Joint Sand City Council and Successor Agency of the Redevelopment Agency

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting MINUTES JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, August 3, 2021 5:30 PM As allowed per the State of California Governor’s Executive Order N-29-20, this meeting was conducted in person and by teleconference Mayor Carbone opened the meeting at 5:30 p.m. AGENDA ITEM 1, PLEDGE OF ALLEGIANCE The pledge of Allegiance was led by Mayor Carbone. AGENDA ITEM 2, ROLL CALL Present: Mayor Mary Ann Carbone Council Member Blackwelder Councilmember Cruz Councilmember Hawthorne Councilmember Sofer Staff: Aaron Blair, City Manager Vibeke Norgaard, City Attorney Connie Horca, City Clerk Charles Pooler, City Planner AGENDA ITEM 3, ANNOUNCEMENTS BY MAYOR, CITY ATTORNEY, AND CITY STAFF Mayor Carbone reported on her meeting with District Supervisor Askew and the rental assistance program that can pay 100% of back rent for qualified individuals. City Manager Blair announced that the E-Newsletter was distributed, and a media cover story on Sand City. AGENDA ITEM 4, COMMUNICATIONS 5:34 P.M. Floor opened for Public Comments. Sand City resident Don Difede thanked the Council and staff for the condolence card. He expressed his appreciation and the gesture shows how much people in Sand City care. Brian Clark, Sand City resident commented on the theft of a catalytic converter, installation of cameras throughout the City to deter theft, the recalibration of the police force, and the use of funds for community purposes such as athletic programs. 5:37 P.M. Floor closed to Public Comment.

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting AGENDA ITEM 5, CONSENT CALENDAR Mayor Carbone announced that Agenda item 5C will be pulled from the Consent Calendar and considered under Agenda item 6 due to possible conflicts with the agenda item. 5A. There was no discussion of the July 20, 2021 Council Meeting Minutes. 5B. There was no discussion of the City Resolution Granting the City Manager Authorization to Assign up to 0.0192 acre-feet/year of water from the Sand City Water Entitlement for Public Landscaping and Park Open Space fronting Contra Costa Street. 5C. Approval of City RESOLUTION Granting the City Manager Authorization to execute a Water Assignment Agreement and Assign up to 0.176 acre-feet of Water from the Sand City Water Entitlement to Rick Chaidez of Quasar LLC for Development of a Single-Family Dwelling at 1880 Park Avenue (APN 011-131-019) (This item was pulled from the Consent Calendar and considered under agenda item 6). 5D. There was no discussion of the City Donation/Contribution to the Panetta Institute for Public Policy for $500. Motion to approve the Consent Calendar items 5A-B, and 5D, was made by Council member Blackwelder, seconded by Council Member Hawthorne. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. AGENDA ITEM 6, CONSIDERATION OF ITEMS PULLED FROM THE CONSENT CALENDAR Council Member Hawthorne received clarification from the City Attorney regarding items on the consent calendar that have to be pulled for separate consideration and explanation of the 500’ rule. {Council Members Carbone and Cruz recused from the virtual and in person meeting due to a possible conflict of interest by residing within 500’ of the subject property} Vice Mayor Blackwelder presided over the meeting. Agenda item 5C. Approval of City RESOLUTION Granting the City Manager Authorization to execute a Water Assignment Agreement and Assign up to 0.176 acre-feet of Water from the Sand City Water Entitlement to Rick Chaidez of Quasar LLC for Development of a Single-Family Dwelling at 1880 Park Avenue (APN 011- 131-019). City Planner Pooler presented the staff report and brief history of the property and the calculations used to determine the assignment of water. Staff recommends granting the City Manager authorization to execute the water assignment agreement. 5:43 P.M. Floor opened for Public Comment.

