2022 Downtown MOU Staff Report - Final — Salinas City Council, March 22, 2022

DATE: MARCH 22, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: LISA BRINTON, ASSISTANT DIRECTOR
TITLE: 2022 DOWNTOWN GOVERNMENT CENTER MEMORANDUM OF UNDERSTANDING (MOU) RECOMMENDED MOTION:

A motion to approve a resolution
authorizing the Mayor to execute the 2022 Downtown Government Center Memorandum of Understanding (Downtown MOU) with the County of Monterey; and should Council authorize the execution of the MOU, establishing a new Capital Improvement Program (CIP) appropriation for the Parking Facility, authorizing transfers to the CIP Fund (5800) of $300,000 from the General Fund (1000) and $300,000 from Fund 5203 – Developers Contribution to cover City’s portion of Parking Facility Planning Activities expenses, and budgeting the reimbursement revenue from the County’s portion ($300,000) to Fund 5203.

RECOMMENDATION:

EXECUTIVE SUMMARY:

The Downtown MOU outlines an agreed upon approach for the City and County to coordinate planning activities for a Government Center and downtown Salinas as provided in the Downtown Vibrancy Plan (DVP) and to commit staff and financial resources to undertake identified planning activities. The three (3) primary areas of coordinating and planning are:

Parking Facility: development of a long-term parking solution, Land Use: incorporation of the vision identified within the DVP into all future downtown land use planning activities, and Mobility and Safety: provision of attractive, safe and convenient pedestrian linkages and green/open spaces.

The term of the Downtown MOU is five (5) years, expiring March 21, 2027. The terms of the MOU require that an annual review, including an update on the Schedule of Performance (Exhibit A to the MOU), be presented to the Council in January of each year. Staff from both agencies will continue to meet quarterly to review implementation progress and collaborate on other opportunities that arise. In addition to general coordination meetings, staff will continue to have more focused meetings on downtown parking and housing matters. This report provides a summary of the Downtown MOU terms and provisions, which is provided as an attachment to this report as Exhibit A to the resolution.

Should the Council authorize the execution of the MOU, a new Capital Improvement Program (CIP) appropriation for the Parking Facility would need to be established with an transfers to the CIP Fund (5800) of $300,000 from the General Fund and $300,000 from Fund 5203 – Developers Contribution to cover City’s portion of Parking Facility Planning Activities expenses. A revenue budget of $300,000 to 5230.00.0000-50.5703 is also required to process reimbursement received from the County for its portion of Planning Activity Costs.

BACKGROUND:

Since 2012, the County and the City have worked together under an existing MOU to develop a comprehensive planning and implementation program for a multi-agency campus-style Government Center located in and around downtown Salinas. Such collaboration was vital given each agency owns and/or occupies a significant share of downtown properties. This concentration of government offices in the downtown is beneficial for the efficient and effective provision of many government services and functions and is a key component of the economic health and well-being of downtown Salinas.

In 2015, the Downtown MOU was updated to acknowledge the mutual acceptance of the Downtown Vibrancy Plan (DVP) as a strategic planning document to guide the revitalization of downtown Salinas, including a comprehensively planned Government Center, and to agree to coordinate and collaborate on DVP implementation activities. The term of the 2015 MOU expired on October 31, 2020. In February 2021 the City Council and Board of Supervisors directed staff to return with an updated MOU for consideration as soon as possible, but no later than June 30, 2021. Since February 2021, City and County staff have worked diligently on the MOU update. Additional time was required to allow for more detailed discussion of parking facility planning activities including due diligence, project description, and feasibility.

DISCUSSION:

The 2022 Downtown MOU has three primary areas of focus for City and County planning coordination and collaboration on Government Center and DVP implementation. A summary of each focus area objective and primary planning and coordination activities is provided in Table 1 below.

Table 1
Area of Focus
Objective
Planning Activity
Planning Activity
Planning Activity
Parking Facility
Develop long-term alternative parking solution consistent with the DVP Project description and design
CEQA compliance
Funding strategy for construction and operations
Land Use
Incorporate the vision identified within the DVP into all future downtown land use planning activities Conduct studies and fiscal assessments necessary to evaluate City and County facility uses and needs Explore mixed use and/or affordable housing opportunities on City and County-owned properties in the downtown area Evaluate the potential reuse, preservation or replacement of County or City-owned historic buildings in the downtown Safety and Mobility
Provide for attractive, safe and convenient pedestrian linkages and green/open spaces consistent with the DVP No specific planning activities identified.

Parking Facility Planning Activities
Under the 2022 Downtown MOU the City and County (Parties) agree to work collaboratively toward a long-term parking solution, including undertaking planning activities to determine the feasibility of a joint use parking facility (Parking Facility). Section 1 of the MOU outlines how the Parties are to coordinate to undertake the planning activities identified in Exhibit A to the Downtown MOU (Schedule of Performance Parking Facility Activities). Key provisions include the following:

The City will lead Planning Activities in coordination with the County.

