Agenda packet, regular meeting, first session — King City City Council, March 12, 2024

AGENDA

REGULAR MEETING OF THE

CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF

THE RDA FOR THE CITY OF KING
TUESDAY MARCH 12, 2024
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.

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Passcode: 052933
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* Please submit all correspondence for City Council PRIOR to the meeting with a copy to the City Clerk.

CALL TO ORDER
ROLL CALL:

Coucil Members Oscar Avalos, Carlos DeLeon, Robert Cullen, Mayor Pro Tem Carlos Victoria, and Mayor Mike LeBarre

FLAG SALUTE

CLOSED SESSION ANNOUNCEMENTS

SPECIAL PRESENTATIONS
Commendation For Paulette Bumbalough Planning Commissioner 5(A) COMMENDATION.PDF

PUBLIC COMMENT

1. 2.

3. 4.

5. A.

Documents:
6 Commendation For Paulette Bumbalough Planning Commissioner 5(A) COMMENDATION.PDF

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.

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.

STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.

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 Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.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.

Consideration: Meeting Minutes Of February 27, 2024 City Council Meeting 02-27-2024 MINUTES_.PDF
Consideration: City Of King Check Register February 16, Through February 29, 2024 9(B) CC CITY AP 031224.PDF
Consideration: Appointment To The Planning Commission
Recommendation: adopt a Resolutio appointing Margarita Lopez to the Planning Commission.
9(C) PLANNING COMMISSION APPOINTMENT.PDF
Consideration: Side Letter Of Agreement With The Service Employees International Union Local 521
Recommendation: 1) approve and authorize the City Manager to execute a Fifth Side Letter of Agreement with the Service Employees International Union Local 521 (SEIU) to implement equity adjustments for certain classifications and extend the agreement to June 30, 2026; and 2) adopt a Resolution updating the Classification Plan to reflect the salary range change
A.

Documents:

6. 7.

8. 9.

Documents:

Consideration: Side Letter Of Agreement With The Service Employees International Union Local 521
Recommendation: 1) approve and authorize the City Manager to execute a Fifth Side Letter of Agreement with the Service Employees International Union Local 521 (SEIU) to implement equity adjustments for certain classifications and extend the agreement to June 30, 2026; and 2) adopt a Resolution updating the Classification Plan to reflect the salary range change.
9(D) SR SEIU SIDE LETTER.PDF
Consideration: Resolution Amending The Facade Enhancement Grant Program Guidelines
Recommendation: adopt a Resolution amending the Facade Enhancement Grant Program juidelines to increase the eligible funding amounts. 9(E) FACADE ENHANCEMENT PROGRAM AMENDMENT.PDF
Consideration: An Ordinance Amending Chapter 5.30 Of Title 5 Of The King City Municipal Code Regarding Public Transit Vehicles
Recommendation: waive the second reading by title only and adopt an Ordinance amending Chapter 5.30 of Title 5 of the King City Municipal Code pertaining to permit requirements for public transit vehicles.
9(F) TAXI PERMIT ORDINANCE ADOPTION.PDF
Consideration: An Amendment To The Riverbed Wildfire Prevention Plan Consultant Services Agreement
Recommendation: 1) approve and authorize the City Manager to execute an amendment to the Consultant Services Agreement with EMC for additonal services involving public outreach for the Reiverbed Wildfire Prevention Plan; and 2) authorize the City Manager to approve change orders up to an addtional $4,272.50. 9(G) AMENDMENT NO. 1 TO EMC SERVICES AGREEMENT CC SR CM COMMENTS CLEAN COPY (002).PDF
Consideration: An Extension Of Time For Conditional Use Permit Case No. 210-091, Architectual Review Permit Case No. P21-000-005, Landscaping Permit Case No. L21- 000-001 , And Sign Permit Case No. SN2-100-001 For Grocery Outlet Project At 1023 Broadway Street.

Recommendation: adopt a Resolution granting a one-year extension for the Grocery Outlet project at 1023 Broadway Street.
9(H) GROCERY OUTLET EXTENSION OF TIME CC SR - COPY (2).PDF Consideration: Amendment To FY 2023-2024 And FY 2024-2025 Major Priority Budget Goals
Recommendation: approve by motion an amendment to the major priority budget goals for FY 2023-2024 and FY 2024-2025.

Documents:

I.
() ()
Consideration: Amendment To FY 2023-2024 And FY 2024-2025 Major Priority Budget Goals
Recommendation: approve by motion an amendment to the major priority budget goals for FY 2023-2024 and FY 2024-2025.
9(I) BUDGET GOALS REPORT.PDF

PUBLIC HEARINGS

REGULAR BUSINESS
Consideration: A Transit Service Agreement As Part Of The Affordable Housing Sustainable Communites Grant Between CHISPA And The City Of King For The Mills Ranch Affordable Housing Program
Recommendation: authorize the Public Works Director/City Engineer to sign the attached Transit Service Agreement.
11(A) AHSC CHISPA TRAN SER AGREEMENT SR.PDF

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.

ADJOURNMENT
The City of King is an equal opportunity provider and employer.

Documents:

10. 11.

Documents:

12. 13.

Page 1 of 3 ends

City Council Meeting
February 27, 2024

1.__CALL TO ORDER:

Regular Meeting called to order at 6:00pm by Mayor LeBarre.

2.__ROLL CALL:

City Council: Mayor Mike LeBarre, Council member Carlos DeLeon, Mayor Pro Tem Carlos Victoria, Council member Rob Cullen. Council members Oscar Avalos was absent.

City Staff: City Manager Steve Adams; City Attorney Roy Santos; City Clerk, Erica Sonne.

3.__FLAG SALUTE:

The flag salute was led by Mayor LeBarre.

4. CLOSED SESSION ANNOUNCEMENTS:

None
Mayor LeBarre and City Attorney announced: An Urgency Resolution needs to be added to the agenda.

An urgency item added for the Permanent Local Housing Allocation Program was brought to staffs attention this morning on a motion by Victoria and 2nd by Cullen. 4-0 passed.

City Manager Adams introduced this item stating that we needed to present and pass this resolution to be turned in on Thursday to continue receiving the funding from the Permanent Local Allocation Program and there is no local match.

On a motion by Victoria and 2nd by Cullen City Council approved the resolution 4-0. (Avalos absent)

5.__SPECIAL PRESENTATIONS:

A. Chief Hunt swore in Sergeant Armando Mendoza and his daughter pinned on his badge.

B. Patsy Gasca from the American Red Cross accepted the American Red Cross 2024 Proclamation from Mayor LeBarre and spoke on things that the American Red Cross continue to do to support south county and all of Monterey County.

6. PUBLIC COMMUNICATIONS:

Mark Roland thanked Council and staff for all the improvement changes in King City. He asked for peaceable habitation. He spoke on noise from backyard bands. He would suggest that amplifiers be banned and if that is not an option he would like the 50 decibel at the curb of place the music is coming from.

7. COUNCIL COMMUNICATIONS:

Council Member DeLeon stated he had nothing to report tonight.

Mayor Pro Tem Victoria stated he had nothing to report tonight. Encouraged people to go to the High School soccer game as they are in the championship.

Council Member Cullen stated Salinas Valley Solid Waste Authority gave budget direction to staff and it will be being brought back. He also reminded that 1st Tee Gala fundraiser is this weekend and tickets are still available.

Page 2 of 3 ends

Mayor LeBarre stated he had annual city briefing with Speaker Rivas today and it went very well.

8. CITY STAFF REPORTS AND COMMENTS:

City Manager Adams reminded of the Wildfire Prevention Plan workshop tomorrow evening at the King City Fire Station from 5-6p.m.

City Attorney Santos had nothing to report tonight.

9. CONSENT
A. Consideration: Meeting Minutes of February 13, 2024, Council Meeting B. Consideration: City of King Check Register February 1, through February 15, 2024 C. Consideration: Award of Contract for Wastewater Rate Study D. Consideration: Modification to Outdoor Dining Area Improvements Grant Program E. Consideration: City of King Check KCCP Payments for the Month of January 2024 Action: Motion to approve consent agenda items A -E by Cullen seconded by Victoria.