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting There were no comments from the Public in person, via writing or through telecommunications. 5:43 P.M. Floor closed to Public Comment. Motion to approve the City Resolution granting the City Manager Authorization to execute a Water Assignment Agreement and Assign up to 0.176 acre-feet of Water from the Sand City Water Entitlement to Rick Chaidez of Quasar LLC for Development of a Single-Family Dwelling at 1880 Park Avenue (APN 011-131-019). was made by Council Member Sofer, seconded by Council Member Hawthorne. Roll call Vote AYES: Council Members Blackwelder, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: Council Members Carbone, Cruz. Motion carried. Council Members Carbone and Cruz returned to the meeting. Mayor Carbone presided over the meeting. AGENDA ITEM 7, PRESENTATION 7A. Presentation by Heather Adamson, Director of Planning, Association of Monterey Bay Area Governments (AMBAG) on overview of the Regional Housing Needs Allocation or RHNA Ms. Heather Adamson Director of Planning from the Association of Monterey Bay Governments (AMBAG) presented the 6th Cycle Regional Housing Needs Allocation to include RHNA background. She reported on the process that included the RHNA determination/assessment, distribution/allocation, and planning. The 6th cycle includes numerous housing bills (SB 828, AB 1771, and AB 686) that led to increased RHNA allocations and additional issues being addressed such as vacancy rates, overcrowding, and higher housing costs. She provided the RHNA Schedule and noted that a draft RHNA plan would occur in early 2022 that would have individual local jurisdiction allocation. A final RHNA plan should be in place by the summer of 2022, and that each jurisdiction would need to update their Housing Element by 2023. Mayor Carbone received additional information from Ms. Adamson regarding the present water shortage, survey results from local jurisdictions, and limitations on what can/ cannot be done. City Planner Pooler remarked on undeveloped coastal areas and coastal zones. Ms. Adamson suggested that the information be documented in regard to those issues. 6:02 P.M. Floor opened for Public Comment. Sand City resident Brian Clark commented on Monterey County’s General Plan, the expense of approximately half a million dollars, and the lack of adequate housing produced even with the creation of housing districts. 6:04 P.M. Floor closed to Public Comment. The Mayor thanked Ms. Adamson for her presentation.

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting Ms. Adamson announced the upcoming AMBAG meetings that will discuss the Regional Needs Housing Allocation. AGENDA ITEM 8, PUBLIC HEARING {A name draw was conducted. Council Members Hawthorne and Sofer recused from the meeting due to a possible conflict of interest by residing within 500’ of the subject property}. 8A. Consideration of City RESOLUTION to Approve Coastal Development Permit 21-03 for Kelcon Construction for Storage Use of an Existing Commercial Building at 325 Elder Avenue City Planner Pooler presented a staff report for a conditional use permit submitted by Kelcon General Building Contractor for storage of vehicles and other miscellaneous items within an existing commercial property at 325 Elder Avenue. He provided the site and project descriptions for the intended use. There will be 6 employees who will make visits to the location to pick up or drop off materials and equipment. The letter of intent specifies the types of vehicles that will be stored at the property. The location can accommodate the parking zoning requirements with minimal impact of the daytime n-site parking demand with Camp Transformations peak operational hours. The subject property’s owner/manager is responsible for managing the on-site parking and addressing and resolving tenant disputes A notice of violation was provided in April in response to public complaints of noise and activity. An inspection was conducted at the location which noted that there was construction of multiple levels within the building without city approval or permits. The additional floor area requires additional water allocation from the City and a permit from the MPWMD. There has been no water allocation for non- permitted construction. Staff recommends that all storage be contained within the building, that all non-permitted construction be removed, and that residential or other non-storage related uses be prohibited, as well as social gatherings, gym and residential uses. Recommendation of approval of the Coastal Development Permit is for the Applicant’s storge use only, with the conditions/restrictions proposed by staff. Council Member Blackwelder expressed his concern regarding the motorcycle activity that happens up and down his street. In response to Mayor Carbone’s inquiry regarding what needs to be removed from the building, Mr. Pooler responded that it would be all non-permitted construction. He further reported on subleases that was included in the staff report. Building Inspector John Kuehl reported on the two additional floors that were constructed without permits. 6:16 P.M. Floor opened for Public Comment.

