Agenda packet — Carmel-by-the-Sea City Council, August 2, 2022 (part 2 of 3)

All
Elderly Population and People with
Disabilities
Number of
households with
backup power
established Long-term (by 2032)
Police & Fire / Public
Works $$$
Adapted from the Southern California Adaptation Planning Guide, Appendix B Matrix of Adaptation Strategies and Actions
Policy 1.3. Minimize health impacts of climate change. Adapted from the Southern California Adaptation Planning Guide, Appendix F - General Plan and Local Coastal Plan Model Policies
Adapted from the Southern California Adaptation Planning Guide, Appendix F - General Plan and Local Coastal Plan Model Policies (City of Placentia policy) Passive House Principles
Goal 2. A Natural Environment Resilient to Climate Hazards Policy 2.1. Protect and restore climate-vulnerable habitat and ecosystems. Adapted from the Southern California Adaptation Planning Guide, Appendix B Matrix of Adaptation Strategies and Actions
Action 2.1.7. Carmel Cove Sand Supply. Partner with local researchers (e.g., California State University Monterey Bay) or other sources to conduct Carmel Cove sand supply dynamics analysis.

Sea Level Rise Carmel Beach
Carmel Cove sand
supply dynamics
analysis completed Long-term (by 2032)
Community Planning
& Building and Public
Works $$ Carmel-by-the-Sea Vulnerability Assessment (July 2021) Goal 3. Resilient Infrastructure and Built Environment
Policy 3.1. Support greater resilience, redundancy, and reliability of local and regional infrastructure and the built environment. Adapted from the Southern California Adaptation Planning Guide, Appendix B Matrix of Adaptation Strategies and Actions
Action 3.1.3. Reduce Stormwater Runoff. Reduce stormwater runoff through implementation of stormwater diversion and infiltration projects that reduce pollution problems caused by more frequent and intense storms and more extreme flooding events.

Stronger Storms Storm Drain System, Carmel Beach
Stormwater diversion
project implemented Long-term (by 2032) Public Works $$$ Suggested by Climate Committee Members Policy 3.2. Incorporate climate change adaptation into relevant plans and standards. Adapted from the Southern California Adaptation Planning Guide, Appendix B Matrix of Adaptation Strategies and Actions
Action 3.2.4. Update Shoreline Management Plan. Update Shoreline Management Plan and Local Coastal Program based on results of Sea-level Rise Vulnerability Study.

Sea Level Rise Carmel Beach
Shoreline
Management Plan
and Local Coastal
Program updated Long-term (by 2032)
Community Planning
& Building and Public
Works $$ Carmel-by-the-Sea Vulnerability Assessment (July 2021) Community Planning
& Building
$$
Action 1.3.5. Improve Resilience in Existing Building Stock. Develop a program for identifying funding and incentives to weatherize residential and commercial buildings that addresses severe weather protection, energy efficiency, indoor air quality improvements, and other housing improvements. Include an outreach campaign as part of this program to advertise the benefits of weatherizing and All Elderly Population and People with
Disabilities, Residents
Nubmer of retrofitted
structures
Long-term (by 2032)
Attachment 2
Appendix E
Implementation Case
Studies
Attachment 2
Implementation Case Studies
A-1
Implementation Case Studies
This appendix illustrates adaptation examples that align with a selection of adaptation actions and show how adaptation policies and actions can be effectively implemented.

West Oakland Resilience Hubs
Location: West Oakland, CA
The City of Oakland identified three facilities
owned and operated by the City that were in
need of physical infrastructure upgrades which
could serve as climate resilience hubs: West
Oakland Senior Center, West Oakland Branch
of the Oakland Public Library, and the
DeFremery Recreation Center and Park. The
facilities were upgraded to offer the following
services: cooling, warming, sanitation,
communication, transportation, medical area,
filtered indoor spaces during forest fires and
high air pollution times, and renewable and
non-polluting energy sources, including solar
energy, and back-up power to run critical
operations when the power grid is down. The upgrades involved partnerships between the City, PG&E, and the Bay Area Air Quality Management District. Design phase costs are estimated to be $500,000 and initial known implementation estimates amount to approximately $1.6 million.

Funding was provided by a combination of stakeholder financing, funding through California Air Resources Board, and the City of Oaklands Capital Improvement Plan.

Related Action 1.2.1. Establish a Resilience Hub. Formally designate a physical resilience hub, such as the Youth Center or Public Library, and make it available during extreme heat events, poor air quality, severe weather events, and other highly hazardous conditions for use by the community.

Provide the following essential resources in the resilience hub(s): health programming and resources, food, refrigeration, charging stations, basic medical supplies, and other emergency supplies.

Electrified heating and cooling paired with backup power sources like battery storage provides redundancy and continues services in the event of a power outage. Designate a virtual resilience hub on the City website where residents can access information about the physical resilience hub and resilience efforts.

Photo: West Oakland Resilience Hub Planning Meeting
https://norcalresilience.org/case-study-west-oaklandresiliency-hub/ Attachment 2
City of Carmel-by-the-Sea
Climate Adaptation Plan
A-2
Berkeley Existing Buildings Electrification Strategy
Location: Berkeley, CA
Berkeley’s Existing Buildings Electrification
Strategy analyzes the existing building stock of
the City, with a focus on low-rise residential, and
identifies a pathway for an equitable transition to
all-electric buildings. To model electrification
costs for Berkeley’s existing homes, the project
team estimated Berkeley’s building stock, using
Alameda County Assessor data, to better
understand the distribution of building types and
existing conditions. The analysis was followed by
research into electrification measures and costs
and the data was used to model different retrofit
packages to identify the most cost-effective
options. To ensure Berkeley’s pathway to allelectric buildings avoids negative impacts to equity and improves current conditions, the City
developed an Equity Framework called Equity
Guardrails with stakeholder and community
feedback. The Equity Guardrails reflected
priorities and concerns of marginalized communities, highlighting the need to protect people against potential unintended consequences of building electrification like gentrification and displacement. The City developed four equity guardrails that each potential policy was assessed against and will be used in the future as new policies are developed. The four equity guardrails are:
▪ Access to health and safety benefits
▪ Access to economic benefits
▪ Maximize ease of installation
▪ Promote housing affordability & anti-displacement.

Related Action 1.3.4. Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. Perform an electrification feasibility study/existing building analysis in order to understand the potential for, and associated costs of, electrification retrofitting, including heat pumps, along with on-site energy generation and battery storage to provide a more resilient back-up power supply. Establish a plan for reducing or eliminating natural gas from existing buildings, potentially through a reach code, and building resilience to potential electrical grid shutoffs.

Related Action 1.2.2. Limit the Impacts of Climate Change on the Most Vulnerable Populations.

Develop a framework to define equity in Carmel-by-the-Sea and develop adaptation approaches that are equitably implemented
Photo: Existing Buildings Electrification Strategy
https://www.cityofberkeley.info/uploadedFiles/Planning_and _Development/Level_3_-
_Energy_and_Sustainable_Development/Draft_Berkeley_E
xisting_Bldg_Electrification_Strategy_20210415.pdf
Attachment 2
Implementation Case Studies
A-3
2500 R Midtown Development
Location: Sacramento, CA
Sacramento Municipal Utility District (SMUD)
partnered with Sunverge Energy, and Pacific
Housing to create a net zero energy (ZNE)
community within a single-family home
affordable housing development.1 The
incorporation of solar PV as well as battery
storage demonstrates the feasibility of
microgrid level projects in using alternative
energy while still ensuring power reliability.

The project was funding through the US
Department of Energy ARRA, Solar SMART
program, California SGIP incentives, and
private capital leveraging special financial
structures that take advantage of Pacific
Housing’s non-profit status.

Related Action 1.3.2. Initiate a Heat Pump
Retrofit Program. Create a program to help fund property owners to convert HVAC units to heat pumps, which provide water heating and space heating in addition to cooling and can improve indoor air quality and community adaptation to extreme heat. Include a microgrid energy storage component to increase power reliability.

23. 2018. Available: <https://www.energy.ca.gov/sites/default/files/2021-06/CEC-500-2018-022.pdf>. Accessed February 4, 2022 Photo: Rooftop solar panels at the 2500 R Street Community Development. Sunverge Energy
https://cdn.cleanegroup.org/wp-content/uploads/2500R-solaron-roof-900x675.jpeg Attachment 2
City of Carmel-by-the-Sea
Climate Adaptation Plan
A-4
Marina Dune Preserve Restoration
Location: Marina, CA
The Marina Dunes encompass part of the Monterey
Bay dune complex spanning Moss Landing to
Seaside California. This dune restoration project
was a collaborative effort between project partners
of the Monterey Peninsula Regional Parks District,
Return of the Natives, Burleson Consulting
Inc/Terracon, and Native Solutions.2 Restoration
activities included control and eradication of nonnative species, sand stabilization, and re-vegetation efforts. Re-vegetation of native species included
the collection of site-specific seed, broadcast
seeding, hydroseeding, and the out planting of
propagated seedlings. Restoration through the
eradication of non-natives and re-vegetation of native species increases dune resilience to climate stress.3 Structural improvement activities included delineation of pathways and fences to protect restoration areas as well as signage to educate the community on dune habitat restoration.

Related Action 2.1.4. Increase Resilience of the North Dunes. Continue to fund maintenance and monitoring at the North Dunes to determine how the changing climate will affect dune habitats.

Implement enhancement efforts to improve resilience of the North Dunes. 2California Coastal Dune Science Network. Marina Dune Preserve Restoration. 2021. Available:
<https://www.resilientcoastlines.com/projects/marina-dune-preserve-restoration>. Accessed February 4, 2022 3 National Oceanic and Atmospheric Administration (NOAA). Office for Coastal Management. Peer-to-Peer Case Study: Dune Restoration Increases Flood Protection and Access for Community. Available: < https://coast.noaa.gov/digitalcoast/training/cardiff-state-beach.html >. Accessed February 8, 2022.

Photo: Monterey Peninsula Regional Park District,
Marina Dunes Preserve https://www.mprpd.org/marinadunes-preserve Attachment 2
Implementation Case Studies
A-5
San Mateo County Sustainable Green Streets and Parking Lots Design Guidebook
Location: San Mateo County, CA
The county of San Mateo created a
guidebook to address green infrastructure
and stormwater management.4 With a
specific focus on green streets and parking
lots, the San Mateo County Sustainable
Green Streets and Parking Lots Design
Guidebook was developed with input
from the City/County Association of
Governments of San Mateo County, the
Program’s New Development
Subcommittee, and the City/County
Engineers’ Association of San Mateo
County. The recommended actions
include site layout strategies,
stormwater facility strategies, pervious
pavements, and urban tree canopy additions.5 The final chapter of the guidebook is dedicated to implementation considerations. The topics covered include reducing project costs, changing municipal code/policy, and public education and outreach. Additionally, there are four example projects listed to demonstrate feasibility. The main takeaway for implementation was to bundle stormwater management solutions with general street improvements. Funding was sourced by vehicle registration fees collected in San Mateo County for congestion and stormwater management authorized by California Assembly Bill 1546 and California Senate Bill 348.

Related Action 3.1.2. Increase Green Infrastructure. Modify Capital Improvement Program (CIP) project design to consistently evaluate the potential for green infrastructure to be incorporated in CIP projects in the public right-of-way and on public lands. Identify and develop a green infrastructure pilot project that will reduce runoff volume and capture and infiltrate stormwater, based on projected changes in precipitation amounts due to climate change, and incorporates tree and shrub planting to increase carbon sequestration in the city.

Related Action 3.1.3. Reduce Stormwater Runoff. Reduce stormwater runoff through implementation of stormwater diversion and infiltration projects that reduce pollution problems caused by more frequent and intense storms and more extreme flooding events.

Related Action 3.1.4. Earmark Capital Improvement Program (CIP) funding for design, permitting and implementation of storm drain repairs. Include strategies in the 2021 Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) for potential regional funding. Upsize Storm Drain Master Plan (SDMP) improvements, especially when making repairs in the lower reaches of watersheds, to handle larger storms.
4 American Society of Landscape Architects. Green Infrastructure and Stormwater Management Case Study. 2009. Available:
<https://www.asla.org/uploadedFiles/CMS/Advocacy/Federal_Government_Affairs/Stormwater_Case_Studies/Stormwater%20Case%200 81%20San%20Mateo%20County%20Sustainable%20Green%20Streets,%20San%20Mateo,%20CA.pdf>. Accessed February 2, 2022 5 San Mateo County Sustainable Green Streets and Parking Lots Design Guidebook. Available:
<https://www.flowstobay.org/documents/municipalities/sustainable%20streets/San%20Mateo%20Guidebook.pdf>. Accessed February 2, 2022
Photo: San Mateo County Sustainable Green Streets and Parking Lots Design Guidebook https://nnala.com/san-mateo-countysustainable-green-streets-and-parking-lots-design-guidebook/ Attachment 2
City of Carmel-by-the-Sea
Climate Adaptation Plan
A-6
Pajaro Dunes Geologic Hazards Abatement District
Location: Santa Cruz County, CA
The Pajaro Dunes Geologic Hazards
Abatement District (GHAD) is one example of
an abatement district formed to mitigate sea
level rise and storm impacts. The Pajaro
Dunes community includes private singlefamily residences as well as townhouses and condominiums. These residences were built
along a narrow strip of land bounded by the
Pacific Ocean on the southwest and by the
Pajaro River on the northeast and southeast.

The development is protected by an
approximately 6,000-foot-long seawall
constructed of large riprap along the oceanside of the development and a steel sheet wall along the inland Pajaro River side of the development. The rock revetment has been repeatedly damaged by coastal erosion, occurring during server winter storms.6 The GHAD is working to fund repairs to the seawall.

Related to funding and financing mechanisms.
6 Pajaro Dunes Geologic Hazard Abatement District. N.d. 2020 Grading Overview Document. Available: <https://pdghad.org/bg_pdghad.org/reports/>.

Accessed February 11, 2022.

Photo: Pajaro Dunes.
https://www.resortsandlodges.com/lodging/usa/california/centralcoast/pajaro-dunes-resort.html Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robert Harary, P.E, Director of Public Works APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2022-065, authorizing the City Administrator to execute a Professional Services Agreement with Ausonio, Incorporated for Project Management Services for delivery of nine Capital Improvement Projects
RECOMMENDATION:

Adopt Resolution 2022-065, authorizing the City Administrator to execute a Professional Services Agreement with Ausonio, Incorporated for Project Management Services for delivery of nine Capital Improvement Projects.

BACKGROUND/SUMMARY:

At the June 7, 2022 meeting, Council adopted Resolution 2022-048 approving 25 new Fiscal Year (FY) 2022/23 Capital Improvement Projects including the following nine projects collectively referred to as the “Facility Renovation Projects” in this Staff Report:
· Sunset Center Hazardous Materials Remediation and Exterior Painting · Sunset Center Cottage Window Repairs
· Harrison Memorial Library (HML) Hazardous Materials Remediation & Exterior/Interior Painting
· HML Carpet Replacement
· HML Backup Generator
· City Hall Retaining Wall Repair
· City Hall Roof Replacement
· Facility Component Inspections (4 buildings)
· Vista Lobos Interior Remodel Design
The prior staff report and presentation regarding the Capital Improvement Program (CIP) included a discussion of the approach to implementation with the goal of eliminating the backlog of prior projects and advancing new projects as quickly as possible. Part of that implementation strategy was to hire an in-house Project Manager, but, unfortunately, we have not been successful to date. Another strategy was to hire consultants to provide Project Management (PM) services on behalf of the City. PM Services can vary widely covering management of third party design consultant professionals, performing planning and engineering services themselves, managing the public bidding and construction phases, and similar work.

In April 2022, requests for Statements of Qualifications (SOQs) were advertised, from San Jose to Sacramento to San Luis Obispo, seeking qualifications from consultants covering 14 professional service areas, including Project Management services.

In May 2022, seven SOQs were received for PM services and independently evaluated by a Selection Committee consisting of the Public Works Director and Public Works Superintendent. These SOQs were reviewed in consideration of the nine facility renovation projects included in this Staff Report, as well as PM services for eight other carry-over and new CIP projects, with the following rankings:

Rank Firm Recommended Projects
1 Wallace Group (Awarded) 4 Civil Engineering Projects
2 Ausonio, Inc. 9 Facility Renovation Projects
3 4 Leaf, Inc. PD Renovation + 3 Misc. Projects
4 Cumming Management No Award
5 Bureau Veritas No Award
6 CM Pros No Award
7 Harrison Engineering No Award
This Staff Report is recommending award of the nine Facility Renovation Projects to Ausonio, Incorporated of Castroville. Ausonio proposed a part-time Project Manager/Construction Manager and part-time Project Engineer to work on these projects, with a not-to-exceed fee per Fiscal Year of $125,000. The proposed Project Manager/Construction Manager has managed construction of new and major building renovation projects for local agencies and universities and is well qualified to oversee these smaller, facility renovation projects.

The first three hazardous materials remediation, painting, and window repair projects for Sunset Center and HML will be bundled together for efficiency. For some projects, Ausonio will prepare plans, specifications, and construction contract documents, and for other projects, Ausonio will oversee third party design professionals, such as architects and engineers. While the scope of each project various, PM tasks to be provided by Ausonio for most projects include:

Provide project updates with City.

Coordinate projects with Public Works, Community Planning & Building, other City staff, building occupants, and technical experts.

Coordinate with City’s on-call design consultants, and check plans and specifications.

Meet with vendors and trade contractors to solicit input.

Prepare diagrams/plans/spreadsheets identifying the scope and limits of work.

Complete City’s front-end contract documents.

Prepare construction cost estimate and schedule timeline.

Submit projects for City Building Permits.

Advertise for bids, conduct pre-bid meeting, issue addendum, evaluate bids, and recommend construction contract award by City.

Issue Notice to Proceed, conduct preconstruction and construction meetings with agendas and minutes, manage construction contract, approve submittals, inspect work, negotiate change orders, issue punch list, and close out.

A majority of these projects are anticipated to be substantially completed by the end of FY 2022/23.

Several of these projects will likely extend into FY 2023/24. If the City is successful in hiring an in-house Project Manager by that time, these additional services may be performed by staff. Otherwise, the City would need to enter into an Amendment with Ausonio for additional PM services for FY 2023/24.

FISCAL IMPACT:

All Projects and PM services will be charged to CIP Account Number 301-311-00-43008.

The total CIP budget for all nine Facility Renovation Projects is $925,000. Ausonio’s PM fees for the first FY is $125,000, which is approximately 13.5% of the total budget. The industry standard fee to provide project management services for public works projects is typically about 10% of the total project cost.

However, the 10% average is typically associated with larger capital projects. In our case, we have nine, mostly small and specialized projects. Therefore, the negotiated overall fee for this work is reasonable. This analysis should be reviewed if an amendment to the Agreement is proposed for FY 2023/24.

The FY 2022/23 budgets recently adopted for some of these facility renovation projects may already be low compared to today’s rapidly escalating costs and inflation for construction labor, materials, and transportation. Some of these projects could be scaled back to fit the available budget, while others will proceed as intended, with the caveat that additional funds may be needed at the time that construction contracts for such projects are awarded.

PRIOR CITY COUNCIL ACTION:

At the June 7, 2022 meeting, Council adopted Resolution 2022-048 approving 25 FY 2022/23 Capital Improvement Projects including these nine Facility Renovation Projects.

ATTACHMENTS:

Attachment 1) Resolution 2022-065
Attachment 2) Professional Services Agreement with Ausonio, Inc.

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-065

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT WITH AUSONIO INCORPORATED FOR PROJECT MANAGEMENT SERVICES

FOR DELIVERY OF NINE CAPITAL IMPROVEMENT PROJECTS
WHEREAS, on June 7, 2022, Council adopted Resolution 2022-048 approving 25 new FY 2022/23 Capital Improvement Projects including: Sunset Center Hazardous Materials Remediation & Exterior Painting, Sunset Center Cottage Window Repairs, Harrison Memorial Library (HML) Hazardous Materials Remediation & Exterior/Interior Painting, HML Carpet Replacement, HML Backup Generator, City Hall Retaining Wall Repair, City Hall Roof Replacement, Facility Component Inspections, and Vista Lobos Interior Remodel Design; and
WHEREAS, using Project Management (PM) consultant services was introduced as an implementation strategy with the goal of eliminating the backlog of prior projects and advancing new projects as quickly as possible; and
WHEREAS, in April 2022, requests for Statements of Qualifications (SOQs) were advertised seeking qualifications from consultants covering 14 professional service areas, including PM services; and
WHEREAS, based on seven SOQs received, Ausonio Incorporated, of Castroville, was ranked by a selection committee as best qualified to provide PM services for the nine facility renovation projects identified above; and
WHEREAS, a Professional Services Agreement was prepared with Ausonio, and the negotiated fee for PM Services for FY 2022/23 of $125,000 represents 13.5% of the total budget for these nine projects, which is reasonable considering the number of small, diverse, and specialty projects involved.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Authorize the City Administrator to execute a Professional Services Agreement with Ausonio Incorporated for Project Management Services for delivery of nine Capital Improvement Projects.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THESEA this 2nd day of August, 2022, by the following vote:

Attachment 1
Resolution No. 2022-065

Page 2 ends

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
________________________ _________________________
Dave Potter Nova Romero, MMC
Mayor City Clerk
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CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robert Harary, P.E, Director of Public Works APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2022-066, approving an Agreement with the City of Monterey for Vehicle Maintenance Services
RECOMMENDATION:

Adopt Resolution 2022-066, approving an Agreement with the City of Monterey for Vehicle Maintenance Services.

BACKGROUND/SUMMARY:

Over the years, the City of Monterey’s Fleet Services Division has consistently provided reliable maintenance and repair services for Carmel’s fleet. In fact, staff cannot recall an incident where any services or repairs had to be sent back to be redone.

Monterey’s services typically include brakes, transmission, and coolant system services, computer diagnostics, belts, electrical, fuel, and exhaust system repairs, and similar services. Carmel staff drops off our vehicles at Monterey’s Ryan Ranch facility, and pickup our vehicles when ready.

The Public Works departments between our cities have longstanding, collaborative working relationships and excellent communications. Monterey has regularly notified us in advance of unexpected extra work or delays on our vehicles. Overall, we very satisfied with their performance and customer service.

To reduce the cost of outside services to maintain our fleet, during the Covid Pandemic budget reductions, Public Works re-instituted performing basic vehicle maintenance in-house, including basic diagnostics, oil and air filter changes, battery charging and replacements, tire rotations, and similar activities. However, we are not equipped to perform the more specialized vehicle services that Monterey's Fleet Services can provide.

The City of Carmel entered into a similar, 5-year, Vehicle Maintenance Services agreement with Monterey in 2012. The agreement provided for up to five optional, annual extensions, all of which were awarded, and the agreement expires on August 7, 2022. Similarly, the new Vehicle Maintenance Services Agreement also has an initial term of five years plus up to four optional, annual extensions.

FISCAL IMPACT:

Vehicle maintenance and repair services rendered by the City of Monterey fleet specialists will be billed at $129 per hour. These rates are subject to change over the term of the Agreement. Costs for repair parts will be marked up 10 percent, and all job orders will include a surcharge of one percent for waste disposal, lubricants, and incidentals. These not-for-profit rates are below what we would expect to pay for the same services performed at commercial auto shops and dealers.

Any repairs estimated over $750 will require Carmel Public Works' pre-approval before Monterey provides those repairs.

For Fiscal Year 2022/23, the Public Works/Streets operating budget for vehicle maintenance, in Account #101-119-41-42203, is $41,500. The Public Safety Department's budget for vehicle maintenance includes:
$17,000 for Ambulance in Account #101-118-00-42203, $35,000 for Fire, Account #101-117-00-42203, plus $23,000 for Police, Account #101-116-00-42203, for a total of $75,000. It should be noted that larger, more complex work on heavy Public Works equipment and fire apparatus is farmed out to specialized repair shops.

PRIOR CITY COUNCIL ACTION:

In August 2012, the City Council approved an agreement with the City of Monterey for Vehicle Maintenance Services for a period of five years. The City of Carmel administratively authorized the extension of that agreement for all five optional, annual renewal periods.

ATTACHMENTS:

Attachment 1) Resolution 2022-066
Attachment 2) Vehicle Maintenance Agreement with City of Monterey

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-066

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

APPROVING AN AGREEMENT WITH THE CITY OF MONTEREY FOR VEHICLE

MAINTENANCE SERVICES
WHEREAS, the City of Monterey and the City of Carmel-by-the-Sea have enjoyed a longstanding, collaborative working relationship; and
WHEREAS, in 2012, the City of Carmel-by-the-Sea entered into a five-year Vehicle Maintenance Services Agreement with the City of Monterey, the agreement allowed for up to five optional, annual extensions, all of which were authorized, and the agreement expires on August 7, 2022; and
WHEREAS, the City of Monterey’s Fleet Services Division has consistently provided reliable maintenance and repair services for Carmel’s fleet, and the City of Carmel has been very satisfied with Monterey’s performance and customer service; and WHEREAS, the rates charged by Monterey are below what we would expect to pay for the same vehicle maintenance and repair services performed at commercial auto shops and dealers; and
WHEREAS, since the Covid-19 Pandemic, Carmel Public Works reinstituted performing basic vehicle maintenance in-house to further reduce costs, but we are not equipped to perform the more specialized vehicle services that Monterey’s Fleet Services can provide.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Approve the Agreement with the City of Monterey for Vehicle Maintenance Services.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THESEA this 2nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1
Resolution No. 2022-066

Page 2 ends

APPROVED: ATTEST:
_________________________ _________________________
Dave Potter Nova Romero, MMC
Mayor City Clerk
Attachment 1
T00001-CA (v. 1.1 – 3/18/2022)

AGREEMENT FOR VEHICLE MAINTENANCE SERVICES
City of Monterey and City of Carmel-by-the-Sea
THIS AGREEMENT for Vehicle Maintenance Services is made and entered into on this date: _______________________________________________, by and between the City of Monterey (hereinafter “Monterey”), a municipal corporation, as the service provider, and the City of Carmel-by-the-Sea, a municipal corporation (hereinafter “Carmel”).

WHEREAS, Carmel desires to utilize the City of Monterey for vehicle maintenance services, as outlined in detail in the attached Exhibit A; and WHEREAS, Monterey is willing and qualified to provide such services to Carmel upon the terms and conditions set forth herein; and
WHEREAS, California Government Code section 54981 provides the City Councils of Monterey and Carmel with the authority to contract for performance of municipal services by the former within the territory of the later; and
WHEREAS, the City of Monterey authorized this agreement on [___________, 2022] by the passage of Resolution No.__________ ; and
WHEREAS, the City of Carmel authorized this agreement on August 2, 2022 by the passage of Resolution No. 2022-066.

NOW, THEREFORE, in consideration of the recitals and the mutual obligations of the parties as herein expressed, Monterey and Carmel agree as follows:

1. SERVICES TO BE PROVIDED. The City of Carmel-by-the-Sea hereby engages Monterey to perform, and Monterey hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement.

1.01. FINAL DECISION AUTHORITY. Carmel’s Public Works Director shall have final decision authority over the results of the services performed on behalf of Carmel, and all work performed by Monterey shall be to the satisfaction of Carmel’s Public Works Director. In instances where a dispute arises over the Public Works Director’s determination, Carmel’s City Administrator shall render a final decision.

1.02. DUTIES OF MONTEREY AND CARMEL. See Exhibit A.

1.03. EXTRA WORK. Monterey shall not perform extra work without written authorization from Carmel’s City Administrator or designee. Any extra work so authorized shall be within the general scope of work set forth in this Agreement.

2. PAYMENTS BY CARMEL. Carmel shall pay Monterey in accordance with the payment provisions set forth in Exhibit A, subject to the limitations set forth in this Agreement.

Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)

3. TERM OF AGREEMENT.

3.01. INITIAL TERM. The term of this Agreement shall be from August 8, 2022 through August 8, 2027, unless sooner terminated pursuant to the terms set forth in section 7 herein.

3.02. EXTENSIONS. This Agreement may be extended by up to four (4) additional one-year terms, which extension shall occur automatically on an annual basis unless notice of termination is provided by either party in accordance with the provisions of section 7 herein. At the time of any extension, or at any other time as may be necessary during the term of the Agreement, the labor rates schedule (Exhibit A) may be adjusted by written agreement between the City Managers of each party. Should either party decide not to extend the Agreement beyond the initial five (5) year or subsequent one (1) year terms, notice of such decision shall be provided to the other party no later than 30 days before the expiration date of the Agreement.

4. ADDITIONAL PROVISIONS/EXHIBITS. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement.

Exhibit A Scope of Services/Payment Provisions

5. PERFORMANCE STANDARDS.

5.01. Monterey warrants that Monterey and Monterey’s agents, employees, and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed (if applicable) to perform the work and deliver the services required under this Agreement, and that they are not employees of Carmel.

5.02. Monterey, its agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.

5.03. Monterey shall furnish all materials, equipment, and personnel necessary to carry out the specific services set forth in Exhibit A herein, except as otherwise specified in this Agreement. Monterey shall not use Carmel’s premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

5.04. Monterey shall perform all services set forth in Exhibit A in a timely manner consistent with the time Monterey would perform similar services within its own jurisdiction whenever possible; however, Monterey projects shall be given priority over Carmel projects if scheduling conflicts arise and Monterey shall not be liable for any delays in performing Carmel’s work if such delays are caused by such scheduling conflicts.

Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)

6. PAYMENT CONDITIONS.

6.01. Payment for Monterey’s services under this Agreement shall be made by Carmel upon the monthly submission to Carmel by Monterey of an invoice for services rendered by Monterey in the preceding month. Payment shall be made within thirty (30) days after receipt of such invoice. An additional two percent (2%) will be paid as a late payment carrying charge for each thirty days of delinquency thereafter. Any disputed invoices shall be brought to Monterey’s attention within ten (10) days of receipt or invoices will be deemed acceptable.

6.02. Carmel and Monterey acknowledge that there may be partially completed projects at both the beginning and the end of term of this Agreement or any extensions thereof.

Carmel and Monterey agree that the payments to Monterey as provided in Exhibit A shall be deemed fair compensation for the work provided by Monterey during the term of this Agreement, regardless of the partially completed projects at the beginning and the end of the term of this Agreement or any extensions thereof.

6.03. Monterey shall receive payment for work performed pursuant to the payment provisions set forth in Exhibit A, regardless of whether Carmel elects to charge fees. For projects subject to waivers of fees, Carmel shall calculate the amount of fees otherwise due, and pay Monterey accordingly.

6.04. Monterey shall not receive reimbursement for travel expenses unless set forth in Exhibit A herein.

7. TERMINATION.

7.01. During the term of this Agreement, either party may terminate the Agreement for any reason by giving written notice of termination to the other party at least thirty (30) days prior to the effective date of termination. In the event of an adverse claim or litigation involving either party and related to the services of this Agreement, this Agreement may be terminated by either party giving written notice at least ten (10) days prior to the effective date of termination. Any termination notice shall set forth the effective date of termination.

