King City City Council
September 8, 2026

AGENDA

REGULAR MEETING OF THE

CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF

THE FORMER CDA FOR THE CITY OF KING
AND
Sitting as PUBLIC FINANCING AUTHORITY

FOR THE CITY OF KING
TUESDAY SEPTEMBER 8, 2026
6:00 P.M.

CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
The City Council meeting will be conducted in hybrid in-person/virtual format.

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

CALL TO ORDER
ROLL CALL:

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

FLAG SALUTE

CLOSED SESSION ANNOUNCEMENTS

SPECIAL PRESENTATIONS
Jacob’s Heart Proclamation Accepted By Erik Lua, CEO
5(A) JACOBS HEART 2026.PDF
PttiOCitCStBChif Mt

1. 2.

3. 4.

5. A.

Documents:

B
Jacob’s Heart Proclamation Accepted By Erik Lua, CEO
5(A) JACOBS HEART 2026.PDF
Presentation On City Camera System By Chief Masterson

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 Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.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 August 25, 2026 Council Meeting Recommendation: approve and file.
9(A) AUGUST 25, 2026 CITY COUNCIL MEETING MINUTES.PDF
Consideration: Second Reading Of An Ordinance Of City Council Of The City Of King Amending Chapter 17.79 (Seasonal Employee Housing) Of Title 17 Of The King City Municipal Code Governing Seasonal Employee Housing To Align With State Law Recommendation: waive the second reading by title only, open the public hearing, close the public hearing and adopt an Ordinance of City Council of the City of King Amending Chapter 17.79 (Seasonal Employee Housing) of Title 17 of the King City Municipal Code Governing Seasonal Employee Housing to Align with State Law. 9(B) 2ND READING OF ORDINANCE 2026-845.PDF
Consideration: A Professional Services Agreement With Moreno Consulting Services LLC For Finance Management Services
A.

Documents:

B.

6. 7.

8. 9.

A.

Documents:

B.

Documents:

C.
9(B) 2ND READING OF ORDINANCE 2026-845.PDF
Consideration: A Professional Services Agreement With Moreno Consulting Services LLC For Finance Management Services
Recommendation: authorize the City Manager to enter into a Professional Services Agreement with Moreno Consulting Services LLC for Finance Management Services through June 30, 2027 in an amount not to exceed $120,000. 9(C) PROFESSIONAL SERVICES AGREEMENT WITH MORENO
CONSULTING SERVICES LLC.PDF

PUBLIC HEARINGS

REGULAR BUSINESS

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.

Conference With Legal Counsel – Regarding Pending Litigation Pursuant To Government Code Section §54956.9(D)(1). Case: 26CV004111 (Jonas Lalehzadeh V. City Of King Et Al.) Relating To The City’s Revocation Of His Commercial Cannabis Operations Permit.

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

C.

Documents:

10. 11.

12. A.

13. 5(A)

City Council Meeting
August 25, 2026

1.__CALL TO ORDER:

Regular Meeting called to order at 6:01pm by Mayor LeBarre.

2.__ROLL CALL:

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

City Staff: City Manager José Arreola, City Attorney Roy Santos; City Clerk Erica Sonne

3.__FLAG SALUTE:

The flag salute was led by Mayor LeBarre.

4. CLOSED SESSION ANNOUNCEMENTS:

City Attorney Roy Santos stated that Liability Claims (Pursuant to Government Code Section 54956.95) No. GHC0100048 Jose Sebastian Chavez Avarado, GHC0100048 Greissy Alvarado has been rejected by City Council.

5.__SPECIAL PRESENTATIONS:

City Council received Financial Reports for July 2026 from Roberto Moreno. He explained that they will get budget to actual every month at the end of the month for the previous month. He went over the staff report and all the exhibits.

6. PUBLIC COMMUNICATIONS:

None

7. COUNCIL COMMUNICATIONS:

Councilmember Victoria stated on Sunday August 30th there will be a celebration the Day of the Farmworker on Broadway with music and food.

Councilmember Avalos stated he had nothing to report tonight.

Mayor Pro Tem DeLeon stated he had nothing to report tonight.

Mayor LeBarre stated that tomorrow at the TAMC meeting they are having a discussion on the impact fees, they are up every 8 years. It is going to be quite jump this year, and he will be voicing his objections to this.

Councilmember Cullen stated that the Solid Waste Authority will have a booth at the Day of the Farmworker. He also spoke on the landfill and discussions that are being had 38 years out to what to do to extend the life of the landfill without it affecting the rate payers. He had his Community Foundation CEO replacement coming soon.
9(A)

8. CITY STAFF REPORTS AND COMMENTS:

City Manager José Arreola stated Day of the Farmworker event is this Sunday August 30th. September 7th is Labor Day and City Hall will be closed. October 10th is Pinnacles Film Festival. October 11 at 11am – 3pm Ciclovia event. The Pool Fencing project construction should begin early September. Paving operations are scheduled for September 3
rd
.

Police staffing currently has 4 conditional offers 1 Sergeant and 3 Officers, all lateral. Unfortunately, we had a homicide in our town this weekend, may Omar rest in peace and our deepest condolences to his family. The investigation is being handled by the Monterey County Sherriff’s department due to the low staffing at the police department currently.

City Attorney Roy Santos had nothing to report tonight.

9. CONSENT
A. Consideration: Meeting Minutes of August 11, 2026 Council Meeting B. Consideration: Reimbursement of Repair Costs to the Monarch Inn C. Consideration: Road to Success Youth Diversion Program Memorandum of Understanding D. Consideration: Transportation Agency for Monterey County Master Funding Agreement Denise Valsquez and Aaron from Sun Street spoke to item 9(C). Aaron spoke about the program and how it helped him.

Action: Motion to approve consent agenda items A-D by Victoria seconded by Avalos.

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

ABSENT: Council Members:

ABSTAIN: Council Members:

10. PUBLIC HEARINGS:

A. Consideration: Adoption of an Ordinance of the City Council of the City of King Amending Chapter 17.79 of Title 17 of the King City Municipal Code Pertaining to Seasonal Employee Housing City Attorney Roy Santos introduced this item with a PowerPoint presentation.

John Baucke spoke on this item representing Smith Monterey about when Broadway goes through speaking about a wall that would go up and if the city would have some say over what it would look like.

Claude Hoover spoke on this item representing Rava Ranches and mentioned the letter that was sent to the Council. They complied with all the standards as long as they apply to all facilities.

Elise Cossart-Daly spoke on this item representing Rava Ranches and Fresh Foods with William Parken she encourages not passing this ordinance. She also spoke on CEQA.

Jerry Rava, Rava Ranches, is totally discussed, he loves this city that is why he lives here. He loves the people that work in the fields and that is why they deserve a good place to live. He trusted the City’s vision. City staff told him that no extension would be allowed. Behind closed doors under the discussion of the settlement agreement the city surrendered to litigation threats and granted an extension. Tonight staff is asking you to gut the seasonal housing ordinance entirely. You force every building standard down to the bare minimum. He urges the council to vote no.