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting Sand City resident Johnny Reyes who live across the street from Camp Transformation requested that the Council provide residential parking signs to the residents in the area as the business clients are using their spaces. He also mentioned speaking to the persons involved that create the motorcycle noise. Kelly of Kelcon Construction commented on the tools and equipment that are stored inside the subject property and additional floor spaces and walls that were added. He expressed remorse for not obtaining permits prior to construction and presented the idea of adding a bathroom facility. He also noted that they were not the individuals that race up and down the street. The Council and Staff discussed the unpermitted construction, water allocation for additional floor area, the removal of the existing construction, and bathroom facility. Mr. Kuehl reported on his findings of the inspection and noted that the installation of the additional floor area is substandard, would not comply with the building codes, and that a structural engineer would need to conduct an inspection. Mr. Pooler reported on the intention of allocating available water and that once water rights are assigned to a building, they would remain there. He added that the applicant will need to seek a structural engineer, and schedule a meeting with Mr. Kuehl. Once permits are issued, a water allocation can be issued. 6:41 P.M. Floor closed to Public Comment. In response to Mayor’s Carbone’s inquiry whether the applicant was in agreement with permit conditions, Kelly responded that he would like additional time to review the conditions of the permit and seek a structural engineer. Staff and Council discussed several future dates to hold the public hearing and determined that the September 7, 2021 Council meeting would give the applicant sufficient time. Motion to continue the City Resolution to the September 7, 2021 council meeting to approve Coastal Development Permit 21-03 for Kelcon Construction for Storage Use of an Existing Commercial Building at 325 Elder Avenue was made by Council Member Blackwelder, seconded by Council Member Cruz. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz. NOES: None. ABSENT: None. ABSTAIN: Council Members Hawthorne and Sofer. Motion carried. {Council Members Hawthorne and Sofer returned to the dais} AGENDA ITEM 9, NEW BUSINESS 9A. Discussion and Approval of mock-ups as part of the we. murals 2021 City Manager Blair presented the we. murals 2021 mock-ups approved by the property owner and Sand City Art Committee. The mock-ups are before the Council for approval as provided in the public art policy and in the property owner/artist agreements. He noted that since these are mock-ups they are not the final product.

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting Visual renderings of each mural and their locations were displayed, along with the artist backgrounds, and the individuals that will be collaborating with one another to paint them. We.murals coordinator Pat Milberry provided his comments on the mock-ups, history of the artists painting them, type of art expression, and interpretation of the art. Council Member Sofer commended Mr. Blair and Milberry for their hard work in gathering the artist and people involved. Council Member Cruz received confirmation that the building owners have seen and approved the mock-ups. Council Member Hawthorne mentioned the hard work of staff, his excitement of the event, and that it will be a positive thing for the City. 7:39 P.M. Floor opened for Public Comment. Sand City resident Don Difede received information from City Manager Blair regarding the cost for the we.mural event and that it was part of the approved budget. Pat Milberry thanked the public for funding the event and the support of local artist. Sand City resident Johnny Reyes commented in favor of the art in Sand City, and the possibility of someone creating a future documentary about the art. Brian Clark, Sand City resident commented that what the City is receiving in lieu of the cost is an incredible amount of art. He congratulated Pat and Aaron for their hard work and collaboration. He spoke to the reallocation of the budget for the community instead of unneeded public safety services. 7:42 P.M. Floor closed to Public Comment. Motion to accept the 2021 we.mural mock-ups was made by Council Member Sofer, seconded by Council Member Hawthorne. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. AGENDA ITEM 10, CLOSED SESSION {Council Member Cruz recused from the remainder of the meeting due to a possible conflict of interest by residing within 500’ of the subject property} 7:45 p.m. 10A. City Council/Successor Agency Board to adjourn to Closed Session regarding: 1) Conference with legal counsel - anticipated litigation (Gov. code section 54956.9(e)(1))

__________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.03.21 Regular Meeting 8:05 p.m. 10B. Re-adjourned to Open Session to report any action taken at the conclusion of Closed Session in accordance with Government Code section 54957.1. City council received confidential information from legal counsel and provided direction. No action was taken. AGENDA ITEM 11, ADJOURNMENT There was consensus of the City Council to adjourn the meeting at 8:06 p.m. to the next regularly scheduled council meeting on August 17, 2021 at 5:30 p.m. _______________________ Connie Horca, City Clerk

REGULAR MEETING JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY TUESDAY, AUGUST 3, 2021 5:30 PM 1

1. PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. ANNOUNCEMENTS BY MAYOR, CITY ATTORNEY, AND CITY STAFF AGENDA JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, August 3, 2021 5:30 PM THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH THE GOVERNOR’S EXECUTIVE ORDER N-29-20 ALLOWING FOR A DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT. TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE: https://us02web.zoom.us/j/4417277342 Meeting ID: 441 727 7342# To participate telephonically by calling the number below: (669) 900-6833 Meeting ID: 441 727 7342# If prompted to enter a participant ID, press # How to submit written Public Comments: If any member of the public would like to provide written comments at the meeting, please do as set forth below. Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to connie@sandcityca.org. Read Aloud During the Meeting: Email your comments to aaron@sandcityca.org when the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence). DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. 2

