Sand City Council Meeting – June 3, 2026: Development Agreement, Budget, and Fleet Electrification
Sand City Council Meeting – June 3, 2026
This meeting began with a joint special session of the Sand City Council and Successor Agency, followed by the regular council meeting. Key actions included approval of a development agreement for the Monterey Bay Shores resort, adoption of the FY 2026-2027 budget, acceptance of a grant for an electric utility terrain vehicle, and receipt of informational reports on the Community Emergency Response Team (CERT) and city vacancies. Public comments addressed concerns about Flock cameras and support for the CERT program and the development project.
Public Comments & Testimony
- Pete Holger Angler (Sand City resident) expressed strong opposition to the city's Flock cameras, describing them as a “digital prison” and raising privacy concerns about continuous monitoring, AI scanning, and potential data sharing with third parties like Palantir. He asked how the cameras were approved and whether the city could exit the lease.
- Luke Kilpatrick (Sand City resident) spoke in support of the Flock cameras, noting their use in solving a theft of his campaign sign and their value for visitor counts (25,000 daily visitors vs. 300 residents). He urged the council to review camera settings to ensure data stays within the city ecosystem and is not shared with ICE or other outside entities.
- Pete Holger Angler also spoke in support of the CERT program, encouraging the city to promote it more broadly.
- Ed Gondor (applicant, New Dawn Equity Partners) spoke in favor of the development agreement, recounting the project's 33-year history and his regained full control. He noted the project's world-class resort status, estimated $650 million in hard costs, and expressed optimism for moving forward.
- Union representative (Local 646, Monterey County) requested the opportunity to meet with the developer to discuss hiring local workers with livable wages and benefits, emphasizing the need for fair treatment of construction workers.
- Luke Kilpatrick (also representing Surfrider) requested that the hotel examine the Ocean Friendly Hotels program to reduce environmental impact and avoid litigation.
Consent Calendar
- Items 5A through 5G were approved unanimously, except for Item 5F (MOU for CLETS supplemental coverage), which was pulled for separate consideration. The approved items included routine approvals and actions.
Discussion Items
- Item 6 – MOU with Monterey Police Department for CLETS Coverage: Chief David Honda presented a staff report on a memorandum of understanding with the Monterey Police Department to provide supplemental coverage for the California Law Enforcement Telecommunications System (CLETS) during off-hours. The MOU covers data entry for state-mandated timelines (e.g., missing persons, stolen vehicles). The city will pay $2,500 per batch of up to 30 entries, estimated at $2,500 annually based on past usage (average 15 entries per year). Council discussed the importance of immediate entry for missing persons under Penal Code 14211(e). The motion to authorize the city manager to enter the MOU passed unanimously.
- Item 7 – CERT Program Informational Update: Justin Cooper (Monterey Fire Department) presented on the Community Emergency Response Team (CERT) program, which provides 24 hours of training in search and rescue, disaster medical operations, and fire extinguisher use. The program has trained 3,200 people regionally. CERT volunteers assist with firefighter rehab, missing person searches, traffic control, and storm response. Council members noted the program is voluntary and free. No action was taken; it was for informational purposes only.
- Item 8A – Development Agreement for Monterey Bay Shores Resort: Staff presented a development agreement (DA) between the city and New Dawn Equity Partners LLC to extend the vesting tentative map (expiring August 14, 2026) for a 39-acre resort project with 184 hotel rooms, 92 visitor-serving condos, 92 residential condos, and public beach access. The DA locks in existing land use rules for a seven-year term, with possible extensions. Public benefits include a $42,000 patrol vehicle contribution, establishment of a community facilities district (CFD), sand reuse for beach replenishment, local hiring efforts, and designation of the city as point of sale for construction materials. Council members discussed the CFD and sand reuse details. The first reading of the ordinance was approved unanimously (roll call 4-0), with the second reading scheduled for July 7, 2026.
- Item 8B – Appropriations Limit for FY 2026-2027: Finance Manager Jennifer Pope presented a resolution setting the city's appropriations limit at $20,281,930, with estimated tax revenue of $11,038,544, well under the limit. The resolution was approved unanimously.
