Agenda
JUNE-14-2022-AGENDA-PACKET.PDF
Meeting Materials
9J-SUPPLEMENTAL-INFORMATION.PDF
1. Documents:
2. Documents:
_
AGENDA
REGULAR MEETING OF THE
CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF
THE RDA FOR THE CITY OF KING
TUESDAY JUNE 14, 2022
6:00 P.M.
CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
The City Council meeting will be conducted in hybrid in-person/virtual format.
To join the meeting virtually, please use the link below to join the Zoom meeting:
https://bit.ly/3e0zvaR
Meeting ID: 881 5287 9536
Or by telephone: 1-669-900-9128
Passcode: 052933
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, Please contact the City Clerk's Office (831-386-5925) at least 48 hours prior to the Meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting. * Please submit all correspondence for City Council PRIOR to the meeting with a copy to the City Clerk.
1. CALL TO ORDER
2. ROLL CALL: Council Members Darlene Acosta, Robert Cullen, Carlos DeLeon, Mayor Pro Tem Carlos Victoria, and Mayor Mike LeBarre
3. FLAG SALUTE
4. CLOSED SESSION ANNOUNCEMENTS
5. SPECIAL PRESENTATIONS
None
6. PUBLIC COMMENT
Any member of the public may address the Council for a period not to exceed three minutes’ total on any item of interest within the jurisdiction of this Council that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member. Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.
7. COUNCIL COMMUNICATIONS & COMMITTEE REPORTS
Individual Council Members may comment on Council business, his or her Council activities, City operations, projects or other items of community interest. Council Members may also request staff to report back at a subsequent meeting on any matter or take action to direct staff to prepare a staff report for a future agenda.
8. STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.
9. CONSENT AGENDA
The following items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.
The Council may approve the remainder of the Consent Agenda on one motion. Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.
A. Consideration: Meeting Minutes of May 24, 2022, Council Meeting Recommendation: approve and file.
B. Consideration: City of King Check Register May 16, through May 31, 2022 Recommendation: receive and file.
C. Consideration: Successor Agency Register May 16, through May 31, 2022 Recommendation: receive and file.
D. Consideration: King City Community Power (KCCP) Register April 1, 2022 through April 30, 3022
Recommendation: receive and file.
E. Consideration: Support for the Governor’s CARE Court Proposal and SB 1338 Recommendation: approve and authorize the Mayor to send a letter supporting SB 1338 and the Governor’s CARE Court proposal.
F. Consideration: A Memorandum of Understanding for Extension of The ProYouth Heart After-School Expanded Learning Program for FY 2022-23 Recommendation: approve and authorize the City Manager to execute a new Memorandum of Understanding (MOU) with ProYouth and the King City Union School District for the after-school HEART expanded learning program for FY 2022-23.
G. Consideration: Resolutions Consenting to Inclusion of King City Properties In The Golden State Finance Authority Pace Programs And Associate Membership In Golden State Finance Authority
Recommendation: 1) adopt Resolution 2022-4880 consenting to Inclusion of Properties within the City’s Incorporated Area in GSFA Community Facilities District No. 2014-1 (Clean Energy) to Finance Renewable Energy Generation, Energy Efficiency, Water Conservation and Electric Vehicle Charging Infrastructure Improvements and approving associate membership in GSFA; and 2) adopt Resolution 2022-4881 consenting to Inclusion of Properties within the City’s Incorporated Area in the GSFA PACE Program to Finance Renewable Energy Generation, Energy and Water Efficiency Improvements and Electric Vehicle Charging Infrastructure and approving associate membership in GSFA.
H. Consideration: Award of Contract for Annual Tree Trimming Services Recommendation: award a contract services agreement for two years of annual tree trimming services to Topes Tree Service, Inc. in the amount of $120,000; and 2) authorize the City Manager to approve up to $25,000 in change orders each year of the contract.
I. Consideration: Memorandum of Understanding with the King City Confidential Employees Association
Recommendation: approve a Memorandum of Understanding (MOU) between the City of King and the King City Confidential Employees Association (KCCEA) for the period of July 1, 2022 through June 30, 2025.
J. Consideration: Memorandum of Understanding with the Service Employees International Union Local 521
Recommendation: approve a Memorandum of Understanding (MOU) between the City of King and Service Employees International Union (SEIU) Local 521 for the period of July 1, 2022 through June 30, 2025.
K. Consideration: 2022 Community Opinion Survey Results Recommendation: receive the results and analysis of the 2022 King City Community Opinion Survey.
L. Consideration: Resolution for the 2022 General Municipal Election Recommendation: adopt a Resolution ordering an election, requesting County Elections to conduct the election, and requesting consolidation of the election.
M. Consideration: A Resolution of the City Council of the City of King Making Findings Related to the Continued Existence of a State of Emergency Due to Covid-19 and Re-Authorizing the Conduct of Public Meetings of the Legislative Bodies of the City Via Remote Teleconferencing for an Additional 30-Day Period Pursuant to The Ralph M. Brown Act as Amended by Assembly Bill No. 361
Recommendation: adopt a Resolution making findings related to the continued existence of a State of Emergency due to COVID-19 and re-authorizing the conduct of public meetings of the legislative bodies of the city via remote teleconferencing for an additional 30-day period pursuant to the Ralph M.
Brown act as amended by AB 361.
10. PUBLIC HEARINGS
A. Consideration: Riverview Gardens Landscape Maintenance District Annual Assessment for Fiscal Year 2022-23
Recommendation: open the Public Hearing to accept public testimony regarding the levy and collection of assessments for the Riverview Gardens Landscape Maintenance District, close the public hearing, and adopt Resolution No. 2022-4879 approving the report and ordering the levy and collection of assessments for the Riverview Gardens Landscape Maintenance District pursuant to provisions of the Landscaping and Lighting Act of 1972 of the Streets and Highways Code of the State of California.
B. Consideration: Revised Allocations for the Permanent Local Housing Allocation (“PHLA”) Grant Program
Recommendation: adopt a Resolution authorizing a revised application submittal to the California Department of Housing and Community Development Department (“HCD”) to receive and administer $134,185 in the first year and $805,115 over a 5-year period in Permanent Local Housing Allocation Program (“PLHA”) Grant funds.
C. Consideration: A Resolution of the City Council of the City of King, California, Submitting to the Voters at the General Municipal Election to be Consolidated with the Statewide General Election Held on Tuesday, November 8, 2022, Questions and an Ordinance Relating to Increasing and Extending the Transaction and Use Tax and Expenditures Therefrom
Recommendation: waive reading of title of Resolution No. 2022-4882 and Ordinance No.2022-810 and adopt a Resolution submitting to City voters at the next regular election to be held on November 8, 2022 a ballot measure to adopt an Ordinance approving an increase and extension in the sales tax to
1.5% for 10 years and approval of the Ordinance attached thereto which will also be submitted to the voters.
11. REGULAR BUSINESS
A. Consideration: Bus Stop Infrastructure Improvements for King City Fixed Route Circular Project – Proposed Project Award Recommendations and Reimbursement Agreement, Including Adopting Finding of a Categorical Exemption, Pursuant to Section 15301 of the CEQA Guidelines Recommendation: 1) receive a presentation on proposed bus stops for the proposed new Monterey Salinas Transit (MST) King City fixed bus route; 2) award the bid for bus stop infrastructure improvements to Alfredo’s Concrete in the amount of $29,972.40; 3) authorize the City Manager to approve change orders up to 15 percent; 4) approve a reimbursement agreement between MST and the City of King; and 5) adopt a finding of a categorical exemption, pursuant to Section 15301 of the CEQA Guidelines.
B. Consideration: USA Waste of California (DBA Waste Management) Garbage and Recycling Collection Service Fees for Fiscal Year 2022-23 Recommendation: adopt a Resolution approving Waste Management’s garbage and recycling collection adjusted rates for Fiscal Year 2022-23 effective July 1, 2022, resulting in a 6.24% increase.
C. Consideration: Adjustments to the FY 2022-23 Budget
Recommendation: 1) approve the recommended adjustments to the FY 2022- 23 Budget; 2) adopt a Resolution establishing the appropriation limit from tax proceeds for FY 2022-23; and 3) receive a presentation on the City’s PERS rates and unfunded pension obligations.
12. CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.
A. Public Employee Performance Evaluation Pursuant to Government Code Section 54957:
Title: City Manager
B. Conference With Legal Counsel— Pending Litigation
Pending Litigation Pursuant to Government Code Section 54956.9(d): (One case) Working Families of Monterey County and Efrain Aguilera v. The King City Planning Commission and King City City Council
13. ADJOURNMENT
The City of King is an equal opportunity provider and employer.
Not official minutes of the meeting.
RE D U C E R E U S E R E C Y C L E
“To manage Salinas Valley solid waste as a resource, promoting sustainable, environmentally sound and cost-effective practices through an integrated system of waste reduction, reuse, recycling, innovative technology, customer service, and education.”
BOARD OF DIRECTORS
M E E T I N G HI G H L I G H T S
May 19, 2022
TONNAGE REPORT
The Authority landfilled 52,784 tons of solid waste in the quarter ended March 2022. This is a 0.2% increase in landfilled waste compared to the same quarter of 2021. The landfilled waste for this quarter was made up from 60.8% from the City of Salinas,
18.2% from the County, and 20.8% from the south county cities.
The 111 tons of self-hauled material from outside the service area made up 0.2% and came from Santa Cruz County, western
Monterey County non-Authority area, Santa Clara County, and San Benito County. A total of 14,402 tons of materials were diverted for the quarter ended March 2022. This is a -5.6% decrease over the same quarter of the previous year. The decrease in diverted material is due mainly to a decrease in asphalt in concrete when compared to the same quarter last year.
UPDATE ON THE SUN STREET TRANSFER STATION RELOCATION PROJECT The County of Monterey indicated that there have been unforeseen permitting issues that will potentially delay the Sun Street Transfer Station relocation to Madison Lane Transfer Station to possibly between the end of 2022 and the first half of 2023. This delay will require adjustments to the Authority’s budget and rates for fiscal year 2022-23 that were adopted in March 2022. The approved budget included reductions in rates and staff positions along with the understanding that the Authority would relocate on or before July 1, 2022 and commence waste transfer operations for Republic Services with the existing Authority fleet. Adjustments to rates and/or the previously approved budget will be needed by the end of the fiscal year 2021-22 for the Authority to sustain operations into and possibly through the coming fiscal year.
MEETINGS PROTOCOL
In accordance with Assembly Bill 361 the Board considered the existing conditions of the state of emergency in the State of California, County of Monterey and the Authority. It was determined that they were consistent with the provisions of Government Code section 54953(e), and determined that since a proclaimed state of emergency and a proclaimed local emergency related to COVID-19 are both still currently in effect and persist in the jurisdictional boundaries of the Authority and that with the State, local and CDC officials recommendation measures to promote social distancing in connection with the COVID-19 emergency, the Authority will continue to hold meetings in a hybrid inperson/virtually format.
BOARD OF DIRECTORS STRATEGIC PLANNING SESSION WILL BE TAKING PLACE ON JUNE 30, 2022.
GONZALES CITY COUNCIL CHAMBERS
1:00 PM – 5:00 PM
FINANCIAL REPORT FOR MONTH ENDED MARCH 2022 (75% OF THE FISCAL YEAR) Revenue collected $ 18,911,319 (81.3% of Estimated Revenue of $23,271,850) Expenditures for operations $ 14,620,583 (70.5% of Operating Budget of $20,725,000) Cash balance $ 35,793,874
7(A)
Not official minutes of the meeting.
“Manejar los residuos sólidos del Valle de Salinas como un recurso, promocionando prácticas sostenibles y ecológicamente racionales y practicas costos eficaces a través de un sistema integrado de reducción, reutilización, reciclaje, tecnología innovadora, servicio al cliente y educación.”
R E D U C I R R E U T I L I Z A R R E C I C L A R
JUNTA DIRECTIVA
N O T A S DE S T A C A D A S
19 de mayo 2022
(Agencia gubernamental de gestión de residuos sólidos)
INFORME DE TONELAJE
La Agencia enterró 52,784 toneladas de basura en el trimestre que finalizó en marzo 2022. Esto representa un aumento del 0.2 % en los desechos del basureo en comparación con el mismo trimestre 2021. El 60.8 % de los desechos que se enteraron en el basurero para este trimestre provino de la ciudad de Salinas, el
18.2% fueron del condado y 20.8% de las ciudades del sur del condado. Las 111 toneladas de material auto transportados fueron de afuera del área de servicio representando el 0.2 % y provinieron del condado de Santa Cruz, del oeste del condado de Monterey el área no autorizada, el condado de Santa Clara y el condado de San Benito. Se desviaron un total de 14,402 toneladas de materiales para el trimestre finalizado en marzo 2022. Esta es una disminución de -5,6% con respecto al mismo trimestre del año anterior.
La disminución en el material desviado se debe principalmente a una disminución en el asfalto en el concreto en comparación con el mismo trimestre del año anterior.
PROTOCOLO DE REUNIONES
De acuerdo con el Proyecto de Ley 361 de la Asamblea, el Consejo consideró las condiciones existentes del estado de emergencia en el Estado de California, el Condado de Monterey y la Agencia. Se determinó que eran consistentes con las disposiciones de la sección 54953(e) del Código de Gobierno y se determinó que, dado que un estado de emergencia proclamado y una emergencia local proclamada relacionada con COVID-19 todavía están vigentes y persisten en los límites jurisdiccionales de la Agencia y que con las medidas de recomendación de los funcionarios estatales, locales y de los CDC para promove r el distanciamiento social en relación con la emergencia de COVID -19, la Autoridad continuará realizando reuniones en un formato híbrido presencial/virtual.
ACTUALIZACIÓN SOBRE EL PROYECTO DE REUBICACIÓN DE LA ESTACIÓN DE TRANSFERENCIA DE SUN STREET El condado de Monterey indicó que ha habido problemas de permisos imprevistos que potencialmente retrasarán la reubicación de la estación de transferencia de Sun Street a la estación de transferencia de Madison Lane posiblemente entre fines de 2022 y la primera mitad de 2023. Esta demora requerirá ajustes en el presupuesto de la Agencia y tarifas para el año fiscal 2022-23 que se adoptaron en marzo 2022. El presupuesto aprobado incluía reducciones en tarifas y puestos de personal junto con el entendimiento de que la Agencia se reubicaría el 1 de julio 2022 o antes y comenzaría las operaciones de transferencia de desechos para Republic Services con la flota existente de la Agencia. Se necesitarán ajustes a las tarifas y/o al presupuesto previamente aprobado para fines del año fiscal 2021-22 para que la Agencia mantenga las operaciones al principio y posiblemente durante el año fiscal.
LA SESIÓN DE PLANIFICACIÓN ESTRATÉGICA DEL CONSEJO DIRECTIVA SE LLEVARÁ A CABO EL 30 DE JUNIO 2022
SALAS DEL CONCEJO MUNICIPAL DE GONZALES
1:00 PM – 5:00 PM
INFORME FINANCIERO DEL MES FIN ALIZADO EN MARZO 2022 (75% DEL AÑ O FISCAL) Ingresos recaudados $ 18,911,319 (81.3% del Ingreso Estimado de $23,271,850) Gastos de operaciones $ 14,620,583 (70.5% del Presupuesto Operativo de $20,525,000) Saldo de caja $ 35,793,874
City Council Meeting
May 24, 2022
1.__CALL TO ORDER:
Regular Meeting called to order at 6:00pm by Mayor LeBarre.
2.__ROLL CALL:
City Council: Mike LeBarre, Council member (Teleconference) Darlene Acosta, Rob Cullen (Teleconference), Carlos DeLeon, Mayor Pro Tem Carlos Victoria.
City Staff: City Manager Steven Adams; City Attorney Roy Santos (Teleconference); Executive Admin. Asst./Deputy City Clerk, Erica Sonne.
3.__FLAG SALUTE:
The flag salute was led by Mayor LeBarre.
Mayor LeBarre pulled item 9(I) for approval at this time in the agenda. 9(I) Consideration: A Resolution Re-Authorizing the Conduct of Public Meetings of The Legislative Bodies of the City Via Remote Teleconferencing for a 30-Day Period Pursuant to the Ralph M.
Brown Act as Amended by Assembly Bill No. 361
Action: Motion to approve consent agenda item 9(I) by Victoria and seconded by DeLeon.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
4. CLOSED SESSION ANNOUNCEMENTS:
None
5.__PRESENTATIONS:
None
6. PUBLIC COMMUNICATIONS:
Liz Hall, Public Sector Manager, Waste Management, shared the results of the cleanup event in April. 120 cars came through. 10 roll off boxes capturing 13.27 tons of material with a diversion rate of 47.2%. Salinas Valley Recycles had their hazardous waste truck and collected 205 pounds of waste. Shout out to King City in Bloom who collected 24 bags of trash. Please join in another clean-up event June 25th at the Fairgrounds. She brought flyers that she left with City Manager Adams.
7. COUNCIL COMMUNICATIONS:
Council Member DeLeon stated he had nothing to report tonight.
Council Member Acosta stated she had nothing to report tonight.
Mayor Pro Tem Victoria stated he had nothing to report tonight. 9(A)
Council Member Cullen stated that the Salinas Valley Fair was a smashing success. Solid Waste Authority unfortunately hit a delay in transition out of Sun Street over to Madison Lane.
Mayor LeBarre reminded everyone tomorrow Monterey County and partners are putting on a Mental Health Forum. Dinner will be served; swag bags will be available. Important to know what resources are available and where you can get assistance.
8. CITY STAFF REPORTS AND COMMENTS:
City Manager Steven Adams stated we have a fairly light agenda tonight however next meeting we will be having a very full agenda. We received a notification from Cal Water and restrictions on watering certain days which will affect our parks.
City Attorney Roy Santos stated nothing from him tonight.
9. CONSENT AGENDA
A. Consideration: Meeting Minutes of May 10, 2022, Council Meeting B. Consideration: City of King Check Register May 1, through May 15, 2022 C. Consideration: Successor Agency Register May 1, through May 15, 2022 D. Consideration: King City Swim Team Program and Amendment to Master Fee Schedule E. Consideration: Direction Related to City Affordable Housing Incentives, for the Chispa Mills Ranch Affordable Housing Project and Designate the Police Chief to Sign Documents Related to the Chispa Mills Ranch Affordable Housing Project
F. Consideration: Proposed Staffing and Salary Adjustments G. Consideration: FY 2022-23 Street Improvement Project, Including Adoption of Finding of a Categorical Exemption, Pursuant to Section 15301 of the CEQA Guidelines H. Consideration: Appropriation for New Slide Pool Pump City Manager Adams needed to pull item 9(E) due to a conflict.
Action: Motion to approve consent agenda items A-D and F-H by Victoria and seconded by DeLeon.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
City Manager Adams left the room.
Action: Motion to approve consent agenda items 9(E) by Victoria and seconded by DeLeon.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
City Manager Adams returned to the council chambers.
10. PUBLIC HEARINGS:
None
11. REGULAR BUSINESS:
A. Consideration: King City Community Power Operational Agreement and Rate Setting Update City Manager Adams introduced this item.
Kelly Foley further introduced this item and answered some questions.
Staff believes it is essential to maintain rates no higher than PG&E in order to maintain its customer base and credibility given the representations that were made when KCCP was formed. Given the changing circumstances, staff recommends the City and Pilot agree to the one-year automatic extension prior to entering into a new long-term agreement to provide time to better determine KCCP’s ability to remain competitive with PG&E in the future. This would provide time over the next 6-month period to monitor the financial position of KCCP, develop new long-range revenue projections, gather additional information about energy markets and PCIA charges, and have time to establish a relationship with the new Pilot ownership. It is also recommended the City forego the payment from KCCP in FY 2022-23 and attempt to reinstate a reduced amount in FY 2023-24. The disadvantage of providing only a one-year extension is that it limits Pilot’s ability to hedge its power purchases in order to reduce costs.
Council believes staff is moving in the right direction and would like to keep moving in this direction. The rate recommendations will be presented at the July 12th meeting.
12. CITY COUNCIL CLOSED SESSION
A. Conference with Labor Negotiators
Pursuant to Government Code Section §54957
Agency Representative: Steven Adams
Employee Organization: KCCEA
B. Conference with Labor Negotiators
Pursuant to Government Code Section §54957
Agency Representative: Steven Adams
Employee Organization: SEIU
C. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of Government Code Section 54956.9(d): (One case)
Existing facts and circumstances for closed session consist of the receipt of a written threat of litigation entitled “Notice of Intent to File a Verified Writ of Mandate” from Finney Arnold, LLP, on behalf of proposed petitioners Working Families of Monterey County and Efrain Aguilera, which notice was received by the City Clerk on May 16, 2022. The threatened litigation challenges the City’s approval of a proposed Grocery Outlet store at 1023 Broadway Street in King City, California. The Notice of Intent is attached to the Agenda for public inspection. See attached exhibit A.
ADJOURNMENT:
Mayor LeBarre adjourned the meeting at 6:42p.m. to closed session. Mayor LeBarre read the closed session titles into the record. Mayor LeBarre adjourned the meeting at 7:47 on a motion by Victoria and second by DeLeon, approved 5-0.
Approved Signatures:
Mayor, Michael LeBarre City Clerk, Steven Adams
City of King City of King
Item No. 9(B)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER MAY
16 THROUGH MAY 31, 2022
RECOMMENDATION:
It is recommended City Council receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
Item No. 9(C)
REPORT TO THE SUCCESSOR AGENCY TO THE FORMER KING CITY CDA DATE: JUNE 14, 2022
TO: HONORABLE CHAIR AND MEMBERS OF THE BOARD
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF SUCCESSOR AGENCY CHECK
REGISTER FOR MAY 16 THROUGH MAY 31, 2022
RECOMMENDATION:
It is recommended the City Council acting as the Successor Agency Board receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the Successor Agency Board, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
Item No. 9(D)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING KCCP PAYMENTS FOR
THE MONTH OF APRIL 2022
RECOMMENDATION:
It is recommended City Council receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
Item No. 9 (E)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF SUPPORT FOR THE GOVERNOR’S
CARE COURT PROPOSAL AND SB 1338
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to send a letter supporting SB 1338 and the Governor’s CARE Court proposal.
BACKGROUND:
The CARE Court program proposed by the Governor connects a person struggling with untreated mental illness – and often also substance use challenges – with a court-ordered Care Plan for up to 24 months. Each plan is managed by a care team in the community and can include clinically prescribed, individualized interventions with several supportive services, medication, and a housing plan. The client-centered approach also includes a public defender and supporter to help make self-directed care decisions in addition to their full clinical team.
The CARE Court legislative proposal was approved by the State Senate on May 25, 2022 and is now moving forward to the Assembly Health Committee, followed by the Assembly Judiciary Committee. The Mayor has been requested by the Governor’s Office to provide a letter of support.
DISCUSSION:
As the Council is aware, homelessness is a challenging issue and often related to mental illness. A key factor related to the increase of homelessness has been the reduction in State mental health housing and hospital facilities combined with the reduction in available affordable housing.
CARE Court is designed based on evidence that many people can stabilize, begin healing, and exit homelessness in community-based care settings. It's a
CITY COUNCIL
CONSIDERATION OF SUPPORT FOR THE GOVERNOR’S CARE COURT
PROPOSAL AND SB 1338
JUNE 14, 2022
PAGE 2 OF 3
long-term strategy to positively impact the individual in care and the community around them. The plan focuses on people with schizophrenia spectrum and other psychotic disorders, who may also have substance use challenges and lack medical decision-making capacity. It provides a positive alternative to restrictive conservatorships or incarceration. The court-ordered response can be initiated by family, county and community-based social services, behavioral health providers, or first responders.
The Care Plan can be ordered for up to 12 months, with periodic review hearings and subsequent renewal for up to another 12 months. Participants who do not successfully complete Care Plans may, under current law, be hospitalized or referred to conservatorship - with a new presumption that no suitable alternatives to conservatorship are available. All counties across the state will participate in CARE Court under the proposal. If local governments do not meet their specified duties under court-ordered Care Plans, the court will have the ability to order sanctions and, in extreme cases, appoint an agent to ensure services are provided.
Staff has reviewed the proposal and determined it could have a positive impact if sufficient resources are dedicated. The ability of the Court to order medical treatment can be a valuable tool in helping people who are not cooperative in seeking help on their own or unreceptive to voluntary outreach services.
Therefore, it can be helpful to social service and law enforcement efforts.
COST ANALYSIS:
There is no cost to the City related to the proposed action.
ENVIRONMENTAL REVIEW:
This action is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as it does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve staff’s recommendations;
2. Modify the draft letter and approve;
3. Do not support SB 1338; or
4. Provide staff other direction.
EXHIBIT 1
Item No. 9 (F)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING
FOR EXTENSION OF THE PROYOUTH HEART AFTERSCHOOL EXPANDED LEARNING PROGRAM FOR FY 2022-23 RECOMMENDATION:
It is recommended the City Council approve and authorize the City Manager to execute a new Memorandum of Understanding (MOU) with ProYouth and the King City Union School District for the after-school HEART expanded learning program for FY 2022-23.
BACKGROUND:
At the April 25, 2017 meeting, the City Council approved an MOU with ProYouth and the King City Elementary School District for an after-school expanded learning program at Santa Lucia Elementary School, which also served Del Rey Elementary School students. The program was one of the highest priority recommendations of the Comprehensive Plan to End Youth Violence. At the October 23, 2018 meeting, the City Council approved a 3-year extension to the agreement and expanded the HEART program to include the Arts Magnet School.
A new agreement extended the program for one year in 2021. It is due to expire in June, so an additional agreement is necessary for 2022-23, which has been drafted by ProYouth in conjunction with the City and King City Union School District.
DISCUSSION:
A number of challenges were experienced by the program during the pandemic, which was initially suspended and then temporarily became a full-day program during the shutdown. The program was recently expanded to the Chalone Peaks
CITY COUNCIL
CONSIDERATION OF MEMORANDUM OF UNDERSTANDING FOR
EXTENSION OF THE PROYOUTH HEART AFTER-SCHOOL EXPANDED
LEARNING PROGRAM FOR FY 2022-23
JUNE 14, 2022
PAGE 2 OF 3
middle school. ProYouth is currently serving approximately 410 students in King City, and 250 children will be participating in the summer program.
The primary challenge limiting enrollment has been the difficulty of fully staffing the program, which is now even more difficult given a countrywide labor shortage. However, it has still been very successful and a tremendous partnership between the City, School District and ProYouth. Therefore, staff recommends continuing the program.
