Tuesday, December 6, 2022
4:00 PM
City of Salinas
200 Lincoln Ave., Salinas, CA 93901
www.cityofsalinas.org
SALINAS ROTUNDA
City Council
Mayor Kimbley Craig
Councilmembers:
Carla Viviana González, District 1 - Tony Barrera, District 2 Steve McShane, District 3 - Orlando Osornio, District 4 Christie Cromeenes, District 5 - Anthony Rocha, District 6 Steven S. Carrigan, City Manager
Christopher A. Callihan, City Attorney
City Clerk’s Office: (831) 758-7381
Meeting Agenda - Final
Farewell Reception, 3 p.m. - 4 p.m.
December 6, 2022City Council Meeting Agenda - Final
Join us for a farewell reception in honor of District 5 Councilmember Christie Cromeenes at 3 p.m.. Regularly scheduled City Council meeting will begin at 4 p.m.
PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may view the meeting on television and/or online and may participate in-person in the Council Chamber.
PLEDGE OF ALLEGIANCE
ROLL CALL
CLOSED SESSION
Receive public communications from the audience on Closed session items.
The City Council will recess to closed session pursuant to:
ID#22-669 a. Labor Negotiations - California Government Code Section 54957.6, with its designated labor representatives Steven S. Carrigan, City Manager; Jim Pia, Assistant City Manager; Christopher A. Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Mark Roberts, Finance Director; Marina Horta-Gallegos, Human Resources Director; Sylvia Enriquez, Senior Human Resources Analyst; Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Management Employees, Confidential Non-Management Employees, and Department Directors.
b. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Santa Rita Union High School District, et al. v. City of Salinas et al., Monterey County Superior Court Case No. 20CV000242.
c. 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. 20CV00340. d. Existing Litigation - California Government Code Section 54956.9(a), conference with legal counsel regarding, Simon Jimenez v. City of Salinas, Workers’ Compensation Appeal Board Case Numbers: ADJ10374882; ADJ10374884.
THE CITY COUNCIL WILL RECONVENE IN THE ROTUNDA AT 5 P.M.
PUBLIC DISCLOSURE
December 6, 2022City Council Meeting Agenda - Final
Closed session announcements pursuant to California Government Code Section 54957.1.
PUBLIC COMMENT PROCEDURES
If you wish to make a general public comment or comment on a specific agenda item, you are encouraged to attended the City Council meeting in person. Public comment may also be submitted via email at [email protected] and will be entered into the record.
GENERAL PUBLIC COMMENTS
Receive public communications on items that are not on the agenda and that are in the City of Salinas’ subject matter jurisdiction. Comments on Consent, Consideration, and Closed session items should be held until the items are reached. The public may request that the legislative body consider adding an item for consideration on a future agenda. The public may comment on scheduled agenda items, including closed session items, as they are considered.
PUBLIC COMMENT TIME RESTRICTIONS
Public comments generally are limited to two minutes per speaker; the Mayor may further limit the time for public comments depending on the agenda schedule.
PROCLAMATION
Proclamation honoring Councilmember Christie Cromeenes, District 5.
CONSIDERATION
ID#22-686 Compensation Plans - Confidential Management and Confidential Non-Management; Modification to Classification- Salary Schedule Recommendation: Approve a Resolution authorizing approval of the Compensation Plans between the City of Salinas and the Confidential Management and Non-Management employees, and modification to the Classification - Salary Schedule.
ID#22-687 IAFF Memorandum of Understanding; Modification to Classification - Salary Schedule
Recommendation: Approve a Resolution authorizing the City Manager to sign the Memorandum of Understanding (MOU) with the Salinas Firefighters Association, International Association of Firefighters Local 1270 (IAFF), for a term ending on December 31, 2025, and approving modification to the Classification - Salary Schedule for the wage adjustments.
PUBLIC HEARINGS
ID#22-650 Naming Request for a Room or Area at the John Steinbeck Library in Honor of Marlys Maher
Recommendation: Approve a Resolution approving the renaming of a room or area at the John Steinbeck Library in honor of Marlys Maher in accordance with the Policy for the Naming of City Buildings, Facilities and Property.
December 6, 2022City Council Meeting Agenda - Final
ID#22-668 Fourth Substantial Amendment to City of Salinas United States Department of Housing and Urban Development FY 2019-2020 Annual Action Plan Recommendation: Approve a Resolution authorizing the submission of a Fourth Substantial Amendment to the City of Salinas United States Department of Housing and Urban Development FY 2019-2020 Annual Action Plan; and authorize the City Manager or designee to execute, for and on behalf of the City, any agreements and related documents for CDBG-CV and ESG-CV funded projects and activities as outlined in the Fourth Substantial Amendment Summary to the FY 2019-2020 AAP.
