Joint Sand City Council and Successor Agency of the Redevelopment Agency

MINUTES JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY City Council Regular Meeting - Tuesday, February 21, 2023 5:30 PM As allowed by Assembly Bill AB 361, this meeting was conducted in person and by teleconference. Mayor Carbone called the meeting to order at 5:30 PM. 1. ROLLCALL Present: Absent: Staff: Mayor Carbone Vice Mayor Blackwelder Councilmember Hawthorne Councilmember Sofer Councilmember Cruz City Manager Vibeke Norgaard Interim City Attorney Palmer Hilton City Clerk Connie Horca 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Reverend Robert Hellam. 3. INVOCATION The invocation was led by Reverend Robert Hellam. 4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER Mayor Carbone stated the Mayor's Report will be sent via email. City Manager Vibeke Norgaard announced Palmer Hilton is attending the Council Meeting on behalf of Interim City Attorney Adam Lindgren. This meeting is Connie Horca's last Council Meeting before her retirement. Five candidates were interviewed during the City Clerk recruitment, a conditional offer of employment was given, and the candidate accepted with a starting date of March 13, 2023. A new temporary employee has started and is training with Finance. RGS will take the lead in HR. EMC will take lead in the Planning Department with planners in the office 2 days a week. 5. COMMUNICATIONS No public comment received. 6. CONSENTCALENDAR Upon motion by Councilmember Hawthorne and seconded by Vice Mayor Blackwelder, Councilmember Cruz absent, the Council voted 4-0-1 to approve the Consent Calendar. 6A. Approved February 7, 2023 Council Meeting Minutes. 1

68. Approved Successor Agency Resolution SA 23-01 Authorizing the Successor Agency Executive Director to execute a Professional Services Agreement with RSG, Inc. for Continuing Disclosure and Dissemination Agent Services. 6C. Approved City Donations/Contributions: 1) AIA Monterey Bay 2023 Arts & Architecture Lecture Series - $250 2) Pajaro Valley Ohlone Indian Council for the MMIWGTS Red Dress Day - $500 7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR No items were pulled. 8. PRESENTATION BA. Received a presentation by EMC Planning Group regarding the Housing Element Update. Public comment received from Luke Kilpatrick. 9. NEW BUSINESS 9A. Consideration of City Resolutions with EMC Planning Group, Inc. 1) Approval of City Resolution Approving the First Amendment of the Service Agreement with EMC Planning Group, Inc. for Preparation of the 6th Cycle Housing Element Update and related CEQA Review for the City of Sand City 2) Approval of City Resolution Approving an Amendment of the Service Agreement with EMC Planning Group, Inc. to Increase the Budget for Completion of the Parking Plan and Performing the CEQA related Review No public comment received. Upon motion by Vice Mayor Blackwelder and seconded by Councilmember Hawthorne, Councilmember Cruz absent, Council voted 4-0-1 to approve Resolution SC 23-11 approving the first amendment of the service agreement with EMC Planning Group, Inc. for preparation of the 6th Cycle Housing Element Update and related CEQA review for the City of Sand City and; approve Resolution SC 23-12 approving an amendment of the service agreement with EMC Planning Group, Inc. to increase the budget for completion of the Parking Plan and performing the CEQA related review. 98. Update regarding Councilmember Cruz and Consideration of the City procedures set forth in Sand City Charter Section 5 regarding her seat No public comment received. City Manager Vibeke Norgaard stated due to Council member Cruz medical issue has missed 5 regular meetings and 1 special meeting. Under Section 5 of the City's Charter the Council can declare a vacancy and appoint a replacement. Council directed the City Manager to move forward and bring to Council an item 2

on the agenda to declare a vacancy and reappointment of Councilmember Cruz' position. 9C. Consideration of Cancelling the Regular City Council Meeting Scheduled for March 7, 2023 No public comment received. Upon motion by Councilmember Hawthorne and seconded by Councilmember Sofer, Councilmember Cruz absent, Council voted 4-0-1 to cancel the Regular City Council Meeting scheduled for March 7, 2023. 9D. Comments by Council Members on Items of Interest to Sand City Councilmember Sofer mentioned the Sand Box is having a lecture series. 9E. Upcoming Meetings/Events None. 10. ADJOURNMENT Council adjourned the meeting at approximately 7:15 PM. 3

