Map as of the Effective Date; arid

2.3 WHEREAS, all actions taken and approvals given by the City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and

2.4 WHEREAS, Owner intends to develop a Cannabis Dispensary or Facility, with Commercial Cannabis Activities at the Dispensary or Facility , to the extent contemplated by the Seaside Municipal Code Chapter 19 and all applicable state laws, rules, and regulations.

2.5 WHEREAS, this Agreement, in the future, shall be read consistent with any statewide regulation passed by voter initiative or the state legislature, which decriminalizes or legalizes marijuana for medical or recreational use, also known as Adult Cannabis. This Agreement shall govern the conduct of this business to cultivate and distribute marijuana under such statewide regulation, consistent with any City regulations not preempted by any such statewide regulations.
*2.6 WHEREAS, The Owner and City agree for mutual consideration Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 217
this agreement.

ARTICLE 3. GENERAL TERMS.

3.1 Definitions and Exhibits. The following terms when used in this Agreement shall be defined as follows:

3.1.1 “Agreement” means this Development/Operating Agreement. [This is not a development agreement as defined in Government Code Section 65864 et seq.j

3.1.2 “City” means the City of Seaside, a California municipal corporation.

3.1.3 “Days" mean calendar days unless otherwise specified.

3.1.4 “Development” includes the right to maintain, repair or reconstruct any private building, structure, improvement or facility after the construction and completion thereof; provided, however, that such maintenance, repair, or reconstruction take place within the term of this Agreement on parcels subject to it.

3.1.5 “SMC” means the City of Seaside Municipal Code.

3.1.6 “Effective Date" means the date on which all of the following are true: (i) the City Council adopted a resolution adopting and approving the Development/Operating Agreement and (ii) all Exhibits to this Agreement are finalized, executed by all affected parties (if applicable) and attached hereto; provided, however, that if these conditions have not been fully satisfied by the Owner the Effective Date may not thereafter occur and this Agreement may not thereafter become effective.

3.1.7 “Existing Land Use Regulations” means all Land Use Regulations in effect on the date of execution. Existing Land Use Regulations include all provisions in the SMC Chapter 17, Zoning, and other regulations that are a matter of public record on the date of execution as they may be modified from time to time. Notwithstanding by the Existing Development Approvals.

Notwithstanding the foregoing, Existing Land Use Regulations include the regulations set forth in AB 266 and AB 243.

3.1.8 “Owner” means the Business or Dispensary Owner (s).3.1.9 “Processing Fees” means the normal and customary application, filing, plan check, permit fees for Cannabis activity approvals, design review, building permits, demolition permits, grading permits, and other Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 218
similar permits ana entitlements, and inspection fees, which fees are charged to reimburse the City’s expenses attributable to such applications, processing, permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection or entitlements are granted or conducted by the City.

3.1.10 11Project" means the Commercial Cannabis Activity as set forth in SMC Chapter 19, located on Assessor Parcel Number (APN) that will be state licensed and issued a Dispensary Permit in full accordance with SMC Chapter 19.02.010 as may be amended, as well as in full compliance with all state laws, including but not limited to the Medical Marijuana Regulation and Safety Act adopted by the State of California (also known as AB 266 and AB 243). This Project shall include the cultivation, manufacturing, testing, and distribution, of Cannabis as approved by state and local law. The Project will include construction and development of a [type of facility] Dispensary that will be issued a Dispensary Permit in full accordance with SMC Chapter 19.02.010 as amended as well as in full compliance with all state laws, including but not limited to the Medical Marijuana Regulation and Safety Act and the Adult Use of Marijuana Act.

3.1.11 “Property" means the real property where the Cannabis Dispensary or Facility is to be located as described on Exhibit A and shown on Exhibit B, as set forth in 3.2 below, both attached hereto and incorporated herein by this reference.

3.2 Exhibits. The following documents are attached to and, by this reference, made part of this Agreement:

Exhibit A - Map showing Property and its location.

Exhibit B—Resolution of City Granting a Dispensary Permit With Conditions at [location].

Exhibit C-Owner Commitment to Community Benefit Program.

3.3 Binding Effect of Agreement. The Property and Project are hereby made subject to this Agreement. Subject to the Owner’s receipt of all Development/Operating Approvals relative thereto, the Development of theProperty is hereby authorized and shall, except as otherwise provided in this Agreement, be carried out only in accordance with the terms of this Agreement, the Development/Operating Plan, and the Dispensary Permit. In the event of conflict or uncertainty between this Agreement, the Dispensary Permit, and the Development Plan, the provisions of the Development/Operating Plan shall control.

3.4 Notices.

3.4.1 Notice Defined. As used in this Agreement, notice includes, Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 219
without limitation, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder.

3.4.2 Written Notice and Delivery. All notices shall be in writing and shall be considered given:
(i) when delivered in person to the recipient named below; or (ii) three days after deposit in the United States mail, postage prepaid, addressed to the recipientnamed below; or (iii) on the date of delivery shown in the records of the delivery company after delivery to the recipient named below; or (iv) on the date of delivery by facsimile transmission to the recipient named below if a hard copy of the notice is deposited in the United States mail, postage prepaid, addressed to the recipient named below. All notices shall be addressed as follows:

If to the City:

City Manager
440 Harcourt Avenue
Seaside, CA 93955
If to the Owner:

Higher Level of Care
310 Amador Avenue
Seaside, CA 93955
With Copies to:

City Attorney
440 Harcourt Avenue
Seaside, CA 93955

3.4.3 Address Changes. Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party or to a different address, or both.

Notices given before actual receipt of notice of change shall not be invalidated by the change.

3.5 Validity of this Agreement. The Owner and the City each acknowledge that neither party has made any representations to the other Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 220
concerning the enforceability or validity of any one or more provisions of this Agreement, and that this Agreement has been drafted jointly and not by one party alone.

ARTICLE 4. PUBLIC BENEFITS

4.1 Intent. The parties acknowledge and agree that
development of the Project on the Property will result in substantial public needs which will not be fully met by the Development/Operating Plan and further acknowledge and agree that this Agreement confers substantial private benefits on Owner which should be balanced by commensurate public benefits.

Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on Owner by providing more fully for the satisfaction of the public needs resulting from the Project

4.2 Developer Fee. Applicant agrees to pay all established fees, charges, City costs, taxes, or other similar forms of expenses applicable to all Commercial Cannabis establishments and Dispensary Permits.

