Version: January 2021
AMENDMENT NO. 2 TO
AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND CSG CONSULTANTS, INC.
This Amendment No. 2 to the Agreement for Professional Services (the “Amendment”) is entered into this 26TH day of April 2022, by and between the City of Salinas (the “City”) and CSG Consultants, Inc. (the “Consultant”). City and Consultant may be individually referred to herein as a “Party” and collectively the City and Consultant may be referred to as the “Parties.”
RECITALS
WHEREAS, the City and Consultant first entered into an Agreement for Professional Services on June 22nd, 2021, pursuant to which Consultant agreed to provide certain services to the City in exchange for $350,000 compensation (the “Agreement”); and
WHEREAS, on January 11, 2022, the City Council authorized the execution of Amendment No. 1, increasing the total amount of compensation to $950,000, an increase of $600,000.
WHEREAS, the City and Consultant desire to amend the Agreement to increase the City’s capacity to complete plan review, permitting, and inspections for multiple large development projects in a timely manner.
NOW, THEREFORE, in mutual consideration of the terms and conditions set forth below, the Parties agree to amend the Agreement as follows:
TERMS
1. The Agreement, Section 3. Compensation of the Agreement is amended as follows.
2. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation set forth in Exhibit B. The total amount of compensation to be paid under this Agreement will increase by $50,000 and shall not exceed $1,000,000.
3. All other covenants, terms, and conditions set forth in the Original Agreement and not amended by this Amendment No. 2 shall remain in full force and effect as if fully set forth herein.
IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and Consultant have entered into this Amendment No. 2 as of the date first written above.
CITY OF SALINAS
_________________________________________
Kimbley Craig, Mayor
Version: January 2021
APPROVED AS TO FORM:
___________________________________
Christopher A. Callihan, City Attorney
CSG CONSULTANTS, INC.
____________________________________
By: Cyrus Kianpour, P.E., P.L.S.
Its: President
____________________________________
By: Nourdin Khayata, P.E.
Its: Secretary
AGREEMENT
FOR PROFESSIONAL SERVICES
BETWEEN
THE CITY OF SALINAS AND
CSG CONSULTANTS, INC.
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Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4
1. Scope of Service. ................................................................................................................. 4
2. Term; Completion Schedule. ............................................................................................... 4
3. Compensation. ..................................................................................................................... 4
4. Billing. ................................................................................................................................. 4
5. Meet & Confer. .................................................................................................................... 5
6. Additional Copies................................................................................................................. 5
7. Responsibility of Consultant. ............................................................................................... 5
8. Responsibility of City. ......................................................................................................... 5
9. Acceptance of Work Not a Release. .................................................................................... 6
10. Indemnification and Hold Harmless. ................................................................................... 6
11. Insurance. ............................................................................................................................. 6
12. Access to Records. ............................................................................................................... 6
13. Non-Assignability. ............................................................................................................... 6
14. Changes to Scope of Work. ................................................................................................. 7
15. Ownership of Documents. ................................................................................................... 7
16. Termination. ......................................................................................................................... 7
17. Compliance with Laws, Rules, and Regulations. ................................................................ 8
18. Exhibits Incorporated. .......................................................................................................... 8
19. Independent Contractor. ....................................................................................................... 8
20. Integration and Entire Agreement. ....................................................................................... 8
21. Jurisdiction and Venue. ........................................................................................................ 8
22. Severability .......................................................................................................................... 9
23. Notices. ................................................................................................................................ 9
24. Nondiscrimination................................................................................................................ 9
25. Conflict of Interest. ............................................................................................................ 10
26. Headings. ........................................................................................................................... 10
27. Attorneys’ Fees .................................................................................................................. 10
28. Non-Exclusive Agreement. ................................................................................................ 10
29. Rights and Obligations Under Agreement. ........................................................................ 10
30. Licenses.............................................................................................................................. 10
31. Counterparts. ...................................................................................................................... 10 DocuSign Envelope ID: A390DDD1-0C00-422D-B926-8CC25C9E8922
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32. Legal Representation. ........................................................................................................ 10
33. Joint Representation. .......................................................................................................... 11
34. Warranty of Authority........................................................................................................ 11
35. No Waiver of Rights. ......................................................................................................... 11 Exhibit A – Insurance Requirements ............................................................................................ 13 Exhibit B – Scope of Service ......................................................... Error! Bookmark not defined.
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AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND CSG CONSULTANTS, INC.
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 22nd day of June, 2021, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and CSG Consultants Inc., a California corporation, (hereinafter “Consultant”).
RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, City and Consultant agree as follows:
TERMS
1. Scope of Service. The project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto and incorporated herein by reference.
2. Term; Completion Schedule. This Agreement shall commence on July 1, 2021, and shall terminate on June 30, 2022, unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties and may be terminated only pursuant to the terms of this Agreement. Consultant shall fully comply with all timelines for performance of its consulting services set forth in Exhibit B.
3. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $350,000.
4. Billing. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice.
Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
(A) A brief description of services performed;
(B) The date the services were performed;
(C) The number of hours spent and by whom;
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(D) A brief description of any costs incurred; and
(E) The Consultant’s signature.
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.
City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.
5. Meet & Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.
6. Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.
7. Responsibility of Consultant.
(A) By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.
(B) Consultant shall assign a single Project Director to have overall responsibility for the execution of this Agreement for Consultant. John LaTorra, is hereby designated as the Project Director for Consultant. Any changes in the Project Director designee shall be subject to the prior written acceptance and approval of the City Manager.
8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the DocuSign Envelope ID: A390DDD1-0C00-422D-B926-8CC25C9E8922
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projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.
(B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C) Megan Hunter, Community Development Director, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D) Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.
9. Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.
10. Indemnification and Hold Harmless. Consultant shall defend, indemnify, and hold harmless the City and its officers, officials, employees, volunteers, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder, including the performance of work of any of Consultant’s subcontractors or agents, or Consultant’s failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.
11. Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.
12. Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours.
Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.
13. Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.
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14. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes.
Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.
15. Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.
16. Termination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
(2) For any reason whatsoever.
(B) Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
(1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.
(C) In the event that this Agreement is terminated by City for any reason, Consultant shall:
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(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and
(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.
17. Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.
18. Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.
19. Independent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.
20. Integration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.
21. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.
Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.
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22. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.
23. Notices.
(A) Written notices to the City hereunder shall, until further notice by City, be addressed to:
Community Development Director
City of Salinas
65 W. Alisal Street
Salinas, California 93901
With a copy to:
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
Mr. Cyrus Kianpour, P.E., P.L.S.
President
CSG Consultants
550 Pilgrim Drive
Foster City, California 94404
(C) The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.
(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.
24. Nondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.
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25. Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.
26. Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.
27. Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.
28. Non-Exclusive Agreement. This Agreement is non-exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.
29. Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.
30. Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.
31. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
32. Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.
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33. Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.
34. Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.
35. No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof.
Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.
CITY OF SALINAS
____________________________
Kimbley Craig
Mayor
APPROVED AS TO FORM:
_________________________
□ Christopher A. Callihan, City Attorney, or
□ Rhonda Combs, Assistant City Attorney
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CONSULTANT
_________________________________
By: Cyrus Kianpour, P.E., P.L.S.
Its: President
________________________________
By: Nourdin Khayata, P.E.
Its: Secretary
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Exhibit A- Insurance Requirements
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
(A) Commercial General Liability (“CGL”): Insuranc e Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (B) Automobile Liability: ISO Form CA 0001 covering any auto, or if Consult ant has no owned autos, hired and non -owned, with limit s no less than $1,000,000 per accident for bodily injury and property damage.
(C) Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
(D) Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed , with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or 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.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
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Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultant to and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Dat e prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
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Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all sub-consultants and/or subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Maintenance of Insurance
Maintenance of insurance by Consultant as specified shall in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.
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CSG Consultants, Inc. Contract Rates
City of Salinas
Plan Review
Complete plan review - 65% of .65 x building permit fee Structural only plan review - 50% of .65 x building permit fee Complete plan review (hourly & 4th review onwards) - $106 hourly Structural only plan review (hourly & 4th review onward) — $116 hourly Plumbing, Mechanical, and Electrical plan review - $106 hourly Complete plan review (onsite at Salinas) - $123 hourly, 4-hour minimum Building Official - $149 hourly
Inspection
Combination inspector (with CSG vehicle in Salinas) - $106 hourly, 4-hour minimum
Fire Services
Fire sprinkler, alarm systems, site access, etc. plan review and inspection (with CSG vehicle in Salinas) - $123 hourly, 4-hour minimum
Certified Access Specialist Consulting
CASp Plan Review or Consultation (offsite) - $116 hourly CASp Consultation or Inspection (onsite at Salinas) - $149 hourly, 4-hour minimum
Scanning Services
Included in plan review fees
Archiving/Other Plans
$3.00 per sheet larger than 11" x 17"
$1.00 per sheet 11" x 17" and smaller
All hourly rates include overhead costs including, but not limited to, salaries, benefits, Workers Compensation Insurance, travel and office expenses. Overtime work will be billed at 1.5x the hourly rates indicated in the table above. Rates will remain effective through June 30, 2022. Thereafter, CSG will initiate a rate increase based on change in CPI-W for the applicable region. CSG will mail an invoice at the beginning of every month for services rendered during the previous month.
June 2, 2021
EXHIBIT B
DocuSign Envelope ID: A390DDD1-0C00-422D-B926-8CC25C9E8922
EXHIBIT B
Contacts
City of Salinas
Megan Hunter
Community Development Director
Permit Center
65 West Alisal Street
Salinas, CA 93901
831-758-7408
CSG Consultants, Inc.
John LaTorra
Regional Manager
550 Pilgrim Drive
Foster City, CA 94404
Phone: 650-208-4264
Fax: 650-522-2599
DocuSign Envelope ID: A390DDD1-0C00-422D-B926-8CC25C9E8922 Page | 1
RESOLUTION NO. 22136 (N.C.S.)
A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO AGREEMENTS
FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF SALINAS AND CSG CONSULTANTS INC., 4LEAF INC. AND BUREAU VERITAS NORTH AMERICA INC.
WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378); and
WHEREAS, the Permit Services Division has relied upon various professional services groups to assist with building official, plan review, permitting, and inspection services; and
WHEREAS, the City has identified the following three firms: CSG Consultants Inc., 4LEAF Inc., and Bureau Veritas North America Inc. that have the capacity to provide services and staff specifically tailored to manage the development process and can provide all levels of building official, plan review, permitting, and inspection services to the Permit Center; and
WHEREAS, CSG Consultants Inc., 4LEAF Inc. and Bureau Veritas North America, Inc. have extensive knowledge and experience in providing technical services to building departments throughout multiple jurisdictions in California and employ staff that have the requisite certification, training, and experience to perform the work necessary to meet the City’s needs; and
WHEREAS, contract services allow for the scaling up of staffing resources in a budget conscious manner to respond to applications in a timely manner when workload dramatically increases due to economic growth, and maintain the City’s workforce when there is an economic downturn; and
WHEREAS, the Permit Services Division strives to offer a complete complement of permitting and inspection services particularly for more complicated projects and is ab le to use more experienced contract workforce; and
WHEREAS, the Permit Services Division requires the services of an Interim Building Official while the position is vacant; and
WHEREAS, CSG Consultants Inc., 4LEAF Inc. and Bureau Veritas North America have been providing permitting services in the City for years and have a demonstrated record of quality performance in a timely and cost-effective manner; and
WHEREAS, contracting with new companies would require addition al staff training and as a result would be more expensive and time intensive; and
WHEREAS, there are no other vendors within the City of Salinas or the County of Monterey at this time that can perform this level of work; and
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WHEREAS, the costs associated with these agreements will be fully recouped with collected permit fees directly from the Permit Services Enterprise Fund; and
WHEREAS, given the history of work performed for the City by each of these companies and their familiarity with the City practices and policies and its customers, a low-based bid is not likely to serve the best interests of the City, yield the best value to the City, or result in the lowest price; and
WHEREAS, the City Council has authority pursuant to Salinas Municipal Code Section 12-28.080 to authorize the proposed agreements without application of the local purchasing preference.
NOW, THE REFORE, BE IT RESOLVED the Salinas City Council authorizes the Mayor to enter into professional services agreements with CSG Consultants Inc., 4LEAF Inc. and Bureau Veritas North America, Inc. in an amount not to exceed $450,000 through the 2021-2022 fiscal year.
BE IT FURTHER RESOLVED that the Mayor, and her designee, are authorized to take whatever additional action may be necessary to effectuate the intent of this resolution.
PASSED AND APPROVED this 22nd day of June 2021, by the following vote:
AYES: Councilmembers: Barrera, Cromeenes, González, Osornio, Rocha, McShane and Mayor Craig
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
___________________
Kimbley Craig, Mayor
ATTEST:
__________________________
Patricia M. Barajas, City Clerk
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CSG Consultants, Inc. Contract Rates
City of Salinas
Plan Review
Complete plan review - 65% of .65 x building permit fee Structural only plan review - 50% of .65 x building permit fee Complete plan review (hourly & 4th review onwards) - $106 hourly Structural only plan review (hourly & 4th review onward) — $116 hourly Plumbing, Mechanical, and Electrical plan review - $106 hourly Complete plan review (onsite at Salinas) - $123 hourly, 4-hour minimum Building Official - $149 hourly
Inspection
Combination inspector (with CSG vehicle in Salinas) - $106 hourly, 4-hour minimum
Fire Services
Fire sprinkler, alarm systems, site access, etc. plan review and inspection (with CSG vehicle in Salinas) - $123 hourly, 4-hour minimum
Certified Access Specialist Consulting
CASp Plan Review or Consultation (offsite) - $116 hourly CASp Consultation or Inspection (onsite at Salinas) - $149 hourly, 4-hour minimum
Scanning Services
Included in plan review fees
Archiving/Other Plans
$3.00 per sheet larger than 11" x 17"
$1.00 per sheet 11" x 17" and smaller
All hourly rates include overhead costs including, but not limited to, salaries, benefits, Workers Compensation Insurance, travel and office expenses. Overtime work will be billed at 1.5x the hourly rates indicated in the table above. Rates will remain effective through June 30, 2022. Thereafter, CSG will initiate a rate increase based on change in CPI-W for the applicable region. CSG will mail an invoice at the beginning of every month for services rendered during the previous month.
June 2, 2021
EXHIBIT B
EXHIBIT B
Contacts
City of Salinas
Megan Hunter
Community Development Director
Permit Center
65 West Alisal Street
Salinas, CA 93901
831-758-7408
CSG Consultants, Inc.
John LaTorra
Regional Manager
550 Pilgrim Drive
Foster City, CA 94404
Phone: 650-208-4264
Fax: 650-522-2599
Version: January 2021
AMENDMENT NO. 1 TO
AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND BUREAU VERITAS NORTH AMERICA, INC.
This Amendment No 1 to the Agreement for Professional Services (the “Amendment”) is entered into this 26TH day of April 2022, by and between the City of Salinas (the “City”) and Bureau Veritas North America, Inc. (the “Consultant”). City and Consultant may be individually referred to herein as a “Party” and collectively the City and Consultant may be referred to as the “Parties.”
RECITALS
WHEREAS, the City and Consultant first entered into an Agreement for Professional Services on June 22nd, 2021, pursuant to which Consultant agreed to provide certain services to the City in exchange for $50,000 compensation (the “Agreement”); and
WHEREAS, the City and Consultant desire to amend the Agreement to increase the City’s capacity to complete plan review for multiple large development projects in a timely manner.
