Joint Sand City Council and Successor Agency of the Redevelopment Agency

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 09.07.21 Regular Meeting MINUTES JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, September 7, 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 Vice Mayor Blackwelder. AGENDA ITEM 2, ROLL CALL Present: Mayor Mary Ann Carbone Council Member Blackwelder Council Member Cruz (virtual attendance) Council Member Sofer Council Member Hawthorne (virtual attendance) Staff: Aaron Blair, City Manager Vibeke Norgaard, City Attorney Connie Horca, City Clerk (virtual attendance) Charles Pooler, City Planner Brian Ferrante, Chief of Police AGENDA ITEM 3, ANNOUNCEMENTS BY MAYOR, CITY ATTORNEY, AND CITY STAFF Mayor Carbone announced that her Mayor’s report was distributed via email. City Manager Blair reported on the grand opening of Ashley Homestore, Marshalls renovation, and a new wine sales business adjacent to Ashley. He reported on his staff meeting with the hotel developer and the continued progress of the South of Tioga development project. City Attorney Norgaard reported on the subdivision improvement agreement – bonds have been posted and a Guaranty had also been executed by Lyles Diversified. Mr. Blair also reported on the sewer work on Ortiz Avenue that should commence some time next week. The Mayor provided an update on the September 13 Monterey Chamber Luncheon, and the no cooking and camp fire prohibition issued by the Parks Department. AGENDA ITEM 4, COMMUNICATIONS 5:38 P.M. Floor opened for Public Comment.

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 09.07.21 Regular Meeting There were no comments from the Public in person, via writing or through telecommunications on items not appearing on the agenda. 5:39 P.M. Floor closed for Public Comment. AGENDA ITEM 5, CONSENT CALENDAR 5A. There was no discussion of the August 17, 2021 Sand City Council Meeting Minutes. 5B. There was no discussion of the City Resolution honoring Jacob's Heart Children's Cancer Support Services and Declaring September 2021 as Childhood Cancer Awareness Month in Sand City. 5C. There was no discussion of the League of California Cities 2021 Annual Conference Resolutions. Motion to approve the Consent Calendar items 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 CONSENT CALENDAR There were no items pulled from the Consent Calendar. AGENDA ITEM 7, PRESENTATION 7A. Presentation by Haley Brown of Jacobs Heart Cancer Support Services The presentation was postponed due to the absence of a representative from Jacob’s Heart Cancer Support Services. AGENDA ITEM 8, PUBLIC HEARING {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 (this item continued from the August 3, 2021 Council meeting) Mr. Pooler summarized the application that was considered at the August 3, 2021 City Council meeting. Discussion at the meeting revolved around the non-permitted construction and whether the Applicant had to remove that construction. The Applicant met with the building official on August 20th resulting in what needed to be removed and what can remain. Also, allocating water to non-permitted construction would set an undesirable precedent that would not in the best interest of the City. Staff recommends approval of the coastal development permit to allow storage as presented at the August 3 rd Council meeting with the requirements/conditions to