REGULAR MEETING JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY TUESDAY, FEBRUARY 21, 2023 5:30 PM 1

1. ROLL CALL AGENDA JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, February 21, 2023 5:30 PM THIS MEETING WILL BE HELD VIRTUALLY AND IN PERSON, IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 2449, SIGNED INTO LAW ON SEPTEMBER 13, 2022, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC AGENCIES TO CONTINUE TO HOLD VIRTUAL MEETINGS AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.). TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE: https://us02web.zoom.us/j/4614728829 Meeting ID: 461 472 8829 To participate telephonically by calling the number below: (669) 900-6833 Meeting ID: 461 472 8829# If prompted to enter a participant ID, press # TO PARTICIPATE IN PERSON: City Hall Council Chambers 1 Pendergrass Way Sand City, CA 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 connie@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. Please use the "raise your hand" option on Zoom, and the City Clerk will call on your name. 2

2. PLEDGE OF ALLEGIANCE 3. INVOCATION 4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER 5. 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 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. 6. 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. 6A. Approval of February 7, 2023 Council Meeting Minutes 02.07.23 Minutes.pdf 6B. Approval of Successor Agency RESOLUTION Authorizing the Successor Agency Executive Director to Execute a Professional Services Agreement with RSG, Inc. for Continuing Disclosure and Dissemination Agent Services Staff Report. RSG Financial Consulting for Annual Bond Disclosure Reports.pdf Resolution.Authorizing the SA Executive Director to Execute a Professional Service Agreement with RSG. Inc..pdf 6C. Approval of City Donations/Contributions 1) AIA Monterey Bay 2023 Arts & Architecture Lecture Series - $250 2) Pajaro Valley Ohlone Indian Council for the MMIWGTS Red Dress Day - $500 Memorandum. City Donations.Contributions.pdf 7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR 8. PRESENTATION 8A. Presentation by EMC Planning Group regarding the Housing Element Update Staff Report. 6th Cycle Update to the City's Housing Element.pdf 9. NEW BUSINESS 9A. Consideration of City RESOLUTIONS with EMC Planning Group, Inc. 1) Approval of City RESOLUTION Approving the First Amendment of the Service Agreement with EMC Planning Group, Inc. for Preparation of the 6th Cycle Housing Element Update and related CEQA Review for the City of Sand City 2) Approval of City RESOLUTION Approving an Amendment of the Service 3

Agreement with EMC Planning Group, Inc. to Increase the Budget for Completion of the Parking Plan and Performing the CEQA related Review Staff Report. Amendments to Housing Element Contract & Parking Plan Contract with EMC Planning Group, Inc..pdf Attachment 1. Resolution Approving the First Amendment of the Service Agreement with EMC Planning Group for the Preparation of the 6th Cycle Housing Element Update.pdf Attachment 2. Resolution Approving an Amendment of the Service Agreement with EMC to Increase the Budget for Completion of the Parking Plan.pdf 9B. Update regarding Councilmember Cruz and Consideration of the City procedures set forth in Sand City Charter Section 5 regarding her seat 9C. Consideration of Cancelling the Regular City Council Meeting Scheduled for March 7, 2023 9D. Comments by Council Members on Items of Interest to Sand City 9E. Upcoming Meetings/Events 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, FEBRUARY 21, 2023 5:30 PM 1

1. ROLL CALL AGENDA JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, February 21, 2023 5:30 PM THIS MEETING WILL BE HELD VIRTUALLY AND IN PERSON, IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 2449, SIGNED INTO LAW ON SEPTEMBER 13, 2022, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC AGENCIES TO CONTINUE TO HOLD VIRTUAL MEETINGS AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.). TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE: https://us02web.zoom.us/j/4614728829 Meeting ID: 461 472 8829 To participate telephonically by calling the number below: (669) 900-6833 Meeting ID: 461 472 8829# If prompted to enter a participant ID, press # TO PARTICIPATE IN PERSON: City Hall Council Chambers 1 Pendergrass Way Sand City, CA 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 connie@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. Please use the "raise your hand" option on Zoom, and the City Clerk will call on your name. 2