4.3 Jobs and Wage Creation.

4.3.1 Local Hiring. Owner agrees to use its reasonable
efforts to hire qualified City residents for jobs at the Project. Owner shall abide by all local hiring commitments provided in the Owner Commitment to Community Benefit Program in Exhibit C

4.3.2 Mandatory Payment of Wage. Owner agrees to pay
all employees wages in accordance with the wage rate provided in the Owner’s Community Benefit Plan and the Owner Commitment to Community Benefit Program in Exhibit D.

4.5 Payment of Marijuana Business Operation Tax.

4.5.1 Amount of Tax. Pursuant to Chapter SMC Chapter

5.04.320, Owner shall pay City the annual business operations tax based on a percentage of gross receipts as set by the City Council by Ordinance in accordance with prior voter approval of up to ten percent (10%) annually. Such taxes shall be remitted in accordance with regulations adopted by City.

4.5.2 All other taxes established by Ordinance shall be paid in accordance with the SMC and State law, as both may be amended from time to time.

ARTICLE 5. REVIEW FOR COMPLIANCE.

5.1 Periodic Review. The City Manager or designee may review Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 221
this Agreement annually, on or before each anniversary of the Effective Date or upon receipt of a request by Owner to extend the term, in order to ascertain Owner's good faith compliance with this Agreement including the Dispensary Permit. During the periodic review Owner shall be required to demonstrate good faith compliance with the terms of the Agreement, through submitting an annual monitoring report, records, or equivalent written materials to the City Manager or designee. The City may elect to extend the permits without review. Owner shall be entitled to a review hearing pursuant to 6.3 below in the event the City Manager or designee determines Owner is not in compliance with this Agreement, Use Permit or Dispensary Permit.

5.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time. The City Manager or his or her designee shall conduct such special review. During a special review, the Owner shall be required to demonstrate good faith compliance with the terms of the Agreement. The burden of proof on this issue shall be on the Owner.

5.3 Review Hearing. At the time and place set for the review hearing, the Owner shall be given an opportunity to be heard. If the City Manager finds, based upon substantial evidence, that the Owner has not complied in good faith with the terms or conditions of this Agreement, the City Manager may recommend that the City Council terminate this Agreement notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the City. The decision of the City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.

5.4 Failure to Conduct Review. The City’s failure to conduct a periodic review of this Agreement shall not constitute a breach of this Agreement or a waiver of future periodic reviews.

5.5 Cost of Review. The costs incurred by City in connection with the periodic reviews shall be borne by Owner.

ARTICLE 6. ANNEXATION INTO DISTRICTS

6.1 Owner agrees to the Subject Property being annexed into any current or future Community Facilities District, Community Services District, or any other tax district which would pertain to the Property.

ARTICLE 7. DEFAULTS AND REMEDIES.

7.1 Remedies in General. It is acknowledged by the parties that the City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure or delay by either party to Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 222
perform any term or provision of this Agreement shall constitute a default. In the event of alleged default or breach of any terms or conditions of this Agreement, the party alleging such default or breach shall give the other party not less than thirty (30) days’ notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured during any such thirty (30) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings. Notwithstanding the foregoing to the contrary, if the alleged default is of such a nature that it cannot be cured within thirty (30) days, the alleged defaulting party shall not be deemed in default as long as such party commences to cure such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion.

7. 2 After notice and expiration of the thirty (30) day period, the other party to this Agreement, at its option, may institute legal proceedings pursuant to this Agreement.

7.3 In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the City shall not be liable in monetary damages, unless expressly provided for in this Agreement, to the Owner or to any successors in interest of the Owner, or to any other person, and the Owner covenants on behalf of itself and all successors in interest to the Property or any portion thereof, not to sue for damages or claim any damages:
(i) For any breach of this Agreement or for any cause of action which arises out of this Agreement: or
(ii) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this Agreement, including, without limitation, any impairment or restriction which the Owner characterizes as a regulatory taking or inverse condemnation; or
(iii) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.

7.4 Nothing contained herein shall modify or abridge the Owner’s rights or remedies (including its rights for damages, if any) resulting from the exercise by the City of its power of eminent domain. Nothing contained herein shall modify or abridge the Owner’s rights or remedies (including its rights for damages, if any) resulting from the grossly negligent or malicious acts of the City and its officials, officers, agents and employees. Nothing herein shall modify orabridge any defenses or immunities available to the City and its employees pursuant to the Government Claims Act and all other applicable statutes and decisional law.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 223

7.5 Release. Except for those remedies set forth in Sections

8.land 8.4, the Owner, for itself, its successors and assignees, hereby releases the City, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, based or asserted, pursuant to Article 1, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon the City because it entered into this Agreement or because of the terms of this Agreement.

The Owner acknowledges that it may have suffered, or may suffer, damages and other injuries that are unknown to it, or unknowable to it, at the time of execution of this Agreement. Such fact notwithstanding, the Owner agrees that the release provided in this Section 7.2 shall apply to such unknown or unknowable claims or damages. Without limiting the generality of the forgoing, the owner acknowledges the provisions of California Civil Code Section 1542, which provide:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release which if know by him or her must have materially affected his or her settlement with the debtor.”
The owner hereby waves, to the maximum legal extent, the provisions of California Civil Code Section 1542 and all other statutes and judicial decisions of similar effect.

Initial

7.6 Attorneys’ Fees and Costs. In any action or proceeding between the City and the Owner brought to interpret or enforce this Agreement, or which in any way arises out of the existence of this Agreement or is based upon any term or provision contained herein, the “prevailing party" in such action or proceeding shall be entitled to recover from the non-prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this Agreement, the prevailing party’s reasonable attorneys’ fees and litigation costs, In an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 8.5 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding. The Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 224
parties agree that each contributed to the drafting of this Agreement, and that neither party is responsible for its drafting in determining whether any ambiguities exist as a result of drafting. Ambiguities shall not automatically be ruled against either party.

ARTICLE 8. THIRD PARTY LITIGATION.

8.1 General Plan Litigation. The City has determined that this Agreement is consistent with its General Plan. The Owner has reviewed the General Plan and concurs with the City’s determination.

8.1 Hold Harmless Agreement. Owner hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Owner or Owner’s contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Owner or any of Owner's contractors or subcontractors. Owner agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations.

