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Agenda packet, regular meeting, first session

King City City Council
July 9, 2024

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Agenda packet, regular meeting, first session
Meeting
July 9, 2024
Body
King City City Council
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3
Original file
12.0 MB
Text extracted from the city's file for reading and search. Open the original on www.kingcity.com. That file is the official record.

AGENDA

REGULAR MEETING OF THE

CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF

THE RDA FOR THE CITY OF KING
TUESDAY JULY 9, 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.

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.

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
Small Business Development Center Update - Roger Gilbert, Monterey County Business Council

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 agendaThe Council will listen to all communications; howeverin compliance with

1. 2.

3. 4.

5. A.

6. Small Business Development Center Update - Roger Gilbert, Monterey County Business Council

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 June 25, 2024, Council Meeting Recommendation: approve and file.
9(A) 06-25-2024 MINUTES_.PDF
Consideration: City Of King Check Register June 16, Through June 30, 2024 Recommendation: receive and file.
9(B) STAFF REPORT CC CITY AP 070924.PDF
Consideration: Award Of Contract For Annual Tree Trimming Services Recommendation: award and contractor services agreement for two years of annual tree trimming services to Tope's Tree Service, Inc. in the amount of $144,000. 9(C) 2024-07-09 AWARD OF CONTRACT FOR TREE TRIMMING SERVICES CLEAN COPY (002).PDF
Consideration: Amendment 1 To Contract Services Agreement For City Attorney Services
Recommendation: approve and authorize the City AManager to exectue Amendment 1 to the legal services agreement for Aleshire & Wynder, LLP ("A&W") for City Attorney Services.

A.

6. 7.

8. 9.

A.

Documents:

B.

Documents:

C.

Documents:

D.

Documents:

Consideration: Amendment 1 To Contract Services Agreement For City Attorney Services
Recommendation: approve and authorize the City AManager to exectue Amendment 1 to the legal services agreement for Aleshire & Wynder, LLP ("A&W") for City Attorney Services.
9(D) CITY ATTORNEY CONTRACT AMENDMENT.PDF
Consideration: Participation In Additional National Opioid Settlements Recommendation: approve and authorize the City manager to execute any forms necessary to participate in the opioid settlement with Kroger Co. 9(E) OPIOIDS SETTLEMENTS.PDF
Consideration: Citizen Initiated Local Ballot Measure Process Recommendation: adopt a Resolution approving the deadlines and requirements for submittal of citizen initiated local ballot measures.
9(F) CITIZEN INITIATED LOCAL BALLOT MEASURE PROCESS STAFF REPORT.PDF

PUBLIC HEARINGS
Consideration: Community Development Block Grant (CDBG) Application Process And Possible Activities And Projects
Recommendation: 1) review the program and available funding options and staff recommendations; 2) open the public hearing; 3) receive public comment regarding the Community Development Block Grant (CDBG) program and possible activities and projects to be considered for funding under the upcoming NOFA process; 4) close the public hearing; 5) discuss potential applications; 6) consider recommendations; and 7) direct staff to prepare for Council consideration a CDBG application. 10(A) CDBG PUBLIC HEARING.PDF
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 5, 2024, An Ordinance Relating To Increasing And Extending The Transaction And Use Tax And Expenditures Therefrom
Recommendation: It is recommended the City Council: 1) waive reading of title of Resolution No. 2024-5001 and Ordinance No. 2024-828 and adopt a Resolution submitting to City voters at the next regular election to be held on November 5, 2022 a ballot measure to adopt an Ordinance approving an increase and extension of the sales tax to 1.5% for 12 years and approval of the Ordinance attached thereto which will also be submitted to the voters; and 2) adopt Resolution No. 2024-5002 approving the ballot argument in favor of the local sales tax measure. 10(B) SALES TAX INCREASE STAFF REPORT.PDF
Consideration: An Ordinance Amending Chapter 736 Of Title 7 Of The King City D.

Documents:

E.

Documents:

F.

Documents:

10. A.

Documents:

B.

Documents:

C
approving the ballot argument in favor of the local sales tax measure. 10(B) SALES TAX INCREASE STAFF REPORT.PDF
Consideration: An Ordinance Amending Chapter 7.36 Of Title 7 Of The King City Municipal Code Pertaining To Graffiti Removal
Recommendation: introduce to be read by title only an Ordinance amending provisions of Chapter 7.36 of Title 7 of the King City Municipal Code pertaining to graffiti removal, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve the introduction of the Ordinance. 10(C) GRAFFITI REMOVAL ORDINANCE.PDF

REGULAR BUSINESS
Consideration: Downtown Plaza Mural
Recommendation: 1) approve the selection of the mural design for the Downtown Plaza Project; and 2) approve and authorize the City Manager to execute an Agreement with La Neta Murals, LLC for creation of the mural in a form approved by the City Attorney.
11(A) MURAL ARTIST AGREEMENT.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.

Confernce With Legal Council - Regarding Commencing Litigation Pursuant To Government Code Section 54956.9. Cases: 1

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

C.

Documents:

11. A.

Documents:

12. A.

13.

Page 1 of 3 ends

City Council Meeting
June 25, 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 absent, Council members Oscar Avalos.

City Staff: Acting City Manager Chief James Hunt; City Attorney Roy Santos (remotely); City Clerk, Erica Sonne.

3.__FLAG SALUTE:

The flag salute was led by Fire Chief Nichols.

4. CLOSED SESSION ANNOUNCEMENTS:

None

5.__SPECIAL PRESENTATIONS:

A. Recognition of Russ Nichols for retirement as King City Fire Chief by Mayor LeBarre presenting him with a plaque and proclamation.

6. PUBLIC COMMUNICATIONS:

None

7. COUNCIL COMMUNICATIONS:

Council Member DeLeon stated he had nothing to report this evening.

Council Member Avalos stated he had nothing to report this evening.

Mayor Pro Tem Victoria stated he attended the Mayor’s Block Party for District 2, and it was a nice event.

Mayor LeBarre thanked Teresita Garcia for all her hard work on the block party and everyone who helped.

8. CITY STAFF REPORTS AND COMMENTS:

Acting City Manager Chief Hunt stated Officer Cody Hughes and Officer Michael Hernandez are done with FTO program and patrolling on solo. Thursday Officer Salazar and Hernandez will graduate the academy and starting FTO next week.

City Attorney Santos had nothing to report tonight.

9. CONSENT
A. Consideration: Meeting Minutes of June 11, 2024, Council Meeting B. Consideration: City of King Check Register June 1, through June 15, 2024 C. Consideration: FY 2024-25 Job Classification Plan
D. Consideration: Side Letter of Agreement With the Service Employees International Union 9(A)

Page 2 of 3 ends

Local 521
E. Consideration: Confirmation of Election of King City Volunteer Fire Department Officers and Engineers
Recommendation: 1) approve confirmation of the election of the following 2024-25 King City Volunteer Fire Department Officers; 2) approve appointment of the following Chief Engineer and First Assistant Engineer; and 3) approve confirmation of other following engineer positions:
• Chief: Matthew Owens
• First Assistant Chief: Michael Hearne
• Second Assistant Chief: John Nuno
• Secretary/Treasurer: Mark Phillips
• Chief Engineer: Steve Rianda
• First Assistant Engineer: George Young
• Second Assistant Engineer: Ty Caulk
• Third Assistant Engineer: Robert Eddington
• Fourth Assistant Engineer: Mark Silveira
• Fifth Assistant Engineer: Joseph Kerr
• Sixth Assistant Engineer: Carlos Perez, Jr.
• Seventh Assistant Engineer: Izzy Silva
F. Consideration: Application for Mutual of Omaha Dental and Vision Insurance Plan G. Consideration: Annual Grid Assure Agreement for Fiscal Year 2024-25 with Surveillance Grid Integration, Inc. for the Service and Maintenance of the Citywide Security Camera Network Mayor LeBarre pulled item E
Action: Motion to approve consent agenda items A-D and F&G by Avalos seconded by Victoria.

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

ABSENT: Council Members: Cullen
ABSTAIN: Council Members:

Action: Motion to approve consent agenda items E by Victoria seconded by DeLeon.