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 09.07.21 Regular Meeting remove all non-permitted construction as determined by the City’s Building Official. Staff does not recommend any water be allocated to support non-permitted construction. 5:47 P.M. Floor opened for Public Comment. Mr. Kelly of Kelcon Construction commented that he met with the building official Mr. Keuhl, who noted what non-permitted construction must be removed, and agreed with Mr. Kuehl’s recommendations. There was discussion regarding the demolition of non-permitted construction, submission of a building permit, and what can/cannot stay. In response to the Mayor’s inquiry whether Mr. Kelly was in agreement with the conditions of the permit, Mr. Kelly responded that he was in agreement with permit conditions. Mr. Pooler advised the applicant to submit an application for demolition. 5:53 P.M. Floor closed to Public Comment. Motion 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, Sofer. Motion carried. {Council Members Hawthorne and Sofer returned to the meeting} {Council Member Cruz recused from the meeting due to a possible conflict of interest by residing within 500 feet of the subject property} 8B. Consideration of City RESOLUTION Approving Conditional Use Permit 648 for Michael Worcester Authorizing a Glasswork Artist Studio at 769 Dias Avenue City Planner Pooler reported that the applicant requested that this item be continued to the October 5, 2021 due to his unavailability to attend the meeting. Motion to continue the City Resolution approving Conditional Use Permit 648 for Michael Worcester authorizing a Glasswork Artist Studio at 769 Dias Avenue to the October 5, 2021 Council meeting was made by Council Member Blackwelder, seconded by Council Member Sofer. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: Council Member Cruz. Motion carried. {Council Member Cruz returned to the meeting} AGENDA ITEM 9, NEW BUSINESS 9A. Consideration of Successor Agency RESOLUTION Repealing Resolution No. SA 18-02 and Approving Reinstatement of a Loan Agreement between the City of Sand City and the Former Sand City Redevelopment Agency, Finding

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 09.07.21 Regular Meeting the Loan was made for Legitimate Redevelopment Purposes and Approving a Schedule for Repayment by the Successor Agency of the Amount of the Loan Used to Fund Payments under the Seaside Agreement Special Counsel Barbara Leibold, provided a history of the two agreements entered into by the former Sand City Redevelopment Agency (RDA) in 1989. The City financially agreed to assist the former RDA by loaning city sales and use taxes generated in the redevelopment project area to assist the former agency in meeting its obligations to make payments. She further reported on the 2013 Finding of Completion received from the Department of Finance that allows the Successor Agency to request Oversight Board approval to repay amounts due to the City of Sand City pursuant to the Loan Agreement. Staff recommends that the Successor agency approve the resolution repealing Resolution No. SA 18-02 and approving reinstatement of the Loan Agreement, finding the loan by the City of the Former Agency pursuant thereto was made for legitimate redevelopment purposes, and approving a schedule for repayment by the Successor Agency of the amount of the loan used to fund payments under the Seaside Agreement. There was Council discussion regarding the amount owed, retirement of the Seaside Loan, how the City would receive the funds if approved, and the percentage that would be allocated toward Low to Moderate Income Housing. Ms. Leibold mentioned that the Costco loan would be considered at a future date. Should the Successor Agency approve the resolution, it will go before the Countywide Oversight Board for consideration at their September 16th meeting. 6:12 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:12 P.M. Floor closed to Public Comment. Motion to approve the Successor Agency Resolution repealing Resolution No. SA 18-02 and Approving Reinstatement of a Loan Agreement between the City of Sand City and the Former Sand City Redevelopment Agency, Finding the Loan was made for Legitimate Redevelopment Purposes and Approving a Schedule for Repayment by the Successor Agency of the Amount of the Loan Used to Fund Payments under the Seaside Agreement was made by Agency Member Sofer, seconded by Agency Member Carbone. Roll call Vote AYES: Agency Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. 9B. Approval of Successor Agency RESOLUTION Approving the Amended Recognized Obligation Payment Schedule (ROPS 21 -22B) for the Period January 1, 2022 through June 30, 2022 and Making Certain Findings in Connection Therewith Ms. Leibold reported that the Successor Agency has to file a Recognized Obligation Payment Schedule (ROPS) as part of the Dissolution Act so the City can retire its debt. Last January, the Successor Agency approved its ROPS 21-22B, and the