3A. City Manager Memorandum CityManagerMemo.pdf 4. COMMUNICATIONS Members of the public may address the City Council/Successor Agency on matters not appearing on the City Council/Successor Agency Agenda at this time for up to three minutes. In order that the City Clerk may later identify the speaker in the minutes of the meeting, it is helpful if speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the time the item is being considered by the City Council/Successor Agency. The City Council Chambers podium is equipped with a portable microphone for anyone unable to come to the podium. If you need assistance, please advise the City Clerk as to which item you would like to comment on and the microphone will be brought to you. 5. CONSENT CALENDAR The Consent Agenda consists of routine items for which City Council approval can be taken with a single motion and vote. A Council member may request that any item be placed on the Regular Agenda for separate consideration. A Council member may request that any item be placed on the Regular Agenda for separate consideration. 5A. Approval of July 20, 2021 Council Meeting Minutes 7.20.21 Minutes.pdf 5B. Approval of City RESOLUTION Granting the City Manager Authorization to Assign up to 0.0192 acre-feet/year of water from the Sand City Water Entitlement for Public Landscaping and Park Open Space fronting Contra Costa Street Staff Report. Water Allocation for Sand City Public Landscaping.pdf RESOLUTION. Authorization to Assign Water for Public Landscaping and Park Open Space fronting Contra Costa Street.pdf 5C. Approval of City RESOLUTION Granting the City Manager Authorization to execute a Water Assignment Agreement and Assign up to 0.176 acre-feet of Water from the Sand City Water Entitlement to Rick Chaidez of Quasar LLC for Development of a Single Family Dwelling at 1880 Park Avenue (APN 011-131- 019) Staff Report. Water Allocation for Residential Development by Rick Chaidez.pdf RESOLUTION. Authorization to Assign Water to Rick Chaidez for Single Family Dwelling at 1880 Park Avenue.pdf 5D. Approval of City Donation/Contribution 1. The Panetta Institute for Public Policy - $500 Memo for City Donation.Contribution.pdf 6. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR 7. PRESENTATION 7A. Presentation by Heather Adamson, Director of Planning, Association of Monterey Bay Area Governments (AMBAG) on overview of the Regional Housing Needs Allocation or RHNA 3

6th Cycle RHNA Overview_Sand City_080321_final.pptx 8. PUBLIC HEARING 8A. Consideration of City RESOLUTION to Approve Coastal Development Permit 21- 03 for Kelcon Construction for Storage Use of an Existing Commercial Building at 325 Elder Avenue Staff Report. Coastal Development Permit for Kelcon Construction.pdf RESOLUTION. Approve CDP 21-03 for Kelcon Construction for Storage Use at 325 Elder Avenue.pdf 9. NEW BUSINESS 9A. Discussion and Approval of mock-ups as part of the we. murals 2021 Staff Report. Discussion of we.mural mock ups.2021.pdf 10. CLOSED SESSION 10A. City Council/Successor Agency Board to adjourn to Closed Session regarding: 1) Conference with legal counsel - anticipated litigation (Gov. code section 54956.9(e)(1)) 10B. Re-adjourn to Open Session to report any action taken at the conclusion of Closed Session in accordance with Government Code section 54957.1 11. ADJOURNMENT The current agenda is available in PDF format on our website at: www.sandcity.org If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation. 4

REGULAR MEETING JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY TUESDAY, AUGUST 3, 2021 5:30 PM 1

1. PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. ANNOUNCEMENTS BY MAYOR, CITY ATTORNEY, AND CITY STAFF AGENDA JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, August 3, 2021 5:30 PM THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH THE GOVERNOR’S EXECUTIVE ORDER N-29-20 ALLOWING FOR A DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT. TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE: https://us02web.zoom.us/j/4417277342 Meeting ID: 441 727 7342# To participate telephonically by calling the number below: (669) 900-6833 Meeting ID: 441 727 7342# If prompted to enter a participant ID, press # How to submit written Public Comments: If any member of the public would like to provide written comments at the meeting, please do as set forth below. Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to connie@sandcityca.org. Read Aloud During the Meeting: Email your comments to aaron@sandcityca.org when the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence). DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. 2