NOW, THEREFORE, in mutual consideration of the terms and conditions set forth below, the Parties agree to amend the Agreement as follows:
TERMS
1. The Agreement, Section 3. Compensation of the Agreement is amended as follows.
2. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation set forth in Exhibit B. The total amount of compensation to be paid under this Agreement will increase by $75,000 and shall not exceed $125,000.
3. All other covenants, terms, and conditions set forth in the Original Agreement and not amended by this Amendment No. 1 shall remain in full force and effect as if fully set forth herein.
IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and Consultant have entered into this Amendment No. 1 as of the date first written above.
CITY OF SALINAS
_________________________________________
Kimbley Craig, Mayor
APPROVED AS TO FORM:
___________________________________
Version: January 2021
Christopher A. Callihan, City Attorney
CSG CONSULTANTS, INC.
____________________________________
By: Gus Guerrero
Its: Chief Operating Officer/Vice-President
____________________________________
By: Craig Baptista
Its: Director of Operations
AGREEMENT
FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND
BUREAU VERITAS NORTH AMERICA, INC.
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Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4
1. Scope of Service. ................................................................................................................. 4
2. Term; Completion Schedule. ............................................................................................... 4
3. Compensation. ..................................................................................................................... 4
4. Billing. ................................................................................................................................. 4
5. Meet & Confer. .................................................................................................................... 5
6. Additional Copies................................................................................................................. 5
7. Responsibility of Consultant. ............................................................................................... 5
8. Responsibility of City. ......................................................................................................... 5
9. Acceptance of Work Not a Release. .................................................................................... 6
10. Indemnification and Hold Harmless. ................................................................................... 6
11. Insurance. ............................................................................................................................. 6
12. Access to Records. ............................................................................................................... 6
13. Non-Assignability. ............................................................................................................... 6
14. Changes to Scope of Work. ................................................................................................. 7
15. Ownership of Documents. ................................................................................................... 7
16. Termination. ......................................................................................................................... 7
17. Compliance with Laws, Rules, and Regulations. ................................................................ 8
18. Exhibits Incorporated. .......................................................................................................... 8
19. Independent Contractor. ....................................................................................................... 8
20. Integration and Entire Agreement. ....................................................................................... 8
21. Jurisdiction and Venue. ........................................................................................................ 8
22. Severability .......................................................................................................................... 9
23. Notices. ................................................................................................................................ 9
24. Nondiscrimination................................................................................................................ 9
25. Conflict of Interest. ............................................................................................................ 10
26. Headings. ........................................................................................................................... 10
27. Attorneys’ Fees .................................................................................................................. 10
28. Non-Exclusive Agreement. ................................................................................................ 10
29. Rights and Obligations Under Agreement. ........................................................................ 10
30. Licenses.............................................................................................................................. 10
31. Counterparts. ...................................................................................................................... 10 DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086
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32. Legal Representation. ........................................................................................................ 10
33. Joint Representation. .......................................................................................................... 11
34. Warranty of Authority........................................................................................................ 11
35. No Waiver of Rights. ......................................................................................................... 11 Exhibit A – Insurance Requirements ............................................................................................ 13 Exhibit B – Scope of Service ......................................................... Error! Bookmark not defined.
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AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND BUREAU VERITAS NORTH AMERICA, INC.
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 22nd day of June, 2021, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and Bureau Veritas North America, Inc., a California corporation, (hereinafter “Consultant”).
RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, City and Consultant agree as follows:
TERMS
1. Scope of Service. The project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto and incorporated herein by reference.
2. Term; Completion Schedule. This Agreement shall commence on July 1, 2021, and shall terminate on June 30, 2022, unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties and may be terminated only pursuant to the terms of this Agreement. Consultant shall fully comply with all timelines for performance of its consulting services set forth in Exhibit B.
3. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $50,000.
4. Billing. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice.
Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
(A) A brief description of services performed;
(B) The date the services were performed;
(C) The number of hours spent and by whom;
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(D) A brief description of any costs incurred; and
(E) The Consultant’s signature.
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.
City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.
5. Meet & Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.
6. Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.
7. Responsibility of Consultant.
(A) By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.
(B) Consultant shall assign a single Project Director to have overall responsibility for the execution of this Agreement for Consultant. Gene Paolini, is hereby designated as the Project Director for Consultant. Any changes in the Project Director designee shall be subject to the prior written acceptance and approval of the City Manager.
8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086
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projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.
(B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C) Megan Hunter, Community Development Director, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D) Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.
9. Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.
10. Indemnification and Hold Harmless. Consultant shall defend, indemnify, and hold harmless the City and its officers, officials, employees, volunteers, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder, including the performance of work of any of Consultant’s subcontractors or agents, or Consultant’s failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.
11. Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.
12. Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours.
Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.
13. Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.
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14. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes.
Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.
15. Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.
16. Termination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
(2) For any reason whatsoever.
(B) Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
(1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.
(C) In the event that this Agreement is terminated by City for any reason, Consultant shall:
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(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and
(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.
17. Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.
18. Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.
19. Independent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.
20. Integration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.
21. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.
Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.
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22. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.
23. Notices.
(A) Written notices to the City hereunder shall, until further notice by City, be addressed to:
Community Development Director
City of Salinas
65 W. Alisal Street
Salinas, California 93901
With a copy to:
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
Mr. Gene Paolini
Bureau Veritas North America, Inc.
180 Promenade Circle, Suite 150
Sacramento, California 95834
(C) The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.
(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.
24. Nondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.
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25. Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.
26. Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.
27. Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.
28. Non-Exclusive Agreement. This Agreement is non-exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.
29. Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.
30. Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.
31. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
32. Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.
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33. Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.
34. Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.
35. No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof.
Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.
CITY OF SALINAS
____________________________
Kimbley Craig
Mayor
APPROVED AS TO FORM:
_________________________
□ Christopher A. Callihan, City Attorney, or
□ Rhonda Combs, Assistant City Attorney
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CONSULTANT
____________________________________
By: Gus Guerrero
Its: Chief Operating Officer/Vice-President
________________________________
By: Craig Baptista
Its: Director of Operations
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Exhibit A- Insurance Requirements
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
(A) Commercial General Liability (“CGL”): Insuranc e Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (B) Automobile Liability: ISO Form CA 0001 covering any auto, or if Consult ant has no owned autos, hired and non -owned, with limit s no less than $1,000,000 per accident for bodily injury and property damage.
(C) Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
(D) Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed , with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or 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.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086
Professional Services Agreement Page 14 of 16 Bureau Veritas North American, Inc.
June 22, 2021
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultant to and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Dat e prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086
Professional Services Agreement Page 15 of 16 Bureau Veritas North American, Inc.
June 22, 2021
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all sub-consultants and/or subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Maintenance of Insurance
Maintenance of insurance by Consultant as specified shall in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.
DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086 BUREAU VERITAS 180 Promenade Circle, Suite 150, Sacramento, CA 95834 P 916.725.4200 | E [email protected] | www.bvna.com
EXHIBIT B - RATE SCHEDULE
1 Our pricing reflects our commitment to the success of the City of Salinas by helping you maintain significant quality and cost saving benefits moving forward.
These include:
• Reduced plan review turnaround times.
• Implementation of established electronic plan review processes • Commitment to maintain a proposed rate structure for the life of the initial contract period. • Highly qualified staff compensated commensurate with their duties and responsibilities. • Confidence of working with a well-established consultant in business for 193+ years.
Percentage of Fee
Review Percentage*
Full Plan Review 36% of City’s collected plan review fee Solar under 10 kW $175.00 Notes:
• Based on City Fee Schedule date July 1, 2018
• Solar projects will be reviewed electronically after submission through BVnet Hourly rates for project personnel are outlined below:
Staff Level Classifications Hourly Billing Rate*
Structural Plan Check Engineer $135 - $140 M/E/P Plan Check Engineer $125 - $140 Certified Plans Examiner $105 - $110
Certified Building Inspector $90 - $100 CASp Plan Review / CASp Inspector $120 / $140 Certified Plan Technician / Permit Technician $60 - $70 Epedite Review 1.25 x the rates above *Expedite plan review will be an additional 25% of fees shown above. *Overtime will be an additional 25% of the fees shown above. No overtime will be charged without approval. *Minimum plan check fee - $250.
*Percentages include the initial check, plus 2 rechecks. Any additional checks, or plan revisions, will be charged at the hourly rate shown.
PROFESSIONAL SERVICES, CITY OF SALINAS
JUNE 2, 2021
SCHEDULE OF RATES
Proposal No. 2765597
DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086 Page | 1
RESOLUTION NO. 22136 (N.C.S.)
A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO AGREEMENTS
FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF SALINAS AND CSG CONSULTANTS INC., 4LEAF INC. AND BUREAU VERITAS NORTH AMERICA INC.
WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378); and
WHEREAS, the Permit Services Division has relied upon various professional services groups to assist with building official, plan review, permitting, and inspection services; and
WHEREAS, the City has identified the following three firms: CSG Consultants Inc., 4LEAF Inc., and Bureau Veritas North America Inc. that have the capacity to provide services and staff specifically tailored to manage the development process and can provide all levels of building official, plan review, permitting, and inspection services to the Permit Center; and
WHEREAS, CSG Consultants Inc., 4LEAF Inc. and Bureau Veritas North America, Inc. have extensive knowledge and experience in providing technical services to building departments throughout multiple jurisdictions in California and employ staff that have the requisite certification, training, and experience to perform the work necessary to meet the City’s needs; and
WHEREAS, contract services allow for the scaling up of staffing resources in a budget conscious manner to respond to applications in a timely manner when workload dramatically increases due to economic growth, and maintain the City’s workforce when there is an economic downturn; and
WHEREAS, the Permit Services Division strives to offer a complete complement of permitting and inspection services particularly for more complicated projects and is ab le to use more experienced contract workforce; and
WHEREAS, the Permit Services Division requires the services of an Interim Building Official while the position is vacant; and
WHEREAS, CSG Consultants Inc., 4LEAF Inc. and Bureau Veritas North America have been providing permitting services in the City for years and have a demonstrated record of quality performance in a timely and cost-effective manner; and
WHEREAS, contracting with new companies would require addition al staff training and as a result would be more expensive and time intensive; and
WHEREAS, there are no other vendors within the City of Salinas or the County of Monterey at this time that can perform this level of work; and
DocuSign Envelope ID: 860BECD3-76E7-4D73-BD33-B9C9BDE4029D DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086 Page | 2
WHEREAS, the costs associated with these agreements will be fully recouped with collected permit fees directly from the Permit Services Enterprise Fund; and
WHEREAS, given the history of work performed for the City by each of these companies and their familiarity with the City practices and policies and its customers, a low-based bid is not likely to serve the best interests of the City, yield the best value to the City, or result in the lowest price; and
WHEREAS, the City Council has authority pursuant to Salinas Municipal Code Section 12-28.080 to authorize the proposed agreements without application of the local purchasing preference.
NOW, THE REFORE, BE IT RESOLVED the Salinas City Council authorizes the Mayor to enter into professional services agreements with CSG Consultants Inc., 4LEAF Inc. and Bureau Veritas North America, Inc. in an amount not to exceed $450,000 through the 2021-2022 fiscal year.
BE IT FURTHER RESOLVED that the Mayor, and her designee, are authorized to take whatever additional action may be necessary to effectuate the intent of this resolution.
PASSED AND APPROVED this 22nd day of June 2021, by the following vote:
AYES: Councilmembers: Barrera, Cromeenes, González, Osornio, Rocha, McShane and Mayor Craig
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
___________________
Kimbley Craig, Mayor
ATTEST:
__________________________
Patricia M. Barajas, City Clerk
DocuSign Envelope ID: 860BECD3-76E7-4D73-BD33-B9C9BDE4029D DocuSign Envelope ID: 47184BCE-9EF9-43D7-A81F-306DC10AD086 BUREAU VERITAS 180 Promenade Circle, Suite 150, Sacramento, CA 95834 P 916.725.4200 | E [email protected] | www.bvna.com
EXHIBIT B - RATE SCHEDULE
1 Our pricing reflects our commitment to the success of the City of Salinas by helping you maintain significant quality and cost saving benefits moving forward.
These include:
• Reduced plan review turnaround times.
• Implementation of established electronic plan review processes • Commitment to maintain a proposed rate structure for the life of the initial contract period. • Highly qualified staff compensated commensurate with their duties and responsibilities. • Confidence of working with a well-established consultant in business for 193+ years.
Percentage of Fee
Review Percentage*
Full Plan Review 36% of City’s collected plan review fee Solar under 10 kW $175.00 Notes:
• Based on City Fee Schedule date July 1, 2018
• Solar projects will be reviewed electronically after submission through BVnet Hourly rates for project personnel are outlined below:
Staff Level Classifications Hourly Billing Rate*
Structural Plan Check Engineer $135 - $140 M/E/P Plan Check Engineer $125 - $140 Certified Plans Examiner $105 - $110
Certified Building Inspector $90 - $100 CASp Plan Review / CASp Inspector $120 / $140 Certified Plan Technician / Permit Technician $60 - $70 Epedite Review 1.25 x the rates above *Expedite plan review will be an additional 25% of fees shown above. *Overtime will be an additional 25% of the fees shown above. No overtime will be charged without approval. *Minimum plan check fee - $250.
*Percentages include the initial check, plus 2 rechecks. Any additional checks, or plan revisions, will be charged at the hourly rate shown.
PROFESSIONAL SERVICES, CITY OF SALINAS
JUNE 2, 2021
SCHEDULE OF RATES
Proposal No. 2765597
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-205, Version: 1
Direct Purchase of Police Equipment
Approve a Resolution authorizing the direct purchase of four 40MM Multi Launchers and accessories for a total cost not to exceed $16,278.46
City of Salinas Printed on 4/20/2022Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 26, 2022
DEPARTMENT: SALINAS POLICE DEPARTMENT
FROM: ROBERTO FILICE, CHIEF OF POLICE
BY: TONYA ERICKSON, MANAGEMENT ANALYST
TITLE: DIRECT PURCHASE OF POLICE EQUIPMENT
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the direct purchase of four 40MM Multi Launchers and accessories for a total cost not to exceed $16,278.46.
RECOMMENDATION:
Staff recommends that City Council approve the direct purchase of four 40MM Multi Launchers and accessories for a total cost not to exceed $16,278.46.
EXECUTIVE SUMMARY:
Assembly Bill 481, codified in Government Code sections 7070 through 7075 requires a law enforcement agency (LEA) to obtain approval from the applicable governing body prior to the funding, acquisition, or use of “Military Equipment” as defined by the Bill . As 40MM projectile launchers are defined as “Military Equipment” per AB 481, we are seeking City Council approval to purchase these items.
BACKGROUND:
Assembly Bill 481 – Military Equipment Funding, Acquisition, and Use, identifies the 40MM Projectile Launcher “Military Equipment” and as such requires City Council approved to purchase.
Projectile launchers have been used by the Salinas Police Department for many years and was initially used exclusively by the SWAT Team. In recent years, the 40MM launcher was expanded to Patrol to ensure access to for field-based officers. The 40MM launcher affords the ability to use less lethal impact munitions (sponge rounds/foam batons) in conjunction with de-escalation tactics when feasible. This allows officer to address a threat from a greater distance and provides an alternative option for deadly force when reasonable. This can potentially prevent a deadly force encounter.
Page | 2
Use of 40MM Launchers requires special training, and all SPD officers are now qualified for use of this equipment. These four new projectile launchers, and the associated accessories and cases, will be used to expand access within the Patrol Division and to intr oduce to the Investigations Unit. We currently have nine 40MM launchers assigned to the Patrol Division and two of these new launchers will be specifically assigned to Patrol Sergeants to ensure quick access to this equipment. The remaining two 40MM launchers will be assigned to the Investigations Division for use during high-risk operations.