COST ANALYSIS:
The ProYouth HEART program has been fully funded by a combination of 21st Century Community Learning and ASES grants received by the School District and CDBG funds received by the City. The City Council recently directed staff to prepare a new CDBG grant application for additional funding. Additional funding for after-school learning programs has also been approved by the State, which the School District will be eligible to receive and may be used to further expand the program.
The remaining balance on the existing CDBG grant is approximately $260,000 at this time and is projected to be $130,000 after the end of the fiscal year. The agreement only commits the City to provide funding from the grant. No other City funding or fundraising efforts have been needed the past couple years. Staff is currently working with ProYouth and the School District staff on developing goals and a budget for the upcoming year. Therefore, staff may return at a later date with other City funding recommendations, which will depend upon grant efforts, enrollment, and progress in increasing staffing levels.
ENVIRONMENTAL REVIEW:
The program is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as it does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Approve the proposed MOU;
2. Request to modify and approve the MOU;
Exhibit 1
Item No. 9 (G)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF RESOLUTIONS CONSENTING TO THE
INCLUSION OF THE CITY OF KING PROPERTIES IN THE
GOLDEN STATE FINANCE AUTHORITY PACE PROGRAMS
AND ASSOCIATE MEMBERSHIP IN GOLDEN STATE FINANCE
AUTHORITY
RECOMMENDATION:
It is recommended the City Council: 1) adopt Resolution No. 2022-4880 consenting to Inclusion of Properties within the City’s Incorporated Area in GSFA Community Facilities District No. 2014-1 (Clean Energy) to Finance Renewable Energy Generation, Energy Efficiency, Water Conservation and Electric Vehicle Charging Infrastructure Improvements and approving associate membership in GSFA; 2) adopt Resolution No. 2022-4881 consenting to Inclusion of Properties within the City’s Incorporated Area in the GSFA PACE Program to Finance Renewable Energy Generation, Energy and Water Efficiency Improvements and Electric Vehicle Charging Infrastructure and approving associate membership in GSFA; and 3) authorize the Mayor to execute the Joint Exercise of Powers Agreement.
BACKGROUND:
At the April 10, 2018 meeting, the City Council adopted a Resolution authorizing the City's participation in California Statewide Communities Development Authority (CSCDA) PACE program, which enables property owners to finance permanently fixed renewable energy, energy efficiency, water efficiency, seismic strengthening improvements, and electric vehicle charging infrastructure.
The purpose of the action at that time was to enable Mee Memorial Hospital to cost effectively finance a solar panel project. In January 2016, the City Council approved participation in a similar program, called the HERO program.
The City was recently approached by a commercial property owner who would like to also participate in the PACE program to finance energy efficiency
CITY COUNCIL
CONSIDERATION OF RESOLUTIONS CONSENTING TO THE INCLUSION OF
THE CITY OF KING PROPERTIES IN THE GOLDEN STATE FINANCE
AUTHORITY PACE PROGRAMS AND ASSOCIATE MEMBERSHIP IN
GOLDEN STATE FINANCE AUTHORITY
JUNE 14, 2022
PAGE 2 OF 5
improvements. However, the program they have selected is under a different financing authority. Therefore, approval by the City Council is necessary to participate in another PACE program in order for property owners to apply for these benefits.
There are currently three different financing authorities that operate PACE programs in California, which include the California Enterprise Development Authority (CEDA), California Statewide Community Development Authority (CSCDA), and Golden State Finance Authority (GSFA). The City already belongs to the CSCDA. The current request involves a financing application with the GSFA.
There are also four residential PACE providers that operate in California. Three of them are under the CSCDA Open PACE program. The current application is with Ygrene, which is the largest provider and operates under the GSFA JPA, which is a program under RCRC (Rural County Representatives of California) to which Monterey County is a voting member. GSFA contracts with Ygrene Energy Fund CA LLC (Ygrene) to serve as the program administrator and to operate the Ygrene Works for California PACE financing program.
DISCUSSION:
PACE Financing Programs
GSFA established two PACE programs under the legislative authority of two separate California PACE laws:
SB 555 PACE Community Facilities District: Senate Bill 555 amended the MelloRoos Community Facilities Act, set forth in sections 53311 through 53368.3 of the California Government Code and particularly in accordance with sections 53313.5(l) and 53328.1(a) (“Mello-Roos Act”), to allow for the creation of Community Facilities Districts (“CFDs”) for the purpose of financing or refinancing the acquisition, installation, and improvement of energy efficiency, water conservation, renewable energy and electric vehicle charging infrastructure improvements permanently affixed to private or publicly-owned real property.
Individual properties can be annexed into the district and be subject to the special tax that is imposed to repay project financing only if (i) the Council adopts a resolution consenting to the inclusion of parcels in the incorporated areas of the City within the CFD; and (ii) each participating owner provides its unanimous written approval for annexation of its property into the PACE CFD.
CITY COUNCIL
CONSIDERATION OF RESOLUTIONS CONSENTING TO THE INCLUSION OF
THE CITY OF KING PROPERTIES IN THE GOLDEN STATE FINANCE
AUTHORITY PACE PROGRAMS AND ASSOCIATE MEMBERSHIP IN
GOLDEN STATE FINANCE AUTHORITY
JUNE 14, 2022
PAGE 3 OF 5
AB 811 PACE Contractual Assessment Program: By the passage of Assembly Bill 811, the California State Legislature added Chapter 29 to the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code.
This legislation authorized cities and counties to establish voluntary contractual assessment programs for the purpose financing private property improvements that promote renewable energy generation, energy and water efficiency and electric vehicle charging infrastructure.
As with the SB 555 CFD, properties can be annexed into the AB 811 PACE program and be subject to the property tax assessment that is imposed to repay project financing only if (i) the Council adopts a resolution consenting to the inclusion of parcels in the incorporated areas of the City within the program and (ii) each participating owner consents in writing to the annexation of its property into the PACE program.
Following are PACE program considerations:
• Supports development of renewable energy sources, installation of energy and water efficiency improvements, reduction of greenhouse gases, and protection of the environment.
• Only property owners who voluntary choose to participate in the program will be subject either to assessments or special taxes. • Program financing provides for an affordable method for many property owners to reduce their energy costs and improve their properties. • Program financing can be transferred upon sale, so owners can invest in energy improvements without fear of potentially selling the property before they receive the cost savings necessary to recoup their investment. • While early payment premiums may apply in some circumstances, property owners can choose to pay off the program financing at any time. • The City incurs no financial obligations as a result of program participation. • Once the Council passes the resolutions, no City staff time is required for administration or funding of the PACE program.
CITY COUNCIL
CONSIDERATION OF RESOLUTIONS CONSENTING TO THE INCLUSION OF
THE CITY OF KING PROPERTIES IN THE GOLDEN STATE FINANCE
AUTHORITY PACE PROGRAMS AND ASSOCIATE MEMBERSHIP IN
GOLDEN STATE FINANCE AUTHORITY
JUNE 14, 2022
PAGE 4 OF 5
• Adding the GSFA PACE programs, to be administered by Ygrene, provides more options for City property owners.
JPA Associate Membership
To participate in the PACE programs, the City must become an Associate Member of GSFA (JPA Agreement attached). Associate membership requires no dues or other costs to the City but permits participation in all GSFA programs including the PACE program. The attached resolutions approve joining the JPA as an Associate Member. Pursuant to the JPA Agreement and GSFA Board Resolution 15-01, the Executive Director has the authority to approve the addition of new Associate Members to the JPA.
Program Authorization
GSFA sought and completed the process of validation for both the SB 555 and the AB 811 programs in the Superior Court for the County of Sacramento. The GSFA SB 555 PACE program has been fully operational since August 25, 2015.
Although GSFA has implemented only the SB 555 PACE program, GSFA chose to form, validate and maintain both the SB 555 and AB 811 programs offerings to ensure that the "Ygrene Works for California" program remains innovative, cost effective and secure PACE.
Should market conditions, consumer demand and/or legislative changes affect one PACE program more that another, GSFA has the flexibility to use the program that best supports GSFA’s vision of service without any interruption to participating counties and cities and their property owners. In support of this approach, the Council is being asked to pass resolutions for both options.
The first resolution authorizes the City to join the JPA as an Associate Member and permits property owners within the incorporated areas of the City to participate in the GSFA SB 555 Community Facilities District. The second resolution authorizes the City to join the JPA as an Associate Member and permits property owners within the incorporated areas of the City to participate in the GSFA AB 811 Authority PACE Program. Each resolution also authorizes GSFA (1) to accept applications from property owners within the City’s incorporated area to finance authorized improvements; and (2) to conduct proceedings and levy special taxes or contractual assessments, as applicable, on the property of participating owners.
RESOLUTION NO. 2022-4880
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING, CALIFORNIA CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S
JURISDICTION IN THE GOLDEN STATE FINANCE AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2014-1 (CLEAN ENERGY) TO FINANCE RENEWABLE
ENERGY IMPROVEMENTS, ENERGY EFFICIENCY AND WATER CONSERVATION
IMPROVEMENTS, ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND
OTHER IMPROVEMENTS AND APPROVING ASSOCIATE MEMBERSHIP IN THE
JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO
Recitals
WHEREAS, the Golden State Finance Authority, a California joint powers authority formerly known as California Home Finance Authority (the “Authority”), has established the Community Facilities District No. 2014-1(Clean Energy) in accordance with the Mello-Roos Community Facilities Act, set forth in sections 53311 through 53368.3 of the California Government Code (the “Act”) and particularly in accordance with sections 53313.5(l) and 53328.1(a) (the “District”); and
WHEREAS, the purpose of the District is to finance or refinance (including the payment of interest) the acquisition, installation, and improvement of energy efficiency, water conservation, renewable energy and electric vehicle charging infrastructure improvements permanently affixed to private or publicly-owned real property (the “Authorized Improvements”); and WHEREAS, the City of King is committed to development of renewable energy generation and energy efficiency improvements, reduction of greenhouse gases, and protection of the environment; and
WHEREAS, in the Act, the Legislature has authorized a parcel within the territory of the District to annex to the District and be subject to the special tax levy of the District only (i) if the city or county within which the parcel is located has consented, by the adoption of a resolution by the applicable city council or county board of supervisors, to the inclusion of parcels within its boundaries in the District and (ii) with the unanimous written approval of the owner or owners of the parcel when it is annexed (the “Unanimous Approval Agreement”), which, as provided in section 53329.6 of the Act, shall constitute the election required by the California Constitution; and
WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy efficiency and water conservation and in doing so cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Authorized Improvements; and
WHEREAS, the Authority has established the District, as permitted by the Act, the Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by acknowledgement of the JPA Agreement, a copy of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and, to assist property owners within the incorporated area of the City in financing the cost of installing Authorized Improvements; and
WHEREAS, the City will not be responsible for the conduct of any special tax proceedings; the levy and collection of special taxes or any required remedial action in the case of delinquencies in the payment of any special taxes in connection with the District.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Council of the City of King finds and declares that properties in the City’s incorporated area will be benefited by the availability of the Authority CFD No. 2014-1 (Clean Energy) to finance the installation of the Authorized Improvements.
2. This City Council consents to inclusion in the Authority CFD No. 2014-1 (Clean Energy) of all of the properties in the incorporated area within the City and to the Authorized Improvements, upon the request of and execution of the Unanimous Approval Agreement by the owners of such properties when such properties are annexed, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof.
3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the Authority CFD No. 2014-1 (Clean Energy) and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Authorized Improvements.
4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership.
5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority CFD No. 2014-1 (Clean Energy) within the City, and report back periodically to this City Council on the success of such program.
6. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority.
This resolution was passed and adopted this 14th day of June, 2022 by the following vote:
AYES, Council Members:
NAYS, Council Members:
ABSENT, Council Members:
ABSTAIN, Council Members:
APPROVED:
__________________________________
Mike LeBarre, Mayor
ATTEST:
___________________________________
Steven Adams, City Clerk
APPROVED AS TO FORM:
___________________________________
Roy Santos, City Attorney
Exhibit A
JPA Agreement
-1-
82671.00001\9521876.4
RESOLUTION NO. 4881
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S
JURISDICTION IN THE GOLDEN STATE FINANCE AUTHORITY PROGRAM TO
FINANCE RENEWABLE ENERGY GENERATION, ENERGY AND WATER
EFFICIENCY IMPROVEMENTS, ELECTRIC VEHICLE CHARGING
INFRASTRUCTURE, AND OTHER IMPROVEMENTS AND APPROVING ASSOCIATE
MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED
THERETO
WHEREAS, the Golden State Finance Authority (“Authority”) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time (the “Authority JPA”); and WHEREAS, Authority has established a property-assessed clean energy (“PACE”) Program (the “Authority PACE Program”) to provide for the financing of renewable energy generation, energy and water efficiency improvements, electric vehicle charging infrastructure, and other improvements (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of King (the “City”) is committed to development of renewable energy generation and energy and water efficiency improvements, reduction of greenhouse gases, and protection of the environment; and
WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and
WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the Authority PACE Program would promote the purposes cited above; and
WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency, and in doing so cooperate with Authority in order to efficiently and economically assist property owners within the City in financing such Improvements; and
WHEREAS, Authority has established the Authority PACE Program, which is such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by acknowledgment of the JPA Agreement, a copy of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and to assist property owners within the jurisdiction of the City in financing the cost of installing Improvements; and -2-
82671.00001\9521876.4
WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the Authority PACE Program.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. This City Council finds and declares that properties in the City’s incorporated area will be benefited by the availability of the Authority PACE Program to finance the installation of the Improvements.
2. This City Council consents to inclusion in the Authority PACE Program of all of the properties in the jurisdictional boundaries of the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof.
3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the Authority PACE Program and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments.
4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership.
5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority PACE Program within the City, and report back periodically to this City Council on the success of such program.
6. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority.
This resolution was passed and adopted this 14th day of June, 2022 by the following vote:
AYES, Council Members:
NAYS, Council Members:
ABSENT, Council Members:
ABSTAIN, Council Members:
-3-
82671.00001\9521876.4
APPROVED:
__________________________________
Mike LeBarre, Mayor
ATTEST:
___________________________________
Steven Adams, City Clerk
APPROVED AS TO FORM:
___________________________________
Roy Santos, City Attorney
-1-
82671.00001\9521876.4
Exhibit A
JPA Agreement
[to be inserted]
Item No. 9 (H)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
BY: GEOFF ENGLISH, PUBLIC WORKS SPECIAL PROJECTS
COORDINATOR
RE: CONSIDERATION OF AWARD OF CONTRACT FOR ANNUAL
TREE TRIMMING SERVICES
RECOMMENDATION:
It is recommended City Council: 1) award a contract services agreement for two years of annual tree trimming services to Tope’s Tree Service, Inc. in the amount $120,000; and 2) authorize the City Manager to approve up to $25,000 in change orders each year of the contract.
BACKGROUND:
The City maintains approximately 2,100 trees, a majority of which are planted in the public right-of-way. City-maintained trees require periodic risk reduction pruning and standard tree trimming maintenance to minimize tree limb failures that may cause damage or injury, as well as efforts to enhance the appearance of the City’s streetscape and neighborhoods. Minimal in-house tree trimming work took place for several years, which resulted in a number of urban forestry deficiencies and complaints. As a result, the City initiated an ongoing annual contract tree trimming program four years ago. The program is designed to trim one- quarter of the City each year so all trees are maintained at least every four years.
In Fiscal Year 2021-2022, the City Council allocated $90,000 for tree trimming services. In the past two budget years, approximately 300 City-maintained street trees per year were trimmed by private tree trimming contractors. Tree trimming was completed in the northeast quadrant in 2020 and the southeast quadrant in 2021-2022.
CITY COUNCIL
CONSIDERATION OF AWARD OF CONTRACT FOR ANNUAL TREE
TRIMMING SERVICES
JUNE 14, 2022
PAGE 2 OF 3
DISCUSSION:
On April 22, 2022, formal bid documents for two years of tree trimming services were prepared and distributed. By the due date of May 26, 2022, three firms submitted bids (Exhibit 1). The responsive low bidder is Tope’s Tree Service, Inc. in the amount of $120,000. A copy of the bid form is attached (Exhibit 2).
The cost for the proposed tree trimming is $200 per tree for Phase 1 in 2022 and $200 per tree for Phase 2 in 2023. The contractor will be allowed to increase the per unit cost in Phase II up to the 2022 annual average cost of living increase (CPI) for the San Francisco - Oakland area. No additional per unit cost increases will be permitted. The southwest quadrant will be completed in 2022 and the northwest quadrant in 2023.
It is recommended that the City Council award a contract to Tope’s Tree Service, Inc. in the amount of $120,000 for tree trimming services in FY 2022-23 and FY 2023-24 (Exhibit 3). It is typically determined that there are more than 300 trees in the quadrant and other trees in the City in need of trimming during the year, particularly at parks and in the downtown area. As a result, it is recommended authority also be granted to the City Manager for change orders to address those needs.
COST ANALYSIS:
Award of this contract will result in expenditures of $60,000 during FY 2022-23 and $60,000 plus a CPI increase during FY 2023-24. There is currently $90,000 budgeted for tree trimming services included in the FY 2022-23 General Fund Budget. Therefore, no need for additional funding is projected even if the full authorization of change orders is utilized.
ENVIRONMENTAL REVIEW:
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemption set forth in CEQA Guidelines, section 15301 as this work is considered ongoing maintenance, which will not result in expansion of City facilities. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
Exhibit 1
Exhibit 2
01222.0006/459106.1
AGREEMENT FOR PUBLIC WORKS SERVICES
BETWEEN THE CITY OF KING AND
TOPE’S TREE SERVICE, INC.
THIS AGREEMENT FOR PUBLIC WORKS SERVICES (herein “Agreement”) is made and entered into this 14th day of June, 2022 (“Effective Date”) by and between the City of King, a California municipal corporation (“City”) and Tope’s Tree Service, Inc., (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.
RECITALS
A. City has sought, by issuance of a Formal of Bid Request for Quotation, the performance of the services defined and described particularly in Article 1 of this Agreement.
B. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services.
C. Pursuant to the City of King Municipal Code, City has authority to enter into and execute this Agreement.
D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1. WORK OF CONTRACTOR
1.1 Scope of Work.
In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the “Scope of Work” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the work required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein.
Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest Exhibit 3
01222.0006/459106.1
professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.
1.2 [Reserved]
1.3 Compliance with Law.
Contractor shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.
1.4 Compliance with California Labor Law.
(a) Public Work. The Parties acknowledge that the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by regulation.
(b) Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Contractor acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement.
(c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor. (d) Payroll Records. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. 01222.0006/459106.1
(e) Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects.
Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program.
Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.
(f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810.
(g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
Contractor’s Authorized Initials ________
(i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to 01222.0006/459106.1
pay the subcontractor’s workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any such failure by any subcontractor.
1.5 Licenses, Permits, Fees and Assessments.
Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officials, officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
1.6 Familiarity with Work.
(a) By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder.
(b) Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface, unknown or latent conditions, materially different from those indicated; or (iii) unknown physical conditions at the site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, and will materially affect the performance of the services hereunder.
(c) City shall promptly investigate the conditions, and if it finds that the conditions do materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.10 of this Agreement.
(d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided either by contract or by law, which pertain to the resolution of disputes and protests between the contracting parties.
01222.0006/459106.1
1.7 Further Responsibilities of Parties.
Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other.
1.8 Additional Work and Change Orders.
(a) City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Work or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and Contract Officer prior to commencing the extra work thereunder.
(b) Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days; and does not materially affect the Work and which are not detrimental to the Work or to the interest of the City, may be approved by the Contract Officer. Any increase in compensation of up to ten percent (10%) of the Contract Sum, or a total compensation amount up to $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days; and does not materially affect the Work and which are not detrimental to the Work or to the interest of the City, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. (c) Any adjustment in the Contract Sum for a Change Order must be in accordance with the unit prices set forth in the Bid Schedule in Exhibit “C”. If the rates in the Schedule of Compensation do not cover the type of work in the Change Order, the cost of such work shall not exceed an amount agreed upon in writing and signed by Contractor and Contract Officer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order completed, to the satisfaction of the City, as follows:
(i) Labor: the cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is done. The use of labor classifications that would increase the cost of such work shall not be permitted.
(ii) Materials and Equipment: the cost of materials and equipment shall be at cost to Contractor or lowest current price which such materials and equipment are reasonably available at the time the work is done, whichever is lower. (iii) If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include: list of names of workers, 01222.0006/459106.1
classifications, and hours worked; description and list of quantities of materials used; type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights for that day. (d) It is expressly understood by Contractor that the provisions of this Section 1.10 shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. (e) No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.
1.9 Special Requirements.
Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.
1.10 Trenching and Excavation.
In accordance with Public Contract Code Section 7104, whenever the digging of trenches or other excavations extend deeper than four feet below the surface, the Contractor shall promptly, and before the following conditions are disturbed, notify the City in writing of any: 1) Material that the Contractor believed may be material that is hazardous waste, as defined in Health and Safety Code Section 25117, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law: 2) Subsurface or latent physical conditions at the site differing from those indicated; or 3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract. The City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste and cause a decrease or increase in the Contractor’s cost of, or the time required for, performance of any part of the work, the City shall issue a change order under the procedures described in the Contract. In the unlikely event that a dispute arises between the City and the Contractor regarding whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the work, the Contractor shall not be excused from any scheduled completion date provided for by the Contract, but shall proceed with all work to be performed under the Contract.
The Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties. Where applicable, Contractor shall comply with the trench or excavation permit requirement found in Labor Code Section 6500 and the excavation safety requirements found in Labor Code Section 6705. 01222.0006/459106.1
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.
2.1 Contract Sum.
Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed one hundred, twenty thousand dollars and zero cents ($120,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10 or Exhibit “C”.
2.2 Method of Compensation.
The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified unit prices per measured quantities, tasks or the percentage of completion of the services less the contract retention;, (iii) payment for time and materials based upon the Contractor’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.
2.3 Reimbursable Expenses.
Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City.
Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings.
2.4 Invoices.
Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall not invoice City for any duplicate services performed by more than one person.
City shall, as soon as practicable, independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will cause Contractor to be paid, subject to the Schedule of Compensation (Exhibit “C”), within thirty (30) 01222.0006/459106.1
days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event that City does not cause Contractor to be paid within thirty (30) days of receipt of an undisputed and properly submitted invoice, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contract Code Section 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission. Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was rejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Notwithstanding, if the work is being funded by grant or other funding administered by a third party outside the control of the City, such as the County of Monterey, Contractor acknowledges and agrees this may increase processing time for payment, and no payment of interest shall accrue if the City has used reasonable efforts to cause the Contractor to be paid within thirty (30) days.
2.5 Waiver.
Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.
ARTICLE 3. PERFORMANCE SCHEDULE
3.1 Time of Essence.
Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance.
Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively.
3.3 Force Majeure.
The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination 01222.0006/459106.1
shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Agreement pursuant to this Section.
3.4 Inspection and Final Acceptance.
City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forty-five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively.
3.5 Term.
Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).
ARTICLE 4. COORDINATION OF WORK
4.1 Representatives and Personnel of Contractor.
The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
________________________ ________________________
(Name) (Title)
________________________ ________________________
(Name) (Title)
________________________ ________________________
(Name) (Title)
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement.
Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder.
All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express 01222.0006/459106.1
written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.
4.2 Status of Contractor.
Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor may have to any such rights.
4.3 Contract Officer.
The Contract Officer shall be the City Manager orsuch person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer.
The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.
4.4 Independent Contractor.
Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venture or a member of any joint enterprise with Contractor.
4.5 Prohibition Against Subcontracting or Assignment.
The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall 01222.0006/459106.1
obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Agreement. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS
5.1 Insurance Coverages.
The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City:
(a) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $1,000,000.00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit. (b) Workers Compensation Insurance. A policy of workers compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for the Contractor against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Contractor in the course of carrying out the work or services contemplated in this Agreement.
(c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount not less than $1,000,000.00. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.
(e) Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. For Commercial General Liability (CGL) coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13.
01222.0006/459106.1
5.2 General Insurance Requirements.
All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with Contractor’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officials, officers, employees and agents and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention.
All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing at least ten (10) days prior written notice to City, or at least ten (10) days prior written notice to City in the case of cancellation for nonpayment. In the event any of said policies of insurance are cancelled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer.
No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.
All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following “cancellation” notice:
“CANCELLATION:
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATED THEREOF, AT LEAST TEN (10) DAYS
ADVANCED WRITTEN NOTICE OF CANCELLATION SHALL BE
DELIVERED TO CITY AT (EXCEPT CANCELLATION DUE TO
NONPAYMENT SHALL REQUIRE TEN (10) DAYS ADVANCED WRITTEN NOTICE).”
Contractor’s Authorized Initials _______
City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Contractor performs; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or any automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers.
Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 01222.0006/459106.1
Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or selfinsured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor’s activities or the activities of any person or persons for which the Contractor is otherwise responsible nor shall it limit the Contractor’s indemnification liabilities as provided in Section 5.3.
In the event the Contractor subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.
In the event of a conflict, the terms of Section 5.1 and 5.2 shall have precedence and prevail over any form of Certificate of Insurance, or any Insurance Endorsement, included in the Contract Documents.
5.3 Indemnification.
To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees, volunteers and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;
(b) Contractor will promptly pay any judgment rendered against the Indemnified Parties for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the Indemnified Parties harmless therefrom; (c) In the event any Indemnified Party is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of 01222.0006/459106.1
or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the Indemnified Party any and all costs and expenses incurred by the Indemnified Party in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.
In addition, Contractor agrees to indemnify, defend and hold harmless the Indemnified Parties from any and all claims and liabilities for any infringement of patent rights, copyrights or trademark on any person or persons in consequence of the use by the Indemnified Parties of articles to be supplied by Contractor under this Agreement, and of which the Contractor is not the patentee or assignee or has not the lawful right to sell the same.
Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Contractor in the performance of professional services and work hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement.
5.4 Notification of Third-Party Claims.
City shall timely notify Contractor of the receipt of any third-party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification.
5.5 Sufficiency of Insurer or Surety.
Insurance and bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best’s Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City Manager or Finance Director of the City (“Risk Manager”) due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the Risk Manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 5.5 may be changed accordingly upon receipt of written notice from the Risk Manager.