AYES: Council Members: LeBarre, DeLeon, Victoria, Cullen NOES: Council Members:

ABSENT: Council Members: Avalos,
ABSTAIN: Council Members:

10. PUBLIC HEARINGS:

A. Consideration: An Ordinance Amending Chapter 5.30 of Title 5 of the King City Municipal Code Regarding Public Transit Vehicles
City Manager Steve Adams introduced this item.

Carl Sedoryk, General Manager / CEO further introduced this item.

Mayor LeBarre read the title of the ordinance into the record.

Mayor LeBarre opened the public hearing. Mark Roland thanked Council for the service of MST and feels this is a positive to have the taxi service. Hearing and seeing no one else come forward, Mayor LeBarre closed the public hearing.

Action: Motion to waive first reading of the Ordinance and approve the introduction of the Ordinance by Cullen seconded by DeLeon.

AYES: Council Members: LeBarre, DeLeon, Victoria, Cullen NOES: Council Members:

ABSENT: Council Members: Avalos
ABSTAIN: Council Members:

11. REGULAR BUSINESS
A. Consideration: Salinas Valley Safe Routes to School Plan, King City Participatory Budgeting Process and the King City Steering Committee Priority Project

Page 3 of 3 ends

Public Works Director/City Engineer Octavio Hurtado introduced this item.

Aaron Hernandez MST further introduced this item with a PowerPoint presentation and introduced participants of the Safe Routes to School committee who spoke on the preference of option 2, Debbie Norman, Mrs. Lopez, Susana Martinez and Maria Gonzalez.

Action: Motion to approve 1) consider and adopt Resolution No 2024-4982 approving the Salinas Valley Safe Routes to School Plan projects prioritized by the King City Steering Committee; and 2) direct staff to schedule implementation of these projects by Victoria seconded by DeLeon.

AYES: Council Members: LeBarre, DeLeon, Victoria, Cullen NOES: Council Members:

ABSENT: Council Members: Avalos
ABSTAIN: Council Members:

12. CITY COUNCIL CLOSED SESSION
None
ADJOURNMENT:

Mayor LeBarre adjourned the meeting at 6:27p.m.

Approved Signatures:

Mayor Mike LeBarre City Clerk, Erica Sonne
City of King City of King
Item No. 9(B)

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER
FEBRUARY 16 THROUGH FEBRARY 29, 2024
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 CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF APPOINTMENT TO THE PLANNING

COMMISSION
RECOMMENDATION:

It is recommended the City Council adopt a Resolution appointing Margarita Lopez to the Planning Commission.

BACKGROUND:

According to the Municipal Code, the Mayor, City Manager and Commission or Committee Chair shall recommend appointments. All appointments shall then be made by the City Council by resolution.

DISCUSSION:

There is currently a vacancy on the Planning Commission due to the resignation of Paulette Bumbalough, which was duly advertised. An application was received from Margarita Lopez, which is attached. The Mayor, City Manager and Chair have reviewed the application, interviewed the applicant, and recommended her appointment. Ms. Lopez meets the requirements of the Planning Commission membership. The term of Ms. Lopez’ appointment would expire in March 2025.

COST ANALYSIS:

There is no cost impact from the recommended action.

ENVIRONMENTAL REVIEW:

This matter 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

Item No. 9 (D)

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF SIDE LETTER OF AGREEMENT WITH

THE SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL
521
RECOMMENDATION:

It is recommended the City Council 1) approve and authorize the City Manager to execute a Fifth Side Letter of Agreement with the Service Employees International Union Local 521 (SEIU) to implement equity adjustments for certain classifications and extend the agreement to June 30, 2026; and 2) adopt a Resolution updating the Classification Plan to reflect the salary range change.

BACKGROUND:

The current MOU with SEIU took effect on July 1, 2022 and will expire on June 30, 2025. Staff recently completed an update of the salary comparison of all positions to other South Monterey County cities and found significant inequities for certain classifications. Therefore, it was determined that waiting until the next negotiation process to address these inequities would be damaging to the City’s goal of recruiting and maintaining quality staff.

DISCUSSION:

The side letter of agreement makes the following changes to the existing MOU:
• Extends MOU to June 30, 2026
• 14% equity adjustment for Public Works Maintenance Worker I and II, Maintenance Worker I and II/ Wastewater Services, Street Sweeper, and Senior Maintenance Worker classifications effective March 23, 2024

EXHIBIT 1

RESOLUTION NO. 2024-4985

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING
AMENDING THE CLASSIFICATION PLAN FOR FY 2023-24
WHEREAS, the City of King maintains job descriptions for each position and a Classification Plan that sets forth all existing job classifications and salary steps; and WHEREAS, adoption of an annual Classification Plan is required by CalPERS; and WHEREAS, the City Council desires to make changes to address existing inequities for certain positions.

NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of King approves amendments to the FY 2023-24 Classification Plan as set forth in Exhibit A.

This resolution was passed and adopted this 12th day of March, 2024 by the following vote:

AYES, Council Members:

NAYS, Council Members:

ABSENT, Council Members:

ABSTAIN, Council Members:

APPROVED:
___
Mike LeBarre, Mayor
ATTEST:

Erica Sonne, City Clerk
APPROVED AS TO FORM:

Roy Santos, City Attorney
EXHIBIT 2

Item No. 9 (E)

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF RESOLUTION AMENDING THE FAÇADE

ENHANCEMENT GRANT PROGRAM GUIDELINES
RECOMMENDATION:

It is recommended the City Council adopt a Resolution amending the Façade Enhancement Grant Program guidelines to increase the eligible funding amounts.

BACKGROUND:

At the January 24, 2017 meeting, the City Council adopted a Resolution establishing the Façade Enhancement Grant Program. This program is a key element of the City’s economic development program targeting improvements in the downtown area. Under the program, businesses and property owners in the downtown area are eligible for grants up to $15,000 per business. Up to $2,500 can be used for replacement of outdated and non-conforming signs. An additional $12,500 can be used for other facade improvements, including:
• Repair, replacement, removal or installation of awnings; • Modification of doors and windows;
• Exterior painting and decorative treatments;
• Other facade improvements deemed to contribute to improving the retail streetscape environment.

The program was originally limited to only the 300 block of Broadway Street, but it has been modified over time to include other blocks in the downtown area. The program has been very successful in helping to beautify and revitalize the downtown area.

RESOLUTION NO. 2024-4986

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING
AMENDING THE FAÇADE IMPROVEMENT GRANT PROGRAM
WHEREAS, the City Council has adopted a Downtown Streetscape Conceptual Plan establishing proposed improvements to Broadway Street from First Street to San Lorenzo Street; and
WHEREAS, the Downtown Streetscape project has been deemed as the critical first step in the City’s overall economic development efforts; and WHEREAS, the Downtown Streetscape Conceptual Plan includes proposed enhancements to facades and buildings in the downtown area; and WHEREAS, enhancing the appearance of the downtown area has been deemed important to creating a successful commercial environment that will benefit the community by attracting visitors, increasing businesses, creating jobs, and increasing City revenues for public services and improvements; and
WHEREAS, façade improvement grants have been deemed necessary to make improvements to downtown properties economically feasible for local business and property owners; and
WHEREAS, the City Council established a Façade Improvement Grant Program in 2017 that provides grants up to a maximum amount of fifteen thousand dollars ($15,000.00) per business for improvements to building facades in the downtown area, including replacement of outdated or non-conforming signs, repair, replacement, removal or installation of awnings, modification of doors and windows, exterior painting and decorative treatments, and other facade improvements deemed to contribute to improving the retail streetscape environment; and WHEREAS, the Façade Improvement Grant Program has implemented improvements that will benefit the entire community by creating a downtown area where residents can enjoy walking, shopping, and eating, that will promote a stronger sense of community and community pride, and will provide economic benefits to King City citizens; and WHEREAS, the award of grants are approved by the City Manager and amounts are based upon established criteria designed to meet the City’s Downtown Streetscape Conceptual Plan and overall economic development goals; and
WHEREAS, inflation costs for building improvements have made it more difficult to implement the quality of improvements desired through the grant program at this time; and WHEREAS, the City’s Downtown area consists largely of a small businesses with disadvantaged owners that are unable to afford the improvements determined beneficial to attract more customers in order to make the business successful and employ more workers; and
WHEREAS, the City Council desires to modify the Façade Enhancement Program to increase the results and impacts of the improvements on the quality of life for the community.