The department is requesting approval for the direct purchase of four 40MM Multi Launchers, with associated accessories and cases, for a total cost not to exceed $16,278.46. There are no local vendors for the purchase of the specialized police equipment indicated above. We have found LC Action to consistently provide the most competitive prices for specialized police equipment. The City Council has the authority to approve th is direct purchase under Salinas Municipal code Section12-27 and without application of the local purchasing preference pursuant to Salinas Municipal Code Section 12-28.080.
POLICE COMMUNITY ADVISORY COMMITTEE:
The Police Chief and Sergeant James Godwin presented AB 481 – Military Equipment Funding, Acquisition, and Use to the Police Community Advisory Committee on March 30, 2022. The Committee was able to ask questions and provide comments. We will discuss this direct purchase request with the Police Community Advisory Committee at their next meeting on April 27, 2022.
CEQA CONSIDERATION:
Not a Project . The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Approving the purchase will support the City Council’s Strategic Plan Goal of Public Safety.
DEPARTMENTAL COORDINATION:
The Police Department and Legal Department have coordinated on the policy and requirements of Assembly Bill 481, and the Police Department will coordinate with the Finance Department during the purchasing process.
FISCAL AND SUSTAINABILITY IMPACT:
No additional funds are requested to support this purchase. Funds are appropriated and available within the Police Department’s Patrol Division budget, account 1000.40.4220-62.5120.
ATTACHMENTS:
Resolution
LC Action Quote
1 RESOLUTION NO. (N.C.S.)
RESOLUTION AUTHORIZING THE DIRECT PURCHASE OF
40MM PROJECTILE LAUNCHERS
WHEREAS, 40MM Projectile Launchers afford the ability to use less lethal impact munitions (sponge rounds/foam baton s) in conjunction with de -escalation tactics when feasible ; and
WHEREAS, the Salinas Police Department wishes to purchase additional 40MM Projectile Launchers to expand availability of th is equipment to Police Officers in the Patrol and Investigations Divisions; and
WHEREAS, there are no local vendors available for this specialized police equipment and LC Action Police Supply has provided a quote totaling $16,278.46 for four 40MM Launchers with accessories and case; and
WHEREAS, the City Council can approve this purchase pursuant to Salinas Municipal Code Section 12 -27 ( exception to low -bid based competition ) in contracting for equipment, materials, supplies and services and pursuant to Salinas Municipal Code 12 -28 (local purchasing preference).
NOW, THEREFORE, BE IT RESOLVED the Salinas City Council authorizes the direct purchase of four 40MM Launchers with accessories and cases from LC Action Police Supply for a total cost not to exceed $16,278.46.
PASSED AND APPROVED this 26th day of April, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
1088 N FIRST STREET
SAN JOSE CA 95112 Date Apr-07-2022
TEL: 408 294-2677 • FAX 408 294-6444
EMAIL: [email protected]
STATE OF CA SBE CERTIFICATION # 1017260
CUST#
QTY. PRICE TOTAL
4 2416.37 9665.48
4 420.00 1680.00
4 243.76 975.04
4 429.12 1716.48
4 144.94 579.76
4 62.85 251.40
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
$14,868.16
Notes: 9.250%
1375.30
35.00 $16,278.46
X300U ULTRA LED HANDGUN LIGHT SUREFIRE WEAPON LIGHT
Net 45
AIMPOINT 12841 PRO RIFLE OPTIC+ QRP2 SCREW MOUNT RED DOT SIGHT
T500 HARD CASE - PGL65-40 PUMP MULTI-LAUNCHER
XT07 SUREFIRE SWITCH REMOTE 7" DUAL X300 PICATINNY MOUNT A404 BRACKET MOUNTED ON COMBO RAIL W/ TWO 3" PICATINNY TYPE RAILS
To:
EVLACAIO VILLEGAS
SALINAS POLICE DEPT
P# 831-902-0999
EM: [email protected]
QUOTED BY
TOTAL
EST. DELIVERY
DESCRIPTION
P540-3 COLLAPSIBLE STK PGL65-40 40MM MULTI LAUNCHER PENN ARMS
LC ACTION POLICE SUPPLY
SUBTOTAL
SALES RATE
SALES TAX
SHIPPING
TERMS
Stacy Moore
F.O.B.
Ship To:
QUOTATION
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-206, Version: 1
Direct Purchase of Apex Officer Training Simulator System Approve a Resolution authorizing the direct purchase of the Apex Officer Pro Training Simulator Suite with hardware upgrade for a total cost not to exceed $67,500.
City of Salinas Printed on 4/20/2022Page 1 of 1
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Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 26, 2022
DEPARTMENT: SALINAS POLICE DEPARTMENT
FROM: ROBERTO FILICE, CHIEF OF POLICE
BY: TONYA ERICKSON, MANAGEMENT ANALYST
TITLE: DIRECT PURCHASE OF APEX OFFICER TRAINING
SIMULATOR SYSTEM
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the direct purchase of the Apex Officer Pro Training Simulator Suite with hardware upgrade for a total cost not to exceed $67,500.
RECOMMENDATION:
Staff recommends that City Council approve the direct purchase of the Apex Officer Pro Training Simulator Suite with hardware upgrade for a total cost not to exceed $67,500.
EXECUTIVE SUMMARY:
The Salinas Police Department is requesting approval to purchase the Apex Officer Training Simulator system to provide interactive crisis intervention, de-escalation, and use of force training for Department staff. The purchase of this system will increase the Police Departments ability to provide local training options for our staff while maximizing flexibility in scheduling duration and location of trainings.
BACKGROUND:
Approximately two years ago the Salinas Police Department began researching and evaluating virtual reality training system s to increase our internal training capacity. The Apex Officer Training system is an interactive crisis intervention, de -escalation, and use of force training simulator. The Apex Officer system was identified as the preferred training solution as it allows trainers to give presentations and classes, conduct interactive testing and assessments, and provide immersive hands-on scenario-based exercises with detailed debriefing and after -action reviews.
The purchase of this equipment will increase the Department’s capacity to provide on-site and local, thus reducing the costs and logistics involved with traditional training. The Apex Officer system allow trainings to be run by a single instructor with maximum portability in training location. Many other systems require a fixed location, while Apex Officer allows for customized Page | 2
set-up with the largest available training space. This flexibility allows training to take place in a variety of locations, utilizing less resources, and maximizing the flexibility in training schedules.
The Apex Officer system is portable, with the ability to easily transport from one location to another as the system is run by a laptop computer. The system allows for dynamic scenarios which can be customized by the available training location. The virtual reality headset delivers a 360- degree environment and multidirectional audio, and the microphone input allows for dynamic scenarios. The wireless system can provide its own WiFi signal and does not need to be connected to the system and includes a variety of virtual training weapons which use wireless connectivity.
The system also has a hot-swappable battery system to support extended training periods without having to shut down. The system provides a significant library of available scenarios, but also allows the trainer to provide real-time customization of the actions and responses of a community member in crisis during the scenario. Should force be used during a scenario, the system provides analytics and exact details regarding location, movements, actions, etc.
Govred Technology, Inc., the manufacturer and distributor of Apex Officer , has provided a proposal offering the Apex Officer – Pro Training Simulator for $47,500 which includes a discount of $50,868 from the original price of $98,368 . The proposal also offers the Apex Officer X2 – Hardware Upgrade for $20,000 , which includes a discount of $15,000 from the original price of $35,000. T he Salinas Police Department desires to purchase the upgraded hardware which represents a significant upgrade from VR industry standard equipment and provides improved comfort, noise cancelling t echnology, improved interactivity, improved hardware -software compatibility, and improved reliability. The total proposal cost is $67,500 and includes lifetime software upgrades included in the purchase price . There are no additional fees out side of th e purchase price.
The department is requesting approval for the direct purchase of the Apex Officer Pro Training Simulator Suite with Hardware Upgrade from Govred Technology, Inc. for a total cost not to exceed $67,500. Additional training systems were evaluated but found to offer equipment and scenarios that were less impressive at a comparable cost. Given the substantial discount offered in the attached proposal, as well as the inclusion of all future software updates included, the Apex Officer Pro Training Simulator Suite has proven to be the best available product at the lowest cost.
The Apex Officer Training Suite is a sole-source product from Govred Technology, Inc. The City Council has the authority to approve this direct purchase under Salinas Municipal code Section12- 27 and without application of the local purchasing preference pursuant to Salinas Municipal Code Section 12-28.080.
POLICE COMMUNITY ADVISORY COMMITTEE:
The Police Department plans to share information regarding the Apex Officer Training Simulator during the Police Community Advisory Committee’s next meeting on April 27, 2022. During that meeting, committee members will have an opportunity to learn more about this system and how it will be used at the Salinas Police Department.
Page | 3
CEQA CONSIDERATION:
Not a Project . The City of Salinas has determined that the proposed a ction is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Approving the purchase will support the City Council’s Strategic Plan Goal of Public Safety and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The Police Department will coordinate with the Finance Depar tment during the purchasing process.
FISCAL AND SUSTAINABILITY IMPACT:
No additional funds are requested to support this purchase. Funds are appropriated and available within the Police Department’s Patrol Division budget, account 1000.40.4220-62.5120.
ATTACHMENTS:
Resolution
Apex Officer Proposal
1 RESOLUTION NO. (N.C.S.)
RESOLUTION AUTHORIZING THE DIRECT PURCHASE OF
APEX OFFICER TRAINING SIMULATOR SYSTEM
WHEREAS, the Apex Officer Training Simulator system provide interactive crisis intervention, de-escalation, and use of force training; and
WHEREAS, the Salinas Police Department wishes to purchase the Apex Officer Training Simulator system to increase the ability to provide local training options for Police Officers while maximizing flexibility in scheduling duration and locations; and
WHEREAS, the Apex Officer Training Simulator system is a sole -source product and there are no local vendors available; and
WHEREAS, the City Council can approve this purchase pursuant to Salinas Municipal Code Section 12 -27 ( exception to low -bid based competition) in contracting for equipment, materials, supplies and services and pursuant to Salinas Municipal Code 12 -28 (local purchasing preference).
NOW, THEREFORE, BE IT RESOLVED the Salinas City Council authorizes the direct purchase of the Apex Officer Pro Training Simulator Suite with Hardware Upgrade from Govred Technology, Inc. for a total cost not to exceed $67,500.
PASSED AND APPROVED this 26th day of April, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Apex Officer Training Simulator
Interactive Crisis Intervention, De-Escalation, and Use of Force Training Simulator Proposal Prepared For:
James Godwin
Salinas Police Department
222 Lincoln Ave, Salinas, CA 93901
Business Sensitive: This document is confidential information and contains proprietary information belonging to Govred Technology Inc., and further acknowledges its obligation to comply with the provisions of this notice. © 2020 Govred Technology, Inc. All Rights Reserved.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
April 6, 2022
Dear James Godwin,
Thank you for your interest in the interactive Apex Officer virtual reality training simulator from Govred Technology, Inc. This proposal and attached sole source letter will provide you with the requested system information, specifications, pricing, and details for the system and equipment you’ve inquired about.
The Apex Officer training system is a comprehensive solution that is designed to allow trainers the ability to give presentations and classes, conduct interactive testing and assessment, and provide immersive hands-on scenario-based exercises with detailed debriefing and after-action reviews. Each Apex Officer system is designed to increase trainee knowledge, skills, and confidence in a safe, challenging environment that is highly interactive and engaging.
Through our history of providing innovative interactive simulation training solutions, Apex Officer has become widely regarded as a low-risk, highly reliable contracting, and business partner. We have the industry’s most dedicated and customer-committed sales and support team on staff and all Apex Officer customers receive the best technical service in the business, including free software updates, newly developed and released training content with new exercises and environments to keep trainee interest high and skills sharp.
On behalf of the entire Apex Officer team, I sincerely appreciate the consideration of our proposal for this requirement and also to have the opportunity to be of service to the men and women of Salinas Police Department.
Respectfully sent on April 6, 2022.
Chase Dittmer
Founder and CEO
Govred Technology, Inc.
Direct: 702-901-5344
chase@apexofficer.com
www.apexofficer.com
Business Sensitive: This document is confidential information and contains proprietary information belonging to Govred Technology Inc., and further acknowledges its obligation to comply with the provisions of this notice. © 2020 Govred Technology, Inc. All Rights Reserved.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
APEX OFFICER – PRO TRAINING SIMULATOR SUITE
Description
Qty
Price
Apex Officer®
– Pro Training Simulator
System Includes:●
Apex Officer Content Library●
High-Performance VR-Ready Workstation●
Virtual Reality Head Mounted Display●
Virtual Training Accessories●
Apex Wireless●
Dynamic Scenario Generator●
After Action Debriefing●
Advanced Officer Analytics●
Apex Reporting and Monitoring●
Apex Officer Training with Setup
1 $98,368.00
Apex Officer Content Library
Every Apex Officer training system includes 24/7 access to Apex Officer’s proprietary content library. Apex Officer's content library of virtual reality police and law enforcement training scenarios is the most extensive in the industry. With our unique blend of randomization, artificial intelligence, and voice recognition Apex Officer provides police departments and law enforcement agencies an infinite number of training opportunities and scenarios.
Inc.
High-Performance VR-Ready Workstation
Every Apex Officer simulator comes equipped with the world’s most powerful wearable workstation – optimized for free-roam experiences.
Each workstation computer is capable of delivering a truly immersive virtual reality experience at a smooth 90 frames per second to the headset.
●
Intel Core i7 Processor●
Nvidia GeForce GTX Graphics Card●
16GB DDR4 RAM●
NVMe Solid State Storage●
Windows 10 Pro 64-Bit Operating System●
Hot-Swappable Batteries
Inc.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
Virtual Reality Head Mounted Display (HMD)
Apex Officer utilizes a state-of-the-art virtual reality head-mounted display to create the world’s most realistic and immersive judgmental training simulator. With our HMD, we’re capable of producing active engagements from a 360-degree environment surrounding the trainees. Our systems utilize Dolby Atmos multi-directional audio technology and seamless software simulations that simulate different environments and situations that will challenge trainees.
Inc.
Virtual Training Accessories
Apex Officer proprietary Virtual Training Weapons and accessories are designed to look, weigh, and feel just like their real-life counterpart. We worked hand and hand with multiple engineers in designing the firearms and training equipment used in our simulations.
VR-Training Accessories Included:●
Apex-VTW-U1 (Universal Device)●
Apex-VTW-G1 (Pistol)●
Apex-VTW-T26 (Taser)●
Apex-VTW-R1 (Rifle)
Every Apex Officer Virtual Training Weapon is equipped with:● Up to 32 low power, ASIC sensors, for 360-degree coverage● Built-in 1000Hz IMU for low latency, high-resolution tracking● Bluetooth and wireless connectivity●
Rechargeable battery
Inc.
Apex Wireless (AW)
The Apex Wireless system is a proprietary combination of wireless networking systems working in harmony to deliver a fully immersive wireless virtual reality experience.●
4x Wireless Base Stations●
Bluetooth Transmitters and Receivers
Inc.
After Action Debriefing (AAD)
Our After-Action Debriefing system provides real-time monitoring, recording, and playback during debriefing sessions of trainees. Includes software and hardware that integrates into the Apex Officer line of simulators.