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

ABSENT: Council Members: Cullen
ABSTAIN: Council Members:

10. PUBLIC HEARINGS:

A. Consideration: Riverview Gardens Landscape Maintenance District Annual Assessment for Fiscal Year 2024-25
Finance Director Mike Howard introduced this item. In April included in the updated CPI and the Actual CPI is 3.76.

Mayor LeBarre opened the Public Hearing, seeing no one come forward, Mayor LeBarre closed the public hearing.

Page 3 of 3 ends

Action: Motion to adopt Resolution No. 2024-4998 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 by Avalos seconded by DeLeon.

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

ABSENT: Council Members: Cullen
ABSTAIN: Council Members:

11. REGULAR BUSINESS
A. Consideration: Adjustments to the FY 2024-25 Budget
Finance Director Mike Howard introduced this item.

Action: Motion to adopt 1) approve the recommended adjustments to the FY 2024-25 Budget; and 2) adopt a Resolution establishing the appropriation limit from tax proceeds for FY 2024-25 by Victoria seconded by Avalos.

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

ABSENT: Council Members: Cullen
ABSTAIN: Council Members:

12. CITY COUNCIL CLOSED SESSION
None
ADJOURNMENT:

Mayor LeBarre adjourned the meeting at 6:25p.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: JULY 9, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER JUNE
16 THROUGH JUNE 30, 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: JULY 9, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OCTAVIO HURTADO, PUBLIC WORKS DIRECTOR / CITY

ENGINEER
RE: CONSIDERATION OF AWARD OF CONTRACT FOR ANNUAL

TREE TRIMMING SERVICES
RECOMMENDATION:

It is recommended City Council award a contract services agreement for two years of annual tree trimming services to Tope’s Tree Service, Inc. in the amount $144,000.

BACKGROUND:

The City maintains approximately 2,100 trees, a majority of which are trees 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. City staff has previously completed some level of tree trimming work however, due to a limited size of the City’s Public Works Department maintenance crew and the increasing maintenance needs at other facilities has necessitated the reliance on private tree trimming firms.

In Fiscal Year 2021/2022, the City Council allocated $90,000 for contract services 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. In FY 2022/23, tree trimming in the southwest (SW) quadrant of the City was completed and in 2023/24 tree trimming in the northwest (NW) quadrant of the City was completed. The goal is to complete trimming of all City street trees on a four-year cycle with a quadrant of the city completed each year.

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 9
th day of July, 2024 (“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 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 EXHIBIT 3
01222.0006/459106.1
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. (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. 01222.0006/459106.1
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 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. 01222.0006/459106.1

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.

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 01222.0006/459106.1
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, 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 01222.0006/459106.1
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, 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
2024 & 2025 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
2024 & 2025 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
2024 & 2025 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- 2024 STREET TREE TRIMMING- SOUTHEAST (SE) 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
2024 & 2025 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- 2025 TREE TRIMMING - NORTHEAST (NE) 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 2024 Street Tree Trimming $240.00 $72,000.00
300 EA 2025 Street Tree Trimming $240.00* $72,000.00

TOTAL:
$144,000.00*
II. *- The Contract will be allowed to increase the per tree unit cost in Phase II in 2025, no more than the exact amount of the Annual Average cost of living increase (CPI) for 2024 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 August 5, 2024, and conclude before Thursday, October 31, 2024. 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 7, 2025 and conclude before Friday, October 31, 2025. 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
2024 & 2025 Tree Trimming Services
Contractor’s Certificate Regarding Worker’s Compensation Description of Contract:

City of King
2024 & 2025 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 (D)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF AMENDMENT 1 TO CONTRACT

SERVICES AGREEMENT FOR CITY ATTORNEY SERVICES
RECOMMENDATION:

It is recommended the City Council approve and authorize the City Manager to execute Amendment 1 to the legal services agreement for Aleshire & Wynder, LLP (“A&W”) for City Attorney Services.

BACKGROUND:

At the January 24, 2017 meeting, the City Council approved a contract with A&W for City Attorney services, which was later amended in 2018. A new contract was approved in 2021, which designates Roy Santos as the City Attorney, Shannon Chaffin as the Assistant City Attorney and Michelle Sassano as the Deputy City Attorney. The current contract also included an annual CPI adjustment capped at three percent and effective on July 1st beginning in 2022.

They have recently requested an amendment to the contract to address future rates, which is recommended. The Amendment 1 is attached for City Council consideration.

DISCUSSION:

The CPI has not been able to keep pace with the rising costs of providing legal service for the City of King. The rates proposed by A&W are comparable, and in some cases, lower than rates currently being charged by Monterey County Counsel’s Office and other law firms providing legal services within Monterey County. In an effort to reduce the fiscal impact upon the City, A&W has agreed to maintain the current 2024 litigation rates for all pending litigation involving the City, Shangri-la and HCD, until those cases are resolved.

Based on the annual CPI adjustment, the hourly rates for legal services in 2024 are as follows:

CITY COUNCIL
CONSIDERATION OF AMENDMENT 1 TO CONTRACT SERVICES

AGREEMENT FOR CITY ATTORNEY SERVICES
JULY 9, 2024
PAGE 2 OF 3

CLASSIFICATION

HOURLY RATES
Current 2024 Rates
General Services $201.00 for first 40hrs; and
$211 for all hours thereafter
Special Services $237.00 Blended Rate
Litigation Services $221.00 Associates; and
$258.00 Partners
Reimbursable Services $288.00 Associates; and
$309.00 Partners
Insurance Defense/Risk
Management
$221.00 Associates; and
$258.00 Partners
Bond/Financial Services
$361.00 Attorney;
$155.00 Paralegal; and
$72.00 Document Clerk
Paralegal/law clerk $129.00
Document Clerk $67.00
The hourly rates for legal services proposed in Amendment 1 are as follows:

CLASSIFICATION

HOURLY RATES
Proposed July 1, 2024 Rates
General Services $245.00 Associates; and
$265.00 Partners
Special Services $250.00 Associates; and
$290.00 Partners
Litigation Services $250.00 Associates; and
$290.00 Partners
Reimbursable Services $350.00 Associates; and
$400.00 Partners
Insurance Defense/Risk
Management
$250.00 Associates; and
$290.00 Partners
Bond/Financial Services
$400.00 Attorney;
$165.00 Paralegal; and
$70.00 Document Clerk
Paralegal/law clerk $165.00
Document Clerk $105.00
Lastly, A&W is proposing an amendment to the CPI adjustment in order to avoid large rate increases in the future. The CPI adjustment would remove the three percent cap and replace it with a CPI or minimum adjustment of $10.00 per hour.

Exhibit 1
01222.0001/988389.1 1

AMENDMENT ONE TO THE CONTRACT SERVICES AGREEMENT FOR

CITY ATTORNEY SERVICES CITY OF KING
This AMENDMENT ONE TO THE CONTRACT SERVICES AGREEMENT FOR CITY ATTORNEY SERVICES (the “Amendment”) is effective as of the ___ day of June, 2024, by and between the law firm of ALESHIRE & WYNDER, LLP, a California limited liability partnership (“A&W”), and the CITY OF KING (“KING CITY” OR “City”), a municipal corporation.

Whereas, the City and A&W previously entered into an agreement for City Attorney legal services, which was executed on February 9, 2021; and
Whereas, the Parties now wish to amend the previously executed agreement; NOW, THEREFORE, the Parties hereby agree and amend the previously entered into Contract Services Agreement for City Attorney Service entered into on February 9, 2024, as follows:

4. PERSONNEL
A&W will provide the following additional attorneys to render the predominate legal services hereunder:

Roy C. Santos City Attorney/Agency Counsel
Michelle Sassano Assistant City Attorney
Shannon L. Chaffin Deputy City Attorney
Assignments may be modified as provided in Section 1 above and except as so provided, A&W will exercise its discretion to utilize whichever attorney(s) (and staff) it determines to be best suited to its rendition of legal services under this Agreement, consistent with the competent and efficient rendering of legal services, and with a view toward rendering such services in an economically efficient manner.