7.02. Carmel may cancel and terminate this Agreement for good cause effective immediately upon written notice to Monterey. “Good cause” includes the failure of Monterey to perform the required services at the time and in the manner provided under this Agreement. If Carmel terminates this Agreement for good cause, Carmel may be relieved of the payment of any consideration to Monterey, and Carmel may proceed with the work in any manner which Carmel deems proper. The cost to Carmel shall be deducted from any sum due Monterey under this Agreement.

7.03. Monterey may cancel and terminate this Agreement for good cause effective immediately upon written notice to Carmel. “Good cause” includes but is not limited to failure of Carmel to pay Monterey at the time and in the manner provided under this Agreement or other failure of Carmel to fulfill its responsibilities set forth in Exhibit A herein. Termination of this Agreement pursuant to this section shall not be construed to limit Monterey’s right to obtain, by any means available at law, the amount Carmel still owes Monterey.

8. IMMUNITY.

Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)
As Carmel’s authorized representative, Monterey shall be recognized as having rights to any immunities it is entitled to. In no event shall any duties contained in Exhibit A, or otherwise herein, negate any legal protections or immunities available to the parties under local, state or federal law. Monterey’s liability, including, without limitation, that referenced in Section 10 herein, shall be limited to an amount not to exceed the fee earned for each project.

9. INDEMNIFICATION.

9.01 Each party shall indemnify, defend and hold harmless the other party, to the extent allowed by law and in proportion to fault, against any and all third-party liability for claims, demands, costs or judgments (direct, indirect, incidental or consequential) involving bodily injury, personal injury, death, property damage or other costs and expenses (including reasonable attorneys'. fees, costs and expenses) arising or resulting from the acts or omissions of its own officers, agents, employees or representatives carried out pursuant to the obligations of this Agreement.

9.02 Each party will protect, defend, indemnify and hold harmless the other party (including their officials, employees and agents as the same may be constituted now and from time to time hereafter) from and against any and all liabilities, losses, damages, expenses or costs, whatsoever (including reasonable attorneys' fees, costs and expenses), which may arise against or be incurred by the other party as a result of or in connection with any actual or alleged breach of this Agreement by either party.

9.03 These indemnity provisions shall survive the termination or expiration of this Agreement. Further, each party will be liable to the other party for attorneys' fees, costs and expenses, and all other costs and expenses whatsoever, which are incurred by the other party in enforcing these indemnity provisions.

10. INSURANCE.

10.01 Each party shall maintain in effect, at its own cost and expense, the following insurance coverage provided either through a bona fide program of self-insurance, commercial insurance policies, or any combination thereof as follows:
a. Commercial General Liability or Public Liability with minimum limits of $1,000,000 per occurrence and $2,000,000 in the aggregate. Each party shall prove that is self insured to the limits specified or have its insurance policy endorsed to name the other party additionally insured.
b. Auto Liability including owned, leased, non-owned, and hired automobiles, with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.
c. If a party employs others in the performance of this Agreement, that party shall maintain Workers’ Compensation in accordance with California Labor Code section 3700 with a minimum of $1,000,000 per occurrence for employer’s liability, for the duration of time that such workers are employed.

Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)
d. Each party shall maintain in effect throughout the term of this Agreement all risk property insurance, excluding earthquake and flood, on all permanent property of an insurable nature in an amount sufficient to cover at least 100% of the replacement costs of said property.

10.02 All insurance required by this Agreement shall:
a. Be placed (1) with companies admitted to transact insurance business in the State of California and with a current A.M. Best rating of no less than A:VI or with carriers with a current A.M. Best rating of no less than A:VII; or (2) disclosed self-insurance with limits acceptable to the other party;
b. Provide that each party’s insurance is primary and non-contributing insurance to any insurance or self-insurance maintained by the other party and that the insurance of the other party shall not be called upon to contribute to a loss covered by a party’s insurance; and
c. Subsequent to execution of this Agreement, each party shall file certificates of insurance with the other party evidencing that the required insurance is in effect.

11. NON-DISCRIMINATION. During the performance of this Agreement, Monterey, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in Monterey’s employment practices or in the furnishing of services to recipients. Monterey shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. Monterey and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.

12. INDEPENDENT CONTRACTOR. In the performance of work, duties, and obligations under this Agreement, Monterey is at all times acting and performing as an independent contractor and not as an employee of Carmel. No offer or obligation of permanent employment with Carmel or particular Carmel department or agency is intended in any manner, and Monterey shall not become entitled by virtue of this Agreement to receive from Carmel any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits.

13. NOTICES. Notices required under this Agreement shall be delivered personally or by first-class, postage pre-paid mail to Carmel’s and Monterey’s contract administrators at the addresses listed below:

FOR CARMEL-BY-THE-SEA: FOR MONTEREY:

Chip Rerig
City Administrator
Hans Uslar
City Manager
Carmel-by-the-Sea
PO Box CC City Hall
Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)
Carmel-by-the-Sea, CA 93921 Monterey, CA 93940
Ph: (831) 620-2000 Ph. (831) 646-3760

14. MISCELLANEOUS PROVISIONS.

14.01. Conflict of Interest. Monterey represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement which would directly or indirectly conflict in any manner or to any degree with the full and complete performance of the professional services required to be rendered under this Agreement.

14.02. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by Carmel and Monterey.

14.03. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by Carmel and Monterey. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.

14.04. Contractor. The term “Monterey” as used in this Agreement includes Monterey’s officers, agents, and employees acting on Monterey’s behalf in the performance of this Agreement.

14.05. Disputes. Monterey shall continue to perform under this Agreement during any dispute. Monterey and Carmel hereby agree to make good faith efforts to resolve disputes as quickly as possible. In the event any dispute arising from or related to this Agreement results in litigation or arbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, including court costs, attorney fees, expenses for expert witnesses (whether or not called to testify), expenses for accountants or appraisers (whether or not called to testify), and other related expenses. Recovery of these expenses shall be as additional costs awarded to the prevailing party, and shall not require initiation of a separate legal proceeding.

14.06. Assignment and Subcontracting. Monterey shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of Carmel.

None of the services covered by this Agreement shall be subcontracted without the prior written approval of Carmel. Notwithstanding any such subcontract, Monterey shall continue to be liable for the performance of all requirements of this Agreement.

Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)

14.07. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of Carmel and Monterey under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.

14.08. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.

14.09. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.

14.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.

14.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.

14.12. Non-exclusive Agreement. This Agreement is non-exclusive and both Carmel and Monterey expressly reserve the right to contract with other entities for the same or similar services.

14.13. Construction of Agreement. Carmel and Monterey agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.

14.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.

14.15. Authority. Any individual executing this Agreement on behalf of Carmel or Monterey represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

14.16. Integration. This Agreement, including the exhibits and any documents incorporated by reference, represent the entire Agreement between Carmel and Monterey with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between Carmel and Monterey as of the effective date of this Agreement, which is the date that Carmel signs the Agreement.

14.17 Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.

14.18 Severability. If any of the provisions contained in the Agreement are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability and indemnities shall survive termination of the Agreement for any cause. If a part of this Agreement is valid, all valid parts that are severable from the invalid Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)
part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

IN WITNESS WHEREOF, Carmel and Monterey have executed this Agreement as of the day and year written on the first page herein.

CITY OF MONTEREY CITY OF CARMEL-BY-THE-SEA
By: ______________________________ By: ______________________________ Hans Uslar Chip Rerig
City Manager City Administrator
_______________________________ _________________________________ Date Signed Date Signed
Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)

EXHIBIT A

SCOPE OF SERVICES/PAYMENT PROVISIONS

CITY OF CARMEL-BY-THE-SEA VEHICLE MAINTENANCE SERVICES
Monterey agrees to provide Carmel the same services as currently provided the City of Monterey vehicle fleet. Said services shall include, but are not limited to, mechanical maintenance and vehicle repair.

I. City of Monterey Responsibilities:
1) All preventative maintenance (PM) services will be done based on Monterey’s fleet experience. PM service charges include all fluid, parts, and labor relative to performing the service.
2) Repairs, component replacement, and repair estimates will be done on an actual time/material basis. The current contractual labor rate is $129.00 per hour. The labor rate is subject to change and Monterey shall give a 30-day written notice before any changes are made. Repair parts will be acquired through City of Monterey Mechanical purchasing and charged back to internal and external customers at cost plus 10%. An additional 1% charge will be added to each work order to cover miscellaneous items such as waste disposal, small parts, spray lubes, etc. Parts and labor estimates for major repairs will be given and Carmel must approve all major repair work in advance. 3) Monterey reserves the right to prioritize and decline work in the event of scheduling conflicts, emergencies, or lack of expertise in a given area. 4) Monterey Automotive Mechanics have authorization to approve and conduct repair work up to $750 (eg. air filters, wiper blades). All repairs over $750 must be preapproved by Carmel’s designated point of contact. 5) Monterey agrees to supply fuel to all vehicles owned by and registered to Carmel.

Fuels normally dispensed to Monterey’s fleet (i.e. gasoline & diesel fuel) will be available at Monterey’s Card Lock Station at Fire Station 1, Pacific Street. All authorized vehicles and personnel will be issued cards and instructions for using Monterey’s Card Lock Fuel Station.
6) Fuel will be charged to all customers (internal and external) at 5% over cost to Monterey, to cover the cost of fuel pump maintenance and fuel management software.

Carmel will be invoiced at the beginning of the month for the preceding month’s fuel. A complete log of all vehicle fuel records will accompany each invoice for the month being invoiced. Payment is due and payable no later than 30 days after receipt of invoice by Carmel. A 10% late payment penalty will be assessed for any payment received after the 30-day deadline.

Attachment 2
T00001-CA (v. 1.1 – 3/18/2022)
II. Preventative Maintenance Schedule
Preventative maintenance services will be performed at 5,000 mile or 100 hour intervals. The preventative maintenance services will include: oil and filter change, chassis lube and top off all fluids. It will also include tire rotation and inspection of the brakes, tires, frame, suspension, exhaust, body, and interior, as well as all under hood components (i.e. belts, hoses, etc.). Other levels of service will be performed according to the vehicle manufacturers’ recommendations.

III. Carmel Responsibilities
All of Carmel’s vehicles requiring service or repair shall be delivered and picked up at Monterey’s Corporation Yard at Ryan Ranch by Carmel personnel. Preventative maintenance and repairs will be invoiced to Carmel upon completion of work. Payment is due by Carmel 30 days after receipt of each invoice from Monterey.

Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Agnes Martelet, Manager, Environmental Compliance APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2022-067 approving a Budget Amendment of $20,395 to the Fiscal Year 2022-2023 Adopted Budget for the CalRecycle SB 1383 Local Assistance Grant RECOMMENDATION:

Adopt Resolution 2022-067 approving a Budget Amendment of $20,395 to the Fiscal Year 2022-2023 Adopted Budget for the CalRecycle SB 1383 Local Assistance Grant.

BACKGROUND/SUMMARY:

In September 2016, Senate Bill (SB) 1383 was signed into law by the Governor to reduce emissions of methane, a potent greenhouse gas. The law established the following targets:

Reduce organic waste disposal by 50 percent by 2020 and 75 percent by 2025, Rescue for people to eat at least 20 percent of currently disposed edible food by 2025.

In November 2020, the Department of Resources Recycling and Recovery (CalRecycle) established stringent regulations to implement SB 1383. In January 2022, CalRecycle issued the SB 1383 Local Assistance Grant Program, a one-time non-competitive grant program meant to provide aid to jurisdictions for the implementation of the SB1383 regulations.

In February 2022, the City worked collaboratively with the Monterey Regional Waste Management District (MRWMD) and other member jurisdictions to develop a joint grant application for this grant program. The intent of the regional approach was to pool grant funds from each individual agency to implement a coordinated and unified program across the region. This approach will allow local agencies, including Carmel, to make significant strides towards compliance with the requirements of SB1383. In April 2022, Council adopted Resolution 2022-027 approving an amendment to the Memorandum of Understanding (MOU) between the MRWMD and its member jurisdictions for the implementation of this grant.

In June 2022, CalRecycle notified the City that the grant application was successful, and the City was awarded $20,395. Resolution 2022-067 (Attachment 1) amends the adopted FY 2022-2023 budget to incorporate the awarded funds into the Public Works’ Environmental Division contract services account. The funds will be remitted to the MRWMD for regional SB 1383 implementation, as specified in the MOU between the MRWMD and its member jurisdictions.

FISCAL IMPACT:

The City Council has allocated $166,860 in the Environmental Division Contract Services fund (Account no. 101-119-43-42001) in Fiscal Year 2022-23. This grant will add $20,395 to this budget, which brings the total to $187,255.

PRIOR CITY COUNCIL ACTION:

In April 2022, Council adopted Resolution 2022-027 approving an amendment to the MOU between the MRWMD and its member jurisdictions for the implementation of the CalRecycle SB 1383 Local Assistance Grant.

ATTACHMENTS:

Attachment 1) Resolution 2022-067

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-067

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING A BUDGET AMENDMENT OF $20,395 TO THE FISCAL YEAR 2022-2023 ADOPTED BUDGET FOR THE CALRECYCLE SB 1383 LOCAL ASSISTANCE GRANT WHEREAS, in September 2016, the Governor signed into law Senate Bill 1383 (SB 1383) establishing methane emissions reduction targets; and
WHEREAS, in November 2020, the Department of Resources Recycling and Recovery (CalRecycle) issued regulations to implement SB 1383; and WHEREAS, CalRecycle is administering a one-time local assistance grant program meant to provide aid in the implementation of these regulations; and WHEREAS, the City applied for the SB 1383 local assistance grant as part of a regional effort to utilize the grant funds to develop regional solutions to meet the requirements of SB 1383 via the Memorandum of Understanding (MOU) established between the Monterey Regional Waste Management District and its member jurisdictions; and WHEREAS, the City Council approved an amendment to the MOU between the Monterey Regional Waste Management District and its member jurisdictions for the implementation of this grant in April 2022 via Resolution Number 2022-027; and WHEREAS, CalRecycle awarded the SB 1383 local assistance grant, and the City’s share of the regional implementation grant is $20,395.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Approve a Budget Amendment of $20,395 to the Fiscal Year 2022-2023 Adopted Budget as shown in the attached Exhibit A for the CalRecycle SB 1383 Local Assistance Grant.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 2nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1
Resolution No. 2022-067

Page 2 ends

APPROVED: ATTEST:
_________________________ _________________________
Dave Potter Nova Romero
Mayor City Clerk
Attachment 1
Resolution No. 2022-067

Page 3 ends

EXHIBIT A
General Ledger
Account
Account
Description
Purpose FY 22-23
Adopted
Budget
Adjustment
Amount
FY 21-22
Amended
Budget
101-000-00-35011 General Fund
Revenue
Grants
To recognize
CalRecycle
SB 1383
local
assistance
grant
$25,000 $395 $25,395
101-119-43-42001 General Fund
Expenditures
Public Works
Environmental
Compliance
Division
Contract
Services
To increase
contract
service
budget for
MRWMD
grant
implementati
on
$166,860 $20,395 $187,255
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robert Harary, P.E, Director of Public Works APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2022-068, approving a Budget Amendment of $150,000 to the Fiscal Year 2022/23 Adopted Budget for the Cal Fire Grant and authorizing the City Administrator to execute a Professional Services Agreement with Davey Resource Group for development of an Urban Forestry Master Plan
RECOMMENDATION:

Adopt Resolution 2022-068, approving a Budget Amendment of $150,000 to the Fiscal Year 2022/23 Adopted Budget for the Cal Fire Grant and authorizing the City Administrator to execute a Professional Services Agreement with Davey Resource Group for development of an Urban Forestry Master Plan.

BACKGROUND/SUMMARY:

In December 2021, the City submitted an application to the California Department of Forestry and Fire Protection (Cal Fire) requesting $150,000 to support the creation of the City’s Urban Forestry Master Plan (UFMP). At the May 2, 2002 Special Meeting, the City Council adopted Resolution 2022-040, accepting the $150,000 grant.

In May 2022, seven SOQs were received for these services. The SOQs were recently, independently evaluated by a Selection Committee consisting of the City Forester and Associate Planner. The SOQs were reviewed in consideration of the UFMP, with the following rankings:

Rank Firm
1 Davey Resource Group, Inc.
2 BFS Landscape Architects
3 Ten Over Studio
4 Gates & Associates
5 Tanaka Design Group
6 Verde Design, Inc.
7 Sunflower Gardenscapes
With nearly 2,000 employees in the firm, the proposed Davey Resource Group (DRG) team has prepared Urban Forest Master Plans and performed similar services for the City of South San Francisco, Garden Grove, Merced, and Yuba City. The Project Manager is an International Society of Arboriculture BoardCertified Master Arborist and a graduate of the Municipal Forest Institute, and the overall team is qualified for this project.

To enhance the urban forest with meaningful and achievable goals, DRG will prepare the City’s UFMP by compiling and analyzing the following information:
· Inventory 6,000+ City trees, including geo-coded locations and condition assessments in compliance with the Cal Fire grant requirements
· City operations review of existing tree care and maintenance practices · Evaluate the composition and economic value of the urban forest and cost-benefit of strategic investment of trees and their care
· Tree canopy assessment
· Priority planting plan, yearly tree planting recommendations, and tree species list for future plantings
· Online community survey
· Compile results in a comprehensive UFMP report
· Community workshop and presentations to the Forest and Beach Commission, and support staff’s presentation of the final UFMP to the City Council
The services of DRG are slated to begin by mid-August 2022 and conclude by June 30, 2024.

FISCAL IMPACT:

The fee for DRG to prepare the UFMP and peform the tree inventory is $150,000. A supplemental services budget of $10,000 is included to cover additional services that may be required during the master planning process. Therefore, the maximum authorized expenditure under this Agreement is $160,000.

All services under the Agreement with DRG are eligible for reimbursement from the $150,000 Cal Fire grant. In order to process payments, a Budget Adjustment is required to place the reimbursable grant into the FY 2022/23 General Fund Revenue Grants Account #101-000-00-35011, and expense the grant funds in Public Works/Forestry Contractual Services Account #101-119-45-42001, as provided for in the attached Resolution.

The City is required to match the Cal Fire grant with a minimum of $61,600. Of that amount, $20,000 match is included in the FY 2022/23 Operating Budget in the Forestry contractual services account. This amount will be split into $10,000 for any Supplemental Service(s) included in the DRG Agreement, with the balance available to the purchase of new trees to plant as part of the community engagement process. Staff labor, and other tree-related maintenance activities performed by the City during the term of the UFMP will also qualifiy for in-lieu grant match.

PRIOR CITY COUNCIL ACTION:

At the May 2, 2002 Special Meeting, the City Council adopted Resolution 2022-040, accepting a $150,000 reimbursable grant from Cal Fire for the Urban Forest Management Plan.

At the June 7, 2022 meeting, Council adopted Resolution 2022-048 approving the FY 2022/23 Operating and Capital Budget, including $20,000 in Public Works/Forestry Contractual Services Account #101-119- 45-42001 earmarked as the Cal Fire Grant match.

ATTACHMENTS:

Attachment 1) Resolution 2022-068
Attachment 2) Professional Services Agreement with Davey Group for the UFMP Attachment 3) Cal Fire Grant Information

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-068

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING A BUDGET AMENDMENT OF $150,000 TO THE FISCAL YEAR 2022/23

ADOPTED BUDGET FOR THE CAL FIRE GRANT AND AUTHORIZING THE CITY

ADMINISTRATOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH

DAVEY RESOURCE GROUP FOR DEVELOPMENT OF AN URBAN FORESTRY

MASTER PLAN
WHEREAS, in December 2021, the City of Carmel-by-the-Sea submitted an application to California Department of Forestry and Fire Protection (Cal Fire) requesting $150,000 to support the creation of the City’s Urban Forestry Master Plan (UFMP); and
WHEREAS, on May 2, 2022, the City Council adopted Resolution 2022-040 accepting the reimbursable grant from Cal Fire for the UFMP; and WHEREAS, in April 2022, requests for Statements of Qualifications (SOQs) were advertised seeking qualifications from professional landscape architecture and arborcultural consultants for development of a UFMP; and WHEREAS, based on seven SOQs received, Davey Resource Group was ranked by a Selection Committee as best qualified to prepare the City’s UFMP; and WHEREAS, a Professional Services Agreement was prepared with Davey Resource Group with a fee for consultant services of $150,000, plus a supplemental services budget of $10,000; and
WHEREAS, all services included in the Agreement with Davey Resource Group are eligible expenses for the Cal Fire Grant, and any additional cost for supplemental services that may be required are covered by the City’s grant matching funds included in the Public Works/Forestry Contractual Services Account.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Approve a Budget Amendment of $150,000 to the Fiscal Year 2022/23 Adopted Budget as shown in the attached Exhibit A for the Cal Fire Grant.

Authorize the City Administrator to execute a Professional Services Agreement with Davey Resource Group for development of the City’s Urban Forestry Master Plan.

Attachment 1
Resolution No. 2022-068
P a g e | 2
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMELBY-THE-SEA this 2 nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAN:

APPROVED: ATTEST:
_________________ _________________
Dave Potter Nova Romero, MMC
Mayor City Clerk
Attachment 1
Resolution No. 2022-068
P a g e | 3

EXHIBIT A
General Ledger
Account
Account
Description
Purpose FY 22-23
Adopted/
PreviouslyAmended
Budget
Adjustment
Amount
FY 21-22
Amended
Budget
101-000-00-35011 General Fund
Revenue
Grants
To recognize
Cal Fire
Grant for the
Urban
Forestry
Master Plan
$25,395 $150,000 $175,395
101-119-45-42001 General Fund
Expenditures
Public Works
Forestry Division
Contract
Services
To increase
contractual
services
budget for
the Urban
Forestry
Master Plan
$521,500 $150,000 $671,500
Attachment 1

PROFESSIONAL SERVICES AGREEMENT
for the
Urban Forest Management and Priority Planting Plan
Agreement # ___
THIS AGREEMENT is executed this 2nd day of August, 2022, by and between the City of Carmel-by-the-Sea, a municipal corporation, (hereinafter "City"), and Davey Resource Group (hereinafter "Consultant"), collectively referred to herein as the “parties”.

WHEREAS, the City wishes to engage Consultant to perform the services required by this Agreement; and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions; and
WHEREAS, Consultant represents that it is trained, experienced and competent and holds all necessary licenses and certifications to perform the services required by this Agreement.

NOW, THEREFORE, in consideration of the terms and conditions herein contained, the parties hereby covenant and agree as follows:

1. SERVICES
A. Scope of Services. Consultant agrees to provide to the City, as the scope of services (“Scope of Services”) under this Agreement, the following: Urban Forest Management and Priority Planting Plan. The Scope of Services is attached hereto as Exhibit “A.” The Scope of Services under this Agreement should include, but is not limited to, a project description, project phases, task descriptions, identification of key personnel, identification of subconsultants, their key personnel and general description of services that will be performed, as further set forth in this Agreement and attachments hereto. Consultant agrees to all of the following:
i. Consultant will furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculations, and all other means whatsoever, except as otherwise expressly specified in this Agreement, necessary to perform the services required of Consultant under this Agreement. ii. Consultant’s designated representative(s) who are authorized to act on its behalf and to make all decisions in connection with the performance of services under this Agreement are listed in Exhibit “B” [Key Personnel], which is made a part of this Agreement. iii. Consultant must make every reasonable effort to maintain the stability and continuity of Consultant’s key personnel and subcontractors, if any, listed in Exhibit B to perform the services required under this Agreement. Consultant must notify City and obtain City’s written approval with respect of any changes in key personnel prior to the performance of any services by replacement personnel.
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iv. Consultant must obtain City’s prior written approval before utilizing any subcontractors to perform any services under this Agreement. This written approval must include the identity of the subcontractor and the terms of compensation. v. Consultant represents that it has the qualifications, experience and facilities necessary to properly perform the services required under this Agreement in a thorough, competent and professional manner. Consultant will at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described in this Agreement. In meeting its obligations under this Agreement, Consultant must employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of Consultant under this Agreement. vi. City may inspect and accept or reject any of Consultant’s work under this Agreement, either during performance or when completed. Acceptance of any of Consultant’s work by City will not constitute a waiver of any of the provisions of this Agreement. vii. The Consultant must maintain any work site in the City in a safe condition, free of hazards to persons and property resulting from its operations.

B. Change Orders.
i. Agreements and Change Orders exceeding $24,999 require City Council approval to be valid.
ii. The City may order changes to the Scope of Services, consisting of additions, deletions, or other revisions, and the compensation to be paid Consultant will be adjusted accordingly. All such changes must be authorized in writing, and executed by Consultant and City. The cost or credit to City resulting from changes in the services will be determined by the written agreement between the parties. However, any increase in compensation beyond the compensation limit amount approved by the City Council must be authorized in advance by the City Council and any service provided by Consultant in the absence of such approval are at Consultant’s sole risk. iii. Consultant will not be compensated for any services rendered in connection with its performance of this Agreement that are in addition to or outside of those set forth in the Scope of Services or otherwise required by this Agreement, unless such additional services are authorized in advance and in writing by City. iv. If Consultant believes that additional services are needed to complete the Scope of Services, Consultant will provide the City Administrator with written notification describing the proposed additional services, the reasons for such services, and a detailed proposal regarding cost.

C. Familiarity with Services and Site.
i. By executing this Agreement, Consultant represents that Consultant:
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a. has thoroughly investigated and considered the Scope of Services to be performed; b. has carefully considered how the services should be performed; c. understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement; and
d. possesses all licenses required under local, state or federal law to perform the services contemplated by this Agreement, and will maintain all required licenses during the performance of this Agreement.
ii. If services involve work upon any site, Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing its services.

Should Consultant discover any latent or unknown conditions that may materially affect the performance of services, Consultant will immediately inform City of such fact and will not proceed except at Consultant’s own risk until written instructions are received from City.

2. COMPENSATION
A. Total Fee. Subject to any limitations set forth in this Agreement, the City agrees to pay and Consultant agrees to accept as full and fair consideration for the performance of this Agreement, hourly fees as set forth in Key Personnel & Fee Schedule (Exhibit B”) and Consultant’s Compensation (Exhibit “C”). The total fee is not-to-exceed one hundred fifty thousand dollars ($150,000). Supplemental Services may be requested by the City, in writing, with a limit of an additional ten thousand dollars ($10,000). The “Maximum Authorized Expenditure” of this Agreement shall be one hundred sixty thousand dollars ($160,000). The Fee Schedule includes, but is not limited to, fees for each phase and task, not-to-exceed total fee, hourly rates, reimbursable rates and subconsultant mark-up rates. The use of subconsultants will not be considered a reimbursable expense, and such costs must be applied towards the approved budgeted amount. Payment of any compensation to Consultant is contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If the City determines that the Services set forth in the written invoice have not performed in accordance with the terms of this Agreement, the City is not responsible for payment until the Services have been satisfactorily performed.

B. Invoicing. Consultant must submit to the City monthly written invoices to the City’s Project Representative, identified in Section 5 below. Invoices must be prepared in a form satisfactory to the City, describing the services rendered and associated costs for the period covered by the invoice. The City will provide invoicing format upon request. Consultant may not bill the City for duplicate services performed by more than one person. Consultant’s invoices must include, but are not limited to, the following information:
i. Project Title, the City’s Purchase Order number and City’s Project Code(s) for each project;
ii. Invoice number and date;
iii. A brief description of services performed for each project phase and/or task; 3 Attachment 2
iv. The budgeted amount for each phase, task and item, including the total amount, with the same for approved Change Orders, if any;
v. Amount invoiced to date divided by the agreed total compensation, expressed as a percentage, with the same for approved Change Orders, if any; vi. The amount earned and invoiced to date for each phase, task and/or item, including the total amount, with the same for approved Change Orders, if any; vii. The amount previously invoiced for each phase, task and/or item, including the total amount, with the same for approved Change Orders, if any; viii. The amount due for the period covered by this invoice for each phase, task, and/or item, including the total amount, with the same for approved Change Orders, if any; ix. For time and materials authorizations, the number of hours spent, by whom and their hourly rate for each phase, task and/or item, including the total amount; x. The costs incurred, including reimbursables, for each phase, task, and/or item for the agreed total compensation and approved Change Orders, if any, along with a brief description of those costs;
xi. The total amount due for the period covered by this invoice, including subconsultants and vendors of services or goods;
xii. Copies of subconsultant, vendor, and reimbursable invoices including hourly breakdowns when requested by City.
xiii. Copies of subconsultant and vendor lien releases.

Any such invoices must be in full accord with any and all applicable provisions of this Agreement. Consultant must submit invoices to the City on or before the sixteenth (16 th
) day
of each month for services performed in the preceding month.

The City will review each invoice submitted by Consultant to determine whether the work performed and expenses incurred are in compliance with this Agreement. In the event that no charges or expenses are disputed, the invoice will be approved and paid.

Except as to any charges for work performed or expenses incurred by Consultant that are disputed by City, the City will pay on each such invoice within thirty (30) days of receipt; provided, however, that Consultant submits an invoice which is not incorrect, incomplete, or not in accord with the provisions of this Agreement. If any charges or expenses are disputed by City, the invoice will be returned by City to Consultant for correction and resubmission, and the City will not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. Payment to Consultant for services performed under this Agreement may not be deemed to waive any defects in the services performed by Consultant, even if such defects were known to City at the time of 4 Attachment 2
payment. City reserves the right to withhold future payment to Consultant if any aspect of the Consultant’s work is found to be non-conforming to the terms of this Agreement.

The City is not obligated to pay Consultant a greater percentage of the Maximum Authorized Expenditure than the actual percentage of services completed as of the invoice date.

Consultant agrees to remit and is responsible for all withholding taxes, income taxes, unemployment insurance deductions, and any other deductions required by applicable federal, state or local laws and regulations for Consultant, its employees, subconsultants and vendors of services or goods.

C. Adjustment of Maximum Authorized Expenditure. The City may increase or decrease the Maximum Authorized Expenditure by issuing a Change Order to the Agreement in accordance with Section 1.B “Change Orders” above. Should Consultant consider that any request or instruction from the City’s Project Representative constitutes a change in the scope of services, Consultant will advise the City’s Project Representative, in writing, within fourteen (14) calendar days of such request or instruction. Without said written advice within the time period specified, the City is not obligated to make any payment of additional compensation to Consultant.

D. Hourly Rates. Payment for all authorized services, including payment for authorized on-call, as-needed services, will be made by the City to Consultant in accordance with the various hourly rates as set forth in the Key Personnel & Fee Schedule (Exhibit “B”).

E. Subconsultants and Vendors. Invoices for subconsultants and vendors of services or goods will be paid by the City to Consultant in accordance with the various rates as set forth in the Key Personnel & Fee Schedule (Exhibit B”) and Consultant’s Compensation (Exhibit “C”). All reimbursable expenses will be considered as included within the Maximum Authorized Expenditure. Consultant is solely responsible for payment to subconsultants and vendors of services or goods, and the City is not responsible or liable for any payments to subconsultants and vendors, either directly or indirectly.