Inc.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
Advanced Officer Analytics (AOA)
Our Advanced Officer Analytics system provides law enforcement agencies with the opportunity to optimize their recent training activities and provides unprecedented learning opportunities for every officer using the simulator. With the AOA, police departments can track training results and behaviors for each individual officer that runs through the simulator.
With this data, the departments have an unprecedented insight into the strengths and weaknesses of each individual officer; thus, allowing for follow-up training exercises.
Inc.
Apex Reporting and Monitoring
Audio and picture in picture color video capture of trainee’s actions in a scenario that can be used for immediate or later debriefing and review. All footage can be scheduled for permanent deletion at a specified time interval (i.e. 24 hours, 72 hours, etc.).
Inc.
Apex Officer Training with Setup
Instructor/Operator Master course covering the Apex Officer system, hardware setup, software updates, troubleshooting, and more for up to 6 students.
Inc.
Apex Officer – Pro Training Simulator:
$98,368.00
First In California Discount:
-$50,868.00
Total:
$47,500.00
OPTIONAL UPGRADES
Apex Officer X2 – Hardware Upgrade:
$35,000.00
First In California Discount:
-$15,000.00
Total:
$20,000.00
Total With Optional Upgrades:
$67,500.00
Additional Notes:
Business Sensitive: This document is confidential information and contains proprietary information belonging to Govred Technology Inc., and further acknowledges its obligation to comply with the provisions of this notice. © 2020 Govred Technology, Inc. All Rights Reserved.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
-See Important Terms and Conditions Below-
Standard Terms and Conditions
1. Please make the purchase order (PO) out to GOVRED Technology, Inc.
2. Payment Terms: Net 30 from date of invoice.
3. Budgetary Pricing: This document is intended for budgeting purposes only and does not constitute a firm-fixed-price offer nor binding agreement.
4. U.S. Delivery Lead Time:
a.
Standard Production System: 35-60 Days ARO
b.
Custom System Production: 120-180 ARO dependent on the level of customization and component requirements.
5. Warranty: 12 Months from date of shipment.
6. If this sale is subject to Use Tax, then you are liable for the tax and should make payment direct to your taxing authority. However, we may collect Sales Tax for the following states: CA, FL, HI, IA, KY, MA, MI, NV, NY, UT, WA, WV.
7. Quote Valid: 30 days.
8. All prices are quoted in US Dollars ($USD).
9. Late Payment Penalties: Invoices not paid within 30 days of the invoice date will accrue interest at 2% per week.
Purchasing/Contracting Information
1. Company Name: Govred Technology, Inc.
2. Company Address: 5006 Bond St, Las Vegas, NV 89118
3. Order POC: Chase Dittmer
4. Order Email:
orders@apexofficer.com
5. Phone: 702-901-5344
6. Cage Code: 7Z1H2
7. Tax ID: 82-1742313
8. DUNS: 080742556
Business Sensitive: This document is confidential information and contains proprietary information belonging to Govred Technology Inc., and further acknowledges its obligation to comply with the provisions of this notice. © 2020 Govred Technology, Inc. All Rights Reserved.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
Sole Source Letter
Govred Technology, Inc.
5006 Bond St, Las Vegas, NV 89118
Phone: 702-901-5344
https://www.apexofficer.com
RE: Sole Source Letter
April 6, 2022
To Whom It May Concern:
This letter is to confirm that the Apex Officer®
Pro
Training Simulator and Apex Officer X1, X2, X3,
X4, X6, and X9 – Pro Training Simulator are all sole-source products, manufactured, sold, and distributed exclusively by Govred Technology, Inc. Currently, Govred Technology, Inc. is the sole manufacturer and provider of Apex Officer; nor any other company makes a similar or competing product. Additionally, no other vendors are legally permitted to provide the Apex Officer® product.
This product must be purchased directly by institutions from Govred Technology, Inc. at the address provided below. There are no agents or dealers authorized to represent this product.
There are no other like item(s) or product(s) available for purchase that would serve the same purpose or function because of the proprietary and exclusive Apex Officer® content library, training
modules, dynamic scenario generator, haptic feedback system, backpack-mounted modular workstations, virtual reality training technology accessories and more.
If you desire additional information, do not hesitate to contact me at 702-901-5344 at any time or visit our website at
https://www.apexofficer.com
.
Thank you for your interest in our products.
Sincerely,
Chase Dittmer
Co-Founder
Govred Technology, Inc.
5006 Bond St, Las Vegas, NV 89118
Phone: 702-901-5344
Email: chase@apexofficer.com
https://www.apexofficer.com/
Business Sensitive: This document is confidential information and contains proprietary information belonging to Govred Technology Inc., and further acknowledges its obligation to comply with the provisions of this notice. © 2020 Govred Technology, Inc. All Rights Reserved.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
The system is capable of having multiple officers train simultaneously as well as the ability to train beyond two officers at once with additional optional upgrades in the future. Apex Officer is currently the only simulator that can train beyond 2 officers at once. The system is portable, capable of transporting from one location to another with relative ease and run from a laptop. No other simulator ships with a laptop (use desktops which hinder the portability favor).
The microphone input allows for dynamic scenarios to be created with the environments created by Apex Officer.
A computer workstation capable of delivering a frame rate of 90 frames per second. A virtual reality headset capable of delivering a 360-degree environment and multidirectional audio.
Virtual training weapons use wireless connectivity to include a Glock, Sig Sauer or M&P handgun, AR-15 Patrol Rifle, Taser, and a universal device that can be utilized as a flashlight, baton, or OC spray.
A wireless system capable of providing its own WiFi signal that does not need to connect to an existing network.
Sufficient hot-swappable battery system to ensure extended training periods without having to shut down. (Apex Officer is the only simulator that utilizes hot-swappable batteries) After Action Debriefing capable.
Training users to operate the system.
One-time cost of the system with all future software updates included in the purchase price. The updates are provided at no additional cost. There is no additional fee (outside of the initial purchase price)
24/7 access to a content library.
Monthly roundtable to explore new features/functionality, best practices and general discussion points.
www.apexofficer.com
5006 Bond St, Las Vegas, NV 89118
702-901-5344
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-207, Version: 1
California Interagency Council on Homelessness Family Homelessness Challenge Grant Approve a Resolution approving the submission of a grant application for the Family Homelessness Challenge Grant, Round 1 to the California Interagency Council on Homelessness (Cal ICH) in the amount of $5.5 million dollars and authorizing the City Manager or designee to execute all required Agreements and other necessary documents to allow acceptance of an award and the implementation of the proposed project.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 26, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
TITLE: CALIFORNIA INTERAGENCY COUNCIL ON HOMELESSNESS
FAMILY HOMELESSNESS CHALLENGE GRANT
RECOMMENDED MOTION:
A motion to approve a Resolution approving the submission of a grant application for the Family Homelessness Challenge Grant, Round 1 to the California Interagency Council on Homelessness (Cal ICH) in the amount of $5.5 million dollars and authorizing the City Manager or designee to execute all required Agreements and other necessary documents to allow acceptance of an award and the implementation of the proposed project.
RECOMMENDATION:
It is recommended that the City Council approve a Resolution approving the submission of a grant application for the Family Homelessness Challenge Grant, Round 1 to the Cal ICH in the amount $5.5 million dollars and authorizing the City Manager or designee to execute all required Agreements and other necessary documents to allow acceptance of an award and the implementation of the proposed project.
EXECUTIVE SUMMARY:
Cal ICH has released a Request for Applications (RFA) for Family Homelessness Challenge Grant totaling $15 million to fund innovative applications that accelerate efforts by local jurisdictions and continuums of care to address and end family homelessness by making families’ experiences of homelessn ess rare, brief, and one -time. Unfortunately, Monterey County has a significant population of unsheltered homeless families. According to the 2019 Point in Time Count (PIT), nearly 600 family members were homeless in Monterey County, 51% of those were unho used.
This need is further demonstrated by the ongoing waiting list of homeless families for the SHARE Center. As a result, the Community Development Department reached out to potential partners to apply for this grant and identified Bay Area Community Services as a primary partner. City staff is requesting authorization to apply for a $5.5 million grant to expeditiously increase available units through a scattered site housing approach, build a coordinated case management system for families, and grow comm unity resources and service provider capacity in addressing family homelessness.
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BACKGROUND:
Family homelessness is a serious ongoing problem in the City of Salinas and throughout Monterey County. Aside from the most recent 2019 Homeless Point in Time Count that identified 1,182 persons as unhoused i n the City of Salinas , data collected by local school districts in 2019 also found more than 40 percent of elementary school -aged children in Salinas may be homeless. In mid-2021, the City and County of Monterey celebrated the opening of a new transitional shelter, the SHARE Center, to provide 100 additional shelter beds and robust housing navigation and placement services. From its inception, the SHARE Center has diligently worked to serve and place families in permanent housing. Despite this work, the City’s stock of affordable housing remains extremely limited, and a waiting list of over 200 individuals and families persists.
In 2017, the State created the Homeless Coordinating and Financing Council (HCFC) to oversee the coordinated implementation of Housing First policies, best practice guidelines, and regulations to reduce the prevalence and duration of homelessness in Califo rnia. In early 2022, the State reorganized HCFC to become what is now known as the California Interagency Council on Homelessness under the expressed mission to develop policies, identify resources, benefits, and services to prevent and work toward ending homelessness in California. In addition to interagency coordination and policy development, Cal ICH is mandated to coordinate funding while also promoting systems integration to increase efficiency and effectiveness of the homeless response system and the state and local level.
DISCUSSION:
In recent months, the State of California has taken significant steps forward in addressing homelessness across the state. Additional competitive funding opportunities continue to come forward through Cal ICH with an expressed purpose and intent to functionally end homelessness within five years. This Cal ICH Family Homelessness Challenge Grant represents another initial opportunity to obtain much needed financial support to provide comprehensive services to support permanent housing placements for families with minor children
The Council’s mission is to develop policies and to identify and coordinate resources, benefits, and services to prevent and work towards ending homelessness in California. In alignment with this mission and under Chapter 8 of Part 1 of Division 31 of the California Health and Safety Code, the Family Homelessness Challenge Grant was established for the purpose of providing one-time grants and technical assistance to local jurisdictions and c ontinuums of care to address and end family homelessness. FHC grants awarded through the RFA will support Cal ICH mandates by funding local demonstration projects that incorporate Housing First approaches to provide services to address the immediate crisis of families experiencing homelessness.
In support of its founding premise, Cal ICH is interested in better understanding how communities informed their actions to increase collaboration between Cal ICH, local jurisdictions, and Continuums of Care to a ssist local jurisdictions to support individuals access to safe and stable housing using Housing First approaches; and encourage data-informed, coordinated approaches to address unhoused families by establishing effective, scalable, and replicable demonstr ation projects. Under this grant opportunity, Cal ICH is seeking to fund innovative applications that accelerate efforts by local jurisdictions and continuums of care to address and end family Page | 3
homelessness by making families’ experiences of homelessness rare, brief, and one-time. For the purposes of this grant solicitation, innovative proposa ls are those which seek to complement, augment, or strengthen a community’s efforts to address and end f amily homelessness. To this end, funds awarded must be used to support only family households with dependent minors that are experiencing or are at imminent risk of experiencing homelessness. Total funding available for award through the competitive FHC -1 RFA is $15 million, with an additional $15 million in future FHC -2 funding coming available to initial awardees who demonstrate successful implementation, outcomes, and expenditures.
To formulate a competitive proposal, CDD - Housing & Community Development Division staff have identified Bay Area Community Services as a primary grant partner and are currently engaging with several other collaborative agencies and community partners to formulate a comprehensive service strategy focused on increasing the City’s available affordable housing stock. The following is the RFA’s timeline.
Round of Funding Event Date
FHC-1 RFA Release Date 3/1/22
FHC-1 Application Submission Deadline 4/30/22
FHC-1 Application Scoring and Ranking May/June 2022
FHC-1 Notice of Intent to Award 6/29/22
FHC-1 Deadline to Spend 50% of Award 6/30/24
FHC-1 & 2 Deadline to Spend All Funds 6/30/26
DEPARMENT COORDINATION:
The Cal ICH FHC grant will be administered by the City’s CDD – Housing & Community Development Division. Sub -recipient agreements will be executed with each collaborative partner. CDD will coordinate with the City’s Finance and Legal Departments to ensure regulatory compliance and the efficient, full disbursement of funds.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action – “approving the submission of a grant application for the Family Homelessness Challenge Grant, Round 1 to the California Interagency Council on Homelessness (Cal ICH) in the amount of $5.5 million dollars and authorizing the City Manager or designee to execute all required Agreements and other necessary documents to allow acceptance of an award” is not a project as defined by the California Environmental Quality Act (CEQA) Guidelines, Section 15378.
STRATEGIC PLAN INITIATIVE:
The proposed Cal ICH FHC Grant application is intended to assist unhoused City resident families move towards immediate and permanent housing options and provide supports to prevent any potential return to homelessness . Acceptance of a funding award and implementation of the proposed program addresses each of the Goals and Strategies identified in the Council’s 2022-23 Strategic Plan related to Housing/Affordable Housing.
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FISCAL AND SUSTAINABILITY IMPACT:
Funding received through Cal ICH FHC Program will be leveraged with additional funds from each of the grant’s collaborative partner s and existing City program services to support four full years of grant administration , outreach, housing navigation and placement , and post placement wraparound services. Round 1 awardees who remain in compliance with FHC-1 requirements and who demonstrate reasonable, sufficient progress towards their prioritized objectives are eligible to access additional FHC-2 funding to continue to expand the originally awarded program model or to offer new or additional services and supports to complement and support the FHC-1 program model.
ATTACHMENTS:
Resolution
1 RESOLUTION NO. (N.C.S.)
CALIFORNIA INTERAGENCY COUNCIL ON HOMELESSNESS FAMILY
HOMELESSNESS CHALLENGE GRANT
WHEREAS, The California Interagency Council on Homelessness released the request for applications for the Family Homelessness Challenge Program on March 1, 2022, with a total estimated available funding of $30,000,000; and
WHEREAS, The FHC Program seeks to fund local demonstration projects that provide services to address the immediate crisis of experiencing unhoused; and
WHEREAS, The City of Salinas Community Development Department plans to develop and submit a collaborative, competitive grant proposal no later than April 30, 2022, seeking up to $5.5 million in Round 1 and access to an additional $5.5 million in available future Round 2 funds; and
NOW, THEREFORE, BE IT RESOLVED that the City Council approves approve a Resolution approving the submission of a grant application for the Family Homelessness Challenge Grant, Round 1 to the California Interagency Council on Homelessness (Cal ICH) in the amount of $5.5 million dollars and authorizing the City Manager or designee to execute all required Agreements and other necessary documents to allow acceptance of an award and the implementation of the proposed project.
PASSED AND APPROVED this 26th day of April 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-216, Version: 1
Agreement with SCI Consulting Group for Cannabis Tax Assessment Services Approve a Resolution authorizing the City Manager to negotiate and execute a final Agreement with SCI Consulting Group with a not to exceed compensation amount of up to $150,000 to provide Commercial Cannabis Tax Assessment Services.
City of Salinas Printed on 4/20/2022Page 1 of 1
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 26, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: COURTNEY GROSSMAN, PLANNING MANAGER
TITLE: AGREEMENT WITH SCI CONSULTING GROUP FOR CANNABIS
TAX ASSESSMENT SERVICES
RECOMMENDED MOTION:
A motion to approve a resolution authorizing the City Manager or designee to negotiate and execute a final Agreement with SCI Consulting Group with a not to exceed compensation amount of up to $150,000 to provide Commercial Cannabis Tax Assessment Services and authorizing an increase to the General Fund Cannabis Monitoring appropriation of up to $120,000 and corresponding revenue budget for cannabis tax assessment and monitoring services includi ng auditing, inspection, and cannabis tax rate analysis and recommendations.