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 09.07.21 Regular Meeting Dissolution Act allows the Agency to file an amended ROPS by October 1, 2021. The only change appears on line item 13 that includes the repayment of the City portion of the Seaside loan. Staff is recommending approval of the Amended ROPS 21-22B. Council Member Sofer received an explanation regarding the payment that was included in the Amended ROPS from Special Council Liebold. 6:19 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:19 P.M. Floor closed to Public Comment. Motion to approve the Successor Agency Resolution Approving the Amended Recognized Obligation Payment Schedule (ROPS 21 -22B) for the Period January 1, 2022 through June 30, 2022 and Making Certain Findings in Connection Therewith was made by Agency Member Sofer, seconded by Agency Member Carbone. Roll call Vote AYES: Agency Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. Mayor Carbone thanked Ms. Leibold for her efforts and work related to the Successor Agency items. 9C. Discussion regarding COVID-19 vaccine mandates and whether to direct City staff to place on an upcoming City Council agenda an order requiring that City employees be either vaccinated against COVID-19 or submit to regular testing for COVID-19 The Mayor reported that the Council received an anonymous public comment regarding the issue. The public comment will be posted on the City’s website for information. City Attorney Norgaard opened the item for discussion that was requested to be placed on the agenda by a Council member. The City currently has no policy prepared for this item. She reported that several cities have issued and approved a policy. Monterey County has extended its vaccine mandate to September 30, 2021. If the City were to move ahead, it would also need to consider the Police Officers Association. Should the Council decide to move forward, it would have to provide guidance and parameters for a policy. 6:27 P.M. Floor opened for Public Comment. The Mayor mentioned that a public comment letter was received by an anonymous individual. The Mayor asked that the Council look over the letter. There were no additional comments from the Public in person, via writing or through telecommunications. 6:29 P.M. Floor closed to Public Comment.

_____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 09.07.21 Regular Meeting Council Member Hawthorne expressed the necessity of being vaccinated for the safety of all employees and for the need to receive testing on a weekly basis for those who do not wish to be vaccinated. The Council discussed whether a mandate would include contract employees, what other cities are doing, possible litigation that may arise, that any mandate would have to include religious and medical exemptions via a note from a Pastor or Doctor. The Council also brought up workplace infection, how that would be handled and/or maintained, pros/cons of weekly disinfection of city hall offices, and city liability should someone become infected and how that is treated. City Manager Blair responded to the Mayor’s inquiry regarding whether there is adequate coverage should an employee become ill. Mr. Pooler added that since not all employees are vaccinated that having a mask mandate provides some form of protection. Chief Ferrante mentioned that a large number of individuals desire not to get the vaccine and the extreme amount of stress it has caused in having to do something they do not want to do. Council Member Hawthorne spoke to the costs borne by the City regarding people on sick leave due to illness. Council Member Blackwelder conveyed that studies have reported that getting a vaccine does not prevent someone from getting ill with covid. The Council further discussed the timeliness of mandating vaccines and consideration of a policy sooner than later, and also the suggestion of having the Monterey County Health Department provide a presentation to the City. The Council directed Staff to bring back a draft policy for review and consideration at a future Council meeting. AGENDA ITEM 10, ADJOURNMENT Motion to adjourn the meeting was made by Council Member Blackwelder, seconded by Council Member Hawthorne. There was consensus of the City Council to adjourn the meeting at 7:28 p.m. to the next regularly scheduled council meeting on September 21, 2021 at 5:30 p.m. ______________________________ Connie Horca, City Clerk

REGULAR MEETING JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY TUESDAY, SEPTEMBER 7, 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, September 7, 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

City Manager Memo 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 August 17, 2021 Sand City Council Meeting Minutes 8.17.21 Minutes.pdf 5B. Approval of City RESOLUTION Honoring Jacob's Heart Children's Cancer Support Services and Declaring September 2021 as Childhood Cancer Awareness Month in Sand City Resolution. 2021 Jacobs Heart Childhood Cancer Awareness.pdf 5C. Acceptance of League of California Cities 2021 Annual Conference Resolutions 2021 League of California Cities Resolutions Packet.pdf 6. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR 7. PRESENTATION 7A. Presentation by Haley Brown of Jacobs Heart Cancer Support Services 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 (this item continued from the August 3, 2021 Council meeting) Staff Report.Addendum 1 for Coastal Development Permit for Kelcon Construction.pdf Attachment 1. July 13, 2021 Staff Report for CDP for Kelcon Contruction.pdf Attachment 2 - Resolution. Approve CDP 21-03 for Kelcon Construction for Storage Use of an Existing Commercial Building at 325 Elder Avenue.pdf 8B. Consideration of City RESOLUTION Approving Conditional Use Permit 648 for Michael Worcester Authorizing a Glasswork Artist Studio at 769 Dias Avenue Staff Report.Conditional Use Permit for Sand City Glassworks.pdf 3