5. COMPENSATION
A&W’s fees will be charged on an hourly basis for all time actually expended. The compensation schedules are set forth herein:

CLASSIFICATION

HOURLY RATES
July 1, 2024
General Services $245.00 Associates; and
$265.00 Partners
Special Services $250.00 Associates; and
$290.00 Partners
Litigation Services $250.00 Associates; and
$290.00 Partners
Reimbursable Services $350.00 Associates; and
$400.00 Partners
Exhibit 1
01222.0001/988389.1 2
Insurance Defense/Risk
Management
$250.00 Associates; and
$290.00 Partners
Bond/Financial Services
$400.00 Attorney;
$165.00 Paralegal; and
$70.00 Document Clerk
Paralegal/law clerk $165.00
Document Clerk $105.00
The hourly rates for the currently pending litigation involving the City, Shangri-la and the State of California Department of Housing and Community Development shall remain at the June 2024 hourly rates until completion of the litigation; however, any new litigation involving these parties shall be subject to the July 2024 hourly litigation rates established within this Amendment.

The hourly rates of the attorneys at A&W are reviewed annually and, when appropriate, adjusted to reflect increases in expertise as well as other appropriate factors. Such increases are made on an annual basis, effective as of the beginning of each fiscal year. While the hourly rates for services rendered by individual A&W attorneys may be adjusted as set forth herein, the “rates” established in this Agreement shall not be adjusted except as provided herein, and only upon the approval of the City Council.

Commencing July 1, 2025, and every fiscal year thereafter, A&W rates may adjust by the greater of either the relevant local CPI increase over the prior twelve (12) month period, rounded to the nearest dollar or ten ($10.00) per hour whichever is higher. Further, the relevant local CPI shall be set by the Consumer Price Index (“CPI”) for Western Region All Urban Consumers as published by the United States Government Bureau of Labor Statistics. A&W reserves the right to waive and/or delay implementation of any rate adjustment as established pursuant to this Amendment.
///
///
///
///
///
///
///
///
///
Exhibit 1
01222.0001/988389.1 3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date of execution by the City.

Dated: June __, 2024 “CITY”
CITY OF KING, a municipal corporation
By:

Mike LeBarre, Mayor
ATTEST
Erica Sonne, City Clerk
Dated: June __, 2024 “ALESHIRE & WYNDER, LLP”
By:

Shannon L. Chaffin, Esq.

Item No. 9 (E)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF PARTICIPATION IN ADDITIONAL

NATIONAL OPIOID SETTLEMENTS
RECOMMENDATION:

It is recommended the City Council approve and authorize the City Manager to execute any forms necessary to participate in the opioid settlement with Kroger Co.

BACKGROUND:

At the December 14, 2021 meeting, the City Council approved participating in national opioid settlements, which included McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation (“Distributors”) and Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (“Manufacturer”). The settlements totaling $26 billion were designed to bring needed relief to people who have struggled with opioid addiction. Cities were provided the option of participating and receiving a portion of the funds distributed through the State of California, participating and allocating the funds to the County, or not participating. At the February 28, 2023 meeting, the City Council then approved participating in additional settlements with Teva, Allergan, CVS, Walgreens and Walmart.

Staff recently received a notification regarding an additional settlement reached with Kroger Co. The deadline to opt in for this settlement is August 12, 2024.

DISCUSSION:

Staff has set up a portal with the settlement administrators and the City received a number of small annual payments that will continue over an 18-year period.

Funds must be used for activities to: 1) address the misuse and abuse of opioid products; 2) treat or mitigate opioid use or related disorders; or 3) mitigate other

Item No. 9 (F)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
TO: CITY COUNCIL
FROM: ERICA SONNE, CITY CLERK
RE: CONSIDERATION OF CITIZEN INITIATED LOCAL BALLOT

MEASURE PROCESS
RECOMMENDATION:

It is recommended the City Council adopt a Resolution approving the deadlines and requirements for submittal of citizen initiated local ballot measures.

BACKGROUND:

On June 10, 2024 the City Clerk received a Notice of Intent to Circulate Petition from one of the citizens of King City wishing to establish a Mixed-Light Cannabis Cultivation Tax in King City. The City having 15 days to respond sent a letter from the City Attorney’s office stating that the proposed ballot initiative provided to the City Clerk was deemed incomplete after review. On June 20, 2024 the citizen resent the Notice of Intent to Circulate Petition with the suggested changes and the correct date of signature as well, which is being processed.

The City is responsible for a portion of the process in placing the measure on the ballot, but some of the steps don’t have deadlines specified in the State Elections Code, by the County Elections Office, or in the Municipal Code. Therefore, staff is proposing the Council adopt a Resolution establishing the final deadline for submittal so it can be communicated to the person filing the petition.

DISCUSSION:

Any proposed ordinance may be submitted to the legislative body of the City by a petition filed with the elections official.

A Summary of the initiative process is as follows:

CITY COUNCIL

CONSIDERATION OF CITIZEN INITIATED LOCAL BALLOT MEASURE

PROCESS
JULY 9, 2024
PAGE 2 OF 4

1. The first step is to file a Notice of Intent to circulate a petition with the City Clerk's office along with a filing fee of $200. The Notice of Intent should be accompanied by a letter, which should include the address of the proponents, requesting the City Attorney prepare a ballot title and summary.

The Notice of Intent may include a statement not more than 500 words setting forth the reasons for the proposed petition.

2. The City Clerk submits this Notice of Intent to the City Attorney's office who then provides a ballot title and summary. This Notice should include a cover letter including the proponents’ names and addresses requesting the City Attorney’s office prepare the ballot title and summary.

3. The City Clerk gives this ballot title and summary back to the proponents of the initiative and the proponents have it published in the Rustler in the Legal Notice Section.

4. The proponents prepare and print the petitions using the ballot title and summary and following the format prescribed by the Elections Code. The proponents may submit the petition for review to the City Clerk’s office.

5. Once the proponents have received the affidavit of publication from the newspaper, the proponent files it within 10 days of publication with the City Clerk. Once the affidavit is filed, the proponents may begin gathering signatures.

6. The proponents must gather 15% of the registered voters in the City of King City as last reported to the Secretary of State; the City Clerk’s office will provide the total number when the Notice of Intent is filed.

7. The proponent has no more than 180 days from the date they receive the ballot title and summary to gather signatures.

8. Signatures are submitted to the City Clerk.

9. Once the signatures have been submitted to the City Clerk's office, the City Clerk’s office does a raw count, and then sends the petitions to the Registrar of Voters for signature verification. The Registrar conducts a sample count and projects how many valid signatures the petition has, which can typically take 30 days. If the Registrar projects that there are greater than 110% of the needed signatures, the petition is returned to the City Clerk for certification. If the Registrar projects less than 110% and more than 95%, the Registrar will move forward with verifying all of the

CITY COUNCIL

CONSIDERATION OF CITIZEN INITIATED LOCAL BALLOT MEASURE

PROCESS
JULY 9, 2024
PAGE 3 OF 4
signatures, which may take an additional 30 working days. If the Registrar predicts less than 95% of the signatures will be valid, the petition fails.

10. Once the petition is qualified with signatures, the City Clerk will certify to the sufficiency of the petition at the next City Council Meeting.

11. At the meeting at which the petition is certified as sufficient, the City Council may:
(a) Adopt the ordinance, without alteration, at the regular meeting at which the certification of the petition is presented, or within 10 days after it is presented.
(b) Submit the ordinance, without alteration, to the voters pursuant to Section 1405.
(c) Order a report pursuant to Section 9212 at the regular meeting at which the certification of the petition is presented. When the report is presented to the legislative body, the legislative body shall either adopt the ordinance within 10 days or order an election pursuant to subdivision (b).

Staff is recommending the City Council agree to consider the measure at the July 30th special meeting since the regular meeting was cancelled. The deadline for verification of signatures and submittal of materials is recommended to be 5:00 p.m. on July 18th because that will provide staff 5 business days to prepare and distribute the staff report and associated materials for City Council consideration, which is the minimal amount of time needed.

COST ANALYSIS:

It is estimated that the increased cost to the City will be $5,000 to $10,000.

ENVIRONMENTAL REVIEW:

Revenue measures are not considered a project for the purposes of CEQA and have 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. Approve staff’s recommendations;

Exhibit 1
Below are the sections of the Elections Code pertaining to initiatives for your reference:
9200.

Ordinances may be enacted by and for any incorporated city pursuant to this article. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9201.