CC Resolution No. 2024-4986

Page 2 of 2 ends

01222.0001/325812.1
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of King hereby approves amending the Façade Enhancement Grant Program that will provide grants up to a maximum amount of twenty thousand dollars ($20,000.00) per business and twenty-five thousand dollars ($25,000) per business for buildings where two sides of the building are visible from the street.

BE IT FURTHER RESOLVED that up to seven thousand, five hundred dollars ($7,500) of the grant can be used for signage.

BE IT FURTHER RESOLVED that the grants will be limited for improvements to building facades on Broadway Street from First Street to San Lorenzo Avenue, including replacement of outdated or non-conforming signs, repair, replacement, removal or installation of awnings, modification of doors and windows, exterior painting and decorative treatments, and other facade improvements deemed to contribute to improving the retail streetscape environment.

BE IT FURTHER RESOLVED that the award of grants shall be approved by the City Manager in amounts determined based upon established criteria designed to meet the goals of City’s Downtown Streetscape Conceptual Plan, size of the building, cost of improvements, amount of overall improvements to the façade and structure, quality and cost effectiveness, overall economic development goals, and the availability of budgeted funds.

This resolution was passed and adopted this 12th day of March, 2024 by the following vote:

AYES, Council Members:

NAYS, Council Members:

ABSENT, Council Members:

ABSTAIN, Council Members:

APPROVED:
_________________________
Mike LeBarre, Mayor
ATTEST:
__________________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:
____________________________
Roy Santos, City Attorney
Item No. 9 (F)

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER

5.30 OF TITLE 5 OF THE KING CITY MUNICIPAL CODE

REGARDING PUBLIC TRANSIT VEHICLES
RECOMMENDATION:

It is recommended the City Council waive the second reading by title only and adopt an Ordinance amending Chapter 5.30 of Title 5 of the King City Municipal Code pertaining to permit requirements for public transit vehicles.

BACKGROUND:

Monterey Salinas Transit (MST) is interested in expanding taxi service to South Monterey County cities to increase transportation options for residents. They administer a Taxi Voucher Program, which offers subsidized taxi fares for older adults, veterans, and persons with disabilities. It is funded through Measure Q, a 1/8 cent countywide sales tax that funds transportation programs.

Many King City residents qualify for the program, but they’ve been unable to participate due to the lack of taxi operators in South County even though King City residents are paying for a portion of the program costs. Yellow Cab has expressed an interest in expanding their services to South County, which could finally enable eligible King City residents to participate in the future.

MST operates the Monterey County Regional Taxi Authority (MCRTA), which permits, approves rates, and inspects vehicles for taxi companies in all the jurisdictions in Monterey County except for the South Monterey County cities. Staff are recommending the City Council adopt an Ordinance that would exempt taxi companies and drivers from the City’s permit process if they have already completed the MCRTA requirements to streamline the process. The Ordinance was introduced by the City Council at the February 27, 2024 meeting.

CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 5.30 OF TITLE 5

OF THE KING CITY MUNICIPAL REGARDING PUBLIC TRANSIT VEHICLES MARCH 12, 2024
PAGE 2 OF 3
DISCUSSION:

The City’s public transit permit process is similar to those that have been established in many cities. However, they have become outdated because they were developed prior to the introduction of Uber service when taxi companies were much more prevalent and competitive.

Staff are concerned that the taxi company will no longer be interested in serving South County if they are required to complete a lengthy permitting process for each individual jurisdiction. In addition, since King City is a small jurisdiction, it does not have in-house mechanics and is not equipped to provide vehicle inspections. This service is provided to the MCRTA by the City of Monterey. Therefore, the purpose of the recommended Ordinance is to help promote taxi service in King City by simplifying the permitting process, make the process more efficient by reducing duplication, and reduce workload and costs for the City.

Staff inquired with MST about the option of joining the MCRTA. They are reluctant to propose that because of the process and associated costs involved. If the City joined the MCRTA, it would have representation on their Board of Directors.

However, given the limited service involved, staff have not identified any major benefits of joining if it is opposed by the MCRTA. Staff believe that the Ordinance will enable the City to benefit from the MCRTA services without the need for membership and representation. The option of requesting consideration of membership could always be reconsidered in the future if any issues arise.

The City’s existing process requires all operators to submit an application with detailed information on each vehicle. Permits are issued by the City Council following a public hearing. Each driver must obtain a permit issued by the City Manager. Vehicles are subject to inspections at any time by the Chief of Police.

Rates for all vehicles are also set by City Council following a public hearing.

Under the provisions of the Ordinance, public transit operators and drivers will be exempt from the City permitting, rate and inspection requirements if they have a valid permit issued by the MCRTA. All other Municipal Code requirements will still apply. They will be required to apply for and maintain a City business license, which will be revoked if they violate any of the other Municipal Code provision.

COST ANALYSIS:

There is no direct cost from the proposed action.

ORDINANCE NO. 2024-825

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
KING, CALIFORNIA, AMENDING CHAPTER 5.30 OF TITLE 5 OF

THE KING CITY MUNICIPAL CODE, PUBLIC TRANSIT

VEHICLES
WHEREAS, the City of King (“City”) is authorized by the California Constitution, Article XI, Section 7 to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and
WHEREAS, the City regulates public transit vehicles operating within the City to protect public health, welfare and safety; and
WHEREAS, the Monterey County Regional Taxi Authority administers and enforces comparable regulations on behalf of a portion of Monterey County; and WHEREAS, the City Council desires to coordinate with the Monterey County Regional Taxi Authority on the regulation and oversight of taxicab services in order to reduce attract increased transit services to the City in order to increase mobility for the public.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KING FINDS AND ORDAINS AS FOLLOWS:

SECTION 1. The above recitals are all true and correct and are hereby adopted as findings.

SECTION 2. The Ordinance is exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3).) Further, the adoption and implementation of this Ordinance is not a project, as defined in CEQA Guidelines section 15378, because it has no potential for resulting in physical change to the environment, either directly or indirectly, and is therefore not subject to environmental review under CEQA pursuant to CEQA Guidelines section 15060(c)(3).

SECTION 3. The Sub-Section of Chapter 5.30, Section 5.30.020 of the King City Municipal Code is hereby amended to read as follows; all other portions of Chapter 5.30 remain in full force and effect:

Section 5.30.020 Permit Required
(a) No person shall operate or cause to be operated within the city any public transit vehicle owned or controlled by such person without first obtaining a permit pursuant to the provisions of this chapter and thereafter maintaining such permit in full force and effect with the exception of taxicab owners and drivers who have been issued and maintained in full force and effect a valid taxicab permit by the Monterey County Regional Taxi Authority. (b) Any such person operating under a valid Monterey County Regional Taxi Authority permit shall be exempt from requirements set forth in this chapter for issuance of a city permit, 01222.0001/903428.1 -2-
vehicle inspections and rates charged, but shall be required to comply with all regulations and requirements set forth as conditions of the permit issued by the Monterey County Regional Taxi Authority while operating within the city, including the rates charged and regular inspections conducted by the Monterey County Regional Taxi Authority. Any such person authorized to operate public transit services without a City permit under the exemption set forth in this subsection shall comply with all other provisions set forth in this chapter regarding the operation of public transit vehicles within the city and shall be required to apply for, obtain and maintain in full force and effect a city business license prior to operation within the city. Failure to comply with any regulations or requirements for operation of a public transit vehicle set forth by the city or Monterey County Regional Taxi Authority shall be grounds for revocation of the business license and termination of future operation within the city.
.