- Item 8C – Vacancy Recruitment and Retention Report (AB 2561): Administrative Services Manager Audrey Craig reported that as of June 1, 2026, the city had one vacancy (a new police officer position approved December 2025, expected to be filled in July 2026). The 2025 retention rate was 100%. The report was received as informational.
- Item 9A – FY 2026-2027 Budget: Jennifer Pope presented a balanced budget of $18.8 million in revenue and expenditures, with a $2.1 million operating surplus. Major revenue sources: grants (34%), transaction and use tax (25%), sales tax (20%). Expenditures: public safety (24%), capital projects (35%). The budget includes two new FTE positions (police and public works). The resolution adopting the budget was approved unanimously.
- Item 9D – Grant for Electric Utility Terrain Vehicle (UTV): Chief Honda presented a grant from the Monterey Bay Air Resources District (MBARD) for $13,500 to replace the city's 2015 gas-powered UTV with a fully electric Polaris Ranger XP Kinetic (2024-2026 model). The total cost is up to $42,000, with the city covering the balance after grant reimbursement. The vehicle will be used for beach patrol, medical emergencies, and encampment cleanups. Council approved the grant acceptance and purchase authorization unanimously (with one abstention noted).
Key Outcomes
- Approved (4-0): First reading of ordinance approving development agreement with New Dawn Equity Partners for Monterey Bay Shores resort. Second reading set for July 7, 2026.
- Approved (unanimous): Resolution setting FY 2026-2027 appropriations limit at $20,281,930.
- Approved (unanimous): Resolution adopting FY 2026-2027 budget of $18.8 million.
- Approved (unanimous): Authorization for city manager to execute MOU with Monterey Police Department for CLETS supplemental coverage.
- Approved (unanimous): Acceptance of MBARD grant and purchase of electric UTV (not to exceed $42,000, offset by $13,500 grant).
- Received (informational): Vacancy recruitment and retention report (AB 2561).
- Received (informational): CERT program update.
- Note: The transcript dates the meeting as June 2, 2026, but the provided agenda date is June 3, 2026. This summary uses the date given in the instruction.
Meeting Transcript
This is a uh special council meeting. It's the joint Sand City Council and Successor Agency at the Redevelopment Agency. The time is 3 32. It's Tuesday, June 2nd, and this meeting is being held virtually and in person and is compliant with AB 2449, which was signed into law September 13, 2022, which amends the government code to hold virtual meetings and remain in compliance with the brown net. With that, um I'll ask Carrie. Thank you, Kerr. Council Member Adams present. Council member Diaz? Yeah. Council Member Studders. Mayor Carbum here. And Vice Mayor Black Welder absent. Thank you. And with that, we'll move on to communications at this time. Members of the public may address this City Council successor agency on any matters not appearing on this city council successor agency agenda at the same direct to three minutes. And in order that uh the clerk may identify uh the person making the public comment if they could come up to the Diaz or uh via Zoom, uh Carrie will let them in if you raise your hand and um uh we will let you in for public comments and once again on any items not on this agenda at this time items on the agenda. I'll open it up at that time uh for public. So with that public comment is open. And not see okay, no one we'll go ahead and close public comment and I will go ahead and move on to item three. This is closed session item. And uh with this item that we did have two items listed. Uh there was uh uh we are going to have a conference with real property negotiators pursuant to government code section 54956.8 uh property APN 011-501-014 city negotiators. Uh we will have um Anthony Amara here and um uh he will be uh stepping in for attorney Adam Lingren and negotiators negotiating parties will be new down equity partners LLC under negotiation price in terms of payments. Uh there is also another item. It is a public employee performance evaluation pursuant to government code section 54957, and this is title uh would be the city manager performance evaluation at this time. Uh I would like to continue uh that item um which is 3B uh as the city attorney is unable to be here today. Uh so uh Anthony, do I need a motion or a consensus? Um you don't need a motion to continue. Okay, so uh so we'll just take um public comment on that or any other one if you have a chance. Okay. So uh with that, we will continue that. So uh we did uh have enough time to cover both those items, uh, but we will have even more time to take a break after this item. Uh so with that, uh I will would like to ask open this up to public comment and ask if anyone would like to comment on the first item 3a, which is conference with real property negotiators. Um item 3a. So with that uh public comment is open. Not seeing