RECOMMENDATION:
It is recommended that the City Council approve a resolution authorizing the City Manager or designee to negotiate and execute a final Agreement with SCI Consulting Group with a not to exceed compensation amount of up to $150,000 to provide Commercial Cannabis Tax Assessment Servicesand authorizing an increase to the General Fund Cannabis Monitoring appropriation of up to $120,000 and corresponding revenue budget for cannabis tax assessment and monitoring services including auditing, inspection, and cannabis tax rate analysis and recommendations.
EXECUTIVE SUMMARY:
The City of Salinas regulates the establishment and the operation of a limited number of commercial cannabis businesses, including cultivation, dispensaries, manufacturing, distribution, and delivery services. To ensure that permitted cannabis business are operating in compliance with established regulations, including payment of required taxes, the City of Salinas engaged a consulting firm, Marcias Gini and O’Connell LLP (MGO) to pre pare commercial cannabis compliance reports and tax assessments. Late 2021 MGO notified the City that it was no longer able to provide commercial cannabis tax assessment services, and a Request for Proposals (RFP) was issued to identify a new firm. In March 2022, the Community Development Department sent out a Request for Proposals (RFP) , provided as an attachment to this report, seeking a new consultant team to provide cannabis tax assessment and monitoring services including auditing , inspection, and cannabis tax rate analysis and recommendations.
Page | 2
It is recommended that the City Council authorize the City Manager or designee to negotiate and execute a final Agreement with SCI Consulting Group, the selected consultant with a not to exceed compensation amount of up to $150,000 to provide Commercial Cannabis Tax Assessment Services. The City collects fees to cover the cost associated with the cannabis tax assessment and monitoring. The tax rate analysis and recommendation report is not directly covered by cannabis permittees, however, the City collects tax revenue annually that could support this cost, which should not exceed $30,000. This report was requested by City Council to ensure that the tax rates are reasonable and will not negatively impact the long-term sustainability of commercial cannabis businesses in Salinas.
BACKGROUND:
Commercial Cannabis is regulated in the City of Salinas by Municipal Code Chapter 5 – Public Peace and Morals under Article VII Cannabis. The City of Salinas regulates the establishment and the operation of a limited number of commercial cannabis bus inesses, including cultivation, dispensaries, manufacturing, distribution, and delivery services. Permits are awarded on a competitive basis and applications are only accepted during specified permitting rounds . To ensure that cannabis businesses are operating in compliance with regulations , including payment of required taxes, the City of Salinas had engaged consultant services to prepare commercial cannabis compliance reports and tax assessments. In the past, Marcias Gini and O’Connell LLP (MGO) prepared the assessment and compliance reports for the operational cannabis businesses.
In late 2021, MGO indicated they would no longer provide the service to the City of Salinas.
Additionally, concerns over the City’s cannabis tax rates arose during the City’s annual Cannabis Report to the City Council on February 15, 2022, prompting a request to evaluate the tax rates and prepare a Cannabis Taxation Recommendation Report. In March 2022, the Community Development Department sent out a Request for Proposal s (RFP), provided as an attachment to this report, seeking a new consultant team to provide cannabis tax assessment and monitoring services including auditing, inspection, and cannabis tax rate analysis and recommendations.
DISCUSSION:
Selection and Qualifications
Two proposals were received in response to the City’s RFP. Staff rated and ranked the proposals based on the five key criteria outlined in the RFP, which is attached to this staff report. SCI received the highest ranking based upon its expert knowledge of the local California cannabis industry coupled with its broad experience providing municipalities with regulation, implementation, tax consulting, public opinion research (polling) and tax -related community outreach consulting services. SCI qualifications include:
35 years of expertise in assisting public agencies in California with developing policy, and planning, justifying, and successfully establishing new revenues (taxes, fees, assessments, regulations) for their service and capital improvement needs and objectives and managing special levies,
being the very first consulting firm to provide a full suite of local cannabis policy implementation services to California municipalities,
Page | 3
developing the “6 Key Elements of Cannabis Implementation” approach that is the standard of the industry today, and
assisting for over 30 California municipalities with regulated cannabis policy and implementation over the past five years.
Scope of Work:
The proposed scope of work is comprised of three (3) components described below.
1) Commercial Cannabis Tax Assessments: SCI will subcontract with The Pun Group LLP, Certified Public Accountants, and Business Advisors , a full-service accounting firm , to provide a comprehensive annual auditing of cannabis businesses to ensure that the city receives full payment of all Measure L taxes and ensuring compliance with applicable laws.
2) Compliance Inspections and Reporting : SCI will provide onsite facility inspections for each commercial cannabis business and report to the City the results of inspections relative to the City’s local regulations and ordinances, conditions of approval, and State law.
3) Cannabis Taxation Recommendation Report : SCI will perform a comprehensive, financially focused analysis of the cannabis industry in the city, model different taxation methodologies and prepare a Cannabis Taxation Recommendation Report which makes recommendations regarding the optimal taxation approach. SCI recommendations are to be presented to City Council in August 2022.
A draft Agreement for Professional Services with SCI is attached to this report. It is recommended that the City Council authorize the City Manager or designee to negotiate and execute a final agreement with a not to exceed compensation amount of up to $150,000. Scope of work items 1 and 2 listed above are based on a set cost per cannabis business, the number of which can vary, but would not exceed the number of allowed permits. The term of the Agreement would be for one year.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) per Guidelines Section 15378. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This staff report and recommendations align with the following City Council Goals and Strategies of Economic Development and Effective and Culturally Responsive Government . Services provided under the proposed Agreement will support an efficient and well-run Cannabis Program that allows permitted cannabis businesses to operate and grow, resulting in increased revenue for the city.
DEPARTMENTAL COORDINATION:
Page | 4
Community Development Department staff consulted with Legal to develop the draft Agreement.
Should the Council authorize the City Manager to enter into the Agreement, the Community Development Department will continue to collaborate with Legal and the City Manager’s Office to finalize and execute the document.
FISCAL AND SUSTAINABILITY IMPACT:
Existing cannabis annual monitoring and application fees will offset the cost of services under this Agreement. The Cannabis Taxation Recommendation Report, which is budgeted for less than $30,000 is not offset by the permittees and would be covered by the General Fund. However, this cost can be absorbed by the existing FY 21/22 Current Planning Division budget . Funds will be encumbered for this cost. The tax reports and monitoring services will be encumbered in different phases as work is needed.
ATTACHMENTS:
1. Resolution
2. Draft Agreement for Professional Services
3. RFP for Commercial Cannabis Assessment and Monitoring Services (March 2022)
4. SCI Consulting Group Proposal (March 2022)
RESOLUTION NO. (N.C.S.)
AUTHORIZATION TO EXECUTE AGREEMENT WITH SCI CONSULTING GROUP (SCI) TO PROVIDE CANNABIS TAX ASSESSMENT SERVICES
WHEREAS, in March of 2022, the Community Development Department issued a Request for Proposals (RFP) to provide Commercial Cannabis Tax Assessment Services; and
WHEREAS, SCI Consulting Group (SCI) responded to the City’s RFP and adhered to the competitive bid process as defined in City of Salinas Municipal Code Chapter 12; and
WHEREAS, SCI Consulting Group received the highest ranking based upon its expert knowledge of the local California cannabis industry coupled with its broad experience providing municipalities with regulation, implementation, tax consulting, public opinion research (polling) and tax-related community outreach consulting services
WHEREAS, execution of the proposed Agreement is not a project as defined by CEQA Guidelines Section 15378 and, therefore, no environmental assessment is required.
WHEREAS, the Current Planning Division’s fiscal year 2022 budget is sufficient to accommodate the cost of preparation of a Cannabis Taxation Recommendation Report by SCI Consulting;
WHEREAS, the cost of up to $120,000 for the remining services under the agreement with SCI Consulting will be offset by existing cannabis monitoring and application fees.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes and directs the City Manager or designee to negotiate and execute an Agreement for Professional Services between the City of Salinas and SCI Consulting Group with a not to exceed compensation amount of up to $150,000 to provide Commercial Cannabis Tax Assessment Services; and
BE IT FURTHER RESOLVED that the Salinas City Council authorizes an increase to the General Fund Cannabis Monitoring appropriation of up to $120,000 and corresponding revenue budget for cannabis tax assessment and monitoring services including auditing, inspection, and cannabis tax rate analysis and recommendations.
PASSED AND APPROVED this 26th day of April 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
1 REQUEST FOR PROPOSALS
COMMERCIAL CANNABIS TAX ASSESSMENTS
Released March 10, 2022
Important Dates
Proposals Due: March 28, 2022, at 5:00 pm (PST)
City of Salinas
Community Development Department
65 West Alisal Street (Second Floor), Salinas, CA 93901 Project Contact: Maira Robles
Project Contact Email: [email protected]
2 GENERAL INFORMATION
T
he City of Salinas (City) is located on California’s Central Coast, 12 miles from the Pacific Ocean and Monterey Bay. In addition to being the county seat, Salinas is the largest city in Monterey County with a population of 163,542 people. The City is a compact, urban community surrounded by agriculture on all sides. Agriculture in Monterey County is over a $2 billion- dollar industry, and the surrounding Salinas Valley is known as the "Salad Bowl of the World." Commercial Cannabis is regulated in the C ity of Salinas by Municipal Code Chapter 5 – Public Peace and Morals under Article VII Cannabis. The City of Salinas regulates the establishment and the operation of a limited number of commercial cannabis businesses, including cultivation, dispensaries, manufacturing, distribution, and delivery services. Permits are awarded competitively, and applications are only accepted during specified permitting rounds.
A
dditional information regarding Commercial Cannabis may be viewed on the City’s website at:
https://www.cityofsalinas.org/our-city-services/community-development/commercial-cannabis- businesses
SUMMARY OF REQUEST
T
he City of Salinas is requesting qualifications from consulting firms to provide proposals for one or both of the following Scopes I and/or II:
S
cope I: Commercial Cannabis Tax (CCT) Assessments for the City's licensed commercial cannabis businesses: cultivation, dispensary, manufacturing, delivery services, and testing; and/or
S
cope II: Commercial Cannabis Taxation Recommendation Report.
Th
e City seeks a consultant team, or consultant teams, that have extensive experience in preparing tax assessments and/or preparing cannabis taxation recommendation reports. The consultant team may be a single, multi -service firm, or comprised of a planning lead with sub- consultants as required.
3 BACKGROUND
Commercial Cannabis Business Permitting
The City issues two types of commercial cannabis business permits: Commercial Cannabis Permits (CCP) and Administrative Permits (AP). CCPs are applicable to Cultivation, Delivery, Dispensary, Distribution, and Manufacturing. Administrative Permits are app licable to Testing Laboratories, Small Distribution (business premises under 500 square feet), Research and Development Facilities, and Nurseries.
Commercial Cannabis Permits
The City of Salinas allows for issuance of a maximum of 23 CCPs. Because the available permits are limited, the City accepts applications only during designated “rounds”, allowing for applicants to competitively vie for permits. Table 3 below shows permit quotas, active permits (permits for businesses that are either in operation or working towards operation), and operational businesses as of January 2022.
Table 3. CCP Quotas
Business Type Permit Quota Active Permits* Operational Businesses* Cultivation 5 3 1
Delivery 3 3 3
Dispensary 5 5 3
Distribution 5 5 2
Manufacturing 5 5 2
Total 23 21 11
*As of January 2022.
Table 4 below shows the 21 businesses that have been awarded permits and are currently either operational or pursuing operational status. The updated status of the City’s 21 active CCPs is shown below.
Table 4. Permits Awarded in 2017 through 2021
Business Name Address Type Business Status
1. CannaCruz 1156 Abbott Street Dispensary Operational
2. Compassionate Bay 1051 Terven
Avenue
Delivery Operational
3. Golden Essentials 1020 Merrill Street Delivery Operational
4. Purple Trilogy 1020 Merrill Street Delivery Operational
5. Cypress Manufacturing 1353 Dayton
Street
Distribution Operational
6. Cypress Manufacturing 20 Quail Run
Circle
Manufacturing Operational
4 7. Emerald Skyway, LLC 1610 Moffett
Street
Dispensary Operational
8. 710 Combinator (Grupo Flor) 518 Work Street Manufacturing Operational
9. East of Eden (Grupo Flor) 514 Work Street Dispensary Operational
10. Flor X (Grupo Flor) 516 Work Street Distribution Operational
11. Flor Cultivation 1155 Harkins
Road
Cultivation Partially
Operational
12. Emerald Skyway Manufacturing,
LLC
1610 Moffett
Street
Manufacturing Not Operational
13. Emerald Skyway Cultivation,
LLC
1610 Moffett
Street
Cultivation Not Operational
14. E7 Salinas, LLC 347 W. Market
Street
Dispensary Not Operational
15. E7 Salinas, LLC 347 W. Market
Street
Distribution Not Operational
16. E7 Salinas, LLC 347 W. Market
Street
Manufacturing Not Operational
17. Horizon Salinas, LLC 320 W. Market
Street
Dispensary Not Operational
18. Horizon Salinas, LLC 320 W. Market
Street
Distribution Not Operational
19 Cypress Manufacturing
Cultivation
1353-B Dayton
Street
Cultivation Not Operational
20. Sanborn Distribution 737 Sanborn Place Distribution Not Operational
21. Sanborn Manufacturing 737 Sanborn Place Manufacturing Not Operational
Eleven (11) businesses are now operational, and ten (10) businesses are still working towards operational status, two of which have previous indefinite extensions. The delays have involved challenges related to physical buil ding improvements and site selection as well as state licensing challenges and newly issued permits.
Administrative Permits
Unlike CCPs, there are no limits on how many administrative permits can be issued for commercial cannabis businesses. Administrat ive permits can be applied for at any time and do not require review by the Cannabis Selection Committee. Obtaining and maintaining an administrative permit is considerably simpler and less expensive in comparison to the CCP process. However, applicants for administrative permits must also obtain a state license. Table 5 below shows the administrative permits that have been issued and remain active (business is operational or is working towards operational status).
5 Table 5. Administrative Permits: Operational Status
Business Name Address Type Business Status*
1. OPM Holdings 743 Sanborn Place Small Distribution Operational
2. ProForma Labs 1514 Moffett
Street
Testing Lab Operational
3. American Biotech Testing 607 Brunken
Avenue
Testing Lab Operational
*As of January 2022
In addition to the three businesses listed above, a number of other applicants have been awarded Administrative Permits but have abandoned the venture prior to achieving operational status. There have been no administrative permit submittals in 2021.
Tax Revenue from the Commercial Cannabis Industry
Measure L, adopted by the voters of Salinas in November 2016, requires certain commercial cannabis businesses to pay a commercial cannabis business tax every quarter, beginning January 1, 2017. The original tax rates were scheduled to increase in 2020; however, in December 2019 Council voted to forgo the scheduled increase. Therefore, the rates listed below remain in effect.
Table 9 lists the rates levied on each business type. Taxes are not levied on the business types not listed.
Table 9. Cannabis Business Tax Rates
Business Type Current Rate
Delivery 5% of gross receipts
Dispensary 5% of gross receipts
Manufacturing 5% of gross receipts
Cultivation $15 per square foot
Nursery $2 per square foot
The Community Development Department coordinates with the Finance Department to monitor tax collection and the good standing of each business. The annual assessments were performed by MGO and provided detailed auditing of tax payments. A few businesses had deferred or late tax payments. However, as of January 2022, all businesses are caught up with their respective tax payments for the first time since the start of the collection of these taxes.