Mayor LeBarre asked if HCD has a issue with our Seasonal Employee Housing ordinance. City Attorney Santos stated yes. Mayor LeBarre stated that they said they wouldn’t approve our general plan and City Attorney Santos stated for the Housing Element there are several sections that we have to update. If we don’t have an approved Housing Element, then it makes it harder to get projects approved.

Mayor LeBarre stated that without the Housing Element they would have to go through a more substantial CEQA process. Attorney Santos stated correct. City Attorney Santos stated that it could impact the score for the grants as well. Mayor LeBarre stated that without an approved Housing Element it would have an impact on housing. City Attorney Santos stated that it would be affect for multifamily, single family, residential low income, agricultural employee housing, employee housing and market rate. The Housing Element would help with some CEQA analysis.

Mayor LeBarre stated that isn’t it generally Zoning and Ordinances are under local governances? City Attorney Santos stated that generally yes. He further stated that HCD is stating that zoning is but not standards in employee housing. Mayor LeBarre disagrees with HCD, he feels that they are overstepping the local jurisdiction.

City Attorney Santos stated that the Downtown Addition Specific Plan is not being altered by this ordinance amendment nor is the Historic Corridor Revitalization Plan because they don’t target a specific housing.

Mayor LeBarre acknowledged the letter received from William P Parken attorney for Rava Ranches.

City Attorney Santos stated that copies are available to the public as well as the ordinance and presentation.

Action: Motion to introduce an ordinance amending Chapter 17.79 of Title 17, of the King City Municipal Code pertaining to seasonal employee housing to be read by title only, open the hearing, allow for the public testimony, close the hearing, waive first reading of the Ordinance and approve the introduction of the Ordinance by LeBarre seconded by Cullen.

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

ABSENT: Council Members:

ABSTAIN: Council Members:

11. REGULAR BUSINESS
A. Consideration: Fiscal Year 2026-27 Appropriation Limit Roberto Moreno, Finance Consultant, went over the appropriation limit what the city can spend in tax money.

Action: Motion to adopt a Resolution approving FY 2026-27 Appropriation limit from tax proceeds by Cullen seconded by Avalos.

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

ABSENT: Council Members:

ABSTAIN: Council Members:

12. CITY COUNCIL CLOSED SESSION
None
ADJOURNMENT:

Mayor LeBarre adjourned the meeting at 7:19p.m.

Approved Signatures:

Mayor Mike LeBarre City Clerk, Erica Sonne
City of King City of King
4930-6325-9341 v1
Item No. 9(B)

REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 8, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARICRUZ AGUILAR, INTERIM COMMUNITY DEVELOPMENT

DIRECTOR
ROY C. SANTOS, CITY ATTORNEY
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF SECOND READING OF AN ORDINANCE OF

CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER

17.79 (SEASONAL EMPLOYEE HOUSING) OF TITLE 17 OF THE

KING CITY MUNICIPAL CODE GOVERNING SEASONAL

EMPLOYEE HOUSING TO ALIGN WITH STATE LAW
RECOMMENDATION:

Staff recommends the City Council waive the second reading by title only, open the public hearing, close the public hearing and adopt an Ordinance of City Council of the City of King Amending Chapter 17.79 (Seasonal Employee Housing) of Title 17 of the King City Municipal Code Governing Seasonal Employee Housing to Align with State Law.

BACKGROUND:

Municipal Code Chapter 17.79, adopted in 2018 to address seasonal employee housing, includes local discretionary standards that conflict with state-mandated allowances. On August 25, 2026, upon hearing public comment and at the conclusion of the public hearing, the City Council approved moving forward with amendments to Chapter 17.79. The proposed ordinance amendments would delete in its entirety the language within Chapter 17.79 which may conflict with existing State law governing employee housing, pursuant to the California Department of Housing and Community Development’s (“HCD”) interpretation of existing law and their assertions regarding Chapter 17.79, and the remaining language from Chapter

17.79 is being renumbered to prevent potential confusion and to ensure the continued authorization of seasonal employee housing within the FSC zone as previously approved.

CITY COUNCIL

CONSIDERATION OF SECOND READING OF AN ORDINANCE OF CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER 17.79 (SEASONAL EMPLOYEE HOUSING) OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

GOVERNING SEASONAL EMPLOYEE HOUSING TO ALIGN WITH STATE LAW SEPTEMBER 8, 2026
PAGE 2 OF 6
4930-6325-9341 v1
The purpose of the zoning text amendment is to align the City’s seasonal employee housing regulations with applicable state law while preserving the existing zoning, density, land use designation, and the Historic Corridor Revitalization Plan.

DISCUSSION:

HCD’s administers and enforces regulations related to employee housing. These requirements primarily affect residential zones. For example, employee housing for six or fewer workers must be treated the same as a standard single-family home.

State law also requires seasonal employee housing to be allowed in zones where agriculture is a permitted use. Cities may not require a Conditional Use Permit (CUP), zoning variance, or other discretionary clearance for seasonal employee housing if the same approval is not required for standard agricultural activity in the same zone.

In 2018, the City processed a zone amendment to address the need for housing by adding seasonal employee housing as an overlay zone in specific locations within the First Street Corridor (FSC) zone of the Historic Corridor Revitalization Plan. In the FSC zone, multi-family residential projects of four units or more require a Conditional Use Permit. Therefore, a seasonal employee housing complex in the FSC zone would also require a Conditional Use Permit and be subject to standards applicable to other multi-family residential development projects. The Historic Corridor Revitalization Plan (HCRP) includes architectural features and standards that regulate residential development where permitted. In addition, Municipal Code Section 17.50 provides architectural control over properties within the HCRP, including the FSC zone. The proposed amendment to Chapter 17.79 would remove standards that are not normally required for other multi-family developments.

Removing those local standards will help bring the City into compliance with state housing mandates for seasonal employee housing.

The proposed ordinance amendments include the following:

Chapter 17.79: Seasonal Employee Housing
Section 17.79.005 –Seasonal Employee Housing
(a) Compliance with State Law: Seasonal employee housing provided by the employer and maintained in connection with the work or place where work is being performed must comply with all provisions of federal, state, and local regulations, as applicable, including Section 17008(a) of the California Health and Safety Code. Seasonal employee housing not maintained in connection with any workplace and provided by someone

CITY COUNCIL

CONSIDERATION OF SECOND READING OF AN ORDINANCE OF CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER 17.79 (SEASONAL EMPLOYEE HOUSING) OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

GOVERNING SEASONAL EMPLOYEE HOUSING TO ALIGN WITH STATE LAW SEPTEMBER 8, 2026
PAGE 3 OF 6
4930-6325-9341 v1
other than an employer shall comply with all provisions of applicable local, state, and federal laws.
(b) Dual Land Use Designation: The General Plan allows a dual land use designation for seasonal employee housing, as shown on the General Plan diagram and zoning map.
(c) Conversion of Use: If structures used for seasonal employee housing are proposed to be converted to another use, the facilities shall be subject to all applicable zoning requirements and other applicable ordinances or standards for the proposed new use that are in effect at the time of approval.
(d) State Permit Verification: Seasonal employee housing for five or more employees is subject to the permitting requirements of the California Employee Housing Act. The property owner shall obtain and maintain all required permits from the California Department of Housing and Community Development (HCD), pursuant to the Employee Housing Act and the California Code of Regulations. A copy of the HCD permit shall be provided to the City Building and Safety Department within fourteen (14) days of issuance or at the time of building permit application submittal, whichever occurs first.
(e) Development Impact Fees: Development impact fees shall be paid, as adopted by resolution of the City Council.