F. Audit and Examination of Accounts:
i. Consultant must keep and will cause any assignee or subconsultant under this Agreement to keep accurate books of records and accounts, in accordance with sound accounting principles, which pertain to services to be performed under this Agreement. ii. Any audit conducted of books of records and accounts must be kept in accordance with generally accepted professional standards and guidelines for auditing. iii. Consultant must disclose and make available any and all information, reports, books of records or accounts pertaining to this Agreement to the City and any city of the County of Monterey, or other federal, state, regional or governmental agency which provides funding for these Services.
iv. Consultant must include the requirements of Section 2F, “Audit and Examination of Accounts”, in all contracts with assignees or subconsultants under this Agreement. 5 Attachment 2
v. All records provided for in this Section are to be maintained and made available throughout the performance of this Agreement and for a period of not less than four (4) years after full completion of the Services. All records, which pertain to actual disputes, litigation, appeals or claims, must be maintained and made available for a period of not less than four (4) years after final resolution of such disputes, litigation, appeals or claims.

3. AGREEMENT TERM
A. Term. The work under this Agreement will commence by August 8, 2022 and must be completed by June 30, 2024 unless sooner terminated or the City grants an extension of time in writing pursuant to the terms of this Agreement, except for provisions in this Agreement that will survive the termination or completion of this Agreement. Consultant will perform Change Order services as set out in Section 1.B, “Amendment of Services (Change Orders)”, in a timely manner or in accordance with the agreed upon Change Order Project Schedule.

B. Timely Work. Consultant will perform all Services in a timely fashion, as set forth more specifically in Section 3.A, “Term”, and Section 3.C, “Project Schedule”, of this Agreement.

Failure to perform is deemed a material breach of this Agreement, and the City may terminate this Agreement with no further liability hereunder, or may authorize, in writing, an extension of time to the Agreement.

C. Project Schedule. Services must be completed by Consultant in accordance with the Project Schedule set forth in Exhibit “D”. The parties may, from time to time, by Change Order, alter the Project Schedule. Consultant will provide the Services pursuant to the Project Schedule or any applicable Project Schedule Change Order. If at any time Consultant discovers that the Project Schedule cannot be met, Consultant must promptly notify the City in writing and provide a revised Project Schedule for review and consideration by City.

D. Notice to Proceed. Upon execution of this Agreement by both parties and the receipt of all documentation required by this Agreement to be provided by Consultant to the City, including proof of insurance and tax identification numbers, the City will issue a written Notice to Proceed to the Consultant. The City may, in its sole discretion, issue subsequent notices from time to time regarding further portions or phases of the work. Upon receipt of such notices, Consultant will diligently proceed with the Services authorized and complete those Services within the agreed time specified in said notice. Consultant will not proceed with any of the Services unless they have received a Notice to Proceed from the City.

4. CONSULTANT’S EMPLOYEES AND SUBCONSULTANTS
A. Listed Employees and Subconsultants. Consultant will perform the Services using the individuals listed in the Key Employees and Subconsultants List attached hereto in Exhibit “B”.

B. Substitution of Employees or Subconsultants:
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i. Consultant may not substitute any key employee or subconsultant listed in Exhibit “B” without the prior written approval of the City, and such approval will not be unreasonably withheld. The City will not approve removal or substitution of employees or subconsultants for the reason that Consultant or its affiliates has called on such individuals to perform services for another client of the Consultant. ii. If, at any time, the City reasonably objects to the performance, experience, qualifications or suitability of any of Consultant’s employees or subconsultants, then Consultant may, upon written request from the City, replace such employee or subconsultant. Consultant must, subject to scheduling and staffing considerations, make reasonable efforts to replace the individual with an individual of similar competency and experience. iii. Whether or not the City consents to, or requests a substitution of any employee or subconsultant of Consultant, the City will not be liable to pay additional compensation to Consultant for any replacement or substitution.

C. Sub-agreements with Subconsultants. Consultant will incorporate the terms and conditions of this Agreement into all sub-agreements with subconsultants in respect of the Services necessary to preserve all rights of the City under this Agreement. Consultant is fully responsible to the City of all acts and omissions of subconsultants and of persons employed by any subconsultant.

D. Not an Agent of the City. Nothing in this Agreement will be interpreted to render the City the agent, employer, or partner of Consultant, or the employer of anyone working for or subcontracted by Consultant, and Consultant must not do anything that would result in anyone working for or subcontracted by Consultant being considered an employee of the City.

Consultant is not, and must not claim to be, an agent of the City.

E. Independent Contractor:
i. Consultant is an independent contractor. This Agreement does not create the relationship of employer and employee, a partnership, or a joint venture. The City may not control or direct the details, means, methods or processes by which Consultant performs the Services. Consultant is responsible for performance of the Services and may not delegate or assign any Services to any other person except as provided for in this Agreement.

Consultant is solely liable for the work quality and conditions of any partners, employees and subconsultants.
ii. No offer or obligation of permanent employment with the City or particular City department or agency is intended in any manner, and Consultant may not become entitled by virtue of this Agreement to receive from the City any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. Consultant will be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of Consultant’s performance of Services under this Agreement. Consultant will defend, indemnify and hold the City harmless from any and all liability, which the City may incur because of Consultant’s failure to pay such taxes. 7 Attachment 2

The City may unilaterally change its project representative upon notice to Consultant.

Name: Sara Davis
Title: City Forester
Address: PO Box CC, Carmel-by-the-Sea, CA 93921
Telephone: 831-620-2073
Email: [email protected]
B. Consultant’s Project Manager. Consultant appoints the person named below as its Project Manager for the purposes of this Agreement (“Consultant’s Project Manager”).

Name: Tina McKeand
Title: Senior Project Manager
Company: Davey Resource Group
Address: 295 S. Water Street, Suite 300, Kent, OH 44240 Telephone: (800) 445-8733
Email: [email protected]
C. Meet and Confer. Consultant agrees to meet and confer with the City’s Project Representative, its agents or employees with regard to Services as may be required by the City to insure timely and adequate performance of this Agreement.

D. Communications and Notices. All communications between the City and Consultant regarding this Agreement, including performance of Services, will be between the City’s Project Representative and Consultant’s Project Manager. Any notice, report, or other document that either party may be required or may wish to give to the other must be in writing and will be validly given to and received by the addressee, if delivered personally, on the date of such personal delivery, if delivered by email, on the date of transmission, or if by mail, seven (7) calendar days after posting.

6. INDEMNIFICATION
Consultant hereby agrees to the following indemnification clause:

To the fullest extent permitted by law (including, without limitation, California Civil Code Sections 2782 and 2782.6), Consultant will defend (with legal counsel reasonably acceptable to the City), indemnify and hold harmless the City and its officers, designated agents, departments, officials, representatives and employees (collectively "Indemnitees") from and against claims, loss, cost, 8 Attachment 2
damage, injury expense and liability (including incidental and consequential damages, Court costs, reasonable attorneys' fees as may be determined by the Court, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, the negligence, recklessness, or willful misconduct of Consultant, any subconsultant or subcontractor, anyone directly or indirectly employed by them, or anyone that they control (collectively "Liabilities"). Such obligations to defend, hold harmless and indemnify any Indemnitee will not apply to the extent that such Liabilities are caused in part by the active negligence or willful misconduct of such Indemnitee.

Notwithstanding the provisions of the above paragraph, Consultant agrees to indemnify and hold harmless the City from and against all claims, demands, defense costs, liability, expense, or damages arising out of or in connection with damage to or loss of any property belonging to Consultant or Consultant's employees, subconsultants, representatives, patrons, guests or invitees.

In no event will the obligation of the Consultant exceed the limitations on the duty to defend and indemnify as set forth in Civil Code Sections 2782, 2782.6, and 2782.8.

7. INSURANCE
Consultant must submit and maintain in full force all insurance as described herein. Without altering or limiting Consultant's duty to indemnify, Consultant must maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

A. Commercial General Liability Insurance including but not limited to premises, personal injuries, bodily injuries, property damage, products, and completed operations, with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

B. Professional Liability Insurance with limits of not less than $1,000,000 per occurrence or claim and $2,000,000 in the aggregate. Consultant will have a policy for professional liability coverage that provides coverage on an occurrence basis or obtain extended reporting (tail) coverage (with the same liability limits) for at least three years following the City's acceptance of the work.

C. Automobile Liability Insurance covering all automobiles, including owned, leased, non-owned, and hired automobiles, used in providing Services under this Agreement, with a combined single limit of not less than $1,000,000 per occurrence.

D. Workers' Compensation Insurance. If Consultant employs others in the performance of this Agreement, Consultant must maintain Workers' Compensation insurance in accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence.

E. Other Insurance Requirements:
i. All insurance required under this Agreement must be written by an insurance company either:
a. admitted to do business in California with a current A.M. Best rating of no less than A:VI; or
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b. an insurance company with a current A.M. Best rating of no less than A:VII.

Exception may be made for the State Compensation Insurance Fund when not specifically rated.
ii. Each insurance policy required by this Agreement may not be canceled, except with prior written notice to the City.
iii. All liability and auto policies must:
a. Provide an endorsement naming the City of Carmel-by-the-Sea, its officers, officials, employees, and volunteers as additional insureds. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10 and CG 23 37 forms if later revisions used).
b. Provide that such Consultant’s insurance is primary as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Carmel-by-the-Sea is excess to the Consultant’s insurance and will not contribute with it.
c. Contain a “Separation of Insureds” provision substantially equivalent to that used in the ISO form CG 00 01 10 01 or their equivalent. d. Provide for a waiver of any subrogation rights against the City via an ISO CG 24 01 10 93 or its equivalent.
iv. Prior to the start of work under this Agreement, Consultant will file certificates of insurance and endorsements evidencing the coverage required by this Agreement with the City. Consultant will file a new or amended certificate of insurance promptly after any change is made in any insurance policy which would alter the information on the certificate then on file.
v. Neither the insurance requirements hereunder, nor acceptance or approval of Consultant’s insurance, nor whether any claims are covered under any insurance, may in any way modify or change Consultant’s obligations under the indemnification clause in this Agreement, which will continue in full force and effect. All coverage available to the Consultant as named insured will also be available and applicable to the additional insured. Notwithstanding these insurance requirements, Consultant is financially liable for its indemnity obligations under this Agreement.
vi. All policies must be written on a first dollar coverage basis or contain a deductible provision. Any deductibles or self-insured retentions (“SIR”) must be declared to and approved by the City. At the option of the City, either: the insured will reduce or eliminate such deductibles or SIR as respects the City, its officers, officials, employees and volunteers; or Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. In no event will any SIR or insurance policy contain language, whether 10 Attachment 2
added by endorsement or contained in the policy conditions, that prohibits satisfaction of any self-insured provision or requirement by anyone other than the named insured, or by any means including other insurance, or which is intended to defeat the intent or protection of an additional insured.
vii. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. viii. Consultant must require and verify that all subconsultants and subcontractors maintain insurance meeting all the requirements in this Agreement. ix. If Consultant, for any reason, fails to have in place at all times during the term of this Agreement all of the required insurance coverage, the City may, but is not obligated to, obtain such coverage at Consultant’s expense and deduct the cost from the sums due Consultant. Alternatively, City may terminate the Agreement. x. The existence of the required insurance coverage under this Agreement will not be deemed to satisfy or limit Consultant’s indemnity obligations under this Agreement.

Consultant acknowledges that the insurance coverage and policy limits set forth in this Agreement constitute the minimum coverage and policy limits required. Should any coverage carried by the Consultant or any subcontractor of any tier have limits of liability that exceed the limits or have broader coverage than required in this Agreement, those higher limits and that broader coverage are deemed to apply for the benefit of any person or organization included as an additional insured and those limits and broader coverage will become the required minimum limits and insurance coverage in all sections of this Agreement. Any insurance proceeds available to City in excess of the limits and coverages required by this Agreement, and which is applicable to a given loss, must be made available to City to compensate it for such losses. xi. Consultant must give City prompt notice of claims made of lawsuits initiated that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability insurance policies. xii. The Consultant hereby waives any right of subrogation that any of its insurers may have or that they may accrue out of the payment of any claim related to the Consultant’s performance of this Agreement, regardless of whether any endorsements required by this section are obtained.

8. PERFORMANCE STANDARDS
A. Consultant warrants that Consultant and Consultant’s agents, employees, and subconsultants performing Services under this Agreement are specially trained, experienced, and competent and have the degree of specialized expertise contemplated within California Government Code Section 37103, and further, are appropriately licensed to perform the work and deliver the Services required under this Agreement.

B. Consultant, its agents, employees, and subconsultants must perform all Services in a safe and skillful manner consistent with the usual and customary standards of care, diligence and skill 11 Attachment 2
ordinarily exercised by professional consultants in similar fields in accordance with sound professional practices. All work products of Consultant must comply with all applicable laws, rules, regulations, ordinances and codes. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and will advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. All Services performed under this Agreement that are required by law to be performed or supervised by licensed personnel must be performed in accordance with such licensing requirements.

C. Consultant must furnish, at its own expense, all materials, equipment and personnel necessary to carry out the terms of this Agreement. Consultant may not use the City premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

D. Consultant agrees to perform all work under this Agreement to the satisfaction of City and as specified herein. The City’s Project Representative or his or her designee will evaluate the work. If the quality of work is not satisfactory, City in its discretion may meet with Consultant to review the quality of work and resolve the matters of concern, and may require Consultant to repeat the work at no additional fee until it is satisfactory.

9. CITY INFORMATION AND RESOURCES
A. Available Information. The City will make available to Consultant all relevant information, plans, maps, reports, specifications, standards and pertinent data which is in the hands of the City and is required by Consultant to perform the Services. Consultant may rely upon the accuracy and completeness of such information and data furnished by the City, except where it is stated otherwise or unreasonable.

B. City Resources. The City acknowledges that Consultant’s ability to provide the Services in accordance with this Agreement may be dependent on the City providing available information and resources in a prompt and timely manner as reasonably required by Consultant. To the extent that the City fails to provide City resources, Consultant will not be liable for any resulting delay in the Services or failure to meet the Project Schedule, but in no event will such delay or failure to provide City resources constitute a breach of this Agreement by the City, nor will Consultant be entitled to extra compensation for same. Consultant’s sole remedy shall be an extension of time to complete the Scope of Services.

C. Obligations of Consultant. No reviews, approvals, or inspections carried out or supplied by the City will derogate from the duties and obligations of Consultant, and all responsibility related to performance of the Services will be and remain with Consultant.

10. OWNERSHIP AND USE OF MATERIALS
A. Ownership of the Materials. All data, studies, reports, calculations, field notes, sketches, designs, drawings, plans, specifications, cost estimates, manuals, correspondence, agendas, minutes, notes, audio-visual materials, photographs, models, software data, computer software (if purchased on the City’s behalf) and other documents or products produced by Consultant under this Agreement (collectively, “the Materials”) are and will remain the property of the City even though Consultant or another party may have physical possession of 12 Attachment 2
them or a portion thereof. Consultant hereby waives, in favor of the City, any moral rights Consultant, its employees, subconsultants, vendors, successors or assignees may have in the Materials.

B. No Patent or Copyright Infringement. Consultant guarantees that in its creation of the Materials produced under this Agreement, no federal or state patent or copyright laws were violated. Consultant agrees that all copyrights, which arise from creation of the work or Services pursuant to this Agreement, will be vested in the City and waives and relinquishes all claims to copyright or intellectual property rights in favor of the City. Consultant covenants that it will defend, indemnify and hold City harmless from any claim or legal action brought against the City for alleged infringement of any patent or copyright related to City’s use of Materials produced by Consultant and its employees, agents and subconsultants under this Agreement.

C. Delivery and Use of the Materials. All Materials will be transferred and delivered by Consultant to the City without further compensation following the expiration or sooner termination of this Agreement, provided that the City may, at any time prior to the expiration or earlier termination of this Agreement, give written notice to Consultant requesting delivery by Consultant to the City of all or any part of the Materials in which event Consultant must forthwith comply with such request. The Materials created electronically must be submitted in a format and medium acceptable to the City. The Materials may be used by the City in any manner for the intended purpose or as part of its operations associated with the Materials.

D. Survival of Ownership and Use Provisions. The provisions contained in Section 10, Ownership and Use of Materials survives the expiration or earlier termination of this Agreement, and that this Section is severable for such purpose.

E. Additional Copies. If the City requires additional copies of reports, or any other material that Consultant is required to furnish as part of the Services under this Agreement, Consultant must provide such additional copies, and the City will compensate Consultant for the actual costs related to the production of such copies by Consultant.

11. CONFIDENTIALITY
A. No Disclosure. Consultant must keep confidential and may not disclose, publish or release any information, data, or confidential information of the City to any person other than representatives of the City duly designated for that purpose in writing by the City. Consultant may not use for Consultant’s own purposes, or for any purpose other than those of the City, any information, data, or confidential information Consultant may acquire as a result of the performance of the Services under this Agreement. Consultant must promptly transmit to the City any and all requests for disclosure of any such confidential information or records. The obligations under this Section will survive the expiration or earlier termination of this Agreement.

B. California Public Records Act. Consultant acknowledges that the City is subject to the California Public Records Act (Government Code Section 6250 et seq.), known as the “PRA”, and agrees to any disclosure of information by the City as required by law. Consultant further acknowledges that it may have access to personal information as defined under the PRA, and Consultant will not use any such personal information for any purposes other than for the 13 Attachment 2
performance of Services under this Agreement without the advance written approval of the City.

All Scopes of Services and related documents received will be public records, with the exception of those elements, identified by the Consultant as business trade secrets and are plainly marked “Trade Secret”, “Confidential” or “Proprietary”. If disclosure is required under the PRA or otherwise by law, the City will not be liable or responsible for the disclosure of any such records and the Consultant will indemnify, defend, and hold the City harmless for any such disclosure.

12. CONFLICT OF INTEREST
Consultant covenants that neither Consultant, nor any officer, principal or employee of its firm, has or will acquire any interest, directly or indirectly, that would conflict in any manner with the interests of City relating to this Agreement or that would in any way hinder Consultant’s performance of services under this Agreement. Consultant’s attention is directed to the conflict of interest rules applicable to governmental decision-making contained in the Political Reform Act (California Government Code Section 87100 and following) and its implementing regulations (California Code of Regulations, Title 2, Section 18700 et seq.), and California Government Code section 1090.

Consultant is required to file a Form 700 in compliance with the City’s Conflict of Interest Code unless a written determination by the City Administrator is made modifying or eliminating said requirement, or unless otherwise exempted by law.

In addition, Consultant, Consultant’s employees, and subconsultants agree as follows:

A. That they will conduct their duties related to this Agreement with impartiality, and must, if they exercise discretionary authority over others in the course of those duties, disqualify themselves from dealing with anyone with whom a relationship between them could bring the impartiality of Consultant or its employees into question; B. May not influence, seek to influence, or otherwise take part in a decision of the City knowing that the decision may further their private interests;
C. May not accept any commission, discount, allowance, payment, gift, or other benefit connected, directly or indirectly, with the performance of Services related to this Agreement, that causes, or would appear to cause, a conflict of interest; D. May have no financial interest in the business of a third party that causes, or would appear to cause, a conflict of interest in connection with the performance of the Services related to this Agreement, and if such financial interest is acquired during the term of this Agreement, Consultant must promptly declare it to the City, and;
E. May not, during the term of this Agreement, perform a service for, or provide advice to, any person, firm, or corporation, which gives rise to a conflict of interest between the obligations of Consultant under this Agreement and the obligations of Consultant to such other person, firm or corporation.
14 Attachment 2

13. DISPUTE RESOLUTION
A. Dispute Resolution Procedures. The parties will make reasonable efforts to promptly resolve any dispute, claim, or controversy arising out of or related to this Agreement (“Dispute”) using the Dispute Resolution Procedures set forth in this Section.

B. Negotiations. First, the City’s Project Representative and Consultant’s Project Manager will make reasonable efforts to resolve any Dispute by amicable negotiations and will provide frank, candid, and timely disclosure of all relevant facts, information, and documents to facilitate negotiations. Should these negotiations be unsuccessful in resolving the Dispute, the matter will be promptly referred to the City Administrator or designee, and the Consultant’s Principal, who will meet and confer, in good faith, to resolve the Dispute to mutual satisfaction of the parties.

C. Mediation. If all or any portion of a Dispute cannot be resolved by good faith negotiations as set forth above within thirty (30) days of the date that the matter was referred to the City Administrator pursuant to subsection B above, either party may, by notice to the other party, submit the Dispute for formal mediation to a mediator selected mutually by the parties from the Monterey Superior Court’s Court-Directed Mediator Panel list. The duration of any such mediation may not exceed 2 hours unless otherwise agreed to by the parties. The cost of the mediation (including fees of mediators) will be borne equally by the parties, and each party will bear its own costs of participating in mediation. The mediation will take place within or in close proximity to the City of Carmel-by-the-Sea.

In any mediation conducted pursuant to this section, the provisions of California Evidence Code section 1152 will be applicable to limit the admissibility of evidence disclosed by the parties in the course of the mediation. In the event the parties are unsuccessful in resolving the dispute through the mediation process, then the parties agree that the dispute will be submitted to Binding Arbitration to a single Arbitrator in accordance with the existing Rules of Practice and Procedure of the Judicial Arbitration and Mediation Services, Inc. (JAMS) within thirty (30) days of the close of mediation as declared by the mediator.

D. Arbitration. The submission to Mediation and Arbitration in accordance with the requirements of this section of any and all agreements, differences, or controversies that may arise hereunder is made a condition precedent to the institution of any action or appeal at law or in equity with respect to the controversy involved. The award by the arbitrator will have the same force and effect and may be filed and entered, as a judgment of the Superior Court of the State of California and is subject to appellate review upon the same terms and conditions as the law permits for judgments of Superior Courts. A “Prevailing Party” will be determined in the Arbitration, and the prevailing party will be entitled to reasonable attorney’s fees and costs incurred, and accrued interest on any unpaid balance that may be due. Costs will include the cost of any expert employed in the preparation or presentation of any evidence. All costs incurred and reasonable attorney fees will be considered costs recoverable in that proceeding, and be included in any award.

14. TERMINATION OF AGREEMENT
15 Attachment 2
A. Termination for Cause or Default. The City reserves the right to immediately terminate this Agreement, in whole or in part, if Consultant or any subconsultant defaults or fails to deliver the Services in accordance with the terms and conditions of this Agreement. Such termination must be in writing, setting forth the effective date of termination, and will not result in any penalty or other charges to the City, and may be issued without any prior notice. Without limitation, Consultant is in default of its obligations contained in this Agreement if Consultant, or any subconsultant:
i. Fails to perform the required Services within the term and/or in the manner provided under this Agreement;
ii. Fails to supply sufficient, properly skilled workers or proper workmanship, products, material, tools and equipment to perform the Services;
iii. Fails to observe or comply with all laws, ordinances, including all requirements of governmental or quasi-governmental authorities, including federal, state, and local government enactments, bylaws, and other regulations now or, following the date of this Agreement, in force that pertain to;
iv. Fails to observe or comply with the City’s reasonable instructions; v. Breaches the Conflict of Interest provisions of this Agreement; or vi. Otherwise violates any provision of this Agreement.

B. Termination for Convenience. The City may, at its option and sole discretion, terminate this Agreement, in whole or in part, with or without cause, at any time during the Agreement Term for the convenience of the City, upon ten (10) days written notice to the Consultant.

C. Steps after Termination:
i. Upon termination of this Agreement by the City for any reason, the City will pay Consultant for satisfactorily performed Services and disbursements incurred by Consultant to the date of termination pursuant to this Agreement, less any amounts necessary to compensate the City for damages or costs incurred by the City arising from Consultant’s default. Termination will be without prejudice to any other rights or remedies the City may have.
ii. Upon receipt of written notice of termination of this Agreement by the City for any reason, Consultant must:
a. Promptly cease all Services, including Services provided by any subconsultant, unless otherwise directed by the City; and
b. Deliver to the City all the Materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such Materials are to be delivered to the City in completed form; however, notwithstanding the provisions of Section 10, Ownership and Use of Materials, herein, the City may 16 Attachment 2
condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such Materials.
iii. If this Agreement is terminated by the City for any reason, the City is hereby expressly permitted to assume the projects and Services, and to complete them by any means including, but not limited to, an agreement with another party.

15. LEGAL ACTION / VENUE
A. Should either party to this Agreement bring legal action against the other, the validity, interpretation and performance of this Agreement will be controlled by and construed under the laws of the State of California, excluding California’s choice of law rules.

B. Venue for any such action relating to this Agreement will be in Monterey County.

C. If any legal action or proceeding, including action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with this Agreement, the prevailing party may recover reasonable attorneys’ fees as may be determined by the Arbitrator, experts’ fees, and other costs, in addition to any other relief to which the party may be entitled.

16. MISCELLANEOUS PROVISIONS
A. Non-discrimination. During the performance of this Agreement, Consultant, and its subconsultants, may not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age, or sexual orientation, either in Consultant’s employment practices or in the furnishing of services to recipients. Consultant further acknowledges that harassment in the workplace is not permitted in any form, and will take all necessary actions to prevent such conduct.

B. Acceptance of Services Not a Release. Acceptance by the City of the Services to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the Services performed.

C. Force Majeure. Either party is absolved from its obligation under this Agreement when and to the extent that performance is delayed or prevented, and in the City’s case, when and to the extent that its need for vehicles, materials, or Services to be supplied hereunder are reduced or eliminated by any course, except financial, for reasons beyond its control. Such reasons include, but are not limited to: earthquake, flood, epidemic, fire, explosion, war, civil disorder, act of God or of the public enemy, act of federal, state or local government, or delay in transportation to the extent that they are not caused by the party’s willful or negligent acts or omissions, and to the extent that they are beyond the party’s reasonable control.

D. Headings. The headings do not govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement. The headings are for convenience only. 17 Attachment 2
E. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitutes the entire agreement between the parties hereto with respect to the terms, conditions, and Services and supersedes any and all prior proposals, understandings, communications, representations and agreements, whether oral or written, relating to the subject matter thereof pursuant to Section 1B, “Change Order of Services”. Any Change Order to this Agreement will be effective only if it is in writing signed by both parties hereto and will prevail over any other provision of this Agreement in the event of inconsistency between them.

F. Conflict between Agreement and Exhibits. In the event of a conflict between a provision in this Agreement and a provision in an Exhibit attached to this Agreement, the provisions in this Agreement will take precedence.

G. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and may be signed in counterparts, but all of which together will constitute one and the same Agreement.

H. Multiple Copies of Agreement. Multiple copies of this Agreement may be executed, but the parties agree that the Agreement on file in the office of the City’s City Clerk is the version of the Agreement that governs should any difference exist among counterparts of this Agreement.

I. Authority. Any individual executing this Agreement on behalf of the City or Consultant represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

J. Severability. If any of the provisions contained in this Agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired thereby.

Limitations of liability and indemnities will survive termination of the Agreement for any cause.

If a part of the Agreement is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

K. Non-exclusive Agreement. This Agreement is non-exclusive and both the City and Consultant expressly reserve the right to enter into agreements with other Consultants for the same or similar services, or may have its own employees perform the same or similar services.

L. Assignment of Interest. The duties under this Agreement are not assignable, delegable, or transferable without the prior written consent of the City. Any such purported assignment, delegation, or transfer constitutes a material breach of this Agreement upon which the City may terminate this Agreement and be entitled to damages.

M. City Business License. Prior to receiving a Notice to Proceed from the City, Consultant will obtain and maintain a valid City of Carmel-by-the-Sea Business License for the duration of the Agreement. Costs associated with the license are the responsibility of Consultant.

N. Laws. Consultant agrees that in the performance of this Agreement it will comply with all applicable federal, state and local laws and regulations. This Agreement will be governed by 18 Attachment 2
and construed in accordance with the laws of the State of California and the City of Carmel-by-the-Sea.

IN WITNESS WHEREOF, the parties enter into this Agreement hereto on the day and year first above written in Carmel-by-the-Sea, California.

CITY OF CARMEL-BY-THE-SEA CONSULTANT
Chip Rerig, City Administrator Consultant Signature
Date Printed Name Date
Title
Consultant Legal Company Name
APPROVED AS TO FORM:

By: _______________________________ Date: ______________________ Brian Pierik, Esq., City Attorney
ATTEST:

By: _________________________________ Date: ______________________ Nova Romero, MMC, City Clerk
Exhibit “A” – SCOPE OF SERVICES
Exhibit “B” – KEY PERSONNEL AND FEE SCHEDULE
Exhibit “C” – COMPENSATION
Exhibit “D” – PROJECT SCHEDULE
Exhibit “E” – REQUIRED MINIMUM COLLECTION ATTRIBUTES FOR CAL FIRE GRANT FUNDED TREE

INVENTORIES
19 Attachment 2
EXHIBIT A – SCOPE OF SERVICES

1. PROJECT DESCRIPTION
A. In order to develop an Urban Forestry Master Plan (UFMP) and Priority Planting Plan, an inventory of City trees will be conducted, which will be used to identify tree maintenance priority, cycles and funding. The project area includes the entire City of Carmel-by-the-Sea.

B. The objective is to improve the health of the urban forest thereby improving the safety and quality of life for visitors and the residents of Carmel by providing them with the benefits a healthy urban forest contributes to quality life through carbon sequestration, air quality and other environmental improvements.

C. The UFMP will be led by a science-based, community-driven process. The UFMP will identify a fifty (50) year timeline to enhance the urban forest with meaningful and achievable goals. The plan will identify a long-term canopy goal. Components of the plan will include an analysis of the current condition of the urban forest, including management methods and stakeholder opinions.

D. In the end, the UFMP will reflect the will of the community and will be written in a way to be understood by the average person. Additionally, it will present a comprehensive set of actions and user-friendly guides for the City to achieve its immediate and long-term urban forestry goals.

2. PROJECT PHASES
A. Phase 1: Kickoff meeting, Design/Style Guide Development, Inventory Collection, GIS Land Cover Mapping/Analysis, Background Review, Operations Review, Working Group Meetings, UFMP Draft 1.

B. Phase 2: Priority Planting Plan, i-Tree Eco Analysis, Tree Canopy & Land Cover Summary Report.
a. If approved as a Supplemental Service: Ordinance Review/Redline, Review/Update Tree Palette.

C. Phase 3: Stakeholder Interviews, Community Presentation, Online Survey.

D. Phase 4: Client Review Draft 1, UFMP Draft 2, UFMP Editing, UFMP Layout.

E. Phase 5: Client Review Draft 2.
a. If approved as a Supplemental Service: Community Presentation #2.

F. Phase 6: UFMP Final.

G. Refer to Exhibit “D” for Estimated Project Schedule. 20 Attachment 2

3. TASK DESCRIPTIONS
Task 1. Consultant will perform a new tree inventory for all 6,000+ City-maintained right of way, facility, and parks trees. If approved as a Supplemental Service, Consultant will collect data on up to 4,000 additional trees. The data will be collected and/or reviewed using International Society of Arboriculture (ISA) Arborists, and Global Positioning Satellite technology with sub-meter accuracy. The detailed requirements and specifications for the inventory services are provided in Exhibit “E” - Required Minimum Collection Attributes for CAL FIRE Grant Funded Tree Inventories. The tree inventory data shall be geo-coded into a GIS database and delivered as a new layer in the City's TreeKeeper system.