Any proposed ordinance may be submitted to the legislative body of the city by a petition filed with the elections official of the legislative body, in the manner hereinafter prescribed, after being signed by not less than the number of voters specified in this article. The petition may be in separate sections, providing that the petition complies with this article. The first page of each section shall contain the title of the petition and the text of the measure. The petition sections shall be designated in the manner set forth in Section 9020. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9202.
(a) Before circulating an initiative petition in any city, the proponents of the matter shall file with the elections official a notice of intention to do so, which shall be accompanied by the written text of the initiative and may be accompanied by a written statement not in excess of 500 words, setting forth the reasons for the proposed petition. The notice shall be signed by at least one, but not more than three, proponents and shall be in substantially the following form:

Notice of Intent to Circulate Petition
Notice is hereby given by the persons whose names appear hereon of their intention to circulate the petition within the City of ____ for the purpose of ____. A statement of the reasons of the proposed action as contemplated in the petition is as follows:
(b) Any person filing a notice of intent with the elections official shall pay a fee to be established by the legislative body not to exceed two hundred dollars ($200) to be refunded to the filer if, within one year of the date of filing the notice of intent, the elections official certifies the sufficiency of the petition.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9202.5.

From the time materials pertaining to an initiative petition are filed pursuant to Section 9202 until the day after the elections official determines that the initiative petition does not contain the minimum number of signatures required, the day after the election at which the initiative measure is put before the voters, or the day after the proposed ordinance is adopted by the legislative body of the city after being submitted to the legislative body of the city pursuant to Section 9201, as applicable, the elections official shall do both of the following:
(a) Keep on file at his or her office the notice of intention, written text of the initiative, and written statement setting forth the reasons for the proposed petition, if any, that the proponents of the initiative measure filed with the elections official pursuant to Section 9202. (b) Furnish copies of the materials he or she is required to keep on file pursuant to subdivision (a) to any person upon request. The elections official may charge a fee to a person obtaining Exhibit 1
copies pursuant to this subdivision. The fee may not exceed the actual cost incurred by the elections official in providing the copies.
(Added by Stats. 2012, Ch. 240, Sec. 2. (AB 1851) Effective January 1, 2013.) 9203.
(a) Any person who is interested in any proposed measure shall file a copy of the proposed measure with the elections official with a request that a ballot title and summary be prepared.

This request shall be accompanied by the address of the person proposing the measure. The elections official shall immediately transmit a copy of the proposed measure to the city attorney.

Within 15 days after the proposed measure is filed, the city attorney shall provide and return to the city elections official a ballot title for and summary of the proposed measure. The ballot title may differ from any other title of the proposed measure and shall express in 500 words or less the purpose of the proposed measure. In providing the ballot title, the city attorney shall give a true and impartial statement of the purpose of the proposed measure in such language that the ballot title shall neither be an argument, nor be likely to create prejudice, for or against the proposed measure.
(b) The elections official shall furnish a copy of the ballot title and summary to the person filing the proposed measure. The person proposing the measure shall, prior to its circulation, place upon each section of the petition, above the text of the proposed measure and across the top of each page of the petition on which signatures are to appear, in roman type not smaller than 11 point, the ballot title prepared by the city attorney. The text of the measure shall be printed in type not smaller than 8 point. The heading of the proposed measure shall be in a boldface type in substantially the following form:

INITIATIVE MEASURE TO BE DIRECTLY SUBMITTED TO THE VOTERS The city attorney has prepared the following title and summary of the chief purpose and points of the proposed measure:
(Here set forth the title and summary prepared by the city attorney. This title and summary must also be printed across the top of each page of the petition whereon signatures are to appear.) (Amended by Stats. 2022, Ch. 887, Sec. 7. (SB 1360) Effective January 1, 2023.) 9204.

Any elector of the city may seek a writ of mandate requiring the ballot title or summary prepared by the city attorney to be amended. The court shall expedite hearing on the writ. A peremptory writ of mandate shall be issued only upon clear and convincing proof that the ballot title or summary is false, misleading, or inconsistent with the requirements of Section 9203. (Amended by Stats. 2002, Ch. 237, Sec. 2. Effective January 1, 2003.) 9205.

A notice of intention and the title and summary of the proposed measure shall be published or posted or both as follows:
(a) If there is a newspaper of general circulation, as described in Chapter 1 (commencing with Section 6000) of Division 7 of Title 1 of the Government Code, adjudicated as such, the notice, title, and summary shall be published therein at least once.

Exhibit 1
(b) If the petition is to be circulated in a city in which there is no adjudicated newspaper of general circulation, the notice, title, and summary shall be published at least once, in a newspaper circulated within the city and adjudicated as being of general circulation within the county in which the city is located and the notice, title, and summary shall be posted in three (3) public places within the city, which public places shall be those utilized for the purpose of posting ordinances as required in Section 36933 of the Government Code. (c) If the petition is to be circulated in a city in which there is no adjudicated newspaper of general circulation, and there is no newspaper of general circulation adjudicated as such within the county, circulated within the city, then the notice, title, and summary shall be posted in the manner described in subdivision (b).

This section does not require the publication or posting of the text of the proposed measure. (Amended by Stats. 2011, Ch. 248, Sec. 1. (SB 327) Effective January 1, 2012.) 9206.

Within 10 days after the date of publication or posting, or both, of the notice of intention and title and summary, the proponents shall file a copy of the notice and title and summary as published or posted together with an affidavit made by a representative of the newspaper in which the notice was published or, if the notice was posted, by a voter of the city, certifying to the fact of publication or posting.

If the notice and title and summary are both published and posted pursuant to subdivision (b) of Section 9205, the proponents shall file affidavits as required by this section made by a representative of the newspaper in which the notice was published certifying to the fact that the notice was published and by a voter of the city certifying to the fact that the notice was posted.

These affidavits, together with a copy of the notice of intention and title and summary, shall be filed with the elections official of the legislative body of the city in his or her office during normal office hours as posted.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9207.

The proponents may commence to circulate the petitions among the voters of the city for signatures by any registered voter of the city after publication or posting, or both, as required by Section 9205, of the title and summary prepared by the city attorney. Each section of the petition shall bear a copy of the notice of intention and the title and summary prepared by the city attorney.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9208.

Signatures upon petitions and sections of petitions shall be secured, and the petition, together with all sections of the petition, shall be filed within 180 days from the date of receipt of the title and summary, or after termination of any action for a writ of mandate pursuant to Section 9204, and, if applicable, after receipt of an amended title or summary or both, whichever occurs later.

Petitions and sections thereof shall be filed in the office of the elections official during normal Exhibit 1
office hours as posted. If the petitions are not filed within the time permitted by this section, the petitions shall be void for all purposes.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9209.

Each section shall have attached thereto the declaration of the person soliciting the signatures.

This declaration shall be substantially in the same form as set forth in Section 9022. (Amended by Stats. 2013, Ch. 278, Sec. 20. (SB 213) Effective January 1, 2014.) 9210.

The petition shall be filed by the proponents or by a person or persons authorized in writing by the proponents. All sections of the petition shall be filed at one time. Once filed, a petition section shall not be amended except by order of a court of competent jurisdiction.

When the petition is presented for filing, the elections official shall do all of the following:
(a) Ascertain the number of registered voters of the city last reported by the county elections official to the Secretary of State pursuant to Section 2187 effective at the time the notice specified in Section 9202 was published.
(b) Determine the total number of signatures affixed to the petition. If, from this examination, the elections official determines that the number of signatures, prima facie, equals or is in excess of the minimum number of signatures required, he or she shall accept the petition for filing. The petition shall be deemed as filed on that date. If, from this examination, the elections official determines that the number of signatures, prima facie, does not equal or exceed the minimum number of signatures required, the official shall not take further action. (Amended by Stats. 2018, Ch. 58, Sec. 10. (AB 3259) Effective January 1, 2019.) 9211.

After the petition has been filed, as herein provided, the elections official shall examine the petition in the same manner as are county petitions in accordance with Sections 9114 and 9115, except that for the purposes of this section, references to the board of supervisors shall be treated as references to the legislative body of the city. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9212.
(a) During the circulation of the petition, or before taking either action described in subdivisions (a) and (b) of Section 9215, the legislative body may refer the proposed initiative measure to a city agency or agencies for a report on any or all of the following:
(1) Its fiscal impact.
(2) Its effect on the internal consistency of the city’s general and specific plans, including the housing element, the consistency between planning and zoning, and the limitations on city actions under Section 65008 of the Government Code and Chapters 4.2 (commencing with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code.