Resolution. Approving CUP 648 for Michael Worcester Authorizing a Glasswork Artist Studio at 769 Dias Avenue.pdf 9. NEW BUSINESS 9A. Consideration of Successor Agency RESOLUTION Repealing Resolution No. SA 18-02 and Approving Reinstatement of a Loan Agreement between the City of Sand City and the Former Sand City Redevelopment Agency, Finding the Loan was made for Legitimate Redevelopment Purposes and Approving a Schedule for Repayment by the Successor Agency of the Amount of the Loan Used to Fund Payments under the Seaside Agreement Staff Report. Successor Agency 1989 Loan Agreement Enforceable Obligation.pdf Attachment 1 - Resolution. Approving Seaside Loan Repayment.pdf Attachment 2 - Finding of Completion.pdf Attachment 3 - Judgment Seaside Agreement.pdf 9B. Approval of Successor Agency RESOLUTION Approving the Amended Recognized Obligation Payment Schedule (ROPS 21-22B) for the Period January 1, 2022 through June 30, 2022 and Making Certain Findings in Connection Therewith Staff Report. Successor Agency Amended ROPS 21-22B.pdf Resolution. Approving the Successor Agency Amended ROPS 21-22B.pdf 9C. Discussion regarding COVID-19 vaccine mandates and whether to direct City staff to place on an upcoming City Council agenda an order requiring that City employees be either vaccinated against COVID-19 or submit to regular testing for COVID-19 10. 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, SEPTEMBER 7, 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, September 7, 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

City Manager Memo 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 August 17, 2021 Sand City Council Meeting Minutes 8.17.21 Minutes.pdf 5B. Approval of City RESOLUTION Honoring Jacob's Heart Children's Cancer Support Services and Declaring September 2021 as Childhood Cancer Awareness Month in Sand City Resolution. 2021 Jacobs Heart Childhood Cancer Awareness.pdf 5C. Acceptance of League of California Cities 2021 Annual Conference Resolutions 2021 League of California Cities Resolutions Packet.pdf 6. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR 7. PRESENTATION 7A. Presentation by Haley Brown of Jacobs Heart Cancer Support Services 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 (this item continued from the August 3, 2021 Council meeting) Staff Report.Addendum 1 for Coastal Development Permit for Kelcon Construction.pdf Attachment 1. July 13, 2021 Staff Report for CDP for Kelcon Contruction.pdf Attachment 2 - Resolution. Approve CDP 21-03 for Kelcon Construction for Storage Use of an Existing Commercial Building at 325 Elder Avenue.pdf 8B. Consideration of City RESOLUTION Approving Conditional Use Permit 648 for Michael Worcester Authorizing a Glasswork Artist Studio at 769 Dias Avenue Staff Report.Conditional Use Permit for Sand City Glassworks.pdf 3