Task 2. Consultant will plan and coordinate a Project Kickoff Meeting with the City Project Manager and staff team to establish goals, objectives, strategies, needs and timelines for the project. Consultant will meet via video conference call on a monthly basis with City staff to review the Scope of Work, desired deliverables, schedules, findings and recommendations, and clarify criteria for documenting and developing the UFMP. Discussions may include community engagement strategies and collaboration around the City’s concurrent neighborhood tree planting efforts.

Task 3. Consultant shall use i-Tree to evaluate the composition and economic value of Carmel’s urban forest and the cost-benefit of strategic investment in trees and their care.

The analysis will also focus on determination of the value of City trees in terms of species frequency, relative age, overall condition, CO2 sequestration and replacement value. City has a subscription to TreeKeeper software; Consultant will add a layer for the 2022 tree inventory data. City to pay subscription directly.

Consultant will assess the current status of the City’s urban forest and conduct a canopy analysis to support a determination for tree canopy goals within the City that meet goals for urban forest health, equity, and related watershed and community benefits, identify tree care and maintenance best practices, yearly tree plantings, community involvement opportunities, related policies, and procedures, and develop a comprehensive tree species list for use for future tree plantings within the City. If approved as a Supplemental Service, Consultant will develop a Tree Guide resource specific to the City of Carmel-by-the-Sea. The UFMP will include a plan or comprehensive set of objectives, and actions for achieving the desired urban forestry goals.

An Urban Forest GIS Canopy Resource Assessment & Analysis will be conducted as part of the UFMP fact-finding effort. The canopy and land cover assessment will include: GIS Tree Canopy and Land Cover Mapping (canopy, impervious, low-lying vegetation, bare soils, open water), GIS Analysis/Metrics, Ecosystem Services (air pollution/carbon), Stormwater Analysis (pollution assessment), Relative Tree Health Analysis, Priority Planting Plan w/Tree Placement Model, Maps, and a Tree Canopy & Land Cover Summary Report. Consultant will review and provide recommendations to update the City tree planting list.

Task 4. Consultant will prepare and deliver one (1) in-person community presentations/workshops and two (2) in-person presentations to the Forest and Beach 21 Attachment 2
Commission. If approved as a Supplemental Service, additional presentations/workshops can be scheduled if desired by the City. Within the workshops, tree inventory outcomes and the UTC assessment will be shared. Community participants will be invited to contribute comments and input by way of an online survey. All comments will be recorded and considered within the development of the UFMP.

Task 5. Consultant will prepare a draft UFMP for City review and receive City approval prior to proceeding. The consultant will develop an 85% draft for review and feedback, a second fully formatted (95%) draft and a 100% final draft UFMP for review and adoption by the City Council. The final Urban Forest Management and Priority Planting Plan will be delivered as a printable/hardcopy document to the City and posted on the City’s website.

Task 6. Supplemental Services:
a. Update Tree List: Review/Update Tree Palette
i. If approved as a Supplemental Service, Consultant will recommend new tree species and cultivars that should be introduced to Carmel's urban forest to increase diversity and climate change resiliency. Consultant will develop a process to identify over time which species will thrive and are suitable for this area. Consultant shall also recommend which species need to be removed from the list, either due to failure to thrive or due to a current over-representation in the tree palette. The updated recommended Tree List will be easy to understand for all stakeholders. It shall also categorize trees according to water use and classify as native, near native or ornamental, as well as other useful parameters. b. Ordinance Review - Redline Recommendations:
i. If approved as a Supplemental Service, Consultant will conduct a review of the City’s Tree Ordinance, and other municipal codes, and an Operations Review of maintenance policies/practices, funding, staffing, and equipment. Consultant will provide recommended (redline) adjustments to the City’s Tree Ordinance to improve the clarity, effectiveness, and efficiency for the City’s urban forestry program. c. Additional community presentation
d. Additional tree inventory of 4,000 trees
e. Tree Guide
f. Additional on-site presentations
g. TreeKeeper Subscription, 5 years
h. Consultant collaborates with City staff to integrate concurrent grant project efforts in the delivery of their services.
22 Attachment 2
EXHIBIT B – KEY PERSONNEL & FEE SCHEDULE
23 Attachment 2
EXHIBIT C – CONSULTANT’S COMPENSATION
Task Item Task Hours Task Budget Total Budget
1 Tree Inventory 410 $51,055
6,000 trees - inventory collection (estimated in grant application) 410 $51,055 2 Background and Operations Review 284 $33,857
Kickoff Meeting (virtual) - including prep/follow up 23 $2,520 Working Group meetings (virtual) - monthly (12) 35 $3,960 Background Review (regulations, policies, guiding docs) 60 $6,000 Operations Review (maintenance policies/practices, funding, staffing, etc.) 50 $5,300
Stakeholder interviews (on site) - up to 15, including prep/analysis 70 $10,577 PM/Administration, including status update calls/reports) 46 $5,500 3 Resource Assessment & Analysis 218 $24,886
i-Tree Eco Analysis 62 $6,932
GIS Tree Canopy and Land Cover Mapping 25 $2,941
GIS Analysis/Metrics 7 $882
Ecosystem Services (air pollution/carbon) 7 $882
Stormwater Analysis (pollution assessment) 7 $882
Relative Tree Health Analysis 7 $882
Priority Planting Plan w/Tree Placement Model 29 $3,529 Maps 10 $1,176
Tree Canopy & Land Cover Summary Report 64 $6,780
24 Attachment 2
4 Community Engagement 66 $8,386
Community Presentation/Workshop (on site) - plan input, including prep/analysis 36 $4,926
Online Survey - including development, monitoring, analysis) 30 $3,460 5 UFMP Development 294 $30,405
UFMP Draft 1 - 85% (unformatted) 124 $15,120
UFMP Draft 2 - 95% (formatted) 66 $8,080
Final UFMP 28 $3,440
Design/Style Guide 12 $588
Editing 16 $824
Layout 48 $2,353
Contingency $1,411
Total 1,272 $150,000
Supplemental Services Budget $10,000
6 Supplemental Services, only upon prior written authorization 456 Update Tree List - Review/Update Tree Palette 64 $6,520 Ordinance Review - redlined recommendations 55 $5,780
2nd Community Presentation/Workshop (on site) - present outcomes, including prep 36 $4,926
(Additional) tree inventory of 4,000 trees 211 $28,550
Tree Guide 70 $4,400
Presentation (on site) - each 20 $2,683
TreeKeeper Subscription - 5 years - $10,000
25 Attachment 2
EXHIBIT D – ESTIMATED PROJECT SCHEDULE, IN MONTHS
26 Attachment 2
EXHIBIT E –

REQUIRED MINIMUM COLLECTION ATTRIBUTES FOR CAL FIRE GRANT FUNDED TREE INVENTORIES

1. Mapping coordinates. X and Y coordinate locations (latitude and longitude). Each tree and planting site will be located using GIS and/or GPS equipment.

2. Block side. The location of each street tree and planting site so that they can easily be identified for future work. Street trees and planting sites will be located using a street name, side of lot, tree number, and block side information (on street, from street, and to street).

3. Location. The tree’s physical location in relation to public Right of Way and/or public space will be recorded.

4. Species. Trees will be identified by genus and species, and by common name.

5. Diameter. Tree trunk diameter will be recorded. This should be to the nearest 1- inch.

6. Stems. The number of stems a tree has will be recorded.

7. Condition. In general, the condition of each tree will be recorded in one of the following categories adapted from the rating system established by the International Society of Arboriculture:
a. Excellent 100%
b. Very Good 90%
c. Good 80%
d. Fair 60%
e. Poor 40%
f. Critical 20%
g. Dead 0%

8. Maintenance needed. The following maintenance categories (or similar approved by CAL FIRE prior to collection) will be collected:
a. Priority 1 Removal. Trees designated for removal have defects that cannot be costeffectively or practically treated. The majority of the trees in this category will have a large percentage of dead crown, and pose an elevated level of risk for failure. Any hazards that could be seen as potential dangers to persons or property and seen as potential liabilities would be in this category. Large dead and dying trees that are high liability risks are included in this category. These trees are the first ones that should be removed.
b. Priority 2 Removal. Trees that should be removed but do not pose a liability as great as the first priority will be identified here. This category would need attention as soon as “Priority One” trees are removed.
c. Priority 3 Removal. Trees that should be removed, but that pose minimal liability to persons or property, will be identified in this category. 27 Attachment 2
d. Priority 1 Prune. Trees that require priority one pruning are recommended for trimming to remove hazardous deadwood, hangers, or broken branches. These trees have broken or hanging limbs, hazardous deadwood, and dead, dying, or diseased limbs or leaders greater than four inches in diameter.
e. Priority 2 Prune. These trees have dead, dying, diseased, or weakened branches between two and four inches in diameter and are potential safety hazards. f. Large Tree Routine Prune. These trees require routine horticultural pruning to correct structural problems or growth patterns, which would eventually obstruct traffic or interfere with utility wires or buildings. Trees in this category are large enough to require bucket truck access or manual climbing.
g. Small Tree Routine Prune. These trees require routine horticultural pruning to correct structural problems or growth patterns, which would eventually obstruct traffic or interfere with utility wires or buildings. These trees are small growing, mature trees that can be evaluated and pruned from the ground.
h. Training Prune. Young, large-growing trees that are still small must be pruned to correct or eliminate weak, interfering, or objectionable branches in order to minimize future maintenance requirements. These trees, up to 20 feet in height, can be worked with a pole-pruner by a person standing on the ground.
i. Stump Removal. This category indicates a stump that should be removed. j. Plant Tree. During the inventory, vacant planting sites will be identified by street and address. The size of the site is designated as small, medium, or large (indicating the ultimate size that the tree will attain), depending on the growing space available and the presence of overhead wires.

9. Clearance Required. Trees, which are causing or may cause visibility or clearance difficulties for pedestrians or vehicles, will be identified, as well as those trees blocking clear visibility of signs or traffic signals.

10. Hardscape Damage. Damage to sidewalks and curbs by tree roots are noted. Notes on potential fixes for the problem are encouraged (redesign options etc.…)

11. Overhead Utilities. The inventory indicates whether overhead conductors or other utilities are present at the tree site that could result in conflicts with the tree.

12. Grow space. The area within the growing space is categorized as:

T Tree Lawn
W Well/Pit
M Median
P Raised Planter
O Open/Unrestricted
I Island
U Unmaintained Area
28 Attachment 2

13. Space Size. The narrowest dimension of the Grow Space, in feet. (I.e., 3’x3’ cut-out, 4’ parkway strip, open parkland, etc.)

14. Notes. Additional information regarding disease, insects, mechanical damage, etc. can be included in this field.
29 Attachment 2
Attachment 3
Attachment 3
Attachment 3

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Community Planning & Building Director APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2022-069 authorizing the City Administrator to execute a change order to the existing agreement with CSG Consultants, Inc. for on-call building and code compliance services increasing the not to exceed amount from $200,000 to $240,000 per the adopted FY2022-2023 Budget, and extending the term to June 30, 2023 RECOMMENDATION:

Approve Resolution 2022-069 authorizing the City Administrator to execute a change order to the agreement with CSG Consultants, Inc. for on-call building and code compliance services increasing the not to exceed amount from $200,000 to $240,000 per the adopted FY2022-2023 Budget, and extending the term to June 30, 2023.

BACKGROUND/SUMMARY:

The City Administrator executed an agreement on July 1, 2019 with CSG Consultants, Inc. (CSG) for oncall building services for a not-to-exceed amount of $10,000 for the term of July 1, 2019 to June 30, 2020.

On July 13, 2020, the City Administrator executed an amendment to the agreement with CSG to increase the not-to-exceed amount to $24,999 and extend the term to July 1, 2020 through June 30, 2022. On November 1, 2021, City Council authorized the City Administrator to execute an agreement with CSG increasing the contract value to a not to exceed amount of $200,000.

Carmel Municipal Code requires Council to approve all contracts with a value of $25,000 or more by resolution. The purpose of this agenda item is to authorize the City Administrator to approve a change order to the existing agreement with CSG that: (1) Increases the not to exceed amount by $40,000, from $200,000 to $240,000; (2) extends the term of the agreement through the current fiscal year, with an expiration of June 30, 2023. With the Building Department once again fully staffed, this increase is intended to allow for CSG to perform plan check reviews which require technical knowledge not available on staff.

The vast majority of “typical” building plan checks are now being handled in-house.

FISCAL IMPACT:

The adopted FY 2022-2023 Budget for Community Planning and Building includes $40,000 for CSG to perform building plan check services, so no budget amendments are required for this action.

PRIOR CITY COUNCIL ACTION:

ATTACHMENTS:

Attachment 1) Resolution 2022-069
Attachment 2) Professional Services Agreement with CSG

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-069

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A CHANGE ORDER TO THE EXISTING AGREEMENT WITH CSG CONSULTANTS, INC. FOR ON-CALL BUILDING AND

CODE COMPLIANCE SERVICES INCREASING THE NOT TO EXCEED AMOUNT FROM $200,000 TO $240,000 PER THE ADOPTED FY2022-2023 BUDGET, AND EXTENDING THE TERM TO JUNE 30, 2023.

WHEREAS, the City of Carmel-by-the-Sea (City) currently utilizes CSG Consultants, Inc. (CSG) to perform on-call building plan check under a Professional Services Agreement approved by Resolution No. 2021-067 on November 1, 2021; and
WHEREAS, the City’s Community Planning and Building Department wishes to continue to utilize CSG’s specialized knowledge and skills pertaining to building plan check review for certain types of technical projects; and
WHEREAS, CSG possesses the skills to perform these services; and WHEREAS, the Carmel Municipal Code requires Council to approve contracts with a value of $25,000 or more by resolution; and
WHEREAS, the adopted Fiscal Year 2022-2023 Budget for Community Planning and Building includes $40,000 for contract services to perform building plan check.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Authorize the City Administrator to execute a change order to the existing agreement with CSG Consultants, Inc. for on-call building and code compliance services increasing the not to exceed amount from $200,000 to $240,000 per the adopted FY2022-2023 Budget, and extending the term to June 30, 2023.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 2nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1
Resolution No. 2022-069

Page 2 ends

APPROVED: ATTEST:

Dave Potter Nova Romero
Mayor City Clerk
Attachment 1
Resolution No. 2022-069

Page 3 ends

EXHIBIT A
General Ledger Account
and Description
Purpose FY 2021-2022
Adopted Budget
Adjustment
Amount
FY 2021-2022
Amended
Budget
101-115-21-41001
General Fund
Expenditures
Community Planning and
Building Department:

Building Safety Division
Salaries
Use anticipated
salary savings and
transfer savings to
contract services
$301,440 $(65,000) $236,440
101-115-20-41001
General Fund
Expenditures
Community Planning and
Building Department:

Planning Division
Salaries
Use anticipated
salary savings and
transfer savings to
contract services
$641,364 $(36,010) $605,354
101-115-22-42001
General Fund
Expenditures
Community Planning and
Building Department:

Code Compliance Division
Contract Services
Use anticipated
code compliance
contract savings
and transfer to
Building Division
contract services
$49,000 $(38,000) $11,000
101-130-00-42503
General Fund
Expenditures
Non-Departmental:

Unfunded PERS Liability
Use interest
savings and
transfer to
Building Division
contract services
$2,833,526 $(60,990) $2,772,536
101-115-21-42001
General Fund
Expenditures
Community Planning and
Building Department
Buildings Safety Division
Contract Services
Increase contract
services budget
for costs of on-call
building plan
check services
$20,050 $200,000 $220,050
Attachment 1
1 PROFESSIONAL SERVICES AGREEMENT
On-Call Building and Code Enforcement Services
CSG Consultants, Inc.

THIS AGREEMENT is executed this ____ day of _____ 2022, by and between the City of Carmel-by-the-Sea, a municipal corporation, (hereinafter "City"), and CSG Consultants, Inc. (hereinafter "Consultant"), collectively referred to herein as the “parties”.

NOW, THEREFORE, in consideration of the terms and conditions herein contained, the parties hereby covenant and agree as follows:

1. SERVICES
A. Scope of Services. Consultant agrees to provide to the City, as the scope of services (“Scope of Services”) under this Agreement, the following: building plan check and code compliance on-call services. The Scope of Services is attached hereto as Exhibit “A.” Consultant agrees to all of the following:
i. Consultant will furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculations, and all other means whatsoever, except as otherwise expressly specified in this Agreement, necessary to perform the services required of Consultant under this Agreement.
ii. Consultant must make every reasonable effort to maintain the stability and continuity of Consultant’s key personnel and subcontractors, if any, to perform the services required under this Agreement. Consultant must notify City and obtain City’s written approval with respect of any changes in key personnel prior to the performance of any services by replacement personnel.
iii. Consultant must obtain City’s prior written approval before utilizing any subcontractors to perform any services under this Agreement. This written approval must include the identity of the subcontractor and the terms of compensation.
iv. Consultant represents that it has the qualifications, experience and facilities necessary to properly perform the services required under this Agreement in a thorough, competent and professional manner. Consultant will at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described in this Agreement. In meeting its obligations under this Agreement, Consultant must employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of Consultant under this Agreement.

Attachment 2
2 B. Change Orders.
i. Agreements and Change Orders exceeding $24,999 require City Council approval to be valid.
ii. The City may order changes to the Scope of Services, consisting of additions, deletions, or other revisions, and the compensation to be paid Consultant will be adjusted accordingly. All such changes must be authorized in writing, and executed by Consultant and City. The cost or credit to City resulting from changes in the services will be determined by the written agreement between the parties.

However, any increase in compensation beyond the compensation limit amount approved by the City Council must be authorized in advance by the City Council and any service provided by Consultant in the absence of such approval are at Consultant’s sole risk.
iii. Consultant will not be compensated for any services rendered in connection with its performance of this Agreement that are in addition to or outside of those set forth in the Scope of Services or otherwise required by this Agreement, unless such additional services are authorized in advance and in writing by City. iv. If Consultant believes that additional services are needed to complete the Scope of Services, Consultant will provide the City Administrator with written notification describing the proposed additional services, the reasons for such services, and a detailed proposal regarding cost.

C. Familiarity with Services and Site.
i. By executing this Agreement, Consultant represents that Consultant:
a. has thoroughly investigated and considered the Scope of Services to be performed;
b. has carefully considered how the services should be performed; c. understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement; and
d. possesses all licenses required under local, state or federal law to perform the services contemplated by this Agreement, and will maintain all required licenses during the performance of this Agreement.

2. COMPENSATION
A. Total Fee. Subject to any limitations set forth in this Agreement, the City agrees to pay and Consultant agrees to accept as full and fair consideration for the performance of this Agreement, fees as set forth in Consultant’s Fee Schedule (Exhibit “B”), in a total amount not-to-exceed Two Hundred Forty Thousand Dollars ($240,000.00). Such compensation is the “Maximum Authorized Expenditure” under this Agreement.

The Fee Schedule includes, but is not limited to, hourly rates, all-inclusive fees, reimbursable rates and subconsultant mark-up rates. The use of subconsultants will not be considered a reimbursable expense, and such costs must be applied towards the approved budgeted amount. Payment of any compensation to Consultant is contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If the City
Attachment 2
3 determines that the Services set forth in the written invoice have not performed in accordance with the terms of this Agreement, the City is not responsible for payment until the Services have been satisfactorily performed.

Consultant may not bill the City for duplicate services performed by more than one person. Consultant’s invoices must include, but are not limited to, the following information:
i. Invoice number and date;
ii. A brief description of services performed for each project phase and/or task; iii. For time and materials authorizations, the number of hours spent, by whom and their hourly rate for each phase, task and/or item, including the total amount and the costs incurred for reimbursable items as applicable; iv. The total amount due for the period covered by this invoice, including subconsultants and vendors of services or goods;
Any such invoices must be in full accord with any and all applicable provisions of this Agreement. The City will review each invoice submitted by Consultant to determine whether the work performed and expenses incurred are in compliance with this Agreement. In the event that no charges or expenses are disputed, the invoice will be approved and paid.

Except as to any charges for work performed or expenses incurred by Consultant that are disputed by City, the City will pay on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement. If any charges or expenses are disputed by City, the invoice will be returned by City to Consultant for correction and resubmission, and the City will not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. Payment to Consultant for services performed under this Agreement may not be deemed to waive any defects in the services performed by Consultant, even if such defects were known to City at the time of payment. City reserves the right to withhold future payment to Consultant if any aspect of the Consultant’s work is found to be non-conforming to the terms of this Agreement.

Attachment 2
4 D. Hourly Rates. Payment for all authorized services, including payment for authorized oncall, as-needed services, will be made by the City to Consultant in accordance with the various hourly rates and all-inclusive fees as set forth in the Consultant’s Fee Schedule (Exhibit “B”).

E. Audit and Examination of Accounts:
i. Consultant must keep and will cause any assignee or subconsultant under this Agreement to keep accurate books of records and accounts, in accordance with sound accounting principles, which pertain to services to be performed under this Agreement.
ii. Any audit conducted of books of records and accounts must be kept in accordance with generally accepted professional standards and guidelines for auditing. iii. Consultant must disclose and make available any and all information, reports, books of records or accounts pertaining to this Agreement to the City and any city of the County of Monterey, or other federal, state, regional or governmental agency which provides funding for these Services.
iv. Consultant must include the requirements of Section 2E, “Audit and Examination of Accounts”, in all contracts with assignees or subconsultants under this Agreement. v. All records provided for in this Section are to be maintained and made available throughout the performance of this Agreement and for a period of not less than four (4) years after full completion of the Services. All records, which pertain to actual disputes, litigation, appeals or claims, must be maintained and made available for a period of not less than four (4) years after final resolution of such disputes, litigation, appeals or claims.

F. On-Call Agreements. The amount of work (scope of services) to be requested during the Agreement term cannot be well defined at the outset. The Consultant agrees to perform the work on an on-call basis in such increments and at such times as defined in written work requirements issued by the City as the need arises. The Consultant agrees that the offer to perform the work at the various rates as set forth in the Consultant’s Fee Schedule (Exhibit “B”) remains in effect for all work requirements issued by the City during the Agreement term or until the exhaustion of the Agreement funding limit, whichever occurs first. The City does not guaranty a minimum dollar value of work.

3. AGREEMENT TERM
A. Term. The work under this Agreement will commence immediately upon signed approval by the City, and must be completed by June 30, 2023 unless sooner terminated or the City grants an extension of time in writing pursuant to the terms of this Agreement, except for provisions in this Agreement that will survive the termination or completion of this Agreement. Consultant will perform Change Order services as set out in Section 1.B, “Amendment of Services (Change Orders)”, in a timely manner or in accordance with the agreed upon Change Order Project Schedule.

B. Notice to Proceed. Upon execution of this Agreement by both parties and the receipt of all documentation required by this Agreement to be provided by Consultant to the City, including proof of insurance and tax identification numbers, the City will issue a written Attachment 2
5 Notice to Proceed to the Consultant. The City may, in its sole discretion, issue subsequent notices from time to time regarding further portions or phases of the work.

Upon receipt of such notices, Consultant will diligently proceed with the Services authorized and complete those Services within the agreed time specified in said notice.

Consultant will not proceed with any of the Services unless they have received a Notice to Proceed from the City.

4. CONSULTANT’S EMPLOYEES AND SUBCONSULTANTS
A. Substitution of Employees or Subconsultants: Whether or not the City consents to, or requests a substitution of any employee or subconsultant of Consultant, the City will not be liable to pay additional compensation to Consultant for any replacement or substitution.

B. Sub-agreements with Subconsultants. Consultant will incorporate the terms and conditions of this Agreement into all sub-agreements with subconsultants in respect of the Services necessary to preserve all rights of the City under this Agreement.

Consultant is fully responsible to the City of all acts and omissions of subconsultants and of persons employed by any subconsultant.

C. Not an Agent of the City. Nothing in this Agreement will be interpreted to render the City the agent, employer, or partner of Consultant, or the employer of anyone working for or subcontracted by Consultant, and Consultant must not do anything that would result in anyone working for or subcontracted by Consultant being considered an employee of the City. Consultant is not, and must not claim to be, an agent of the City.

D. Independent Contractor:
i. Consultant is an independent contractor. This Agreement does not create the relationship of employer and employee, a partnership, or a joint venture. The Consultant person is free from the control and direction of the City with the performance of the work. The City may not control or direct the details, means, methods or processes by which Consultant performs the Services. Consultant is responsible for performance of the Services and may not delegate or assign any Services to any other person except as provided for in this Agreement. Consultant is solely liable for the work quality and conditions of any partners, employees and subconsultants.
ii. No offer or obligation of permanent employment with the City or particular City department or agency is intended in any manner, and Consultant may not become entitled by virtue of this Agreement to receive from the City any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. Consultant will be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of Consultant’s performance of Services under this Agreement. Consultant will defend, indemnify and hold the City harmless from any and all liability, which the City may incur because of Consultant’s failure to pay such taxes.

5. REPRESENTATIVES AND COMMUNICATIONS
A. City’s Project Representative. The City appoints the individual named below as the City’s Project Representative for the purposes of this Agreement (“City’s Project Attachment 2
6 Representative”). The City may unilaterally change its project representative upon notice to Consultant.

Name: Brandon Swanson
Title: Community Planning and Building Director
Address: P.O. Box CC, Carmel-by-the-Sea, CA 93921
Telephone: 831.620.2024
Email: [email protected]
B. Consultant’s Project Manager. Consultant appoints the person named below as its Project Manager for the purposes of this Agreement (“Consultant’s Project Manager”).

Name: John LaTorra
Title: Regional Manager
Company: CSG Consultants, Inc.

Address: 550 Pilgrim Drive, Foster City, CA 94404
Telephone: 650.522.2500
Email: [email protected]
C. Meet and Confer. Consultant agrees to meet and confer with the City’s Project Representative, its agents or employees with regard to Services as may be required by the City to insure timely and adequate performance of this Agreement.

6. INDEMNIFICATION
Consultant hereby agrees to the following indemnification clause:

To the fullest extent permitted by law (including, without limitation, California Civil Code Sections 2782 and 2782.6), Consultant will defend (with legal counsel reasonably acceptable to the City), indemnify and hold harmless the City and its officers, designated agents, departments, officials, representatives and employees (collectively "Indemnitees") from and against claims, loss, cost, damage, injury expense and liability (including incidental and consequential damages, Court costs, reasonable attorneys' fees as may be determined by the Court, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, the negligence, recklessness, or willful misconduct of Consultant, any subconsultant or subcontractor, anyone directly or indirectly employed by them, or anyone that they control (collectively "Liabilities"). Such obligations to defend, hold harmless and indemnify any Indemnitee will not apply to the extent that such Liabilities are caused in part by the active negligence or willful misconduct of such Indemnitee.

Attachment 2
7 Notwithstanding the provisions of the above paragraph, Consultant agrees to indemnify and hold harmless the City from and against all claims, demands, defense costs, liability, expense, or damages arising out of or in connection with damage to or loss of any property belonging to Consultant or Consultant's employees, subconsultants, representatives, patrons, guests or invitees.

In no event will the obligation of the Consultant exceed the limitations on the duty to defend and indemnify as set forth in Civil Code Sections 2782, 2782.6, and 2782.8.

Further, Consultant will defend and indemnify City, and hold it harmless, from any claim, demand or liability that is related to, or results from an assertion that as a result of providing services to Agency, a Consultant employee or a person performing work pursuant to this agreement is entitled to benefits from, or is covered by, the Social Security retirement system or the California Public Employee Retirement Systems. Notwithstanding the foregoing, however, Consultant's obligation for any payments to such a claimant shall be limited to those payments which Agency may be required to pay.

The insurance required to be maintained by Consultant under this Agreement is intended to ensure Consultant's obligations under this section, but the limits of such insurance do not limit the liability of Consultant.

For purposes of this section, Consultant shall include Consultant's officers, directors, employees, agents, and subcontractors, and Agency shall include Agency's elected officials, appointed officials, officers, employees, and volunteers. These definitions shall not be interpreted to subject any Consultant officer, director, employee, agent or subcontractor to individual liability under this contract, nor shall it be interpreted to subject any City elected official, appointed official, officer, employee or volunteer to individual liability under this contract.

The provisions of this section shall survive the expiration or termination of this Agreement.

C. Automobile Liability Insurance covering all automobiles, including owned, leased, nonowned, and hired automobiles, used in providing Services under this Agreement, with a combined single limit of not less than $1,000,000 per occurrence.

D. Workers' Compensation Insurance. If Consultant employs others in the performance of this Agreement, Consultant must maintain Workers' Compensation insurance in Attachment 2
8 accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence.

E. Other Insurance Requirements:
i. All insurance required under this Agreement must be written by an insurance company either:
a. admitted to do business in California with a current A.M. Best rating of no less than A:VI; or
b. an insurance company with a current A.M. Best rating of no less than A:VII.

Exception may be made for the State Compensation Insurance Fund when not specifically rated.
ii. Each insurance policy required by this Agreement may not be canceled, except with prior written notice to the City.
iii. All liability and auto policies must:
a. Provide an endorsement naming the City of Carmel-by-the-Sea, its officers, officials, employees, and volunteers as additional insureds. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10 and CG 23 37 forms if later revisions used). b. Provide that such Consultant’s insurance is primary as respects the City, its officers, officials, employees, and volunteers. Any insurance or selfinsurance maintained by the City of Carmel-by-the-Sea is excess to the Consultant’s insurance and will not contribute with it. c. Contain a “Separation of Insureds” provision substantially equivalent to that used in the ISO form CG 00 01 10 01 or their equivalent. d. Provide for a waiver of any subrogation rights against the City via an ISO CG 24 01 10 93 or its equivalent.
iv. Prior to the start of work under this Agreement, Consultant will file certificates of insurance and endorsements evidencing the coverage required by this Agreement with the City. Consultant will file a new or amended certificate of insurance promptly after any change is made in any insurance policy which would alter the information on the certificate then on file.
v. Neither the insurance requirements hereunder, nor acceptance or approval of Consultant’s insurance, nor whether any claims are covered under any insurance, may in any way modify or change Consultant’s obligations under the indemnification clause in this Agreement, which will continue in full force and effect. All coverage available to the Consultant as named insured will also be available and applicable to the additional insured. Notwithstanding these insurance requirements, Consultant is financially liable for its indemnity obligations under this Agreement. vi. All policies must be written on a first dollar coverage basis or contain a deductible provision. Any deductibles or self-insured retentions (“SIR”) must be declared to and approved by the City. At the option of the City, either: the insured will reduce or eliminate such deductibles or SIR as respects the City, its officers, officials, employees and volunteers; or Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, Attachment 2
9 claim administration, and defense expenses. In no event will any SIR or insurance policy contain language, whether added by endorsement or contained in the policy conditions, that prohibits satisfaction of any self-insured provision or requirement by anyone other than the named insured, or by any means including other insurance, or which is intended to defeat the intent or protection of an additional insured. vii. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
viii. Consultant must require and verify that all subconsultants and subcontractors maintain insurance meeting all the requirements in this Agreement. ix. If Consultant, for any reason, fails to have in place at all times during the term of this Agreement all of the required insurance coverage, the City may, but is not obligated to, obtain such coverage at Consultant’s expense and deduct the cost from the sums due Consultant. Alternatively, City may terminate the Agreement. x. The existence of the required insurance coverage under this Agreement will not be deemed to satisfy or limit Consultant’s indemnity obligations under this Agreement.