8.2 Indemnification. Owner shall defend, indemnify and hold harmless City and its agents, officers and employees against and from any and all liabilities, demands, claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), which any or all of them may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this Agreement and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; and (iii) the proceedings undertaken in connection with the adoption or approval of any of the above. In the event of any legal or equitable action or other proceeding instituted by any third party (including a governmental entity or official) challenging the validity of any provision of this Agreement or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding.

Notwithstanding the above, the City, at is sole option, may tender the complete defense of any third party challenge as described herein. In the event the City elects to contract with special counsel to provide for such a defense, the City Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 225
shall meet and confer with Owner regarding the selection of counsel, and Owner shall pay all costs related to retention of such counsel.

8.3 Accept Reasonable Good Faith Settlement. With respect to Article 10, the City shall not reject any reasonable good faith settlement. If the City does reject a reasonable, good faith settlement that is acceptable to the Owner, the Owner may enter into a settlement of the action, as it relates to the Owner, and the City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgments rendered in connection with such action. This Section 9.3 applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. The Owner and the City expressly agree that this Section 10.6 does not apply to any settlement that requires an exercise of the City’s police powers, limits the City’s exercise of its police powers, or affects the conduct of the City’s municipal operations.

ARTICLE 9. MISCELLANEOUS PROVISIONS.

9.1 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement, provided, however, City at its option may rely on statements by Owner’s agents at the public hearings leading to the City’s approval of the project or on written documents by Owner or Owner’s agents thatare a part of the public record.

9.2 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, by a court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. The foregoing notwithstanding, the provision of the public benefits set forth in Article 4, including the payment of the fees set forth therein, are essential elements of this Agreement and the City would not have entered into this Agreement but for such provisions, and therefore in the event that any portion of such provisions are determined to be invalid, void or unenforceable, at the City’s option this entire Agreement shall terminate and from that point on be null and void and of no force and effect whatsoever.

9.3 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 226
and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

9.4 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction orinterpretation of this Agreement.

9.5 Singular and Plural; Gender, and Person. Except where the context requires otherwise, the singular of any word shall include the plural and vice versa, and pronouns inferring the masculine gender shall include the feminine gender and neuter, and vice versa, and a reference to “person” shall include, in addition to a natural person, any governmental entity and any partnership, corporation, joint venture or any other form of business entity.

9.6 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

9.7 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.

9.8 No Third Party Beneficiaries. The only parties to this Agreement are Owner and the City. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. There areno third party beneficiaries and this Agreement is not intended, and shall not be construed, to benefit, or be enforceable by any other person whatsoever.

9.9 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party.

9.10 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes.

The burdens of the Agreement shall be binding upon, and the benefits of the Agreement shall inure to all successors in interest to the parties to this Agreement.

9.11 Counterparts. This Agreement may be executed by the Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 227
parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument

9.12 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and prosecuted in the Superior Court of the County of Monterey, State of California, and the parties hereto waive all provisions of federal or state law or judicial decision providing for the filing, removal or change of venue to any other state or federal court, including, without limitation, Code of Civil Procedure Section 394.

9.13 Agent for Service of Process. In the event the Owner is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer, resident of the State of California, or if It is a foreign corporation, then the Owner shall file, upon its execution of this Agreement, with the City Manager the name of a natural person acting as the agent of owner residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon the Owner. If for any reason service of such process upon such agent is not feasible, then in such event the Owner may be personally served with such process out of this County and such service shall constitute valid service upon the Owner. The Owner is amenable to the process so described, submits to the jurisdiction of the Court so obtained, and waives any and all objections and protests thereto.

9.14 Authority to Execute. The person or persons executing this Agreement on behalf of the Owner warrants and represents that he/she/they have the authority to execute this Agreement on behalf of his/her/their corporation, partnership or business entity and warrants and represents that he/she/they has/have the authority to bind the Owner to the performance of its obligations hereunder.

Each individual executing this Agreement on behalf of his or her respective company or entity shall represent and warrant that:

9.14.1 The individual is authorized to execute and deliver this Agreement on behalf of that company or entity in accordance with a duly adopted resolution of the company’s board of directors or appropriate governing body and in accordance with that company’s or entity's articles of incorporation or charter and bylaws or applicable formation documents; and

9.14.2 This Agreement is binding on that company or entity in Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 228
accordance with its terms; and

9.14.3 The company or entity is a duly organized and legally existing company or entity in good standing; and

9.14.4 The execution and delivery of this Agreement by that company or entity shall not result in any breach of or constitute a default under any mortgage, deed of trust, loan agreement, credit agreement, partnership agreement, or other contract or instrument to which that company or entity is party or by which that company or entity may be bound.

9.15 Nexus/Reasonable Relationship Challenges. Owner
consents to, and waives any rights it may have now or In the future to challenge the legal validity of, the conditions, requirements, payment of any kind of fee whatsoever, policies or programs set forth in this Agreement including, without limitation, any claim that they constitute an abuse of the police power, violate substantive due process, deny equal protection of the laws, effect a taking of property without payment of just compensation, or impose an unlawful tax.

9.16 Owner Compliance with Laws. Owner hereby agrees to comply with all applicable state, federal and local laws, regulations, rules and policies.

9.17 No Damages Relief Against City. The parties acknowledge that the City would not have entered into this Agreement had it been exposed to damage claims from Owner, or Owners successors in interest, assigns, partners, or anyone acting on behalf of the Owner for any breach thereof. As such, the parties agree that in no event shall Owner, or Owners successors in interest, assigns, partners, or anyone acting on behalf of the Owner be entitled to recover damages against City for breach of this Agreement.

9.18 Laws. Owner agrees to comply with all applicable state, regional, and local laws, regulations, polices and rules.

9.19 Compliance with Conditions of Approval. Owner agrees to comply with and fulfill all conditions of approval for any and all entitlement, permits, and/or licenses it receives form the City. All conditions of approval for all entitlements, permits and/or licenses are hereto incorporated.

9.20 Owner agrees to comply with all applicable provisions of any current or future applicable federal, state, or local marijuana/Cannabis laws, including AB 266 and AB 243, as duly adopted, including any and all development standards, license and revocation procedures, and the like. Should there be anything In federal or state law, including but not limited to AB 266 or AB 243 which contradicts any provision in this Agreement.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 229
IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the dates written above.