6 Table 10 below shows cannabis revenue by businesses t hat conducted commercial cannabis operations from 2017 through 2021. Table 11 compares tax revenue per quarter from 2018 through 2021.
Table 10. Salinas Cannabis Industry Tax Revenue by Permittee: 2017-2021 Business Name Business
Type
2017
Total
2018
Total
2019 Total 2020 Total 2021 Total
1. Cypress
Manufacturing
Manufacturing $335,379 $482,057 $561,166 $491,149 $509,850
2. 710 Combinator Manufacturing $4,937 IA $247 $20,135 $86,371
3. Emerald
Skyway
Dispensary IA $226,967 $247,140 $107,333 $192,574
4. East of Eden Dispensary IA $58,508 $671,348 $841,909 $732,932
5. CannaCruz Dispensary IA IA $31,003 $169,425 $296,121
6. Compassionate
Bay
Delivery $14,955 $43,067 $42,314 $89,507 $70,184
7. Golden
Essentials
Delivery $24,034 $46,029 $46,658 $26,360 $32,056*
8. Purple Trilogy Delivery IA $13,819 $28,165 $67,325 $40,561
9. Flor Cultivation IA IA IA IA $8,679 $73,539
10. ProForma Labs Testing
Laboratory
E E E E E
11. American
Biotech Testing
Testing
Laboratory
E E E E E
Total: Industry-
wide
$374,368 $870,448 $1,628,413 $1,842,033 $2,034,187
IA = business was inactive during this term, i.e. not yet conducting commercial operations and paying the cannabis business tax
E = business type is exempt from local cannabis tax
*Includes $7,978.11 outstanding
Table 11. Salinas Cannabis Industry Tax Revenue by Quarter: 2018 through 2021 Year Q1 Q2 Q3 Q4
2018 $120,736 $143,838 $328,894 $276,979
2019 $343,833 $432,000 $409,701 $442,778
2020 $470,916 $503,765 $357,502 $509,849
2021 $536,363 $525,501 $514,153 $458,169*
Q = quarter (three-month period)
*$7,978.11 outstanding
7 SCOPE OF WORK
The following describes specific components to be included in the scope of work. There are two scopes in this RFP. Consultants may submit proposals for one or both scopes.
The City is open to suggestions other than or in addition to those listed which facilitate the completion of the reports or improve reporting outcomes. It is anticipated that the final scope of work will not be approved until the final contract is executed with the selected Consultant and the scope has been further refined as determined by City staff and the Consultant.
The City will provide the Consultant with t he following: background information and copies of relevant and available reports and data. Other departments will be involved as well in the review and comment of draft reports. A designated Ci ty project manager will coordinate the internal review process upon delivery of draft and final reports by the Consultant. Reports must be provided electronically in Word and pdf formats with changes provided in track changes.
Consultant will provide any digital illustrations and figures in an editable format, so that all work produced by the Consultant can also be manipulated and reproduced by City staff without any technical or conversion problems.
Scope I
Project Scope for Commercial Cannabis Tax Assessments and Compliance Reports:
1. Assessments- Perform Commercial Cannabis Tax Assessments for the City's licensed commercial cannabis businesses: cultivation, dispensary, manufacturing, delivery services, and testing.
In conducting these assessments, the Consultant shall:
• Review the applicable terms of the Ordinance and the Business’ procedures and processes for collecting, recording, summarizing, and reporting its gross receipts. • Conduct non-statistical testing during the period under review. • Recalculate Cannabis Business Tax due.
• Compare the Cannabis Business Tax filings submitted to the City to the remittances made to the California Department of Tax and Fee Administration and to the Business’ Point of-Sale (POS) system gross receipts for the period assessed. • Compare both the Cannabis Business Tax filings and POS system sales data to the Business’ general ledger.
2. Compliance Reports - Submit a Draft Report for each business to the City for review and feedback, followed by a Final Report. Reports shall include a summary of information collected and analyses performed detailing the findings, observations, conclusions, and recommendations regarding compliance with State law and Salinas’ Commercial Cannabis Ordinance. Areas of compliance review include but are not limited to product tracking and safety, security, management of employees, waste disposal, odor control and tax remittances. As necessary, based on the revenue assessments and information gathered from both the City and the commercial cannabis businesses, Consultant shall provide the 8 City findings and recommendations to strengthen the businesses' reporting of gross sales and CCT.
Scope II
Project Scope for Cannabis Taxation Recommendation Report (3-to-6-month timeline):
1. Data Collection – Existing Conditions - Consultant shall work with the Community Development and Finance Departments to compile and analyze sales revenue and taxation data since 2017 for the following business types: delivery, dispensary, manufacturing, cultivation, and nursery.
2. Changes Regarding State Taxation - Consultant shall analyze changes to state taxation rates since the local rates were established in 2017 and analyze the overall taxation impact to the 5 business types described above.
3. Market Analysis - Consultant shall evaluate the current Salinas cannabis market and review audited reports to determine strength of businesses and identify impediments to growth including, but not limited to taxation. This study shall also include recommendations on market strategies for cannabis given Salinas’ unique assets.
4. Comparison Analysis and Table – The Consultant shall provide cannabis taxation data of jurisdictions that are comparable in size and demographics to the Cit y. This research should also consider best practices on taxation to maximize revenue, market stability, and economic growth.
5. Final Recommendation Report – Consultant shall compile the data and develop a set of recommendations on taxation rates for delivery dispensary, manufacturing, cultivation, and nursery based upon Salinas’ overall market strategy, best practices, and feasibility of each business type. It is expected that different businesses will have different recommended taxation rates and data and market and feasibility analyses will inform the re
6. Presentation of Materials – In addition to frequent phone calls and email communications with staff, during which portions of the work may be discussed and reviewed, Consultant will present initial findings at an internal City staff meeting (via zoom) for further refinement. Consultant will also be available to attend and answer questions at two (2) in- person meetings: 1) Cannabis Subcommittee Meeting and 2) City Council.
Optional Tasks
Please provide costs for any optional tasks and for Consultant’s recommended additional optional tasks.
9 QUALIFICATION PROPOSAL FORMAT
To expedite and maintain consistency in the evaluation process, each proposal to this RFP shall be organized in accordance with this section. Proposals will be rated and ranked according to evaluation criteria provided in the next section. Proposal submissions shall contain thorough description and analysis of the following information in the order presented below:
1. Brief Cover Letter/Letter of Introduction
2. Executive Summary (maximum two pages)
3. Lead Project Contact
o Name, title, and telephone number of the prospective consultant’s designated lead contact person for communications pertaining to this proposal
4. Project Team
o Description of team members assigned to the project and their respective roles. It is expected that once the analysis begins, the project team will remain in place until the work is completed. Please include statements regarding the length of commitment of the proposed staff if they are not available for the duration of this project.
o A brief biography or resume of each team member.
o Identification of specific sub -contractors (if any) who will be assigned to the project, and their specific roles and responsibilities.
5. Firm Experience and Qualifications
o A general description of the services provided by the proposer’ s firm and sub - consultant (if any) and their experience working with municipal departments in cannabis monitoring and/or taxation.
o A list of representative projects completed by the firms and individuals proposed to work on this project that best exemplify the work requested in this RFP. o For each project reference, include the project name, the client contact, the client’s phone number and email, the dates the work was accomplished, and a brief description of the work accomplished.
o Optional: Consultant and sub-consultant document samples for similar projects.
10 6. Scope of Work including Tasks and Deliverables
o A brief narrative (1-2 pages maximum) describing the approach and work plan for completing the scope of work. On a per task basis the narrative should identify the designated team member(s) responsible for completing the work, specific deliverables, and the number of meetings attended.
o Any additional suggestions Consultant believes would be valuable to include in this effort and any suggestions for further clarifying the scope or work and the usefulness of the product.
7. Budget Estimate
o A detailed budget estimate in matrix form including the hourly rates and time commitments for all team members and sub-consultants by task for the project. o Denote any proposed optional tasks.
o Include similar information for any sub-contractor.
8. Project Schedule (1-2 pages maximum)
o Include timeframe for completion of tasks, including milestone dates for primary deliverables.
o Include discussion of where the project timeline may slip or is susceptible to delay if assumptions are not met relative to project task completion. As it is anticipated the project will have an assertive schedule, it is important for the City to understand the proposer’s expectations for City staff document review timeframes included in this schedule.
o For project management purposes, the schedule should indicate how often there are meetings with City staff, as well as Commission and City Council meetings.
9. General Contract Requirements
o Proof of Insurability . A brief statement or certificate of insurance from an acceptable insurance company setting forth that insurance coverage as requ ired in the attached sample contract, at a minimum, will be available at the time of commencement of the project. The City reserves the right to request additional insurance coverages and amounts through the final Agreement negotiated between the City and consultant selected.
o Concurrence with contract provisions. A brief statement that the proposer concurs with the provisions of the City’s standard contract as attached to the RFP. Under certain circumstances, and subject to the discretion of the City, some provisions of the contract may be modified upon final c ontract negotiations with the selected consultant.
11 EVALUATION CRITERIA
It is the City’s sole desire to contract with a qualified, professional consultant that has the proven experience, resources, and professional expertise to deliver the requested docum ent(s). A committee comprised of City staff members will conduct evaluation of the proposals. The initial screening will be based on an objective review of the proposal received based on the criteria set forth in this RFP.
Proposals will be evaluated according to qualifications, experience, capabilities, references, resources, scope, schedule, cost, current workload, and demonstrated competence in performing the work required (not necessarily in that order). The proposal needs to fully respond to items listed in this RF P; needs to constitute a team that is experienced and qualified to meet the requirements of this project based on relevant experience; and needs to demonstrate the ability and capacity to identify and plan specific tasks to complete the project in a professional manner on schedule and within budget. The City will select the consultant (or consultants) that best meet(s) the requirements put forth in the RF P. The following criteria will be considered in evaluation of proposals:
Evaluation Criteria Points
Demonstrated project understanding and scope of work and Consultant’s proposed methodology and familiarity with applicable practices and methodologies for the proposed work
20 Firm qualifications and demonstrated past experience, performance, and ability of to deliver high quality work for relevant projects of similar complexity in diverse, rural/urban communities
20 Team member qualifications and experience : adequate technical, financial, and staffing resources for co mpletion of the scope of work within the proposed time schedule; demonstrated qualification of the project leader and assurance of his or her principal involvement in the project through completion.
20 Capacity and track record of delivering projects on time and within budget.
Track record for meeting scheduled milestone dates , cost control , and quality of performance in previous contracts.
20 References from previous clients 20
12 PROPOSAL(S) SUBMITT AL
Proposal(s) shall consist only of electronic materials; pages must be numbered. Submittals must be sent to:
Maira Robles, Administrative Aide, Community Development Department [email protected]
All submittals shall be received no later than Monday, March 28, 2022, at 5:00 p.m. (PST).
Proposals received after 5:00 p.m . on the due date will not be considered. Upon receipt, all material submitted in response to this request become the property of the City of Salinas and may be considered public information pursuant to applicable law.
INQUIRIES
There will be no pre-submittal meeting for this proposal. Any questions regarding this RFP may be emailed to [email protected] by 5:00 p.m. (PST) on Friday, March 18, 2022. All submitted questions and responses will be posted on the City website www.cityofsalinas.org by Wednesday, March 23, 2022. No questions regarding this RFP will be answered over the phone.
Proposers that contact City personnel or City Council members after the City releases the RFP shall be disqualified. All addenda shall become part of this RFP. A signed copy of any addendum shall be included in the proposal.
CITY PROCESS
City staff will review and evaluate the submitted proposals based on the stated evaluation criteria.
Staff will contact other agencies for feedback concerning previous work. It is expected that one or more firms will be invited for an interview, however it is the quality of the proposals received that will determine who will be invited to take part in an interview process. The City reserves the right to forgo the interview process and proceed directly to selection of the preferred firm (or firms) in the event that a proposal is deemed superior in content.
The City retains the right to select the qualified finalists. The staff recommendation will be based upon the quality of the proposal, including the experience of the proposed project team, project manager, and experience conducting similar type of work. The City anticipates entering into an agreement with the selected firm(s) based on a negotiated fee and a negotiated scope of work. If an agreement on the fee cannot be reached, the City reserves the right to end negotiations and enter into negotiations with the next highest ranked consultant. The City Manager will consider the staff recommendation and award the contract for the negotiated final scope of work pursuant to the Municipal Code, which may also include consideration by the City Council.
13 CONDITIONS AND RESPONSIBILITIES OF REQUEST
1. General Conditions . The City of Salinas reserves the right to (1) reject any or all responses, (2) postpone award of the contract for a period not to exceed sixty (60) days from the date replies are due, (3) waive informalities in the responses, and (4) take whatever action or make whatever decision it determines to be in the best interest of the City. All proposals will remain in effect and legally binding for at least sixty (60) days from the date of submission. A contract agreement shall not be binding or valid with the City unless and until it is executed by authorized representatives of the City and of the Selected Consultant.
The City reserves the right to request additional information from any and all prospective firms as deemed necessary by the City in order to evaluate the proposals. This process may not be used, however, as an opportunity to submit missing documentation or to make substantive revisions to the original proposal.
A prospective firm may withdraw their proposal at any time prior to the date and the time which is set forth herein as the deadline for submittal of proposals.
2. Liability of Costs and Responsibility. Each prospective firm submitting a proposal in response to this Request for Proposals agrees that the prepara tion of all materials and presentation for submittal to the City is at the prospective firm’s sole cost and expense, and the City will not, under any circumstances, be responsible for any costs or expenses incurred by a prospective firm.
Prospective firms are responsible for making necessary investigations and examination of records. Failure to do so will not act to relieve any condition of the proposed agreement or the requirements set out in this RFP. It is mutually understood and agreed that the submission of a proposal shall be considered conclusive evidence that the prospective firm has made such examinations and investigations. No request for modification of a proposal shall be considered after its submission on the grounds that the prospective f irm was not fully informed as to any fact or condition.
The selected consultant shall be required to assume responsibility for all services offered in the proposal whether or not they possess them within their organization. The selected consultant will be the sole point of contact with regard to contractual matters, including payment of any and all charges resulting from the contract.
3. Standard Agreement . A sample professional services agreement is attached for the proponent’s reference. It is the responsibility of the prospective consultant to be familiar with and accept the terms of this standard contract. In some instances, contract provisions can be modified after review and approval of the City during final contract negotiations.
Overall, however, the provisions in this contract are those preferred by the City for the engagement of consulting services relating to this RFP. If any of the terms and conditions contained in the standard agreement are not agreeable, these should be identified specifically, otherwise it will be assumed that the Consultant is willing to enter into the agreement as it is written. Failure to identify contractual issues can be a basis for City to disqualify a consultant.
14 4. Insurance. Consultant shall, throughout the duration of the project, maintain comprehensive general liability and property insurance covering all operations of Consultant, its agents and employees, performed in connection with the project in the amounts and in the types of coverages shown in the sample professional services agreement.
5. Non-Discrimination/Non-Preferential Treatment. The successful Consultant shall not discriminate, in any way, against any person on the basis of race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, or national origin, in connection with or related to the performance of City contracts.
6. Rights to Submitted Materials. All proposals and related correspondence, reports, charges, s chedules, exhibits and other documentation submitted with the proposal will become the property of the City and a matter of public record. All documents submitted in response to this RFP will be subject to disclosure if requested by a member of the public.
There are a very limited number of narrow exceptions to these disclosure requirements.