SECTION 4: EFFECTIVE DATE.

This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption. Within fifteen (15) calendar days after its adoption, the Ordinance, or a summary of the Ordinance, shall be published once in a newspaper of general circulation.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the _____ day of _________________ 2024, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________ 2024, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
ERICA SONNE, City Clerk

CITY OF KING
By:

MIKE LEBARRE, Mayor
01222.0001/903428.1 -3-
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 Ordinance passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.

Item No. 9(G)

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT

DIRECTOR
RE: CONSIDERATION OF AN AMENDMENT TO THE RIVERBED

WILDFIRE PREVENTION PLAN CONSULTANT SERVICES

AGREEMENT
RECOMMENDATION:

It is recommended the City Council 1) approve an amendment to the executed Consultant Services Agreement with EMC for additional services involving public outreach of the Riverbed Wildfire Prevention Plan; 2) authorize the City Manager to approve change orders up to an additional $4,272.50.

BACKGROUND:

In 2022, the City was granted a $224,000 grant from the State of California Department of Forestry and Fire Protection (“Cal Fire”) – Office of the State Fire Marshal to prepare a Riverbed Wildfire Prevention Plan (“Plan”). Of the $224,000 grant, $190,000 was allocated specifically for the contract services of preparation of the Plan.

On September 26, 2023, the City Council approved and authorized a consultant services agreement with EMC for the preparation of the Riverbed Wildfire Prevention Plan for $180,315. EMC’s proposed cost was less than the amount allocated ($190,000) for consultant services.

Work on the Riverbed Wildfire Prevention Plan is under way. The stakeholder kick-off meeting was held in October 2023 with representatives from Cal Fire, the Resource Conservation District of Monterey County and the Monterey County Water Resources Agency. The second stakeholder meeting was held in November 2023 and a field trip was conducted in December 2023. The archaeologist has begun work on the environmental document, the Tribal Consultation letters (AB

CITY COUNCIL

CONSIDERATION OF AMENDMENT TO THE RIVERBED WILDFIRE

PREVENTION PLAN CONSULTANT SERVICES AGREEMENT
MARCH 12, 2024
PAGE 2 OF 3
52) have been mailed out and the archeologist will be in contact with the Native American Tribes before writing the cultural resources mitigations. A Community Meeting was conducted on February 28th.

In the process of preparation for the upcoming public community workshops, additional services will be needed to facilitate the public outreach component, including various mail distributions. EMC has agreed to provide additional services to help with notification as part of public outreach, so an amendment to their Agreement is being recommended.

DISCUSSION:

More than 700 notices, including noticing property owners and businesses within the Study Area, were mailed for the February 28th Community Workshop. The process of preparing the mailing list and mailing notices takes considerable time.

The amended services will include noticing and distribution of materials for 3 upcoming community workshops. In the event that additional work is needed during this process, staff is recommending that the remaining budgeted amount of $4,272.50 be added under Section 2.3 Additional Services of the Contract Agreement (Exhibit 2) to cover miscellaneous items that may arise.

COST ANALYSIS:

The amended services will increase the original contract amount of $180,315 to $185,727.50. The cost is still within the allocated contract services budget of $190,000. Therefore, there will be no financial impact to the City’s General Fund.

In no event shall the services exceed the $190,000 grant budget amount.

ENVIRONMENTAL REVIEW:

Pursuant to CEQA, this matter is not a “project” for the purposes of CEQA Guidelines Section 15378 as there is no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. In the alternative, the City has also performed a preliminary environmental assessment of this project pursuant to CEQA and, pursuant to CEQA Guidelines Section 15061(b)(3), there is no possibility that this matter may have a significant impact on the environment because the action is to authorize a contract to write a Riverbed Fire Prevention Plan.

February 21, 2024
Doreen Liberto, AICP, MDR
Community Development Director
City of King
212 South Vanderhurst Avenue
King City, CA 93930
Re: King City Riverbed Wildfire Prevention Plan – Contract Amendment Request #1

UPDATED
Dear Doreen,
Per your request, EMC Planning Group is submitting this contract amendment request to provide additional noticing and distribution tasks associated with the City’s Riverbed Wildfire Prevention Plan. Specifically, this request covers additional time and materials costs to assist City staff with producing and distributing public noticing materials for up to three (3) community meetings associated with the project. Our original scope and budget assumed City staff would address these tasks internally.

Additionally, per City staff request, we have reached out to Julia Hernandez to provide Spanish translation services at three (3) community meetings (two hours each). We have included her cost for services (at an hourly rate of $65) in this request. Ms. Hernandez will serve as a subconsultant to EMC Planning Group for purposes of this request and per direction from City staff.

EXHIBIT 1
Doreen Liberto
King City
February 21, 2024, Page 2
Attached is a budget spreadsheet which summarizes the anticipated costs associated with this contract amendment request. Please let me know if you have any questions after reviewing this request. We greatly appreciate the opportunity to work with City staff on this critical planning endeavor!
Sincerely,
Stuart Poulter, AICP, MCRP
Senior Planner
Attachment – Contract Amendment Request #1 Budget Spreadsheet Task
Staff Senior
Planner Graphics Production
Manager
Admin./
Production
Billing Rate (Per Hour) $195.00 $140.00 $125.00 $115.00 Three (3) Community Meetings - Noticing and Distribution 4.0 2.0 4.0 12.0 22.0 $2,940.00 Subtotal (Hours) 4.0 2.0 4.0 12.0 Total Hours Total Cost Subtotal (Cost) $780.00 $280.00 $500.00 $1,380.00 22.0 $2,940.00 Additional Costs
Production Costs
Travel Costs
Postal/Deliverables
Miscellaneous
Administrative Overhead 15%
Total
Subconsultant Fees
Julia Hernandez (Translation Services for Community Meetings) Subconsultant Overhead 15%
Total
Total Costs
NOTE: This proposal is valid for 90 days
King City Riverbed Wildfire Prevention Plan - Contract Amendment #1 EMC Planning Group Inc.

Total Cost Total
Hours
$0.00
$2,472.50
$322.50
$650.00
$0.00
$1,500.00
$390.00
$5,861.00
$58.50
$448.50

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF KING AND EMC PLANNING GROUP INC.

This First Amendment to the Professional Services Agreement (“First Amendment”) is made and entered into this ____ day of March, 2024, by and between the CITY OF KING, a California municipal corporation (“City”) and EMC Planning Group, LLC (herein “Consultant”) effective __________________.

RECITALS
WHEREAS, the City previously entered into a Professional Services Agreement (“Agreement”) effective September 27, 2023 with Consultant for the creation of the Riverbed Wildfire Prevention Plan (“Plan”); and
WHEREAS, in the process of preparation of the Plan and upcoming public community workshops additional services are needed to facilitate the public outreach components of the Plan; and
WHEREAS, the Agreement sets forth provisions regarding additional services, however, the scope of work must remain within the allocated grant budget amounts; and WHEREAS, the City and Consultant wish to amend the Agreement to allow for the additional services required for the public outreach components of the Plan.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the City and Consultant hereby agree as follows:

AGREEMENT

1. Compensation: Section 2.1 increase contract sum amount from $180,315 to $186,176.

2. Additional Services Section 2.3 any further increases shall not exceed 2% of the new contract sum ($186,176) but not to exceed $3,824.00.

3. Full Force and Effect. Except as set forth hereinabove, all terms and conditions of this the Agreement as amended shall remain in full force and effect.

IN WITNESS WHEREOF, the City has duly executed this Amendment on the day and year first above written.