5.6 Substitution of Securities.
Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any funds withheld to ensure performance under this Agreement may be permitted at the request and sole expense of the Contractor unless otherwise required by Section 22300. 01222.0006/459106.1
Alternatively, the Contractor may, pursuant to an escrow agreement in a form prescribed by Public Contract Code Section 22300, request payment of retentions funds earned directly to the escrow agent at the sole expense of the Contractor unless otherwise required by Section 22300. The escrow agreement for security deposits in lieu of retention shall be substantially similar to the form provided in Public Contract Code Section 22300(f), which is incorporated herein by this reference.
5.7 Release of Securities.
City shall release the Performance and Labor Bonds when the following have occurred:
(a) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under Article 5 of this Agreement;
(b) the work has been accepted; and
(c) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Labor Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law.
ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION
6.1 Records.
Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of payroll records in compliance with all applicable laws, or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of 3 years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
6.2 Reports.
Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract 01222.0006/459106.1
Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.
6.3 Ownership of Documents.
All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use.
Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.
6.4 Confidentiality and Release of Information.
(a) information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
(b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City 01222.0006/459106.1
shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Contractor’s conduct. (d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law.
This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Monterey, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Northern District of California, in the County of Santa Clara, State of California.
7.2 Disputes and Claims.
(a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on the invoices only when the default is cured. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.
(b) Public Contract Code Sec. 9204 Claims Procedure (AB 626). AB 626, approved by the Governor on September 29, 2016, created a new Public Contract Code Section 9204, which specifies new procedural requirements for the filing of claims by a contractor, or by a contractor on behalf of a subcontractor, on any public works project effective January 1, 01222.0006/459106.1
2017. The parties shall comply with the provisions of Public Resources Code Section 9204, which are fully set forth in Exhibit “E.”
(c) Dispute Resolution. To the extent not superseded by Public Contract Code Section 9204, this Agreement is subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the Contractor, for the response to such claims by the City, for a mandatory meet and confer conference upon the request of the Contractor, for mandatory non-binding mediation in the event litigation is commenced, and for mandatory judicial arbitration upon the failure to resolve the dispute through mediation. This Agreement hereby incorporates the provisions of Article 1.5 as though fully set forth herein.
7.3 Retention of Funds.
Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.
7.4 Waiver.
Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.
Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver.
Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative.
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
01222.0006/459106.1
7.6 Legal Action.
In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Contractor shall file a claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.7 Liquidated Damages.
Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of one hundred dollars ($ 100.00 ) as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance (Exhibit “D”). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages.
7.8 Termination Prior to Expiration of Term.
This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.
7.9 Termination for Default of Contractor.
If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such 01222.0006/459106.1
damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated.
7.10 Attorneys’ Fees.
If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
7.11 Unfair Business Practices Claims.
In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment of the Parties.
ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees.
No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest.
Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any 01222.0006/459106.1
corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination.
Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class.
8.4 Unauthorized Aliens.
Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Additionally, Contractor acknowledges that Contractor, and all subcontractors hired by Contractor to perform services under this Agreement, are aware of and understand the Immigration Reform and Control Act (“IRCA”). Contractor is and shall remain in compliance with the IRCA and shall ensure that any subcontractors hired by Contractor to perform services under this Agreement are in compliance with the IRCA. Further, should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement in violation of the law, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices.
Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of King, 212 South Vanderhurst Avenue, King City, CA 93930 and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. All correspondence relating to this Agreement shall be serialized consecutively.
01222.0006/459106.1
9.2 Interpretation.
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
9.3 Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
9.4 Integration; Amendment.
This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
9.5 Severability.
In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.
9.6 Warranty & Representation of Non-Collusion.
No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “non-interests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement.
Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or 01222.0006/459106.1
employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.
Contractor’s Authorized Initials _______
9.7 Authority to Act on Behalf of Entity.
The person(s) executing this Agreement on behalf of any entity that is a Party hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
[SIGNATURES ON FOLLOWING PAGE]
01222.0006/459106.1
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF KING, a municipal corporation
____________________________________
Steven Adams, City Manager
ATTEST:
Erica Sonne, Deputy City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Roy Santos, City Attorney
CONTRACTOR:
____________________________________
*By:________________________________
Name:
Title:
*By:________________________________
Name:
Title:
Address:
*CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE EVIDENCE OF AUTHORITY TO EXECUTE DOCUMENTS FOR ANY ENTITY CONTRACTOR MUST BE PROVIDED.
City of King
2022 & 2023 Tree Trimming Services A- 1
EXHIBIT “A”
SCOPE OF WORK
Article I. PROJECT DESCRIPTION AND SPECIFICATIONS
TREE TRIMMING SERVICES
GENERAL CONDITIONS AND SPECIFICATIONS
1. The responsible low-bid contractor, following award by the City of King City Council shall enter the City’s standard Contractor Agreement and provide all required insurance.
2. The responsible low-bid contractor will secure a City of King business license before staring any work.
3. The responsible low-bid contractor must be registered with the State of California Department of Industrial Regulations by the time of bid submittal.
4. The contractor shall be licensed in California with a Class D-49 Tree Service contractor’s license.
5. All work shall be completed under the direction of a person who holds a current ISA (International Society of Arboriculture) Certified Arborist credential.
6. Contractor shall deliver a level of quality that is compatible with International Society of Arboriculture (ISA) standards, American National Standards Institute (ANSI) criteria and the standards and requirements described herein in providing tree trimming services.
7. Contractor is responsible to ensure that all portable engines over 49 hp used in the conduct of the proposed work, are appropriately permitted by the Monterey County Air Resources District, or registered under the California Air Resources Board’s (CARB) Statewide Portable Equipment Registration Program (PERP).
8. Contractor shall complete all work to the satisfaction of and under the supervision of the City of King Public Works Superintendent or designated representative.
9. Contractor shall provide service that ensures the safety of employees and the public while minimizing inconvenience to the public and disruption of traffic while working in the City.
10. Contractor shall endeavor to maintain good public relations at its worksites and shall conduct its work in a manner which will cause the least possible interference with, or annoyance to, the public.
City of King
2022 & 2023 Tree Trimming Services A- 2
11. The Contractor should stop work on any specific tree where an active nesting bird site is encountered. The Contractor will contact the City for further direction regarding any further work on the tree in question.
12. Contractor shall meet the work schedule dates listed in the document below.
13. Upon completion of each tree trimming work phase, a walk-through with the Public Works Superintendent and other City representatives will be conducted.
TECHNICAL SPECIFICATIONS
I. TRAFFIC CONTROL
At no time shall the Contractor commence or carry on with work that presents a hazard to pedestrians or vehicular traffic. Prior to the commencement of, and for the duration of, any work in any area, Contractor shall be responsible for traffic control and safety regulations as related to any city, state or county requirements while working on streets, highways, medians and/or roadside strips.
The design and operation of work zone traffic controls must comply with US Department of Transportation/Federal 12 Highway Administrative guidelines. All traffic control operations are the responsibility of the Contractor and intended to provide maximum safety for the public according to the most recent edition of the Work Area Traffic Control Handbook.
Contractor shall display standardized warning signage when staging or working in any area that is subject to pedestrian or vehicular traffic. Contractor shall be responsible for the placement of "Sidewalk Closed" signage at the perimeter of any sidewalk or pathway that leads pedestrian traffic into the work zone.
Any operation that results in a blockage of, or produces debris which could enter into, vehicular traffic zones will require the use of a flag person equipped with, and using, a SLOW/STOP traffic paddle. Work in two-way traffic zones will require the use of two (2) flag persons. The placement of a traffic paddle into a safety cone shall not be considered a substitute for the required flag person(s). Where Contractor's work is in progress, each street shall remain open to local traffic at all times unless prior arrangements have been made and approved by the City of King Public Works Superintendent or designated representative.
II. SITE CLEANUP
Contractor shall remove branches, limbs, logs, or any other debris resulting from any tree operations and clean the work site and all areas associated with the work site promptly upon completion of each task. Contractor shall endeavor to prevent spillage on streets over which work, or hauling is done, and any such spillage or debris deposited on street due to Contractor operations City of King
2022 & 2023 Tree Trimming Services A- 3
shall be immediately cleaned up. During production trimming and removals, debris shall be removed from public rights of way and private property within one (1) hour of the completion of work on the tree from which the debris was generated.
Rights of way shall not be used to stage unattended debris generated during regular work hours.
All lawn areas shall be raked, all streets/sidewalks shall be swept, and all brush, branches will be removed at the Contractors expense. Areas are to be left in a condition equal to or better than that which existed prior to the commencement of tree operations. No material is to be allowed to enter any storm drain. The Contractor may dispose of the chips and other tree debris at the City of King Corporation Yard, located at 1001 Industrial Way, King City. Coordination with the Public Works Superintendent is required.
III. PROPERTY DAMAGE
Should any structure or property be damaged during tree operations, Contractor shall immediately notify CITY and owners or authorities. Repairs to property damaged by Contractor shall be made within forty-eight (48) hours. In the event of damage to utility lines, Contractor shall report the damages to utility and make arrangements for the utility to make repairs. Repairs on private property shall be made in accordance with the appropriate building code under permits issued by CITY. The CITY will mark and flag irrigation heads and valve boxes in City Park in advance of any work, however the Contractor shall inspect the area in advance to limit damage to the irrigation system at this facility.
Any damage caused by Contractor shall be repaired or restored at Contractor’s expense to a condition similar or equal to that existing before such damage, or Contractor shall repair such damage in a manner acceptable to the Public Works Superintendent.
TREE TRIMMING WORK
PHASE I- 2022 STREET TREE TRIMMING- SOUTHWEST (SW) QUADRANT Description: Approximately three hundred (300) street trees located in public Right of Way throughout the Southwest quadrant of King City. The actual number of trees in the southwest quadrant may differ slightly from the number provided. The City for budgetary purpose, may increase or reduce the number of street trees to be trimmed in Phase I.
The trees are to be pruned in a manner to remove obstructions from pedestrians and vehicle, to remove potential hazards and to reshape where necessary. This street tree trimming will include but not be limited to; removal of “snags”, suckers, broken branches, dead and dying limbs, removal of any limbs and branches that show signs of potential failure; removal of limbs with excessive tip weight, “skirting up” to remove overhead obstructions for pedestrian and vehicle traffic as well as general “shaping” to properly balance the trees. All suckers at the base of the trees are to be removed. All leaves and small branches will be removed from the lower crotch and branch structure of the trees, particularly where blocking visibility of signs. All street tree trimming work should be completed in a manner to improve the condition of the tree and to promote extended City of King
2022 & 2023 Tree Trimming Services A- 4
lifespan. No tree removals will be permitted and no more than 25% of the tree canopy may be removed from any tree.
PHASE II- 2023 TREE TRIMMING - NORTHWEST (NW) QUADRANT
Description: Approximately three hundred (300) street trees located in public Right of Way throughout the Northwest quadrant of King City. The actual number of trees in the southeast quadrant may differ slightly from the number provided. Additionally, the City for budgetary purposes, may increase or reduce the number of trees to be trimmed in Phase III.
The trees are to be pruned in a manner to remove obstructions from pedestrians and vehicle, to remove potential hazards and to reshape where necessary. This street tree trimming will include but not be limited to; removal of “snags”, suckers, broken branches, dead and dying limbs, removal of any limbs and branches that show signs of potential failure; removal of limbs with excessive tip weight, “skirting up” to remove overhead obstructions for pedestrian and vehicle traffic as well as general “shaping” to properly balance the trees. All suckers at the base of the trees are to be removed. All leaves and small branches will be removed from the lower crotch and branch structure of the trees particularly where blocking visibility of signs. All street tree trimming work should be completed in a manner to improve the condition of the tree and to promote extended lifespan. No tree removals will be permitted and no more than 25% of the tree canopy may be removed from any tree.
B-1
EXHIBIT “B”
[NOT APPLICABLE]
C- 1
EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. Contractor shall perform all work at the rates submitted as part of Contractor’s Proposal, as follows:.
QTY. UNIT DESCRIPTION UNIT COST TOTAL
300 EA 2020 Street Tree Trimming $200.00 $60,000.00
300 EA 2021 Street Tree Trimming $200.00* $60,000.00
TOTAL:
$120,000.00*
II. *- The Contract will be allowed to increase the per tree unit cost in Phase II in 2023, no more than the exact amount of the Annual Average cost of living increase (CPI) for 2022 published by the State of California, Division of Labor Statistics and Research for Urban Wage Earners and Clerical Workers for the San Francisco Oakland area. No additional per unit cost increases will be permitted.
III. The City will compensate Contractor for the work performed upon submission of a valid invoice pursuant to Section 2.4.
Payment Method for Phase I: Phase I work will be paid on per unit basis with each tree being considered a unit and listed as each (EA) on the quotation sheet. The unit cost for the average of all trees in the Southwest quadrant is to be indicated on the quotation sheet below. All trees will be charged at the same rate unless otherwise agreed upon by the Contractor and the City in advance.
Payment Method for Phase II: Phase II work will be paid on per unit basis with each tree being considered a unit and listed as each (EA) on the quotation sheet. The unit cost for the average of all trees in the Northeast quadrant is to be indicated on the quotation sheet below. All trees will be charged at the same rate. The Contract will be allowed to increase the per tree unit cost in Phase II in 2023, no more than the exact amount of the Annual Average cost of living increase (CPI) for 2022 published by the State of California, Division of Labor Statistics and Research for Urban Wage Earners and Clerical Workers for the San Francisco Oakland area. No additional per unit cost increases will be permitted.
D- 1
EXHIBIT “D”
SCHEDULE OF PERFORMANCE
I. Contractor shall perform all work timely in accordance with the following schedule:
TREE TRIMMING SCHEDULE OF WORK PHASES
Schedule for Phase I: Phase I work will begin on or after Monday July 11, 2022, and conclude before Friday, September 30, 2022. All work is to be completed Monday through Friday, between the hours of 8:00am and conclude by 5:00pm. No weekend work will be allowed. Any schedule change must be approved in advance by City of King Public Works Superintendent.
Schedule for Phase II: Phase II work will begin on or after Monday July 10, 2023 and conclude before Friday, September 29, 2023. All work is to be completed Monday through Friday, between the hours of 8:00am and conclude by 5:00pm. No weekend work will be allowed. This phase of the project has great flexibility of scheduling.
Any schedule change must be approved in advance by City of King Public Works Superintendent.
Work shall only be performed between the hours of 8:00 a.m. and 7:00 p.m., on weekdays. Work shall not be performed on Saturdays, Sundays or legal holidays.
Exceptions to the above hours of work will be permitted only after obtaining written authorization from the City.
II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2.
D- 2
EXHIBIT “E”
PUBLIC CONTRACT CODE SEC. 9204
NEW PUBLIC WORKS CLAIMS
PROCEDURE
AB 626, approved by the Governor on September 29, 2016, created a new Public Contract Code Section 9204, which specifies new procedural requirements for claims submitted by a contractor on any public works project. These new requirements contain burdens for both private contractors and public entities. The text of this new legislation is set forth below:
Public Contract Code § 9204.
Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner. (b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project. (c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project. (3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a D- 3
charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. (B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department.
(ii) The Department of Transportation as to any project under the jurisdiction of that department.
(iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department.
(iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code.
(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor. (d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision. (B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the D- 4
claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.
(B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. (C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits D- 5
of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.
(g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.
(i) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.
City of King
2020 & 2021 Tree Trimming Services
Contractor’s Certificate Regarding Worker’s Compensation Description of Contract:
City of King
2020 & 2021 Tree Trimming Services
Labor Code Section 3700 Provides (in part):
"Every employer except the State shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation in one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations a certificate of consent to selfinsure, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his employees."
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
Dated: , 20___
(Contractor)
By____________________________________
______________________________________
(Official Title)
(SEAL)
(Labor Code Section 1861 provides that the above certificate must be signed and filed by the Contractor with the City prior to performing any work under this contract.
Item No. 9 (I)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF MEMORANDUM OF UNDERSTANDING
WITH THE KING CITY CONFIDENTIAL EMPLOYEES
ASSOCIATION (KCCEA)
RECOMMENDATION:
It is recommended the City Council approve a Memorandum of Understanding (MOU) between the City of King and the King City Confidential Employees Association (KCCEA) for the period of July 1, 2022 through June 30, 2025.
BACKGROUND:
The City’s current MOU with KCCEA is due to expire on June 30, 2022. The City’s appointed negotiators have met and conferred with representatives of KCCEA pursuant to the requirements of the Meyers-Milias-Brown Act and reached agreement on a new 3-year MOU.
DISCUSSION:
The most significant changes to the new MOU include the following:
• 4% Cost of Living Adjustment (COLA) effective July 2, 2022 • 4% COLA effective July 1, 2023
• 5% COLA effective July 6, 2024
• Addition of 1 merit step in the pay range
• Equity adjustments for the Police Captain and Executive Assistant positions • Establishment of a limit on accumulation of administrative leave and the ability to annually convert 20 hours to cash
• Establishment of a formula for determining annual increases to employee health insurance contributions
Attachment 1
Item No. 9 (J)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF MEMORANDUM OF UNDERSTANDING
WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION
(SEIU) LOCAL 521
RECOMMENDATION:
It is recommended the City Council approve a Memorandum of Understanding (MOU) between the City of King and the Service Employees International Union (SEIU) Local 521 for the period of July 1, 2022 through June 30, 2025.
BACKGROUND:
The City’s current MOU with SEIU is due to expire on June 30, 2022. The City’s appointed negotiators have met and conferred with representatives of SEIU pursuant to the requirements of the Meyers-Milias-Brown Act and reached agreement on a new 3-year MOU.
DISCUSSION:
The most significant changes to the new MOU include the following:
• 5% Cost of Living Adjustment (COLA) effective July 2, 2022 • 4% COLA effective July 1, 2023
• 5% COLA effective July 6, 2024
• Addition of 1 merit step in the pay range
• Equity adjustments for the Police Clerk and Accounting Technician positions • Establishment of a formula for determining annual increases to employee health insurance contributions
• New classification of Planning Technician
• Addition of Juneteenth paid holiday on June 19th
EXHIBIT 1
Item No. 9 (K)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF 2022 COMMUNITY OPINION SURVEY
RESULTS
RECOMMENDATION:
It is recommended the City Council receive the results and analysis of the 2022 King City Community Opinion Survey.
BACKGROUND:
As part of the City’s community outreach program, the City established a biennial community survey program in 2016. In February 2016, the first survey was distributed to every household and business. The survey was again distributed in February 2018, February 2020 and February 2022. Over 4,000 copies are mailed out, which are provided in both English and Spanish. Nearly 300 responses were received this year. The original survey in 2016 resulted in 550 responses. Since then, the response has been approximately 340 in 2018 and 360 in 2020. Therefore, this year represents a minor decrease in the ongoing participation rate.
There are three specific objectives of the survey. First, it provides valuable input to assist the City in establishing priorities. Second, it provides customer satisfaction data that can be used to help identify where to best focus the City’s efforts to improve services and to measure the results of those efforts. Third, the survey helps the City to better represent the views of everyone in the community by providing a convenient opportunity for all residents and businesses to share their feedback.
Two items presenting the data from the responses are attached. The first exhibit is a summary of each response compared to the prior three surveys. The print is small in order to present a comprehensive comparison. Larger copies are
CITY COUNCIL
CONSIDERATION OF 2022 COMMUNITY OPINION SURVEY RESULTS
JUNE 14, 2022
PAGE 2 OF 5
available upon request to City Council and the public with larger print. The second exhibit is a more detailed report on the results of each response.
The survey was divided into four sections, which include responses about general characteristics of the City, quality of specific City services, overall opinions regarding City services, and opinions regarding the importance of enhancing different services and programs. The questions were identical to the 2020 and 2018 surveys and almost identical to the 2016 survey in order to compare progress and trends.
For the first three categories, respondents were asked to rate each item on a scale of 1 to 4, “1” being highest. A response of “1” is for “Excellent”, “2” is for “Good”, “3” is for “Fair”, and “4” is for “Poor”. The number “5” was included for "Don't Know" responses. Therefore, the lower the score the better, and responses of 5 are not included in the average score.
The fourth category is used to prioritize the City’s efforts. It asks respondents to rate how important they think enhancing a list of items are for King City. They once again are asked to rate each item on a scale of 1 to 4, “1” being the highest.
A response of “1” is for “Extremely”, “2” is for “Very”, “3” is for “Somewhat”, “4” is for “Not” and “5” is "Don't Know". A copy of the survey is attached as Exhibit 3.
DISCUSSION:
The results are somewhat disappointing, but not unexpected. With a few exceptions, scores were close but slightly less favorable for the questions of the first three categories when compared to the results in 2020. They are still significantly improved from the 2016 and 2018 survey results.
This was anticipated due to the fact that the pandemic took place throughout the entire period since the 2020 survey. People’s views of most things have been negatively impacted during this period. The City has been successful over the past two years in responding to the pandemic, managing the City’s finances, developing plans and strategies for future improvements, and pursuing grants.
However, the pandemic impacted much of the progress that is most visible to the community, and staff attributes the slight negative trend to these circumstances.
The results from the next survey will be important. Many of the ongoing plans will begin to come to fruition during the upcoming year, so staff is hopeful the next survey in 2024 will resume the prior trend of improving results. The survey at that time will be a good measurement of whether the City’s plans are leading the community in the right direction based on community opinion.
CITY COUNCIL
CONSIDERATION OF 2022 COMMUNITY OPINION SURVEY RESULTS
JUNE 14, 2022
PAGE 3 OF 5
The scores were relatively consistent across the board throughout all the questions. Most are in the range of 2.5 to 3. One of the key items staff looks at is the question of overall satisfaction with City government. This question received an average score of 2.80, slightly worse compared to 2.69 in 2020 but much better than 3.37 in 2016. Since 2 is good and 3 is fair, this means the City is generally scoring a little better than fair. The City’s goal is to provide outstanding service, so the results demonstrate that there is still much work to be done before the desired levels are achieved.
While scores regarding quality and repairs of streets and sidewalks continue to be among the lowest, they were one of the few areas that experienced an improved score from 2020. The most significant negative changes were responses to “feeling of safety” and “crime prevention,” which is expected given the timing of the survey shortly after the murders that occurred in December and January. It was also the area that experienced the greatest jump in the 2020 survey, so staff believes this fluctuation validates the City’s emphasis on the importance of continuing to invest in public safety improvements.
Below is the complete ranking of each item included in the questions:
1. Efforts to Establish Long-Term Financial Stability
2. Efforts to Improve Public Safety
3. Street Repairs and Improvements
4. Attraction of Stores that Provide Shopping Opportunities
5. Street Lighting
6. Enforcement of Blighted and Unsafe Buildings
7. Support for Small Businesses
8. Sidewalk Repairs and Improvements
9. Downtown Revitalization
10. Job Creation
11. Youth Programs
12. Balance Budget and Repay Debt
13. Efforts to Attract Visitors to Improve Local Economy
14. Train Station and Transportation Improvements
15. Parks and Open Space
16. Removal of Public Access Barriers for Disabilities
17. Beautification Efforts
18. Recreation Facilities
19. Social Services to Assist Those with Unmet Needs
20. Enforcement of Codes to Maintain Property
21. Signage
22. Construction of a Variety of Housing Types
CITY COUNCIL
CONSIDERATION OF 2022 COMMUNITY OPINION SURVEY RESULTS
JUNE 14, 2022
PAGE 4 OF 5
23. Job Training and Placement Programs
24. Public Information and Educational Materials
25. Trees and Landscaping
26. Construction of Affordable Housing
27. Efforts to Unite Different Sectors of the Community
28. Adult Recreation Programs
29. Art in Public Places
The top 3 priorities of long-term financial stability, public safety, and street improvements align well with the City’s objectives for the proposed sales tax measure and the current budget priorities.
For comparison purposes, the following were the top 10 priorities in 2020:
1. Efforts to Establish Long-Term Financial Stability
2. Efforts to Improve Public Safety
3. Enforcement of Blighted and Unsafe Buildings
4. Balance Budget and Repay Debt
5. Street Lighting
6. Downtown Revitalization
6. Street Repairs and Improvements (score tied with Downtown Revitalization)
8. Attraction of Stores that Provide Shopping Options
9. Support for Small Businesses
10. Sidewalk Repairs and Improvements
COST ANALYSIS:
There is no cost impact associated with this item beyond the original costs associated with printing and distribution of the survey.
ENVIRONMENTAL REVIEW:
The survey is not considered a project for the purposes of CEQA and has no potential for resulting in either a direct or indirect impact to the environment.
Therefore, no additional action is necessary.
ALTERNATIVES:
The following alternatives are presented for Council consideration:
1. Receive and file;
2. Based on the results of the survey, direct staff to make changes in the City's major priorities;
Item No. 9 (L)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF RESOLUTION FOR THE 2022 GENERAL
MUNICIPAL ELECTION
RECOMMENDATION:
It is recommended the City Council adopt a Resolution ordering an election, requesting County Elections to conduct the election, and requesting consolidation of the election.
BACKGROUND:
The City’s charter sets forth that it will conduct elections based upon the State laws applied to general law cities. State law establishes the dates when general law cities conduct municipal elections for the purpose of electing members of the City Council. The California Elections Code establishes procedures and requirements for conducting a General Municipal Election. As the first step in the election process, a Resolution must be adopted by the City Council. Pursuant to Section 2.06.010 of the Municipal Code, the general municipal election shall be held on the same day as the statewide general election in each even-numbered year.
DISCUSSION:
Under the district election system adopted in 2016 and updated in 2022, voters in District No. 1 and District No. 2 will elect Councilmembers to represent their districts for a 4-year term in the election to be held on November 8, 2022. The request for consolidation of the election must be submitted to the County Board of Supervisors at least 88 days prior to the date of the election, which is August 12, 2022.
RESOLUTION NO. 2022-4878
RESOLUTION OF THE CITY OF KING CITY COUNCIL ORDERING AN ELECTION,
REQUESTING COUNTY ELECTIONS TO CONDUCT THE ELECTION AND REQUESTING
CONSOLIDATION OF THE ELECTION
WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the city relating to the conduct of an election; and WHEREAS, the resolution of the governing body of the city shall specify the services requested; and
WHEREAS, pursuant to Elections Code Section 10002, the city shall reimburse the county in full for the services performed upon presentation of a bill to the city; and WHEREAS, pursuant to Elections Code Section 10400, such election for cities may be either completely or partially consolidated; and
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district, city or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot.
Upon such request, the Board of Supervisors may order the consolidation; and WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, various district, county, state and other political subdivision elections may be or have been called to be held on November 8, 2022; and NOW, THEREFORE, BE IT HEREBY RESOLVED AND ORDERED THAT THE City Council of the City of King hereby orders an election be called and consolidated with any and all elections also called to be held on November 8, 2022 insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the City of King requests the Board of Supervisors of the County of Monterey to order such consolidation under Elections Code Section 10400 and 10403.