CITY OF SEASIDE OWNER
By: fyuAj __________ Ralph Rubio, Mayor
ATTEST:

Leslie E. Mi|t6n-Rerig, City Clerlj/
APPROVED AS TO FORM: , City Attorney
Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 230
Map Showing Property and Its Location
Address: 1440 Canyon del Rey Boulevard
Assessor’s Parcel Number: 011-315-017
Exhibit A of Attachment 1 (i sft
&
■
1 v"•>•• ai
- g<■
/I
pA|S
L-~-
Lj* ’‘2&s£.

I-o
Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 231
Exhibit B of Attachment 1
RESOLUTION NO. 17-98

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

GRANTING THE APPROVAL OF A DISCRETIONARY USE PERMIT TO ALLOW A MEDICAL/ADULT RECREATIONAL CANNABIS FACILITY LOCATED AT 310 AMADOR (APN# 011-315-017) IN THE MIXED USE (MX) ZONING DISTRICT.

WHEREAS, Performance Property Management, or Assigns C/O Larry Scholink , property owner and, Higher Level of Care/Cypress Manufacturing, dba Higher Level, applicant, have applied for a Discretionary Use Permit to allow:

A. The establishment of a Medical/Adult Recreation Cannabis facility.

WHEREAS, the proposed project requires discretionary use permit approval, and it is the responsibility of the Planning Commission in the Seaside Municipal Code to have considered and weighed the meats of the application and public input in relation to the policies, standards and intent of the Seaside General Plan and Seaside Municipal Code in making a recommendation on the proposed cannabis facility to the City Council; and
WHEREAS, the Seaside Planning Commission considered oral comments and written information concerning the proposed amendment at three duly noticed special public meetings held on December 4, 2017, December 5, 2017, and December 20, 2017; and WHEREAS, the Seaside Planning Commission acted to declare the application as being a qualified applicant on December 20, 2017 and made a recommendation that the City Council consider the application for the issuance a cannabis facility; and
WHEREAS, the Seaside Municipal Code requires the approval of a discretionary use permit by the City Council for a Medical/Adult Recreation Cannabis facility, and it is the responsibility of the City Council to have considered and weighed the merits of the application and public input in relation to the policies, standards and intent of the Seaside General Plan and Seaside Municipal Code in review of the application; and
WHEREAS, the Seaside City Council considered oral comments and written information concerning the proposed amendment at a duly noticed special public meeting held on December 28, 2017; and
WHEREAS, the project is a Categorically Exempt, Class 1, Section 15301 meeting the following conditions:
a) The proposed development will consist of converting an existing commercial building into a retail medical/adult recreation cannabis facility which will not change the intensity of the project site or the City’s infrastructure off-site in order to accommodate the proposed use. It can be seen with certainty that the proposed use will not create any significant environmental impact on thecommunity and neighboring properties.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 232
NOW, THEREFORE, BE IT RESOLVED, that the City Council adopts the following findings for the Medical/Adult Recreation Cannabis facility Discretionary Use Permit 1) The proposed use is allowed within the applicable zone and complies with all other applicable provisions of this Zoning Ordinance and the Municipal Code.

Evidence; This project is located within the Mixed use Zoning District in which a Medical/Adult Recreation Cannabis facility may be established with use permit approval.

Evidence: There are no existing retail cannabis facilities operating within 1,000 feet of the project site.

Evidence: Higher Level scored hill points for location of business, which will serve as a catalyst project for the City of Seaside within the West Broadway Urban Village Specific Plan.

Evidence: Higher Level scored well for business plan points by demonstrating revenue and capitalization, achievable within the City of Seaside based on the project location being located within an established retail area and the project location having access from the City’s entrances on Fremont Boulevard to the north and south and the entrance on Broadway Avenue to the east.

Evidence: Higher Level scored fall points for local enterprise and community benefits, which fosters economic and community development within the City of Seaside and provides financial contributions to local non-profit community organizations within the City of Seaside.

Evidence: Higher Level scored full points for neighborhood compatibility with commitments to exemplary security and facade improvement upgrades, which promotes neighborhood unity and land use compatibility/vitality within the City of Seaside.

Evidence: Higher Level scored fall points for safety and security, which helps to provide public safety within the City of Seaside by not creating any type of nuisance which would be detrimental to the overall general health, safety and welfare of the community and/or cause a financial burden on public safety resources for unnecessary calls for service . 2) The proposed use is consistent with the General Plan and any applicable specific plan.

Seaside General Plan Conformance
Evidence: Per the General Plan Land Use Element, the site is designated as Mixed use (MX) West Broadway Urban Village Specific Plan. The following Goals and Policies would apply:

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 233
Land Use Element Goal LU-1: Promote a mixture of land uses and a balance of jobs and housing to support a community in which people can live, work, and play.

Evidence: The project site will be contained within an existing commercial building which has demonstrated that it can contain the necessary capacity to operate a cannabis dispensary without overburdening existing roadways and City infrastructure, Land \Use Element Policy LU-1.1: The proposed use would serve to implement and diversify the land uses within the West Broadway Urban Village Specific Plan and improve the City’s job housing balance.

Evidence: The project would occupy a vacant tenant space, increase pedestrian activity, have the potential for increased pass by trips for adjoining businesses, and will employ Seaside residents.

Land Use Element Policy LU-1.2: The proposed use will serve to provide additional jobs to improve die City’s job housing balance.

Evidence: The project will employ Seaside residents.

Land Use Element Goal LU-1,3: Encourage regional commercial and visitor-serving commercial development that will enhance the identity of Seaside and attract visitors to the community.

Evidence: The project would occupy a vacant tenant space, increase pedestrian activity, and complete a commercial facade upgrade.

Land Use Element Goal LU-2: Revitalize existing commercial areas.

Evidence: The cannabis facility will serve to establish a regional commodity within the City of Seaside that will provide a substantial investment within the community that will serve to improve the character of the West Broadway Specific Plan area and attract customers both from the MontereyBay area and tourism.

Element Policy -LU-2.1: The proposed project will serve to revitalize an existing commercial area of the community that is targeted as a specific plan area to provide new jobs and services as the downtown core of the community.

Evidence: The proposed use will serve to fill a vacant commercial site and remove a blighted condition through the extended vacancy of the site since it was constructed
Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 234
3) The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and planned future land uses in the vicinity.

Evidence: The proposed Medical/Adult Recreation Cannabis facility will meet the needs of the community consistent within the West Broadway Urban Village Specific Plan design goals and improve the overall business character with the infusion of new faqade treatments and monetary investment in the infrastructure of the site.
4) The site is physically suitable for the type, density and intensity of discretionary use being proposed, including access, utilities, and the absence of physical constraints.