Parties will designate staff who will meet at least monthly to jointly develop project goals, objectives and actions,
prepare scopes of work and review proposals for requested Planning Activities, share Planning Activity progress and expenditure reports, and create and execute a community engagement strategy.

The County will contribute fifty percent (50%) of the costs of Planning Activities, as outlined in Exhibit C of the MOU. At this time the County Board of Supervisors has appropriated up to $300,000 to pay for its portion of Planning Activity costs.

Bring forward any approval documents related to the Parking Facility to its respective governing body for consideration.

Negotiate in good faith to determine the appropriate ownership/leasing structure and agreement for a Parking Facility, including identifying roles for the long-term management and financial support of the Parking Facility (Site Management Agreement).

Exhibit A to the Downtown MOU is a Schedule of Performance for Parking Facility Planning that includes a list of Planning Activities, identifies the lead party for implementation, and provides estimated completion dates.

Other Provisions
Term: 5 years (March 2022 to March 2027). The period of performance may be extended or shortened by written agreement of the Parties.

Schedule of Performance: Annual Report on Schedules of Performance are to be provided to the City Council and Board of Supervisors in January each year.

Amendments/Revisions: The MOU and/or Schedules of Performance may be amended by written consent and agreement of both Parties.

Right of Entry: Outlines the terms and conditions for Parties and their representatives to enter upon the other Party’s property to conduct Planning Activities.

Public Review and Comment
On February 7, 2022, the draft 2022 Downtown MOU was released for public comment. The draft MOU was posted on the City website, with notice being sent to downtown stakeholders including the Salinas Valley Chamber of Commerce, Salinas City Center Improvement Association (SCCIA), and Salinas Planning and Research Corporation (SPARC). Written comments on the Downtown MOU were received from February 7, 2022, to February 25, 2022. On March 7th, a City/County Joint Ad Hoc MOU committee met to review the MOU and the one comment letter received from SCCIA in support of the MOU (Attachment 2).

CEQA CONSIDERATION:

Section 15061 (b) (3) of CEQA Guidelines states that when it can be seen with certainty that there is no possibility that the activity in question, in this case the adoption of an MOU, may have a significant effect on the environment, the activity is not subject to CEQA. This MOU outlines the City and County’s intent for planning and policy coordination for the Downtown Government Center and downtown Salinas including Planning Activities for a Parking Facility. If recommended policies or actions progress to a “project” level further CEQA analysis will be required to address potential environmental impacts of the proposed project.

STRATEGIC PLAN INITIATIVE:

The 2022 Downtown MOU facilitates the continuation of the City and County’s mutual planning and implementation efforts related to the downtown government center and DVP implementation. Identified activities further City Council strategic plan initiatives of Investment Strategies/Risk Management, New Revenue, and Public Safety through the development of a long-term parking solution for the downtown, increasing mixed-use development opportunities, improving the efficiency and accessibility of government services, and improving safety and connectivity in and around the Salinas’ downtown.

DEPARTMENTAL COORDINATION:

Community Development Department, Advanced Planning and Project Implementation Division led the 2022 Downtown MOU update coordination for the City. Community Development, Economic Development (City Manager’s Office), and Public Works staff attend monthly City/County coordination meetings and contributed to the development of identified focus area objectives, Planning Activities and the Schedule of Performance.

FISCAL AND SUSTAINABILITY IMPACT:

Staff’s time to collaborate with the County on the preparation and implementation of the MOU is already allocated in the City’s budget for review of inter-agency projects and issues. There will be capital expenditures and other costs associated with implementing the proposed Planning Activities listed in the updated Downtown MOU Schedule of Performance (Exhibit A). In June 2021 the County Board of Supervisors appropriated up to $300,000 to pay for its portion, fifty percent (50%) of Planning Activity costs. Funding for the City’s portion (50%) will need to be appropriated. It is recommended that the City Council direct staff to establish a new Capital Improvement Program (CIP) for the Parking Facility with a supplemental appropriation of $600,000 for 5800.50.xxxx-63.5900 (Other Professional Services). This CIP’s funding source would be evenly split between the General Fund ($300,000) and Developer Contribution Fund 5203 ($300,000). A revenue budget of $300,000 to 5230.00.0000-50.5703 is also required to process reimbursement received from the County for its portion of Planning Activity Costs. The City’s contribution will be paid through the General Fund transfer.

ATTACHMENTS:

Resolution authorizing the Mayor to execute the 2022 Downtown MOU Exhibit A: draft 2022 Downtown MOU
SCCIA Comment Letter
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Salinas City CouncilMarch 22, 2022

Salinas City Council
March 22, 2022