Section 17.79.010 is hereby deleted in its entirety
Section 17.79.020 is hereby deleted in its entirety
Section 17.79.030 is hereby deleted in its entirety
Section 17.79.040 is hereby deleted in its entirety
Section 17.79.050 is hereby deleted in its entirety
Section 17.79.060 is hereby deleted in its entirety
Section 17.79.070 is hereby deleted in its entirety
Section 17.79.080 is hereby deleted in its entirety
No changes are proposed to the underlying zoning, land use designation, density or Historic Corridor Revitalization Plan. Further, the language within Chapter 17.79 which may conflict with existing State law governing employee housing, pursuant to HCD’s interpretation of existing law and their assertions regarding the City’s Seasonal Employee Housing Ordinance, is being deleted in its entirety and the remaining language is merely being renumbered to prevent needless confusion and to ensure the continued authorization of seasonal employee housing within the FSC

CITY COUNCIL

CONSIDERATION OF SECOND READING OF AN ORDINANCE OF CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER 17.79 (SEASONAL EMPLOYEE HOUSING) OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

GOVERNING SEASONAL EMPLOYEE HOUSING TO ALIGN WITH STATE LAW SEPTEMBER 8, 2026
PAGE 4 OF 6
4930-6325-9341 v1
zone as previously approved. On August 18, 2026, the Planning Commission recommended approval of the zoning text amendment to the City Council.

ENVIRONMENTAL DETERMINATION:

Pursuant to California Public Resources Code section 21065 and CEQA Guidelines section 15378(a), this Ordinance amendment is not a “project” because its adoption is an organizational or administrative activity of the City under CEQA Guidelines section 15378(b)(5) that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance amendment is not subject to CEQA. Also, even if this Ordinance amendment qualified as a “project” subject to CEQA, pursuant to CEQA Guidelines section 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment. This Ordinance merely consists of text amendments to the King City Municipal Code to ensure compliance and alignment with State of California laws governing agricultural employee housing, such as Health and Safety Code Section 17000 et seq., known as the Employee Housing Act. It can be seen with certainty that there is no possibility this Ordinance’s administrative amendments to the King City Municipal Code directly or indirectly authorize or approve any reasonably foreseeable physical change(s) to the environment. Accordingly, the adoption of this Ordinance amendment is exempt from CEQA under the general rule.

In the alternative, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15061(b)(3), the environmental impacts of establishing seasonal employee housing standards, amending Title 17, and implementing Chapter 17.79 were previously fully evaluated in the City’s prior Initial Study and Negative Declaration (IS-ND) adopted for Case Nos. GPA 2018-001, ZC 2018-001, and ZC 2018-002.

Here, the zoning designations and densities authorizing the building of seasonal employee housing are not changing; rather, the Ordinance is being amended to ensure compliance and alignment with State of California laws governing agricultural employee housing, such as Health and Safety Code Section 17000 et seq., known as the Employee Housing Act. No new language is being added; rather, language is being removed and the remaining language is being renumbered. Thus, pursuant to CEQA Guidelines section 15162, the Ordinance amendment does not require any additional environmental review or documentation since on the basis of substantial evidence in the light of the whole record, there is no evidence establishing one or more of the following exists:
(1) Substantial changes are proposed in the project which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;

CITY COUNCIL

CONSIDERATION OF SECOND READING OF AN ORDINANCE OF CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER 17.79 (SEASONAL EMPLOYEE HOUSING) OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

GOVERNING SEASONAL EMPLOYEE HOUSING TO ALIGN WITH STATE LAW SEPTEMBER 8, 2026
PAGE 5 OF 6
4930-6325-9341 v1
(2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous negative declaration was adopted, shows any of the following:
(A) The project will have one or more significant effects not discussed in the previous negative declaration; or
(B) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative.

Further, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15162, the Ordinance amendment is consistent with the City’s General Plan, General Plan Environmental Impact Report, Historic Downtown Revitalization Plan, Adopted Mitigated Negative Declaration, and is absolved of further environmental review under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines section 15183 since the Ordinance amendment does not alter the zoning nor zoning density contained within the General Plan and/or Historic Downtown Revitalization Plan for the FSC zone, which continues to allow seasonal employee housing and multi-family housing to be built. Also, there is no substantial evidence establishing (1) the existence of project-specific impacts “peculiar” to the project or its site; (2) a significant impact not evaluated in the prior EIR or plan; (3) significant off-site or cumulative impacts not evaluated in the prior EIR; and/or (4) a showing that previously identified impacts are more severe based on new information not known when the prior EIR was certified.

Lastly, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15183, new seasonal employee housing or agricultural employee housing, projects, as well as projects consisting exclusively of repair or maintenance of existing agricultural employee housing, are now exempt from CEQA review, streamlining the creation of safe, affordable dwellings for agricultural workers. (See Public

CITY COUNCIL

CONSIDERATION OF SECOND READING OF AN ORDINANCE OF CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER 17.79 (SEASONAL EMPLOYEE HOUSING) OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

GOVERNING SEASONAL EMPLOYEE HOUSING TO ALIGN WITH STATE LAW SEPTEMBER 8, 2026
PAGE 6 OF 6
4930-6325-9341 v1
Resources Code § 21080.44 and Health and Safety Code § 17021.8; See also Public Resources Code § 21080.66.) As such, the Ordinance amendment is exempt from further environmental review since it does not alter the zoning nor density of the parcels within the FSC zone and continues to allow for the building of seasonal employee housing.

Upon City Council adoption, a Notice of Exemption (NOE) will be filed with the Monterey County Clerk.

COST ANALYSIS:

The City is covering the cost to process the zoning text amendment ordinance.