3A. City Manager Memorandum CityManagerMemo.pdf 4. COMMUNICATIONS Members of the public may address the City Council/Successor Agency on matters not appearing on the City Council/Successor Agency Agenda at this time for up to three minutes. In order that the City Clerk may later identify the speaker in the minutes of the meeting, it is helpful if speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the time the item is being considered by the City Council/Successor Agency. The City Council Chambers podium is equipped with a portable microphone for anyone unable to come to the podium. If you need assistance, please advise the City Clerk as to which item you would like to comment on and the microphone will be brought to you. 5. CONSENT CALENDAR The Consent Agenda consists of routine items for which City Council approval can be taken with a single motion and vote. A Council member may request that any item be placed on the Regular Agenda for separate consideration. A Council member may request that any item be placed on the Regular Agenda for separate consideration. 5A. Approval of July 20, 2021 Council Meeting Minutes 7.20.21 Minutes.pdf 5B. Approval of City RESOLUTION Granting the City Manager Authorization to Assign up to 0.0192 acre-feet/year of water from the Sand City Water Entitlement for Public Landscaping and Park Open Space fronting Contra Costa Street Staff Report. Water Allocation for Sand City Public Landscaping.pdf RESOLUTION. Authorization to Assign Water for Public Landscaping and Park Open Space fronting Contra Costa Street.pdf 5C. Approval of City RESOLUTION Granting the City Manager Authorization to execute a Water Assignment Agreement and Assign up to 0.176 acre-feet of Water from the Sand City Water Entitlement to Rick Chaidez of Quasar LLC for Development of a Single Family Dwelling at 1880 Park Avenue (APN 011-131- 019) Staff Report. Water Allocation for Residential Development by Rick Chaidez.pdf RESOLUTION. Authorization to Assign Water to Rick Chaidez for Single Family Dwelling at 1880 Park Avenue.pdf 5D. Approval of City Donation/Contribution 1. The Panetta Institute for Public Policy - $500 Memo for City Donation.Contribution.pdf 6. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR 7. PRESENTATION 7A. Presentation by Heather Adamson, Director of Planning, Association of Monterey Bay Area Governments (AMBAG) on overview of the Regional Housing Needs Allocation or RHNA 3

6th Cycle RHNA Overview_Sand City_080321_final.pptx 8. PUBLIC HEARING 8A. Consideration of City RESOLUTION to Approve Coastal Development Permit 21- 03 for Kelcon Construction for Storage Use of an Existing Commercial Building at 325 Elder Avenue Staff Report. Coastal Development Permit for Kelcon Construction.pdf RESOLUTION. Approve CDP 21-03 for Kelcon Construction for Storage Use at 325 Elder Avenue.pdf 9. NEW BUSINESS 9A. Discussion and Approval of mock-ups as part of the we. murals 2021 Staff Report. Discussion of we.mural mock ups.2021.pdf 10. CLOSED SESSION 10A. City Council/Successor Agency Board to adjourn to Closed Session regarding: 1) Conference with legal counsel - anticipated litigation (Gov. code section 54956.9(e)(1)) 10B. Re-adjourn to Open Session to report any action taken at the conclusion of Closed Session in accordance with Government Code section 54957.1 11. ADJOURNMENT The current agenda is available in PDF format on our website at: www.sandcity.org If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation. 4

AGENDA ITEM 3A. City Manager Memorandum 5

MEMO To: Honorable Mayor and City Council Members From: Aaron Blair, City Manager Date: July 28, 2021 (Meeting Date: August 3, 2021) Re: City Manager Update Committee Meetings: 1. There was an Art Committee meeting on 7/27 and on 8/3. City Capital Improvement Projects, Public Works: 1. Electrical Upgrades. Phase 2 of the upgrade project, server room, should begin over the next month or so. 2. Catalina Stormwater Grant. Grant awarded. Next steps including moving the design to a 60% completion. 3. Contra Costa Stormwater Grant. Grant awarded. Next steps including moving the design to a 90% completion. 4. West Bay Repairs. Design is complete. There is delay in materials. 5. Calabrese Park. We have two different projects in the works. a. CDBG funded ADA improvements (CDBG ADA matching Grant $90,000). The design is complete. We have added Pendergrass Way pavement improvements to this project. Look for it to go out to bid in late July/early August. b. Grant award for playground improvements: $177,952. Landscape designs are underway. 6. Cal Am/Sand City desal wells. a. This item is on hold for now. 7. Pavement Management Plan (PMP) –Several projects have been budgeted in the 5-year Capital Improvement Plan (CIP). Pendergrass Way has been budgeted in FY 21/22. Sustainable Transportation Plan & Parking Plan 1. There was a sustainable transportation plan staff/EMC meeting on 7/30. 6