2. PLEDGE OF ALLEGIANCE 3. INVOCATION 4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER 5. 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 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. 6. 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. 6A. Approval of February 7, 2023 Council Meeting Minutes 02.07.23 Minutes.pdf 6B. Approval of Successor Agency RESOLUTION Authorizing the Successor Agency Executive Director to Execute a Professional Services Agreement with RSG, Inc. for Continuing Disclosure and Dissemination Agent Services Staff Report. RSG Financial Consulting for Annual Bond Disclosure Reports.pdf Resolution.Authorizing the SA Executive Director to Execute a Professional Service Agreement with RSG. Inc..pdf 6C. Approval of City Donations/Contributions 1) AIA Monterey Bay 2023 Arts & Architecture Lecture Series - $250 2) Pajaro Valley Ohlone Indian Council for the MMIWGTS Red Dress Day - $500 Memorandum. City Donations.Contributions.pdf 7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR 8. PRESENTATION 8A. Presentation by EMC Planning Group regarding the Housing Element Update Staff Report. 6th Cycle Update to the City's Housing Element.pdf 9. NEW BUSINESS 9A. Consideration of City RESOLUTIONS with EMC Planning Group, Inc. 1) Approval of City RESOLUTION Approving the First Amendment of the Service Agreement with EMC Planning Group, Inc. for Preparation of the 6th Cycle Housing Element Update and related CEQA Review for the City of Sand City 2) Approval of City RESOLUTION Approving an Amendment of the Service 3

Agreement with EMC Planning Group, Inc. to Increase the Budget for Completion of the Parking Plan and Performing the CEQA related Review Staff Report. Amendments to Housing Element Contract & Parking Plan Contract with EMC Planning Group, Inc..pdf Attachment 1. Resolution Approving the First Amendment of the Service Agreement with EMC Planning Group for the Preparation of the 6th Cycle Housing Element Update.pdf Attachment 2. Resolution Approving an Amendment of the Service Agreement with EMC to Increase the Budget for Completion of the Parking Plan.pdf 9B. Update regarding Councilmember Cruz and Consideration of the City procedures set forth in Sand City Charter Section 5 regarding her seat 9C. Consideration of Cancelling the Regular City Council Meeting Scheduled for March 7, 2023 9D. Comments by Council Members on Items of Interest to Sand City 9E. Upcoming Meetings/Events 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 6A. Approval of February 7, 2023 Council Meeting Minutes 5

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting MINUTES JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Regular Meeting - Tuesday, February 7, 2023 5:30 PM As allowed per Assembly Bill (AB361), 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 Councilmember Hawthorne Councilmember Sofer Absent: Councilmember Cruz Staff: Vibeke Norgaard, City Manager Adam Lindgren, Interim City Attorney Charles Pooler, City Planner Connie Horca, City Clerk (virtual attendance) Devon Lazzarino, Finance/HR Specialist (virtual attendance) Brian Ferrante, Chief of Police AGENDA ITEM 2, PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Police Chief Ferrante. AGENDA ITEM 3, INVOCATION The invocation was led by Reverend Robert Hellam. AGENDA ITEM 4, ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER Mayor Carbone reported that Monterey 1 Water approved the appeal from the South of Tioga developer on sewer charges to reduce certain fees, and mentioned the 40-year anniversary ribbon cutting for Disaster Kleenup Specialist that will be sponsored by the Monterey Peninsula Chamber of Commerce. City Manager Norgaard reported on her plan for staffing City Hall in light of the announced retirement of several City employees and announced a retirement lunch planned for Friday, February 17 at 12:00 p.m. She also discussed a meeting she held with the City Planner and grant writers who have provided a list of grant opportunities that may match the City’s needs. The Mayor and Chief of Police have also reviewed the list and provided useful input 6