ALTERNATIVES:

The following alternatives are provided for City Council consideration:

1. Introduce the Ordinance;

2. Modify the Ordinance;

3. Do not adopt the Ordinance; or

4. Provide staff other direction.

Exhibits:

1. Ordinance No. 2026-845
4897-5892-6027 v1 1
ORDINANCE NO. 2026-845

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING
AMENDING CHAPTER 17.79 (SEASONAL EMPLOYEE HOUSING) OF
TITLE 17 OF THE KING CITY MUNICIPAL CODE GOVERNING

SEASONAL EMPLOYEE HOUSING TO ALIGN WITH STATE LAW
WHEREAS, the City initiated Zone Text Amendment Case No. ZON26-000003 to amend Title 17 of the King City Municipal Code by amending Chapter 17.79, Seasonal Employee Housing; and
WHEREAS, Municipal Code Chapter 17.79 currently contains local development standards applicable to seasonal employee housing; and
WHEREAS, the California Department of Housing & Community Development (HCD) interprets that the City’s ordinance exceeds guidelines as stated in Health and Safety Code Section 17021; and
WHEREAS, the proposed zoning text amendment would amend the text to ensure compliance with California Health and Safety code Section 17008(a); and WHEREAS, the proposed zoning text amendment would remove local discretionary barriers that may conflict with state-mandated allowances for seasonal employee housing while maintaining compliance with applicable health, safety, building, and permitting requirements; and WHEREAS, on August 18, 2026, the Planning Commission conducted a duly noticed public hearing, considered the proposed amendments, and adopted Resolution No. 2026-359 recommending approval to City Council; and
WHEREAS, pursuant to California Public Resources Code section 21065 and the California Environmental Quality Act (“CEQA”) Guidelines section 15378(a), this Ordinance amendment is not a “project” because its adoption is an organizational or administrative activity of the City under CEQA Guidelines section 15378(b)(5) that will not result in direct or indirect physical changes in the environment; and
WHEREAS, even if this Ordinance amendment qualified as a “project” subject to CEQA, pursuant to CEQA Guidelines section 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment. This Ordinance merely consists of text amendments to the King City Municipal Code to ensure compliance and alignment with State of California laws governing agricultural employee housing, such as Health and Safety Code Section 17000 et seq., known as the Employee Housing Act. Also, it can be seen with certainty that there is no possibility this Ordinance’s administrative amendments to the King City Municipal Code directly or indirectly authorizes or approves any reasonably foreseeable physical changes to the environment; and
WHEREAS, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15061(b)(3), the environmental impacts of establishing seasonal employee housing standards, amending Title 17, and Exhibit 1
4897-5892-6027 v1 2
implementing Chapter 17.79 were previously fully evaluated in the City’s prior Initial Study and Negative Declaration (IS-ND) adopted for Case Nos. GPA 2018-001, ZC 2018-001, and ZC 2018- 002. Here, the zoning designations authorizing the building of seasonal employee housing are not changing; rather, the Ordinance is merely being amended to ensure consistency with State and Federal regulatory requirements governing agricultural employee housing. As such, pursuant to CEQA Guidelines section 15162, the Ordinance amendment does not require any additional environmental review or documentation since on the basis of substantial evidence in the light of the whole record, there is no evidence establishing one or more of the following exists:
(1) Substantial changes are proposed in the project which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;
(2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous negative declaration was adopted, shows any of the following:
(A) The project will have one or more significant effects not discussed in the previous negative declaration; or
(B) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative.

WHEREAS, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15162, City staff has determined that the Ordinance is consistent with the City’s General Plan, General Plan Environmental Impact Report, Historic Downtown Revitalization Plan, Adopted Mitigated Negative Declaration, and is absolved of further environmental review under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines section 15183; and
WHEREAS, further even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15183, new seasonal employee housing or agricultural employee housing, projects, as well as projects consisting exclusively of repair or maintenance of existing agricultural employee housing, are now exempt from CEQA review, streamlining the creation of safe, affordable dwellings for agricultural workers (See Public Resources Code § 21080.44 and Health and Safety Code § 17021.8.); and NOW THEREFORE, the City Council of the City of King does hereby ordain as follows:

SECTION 1. Recitals. The above recitals are incorporated by reference. 4897-5892-6027 v1 3
SECTION 2. Purpose and Intent: The purpose of this Ordinance is to amend Chapter

17.79, of Title 17 (Zoning) of the King City Municipal Code to remove local discretionary barriers and ensure compliance with the California Employee Housing Act (Health and Safety Code Section 17000 et seq.) and the Fair Employment and Housing Act. This amendment standardizes local review processes to match state-mandated allowances for employee and seasonal housing while safeguarding community health, safety, and building standards.

SECTION 3. CEQA. Pursuant to California Public Resources Code section 21065 and CEQA Guidelines section 15378(a), the City Council finds that this Ordinance amendment is not a “project” because its adoption is an organizational or administrative activity of the City under CEQA Guidelines section 15378(b)(5) that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance amendment is not subject to CEQA. Also, even if this Ordinance amendment qualified as a “project” subject to CEQA, the City Council finds that, pursuant to CEQA Guidelines section 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment. This Ordinance merely consists of text amendments to the King City Municipal Code to ensure compliance and alignment with State of California laws governing agricultural employee housing, such as Health and Safety Code Section 17000 et seq., known as the Employee Housing Act. It can be seen with certainty that there is no possibility this Ordinance’s administrative amendments to the King City Municipal Code directly or indirectly authorize or approve any reasonably foreseeable physical change(s) to the environment. Accordingly, the City Council finds that adoption of this Ordinance amendment is exempt from CEQA under the general rule.

In the alternative, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15061(b)(3), the environmental impacts of establishing seasonal employee housing standards, amending Title 17, and implementing Chapter 17.79 were previously fully evaluated in the City’s prior Initial Study and Negative Declaration (IS-ND) adopted for Case Nos. GPA 2018-001, ZC 2018-001, and ZC 2018-002. Here, the zoning designations and densities authorizing the building of seasonal employee housing are not changing; rather, the Ordinance is being amended to ensure compliance and alignment with State of California laws governing agricultural employee housing, such as Health and Safety Code Section 17000 et seq., known as the Employee Housing Act. Thus, pursuant to CEQA Guidelines section 15162, the Ordinance amendment does not require any additional environmental review or documentation since on the basis of substantial evidence in the light of the whole record, there is no evidence establishing one or more of the following exists:
(1) Substantial changes are proposed in the project which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;
(2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 4897-5892-6027 v1 4
(3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous negative declaration was adopted, shows any of the following:
(A) The project will have one or more significant effects not discussed in the previous negative declaration; or
(B) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative.

Further, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15162, the City Council finds the Ordinance amendment is consistent with the City’s General Plan, General Plan Environmental Impact Report, Historic Downtown Revitalization Plan, Adopted Mitigated Negative Declaration, and is absolved of further environmental review under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines section 15183 since the Ordinance amendment does not alter the zoning nor zoning density contained within the General Plan and/or Historic Downtown Revitalization Plan for the FSC zone, which continues to allow seasonal employee housing and multi-family housing to be built. Also, there is no substantial evidence establishing (1) the existence of project-specific impacts “peculiar” to the project or its site; (2) a significant impact not evaluated in the prior EIR or plan; (3) significant off-site or cumulative impacts not evaluated in the prior EIR; and/or (4) a showing that previously identified impacts are more severe based on new information not known when the prior EIR was certified.