Evidence: The project site is served by existing water, wastewater, and electrical infrastructure and facilities with adequate capacity to serve the proposed project. The proposed conversion of a retail commercial building to a Medical/Adult Recreation Cannabis facility with interior changes and exterior faqade changes conforms to Land Discretionary use Element of the Seaside General Plan. 5) Granting the permit would not be detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone district in which the property is located.

Evidence: The proposed Medical/Adult Recreation Cannabis facility will provide for a community facility that is safe and attractive for a Cannabis dispensary use.

Evidence: The proposed conversion of a commercial retail building to a Medical/Adult Recreation Cannabis facility would not be detrimental to the public health, safety and general welfare of the people of the City and surrounding neighborhood. The proposed use is located on an in-fill site and would help maintain a compact city form consistent with the scale and character of the surrounding commercial neighborhood.

BE IT FURTHER RESOLVED, that the City Council approves the Discretionary Use Permit Application for “Higher Level” subject to the following conditions:

Pro ject SpecificPlanning:

1. Except as modified by required conditions of approval, the permittee shall have the right to operate a Medical/Adult Recreation Retail Cannabis Facility substantially in accordance with the project material stamped “Received by the City of Seaside- December 1, 2017” and subject to the floor plan and exterior faqade being modified to comply with the general Cannabis and conditions listed. The aerial site plan is provided as Exhibit “A”.

Cannabis

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 235

2. All storage, display, sales or other distribution of cannabis shall occur only within an enclosed area of a medical cannabis business and shall not be visible from the exterior of the business.

Delivery shall be as approved by the Seaside Police Department.

3. The cannabis facility shall have an odor-absorbing ventilation and exhaust system to ensure that odor generated inside the premises is not detected outside the premises.

4. A sign shall be posted in a conspicuous location inside the property advising that use of cannabis may impair a person's ability to drive a motor vehicle or operate heavy machinery.

5. No person, other than a patient, caregiver, licensee, employee, or a contractor shall be in the medical cannabis dispensary room.

6. Medical/Adult Cannabis Dispensary hours of operation shall be as regulated by State and City law.

7. Adults 21 and over can buy cannabis at retail dispensaries with an "A" adult use license as of Jan 1, 2018 as regulated by State Law.

8. No Cannabis Dispensary, Management Employee or employee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on the Property or in the parking area of the property.

Testing, Packaging, Labeling

9. All cannabis product labels shall also include the following information, prominently displayed and in a clear and legible font: For packages containing only dried flower, the net weight of medical cannabis in the package; A warning if nuts or other known allergens are discretionary used; List of pharmacologically active ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the THC and other cannabinoid amount in milligrams perserving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total; Clear indication, in bold type, that the product contains medical cannabis; Identification of the source and date of cultivation and manufacture.

Transportation

11. All cannabis-infused products must be hand packaged, sealed and labeled, and the products stored in closed containers that are labeled. All medical cannabisin a usable form for medicinal use must be packaged and stored in closed containers that are labeled.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 236

12. Each container used to transport or deliver cannabis must be labeled as regulated by State law.

The label shall be shown to any law enforcement officer who requests to see the label.

Community Relations

13. Each Cannabis Business shall designate a Community Relations Liaison, who shall be at least twenty-one (21) years of age; and shall provide the Liaison's name to the City Manager. The Liaison shall receive all complaints received by the City Manager regarding the Medical/Adult Cannabis Dispensary, and make good faith attempts to promptly resolve all complaints.

Inspections

14. State and Local representatives (Health, Fire and Building inspectors) may enter and inspect the Property of each Cannabis Business between the hours of nine (9) am and eight (8) pm or during normal business hours.

15. Licensing authorities and State and Local agencies may, at any time, inspect shipments and request documentation for current inventory.

16. Every Cannabis Business shall implementsufficient security measures, as approved by the Seaside Police Department to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products. These security measures, as appropriate, shall include, but not be limited to, the following: (a) Preventing individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business; (b) Establishing limited access areas accessible only to authorized personnel; (c) Storing all finished cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss.

17. Each Cannabis Business shall install and maintain a fully operational digital video surveillance and camera recording system that monitors no less than the front and rear of the Property, all points of ingress and egress at the business, all points of sale within the business, all areas within the business where medical cannabis products are displayed for sale, and all limited access areas within the facility as approved by the Seaside Police Department.

18. The video and surveillance system shall, at a minimum, meet the following requirements: (a) Capture a full view of the public right-of-ways and any parking lot under the control of the medical cannabis business; (b) Record and maintain video 24/7 for a minimum of ninety (90) days, or as otherwise determined by the Seaside Police Department.

19. The cannabis business shall install and use a safe for storage of any processed cannabis and cash on the property when the business is closed to the public. The safe shall be incorporated into the building as a secure receptacle.

20. The cannabis business shall install and discretionary use a fire and burglar alarm system that is monitored by a company that is staffed twenty-four hours (24) a day, seven (7) days a week.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 237
The security plan submitted to the City shall identify the company monitoring the alarm, including contact information. Changes in the security plan shall be approved by the Seaside Police Department prior to implementation.

21. A cannabis business engaged in retail sales shall retain and maintain a security guard or patrol, licensed by the State of California, generally located at an indoor guard station, to an extent sufficient to ensure safety and approved by the Seaside Police Department.

22. No dried cannabis shall be stored at the property in structures that are not completely enclosed, in an unlocked vault or.safe, or in any other unsecured storage structure.

23. Windows and roof hatches at the Cannabis Business shall be secured so as to prevent unauthorized entry.

Accounting/Record Keeping

24. The Cannabis Business shall maintain an inventory management system. The point of sale software shall be, upon regulatory implementation of the MMRSA, compliant with the State Unique Identifier and Track and Trace Program.

25. The records of the business shall clearly track cannabis product inventory purchased and/or grown and sales and disposal thereof to clearly track revenue from sales of any medical cannabis from other paraphernalia or services offered by the Cannabis Business.

26. The records shall clearly show the source, amount, price and dates of all cannabis received or purchased, and the amount, price, dates and business, patient or caregiver for all cannabissold.

28. Each business shall maintain an inventory record documenting the dates and amounts of cannabis sold at the Property, and the daily amounts of cannabis stored on the Property.