BE IT FURTHER RESOLVED AND ORDERED that said governing body hereby requests the Board of Supervisors to permit the Monterey County Elections Department to provide any and all services necessary for conducting an election and agrees to pay for said services in full, and
BE IT FURTHER RESOLVED AND ORDERED that the Monterey County Elections Department conduct the election for the following offices on the November 8, 2022 ballot:
District No. 1, one (1) Councilmember for a term of four years.
District No. 2, one (1) Councilmember for a term of four years.
CC Resolution No. 2022-4877
BE IT FURTHER RESOLVED AND ORDERED that pursuant to Election Code section 13307 the City of King has resolved that all costs of the Candidate’s statement be paid by the candidate and that no candidate may submit a statement of over 200 words.
BE IT FURTHER RESOLVED AND ORDERED that in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the Monterey County Elections, the City Council, in accordance with Election Code Section 15651 (a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.
This resolution was passed and adopted this 14th day of June by the following vote:
AYES, Council Members:
NAYS, Council Members:
ABSENT, Council Members:
ABSTAIN, Council Members:
APPROVED:
_________________________
Mike LeBarre, Mayor
ATTEST:
__________________________________
Steven Adams, City Clerk
APPROVED AS TO FORM:
____________________________
Roy C. Santos, City Attorney
Item No. 9 (M)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF KING MAKING FINDINGS RELATED TO THE
CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE
TO COVID-19 AND RE-AUTHORIZING THE CONDUCT OF
PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE
CITY VIA REMOTE TELECONFERENCING FOR AN
ADDITIONAL 30-DAY PERIOD PURSUANT TO THE RALPH M.
BROWN ACT AS AMENDED BY ASSEMBLY BILL NO. 361
RECOMMENDATION:
It is recommended the City Council adopt a Resolution making findings related to the continued existence of a State of Emergency due to COVID-19 and reauthorizing the conduct of public meetings of the legislative bodies of the city via remote teleconferencing for an additional 30-day period pursuant to the Ralph M.
Brown act as amended by AB 361.
BACKGROUND:
Starting March 2020, the Governor of California declared a State of Emergency to make additional resources available, formalize emergency actions already underway, and help the state prepare for broader spread of the coronavirus (COVID-19). On March 13, 2020, the President declared a National State of Emergency. As a result, on March 16, 2020, the City Manager signed a Proclamation of Local Emergency in King City, which was ratified by the City Council on March 20, 2020.
In March 2020, in response to the spread of COVID-19 in the County of in the County of Monterey, the County proclaimed a state of local emergency for the County of Monterey and thereafter issued orders from the County of Monterey Health Officer aimed at containing COVID-19.
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING MAKING FINDINGS RELATED TO THE CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE TO COVID-19 AND RE-AUTHORIZING
THE CONDUCT OF PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY VIA REMOTE TELECONFERENCING FOR AN ADDITIONAL 30- DAY PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS AMENDED BY ASSEMBLY BILL NO. 361
JUNE 14, 2022
PAGE 2 OF 4
On March 20, 2020, the City Council adopted Resolution No. 2020-4753 declaring and proclaiming the existence of a local emergency in the City in response to COVID-19.
The Governor subsequently issued a number of executive orders aimed at promoting social distancing to reduce the spread of COVID-19. The Orders included suspending the following requirements of the Ralph M. Brown Act governing how public meetings are conducted:
• the requirement that local agencies provide notice of each teleconference location from which a member of the legislative body will be participating in a public meeting;
• the requirement that each teleconference location be accessible to the public;
• the requirement that members of the public be able to address the legislative body at each teleconference conference location; • the requirement that local agencies post agendas at all teleconference locations; and
• the requirement that at least a quorum of the members of the local body participate from locations within the boundaries of the territory over which the local body exercises jurisdiction.
The legislative bodies conducted many of their meetings via remote teleconferencing consistent with the declaration of local emergency and executive orders issued by the Governor during the shutdown. Equipment was then installed in the Council Chambers that provides the added capability of hybrid simultaneous in-person and virtual meetings.
When the Order expired, State legislation was adopted that extended the ability to meet remotely under specified circumstances. When that expired, the City temporarily discontinued the ability of elected officials and board members to participate in meetings remotely. Additional State legislation has been proposed and is under consideration. In the meantime, the Governor’s declared State of Emergency remains in effect. This, along with the CDC and County Health Officer’s guidelines, provides the City Council the ability to make the findings necessary to continue to participate in meetings virtually.
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING MAKING FINDINGS RELATED TO THE CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE TO COVID-19 AND RE-AUTHORIZING
THE CONDUCT OF PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY VIA REMOTE TELECONFERENCING FOR AN ADDITIONAL 30- DAY PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS AMENDED BY ASSEMBLY BILL NO. 361
JUNE 14, 2022
PAGE 3 OF 4
The findings were last approved by the City Council at the May 24, 2022 meeting. Therefore, approval is necessary again at this time because the next meeting on June 28th would exceed the 30-day requirement.
DISCUSSION:
Provisions regarding the ability of Council, Board and Commission members participating in meetings remotely remain the same, which include the following:
• In each instance in which notice of the time of the teleconferenced meeting is given or the agenda for the meeting is posted, the legislative body shall also give notice of the manner by which members of the public may access the meeting and offer public comment;
• The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option; • The legislative body shall allow members of the public to access the meeting, and the agenda shall include an opportunity for members of the public to address the legislative body directly;
• In the event of a disruption which prevents the local agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored; and
• Written/remote public comment must be accepted until the point at which the public comment period is formally closed; registration/sign-up to provide/be recognized to provide public comment can only be closed when the public comment period is formally closed.
A number of circumstances could involve the need for virtual attendance, such as the following:
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING MAKING FINDINGS RELATED TO THE CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE TO COVID-19 AND RE-AUTHORIZING
THE CONDUCT OF PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF
THE CITY VIA REMOTE TELECONFERENCING FOR AN ADDITIONAL
30-DA Y PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS
AMENDED BY ASSEMBLY BILL NO. 361
JUNE 14, 2022
PAGE 4OF 4
• If a member is exposed to COVID-19 and choses to participate virtually in order to limit the risk of exposing others;
• An increase in cases cause a change in restrictions that may require virtual attendance or make it preferable if masks were required; and • Other circumstances that may make it feasible to attend a meeting virtually when in-person attendance is not possible.
The City Attorney has drafted the attached Resolution, which will enable the City to maintain virtual attendance by Council, board and commission members at meetings if approved by a majority of the Council.
COST ANALYSIS:
There are no anticipated costs for this action.
ENVIRONMENTAL REVIEW:
This action is not a "project" for the purposes of the California Environmental Quality Act (CEQA) as it does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Adopt the Resolution
2. Modify and adopt the Resolution;
3. Do not adopt the Resolution and require all members to follow normal Brown Act requirements to participate virtually; or
4. Provide staff other direction.
Prepared and Approved by:
Steven Adams, City Manager
RESOLUTION NO. 2022-4885
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING MAKING
FINDINGS RELATED TO THE CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE TO COVID-19 AND RE-AUTHORIZING THE CONDUCT OF
PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY VIA REMOTE TELECONFERENCING FOR AN ADDITIONAL 30-DAY PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS AMENDED BY ASSEMBLY BILL NO. 361
WHEREAS, the City Council of the City of King (“City”) are committed to preserving and nurturing public access and participation in meetings of the legislative bodies (as that term is defined in Government Code §54952, including commissions, boards and committees subject to the Brown Act) of the City (collectively, the “Legislative Bodies”); and WHEREAS, all meetings of the Legislative Bodies are open and public as required by the Ralph M. Brown Act, codified as Government Code §§ 54950 et seq., so that any member of the public may attend, participate, and observe the Legislative Bodies conduct their business; and WHEREAS, the Brown Act, at Government Code § 54953(e), as amended by Assembly Bill (AB) 361 effective October 1, 2021, makes provision for remote teleconferencing participation in public meetings by members of a Legislative Body without compliance with the provisions of Government Code § 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition under Government Code § 54953(e) is that the meeting is held during a state of emergency that has been declared by the Governor pursuant to Government Code § 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code § 8558; and
WHEREAS, a proclamation can be made under circumstances including conditions when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological, or human-caused disasters
WHEREAS, it is further required that state or local officials continue to impose or recommend measures to promote social distancing; and
WHEREAS, starting in March 2020, in response to the spread of COVID-19 in the State of California, the Governor proclaimed a state of emergency for the State of California and thereafter issued a number of executive orders aimed at containing COVID-19; and WHEREAS, on March 20, 2020, the City Council adopted Resolution No. 2020-4753 declaring and proclaiming the existence of a local emergency in the City in response to COVID-19.
The Legislative Bodies have since conducted many of their meetings via remote teleconferencing consistent with the declaration of local emergency and executive orders issued by the Governor; and
WHEREAS, the executive orders issued by the Governor, among other things, waived requirements of the Brown Act expressly or impliedly requiring the physical presence of members of the legislative body, the clerk or other personnel of the body, or of the public as a condition of participation in or for the purpose of establishing a quorum for a public meeting. Without limitation, the orders waived the following requirements of Government Code §54953(b)(3):
• the requirement that local agencies provide notice of each teleconference location from which a member of the legislative body will be participating in a public meeting; • the requirement that each teleconference location be accessible to the public; • the requirement that members of the public be able to address the legislative body at each teleconference conference location;
• the requirement that local agencies post agendas at all teleconference locations; and • the requirement that at least a quorum of the members of the local body participate from locations within the boundaries of the territory over which the local body exercises jurisdiction; and
WHEREAS, on June 11, 2021, the Governor issued Executive Order N-08-21, which rescinded the modifications made by the aforementioned executive orders, effective September 30, 2021. On September 16, 2021, the Governor signed AB 361, creating a modified set of provisions for local agencies for compliance with the Brown Act relative to remote meetings. AB 361 was made effective on October 1, 2021. These modifications include the following:
• In each instance in which notice of the time of the teleconferenced meeting is given or the agenda for the meeting is posted, the legislative body shall also give notice of the manner by which members of the public may access the meeting and offer public comment;
• The agenda shall identify and include an opportunity for all persons to attend via a callin option or an internet-based service option; • The legislative body shall allow members of the public to access the meeting, and the agenda shall include an opportunity for members of the public to address the legislative body directly;
• In the event of a disruption which prevents the local agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internetbased service option, the legislative body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internetbased service option is restored; and • Written/remote public comment must be accepted until the point at which the public comment period is formally closed; registration/sign-up to provide/be recognized to provide public comment can only be closed when the public comment period is formally closed.
WHEREAS, the Governor’s proclaimed state of emergency and the City’s proclaimed local emergency related to COVID-19 remain in effect and encompass the jurisdictional boundaries of the City and Successor Agency. State of California and County of Monterey Public Health officials have recommended measures to promote social distancing, and the Centers for Disease Control and Prevention (“CDC”) continue to recommend physical distancing; and WHEREAS, as a consequence of the persisting state of emergency and the imposed or recommended social distancing measures, the Legislative Bodies may conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code § 54953, as authorized by subdivision (e) of Government Code § 54953, and that the Legislative Bodies may comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of Government Code § 54953; and WHEREAS, consistent with AB 361, during the effectiveness of this Resolution, the Legislative Bodies and their staff may choose to avail themselves with AB 361 and give notice of the manner by which members of the public may access the Legislative Bodies’ meetings and offer public comment; identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option; and allow members of the public to access the meeting, and the agenda shall include an opportunity for members of the public to address the Legislative Body directly.
NOW, THEREFORE, the City Council of the City of King does resolve as follows:
SECTION 1. The foregoing recitals are true and correct and are incorporated herein by reference.
SECTION 2. The City Council has considered the existing conditions of the state of emergency in the City and, consistent with the provisions of Government Code § 54953(e), hereby finds and determines that: (1) a proclaimed statewide state of emergency and a proclaimed local emergency related to COVID-19 are both currently in effect and persist in the jurisdictional boundaries of the City; and (2) State, local and CDC officials have imposed or recommended measures to promote social distancing in connection with the COVID-19 emergency.
SECTION 3. The City Council hereby acknowledges the Governor’s proclaimed state of emergency and the City’s proclaimed local emergency (as may have been amended since their initial proclamation) which encompass their jurisdictional boundaries.
SECTION 4. The Legislative Bodies and staff are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, which may include the alternative of conducting all open and public meetings of the Legislative Bodies in accordance with Government Code § 54953(e) and other applicable provisions of the Brown Act.
SECTION 5. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) July 14, 2022, or (ii) such time as the City Council adopts a subsequent resolution in accordance with Government Code § 54953(e)(3) to extend the time during which the Legislative Bodies may continue to teleconference without compliance with paragraph (3) of subdivision (b) of Government Code § 54953.
SECTION 6. Should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.
This resolution was passed and adopted this 14th day of June, 2022 by the following vote:
AYES, Council Members:
NAYS, Council Members:
ABSENT, Council Members:
ABSTAIN, Council Members:
APPROVED:
_______________________________
Mike LeBarre, Mayor
ATTEST:
___________________________________
Steven Adams, City Clerk
APPROVED AS TO FORM:
____________________________________
Roy Santos, City Attorney
I, ________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.
Item No. 10 (A)
REPORT TO THE CITY COUNCIL
Date:
To:
From:
Subject:
JUNE 14, 2022
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
MIKE HOWARD, FINANCE DIRECTOR
CONSIDERATION OF RIVERVIEW GARDENS
LANDSCAPE MAINTENANCE DISTRICT ANNUAL ASSESSMENT FOR
FISCAL YEAR 2022-23
RECOMMENDATIN:
It is recommended that the City Council open the Public Hearing to accept public testimony regarding the levy and collection of assessments for the Riverview Gardens Landscape Maintenance District, close the public hearing, and adopt Resolution No. 2022-4879 approving the report and ordering the levy and collection of assessments for the Riverview Gardens Landscape Maintenance District pursuant to provisions of the Landscaping and Lighting Act of 1972 of the Streets and Highways Code of the State of California.
BACKGROUND:
The Riverview Gardens Landscape Maintenance District was formed in 1998, for the purpose of providing maintenance services to landscaping and appurtenant improvements for the Riverview Gardens development and assessing those properties which benefit from this service. Each year the City Council must, by law, order the preparation of an Engineer's Report describing the existing and proposed maintenance services, and conduct a public hearing to establish and order the amount of assessment for the next fiscal year.
At the time the District was formed, the engineer included an annual assessment adjustment, equal to the April Consumer Price Index for the San Francisco-OaklandHayward areas (“CPI”). Each year since the District was formed, a new maximum assessment was established by applying the April CPI to the Maximum Assessment for the prior year. The City may assess the District parcels any amount, up to the established Maximum Assessment for that year, but may not exceed that amount. Included in the Engineer’s Report is a table showing the Maximum Assessment and the Actual Assessment for each year since the District was formed.
CITY COUNCIL
CONSIDERATION OF RIVERVIEW GARDENS LANDSCAPE
MAINTENANCE DISTRICT ANNUAL ASSESSMENT FOR FISCAL YEAR 2022-23 JUNE 14, 2022
PAGE 2 OF 3
DISCUSSION:
On May 10, 2022 the City Council adopted Resolutions and provide notice to the members of the District and citizens of the City of King of the City’s intent to again levy and collect assessments fees for the previously formed landscaping and lighting district.
In addition, the Resolutions established that the City Council: (1) finds that the public interest and convenience requires, and (2) declares its intention, to order the levy of and to collect assessments against the assessable lots and parcels of property within an existing assessment district designated “Landscaping and Lighting Maintenance District “Riverview Gardens Landscape Maintenance District” (“District”) pursuant to the provisions of the Act, for the fiscal year commencing July 1, 2022 and ending June 30, 2023, to pay for the costs and expenses of the improvements described in the Resolution.
At the first Council meeting for this item, Council approved an estimated rate based on a 6% CPI adjustment. The actual April 2022 CPI is 4.99%. This requires that the initially approved assessment rate of $441.62, be reduced to $437.44. The reduced assessment rate, reflecting the actual April CPI, has been updated in the attached Engineer’s Report.
COST ANALYSIS:
The District was established to fund the ongoing maintenance and servicing of the improvement. The properties within the District are assessed annually on through the Monterey County tax roll. The costs to maintain and service the improvements for Fiscal Year 2022-23 has been estimated at $19,684.80. This includes contract services for the maintenance and servicing of the improvements, utilities, engineering and administrative costs, Monterey County charges, and reserve collections. Each of the 45 parcels in the District benefits equally from the improvements and as a result, each parcel is assessed the same amount. For Fiscal Year 2022-23, that amount is $437.44. If the assessments are not charged to the properties within the District, the costs to maintain the improvements will have to be funded in some other way.
ENVIRONMENTAL REVIEW:
The resolution is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. Most of the terms and scope of city discretion are guided by existing State and Federal law. The resolution declares the City’s intent to levy and collect assessment fees. The resolution does not authorize any specific development or installation on any specific piece of property within the City’s boundaries. Alternatively, the resolution is exempt from CEQA because the City Council’s adoption of the resolution is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment (State CEQA Guidelines, § 15061(b)(3)).
CITY COUNCIL
CONSIDERATION OF RIVERVIEW GARDENS LANDSCAPE
MAINTENANCE DISTRICT ANNUAL ASSESSMENT FOR FISCAL YEAR 2022-23 JUNE 14, 2022
PAGE 3 OF 3
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Approve staff's recommendations;
2. Reduce and approve the cost of the Assessment, which would require the City to subsidize the maintenance if the cost is reduced;
3. Direct staff to eliminate the assessment and maintenance work; or
4. Provide other direction to staff.
Exhibits:
1. Resolution No. 2022-4879
2. Final Engineer's Report
Prepared by: ��
Mike Howara, Finance Director
Approved by: .... �......-...::;..:;....:-=-:==------------ Steven Adams, City Manager RESOLUTION NO. 2022-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING AMENDING AND/OR
APPROVING THE ANNUAL ASSESSMENT REPORT AND ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR THE RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT FOR FISCAL YEAR 2022-23
WHEREAS, the City Council of the City of King has, by previous Resolutions, initiated proceedings and declared its intention to levy and collect annual assessments in a special maintenance district created pursuant to the terms of the “Landscaping and Lighting Act of 1972”, being Division 15, Part 2 of the Streets and Highways Code of the State of California (the “1972 Act”). Said special maintenance district is known and designated as Riverview Gardens Landscape Maintenance District, (the “District”);
WHEREAS, at this time all notice and Public Hearing requirements as required by the 1972 Act and Proposition 218 have been met relating to the levy of the annual assessments; and, WHEREAS, the City Council has received and reviewed the Engineer’s Report (the “Report”) and is now satisfied with the assessments, diagram and all other matters as contained in the Report as it is now submitted for final consideration and approval; and, WHEREAS, the assessments are in compliance with all laws pertaining to the levy of the District assessments; said assessments are levied without regard to property valuation and are in compliance with the provisions of Proposition 218 as the District was approved by a 100% vote of the property owners at the time of formation; and,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KING AS FOLLOWS:
RECITALS
Section 1. The above recitals are all true and correct.
Section 2. This City Council hereby finds and determines that the procedures for the consideration of the levy of the annual assessments have been undertaken in accordance with the 1972 Act and Proposition 218. The proposed assessments for Fiscal Year 2022/23 are not proposed to be increased beyond what was previously authorized at the time of formation of the District.
DETERMINATION AND CONFIRMATION
Section 3. The final assessments and diagram for the proceedings, as contained in the Report, are hereby approved and confirmed.
Based upon the Report and the testimony and other evidence presented at the Public Hearing, the City Council hereby makes the following determinations regarding the proposed assessments:
EXHIBIT 1
a. The proportionate special benefit derived by each assessed parcel has been determined in relationship to the entirety of the cost of the operations, maintenance and servicing of the improvements.
b. The assessments do not exceed the reasonable cost of the proportional special benefit conferred on each parcel.
c. Only special benefits have been assessed.
The assessments for the District contained in the Report for Fiscal Year 2022/23 are hereby confirmed and levied upon the assessable lots or parcels within the District in the amounts set forth in the Report.
ORDERING OF MAINTENANCE
Section 4. The public interest and convenience requires and this legislative body does hereby order the maintenance work to be performed as said maintenance work is set forth in the Report and as previously declared and set forth in the Resolution of Intention.
FILING WITH SECRETARY
Section 5. The above referenced Report shall be filed in the Office of the City Clerk and shall remain open for public inspection.
ENTRY UPON THE ASSESSMENT ROLL
Section 6. The County Auditor shall enter onto the County Assessment roll, opposite each lot or parcel of land, the amount assessed thereupon, as shown in the Report.
COLLECTION AND PAYMENT
Section 7. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County Taxes shall apply to the collection and enforcement of the assessments.
FISCAL YEAR
Section 8. The assessments as above authorized and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2022 and ending June 30, 2023.
PASSED AND ADOPTED at a regular meeting of the City Council this 14th day of June 2022, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
______________________________
Mike Lebarre, Mayor
ATTEST:
___________________________
Steven Adams, City Clerk
APPROVED AS TO FORM:
___________________________
Roy Santos, City Attorney
CITY OF KING
FINAL ENGINEER’S REPORT
FISCAL YEAR 2022-23
RIVERVIEW GARDENS LANDSCAPE
MAINTENANCE DISTRICT
June 2022
PREPARED BY
Harris & Associates
450 Lincoln Avenue, Suite 103
Salinas, CA 93901
www.weareharris.com
EXHIBIT 2
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….4 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….7 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………...8 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..12 APPENDIX B – DISTRICT DIAGRAM.………………………………………………………………………...15 Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF KING
PROJECT: RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT TO: THE CITY COUNCIL
CITY OF KING
STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2022-23
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Riverview Gardens Landscape Maintenance District of the City of King to provide landscaping services for each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2022-23.
Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of King’s Resolution being adopted by the City Council for the:
RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT
(Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report consisting of the following four (4) parts and Appendices:
PART 1
Description of Improvements: This part provides a general description of improvements maintained in the District. Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.
PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2022-23.
PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Monterey County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. The District Diagram is filed under separate cover with the office of the City Clerk. A copy of the District Diagram is included herein as Appendix B.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established Resolution No. 3757 approved on the 19 th day of May, 1998.
Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.
DATED this 21st day of June, 2022
_____________________________________
Alison Bouley P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
3 PART 1 – PLANS AND SPECIFICATIONS
The District was formed for the purpose of ensuring the ongoing operation, maintenance and servicing of certain landscape improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.
The Riverview Gardens Landscape Maintenance District is within the boundaries of the City and is located south of Willow Street, east of San Antonio Drive, and generally north of King City high school.
The District is comprised of the residential development known as Riverview Gardens and includes forty-five (45) developed single-family residential parcels.
The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file with the City and are incorporated herein by reference.
IMPROVEMENTS AND SERVICES PROVIDED
The following are the specific improvements maintained and serviced within the District:
• Landscape maintenance along the Willow Street frontage, including ground cover, shrubs, trees and irrigation system. Landscaping total approximately 12,275 square feet. • Masonry wall maintenance, including graffiti abatement at the entrance to the tract. Masonry wall is 300 linear feet by 6 feet high.
• Utilities including water and electricity for landscaping.
Maintenance includes all necessary repair, service, and replacement of improvements, including the masonry wall, water and electrical energy to run the irrigation system, fertilizer, weeding, debris removal, etc.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
4 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.
The estimated 2022-23 District budget is shown below.
ESTIMATE OF COST
DIRECT COSTS
Utility – Water and Electricity $3,438.77
Supplies – Irrigation 265.00
Contract Services – Landscape Maintenance (12,275 sf @0.46/sf) (ex: tree & shrub maintenance and replacement, sprinkler repairs, etc.) 5,698.56
Masonry Wall – Maintenance and Graffiti Abatement 180.00 Professional Services – Public Works (inspection & oversight) 530.00 Direct Costs Sub-Total $10,112.33
ADMINISTRATIVE COSTS
Professional Services – Engineer’s Report Preparation $1,500.00 City Administration Fee (10% of Direct Costs) 1,011.23
County Administration Fee (0.25% of Balance to Assessment) 49.21 Rounding Adjustment (to make an even penny for tax roll purposes) 0.00 Administrative Costs Sub-Total $2,560.44
SUBTOTAL DIRECT AND ADMINISTRATIVE COSTS $12,672.77
Operating Reserve Collection/(Reduction) $3,897.02
Capital Reserve Collection/(Reduction) 3,115.01
TOTAL BALANCE TO ASSESSMENT $19,684.80
Total Assessable Parcels/Units 45
ASSESSMENT PER PARCEL/UNIT $437.44
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
5 The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2022-23 are shown in the following table.
Section 22569 (a) of the 1972 Act allows the District assessments to “…include a reserve (Operating Reserve) which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.”
DISTRICT FUND BALANCES
OPERATING RESERVE FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2022 $2,439.37 Operating Reserve Collection/(Reduction) – Fiscal Year 2022-23 3,897.02 Estimated Reserve Fund Balance Ending June 30, 2023 $6,336.39
CAPITAL RESERVE FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2022 $0.00 Operating Reserve Collection/(Reduction) – Fiscal Year 2022-23 3,115.01 Estimated Reserve Fund Balance Ending June 30, 2023 $3,115.01 Operating Reserve collections will continue until such time as the fund balance reaches approximately 50% of the annual budget. This is necessary to fund the District costs for the first 6 months of the fiscal year. After the Operating Reserve has been fully funded (50% of annual costs), any future collections will be to maintain the fund balance at the proper level (approximately 50% of the annual costs).
Capital Reserve collection is intended for the eventual replacement of the masonry wall at the entrance of the development. Masonry walls typically have an expected useful life of approximately 30 years. The wall was installed in 1998, leaving approximately seven years of useful life, as of Fiscal Year 2022-23. The allowable District assessment is insufficient for Capital Reserve collections at this time, but future budgets may include amounts to contribute to the replacement of the masonry wall.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
6 DESCRIPTION OF COST ESTIMATE ITEMS
• Utility – Water & Electricity: The costs to provide water and electrical utilities for the landscaping improvements within the District.
• Supplies – Irrigation: The costs to replace batteries providing electrical power to the irrigation system.