Resolution. Approving CUP 648 for Michael Worcester Authorizing a Glasswork Artist Studio at 769 Dias Avenue.pdf 9. NEW BUSINESS 9A. Consideration of Successor Agency RESOLUTION Repealing Resolution No. SA 18-02 and Approving Reinstatement of a Loan Agreement between the City of Sand City and the Former Sand City Redevelopment Agency, Finding the Loan was made for Legitimate Redevelopment Purposes and Approving a Schedule for Repayment by the Successor Agency of the Amount of the Loan Used to Fund Payments under the Seaside Agreement Staff Report. Successor Agency 1989 Loan Agreement Enforceable Obligation.pdf Attachment 1 - Resolution. Approving Seaside Loan Repayment.pdf Attachment 2 - Finding of Completion.pdf Attachment 3 - Judgment Seaside Agreement.pdf 9B. Approval of Successor Agency RESOLUTION Approving the Amended Recognized Obligation Payment Schedule (ROPS 21-22B) for the Period January 1, 2022 through June 30, 2022 and Making Certain Findings in Connection Therewith Staff Report. Successor Agency Amended ROPS 21-22B.pdf Resolution. Approving the Successor Agency Amended ROPS 21-22B.pdf 9C. Discussion regarding COVID-19 vaccine mandates and whether to direct City staff to place on an upcoming City Council agenda an order requiring that City employees be either vaccinated against COVID-19 or submit to regular testing for COVID-19 10. 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 City Manager Memo 5

MEMO To: Honorable Mayor and City Council Members From: Aaron Blair, City Manager Date: August 30, 2021 (Meeting Date: September 7, 2021) Re: City Manager Update Committee Meetings: 1. There was an Art Committee meeting on 8/16. City Capital Improvement Projects, Public Works: 1. Electrical Upgrades. Phase 2 of the upgrade project, server room, should begin in September. 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 September. 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 9/2. 6

2 City Staff 1. Meetings: a. I attended the monthly Monterey Bay Area City Managers meeting on 8/20. b. Our monthly engineering and public works staff meeting to go over current projects was held on 8/19. c. I had a 3CE Board meeting on 8/11. d. John, Chuck, and I had a meeting with New Cities developers to discuss permitting and process on 8/4. e. We had our standing South of Tioga project meeting on 9/2. f. I had an MBASIA Board meeting on 8/4. g. Devon and I had an OPEB meeting on 8/16. h. I had meeting on 8/18 with TAMC to discuss the ROW through Sand City. 2. Website, Social Media, and Communications. a. City of Sand City Social Channels: @SandCityCA i. Facebook: 359 (+36) | Twitter: 117 (+2) | Instagram: 1262 (+100) b. The Sand City Art Committee (@SandCityArt) i. Facebook: 5 (new page) | Instagram: 1114 (+91) 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 b. 2021 West End Celebration. 4. South of Tioga. a. Demo began on 4/28. 5. Art Park – Implementation Phase. 6. McDonalds Remodel (Complete) 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) 7

3 15. Telsa Charging Stations (Edgewater – Complete) 16. Ashley Home Furniture (August 2021) 17. Total Wine and More (Permit Review - 2021) TASK LIST (Quarter represents Fiscal Year) Public Works/Engineering • CIP-Calabrese Park Improvements A (1st & 2 nd quarter FY 21/22) • CIP-Pendergrass Way resurface (PMP -Pavement Management Program) (1st & 2 nd quarter FY 21/22) • CIP-West Bay Street Repair Project (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 (Complete) • Ocean View Ave at Fell St. SFD (Under Construction) • 756 California Avenue (Complete) • 460 Elder Expansion (Permit Review) • 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) • Total Wine and More (Permit Review - 2021) • South of Tioga 8

4 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 August 17, 2021 Sand City Council Meeting Minutes 10

_____________________________________________________________________________________________ ______________________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.17.21 Regular Meeting MINUTES JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, August 17, 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 5:31 p.m. The invocation was led by Reverend Robert Hellam. AGENDA ITEM 1, PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Chief Brian Ferrante. AGENDA ITEM 2, ROLL CALL Present: Mayor Mary Ann Carbone Council Member Blackwelder Councilmember Cruz (virtual attendance) Councilmember Hawthorne Councilmember Sofer Staff: Aaron Blair, City Manager Vibeke Norgaard, City Attorney Connie Horca, City Clerk (virtual attendance) Police Chief Brian Ferrante AGENDA ITEM 3, CLOSED SESSION {Council Member Cruz recused from the virtual meeting due to a possible conflict of interest by residing within 500’ of the subject property} 5:34 p.m. 3A. 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); (e)(1)) 6:00 p.m. 3B. Re-adjourned to Open Session to report any action taken at the conclusion of Closed Session in accordance with Cal. Gov. Code section 54957.1 11