Lastly, even if the Ordinance amendment is not exempt from further environmental review or documentation based upon CEQA Guidelines section 15183, new seasonal employee housing or agricultural employee housing, projects, as well as projects consisting exclusively of repair or maintenance of existing agricultural employee housing, are now exempt from CEQA review, streamlining the creation of safe, affordable dwellings for agricultural workers. (See Public Resources Code § 21080.44 and Health and Safety Code § 17021.8; See also Public Resources Code § 21080.66.) As such, the Ordinance amendment is exempt from further environmental review since it does not alter the zoning nor density of the parcels within the FSC zone and continues to allow for the building of seasonal employee housing.

Therefore, based on the above, the proposed Ordinance amendment is not subject to further environmental review or documentation.

SECTION 4. Code Amendment. Chapter 17.79 ("Seasonal Employee Housing") of Title 17 of the King City Municipal Code is hereby amended to read as follows:

Chapter 17.79: Seasonal Employee Housing
Section 17.79.005 – Title Seasonal Employee Housing
The city adopts this chapter, which shall be known as the “Seasonal Employee Housing Ordinance.” When allowed in the applicable zone or as part of a dual land use designation, seasonal employee housing is subject to the requirements of this chapter. Nothing in this 4897-5892-6027 v1 5
chapter shall prevent the ability to house domestic seasonal workers or seasonal employees in other single-family homes that meet all other requirements and standards for those housing types and zones. Seasonal employee housing that is developed pursuant to an approved existing specific plan in existence as of the adoption of the ordinance codified in this chapter are exempt from this chapter.
(a) Compliance with State Law: Seasonal employee housing provided by the employer and maintained in connection with the work or place where work is being performed must comply with all provisions of federal, state, and local regulations, as applicable, including Section 17008(a) of the California Health and Safety Code. Seasonal employee housing not maintained in connection with any workplace and provided by someone other than an employer shall comply with all provisions of applicable local, state, and federal laws.
(b) Dual Land Use Designation: the general plan allows a dual land use designation for seasonal employee housing, as shown on the general plan diagram and zoning map.
(c) Conversion of Use: In the event structures used for seasonal employee housing facilities are proposed to be converted to some other use, the facilities shall be subject to all applicable zoning ordinance and other applicable ordinances or standards for the proposed new use that are in effect at the time of approval of the proposed change of use.
(d) State Permit Verification: Seasonal employee housing for five or more employees is subject to the permitting requirements of the California Housing Employee Act.

The property owner shall obtain and maintain a permit(s) with the State Department of Housing and Community Development (HCD), pursuant to the Employee Housing Act and the California Code of Regulations. A copy of the HCD permit shall be provided to the city Building and Safety Department within fourteen (14) days of issuance or at the time of building permit application submittal, whichever is earlier.
(e) Development Impact Fees: Development impact fees shall be paid, as adopted by resolution of the City Council.

Section 17.79.010 is hereby deleted in its entirety
Section 17.79.020 is hereby deleted in its entirety
Section 17.79.030 is hereby deleted in its entirety
Section 17.79.040 is hereby deleted in its entirety
Section 17.79.050 is hereby deleted in its entirety
Section 17.79.060 is hereby deleted in its entirety
Section 17.79.070 is hereby deleted in its entirety
Section 17.79.080 is hereby deleted in its entirety
SECTION 5. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent 4897-5892-6027 v1 6
jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this Ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.

SECTION 6. Posting. The City Clerk shall certify to the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code section 36933 as required by law.

SECTION 7. This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving the first reading, except by title, at a regular meeting thereof held on the 25th day of August, 2026, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________, 2026, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
ERICA SONNE, City Clerk

CITY OF KING
By:

MIKE LEBARRE, Mayor

APPROVED AS TO LEGAL FORM
By:

ROY C. SANTOS, City Attorney
Burke, Williams & Sorensen, LLP
4897-5892-6027 v1 7
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Ordinance passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.

Item No. 9(C)

REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 8, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF A PROFESSIONAL SERVICES

AGREEMENT WITH MORENO CONSULTING SERVICES LLC

FOR FINANCE MANAGEMENT SERVICES
RECOMMENDATION:

It is recommended that the City Council authorize the City Manager to enter into a Professional Services Agreement with Moreno Consulting Services LLC for Finance Management Services through June 30, 2027 in an amount not to exceed $120,000.

BACKGROUND:

Following the departure of the City's long-serving Finance Director, staff evaluated the City's finance operations and determined that immediate support was necessary to maintain continuity, strengthen internal controls, and ensure timely financial reporting.

The City conducted an extended recruitment for a full-time Finance Manager.

After interviewing three candidates, the recruitment panel determined that none met the City's needs. Following an additional recruitment period, only two applications were received, and neither applicant responded to requests for an interview. As a result, staff determined that interim professional support was necessary while continuing efforts to recruit a qualified Finance Manager.

Staff evaluated proposals from Moreno Consulting Services LLC and Regional Government Services and determined that Moreno Consulting Services LLC provided the best fit based on its ability to provide both direct financial management support and training to City staff.

CITY COUNCIL/CITY

CONSIDERATION OF CONSIDERATION OF THE PROPOSED CREATION OF

A FULL TIME FINANCE MANAGER POSITION
MARCH 10, 2026
PAGE 2 OF 3
The City subsequently entered into a three-month agreement with Moreno Consulting Services LLC, with a not-to-exceed amount of $15,000. During this initial engagement, the consultant has:
• Completed outstanding monthly bank reconciliations;
• Updated and reconciled grant, medical, and CalPERS accounts; • Addressed backlogs in payments and receivables;
• Improved financial reporting and budget management practices; • Trained department directors and managers on financial reporting and budget management;
• Provided ongoing training to the City's Finance Technician; and • Supported the City's budget development process.

The services provided have met, and in several areas exceeded, staff's expectations. The engagement has not only addressed critical finance functions but has also strengthened the City's internal capacity through staff training and improved processes.

Staff recommend extending the agreement through June 30, 2027, to provide continuity through the City's upcoming budget cycle while the City continues its efforts to recruit a permanent, full-time Finance Manager. The agreement would be in an amount not to exceed $120,000. Staff's goal is to fill the position in approximately April 2027 and, if feasible, provide an overlap period with Moreno Consulting Services LLC to facilitate a smooth transition.

DISCUSSION:

The purpose of this item is to provide the City Council with the opportunity to review and evaluate staff’s recommendations to enter into a professional services agreement for Finance management services through June 30, 2027.

This approach provides operational continuity, maintains compliance with reporting obligations and positions the City for improved fiscal sustainability. This also provides a better bridge to establish an in-house Finance Manager.