Consultant acknowledges that the insurance coverage and policy limits set forth in this Agreement constitute the minimum coverage and policy limits required. Should any coverage carried by the Consultant or any subcontractor of any tier have limits of liability that exceed the limits or have broader coverage than required in this Agreement, those higher limits and that broader coverage are deemed to apply for the benefit of any person or organization included as an additional insured and those limits and broader coverage will become the required minimum limits and insurance coverage in all sections of this Agreement. Any insurance proceeds available to City in excess of the limits and coverages required by this Agreement, and which is applicable to a given loss, must be made available to City to compensate it for such losses.
xi. Consultant must give City prompt notice of claims made of lawsuits initiated that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability insurance policies. xii. The Consultant hereby waives any right of subrogation that any of its insurers may have or that they may accrue out of the payment of any claim related to the Consultant’s performance of this Agreement, regardless of whether any endorsements required by this section are obtained.

8. PERFORMANCE STANDARDS
A. All Building Plan Review Services shall be performed to the latest version of the California Building Standards Code adopted by the City of Carmel-by-the-Sea Municipal Code.

B. Consultant warrants that Consultant and Consultant’s agents, employees, and subconsultants performing Services under this Agreement are specially trained, experienced, and competent and have the degree of specialized expertise contemplated within California Government Code Section 37103, and further, are appropriately licensed to perform the work and deliver the Services required under this Agreement.

Attachment 2
10 C. Consultant, its agents, employees, and subconsultants must perform all Services in a safe and skillful manner consistent with the usual and customary standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields in accordance with sound professional practices. All work product of Consultant must comply with all applicable laws, rules, regulations, ordinances and codes. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and will advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. All Services performed under this Agreement that are required by law to be performed or supervised by licensed personnel must be performed in accordance with such licensing requirements.

D. Consultant must furnish, at its own expense, all materials, equipment and personnel necessary to carry out the terms of this Agreement. Consultant may not use the City premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

Consultant may rely upon the accuracy and completeness of such information and data furnished by the City, except where it is stated otherwise or unreasonable.

10. OWNERSHIP AND USE OF MATERIALS
A. Ownership of the Materials. All data, studies, reports, calculations, field notes, sketches, designs, drawings, plans, specifications, cost estimates, manuals, correspondence, agendas, minutes, notes, audio-visual materials, photographs, models, software data, computer software (if purchased on the City’s behalf) and other documents or products produced by Consultant under this Agreement (collectively, “the Materials”) are and will remain the property of the City even though Consultant or another party may have physical possession of them or a portion thereof. Consultant hereby waives, in favor of the City, any moral rights Consultant, its employees, subconsultants, vendors, successors or assignees may have in the Materials.

B. Delivery and Use of the Materials. All Materials will be transferred and delivered by Consultant to the City without further compensation following the expiration or sooner Attachment 2
11 termination of this Agreement, provided that the City may, at any time prior to the expiration or earlier termination of this Agreement, give written notice to Consultant requesting delivery by Consultant to the City of all or any part of the Materials in which event Consultant must forthwith comply with such request. The Materials created electronically must be submitted in a format and medium acceptable to the City. The Materials may be used by the City in any manner for the intended purpose or as part of its operations associated with the Materials.

C. Survival of Ownership and Use Provisions. The provisions contained in Section 10, Ownership and Use of Materials survives the expiration or earlier termination of this Agreement, and that this Section is severable for such purpose.

Consultant may not use for Consultant’s own purposes, or for any purpose other than those of the City, any information, data, or confidential information Consultant may acquire as a result of the performance of the Services under this Agreement. Consultant must promptly transmit to the City any and all requests for disclosure of any such confidential information or records. The obligations under this Section will survive the expiration or earlier termination of this Agreement.

Consultant further acknowledges that it may have access to personal information as defined under the PRA, and Consultant will not use any such personal information for any purposes other than for the performance of Services under this Agreement without the advance written approval of the City.

Attachment 2
12 In addition, Consultant, Consultant’s employees, and subconsultants agree as follows:

A. That they will conduct their duties related to this Agreement with impartiality, and must, if they exercise discretionary authority over others in the course of those duties, disqualify themselves from dealing with anyone with whom a relationship between them could bring the impartiality of Consultant or its employees into question; B. May not influence, seek to influence, or otherwise take part in a decision of the City knowing that the decision may further their private interests; C. May not accept any commission, discount, allowance, payment, gift, or other benefit connected, directly or indirectly, with the performance of Services related to this Agreement, that causes, or would appear to cause, a conflict of interest; D. May have no financial interest in the business of a third party that causes, or would appear to cause, a conflict of interest in connection with the performance of the Services related to this Agreement, and if such financial interest is acquired during the term of this Agreement, Consultant must promptly declare it to the City, and; E. May not, during the term of this Agreement, perform a service for, or provide advice to, any person, firm, or corporation, which gives rise to a conflict of interest between the obligations of Consultant under this Agreement and the obligations of Consultant to such other person, firm or corporation.

In any mediation conducted pursuant to this section, the provisions of California Evidence Code section 1152 will be applicable to limit the admissibility of evidence disclosed by the parties in the course of the mediation. In the event the parties are unsuccessful in resolving the dispute through the mediation process, then the parties agree that the dispute will be submitted to Binding Arbitration to a single Arbitrator in Attachment 2
13 accordance with the existing Rules of Practice and Procedure of the Judicial Arbitration and Mediation Services, Inc. (JAMS) within thirty (30) days of the close of mediation as declared by the mediator.

14. TERMINATION OF AGREEMENT
A. Termination for Cause or Default. The City reserves the right to immediately terminate this Agreement, in whole or in part, if Consultant or any subconsultant defaults or fails to deliver the Services in accordance with the terms and conditions of this Agreement.

Such termination must be in writing, setting forth the effective date of termination, and will not result in any penalty or other charges to the City, and may be issued without any prior notice. Without limitation, Consultant is in default of its obligations contained in this Agreement if Consultant, or any subconsultant:
i. Fails to perform the required Services within the term and/or in the manner provided under this Agreement;
ii. Fails to supply sufficient, properly skilled workers or proper workmanship, products, material, tools and equipment to perform the Services; iii. Fails to observe or comply with all laws, ordinances, including all requirements of governmental or quasi-governmental authorities, including federal, state, and local government enactments, bylaws, and other regulations now or, following the date of this Agreement, in force that pertain to;
iv. Fails to observe or comply with the City’s reasonable instructions; v. Breaches the Conflict of Interest provisions of this Agreement; or vi. Otherwise violates any provision of this Agreement.

C. Steps after Termination:

Attachment 2
14 i. Upon termination of this Agreement by the City for any reason, the City will pay Consultant for satisfactorily performed Services and disbursements incurred by Consultant to the date of termination pursuant to this Agreement, less any amounts necessary to compensate the City for damages or costs incurred by the City arising from Consultant’s default. Termination will be without prejudice to any other rights or remedies the City may have.
ii. Upon receipt of written notice of termination of this Agreement by the City for any reason, Consultant must:
a. Promptly cease all Services, including Services provided by any subconsultant, unless otherwise directed by the City; and b. Deliver to the City all the Materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such Materials are to be delivered to the City in completed form; however, notwithstanding the provisions of Section 10, Ownership and Use of Materials, herein, the City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such Materials.
iii. If this Agreement is terminated by the City for any reason, the City is hereby expressly permitted to assume the projects and Services, and to complete them by any means including, but not limited to, an agreement with another party.

B. Venue for any such action relating to this Agreement will be in Monterey County.

Attachment 2
15 C. Force Majeure. Either party is absolved from its obligation under this Agreement when and to the extent that performance is delayed or prevented, and in the City’s case, when and to the extent that its need for vehicles, materials, or Services to be supplied hereunder are reduced or eliminated by any course, except financial, for reasons beyond its control. Such reasons include, but are not limited to: earthquake, flood, epidemic, fire, explosion, war, civil disorder, act of God or of the public enemy, act of federal, state or local government, or delay in transportation to the extent that they are not caused by the party’s willful or negligent acts or omissions, and to the extent that they are beyond the party’s reasonable control.

D. Headings. The headings do not govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement. The headings are for convenience only.

E. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitutes the entire agreement between the parties hereto with respect to the terms, conditions, and Services and supersedes any and all prior proposals, understandings, communications, representations and agreements, whether oral or written, relating to the subject matter thereof pursuant to Section 1B, “Change Order of Services”. Any Change Order to this Agreement will be effective only if it is in writing signed by both parties hereto and will prevail over any other provision of this Agreement in the event of inconsistency between them.

J. Severability. If any of the provisions contained in this Agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired thereby. Limitations of liability and indemnities will survive termination of the Agreement for any cause. If a part of the Agreement is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

Attachment 2
16 L. Assignment of Interest. The duties under this Agreement are not assignable, delegable, or transferable without the prior written consent of the City. Any such purported assignment, delegation, or transfer constitutes a material breach of this Agreement upon which the City may terminate this Agreement and be entitled to damages.

N. Laws. Consultant agrees that in the performance of this Agreement it will comply with all applicable federal, state and local laws and regulations. This Agreement will be governed by and construed in accordance with the laws of the State of California and the City of Carmel-by-the-Sea.

IN WITNESS WHEREOF, the parties enter into this Agreement hereto on the day and year first above written in Carmel-by-the-Sea, California.

CITY OF CARMEL-BY-THE-SEA CONSULTANT
Mayor, City Administrator, or Designee Signature Consultant Signature Cyprus Kianpour
Printed Name Date Printed Name Date
President
Title Title
CSG Consultants, Inc.

Consultant Legal Company Name
APPROVED AS TO FORM:

By: _______________________________ Date: ______________________ Brian Pierik, City Attorney
ATTEST:

By: _______________________________ Date: ______________________ Nova Romero, City Clerk
Attachment 2
17 Attachments
Exhibit “A” Scope of Services
Exhibit “B” Fee Schedule
Attachment 2
18 Exhibit A- Scope of Services
The Consultant shall perform work that is outside the usual course of the City business, which will include the following services.

1. Technical Building Code Plan Check Services:

A. Provide on-call technical building code plan check services for projects that are technically complex that require a skill set, license, or other qualification not possessed by City Community Planning and Building Department staff or other City employees.

B. Consultant shall review all technical plan check applications for accuracy and make all necessary revisions to such items as description, valuation, square footage, type of construction, and use. All technical plan review correction materials including marked up plans, documents, and plan check correction lists shall be provided to the City.

2. After Hours and Weekend Code Compliance Services:

A. Provide After Hours and Weekend on-call code compliance support for:
i. After hours and weekend on call support: Monitor and address code violations outside of the normal working hours of existing City compliance staff. This will include evening and weekend hours as well as on-call services during special events and other high activity instances.

B. During the After Hours and Weekend time periods, the Consultant will generally focus on, but not be limited to enforcing downtown commercial district regulations and preventing unpermitted weekend construction, including any sort of work performed by contractors on Sundays in the Village.

C. Consultant will provide reports to the City in the manner and time as determined appropriate by the Consultant.

Attachment 2
19 Exhibit B- Fee Schedule
Exhibit B- Fee Schedule
Personnel/Service All Inclusive Fees/ Hourly Rates
Building Inspector $135
Building Official $109
Code Enforcement Officer I $90
Code Enforcement Officer II $100
Senior Code Enforcement Officer $130
Code Enforcement Officer Manager $155
CASp Consultation $139
CASp Inspection $139
Certified Plan Review
(Building and Life Safety Review)
$106
Structural Plan Review
Professional Engineer
$139
Structural Plan Review
Structural Engineer
$167
Fire Plan Review $111
Complete Plan Review 70% of City’s Building and Plan Check Fees Expedited Plan Review 95% of City’s Building and Plan Check Fees Structural Plan Review 55% of City’s Building and Plan Check Fees Overtime 1.5X Hourly Rate

1. Hourly rates include overhead costs, including, but not limited to, salaries, benefits, worker compensation insurance and office expenses.

2. Fees inclusive of Consultant coordinating the pickup and return of all plans by CSG staff or licensed courier service.

Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Chip Rerig, City Administrator
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Adopt Resolution 2022-071 authorizing the City Administrator to establish and adopt the newly created job descriptions for Maintenance Worker I/II and Maintenance Worker III
RECOMMENDATION:

Adopt Resolution 2022-071 authorizing the City Administrator to establish and adopt the newly created job descriptions for Maintenance Worker I/II and Maintenance Worker III.

BACKGROUND/SUMMARY:

In November of 2019, the City of Carmel by the Sea and General Employees Unit, an affiliated unit of LiUNA agreed to a side letter which stated, “The City will undertake a review of the Public Works Maintenance related classes. It is anticipated that this will take approximately 18 months to complete at which time the city will meet and confer with LiUNA to discuss. “ The City Council approved the successor Memorandum of Understanding with LiUNA. While the City had plans to begin the study in the spring, the 2020 Coronavirus Pandemic shut down operations and beginning the study was delayed. In March 2021, Sloan Sakai Yeung and Wong (Georgia Cochran) was contracted by the City of Carmel by the Sea to undertake this review.

Public Works Department
The Public Works Department is tasked with the responsibility to plan, design, construct, operate, and maintain public infrastructure, facilities, urban forest, and equipment that contribute to the health, safety, and well-being of the community, and do so in an efficient, cost-effective manner without detrimental effects on the environment.

Public Works consists of five operating divisions with responsibilities as follows:
· Administration Unit: prepare Council reports and presentations, perform City engineering services, serve on the Traffic Safety Committee, and provide daily oversight of the five operating divisions. · Environmental Compliance: enforce storm water quality state regulations, promote trash diversion goals, review development plans, inspect businesses and construction sites, coordinate with regional agencies, provide training, manage special environmental projects, and provide public outreach. · Facilities Maintenance: maintenance and repair of 20 City-owned buildings with 149,050 square feet, support capital projects, oversee janitorial contract and implement small construction projects. · Forestry, Parks and Beach: staff the Forest & Beach Commission, maintain 8 municipal parks, Carmel Beach, shoreline pathway, and landscaped islands, manage 9,000 City trees, process tree removal and pruning permits, and oversee landscape maintenance services. · Project Management (falls under Administration Unit): implement the Capital Improvement Plan, perform condition assessments and cost estimates, plan, design, inspect, and manage construction of capital projects, administer the public bidding process, and coordinate with consultants, contractors, utilities, and other departments.
· Streets Maintenance: maintain streets, sidewalks, and curbs, repair potholes, maintain storm drainage system, traffic signs, striping and pavement markings, provide street sweeping, coordinate repairs of City fleet, review encroachment permit applications, support City events, and emergency response.

The agreed upon study began in late March of 2021 with a discussion of the proposed methodology for data gathering which included data collection from incumbents as well as supervisors and managers within the Public Works Department.

The City of Carmel by the Sea has numerous Public Works maintenance classes; some are broad while others are quite specific as follows:
· Facility Maintenance Worker
· Forest Care Worker
· Public Services Maintenance Worker I
· Public Services Maintenance Worker II
· Maintenance Worker
· Maintenance Worker/Gardener
· Senior Maintenance Worker
· Building Maintenance Specialist
· Facility Maintenance Specialist
One of the goals of this study was to recommend a structure that will serve the City’s needs over the long term by providing them with both flexibility in hiring and staffing. In summary, based on the study, the City recommends to eliminate the above mentioned job descriptions and have the following newly created classes:
· Maintenance Worker I/II (levels class) – the broad nature of this proposed new class will provide the city with the ability to recruit maintenance staff for a specific area of need, and the ability to re-assign staff to meet the City’s needs. This also provides the City with the ability hire at either the entry or journey level, depending upon the City’s needs and the candidate pool resulting from a recruitment. · Maintenance Worker III - lead and/or an advanced journey level classification is expected to be proficient in the operation of all equipment including independent performance of street sweeping operations. The Maintenance Worker III also provides direction and field level oversight to a group of workers or individual workers and training to less skilled workers and to provide feedback to the supervisor/manager regarding field operations and performance.

The City’s next steps include a compensation study based on these newly created classifications and meet/confer with the General Employee Unit, an affiliated unit of LiUNA and placement of current employees into the new classes. Staff may return to City Council should any salary changes be recommended.

FISCAL IMPACT:

At this time there is no fiscal impact, however, the City’s next step is a compensation study based on these newly created classifications. The City will meet/confer regarding the compensation study with the General Employee Unit, an affiliated unit of LiUNA and may return to City Council should any salary changes be recommended.

PRIOR CITY COUNCIL ACTION:

ATTACHMENTS:

Attachment 1) Resolution 2022-071
Attachment 2) Exhibit A - Maintenance Worker I/II Job Description Attachment 3) Exhibit B - Maintenance Worker III Job Description

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-071

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

AUTHORIZING THE CITY ADMINISTRATOR TO ESTABLISH AND ADOPT THE NEWLY

CREATED JOB DESCRIPTIONS FOR MAINTENANCE WORKER I/II AND MAINTENANCE

WORKER III
WHEREAS, since November of 2019, the City of Carmel by the Sea and General Employees Unit and Management Unit, an affiliated unit of LiUNA agreed upon a classification study of the Public Works Maintenance related classes and have been meeting collaboratively; and
WHEREAS, one of the goals of this study was to recommend a structure that will serve the City’s needs over the long term by providing them with both flexibility in hiring and staffing; and
WHEREAS, the City and the General and Management Employee Unit, an affiliated unit of LiUNA agreed upon newly created job descriptions of Maintenance Worker I/II and Maintenance Worker III; and
WHEREAS, the Maintenance Worker I/II will provide the broad nature of this proposed new class will provide the city with the ability to recruit maintenance staff for a specific area of need, and the ability to re-assign staff to meet the City’s needs. This also provides the City with the ability hire at either the entry or journey level, depending upon the City’s needs and the candidate pool resulting from a recruitment; and
WHEREAS, the Maintenance Worker III is a lead and/or an advanced journey level classification is expected to be proficient in the operation of all equipment including independent performance of street sweeping operations. The Maintenance Worker III also provides direction and field level oversight to a group of workers or individual workers and training to less skilled workers and to provide feedback to the supervisor/manager regarding field operations and performance.

WHEREAS, the City Council in accordance with (Carmel-by-the-Sea Municipal Code

2.52.040 (D)) approves jobs, positions and funding job descriptions and salaries; and WHEREAS, the procedure for implementation of class changes, the City Administrator proposes new positions to the City Council;

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Authorize and approve the City Administrator to establish the newly created classifications as follows:

1. Adopt newly created Maintenance I/II job description (Exhibit A) Attachment 1
Resolution No. 2022-031

Page 2 ends

2. Adopt newly created Maintenance Worker III job description (Exhibit B)

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 2nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
_________________________ _________________________
Dave Potter Nova Romero
Mayor City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

MAINTENANCE WORKER I/II
Job descriptions are intended to present a descriptive list of the range of duties performed by employees in the class. Job Descriptions are not intended to reflect all duties performed within the job.

Definition
Classes in this series perform a variety of skilled and semi-skilled tasks in the repair, maintenance and construction of public works infrastructure and facilities including but not limited to street maintenance, traffic marking, facility maintenance, forest, beaches and parks maintenance, and masonry work.

Incumbents may be required to respond to emergency call-outs or work stand-by duty as assigned.

This is a broad classification with individual positions assigned to specific functional areas; duties and assignments may overlap depending upon the operational needs of the department and staffing levels. Incumbents may be assigned to the Streets, Facilities, or Forest Parks and Beach Divisions.

Distinguishing Characteristics
Maintenance Worker I/II is a single class with two salary levels.

Maintenance Worker I is an entry/trainee level in this series. Incumbents perform the more routine duties of the class while learning tasks and becoming proficient in the use of the tools and equipment used in their assignment. Performance at this level requires the ability to learn to use the equipment and perform the tasks in an assigned area under close supervision. Work is usually supervised while in progress and fits an established structure or pattern.

Maintenance Worker II is the full journey level class in this series. Incumbents are expected to be technically proficient in performing the assigned duties of the class working independently and exercising judgment and initiative. Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the work unit. Performance at this level requires the ability to operate the majority of the equipment for the assigned area and perform skilled and semi-skilled tasks under general supervision.

An incumbent hired into the Maintenance Worker I level may flexibly promote without further competition to the Maintenance Worker II classification upon Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
2 gaining the required knowledge, skill, and experience in using the equipment and performing the tasks at a journey level.

The level at which initial appointments to the classes of Maintenance Worker I and II and advancement from Level I to Level II is at the discretion of the appointing authority, providing the minimum qualifications are met. Review of advancement typically occurs during the annual performance evaluation.

Maintenance Worker I’s shall be advanced to the II level upon receiving an overall satisfactory performance evaluation.

Supervision Exercised/Received
Employees in these classes receive supervision from a higher-level supervisor or manager within the Public Works Department. These are not supervisory classes; however, a Maintenance Worker II may exercise direction and technical oversight over the entry level position and a Maintenance Worker III - may exercise direction and lead a group of workers in completing a body of work.

Examples of Important/Essential Duties
Employees may be assigned to a specific Division of Public Works; however, they may be called upon to work in other divisions as workload, staffing, and other critical needs dictate.

Streets Division
Perform maintenance and repair work on streets and sidewalks; remove damaged paving; compact, fill, repave, and repair paved surfaces with asphalt, concrete, decomposed granite, brick, and interlocking pavers; make periodic inspections and perform maintenance on structures and equipment Prepare asphalt and other repair materials; break up concrete or asphalt, build and set forms; mix and pour cement and other materials for curbs, gutters, drains, culverts, sidewalks, walkways, driveways, and potholes; remove damaged paving and compact, fill, repave and repair paved surface with asphalt, concrete, decompressed granite, brick and interlocking pavers.

Load, transport, and unload stones, gravel, dirt, supplies and required equipment.

Install, repair and clean storm drains, catch basins and culverts.

Perform flagging or other traffic control duties during maintenance projects and in emergency situations; assist Police and Fire Departments in containing and cleaning hazardous materials spills in the public rights-ofway.

Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
3 Assist in trash and debris control activities such as picking up of litter and other street maintenance activities as required
Prepare and clean surfaces for painting; lay out stencils to outline markings; paint center lines, cross walks, parking designations, and curb zone markings.

Repair damaged signs and posts; fabricate new posts; install traffic control and directional signs.

Install and maintain street signs including stop, street name, parking, warning, crosswalk and speed limit signs, guardrails, and barricades.

Repair sidewalks, curbing, and streets using blacktop, stone, brick, and concrete; set, cut, and fit materials; construct rock walls; install drainage culverts.

Mix and pour concrete; finish using smooth, rough, or pebbly techniques.

Remove weeds and trim other plant growth along streets, sidewalks, and rights-of-way to ensure access, draining, and vehicle sight distance requirements; remove debris from gutters, drop inlets, culverts, and manholes; maintain storm drain system.

Operate a variety of light and heavy-duty construction equipment including backhoe, front-end loaders, single and dual axle trucks, wheel loaders, jack hammers, compressors, and sand blasters; operate a water truck when cleaning City sidewalks.

Operate a variety of equipment and tools used in painting and surface preparation including sand blasters, air compressors, generators, paint guns, and stripers.

Operate a variety of equipment used in rough and finish concrete work including front wheel loader, backhoe, cement mixers, and cement saws.

Facilities Division
Perform carpentry, plumbing, painting, HVAC, and electrical work necessary to maintain and repair City facilities.

Install pipes, fixtures, traps, fittings, and sewer lines; repair and maintain plumbing fixtures including sinks, toilets, faucets and pipes; clear obstructions from on-site water and sewer lines.

Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
4 Repair maintain and install electrical systems and fixtures including lights, switches, plugs, and breakers; run conduit; maintain automatic emergency power generators.

Perform carpentry work including the inspection, construction, installation, remodeling and repairing of cabinets, partitions, walls, windows, doors, roofs, foundations, and other carpentry work.

Hang and tape sheetrock and prepare surfaces for paintings; applies primer and finished paint.

Repair and build handrails and fences, repair recreation equipment, picnic tables, and other park facilities.

Make periodic inspections and performs maintenance on structures and equipment in City parks and at the beach.

Install and remove equipment; conducts inspections to determine the need for maintenance work.

Read and interpret sketches, diagrams, and blueprints.

Clean and sanitize City facilities and restroom facilities and fixtures including sinks, urinals, and toilets; replenishes supplies in restrooms.

Perform mechanical servicing tasks such as greasing, oiling, and replacing worn or defective equipment parts
Operate a variety of equipment and tools used in the maintenance and repair of City facilities including power saws, power sanders, drills, air compressors, paint sprayers, sewer augers, and various hand and power tools required for carpentry, plumbing, and maintenance work.

Forest, Parks and Beach Division
Plant, water, fertilize and maintain landscaped areas including bushes, trees, flowers, and shrubs. Prepare planting area (to include digging holes with a power auger, rototilling and grading), plant, transplant, remove, grind stumps, and fertilize trees, shrubs and other plants in parks or City right of way.

Remove weeds and trim other plant growth along streets, sidewalks, and rights-of-way to ensure access, draining, and vehicle sight distance Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
5 requirements; remove debris from gutters, drop inlets, culverts, and manholes.

Aerate, thatch, seed, fertilize, and grade lawns
Under appropriate supervision, applies pesticide, herbicide, and fertilizer using chemical sprayers and spreaders.

Install, maintain and repair landscape irrigation and drainage systems using electronic water controllers, electric valves, spray and drip sprinklers, etc.

Inspect sprinklers to ensure lawns and landscaped areas are receiving the appropriate amount of water and programs irrigation systems using computerized irrigation software.

Provide non-specialized ground support only to the Tree Climber and Care Specialist during tree trimming activities. Examples include running the woodchipper, traffic control, and securing the work area.

Perform general grounds clean up, including removing litter and debris, including fecal matter, and cleaning paths and walkways Transport landscape and other related debris to applicable disposal locations
Bury or otherwise properly dispose of marine animals washing up on the beach
Clean beach areas of debris (e.g., broken glass, cans, paper, fire pits, etc.); empty trash receptacles.

Inspect other City grounds including park trails, roadways, playground equipment, and park signs; perform corrective safety and other actions.

Operate a variety of equipment and tools used in the maintenance and repair of City parks and beaches including beach cleaning equipment, lawn mowers, trenchers, hedgers, power hand tools, chainsaws, pneumatic pruning equipment, weed trimmers, blowers, tractors, walk-behind vacuums, power washers, etc. and other power and hand operated tools and equipment.

All Divisions
Set up and take down for special City events as required Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
6 Assist Police and Fire personnel in containing and cleaning hazardous material spills in the public right of way.

Perform preventative maintenance procedures and minor maintenance and adjustments on equipment used.

Use safe working methods in operation of equipment; follow department policies/protocols and work within applicable local, state and federal regulations.

Ensure the appropriate image of the City is being represented Perform related duties and responsibilities as required.

Job Related/Essential Qualifications
Education and Experience:

Any combination equivalent to education, experience and training that would provide the required knowledge, skills, and abilities would be qualifying. A typical way to obtain the knowledge, skills, and abilities would be:

Maintenance Worker I-One year of maintenance or construction experience is desirable.

Maintenance Worker II-Two years of increasingly responsible experience related to the assigned area of responsibility and consistent demonstration of the knowledge, skill and ability to perform at the journey level.

Maintenance Worker I and II-formal or informal education or training which ensures the ability to read, write, and communicate at a level necessary for successful job performance.

License or Certificate:

Possession of, or ability to obtain, an appropriate, valid California driver's license.

Knowledge of:

Equipment, facilities, materials, methods, and procedures used in maintenance, construction and repair activities including hazards associated with the work and proper safety precautions.

Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
7 Purposes and uses of a variety of vehicles, equipment, power tools, and hand tools including motorized pneumatic, and hydraulic equipment.

Construction materials, paints, chemicals, and a variety of other materials used in construction, maintenance and repair work.

Proper set up and use of traffic control devices
Methods, materials, and equipment used in general maintenance work.

Safe work practices.

Safe driving principles and practices.

City and department policies and procedures as well as applicable local state, and federal regulations.

Skill/Ability to:

Operate a variety of maintenance tools and equipment in a safe and efficient manner.

Operate office equipment, including computers and supporting applications Operate a motor vehicle safely.

Perform heavy manual and skilled labor for extended periods of time in a variety of weather conditions.

Perform skilled, semi-skilled, and unskilled maintenance, construction, and repair activities as related to the specific assignment.

Perform duties in a manner to maximize public safety in the area of work assigned.

Read and interpret basic maps, blueprints and diagrams.

Clean and care for assigned areas and equipment.

Understand and follow oral and written instructions.

Maintain accurate records
Attachment 2
City of Carmel-by-the-Sea
Maintenance Worker I/I (continued)
8 Work safely and adhere to established safety principles and practices Establish, maintain, and foster positive and harmonious working relationships with those contacted in the course of work.

Respond to emergency situations in off hours as required and maintain standby availability on an assigned basis.

Special Requirements/Work Environment:

Sitting, standing, walking on level and slippery surfaces, reaching, twisting, turning, kneeling, bending, stooping, squatting, crouching, grasping, climbing, and making repetitive hand movements
Using near and far vision when performing work and operating assigned equipment Lifting, carrying, and pushing tools, equipment and supplies weighing up to 75 pounds
Exposure to cold, heat, noise, outdoor, vibration, confined workspaces and heavy traffic conditions
Working with constant interruptions and responding to after-hours call outs Exposure to pesticides, herbicides and use cleaning and lubricating chemicals, fumes, dust and air contaminants
Pursuant to California Government Code Section 3100, all public employees are required to serve as disaster service workers subject to such disaster service activities as may be assigned to them by their supervisors or by law.

Established: 2022xx
Revised: xx/xx/xxxx
Resolution #:

FLSA Status: Non-Exempt
Attachment 2

CITY OF CARMEL-BY-THE-SEA

MAINTENANCE WORKER III
Job descriptions are intended to present a descriptive list of the range of duties performed by employees in the class. Job Descriptions are not intended to reflect all duties performed within the job.

Definition
Under general direction of the Public Works Superintendent or designee, provides lead direction to individuals or crews of Public Works Maintenance staff and/or performs the most complex construction and maintenance work on Public Works projects.