Exhibit 1
(3) Its effect on the use of land, the impact on the availability and location of housing, and the ability of the city to meet its regional housing needs. (4) Its impact on funding for infrastructure of all types, including, but not limited to, transportation, schools, parks, and open space. The report may also discuss whether the measure would be likely to result in increased infrastructure costs or savings, including the costs of infrastructure maintenance, to current residents and businesses. (5) Its impact on the community’s ability to attract and retain business and employment. (6) Its impact on the uses of vacant parcels of land.
(7) Its impact on agricultural lands, open space, traffic congestion, existing business districts, and developed areas designated for revitalization.
(8) Any other matters the legislative body requests to be in the report. (b) The report shall be presented to the legislative body within the time prescribed by the legislative body, but no later than 30 days after the elections official certifies to the legislative body the sufficiency of the petition.
(Amended by Stats. 2017, Ch. 748, Sec. 5. (AB 765) Effective January 1, 2018.) 9213.

On or before April 1 of each odd-numbered year, the elections official of each legislative body shall file a report with the Secretary of State containing the following information:
(a) The number of municipal initiative petitions circulated during the preceding two calendar years which did not qualify for the ballot, and the number of these proposed initiatives for which reports were prepared pursuant to Section 9212.
(b) With respect to municipal initiative measures that qualified for the ballot in the preceding two calendar years, the number that were approved by the voters, and the number of these ballot measures for which reports were prepared pursuant to Section 9212. (c) With respect to municipal initiative measures that qualified for the ballot in the preceding two calendar years, the number that were not approved by the voters, and the number of these ballot measures for which reports were prepared pursuant to Section 9212. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9215.

If the initiative petition is signed by not less than 10 percent of the voters of the city, according to the last report of registration by the county elections official to the Secretary of State pursuant to Section 2187, effective at the time the notice specified in Section 9202 was published, or, in a city with 1,000 or less registered voters, by 25 percent of the voters or 100 voters of the city, whichever is the lesser number, the legislative body shall do one of the following:
(a) Adopt the ordinance, without alteration, at the regular meeting at which the certification of the petition is presented, or within 10 days after it is presented.

Exhibit 1
(b) Submit the ordinance, without alteration, to the voters pursuant to Section 1405. (c) Order a report pursuant to Section 9212 at the regular meeting at which the certification of the petition is presented. When the report is presented to the legislative body, the legislative body shall either adopt the ordinance within 10 days or order an election pursuant to subdivision (b).
(Amended by Stats. 2017, Ch. 748, Sec. 7. (AB 765) Effective January 1, 2018.) 9215.5.

The proponent of an initiative may withdraw the initiative at any time before the 88th day before the election, whether or not the petition has already been found sufficient by the elections official.
(Added by Stats. 2018, Ch. 155, Sec. 2. (SB 1153) Effective January 1, 2019.) 9216.

In cities having a mayor, or like officer, with the veto power, when the passage of an ordinance petitioned for by the voters is vetoed, the failure of the legislative body to pass the ordinance over the veto shall be deemed a refusal of the legislative body to pass the ordinance within the meaning of this article.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9217.

If a majority of the voters voting on a proposed ordinance vote in its favor, the ordinance shall become a valid and binding ordinance of the city. The ordinance shall be considered as adopted upon the date that the vote is declared by the legislative body, and shall go into effect 10 days after that date. No ordinance that is either proposed by initiative petition and adopted by the vote of the legislative body of the city without submission to the voters, or adopted by the voters, shall be repealed or amended except by a vote of the people, unless provision is otherwise made in the original ordinance.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9218.

Any number of proposed ordinances may be voted upon at the same election, but the same subject matter shall not be voted upon twice within any 12-month period at a special election under the provisions of this article.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9221.

If the provisions of two or more ordinances adopted at the same election conflict, the ordinance receiving the highest number of affirmative votes shall control. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9222.

Exhibit 1
The legislative body of the city may submit to the voters, without a petition therefor, a proposition for the repeal, amendment, or enactment of any ordinance, to be voted upon at any succeeding regular or special city election, and if the proposition submitted receives a majority of the votes cast on it at the election, the ordinance shall be repealed, amended, or enacted accordingly. A proposition may be submitted, or a special election may be called for the purpose of voting on a proposition, by ordinance or resolution. The election shall be held not less than 88 days after the date of the order of election.
(Amended by Stats. 2002, Ch. 371, Sec. 1. Effective January 1, 2003.) 9223.

Whenever any ordinance or measure is required by this article to be submitted to the voters of a city at any election, the elections official of the legislative body shall cause the ordinance or measure to be printed. A copy of the ordinance or measure shall be made available to any voter upon request.
(Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9224.

The enacting clause of an ordinance submitted to the voters of a city shall be substantially in the following form:
“The people of the City of ________ do ordain as follows:”. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
9226.

This article does not apply to any statewide initiative measure. (Enacted by Stats. 1994, Ch. 920, Sec. 2.)
RESOLUTION NO. 2024-5003

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING ESTABLISHING

THE DEADLINE FOR SUBMITTAL OF A PROPOSED ORDINANCE TO BE PLACED ON THE BALLOT FOR THE NOVEMBER 5, 2024 ELECTION
WHEREAS, Chapter 920, Section 2 of the State Elections Code sets forth provisions for submitting a proposed ordinance to the legislative body of the City by a petition filed with the election official; and
WHEREAS; the provisions require that the petition include a Notice of Intention referred to the City Attorney for preparation of a ballot title and summary, be circulated for signatures by the proponents, and the signatures be verified by the County Elections Office; and
WHEREAS, the petition is then certified as sufficient by the City Clerk and presented to the City Council to determine whether to submit the Ordinance without alteration to the voters; and
WHEREAS, the deadline for submitting a ballot measure to the County Elections Office for the November 5, 2024 ballot is August 9, 2024; and
WHEREAS, the State Elections Code and the County Elections Office do not establish a deadline for submittal of signatures for verification or submittal of the measure to the City for City Council consideration; and
WHEREAS, the City Council desires to establish the deadline for submittal of all completed materials to the City Clerk for preparation of City Council consideration in order to meet the County Elections Office deadline of August 9, 2024.

NOW, THEREFORE, the City Council of the City of King hereby resolves as follows:

SECTION 1. The foregoing recitals are true and correct and incorporated by reference.

SECTION 2. The last meeting scheduled for the City Council to consider a petition to place an Ordinance on the November 5, 2024 ballot is the Special Council Meeting on July 30, 2024.

SECTION 3. Verification of signatures and all required materials shall be submitted to the City Clerk no later than 5:00 p.m. on July 18, 2024 to provide sufficient time for the City Clerk to prepare certification of the sufficiency of the petition and staff report for City Council consideration.

SECTION 4. This resolution shall take effect upon adoption.

This resolution was passed and adopted this __ day of July 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 C. Santos, City Attorney
Item No. 10 (A)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK

GRANT (CDBG) APPLICATION PROCESS AND POSSIBLE

ACTIVITIES AND PROJECTS
RECOMMENDATION:

It is recommended the City Council: 1) review the program and available funding options and staff recommendations; 2) open the public hearing; 3) receive public comment regarding the Community Development Block Grant (CDBG) program and possible activities and projects to be considered for funding under the upcoming NOFA process; 4) close the public hearing; 5) discuss potential applications; 6) consider recommendations; and 7) direct staff to prepare for Council consideration a CDBG application.

BACKGROUND:

The purpose of this hearing is to receive public comment on possible applications, review the recommended projects to be considered, and receive information on other programs or projects that should be considered by other agencies, or citizens.

The State Department of Housing and Community Development (HCD) will publish a NOFA for the 2024 Non-Entitlement CDBG funds in the coming weeks/month, estimated in the amount of $44 Million. Eligible applicants may submit applications for CDBG funds under the NOFA. Although the “official” NOFA has not yet been released, to meet the application deadlines and requirements, staff are conducting the required outreach and public hearing to determine the best use of the funds.