29. Receipts shall be maintained via a computer program or by pre-numbered receipts and discretionary used for each sale.

30. Each business shall maintain on-site proof of a valid Business License Permit issued by the City of Seaside.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 238

32. A Cannabis Dispensary holding a Business License Permit shall report to the City Manager each of the following within the time specified; provided that if no time is specified, such a report shall be provided within fifteen (15) days of the triggering event: (1) The transfer or change of ownership interest, business manager, or in the permit application at least thirty days before the transfer or change; (2) Sales and taxable transactions and file sales and discretionary use tax reports to the City quarterly; (3) A conviction of any disqualifying crime by any applicant of a Cannabis Business.

City Standards

33. Discretionary Use Permit approval is subject to revocation procedures contained in S.M.C.S.

17.80.060 in the event any of the conditions of this approval are violated, this discretionary permit was granted on the basis of false or misleading information, written or oral, given willingly or negligently by the applicant or property owner, and/or there has been a discontinuance of the discretionary use, or purposed for which the permit was issued, for a period of 180 days or more.

35. The applicant agrees as a condition and in consideration of the approval of this discretionary permit that it will defend, indemnify and hold harmless the City of Seaside or its agents, officers and employees from any claim, action or proceeding against the City or its agents,officers or employees to attack, set aside, void or annul this approval. The applicant will reimburse the City for any court costs and attorney’s fees, which the City may be required by a court to pay as a result of such action. City may, at its sole discretion, participate in the defense of such action; but such participation shall not relieve applicant of his obligations under this condition. The City shall promptly notify the applicant of any such claim, action, or proceeding, and the City shall cooperate fully in the defense thereof.

36. Any proposed future development shall comply with the requirements of the applicable City and County agencies and must be in compliance with State Law.

39. Applicant must execute and maintain a valid Development/Operating Agreement setting forth the terms and conditions under which the facility will operate which will be reviewed periodically for compliance including, but not limited to, timely payment of all fees and taxes.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 239

40. For puiposes of assuring compliance, the applicant, agents, representatives or their assignees agree not to deny or impede access to the subject property by City employees in the performance of their duties.

PASSED AND ADOPTED at the special meeting of the City Council of the City of Seaside, State of California, on the 28th of December, 2017, by the following vote:

COUNCILMEMBERS: Alexander, Campbell, Pacheco, RubioCOUNCILMEMBERS: NoneCOUNCILMEMBERS: Jones COUNCILMEMBERS:None
AYES: 4
NOES: 0
ABSENT: 1ABSTAIN: 0
APPROVED:

Ralph Rubio,Mayor
ATTEST:

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 240
Resolution No. 17-98
These permits are hereby accepted upon the express terms and conditions hereof, and shall have no force or effect unless and until agreed to, in writing, by the applicant and property owner(s).

The undersigned hereby acknowledge the approved terms and conditions and agree to fully conform to, and comply with, said terms and conditions within the time frames approved by the City of Seaside City Council
Applicant's Signature
Property Owner’s Signature (if different from above) Date Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 241
STIIIZY Seaside LLC 1440 Canyon Del Rey Blvd., Seaside, CA 93955 Community Benefits Moving Forward
As part of the transition, STIIIZY is committed to maintaining—and where possible, enhancing—the employee benefits, community engagement programs, and nonprofit partnerships currently in place.

We are dedicated to acting as exemplary corporate citizens in every jurisdiction in which we operate, with the goal of not only matching but exceeding the benefits historically provided to employees and local nonprofit organizations in the City of Seaside whenever feasible.

This proposal presents our Community Benefits Plan, which outlines a comprehensive approach to supporting employees, strengthening community partnerships, and investing in the long-term success of the Seaside location.

We look forward to continuing Higher Level of Care’s longstanding community relationships and will collaborate with local stakeholders to identify additional nonprofit partners that align with community needs and priorities. [THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK]
Exhibit C of Attachment 1
Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 242
STIIIZY Seaside LLC 1440 Canyon Del Rey Blvd., Seaside, CA 93955

HEALTH AND BENEFITS
STIIIZY is committed to offering competitive wages and a comprehensive benefits package that extends beyond basic health coverage. This approach is designed to support employees’ long-term financial stability, overall well-being, and quality of life through meaningful programs that promote security, professional growth, and work–life balance.

Wages
We are committed to offering competitive wages that exceed current pay levels and support long-term financial stability for employees.

Role STIIIZY Starting Wages
Receptionist $21.00/hr.

Dispensary Sales Associate $20.50/hr.

Inventory Specialist $22.50/hr.

Floor Lead $23.50/hr
Assistant Manager $26.00/hr
General Manager $75,000 + bonus
Annual Increases • Reception, Dispensary Sales Associate, Inventory, Floor Lead= $1/hr annually.

After 3rd year, $.25 cents
• Assistant Manager/General Manager=
Contingent on performance review (~3-6%)
Tips Daily tips to employees who handle customer
transactions (never withheld)
Overall Benefit Higher pay, guaranteed annual raises for associates/leads, and full tip distribution
Health Benefits
We offer comprehensive medical plans through Kaiser Permanente and UnitedHealthcare (UHC). To support our employee’s health and well-being, the company covers 70% of the premium for whichever plan our employees choose.

Medical Coverage STIIIZY Health Benefits
Eligibility PPO & HMO available to anyone averaging 20 + hrs./week Plan Types Offered PPO + HMO through United Healthcare & Kaiser Access for Part-Time Employees Full Access to PPO and HMO Plans Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 243
STIIIZY Seaside LLC 1440 Canyon Del Rey Blvd., Seaside, CA 93955 Workers’ Compensation
All employees are covered under the Company's Workers' Compensation insurance, effective immediately upon hire. This coverage is paid entirely by the Company and provides benefits for accidental injuries or illnesses that occur during working hours or as a result of work activities. Employees are asked to report any work-related injury, no matter how minor, to management as soon as possible so that claims can be processed promptly and properly. This coverage provides access to necessary medical care and wage support during recovery, helping safeguard employees' health and financial stability.

Holiday Pay
Holiday pay provides employees with premium compensation for designated holidays, recognizing the added commitment these shifts require. Under past and new plans, employees continue to receive 1.5× their regular rate for all holiday hours, ensuring this important benefit remains fully protected.