DATED: _______________ CITY OF KING
By: ________________________________
Steven Adams, City Manager
EXHIBIT 2
ATTEST:
__________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
__________________________
Roy C. Santos, City Attorney
CONSULTANT:

By:

Michael Groves, Consultant
01222.0005/966550.1

Item No. 9 (H)

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT DIRECTOR RE: CONSIDERATION OF AN EXTENTION OF TIME FOR CONDITIONAL USE PERMIT CASE NO. 210-091, ARCHITECTURAL REVIEW PERMIT CASE NO. P21-000-005, LANDSCAPING PERMIT CASE NO. L21-000- 001, AND SIGN PERMIT CASE NO. SN2-100-001 FOR GROCERY
OUTLET PROJECT AT 1023 BROADWAY STREET
RECOMMENDATION:

It is recommended the City Council adopt a Resolution granting a one-year extension for the Grocery Outlet project at 1023 Broadway Street.

BACKGROUND:

On March 15, 2022, the Planning Commission approved applications for the Grocery Outlet store to be located at 1023 Broadway Street (APN 026-391-025) and proposed by Best Development Group, LLC. Figure 1 shows the Project location. (Reference Exhibit 1 – Planning Commission Staff Report and Attachments). On March 30, 2022, Efrain Aguilera, UFCW Local 5, (“Appellant”) submitted an appeal of the Planning Commission decision. On April 22, 2022, the City Council upheld the Planning Commission approval.

On May 20, 2022, litigation was filed by Efrain
Aguilera (a member of UFCW Local 5) and
Working Families of Monterey County
(“Petitioners”) in the Superior Court of California,
Monterey County. On June 15, 2023, the
Monterey Superior Court entered judgment
rejecting each of Petitioners’ CEQA claims and
denying the First Amended Petition in its entirety
and ruled in favor of the City. Petitioners then
filed an appeal on July 14, 2023, which is
currently pending before the Court of Appeal for
the State of California Sixth Appellate District. It
is anticipated that the appellant court will hear

CITY COUNCIL

CONSIDERATION OF A RECOMMENDATION FROM THE PLANNING COMMISSION TO PROVIDE AN EXTENTION OF TIME FOR CONDITIONAL USE PERMIT CASE NO. 210-091, ARCHITECTURAL REVIEW PERMIT CASE NO. P21-000-005, LANDSCAPING PERMIT CASE NO. L21-000-001, AND SIGN PERMIT CASE NO. SN2- 100-001 FOR GROCERY OUTLET PROJECT AT 1023 BROADWAY STREET MARCH 12, 2024
PAGE 2 OF 4
01222.0005/966550.1
the appeal in Spring 2024. Condition of Approval No. 2 provided a two-year approval period for the project. On February 22, 2024, the applicant submitted a request for a oneyear extension of time. On March 5, 2024, the Planning Commission considered the request and recommended the City Council grant a one-year extension of time.

DISCUSSION:

The Grocery Outlet development was approved by the City Council on April 22, 2022 on appeal of the Planning Commission March 15, 2022 approval. Condition of Approval No. 2 states:

Approval Periods
• CUP: The approval period for the CUP shall be in accordance with the approved drawings and sketches and shall be valid for two (2) years from the date of approval.

If a building permit has not been issued within this time period, the CUP expires.

Extensions may be granted in 12-month increments and may not exceed a total of three years from the original date of expiration unless otherwise permitted by law.

The request for an extension application must be submitted to the City prior to the expiration date. (See Municipal Code section 17.64.30.) • Architectural Review: If construction in accordance with the permit has not commenced within one year after the date of the approval, then the approval shall immediately expire and any building permit issued in reliance thereon shall be deemed canceled and revoked. The permit may be extended for up to six months if application for an extension is: 1) made before the expiration of the initial one-year approval; 2) approved by the Planning Commission or committee; and 3) approved by the Council. (See Municipal Code sections 17.50.050 and 17.50.060.) • LPR: If construction in accordance with the landscape plan has not commenced within one year after the date of the approval, then the approval shall immediately expire and any building permit issued in reliance thereon shall be deemed canceled and revoked. The LP may be extended for up to six months if application for an extension is: 1) made before the expiration of the initial one-year approval; 2) approved by the Planning Commission or committee; and 3) approved by the Council. (See Municipal Code sections 17.50.17, 17.50.050, and 17.50.060.) • Sign Permit: The approval of the sign permit shall expire 12 months from the date of approval. The applicant may apply for an extension, and prior to the expiration

CITY COUNCIL

17.55.40(j)(1).)
Municipal Code section 17.64.30 allows a twelve-month extension of time for a conditional use permit beyond the initial 2-year approval period. The other approved applications (i.e., AR, LPR, SP) have different extension time periods. Under State case law there is not an automatic expiration of entitlements, and the developer must be afforded an opportunity to demonstrate that progress is being made on all applications and have a good faith intent to presently commence upon the proposed use. Despite the litigation which has held up the construction of Grocery Outlet, the developer has made progress and been working on construction plans, intends to submit a building permit in May 2024, and intends to commence the proposed use. On February 22, 2024, the applicant submitted a request for a one-year extension of time. On March 5, 2024, the Planning Commission considered the request and recommended the City Council grant a one-year extension of time.

Findings of Fact
The Findings of Fact and the basis for an extension of time of the entitlements for the Project are included in the attached Resolution, marked as Exhibit 2, which is incorporated by reference. All findings can be made to extend the time for the entitlements for the Project.

COST ANALYSIS:

The applicant is paying for the cost to process the appeal and the extension request.

ENVIRONMENTAL REVEIW:

This project has already been fully environmentally assessed when it was approved and no further action is required under the California Environmental Quality Act (CEQA).

ALTERNATIVES:

The following alternatives are provided for City Council consideration:

1. Adopt Resolution No. 2024-4988, approving a one-year extension of time;

2. Deny the extension of time;

EXHIBIT 1

01222.0005/966552.1
RESOLUTION NO. 2024-2024-4988

A RESOLUTION OF THE CITY COUNCIL OF KING CITY GRANTING A ONE-YEAR EXTENSION OF TIME FOR CONDITIONAL USE PERMIT CASE NO. 210-091, ARCHITECTURAL REVIEW PERMIT CASE NO. CASE NO. P21-000-005, LANDSCAPING PERMIT CASE NO. L21-000-001, AND SIGN PERMIT CASE NO. SN2-100-001 FOR THE GROCERY OUTLET PROJECT AT 1023 BROADWAY STREET
WHEREAS, on February 22, 2023, the City of King received a request from Best Development Group for a one-year extension of time for Conditional Use Permit Case No. 210- 091, Architectural Review Permit Case No. P21-000-005, Landscaping Permit Case No. L21-000- 001, and Sign Permit Case No. SN2-100-001 (collectively “Permits”) with a previously adopted CEQA Categorical Exemption for Grocery Outlet project at 1023 Broadway Street (collectively “Project”); and
WHEREAS, the Planning Commission (“Commission”) approved the Project on March 15, 2022; and
WHEREAS, on March 30, 2022, Efrain Aguilera, on behalf of UFCW Local 5, appealed the Commission’s decision to the Council; and
WHEREAS, on April 22, 2022, the City Council (“Council”) denied the appeal and approved the project; and
WHEREAS, given pending litigation challenging the approval of the project the applicant has submitted a request for an extension for all entitlements; and WHEREAS, the Commission reviewed and considered the request and all relevant material for a time extension for the Project at its regular meeting on March 5, 2024; and WHEREAS, the Commission recommended the City Council grant a one-year extension for the entitlements for the Grocery Outlet project.

WHEREAS, the City Council now desires to grant a one-year extension for the Permits.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of King as follows:

SECTION 1. Findings of Time Extension. The City Council finds that the extension of the Permits is warranted, including findings and grounds for the same as follows:

1. The City Council finds that the applicant has made a good faith effort to exercise the Permits and has established those circumstances beyond the control of the applicant have prevented development of the Project.