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting She conveyed that the Successor Agency ROPS was approved by the County Oversight Board, that the City’s newly hired IT expert, Mr. Atila, successfully upgraded the email system for City Hall to move them off the outdated server system. In addition, she reported out on the Housing Element kickoff meeting, along with a meeting held with the City, DBO 30, CDFW and the land manager for the South of Tioga habitat regarding the establishment of the South of Tioga habitat. She also announced that the sidewalks on the new Morgans way are nearing completion, and that the developer will begin improvements on the east side of California Avenue next. There will a full closure of California Avenue for about 2 weeks and staff is working closely with Silcon Construction to ensure that proper notice is given to businesses and residents in advance of that closure. Furthermore, Ms. Norgaard reported that the Calabrese Park construction will be approximately 12 weeks out due to delays involving the availability of playground equipment, and that the City Engineer is planning a preconstruction meeting for the parties involved on the construction of the West Bay platform over the next 3 weeks. 4A. Update by Interim City Attorney Adam Lindgren on New Laws for 2023 Interim City Attorney Adam Lindgren provided an update to the Council regarding several new laws such as AB 2011 related to Affordable Housing and the meeting of certain criteria; AB 2234 Permit Streamlining and local agency requirements for the approval or denial of postentitlement phase permits; SB 6 that deems housing development projects as an allowable use on commercial parcels as long as certain conditions are met; SB 897 related to accessory dwelling units; SB 1439 which extends campaign contributions to elected officials prohibiting them from accepting, soliciting, or directing a contribution a contribution of $250 or more from any person who had an application for a license or permit; SB 1186 that prohibits cities from adopting or enforcing laws that prohibit the delivery of medicinal cannabis; AB 1406 requiring public safety agencies to carry an electroshock device; and lastly AB 2449 related to attendance of remote meetings of the legislative body for either a maximum of three consecutive months or 20% of the regular meetings within a calendar year. AGENDA ITEM 5, COMMUNICATIONS 6:15 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:15 P.M. Floor closed to Public Comment. AGENDA ITEM 6, CONSENT CALENDAR 6A. There was no discussion of the January 17, 2023 Minutes. 6B. There was no discussion of the City/Successor Agency Monthly Financial Statements, December 2022. 7

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting 6C. There was no discussion of the City Resolution authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period of February 8, 2023 through February 28, 2023 pursuant to AB 361 and Ralph M. Brown Act Provisions. 6:18 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 6:18 P.M. Floor closed to Public Comment. 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, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried. AGENDA ITEM 7, CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar. AGENDA ITEM 8, PRESENTATIONS 8A. Presentation by the Monterey County Convention and Visitors Bureau regarding the Monterey County Tourism Improvement District {5 minutes } 1) Discussion by Council and Direction to Staff regarding renewal of the Monterey County Tourism Improvement District Rob O'Keefe, President and CEO of the Monterey Convention and Visitor Bureau (MCCVB) presented the vision and mission of MCCVB, reported on the jurisdiction investment partnership benefits related to the Monterey County Tourism Improvement District (MCTID), Sand City's web traffic, social media highlights, interactive digital advertising, and the Tourism Improvement District (TID) assessment rates in Monterey County. He reported on the district's ten-year term contract, assessment rates per occupied room, and the MCTID renewal timeline estimate. Jennifer Johnson, Vice President of Operations added that partner jurisdictions and businesses have the opportunity to be promoted by MCCVB through various social media outlets. There was Council discussion regarding the rate assessment, whether it would benefit the City, and the costs associated with participation in the district. Council Member Hawthorne suggested that it would be prudent to wait until the hotel is operable, view how it operates, and also mentioned the prematurity of adding an additional tax. Council Member Sofer expressed her gratitude for all that MCCVB has done in the past to promote Sand City. 8