_____________________________________________________________________________________________ ______________________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.17.21 Regular Meeting The Council received confidential legal advice from legal counsel. No action was taken. {Council Member Cruz rejoined the virtual meeting.} AGENDA ITEM 4, ANNOUNCEMENTS BY MAYOR, CITY ATTORNEY, AND CITY STAFF City Attorney Norgaard announced that the Governor’s orders regarding virtual meetings is due to expire on September 30, 2021 and provided updates on how meetings will be held following that time. City Manager Blair provided information on the Ashley Store opening and expected timeline. He thanked everyone who attended the City Sparks event on Sunday. Council Member Hawthorne reported on this attendance at the cornhole tournament. Mayor Carbone thanked Shelby Gorman and City Manager Blair for their hard work. AGENDA ITEM 5, COMMUNICATIONS 6:06 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. 6:07 P.M. Floor closed for Public Comment. AGENDA ITEM 6, CONSENT CALENDAR 6A. There was no discussion of the August 3, 2021 Council Meeting Minutes. 6B. There was no discussion of the City Resolution authorizing the City Manager to Enter into a Joint Exercise of Powers Agreement and Cooperation Agreement to Undertake or to Assist in the Undertaking of Essential Activities Pursuant to Title I of The Housing and Community Development Act of 1974, as Amended for the Period of July 1, 2022 to June 30, 2025. Motion to approve the Consent Calendar items 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 7, CONSIDERATION OF ITEMS PULLED FROM THE CONSENT CALENDAR There were no items pulled from the Consent Calendar. AGENDA ITEM 8, PRESENTATION 8A. Presentation by Chris Cook, Director of Operations of California America Water Company on Water Supply Forecast 12

_____________________________________________________________________________________________ ______________________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.17.21 Regular Meeting California-America Water Director of Operations Chris Cook presented a PowerPoint regarding the Water Supply & Drought Update. He provided historic information of water sources from the Seaside Basin and Carmel River, the Carmel River authorized diversions, Seaside basin water reduction, availability of other water supplies, and current California drought conditions. He reported on the reservoir levels from the Seaside Basin and Los Padres Dam, water shortage contingency plan, Carmel river pumping limits imposed, future supply and demand, and proposed water supply projects. He noted that water conservation is critical due to drought conditions. Mr. Cook responded to Council Member Hawthorne’s inquiry regarding Board positions and the need to support desalination projects. Council Member Sofer thanked Mr. Cook for the presentation. 6:25 P.M. Floor opened for Public Comment. Public Member Peter Monteer thanked the Council for allowing the presentation and spoke to the need for a long-term water supply. Public Member Marc Kelly commented on the Pure Water Monterey expansion, need for desalination, and water supply issues. Public Member John Tilley addressed the management issues of the Water Board and the timeliness of the Water District to consider a water supply project for the community. 6:33 P.M. Floor closed to Public Comment. Mayor Carbone thanked Mr. Cook for the presentation and update, and mentioned that he is always welcome to make future presentations. 8B. Presentation and Update by Steve Vagnini on the 2021 West End Celebration West End coordinator Steve Vagnini thanked the Council, City and Public Works Staff for all the work they have done in supporting the West End Celebration. He reported that there are 150 vendors spaced 6 feet apart, 30 city businesses participating, and 20 non-profits. There will be 4 stages, and a new footprint with 3 points of entry to address safety issues. He reported on the parking locations, availability of transportation to the event, safety protocols, and media coverage. He thanked the Mayor for gathering a team of volunteers, and that the event will kick off with the we.murals next week. Council Member Cruz reiterated that this is an event the public is looking forward too with enthusiasm. 13