• Contract Services – Landscape Maintenance: The contracting costs associated with performing the landscape maintenance duties associated with the improvements within the District. In Fiscal Year 2021-22 the City hired a landscape contractor to perform these services. Annual costs will be adjusted to reflect the actual contract costs in future years. • Masonry Wall: Costs associated with the maintenance of the masonry wall, including graffiti removal, painting and repairs. This cost is currently equal to $0.10/sf, but may be adjusted as necessary to cover actual costs.
• Professional Services Special – Public Works: Costs associated with individuals within the Public Works Department who contribute time to inspection of the improvements, and oversight of the work performed by the landscape contractor.
• Professional Services – Engineer: The contracting costs associated with hiring a consultant for the preparation of an engineer’s report, resolutions, staff reports, notices, assessment roll and budget. • City Administration Fee: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District, and totals 10% of Direct Costs. This may include but is not limited to, preparation for and attendance of meetings, legal counsel, printing, preparation and posting of public notices, mailing, budgeting, etc.
• County Administration Fee – The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is 0.25% of the total amount levied for the District.
• Contingency – This item includes costs related to the unplanned repair or replacement of any of the improvements, including the irrigation system.
• Operating Reserve Collection/(Contribution): This item shows any collections which adds to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset the annual budget.
• Capital Reserve Collection/(Contribution): Collections for replacement costs related to the masonry wall, irrigation system and trees at the end of their useful life or due to accident or natural disaster. • Estimated Reserve Fund Balances: These items show the estimated Operating and Capital Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
7 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City, and is hereby made a part hereof by reference.
A copy of the assessment diagram for the District is included in Appendix B of the Report.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
8 PART 4 – METHOD OF APPORTIONMENT
General
Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will received different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.
The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.
SPECIAL BENEFIT
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for each tract. As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District.
General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a requirement of the development of the tract and are for the sole benefit of those properties. It has been determined therefore, any access or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining and servicing said improvements therefore provides no measurable benefit to outside properties or individuals.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
9 Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local landscaping improvements are specifically:
• Enhanced desirability of properties due to proximity and accessibility of the improvements. • Improved aesthetic appeal provided by a positive representation of the development, neighborhood and the community.
• Reduced vandalism and other criminal activity.
ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, Section 53739 (b)(1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District and was approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.
To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year, as provided by the following Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest balloting process before any such new or increased assessment can be imposed.
A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighting those assessment ballots by the financial obligation of each parcel.
The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.
ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel that benefits from said improvements. One of the more common approaches to fairly distributing District costs to the benefitting parcels in maintenance districts such as this utilizes a methodology referred to as the “Per Parcel” method of apportionment. This method, as confirmed by the City Council at the time the District was formed, identifies the fact that all the parcels in the District, each being single family residential, benefit equally from the improvements provided by the District.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
10 The initial maximum assessment for this District was established at the time of formation and was assessed for the first time during the 1998-99 fiscal year. That initial maximum assessment was $221.72 per parcel. This initial maximum assessment has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
• The Maximum Assessment Rate allowed each fiscal year (the “Adjusted Maximum Assessment Rate”) shall be based on the initial maximum assessment established in Fiscal Year 1998-99, adjusted annually by the Bureau of Labor Statistics, Consumer Price Index for the month of April, All Urban Consumers, (“CPI”) for the San Francisco/Oakland/Hayward area. Should the Bureau of Labor Statistics revise or discontinue the preparation of such index, the City reserves the right to use such revised index or a comparable system to determine fluctuations in the annual cost of living.
• Each fiscal year, the CPI shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the current fiscal year. • If the proposed annual assessment rate (levy per parcel) for the any year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year then the proposed annual assessment is not considered an increased assessment.
Beginning in the second fiscal year after the formation of the District (1999-00) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. Based on the April CPI shown in the table below, the Maximum Assessment Rate for the upcoming fiscal year (2022-23) shall be $437.44. The Adjusted Maximum Assessment Rate has been calculated independent of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218.
The table on the following page shows the annual April CPI increase, the Adjusted Maximum Assessment and the Actual Annual Assessment each year since the formation of the District:
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
11 *April 2022 CPI has been updated to reflect the actual increase for the period of April 2021 to April 2022. 6% was used as an estimate, when this Report was initially presented to the City Council for approval. Using 6% allows the City Council to reduce the approved assessment rate at the Public Hearing without violating Proposition 218. Per Assessment Law, the City Council may reduce the preliminarily approved assessment rate but may not increase it over what wasinitially approved and published in the Notice of Public Hearing. The assessment rate preliminarily approved by the City Council was $441.63. The adjusted assessment rate, using the actual April CPI, is $437.44, as shown in the table above. The adjusted assessment rate will be the rate applied to the benefiting parcels for Fiscal Year 2022/23.
The City assessed the parcels in the District for the first time in seven years, in Fiscal Year 2019-20, due to the fact that there were no improvements being maintained. The improvements have now been installed and are being maintained and serviced.
Fiscal April CPI Adjusted Max. Proposed
Year CPI % Calculation Assessment Assessment
1998-99 N/A N/A $221.72 $221.72
1999-00 4.60% 1.046000000 $231.92 $221.72
2000-01 3.80% 1.038000000 $240.73 $213.60
2001-02 5.80% 1.058000000 $254.69 $229.92
2002-03 2.10% 1.021000000 $260.04 $229.92
2003-04 2.20% 1.022000000 $265.76 $114.96
2004-05 0.50% 1.005000000 $267.09 $114.96
2005-06 2.10% 1.021000000 $272.70 $114.96
2006-07 3.20% 1.032000000 $281.43 $114.96
2007-08 3.30% 1.033000000 $290.72 $114.96
2008-09 2.90% 1.029000000 $299.15 $114.96
2009-10 0.80% 1.008000000 $301.54 $25.00
2010-11 1.70% 1.017000000 $306.67 $25.00
2011-12 2.80% 1.028000000 $315.25 $25.00
2012-13 2.10% 1.021000000 $321.87 $0.00
2013-14 2.40% 1.024000000 $329.60 $0.00
2014-15 2.80% 1.028000000 $338.83 $0.00
2015-16 2.40% 1.024000000 $346.96 $0.00
2016-17 2.70% 1.027000000 $356.33 $0.00
2017-18 3.80% 1.038000000 $369.87 $0.00
2018-19 3.20% 1.032000000 $381.70 $0.00
2019-20 4.00% 1.040000000 $396.97 $213.60
2020-21 1.11% 1.011102405 $401.38 $401.38
2021-22 3.80% 1.038000000 $416.63 $416.62
2022-23* 4.99% 1.049961379 $437.44 $437.44
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
12 APPENDIX A – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the Monterey County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.
A listing of parcels assessed within the District for Fiscal Year 2022-23, along with the corresponding assessment amounts, is included on the following page. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report.
Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.
Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions. These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
13 APN
Parcel
Type Units
2022-23 Maximum
Assessment Rate
2022-23 Proposed
Assessment Rate
2022-23 Proposed
Assessment
026-072-001 SFR 1.00 $437.44 $437.44 $437.44
026-072-002 SFR 1.00 $437.44 $437.44 $437.44
026-072-003 SFR 1.00 $437.44 $437.44 $437.44
026-072-004 SFR 1.00 $437.44 $437.44 $437.44
026-072-005 SFR 1.00 $437.44 $437.44 $437.44
026-072-006 SFR 1.00 $437.44 $437.44 $437.44
026-072-007 SFR 1.00 $437.44 $437.44 $437.44
026-072-008 SFR 1.00 $437.44 $437.44 $437.44
026-072-009 SFR 1.00 $437.44 $437.44 $437.44
026-072-010 SFR 1.00 $437.44 $437.44 $437.44
026-072-011 SFR 1.00 $437.44 $437.44 $437.44
026-072-012 SFR 1.00 $437.44 $437.44 $437.44
026-072-013 SFR 1.00 $437.44 $437.44 $437.44
026-072-014 SFR 1.00 $437.44 $437.44 $437.44
026-072-015 SFR 1.00 $437.44 $437.44 $437.44
026-072-016 SFR 1.00 $437.44 $437.44 $437.44
026-072-017 SFR 1.00 $437.44 $437.44 $437.44
026-072-018 SFR 1.00 $437.44 $437.44 $437.44
026-072-019 SFR 1.00 $437.44 $437.44 $437.44
026-072-020 SFR 1.00 $437.44 $437.44 $437.44
026-072-021 SFR 1.00 $437.44 $437.44 $437.44
026-072-022 SFR 1.00 $437.44 $437.44 $437.44
026-072-023 SFR 1.00 $437.44 $437.44 $437.44
026-072-024 SFR 1.00 $437.44 $437.44 $437.44
026-072-025 SFR 1.00 $437.44 $437.44 $437.44
026-072-026 SFR 1.00 $437.44 $437.44 $437.44
026-072-027 SFR 1.00 $437.44 $437.44 $437.44
026-072-028 SFR 1.00 $437.44 $437.44 $437.44
026-072-029 SFR 1.00 $437.44 $437.44 $437.44
026-072-030 SFR 1.00 $437.44 $437.44 $437.44
026-072-031 SFR 1.00 $437.44 $437.44 $437.44
026-072-032 SFR 1.00 $437.44 $437.44 $437.44
026-072-033 SFR 1.00 $437.44 $437.44 $437.44
026-072-034 SFR 1.00 $437.44 $437.44 $437.44
026-072-035 SFR 1.00 $437.44 $437.44 $437.44
026-072-036 SFR 1.00 $437.44 $437.44 $437.44
026-072-037 SFR 1.00 $437.44 $437.44 $437.44
026-072-038 SFR 1.00 $437.44 $437.44 $437.44
026-072-039 SFR 1.00 $437.44 $437.44 $437.44
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
14 APN
Parcel
Type Units
2022-23 Maximum
Assessment Rate
2022-23 Proposed
Assessment Rate
2022-23 Proposed
Assessment
026-072-040 SFR 1.00 $437.44 $437.44 $437.44
026-072-041 SFR 1.00 $437.44 $437.44 $437.44
026-072-042 SFR 1.00 $437.44 $437.44 $437.44
026-072-043 SFR 1.00 $437.44 $437.44 $437.44
026-072-044 SFR 1.00 $437.44 $437.44 $437.44
026-072-045 SFR 1.00 $437.44 $437.44 $437.44
026-072-046 EXE 0.00 $437.44 $437.44 $0.00
026-072-047 EXE 0.00 $437.44 $437.44 $0.00
026-072-048 EXE 0.00 $437.44 $437.44 $0.00
TOTALS: 45.00 $19,684.80
SFR = Single Family Residence
EXE = Landscape easement
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2022-23
15 APPENDIX B – ASSESSMENT DIAGRAM
Item No. 10 (B)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
RECOMMENDATION:
It is recommended the City Council adopt a Resolution which authorizes a revised application submittal to the California Department of Housing and Community Development Department (“HCD”) to receive and administer $134,185 in the first year and $805,115 over a 5-year period in Permanent Local Housing Allocation Program (“PLHA”) Grant funds.
BACKGROUND:
On December 14, 2021, the City Council adopted Resolution No. 2021-4843, which amended the funding formula for affordable housing. HCD contacted the City and stated they want the PLHA Plan attached to the Resolution and required another public hearing. On July 23, 2020, the City Council adopted Resolution No. 2020-4778, authorizing the PLHA application submittal to the State.
SB 2 prescribes that revenue collected for the 2019 calendar year be deposited into the Building Homes and Jobs Trust Fund. Seventy percent of the Fund has been made available to HCD to assist local governments in eligible housing-related projects and programs.
On February 26, 2020, HCD published a Notice of Funding Availability (“NOFA”) for the Permanent Local Housing Allocation (“PHLA”) Program allocation. As a non-entitlement jurisdiction, the City of King is being allocated $134,185 for the first year and $805,115 over a 5-year period.
DISCUSSION
In 2017, the Governor signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, it included SB 2, referred to as the “Building Homes and Jobs Act”. SB 2 establishes a permanent, ongoing source of funding dedicated to promoting and facilitating affordable housing development. SB 2 funding is secured through a fee that is imposed at the time of recording of every real estate instrument, paper or notice for each single real estate transaction on a parcel of property. The recording
CITY COUNCIL
CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
JUNE 14, 2022
PAGE 2 OF 4
fees range from $75 to $225 depending upon the nature and scope of the property transaction.
Sales transactions for single-family homes are exempt from this fee. Approximately $195 million in statewide revenue has been earmarked for local government affordable housing grants as a result of this fee.
Staff recommends funding be used for two activities. Two initial projects the City has made preliminary funding commitments to include the permanent supportive housing project and the CHISPA Mills Ranch affordable housing units. The proposed revised allocations are shown in Table 1.
Table 1
NOTE: Strikethrough text shows items proposed to be deleted. Underlined and italicized text shows proposed changes.
As required by HCD, the City provided a 10 days of notice prior to the public hearing so that the public had adequate opportunity to review the PLHA Plan. The City published the public hearing notice in the Rustler on June 1, 2022 and uploaded the public notice on the City’s website.
City of King HCD PLHA Proposed Activities (Years 1-5 Allocation) (Years 2-5 funding amounts are estimates)
Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
The predevelopment, development, acquisition,
rehabilitation, and preservation of multifamily,
residential live-work, rental housing that is
affordable to extremely low-, very low-, low-, or
moderate-income households, including necessary
operating subsidies.
25%
95%
45%
95%
45%
50%
70%
0%
70%
0%
Matching portions of funds placed into Local or
Regional Housing Trust Funds.
25%
0%
25%
0%
25%
0%
0%
0%
0%
0%
Assisting persons who are experiencing or at risk
of homelessness, including, but not limited to,
providing rapid rehousing, supportive permanent
housing rental assistance, supportive/case
management services that allow people to obtain
and retain housing, operating and capital costs for
navigation centers and emergency shelters, and
the new construction, rehabilitation, and
preservation of permanent and transitional
housing.
45%
0%
25%
0%
25%
45%
25%
95%
25%
95%
Total 100% 100% 100% 100% 100%
CITY COUNCIL
CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
JUNE 14, 2022
PAGE 3 OF 4
COST ANALYSIS:
There is no General Fund impact associated with this agenda item. PLHA does not require a local financial commitment or “match” from local jurisdictions requesting grant funds.
Table 2 identifies the funding available for the first-year allocation.
Table 2
City of King PLHA Proposed Budget (Year 1 Allocation)
Description Amount
Administration (5%) $6,710
Activity Funds $127,475
Total $134,185
ENVIRONMENTAL REVIEW:
The City of King has determined that the proposed action is not a project as defined by the California Environmental Quality Act (“CEQA”) per Guidelines Section 15378. CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
ALTERNATIVES:
1. Adopt the attached Resolution.
2. Modify the funding distribution and adopt the Resolution.
3. Do not adopt the attached Resolution and take no action.
4. Provide alternate direction.
Exhibits:
1. December 14, 2021 City Council Staff Report
2. PLHA Application
3. PLHA Resolution with City of King PLHA Proposed PLHA Plan
City Zip
Local Government Formula Allocation Rev. 5/20/20
Yes
§302(c)(4) Does the application include a Plan in accordance with §302(c)(4)? CA Zip: 93930 Monterey
§300(d) Is Applicant delegated by another Local government to administer on its behalf its formula allocation of program funds? N/A
File Name: PLHA webpage for Resolution Document Attached and on USB? State:
Attached and on USB?
§302(c)(3) Applicant certifies that, if the Local Government proposes allocation of funds for any activity to another entity, the Local government’s selection process had no conflicts of interest and was accesible to the public. §302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant.
Eligible Activities, §301
§302(a) Housing Element compliance: Applicant or Delegating Local Government's Housing Element was adopted by the Local Government’s governing body by the application deadline and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585.
Yes
Yes
Applicant agrees to adhere to §501, Audits/Monitoring of PLHA Files. Yes Applicant agrees to adhere to §500, Accounting Records. Yes Yes
§302(c)(5) Applicant certifies that the Plan submitted is for a term of five years. Local Governments agree to inform the Department of changes made to the Plan in each succeeding year of the term of the Plan. Yes
§302(c)(6) Applicant certifies that it will ensure compliance with §302(c)(6) if funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects.
§302(c)(8) Has Applicant attached a program income reuse plan describing how repaid loans will be reused for eligible activities specified in Section 301? No Yes
Administration
Taxpayer Identification Number Document Attached and on USB? Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to a Local Housing Trust Fund or to another Local Government, the Applicant (for which information is required below) is the Local Housing Trust Fund or administering Local Government. The PLHA award will be made to the Applicant (upon meeting threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement.
The 302(c)(4) Plan template worksheet requires first choosing one or more of the Eligible Activities listed below. If "Yes" is clicked, the 302(c)(4) Plan worksheet opens a series of questions about what precise activities are planned. Some specific activities, such as providing downpayment assistance to lower-income households for acquisition of an affordable home, could be included under either Activity 2 or 9. Please only choose one of those Activities; don't list the downpayment assistance under both Activities.
If the PLHA funds are used for the same Activity but for different Area Median Income (AMI) level, select the same Activity twice (or more times) and the different AMI level the Activity will serve. Please enter the percentage of funds allocated to the Activity in only the first Activity listing to avoid double counting the funding allocation.
Eligible Applicants §300
§300(a) and (b) Eligible Applicants for the entitlement and Non-entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments.
Applicant: City of King
Address:
County:
Yes
Entity Address 212 South Vanderhurst Avenue King City State CA 93930 On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block.
Signature Date
Entity name: City of King Phone Number: (831) 386-5916
Community Dev.
Director
Certifications
Doreen Liberto
Authorized Representative Printed Name Title
Applicant agrees to adhere to §503, Reporting. Yes
Applicant agrees to adhere to §502, Cancellation/Termination.
File Name:
§302(c)(4)(D) Applicant certifies that the Plan was authorized and adopted by resolution by the Local Government and that the public had an adequate opportunity to review and comment on its content
§302(c)(7) Applicant certifies that it will ensure that the PLHA assistance is in the form of a low-interest, deferred loan to the Sponsor of the Project, if funds are used for the development of an Affordable Rental Housing Development. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust. Yes Threshold Requirements, §302
Applicant Agreement Legally binding agreement between Delegating and Administering Local Governments
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. §301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §301(a)(5) Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing. §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
Yes
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to Extremely low-,Very low-, Low-, or Moderate-income households, including necessary operating subsidies. §301(a) Eligible activities are limited to the following: Included? Eligible Applicant Type: Nonentitlement
Local Government Recipient of PLHA Formula Allocation: King City 212 South Vanderhurst Avenue
City: King City
§302(b) Applicant or Delegating Local Government has submitted the current or prior year's Annual Progress Report to the Department of Housing and Community Development pursuant to Governemnt Code Section 65400.
File Name:
Approximate PLHA Formula Allocation Amount: $134,185 Allowable Local Admin (5%): $6,709 No
App1 TIN
App1 Signature Block
App1 Resolution
§300(d) If Applicant answered "Yes" above, has the Applicant attached the legally binding agreement required by §300 (c) and (d)? Signature Block - upload in Microsoft Word Document Attached and on USB? File Name:
YES YES YES YES YES YES YES YES YES YES
PLHA Page 1 Formula Allocation Application
EXHIBIT 2
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
The Housing Element's Cycle 5 Programs No. 2 and No. 3 promote the addition of affordable housing. Program #2 proposes to expand the City’s affordable housing inventory by a minimum of 200 units by 2023. The City is currently in discussions with the developer of "Mills Ranch" regarding the potential for part of the project's land to be sold to a non-profit for an affordable housing proejct. Program #3 proposes working with local farmers to establish new locations for Farmworking Housing for up to 200 workers. A project within the Downtown Addition Specific Plan was recently entitled for development of farmworker housing. A Regional Housing Trust Fund will also support the City’s housing element, which encourages the City’s participation in regional/multi-jurisdictional agreements and activities to facilitate housing development. Moreover, a Regional Trust Fund will assist the City in producing the additional units needed to meet the City’s Regional Housing Needs Assessment (RHNA) goal. §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate-income households, including necessary Operating subsidies. §302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental Housing Activity. §302(c)(4) Plan Rev. 5/20/20
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of King ("City") will allocated PLHA funds to three (3) activities: 1) providing gap financing for construction of multi-family rental housing projects within the City, targeted to households that are very-low and low; 2) contributing funds, beginning in the second year, for a Regional Housing Trust Fund to be established through the HCD Local Housing Trust Fund (“LHTF”) Program, in collaboration with the County of Monterey; 3) supporting the implementation of the Continuum of Care’s 10 Year Plan to reduce Homelessness, including rapid rehousing, rental assistance, and supportive/case management services to assist in securing or retaining housing. The City will also work on programs promoting new construction, rehabilitation, and preservation of permanent and transitional housing. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).
The City will allocate all Activity 1 funding to provide gap financing for construction of multi-family rental housing projects within the City, targeted to very-low and low income households. Similarly, funding allocated for the Regional Trust Fund, will provide loans and/or grants to affordable housing developers producing affordable rental housing also targeted to households that are very-low to low income. There are multiple affordable housing projects in the pipeline including the Rava Employee Housing Project and a project on farmland just outside of City limits where the City worked with the applicant and LAFCO on a Sphere of Influence Amendment and to provide extraterritorial wastewater service. All units produced through these projects that receive PLHA funding will be occupied by very-low to low income households. Over the next five (5) years, the City anticipates this funding will contribute to the production of additional affordable housing complexes for Activity 1 and as a result of the Regional Trust Fund. All new units will have an affordability restriction of 55 years. The City will prioritize affordable housing projects serving very-low to low income households and are essentially “shovel ready”. If multiple projects meet these criteria, the City will conduct a formal Request for Proposal and each application will be rated and ranked similar to the City’s HUD HOME Investment Partnership Program.
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) The City will allocate PLHA funding to provide gap financing for construction of multi-family rental housing projects targeted to households that are 60% AMI or below. These projects must be “shovel-ready” and have already applied for or secured other financing, such as applying to the California Tax Credit Allocation Committee (TCAC) for either 4% or 9% tax credits. If multiple projects meet these criteria, the City will conduct a formal Request for Proposal and each application will be rated and ranked similar to the City’s HUD HOME Investment Partnership Program. Qualified projects may be recommended for future years. In addition, the City may use its HUD funding (CDBG & HOME) to complement the PLHA funding. Any committed PLHA funding will not be distributed until all other financing is in place.
Funding Allocation Year 2019 2020 2021 2022 2023
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). 210
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Affordable Rental
Housing Activity
25.00% 45.00% 45.00% 70.00% 70.00%
§302(c)(4)(E)(ii) Area Median
Income Level Served 60% 60% 60% 60% 60%
50 40 44
TOTAL
224 §302(c)(4)(E)(ii) Unmet share of
the RHNA at the AMI Level
§302(c)(4)(E)(ii) Projected
Number of Households Served 50 40 40 40 40
50 40
PLHA Page 1 302(c)(4) Plan
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
§302(c)(4)(E)(ii) Projected
Number of Households Served 20 20 30 30
60%
Type of Affordable Housing
Activity
RentalRental
TOTAL
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level 50 40 50
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
At the beginning of every calendar year, the City will solicit proposals for its HUD Funds (CDBG and HOME Investment Partnership) to prepare the Annual Action Plan. Proposals will be evaluated for readiness and then formally rated and ranked. The City will submit funding recommendations to City Council in May in conjunction with HUD recommendations.
In this way, the PLHA funding can be fully leveraged with other City sources. In addition, the City will proactively recruit developers for City sites and will host sessions to highlight these areas. One area the City is looking at for more housing opportunites, and specifically for units that would be more affordable, is along Broadway between downtown and Highway 101. The City is also looking at future housing opportunities for a large parcel on 1st Street close to Highway 101. §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Affordable Rental Housing
Activity (55 years required for
rental housing projects)
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
25.00%
40 44
60% 60% 60%Rental
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Activity
25.00%
224
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity. Percentage of Funds Allocated for Affordable Owner-occupied Workforce Housing
This year the City will partner with the County in submitting an application through the HCD’s Local Housing Trust Fund (LHTF) Program to establish a Regional Housing Trust Fund (RHTF). Once established, the City will allocate 30% of future PLHA funding in the 2nd through 5th year to the RHTF.
Funding Allocation Year 2019 2020 2021 2022 2023
25.00% 0.00% 0.00%
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
55 55 55 55 Rental
100
§302(c)(4)(E)(ii) Area Median
Income Level Served
PLHA Page 2 302(c)(4) Plan
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
The City is in the process of identifying various sites where new Tiny Homes could be placed for temporary or longer term housing for homeless individuals. The City is also in conversations with developers to ensure they preserve a portion of their units for long-term housing for the homeless population.
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Activity
45.00% 25.00% 25.00% 25.00% 25.00%
Funding Allocation Year 2019 2020 2021 2022 2023 Transitional Transitional Transitional §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
TOTAL §302(c)(4)(E)(ii) Area Median
Income Level Served 30%
The City is working with a developer who is asking to place Tiny Homes on a parcel in King City. The City will also continue to coordinate with other organizations to program funding to address homeless service gaps in the City. It is anticipated that most PLHA funding will be used for emergency shelter, and the new construction, rehabilitation, and preservation of permanent and transitional housing, since other funding sources for these categories of work are limited.
The City has committed to participating in the County of Monterey’s Application to HCD for the LHTF in order to establish a RHTF. Prior to application submittal, the City will work with the County and participating jurisdictions to refine the trust fund guidelines, determine administrative support, and establish funding parameters based upon contribution. It is agreed that the Regional Trust Fund will provide loans and/or grants for affordable rental housing targeted to households that are 60% AMI or below. If funding is awarded, the City will work with the County to promote the RHTF as a funding resource for affordable housing. Similar to PLHA development funding, the Regional Housing Trust Fund will be geared toward shovel-ready multi-family affordable rental housing projects. All new units created with these funds will maintain a 55-year affordability period. If the Regional Housing Trust Fund is not established, PLHA funds for this activity will get shifted towards activity one, the development of multi-family and senior affordable housing rental projects. §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. §301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. §302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity. §302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level 0
30% 30% 30%
Type of Activity for Persons
Experiencing or At Risk of
Homelessness
120
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
0 0 0 0
§302(c)(4)(E)(ii) Projected
Number of Households Served 30 30 30 30 Transitional
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
PLHA Page 3 302(c)(4) Plan
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project.
File Name: Plan Adoption
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content.
Attached and on USB?