COST ANALYSIS:

There will be no additional cost associated with this recommendation. The do not exceed amount of $120,000 for a Finance Management Services in the agreement have been appropriated in the current budget for the contract Finance Director with expenditures coming from the General Fund, Sewer Tax and the Gas Tax.

CITY COUNCIL/CITY

CONSIDERATION OF CONSIDERATION OF THE PROPOSED CREATION OF

A FULL TIME FINANCE MANAGER POSITION
MARCH 10, 2026
PAGE 3 OF 3
ENVIRONMENTAL REVIEW:

The hiring of a Finance Manager is not considered a “project” for the purposes of the California Environmental Quality Act (CEQA). Therefore, the proposed action does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.

ALTERNATIVES:

The following alternatives are provided for Council consideration:

1. Approve staff’s recommendations and authorize recruitment for the new full-time Finance Manager position; or

2. Provide other directions to staff, including requests for additional information.

Exhibits:

1. Resolution

2. Professional Services Agreement

3. Moreno Consulting Services Proposal
RESOLUTION NO. 2026-5104

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING AUTHORIZING

THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES

AGREEMENT WITH MORENO CONUSLTING LLC FOR FINANCE

MANAGEMENT SERVICES
WHEREAS, following the departure of the City's long-serving Finance Director in March of 2026, staff evaluated the City's finance operations and determined that immediate support was necessary and,
WHEREAS, the City conducted an extended recruitment for a full-time Finance Manager resulting in no viable candidates and,
WHEREAS, as a result, staff determined that interim professional support was necessary while continuing efforts to recruit a qualified Finance Manager and, WHEREAS, staff evaluated proposals from Moreno Consulting Services LLC and Regional Government Services and,
WHEREAS, staff determined that Moreno Consulting Services LLC provided the best fit based on its ability to provide both direct financial management support and training to City staff and,
WHEREAS, the City subsequently entered into a three-month agreement with Moreno Consulting Services LLC, with a not-to-exceed amount of $15,000 and, WHEREAS, during this initial engagement, the consultant services provided have met, and in several areas exceeded, staff's expectations and, WHEREAS, staff recommend extending the agreement through June 30, 2027, to provide continuity through the City's upcoming budget cycle while the City continues its efforts to recruit a permanent, full-time Finance Manager and,
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

SECTION 1. That the City Council authorize the City Manager to enter into a Professional Services Agreement with Moreno Consulting Services LLC for Finance Management Services through June 30, 2027, in an amount not to exceed $120,000.

PASSED AND ADOPTED at a regular meeting of the City Council this 8th day of September 2026, by the following vote:

AYES:

NAYS:

Exhibit 1
ABSENT:

ABSTAIN:
______________________________
Mike Lebarre, Mayor
ATTEST:
___________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:
___________________________
Roy Santos, City Attorney
01222.0001/923571.1 1

AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF KING AND

MORENO CONSULTING SERVICES LLC
THIS CONTRACT SERVICES AGREEMENT (herein “Agreement”) is made and entered into this 8
th day of September, 2026, by and between the CITY OF KING, a municipal corporation (“City”) and MORENO CONSULTING SERVICES LLC (herein “Consultant”).

NOW, THEREFORE, the parties hereto agree as follows:

1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Consultant shall perform the work or services set forth in the “Scope of Services” attached hereto as Exhibit “A” further detailed in “Exhibit D” and incorporated herein by reference. Consultant warrants that it has the experience and ability to perform all work and services required hereunder and that it shall diligently perform such work and services in a professional and satisfactory manner.

1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction.

1.3 California Labor Law. If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by the Agreement.

2. COMPENSATION

2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with the “Schedule of Compensation” attached hereto as Exhibit “B” and incorporated herein by this reference, but not exceeding the maximum contract amount of One Hundred and Twenty Thousand Dollars ($120,000) (“Contract Sum”).

2.2 Invoices. Each month Consultant 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, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “B”, and 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. Consultant shall not invoice City for any duplicate services performed by more than one person.

Exhibit 2
2 01222.0001/923571.1
City shall independently review each invoice submitted by the Consultant 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 Consultant which are disputed by City, City will use its best efforts to cause Consultant to be paid within forty five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant 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 any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by the City of any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.3 Additional Services. 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 Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual cost of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum but not exceeding a total contract amount of Five Thousand Dollars ($5,000) or in the time to perform of up to ninety (90) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. 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.

3. PERFORMANCE SCHEDULE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance. Consultant 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 “C” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding thirty (30) 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 Consultant, 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 Consultant 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 shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section. 3 01222.0001/923571.1

3.4 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 1 month from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “C”). [The City may, in its sole discretion, extend the Term for 1 year additional one-year terms.]

4. COORDINATION OF WORK

4.1 Representative of Consultant. _Robert Moreno, Principal is hereby designated as being the representative of Consultant authorized to act on its behalf with respect to the work and services specified herein and make all decisions in connection therewith. All personnel of Consultant and any authorized agents shall be under the exclusive direction of the representative of Consultant. Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, and shall keep City informed of any changes.

4.2 Contract Officer. _Jose Arreola, City Manager [or such person as may be designated by the City Manager] is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and to make all decisions in connection therewith (“Contract Officer”).

4.3 Prohibition Against Subcontracting or Assignment. Consultant shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void.

4.4 Independent Consultant. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City with only such obligations as are consistent with that role. Consultant 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, or that it is a member of a joint enterprise with City. Consultant represents and warrants that the personnel used to provide services to the City pursuant to this Agreement are classified by Consultant as employees and that Consultant issues or will issue a W-2 to such personnel.

In the event that Consultant or any employee, agent, subcontractor, or independent contractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System (“CalPERS”) to be classified as other than an independent contractor for the City, then Consultant shall indemnify, defend, and hold harmless the City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to the City as a consequence of, or in any way attributable to, the assertion that Consultant or any of Consultant’s personnel used to provide the Services under this Agreement are other than independent contractors of the City. 4 01222.0001/923571.1

5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages. Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(c) Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
(e) Subcontractors. Consultant 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 include all of the requirements stated herein.
(f) General Insurance Requirements.
(a) Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants. 5 01222.0001/923571.1
(c) Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(g) Enforcement of contract provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers 6 01222.0001/923571.1
shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.
(o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(p) Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

5.2 Indemnification. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or 7 01222.0001/923571.1
condition of this Agreement, except claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination or expiration of this Agreement.

6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies 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 and shall keep such records for a period of three years following completion of the services hereunder. 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.

6.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement or as the Contract Officer shall require.

6.3 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than the City without prior written authorization from the Contract Officer.
(b) Consultant 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 Consultant gives the City notice of such court order or subpoena.
(c) If Consultant provides any information or work product in violation of this Agreement, then the City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct.
(d) Consultant shall promptly notify the City should Consultant 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 thereunder. The City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with the City and to provide the City with the opportunity to review any response to discovery requests provided by Consultant.