Basis for Finding: On May 20, 2022, litigation was filed by Efrain Aguilera (a member of UFCW Local 5) and Working Families of Monterey County (“Petitioners”) in the Superior Court of California, Monterey County. On June 15, 2023, the Monterey Superior Court entered judgment rejecting each of Petitioners’ CEQA claims and denying the First Amended Petition in its entirety and ruled in favor of the City. Petitioners then filed an appeal on July 14, 2023, which is currently pending before the Court of Appeal for the State of California Sixth Appellate District. The litigation by third parties has caused a delay for the developer outside of the developer’s control and has inhibited the ability to EXHIBIT 2
01222.0005/966552.1
develop the property. At this point, the developer intends to finish construction plans and submit for a building permit by May 1, 2024.

2. The City Council finds that there have been no changes in the conditions of the circumstances of the site or development.

Basis for Finding: The City Council has reviewed the proposed time extension and determined there have been no changes in the conditions or circumstances of the site or development that will prevent the proposed project to move forward with a building entitlement and construction in the next year.

SECTION 2. Time Extension Granted. The City Council approves a one-year time extension for Conditional Use Permit Case No. 210-091, Architectural Review Permit Case No. P21-000- 005, Landscaping Permit Case No. L21-000-001, and Sign Permit Case No. SN2-100-001 subject to the following:

A. All previously approved conditions of approval are applicable and shall remain in force and affect.

B. This one-year time extension shall expire on March 12, 2025, unless a building permit is obtained, and work has commenced.

This resolution was passed and adopted this 12th day of March, 2024 by the following vote:

AYES, Council Members:

NAYS, Council Members:

ABSENT, Council Members:

ABSTAIN, Council Members:

REPORT TO THE CITY COUNCIL
DATE: MARCH 12, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF AMENDMENT TO FY 2023-24 AND FY
2024-25 MAJOR PRIORITY BUDGET GOALS
RECOMMENDATION:

It is recommended the City Council approve by motion an amendment to the major priority budget goals for FY 2023-24 and FY 2024-25.

BACKGROUND:

The first step in the City’s budget process is to establish budget goals and priorities which are used to develop budget recommendations. These include major citywide priority goals and department operation goals. Establishment of major citywide priority goals is part of an attempt to target the City's efforts on a few critical areas in order to more effectively make important progress. They provide direction to staff on where to direct discretionary revenues and/or resources that become available.

The following major priority goals were approved by the City Council at the January 10, 2023 meeting for the current budget period:
• Maintain existing service levels and programs and complete existing priority projects.
• Repair and upgrade City facilities, street and wastewater infrastructure. • Plan and obtain grant funding for sustainability and resiliency projects. • Expand community outreach efforts.
• Promote and facilitate the development of increased housing units.

CITY COUNCIL
CONSIDERATION OF AMENDMENT TO FY 2023-24 AND FY 2024-25 MAJOR

PRIORITY BUDGET GOALS
MARCH 12, 2024
PAGE 2 OF 3
• Begin the process or begin to reserve funding for a comprehensive upgrade of the Municipal Code.

Staff recommends making a minor modification to these items to reflect current efforts.

DISCUSSION:

The updated major priority goals are as follows:
• Maintain existing service levels and programs and complete existing priority projects.
• Expand services and programs to eliminate violence.
• Repair and upgrade City facilities, street and wastewater infrastructure. • Plan and obtain grant funding for sustainability and resiliency projects. • Promote and facilitate the development of increased housing units.

At the time the budget was first prepared, the Police Department was fully staffed, salary inequities had been addressed, and all components of the Comprehensive Plan to End Youth Violence had been implemented. Therefore, while public safety is always a priority, it was not identified as a priority at that time for additional funding. Since that time, an increase in crimes has been experienced and efforts to maintain full staffing have become more challenging due to a shortage of qualified officers in the profession. Two positions were identified as a priority in the Unfunded Priority Needs Plan. The recent shooting now has significantly escalated the urgency and importance of these proposed positions.

At the same time, the City has made progress on a plan to update the Municipal Code by creating a part-time Planner position. In addition, budget constraints forced the City to eliminate a proposed new Community Engagement position which has impacted the capability to expand community outreach. Therefore, these items are recommended to be eliminated as major priority goals in the current budget cycle, although they remain a focus for the City utilizing existing resources.

Item No.11(A)

THE AFFORDABLE HOUSING SUSTAINABLE COMMUNITIES GRANT

BETWEEN CHISPA AND THE CITY OF KING FOR THE MILLS RANCH

AFFORDABLE HOUSING PROGRAM
RECOMMENDATION:

It is recommended the City Council authorize the Public Works Director/City Engineer to sign the attached Transit Service Agreement.

BACKGROUND:

On August 30, 2005, the City Council (Council) approved the Mills Ranch Specific Plan (Specific Plan), and Mills Ranch Design Manual. To comply with the City’s Inclusionary Housing Ordinance, the project included 15% inclusionary housing for low- households.

This required the project provide 60 affordable housing units. On September 1, 2005, the Council entered the Mills Ranch Affordable Housing Program Agreement (Agreement) which allowed the developer to provide 10% or at least 40 units, as affordable housing onsite. The remaining 5% obligation was met by providing $605,000 to the County Housing Authority to rehab Leo A. Meyer Senior Plaza.

Five parcels were identified in the Specific Plan for 40 or more affordable housing units.

The Community Housing Improvement System and Planning Association, Inc. (CHISPA) will be constructing the affordable housing units. To help fund the Mills Ranch Affordable Housing Project, CHISPA is applying for an Affordable Housing Sustainable Communities (AHSC) Grant. As part of the AHSC Grant, points are added for community transportation and equity projects that are administered by the local government. The attached Agreement identifies the City projects that will be funded by the AHSC Grant. Since the City Manager lives within 500 feet of the Project, the Public Works Director/City Engineer will sign the Agreement, if authorized by the City Council.

CITY COUNCIL
MARCH 12, 2024

CONSIDERATION OF A TRANSIT SERVICE AGREEMENT AS PART OF THE

AFFORDABLE HOUSING SUSTAINABLE COMMUNITIES GRANT BETWEEN

CHISPA AND THE CITY OF KING FOR THE MILLS RANCH AFFORDABLE HOUSING

PROGRAM
PAGE 2 OF 3
01222.0005/966550.1
DISCUSSION:

The Affordable Housing Sustainable Communities (AHSC) Program provides grant funding to projects seeking to integrate low-carbon transportation and affordable housing, with an emphasis on providing benefits to disadvantaged and low-income communities.

AHSC Program funds are allocated through a competitive process, based on the merits of the application to support a sustainable housing development that expands and improves transit, walking, and biking infrastructure, providing opportunities to reduce Vehicle Miles Traveled (VMT) by supporting connectivity between housing and destinations to bring about reduction of Greenhouse Gas (GHG) emissions. The scoring criteria is divided by three broad categories, with additional subcategories, for a total of 100 points. Points are also provided for Anti-Displacement Projects. If the AHSC Grant is awarded funds will be provided from CHISPA to the City to implement transportation project and anti-displacement project. The deadline for submitting the AHSC Grant is March 19, 2024 and the Agreement needs to be attached to the application.

Table 1 identifies the two City projects.

Table 1
Type of Fund Purpose Amount
Anti-Displacement
Program
Provide funding for permanent
supportive housing rental subsidies
and startup rental assistance.
$300,000
Sustainable
Transportation
Infrastructure (STI) and
Transit Related Amenities
(TRA)
Build a 2.2-mile bike/pedestrian
path to be located on Metz Rd, 1st
St, S 1st St. Beech St, King St, N
2nd St
$3,000,000
The attached Agreement is between CHISPA and the City and provides the terms of the City accepting funding for the items listed in Table 1.

COST ANALYSIS:

Funding will come from the AHSC Grant, if awarded to CHISPA.