PLHA Page 4 302(c)(4) Plan
State Senate Member
U.S. House of Representatives
Activity Location 11 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 10 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 9 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 8 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 7 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 6 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 5 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 4 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 3 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 2 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 1 (if different from applicant location) District # First Name Last Name
State Assembly Member
Legislative and Congressional Information Rev. 5/20/20
U.S. House of Representatives 20 Jimmy Panetta
District # First Name Last Name
State Assembly Member 30 Robert Rivas
Provide the Legislative and Congressional information for the applicant and each activity location, (if different than applicant location), included in this application.
To locate or verify the Legislative and Congressional information, click on the respective links below and enter the applicant office location zip code, the activity location site zip code(s) (i.e. zip code(s) where activities are performed), and any additional activity location site(s), as applicable.
Applicant Office Location
State Senate Member 12 Anna Caballero
California State Assembly California State Senate U.S. House of Representatives PLHA Page 1 Legislative Contacts
District # First Name Last Name
State Assembly Member
State Assembly Member
State Senate Member
U.S. House of Representatives
U.S. House of Representatives
State Senate Member
U.S. House of Representatives
U.S. House of Representatives
Activity Location 25 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
State Senate Member
Activity Location 22 (if different from applicant location) District # First Name Last Name
U.S. House of Representatives
Activity Location 24 (if different from applicant location) Activity Location 23 (if different from applicant location) District # First Name Last Name
State Assembly Member
District # First Name Last Name
State Assembly Member
State Senate Member
State Senate Member
U.S. House of Representatives
Activity Location 21 (if different from applicant location) Activity Location 20 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Assembly Member
State Senate Member
U.S. House of Representatives
U.S. House of Representatives
Activity Location 18 (if different from applicant location) District # First Name Last Name
District # First Name Last Name
State Assembly Member
State Senate Member
State Senate Member
U.S. House of Representatives
Activity Location 17 (if different from applicant location) Activity Location 16 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 15 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 14 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 13 (if different from applicant location) District # First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 12 (if different from applicant location) District # First Name Last Name
State Assembly Member
PLHA Page 2 Legislative Contacts
1 RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING AUTHORIZING
REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION
PROGRAM (PLHA)
WHEREAS, the State of California, Department of Housing and Community Development (“HCD”) issued a Notice of Funding Availability (“NOFA”) dated February 26, 2020 under the Permanent Local Housing Allocation (“PLHA”) Program; and WHEREAS, the HCD is authorized to provide up to $195 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code Section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)); and WHEREAS, the City of King (“City”) is an eligible local government that can apply for the PLHA Program to administer one or more eligible activities; and WHEREAS, HCD may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement and other contracts between HCD and PLHA grant recipients; and WHEREAS, the City applied for funding to advance affordable housing development, establish a Regional Housing Trust Fund, and expand homeless services over the next five (5) years; and
WHEREAS, on July 23, 2020 the City Council adopted Resolution No. 2020-4778, which authorized the July 27, 2020 City submittal of a PLHA application in the amount of $134,185 for the first-year allocation to the Department, with a total estimated five (5) year allocation of $805,115; and
WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 2021-4843 amending the PLHA Activities Plan and the State requested another Resolution with the Chart attached be adopted by the City Council; and WHEREAS, on June 14, 2021, the City Council adopted a second Resolution with the PLHA Activities Plan attached as Exhibit 1 and as reflected in the Staff Report, attached as Exhibit 2 and in compliance with the State’s request; and WHEREAS, on June 1, 2022, the City Council public hearing was noticed in the Rustler for public notification, review and consideration, which meets the ten (10) day public review requirement, and attached as Exhibit 3; and Exhibit 3
2 WHEREAS, the City proposes to revise the allocations for each of the three PLHA projects, which includes eliminating funding for the Regional Housing Trust Fund, prioritizing funding for affordable housing projects in early program years, and prioritizing funding for homeless housing projects in later program years; and WHEREAS, the City provided a ten (10) day public notice prior to the City Council Public Hearing on June 14, 2022, and published said public notice in the Rustler on June 1, 2022 and uploaded the notice on the City’s website so that the public had adequate opportunity to review the revised PLHA Plan; and
WHEREAS, on June 14, 2022, the City Council conducted a public hearing, reviewed all relevant information, including the staff report, and accepted public testimony and determined the PLHA applicant should be amended to reflect current conditions; and WHEREAS, the amended PLHA Activities Plan is attached as Exhibit 1.
NOW, THEREFORE, BE IT RESOLVED THAT that the City Council of the City of King does hereby authorize and resolve as follows:
1. The City Manager is authorized to execute the PLHA Program Application with the revised funding allocations, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as HCD may deem appropriate; and
2. The City is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix C of the current Notice of Funding Availability (“NOFA”) in accordance with all applicable rules and laws.
3. The City receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department.
4. The City Council of the City of King represents and certifies that it will use PHLA funds for eligible activities as approved by HCD and in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.
5. The City certifies that it has or may subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), “entity” means a 3 housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation.
6. The City certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest.
7. Pursuant to the City’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements.
8. The City certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A),(B) and (C).
9. The City shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.
10. The City Manager or his/her designee is/are authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate.
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of King at a special meeting thereof held on the 14 day of June, 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST
STEVEN ADAMS, City Clerk
______________________________
Mike LeBarre, Mayor
4 APPROVED AS TO FORM:
__________________________________
Roy Santos, City Attorney
I, ________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.
5 EXHIBIT 1
CITY OF KING HCD PLHA ACTIVITIES
NOTE: Strikethrough text shows items proposed to be deleted. Underlined and italicized text shows proposed changes.
City of King HCD PLHA Proposed Activities (Years 1-5 Allocation) (Years 2-5 funding amounts are estimates)
Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
The predevelopment, development, acquisition,
rehabilitation, and preservation of multifamily,
residential live-work, rental housing that is
affordable to extremely low-, very low-, low-, or
moderate-income households, including necessary
operating subsidies.
25%
95%
45%
95%
45%
50%
70%
0%
70%
0%
Matching portions of funds placed into Local or
Regional Housing Trust Funds.
25%
0%
25%
0%
25%
0%
0%
0%
0%
0%
Assisting persons who are experiencing or at risk
of homelessness, including, but not limited to,
providing rapid rehousing, supportive permanent
housing rental assistance, supportive/case
management services that allow people to obtain
and retain housing, operating and capital costs for
navigation centers and emergency shelters, and
the new construction, rehabilitation, and
preservation of permanent and transitional
housing.
45%
0%
25%
0%
25%
45%
25%
95%
25%
95%
Total 100% 100% 100% 100% 100%
Item No. 10 (B)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
RECOMMENDATION:
It is recommended the City Council adopt a Resolution which authorizes a revised application submittal to the California Department of Housing and Community Development Department (“HCD”) to receive and administer $134,185 in the first year and $805,115 over a 5-year period in Permanent Local Housing Allocation Program (“PLHA”) Grant funds.
BACKGROUND:
On December 14, 2021, the City Council adopted Resolution No. 2021-4843, which amended the funding formula for affordable housing. HCD contacted the City and stated they want the PLHA Plan attached to the Resolution and required another public hearing. On July 23, 2020, the City Council adopted Resolution No. 2020-4778, authorizing the PLHA application submittal to the State.
SB 2 prescribes that revenue collected for the 2019 calendar year be deposited into the Building Homes and Jobs Trust Fund. Seventy percent of the Fund has been made available to HCD to assist local governments in eligible housing-related projects and programs.
On February 26, 2020, HCD published a Notice of Funding Availability (“NOFA”) for the Permanent Local Housing Allocation (“PHLA”) Program allocation. As a non-entitlement jurisdiction, the City of King is being allocated $134,185 for the first year and $805,115 over a 5-year period.
DISCUSSION
In 2017, the Governor signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, it included SB 2, referred to as the “Building Homes and Jobs Act”. SB 2 establishes a permanent, ongoing source of funding dedicated to promoting and facilitating affordable housing development. SB 2 funding is secured through a fee that is imposed at the time of recording of every real estate instrument, paper or notice for each single real estate transaction on a parcel of property. The recording EXHIBIT 2
to RESO
CITY COUNCIL
CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
JUNE 14, 2022
PAGE 2 OF 4
fees range from $75 to $225 depending upon the nature and scope of the property transaction.
Sales transactions for single-family homes are exempt from this fee. Approximately $195 million in statewide revenue has been earmarked for local government affordable housing grants as a result of this fee.
Staff recommends funding be used for two activities. Two initial projects the City has made preliminary funding commitments to include the permanent supportive housing project and the CHISPA Mills Ranch affordable housing units. The proposed revised allocations are shown in Table 1.
Table 1
NOTE: Strikethrough text shows items proposed to be deleted. Underlined and italicized text shows proposed changes.
As required by HCD, the City provided a 10 days of notice prior to the public hearing so that the public had adequate opportunity to review the PLHA Plan. The City published the public hearing notice in the Rustler on June 1, 2022 and uploaded the public notice on the City’s website.
City of King HCD PLHA Proposed Activities (Years 1-5 Allocation) (Years 2-5 funding amounts are estimates)
Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
The predevelopment, development, acquisition,
rehabilitation, and preservation of multifamily,
residential live-work, rental housing that is
affordable to extremely low-, very low-, low-, or
moderate-income households, including necessary
operating subsidies.
25%
95%
45%
95%
45%
50%
70%
0%
70%
0%
Matching portions of funds placed into Local or
Regional Housing Trust Funds.
25%
0%
25%
0%
25%
0%
0%
0%
0%
0%
Assisting persons who are experiencing or at risk
of homelessness, including, but not limited to,
providing rapid rehousing, supportive permanent
housing rental assistance, supportive/case
management services that allow people to obtain
and retain housing, operating and capital costs for
navigation centers and emergency shelters, and
the new construction, rehabilitation, and
preservation of permanent and transitional
housing.
45%
0%
25%
0%
25%
45%
25%
95%
25%
95%
Total 100% 100% 100% 100% 100%
CITY COUNCIL
CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
JUNE 14, 2022
PAGE 3 OF 4
COST ANALYSIS:
There is no General Fund impact associated with this agenda item. PLHA does not require a local financial commitment or “match” from local jurisdictions requesting grant funds.
Table 2 identifies the funding available for the first-year allocation.
Table 2
City of King PLHA Proposed Budget (Year 1 Allocation)
Description Amount
Administration (5%) $6,710
Activity Funds $127,475
Total $134,185
ENVIRONMENTAL REVIEW:
The City of King has determined that the proposed action is not a project as defined by the California Environmental Quality Act (“CEQA”) per Guidelines Section 15378. CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
ALTERNATIVES:
1. Adopt the attached Resolution.
2. Modify the funding distribution and adopt the Resolution.
3. Do not adopt the attached Resolution and take no action.
4. Provide alternate direction.
Exhibits:
1. December 14, 2021 City Council Staff Report
2. PLHA Application
3. PLHA Resolution with City of King PLHA Proposed PLHA Plan
CITY COUNCIL
CONSIDERATION OF REVISED ALLOCATIONS FOR THE PERMANENT LOCAL HOUSING ALLOCATION (“PHLA”) GRANT PROGRAM
JUNE 14, 2022
PAGE 4 OF 4
Submitted by: _____________________________________________ Doreen Liberto, AICP, Community Development Director
Approved by: _____________________________________
Steven Adams, City Manager
PUBLIC HEARING NOTICE
CITY OF KING
CITY COUNCIL MEETING
NOTICE OF PUBLIC HEARING TO CONSIDER A RESOLUTION REVISING AN
APPLICATION AND FUNDING ALLOCATION FOR AND RECEIPT OF PERMANENT
LOCAL HOUSING ALLOCATION (PLHA) GRANT PROGRAM FUNDS
NOTICE IS HEREBY GIVEN that a Public Hearing will be conducted at which time the City Council will reconfirm revisions to the 2020 Permanent Local Housing Allocation (“PLHA”) Grants Program Application. The City Council approved the below changes in December of 2021; however, the State is requiring they reconfirm these changes due to the PLHA Plan being omitted as an exhibit to the Resolution. The application includes a plan of how the Housing and Community Development Department (“HCD”) PLHA funds will be allocated. The PLHA Grant Program is funded by SB-2, referred to as the “Building Homes and Jobs Act”, which established a permanent, on-going source of funding dedicated to promoting and facilitating affordable housing development.
NOTE: Strikethrough text shows items proposed to be deleted. Underlined and italicized text shows proposed changes.
The City is eligible to receive up to $134,185 in funding for the first program year, and an estimated $805,115 over the next five (5) years. The City proposes to allocate funds for City of King HCD PLHA Proposed Activities (Years 1-5 Allocation) (Years 2-5 funding amounts are estimates)
Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary
operating subsidies.
25%
95%
45%
95%
45%
50%
70%
0%
70%
0%
Matching portions of funds placed into Local or Regional Housing Trust Funds.
25%
0%
25%
0%
25%
0%
0%
0%
0%
0%
Assisting persons who are experiencing or at risk of
homelessness, including, but not limited to, providing rapid rehousing, supportive permanent housing rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new
construction, rehabilitation, and preservation of permanent and transitional housing.
45%
0%
25%
0%
25%
45%
25%
95%
25%
95%
Total 100% 100% 100% 100% 100%
EXHIBIT 3
the development of affordable multi-family housing, and for projects that provide permanent supportive housing. The Regional Housing Trust Fund has not yet been established and there is no clear timeline for its establishment; therefore, the City is revising this allocation to 0%.
CITY COUNCIL:
DATE: June 14, 2022
TIME: 6:00 PM
PLACE: CITY HALL, 212 S. VANDERHURST AVE., KING CITY, CA ANY AND ALL INTERESTED PERSONS ARE HEREBY invited to attend these public hearings for the purpose of being heard thereon. After presentations of the item by staff and questions by the hearing bodies, the public hearings will be opened for the public's presentation of oral and written testimony on both the environmental document and the proposed project applications. In addition to any oral comments, you are encouraged to submit your comments in writing at the meeting. After the public hearing is closed, the hearing body may deliberate and take action on the matter. If anyone challenges the nature of the proposed actions in court, they may be limited to challenging only those issues which have been raised at the public hearing described in this notice, be it either by written correspondence submitted to or at the meeting or public testimony at the meeting. Copies of the Project Application Package are available for public review at the King City Community Development Department, 212 S. Vanderhurst Avenue. For more information, please contact Maricruz Aguilar, Planner at (831) 385-3281.
Item No. 10(C)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF KING, CALIFORNIA, SUBMITTING TO THE
VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE
CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION
HELD ON TUESDAY, NOVEMBER 8, 2022, A QUESTION AND
AN ORDINANCE RELATING TO INCREASING AND EXTENDING
THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
RECOMMENDATION:
It is recommended the City Council waive reading of title of Resolution No. 2022- 4882 and Ordinance No.2022-810 and adopt a Resolution submitting to City voters at the next regular election to be held on November 8, 2022 a ballot measure to adopt an Ordinance approving an increase and extension of the sales tax to 1.5% for 10 years and approval of the Ordinance attached thereto which will also be submitted to the voters.
BACKGROUND:
At the November 4, 2014 General Election, King City voters approved establishing a 1/2 cent local sales tax by 63.15%, which took effect April 1, 2015.
This was increased to 1% at the November 6 election, which was approved by 56%. It included a 10-year sunset clause, which means it will need to be placed on the ballot again by 2028 to be extended or will expire March 30, 2029. The measure included formation of a budget advisory committee, which has been meeting annually to review budget recommendations prior to presenting them to the City Council.
An advisory measure was also placed on the ballot and approved, which specified that if the measure passed, voters supported the funds to be used for the following purposes:
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022,
QUESTIONS AND AN ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
JUNE 14, 2022
PAGE 2 OF 8
• Maintain existing services;
• Pay off General Fund debt and establish a financial reserve; • Fund public safety staffing, services and projects designed to eliminate youth violence;
• Fund improvements to street and sidewalk infrastructure; and • Fund downtown public improvements and other economic development efforts designed to increase businesses, jobs and visitors to King City In the short time since the measure passed, the City has made significant progress in these areas.
At the June 8, 2021 meeting, the City Council adopted the Biennial Budget for FY 2021-22/FY 2022-23. The budget included an update to the City’s Long-Range Financial Plan. Two scenarios were presented. The first was the base plan with 10-year projections of existing revenues and expenditures. The second was the deferred maintenance plan, which included projections of expenditures and revenues to address unfunded needs.
The deferred maintenance plan included a recommendation to fund the additional expenditures through a .5% local sales tax measure. It was proposed to obtain additional public feedback and then present the specific recommendations for consideration prior to the deadline for submitting ballot measures. Staff has provided public information regarding the local sales tax measure through a newsletter article, article in the Rustler, social media, the City’s website, the State of the City Address, the City’s Budget Committee, and community groups. Thus far, the feedback has been minimal and primarily either neutral or supportive.
At the April 26th meeting, staff presented a summary of funding needs and strategies, which primarily includes the recommendation for the additional sales tax increase. The Council directed staff to proceed at that time.
DISCUSSION:
The City’s overall financial condition has improved significantly. The budget for next year is balanced, funding of the City’s basic service levels has been stabilized, and substantial progress has been made on major priorities.
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022,
QUESTIONS AND AN ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
JUNE 14, 2022
PAGE 3 OF 8
However, important needs remain that are unfunded. The sales tax measure is being recommended as the preferred funding strategy due to a few key advantages. First, it will generate about the funding amount required to address the needs identified. Second, it is a good revenue option because a large portion is paid by people from outside the community. Third, most of the cities in this area currently have sales tax rates higher than King City. As a result, King City will be able to maintain a competitive tax rate even after implementing the increase.
Below is a survey of current local sales tax rates of all cities in Monterey, San Luis Obispo and Santa Cruz counties:
• Greenfield 1.75%
• Atascadero 1.50%
• Carmel 1.50%
• Del Rey Oaks 1.50%
• Grover Beach 1.50%
• Marina 1.50%
• Monterey 1.50%
• Morro Bay 1.50%
• Pacific Grove 1.50%
• Paso Robles 1.50%
• Salinas 1.50%
• San Luis Obispo 1.50%
• Seaside 1.50%
• Soledad 1.50%
• Arroyo Grande 1.00% (proposed 2022 tax measure)
• Gonzales 1.00% (proposed 2022 tax measure)
• Pismo Beach 1.00%
• Sand City 1.00%
• King City 1.00%
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022,
QUESTIONS AND AN ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
JUNE 14, 2022
PAGE 4 OF 8
The following are needs identified that staff believe are urgent and remain unfunded:
Deferred Maintenance of City Facilities
One of the unique things that makes King City special is all the amenities the City provides for such a small community, such as the golf course, pool, rec center, and Airport. However, due to the length of the financial crisis the City has experienced, there is a tremendous amount of repairs and upgrades that have been deferred for a long time. Staff recently prepared an assessment of the most pressing items, which resulted in a list estimated to cost approximately $2 million.
Some of the highest priority items include remodel and termite damage repair of the Recreation Center, resurfacing the pools, resurfacing the tennis courts, and replacement of the well at the City Park/Golf Course. Given the current improvements to the ongoing General Fund balance, staff recommends the City begin to address some of these items in FY 2022-23. However, additional revenue will be needed to address everything necessary in a timely manner. It is recommended the City budget an additional $200,000 annually.
Street Improvements
The City has increased its street improvements with TAMC Measure X and State Gas Tax funds. However, additional funding is needed in order to improve the City’s streets to an appropriate condition within a timely manner. There are a number of streets in poor condition that the City receives frequent complaints about. It is recommended that the City increase street improvement funding by $300,000 annually to accelerate these and other projects.
ADA Deficiencies
The City recently contracted with a professional firm to prepare a citywide ADA Assessment Plan as required by law. It identified close to $2 million in improvements needed. The City can address these deficiencies gradually over time, but it is important for the City to demonstrate progress is being made to
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022,
QUESTIONS AND AN ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
JUNE 14, 2022
PAGE 5 OF 8
reduce liability and address this important need. It is recommended the City budget $75,000 annually for access improvements.
Public Safety
The City has made a major investment in implementing the Comprehensive Plan to End Youth Violence, which has resulted in a substantial reduction in violence in the community. However, the City has unfortunately experienced an increase in violent crimes again during the past year. Staff believes it is important to continue to invest in improvements to public safety and crime prevention programs in order to combat efforts by gangs to recruit new members and increase their activity. Staff recommends increasing staffing to establish a gang unit within the Investigations Section. The Police Department is also working on a number of public outreach and crime prevention activities. It is recommended an additional $190,000 be allocated annually for public safety improvements.
Parks and Landscaping Maintenance
The City has been concentrating efforts on improving its sports fields, which has resulted in renovations at every park. However, the Public Works Department staffing levels are not sufficient to properly maintain the City’s parks and facilities on an ongoing basis. The most significant concern is that there will be two large parks added in the Mills Ranch development within the next several years. In addition, the Downtown Plaza project, the streetscape project, and King City in Bloom projects are expanding landscaping in the downtown and other areas. It is important to have a plan in place to be able to maintain these areas effectively to protect this investment. It is estimated that the cost of increased maintenance needs will be approximately $190,000 annually.
Expansion of Recreation Programming
Staff is recommending one change to the list of items proposed, which is expansion of the City’s recreation programming. This is important to provide activities to promote health and wellness consistent with the Blue Zones project, to invest in youth activities consistent with recommendations of the Comprehensive Plan to End Youth Violence, and to help sustain existing services. Most recreation departments have a position dedicated to managing sports programs, which is proposed in the future. These programs are time
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022,
QUESTIONS AND AN ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
JUNE 14, 2022
PAGE 6 OF 8
consuming, so it is challenging to provide the variety of services offered with only one full-time staff, particular since the City operates a large pool complex.
Therefore, this position would help to both maintain current operations and pursue new programming opportunities.
Contingency and Discretionary Funding
Staff believes it is important to create the ability to budget contingency and discretionary funds each year in order to maintain long-term financial stability and to ensure the City keeps moving forward. Staff recommends the City plan for $200,000 annually for unanticipated expenses, new improvements identified, and other cost increases that will likely occur.
Sales Tax Measure
While staff is presenting recommendations for the purpose of the funds, it is important to note that the funding would be part of the General Fund and not legally restricted for any specific purpose. Staff has structured the recommended ballot language to be similar to the last measure, including the same 10-year sunset period extension and requirement for a budget advisory committee.
Presented for City Council consideration is a Resolution approving the measure to be placed on the ballot and an Ordinance establishing the local sales tax amount, which would be adopted if approved by the voters.
The primary change from 2018 is that staff recommends against including another advisory measure due to a State ballot initiative being circulated for signatures called the Taxpayer Protection and Government Accountability Act. If approved, it would establish new restrictions on local tax measures, including a ban on advisory measures. Sponsors did not obtain the signatures needed for the November 2022 ballot, so their current goal is to qualify it for the November 2024 election. The difficulty is that the terms would be retroactive to January 2022 based on the proposed language of the measure. Therefore, staff recommends the City’s sales tax measure be drafted to be compliant with the State initiative in case it is approved to ensure it does not impact the validity of the City’s measure in the future.
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022,
QUESTIONS AND AN ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND EXPENDITURES
THEREFROM
JUNE 14, 2022
PAGE 7 OF 8
The proposed language of the question for the ballot for the sales tax measure is as follows:
Shall the measure increasing the City of King’s current one percent sales tax to one and one-half percent to generate an estimated increase of $1,200,000 annually for general revenue purposes, such as public safety, street improvements, maintenance of City parks and facilities, recreation programs and establishing an emergency reserve subject to citizen oversight, an annual audit, and expiration of the entire tax in 10 years be adopted? The questions are limited to a maximum of 75 words. The sales tax question is required to include an estimate of the projected revenue and when it will expire.
The Resolution has been reviewed by the County Elections Office to determine it meets the legal requirements. If approved by City Council, staff will prepare a recommended ballot argument in favor of the measure for City Council consideration at the July 12th meeting.
COST ANALYSIS:
The annual funding needs identified above are summarized below:
Deferred Maintenance of City Facilities $200,000
Street Improvements $300,000
ADA Deficiencies $75,000
Public Safety $190,000
Parks and Landscaping $190,000
Recreation Sports Staffing $70,000
Contingency and Discretionary Funding $175,000
Total $1,200,000
Staff estimates the sales tax increase would generate roughly $1.2 million annually. Therefore, it would be sufficient to address these revenue needs. It is recommended that up to $10,000 be expended for distribution of public information materials.
01222.0007/474410.6 1
RESOLUTION NO. ___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
KING, CALIFORNIA, SUBMITTING TO THE VOTERS AT
THE GENERAL MUNICIPAL ELECTION TO BE
CONSOLIDATED WITH THE STATEWIDE GENERAL
ELECTION HELD ON TUESDAY, NOVEMBER 8, 2022, AN
ORDINANCE RELATING TO INCREASING AND
EXTENDING THE TRANSACTION AND USE TAX AND
EXPENDITURES THEREFROM
WHEREAS, the City Council of the City of King ("City") previously submitted to the voters a measure introducing a Transactions and Use Tax ("Sales Tax") of one-half of one percent (.50%) on the sale of all tangible personal property sold at retail and or used at retail in the City (collectively “Sale”); and
WHEREAS, the voters approved of the measure and the Sales Tax ordinance was set forth in Chapter 3.22 of the King Municipal Code; and WHEREAS, in November 2018, the City previously submitted to the voters a measure increasing the Sales Tax to one percent on the Sale and extending the duration of the Sales Tax to April 1, 2029; and
WHEREAS, in order to further augment the City’s finances and to fund public safety, street improvements, maintenance of City parks and facilities, recreation programs and establish an emergency reserve, among other general revenue purposes, the City desires to increase the Sales Tax to one and one half percent (1.50%) on the Sale and extend the duration to April 1, 2034 and/or ten years after the operative date; and
WHEREAS, the City Council hereby approves of adding an additional one-half of one percent (.50%) Sales Tax and extending the current one percent (1.00%) Sales Tax for a total transactions and use tax of one and one-half percent (1.50%)(collectively, the “Amended Sales Tax”) until April 1, 2034 or applicable date, subject to the approval of a majority of the qualified voters at the next regularly scheduled general election; and WHEREAS, the City Council has passed Resolution No. 2022-4878 on June 14, 2022, calling a general municipal election for the purpose of electing two (2) members of the City Council, and requesting that the general municipal election be consolidated with the Statewide general election to be held on Tuesday, November 8, 2022, and requesting that the Board of Supervisors of the County of Monterey direct the Registrar of Voters/ Election Department to take any and all necessary steps to conduct the consolidated election; and under the provisions of the laws relating to cities in the State of California, a General Municipal Election shall be held on November 8, 2022, for the election of Municipal Officers; and
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district, city or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the 01222.0007/474410.6 2
question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation; and
WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and
WHEREAS, various district, county, state and other political subdivision elections may be or have been called to be held on November 8, 2022; and WHEREAS, the City Council also desires to consolidate the Amended Sales Tax ballot measure with the Statewide general election to be held on November 8, 2022; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KING DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. That the Recitals hereto are true and correct and incorporated herein by this reference.
