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06-10-2026 Special City Council Meeting
Published: Jun 10, 2026
City Council Approves Interim Funding Amidst Budget Challenges Following Measure A Failure
The City Council approved Resolution 6369, authorizing interim funding for fiscal year 2026-27 for two months (July 1st - August 31st) at fiscal year 25-26 adjusted budget levels. This interim funding is necessary due to the failure of Measure A (a parcel tax for fire and emergency medical services) and ongoing negotiations with CalFire regarding a new service contract and a required three-person staffing model for engines. The city must identify and implement significant service reductions to maintain a balanced budget. The interim period will allow staff and the council to evaluate reduction options and develop recommendations. Community engagement regarding proposed service changes is planned. Staff will return to the council in August with proposed budget recommendations and service reduction plans for fiscal year 26-27. A similar interim funding approach was used by Gonzales.
Council Reviews Community Events, Grant Successes, and Future Agenda Items
During the council meeting, various reports and updates were provided by council members and city staff. Mayor Velasquez attended the pride flag raising, a community meeting regarding the Sienna's (likely referring to Hosienda) apartments, a press event for new air purifiers at the community center, and career day at Gabalan Elementary School. She also attended the Salinas Valley Mayors and City Managers meeting and noted upcoming events for Relay for Life. Councilwoman Bolos reported attending a Rotary meeting, career day at Gabalon School, Little League closing ceremonies, a resident visit, a cemetery community cleanup, a meeting with Alliance Energy, a San Estanis School event, and safe routes to school projects. Council Member Caldera mentioned attending a Rotary meeting, the career day at Gabalan School, being MC for Little League, a resident visit, a cemetery cleanup, a museum meeting with Alliance Energy, and a San Estanis School event. Mayor Pro Tem Caldera also attended a revenue and taxation policy committee meeting, an immigration subcommittee meeting, an MST board meeting where the agency won an award, and the Main Street Middle School graduation. Mayor Velasquez also attended "Tacos with the Team", a soldier repatriation event, and an academic awards ceremony. City Manager Megan reported upcoming absences, commended the police department and public works, and highlighted several grant applications and awards, including a $1 million quick build application through TAMY, a $4.8 million Safe Streets for All application, an ATP grant, safer funding and assistance to firefighters grants, and a $310,000 Sustainable CALR grant. She also mentioned a meeting with the historical society and upcoming "Music in the Park" and farmers market events. Future agenda items discussed included updates on communication boards, Relay for Life banners, potential collaboration with Alliance Energy, and the 250th city anniversary.
City Council Approves 3.4% Garbage Rate Increase for FY 2026-27
The City Council approved Resolution 6368, which approves garbage collection rates for fiscal year 2026-27, with an effective date of July 1, 2026. This resolution implements an annual rate adjustment based on the Consumer Price Index (CPI) as per the exclusive franchise agreement with Tri City's Disposal and Recycling Services. The proposed rates include a CPI-based increase averaging 3.4% or approximately $1.43 per month for the average residential customer. The rate adjustment covers service fees, solid waste authority fees for landfill processing and diversion programs, and the city's franchise fee. The agreement with Tri City's Disposal and Recycling Services is valid through June 30, 2035, with two optional 5-year extensions. Council members sought to clarify the CPI increase for residents, explaining it is a contractual adjustment due to rising costs of labor, fuel, and other operational expenses, and that it is applied only to garbage rates, not the entire utility bill.
City Council Approves Deferred Impact Fee Agreement for New Marketplace Development
The City Council authorized the City Manager and City Attorney to negotiate, prepare, and execute a deferred development impact fee agreement with Wood Investment Companies, Inc. (Resolution 6370). Wood Investments plans to develop a project at the Marketplace, specifically at 223 Nestles Road, between Grocery Outlet and Tractor Supply. The company requested a deferral of development impact fees, estimated at $173,000, to facilitate the project's financial viability in the current economic climate. Under the proposed agreement, instead of paying all fees upfront before receiving a certificate of occupancy, Wood Investments will be allowed to make monthly payments over five years. The interest rate for the deferral will be the lower of the Local Agency Investment Fund rate or 3%. The first payment would commence upon issuance of the certificate of occupancy, triggering a five-year repayment term. This incentivizes the attraction of larger retail companies like Ross Stores, which is expected to occupy the new development, thereby enhancing local services, creating jobs, and activating the Marketplace area. The project aligns with the city's goal to maximize the use of the Marketplace.
City Council Authorizes Formal Response Opposing Forced Sewer Consolidation for Hosienda Apartments
The City Council considered Resolution 6376, authorizing the submission of a formal response regarding the proposed forced sewer consolidation project for the Hosienda Apartments. The Central Coast Regional Water Quality Control Board initiated this consolidation process. The city's proposed response letter, drafted with input from council members, emphasizes concerns that the Hosienda Apartments are not within the city's jurisdiction (located in unincorporated Monterey County). The letter advocates for addressing not only wastewater infrastructure but also the long-standing substandard housing and habitability conditions at the property. It calls for a coordinated multi-agency approach and assesses alternative sewer connection options, finding the acquisition and redevelopment by Eden Housing connected to the Camp Fora system to be the most viable long-term solution. A force main to force main connection is deemed not viable. The letter also requests the water board evaluate funding programs for redevelopment of the apartments, not just infrastructure. The deadline for written comments is June 15th. The council expressed concerns about the imposition of the consolidation and the potential for litigation if they do not comply.
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