Any information that a prospective consultant considers confidential, the disclosure of which would be an unwarranted invasion of personal privacy, should be submitted in a sealed envelope marked "CONFIDENTIAL; NOT PUBLIC RECORDS." During the selection process, the City will keep such information confidential and will not disclose it except as may be required under applicable law, including the California Public Records Act. This means that, depending on the nature or timing of the request, or future court decisions, that information may not remain private and may be publicly disclosed. Once the selection process is completed, the City will return this information to the Consultant if not selected. Budgets and cost proposals submitted by proposers shall not be considered confidential or proprietary and may be subject to disclosure.
7. Prohibition of Gifts. City staff and officials are subject to several legal and policy limitations regarding receipt of gifts from persons, firms, or corporations either engaged in business with the Agency, or proposing to do business with the City. The offering of any illegal gift shall be grounds to disqualify a Consultant. To avoid even the appearance of impropriety, Proponents and Selected Consultant should not offer any gifts or souvenirs, even of minimal value, to City officers or employees.
ATT ACHMENTS
1. City of Salinas Agreement for Professional Services Template
SELECTION TIMELINE
Proposal Due: March 28, 2022
Rating and Ranking of Proposals: March 29-April 1, 2022 Interviews with Finalists: April 4-8, 2022 (Optional)
Award of Contract: on or before April 11, 2022
15 Attachment 1 Agreement for Professional Services Template
AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND ______
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this ____ day of ______, 2022, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and __________, a _____________(hereinafter “Consultant”).
RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, City and Consultant agree as follows:
TERMS
1.Scope of Service. The project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto, and incorporated herein by reference.
2.Term; Completion Schedule. This Agreement shall commence on ______, and shall terminate on _______, unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties, and may be terminated only pursuant to the terms of this Agreement.
3.Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation of [or as set forth in Exhibit B]. The total amount of compensation to be paid under this Agreement shall not exceed _________.
4.Billing. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
A. A brief description of services performed;
B. The date the services were performed;
C. The number of hours spent and by whom;
D. A brief description of any costs incurred; and
16 E. The Consultant’s signature.
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.
City shall make payment on each such invoice wit hin thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.
5.Meet & Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.
6.Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.
7.Responsibility of Consultant. By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.
8.Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A)Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.
(B)Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C)Megan Hunter, Community Development Director, or her designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, r eceive information, interpret, and define 17 City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D)Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.
9.Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.
10.Indemnification and Hold Harmless.
Consultant shall defend, indemnify, and hold harmless the City and its officers, officials, employees, volunteers, and agents from and a gainst any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder, including the performance of work of any of Consultant’s subcontractors or agents, or Consultant’s failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.
11.Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.
12.Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours. Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.
13.Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.
14.Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes. Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.
18 15.Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.
16.Termination.
A. City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
1. If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
2. For any reason whatsoever.
B. Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
1. In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.
C. In the event that this Agreement is terminated by City for any reason, Consultant shall:
1. Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and
2. Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agree ment. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
19 D. In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
E. The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.
17.Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.
18.Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.
19.Independent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.
20.Integration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.
21.Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas. Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.
22.Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.
23.Notices.
(A)Written notices to the City hereunder shall, until further notice by City, be addressed to:
Megan Hunter
City of Salinas
65 W. Alisal Street, Suite 201
Salinas, California 93901
20 With a copy to:
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B)Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
[Contact Information for Consultant including Title, Address, Email, and Phone #]
(C)The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.
(D)All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.
24.Nondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.
25.Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwis e, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.
26.Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.
27.Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as 21 may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.
28.Non-Exclusive Agreement. This Agreement is non- exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.
29.Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.
30.Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.
31.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
32.Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect . Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.
33.Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.
34.Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.
35.No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof. Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of per formance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
IN WITNESS WHEREOF , the parties hereto have made and executed this Agreement on the date first written above.
22 CITY OF SALINAS
____________________________
Kimbley Craig
Mayor
APPROVED AS TO FORM:
____________________________
Christopher A. Callihan
City Attorney
ATTEST:
_____________________________
Patricia Barajas
City Clerk
CONSULTANT
___________________________________
By (Printed Name): ___________________
Its (Title): ___________________________
Exhibit A
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.
23 MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
A. Commercial General Liability (“CGL”): Insurance Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
B. Automobile Liability: ISO Form CA 0001 covering any auto, or if Consultant has no owned autos, hired and non-owned, with limits no less than $1,000,000 per accident for bodily injury and property damage.
C. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
D. Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or 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.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. A ny insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
24 Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultant s and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self -insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effe ctive date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All 25 certificates and endorsements are to be received and approved by t he City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required in surance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all sub- consultants and/or subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Maintenance of Insurance
Maintenance of insurance by Consultant as specified shall in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.
1 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND SCI CONSULTING GROUP
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this ____ day of ______, 2022, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and SCI Consulting Group (hereinafter “Consultant”).
RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, City and Consultant agree as follows:
TERMS
1.Scope of Service. The project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto and incorporated herein by reference.
2.Term; Completion Schedule. This Agreement shall commence on ______, and shall terminate on _______, unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties, and may be terminated only pursuant to the terms of this Agreement.
3.Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation of [or as set forth in Exhibit B]. The total amount of compensation to be paid under this Agreement shall not exceed _________.
4.Billing. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
A. A brief description of services performed;
B. The date the services were performed;
C. The number of hours spent and by whom;
D. A brief description of any costs incurred; and
E. The Consultant’s signature.
2 Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.
City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.
5.Meet & Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.
6.Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.
7.Responsibility of Consultant. By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.
8.Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A)Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.
(B)Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C)Megan Hunter, Community Development Director, or her designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define
3 City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D)Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.
9.Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.
10.Indemnification and Hold Harmless.
Consultant shall defend, indemnify, and hold harmless the City and its officers, officials, employees, volunteers, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder, including the performance of work of any of Consultant’s subcontractors or agents, or Consultant’s failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.
11.Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.
12.Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours. Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.
13.Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.
14.Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes. Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.
4 15.Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.
16.Termination.
A. City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
1. If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
2. For any reason whatsoever.
B. Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
1. In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.
C. In the event that this Agreement is terminated by City for any reason, Consultant shall:
1. Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and
2. Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for
5 services rendered to the date of termination upon Consultant’s delivery to the City of such material.
D. In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
E. The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.
17.Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.
18.Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.
19.Independent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.
20.Integration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.
21.Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas. Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.
22.Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.
23.Notices.
(A)Written notices to the City hereunder shall, until further notice by City, be addressed to:
Megan Hunter
City of Salinas
6 65 W. Alisal Street, Suite 201
Salinas, California 93901
With a copy to:
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B)Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
SCI Consulting Group
4745 Mangels Boulevard
Fairfield, CA 94534
(C)The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.
(D)All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.
24.Nondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.
25.Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.
7 26.Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.
27.Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.
28.Non-Exclusive Agreement. This Agreement is non-exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.
29.Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.
30.Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.
31.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
32.Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.
33.Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.
34.Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.
35.No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof. Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of
8 the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.
CITY OF SALINAS
____________________________
Kimbley Craig
Mayor
APPROVED AS TO FORM:
____________________________
Christopher A. Callihan
City Attorney
ATTEST:
_____________________________
Patricia Barajas
City Clerk
CONSULTANT
_____________________________
John Bliss, P.E., President
SCI Consulting Group
9 Exhibit A
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
A. Commercial General Liability (“CGL”): Insurance Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
B. Automobile Liability: ISO Form CA 0001 covering any auto, or if Consultant has no owned autos, hired and non-owned, with limits no less than $1,000,000 per accident for bodily injury and property damage.
C. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
D. Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or 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.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form
10 of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultants to and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
11 1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all sub-consultants and/or subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Maintenance of Insurance
Maintenance of insurance by Consultant as specified shall in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.
Proposal
CITY OF SALINAS
In Response to:
Request for Proposal – Commercial Cannabis Tax
Assessments
March 28, 2022
Submitted via electronically
[email protected]
Maira Robles,
Administrative Aide, Community Development Department
City of Salinas
Subject: Response to Request for Proposals
Commercial Cannabis Tax Assessments
Dear Maira:
SCIConsultingGroup (“SCI”) and The Pun Group LLP, (collectively known as “the SCI Team”) are pleased to submit this proposal in response to the City of Salinas’ (“City”) March 10, 2022, Request for Proposal for cannabis-related consulting and compliance services. The SCI Team has reviewed the RFP and relevant information and proposes to comprehensively provide the cannabis-related services, as fully described in the Scope of Services:
1. Commercial Cannabis Tax Assessments
2. Compliance Inspections and Reporting
3. Cannabis Taxation Recommendation Report
SCI is one of California’s top local cannabis policy consulting firms as well as one of the State’s top firms for implementing revenue programs in general (fire services, parks and recreation, storm drainage, local infrastructure, etc. – in fact, we are currently working with the City of Salinas on dedicated funding for storm drainage)
We have assisted with regulated cannabis policy and implementation for over 30 California municipalities over the past five years. We believe our expert knowledge of the local California cannabis industry coupled with our broad experience providing municipalities with regulation, implementation, tax consulting, public opinion research (polling) and tax-related community outreach consulting services, will serve the City well.
We look forward to the opportunity to assist the City with this important project. If you have any questions or require additional information, please do not hesitate to contact me. I can be reached via e-mail at [email protected] or on my cell phone at (707) 208-0940.
Sincerely,
John Bliss, P.E.
President, SCI Consulting Group
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Page ii
Table of Contents
Executive Summary .................................................................................................... 3 SCI Consulting Group ................................................................................................................. 3 The Pun Group ........................................................................................................................... 4 Lead Project Contact .................................................................................................. 5 Project Team .............................................................................................................. 6 SCI Consulting Group ................................................................................................................. 6 Sub-Contractor (The Pun Group) ............................................................................................... 7 Firm Experience and Qualifications ............................................................................. 9 Project References .................................................................................................................... 9 Scope of Work .......................................................................................................... 11
1. Commercial Cannabis Tax Assessments ....................................................................... 11
2. Compliance Inspections and Reporting ........................................................................ 12
3. Cannabis Taxation Recommendation Report ............................................................... 13 Budget Estimate ....................................................................................................... 14 Project Schedule....................................................................................................... 16 Timeline ................................................................................................................................... 16 General Contract Requirements ................................................................................ 17 Proof of Insurability ................................................................................................................. 17 Concurrence with Contract Provisions .................................................................................... 18 City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Executive Summary
SCI Consulting Group
SCI is a public finance and urban economic consulting firm with over 35 years of expertise in assisting public agencies in California with developing policy, and planning, justifying, and successfully establishing new revenues (taxes, fees, assessments, regulations) for their service and capital improvement needs and objectives and managing special levies.
We were the very first consulting firm to provide a full suite of local cannabis policy implementation services to California municipalities and develop ed the “6 Key Elements of Cannabis Implementation” approach that is the standard of the industry today:
1. Community Research and Outreach (Meetings & Surveys)
2. Health and Safety & Land Use Regulations (Ordinance(s))
3. Full Cost Recovery (Regulatory Fees)
4. Revenue (Taxation Ballot Measures)
5. Local Industry Selections (Application and Selection Process)
6. Monitoring and Compliance
as well as more recently adding…
7. Social Equity
Our core philosophy and approach towards the implementation of local cannabis policy is mo re broadly balanced than that of our competitors. Our philosophy comes from our genesis as a solution-based engineering firm that has evolved and developed in -house expertise in public policy, community outreach, and social equity. Although our quantitati ve and regulatory rigor, and attention to detail are unsurpassed, we balance this with realistic approaches to a real-world challenge, fully understanding and supporting the City’s challenging transition into a regulated and legal cannabis business arena. Hence, SCI balances enforcement of local and State code along with the need to support viable cannabis businesses and to shepherd non -compliant businesses into a safe and regulated environment.
We have assisted with regulated cannabis policy and implement ation for over 30 California municipalities over the past five years. We believe our expert knowledge of the local California cannabis industry coupled with our broad experience providing municipalities with regulation, implementation, tax consulting, pub lic opinion research (polling) and tax -related community outreach consulting services, will serve the City well.
Additionally, we have assisted with the successful implementation of funding (fees, taxes and assessments) in Monterey County including:
• City of Salinas (currently assisting with funding for storm drainage) City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
• Carmel Valley Fire Protection District (voter approved funding measure in 2009) • Monterey Peninsula Regional Park District (voter approved funding measure in 2016) • Northern Salinas Mosquito Abatement District (voter approved funding measure in 2015)
• North County Fire Protection District (voter approved funding measure in 2021) • Spreckels Community Services District (currently assisting with funding for infrastructure)
The Pun Group
The Pun Group LLP, Certified Public Accountants, and Business Advisors, founded in 2012, is a limited liability partnership. We are a full- service accounting firm comprised of forty (40) professionals providing auditing, accounting, and advisory services to our c lients. Our Governmental Division consists of thirty-five (35) full-time individuals. The Firm has no part-time employees. The Firm’s headquarters located in Orange County, California, with four branches in San Diego (California), Walnut Creek (California), Las Vegas (Nevada), and Phoenix (Arizona).
The combination of our hands -on experience and practical knowledge exercised by our audit professionals makes the Firm unique in our field. Our technical expertise and thorough understanding of current regulat ions and issues —along with the Firm’s commitment to hard work, integrity, and teamwork on every engagement—enable us to help our clients succeed.
Our Partners’ Group—which includes Kenneth H. Pun, Coley Delaney, Frances J. Kuo, Kenneth A.
Macias, Vanessa I. Burke, John F. Georger, Jr., Gary M. Caporicci, and Heidy K. Chow —provide auditing, accounting, and advisory services to numerous governmental entities throughout the United States. With more than two hundred (200) years of combined experience in the industry, we have become a trusted business partner and are well -respected as leaders in the industry in one of the fastest-growing firms. With nearly 100 government and not-for-profit audit clients, our Partners have a real passion for the industry and be lieve we are unmatched regarding our municipal experience.
The Pun Group LLP is an independent member of Allinial Global, an association of over 100 independent accounting and consulting firms. Based in North America, Allinial Global offers international s upport by connecting its member firms to providers and global networks of accounting firms worldwide.
In 2018, The Pun Group teamed up with a Canadian Certified Public Accounting Firm to provide professional auditing services to a Los Angeles base Cannabis business (Cultivator and Distributor) to assist them in their Initial Public Offering (IPO) process. Furthermore, the Cities of Stockton and San Bernardino hired the Pun Group to conduct annual audits of commercial cannabis businesses.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Lead Project Contact
Kyle Tankard, Senior Consultant
SCI Consulting Group
(707) 430-4301 x 103
[email protected]
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Project Team
Kyle Tankard, Senior Consultant and Cannabis Services Group Leader at SCI, will serve as the project leader and day -to-day project manager for the SCI portion of the work. Arcelia Herrera and John Bliss will support Kyle’s efforts. David Siris, of the Pun Group, will lead the financial audit work with support from Vanessa Burke and Ken Pun.
The SCI Team has a combined staffing level of over 40 employees, including 5-10 employees specializing in cannabis projects. The SCI Team does not have work commitments that would interfere with their ability to successfully complete this project. Each employee is available to focus primarily on this project with 20%-50% of their time.
SCI Consulting Group
John Bliss M.Eng., P.E., President
John Bliss, a professional engineer and President of SCI, specializes in local cannabis policy, and special revenue consulting. He was instrumental in developing the now-standard implementation process used by most municipalities in California to implement local cannabis policy. John has had a long career developing and implementing equity, diversity and inclusion policy reaching back almost 30 years to the ground-breaking implementation for the City of San Francisco public works construction employment following the Rodney King uprising in 1991. He is a graduate of Brown University with a Bachelor of Science Degree in Engineering. He holds a master’s degree in Civil Engineering from The University of California, Berkeley, where he was a Regent's Scholar. He is a licensed Professional Civil Engineer in the State of California and is a LEED accredited professional.