Holiday Pay STIIIZY Holiday Pay
Pay Rate • Employees working on a holiday will receive 1.5 x their regular rate.
• Full-time employees who do not work on a recognized
holiday will receive 8 hours of holiday pay; Part-time
employees will receive 4 hours of holiday pay.
• Employees who work on April 20 receive premium pay at 1.5x their regular rate
Observed Holidays Observed holidays include New Year’s Day, Memorial Day, Fourth of July, Labor Day, Veterans Day, Thanksgiving, Christmas Vacation Benefits
Our paid time off programs ensure employees have the flexibility and financial stability to manage personal needs.

Upon completing one full year of continuous employment, each eligible employee will be granted a full forty (40) hours of vacation. This grant applies to all employees, including part-time employees, regardless of the number of hours actually worked during the first year of service.

Beginning after the first anniversary of employment, all employees, both full-time and part-time, will accrue vacation on a per-hour-paid basis, subject to the applicable annual accrual caps set forth below. Under this method, vacation is earned in proportion to hours paid and becomes available for use as it accrues during each pay period.

Accrual rates and caps, effective in the second year of service and thereafter, are as follows:
• From the second anniversary through five (5) years of service: accrual of up to eighty (80) hours per year, with a maximum balance (accrual cap) of one hundred twenty (120) hours. • After five (5) years ofservice: accrual of up to one hundred twenty (120) hours per year, with a maximum balance (accrual cap) of one hundred eighty (180) hours.

Sick Leave
The Company provides employees with 64 hours of paid sick leave annually, 24 hours more than the standard 40-hour annual sick leave allowance. This enhanced benefit gives employees additional paid time Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 244
STIIIZY Seaside LLC 1440 Canyon Del Rey Blvd., Seaside, CA 93955 to care for their own health, attend medical appointments, recover from illness or injury, or care for a family member, reflecting the Company's commitment to supporting employee wellbeing beyond the minimum required by law.

Leave of Absence Benefits
The Company provides eligible employees with a range of job-protected and leaves of absences administered in compliance with all applicable federal, state, and local laws and on a non-discriminatory basis.

These include family and medical leave under the FMLA (up to 12 weeks, or 26 weeks for military caregiver leave) and applicable state family, medical, and pregnancy-disability leaves; up to two weeks of paid parental pay for the birth, adoption, or foster placement of a child; personal and non-FMLA medical leave; military leave; and reasonable-accommodation and lactation leave.

The Company maintains group health coverage during protected leave and prohibits retaliation against employees for requesting or taking leave.

Employee Assistance Program
The company offers an Employee Assistance Program (EAP) that provides all employees with confidential support for their wellbeing, including counseling, specialist and life-coaching services, financial consultations, grief support, and more.

Life Insurance
• Financial protection for our employee’s loved ones
• Up to $50,000 coverage per life
• 100% covered by the Company
Retirement Benefits
The Employer shall contribute to an Individual Account Plan on behalf of all employees. The Plan will be administered through a jointly managed Trust Fund with equal Employer and Union representation.

Feature STIIIZY Retirement
Eligible Employees • Employer contributes $.20 per hour worked into a trust • Vested in 2 years

COMMUNITY BENEFITS
Local Hiring
STIIIZY agrees to use reasonable efforts to hire qualified residents of the City of Seaside and will comply with all local hiring commitments set forth in the Owner Commitment to Community Benefit Program.

Our goal is that principal employees are residents of the City of Seaside. Management will select employees bestsuited for each position and, to the extent permitted by law, will give preference in hiring residents of the City of Seaside. STIIIZY intends to hire City of Seaside residents to fill a portion of these roles, contingent upon permit approval, while retaining all existing employees.

We partner with the local Chamber of Commerce to regularly host and participate in local job fairs. We also work closely with community leaders and organizations to connect with qualified local candidates, ensuring that residents have meaningful access to the employment opportunities our dispensary creates.

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 245
STIIIZY Seaside LLC 1440 Canyon Del Rey Blvd., Seaside, CA 93955 Hiring locally strengthens the community by creating stable jobs close to home, supporting economic growth, and ensuring that the benefits of business operations are shared directly with local residents. A locally based workforce also reflects and understands the community it serves, fostering stronger relationships and a more inclusive workplace.

Volunteer Hours
Building on the practices established at Higher Level of Care, STIIIZY is committed to providing employees with opportunitiesto volunteertheir time in support of community events, including through paid time off for volunteer activities.

Employees receive sixteen (16) paid volunteer hours annually, ensuring that all staff have dedicated time to give back to the community and support causes that are important to them.

Higher Level of Care has previously supported SeaStars Community Cleanup events. STIIIZY encourages employees to continue supporting SeaStars Community Cleanups and promotes participation in a broad range of volunteer opportunities throughout the City of Seaside.

Charitable Contributions
STIIIZY is committed to supporting local nonprofit organizations and strengthening the Seaside community through financial contributions.

Current:

Higher Level of Care has committed a total of $15,000 to various nonprofit organizations and foundations supporting community initiatives across multiple sectors.

Proposed:

STIIIZY will continue to contribute a minimum of $15,000 per year to Seaside-based nonprofits.

STIIIZY plans to continue these established partnerships when possible or support similar charities and foundations. Contributions will focus on initiatives benefiting residents, youth, families, underserved communities, and veterans.

Compassionate Care
A Compassionate Care Program providesfree or reduced-cost medical cannabisto qualified individuals facing health or financial challenges,such as veterans,seniors, and low-income patients. The program is designed to promote equitable access to care while complying with all applicable state and local regulations and supporting overall community well-being.

Current:

Higher Level of Care partnered with the CalVet Meds program to provide free medical cannabis to veterans.

Proposed:

STIIIZY is currently developing a similar program and plans to establish a dedicated Compassionate Care initiative serving the Seaside community.

Community Outreach and Relations
STIIIZY’s community outreach efforts are designed to strengthen relationships with the Seaside community by supporting local residents, organizations, and initiatives through events and programs.

Key objectives include fostering meaningful partnerships, addressing local needs, promoting civic engagement, and contributing to the overall well-being and growth of the community. By engaging employees Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 246
STIIIZY Seaside LLC 1440 Canyon Del Rey Blvd., Seaside, CA 93955 and partners in outreach activities, STIIIZY aims to create a positive and lasting community impact while ensuring that the benefits of its operations are shared locally.