_____________________________________________________________________________________________ ______________________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.17.21 Regular Meeting Council Member Hawthorne thanked Mr. Vagnini for a job well done and expects this to be a tremendous event benefitting the community. Mayor Carbone added that the theme of “Art is Healing” is appropriate due to current events. She requested that Council Members consider serving at the City booth. 6:44 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:44 P.M. Floor closed for Public Comment. Mayor Carbone announced that the City Spark event will take place the 3 rd Sunday of each month. She thanked Mr. Vagnini for the presentation and update. AGENDA ITEM 9, NEW BUSINESS 9A. Discussion and Approval of mock-ups as part of the we. murals 2021 City Manager Blair reported that the public art policy, and as outlined in the in the we.murals 2021 property owner and artist agreements, mock-ups are to be brought to the Council for their consideration and approval. He conveyed that the international artists were unable to attend, and presented a few updated and modified murals previously approved, as well as visual mock-ups for murals located at 673 Ortiz Avenue and 1674 Catalina. The muralist will be priming and painting the walls beginning tomorrow. Staff recommends the approval of the new murals presented. Council Member Hawthorne encouraged the Council and audience to observe the muralist at work. 6:58 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:59 P.M. Floor closed for Public Comment. Motion to approve the mock-ups as recommended at the above locations was made by Council Member Sofer, seconded by Council Member Carbone. Roll call Vote AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. {Council Member Cruz recused from the virtual meeting due to a possible conflict of interest by residing within 500’ of the subject property} 14

_____________________________________________________________________________________________ ______________________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.17.21 Regular Meeting 9B. Consideration of City RESOLUTION Approving a Subdivision Improvement Agreement for the South of Tioga Project and Rescinding prior Resolution SC 21-53 City Attorney Norgaard provided a brief history of the adoption of the Development Agreement (DA), and noted that the DA also required that Developer enter into a Subdivision Improvement Agreement (SIA). The Council adopted a Subdivision Improvement Agreement on July 6, 2021 by Resolution SC 21-53 for the Phase I Improvements which contained various provisions governing securities, public improvements, and the process for final inspection and acceptance by City. The Developer requested an amendment to the SIA prior to its execution due to Developer's internal business entity challenges. Lyles Diversified Inc. has represented to the City that it has agreed to enter into a separate guarantee to step into the shoes of DBO LLC if the revised SIA is found not to be enforceable, which will be executed at the same time as the SIA. Staff recommends approval to rescind the prior resolution and authorize the City Manager to execute the revised Subdivision Improvement Agreement. Council Member Hawthorne commented that the agreement looks to cover the bases for the City, and inquired about the streets and public improvements. Public Member Todd Sheller, Lyles Diversified Inc. Vice President of Investment commented on the progress of the development, the need to continue to move forward, and responded to Mr. Hawthorne’s inquiry regarding public improvements, streets, and landscaping. 7:10 P.M. Floor opened for Public Comment. The Mayor requested City Manager Blair to read the public correspondence received. Correspondence received from Mr. Blake Peters, Principal of New Cities Investment Partners included the good working relationship with the Lyles Team, their involvement in the efforts to help the City meet its RHNA goals and provide much needed affordable housing for current and future Sand City residents, and how vital it is to keep the project moving forward on schedule. He is supportive of Staff’s recommendation. Correspondence received from Ebrahim K. Nakhjavani, President and CEO of EKN Development Inc., included comments regarding the investment of time and money to advance the project entitlements and construction plans. The demonstration of progress, transparency, and ramped up efforts for the preparation of architectural and engineering construction drawings following Lyles direct involvement. The SIA is a critical step to ensure the project moves forward expeditiously and encourages the Council to approve the amendment to the SIA. Dan Silveri of Silveri Construction and Properties commented on his involvement with the project, working with Don Orosco many years ago, the necessity to keep 15

_____________________________________________________________________________________________ ______________________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 08.17.21 Regular Meeting the project moving forward, protection of the habitat property, competitively priced units, and the efforts made by great people. Council Member Hawthorne commented that Don Or