Section 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election to be held and consolidated with the Statewide general election on Tuesday, November 8, 2022, the following question (“Measure”):
MEASURE
Shall the measure increasing the City of King’s current one percent local sales tax to one and one-half percent to generate an estimated increase of $1,200,000
annually for general revenue purposes, such as public
safety, street improvements, maintenance of City parks
and facilities, recreation programs and establishing an emergency reserve subject to citizen oversight, an
annual audit, and expiration of the entire tax in 10 years be adopted?
YES
NO
Section 3. That the proposed complete text of the Ordinance related to the City Measure submitted to the voters is attached hereto as Exhibit A and is hereby approved and adopted and by this reference incorporated herein.
01222.0007/474410.6 3
Section 4. That the Board of Supervisors of the County of Monterey is hereby requested to consent and agree to the consolidation of the election on these ballot measures and the City’s general municipal elections for councilmembers with the Statewide general election to be held on November 8, 2022, and to direct the Monterey County Registrar of Voters/Election Official to take any and all necessary steps to conduct the consolidated election.
Section 5. That the Election Department of the County of Monterey and Board of Supervisors/Registrar of Voters is authorized to canvass the returns of the election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.
Section 6. That the City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for its share of the costs.
Section 7. That the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election in accordance with the Elections Code and the laws of the state of California.
Section 8. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and Election Department of the County of Monterey.
Section 9. . That the deadline for filing arguments on the ballot measures with the City Clerk of the City shall be 5 p.m. on August 18, 2022 or such other date as may be determined by the City Clerk in accordance with the Elections Code. That in accordance with the requirements of Division 9, Chapter 3, Article 4 of the California Elections Code, all written arguments for or against the foregoing measures: (1) shall not exceed three hundred (300) words in length; (2) shall be filed with the City’s elections official; (3) shall be accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of the principal officers who is the author of the argument; and (4) shall be accompanied by the Form of Statement to be Filed by Author(s) of Argument as provided for in California Elections Code § 9600. All written arguments may be changed or withdrawn until and including the date fixed by the City’s elections official, being 5:00 p.m. on August 18, 2022 or such other date as may be determined by the City Clerk in accordance with the Elections Code, after which time no arguments for or against the foregoing measure may be submitted to the elections official except as provided above. Pursuant to Elections Code 9285, the City Council is authorized file a written argument.
That in the event that more than one argument for or against any of the foregoing measures is timely submitted, the City’s elections official shall give preference and priority first, to arguments submitted by member(s) of the City Council, as authorized by this Resolution, and second, to individual voters, bona fide associations, or a combination thereof, in the order set forth at California Elections Code § 9287. 01222.0007/474410.6 4
Section 10. That the deadline for filing of rebuttal arguments on the ballot measures with the City Clerk shall be at 5 p.m. on August 25, 2022 or such other date as may be determined by the City Clerk in accordance with the Elections Code. Rebuttals shall not exceed 250 words in length. The rebuttal arguments shall be accompanied by the Form of Statement to be Filed by Author(s) of Argument as provided for in California Elections Code § 9600. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
Section 11. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.
Section 12. That, pursuant to Elections Code Section 9280, the City Clerk .is hereby directed to transmit a copy of the measures to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measures on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by 5 p.m. on August 18, 2022 or such other date as may be determined by the City Clerk in accordance with the Elections Code.
The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the city. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-point bold type, a legend substantially as follows:
“The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the elections official's office/city clerk at (831) 386-5971and a copy will be mailed at no cost to you.” Section 13. That City Council of King hereby orders an election be called and consolidated with any and all elections also called to be held on November 8, 2022 insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the requests the Board of Supervisors of the County of Monterey to order such consolidation under Elections Code Section 10401 and 10403.
Section 14. That the City Council hereby requests the Board of Supervisors to permit the Monterey County Elections Department to provide any and all services necessary for conducting the election and agrees to pay for said services.
Section 15. That the Monterey County Elections Department shall conduct the election for the measure delineated in Section 2 and to be voted on at the election on November 8, 2022.
Section 16. The Elections Departments of Monterey County is hereby requested not to print the attached full measure text of Exhibit A hereto in the Voter Guide, but send a copy to voters upon request at the cost of the City. The contact number to be printed in the Voter Guide is (831) 386-5971 (EC §§ 9160, 9312, 9280).
In addition, the full text will be available at the following web site address:
http://www.kingcity.com.
01222.0007/474410.6 5
Section 17. The voter approval requirement for the measure is a majority.
Section 18. The adoption of this Resolution is exempt from the California Environmental Quality Act, Public Resources Code §§ 21000 et seq. (“CEQA”) and 14 Cal. Code Reg. §§ 15000 et seq. (“CEQA Guidelines”). The calling and noticing of a General Municipal Election for the submission of a ballot measure to voters is not a project within the meaning of CEQA Guidelines Section 15378. The transactions and use tax submitted to the voters is a general tax that can be used for any governmental purpose; it is not a commitment to any particular action or actions. As such, under CEQA Guidelines Section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.
Section 19. That the City Clerk and City Manager are hereby authorized to take all actions as necessary to effectuate the purposes of this resolution and the election.
Section 20. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of King at a regular meeting thereof held on the ___day of June, 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST
STEVEN ADAMS, City Clerk
CITY OF KING
By:
MIKE LEBARRE, Mayor
01222.0007/474410.6 6
APPROVED AS TO FORM:
By:
ROY C. SANTOS, City Attorney
Aleshire & Wynder, LLP
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.
01222.0007/474410.6 A-1
Exhibit A to Resolution No. ___
(Full Text of Ordinance Amendment)
1 ORDINANCE NO. 2022-810
AN ORDINANCE OF THE CITY OF KING AND THE VOTERS OF THE
CITY OF KING AMENDING CHAPTER 3.22 OF THE KING CITY
MUNICIPAL CODE INCREASING AND EXTENDING THE
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
THE CITY COUNCIL OF THE CITY OF KING AND THE PEOPLE OF THE CITY OF KING, DO ORDAIN AS FOLLOWS:
SECTION 1. FINDINGS
A. Pursuant to California Revenue and Taxation Code Sections 7285.9 and 7290, the City of King (the "City") has the authority to levy a Transactions and Use Tax for unrestricted general revenue purposes.
B. A majority of the voters of the City approved a one-half of one percent (0.50%) Transactions and Use Tax measure at an election held in November 6, 2014, with a sunset date of September 30, 2021.
C. A majority of the voters of the City approved extending to March 31, 2029, and increasing to one percent (1.00%) the Transaction and Use Tax measure at an election held in November 6, 2018.
D. The City's Transactions and Use Tax Ordinance is found in Chapter 3.22 of the King Municipal Code.
E. Pursuant to Ordinance 706, adopted by the City Council on April 25, 2014 and the voters on November 4, 2014 and Ordinance No. 762 approved by the City Council on November 6, 2018 and the voters on November 6, 2018, the termination date of the Transactions and Use Tax is March 31, 2029.
F. The Transaction and Use Tax was approved by the voters to assist in raising revenue to provide essential city services, including but not limited to public safety; street and sidewalk maintenance; pothole repair; parks and recreation programs and facilities; and many other essential city services.
G. The City has desires to raise revenue by transmitting this measure to the voters in its effort to raise revenue for general revenue purposes, such as public safety and other essential services, street repairs, economic development efforts, and improving the City’s overall financial solvency.
H. An increase in the Transactions and Use Tax is desired in order to generate revenue to achieve the goals in subparagraph F and G, including but not limited to funding public safety, services, projects designed to eliminate youth violence, fund improvements 2 to streets and sidewalks, the downtown area and other infrastructure and other economic development efforts to increase businesses, jobs and visitors to the City.
I. Extending and increasing the Transactions and Use Tax will assist in provided the services of our residents, businesses and the City.
J. The extension would provide for the implementation of the tax until March 31, 2033 or ten (10) years from the operative date, and would increase the tax to one percent (1.50%) from April 1, 2023.
K. Revenues from the amended Transaction and Use Tax shall be used for unrestricted general revenue purposes and be deposited in the general fund.
SECTION 2. THE PROVISIONS OF CHAPTER 3.22 OF THE KING MUNICIPAL CODE
SHALL BE DELETED IN THEIR ENTIRELY, AND IN ITS PLACE, THE FOLLOWING PROVISIONS SHALL BE ENACTED AS CHAPTER 3.22.
3.22.010. TITLE.
This ordinance shall be known as the Transactions and Use Tax Ordinance of the City of King. The City of King hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.
3.22.030. OPERATIVE DATE.
The transactions and use tax imposed herein shall be operative the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance. “Operative Date” with respect to the one-half percent (0.50%) transaction and use tax adopted pursuant to Ordinance No. 706, means April 1, 2014. “Operative Date” with respect to the one percent (1.00%) transaction and use tax proposed under Ordinance No. 2018-762 means April 1, 2019 unless another date is required by law. Operative Date with respect to the one and onehalf percent (1.50%) proposed under Ordinance No. 2022-810 shall mean April 1, 2023.”
3.22.030. PURPOSE.
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
3 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
3.22.040. CONTRACT WITH STATE.
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.22.050. TRANSACTIONS TAX RATE.
For the privilege of selling tangible personal property at retail, commencing:
(a) the Operative Date of Ordinance No. 706 to the Operative Date of Ordinance No. 2018-762, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-half percent (0.50%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the Operative Date of Ordinance No. 706, (b) the Operative Date of Ordinance No. 2018-762 through March 31, 2029, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1.00%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the Operative Date, and (c) the Operative Date of Ordinance No. 2022-810 through March 31, 2033, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one and one-half percent (1.50%) of the gross receipts of any retailer from the 4 sale of all tangible personal property sold at retail in the City on and after the Operative Date.
3.22.060. PLACE OF SALE.
For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.22.070. USE TAX RATE.
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer commencing: (a) on and after the Operative Date of Ordinance No. 706 to March 31, 2019 for storage, use or other consumption in said territory at the rate of one-half percent (0.50%) of the sales price of the property, (b) on or after the Operative Date of Ordinance No 762 through March 31, 2029 for storage, use or other consumption in said territory at the rate of one and one half percent (1.50%) of the sales price of the property and (c) on or after the Operative Date of Ordinance No. 2022-810 through March 31, 2033 for storage, use or other consumption in said territory at the rate of one and one half percent (1.50%) of the sales price of the property.The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
3.22.080. ADOPTION OF PROVISIONS OF STATE LAW.
Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
3.22.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
5 A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.22.100. PERMIT NOT REQUIRED.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.
6 3.22.110. EXEMPTIONS AND EXCLUSIONS.
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division
3.5 (commencing with Section 9840) of the Vehicle Code by registration to an outof-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the 7 contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government.
This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or 8 undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.22.120. AMENDMENTS.
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.22.130. ENJOINING COLLECTION FORBIDDEN.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected
3.22.140. SEMI-ANNUAL REPORT TO COUNCIL.
.
The city manager shall report to council not less frequently than semiannually on the amount of tax collected under this chapter, and any expenditures made, or proposed to be made with such collections.
3.22.150. OVERSIGHT COMMITTEE.
Following the operative date, the city shall establish a community oversight advisory committee, which may be its budget advisory committee or a separate committee. The committee shall be charged with making recommendations with respect to expenditures of the sales tax as part of the overall annual budget process. The recommendations of the committee shall be presented to the city council but shall not be binding on the city council.
9 3.22.160. REVENUE EXPENDED FOR UNRESTRICTED PURPOSES.
Revenues from the transaction and use tax enacted under this chapter shall be expended by the city for unrestricted general revenue purposes.
3.22.170. OUT-OF-STATE RETAILERS COLLECTING SALES AND USE TAXES.
For the purposes of Chapter 3.22, incorporating provisions of state law, including, but not limited to, Revenue and Taxation Code Sections 6203 and 7262, it is the city of King’s intent that the decision of the United States Supreme Court in South Dakota v. Wayfair, Inc., et al., decided June 20, 2018, be given its full force and effect in requiring out-of-state retailers (and their agents and collectors) with virtual and economic interests in the state, including the city, be required to collect and remit the transactions and use tax. For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter by out-of-state retailers and others, “substantial nexus” shall be construed broadly in favor of the imposition; collection and/or remittance of the transaction and use to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment.” SECTION 3. USE OF TAX PROCEEDS.
All proceeds of the taxes levied and imposed hereunder shall be accounted for and paid into the City of King General Fund, and may be used for any lawful purpose as designated by the City Council.
SECTION 4. EFFECT OF AMENDMENT TO MUNICIPAL CODE CHAPTER 3.22 Except as amended hereby, all provisions Chapter 3.22 of the King City Municipal Code remain in full force and effect and are incorporated herein by this reference. All said provisions shall apply to the increased and extend Transactions and Use Tax.
SECTION 5. SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 6. STATUTORY AUTHORITY FOR TAX.
This ordinance is adopted pursuant to Revenue and Taxation Code section 7285.9. 10 SECTION 7. ELECTION REQUIRED.
This ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the general municipal election to be held on November 8, 2022.
SECTION 8. EFFECTIVE DATE AND TERMINATION DATE.
If this ordinance is approved by a majority of the electors voting on the issue at the November 8, 2022 general municipal election, pursuant to Elections Code Section 9217, the ordinance shall become effective ten (10) days after the City Council accepts the certified results of the election.
Approved at a regular meeting of the City Council held this ___ th day of ___, 2022,
on motion of Councilmember________ ___, seconded by Councilmember _______________, and on the following roll call vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of King, California voting on the 8th day of November, 2022.
ATTEST:
________________________________ ______________________________ Steven Adams, City Clerk Mike LeBarre, Mayor
APPROVED AS TO FORM:
_________________________________
Roy Santos, City Attorney
11 I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of King, California voting on the _8_th day of November, 2022.
ATTEST:
________________________________
Steven Adams, City Clerk
Item No. 11 (A)
STAFF REPORT
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OCTAVIO HURTADO, CITY ENGINEER
RE: CONSIDERATION OF BUS STOP INFRASTRUCTURE
IMPROVEMENTS FOR THE KING CITY FIXED ROUTE
CIRCULAR PROJECT, INCLUDING ADOPTING FINDING OF A
CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301
OF THE CEQA GUIDELINES
RECOMMENDATION:
It is recommended City Council: 1) receive a presentation on proposed bus stops for the proposed new Monterey Salinas Transit (MST) King City fixed bus route; 2) award the bid for bus stop infrastructure improvements to Alfredo’s Concrete in the amount of $29,972.40; 3) authorize the City Manager to approve change orders up to 15 percent; 4) approve a reimbursement agreement between MST and the City of King; and 5) adopt a finding of a categorical exemption, pursuant to Section 15301 of the CEQA Guidelines.
BACKGROUND:
MST conducted a Salinas Valley Express Transit Corridor Planning Study in May 2019 with emphasis on reducing Line 23 Salinas - King City travel times through the Salinas Valley. City staff participated in the planning process to convert existing transit service from a demand response on-call service to a fixed-route circular system with regularly scheduled service stopping at existing and new stops. Both MST and the City desire to implement transit stop improvements in support of the King City fixed-route transit service which requires construction and/or alteration of sidewalks in the public right-of-way. MST and staff have agreed that it is preferable for the City to lead construction work associated with new bus stops and enter into a reimbursement agreement for the construction and project management costs.
CITY COUNCIL
CONSIDERATION OF BUS STOP INFRASTRUCTURE IMPROVEMENTS FOR
THE KING CITY FIXED ROUTE CIRCULAR PROJECT, INCLUDING
ADOPTING FINDING OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE CEQA GUIDELINES
JUNE 14, 2022
PAGE 2 OF 3
Improvement Plans and Specifications were put out to bid for the bus stop infrastructure Improvements for King City Fixed Route Circular Project based on the scope of work provided by MST. The project consists of pouring sidewalk between the curb and gutter and the sidewalk at various MST bus stop locations.
The project also includes restricting parking and painting red curbs. All work is to be per the MST Designing for Transit Guidelines (2020).
DISCUSSION:
MST will be available to make a presentation to Council on this project.
The new proposed stops and bus route Line 34 will generally circle around the City using Broadway Street, Mildred Avenue, San Antonio Drive, North Third Street, First Street, Division Street, Canal Street and River Drive. Line 23 coming from Salinas will get off on Canal Street make a right on Broadway Street to Third Street then make its way back to Canal Street US 101 Northbound onramp.
A map of the proposed route and new stops is attached as Exhibit 3. The stops have been located and designed in residential areas to minimize the impact on residents. Attempts were made to place stops where they are not immediately in front of an existing residence. Residents of properties adjacent to the proposed stops were also notified of the agenda item.
MST is recommending Council approve the attached Reimbursement Agreement to administer the project. The City of King will be the awarding body and will be responsible for making payment to the contractor. The City will invoice MST for all costs related to the project.
The City received the following bids:
Contractor Base bid
Alfredo’s Concrete $ 29,972.40
MPE $105,230.00
COST ANALYSIS:
The City will be entering into a reimbursement agreement with MST. MST will be funding the project, including project management expenses. Therefore, there will be no financial impact to the City.
Exhibit 1
Scope of Work – City of King City
Client and Project Information
Name of
Client/Organization
Monterey-Salinas Transit (MST)
19 Upper Ragsdale Drive, Suite 200
Monterey, CA 93940
Project Contact Details
Name of Contact Person Role Phone Email
Sloan Campi Planning
Manager
(831) 264-5881 [email protected]
Paul Lopez Facilities
Maintenance
Supervisor
(831) 264-9438 [email protected]
Project Information
Name of
Project
Bus Stop Infrastructure Improvements for King City fixed route Circulator (Line 34)
Project
Location
Various bus stops throughout city (see description)
Project
Description
MST has approved a Plan to create new routes and services throughout South Monterey County Cities. This project will facilitate the construction of new bus stops consistent with MST’s Designing for Transit Guidelines (2020). Details on work on bus stops to be added are included in the table below.
Contract
Process
1. MST develops Scope of Work for approval by City’s Public Works Department and City Manager
2. City develops cost estimate for all improvements herein
3. MST receives cost estimate for improvements to develop a contract for work to be performed.
4. MST will develop a contract with City to perform work on MST’s behalf and at MST’s expense
5. City will choose whether to perform work using internal staff or contracted staff.
6. Work is executed by city.
Approvals
Needed
• [Pre-requisite City Permit and Commission Approvals]
• City Council approval of Contract
Exhibit 2
Locations and work to be performed
Work to be performed will vary based on existing conditions and type of bus stop recommended. The bus stop types are to be installed consistent with the bus stop types in the MST Designing for Transit Guidelines (2020). To best facilitate complete service planning, MST has determined priority phases for work to be completed so that MST may implement service incrementally once work is completed. Generally, Priority Phase 1 work will facilitate the realignment of Line 23 (King City to Salinas), Priority Phase 2 will facilitate work that can be accomplished quickly for a new circulator Line in the city, and Priority Phase 3 will indicate a long-range planning effort that the City will need to engage MST to accomplish due to existing conditions. Priority Phase 3 improvements may not be implemented as part of this Scope of Work.
Priority Phase 1 Improvements
Location (Cross
Street)
Work to be performed Bus Stop Type Streetview
Link
N 3rd / Lynn
• Remove one (1) parking
space on the south end of
stop before driveway to
better accommodate
buses.
Parallel (Page
9-10 of
Designing for
Transit
Guidelines) link
Priority Phase 2 Improvements
Location (Cross
Street)
Work to be performed Bus Stop Type Streetview
Link
S Mildred / Broadway • Install one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line into planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
N Mildred / Willow • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
• Ensure vertical clearance
is maintained.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
N Mildred / King
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
E San Antonio /
Campbell
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Supply green hatch
striping for bike lane.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
3rd / Collins
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
• Ensure vertical clearance
is maintained.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Division / S First • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Division / S Vanderhurst • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Division / S Mildred • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
River / Canal • Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad.
Supply proper red striping
45 feet in length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
River / Rio Plaza • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
River / Broadway Circle • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Broadway / 101-S OffRamp
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Provide necessary
grading/retaining to
accomplish sufficient
depth for bus stop.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Oxford / Amherst • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
E San Antonio / Bedford • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Broadway / E San
Antonio
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Priority Phase 3 Improvements
Location (Cross
Street)
Work to be performed Bus Stop Type Streetview
Link
Canal / Division (NB) • There does not appear to
be enough room for this
bus stop – further
investigation of stops may
be needed
TBD link
Map of New Stops and Routing
The map below shows the locations of the new proposed stops and bus routes. The stop names correspond to the locations in the above Phasing Plan. Some stops are existing and are therefore left out of the Scope of Work.
Map of New Stops and Routing
The map below shows the locations of the new proposed stops and bus routes. The stop names correspond to the locations in the above Phasing Plan. Some stops are existing and are therefore left out of the Scope of Work.
Exhibit 3
REIMBURSEMENT AGREEMENT BETWEEN
MONTEREY-SALINAS TRANSIT DISTRICT
AND CITY OF KING FOR BUS STOP
INFRASTRUCTURE IMPROVEMENTS
THIS REIMBURSEMENT AGREEMENT (“Agreement”) is made by and between the Monterey-Salinas Transit District (MST) and the City of King, collectively referred to as “the Parties.”
WHEREAS, MST and City of King have a long-standing cooperative working relationship; and
WHEREAS, MST conducted a Salinas Valley Express Transit Corridor Planning Study in May 2019 with emphasis on speeding up Line 23 Salinas-King City travel time through the Salinas Valley; and
WHEREAS, the City of King participated in the decision-making process to convert existing transit service from demand-response On Call to a fixed-route circular with regularly scheduled service stopping at certain existing and new stops; and WHEREAS, the Parties desire to implement transit stop improvements in support of the King City fixed-route transit service (hereinafter, the “Service”) which requires construction and/or alteration of sidewalks and street/road work and as more fully described in Exhibit A Scope of Work and Attachment 1; and WHEREAS, MST and the City of King agree that it is preferable for the City of King to lead construction work associated with new bus stops for the Service; and WHEREAS, the Parties hereto desire to enter into this reimbursement agreement for construction costs incurred by the City of King and reimbursed by MST; and WHEREAS, a reimbursement agreement for the payment of costs is not a “project” under California Environmental Quality Act (CEQA) guidelines § 15060 and 15378.
NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, the Parties hereto agree to the following:
1. TERM OF AGREEMENT
This Agreement shall be effective on June 14, 2022 and, unless terminated as set forth below, shall end upon the certification of completion of a contract for construction, as set forth below.
2. CONSTRUCTION PROJECT
City of King shall manage the construction project, complete any environmental EXHIBIT 4
analysis necessary, and conduct a competitive solicitation for the construction.
City of King shall produce the competitive solicitation for construction that meets all of the appropriate State requirements, bond funding agreement requirements, and needs of the participating agencies and shall conduct a procurement process which meets State procurement requirements necessary to secure a construction contractor.
City of King shall solely review and agree on a responsible contractor as part of the project. If a contractor is selected as part of the Reimbursement Agreement, City of King shall be the entity responsible to enter and manage the agreement for construction of bus stop infrastructure, and require the contractor to complete the scope of work as agreed by the Parties as further described in Exhibit A. If a construction contract is entered into, City of King will provide overall project management and will receive project contractor invoices and pay the invoices upon satisfactory completion of invoiced work.
2 . 1 . MINIMUM TERMS FOR SCOPE OF WORK
The Scope of Work prepared for the services by the City of King pursuant to this Reimbursement Agreement shall contain at least the following provisions:
• Any responsive, responsible bidder must have experience in successfully constructing work as provided in the Scope of Work herein and attached as Exhibit A and the Invitation for Bids issued by the City of King. Any responsive, responsible bidder must have employees or subcontractors assigned who have the proper licensing within the State of California to perform required work.
2 . 2 . REQUIRED TERMS FOR CONSTRUCTION CONTRACT
Any construction contract entered into as a result of City of King procurement process described herein shall contain at least the following provisions:
• The budget for the construction project shall not exceed the amount of
TWENTY-NINE THOUSAND, NINE HUNDRED SEVENTY-TWO
DOLLARS AND NINETY-SIX CENTS ($29,972.96) including all costs and contingencies. There shall not be any deviation from the project budget for the contract without prior written approval by MST General Manager/ Chief Executive Officer.
• All costs incurred under any approved construction contract shall be based on actual costs and are subject to audit. Substantiating documents (e.g., travel receipts, invoices, etc.) shall be retained by City of King and City of King shall keep an accurate accounting of all costs incurred in the performance of the Project for this Reimbursement Agreement, including providing summary reporting information to MST. • The allowability of costs shall be determined in accordance with the Office of Management and Budget Circular 2 CFR Chapter I and II, Part 200 et al. as of January 1, 2014. All requests for budget amendment approvals shall be in writing and mutually agreed to by MST and City of King.
• Prior to the beginning and throughout the duration of the work, the contractor, and applicable subcontractors, shall carry the type and amounts of insurance, as shown in Exhibit B, and shall name MST, City of King and their respective Board members, Officers, and employees as additional insured.
• The contractor shall agree to indemnify, defend, and hold harmless MST, City of King, and their respective Board members, Officers, and employees to the fullest extent of the law.
3. COST AND PAYMENTS
MST shall reimburse City of King for and costs relating to the implementation of this Reimbursement Agreement and the development, solicitation, procurement of a responsible contractor, construction management and inspection as set forth in this Agreement. This Paragraph delineates the responsibilities of each Party towards the scope of work on this project.
Upon City of King’s approval and execution of a contract with a construction contractor and MST’s receipt of a fully executed construction agreement, consistent with the provisions of this Agreement, City of King shall submit an invoice to MST in the amount awarded to the construction contractor. MST agrees to pay construction costs in amounts not to exceed TWENTY-NINE THOUSAND, NINE HUNDRED SEVENTYTWO DOLLARS AND NINETY-SIX CENTS ($29,972.96), except as provided below.
If the final invoices paid under an approved construction contract are less than the aforementioned “not to exceed” costs, MST shall retain any unexpended amounts.