ID#22-560 Housing Successor Agency Loan Agreement with Sun Rose Housing, LLC Recommendation: Approve a Resolution authorizing the City Manager or designee to execute, for and on behalf of the City, a Housing Successor Agency (HSA) Loan Agreement, and any other applicable documents with Sun Rose Housing, LLC for the construction of a 100% affordable housing development at 439 Soledad Street (Project); and authorizing an appropriation of $500,000 of HSA funds to fund the Project.
ID#22-671 2022 Building Standards Codes and Local Amendments Recommendation: Adopt an Ordinance adopting the 2022 California Building Standards Code along with the related local amendments.
CONSENT AGENDA
All matters listed under Consent Agenda may be enacted by one motion unless a member of the Council or the public requests discussion or a separate vote.
ID#22-684 Minutes
Recommendation: Approve minutes of November 15, 2022.
ID#22-670 Financial Claims
Recommendation: Approve the financial claims report.
ID#22-620 Professional Service Agreement with Ecology Action of Santa Cruz for the Salinas Active Transportation Plan
Recommendation: Approve a Resolution approving an agreement for Professional Services between the City of Salinas and Ecology Action of Santa Cruz for the Active Transportation Plan; and authorizing the use of Active Transportation Plan funds up to $212,136.18 for the agreement with Ecology Action of Santa Cruz for the Salinas Active Transportation Plan.
ID#22-621 Salinas Safe Routes to Schools Plan
Recommendation: Approve a Resolution adopting the Salinas Safe Routes to Schools Plan as a strategic planning document.
ID#22-645 Resolution of Intent to Sell Real Property located at 128 Salinas Street Recommendation: Approve a Resolution declaring the intention of the Salinas City Council to sell the real property located at 128 Salinas Street also known as City Parking Lot 10.
ID#22-648 Purchase of Children’s Area Furnishings for Cesar Chavez Library Recommendation: Approve a Resolution authorizing the purchase children's area furnishing for Cesar Chavez Library from Demco in an amount not to exceed $35,000.
December 6, 2022City Council Meeting Agenda - Final
ID#22-653 Salinas Municipal Airport - Federal Aviation Administration 2023-2028 Airport Capital Improvement Plan
Recommendation: Approve a Resolution authorizing the transmittal of the Salinas Municipal Airport 2023-2028 Airport Capital Improvement Plan to the Federal Aviation Administration.
ID#22-661 November 8, 2022 Municipal Election Canvass
Recommendation: Approve a Resolution declaring the results of the November 8, 2022 Municipal Election for the office of Salinas Mayor and City Councilmembers for District 2, District 3, and District
5. COUNCILMEMBERS’ REPORTS, APPOINTMENTS AND FUTURE AGENDA ITEMS Receive communication from Councilmembers on reports, appointments and future agenda items. Councilmember comments are generally limited to three minutes.
ADJOURNMENT
_____________________________
Patricia M. Barajas, City Clerk
AGENDA MATERIAL / ADDENDUM
Any addendums will be posted within 72 hours of regular meetings or 24 hours of special meetings and in accordance with Californian Government Code Section 54954.2, unless otherwise allowed under the Brown Act. City Council agenda item reports may be viewed at the Salinas City Clerk’s Office, 200 Lincoln Avenue, Salinas, and are posted on the City’s website at www.cityofsalinas.org via the hyperlinks provided on the agenda. The City Council may take action that is different than the proposed action reflected on the agenda.
Disability-related modification or accommodation, including auxiliary aids or services, may be requested by any person with a disability who requires a modification or accommodation in order to participate in the meeting. Language interpretation may be requested as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Requests should be referred to the City Clerk’s Office At 200 Lincoln Avenue, Salinas, 758-7381, as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the city by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.
PUBLIC NOTIFICATION
This agenda was posted on December 1, 2022 at the City Clerk’s Office, in the Council Rotunda, and the City's website.
Meetings are streamed live at https://salinas.legistar.com/Calendar.aspx and televised live on Channel 25 at 4 p.m. on the date of the regularly scheduled meeting and will be broadcast throughout the day on the Wednesday, Friday, Saturday and Monday following the meeting. For the most up-to-the-minute Broadcast Schedule for The Salinas Channel on Comcast 25, please visit or subscribe to our Google Calendar located at http://tinyurl.com/salinas25. Recent City Council meetings may also be viewed on the Salinas Channel on YouTube at http://www.youtube.com/thesalinaschannel.