2 City Staff 1. Meetings: a. My next monthly Monterey Bay Area City Managers meeting is 8/20. b. Our monthly engineering and public works staff meeting to go over current projects will be held on 8/19. c. I had a 3CE Board meeting on 7/28. d. John, Chuck, and I have a meeting with New Cities developers to discuss permitting and process on 8/4. e. John, myself, and the Mayor met with Granite Rock on 7/26 to go over the South Tioga project. f. We have our standing South of Tioga project meeting on 8/5. g. I had a we. mural meeting on 7/28. h. I have an MBASIA Board meeting on 8/4. i. I attended the 3CE Readiness Pilot Program meeting on 7/21. j. I had a 3CE Operations Special Board meeting on 7/28, and a regular operations board meeting on 8/11. k. Devon and I have an OPEB meeting on 8/16. l. I met with the Weekly to discuss details over their proposed cover story on Sand City and the arts on 7/26. m. I met with Steve V. on 7/27 to discuss details related to the West End Celebration. n. I attended the District 4 Monthly Standing Meeting on 8/2. 2. Website, Social Media, and Communications. a. City of Sand City Social Channels: @SandCityCA i. Facebook: 311 (+5) | Twitter: 113 (+0) | Instagram: 1143 (+21) b. The Sand City Art Committee (@SandCityArt) i. Facebook: 2 (new page) | Instagram: 1001 (+15) c. The August E-Newsletter went out on 7/30. Budget 1. First Quarter 2021 Sales Tax is up 16.3% above the first sales period in 2020. Community Development 1. Building Services Department. Staff has been discussing a fee schedule update. The goal is to have something for Council to discuss in 2021. 2. Seaside Sanitation Upgrades. There is a planned sewer upsizing along Ortiz between Contra Costa and Holly. PGE has completed the relocation of a gas line along Ortiz to make way for the sewer upsizing. Sewer work will begin in September. 3. Public Art, Events, & Placemaking: a. we.murals i. Mock-ups will be before Council on 8/3 and 8/17. b. 2021 West End Celebration. The event will be 8/28-8/29. 4. South of Tioga. 7

3 a. Selective demo began on 4/28. 5. Art Park – Implementation Phase. 6. McDonalds Remodel (Under Construction) 7. Ocean View Ave at Fell St. SFD (Under Construction) 8. 756 California Avenue (Complete) 9. 460 Elder Expansion (Permit Review) 10. Monterey Bay Shores (Site Work: On Hold) 11. 534 Shasta Commercial Building Expansion (Under Construction) 12. Monterey Bay Collection (Permit Review Coastal Commission) 13. Target Remodel (Under Construction) 14. Catalina Lofts (Under Construction) 15. Telsa Charging Stations (Edgewater – Complete) 16. Ashley Home Furniture (August 2021) TASK LIST (Quarter represents Fiscal Year) Public Works/Engineering • CIP-Calabrese Park Improvements A (4 th quarter, 1st & 2 nd quarter FY 21/22) • CIP-Pendergrass Way resurface (PMP -Pavement Management Program) (4th quarter, & 1st & 2 nd quarter FY 21/22) • CIP-West Bay Street Repair Project (4 th quarter, & 1st and 2 nd quarter FY 21/22) • CIP-West End SW Improvement Projects (2021-2022) o Contra Costa St. (Grant Funding approved) o Catalina St. (Grant Funding approved) • Sand City Water Supply Project (SCWSP) Phase 1 New Wells (2021) • CIP-City Hall Electrical Service Updates (Phase 1 Complete) • CIP-City Hall Improvements (1st quarter) • CIP-Street sweeper replacement (Awaiting delivery) • CIP-Dump Truck replacement (Awaiting delivery) • CIP-TAMC Parcel Landscaping (1st and 2 nd quarter FY 21/22) Community Development/Planning • CIP-Parking Strategy Plan (Implementation Phase) • Sustainable Transportation Plan (Implementation Phase) • Short-term rental ordinance (1st and 2nd quarter FY 21/22) • Fee schedule Update: Fee Study (FY 21/22) • Cannabis Ordinance (1st and 2 nd quarter FY 21/22) Economic Development • Art Park (FY 2021/22) • McDonalds Remodel (Under Construction) • Ocean View Ave at Fell St. SFD (Under Construction) • 756 California Avenue (Complete) • 460 Elder Expansion (Permit Review) 8

4 • Monterey Bay Shores (Site Work: On Hold) • 534 Shasta Commercial Building Expansion (Under Construction) • Monterey Bay Collection (Permit Review Coastal Commission) • Target Remodel (Under Construction) • Catalina Lofts (Under Construction) • Telsa Charging Stations (Edgewater – Complete) • Ashley Home Furniture (August 2021) • South of Tioga o Community Finance District (Pending) o Development Agreement (Executed) o Sliver properties (Executed) o Lot line Adjustment (Executed) o Subdivision Improvement Agreement (pending) o Final Map (pending) 9