6.4 Ownership of Documents. All studies, surveys, data, notes, computer files, reports, records, drawings, specifications, maps, designs, photographs, documents and other materials (the “documents and materials”) prepared by Consultant in the performance of this 8 01222.0001/923571.1
Agreement shall be the property of the City and shall be delivered to the City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by the City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder.

Moreover, Consultant 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.

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 Los Angeles, State of California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Los Angeles, State of California.

7.2 Disputes; Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article.

7.3 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, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue any legal action under this Agreement.

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.

7.4 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 Consultant, except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Consultant 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 Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically 9 01222.0001/923571.1
approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant 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. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder, but not exceeding the compensation provided therefore in the Schedule of Compensation Exhibit “B”. 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.

7.5 Termination for Default of Consultant. If termination is due to the failure of the Consultant 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 Consultant 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 damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

8. MISCELLANEOUS

8.1 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that 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. Consultant shall take affirmative action to ensure 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.

8.2 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, 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 Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.3 Notice. 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 S. Vanderhurst Ave., King City, California 93930, and in the case of the Consultant, to the person(s) 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.

8.4 Integration; Amendment. 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. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 10 01222.0001/923571.1

8.5 Severability. In the event that part of 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 portions 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.

8.6 Waiver. No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. 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.

8.7 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 any be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees, whether or not the matter proceeds to judgment.

8.8 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.

8.9 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. 11 01222.0001/923571.1
RM

8.10 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 “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Consultant 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. Consultant 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 employee, as a result of consequence of obtaining or being awarded any agreement. Consultant 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.

Consultant’s Authorized Initials: RM

8.11 Corporate Authority. The persons executing this Agreement on behalf of the parties 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 The Following Page]
12 01222.0001/923571.1
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
__________________________________
Jose Arreola, City Manager
ATTEST:

Erica Sonne, City Clerk
APPROVED AS TO FORM:

Burke, Williams & Sorensen, LLP
Roy C. Santos, City Attorney
CONSULTANT:

Moreno Consulting Services LLC
Name: Roberto Moreno
Title: Principal
Address: 601 Andros St.

King City, CA 93930
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S

SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE

INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY By:

EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the following services:

A. Bring General Ledger Current
B. Support the City Manager in Preparation of the FY ’27-’28 & FY ’28-‘29 biennial Budget C. Tyler ERP Pro 10 System Administrator
D. Audit Management for FY 25-26
E. Improve Accounting Systems
F. Budget Management
G. Monthly Bank Reconciliations
H. Additional Support is listed in Exhibit D, “Proposal for Professional Services” II. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City updated of the status of performance by delivering the following status reports:

A. Monthly reports to City Council
B. Develop Month End Process Task Lists
C. Prepare MD&A for audited financial statements
III. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.

IV. Consultant will utilize the following personnel to accomplish the Services:

A. Angela Mejia
B. Josefina Deniz, Account Technician
01222.0001/923571.1 A-1
B-1
01222.0001/923571.1
EXHIBIT “B”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the following Services at the following rates and schedule:

Hourly Rate
Principal Consultant $195
Senior Associate $150
Junior Associate $135
II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 2.3.

III. The total compensation for the Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement.

IV. Consultant’s billing rates for all personnel are attached as Exhibit D EXHIBIT “C”

SCHEDULE OF PERFORMANCE
I. Consultant shall perform all services timely in accordance with the following schedule:

Task Period Covered Cost Estimate Task
Routine Monthly Financial
Services
Jul 2026 – Jun 2027 $20,000 Routine Monthly
Financial Services
Audit Management for FY
25-26 Audit
Jun 2026 – Dec 2026 $30,000 Audit Management
for FY 25-26 Audit
Manage Budget for FY 26-
27 Jun 2026 – Oct 2026 $10,000 Manage Budget for
FY 26-27
Prepare Budget for FY 27-
28 & 28-29
Jan 2027 – Jun 2027 $20,000 Prepare Budget for
FY 27-28 & 28-29
Tyler ERP Pro 10 System
Administrator
Jun 2026 – Jun 2027 $10,000 Tyler ERP Pro 10
System
Administrator
II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2.

EXHIBIT “D”

PROPOSAL FOR PROFESSIONAL SERVICES
Moreno Consulting Services, LLC
601 Andrus St.

King City, CA 93930
June 22, 2026
Submitted To:

Jose Arreola, City Manager
City of King
212 So. Vanderhurst Ave.

King City, CA 93930
Dear Mr. Arreola:

RE: Proposal to bring City’s financial reporting current We are pleased to submit this proposal to assist the City of King. The sections below outline the objective of the engagement, complete scope of work, fee structure, and the City's responsibilities required to ensure a successful engagement.

OBJECTIVE
The objective of this engagement is to bring the City current on its financial reporting obligations through June 30, 2026 and then to keep the City current going forward. This includes recording unrecorded revenues since former Finance Director left, completing outstanding bank statement reconciliations and ensuring the General Ledger is accurate and up to date for financial reporting purposes. All work is to be completed by June 30, 2027.

This is necessary because the City’s general ledger fell behind in some areas due to the departure of the former finance director and lack of training in finance personnel. As a result, not only were the bank reconciliations not kept up to date, some of the normal day-to-day work such as financial reporting and recording online revenues fell behind.

SCOPE OF SERVICES
Moreno Consulting Services will provide the following services:

Audit Management for FY ending in2026
• Prepare year-end closing entries (accruals, allocations, reimbursements, etc.) • Prepare all required audit workpapers (capital assets, long-term debt, reconciliations, etc.) • Manage the audit process through completion
• Meet with external auditors as needed throughout the engagement • Train staff on year-end audit process
• Prepare MD&A for audited financial statements
• Manage Single Audit process for federal grants
Manage Budget for FY 26-27

PROPOSAL FOR PROFESSIONAL SERVICES
Financial Reporting & Budget Management
• Prepare carryover appropriations at closing of FY 25-26 • Review 26-27 budget to see if projections are still valid • Prepare budget adjustments as needed
• Make line-items more descriptive
• Train staff in use of Incode for budget management
Prepare Budget for FY 27-28 & 28-29
• Prepare personnel costs worksheets
• Prepare budget worksheets for next 2 years in Incode
• Train City Manager and department heads how to use budget worksheets • Prepare revenue estimates
• Assist City Manager to develop budget document
Tyler ERP Pro 10 System Administrator
• Provide technical support to staff as needed
• Provide suggestions for improvement where necessary or beneficial • Train staff to make full use of ERP Pro 10
Routine Monthly Financial Services
• Reconcile bank statements
• Review revenue and expenditures for accuracy
• Prepare monthly financial reports for Council
• Develop month-end process task list for staff’s use
Additional Finance Support
• Assist with Accounts Receivable – sewer fees, leases, grants, etc. • Provide support for utility billing
• Facilitate assessment levies and collections
• Prepare State Controller reports
• Prepare financial reports to Council
• Assist with cash management
• Train staff to be able to take on more financial responsibilities • Assist with other finance special projects as requested by the City Manager

CITY'S RESPONSIBILITIES
The success of this engagement depends in part on the timely cooperation of City personnel, particularly finance staff. The City will be responsible for the following:
• Provide online access to the City's financial reporting system • Assign staff who can assist with researching and clarifying financial transactions • Respond promptly to information requests to avoid delays in the project timeline • Provide a workspace when working onsite
• Pay invoices promptly

PROFESSIONAL FEES
The following table summarizes the estimated cost by task and period covered. Professional fees will be billed monthly based on actual hours worked. The following estimates are based on currently known circumstances. If circumstances turn out different than expected, this will be discussed with the City as soon as it is clear the amount of effort required.