60031090.1
01222.0001/967253.1

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF KING AND COMMUNITY HOUSING IMPROVEMENT

SYSTEMS AND PLANNING ASSOCIATION, INC (CHISPA) FOR THE

CONSTRUCTION OF SUSTAINABLE TRANSPORTATION INFRASTRUCTURE AND

TRANSPORTATION RELATED AMENITIES FOR MILLS RANCH, A SCATTERED SITE DEVELOPMENT AT 164 LEGACY DRIVE, 260 LEGACY DRIVE, 147 ERMOSA WAY, 235 ERMOSA WAY, 691 BRANDYWINE LANE KING CITY, CA 93930
This Memorandum of Understanding (Agreement) is entered into this 12th day of MARCH 2024 by and between the City of King, a municipal corporation (City), and CHISPA, INC (Developer).

RECITALS
WHEREAS, the State of California, the Strategic Growth Council (SGC), and the Department of Housing and Community Development (HCD) issued a Notice of Funding Availability dated January 19, 2024 (the AHSC NOFA), under the Affordable Housing and Sustainable Communities (AHSC) Program established under Division 44, Part 1, Chapter 2 of the Public Resources Code, commencing with Section 75200; and WHEREAS, Developer is applying for AHSC Funds in response to the AHSC NOFA to provide funding for (A) construction of the affordable housing development, a Scattered Site development: addresses listed at the top of the page, in the City of King, California (the AHD); (B) the construction of certain housing related infrastructure (the HRI Improvements) (C) the construction of certain sustainable transportation infrastructure (the STI Improvements, i.e. bike/pedestrian path); (D) the construction of certain transit related amenities (the TRA Improvements, i.e. landscaping and Irrigation along bike/pedestrian path); and (E) certain costs related to ongoing programming (the AHSC Programs). These improvements are described in more detail in the Final Application to be submitted by March 19, 2024 (collectively, the AHSC Application); and WHEREAS, the AHSC Application seeks an award to the Developer in an aggregate amount as set forth herein and in Exhibit A, consisting of: (A) up to $8,000,000 of a combination of AHSC loan Funds for a permanent loan (AHSC Loan) which will be disbursed to a limited partnership CHISPA Mills Ranch, L.P., for construction of the Affordable Housing Development, and (B) AHSC grant funds which shall be used for the purpose of reimbursing the cost of the HRI Improvements; and (C) up to $3,300,000 of the AHSC grant funds for the purpose of reimbursing the cost of the STI and TRA Improvements (see Exhibit A). The AHSC grants shall be referred to collectively as the AHSC Grants. The AHSC Loan and the AHSC Grants are collectively referred to herein as the AHSC Financing; and
WHEREAS, the City and Developer are required to enter into an Agreement in order to comply with the specific AHSC Program Threshold Requirement stated the 2024 AHSC Program Guidelines dated December 14, 2023, and subsequent technical EXHIBIT 1
60031090.1
01222.0001/967253.1
amendments which allows applicants to demonstrate the requisite transportation experience by using the past experience of work completed of a non-applicant locality so long as the applicant provides an executed agreement with the non-applicant locality for the completion of the related work in the AHSC Application for which funding is sought.

The purpose of this Agreement is to comply with the Transportation City Prior ExperienceThreshold Requirement; and
WHEREAS, the City is a non-applicant, but will perform STI Improvements and TRA Improvements included in the AHSC Application (collectively, the Transit Obligations) as set forth in this Agreement and in Exhibit A; and WHEREAS, the City can demonstrate prior experience and provide evidence of at least two prior projects that are similar in scope and size which have been completed during the ten years preceding March 19, 2024 as set forth in this Agreement and in Exhibit B; and NOW, THEREFORE, in consideration of the above recitals, which recitals are contractual in nature, the mutual covenants herein contained, and such other and further consideration as is hereby acknowledged, the parties agree as follows:

1. PARTICIPATING AGENCIES AND DESIGNATED CONTACT PERSONS City Representative: Octavio Hurtado, Public Works Director/City Engineer
Developer Representative: Dana Cleary
Director of Real Estate Development
295 Main Street, Suite 100
Salinas, CA 93901
(831) 682- 8016

2. ROLES, CONTRIBUTIONS, AND RESPONSIBILITIES
A. Upon full funding of the AHSC Grants, the City, as a non-applicant, will:
(i) Perform up to $3,300,000 worth of STI and TRA Improvements for the creation of a new, 2.2-mile bike/pedestrian path to be located on Metz Rd, 1st St, S 1st St.

Beech St, King St, N 2nd St included in the AHSC Application (collectively, the Transit Obligations) as set forth in Exhibit A. Demonstrate prior experience and provide evidence of at least two projects that are similar in scope and size which have been completed during the ten years preceding March 19, 2024, as set forth in this Exhibit B.
(ii) Assume responsibility for developing, constructing, and completing the STI And TRA Improvements, including, without limitation, any cost overruns that exceed the AHSC Grants allocated for completion of such work.
60031090.1
01222.0001/967253.1
(iii) Provide Developer every three months with copies of all requisitions for work related to their respective portions of the project, the notice of completion, and other documents related to their respective work that another party may reasonably request.

B. Developer will:
(iv) Assume financial responsibility for constructing and developing the AHD, the HRI Improvements, and the AHSC Programs (See Exhibit A), and for all costs and expenses related thereto.
(v) Enter into standard agreements, disbursement agreements, and regulatory agreements with HCD where Developer will be liable for the full and timely performance to complete the obligations set forth therein, including completion of the AHD, HRI and funding of the AHSC Programs, as described in the AHSC Application. The AHSC Application and all standard agreements required by HCD in connection with AHSC Financing shall be collectively referred to as “AHSC Documents.”
(vi) Abide by all requisite HCD grant administration regulations that specify indemnity, payment, performance schedules, and progress reports.

3. EFFECTIVENESS, DURATION AND TERMINATION
This Agreement shall be effective upon its complete execution by the parties’ authorized agents and shall terminate upon the earlier of (i) non-award of AHSC funds; (ii) Non- appropriation of City funds; (iii) completion of all obligations under the AHSC documents; or (iv) mutual written agreement of the parties hereto. Either party may terminate this Agreement with cause upon written notice to the other party following the other party’s failure to reasonably cure an event of nonperformance hereunder following thirty (30) days written notice thereof.

Termination shall be effective (the Effective Date of Termination) as of the date specified in said notice of termination. Upon such termination, all rights and obligations of each party under this Agreement shall cease as of the Effective Date of Termination, except for those specific obligations that shall survive termination as set forth herein.

4. RECORDKEEPING AND PERFORMANCE DATA
Each party shall keep and maintain proper records and documentation sufficient to substantiate its contributions hereunder and shall make such available for review and audit during normal operating hours upon the reasonable written request of the other party for a period of three years following expiration or earlier termination of this Agreement.
60031090.1
01222.0001/967253.1

5. COMPLIANCE WITH GOVERNING LAW
Each party shall comply with all federal, state, and local laws, rules, and regulations in its pursuit hereof. No party in its performance of this Agreement shall employ discriminatory practices on the basis of race, religious creed, color, national origin, ancestry, physicaldisability, mental disability, medical condition, marital status, sex, age, sexual orientation, and ethnicity, status as a disabled veteran or veteran of the Vietnam era.

6. CAPACITY OF CITY AND DEVELOPER
Each party is acting in an independent contractor capacity. Nothing in this Agreement and nothing in the course of dealings between the parties hereunder shall be deemed to create any fiduciary relationship, trust, partnership, joint venture, agency, or employment relationship, jointly and severally.

In addition, and without limitation, each party shall be solely responsible for all matters relating to payment of its employees, including, but not limited to, compliance with applicable social security withholding, workers’ compensation insurance, benefits and all other regulations governing such matters. Personnel supplied by City will not for any purpose be considered employees or agents of the Developer. The City assumes full responsibility for the actions of such personnel while they are performing services pursuant to this Agreement, and shall be solely responsible for their supervision, daily direction and control, payment of salary (including withholding of income taxes and social security), disability benefits and the like, as applicable. Conversely, personnel suppliedby Developer will not for any purpose be considered employees or agents of the City. Developer assumes full responsibility for the actions of such personnel while they are performing services pursuant to this Agreement, and shall be solely responsible for their supervision, daily direction and control, payment of salary (including withholding of income taxes and social security), disability benefits and the like, as applicable.