AGENDA ITEM 5A. Approval of July 20, 2021 Council Meeting Minutes 10

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 07.20.21 Regular Meeting MINUTES JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, July 20, 2021 5:30 PM As allowed per the State of California Governor’s Executive Order N-29-20, this meeting was conducted in person and by teleconference Mayor Carbone opened the meeting at 5:30 P.M. AGENDA ITEM 1, ROLL CALL Present: Mayor Mary Ann Carbone Council Member Blackwelder Council Member Cruz Council Member Sofer Council Member Hawthorne Staff: Aaron Blair, City Manager Vibeke Norgaard, City Attorney Connie Horca, City Clerk Charles Pooler, City Planner AGENDA ITEM 2, CLOSED SESSION 5:32 p.m. 2A. City Council/Successor Agency Board to adjourn to Closed Session regarding: 1) Conference with legal counsel - anticipated litigation (Gov. code section 54956.9(d)(2)) 5:59 p.m. 2B. Re-adjourn to Open Session to report any action taken at the conclusion of Closed Session in accordance with Cal. Gov Code section 54957.1. The Successor Agency received confidential legal advise from the Council. No action was taken. AGENDA ITEM 3, ANNOUNCEMENTS BY MAYOR, CITY ATTORNEY, AND CITY STAFF City Manager Blair reported on the first quarter sales tax report received from HdL and that the City is doing very well with a 3% increase above pre-covid numbers. He will also be presenting the we.mural mockups at the August 3 rd Council meeting. Mayor Carbone announced that the City Hall electrical upgrades were completed. City Manager Blair added that Phase II of the electrical upgrades will include the Council 11

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 07.20.21 Regular Meeting Chambers. He also reported that an update regarding the desalination wells will be provided to the Council at a future meeting. The Mayor thanked staff for the reports and updates. AGENDA ITEM 4, COMMUNICATIONS 6:02 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications on items not appearing on the agenda. 6:02 P.M. Floor closed to Public Comment. AGENDA ITEM 5, CONSENT CALENDAR 5A. There was no discussion of the July 6, 2021 Sand City Council Meeting Minutes. 5B. There was no discussion of the City Donation/Contribution to the 2021 Monterey County Fair for $500. Motion to approve the Consent Calendar items was made by Council Member Blackwelder, seconded by Council Member Hawthorne. AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. AGENDA ITEM 6, CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar. AGENDA ITEM 7, NEW BUSINESS 7A. Consideration of City RESOLUTION Authorizing the City Manager to Extend the Service Agreement with EMC Planning Group for Fiscal Year 2021-2022 in Completing a Sustainable Transportation Plan City Planner Charles Pooler presented the staff report and background regarding the Cal-Trans Sustainable Communities Grant that was award to the City in May 2019 for the amount of $163,779 with a required City match of $21,221 for a total project cost of $185,000. The Sustainable Transportation plan would address bicycle and pedestrian infrastructure, connectivity deficiencies, and develop potential solutions to close gaps and links along the regional trail. In May 2020, EMC completed 57% of the Sustainable Transportation Plan, and staff recently held meetings to discuss on how to move the plan forward. Mr. Pooler noted that the City's approved fiscal year 2021-2022 contains adequate funds required to complete the Sustainable Transportation Plan. Staff recommends approval of the attached resolution to extend the service agreement with EMC Planning Group, Inc. In response to the Mayor’s inquiry regarding disbursement of matching funds, Mr. Pooler provided a response on the process of reimbursement, invoicing, and payment of matching funds. 12