December 6, 2022City Council Meeting Agenda - Final
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-669, Version: 1
a. Labor Negotiations - California Government Code Section 54957.6, with its designated labor representatives Steven S. Carrigan, City Manager; Jim Pia, Assistant City Manager; Christopher A.
Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Mark Roberts, Finance Director; Marina Horta-Gallegos, Human Resources Director; Sylvia Enriquez, Senior Human Resources Analyst; Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Management Employees, Confidential Non- Management Employees, and Department Directors.
b. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Santa Rita Union High School District, et al. v. City of Salinas et al., Monterey County Superior Court Case No. 20CV000242.
c. 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. 20CV00340.
d. Existing Litigation - California Government Code Section 54956.9(a), conference with legal counsel regarding, Simon Jimenez v. City of Salinas, Workers’ Compensation Appeal Board Case Numbers:
ADJ10374882; ADJ10374884.
City of Salinas Printed on 12/1/2022Page 1 of 1
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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-686, Version: 1
Compensation Plans - Confidential Management and Confidential Non-Management; Modification to Classification- Salary Schedule
Approve a Resolution authorizing approval of the Compensation Plans between the City of Salinas and the Confidential Management and Non-Management employees, and modification to the Classification - Salary Schedule.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: December 6, 2022
DEPARTMENT: ADMINISTRATION
FROM: Steven S. Carrigan, City Manager BY: Marina Horta-Gallegos, Human Resources Director Che Johnson, Attorney, Liebert, Cassidy & Whitmore
TITLE: COMPENSATION PLANS - CONFIDENTIAL MANAGEMENT AND CONFIDENTIAL NON – MANAGEMENT; MODIFICATION TO
THE CLASSIFICATION - SALARY SCHEDULE
RECOMMENDED MOTION:
A motion authorizing approval of the Compensation Plan s between the City of Salinas and the Confidential Management and Non-Management employees , and modification to the Classification – Salary Schedule.
RECOMMENDATION:
It is recommended that the City Council adopt a Resolution a pproving the wage and benefit adjustments to the Compensation Plan s between the City of Salinas and the Confidential Management and Confidential Non -Management employees and approve the respective wage adjustments to the Classification – Salary Schedule.
EXECUTIVE SUMMARY:
The City’s negotiating team met with the non -represented Confidential Management and Non - Management employee groups during the past few weeks and brings forward Compensation Plan adjustments consistent with City Council’s parameters.
BACKGROUND:
The Compensation Plans between the City of Salinas and th e two Confidential employee groups expire on December 31, 20 22. The attached Compensation Plan s are the result of weeks of discussions between the parties.
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The Compensation Plan changes include the following:
4% salary cost of living increase in first year
2% increase in second year
2.5% rolled into to base pay for Confidential Management for elimination of bachelor’s degree incentive
Revised cost sharing language on health benefits
Language/process clean-up
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:
The proposed action meets the Effective and Culturally Responsive Government Council goal within the 2022-2025 Strategic Plan.
FISCAL AND SUSTAINABILITY IMPACT:
Taken to gether, the fiscal impact of th ese Compensation Plan s and all o ther employee MOUs approved by Council will require fiscal monitoring and review in the fiscal years ahead.
ATTACHMENTS:
Resolution
Confidential Management Compensation Plan
Confidential Non-Management Compensation Plan
Classification – Salary Schedule
Page | 3
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION APPROVING THE COMPENSATION PLANS BETWEEN THE CITY
OF SALINAS AND THE CONFIDENTIAL MANAGEMENT AND NON-
MANAGEMENT EMPLOYEES AND APPROVING A MODIFICATION TO THE
CLASSIFICATION-SALARY SCHEDULE
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the attached Compensation Plans for the Confidential Management and Non-Management employees is approved. The Classification-Salary Schedule previously adopted by the City Council by Resolution is hereby amended to reflect the wage adjustments for the Confidential employee groups.