Task Period Covered Cost Estimate
Routine Monthly Financial Services Jul 2026 – Jun 2027 $20,000 Audit Management for FY 25-26 Audit Jun 2026 – Dec 2026 $30,000 Manage Budget for FY 26-27 Jun 2026 – Oct 2026 $10,000
Prepare Budget for FY 27-28 & 28-29 Jan 2027 – Jun 2027 $20,000 Tyler ERP Pro 10 System Administrator Jun 2026 – Jun 2027 $10,000 Additional Finance Support FY 2026-27 $30,000
Total Estimate $120,000
Hourly rates for this engagement are as follows. Audit workpaper preparation will be performed by a Principal Consultant; bank reconciliation work will be performed by a Junior Associate.

Title Hourly Rate
Principal Consultant $195
Senior Associate $150
Junior Associate $135

CLOSING
Thank you for the opportunity to submit this proposal and assist the City of King in addressing its audit, budget and financial reporting needs. We are committed to delivering thorough, accurate, and timely work that supports your team and helps bring the City's financial records current. After reviewing this proposal, please let me know a convenient time to discuss next steps.

Sincerely,
Roberto Moreno
Principal
Moreno Consulting Services, LLC
Moreno Consulting Services, LLC Proposal for Professional Services

Moreno Consulting Services, LLC
601 Andrus St.

King City, CA 93930
June 22, 2026
Submitted To:

Jose Arreola, City Manager
City of King
212 So. Vanderhurst Ave.

King City, CA 93930
Dear Mr. Arreola:

RE: Proposal to bring City’s financial reporting current We are pleased to submit this proposal to assist the City of King. The sections below outline the objective of the engagement, complete scope of work, fee structure, and the City's responsibilities required to ensure a successful engagement.

OBJECTIVE
The objective of this engagement is to bring the City current on its financial reporting obligations through June 30, 2026 and then to keep the City current going forward. This includes recording unrecorded revenues since former Finance Director left, completing outstanding bank statement reconciliations and ensuring the General Ledger is accurate and up to date for financial reporting purposes. All work is to be completed by June 30, 2027.

This is necessary because the City’s general ledger fell behind in some areas due to the departure of the former finance director and lack of training in finance personnel. As a result, not only were the bank reconciliations not kept up to date, some of the normal day-to-day work such as financial reporting and recording online revenues fell behind.

SCOPE OF SERVICES
Moreno Consulting Services will provide the following services:

Audit Management for FY ending in2026
• Prepare year-end closing entries (accruals, allocations, reimbursements, etc.) • Prepare all required audit workpapers (capital assets, long-term debt, reconciliations, etc.) • Manage the audit process through completion
• Meet with external auditors as needed throughout the engagement • Train staff on year-end audit process
• Prepare MD&A for audited financial statements
• Manage Single Audit process for federal grants
Manage Budget for FY 26-27

PROPOSAL FOR PROFESSIONAL SERVICES
Financial Reporting & Budget Management
Exhibit 3
Moreno Consulting Services, LLC Proposal for Professional Services

• Prepare carryover appropriations at closing of FY 25-26 • Review 26-27 budget to see if projections are still valid • Prepare budget adjustments as needed
• Make line-items more descriptive
• Train staff in use of Incode for budget management
Prepare Budget for FY 27-28 & 28-29
• Prepare personnel costs worksheets
• Prepare budget worksheets for next 2 years in Incode
• Train City Manager and department heads how to use budget worksheets • Prepare revenue estimates
• Assist City Manager to develop budget document
Tyler ERP Pro 10 System Administrator
• Provide technical support to staff as needed
• Provide suggestions for improvement where necessary or beneficial • Train staff to make full use of ERP Pro 10
Routine Monthly Financial Services
• Reconcile bank statements
• Review revenue and expenditures for accuracy
• Prepare monthly financial reports for Council
• Develop month-end process task list for staff’s use
Additional Finance Support
• Assist with Accounts Receivable – sewer fees, leases, grants, etc. • Provide support for utility billing
• Facilitate assessment levies and collections
• Prepare State Controller reports
• Prepare financial reports to Council
• Assist with cash management
• Train staff to be able to take on more financial responsibilities • Assist with other finance special projects as requested by the City Manager

CITY'S RESPONSIBILITIES
The success of this engagement depends in part on the timely cooperation of City personnel, particularly finance staff. The City will be responsible for the following:
• Provide online access to the City's financial reporting system • Assign staff who can assist with researching and clarifying financial transactions • Respond promptly to information requests to avoid delays in the project timeline • Provide a workspace when working onsite
• Pay invoices promptly
Moreno Consulting Services, LLC Proposal for Professional Services

PROFESSIONAL FEES
The following table summarizes the estimated cost by task and period covered. Professional fees will be billed monthly based on actual hours worked. The following estimates are based on currently known circumstances. If circumstances turn out different than expected, this will be discussed with the City as soon as it is clear the amount of effort required.

Task Period Covered Cost Estimate
Routine Monthly Financial Services Jul 2026 – Jun 2027 $20,000 Audit Management for FY 25-26 Audit Jun 2026 – Dec 2026 $30,000 Manage Budget for FY 26-27 Jun 2026 – Oct 2026 $10,000
Prepare Budget for FY 27-28 & 28-29 Jan 2027 – Jun 2027 $20,000 Tyler ERP Pro 10 System Administrator Jun 2026 – Jun 2027 $10,000 Additional Finance Support FY 2026-27 $30,000
Total Estimate $120,000
Hourly rates for this engagement are as follows. Audit workpaper preparation will be performed by a Principal Consultant; bank reconciliation work will be performed by a Junior Associate.

Title Hourly Rate
Principal Consultant $195
Senior Associate $150
Junior Associate $135

CLOSING
Thank you for the opportunity to submit this proposal and assist the City of King in addressing its audit, budget and financial reporting needs. We are committed to delivering thorough, accurate, and timely work that supports your team and helps bring the City's financial records current. After reviewing this proposal, please let me know a convenient time to discuss next steps.

Sincerely,
Roberto Moreno
Principal
Moreno Consulting Services, LLC