Sand City Council and Successor Agency Meeting - May 4, 2026
Sand City Council and Successor Agency Meeting - May 4, 2026
The Sand City Council and Successor Agency held a virtual and in-person meeting on May 4, 2026. Key topics included an update on retiree health care and pension plans, approval of a contract amendment for city engineering services, and adoption of the first budget amendment for fiscal year 2025-26. Public comments addressed hospital costs, PG&E representation, and electric vehicle policies.
Consent Calendar
- Regular meeting minutes of February 17, 2026 – Approved.
- Resolution authorizing the city manager to execute the 2026 911 service agreement – Approved.
- Resolution authorizing the city manager to enter a master funding agreement with the Transportation Agency of Monterey County for state transportation funds – Approved.
- Consideration and approval of the cancellation of the July 21, 2026 regularly scheduled city council meeting – Approved.
Public Comments & Testimony
- Brian Clark (resident on Ortiz St.) – Commented on the high cost of healthcare at Montage Hospital, citing a November 2025 state report that found Montage is the most expensive hospital in California (466% of Medicare costs) with quality of care often below state averages. Urged the city to ask Montage to reduce prices.
- Megan Range (new PG&E government relations representative) – Introduced herself and offered to be a local contact for the city.
- Brian Clark (second public comment) – During the budget amendment public comment, advocated for a city policy to purchase electric vehicles (EVs) instead of gas-powered ones, noting that comparable EV trucks are cheaper over the vehicle lifetime and reduce CO2 emissions by about 50 tons. Urged the city to adopt an all-electric mandate.
Discussion Items
- Retiree Health Care and Pension Plan Update – Presented by Brayleen Ballard (actuary, Foster & Foster). The city provides two categories of retirement benefits: retiree health care (OPEB) and CalPERS pension. The OPEB plan is well over 100% funded, which is uncommon. The city's OPEB trust earned double-digit returns in the last two years, offsetting premium increases of up to 30%. The city reported a net OPEB asset instead of a liability. Pension liability decreased due to strong CalPERS investment performance. No negative actuarial surprises are anticipated. Councilmember Adams asked about investment management; Ballard clarified the city directs OPEB investments and CalPERS manages pension investments. No action required; report received.
- Resolution Amending Professional Services Agreement with Harrison Associates (Item 9A) – The city requested a $90,000 increase (from $230,000 to $320,000) in the current fiscal year contract for city engineering services, primarily to fund the Holly Street maintenance and rehabilitation project (100% design plans, bid documents) and cover increased development-related work. Approximately 25-30% of engineering costs are reimbursable through permit fees and developer agreements (e.g., Marriott Hotel, MST Surf Bus). Councilmembers questioned the breakdown (street project cost ~$78,000-$79,000; additional engineering ~$10,000). The resolution was adopted.
- Proposed Budget Amendment No. 1 for FY 2025-26 (Item 9B) – Staff presented a mid-year budget amendment increasing operating revenue by $502,219 (from sales tax, business license, TOT, investment income) and non-operating revenue by $659,182 (from grants and carryforwards). Operating expenditures increased by $152,000 (legal, newsletter, audit, public safety overtime) and non-operating expenditures by $898,000 (electric street sweeper, monument sign, portable housing project, safety barriers). The total amended budget is $14.9 million with an operating surplus of approximately $1.7 million. The budget committee reviewed and recommended approval. The resolution was adopted.
Key Outcomes
- Consent calendar approved unanimously (with Councilmember Blackwelder absent).
- Professional services agreement amendment with Harrison Associates approved unanimously (increase to $320,000 for FY 2025-26).
- Budget Amendment No. 1 for FY 2025-26 adopted unanimously.
- No other formal votes taken. Councilmembers provided reports: Mayor reported on MST and congressional appropriations for the bike trail; Councilmember Adams reported on CERT training and a tour of the Monterey One Water treatment facility; City Attorney noted upcoming League of California Cities conference.
Meeting Transcript
I don't see the city attorney yet. Oh, Mr. Bruce. No, you will not be able to do that. Welcome everyone to the San City Council and Successor Agency at the redevelopment agency. Council meeting of Tuesday, April 21st, 2026. The time is 532. This meeting is being held virtually and here in person. And it is compliant with Assembly Bill 2449 signed into law September 13, 2022, which amends government code section 5953 to provide authority for public agencies to continue to hold virtual meetings and remain in compliance for the Brown Act. With that, I will look over to our uh clerk and ask Carrie if she will call role at this time. Mayor Carbone here. Council Member Adams present. Councilmember Diaz? Here. Councilmember Scudder has that. Thank you. With that, I'd like to ask Councilmember Adams if she would lead us in the Pledge of Allegiance. And please be all welcome to join us. I budget of the United States of America and Stance. Thank you, Councilmember. With that, we'll uh move on to item three announcements by mayor, city attorney, and city manager. And um somewhere I have a uh the mayor's report uh if it is available for anyone who would like one on the table. I'll just uh touch on a couple of meetings uh over at MST during the month of April. We recognize um five MST employees of the month. Usually we have one, but it was five for April, and um those we recognize by resolution, Tim Minelli, Antonio Sanchez, Barry Cole, Hardy Colt, Omar Wilson, and Martin Mendoza, and as employees of the month for April for their outstanding contribution to MST and the entire community for uh the fire uh evacuation uh that had happened uh as many of you all heard or have who have been involved with here, even city staff here at the city. So um thank you all uh city staff and and community for polling together. But I did want to recognize them here at uh for council meeting uh during our Tamsi Rail meeting. Uh we were meeting uh regarding the Monterey uh branch line right away, and that was continued to a future meeting, which we'll later go to uh the entire uh ANSI board of directors at umward elections were held. Um we had uh um your new officers there or later Hernandez as chair. Uh he's with Monterey County Board of Supervisors, and I was uh called in as vice chair, uh which I have uh been running the meetings the last couple months uh because the chair does not been around. He's been doing he must be very busy. Uh with Amboard, there was uh going to be some fee changes. Um the board uh adopted some resolutions, um, one for their uh budget, and the other was they held a public hearing to review uh and provide directions for staff regarding um 2.2 fee increase uh based on CPI uh for in San Francisco Oakland and Hayward. There has been some new role changes to uh 301 uh with two categories proposed incident response. Um I think that was because of the battery fire in Moss Landing last year. Um, and also some changes uh addressing the refusations that expires uh with the language in Rule 300. Also, there was a five cent uh charge um that will be uh affecting agencies. It's uh a rate uh very it's five cents a month. Um it was raised five cents last year, and it has been raised again this year. Um see uh other than that. Uh I will start to attend the C Monterey meeting beginning tomorrow. And I have a copy of the agenda for you, Bibica on my desk. I'll get it to you, put it in box later. And uh so I'll report out on that next month. Also uh I attended some various conferences and uh there are various functions. There's some in the mayor's report, there are upcoming meetings. Um I want to kind of go through this kind of quick quickly, uh, some dates uh and dates for you there to um if anyone is interested in um uh San City's birthday, May 16th, and um some other we're we'll be holding the red dress reception here on the October 2nd. So there'll be an exhibit that'll be up in the council chambers format. That's my report. Thank you.
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