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting Mr. O'Keefe presented several options such as remaining at the annual $2,000 a year membership, consider formalizing an agreement when the lodging property is up and running, proposed a jurisdiction partnership investment based on 3% of projected revenue, and/or bring it all together at some point in the future. Council Member Hawthorne suggested that the City Manager, City Attorney, speak with Mr. O'Keefe and bring back the results of the discussion to a future meeting. 6:58 P.M. Floor opened for Public Comment. Sand City resident Luke Kilpatrick commented that as an STR owner who pays a 12% TOT, that it would be great to be a part of the district. Terry Owens, Board Chair of MCCVB commented on the benefits of participating in the MCTID and their ability to promote businesses. 7:09 P.M. Floor closed to Public Comment. Staff was directed to meet with the South of Tioga developer, Mr. Kilpatrick, and to bring the item back to the Council at the February 21, 2023 Council Meeting. 8B. Presentation and Consideration of the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditors Report by Maira Reid and Mike Nolan 1) Approval of City RESOLUTION Accepting the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditor's Report Mike Nolan of CliftonLarsonAllen, LLP reported on the Governmental Accounting Standards Board issuance of the GASB 87 statement pertaining to leases and how the desalination payments are reflected on the balance sheet as accounts receivable. He noted the Financial Highlights that reported assets of the City exceeding its liabilities at the close of the year ended June 30, 2022 by $31 million; however, $10 million is a net investment in capital assets and $10 million is a noncurrent receivable due from the Successor Agency. The City's total net position increased by $2.3 million, with the net change in fund balances reporting an increase of $1.6 million. He concluded that only one adjustment was made, no difficulties were encountered during the audit process, and that there were no weaknesses or significant deficiencies noted. Mr. Nolan thanked Ms. Lazzarino and staff, and wished her well in her future retirement. Mayor Carbone commented on the Gann Limit. City Attorney Norgaard added that the financial report was amended and should be noted in the motion for approval. 7:20 P.M. Floor opened for Public Comment. 9

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting There were no comments from the Public in person, via writing or through telecommunications. 7:20 P.M. Floor closed to Public Comment. Motion to approve the City Resolution as amended, accepting the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditor's Report was made by Council Member Hawthorne, seconded by Council Member Sofer. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried. AGENDA ITEM 9, PUBLIC HEARING 9A. Consideration of City RESOLUTION to Amend Conditional Use Permit 630 Authorizing Design Change of Exterior Wall and Removal of Upper-Level Deck at 1880 Park Avenue {this application has been withdrawn; no action required by the City Council} There was no discussion regarding the resolution to amend conditional use permit 630 as the item was withdrawn at the request of the applicant. AGENDA ITEM 10, NEW BUSINESS 10A. Consideration and Approval of City RESOLUTION Authorizing Amendment #1 to the Professional Service Agreement with Harris & Associates in the amount of $360,000 and Extending the Contract Term for One Year to end June 30, 2024 City Manager Norgaard reported that Mr. Gomez has been the City Engineer since 2015, that the current fiscal year 21-22 contract has reflected an over run due to the increase of several City projects, and that the staff report depicts various areas of work performed. She explained that the resolution would transfer $160,000 for City Engineer services through the end of June 2023, and allocate $200,000 for fiscal year 23-24, and that approximately $120,000 of past expenses were considered as reimbursable costs. Mr. Gomez commented that he has served as the City Engineer since 2015 and has a great working relationship with City Staff and pointed out the list of projects performed on pages 115-116 of the agenda packet which includes the West End Stormwater Improvement project, South of Tioga Development, West Bay Improvement, and sewer upgrade to Ortiz Avenue. 7:20 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 7:20 P.M. Floor closed to Public Comment. 10

