Pacific Grove City Council Special Study Session and Regular Meeting - April 15, 2026

The City Council held a special study session at 5:00 PM to receive a presentation from Monterey One Water on the Coral Street Pump Station electrical relocation project, followed by a regular meeting at 6:01 PM. The regular meeting included decisions on a housing element update, a concession lease for the golf course restaurant, a code of conduct policy, and direction on filling a vacant council seat. The council also heard a presentation from Montage Health's CEO.

Special Study Session: Coral Street Pump Station Electrical Relocation

• Matthew Thompson, Director of Engineering at Monterey One Water, presented the project background, explaining that the pump station serves an area generating approximately 500,000 gallons per day and is vulnerable to storm surge flooding. The preferred site is the northeast corner of the municipal golf course, selected after city direction in March 2024. The project includes a small electrical building, emergency generator, and underground duct bank (approximately 1,300 feet).
• Thompson noted that 24 comment letters were received on the environmental document (Mitigated Negative Declaration), primarily from neighbors concerned about visual impacts, noise, light pollution, and traffic. Three alternative designs were presented: a lowered roof above-ground building, a partial subterranean vault, and a fully subterranean vault. The fully subterranean option is constrained by bedrock about 10 feet below ground and shallow groundwater.
• Public comment was largely opposed to the golf course site. Speakers cited visual impacts, construction disruption, environmental harm to wildlife (great horned owls, herons, deer, etc.), property value loss, and inadequate notification (only 5 homeowners notified via small signs). Several speakers advocated returning to the Esplanade Park site, noting it is $5 million less expensive (approximately $5.7 million vs. over $10 million for the golf course). A legal concern was raised: the golf course is zoned open space, which may prohibit public utility structures even with a use permit.
• Council members expressed appreciation for public input, noted questions about alternatives analysis, and underscored the need for better outreach. No decision was made; the session was informational only.

Consent Calendar

• The council approved the consent agenda (4-0) with no items pulled.

Public Comments & Testimony (Regular Meeting)

• Jane Haynes and others commented on the cannabis license process, urging that all applicants receive equal chances in the lottery rather than one applicant having eight chances. They warned of potential litigation and costs.
• Carl Lindstrom asked whether the code of conduct item related to an existing investigation.
• Colleen Ingram urged adoption of a code of conduct with real transparency, graduated penalties, and mandatory public reporting of settlements.
• Inga Lawrence opposed the code of conduct, saying it was unnecessary and could be weaponized.

Discussion Items

11A – Housing Element Update (Zoning Code Amendments)

• John Biggs (Community Development Director) presented amendments required by the State Department of Housing and Community Development (HCD) to establish minimum densities of 20 dwelling units per acre in R3, C1, and C2 zones. The amendments apply to multifamily units only, preserving single-family development. An addendum to the certified Environmental Impact Report was provided. The Planning Commission recommended approval in March 2026.
• Councilmembers supported the update. The ordinance was adopted (5-0-1, Councilmember Rao absent).

11B – Concession Lease Agreement with Fortunate Fork LLC (Point Pinos Grill)

• Nick Sena (staff) summarized the RFP process: released December 15, 2025; two proposals received; Fortunate Fork LLC was recommended based on qualifications and vision. The lease is for five years with two five-year options. Rent is 7% of monthly gross sales, capped at $13,500 per month (growing 3% annually). Operations target mid-June to early July 2026.
• Public comment (Paul Dyson) supported the lease but raised concerns about a low security deposit ($11,000) and low liability insurance limits ($1M/$2M).
• Council approved the first reading of the ordinance (5-0-1).

12A – Code of Conduct Policy (OO-25)

• Mayor Pro Tem Joe Emilio presented a “code of conduct light” based on previous efforts. It includes norms for respectful meetings, working for common good, sharing information, praising in public/criticizing in private, and striving for consensus. A censure provision was included (majority vote of council as a last resort).
• Council discussion: Councilmember Garfield suggested separating boards/commissions from council, clarifying ambiguous language, and adding graduated steps before censure. Councilmember McDonald opposed the censure provision, arguing it could create division and that the public is responsible for accountability via elections. Councilmember Paduri supported the policy as a framework that can be refined later.
• A motion to approve the recommended action (adopt the policy) was made and seconded. A friendly amendment to remove the censure section was not accepted. A substitute motion to accept temporarily with staff work on language was withdrawn. The original motion carried (4-1, with Councilmember McDonald voting no; Councilmember Rao absent).

13A – Process for Filling Vacant Council Seat

• City Attorney Lorca noted the charter requires appointment to fill the vacancy left by Councilmember Walkingstick. The seat is open to all city residents regardless of district.
• Mayor Smith proposed discussing the process at the May 6, 2026 meeting, with a timeline for applications and appointment in June. Councilmember Paduri suggested leaving the seat vacant until November but acknowledged the mandatory duty. Councilmembers agreed to meet on May 6 to set the process.
• Motion to direct staff to schedule a discussion on May 6 passed (5-0-1).

14A – Montage Health Presentation

• Dr. McDermott, CEO, introduced himself and provided updates: Montage Medical Group has 120+ providers, providing 230,000 ambulatory visits in 2025; MOGO urgent care saw 50,000 visits; the system operates at 20+ locations. A new thrombectomy program for stroke care (first in Monterey County) was launched via partnership with UCSF. Montage invested over $1 million in scholarships in 2025 and has a home loan assistance program for staff. Dr. McDermott expressed commitment to community partnership.
• Council welcomed the presentation and discussed potential collaboration, including urgent care expansion. No action was taken.

Key Outcomes

• Coral Street Pump Station Study Session: No decisions; council will consider input.
• Housing Element Zoning Amendments: Ordinance adopted (5-0-1).
• Concession Lease (Fortunate Fork LLC): First reading approved (5-0-1); second reading scheduled May 6.
• Code of Conduct Policy (OO-25): Adopted (4-1).
• Vacant Council Seat: Council will discuss the appointment process on May 6, 2026.
• Montage Health Presentation: Received; no action.