Staff anticipates submitting an application under the 2024 NOFA (maximum of 3 activities but only one per category) and possibly an application for Program Income. Over the counter items (OTC) are those that are funded on a first come

CITY COUNCIL

CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

APPLICATION PROCESS AND POSSIBLE ACTIVITIES AND PROJECTS JULY 9, 2024
PAGE 2 OF 5
first served basis and are not ranked by competitive criteria. The eligible activities under the 2024 CDBG NOFA may include the following up to the maximum of $3,600,000:

Competitive Applications: ONE per jurisdiction
• Public Service (maximum grant of $300,000), for one service. Examples include childcare, health care, recreation programs, fair housing counseling, drug and alcohol abuse counseling and testing, homeless services, food bank, senior services, and nutrition services benefiting lowand moderate-income persons. • Planning and Technical Assistance (maximum grant of $300,000 for one study/plan). The product must show a connection to assisting with an eligible CDBG activity that, if implemented, meets a National Objective.

Completed planning documents are submitted to the State at the time of completion. The grants may require match; in the past a $5,000 cash match to be expended prior to expenditure of CDBG funds – the NOFA will outline this final amount. Examples include studies, analysis, data gathering, preparation of plans, and identification of action that will implement plans, NEPA and environmental plans.

OTC (Over The Counter) Projects/Programs – One program and/or one project TOTALING $3.3 million)
• Housing Programs (maximum grant of $1,500,000 – OTC Program):
➢ Homeownership Assistance Program: assistance with down-payment or closing costs.
➢ Housing Rehabilitation Program for Single Family Homes: include repairs and improvements of owner-occupied units.
• Business Assistance or Microenterprise Assistance (maximum grant of $1,500,000 for either Business Assistance or Microenterprise Assistance – OTC Program). Examples of Business Assistance include financing of working capital, furniture, equipment, and property repairs/improvements.

Examples of Microenterprise include business training, financing of working capital, furniture, equipment, and property repairs/improvements. • Public Infrastructure (maximum grant of $3,300,000 – OTC Project).

Provides funding for all construction, project implementation, design, federal compliance and overlay requirements, environmental and other soft costs related to the project. Projects may include water, sewer, storm drain, sidewalks, roadways, wells, water storage tanks and other public infrastructure systems.

CITY COUNCIL

CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

APPLICATION PROCESS AND POSSIBLE ACTIVITIES AND PROJECTS JULY 9, 2024
PAGE 3 OF 5
• Public Facility (maximum grant of $3,300,000 – OTC Project). Provides funding for project equipment, construction of community/senior centers, homeless facilities, park and recreation facilities, fire stations, fire equipment, health facilities, and other public facilities that meet the national objective of the program.

DISCUSSION:

The purpose of this public hearing is to solicit ideas and input from the general public, discuss staff recommendations and provide direction to staff on potential programs to include in the CDBG applications (NOFA and Program Income).

The application may include the following:

Maximum Award: $3,600,000
Maximum Activities: 2
Public Service: Up to $300,000 – not more than 1
Planning Grants: Up to $300,000 – not more than 1
OTC Activities: Up to $3,300,000 – may apply for 2
Other grant requirements include:
• Activities should address serious health & safety needs • Activities should primarily benefit lower income households (defined as at or below 80% of the median income)
• Applicants must demonstrate capacity to complete the project within the grant term (36 months)
• OTC projects and programs must be ready to bid or implement the program within 90 days of contract execution
• Single audit must be completed and submitted
• Housing Element must be up to date with HCD
• Sam.Gov registration must be active
Staff have reviewed alternatives that meet the requirements of the CDBG program. Based on staff’s internal discussion and initial outreach, it is recommended the City Council consider submittal of an application for $3.25 million for street resurfacing projects and landscaping improvements to the planting strips on the following streets:
• Luckett Street from San Lorenzo Street to Mildred Avenue • Talbot Street from Canal Street to Mildred Avenue
• San Lorenzo Street from Broadway Street to Division Street • Monte Vista Place from Talbot Street to Reich Street
• Vanderhurst Avenue from Broadway Street to Division Street

CITY COUNCIL

CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

APPLICATION PROCESS AND POSSIBLE ACTIVITIES AND PROJECTS JULY 9, 2024
PAGE 4 OF 5
• 7
th Street from Bassett Street to Division Street
• Park Place from the west end to the east end
• Fairview Drive from Park Place to Division Street
• Reich Street from Canal Street to San Lorenzo Street
• South Third Street from Broadway Street to Division Street These streets all represent City infrastructure among the streets in the poorest condition. They are all residential streets in the southern section of the community that include some of the City’s oldest and most underserved neighborhoods. The City has received extensive feedback from the community that City streets need to be improved. The City conducts a citywide public opinion survey every two years, and street repairs and improvements consistently score as one of the top priorities. The last survey in 2022 scored street repairs as the third highest priority, below only financial stability and public safety.

The City has funded the ProYouth HEART program as its public service activity in the past. However, additional funding has been obtained from the King City Union School District for that program, so the CDBG funding is not necessary at this time. In addition, CDBG can only be used for program expansion, and no expansions are proposed.

COST ANALYSIS:

The City’s grant consultant for CDBG, Adams Ashby Group, will be preparing the application at a cost of $3,000. If the application is awarded, the funding by the grant will cover all costs associated with implementation of the grant.

If the City Council chooses the street improvements as the proposed application, the estimated costs are as follows:

Construction
Luckett Street $150,811
Talbot Street $156,216
San Lorenzo Street $535,298
Monte Vista Place $116,216
Vanderhurst Avenue $642,751
7 th Street $312,776
Park Place $136,364
Fairview Drive $90,909
Reich Street $308,107
South Third Street $697,788
Construction Subtotal $3,147,236

Item No. 10 (B)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
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 5, 2024 AND AN

ORDINANCE RELATING TO INCREASING AND EXTENDING

THE TRANSACTION AND USE TAX AND EXPENDITURES

THEREFROM
RECOMMENDATION:

It is recommended the City Council: 1) waive reading of title of Resolution No. 2024-5001 and Ordinance No. 2024-828 and adopt a Resolution submitting to City voters at the next regular election to be held on November 5, 2022 a ballot measure to adopt an Ordinance approving an increase and extension of the sales tax to 1.5% for 12 years and approval of the Ordinance attached thereto which will also be submitted to the voters; and 2) adopt Resolution No. 2024- 5002 approving the ballot argument in favor of the local sales tax measure.

BACKGROUND:

The City of King experienced a serious financial crisis over the past two decades and accumulated a $5 million negative balance in its General Fund by 2016.

Since then, the City has implemented a number of strategies to pay off its debt, which was accomplished in 2021. The City’s budget has remained balanced for several years and it has now accomplished the goal of establishing a financial reserve. Meanwhile, other major priorities were funded, including increasing public safety and revitalizing the downtown.

However, there are still major priorities that are unable to be addressed in the annual operating budget. Many of these items are the result of years of deferred maintenance and expenditures that occurred in the extended period of financial

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 5, 2024, AN

ORDINANCE RELATING TO INCREASING AND EXTENDING THE

TRANSACTION AND USE TAX AND EXPENDITURES THEREFROM
JULY 9, 2024
PAGE 2 OF 7
challenges. These items create an effect similar to the former negative fund balance because they represent key costs that must be addressed in the future and impact the long-term financial stability of the City.

At the January 10, 2023 meeting, the City Council approved a proposed community engagement process for pursuing a supplemental revenue source to address unfunded needs. The first step in the process was to develop a detailed plan for proposed future priority expenditures. Staff titled it the Unfunded Priority Needs Plan. A draft was presented by staff and approved by City Council at the November 14, 2023 meeting.

An extensive proposed community outreach was also approved and later conducted. A public hearing was held at the May 14, 2024 meeting to review input received, provide direction to staff on any agreed upon changes, and then review and provide direction on a proposed revenue strategy to implement the plan. At that meeting, City Council approved the final Unfunded Priority Needs Plan and directed staff to proceed to draft a ½ cent local sales tax measure for consideration.

At the June 11th meeting, staff presented draft language for the ballot measure and ballot argument for comment, which the City Council tentatively approved and directed staff to proceed. The formal Resolutions and Ordinance are now being presented for consideration that will place the proposed measure on the ballot and the ballot argument in the voter guide.

DISCUSSION:

The advantages of the sales tax proposal as a revenue option include the following:
• The City’s local sales tax rate is lower than most other cities, particularly in the Central Coast region. Therefore, the tax rate will still be comparable to most other jurisdictions after the increase.
• The majority of revenue will be generated by people from outside the community who are visiting businesses adjacent to Highway 101 for gas and food. Therefore, it will reduce the tax burden on local residents.

