Sand City City Council Meeting - May 13, 2026

The Sand City City Council met on May 13, 2026, at 5:30 PM. Mayor Carbone presided with Councilmembers Adams, Diaz, and Scudder present. Vice Mayor Blackwell was absent. The meeting covered a consent calendar, a presentation from Montage Health, a public hearing for a conditional use permit, several resolutions on sea level rise adaptation, a city holiday name change, and a street maintenance project. The council also held a closed session and reported out on litigation settlement and property negotiations.

Consent Calendar

• Items 5A through 5E were approved unanimously without discussion or pull for separate consideration.

Public Comments & Testimony

• Brian Clark (resident) commented on the selection of EMC Planning Group for the general plan update, questioning why the high bidder was chosen over lower bids. He stated that EMC has an existing database and should have been the low bidder, expressing concern that bidding for city contracts appears to favor EMC.
• During the Montage Health presentation, Brian Clark also spoke critically of Community Hospital of the Monterey Peninsula (Chomp), citing a state panel that found Chomp to be among the most expensive hospitals in California, with drug charges at 300% of Salinas prices. He argued that the nonprofit designation does not translate to lower patient costs.
• For the street maintenance project, Brian Clark raised a practical concern about a proposed short one-way section on Holly Street, suggesting drivers might ignore it and that parallel parking might be more realistic.

Discussion Items

• Update on Montage Health – CEO Mike McDermott presented a one-year progress report, highlighting access improvements (230,000 ambulatory visits, 50,000 urgent care visits), a new stroke thrombectomy program with UCSF, $1 million in scholarships, a $15 million investment in a new nursing school at CSUMB, and a home loan assistance program for staff. Councilmembers thanked him and shared personal positive experiences with Chomp. McDermott responded to Clark’s criticism by noting that Chomp is a Healthgrades Top 250 hospital (top 5% nationally) and that price scrutiny relates to commercial payer mix.
• Conditional Use Permit – 351 Olympia Avenue (CUP 26-004) – Staff presented a request to allow an auto repair shop (suspension and brake work) within an existing warehouse. The project requires indoor-only operations, new landscaping, and sidewalk improvements. The applicant (William Hensley) attended via Zoom and requested an extension of the 180-day sidewalk completion deadline to 244 days. The council approved the modified condition. The vote was unanimous (4-0).
• Sea Level Rise Adaptation Grant (Item 9B) – Staff recommended authorizing the city manager to apply for $350,000 from the SB1 Sea Level Rise Adaptation Grant Program to fund a sea level rise adaptation study mandated by SB 272 (2023). The grant would fully cover consultant costs (Integral Consulting). Council approved the resolution unanimously (4-0).
• Holiday Name Change (Item 9C) – The council approved changing the March 31st holiday from Cesar Chavez Day to Farm Workers Appreciation Day and moving the observance to the last Monday of March. This aligns with recent state legislation and the Monterey County Board of Supervisors' decision. The resolution passed unanimously (4-0).
• Street Maintenance & Rehabilitation Project (Item 9D) – Leon Gomez presented the FY 25/26 project based on a 70% design. The base bid includes Holly Street (one-way conversion to add diagonal parking), Contra Costa Street, and the City Hall parking lot (with sewer line replacement). Additive alternates (Playa and California Avenues) depend on funding. Total budgeted for FY25/26 is $762,000. Council discussed adding rapid flashing beacons at Contra Costa and artistic crosswalks; staff noted they will evaluate safety requirements. The resolution to finalize the project and authorize the city manager to proceed with bidding was approved unanimously (4-0).
• Councilmember Comments – Councilmember Diaz provided an update on Community Emergency Response Team (CERT) training, encouraging residents to attend future classes. The city attorney advised limiting remarks to brief comments per the Brown Act, and the mayor indicated the topic will be agendized later with a full presentation.

Key Outcomes

• CUP Approval: Conditional use permit for auto repair shop at 351 Olympia Avenue approved with amended condition requiring sidewalk completion within 244 days of final occupancy (vote 4-0).
• Grant Application: Authorized city manager to apply for and accept $350,000 from SB1 Sea Level Rise Adaptation Grant (vote 4-0).
• Holiday Change: Approved renaming March 31 holiday to Farm Workers Appreciation Day and moving it to the last Monday of March (vote 4-0).
• Street Project: Approved resolution directing staff to finalize design and proceed with construction bidding; final contract award will return to council (vote 4-0).
• Closed Session Report Out: Council authorized the mayor to enter a settlement agreement with adjacent car dealerships to resolve anticipated litigation. Council also expressed support for the city manager to continue negotiations with the City of Seaside for a use agreement and easement regarding the multi-use trail, and to continue work on the rail-and-trail corridor.