Distinguishing Characteristics
The Maintenance Worker III class is a lead and/or an advanced journey level class in the Streets Division. An incumbent in this class is responsible for setting priorities for staff in the field for Maintenance Worker I and II’s in the Streets Division, working as part of a crew as well as performing the most complex tasks and other specialized tasks within the department.

It is distinguished from the Maintenance Worker II class in that the Maintenance Worker III is expected to be proficient in the operation of all equipment including independent performance of street sweeping operations. The III also provides direction and field level oversight to a group of workers or individual workers and training to less skilled workers and to provide feedback to the supervisor/manager regarding field operations and performance.

It is distinguished from Public Works supervisory and management classes in that this individual is not responsible for the full scope of supervision of employees in the unit.

Supervision Exercised/Received
This is not a supervisory class, however, the individual in this class is expected to lead other staff including assigning tasks and determining the priority of the work to be completed.

Employees in these classes receive supervision from a supervisor or manager within the Public Works Department.

Examples of Important and Essential Duties
Attachment 3
City of Carmel-by-the-Sea
Maintenance Worker III (continued)
2 In addition to performing duties within the scope of the Maintenance Worker II, this position acts as a lead worker for Public Worker Maintenance Workers within the Streets Division which includes assignments such as:
 Providing on the job training to entry and journey level workers  Passing on instructions received from supervisor and ensuring work is started and completed within appropriate timelines.
 Distributing work among staff/crews
 Monitoring status of work being performed and keeping supervisor informed of work progress and likelihood of meeting timelines and required deadlines
 Reviewing work of assigned staff, informing supervisor of customer feedback, work quality, conduct problems, etc. and providing input on performance to supervisor
 Ensuring work is performed safely and efficiently
 Reviewing needs and priorities with supervisor/manager  Operate or oversee the operation of specialized and heavy equipment used in the course of work
Set up and take down for special City events as required Assist Police and Fire personnel in containing and cleaning hazardous material spills in the public right of way.

Perform preventative maintenance procedures and minor maintenance and adjustments on equipment used.

Use safe working methods in operation of equipment; follows department policies/protocols and works within applicable local, state and federal regulations.

Ensure the appropriate image of the city is being represented Performs related duties and responsibilities as required.

Job Related/Essential Qualifications
Education and Experience
Any combination equivalent to education, experience and training that would provide the required knowledge, skills, and abilities would be qualifying. A typical way to obtain the knowledge, skills, and abilities would be:

Two years of experience within the City of Carmel as a Maintenance Worker II, or four years of increasingly responsible public works maintenance experience that demonstrates the skills and abilities necessary to perform at the lead/advanced journey level; and
Attachment 3
City of Carmel-by-the-Sea
Maintenance Worker III (continued)
3 Formal or informal education or training which ensures the ability to read, write, and communicate at a level necessary for successful job performance.

License or Certificate:

Possession of, or ability to obtain, an appropriate, valid California driver's license.

Knowledge of:

Standard and accepted principles of leadership, on the job training and work review
Equipment, facilities, materials, methods and procedures used in maintenance, construction and repair activities including hazards associated with the work and proper safety precautions.

Purposes and uses of a variety of vehicles, equipment, power tools, and hand tools including motorized pneumatic, and hydraulic equipment.

Construction materials, paints, chemicals, and a variety of other materials used in construction, maintenance, and repair work.

Proper set up and use of traffic control devices
Methods, materials, and equipment used in general maintenance work.

Safe work practices.

Safe driving principles and practices.

City and department policies and procedures as well as applicable local state, and federal regulations.

Skill/Ability to:

Distribute work and provide work directions, review work performance and conduct of staff and provide on the job training to less experienced staff Demonstrate tact and diplomacy
Communicate information and ideas clearly and concisely, both orally and in writing
Operate a variety of maintenance tools and equipment in a safe and efficient manner.

Operate office equipment, including computers and supporting applications Operate a motor vehicle safely.

Perform heavy manual and skilled labor for extended periods of time in a variety of weather conditions.

Perform skilled and semi-skilled maintenance, construction, and repair activities as related to the specific assignment.

Perform duties in a manner to maximize public safety in the area of work assigned.

Read and interpret basic maps, blueprints and diagrams.

Attachment 3
City of Carmel-by-the-Sea
Maintenance Worker III (continued)
4 Clean and care for assigned areas and equipment.

Understand and follow oral and written instructions.

Make arithmetic calculations and maintain accurate records Work safely and adhere to established safety principles and practices Establish, maintain, and foster positive and harmonious working relationships with those contacted in the course of work.

Respond to emergency situations in off hours as required and maintain standby availability on an assigned basis.

Special Requirements/Work Environment:

Established: July 2022
Revised:

Resolution #: 2022-071
FLSA Status: Non-Exempt
Attachment 3

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Chip Rerig, City Administrator
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2022-073 authorizing the erection of tents on public property for the 5th annual Prancing Ponies event
RECOMMENDATION:

Adopt Resolution 2022-073 authorizing the erection of tents for the 5th Annual Prancing Ponies event on Thursday, August 18, 2022.

BACKGROUND/SUMMARY:

The Prancing Ponies Car Show event was held in Carmel on the Wednesday of Car Week for three years pre-pandemic. This event required the closure of Sixth Avenue between San Carlos and Lincoln Streets, and Dolores Street from Ocean Avenue to the driveway of the Post Office. In 2020, all special events were canceled due to the pandemic. In 2021, the Prancing Ponies event was planned to be held on the Thursday of Car Week, but was ultimately canceled.

Staff, Community Activities, Public Works and Police have been working with the Prancing Ponies event organizer on finalizing the event permit. Because neither Concours on the Avenue (COTA) nor the Tour d’Elegance will be held in Carmel-by-the-Sea this year, staff worked with the event organizer to relocate the event to Devendorf Park and Ocean Avenue between Mission and San Carlos Streets, in order to put the event front and center for Car Week. (Acura, a brand sponsor for COTA, will hold an event in Devendorf Park Tuesday).

As at past Prancing Ponies car shows, the event showcases vehicles owned by women, will feature a VIP lounge (Carmel Plaza), music, and a fashion show. Event set-up will be from 1:00 a.m. to 9:00 a.m. The event is proposed to occur from 11:00 a.m. to 3:30 p.m. on Thursday, August 18, 2022, with breakdown from 3:00 p.m. to 5:00 p.m. In addition, the event organizer is requesting to erect tents in Devendorf Park as part of their display.

Per Carmel Municipal Code section 12.32.060, it is unlawful to construct or erect any tent upon any public property. The City Council may, however, authorize exceptions to the code for specific events of limited duration by adopting a resolution.

Staff recommends adopting Resolution 2022-073 authorizing the erection of tents in Devendorf Park for the Prancing Ponies event.

FISCAL IMPACT:

Car Week provides an economic boon to the entire Monterey Peninsula each summer.

PRIOR CITY COUNCIL ACTION:

Prancing Ponies has been an approved event in Carmel-by-the-Sea for 4 non-consecutive years.

ATTACHMENTS:

Attachment 1) Resolution 2022-073

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-073

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE ERECTION OF TENTS FOR THE 5TH ANNUAL PRANCING PONIES EVENT ON THURSDAY, AUGUST 18, 2022
WHEREAS, the 5th annual Prancing Ponies event will be held Thursday, August 18, 2022; and WHEREAS the event utilizes tents in Devendorf Park and per the Carmel by the Sea Municipal Code Chapter 12, Section 32.060 City Council authorization is required for the construction of tents in Devendorf Park.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA DOES HEREBY:

Authorize the erection of tents for the 5th Annual Prancing Ponies event on Thursday, August 18, 2022.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 2nd day of August, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED: ATTEST:
_______________________ ___________________________
Dave Potter, Mayor Nova Romero, MMC
City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Ashlee Wright, Director, Libraries & Community Activities APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Receive an update on the Farmers' Market and adopt Resolution 2022-072 Authorizing the consumption of alcohol at the Farmers’ Market “Third Thursday" events through October 31, 2022 to be held in Devendorf Park RECOMMENDATION:

BACKGROUND/SUMMARY:

In Summer 2019, the City issued a formal Request for Proposals (“RFP”) for Farmers’ Market Manager Services. After a robust vetting process, the City entered into a contract in early 2020 with Good Roots Events, Inc. due to their understanding of the Carmel-by-the-Sea community, their vision for the Market, and their overall experience managing Farmers’ Markets and special events.

Despite the pandemic, Good Roots Events, Inc. has done an admirable job making improvements to the Farmers’ Market operation, ensuring that the village now has a vibrant market at which the community can gather each week.

The Farmers’ Market is held every Thursday (holidays and Car Week notwithstanding) from 10:00 a.m. to 2:00 p.m. on Mission Street between Ocean and Sixth Avenues, and Sixth Avenue between Mission and Junipero Streets. Occasionally, the market is canceled due to inclement weather, in particular high winds that threaten the safety of the tents.

Staff and the Community Activities Commission (CAC) work together to provide the market manager with feedback at the Commission’s monthly meetings, as well as receive updates from the market manager on new vendors, signage, etc. In addition the market manager, staff and commissioners continue to share feedback with each other that they have received from the community - for example increased signage needed re: the health department restrictions on dogs at the market.

Spearheaded by the CAC during the pandemic as part of their strategic plan, staff has worked with the manager to carve out space for community group participation at the market. This program, while slow to gather popularity, is now going full swing with groups scheduled to be at the market on the regular.

Staff has been working closely with the City’s Environmental Compliance Manager to ensure that compostable bags are being used throughout the market and that waste minimization efforts are observed, also an objective in the CAC strategic plan.

Third Thursday
As part of these ongoing discussions with the CAC and the market manager, an old idea has been recirculating that dates back to the inception of the Farmer’s Market, over 8 years ago, as part of the Carmel Artisan Food Experience. This idea proposed once monthly evening events that showcased village chefs, local produce, arts and music. Staff have been working with the market manger to begin a beta program dubbed “Third Thursdays” that would feature just that as originally envisioned.

The first “Third Thursday” was held July 21, 2022 in Devendorf Park from 5:00 to 8:00 p.m. As envisioned, the event featured market vendors, food, music, and art demonstrations. This event did not feature alcohol, although that had originally been planned for, however, there were delicious mocktails. In addition there were activities for children and families and it was well attended by a younger crowd of families looking to unwind after work and socialize while their children enjoyed the activities and playing in the park.

Based upon the initial lowkey success of the event, staff is requesting that the “Third Thursday” program continue through October. Staff is aware that during the month of August, the third Thursday falls during Car Week, so the August Third Thursday event will be moved to the following week.

In addition staff is requesting permission for the serving of alcohol at future “Third Thursday” events through October 31, 2022. Per Carmel Municipal Code Chapter 9.20, section 020, it is unlawful for any person to drink any alcoholic beverage in or upon any public place within the City. The City Council may, however, authorize exceptions to the code for specific events of limited duration by adopting a resolution.

After conducting a preliminary after action with the market manager alcohol may not be a component at future Third Thursdays, as it adds a layer of complication to event management. However, staff would like the option to include in the future if appropriate it as staff and the market manager continue to work on this initiative.

FISCAL IMPACT:

There is no fiscal impact associated with receiving an update on the Farmers' Market.

PRIOR CITY COUNCIL ACTION:

Council entered into a contract with Good Roots Events Inc. in January 2020 for the management of the Farmers' Market.

ATTACHMENTS:

Attachment 1) Resolution 2022-072

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2022-072

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE CONSUMPTION OF ALCOHOL AT THE FARMERS’ MARKET THIRD THURSDAY EVENTS TO BE HELD AUGUST 25, SEPTEMBER 15, AND OCTOBER 20, 2022
WHEREAS, the City entered into a contract in 2020 with Good Roots Events, Inc. due to their understanding of the Carmel-by-the-Sea community, their vision for the Market, and their overall experience managing Farmers’ Markets and special events; and WHEREAS, when the Farmers’ Market was created in Carmel-by-the-Sea in 2014 a monthly evening component of the Market was an important component; and WHEREAS, the Third Thursday pilot program extends the Farmers’ Market once monthly through October and will feature, artists, musicians, food, and potentially alcoholic beverages; and WHEREAS, Chapter 9.20 of the Carmel-by-the-Sea Municipal Code states that it is unlawful for any person to drink any alcoholic beverage in or upon any public place, but that the City Council has the right, through adoption of a resolution, to make exceptions to the regulation for specific events of limited duration.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMELBY-THE-SEA DOES HEREBY:

Authorize the consumption of alcohol at the Third Thursday events to be held August 25, September 15, and October 20, 2022.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 2nd day of August, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED: ATTEST:
_______________________ ___________________________
Dave Potter, Mayor Nova Romero, MMC
City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Ashlee Wright, Director, Libraries & Community Activities APPROVED BY: Chip Rerig, City Administrator
SUBJECT: Discuss and provide necessary direction the Pumpkin Roll event RECOMMENDATION:

Discuss and provide staff with direction.

BACKGROUND/SUMMARY:

For many, many years around Halloween children (and adults) snuck out late at night to roll pumpkins down Ocean Avenue. In 2015, to mark the long-standing illegal tradition, the City launched the first Pumpkin Roll down Ocean Avenue. The event was held from 2015-2019 until 2020 when COVID-19 forced the cancellation of all special events.

While other events returned to the City's regular schedule of activities 2021, the Pumpkin Roll did not. At its June 2022 regular meeting the Community Activities Commission considered the Pumpkin Roll for 2022.

Staff recommended the cancellation of the event due to concerns about waste of resources in a drought to grow pumpkins with the express purpose of destroying them for fun. While the pumpkins, once smashed, are composted this act seems incompatible with other efforts that the City is making to engage in green and sustainable practices in all of the work we do.

The Community Activities Commission (CAC) had mixed feelings about canceling the Pumpkin Roll as reflected in their discussion. Thoughts expressed included:

Don’t think sustainability is an issue
Would like to see a pumpkin event tied to the Farmers’ Market i.e. Pumpkin patch at Third Thursday Concern that this is the “only” family event the City organizes Concern that this is really the “only” event for locals.

No formal action was taken and the CAC directed staff to return with other options for something pumpkin themed around Halloween.

Issues
Sustainability
One of the Council’s Strategic Plan goals that was adopted by the CAC for its Strategic Plan is to “Strive to be excellent stewards of the environment.” Staff has been working with the City’s Environmental Compliance manager for all of the City events on improving waste diversion and working with the City Forester on minimizing event impacts to the City’s green spaces.

Understanding that the Council will be potentially adopting a Climate Action Plan at this meeting it seems incongruous in a drought to grow pumpkins simply for the luxury of smashing them even if they aren’t actually grown in Carmel-by-the-Sea. While the Climate Action Plan is focused on larger issues, smaller and medium sized changes to our mindsets and practices that align with the ethos of responsible environmental stewardship are essential to achieving the larger picture ideas.

Inclusivity
Staff has attached the annual list of events which includes, Breakfast with the Bunny, Sandcastle Contest, Halloween Parade, and Holiday Tree and Menorah Lighting. Also included was the Library’s Summer Reading program events that were held in the park this year. All of these events are geared towards families.

In addition, all of the events that City staff organize are free events open to residents and visitors/non-locals alike. Visitor participation has always been a part of the City’s events. Indeed many current full-time residents started out as visitors/non-locals at some point and if not for the welcoming atmosphere of Carmel-by-the-Sea may not have returned for subsequent visits or to settle here full-time.

Because of the direct proximity of the Pumpkin Roll event to the downtown and Tour Bus parking, visitors have always been participants at this event. If there is concern about visitors/non-locals participating in this event or any other events, perhaps relocating events away from the downtown might assuage some of the participation by visitors/non-locals.

Options
The following are options for the Council moving forward:

Option 1: As discussed and agreed upon by CAC at their June meeting, direct staff to work with the Farmers’ Market manager to work on a pumpkin patch at a third Thursday event before Halloween; and explore educational outreach opportunities for composting pumpkins, and composting in general at subsequent markets.

Option 2: An outside group or organization takes over the Pumpkin Roll - as with Breakfast with the Bunny.

Option 3: Direct staff to hold the Pumpkin Roll.

FISCAL IMPACT:

There is no fiscal impact associated with receiving a report on this item.

PRIOR CITY COUNCIL ACTION:

The City Council approved the Pumpkin Roll as an annual event in 2016.

ATTACHMENTS:

Attachment 1) Special Events 2022
2022 EVENTS
January
● Friday, December 31 - City offices closed
● Friday, January 1 - Rio Resolution Run - virtual
● Friday-Sunday, January 14-23 - Carmel Culinary Week
● Monday, January 17 - Martin Luther King Jr. Day - City offices closed February
● Monday-Sunday, January 31-February 6 - AT&T Pebble Beach Pro-Am ● Friday, February 11 - Lincoln’s Birthday - City offices closed ● Monday, February 21 - President’s Day - City offices closed March
April
● Saturday, April 16 - Carmel Host Lions Club Breakfast with the Bunny ● Sunday, April 24 - Big Sur International Marathon
May
● Saturday, May 7 - Monterey Winemakers’ Celebration
● Friday-Sunday, May 13-15 - Carmel Art Festival
● Monday, May 30 - Memorial Day Ceremony
June
● Thursday, June 9 - Summer Reading program* - Tam Tam African Drummers ● Saturday-Sunday, June 11-12 - Carmel Surfabout
● Friday, June 17 - Summer Reading program* - Rock Painting with Carmel Art Association
● Friday, June 24 - Summer Reading program* - Puppet Art Theater July
● Friday, July 1 - Summer Reading program* - Plant the Library ● Monday, July 4 - Monterey Pops! Concert
● Thursday, July 7 - Summer Reading program* - Zoo to You ● Friday, July 15 - Summer Reading program* - Kaluza & Coventry Variety Show, Wheelie Mobilie
● Wednesday, July 20 - Selection of vendors for the Homecrafters’ Marketplace Attachment 1
August
● Tuesday, August 16 - Accura in Devendorf Park (previously a part of COTA) ● Thursday, August 18 - Prancing Ponies Car Show
September
● Friday, September 16 - Carmel High School Homecoming Parade ● Saturday, September 17 - Sandcastle Contest
● Thursday, September 27 - Community Group Fair
October
●
● Saturday, October 8 - Visit Carmel - Meet the Maker
● Saturday, October 29 - Forest Theater Guild - Movie in the Park, Hocus Pocus ● Monday, October 31 - Halloween Parade
November
● Friday, November 11 - Veterans Day Ceremony
● Saturday, November 19 - 51st Homecrafters’ Marketplace December
● Friday, December 2 - Annual Holiday Celebration
*Summer Reading program event schedule available on the Library website Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Marnie Waffle, AiCP, Senior Planner
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Consideration of a recommendation from the Historic Resources Board to the City Council that the City Council enter into a Mills Act Historical Property Contract MA 21- 238 (L’Auberge Carmel) with Esperanza Carmel Commercial, LLC for the historic ‘Sundial Lodge’ now known as L’Auberge Carmel located on Monte Verde Street 2 northeast of 7th Avenue (APN 010-191-005)
RECOMMENDATION:

Accept the recommendation of the Historic Resources Board, and Approve the Mills Act Historical Property Contract MA 21-238 (L’Auberge Carmel) for the historic ‘Sundial Lodge’ now known as the L’Auberge Carmel Hotel located on Monte Verde Street 2 northeast of 7th Avenue (APN 010-191-005) and authorize the City Administrator to execute the contract.

BACKGROUND/SUMMARY:

The project site is located on Monte Verde Street 2 northeast of 7th Avenue in the Residential and Limited Commercial (RC) District. The existing hotel is known as L’Auberge Carmel. It is a three-story, woodframed hotel surrounding an open interior courtyard, designed by architect Albert Farr in the Medieval Revival style and constructed circa 1930 by M.J. Murphy.

A Department of Parks and Recreation (DPR) Form 523A was completed for the property in 2002 by Kent L. Seavey (Attachment 3) and the property was added to the Carmel Inventory on May 25, 2005. A Resolution Designating a Historic Resource for the ‘Sundial Lodge’ was recorded with the County Recorder on October 19, 2006 (Document #2006092967).

On July 2, 2021, David Fink, on behalf of Esperanza Carmel Commercial, LLC, applied for a Mills Act Historical Property Contract. The Mills Act is an incentive program available to owners of historical resources listed on the Carmel Inventory and the local Register of Historic Resources. The property was placed on the local register on September 15, 2003, and the local inventory on May 25, 2005.

On January 24, 2022, the Historic Resources Board adopted Resolution 2022-001-HRB (Attachment 5), recommending that the City Council enter into a Mills Act Contract with Esperanza Carmel Commercial, LLC for the historic ‘Sundial Lodge’ property.

Contract Value
The Monterey County Assessor’s Office is responsible for determining the value of a property under Mills Act Contract in accordance with sections 439 through 439.4 of the Revenue and Taxation Code. Properties with a Mills Act Contract are not valued based on sales data; rather they are valued by a prescribed income capitalization method (Attachment 7). After a Contract is approved, it is forwarded to the Monterey County Assessor who then determines the Mills Act value.

On March 1, 2022, the Mills Act contract was presented to the City Council with a recommendation to adopt Resolution 2022-024 and enter into a Mills Act contract. Government Code Section 36936 requires three yes votes to adopt a resolution. The Mayor and one Councilmember were recused from the item thereby requiring the three remaining Councilmembers to vote in the affirmative to pass the Resolution. Concerns were raised regarding the tax implications of entering into the contract and on a motion to adopt the Resolution, the motion failed by a 2-1 vote. Staff was directed to return to the Council for reconsideration without a Resolution. Members of Council also requested that staff obtain a preliminary calculation of Mills Act Contract values for the purposes of understanding the potential local tax revenue offset. The Assessor’s Office does not typically provide preliminary amounts, but in this case agreed to provide an estimate if staff could provide recent income information for the business. Staff spoke to the business operator and made this request, but was not able to obtain the information (The County will also request this information when attempting to calculate the revised valuation if a Mills Act Contract is granted). As a result, the Assessor’s Office could not provide a preliminary amount, and therefore staff cannot provide the actual or estimated value of property tax reduction for Council’s consideration.

STAFF ANALYSIS
A Mills Act contract under State law is an agreement between the City of Carmel and a property owner of a historic building listed on the Carmel Register. In exchange for reduced property taxes, the property owner is contractually obligated to perform annual maintenance on the building. The property owner benefits from a reduction in property taxes. The City benefits from assurance, via contract, that the historic building is rehabilitated, maintained, and preserved with a portion of those property taxes that the city is giving up.

The primary purpose for offering Mills Act contracts in the City of Carmel-by-the-Sea is to assist in and ensure the rehabilitation or restoration and long-term maintenance of historic resources.

All properties listed on the City’s Historic Register in all districts that have and be, preserved in their historical size, form, and design without significant alterations are eligible for Mills Act contracts.

All Mills Act contracts have a term of 10 years, and one year is added to this term annually upon each anniversary date of the contract unless one or both parties (City and property owner) have taken action to terminate the contract. The City Administrator is authorized to initiate contract termination on behalf of the City based on recommendations of the Planning Department. The contract rights and obligations are binding upon all successive owners of the property during the life of the contract. The property retains the lower Mills Act tax rate when sold. To end a contract, either party may submit a notice of non-renewal to the other party. Such notices shall cause the contract to terminate at the end of the then-current 10-year contract period. Cancellation of a contract by the City due to non-compliance requires a public hearing and, if canceled, results in the immediate termination of the contract and a penalty equal to 12.5 percent of the assessed market value of the property.

The contract requires that the historical elements of the property are maintained in good condition. This includes a plan for rehabilitation and maintenance and may include a program to restore deteriorated features. All recipients of Mills Act contracts are required to implement a rehabilitation/restoration and maintenance plan prepared by a qualified professional. An annual report is submitted to the Planning Department specifying all work that has been done to maintain and preserve the historic resource over the year in compliance with the approved rehabilitation/restoration and maintenance plan. All rehabilitation/restoration and maintenance work must be completed in conformance with the Secretary of Interior’s Standards for Rehabilitation. All Mills Act contracts must specify that the rehabilitation/restoration and maintenance plan shall be updated at least every ten years by a qualified professional and approved by both parties.

The Historic Resources Board considers each application for a Mills Act contract and provides a recommendation to the City Council to approve, approve with conditions, or deny the application.

The City Council considers the recommendations from the Historic Resources Board at a public hearing and resolves to approve, approve with conditions, or deny the proposed contract with sufficient time for action by the City Clerk so that recordation of approved contracts occurs before December 31st of the year in which the application is received.

To approve a Mills Act contract, the Historic Resources Board and the City Council must both make all of the following findings:
i. The building is designated as an historic resource by the City and is listed on the Carmel Register.

Staff Response: The property was designated as a historic resource on May 25, 2005, and a Resolution was recorded with Monterey County on October 19, 2006. According to a September 15, 2003 staff report to the Historic Preservation Committee, the property was voluntarily placed on the local historic inventory by then-owner, Auberge Carmel, LLC, represented by Mr. David Fink. The application meets this finding.
ii. The proposed rehabilitation/restoration and maintenance plan is appropriate in scope and sufficient in detail to guide long-term rehabilitation/restoration and maintenance. Required maintenance and rehabilitation should be more significant than just routine maintenance that would be expected for any property.

Staff Response: The proposed plan includes rehabilitation and maintenance activities that will protect the integrity of the resource by replacing aging infrastructures such as plumbing and heating, ventilation, and air conditioning systems and repairing character-defining features such as the original wood windows. On-going maintenance activities include foundation inspections, roof maintenance, cleaning and inspecting all chimneys and flues, and termite testing. All exterior modifications are subject to Design Review approval and a determination of consistency with the Secretary’s Standards. Therefore, the application meets this finding. iii. Alterations to the historic resource have been in the past, and will continue to be in the future, limited to interior work and to exterior rehabilitation and alterations that:
(A) Comply with the Secretary’s Standards (future additions only); and (B) Do not significantly alter, damage or diminish any primary elevation or character-defining feature; and
(C) Do not increase floor area on the property by more than 15 percent beyond the amount established in the documented original or historic design of the resource; and (D) Do not result in any second-story addition to a single-story historic resource.

Staff Response: After purchasing the property in 2002, Mr. Fink submitted an application to the City to remodel the hotel. The renovation was reviewed by Ms. Sheila McElroy of Circa:

History Property Development for consistency with the Secretary of the Interior’s Standards for the Treatment of Historic Properties. The renovation was found consistent with the Secretary’s Standards by the Historic Preservation Committee and did not include any increase in floor area. The primary elevation and character-defining features of the hotel were preserved, and the project was approved by the Planning Commission. The application meets this finding. iv. The Mills Act contract will aid in offsetting the costs of rehabilitating and maintaining the historic resource.

Staff Response: Construction was completed on the hotel in 1930 and renovated 20 years ago.

A rehabilitation and maintenance plan prepared by Mr. Christopher Barlow, AIA, EDAC, LEED AP, NCARB, with input from historic preservation professional Mr. Kent Seavey, proposes the following rehabilitation work: replace existing plumbing throughout the building; replace the existing heating, ventilation, and air conditioning systems; repair and rehabilitate existing windows for thermal performance; and, repair and replacement of insulation. Proposed maintenance activities include foundation inspections and repairs; exterior paint; roof maintenance; cleaning, inspecting, repairing chimneys and flues; and termite testing/treatment. The total cost of rehabilitation and maintenance is estimated to be $850,000 over the next ten years. The savings in property taxes would aid in offsetting these costs. The application meets this finding. v. Approval of the Mills Act contract will represent an equitable balance of public and private interests and will not result in a substantial adverse financial impact on the City.

Staff Response: Approval of the Mills Act Contract would be consistent with Goal 1-5 and Objective 1-16 of the Land Use & Community Character Element of the General Plan, which encourages providing incentives for property owners to preserve and rehabilitate historic resources. Although the adoption of a Mills Act Contract would decrease property tax revenue to the City, the financial impact would be minimal because:

1. The City Council adopted Resolution 2016-068 on September 13, 2016, limiting the number of Mills Act Contracts that can be approved to fifteen (15) in any three calendar year period. Only one Mills Act Contract has been approved in the last three years and that approval was granted in November 2019.

2. Carmel currently has 283 historic resources, and since the adoption of the Mills Act program in 2004, the City has entered into a total of ten Mills Act Contracts.

3. The City would continue to receive a portion of the property tax revenue, and the investment in rehabilitation and maintenance supports local tourism, which benefits both private and public interests.

4. The value of preserving the historic hotel offsets the loss of property tax revenue.

FISCAL IMPACT:

The City will have a diminished tax base from the property at Monte Verde 2 northeast of 7th Avenue for the term of the contract. The amount is unknown at this point.

PRIOR CITY COUNCIL ACTION:

On March 3, 2020, the City Council adopted standard contract language for Mills Act Contracts.

ATTACHMENTS:

Attachment 1) Standard Mills Act Contract
Attachment 2) Exhibit A - Legal Description
Attachment 3) Exhibit B - DPR 523A 'Sundial Lodge'
Attachment 4) Exhibit C - Maintenance Plan
Attachment 5) HRB Resolution 2022-001
Attachment 6) Photographs of Exterior
Attachment 7) Guidelines for the Assessment of Enforceably Restricted Historical Property OAK #4831-0417-0411 v2
RECORDING REQUESTED BY
CITY OF CARMEL‐BY‐THE‐SEA
AND WHEN RECORDED MAIL TO

Carmel City Hall
Attn: Community Planning & Building
P.O. Box CC
Carmel‐By‐The‐Sea, CA 93921 This space reserved for the Recorder’s use only CITY OF CARMEL‐BY‐THE‐SEA
MILLS ACT HISTORIC PROPERTY PRESERVATION CONTRACT
THIS AGREEMENT is made and entered by and between the CITY OF CARMEL‐BY‐THE‐SEA a municipal corporation (hereinafter referred to as “City”), and ESPERANZA CARMEL COMMERCIAL, LLC (hereinafter referred to as “Owner”).

RECITALS
(i) California Government Code Section 50280, et seq. (known as the Mills Act) authorizes cities to enter into contracts with the owners of qualified historic properties to provide for their appropriate use, maintenance and restoration such that these historic properties retain their historic characteristics;
(ii) The Owner possesses fee title in and to that certain real property, together with associated structures and improvements thereon, located at Monte Verde 2 northeast of 7th Avenue (APN: 010‐191‐005), Carmel‐By‐The‐Sea, California, (hereinafter referred to as the “Historic Property”). A legal description of the Historic Property is attached hereto, marked as “Exhibit A” and is incorporated herein by reference; (iii) The property is identified as a historic resource on the City of Carmel‐By‐The‐Sea’s Historic Inventory and Register of Historic Resources and is further described in the DPR 523A Form attached hereto, marked as “Exhibit B” and is incorporated herein by reference;
(iv) City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property, as it exists at the date of this contract and as described in the City’s Register of Historic Resources and the National Register of Historic Places, and to qualify the Historic Property for an assessment of valuation pursuant to the provisions of Article 1.9 (commencing with section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

Attachment 1
OAK #4831-0417-0411 v2
NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions contained herein, do hereby agree as follows:

1. INCORPORATION OF RECITALS. All recitals are incorporated into this Agreement.

2. EFFECTIVE DATE AND TERM. This Agreement shall be effective and commence on the date the Agreement is signed by the City, unless otherwise indicated by the County of Monterey, and shall remain in effect for a minimum term of ten (10) years thereafter.