Kyle Tankard Senior Consultant – Cannabis Business Leader Kyle Tankard serves as the Cannabis Business Leader at SCI providing local cannabis policy expertise in California since 2016. He plays a diverse role, assisting municipalities with all aspects of local cannabis implementation including regulatory and equity program development, taxation policy and cost recovery, cannabis compliance, application review, and cannabis -related public education. Kyle has also established himself as a leader in cannabis equity, assisting with the development and implementation of local cannabis equity programs for the Cities of Richmond, Palm Springs, and Stockton. He currently manages a po rtfolio of over 15 cannabis clients, providing a variety of ongoing cannabis-related services including application review, plan checks, compliance inspections, and equity analysis and program development.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
During his tenure at SCI, Kyle has worked extensively with California cities, counties, and special districts providing local funding and policy solutions. He contributes over 10 years of experience as a results-driven project manager, delivering his projects on time, under tight deadlines and high pressure situations.
Kyle received his bachelor’s degree in Environmental Studies from the University of California, Santa Cruz, with emphases in geographic information systems (GIS).
Arcelia Herrera Senior Consultant
Arcelia Herrera contributes over 14 years of experience in consulting and administration for public agencies and over five years in local cannabis policy in California. She is responsible for the development and management of the cannabis monitoring and compliance program at SCI. She has extensive experience conducting on -site facility inspections, ensuring local and State compliance. In addition, Arcelia has expertise in the creation and administration of assessments and fees, database management, and community educational outreach. She has conducted several Proposition 26 compliant cost recovery fee study analyses for cities and counties to develop fees for commercial cannabis businesses. Her expertise in communication is with local LatinX communities.
Sub -Contractor (The Pun Group)
Kenneth H. Pun CPA, CGMA
With over twenty years of public accounting experience in the State and Local Government sector, Mr. Pun is the Managing Partner and an Assurance Partner at the Firm. Ken specializes in audits and management co nsulting for governmental organizations and has served as the Contract Deputy Finance Director for the City of San Marino in 2017. Mr. Pun also serves as the Chair of the California Society of CPAs Governmental Auditing Accounting Committee. He has been nominated for this year’s Innovative Practitioner of the Year 2020 award by AICPA’s CPA.com.
David Siris CPA, Engagement Manager
David Siris draws more than nine years of governmental accounting experience. Mr. Siris has successfully performed audits and other attestation services for several governmental and non - profit agencies. Working as an Engagement Manager, he will assist Mr. Pun in all issues related to cannabis tax policies, fiscal analysis, compliance reviews, tax audits/assessments, and providing best practices to ensure all state and local laws are followed.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Venessa Burke CPA, CFO Vanessa Burke is an Assurance and Consulting Services Partner. She has over 30 years of extensive experience in providi ng audit and advisory services to federal, state, and local government agencies, including cannabis, public pension plans, state departments, cities, community colleges, hospitals, school districts, county offices of education, special districts, and joint powers insurance authorities. She has previously held positions in the government and private sector as Controller and CFO, where she served on the leadership team and managed budgets and financial reporting for government organizations with budgets in e xcess of $650 million and over 100 employees.
She is a Certified Public Accountant and a Certified Public Finance Officer. Ms. Burke will function as the Concurring Partner and provide a second partner review of significant high-risk areas, audit reports, and resolution of significant accounting, auditing, and reporting matters.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Firm Experience and Qualifications
SCI provides cannabis-related advice and broad consulting services to municipalities throughout California, including community support analysis, ord inance development, fee studies, taxation, implementation, application process development, application review and scoring, monitoring and compliance, business tax auditing, community outreach and engagement, and social equity consulting.
Over the last five years, SCI has emerged as one of California’s premier local cannabis policy firms offering a full range of “one -stop-shop” services in support of the successful implementation of regulated cannabis business within a City or County. However, as we empha sized above, our approach is different that our competitors as we “balance enforcement of local and State code along with the need to support viable cannabis businesses and to shepherd non -compliant businesses into a safe and regulated environment.”
SCI has considerable experience providing cannabis compliance services for local municipalities in California. Beginning in 2017, SCI conducted some of the first onsite cannabis compliance inspections in the State of California for the City of Coalinga. Since t hen, SCI has expanded its services to the Cities of Colfax, Dunsmuir, Fairfield, Merced, San Bernardino, Shasta Lake, and Woodlake. To date, SCI has conducted over 500 on -site compliance inspections for various cannabis businesses including cultivation, distribution, manufacturing, and retail.
Additionally, The Pun Group LLP has performed numerous audits of organizations subject to financial and compliance audits. These audits were performed under auditing standards generally accepted in the United States, Government Auditing Standards, Uniform Guidance (formerly known as OMB Circular A -133), and its Compliance Supplement (when applicable), Office of the State Controller’s Minimum Audit Requirements and Reporting Guidelines. The Pun Group currently provides cannabis business tax audits for the Cities of Chula Vista, Fairfield, San Bernardino, and Stockton.
Project References
City of Shasta Lake
Project: Commercial Cannabis Implementation and Monitoring and Compliance Contact: Jessaca Lugo, City Manager [email protected]; (530) 275-7464
Start/End Dates: December 2017 – Present
Description:
Beginning in 2017, SCI provided cannabis -related implementation services to the City of Shasta Lake. These services included cannabis -related public education and stakeholder/community City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
meetings; ordinance development; development of a regulatory fee progra m; comprehensive support for the City’s cannabis -related local tax measure, and development of an annual monitoring and compliance program. Shasta Lake was one of the State’s early adopters and now supports robust and vibrant cannabis industry, with over 20 operational cannabis businesses. SCI continues to assist the City with bi -annual facility compliance inspections and ongoing technical support.
City of San Bernardino
Project: Commercial Cannabis Monitoring and Financial Audit Services Contact: Stephanie Sanchez, Economic Development Specialist [email protected]; (909) 384-5357
Start/End Dates: December 2019 – Present
Description:
In 2019, the City of San Bernardino engaged SCI and The Pun Group to provide cannabis monitoring and compliance services and annual financial audits. These services include plan checks and review, background checks, annual compliance audits, and annual financial audits. On an annual basis, SCI and the Pun Group provide compliance inspections and financial audits for each commercial cannabis business operating in the City.
City of Fairfield
Project: Commercial Cannabis Management and Monitoring Services Contact: David Feinstein, Planning Manager [email protected]; (707) 428-7448
Start/End Dates: September 2021 – Present
Description:
In 2021, the City of Fairfield engaged SCI and The Pun Group to provide commercial cannabis management and monitoring services. To date, SCI has provided the City with pre -operational compliance assistance and inspections and employee background checks for the City’s five cannabis businesses that were awarded cannabis business permits in 2021. The Pun Group will kick off their annual financial audits for each operational business.
A full list of our current and past cannabis clients is listed below:
Cities Counties
Alameda El Monte National City Santa Clara Alameda
Avalon Encinitas Nevada City Shasta Lake San Benito
Coalinga Fairfield Oroville Stockton San Luis Obispo
Colfax La Mesa Palm Springs Vallejo Tuolumne
Concord Livingston Richmond West Hollywood
Davis Lompoc San Bernardino Woodlake
Dunsmuir Merced San Carlos Yreka
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Scope of Work
SCI Team will conduct a project kick-off meeting with City staff to establish project priorities and goals, communication protocols, and timelines. Further, we will gather and review all applicable information needed to perform the required tasks. SCI will be available to meet via teleconference call on a regular basis when work is in progress and will be available to attend regularly scheduled coordination meetings as necessary when work is in progress.
1. Commercial Cannabis Tax Assessments
The SCI Team, led by the David Siris of The Pun Group for this task, will provide comprehensive annual auditing of cannabis businesses in order to ensure that the City receives full payment of all Measure L taxes, and ensuring compliance with applicable laws.
We will perform the following steps to deliver the services requested by the City:
Cannabis
Business Gross
Receipts and
Square Footage
Taxes
• Evaluate consistency between gross receipts and other information reported on financial statements to what was reported to the C DTFA for sales and use tax, cannabis excise tax, and/or cultivation tax.
• Evaluate consistency between gross receipts reported on financial statements to gross receipts reported to the City.
• Verify cultivation canopy as compared to maximum canopy reported on t he business license application.
Collection and
Audit
of any Cannabis
Tax
• Ensure each cannabis facility is complying with applicable portions of the City’s Code and is submitting the true amount of gross receipts and tax. • Review business license tax returns submitted by the business and collected by the City and compare to each business’s records for the time period identified by the City to determine accuracy and timeliness of gross receipts returns filed with the City.
• Trace and verify the gross receipts reported on the quarterly gross receipts returns prepared by the business to gross receipts recorded in the business’s accounting records to verify that these were in accordance with the City’s regulations. • Verify reasonableness of reported revenues
• We will issue all reports to the City in accordance with applicable standards from generally accepted auditing standards (GAAS).
• The report for each cannabis business license tax audit will include the following information:
• The overall conclusion of whether or not the cannabis business paid all required business license taxes and fees for the time period specified. • Any exceptions, errors, or areas of noncompliance were identified as a result of the procedures performed. This includes any significant deficiency in the design or operation of the internal control structure, including but not limited to the following areas: cash handling, inventory control, point of sale systems, and any other areas City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
that the auditor deems necessary for purposes of accurately reporting business license taxes due to the City.
• Express an opinion regarding the taxes remitted to the City by the cannabis business, or state that an opinion cannot be expressed in the auditor’s report. If the Firm concludes, it cannot express an overall opinion. The engagement team will state the reasons, therefore, in the auditor’s report.
• Examine records and documentation that demonstrates that all cannabis goods have been obtained from, and are provided to, other licensed cannabis businesses and that details all the revenues and expenses, and assets and liabilities of the business.
• Examine books of account, invoices, copies of orders and sales, shipping instructions, bills of lading, weigh bills, bank statements including canceled checks and deposit slips, and all other records necessary to show all transactions of the cannabis business.
State Rule
Making
Interpretation
and
Implementation
• Check for compliance with the latest officially approved state regulations for cannabis businesses across the supply chain. Licensees are required to comply with all rules and regulations pertaining to their license type, as well as follow all other applicable state laws.
Deliverables:
• Prepare and send notification letters to each cannabis business • Annual Financial Audit and Audit Report for each cannabis business
2. Compliance Inspections and Reporting
For this task, Kyle Tankard of SCI will provide onsite facility inspections for each commercial cannabis business and report to the City the results of inspections relative to the City’s local regulations and ordinances, conditions of approval, and State law. SCI will prepare an inspection checklist for each cannabis activity. Prior to conducting each inspection, SCI will prepare notification to the businesses to schedule inspections. Following the inspection, SCI will provide the City with a written report detailing the results of the compliance inspection including photo documentation of any violations. SCI will provide follow -up support to the City and cannabis businesses to provide recommendations to address and correct any deficiencies.
Among the elements and activities SCI will inspect and monitor are as follows:
• Product: Inventory management, seed-to-sale tracking, packaging and labeling verification, product testing protocols, etc.
• Record Retention: Review and confirm employee records, business records, tax information records, transportation manifests, video surveillance retention, equipment certifications, training programs and safety programs.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
• Security and Surveillance: Verify video surveillance equipment, camera placement, alarm systems, locks, facility access control, security guards, occupational badges, and other security and safety processes.
• Facility Compliance: Verify facility’s operational compliance including waste management, odor control, pesticide and solvent storage, signage, cash handling procedures, product shipment and receival procedures, etc.
Deliverables:
• Conduct onsite facility inspections
• Provide written report detailing the findings of inspections • Provide follow-up support and recommendations
3. Cannabis Taxation Recommendation Report
SCI will perform a comprehensive, financially-focused analysis of the cannabis industry in the City, model d ifferent taxation methodologies and prepare a Cannabis Taxation Recommendation Report which makes recommendations regarding the optimal taxation approach . The recommended approach will be carefully designed to balance the City’s need for a solid and reliable revenue stream, while ensuring that local cannabis businesses are not over-burdened.
The analysis will consider existing sales revenue and taxation data, analyze any financial constraints, and determine the City’s costs and revenue potential that each cannabis business and business/license type is likely to generate. SCI will evaluate tax rates regionally to better understand competitiveness and if this is a barrier to growing the industry in the City. SCI will make revenue projections and model diff erent tax rate/structure scenarios and associated revenue generated.
Deliverables:
• Cannabis Taxation Recommendation Report
• Presentation to City Staff
• Attendance at two (2) in-person meetings
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Budget Estimate
In consideration for the Tasks as detailed in th e Scope of Work, the estimated compensation is detailed below by task:
Work Plan Fee
1. Commercial Cannabis Tax Assessments $ 6,500 (per audit)
2. Compliance Inspections & Reporting $ 1,700 (per inspection)
3. Cannabis Taxation Recommendation Report $ 15,650
SCI Staff Hourly Rate
John Bliss, President $ 290
Kyle Tankard, Cannabis Services Leader $ 300
Arcelia Herrera, Senior Cannabis Consultant $ 250
The Pun Group Staff Hourly Rate
Ken Pun, Engagement Partner $ 200
Venessa Burke, Partner $ 200
David Siris, Manager $ 175
Masood K. Yousufzai, Assistant Manager $ 150
Incidental costs incurred for the purchase of additional travel and other out- of-pocket expenses will be reimbursed at actual cost, with the total not to exceed $ 3,500 per year without prior authorization from the City. The scope of services includes one face-to-face staff planning meeting. Any additional face-to-face meetings, if required, shall be billed at the rate of $1,500 per person, per meeting. SCI is available to meet via teleconference call on a regular basis at no additional charge.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Project Schedule
Timeline
Project start date April 2022
Kick-off Meeting April 25, 2022
Cannabis Taxation Recommendation Report:
Data Collection April 25 – April 29, 2022
Analyses May 1 – June 13, 2022
Draft Report Submission June 13, 2022
Internal City Staff Meeting June 20, 2022
Final Report Submission July 11, 2022
Cannabis Sub Committee July 13, 2022
City Council Meeting July 26, 2022
Commercial Ca nnabis Tax Assessments
The Pun Group is available to begin the Commercial Cannabis Tax Assessments upon execution of the contract. An initial meeting with the City’s dedicated team will be coordinated to determine the competition schedule of the audits of business licenses and finalize the report template. On average, a typical financial audit takes 4-6 weeks.
Compliance Inspections & Reporting
SCI is available to begin onsite compliance inspections for operational cannabis businesses upon execution of the contract. If conducting annual inspections, the inspections will take place mid - year for each cannabis facility. If ad ditional inspections are requested, they will be scheduled proportionately throughout the year.
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
General Contract Requirements
Proof of Insurability
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, March 2022
Concurrence with C ontract Provisions
The SCI Team accepts the provisions of the Cit y’s standard contract as attached to the RFP .
Furthermore, The SCI Team understands that under certain circumstances, and subject to the discretion of the City, some provisions of the contract may be modified upon final contract negotiations with the selected consultant.
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-217, Version: 1
a. Pending Litigation - California Government Code section 54956.9(d)(1), conference with legal counsel regarding Santa Rita Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV000242.
b. Pending Litigation - California Government Code section 54956.9(d)(1), conference with legal counsel regarding Alisal Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV003402.
City of Salinas Printed on 4/20/2022Page 1 of 1
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