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting Motion to approve the City Resolution, as amended, to reflect the correct dollar amount, authorizing Amendment #1 to the Professional Service Agreement with Harris & Associates in the amount of $360,000 and Extending the Contract Term for One Year to end June 30, 2024 was made by Council Member Hawthorne, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried 10B. Consideration and Approval of City RESOLUTION Approving a First Amendment to the Building Services Agreement with 4Leaf, Inc. and Authorizing the City Manager to Execute the Amendment City Manager Norgaard reported that John Kuehl has been performing building services for the City since 2020 and that the original term of the contract expired on January 2023. If Council desires to continue building services with 4Leaf, Inc., the contract would require an amendment to extend the term to June 30, 2025, and if approved would allocate an annual amount of $100,000 for future building services for fiscal years 2023-2024 and 2024-2025 for a total of $200,000. 7:37 P.M. Floor opened for Public Comment. There were no comments from the Public in person, via writing or through telecommunications. 7:37 P.M. Floor closed to Public Comment. Motion to approve the City Resolution approving a First Amendment to the Building Services Agreement with 4Leaf, Inc. and authorizing the City Manager to Execute the Amendment was made by Council Member Sofer, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried. 10C. Approval of City RESOLUTION Approving a Service Agreement Amendment with EMC Planning Group, Inc. for Professional Services for the Remainder of Fiscal Year 2022-2023 at a cost not to exceed $55,000 City Planner Pooler reported that the current contract with EMC Planning Group would require an amendment to increase the dollar amount for general planning related services due to his pending retirement. He reported on the City's history involving EMC, and PMC planning groups, and recommends the contract with EMC be amended to add an additional $65,000 for the remainder of the fiscal year. 7:41 P.M. Floor opened for Public Comment. Sand City resident Luke Kilpatrick thanked Mr. Pooler for all the work he has done and is hopeful that the City will be left in good hands. 11

____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 02.07.2023 Regular Meeting Michael Groves, Senior Principal of EMC Planning Group commented that he started as a land planning company in Monterey 40 years ago, his heart has been with Sand City, and desires to see it grow and prosper. He added that he worked with the former Mayor Pendergrass when Sand City did not have a general plan or coastal code. 7:47 P.M. Floor closed to Public Comment. Motion to approve the City Resolution approving a Service Agreement Amendment with EMC Planning Group, Inc. for Professional Services for the Remainder of Fiscal Year 2022-2023 at a cost not to exceed $65,000 was made by Council Member Hawthorne, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried. 10D. Comments by Council Members on Items of Interest to Sand City There were no comments by the Council. 10E. Upcoming Events/Meetings Mayor Carbone announced the ribbon cutting event for Disaster Kleen-up Specialist recognizing their 40th Anniversary in Sand City. AGENDA ITEM 11, CLOSED SESSION The Mayor announced that there will be no closed session held. AGENDA ITEM 12, ADJOURNMENT There was consensus of the Council to adjourn the meeting at 7:51 p.m. to the next regularly scheduled meeting on Tuesday, February 21, 2023 at 5:30 p.m. _______________________________ Connie Horca, City Clerk 12

AGENDA ITEM 6B. Approval of Successor Agency RESOLUTION Authorizing the Successor Agency Executive Director to Execute a Professional Services Agreement with RSG, Inc. for Continuing Disclosure and Dissemination Agent Services 13

City of Sand City Successor Agency STAFF REPORT TO: HONORABLE SA CHAIR AND AGENCY MEMBERS FROM: VIBEKE NORGAARD, SA EXECUTIVE DIRECTOR SUBJECT: RSG FINANCIAL CONSULTING FOR ANNUAL BOND DISCLOSURE REPORTS DATE: FEBRUARY 13, 2023 FOR: FEBRUARY 21, 2023 COUNCIL MEETING _______________________________________________________________________ Discussion: On November 15, 2022, the Sand City Successor Agency executed a contract with RSG, Inc. for the preparation of the Recognized Obligation Payment Schedule (ROPS) and Prior Period Adjustment (PPA). On February 10, 2023, Suzy Kim, CalBRE Corporate Broker for RSG submitted a proposal for Continuing Bond Disclosure and Dissemination Agent services for the former Sand City Redevelopment Agency 2008 Series B Taxable Tax Allocation Bonds (2008B Bonds) attached as Exhibit A. The proposal covers a three (3) year reporting periods. The Agency’s reporting requirements are to complete and file on EMMA an annual disclosure report for the 2008B Bonds. RSG’s primary role would be to prepare the Annual Continuing Disclos