3. AUTOMATIC RENEWAL. Each year, upon the anniversary of the effective date of this Agreement (hereinafter referred to as “annual renewal date”), one (1) year shall be added automatically to the term of this Agreement, unless timely notice of nonrenewal is given as provided in paragraph 4 of this Agreement. The total length of the contract shall not exceed twenty (20) years.

If notice is not received, the Agreement shall automatically be renewed for another year.

Upon receipt by Owner of a notice of nonrenewal from the City, Owner may make a written protest. At any time prior to the annual renewal date, City may withdraw its notice of nonrenewal.

5. EFFECT OF NOTICE OF NONRENEWAL. If either City or Owner serves timely notice of nonrenewal in any year, and this contract is not renewed, this Agreement shall remain in effect shall remain in effect for the balance of the period remaining since the original execution or the last annual renewal date.

6. FEES. The City may require that the Owner(s) of the Historic Property pay a fee that shall not exceed the reasonable cost of providing services, such as inspections, pursuant to Government Code Section 50281.1 (Article 12 of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code), for which the fee is charged.

7. VALUATION OF PROPERTY. During the term of this Agreement, Owner is entitled to seek assessment of valuation of the Historic Property pursuant to the provisions of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

8. PRESERVATION OF PROPERTY. Owner shall preserve and maintain the characteristics of historical significance of the Historic Property and agrees to complete rehabilitation and/or maintenance activities as defined in the Rehabilitation/Restoration and Maintenance Plan attached as “Exhibit C”. Requests for revisions to the Maintenance and Attachment 1
OAK #4831-0417-0411 v2
Rehabilitation plan shall be reviewed by the Historic Resources Board prior to implementation. In addition, Owner shall comply with the terms of the City’s Historic Preservation Ordinance (CMC 17.32). Owners shall not be permitted to further impede any view corridor with any new structure, including but not limited to walls, fences, or shrubbery, so as to prevent the viewing of the Historic Property from the public right‐of‐ way.

9. RESTORATION OF PROPERTY. Owner shall, where necessary, restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, U. S. Secretary of the Interior’s Standards for Rehabilitation, the State Historical Building Code, and the City of Carmel‐by‐the‐Sea, all as amended.

10. INSPECTIONS. Owner shall allow periodic examinations, at least every five (5) years, with reasonable notice thereof, of the interior and exterior of the Historic Property by representatives of the County of Monterey Assessor and the City of Carmel‐By‐The‐Sea as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement. The City will coordinate inspections by such other agencies that have jurisdiction and will keep them to the minimum necessary to determinate such compliance.

11. PROVISION OF INFORMATION. Owner shall furnish City with any and all information required by City, in order to determine the eligibility of the Historic Property, and that City deems necessary or advisable to determine compliance with the terms and provisions of this Agreement.

12. ANNUAL REPORT. Owner shall submit an annual report at least 90 days prior to each annual renewal date (October 1st) to the Department of Planning and Building specifying all work that has been done to maintain and preserve the historic resource over the preceding year in compliance with the approved maintenance plan.

13. CANCELLATION. The City has the right to cancel the contract if the owner allows the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The City also has the right to cancel this contract if the owner(s) breaches the provisions of paragraph’s # 8, 9, 10 or 12 of this Agreement after the City has provided reasonable notice of any failure to comply with the agreement, and a public hearing. Notice of the hearing shall be mailed to the last known address of each owner of the property, with the notice conforming to the provisions of Government Code section 6061., If after notice and a hearing, the contract is cancelled, termination of the Agreement is immediate, and the owner shall pay a cancellation fee equal to 12.5 percent of the current fair market value of the property, as determined by the Monterey County Assessor as though the property were free of the contractual restriction. The cancellation fee shall be paid to the Assessor, at the time and in the manner that the Assessor shall prescribe. City’s right to cancel this Agreement pursuant to this paragraph Attachment 1
OAK #4831-0417-0411 v2
shall in no way limit or restrict its rights or legal remedies arising from City’s Historic Preservation Ordinance and Municipal Code.

14. ENFORCEMENT OF AGREEMENT. In lieu of and/or in addition to any provisions to cancel this Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of this Agreement.

15. WAIVER. City does not waive any claim or default by Owner if City does not enforce or cancel this Agreement. All remedies at law or in equity, which are not otherwise provided for this Agreement or in City’s regulations governing historic properties are available to City to pursue in the event there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

16. BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, reservations and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. A successor in interest shall have the same rights and obligations under this Agreement as the original owner who executed the Agreement.

Each and every contract, deed or other instrument hereinafter executed, governing or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions expressed in this Agreement regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historic characteristics and significance of the Historic Property for the benefit of the public and Owner.

17. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below, by personal delivery or United States mail, postage prepaid, addressed as follows:

City: Carmel‐By‐The‐Sea
Community Planning & Building Department
Attn: Community Planning & Building Director
P.O. Box CC
Carmel‐By‐The‐Sea, CA 93921
Attachment 1
OAK #4831-0417-0411 v2
Owner: Esperanza Carmel Commercial, LLC
PO Box 134
Carmel, CA 93921

Notice to successors in interest to either party shall be sent to the appropriate address.

In the case of future Owner(s) of the Historic Property, notice shall be sent to the address on file with the county property tax office in power at the time.

18. RECORDATION. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the Office of the County Recorder of the County of Monterey. From and after the time of the recordation, this Agreement shall impart a notice thereof to all persons as is afforded under state law.

19. STATE LAW. The Owner or agent of Owner shall provide written notice of this Agreement to the State Office of Historic Preservation within six (6) months of the date of this Agreement.

20. GOVERNING LAW; VENUE. This Agreement shall be constructed and governed in accordance with the laws of the State of California. Should either party to this agreement bring legal action against the other, the case shall be handled in Monterey County, California and the party prevailing in such action shall be entitled to a reasonable attorney fee which shall be fixed by the judge hearing the case and such fee shall be included in the judgment together with all costs.

21. AMENDMENTS. This agreement may be amended in whole or in part, only by a written‐ recorded instrument executed by the parties hereto.

22. DESTRUCTION OF PROPERTY; EMINENT DOMAIN; CANCELLATION. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be preplaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled.

No cancellation fee pursuant to Government Code Section 50286 shall be imposed if the Agreement is cancelled pursuant to this paragraph. Such Agreement shall be null and void for all purposes of determining the value of the property so acquired.

23. INDEMNIFICATION. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any Attachment 1
OAK #4831-0417-0411 v2
federal, state or local government agency, arising out of or incident to the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restriction on the use of development of the Historic Property, from application or enforcement of the City’s Municipal Code, or from the enforcement of this Agreement.

This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of the City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents.

24. SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.

IN WITNESS THEREOF, the City and Owners have executed this Agreement on the day and year this Agreement is signed by the City, unless otherwise indicated by the County of Monterey.

CITY OF CARMEL‐BY‐THE‐SEA:

By: _______________________ Date: __________________ Name: Richard L. Rerig (“Chip”)
Title: City Administrator

PROPERTY OWNER(S):

By: __________________________ Date: ___________________ Name: Patrice Pastor
Esperanza Carmel Commercial, LLC
Title: Property Owner
Attachment 1
OAK #4831-0417-0411 v2

EXHIBIT A
LEGAL DESCRIPTION
EXHIBIT B
DPR 523A FORM for ‘Sundial Lodge’

EXHIBIT C
REHABILITATION/RESTORATION AND MAINTENANCE PLAN
Attachment 1
Order Number: 2714-5947535
Page Number: 6
First American Title

Page 6 of 15 ends

LEGAL DESCRIPTION

Real property in the City of Carmel, County of Monterey, State of California, described as follows:

LOTS 18 AND 20 IN BLOCK 74, AS SAID LOTS AND BLOCK ARE SHOWN ON THAT CERTAIN MAP ENTITLED, MAP OF "CARMEL-BY-THE-SEA, MONTEREY COUNTY, CALIFORNIA", FILED MARCH 7, 1902

IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA, IN VOLUME 1 OF MAPS, "CITIES AND TOWN", AT PAGE 2.

APN: 010-191-005
Attachment 2
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Property Address: Monte Verde St. at Seventh Ave.

Owner Name: L'Auberge Carmel / David Fink
Owner Telephone No.: (831) 917-2322
Plan Prepared by: Christopher Barlow AIA, EDAC, LEED AP, NCARB Maintenance/ Completed/ Year of Building Description Cost Rehabilitation Proposed Completion Feature of Work
Maintenance Proposed 2029 Foundation
Rehabilitation Proposed 2022 Plumbing
Rehabilitation Proposed 2024 Mechanical
Maintenance Proposed 2027 Exterior walls
Maintenance Proposed 2022-2032 Exteriors
Rehabilitation Proposed 2022 Windows
Rehabilitation Proposed 2023 Windows
Rehabilitation Proposed 2028 Roof, Ext. walls
Maintenance Proposed 2030 Wood, thruout
Rehabilitation Proposed 2025 Hardscape
Rehabilitation Proposed 2026 Hardscape
$45,000
New drainage at courtyard (currently surface drainage only, see photo 16) Replace existing aged interior plumbing piping throughout building

BUILDING SYSTEMS UPGRADES
Maintain Roof, Clean Chimneys/Flues, Inspect and seal plaster (annually) $150,000 Exterior and Interior Features Upgrades Subtotal
$75,000
Note: Frequency of Repairs continues beyond 2032 based on interval proposal.

Note: Dollar amounts will be review at 10 year intervals and adjusted for inflation. $850,000
$850,000
$80,000
$0
Proposed Work Total

REHABILITATION AND MAINTENANCE TOTAL
Exterior and Interior Features Upgrades Subtotal
Completed Work Total
Retaining Wall repair at existing stairs and property line (see photo 15) $35,000 Conduct exterior window condition assessment and provide survey of repairs $10,000 $115,000
$75,000
$470,000
$45,000

HARDSCAPE AND LANDSCAPE
Repair and replace existing Heating, Ventilation and Air Condition system(s) Insulation repairs and replacement
Termite testing and repairs

EXTERIOR AND INTERIOR FEATURES, MATERIALS, AND FINISHES Repair and Rehabilitate existing Windows for increased thermal performance Paint exterior of all exterior walls (every six years)
Mills Act Rehabilitation and Maintenance Plan
City of Carmel
$95,000
$175,000
$30,000
Building Systems Upgrades Subtotal $270,000
Mills Act Rehabilitation and Maintenance Plan
L'Auberge Carmel, Monte Verde Street and Seventh Ave, Carmel-By-The-Sea, California

STRUCTURAL UPGRADES
Foundation Inspection and localized repairs (as needed) Structural Upgrades Subtotal
$30,000
Attachment 4

CITY OF CARMEL-BY-THE-SEA

HISTORIC RESOURCES BOARD

HISTORIC RESOURCES BOARD RESOLUTION NO. 2021-001-HRB

A RESOLUTION OF THE HISTORIC RESOURCES BOARD OF THE CITY OF CARMEL-BY-THE-SEA

RECOMMENDING THAT THE CITY COUNCIL ENTER INTO A MILLS ACT CONTRACT WITH ESPERANZA CARMEL COMMERCIAL, LLC FOR THE PROPERTY LOCATED ON MONTE VERDE 2 NORTHEAST OF 7TH AVENUE ALSO KNOWN AS L’AUBERGE CARMEL
APN 010-191-005

WHEREAS, David Fink (“Applicant”) submitted an application on behalf of Esperanza Carmel Commercial, LLC requesting to enter into a Mills Act contract (MA 21-238, L’Auberge Carmel) described herein as (“Application”); and
WHEREAS, the Application has been submitted for the property located on Monte Verde 2 northeast of 7th Avenue Residential and Limited Commercial (R-C) District (Block 74, Lots 18 & 20); and
WHEREAS, the Applicant is requesting to enter into a Mills Act contract with the City and in accordance with Carmel Municipal Code (CMC) Section 17.32.100.B.6 (Review Process), the HRB shall consider the application and make recommendations to the City Council to approve, approve with conditions, or deny the application; and
WHEREAS, the agenda for the Historic Resources Board Meeting was posted in three locations on January 21, 2022 in compliance with State law indicating the date and time of the public hearing; and
WHEREAS, on January 24, 2022, the Historic Resources Board held a public meeting to consider the application for a Mills Act contract, including without limitation, information provided to the Historic Resources Board by City staff and through public testimony; and WHEREAS, this Resolution and its findings are made based upon evidence presented to the Board at the January 24, 2022 meeting including, without limitation, the staff report and attachments submitted by the Community Planning and Building Department; and WHEREAS, the Historic Resources Board did hear and consider all said reports, attachments, recommendations and testimony herein above set forth and used their independent judgement to evaluate the project; and
WHEREAS, the facts set forth in the recitals are true and correct and are incorporated herein by reference.

Attachment 5
Resolution No. 2022-001-HRB

Page 2 of 3 ends

NOW, THEREFORE, BE IT RESOLVED, that the Historic Resources Board of the City of CarmelBy-The-Sea does hereby make the following findings and determinations regarding the Mills Act Contract:

FINDINGS REQUIRED FOR A MILLS ACT CONTRACT
For each of the required findings listed below, staff has indicated whether the application supports adoption of the findings. For all findings checked "no" the staff report discusses the issues to facilitate the Historic Resources Board decision-making. Findings checked "yes" may or may not be discussed in the report depending on the issues.

CMC 17.32.100.B.6.c YES NO
i. The building is designated as an historic resource by the City and is listed on the Carmel Register.
✔
ii. The proposed rehabilitation/restoration and maintenance plan is appropriate in scope and sufficient in detail to guide long-term rehabilitation/restoration and maintenance. Required maintenance and rehabilitation should be more significant than just routine maintenance that would be expected for any property. ✔
iii. Alterations to the historic resource have been in the past, and will continue to be in the future, limited to interior work and to exterior rehabilitation and alterations that:
(A) Comply with the Secretary’s Standards (future additions only); and (B) Do not significantly alter, damage or diminish any primary elevation or character-defining feature; and
(C) Do not increase floor area on the property by more than 15 percent beyond the amount established in the documented original or historic design of the resource; and
(D) Do not result in any second-story addition to a single-story historic resource.
✔
iv. The Mills Act contract will aid in offsetting the costs of rehabilitating and maintaining the historic resource..
✔
v. Approval of the Mills Act contract will represent an equitable balance of public and private interests and will not result in substantial adverse financial impact on the City.
✔
BE IT FURTHER RESOLVED that the Historic Resources Board of the City of Carmel-by-theSea does hereby recommend that the City Council approve a Mills Act Contract (MA 21-238, L’Auberge Carmel) for the property located on Monte Verde 2 northeast of 7th Avenue (APN 010- 191-005).

PASSED, APPROVED AND ADOPTED BY THE HISTORIC RESOURCES BOARD OF THE CITY OF CARMEL-BY-THE-SEA this 24TH day of January, 2022, by the following vote:

Attachment 5
Resolution No. 2022-001-HRB

Page 3 of 3 ends

AYES: CHROMAN, DYAR, GUALTIERI, HALL, POMEROY
NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
_________________________ _________________________
Erik Dyar Margi Perotti
Chair Historic Resources Board Secretary

Attachment 5
L’AUBERGE CARMEL
1 Monte Verde Street at Seventh Ave.

Photos by Jenna Tyndall from Wald, Ruhnke and Dost Architects (June 28, 2021) Photo #1, Main façade looking South along Monte Verde
Photo #2, Main façade looking North along Monte Verde
Attachment 6
Photo #3, North elevation looking from City Hall parking lot Photo #4, Partial South elevation looking from Seventh Avenue Attachment 6
Photo #5, radial plaster cracking at Southwest building corner Photo #6, holes in foundation, plaster and tile at Southwest corner Attachment 6
Photo #7, hairline cracking in plaster above double windows by main entry Photo #8, radial cracking in plaster above main entry doors.

Attachment 6
Photo #9, holes in foundation near Northwest building corner Photo #10, cracked step/foundation at Northwest building corner Attachment 6
Photo #11 window sill at North side of building
Photo #12, bent/damaged flashing at second level opening Attachment 6
Photo #10, weathered/oxidized roofing at central courtyard Photo #11, damaged rafter tails at roof as seen from courtyard Attachment 6
Photo #12, rotted supports at exterior planter box
Photo #13, damaged downspout (typical condition at perimeter) Attachment 6
Photo 14, Water damage at upper-level balcony
Attachment 6
Photo 15, Existing retaining wall
Attachment 6
Photo 16, temporary surfact drainage at courtyard
Attachment 6

June 2, 2005
BETTY T. YEE
Acting Member
First District, San Francisco

BILL LEONARD
econd District, Sacramento/Ontario

CLAUDE PARRISH
Third District, Long Beach

JOHN CHIANG
Fourth District, Los Angeles

STEVE WESTLY
State Controller, Sacramento
RAMON J. HIRSIG
Executive Director
No. 2005/035
O COUNTY ASSESSORS AND INTERESTED PARTIES:

NOTICE OF BOARD ACTION

GUIDELINES FOR THE ASSESSMENT OF

ENFORCEABLY RESTRICTED HISTORICALPROPERTY
On May 25, 2005, the Board of Equalization approved the following guidelines pertaining to the assessment of enforceably restricted historical property. These guidelines supersede Letter To Assessors No. 77/174 (dated December 19, 1977).

On June 8, 1976, the voters of California approved Proposition 7 which amended section 8 of article XIII of the California Constitution. This amendment requires that enforceably restricted historical property be valued on a basis that is consistent with its restrictions and uses. Sections 439 through 439.4 were added to the Revenue and Taxation Code to implement Proposition 7.

These statutes, in particular section 439.2, prohibit a valuation of enforceably restricted historical property based on sales data and instead require that such property be valued by a prescribed income capitalization method.

Staff drafted these guidelines in consultation with interested parties and, after discussions, no issues remained unresolved. The guidelines discuss the enforceably restricted historical property requirements, the income to be capitalized, the capitalization rate, the effect of Proposition 13 upon enforceably restricted historical properties that undergo change in ownership or new construction, and the valuation of property under notice of nonrenewal.

The guidelines are posted on the Board's website at www.boe.ca.gov/proptaxes/guideproc.htm.

We hope this information proves useful and promotes uniformity of assessment for these properties. If you have any questions, please contact our Real Property Technical Services Unit at 916-445-4982.

Sincerely,
/s/ David J. Gau
David J. Gau
Deputy Director
Property and Special Taxes Department
DJG:grs
Enclosure

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

PROPERTY AND SPECIAL TAXES DEPARTMENT
450 N STREET, SACRAMENTO, CALIFORNIA
PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0064
916 445-4982  FAX 916 323-8765
www.boe.ca.gov
Attachment 7
1 GUIDELINES FOR THE ASSESSMENT OF

ENFORCEABLY RESTRICTED HISTORICAL PROPERTY

HISTORY
Effective March 7, 1973, Chapter 1442 of the Statutes of 1972 (also known as the Mills Act) added sections 50280 through 50289 to the Government Code to allow an owner of qualified historical property to enter into a preservation contract with local government. When property is placed under such a contract, the owner agrees to restore the property if necessary, maintain its historic character, and use it in a manner compatible with its historic characteristics.

Prior to the passage of Proposition 7 in 1976, these agreements (i.e., Mills Act contracts) constituted enforceable restrictions on the use of land within the meaning of Revenue and Taxation Code section 402.11 (Property Tax Rule 60, repealed January 10, 1978). However, Proposition 7 added the second paragraph to section 8 of article XIII of the California Constitution:

To promote the preservation of property of historical significance, the Legislature may define such property and shall provide that when it is enforceably restricted, in a manner specified by the Legislature, it shall be valued for property tax purposes only on a basis that is consistent with its restrictions and uses.

To implement Proposition 7, Chapter 1040 of the Statutes of 1977 (Senate Bill 380) added sections 439 through 439.4 to the Revenue and Taxation Code. These statutes, in particular section 439.2, prohibit a valuation of enforceably restricted historical property based on sales data and instead require that such property be valued by a prescribed income capitalization method.

ENFORCEABLY RESTRICTED HISTORICAL PROPERTY
Under section 439, historical property is "enforceably restricted" if it meets the definition of a "qualified historical property" as defined in Government Code section 50280.1 and is subject to a historical property contract executed pursuant to Government Code section 50280 and following.

A qualified historical property includes qualified historical improvements and the land on which the improvements are situated, as specified in the historical property contract. If the contract does not specify the land to be included, the qualified historical property includes only a land area of reasonable size to situate the improvements.

A qualified historical property is privately-owned property that is not exempt from property taxation and that also meets either of the following criteria:
• The property is listed in the National Register of Historic Places, or is located within a registered historic district; or
1 Unless otherwise noted, all statutory references are to the Revenue and Taxation Code.

Attachment 7
2 • The property is listed in any official state, county, city, or city and county official register of historical or architecturally significant sites, places or landmarks, including the California Register of Historical Resources, California Historical Landmarks, State Points of Historical Interest, local landmarks, and local survey listings of historical properties.

The historical property contract must have a minimum term of ten years, and, as applicable, must contain certain other elements, including the following:
• A provision relating to the preservation of the qualified historical property and, when necessary, the restoration and rehabilitation of the property in conformance with state historic preservation guidelines;
• A requirement for the periodic examination of the property to ensure compliance with the agreement;
• A requirement that the historical property agreement be binding upon successor owners of the qualified historical property; and
• A provision for an automatic one-year extension of the contract, with an additional year added to the initial contract term on each anniversary of the contract, unless either party provides notice of nonrenewal. If a notice of nonrenewal is given, the contract runs for its remaining term.

Once a contract is signed, accepted, and recorded, the property subject to the contract must be assessed under section 439.2 on the ensuing lien date. For example, if a contract were recorded in August 2004, the property should have been valued pursuant to section 439.2 for lien date January 1, 2005.

Local authorities may cancel a historical property agreement for breach of contract or failure to protect the historical property. Alternatively, the local entity may take legal action to enforce the contract.

ASSESSMENT
The assessment of an enforceably restricted historical property involves the following aspects:
(1) valuing the restricted historical property; (2) properly applying certain assessment provisions relating to article XIII A of the California Constitution (Prop 13); (3) valuing the restricted historical property following a notice of nonrenewal; and (4) valuing the restricted historical property following cancellation of the contract.

Valuing the Restricted Historical Property
Section 439.2 prohibits the assessor from using sales data relating to similar properties, whether or not enforceably restricted, to value an enforceably restricted historical property. Instead, the assessor must annually value a restricted historical property using an income approach that Attachment 7
3 follows the specific provisions of section 439.2. These provisions explicitly address (1) the determination of the income to be capitalized, (2) the development of the capitalization rate, (3) the capitalization technique to be used, and (4) the determination of the restricted historical property's taxable value on each lien date.

Income to be Capitalized
As provided in section 439.2(a), the income to be capitalized when valuing a restricted historical property is the property's fair rent less allowed expenditures, or allowed expenses. In general, section 439.2(a) follows Property Tax Rule 8(c), with fair rent in section 439.2 corresponding to gross return in Rule 8(c); allowed expenditures, or allowed expenses, in section 439.2 corresponding to gross outgo in Rule 8(c); and the income to be capitalized in section 439.2 corresponding to net return in Rule 8(c). In addition, for the purposes here, "gross income" is synonymous with fair rent, and "net operating income" is synonymous with the income to be capitalized.

The parties to a historical property agreement may stipulate a minimum annual income to be capitalized, in which case the income to be capitalized may not be less than the stipulated amount.

Fair rent, or gross income. The gross income of a restricted historical property is the fair rent for the property considering the restrictions on the property's use. When establishing the fair rent for a restricted historical property, the appraiser should consider the actual rent and typical rents in the area for similar properties in similar use, where the owner pays the property taxes.

The actual rent received by the owner of the subject restricted historical property is relevant to an estimate of fair market rent only if the actual rent is the same rent that would be expected if the existing lease were renegotiated in light of current market conditions, including the subject property's enforceable restrictions on use. With respect to rents from similar, or comparable, properties, if such rents are from properties outside the geographic or market area of the subject property, or from properties that are otherwise dissimilar to the subject property, the rents may not be relevant to an estimate of the subject property's fair rent.

Comparable rental data for single-family residences can be obtained from real estate brokers, rental agencies, and newspaper ads. Many assessors offices maintain rental data for commercial properties, and this data may be helpful when establishing the fair rent for restricted historical property when the contract allows a commercial use. Rental data for commercial property also can be obtained from commercial real estate brokers. For the purpose of estimating anticipated market fair rent and expenditures for use in calculating the subject property's value, rental and expense data for existing restricted historical properties, including the subject historical property, can be obtained through an annual questionnaire sent to property owners.

If sufficient rental data are not available, or such data are unreliable, the appraiser must impute a gross income for the subject restricted historical property. The imputed income should be based on what an informed investor would reasonably expect the property to yield under prudent management, given the provisions under which the property is enforceably restricted.

Attachment 7
4 Allowed expenditures. Section 439.2(a)(3) defines allowed expenditures, or allowed expenses, as expenses necessary for the maintenance of the property's income. Allowed expenses are the same as those permitted in Property Tax Rule 8(c).

Typical expenses include the cost of utilities, maintenance and repair, insurance and property management. Allowed expenses also may include amounts owing for special assessments and special taxes. Expenses related to debt service, general property taxes, and depreciation should not be deducted.

In general, to arrive at the net income to be capitalized, allowed expenses are subtracted from the estimated rental income. However, in order to properly process the income, the appraiser must be aware of the structure of the lease with regard to how expenses are shared between the landlord-owner and the tenant.

The proper perspective from which to view the processing of income and expenses is that of the landlord-owner. The objective is to estimate the net income to the landlord-owner—this is the amount that should be capitalized—and the correct question to ask is the following: What, if any, allowed expenses must the landlord-owner pay out of the rental income that he or she receives?
In a gross lease, almost all of the allowed expenses must be paid out of the gross rent and, therefore, must be subtracted from the gross rent to arrive at the net income to be capitalized. In a net lease, relatively few allowed expenses must be paid by the landlord-owner out of the net rent (because the tenant pays most expenses) and only these expenses should be subtracted from the net rent to arrive at the net income to be capitalized. Frequently, there is a hybrid arrangement—some expenses are paid by the landlord-owner and some by the tenant. How expenses are shared often depends upon the property type together with local conventions.

Income to be capitalized, or net operating income. The income to be capitalized, or net operating income, is simply the fair rent, or gross income, described above less the allowed expenditures described above.

Capitalization Rate
The method of developing the capitalization rate to be used when valuing restricted historical property is prescribed by statute; a capitalization rate derived from sales data or the band of investment is not permitted.

Section 439.2 prescribes two types of capitalization rates for restricted historical property: (1) a capitalization rate to be used when valuing restricted historical property that is an owneroccupied single-family residence and (2) a capitalization rate to be used when valuing all other restricted historical property. Both types of capitalization rates include components for interest (i.e., yield), risk, property taxes, and amortization of improvements; in fact, the two rates are identical except for the amount of the risk component. The capitalization rate contains the following components:

Attachment 7
5 • An interest component annually determined by the State Board of Equalization and based on the effective rate on conventional mortgages as determined by the Federal Housing Finance Board. The interest component is announced annually, in a Letter To Assessors, by October 1 of the preceding assessment year.
• A historical property risk component determined by property type. For owner-occupied single-family residences, the rate is 4 percent; for all other types of restricted historical property, the rate is 2 percent.
• An amortization component for improvements defined as a percentage equal to the reciprocal of the remaining life of the improvements (e.g., if the remaining economic life of the improvements were 20 years, the amortization component would be 5 percent). Since the amortization component applies only to improvements, not to land, which is a nondepreciating asset, it is necessary to adjust the amortization component described in the statute. We recommend the following method of adjustment:

1. Based upon market data, estimate the percentage of total property value attributable to improvements.

2. Multiply this percentage by the amortization component described in the statute (i.e., by the reciprocal of the remaining life of the improvements). For example, if the remaining life of the improvements was 20 years, yielding a reciprocal percentage of 5 percent, and if 70 percent of the total property value was attributable to the improvements, the adjusted amortization factor would be 3.5 percent (0.05 x 0.70 =

0.035).

3. Add the adjusted amortization component to the other capitalization rate components to arrive at the total capitalization rate.
• A property taxes component equal to the percentage of the estimated total tax rate applicable to the property for the assessment year multiplied by the assessment ratio. Typically, the property tax component includes the basic tax rate of 1 percent plus an additional ad valorem rate related to any bonded indebtedness pertaining to the tax rate area in which the property is located. Special district assessments and special taxes are not included in the property tax component. As noted above, they should be treated as allowed expenses.

Capitalization Technique
The capitalization technique to be used when valuing a restricted historical property is prescribed by statute and is formulaic. Section 439.2(e) provides that the restricted value shall be the income to be capitalized, or net operating income, developed as prescribed by statute, divided by one of the two types of capitalization rates prescribed by statute. In other words, the restricted value is the simple quotient of the prescribed income to be capitalized and the prescribed capitalization rate.

Attachment 7
6 Determination of Taxable Value on Each Lien Date
Section 439.2(d) provides that a historical property's restricted value may not be enrolled if it exceeds either (1) the value of the subject property as determined under section 110 (i.e., current market value) or (2) the value of the subject property as determined under section 110.1 (i.e., factored base year value). In other words, section 439.2 states that the taxable value of a restricted historical property on each lien date shall be the lowest of its restricted value, current market value, or factored base year value. The factored base year value for an enforceably restricted historical property is the value that was established for the 1975 lien date2 or as of the date of the most recent change in ownership, whichever is later, adjusted by the annual inflation factor.

Article XIII A (Prop 13) Considerations
This section discusses how three important elements relating to implementation of article XIII A—change in ownership, new construction, and supplemental assessment—relate to the assessment of restricted historical property. Also discussed is the case in which only a portion of a property is subject to the historical property agreement—that is, the case in which a single property unit contains both restricted and unrestricted portions.

Change in Ownership
When a property subject to a historical property contract undergoes a change in ownership, a new base year value should be established for the property as of the date of change in ownership, as provided in section 110.1. Typically, a restricted historical property's base year value will be greater than its restricted value determined under section 439.2 and hence will not be enrolled as the property's taxable value. However, the establishment of a new base year value enables the assessor to perform the three-way value comparison prescribed by section 439.2(d) and described above. The establishment of a base year value is also necessary in order to calculate the assessed values of historical property should the historical property agreement enter nonrenewal status.

New Construction
Section IV of National Register Bulletin #15 defines a "building" as follows:

A building, such as a house, barn, church, hotel, or similar construction, is created principally to shelter any form of human activity. "Building" may also be used to refer to a historically and functionally related unit, such as a courthouse and jail or a house and barn.