The City and Developer agree and acknowledge that their relationship is strictly and solely that of an independent contractor to each other. The City's employees and/or agents are not entitled to any employee benefits or insurance, including without limitation any health care, worker's compensation, unemployment, or disability benefits, to be provided by Developer. Developer agrees and acknowledges that Developer's employees and/or agents are not entitled to any employee benefits or insurance, including without limitation any health care, worker’s compensation, unemployment or disability benefits, to be provided by the City.

The parties further agree and acknowledge that each party is solely responsible for determining the method and means by which it will fulfill its obligations hereunder. Each shall be solely responsible for payment of all sales, use, or other taxes assessed against or associated with the performance of each party’s respective obligations or on the exercise of their rights under this Agreement, 60031090.1
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including without limitation income, payroll or employment-related taxes and payments.

Neither party shall engage any person or entity to serve in any capacity or incur any expense or obligation on behalf of the other without the prior written consent of both parties.

7. INDEMNIFICATION
To the full extent permitted by law, Developer agrees to indemnify, defend and hold harmless the City, its officers, employees 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 (1) this Agreement; (2) the receipt of the AHSC funds identified within this Agreement; and (3) the negligent performance of the work, operations or activities provided herein of Developer, its officers, employees, agents, subcontractors, invitees, or any individual or entity for which Developer is legally liable (“indemnitors”), or arising from Developer’s or indemnitors’ reckless or willful misconduct, or arising from Developer’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, except claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions. The City shall indemnify Developer 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 City’s negligence in the performance of this Agreement or the construction of the HRI improvements.

The indemnity obligation shall be binding on successors and assigns of Developer and shall survive termination or expiration of this Agreement.

8. INSURANCE
(a) Throughout the life of this Agreement, Developer will maintain its typical liability and builder’s risk insurance while constructing the Mills Ranch Apartments.

Throughout the life of this Agreement, the City will maintain its customary liability and builder’s risk insurance while constructing the STI and TRA improvements.

9. ATTORNEY’S FEES
If a party is required to commence any proceeding or legal action to enforce or interpretany term, covenant, or condition of this Agreement, the prevailing party in such 60031090.1
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proceeding or action shall be entitled to recover from the other party its/their reasonable attorney'sfees and legal expenses.

10. NOTICES
Any notice required or intended to be given to a party under the terms of this Agreement shall be in writing and shall be deemed to be duly delivered the earlier of (a) actual receipt by personal delivery to the representative (as defined herein), as the case may be, or inlieu of such personal service, by way of Federal Express, DHL, or other similar courier addressed to such party at the appropriate address set forth herein, (b) the date of receipt by facsimile to the City Representative or the Developer Representative, or (c) three business days after the date of mailing (postage pre- paid return receipt requested). Either party may change its address for the purpose of this Paragraph by giving written noticeof such change to the other.

11.BINDING
Once this Agreement is signed by all the parties, it shall be binding upon, and shall inureto the benefit of, the parties, and each party's respective heirs, successors, assigns, transferees, agents, servants, employees, and representatives. The terms and conditions of this Agreement, express or implied, exist only for the benefit of the parties to this Agreement, their respective successors and assigns. No other person or entity will be deemed to be a third-party beneficiary of this Agreement.

12.WAIVER
The waiver by any party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement.

No provisions of this Agreement may be waived unless in writing and approved by andsigned by all parties to this Agreement. Waiver of any one provision herein shall not bedeemed to be a waiver of any other provision herein.

No action or omission by either party shall constitute a breach of this Agreement unlessthe injured party first notifies the other party of the purported breach in writing setting forth the alleged breach or default and said party does not cure the same within a reasonable period of time. The payment of any fee or compensation or performance of any obligation hereunder by either party shall not constitute a waiver of any breach by the other party or of any of the rights and remedies which either party may have as a result of such breach. No waiver by either party of breach of the Agreement shall be implied from any failure by the other party to take action on account of such breach if such breach persists or is repeated. Waivers by either party of any covenant, term or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. 60031090.1
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13. GOVERNING LAW AND VENUE
This Agreement shall be governed by, and construed and enforced in accordance with,the laws of the State of California. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be the County of Monterey, California.

14.HEADINGS
The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify, or add to the interpretation or meaning of the provisions of this Agreement.

15.SEVERABILITY
The provisions of this Agreement are severable. The invalidity or unenforceability of any one provision in this Agreement shall not affect the other provisions.

16.INTERPRETATION
The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor or against any party, but rather by construing the terms in accordance with theirgenerally accepted meaning.

17. REPRESENTATIONS AND WARRANTIES
Each party hereby represents and warrants to the other party, and agrees, that it has the full power and authority to enter into this Agreement and perform each of its obligations hereunder, and it is legally authorized and has obtained all necessary regulatory approvals for the execution, delivery, and performance of this Agreement.
18 .ENTIRE AGREEMENT
It is mutually understood and agreed that the foregoing constitutes the entire Agreement between the parties. Any modifications or amendments to this Agreement must be in writing signed by an authorized agent of each party. 60031090.1
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[SIGNATURE PAGE TO FOLLOW]
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IN WITNESS THEREOF, the parties have caused their authorized agents toexecute this Agreement as of the date first set forth above:

CITY OF KING
A California municipal corporation
By: _______________________
Name: Octavio Hurtado
Title: Public Works Director/City Engineer
Date: ___________________________
CHISPA, INC.

By: _________________________
Name: Dana Cleary
Title: Director of Real Estate Development
Date: ___________________________
APPROVED AS TO FORM:

NAME:
____________________________
Roy C. Santos, City Attorney
ATTEST
Name:
________________________________
Erica Sonne
City Clerk
Attachments:

Exhibit A — Scope of Work
Exhibit B — City of King Prior Experience of Similar Projects Completed 60031090.1
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EXHIBIT A
Scope of Work
Responsible
Party
Type of Funds Amount of
Funds Purpose Estimated Date
of Completion
Developer AHSC Affordable
Housing Development
Loan and Housing
RelatedInfrastructure
Grant
Not to exceed
$8,000,000
Construction of
Affordable
Housing
Development
and Housing
Related
Infrastructure on
and around
housing site
5 years from
date of AHSC
award
City of King Sustainable
Transportation
Infrastructure (STI) and
Transit Related
Amenities (TRA)
Not to exceed
$ 3,300,000
Construction of a
new, 2.2-mile
bike/pedestrian
path to be
located on Metz
Rd, 1st St, S 1st
St. Beech St,
King St, N 2nd St
(See Map on last
page)
5 years from
date of AHSC
award
City of King Anti-Displacement $300,000 Provide funding for permanent
supportive
housing rental
subsidies and
startup rental
assistance.
5 years from
date of AHSC
award
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EXHIBIT B
City’s Prior Experience of Similar Projects Completed During the Ten Years Preceding

1. San Antonio Road Class IV Bike Lanes
The City of King installed class IV bike lanes on San Antonio Road from Broadway Street to Mildred Avenue, and on Broadway Street from San Antonio Avenue to San Lorenzo Avenue. The length of the project is 7,500 feet.

2. Mildred Avenue Class II Bike Lanes
The City of King installed class II bike lanes on Mildred Avenue from Broadway Street to San Antonio Avenue. The bike lanes were installed on both sides of Mildred Ave. The length of the project is 3,000 feet.

3. Division Street Class II Bike Lanes
The City of King installed class II bike lanes on Division Street from First Street to Canal Street. The bike lanes were installed on both sides of Division Street. The length of the project is 3,700 feet.

Other Similar Projects we have worked on in the past 10 years. • San Antonio SRTS & Trail Project -----list type of bike path, separated • Division Street Bike Lane Project
• US 101 / San Antonio Roundabout-------including bike path • Downtown Streetscape Project (Broadway Bulbouts)
• Downtown Plaza Park (Vanderhurst)
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King City City CouncilMarch 12, 2024

King City City Council
March 12, 2024