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 5, 2024, AN

ORDINANCE RELATING TO INCREASING AND EXTENDING THE

TRANSACTION AND USE TAX AND EXPENDITURES THEREFROM
JULY 9, 2024
PAGE 3 OF 7
• It would generate roughly the amount of revenue needed to implement the Plan.
• Revenues will grow as the City is successful in improving the community and attracting new businesses and jobs. It also increases with inflation, which can help to address unanticipated increases in expenses.

Staff recommends the local sales tax measure be proposed as a general tax and not a special tax. This will mean the funds will not be restricted or earmarked for any specific use. It will become discretionary General Fund revenues for overall budget purposes. This is important to maintain flexibility, so it can potentially address other needs if economic or other circumstances change. Approval of a general tax will require a majority vote. A special tax would require a 2/3 vote.

A sunset period of 12 years is recommended to be consistent with the time frame proposed to implement goals set forth in the Unfunded Priority Needs Plan. As in the past, the measure also includes a requirement for all expenditures of the revenues generated from the measure to be reviewed annually by the Budget Advisory Committee.

Below are the results of a survey of existing sales tax rates for all cities in Monterey and San Luis Obispo counties:

City Amount
Greenfield 1 ¾ cents
Atascadero 1 ½ cents
Carmel 1 ½ cents
Del Rey Oaks 1 ½ cents
Grover Beach 1 ½ cents
Marina 1 ½ cents
Monterey 1 ½ cents
Morro Bay 1 ½ cents
Pacific Grove 1 ½ cents
Paso Robles 1 ½ cents
Salinas 1 ½ cents
San Luis Obispo 1 ½ cents
Sand City 1 ½ cents
Seaside 1 ½ cents
Soledad 1 ½ cents

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 5, 2024, AN

ORDINANCE RELATING TO INCREASING AND EXTENDING THE

TRANSACTION AND USE TAX AND EXPENDITURES THEREFROM
JULY 9, 2024
PAGE 4 OF 7
Gonzales 1 cent
King City 1 cent
Arroyo Grande .5 cent
Pismo Beach .5 cent
Of the 4 cities that have not yet established a rate of 1 ½ cents, all 4 have proposed to place measures on the November 2024 ballot to increase their rate.

The proposed question to be placed on the ballot is as follows:

Shall the measure increasing the City of King’s local sales tax rate from one percent to one and one-half percent for general government uses (such as public safety, street improvements, park and facility maintenance, and emergency reserves), providing an annual increase of approximately $1,200,000 under local control with citizen oversight, annual audits, and expiration in 12 years, be adopted?
A statewide initiative called the Taxpayer Protection and Government Accountability Act had been proposed for the November 5th ballot by a California business group, which would place certain new restrictions on local government tax measures. The Court ruled that it was not eligible, so it will not appear on the ballot after all. Staff were careful to draft the measure to be consistent with the potential new requirements. It is now late to make changes, so staff recommend proceeding with the existing language in case they come forward with a similar retroactive measure in the future.

This means that there will not be an advisory measure on the ballot accompanying the tax measure as has been proposed in the past. This may end up being beneficial to avoid confusion since other local measures may be proposed by the school districts.

The City is also allowed to submit a ballot argument to be printed in the voter guide. The following argument language is recommended:

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 5, 2024, AN

ORDINANCE RELATING TO INCREASING AND EXTENDING THE

TRANSACTION AND USE TAX AND EXPENDITURES THEREFROM
JULY 9, 2024
PAGE 5 OF 7
ARGUMENT IN FAVOR OF MEASURE ______
The City has made great progress over the past several years in paying off its debt, reducing crime, revitalizing the downtown area and improving service levels. However, we still have critical unfunded needs due to the serious financial crisis King City experienced over the past two decades. Voting “Yes” on Measure ___ will help us to implement important plans the City has developed to eliminate violence, improve our streets, better maintain and upgrade our recreation facilities, and build our reserves and long-term financial stability.

Measure ___ simply proposes to adjust King City’s local sales tax rate up to the same amount already being charged by almost every other city in Monterey and San Luis Obispo counties. It is difficult to address the many challenges our community faces without revenue sources comparable to our counterparts around the region.

Sales tax is the best revenue option because a large portion is paid by people from outside King City. To ensure accountability, the measure requires review by a community budget advisory committee and sunset of the tax in 12 years.

Let’s make sure we don’t go back to the struggles King City experienced in the past. Instead, please help us complete our efforts to establish the quality of life that everyone in King City wants and deserves by voting “Yes” on Measure ____.

MICHAEL LEBARRE
Mayor

CARLOS VICTORIA
Mayor Pro Tem

ROBERT CULLEN
Council Member

CARLOS DELEON
Council Member

OSCAR AVALOS
Council Member

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 5, 2024, AN

ORDINANCE RELATING TO INCREASING AND EXTENDING THE

TRANSACTION AND USE TAX AND EXPENDITURES THEREFROM
JULY 9, 2024
PAGE 6 OF 7
The language was reviewed, amended and agreed upon by the entire City leadership team. An attempt was made to keep it brief and emphasize only the major points to help increase the likelihood more voters will read it.

The deadline to submit the measure to the County Elections Office is August 9th.

Since the second meeting in July is cancelled, this is the last meeting available to approve with the full City Council available. The Council has scheduled a special meeting on June 30th, but the full City Council will not be in attendance.

The deadline for submittal of the ballot argument is not until August 15th.

Therefore, consideration of it could be delayed until the August 13th meeting if necessary. It is the most important item to have a vote of the full City Council because staff hopes to obtain approval to list all City Council names on the ballot argument.

COST ANALYSIS:

An additional ½ cent sales tax would generate an initial annual amount of $1,200,000 escalated over time, which would result in roughly $17 million by the end of the 12-year period. It is estimated that educational materials and the increased expense charged by the County Elections Office for the ballot measure will result in an increased cost to the City of $5,000 to $10,000.

ENVIRONMENTAL REVIEW:

Revenue measures are not considered a project for the purposes of CEQA and have 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. Approve staff’s recommendations;

2. Adopt the Resolution approving placing the measure on the ballot, but delay approval of the ballot argument until the August 13, 2024 meeting;

3. Modify the ballot argument and then adopt both Resolutions;

4. Do not approve placing the measure on the ballot; or

5. Provide staff other direction.

01222.0007/991767.1 1
RESOLUTION NO. 2024-5001

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 5, 2024, 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, 2037 and/or twelve 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, 2037 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. 2024--4997 on June 11, 2024, calling a general municipal election for the purpose of electing three (3) 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 5, 2024, 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 5, 2024, 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 01222.0007/991767.1 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 5, 2024; 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 5, 2024; 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 5, 2024, the following question (“Measure”):

MEASURE
Shall the measure increasing the City of King’s local sales tax rate from one percent to one and one-half percent for general government uses (such as public safety, street improvements, park and facility maintenance, and emergency reserves), providing an annual increase of approximately $1,200,000 under local control with citizen oversight, annual audits, and expiration in 12 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.
01222.0007/991767.1 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 5, 2024, 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 15, 2024 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 15, 2024 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. 01222.0007/991767.1 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 22, 2024 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 15, 2024 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 5, 2024 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 5, 2024.

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.
01222.0007/991767.1 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 9 th day of July, 2024
by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
ERICA SONNE, City Clerk

CITY OF KING
By:

MIKE LEBARRE, Mayor
01222.0007/991767.1 6
APPROVED AS TO FORM:

By:

ROY 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.
01222.0007/991767.1 A-1
Exhibit A to Resolution No. ___
(Full Text of Ordinance)
01222.0007/990199.1 1
ORDINANCE NO. 2024-828
AN ORDINANCE 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 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 July 10, 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 general use city services.

G. The City 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 general use 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 to streets and sidewalks, the downtown area and other infrastructure and other economic development efforts to increase businesses, jobs and visitors to the City. 01222.0007/990199.1 2
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, 2037 or twelve (12) years from the operative date, and would increase the tax to one percent (1.50%) from April 1, 2025.

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 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 one-half percent (1.50%) proposed under Ordinance No. 2024-828 shall mean April 1, 2025.”