Section IV further specifies that "[b]uildings eligible for the National Register must include all of their basic structural elements. Parts of buildings, such as interiors, facades, or wings, are not eligible independent of the rest of the existing building. The whole building must be considered, 2 Sections 110.1(d) and 405.5 do not apply to historical properties under contract as of lien date 1975 because the constitutional amendment which placed the valuation of historical property under article XIII rather than article XIII A had not yet been passed and, thus, was not in effect for the 1975 lien date.

Attachment 7
7 and its significant features must be identified." Thus, eligibility for the National Register is determined by the extent to which the basic structural elements of an existing building are intact.

In general, a newly constructed building would not be eligible because it is not an existing building with basic structural elements.3
Also, a newly constructed building is not a historic resource, and, thus, is not a qualified historical property within the meaning of Government Code section 50280.1. For example, a newly constructed detached garage (assuming it is not a reconstruction of a historical garage) clearly would not be eligible because it has no significance in American history or architecture, nor does it meet any of the other requisite criteria.

Bulletin 15, however, does list one type of newly constructed property that may be eligible for inclusion under the Mills Act. A reconstructed historic building is eligible for the National Register if the reconstruction is "accurately executed in a suitable environment and presented in a dignified manner as part of a restoration master plan, and when no other building or structure with the same association has survived."
The historical property contract typically specifies the scope and type of any work to be performed on the historical improvements. Improvements existing as of the date of the contract would be subject to the provisions of section 439.2 unless specifically excluded by the contract.

Any new construction made to the historical structure after the issuing date of the contract would not be subject to the provisions of section 439.2 unless specifically included in the contract or an amendment to the contract. Any questions regarding new construction to enforceably restricted historical structures should be directed to the counsel of the legislative body of the city, county, or city and county that contracted with the property owner.

Assuming that the newly constructed property is subject to the historical property contract, a base year value should be established for the newly constructed portion and this value added to the factored base year value of the existing restricted property.

In some cases, an existing historical property may include a portion that is restricted (i.e., subject to a historical property contract) and a portion that is unrestricted. In this case, separate factored base year values should be maintained for the restricted and unrestricted portions and the base year value of any newly constructed property added to the appropriate portion. The assessment treatment of this type of property is discussed further below.

Supplemental Assessment
Although the assessor is required to establish a new base year value upon a change in ownership or completed new construction involving restricted historical property, such property is not subject to supplemental assessment. As provided in Revenue and Taxation Code section 75.14:

Supplemental assessment; limitation. A supplemental assessment pursuant to this chapter shall not be made for any property not subject to the assessment 3 National Register Bulletin 15, "How to Apply the National Register Criteria for Evaluation," U.S. Department of the Interior, National Park Service (www.cr.nps.gov/nr/publications/).

Attachment 7
8 limitations of Article XIII A of the California Constitution. All property subject to the assessment limitations of Article XIII A of the California Constitution shall be subject to the provisions of this chapter, except as otherwise provided in this article.

As discussed above, the assessment of enforceably restricted historical property is subject to the provisions of article XIII, section 8 of the California Constitution, not article XIII A. Thus, section 75.14 precludes the assessor from enrolling supplemental assessments for enforceably restricted historical property.

Historical property not yet under contract that undergoes a change in ownership or new construction is subject to supplemental assessment, even if the property owner later executes a historical property contract in the same fiscal year. Also, any new construction involving a historical property that does not come under the existing historical property contract (e.g., a detached garage added to a restricted historical property) would be subject to supplemental assessment.

When a Property Contains Both Restricted and Unrestricted Portions When only a portion of a property that would normally be considered a single appraisal unit is restricted by a historical property contract, the assessed value should be determined by making a comparison of three values, determined as follows. First, the portion under contract should be valued using the capitalization method prescribed by section 439.2. Added to this figure should be the lower of the unrestricted portion's fair market value or factored base year value. The resulting sum should be compared to both the fair market value and the factored base year value of the entire property (i.e., both restricted and unrestricted portions) and the lowest of the three figures should be enrolled.

Valuing Property Under Notice of Nonrenewal
As provided in Government Code section 50282, either the owner of a restricted historical property or the local government entity may serve notice that it does not intend to renew the historical property contract. If such notice is not given, another year is automatically added to the term of the initial contract, thus creating a "rolling" contract term that is always equal to the initial contract term.

Section 439.3 prescribes the valuation method for a restricted historical property in nonrenewal status; this valuation method applies until the end of the restricted period (i.e., until the existing contract expires). In essence, the method results in a restricted value that gradually approaches the historical property's factored base year value as the remaining term under the contract decreases. For a property in nonrenewal status, the assessor must annually value the property as follows:

1. Determine the full cash value (i.e., factored base year value) of the property in accordance with section 110.1. (Alternatively, if the property will not be subject to section 110.1 when the historical property agreement expires, determine its fair market value in accordance with Attachment 7
9 section 110, as if the property were free of the agreement's restrictions; or, if the property will be subject to another type of restricted value standard when the historical property agreement expires, determine the property's value as if it were subject to the new restrictions.)

2. Determine the restricted value of the property by the capitalization of income method provided in section 439.2.

3. Subtract the restricted value determined in Step 2 from the factored base year (or other) value determined in Step 1.

4. Using the amount for the interest rate component (section 439.2(b)(1)) announced by the Board, discount the amount obtained in Step 3 for the number of years remaining until the termination of the contract.

5. Determine the restricted value of the property in nonrenewal status by adding the value determined in Step 2 to the amount obtained in Step 4.

The historical property's restricted value in nonrenewal status—that is, the value determined above, in accordance with section 439.3—should be compared with the historical property's factor base year and current market values, and the lowest of these three values should be enrolled as the property's taxable value.

Cancellation of Contract
The government entity party to a historical property contract may cancel the contract, after notice and a public hearing, if it determines that either the owner has breached the agreement or the property has deteriorated to the extent that it no longer meets the standards of a historical property. If the contract is cancelled, the property owner must pay a cancellation fee equal to 12½ percent of the property's current fair market value as though free of the contractual restriction, such value to be determined by the county assessor. After a contract is cancelled, the lower of the property's factored base year value or current market value should be enrolled for the ensuing lien date.

SUMMARY
The key points contained in these guidelines can be summarized as follows:

1. An owner of qualified historical property may enter into a preservation contract with local government. When property is placed under such a contract, the owner agrees to restore the property if necessary, maintain its historic character, and use it in a manner compatible with its historic characteristics. Such property receives the special valuation treatment prescribed under Revenue and Taxation Code sections 439 through 439.4.

2. Enforceably restricted historical property is to be annually valued by the income capitalization method prescribed in section 439.2, which contains specific instructions with Attachment 7
10 regard to the income to be capitalized, the capitalization rate, and the capitalization technique to be used. The restricted value must be compared to the property's current market value and factored base year value, with the lowest of these three values enrolled as the property's taxable value.

3. When assessing restricted historical property, the appraiser should consider how three important elements of article XIII A—change in ownership, new construction, and supplemental assessment—relate to the assessment. The appraiser should consider how a property should be assessed when only a portion of it is subject to a historical property agreement.

4. Restricted historical property under a notice of nonrenewal should be valued in accordance with section 439.3.

5. The government entity party to a historical property contract may cancel the contract. The cancellation fee is 12½ percent of the property's current fair market value as though free of the contractual restriction, with such value to be determined by the local assessor.

Additional information about Mills Act contracts may be obtained from the state Office of Historic Preservation, either by telephone at 916-653-6624, or from their website (www.ohp.parks.ca.gov).
(Note: Please see the assessment examples following.)
Attachment 7
Historical Property Valuation Examples Page 1
EXAMPLE 1 (OWNER-OCCUPIED SINGLE-FAMILY RESIDENCE)
Subject Restricted Historical Property
Restored, 105-year-old, Victorian single-family residence. Excellent condition. Under Mills Act contract since 1985 and not in nonrenewal status. Owner-occupied.

Determination of Restricted Value (current lien date)
Gross income (Fair rent)
$1,500 per month x 12 months = $18,000
Less: Anticipated vacancy and collection loss
$18,000 x 5% - 900
Effective gross income $17,100
Less: Anticipated operating expenses
Grounds maintenance $600
Fire insurance 400
Management Fee 360
Water and garbage 240
Building maintenance + 500 - 2,100
Net Operating Income $15,000
Restricted Capitalization Rate
Rate Components:

Interest rate .080
Risk (owner-occupied SFR) .040
Property tax (ad valorem) .015
Amortization (50-year remaining life; improvements
constitute 70% of total property market value;

0.02 x 0.70 – 0.014) + .014 .149
Restricted Value
$15,000 ÷ .149 = $100,671
Taxable Value—Three-Way Value Comparison
Restricted value $100,671
Factored base year value (based on prior change in ownership) $357,000 Current market value (based on comparable sales) $450,000 The lowest of the three possible values is the restricted value. Thus, the net taxable value would be $93,671 ($100,671 restricted value less the homeowners' exemption of $7,000).

Note 1: If this property had been a non-owner-occupied SFR, the only difference in the determination of the restricted value would have been the use of a risk rate component of 2% rather than 4% in the capitalization rate.

Note 2: In this and the following examples, the gross income, or fair rent, is presented on a gross rent basis, that is, under the assumption that the landlord-owner pays all operating expenses out of the gross income.

Attachment 7
Historical Property Valuation Examples Page 2
EXAMPLE 2 (OFFICE USE)
Subject Restricted Historical Property
Multi-tenant, restored historical office building in a downtown commercial district. Under Mills Act contract since 1985 and not in nonrenewal status.

Determination of Restricted Value (current lien date)
Gross Income (Fair rent):

Offices 140,000 sf @ $1.75/sf = $245,000
x 12 months = $2,940,000
Less: Anticipated vacancy and collection loss
$2,940,000 x 5% - 147,000
Effective gross income $2,793,000
Less: Anticipated operating expenses
Management $290,000
Maintenance 95,000
Insurance 75,000
Utilities 360,000
Janitorial + 140,000 - 960,000
Net Operating Income $1,833,000
Restricted Capitalization Rate
Rate Components:

Interest component .08
Risk .02
Property tax (ad valorem) .011
Amortization (50-year remaining life; improvements
constitute 75% of total property market value

0.02 x 0.75 = 0.015) + .015 .126
Restricted Value
($1,833,000 ÷ .126) = $14,547,619
Taxable Value—Three-Way Value Comparison
Restricted value $14,547,619
Factored base year value (based on prior change in ownership) $18,191,077 Current market value (based on comparable sales) $21,000,000 The lowest of the three possible values is the restricted value. Thus, the taxable value would be $14,547,619
Attachment 7
Historical Property Valuation Examples Page 3
EXAMPLE 3 (MIXED USE—RESIDENTIAL AND OFFICE)
Subject Restricted Historical Property
Two-story, restored historical property in a downtown district. Upper level is residential unit occupied by owner. Lower level contains three office spaces subject to short-term rental agreements. The income stream for the upstairs unit must be calculated separately from the downstairs unit because the risk rate is different for the owner-occupied unit.

Determination of Restricted Value
Separate restricted values for the upper-level residence and the lower-level office space must be determined, because the risk components are different for restricted value is sum of these two values.

Upper-Level Unit
Gross income (Fair rent) based upon comparable rent data the two types of use. The total
$975 per month x 12 months = $11,700
Less: Anticipated vacancy and collection loss
$11,700 x 5% - 585
Effective gross income
Less: Anticipated operating expenses
Grounds maintenance $300
$11,115
Fire insurance 200
Management Fee 180
Water and garbage 120
Building maintenance + 250 - 1,050
Upper-Level Net Operating Income $10,065
Restricted Capitalization Rate (owner-occupied SFR)
Rate components:

Interest rate .080
Risk .040
Property tax .010
Amortization ( 50-year remaining life; improvements
constitute 70% of total property market value;

0.02 x 0.70 = 0.014) + .014 .144
Upper-level Restricted Value ($10,065 ÷ .144) = $69,895 Lower-Level Offices
Gross income (Fair rent)
1000 sf @ $1.60/sf = $1,600 x 12 months $19,200
Less: Anticipated vacancy and collection loss
$19,200 x 5% - 960
Effective gross income $18,240
Attachment 7
Historical Property Valuation Examples Page 4
Less: Anticipated operating expenses
Grounds maintenance $300
Fire insurance 200
Management Fee 180
Water and garbage 120
Building maintenance + 250 - 1,050
Lower-Level Net Operating Income $17,190
Restricted Capitalization Rate
Rate components:

Interest component .080
Risk .020
Property tax .010
Amortization (50-year remaining life; improvements
constitute 70% of total property market value;

0.02 x 0.70 = 0.014) + .014 .124
Lower Level Restricted Value ($17,190 ÷ .124) $138,629
Add: Upper Level Restricted Value + $69,895
Total Restricted Value $208,524
Taxable Value—Three-Way Value Comparison
Restricted Value $208,524
Factored base year value (based upon prior change in ownership) $364,140 Current market value (based upon comparable sales data) $400,000 The lowest of the three possible values is the restricted value. Thus, the net taxable value would be $201,524 ($208,524 less the homeowners' exemption of $7,000).

Attachment 7
Historical Property Valuation Examples Page 5
EXAMPLE 4 (MIXED VALUATION—PART RESTRICTED AND PARTUNRESTRICTED) Description of Subject Property (Comprises Both Restricted and UnrestrictedPortions) The subject property is a 10-acre parcel with a farmhouse and barn situated on 2 acres; the remaining 8 acres are farmland. The farmhouse and barn are used as an owner-occupied singlefamily residence; this portion of the property is restricted remaining 8 acres of farmland are unrestricted.

Value of Restricted Portion (current lien date)
Gross income (Fair rent) for farmhouse and barn
under a Mills Act contract. The
$2,000 per month x 12 months = $24,000
Less: Anticipated vacancy and collection loss
$24,000 x 5% - 1,200
Effective gross income $22,800
Less: Anticipated operating expenses
Grounds maintenance $600
Fire insurance 400
Management Fee 360
Water and garbage 240
Building maintenance + 500 - 2,100
Net Operating Income = $20,700
Restricted Capitalization Rate
Rate components:

Interest component .080
Risk (owner-occupied) .040
Property tax (ad valorem) .010
Amortization (50-year remaining life; improvements
constitute 70% of total property market value

0.02 x 0.70 = 0.014) + .014 .144
Restricted Value ($20,700 ÷ .144) = $143,750
Taxable Value—Three-Way Comparison
Total Property Restricted Value (sum of restricted value above and lower of FBYV or current market value of unrestricted portion)
Restricted Value (portion under contract) $143,750
FBYV (unrestricted portion) + $102,000
Restricted Value (total property) $245,750
Factored base year values (based upon a prior change in ownership of the entire property, allocated between restricted and unrestricted portions):

Farmhouse, barn, and 2 acres (restricted portion) $204,000 8 acres (unrestricted portion) + $102,000
Total FBYV (total property) $306,000
Attachment 7
Historical Property Valuation Examples Page 6
Current market values (based upon comparable sales data):

Farmhouse, barn, and 2 acres (restricted portion) $230,000 8 acres (unrestricted portion) + $120,000
Total Current Market Value (total property) $350,000
The lowest of the three values is the Restricted Value (total property), $245,750. Thus, the net taxable value would be $238,750 ($245,750 less $7,000 homeowners' exemption).

Attachment 7
Historical Property Valuation Examples Page 7
EXAMPLE 5 (PROPERTY IN NONRENEWALSTATUS)
Description of Subject Restricted Historical Property
The same property as in Example 2, except the property owner has served notice of nonrenewal.

The Mills Act contract covering the property was originally executed in September 1995, and the owner served notice of nonrenewal in June 2004. Value the property for the 2005 lien date, reflecting its nonrenewal status. Assume that the property's restricted, current market, and factored base year values from Example 2, provided below, also refer to January 1, 2005.

Restricted value $14,547,619
Current market value $21,000,000
Factored base year value $18,191,077
Restricted Value in Nonrenewal Status
Value as if unrestricted (factored base year value) $18,191,077 Restricted value - 14,547,619
Difference $ 3,643,458
Present worth of difference
PW1 @ 6.00 %, 9 years (interest component for lien date 2005) x .591898 Plus restricted value
= $ 2,156,555
+ $14,547,619
Restricted value in nonrenewal status—lien date January 1, 2005 $16,704,174 Taxable Value
Since the restricted value in nonrenewal status, $16,704,174, is less than either the property's current market value or its factored base year value, this is the taxable value.

Attachment 7

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
August 2, 2022

PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Marnie Waffle, AiCP, Senior Planner
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Consideration of a recommendation from the Historic Resources Board to the City Council that the City Council enter into a Mills Act Historical Property Contract MA 21- 239 (Carmel Beach Hotel & Spa) with Esperanza Carmel Commercial, LLC for the historic ‘Colonial Terrace Inn’ now known as Carmel Beach Hotel & Spa located at the northeast corner of San Antonio Avenue and 13th Avenue (APN 010-286-015) RECOMMENDATION:

Accept the recommendation of the Historic Resources Board, and Approve the Mills Act Historical Property Contract MA 21-239 (Carmel Beach Hotel & Spa) for the historic ‘Colonial Terrace Inn’ now known as the Carmel Beach Hotel & Spa located at the northeast corner of San Antonio Avenue and 13th Avenue (APN 010-286-015) and authorize the City Administrator to execute the contract.

BACKGROUND/SUMMARY:

The project site is located at the northeast corner of San Antonio Avenue and 13th Avenue in the SingleFamily Residential (R-1) District. The existing hotel is currently undergoing renovation and rebranding including changing the name from Colonial Terrace Inn to Carmel Beach Hotel & Spa. The hotel consists of six one- and two-story wood-framed single-family residences constructed between 1930 and 1949 and converted into guest rooms to provide visitor accommodations.

The property was placed on the local register on September 15, 2003, and the local inventory on May 25, 2005.

On April 18, 2022, the Historic Resources Board adopted Resolution 2022-003-HRB (Attachment 5), recommending that the City Council enter into a Mills Act Contract with Esperanza Carmel Commercial, LLC for the historic ‘Colonial Terrace Inn’ property.

At previous Mills Act hearings, members of Council requested that staff obtain a preliminary calculation of Mills Act Contract values for the purposes of understanding the potential local tax revenue offset. The Assessor’s Office typically does not provide preliminary amounts, but in this case agreed to provide an estimate if staff could provide recent income information for the business. Staff spoke to the business operator and made this request, but was not able to obtain the information (The County will also request this information when attempting to calculate the revised valuation if a Mills Act Contract is granted). As a result, the Assessor’s Office could not provide a preliminary amount, and therefore staff cannot provide the actual or estimated value of property tax reduction for Council’s consideration.

The primary purpose for offering Mills Act contracts in the City of Carmel-by-the-Sea is to assist in and ensure the rehabilitation or restoration and long-term maintenance of historic resources.

The Historic Resources Board considers each application for a Mills Act contract and provides a recommendation to the City Council to approve, approve with conditions, or deny the application.

Staff Response: A DPR 523A form was prepared by Kent L. Seavey on August 28, 2002 (Attachment 3), evaluating the Colonial Terrace Inn for historical significance and finding the property meets the criteria for listing as a local historic resource. The City added the property to the Carmel Inventory of Historic Resources, and a Resolution was recorded with Monterey County on January 4, 2007 (Instrument No. 2007001154). The application meets this finding. ii. The proposed rehabilitation/restoration and maintenance plan is appropriate in scope and sufficient in detail to guide long-term rehabilitation/restoration and maintenance. Required maintenance and rehabilitation should be more significant than just routine maintenance that would be expected for any property.

Staff Response: The proposed rehabilitation/restoration and maintenance plan (Attachments 3 and 4) includes improvements that will protect the integrity of the resource including replacing interior piping throughout the hotel property; replacing the HVAC system; replacing electrical writing; replacing existing fireplaces with new energy-efficient appliances; installing fire sprinkler and fire alarm systems; maintaining the exterior paint; annual inspection of fireplaces; replacing all windows and doors; insulation and caulking repairs; improving existing walkways to meet Americans with Disabilities Act (ADA) requirements; and, other repairs and maintenance activities as set forth in the Plan. In total, the applicant estimates spending over $3.5 million in rehabilitation and maintenance activities over the next 10 years.

All exterior modifications are subject to Design Review approval and a determination of consistency with the Secretary of the Interiors Standards. On August 16, 2021, the Historic Resources Board reviewed the exterior modifications included in the rehabilitation plan and adopted a Determination of Consistency with the Secretary of the Interior’s Standards for the Treatment of Historic Properties (Attachment 7). On September 8, 2021, the Planning Commission approved the Design Review application and the rehabilitation work is now under construction (Attachment 6). The proposed Plan meets this finding. iii. Alterations to the historic resource have been in the past, and will continue to be in the future, limited to interior work and to exterior rehabilitation and alterations that:
(A) Comply with the Secretary’s Standards (future additions only); and (B) Do not significantly alter, damage or diminish any primary elevation or character-defining feature; and
(C) Do not increase floor area on the property by more than 15 percent beyond the amount established in the documented original or historic design of the resource; and (D) Do not result in any second-story addition to a single-story historic resource.

Staff Response: As noted above, the proposed exterior alterations were reviewed and found to be in compliance with the Secretary’s Standards. The alterations include preserving character-defining features including the exterior wall cladding, roof forms, window styles and openings, and informal gardens. The floor area will not increase by more than 15 percent beyond the amount documented in the DPR 523A form.

Existing storage areas that were formerly garage spaces, will be repurposed for hotel amenities. A small hallway (or “hyphen”) between Buildings F and G will be constructed to connect the amenity spaces and can be removed in the future without detriment to the historic fabric of the hotel. The application meets this finding.
iv. The Mills Act contract will aid in offsetting the costs of rehabilitating and maintaining the historic resource.

Staff Response: As described in the rehabilitation/restoration and maintenance plan, the applicant estimates spending over $3.5 million in rehabilitation work over the next 10 years. The property tax savings would aid in offsetting the cost of rehabilitating the hotel. The application meets this finding. v. Approval of the Mills Act contract will represent an equitable balance of public and private interests and will not result in a substantial adverse financial impact on the City.

2. Carmel currently has 283 historic resources, and since the adoption of the Mills Act program in 2004, the City has entered into a total of ten Mills Act Contracts.

4. The value of preserving the historic hotel offsets the loss of property tax revenue.

FISCAL IMPACT:

The City will have a diminished tax base from the property at the northeast corner of San Antonio Avenue and 13th Avenue for the term of the contract. The amount is unknown at this point.

PRIOR CITY COUNCIL ACTION:

On March 3, 2020, the City Council adopted standard contract language for Mills Act Contracts.

ATTACHMENTS:

Attachment 1) Draft Standard Mills Act Contract
Attachment 2) Exhibit A - Legal Description
Attachment 3) Exhibit B - DPR 523A Block Y; Lots 7, 9, 12, 14, & 16 Attachment 4) Exhibit C - Maintenance Plan
Attachment 5) Resolution 2022-003-HRB
Attachment 6) Photographs of Exterior
Attachment 7) Guidelines for the Assessment of Enforceably Restricted Historical Property OAK #4831-0417-0411 v2

RECORDING REQUESTED BY

CITY OF CARMEL-BY-THE-SEA

AND WHEN RECORDED MAIL TO

Carmel City Hall
Attn: Community Planning & Building
P.O. Box CC
Carmel-By-The-Sea, CA 93921 This space reserved for the Recorder’s use only

CITY OF CARMEL-BY-THE-SEA

MILLS ACT HISTORIC PROPERTY PRESERVATION CONTRACT
THIS AGREEMENT is made and entered by and between the CITY OF CARMEL-BY-THE-SEA a municipal corporation (hereinafter referred to as “City”), and ESPERANZA CARMEL COMMERCIAL, LLC (hereinafter referred to as “Owner”).

RECITALS
(i) California Government Code Section 50280, et seq. (known as the Mills Act) authorizes cities to enter into contracts with the owners of qualified historic properties to provide for their appropriate use, maintenance, and restoration such that these historic properties retain their historic characteristics;
(ii) The Owner possesses fee title in and to that certain real property, together with associated structures and improvements thereon, located at San Antonio Avenue northeast of 13th Avenue (APN: 010-286-015), Carmel-By-The-Sea, California, (hereinafter referred to as the “Historic Property”). A legal description of the Historic Property is attached hereto, marked as “Exhibit A” and is incorporated herein by reference;
(iii) The property is identified as a historic resource on the City of Carmel-By-The-Sea’s Historic Inventory and Register of Historic Resources and is further described in the DPR 523A Form attached hereto, marked as “Exhibit B” and is incorporated herein by reference;
(iv) City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property, as it exists at the date of this contract and as described in the City’s Register of Historic Resources and the National Register of Historic Places, and to qualify the Historic Property for an assessment of valuation pursuant to the provisions of Article 1.9 (commencing with section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

Attachment 1
OAK #4831-0417-0411 v2
NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions contained herein, do hereby agree as follows:

1. INCORPORATION OF RECITALS. All recitals are incorporated into this Agreement.

2. EFFECTIVE DATE AND TERM. This Agreement shall be effective and commence on the date the Agreement is signed by the City unless otherwise indicated by the County of Monterey and shall remain in effect for a minimum term of ten (10) years thereafter.

3. AUTOMATIC RENEWAL. Each year, upon the anniversary of the effective date of this Agreement (hereinafter referred to as “annual renewal date”), one (1) year shall be added automatically to the term of this Agreement, unless timely notice of non-renewal is given as provided in paragraph 4 of this Agreement. The total length of the contract shall not exceed twenty (20) years.

4. NOTICE OF NONRENEWAL. If City or Owner desires in any year not to renew this Agreement, that party shall serve written notice of nonrenewal in advance of the annual renewal date of this Agreement as follows: Owner must serve written notice of nonrenewal at least ninety (90) days prior to the annual renewal date; City must serve written notice of the non-renewal at least sixty (60) days prior to the annual renewal date. If notice is not received, the Agreement shall automatically be renewed for another year. Upon receipt by Owner of a notice of non-renewal from the City, Owner may make a written protest. At any time prior to the annual renewal date, City may withdraw its notice of nonrenewal.

5. EFFECT OF NOTICE OF NON-RENEWAL. If either City or Owner serves timely notice of nonrenewal in any year, and this contract is not renewed, this Agreement shall remain in effect shall remain in effect for the balance of the period remaining since the original execution or the last annual renewal date.

8. PRESERVATION OF PROPERTY. Owner shall preserve and maintain the characteristics of historical significance of the Historic Property and agrees to complete rehabilitation and/or maintenance activities as defined in the Rehabilitation/Restoration and Attachment 1
OAK #4831-0417-0411 v2
Maintenance Plan attached as “Exhibit C”. Requests for revisions to the Maintenance and Rehabilitation plan shall be reviewed by the Historic Resources Board prior to implementation. In addition, Owner shall comply with the terms of the City’s Historic Preservation Ordinance (CMC 17.32). Owners shall not be permitted to further impede any view corridor with any new structure, including but not limited to walls, fences, or shrubbery, so as to prevent the viewing of the Historic Property from the public right-ofway.

10. INSPECTIONS. Owner shall allow periodic examinations, at least every five (5) years, with reasonable notice thereof, of the interior and exterior of the Historic Property by representatives of the County of Monterey Assessor and the City of Carmel-By-The-Sea as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement. The City will coordinate inspections by such other agencies that have jurisdiction and will keep them to the minimum necessary to determine such compliance.

13. CANCELLATION. The City has the right to cancel the contract if the owner allows the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The City also has the right to cancel this contract if the owner(s) breaches the provisions of paragraph’s # 8, 9, 10, or 12 of this Agreement after the City has provided reasonable notice of any failure to comply with the agreement and a public hearing. Notice of the hearing shall be mailed to the last known address of each owner of the property, with the notice conforming to the provisions of Government Code section 6061., If after notice and a hearing, the contract is canceled, termination of the Agreement is immediate, and the owner shall pay a cancellation fee equal to 12.5 percent of the current fair market value of the property, as determined by the Monterey County Assessor as though the property were free of the contractual restriction. The cancellation fee shall be paid to the Assessor, at the time and in the manner that the Assessor shall prescribe. City’s right to cancel this Agreement pursuant to this paragraph Attachment 1
OAK #4831-0417-0411 v2
shall in no way limit or restrict its rights or legal remedies arising from City’s Historic Preservation Ordinance and Municipal Code.

16. BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, reservations, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. A successor in interest shall have the same rights and obligations under this Agreement as the original owner who executed the Agreement.

Each and every contract, deed, or other instrument hereinafter executed, governing or conveying the Historic Property, or any portion thereof shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations and restrictions expressed in this Agreement regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historic characteristics and significance of the Historic Property for the benefit of the public and Owner.

City: Carmel-By-The-Sea
Community Planning & Building Department
Attn: Community Planning & Building Director
P.O. Box CC
Carmel-By-The-Sea, CA 93921
Attachment 1
OAK #4831-0417-0411 v2
Owner: Esperanza Carmel Commercial, LLC
PO Box 134
Carmel, CA 93921
Notice to successors in interest to either party shall be sent to the appropriate address.

In the case of future Owner(s) of the Historic Property, notice shall be sent to the address on file with the county property tax office in power at the time.

19. STATE LAW. The Owner or agent of Owner shall provide written notice of this Agreement to the State Office of Historic Preservation within six (6) months of the date of this Agreement.

21. AMENDMENTS. This agreement may be amended in whole or in part, only by a writtenrecorded instrument executed by the parties hereto.

22. DESTRUCTION OF PROPERTY; EMINENT DOMAIN; CANCELLATION. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be canceled because the historic value of the structure will have been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be canceled. No cancellation fee pursuant to Government Code Section 50286 shall be imposed if the Agreement is canceled pursuant to this paragraph. Such Agreement shall be null and void for all purposes of determining the value of the property so acquired.

23. INDEMNIFICATION. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents, and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any Attachment 1
OAK #4831-0417-0411 v2
federal, state or local government agency, arising out of or incident to the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restriction on the use of development of the Historic Property, from application or enforcement of the City’s Municipal Code, or from the enforcement of this Agreement.

IN WITNESS THEREOF, the City and Owners have executed this Agreement on the day and year written above.

CITY OF CARMEL-BY-THE-SEA:

By: _______________________ Date: __________________
Name: Richard L. Rerig (“Chip”)
Title: City Administrator

PROPERTY OWNER(S):

By: __________________________ Date: ___________________ Name: Patrice Pastor
Esperanza Carmel Commercial, LLC
Title: Property Owner
Attachment 1
OAK #4831-0417-0411 v2

EXHIBIT A

LEGAL DESCRIPTION

EXHIBIT B
DPR 523A FORM for ‘Colonial Terrace Inn’

EXHIBIT C

REHABILITATION/RESTORATION AND MAINTENANCE PLAN
Attachment 1
Order Number: 2714-5995247
Page Number: 5
First American Title

Page 5 of 14 ends

Carmel-by-the-Sea City CouncilAugust 2, 2022

Carmel-by-the-Sea City Council
August 2, 2022