anyone, we'll go ahead and close public comment and at this time I will excuse uh the public uh from this meeting. Uh we do have with us uh also who will be included in this closed session uh staff. We have uh we have uh two staff members so uh who are here and they are in the room. So with that, we'll if there's no one else. Okay. will excuse uh the public uh from this meeting uh we do have with us uh also who will be included in this closed session uh staff we have uh we have uh two staff members so uh who are here and they are in the room so with that we'll if there's no one else okay um well we are back in the open session and uh we'll have uh Anthony Amara report out any actions taken yeah the city council received updates from real property negotiators and took no reporter action okay thank you Anthony and with that uh we will go ahead and uh adjourn of this session we will uh we will uh take a break and then go back into the next regular meeting at 5 30 okay thank you everyone and good evening everyone and welcome to the CNC city council regular meeting of June 2nd the time is 530 and uh this meeting is being held virtually and um is compliant with assembly bill 2449 signed into law september 13th 2022 which uh ammands government code section 54953 to provide the authority to hold public meetings um uh virtually and still remain in the uh compliant with the brown name at this time i would like to uh ask uh carrie or city clerk if she will call role please mayor carbom here council member adams present council member dies here council member scutter vice mayor black holder absent thank you uh with that we do have a quorum and at this time if you would like to join me or us in the pledge of allegiance uh i will go ahead and live i pledge allegiance of the united states of america and to the republic for which it stands one meeting undervisible with liberty and just disparal okay and at this time um for the record uh we do our city manager is uh out today so in her stead we have anthony amara and um uh city staff here with us so who will uh help get us through this meeting um with that announcements by the mayor uh city attorney and city manager uh would Audrey Craig would you like to go ahead with sure announcement got a couple of announcements uh we are going for a grant uh um california ocean protection council grant we've decided to do a joint app with seaside uh just because they have a part of their the small parts of the ocean side that's in seaside but we're gonna do a joint application because we'll probably um it'd be more competitive for the grant we would probably receive more funds for the grant so that's one of the updates um the other thing the MSP surf project night work for electrical services at the intersection of playa and california is occurring through this week uh limited lane closures on California Avenue at the edgewater center to construct the busway entrance and in Fort Materials planned for 610 to 612 and that's gonna be from 7 a.m to four the city engineer and our police department will monitor this work engineering and PD are coordinating with MST to relocate the Fox system cameras and the 72 hour closure of Playa Avenue is planned for August 16th through August 19th. We are going to be working to execute an agreement with planet bids it's a cloud-based electronic procurement and bid management system that's used by government agencies and that'll streamline the purchasing and vendor processes and the system will help ensure the city receives competitive bids for any of the RPs that we're going to be going out for because we have several coming up um the street um M and R project maintenance and repair plans are being finalized and the project will bid in late June so that's huge with the construction contract considered for approval at the August 4th city council meeting. So look forward to that the PGE power poll issue last Thursday May 28th council member Diaz reported a loud pop and sparks from a power pool next to the monument on Contra Costa Street the city engineer contacted PGE and after investigation it was determined that a bird likely landed on a bird guard at the pole and was electrocuted sorry about that part uh this caused the equipment to break the loud pop and cut the power uh D sell D cell new intake wells uh the city will be meeting with the M on June 9th uh to discuss the proposed location of the new up so and that's all that I have okay thank you uh with that um I'll I will I gave my uh city report out at the past meeting for may of May I only attended one meeting since so uh every you've received that we could have So and that's all that I have. Thank you. I only attended one meeting since. So you've received that. I could have printed it out. But I did want to uh just bring uh some attention to a meeting in uh tomorrow in the city of uh Seaside, Wednesday, uh June 3rd at 6 p.m. at the community center at Sofer Field.
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