In the event of unforeseen conditions requiring a change order, authorize the City Manager to approve change orders up to 15% of construction costs or approximately $4,500.00. MST shall reimburse the City of King for the cost of contract management and inspection in the amount of 20% of construction costs or approximately $6,000.00 City of King shall carefully monitor costs and performance of the contractor, take such steps as necessary to ensure that construction is completed on time and on budget, and shall alert MST on an expedited basis of any questions or concerns in the costs or timely completion of the ultimately approved construction Project. MST shall review City of King reimbursement invoices and provide concurrence or questions on an expedited basis to ensure prompt payment of invoices or the prompt resolution of disputes.
4. MST Project Manager
MST designates Michelle Overmeyer, Director of Planning and Innovation as the Project Manager who will liaison between MST and City of King. MST shall promptly notify City of King of any change in this designation.
5. City of King Representative
City of King designates Octavio Hurtado as City of King Representative responsible for the participation in, and for amendments to this Reimbursement Agreement. City of King shall promptly inform MST of any change to its Representative.
6. Scope of Work Revisions
Any significant changes in the performance of this Reimbursement Agreement, including any significant changes to the proposed Scope of Work or Required Contract Terms, described herein shall be in writing and require mutual authorization by the City Manager and MST General Manager / Chief Executive Officer.
7. Administrative Representative
MST designates Lisa Rheinheimer as the Administrative Representative who shall be responsible for the contractual and administrative aspects of this Agreement. Questions and correspondence of an administrative nature shall be directed to the Administrative Representative at MST, 19 Upper Ragsdale Drive, Suite 200, Monterey, California 93940 or by phone at (831) 264-5874 or by email at [email protected].
8. Termination
Either Party may terminate this Reimbursement Agreement at any time with or without cause prior to the construction contract by City of King pursuant to this Agreement, through a written Notice of Termination. Notice will be provided not less than fifteen (15) calendar days prior to termination.
Nothing in this Section shall limit the Parties ability to mutually terminate this Agreement upon the written mutual consent of the Parties.
9. Indemnification
Each Party shall defend, indemnify, and save harmless the other Party, its officers, agents, and employees against all claims, demands, suits, damages, costs, expenses, losses, including reasonable legal expenses and reasonable attorneys’ fees, or liability, in law or in equity, of every kind and nature whatsoever, arising out of or resulting from the negligent acts or omissions of the indemnifying Party (which shall include the indemnifying party’s officers, agents, employees or volunteers) in the performance of this Reimbursement Agreement.
10. Disputes
In the event of a dispute arising out of the performance of this Agreement, the disputing Party shall send a written Notice of Dispute to the other Party. Within five (5) working days of receipt of such notice, the Parties shall respond and agree to a meeting for the purpose of discussing the dispute and the facts giving rise to the dispute. If resolution of the dispute cannot be reached, the affected Party may file appropriate litigation within six months thereafter, or terminate the Agreement pursuant to Section 8. Notices Notices required under this Agreement shall be delivered personally or by electronic means with delivery and read receipts, or by first-class, postage pre-paid mail to Parties contract administrators at the addresses listed below:
Michelle Overmeyer
Director of Planning and Innovation
19 Upper Ragsdale Dr., Suite 200
Monterey, CA 93940
Phone: 831-264-5888
Electronic notices shall be copied to the following individuals at City of King:
Octavio Hurtado
City Engineer
212 South Vanderhurst Avenue
King City, CA 93930
Phone: (831) 385-3281
Either Party may change its address by giving notice of such change to the other party in the manner provided in this Section 11. All notices and other communications shall be deemed communicated as of actual receipt or after the second business day after deposit in the United States mail.
11. Severability
If any provision of this Reimbursement Agreement, or the application thereof to any person, place, or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement and such provisions as applied to other persons, places, and circumstances shall remain in full force and effect.
12. General Provisions and Certifications
MST and City of King certify that it is in compliance with all applicable federal and state laws and regulations.
13. Entire Agreement
This Agreement constitutes the entire agreement and understanding between MST and City of King with respect to reimbursement costs for bus stop infrastructure within City of King, and supersedes any prior or contemporaneous agreement or understandings if any. Any changes or modifications shall be accomplished by a written amendment to this Agreement executed by the duly authorized representative of each party.
14. Choice of Laws
This Agreement shall be interpreted and applied according to the laws of California and shall be deemed to have been entered into in California as of the effective date set forth in Paragraph 1 above. Any litigation concerning this Agreement shall take place in Monterey County, or the federal district court with jurisdiction over MST. The Parties Agree not to commence or prosecute any dispute arising out of or in connection with this Agreement other than in the aforementioned courts and irrevocably consents to the exclusive personal jurisdiction and venue of the aforementioned courts.
15. Attorney’s Fees
Should either party to this Agreement bring legal action against the other (formal judicial proceeding, mediation or arbitration) the party prevailing in such action shall be entitled to a reasonable attorney’s fee which shall be fixed by the judge, mediator or arbitrator hearing the case, and such fee shall be included in the judgment together with all costs.
16. Headings
The headings are for convenience only and shall not be used to interpret the terms of this Agreement.
17. Time is of the Essence
Time is of the essence in each and all of the provisions of this Agreement.
18. 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.
19. Authority
Any individual executing this Agreement on behalf of the MST or City of King 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.
SIGNATURES ON NEXT PAGE
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the month, day and year specified below.
Carl G. Sedoryk
General Manager / CEO
Monterey-Salinas Transit District
Date:
APPROVED AS TO FORM:
David C. Laredo
MST General Counsel
De Lay & Laredo
Date:
Steve Adams
City Manager
City of King
Date:
EXHIBIT A
ScopeofWork
Project Information
Name of
Client/Organization
Monterey-Salinas Transit (MST)
19 Upper Ragsdale Drive, Suite 200
Monterey, CA 93940
Project Contact Details
Contact Person Role Phone Email
Michelle Overmeyer Director of Planning
and Innovation
(831) 264-5877 [email protected]
Paul Lopez Facilities Manager (831) 264-9438 [email protected] Project Information
Name of
Project
Bus Stop Infrastructure Improvements for King City fixed route Circulator (Line 34)
Project
Location
Various bus stops throughout city (see description)
Project
Description
MST has approved a Plan to create new routes and services throughout South Monterey County Cities. This project will facilitate the construction of new bus stops consistent with MST’s Designing for Transit Guidelines (2020). Details on work on bus stops to be added are included in the table below.
Contract
Process
1. MST develops Scope of Work for approval by City’s Public Works Department and City Manager
2. City develops cost estimate for all improvements herein
3. MST receives cost estimate for improvements to develop a contract for work to be performed.
4. MST will develop a contract with City to perform work on MST’s behalf and at MST’s expense
5. City will choose whether to perform work using internal staff or contracted staff.
6. Work is executed by city.
Approvals
Needed
• [Pre-requisite City Permit and Commission Approvals]
• City Council approval of Contract
Locations and work to be performed
Work to be performed will vary based on existing conditions and type of bus stop recommended. The bus stop types are to be installed consistent with the bus stop types in the MST Designing for Transit Guidelines (2020). To best facilitate complete service planning, MST has determined priority phases for work to be completed so that MST may implement service incrementally once work is completed. Generally, Priority Phase 1 work will facilitate the realignment of Line 23 (King City to Salinas), Priority Phase 2 will facilitate work that can be accomplished quickly for a new circulator Line in the city, and Priority Phase 3 will indicate a long-range planning effort that the City will need to engage MST to accomplish due to existing conditions. Priority Phase 3 improvements may not be implemented as part of this Scope of Work.
Priority Phase 1 Improvements
Location (Cross
Street)
Work to be performed Bus Stop Type Streetview
Link
N 3
rd / Lynn
• Remove one (1) parking
space on the south end of
stop before driveway to
better accommodate
buses.
Parallel (Page
9-10 of
Designing for
Transit
Guidelines) link
Priority Phase 2 Improvements
Location (Cross
Street)
Work to be performed Bus Stop Type Streetview
Link
S Mildred / Broadway • Install one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line into planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
N Mildred / Willow • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
• Ensure vertical clearance
is maintained.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
N Mildred / King
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
E San Antonio /
Campbell
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Supply green hatch
striping for bike lane.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
3 rd / Collins
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
• Ensure vertical clearance
is maintained.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
Division
/S First
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
Division/S Vanderhurst
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
Division/S Mildred
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
River
/ Canal
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad.
Supply proper red striping
45 feet in length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
River/ Rio Plaza
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
River/ Broadway Circle
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
Parallel (Page9-
10 of Designing
for Transit
Guidelines)
link
Broadway / 101-S OffRamp
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Provide necessary
grading/retaining to
accomplish sufficient
depth for bus stop.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Oxford / Amherst • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
• Remove two (2) parking
spaces from the area.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
E San Antonio / Bedford • Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Broadway / E San
Antonio
• Provide one (1) concrete
passenger landing pad
extended 4 feet from
existing sidewalk toward
property line in planting
area (8 feet total width)
and 27.5 feet in length.
• Supply 1 hole for bus stop
pole 1 foot north of
passenger landing pad
and at the back of
sidewalk. Supply proper
red striping 45 feet in
length on curb.
Parallel (Page 9-
10 of Designing
for Transit
Guidelines)
link
Priority Phase 3 Improvements
Location (Cross
Street)
Work to be performed Bus Stop Type Streetview
Link
Canal / Division (NB) • There does not appear to
be enough room for this
bus stop – further
investigation of stops may
be needed
TBD link
Map of New Stops and Routing
The map below shows the locations of the new proposed stops and bus routes. The stop names correspond to the locations in the above Phasing Plan. Some stops are existing and are therefore left out of the Scope of Work.
EXHIBIT B
INSURANCE REQUIREMENTS FOR THE CONSTRUCTION CONTRACTOR
Commercial General Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Three Million Dollars ($3,000,000) per project or location. If CONTRACTOR is a limited liability company, the commercial general liability coverage shall be amended so that CONTRACTOR and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If CONTRACTOR does not use any owned, non-owned or hired vehicles in the performance of services under this Agreement, CONTRACTOR shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 3.2.
Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If CONTRACTOR has no employees while performing services under this Agreement, workers’ compensation policy is not required, but CONTRACTOR shall provide an executed declaration that it has no employees.
Attachment 1
City of King
Department of Public Works
Bid Number 2022-04-01 dated April 1, 2022
Item No. 11 (B)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
BY: PATRICK MATHEWS, GENERAL MANAGER AND ELIA ZAVALA,
CONTRACTS AND GRANTS ANALYST, SALINAS VALLEY SOLID
WASTE AUTHORITY
RE: CONSIDERATION OF USA WASTE OF CALIFORNIA (DBA WASTE
MANAGEMENT) GARBAGE AND RECYCLING COLLECTION
SERVICE FEES FOR FISCAL YEAR 2022-23
RECOMMENDATION:
It is recommended the City Council adopt a Resolution approving Waste Management’s garbage and recycling collection adjusted rates for Fiscal Year 2022-23 effective July 1, 2022, resulting in a 6.24% increase.
BACKGROUND:
The City’s Revised and Restated Franchise Agreement (Agreement) with USA Waste of California, dba Waste Management (WM) for the subject services was approved on June 27, 2017. The Agreement provides for annual rate adjustments to occur on July 1 of every year for the duration of the agreement. City staff and Salinas Valley Solid Waste Authority (SVSWA), the City’s franchise agreement administrator, have reviewed Waste Management’s proposed rate increases and find them reasonable and within the terms of the Franchise Agreement.
DISCUSSION:
Waste Management’s rates are composed of six contractual rate components and the City’s franchise fee. Each year adjustments to these components are calculated based upon the franchisee’s financial results for the period of January through December of the previous year. Each component is then assigned a percentage weight based on the proportionate share of its rate component costs to the total cost. Since this formula is set forth in the City’s franchise agreement, the
CITY COUNCIL
CONSIDERATION OF USA WASTE OF CALIFORNIA (DBA WASTE
MANAGEMENT) GARBAGE AND RECYCLING COLLECTION SERVICE FEES FOR FISCAL YEAR 2022-23
JUNE 14, 2022
PAGE 2 OF 4
City is required to approve the increase under the terms of the agreement if the amounts are determined to be accurate.
The City contracts with the Salinas Valley Waste Authority to administer the franchise agreement, so they prepare an analysis of the rate increase request when it is received. The increase amount recommended was decreased based upon the results of their analysis.
The proposed 6.24% Fee Adjustment for Fiscal Year 2022-23 is broken down into the following fee components as follows:
1. WM Service Fee Annual CPI 2.00%
2. WM Diesel Fuel 3.21%
3. SVSWA Landfill Disposal -1.00%
4. SVSWA AB 939 Programs 0.82%
5. SVSWA Organic Waste Processing 0.25%
6. SVSWA Waste Transfer 0.00%
7. WM Delinquent Customer Adjustment 0.97%
TOTAL 6.24%
A more detailed table of the rate calculation is attached as Exhibit 1.
Over the past several years, WM has experienced a substantial increase in delinquent customer accounts resulting in a considerable increase in bad debt.
Section 7.5 of the 2017 revised and restated franchise agreement stipulates that the City intended to adopt a new Ordinance to provide for the transfer of WM’s delinquent charges to property taxes as a special assessment or property lien. If the City failed to adopt the special assessment/property lien, WM would then have the option to recover losses due to delinquent customer accounts through an adjustment to the customer rate caps.
Due to a number of factors, the City has deferred instituting the special assessment/property lien process and is instead first pursuing other options for reducing delinquent accounts. As a result, in July 2021, a new rate component for bad debt was implemented. It includes a base amount of 7.4% already assumed within the existing rates based on the amount incorporated in the prior year’s rate calculation. Every year this component will be adjusted based on how much the bad debt actual costs are above or below that amount for the previous year.
FY 2022-23 is the second year of the Food Waste Collection Pilot Project required to meet the requirements of AB 1826 and SB 1383 for commercial organics recycling programs. Waste Management offers a 64-gallon cart to food-waste
CITY COUNCIL
CONSIDERATION OF USA WASTE OF CALIFORNIA (DBA WASTE
MANAGEMENT) GARBAGE AND RECYCLING COLLECTION SERVICE FEES FOR FISCAL YEAR 2022-23
JUNE 14, 2022
PAGE 3 OF 4
generating commercial customers at the monthly rate of $36.73. for once-a-week collection and $73.46 for twice a week.
The table below reflects the 6.24% fee increase allocated to the respective rate components to a residential customer with a 35-gallon garbage container and to a commercial customer with a 3-cubic yard bin with weekly service.
Weekly Service Residential
35 gal cart
Commercial
3cy bin
Current Rate 7/1/20 $37.85 $359.73
WM CPI 0.76 7.19
WM Fuel 1.21 11.53
WM Delinquent Customer Adjustment 0.37 3.48
SVSWA Disposal -0.38 -3.60
SVSWA AB939 0.31 2.95
SVSWA Organics 0.10 0.90
SVSWA Transfer 0.00 0.00
Proposed Rate 7/1/21 $40.21 $359.73
Increase Amount $2.36 $22.45
COST ANALYSIS:
It is projected that these changes will increase franchise fee revenue to the City by approximately $28,000 per year.
ENVIRONMENTAL REVIEW:
The fees are not considered a “project” for the purposes of the California Environmental Quality Act (CEQA). Therefore, the fee adjustments do not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
ALTERNATIVES:
The following alternatives are presented for City Council consideration:
1. Approve staff’s recommendations;
2. Request additional analysis on any of the specific components of the rate increase to potentially justify a modification to the rate increase;
3. Direct staff to negotiate any desired changes that may impact the rate increase; or
4. Provide staff other direction.
CITY COUNCIL
CONSIDERATION OF USA WASTE OF CALIFORNIA (DBA WASTE
MANAGEMENT) GARBAGE AND RECYCLING COLLECTION SERVICE FEES FOR FISCAL YEAR 2022-23
JUNE 14, 2022
PAGE4OF4
Exhibits:
1. Service Fee Schedule Calculation
Submitted by: -�-· -�-·_1_lv1_�-----------
Patrick Mathews, General Manager/CAO, Salinas Valley Solid Waste Authority
Approved by:
Steven Adams, City Manager
Item No. 11 (C)
REPORT TO THE CITY COUNCIL
DATE: JUNE 14, 2020
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF ADJUSTMENTS TO THE FY 2022-23
BUDGET
RECOMMENDATION:
It is recommended the City Council: 1) approve the recommended adjustments to the FY 2022-23 Budget; 2) adopt a Resolution establishing the appropriation limit from tax proceeds for FY 2022-23; and 3) receive a presentation on the City’s PERS rates and unfunded pension obligations.
BACKGROUND:
On June 8, 2021, the City Council adopted the FY 2021-22/FY 2022-23 Biennial Budget. The total City budget was $24,087,756 in FY 2021-22 and $18,538,906 in FY 2022-23. Of these amounts, the General Fund accounted for $8,766,374 in FY 2021-22 and $9,099,482 in FY 2022-23.
The City operates on a two-year budget cycle. The current fiscal year is the first year of the cycle. At the end of the first year, the City prepares a review of City expenditure and revenue accounts, updates current needs, and recommends changes for the second year.
It is important to note that year-end estimates are only projections at this point and are difficult to accurately forecast. However, staff believes that the projections are conservative and should be in line with what actual revenue and expenditures will be at June 30, 2022.
The recommended budget amendments were reviewed by the Budget Advisory Committee on May 26th. They Committee recommended approval. However, there are some expenditure needs that have been identified since the Committee met, which were not part of the recommendations presented to the Committee.
CITY COUNCIL
CONSIDERATION OF ADJUSTMENTS TO THE FY 2022-23 BUDGET
JUNE 14, 2022
PAGE 2 OF 7
As part of the budget review, each department also provides an update on budget goals that were established for the fiscal year. Therefore, a status report on departmental goals for FY 2021-22 and FY 2022-23 is attached.
Two other related items are included in the staff report. First, the City Council is required to approve findings each year that the City’s budget is maintained within its State required appropriations limit. Second, at the April 12, 2022 Council meeting, Council Member Cullen requested, and the Council concurred, to direct staff to provide an update on the City’s CalPERS pension unfunded liability costs.
DISCUSSION:
Summary
FY 2021-22 was a successful year for the City financially. The General Fund debt was repaid, the City built a financial reserve meeting its policy goal, and a number of grants were approved enabling the City to fund several major priority goals. Staff is projecting revenues to again exceed expenditures for the year-end of FY 2021-22, resulting in an additional increase to the positive General Fud balance amount.
An updated account detail summary is attached. The revised projected General Fund revenues are $9,741,454 and expenditures are $10,016,454. Projected expenditures exceed revenues by approximately $275,000. However, this is due primarily to a number of one-time expenditure needs. The amount of these one-time expenditures will be funded by excess revenues projected at year-end of FY 2021-22. Therefore, they will not reduce the current reserve that has been established. When combined with an increase of capital expenditures budgeted, the City maintains some flexibility to reduce expenditures without layoffs if a potential recession occurs and actual revenues are lower than anticipated.
If the Local Sales Tax Measure proposed for the November 2022 ballot is approved, a projected additional $300,000 in revenues will be generated in FY 2022-23. Therefore, this would also prevent expenditures from exceeding revenues.
Only major revenue sources were reviewed, so there may be other variations throughout the year. Additional one-time expenditures to meet City facility repair needs may be recommended from the reserves once staff is able to determine the net balance for the current year. In addition, a small number of additional future priority staffing additions have been identified, but staff does not want to recommend any further increase in ongoing expenditures at this time until more information on forecasted revenue trends can be obtained. The current revenue
CITY COUNCIL
CONSIDERATION OF ADJUSTMENTS TO THE FY 2022-23 BUDGET
JUNE 14, 2022
PAGE 3 OF 7
figures are positive, but it is important to recognize that the economic conditions may be at a high point, so staff recommends moving forward in a cautious manner.
Below are the primary recommended changes:
Revenues
• Sales tax projections have been increased by $529,834 based on projections from HdL Companies, the City’s sales tax consultant. • Cannabis tax and cannabis operation permit revenues have been increased by $175,000 based on permit and tax proceeds from existing businesses.
This figure is projected to be even greater, but staff recommends against budgeting a higher figure given the unreliability of the market at this time and pressures for potential adjustments to the tax amounts. • The KCCP $90,000 payment that was budgeted was deleted due to the financial status of the CCA.
• Successor Agency revenues have been reduced as the City moves toward final closeout of the former redevelopment agency now that the outstanding payment from 1023 Broadway Street has been resolved and all properties have been sold.
• Park Development Impact Fee projected revenues are increased by $110,000 due to the fees to be paid in FY 2022-23 from projects under construction.
Expenditures
• Due to the high costs of construction at this time, the low bid for the Downtown Plaza project is roughly $700,000 over budget. Staff recommends an additional $300,000 be budgeted, which would include $225,000 from the General Fund and $75,000 from the Park Development Impact Fee Fund. The goal will be to address $400,000 through negotiations with the contractor and value engineering. The item has been delayed until the June 28th meeting due to the time needed to address the additional cost. If the savings cannot be achieved, other options available will be to either budget additional funds or delay and rebid the project. • The Police training budget was increased by $10,000 due to the recent emphasis on increased training programs.
CITY COUNCIL
CONSIDERATION OF ADJUSTMENTS TO THE FY 2022-23 BUDGET
JUNE 14, 2022
PAGE 4 OF 7
• All negotiated salary increases have been incorporated, along with costs for reclassifications of the City Clerk and Recreation Manager positions. • Costs for the added positions of Planning Technician, Accounting Technician, and Code Enforcement Officer are included.
• A one-time cost of $100,000 for new finance software is added, which is necessary since the existing software program is being phased out and will not longer be maintained in the near future. It will be charged 75% to the General Fund and 25% to the Wastewater Fund.
• The Aquatics budget for repairs is being increased by $125,000 to resurface the dive pool, which is currently cracked and damaged.
• An additional minimum of $50,000 annually is recommended for operation of the Golf Course. Proposals for the new golf course management contract have been received, and it is concluded that some level of subsidy will be required.
Gann Appropriations Limit
Proposition 4 was passed by the voters in 1979, which established a State Constitutional limit on spending for each municipal agency based upon a formula that is calculated each fiscal year. The City’s Appropriation Limit for FY 2022-23 was calculated to be $22,313,686. The amount of the City’s appropriations determined to be subject to the “Gann Limit” is $7,734,304. Therefore, the proposed budget for FY 2022-23 is in compliance with the Appropriations Limit.
A Resolution making these findings is attached for City Council consideration CalPERS Pension Unfunded Liability
The City is a member of CalPERS in order to provide its pension plan to its employees. There is both an employee share of the pension plan cost and an employer share. Employees hired prior to January 1, 2013 are considered “classic” employees with regard to their pension plan. Those hired on or after that date fall under the Public Employees’ Pension Reform Act (PEPRA) unless they previously worked for another CalPERS agency without a 6-month break in their employment. The employee share for classic employees is 9% for sworn personnel and 7% for miscellaneous. PEPRA employees pay a rate set by CalPERS each year.
PEPRA was passed in 2012 and went into effect January 1, 2013. PEPRA created a reduced tier of benefits for employees hired after it went into effect.
PEPRA provides that pension contribution sharing with employers and
CITY COUNCIL
CONSIDERATION OF ADJUSTMENTS TO THE FY 2022-23 BUDGET
JUNE 14, 2022
PAGE 5 OF 7
employees paying an equal share of normal pension costs. Under PEPRA, employers are not allowed to pay any part of the employee contribution. By January 2018, all employees began paying the employee contribution rate.
Over the past couple decades, CalPERS pension costs have increased substantially faster than contributions. As a result, each agency has an “unfunded liability” amount that it is responsible for paying. PEPRA separated these costs, so now each agency pays their pension plan rates for each existing employee and a separate payment for the unfunded liability. A report on the City’s unfunded pension liability prepared by the Finance Director is attached.
The total amount of the City’s unfunded liability is close to $12 million. An amortization scheduled for the projected future unfunded liability payments is also attached.
One tool to reduce unfunded liability is referred to as pension obligation bonds.
Under this option, bonds are issued to pay down the obligation. This can produce savings since the bond interest rates are typically lower than the assumptions CalPERS uses for the rate of return on its investments.
Staff investigated this option a couple years ago and received a proposal. It was not recommended due to three findings. First, the Government Finance Officers Association (GFOA) recommends state and local governments do not issue pension obligation bonds due to the risk resulting from a number of factors.
Second, agencies the City contacted that have issued pension obligation bonds did not experience the results anticipated and recommended against them.
Third, given the financial problems of CalPERS, staff does not have a high confidence level that CalPERS policies will remain consistent. Therefore, changes in the future could impact the projected benefits of the bonds after the jurisdiction incurs the long-term debt.
Another option is to pay down unfunded liability with City funds, which is a less risky investment because the interest the City receives from the Local Agency Investment Fund (LAIF) is so low. This was not an option at the time staff reviewed available strategies given the City still had a negative fund balance.
However, it could be an option to consider in the future if the City continues to increase its reserve amount to a point where a high enough payment to make a meaningful difference is feasible.
The City’s unfunded liability is relatively high compared to other organizations of comparable size. This is largely due to the large number of layoffs and dismissals related to the City’s financial crisis and the Police Department scandal that resulted in retirements of classic employees.
CITY COUNCIL
CONSIDERATION OF ADJUSTMENTS TO THE FY 2022-23 BUDGET
JUNE 14, 2022
PAGE 6 OF 7
However, this is partially balanced by the fact that rates and costs for existing employees are comparatively low due to a number of factors working in the City’s favor. First, the City’s limited staffing and use of contract staff reduce total costs.
Second, a large number of the City’s staff fall under PEPRA. Third, the City did not implement some of the most generous retirement plans that many other jurisdictions have in place for their classic employees. Lastly, the City does not provide retiree medical benefits. Rising retiree medical costs are one of the major factors for cities facing potential bankruptcy concerns.
No actions regarding the City’s pension costs are recommended at this time.
However, staff will begin including an evaluation of potential supplemental CalPERS payments during each budget process in the future.
COST ANALYSIS:
The proposed changes result in a $628,649 increase in budgeted General Fund revenues and $916,972 increase in expenditures.
ENVIRONMENTAL REVIEW:
The budget is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as it does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve staff’s recommendations;
2. Direct staff to eliminate recommended items and approve;
3. Request additional expenditures;
4. Do not approve any budget changes; or
5. Provide staff other direction.
Exhibits:
1. Amended Budget Worksheet
2. Revised Downtown Plaza CIP Form
3. Goals and Accomplishments Status Report
4. Gann Limit Resolution
5. Pension Unfunded Liability Report
6. Pension Unfunded Liability Amortization Schedule
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6