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.
01222.0007/990199.1 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. 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 (b) the Operative Date of Ordinance No. 2024-828 through March 31, 2037, 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 sale of all tangible personal property sold at retail in the City on and after the Operative Date.
01222.0007/990199.1 4

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 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 percent (1.00%) of the sales price of the property and (b) on or after the Operative Date of Ordinance No 2024-828 through March 31, 2037 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:

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; 01222.0007/990199.1 5

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.

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 01222.0007/990199.1 6
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 contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
01222.0007/990199.1 7
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 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 01222.0007/990199.1 8
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.
01222.0007/990199.1 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 use purposes.

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.

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 5, 2024.

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 5, 2024 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. The Ordinance shall remain in effect through March 31, 2037.

Approved at a regular meeting of the City Council held this ___ th day of ___, 2024 on
motion of Councilmember _______, seconded by Councilmember ________, and on the following roll call vote, to wit:
01222.0007/990199.1 10
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 __ day of ___, 2024.

ATTEST:
________________________________ ______________________________ Erica Sonne, City Clerk Mayor
APPROVED AS TO FORM:
_________________________________
Roy Santos, City Attorney
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of King, California voting on the ___th day of ____, 2024.

ATTEST:
________________________________
Erica Sonne, City Clerk
RESOLUTION NO. 2024-5002

RESOLUTION APPROVING AN ARGUMENT IN FAVOR OF THE CITY OF KING BALLOT

MEASURE INCREASING AND EXTENDING THE TRANSACTION AND USE TAX WHEREAS, the City Council of the City King has adopted a Resolution placing on the November 5, 2024 election ballot an Ordinance to add 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 percent (1.50%); and
WHEREAS, the Resolution and County Elections Office sets forth criteria for submittal of ballot arguments to be included in the election materials; and WHEREAS, the City Council has determined it is in the interest of the City to submit and argument in favor of the ballot measure.

NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of King hereby approves the ballot argument attached hereto as Exhibit A.

This resolution was passed and adopted this 9
th day of July, 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. 10 (C)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER

7.36 OF TITLE 7 OF THE KING CITY MUNICIPAL CODE

PERTAINING TO GRAFFITI REMOVAL
RECOMMENDATION:

It is recommended City Council introduce to be read by title only an Ordinance amending provisions of Chapter 7.36 of Title 7 of the King City Municipal Code pertaining to graffiti removal, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve the introduction of the Ordinance.

BACKGROUND:

Under the King City Municipal Code, the presence of graffiti constitutes a public nuisance. Graffiti reduces property values, causes blight, is unsightly, and often encourages potential criminal activity by expressing gang-related symbols, colors and messages. Evidence supports that one of the most effective ways to both eliminate and prevent graffiti is to ensure that it is removed as quickly as possible.

The City has maintained an active program of removing graffiti as quickly as possible, particularly when it occurs on public property. It becomes more complicated when it is found on private property. As a result, staff are recommending modifications to the graffiti ordinance to help ensure it is removed as quickly as possible whether on private or public property.

DISCUSSION:

Currently, the Municipal Code provisions require property owners to remove graffiti on their property within 72 hours. If they do not remove it, the City can then remove it and charge the property owner for reimbursement. The Municipal

CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 7.36 OF TITLE 7 OF THE KING CITY MUNICIPAL CODE PERTAINING TO GRAFFITI

REMOVAL
JULY 9, 2024
PAGE 2 OF 3
Code sets forth the process for notifying the property owner and entering the property.

Staff believe that 72 hours is too long to allow graffiti to be visible. In some cases, this has resulted in the potential for visible graffiti to be present in the downtown area over a weekend period. The process for notifying and billing private property owners is also cumbersome and labor intensive. It can often take more staff time to recoup the costs than the amount of the reimbursement.

It becomes even more difficult when there is a dispute over the work or the cost.

Finally, it increases the work involved when staff are responsible for matching paint and ensuring the work on private property is adequate.

As a result, staff is proposing the following modified process, which is reflected in the proposed ordinance:

1. Staff will notify the property owner to remove graffiti within 24 hours.

2. If the property owner does not respond or cannot remove it that quickly, staff will cover it up immediately with whatever paint is available that most closely matches the surface when the location is accessible from the public right-ofway. The City will not charge the property owner.

3. The property owner will then be notified that they are required to restore the surface within 7 days by painting it with a matching color or completing other repairs necessary to return it to its original condition.

COST ANALYSIS:

The changes to the process will result in some work on private property that will not be reimbursed. However, staff believes the net result will be a reduction in overall staff time involved by simplifying the process.

ENVIRONMENTAL REVIEW:

The proposed changes in regulations are 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.

Item No. 11 (A)

REPORT TO THE CITY COUNCIL
DATE: JULY 9, 2024
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF DOWNTOWN PLAZA MURAL
RECOMMENDATION:

It is recommended the City Council 1) approve the selection of the mural design for the Downtown Plaza Project; and 2) approve and authorize the City Manager to execute an Agreement with La Neta Murals, LLC for creation of the mural in a form approved by the City Attorney.

BACKGROUND:

In 2017, the City Council approved a draft Downtown Streetscape Conceptual Plan, which included a proposal to create a downtown plaza on the property at the northeast corner of Broadway Street and Vanderhurst Avenue. At the February 13, 2018 meeting, the City Council approved a purchase and sale agreement to acquire the property. At the August 27, 2019 meeting, following an extensive public participation process, the City Council approved the final design and directed staff to proceed with construction drawings. In 2021, staff submitted and received approval for a Proposition 68 grant to fully fund the construction, and the construction contract was approved on February 28, 2023. As a result, the project is now under construction. The design and grant application included a proposed mural on the wall of the building at 326 Broadway Street facing the Downtown Plaza.

The same process was used to select the recommended mural as was used for the development of the wind sculptures for the Downtown Plaza, Broadway Street medians and the roundabout project. The City contracted with a professional art consultant to coordinate the process. A Request for Qualifications (RFQ) was distributed to artists from the Central Coast area and 8 responses were submitted prior to the deadline. The same selection committee was utilized as the wind sculpture process, which included representatives from

CITY COUNCIL

CONSIDERATION OF DOWNTOWN PLAZA MURAL
JULY 9, 2024
PAGE 2 OF 4
the City, Monterey County Arts Council, Sol Treasures and King City in Bloom.

The committee selected the top 3 applicants, who were provided a Request for Proposals (RFP). Each of the top 3 finalists submitted a specific mural proposal and received a $500 stipend.

DISCUSSION:

Potential themes for the mural were determined through the Downtown Plaza community outreach process based on feedback received at one of the public workshops. Themes included the following in this prioritized order:
• Native plants and landscaping (wildflowers)
• King City wind
• Salinas River
• Arts and music
• Tribute to farmworkers
Each finalist presented their proposal to the selection committee and participated in an interview. The selection committee then voted to determine their recommendation, which was very difficult and took 2 meetings to come to a final decision.

The selected artist is a team called La Neta Murals. They are local artists in Monterey County and have a significant amount of experience in successfully creating large colorful murals.

Their design is inspired by the King City wind, music and dance culture, native wildflowers, and agricultural fields. The dress of a baile folklorico dancer whips off a series of California Poppies, western blue-eyed grass flowers, and Common Yarrow to flow through the wind. The same dress blends into the surrounding landscape of agricultural fields and rolling hills. At the request of the building owner, hummingbirds will be added to represent love and good luck. Below is the mural proposal:

CITY COUNCIL

CONSIDERATION OF DOWNTOWN PLAZA MURAL
JULY 9, 2024
PAGE 3 OF 4
Some of the key factors in the committee’s selection decision was the colorful nature of the mural, which they felt would work well in the proposed location for a couple key reasons. They felt it will compliment the design of the wind sculpture at the Downtown Plaza. The visibility of the mural will be partially impacted in the future by trees that will be planted in the Downtown Plaza. As result, it was also felt that the colorful abstract piece will work better than the other submittals with more detailed landscapes. The project scope of work includes a community participation component which was part of the grant application, and the committee felt they had a strong community outreach proposal.

The City has executed a 25-year lease agreement with the property owner for use of the wall for the mural, which is a requirement of the grant. Staff is also working with the property owner on a façade enhancement grant that will redesign the front of the building and coordinate it with the mural. Below is a rendering created by the City’s architects:

COST ANALYSIS:

The total cost of the mural is $50,000, which will be paid by the Proposition 68 grant.

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