Community Outreach
Current: Higher Level of Care spearheaded the formation of an association of cannabis permittees operating within the City of Seaside. As a collaborative group, operators hosted job fairs, cannabis-focused educational seminars, fundraisers, and collectively volunteered their time and resources for the benefit of the City of Seaside and its residents.

Proposed: At other locations, STIIIZY has partnered with operators and community organizations to host job fairs, cannabis-focused educational seminars, and volunteer initiatives. STIIIZY plans to continue hosting community events, educational seminars, and volunteer opportunities in the City of Seaside.

Community Liaison
Current: Higher Level of Care designated a community liaison to receive notices from the City and address concerns or complaints from members of the public regarding facility operations. The liaison’s name, address, and email were provided to all businesses and residences within a 250-foot radius of the facility.

Proposal: Community members will be able to contact the Store and District Managers, as well as STIIIZY’s Community Relations department, with any concerns or complaints related to facility operations.

Utilization/Patronization of Local Trades & Businesses
Current: Higher Level of Care committed to utilizing and patronizing businesses located within the City of Seaside for its initial build-out, start-up, and ongoing operations. These efforts include engaging local trades, vendors, and service providers whenever feasible.

Proposal: STIIIZY will continue to prioritize the utilization and patronage of local trades and businesses whenever possible, supporting the local economy and maintaining strong relationships with Seaside-based vendors and service providers.

In Summary
The total package we are providing—including higher wages, robust health coverage, expanded community engagement opportunities, and consistent employer-funded retirement contributions—delivers an equivalent or greater overall value to employees.

Our goal in presenting this community benefits package is to ensure alignment with both our existing Collective Bargaining Agreement with UFCW and STIIIZY’s broader community benefits framework. This approach reflects our commitment to supporting fair labor standards, workforce stability, and meaningful community engagement, while maintaining consistency across our operations.

By aligning these efforts, we aim to create a comprehensive and sustainable benefits package that supports employees, strengthens partnerships with labor, and delivers positive impacts to the communities in Seaside
Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 247
Indemnification Agreement
Pursuant to the Seaside Municipal Code, and to the fullest extent permitted by law, STIIIZY Seaside LLC (owner, tenant or other lawful occupant in possession of the property) hereby agreesto defend, indemnify and hold harmless the City of Seaside, its officers, attorneys, agents, and employees:

1. From any claims, actions, proceedings or liability of any nature (collectively referred to as proceeding) brought against the City or its officers, attorneys, agents or employees, related to the issuance, administration, and/or enforcement of the Cannabis Permit issued by the City to the Applicant. The indemnification is intended to include but not be limited to damages, fees, and/or costs awarded against the City, if any, and cost ofsuit, attorney's fees, and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by the Applicant the City, and/or the partiesinitiating or bringing such proceeding; provided, however, that STIIIZY Seaside LLC shall have no obligation to indemnify the City to the extent any such claim, action, proceeding, liability, cost, fee, damage, or expense arises from the City’s gross negligence, willful misconduct, fraud, or intentional violation of law.

2. STIIIZY Seaside LLC hereby agreesto indemnify the City for all of the City's costs, fees, and damages which the City incurs enforcing the indemnification provisions of this Agreement.

3. In the event of a proceeding, the City retains the right to approve counsel to defend the City, allsignificant decisions concerning the manner in which the defense is conducted, and any and allsettlements, which approval shall not be unreasonably withheld. The City hasthe right not to participate in the defense except that the City agreesto cooperate with the applicant in the defense of the proceeding. If the City chooses its own counsel to defend the City, the fees and expenses of the counsel selected by the City shall be paid by the City. Notwithstanding the above, if the City Attorney's office participates in the defense, all City Attorney fees and costsshall be paid by the Applicant.

4.The defense and indemnification of the City set forth herein shall remain in full force and effect throughout allstages of litigation including appeals of any lower court judgments rendered in the proceeding.

STIIIZY Seaside LLC, consent to inspection for Permit compliance by authorized City personnel without notice,so long asthe owner(s), Applicant or legal tenant/occupant is present.

STIIIZY SEASIDE LLC, a California limited liability company Name: James Kim Name: Tak Sato
Title: CEO Title: President
Attachment 2
Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Packet Page 248
CITY OF SEASIDE CONSENT AND INDEMNIFICATION Pursuant to Seaside Municipal Code, and to the fullest extent permitted by law, the "Property Owner” (owner of the subject property, if different from the applicant) hereby agrees to defend, indemnify and hold harmless the City of Seaside, its officers, attorneys, agents, and employees:

1. From any claims, actions, proceedings or liability of any nature (collectively referred to as proceeding) brought against the City or its officers, attorneys, agents or employees, related to the issuance, administration, and/or enforcement of the Cannabis Permit issued by the City to the Applicant/Occupant of the subject property. The indemnification isintended to include but not be limited to damages, fees, and/or costs awarded against the City, if any, and cost ofsuit, attorney's fees, and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, and/or the parties initiating or bringing such proceeding.

2.The Property Owner hereby agrees to indemnify the City for all of the City’s costs, fees, and damages which the City incurs enforcing the indemnification provisions of this Agreement.

3.In the event of a proceeding, the City retains the right to approve counsel to defend the City and significant decisions concerning the manner in which the defense is conducted, and any and allsettlements, which approval shall not be unreasonably withheld. The City has the right not to participate in the defense, except that the City agreesto cooperate with the applicant in the defense of the proceeding. Ifthe City chooses its own counsel to defend the City, the fees and expenses of the counsel selected by the City shall be paid by the City.

Notwithstanding the above, if the City Attorney's office participates in the defense, all City Attorney fees and costs shall be paid by the Applicant.

4. The defense and indemnificationof the City set forth herein shall remain in full force and effect throughout all stages of litigation including appeals of any lower court judgments rendered in the proceeding.

We, the owners of real property identified within this application hereby acknowledge and consent to the dispensation of cannabis by Applicant STIIIZY Seaside LLC on our property identified as APN #011-315-017 and located at 1440 Canyon del Rey. We further consent to inspection for Permit compliance by authorized City personnel without notice,so long asthe owner(s), Applicant or legal tenant/occupant is present.

DJSTP LLC
Print Owner Name(s) and Date:

Signature:

Docusign Envelope ID: 6DD24627-9392-89B2-81D5-5E235AD03410 Salvatore Palma 7/21/2026
Packet Page 249

Seaside City CouncilOctober 1, 2026

Seaside City Council
October 1, 2026