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 07.20.21 Regular Meeting 6:09 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:09 P.M. Floor closed to Public Comment. Motion to approve the City Resolution authorizing the City Manager to Extend the Service Agreement with EMC Planning Group for Fiscal Year 2021-2022 in completing a Sustainable Transportation Plan was made by Council Member Hawthorne, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. 7B. Consideration of City RESOLUTION Authorizing the City Manager to Execute an Extension of Service Agreement with EMC Planning Group Incorporated to Complete the Parking Plan City Planner Charles Pooler presented the background regarding the comprehensive parking study and plan in response to parking issues and entitlement permit issues related to parking in the West End District. In January 2020, the City Council authorized the City Manager to execute an agreement with EMC Planning Group to prepare a parking plan. Mr. Pooler summarized the intent of what the Parking Plan would address. The project was placed on hold in October 2020 due to the exhaustion of allocated funds. EMC’s May 2021 invoice indicated that 57% of the plan has been completed. The current Administrative Draft contains 7 out of 8 chapters drafted for staff review and outlined the remaining work required to complete the Parking Plan. The fiscal year 2021-2022 budget includes a $30,000 budget allocation for completion of the Parking Plan. Staff recommends approval of the attached Resolution authorizing the City Manager to amend and extend the service contract for completion of the Parking Plan and necessary CEQA review. Mr. Pooler provided a response regarding the cost to complete the plan. Mayor Carbone reiterated the importance of analyzing contracts and the need for more accurate estimates on proposed projects and studies. There was Council discussion regarding the TAMC location, its possible use for public parking, and certain requirements that need to be met before TAMC can approve the location for parking. Vice Chair Blackwelder suggested that the Davi site may be a possibility. City Attorney Norgaard advised council that any discussion other than the EMC contract should be agendized. Mr. Blair provided a history of the contract with EMC and the reduction of their service contract for fiscal year 2021-22. 13

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 07.20.21 Regular Meeting 6:41 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:41 P.M. Floor closed to Public Comment. Motion to approve the City Resolution authorizing the City Manager to execute an extension of Service Agreement with EMC Planning Group incorporated to complete the Parking Plan was made by Council Member Sofer, seconded by Council Member Hawthorne. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. 7C. Consideration of Successor Agency to the Former Redevelopment Agency RESOLUTION Authorizing the Executive Director to Execute a Contract with Liebold McClendon & Mann, P.C. City Attorney Norgaard presented the staff report and resolution regarding the contract with Liebold McClendon & Mann, P.C. for the legal representation and advise on the winding down activities, and enforceable obligations of the Successor Agency. Ms. Barbara Liebold was highly recommended by the Successor Agency's Financial Consultant, Cheryl Murase of HdL. Ms. Liebold has 30 years of experience, extensive knowledge in redevelopment law, and has represented eight successor agencies and three oversight boards. Staff recommends approval of the attached resolution authorizing the City Manager/Executive Director to enter into a contract not to exceed $34,000 for services to be provided by Leibold McClendon & Mann, P.C. 6:45 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications 6:45 P.M. Floor closed to Public Comment. Motion to approve the Successor Agency Resolution authorizing the Executive Director to execute a contract with Liebold McClendon & Mann, P.C. was made by Agency Member Blackwelder, seconded by Agency Member Sofer. Roll call Vote AYES: Agency Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. 7D. Comments by Council Members on Items of Interest to Sand City Vice Mayor Blackwelder reported that at the last MRWMD meeting, the agency has secured a recruitment firm and is moving forward to find viable candidates. He also commented on the condition of the sound system in the council chambers. 14

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 07.20.21 Regular Meeting Council Member Sofer reported on her attendance at the MCBC speaker series that included a presentation by District 5 Supervisor Mary Adams, and results of the In - Home Social Services meeting. City Manager Blair reported on an update he received regarding the litigation involving the Monterey Bay Shores property, and the tenancy at the former Orchard Supply building. He reported on the City ‘Sparks’ event at the Art Park in August coordinated by Ms. Gorman. The Council discussed the closing of several businesses in Sand City. Mayor Carbone mentioned that a new strain of the coronavirus has been detected. AGENDA ITEM 8, ADJOURNMENT Motion to adjourn the meeting was made by Council Member Hawthorne, seconded by Council Member Blackwelder. There was consensus of the City Council to adjourn the meeting at 6:57 p.m. to the next regularly scheduled council meeting on August 3, 2021 at 5:30 p.m. ______________________________ Connie Horca, City Clerk 15

AGENDA ITEM 5B. Approval of City RESOLUTION Granting the City Manager Authorization to Assign up to 0.0192 acre-feet/year of water from the Sand City Water Entitlement for Public Landscaping and Park Open Space fronting Contra Costa Street 16

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AGENDA ITEM 5C. Approval of City RESOLUTION Granting the City Manager Authorization to execute a Water Assignment Agreement and Assign up to 0.176 acre-feet of Water from the Sand City Water Entitlement to Rick Chaidez of Quasar LLC for Development of a Single Family Dwelling at 1880 Park Avenue (APN 011-131-019) 26

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AGENDA ITEM 5D. Approval of City Donation/Contribution 1. The Panetta Institute for Public Policy - $500 37

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