PASSED AND ADOPTED this 6th day of December 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Kimbley Craig, Mayor
ATTEST:
______________________________
Patricia Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-687, Version: 1
IAFF Memorandum of Understanding; Modification to Classification - Salary Schedule Approve a Resolution authorizing the City Manager to sign the Memorandum of Understanding (MOU) with the Salinas Firefighters Association, International Association of Firefighters Local 1270 (IAFF), for a term ending on December 31, 2025, and approving modification to the Classification - Salary Schedule for the wage adjustments.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: December 6, 2022
DEPARTMENT: ADMINISTRATION
FROM: Steven S. Carrigan, City Manager BY: Marina Horta-Gallegos, Human Resources Director Che Johnson, Attorney, Liebert, Cassidy & Whitmore
Katie Hogan, Assistant City Attorney
TITLE: IAFF MEMORANDUM OF UNDERSTANDING; MODIFICATION TO CLASSIFICATION – SALARY SCHEDULE
RECOMMENDED MOTION:
A motion authorizing the City Manager to sign the Memorandum of Understanding (MOU) with the Salinas Firefighters Association, International Association of Firefighters Local 1270 (IAFF), for a term ending on December 31, 2025, and approving modification to the Classification – Salary Schedule for the wage adjustments.
RECOMMENDATION:
It is recommended that the City Council approve a Resolution authorizing the City Manager to sign a new Memorandum of Understanding with IAFF and authorizing modification to the Classification – Salary Schedule.
EXECUTIVE SUMMARY:
The MOU between the City and the IAFF expires on December 31, 2022. Representatives of the City and the IAFF met and conferred in good faith through the collective bargaining process and have reached tentative agreement on the terms of a new MOU consistent with City Council direction. The attached MOU between the City and IAFF is the result of several weeks of good faith negotiations between the parties. Highlights of the MOU changes include the following:
Term: January 2023 through December 2025
Wages: 4% salary increase effective January 2023; 2% effective in January 2024 and 2% effective in January 2025
Education Incentive: eliminated; $2,880 rolled into base pay Uniform Allowance: increase to $2,000 per calendar year Health: Revised cost sharing on health benefits
Other Terms: Language/process clean-up
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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:
The proposed action meets the Effective and Culturally Responsive Government Council goal within the 2022-2025 Strategic Plan.
FISCAL AND SUSTAINABILITY IMPACT:
The projected cumulative cost of the IAFF adjustments over three years, totals approximately $4,125,000.
ATTACHMENTS:
Resolution
Memorandum of Understanding with IAFF
Classification – Salary Schedule
Page | 3
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION APPROVING THE MEMORANDUM of UNDERSTANDING FOR THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS LOCAL 1270 AND
AUTHORIZING THE CITY MANAGER TO SIGN THE MEMORANDUM OF
UNDERSTANDING AND AUTHORIZING MODIFICATION TO THE
CLASSIFICATION – SALARY SCHEDULE
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the City Manager is hereby authorized and directed for and on behalf of the City of Salinas to sign the Memorandum of Understanding for the International Association of Firefighters Local 1270, for a term through December 31, 2025, and authorizing the corresponding modification to the Classification – Salary Schedule.
APPROVED this 6th day of December 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Kimbley Craig, Mayor
ATTEST:
______________________________
Patricia Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-650, Version: 1
Naming Request for a Room or Area at the John Steinbeck Library in Honor of Marlys Maher Approve a Resolution approving the renaming of a room or area at the John Steinbeck Library in honor of Marlys Maher in accordance with the Policy for the Naming of City Buildings, Facilities and Property.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: DECEMBER 6, 2022
DEPARTMENT: LIBRARY & COMMUNITY SERVICES
FROM: KRISTAN LUNDQUIST, LCS DIRECTOR
BY: MILA RIANTO, DEPUTY LIBRARIAN
TITLE: NAMING REQUEST FOR A ROOM OR AREA AT THE JOHN
STEINBECK LIBRARY IN HONOR OF MARLYS MAHER
RECOMMENDED MOTION:
A motion to a pprove a Resolution authorizing a room or area at the John Steinbeck Library be named in honor of Marlys Maher.
BACKGROUND:
Library staff received a naming request application from Stephanie Loose on August 8, 2022, to name a soon to be renovated room or area at the John Steinbeck Library, in honor of Marlys Maher.
Marly Maher was a longtime supporter and an advocate of the Salinas Public Library who passed away in July 2020. She served as Library Commissioner and was actively involved with the Friends of the Salinas Public Libraries to help efforts to improve children’s literacy through library use. She was best known for her passion for local government, libraries, and deep commitment to improve Salinas, including actively participated in campaign to restore library services through Measure V.
Through her estate, Marlys bequeathed $297,671.18 to the Salinas Public Library for improvement at John Steinbeck Library. The Library plans to allocate this fund for the John Steinbeck Library’s building improvement projects.
The City Council adopted a Policy for the Naming of City Buildings, Facilities and Property at their December 6, 2011 meeting. The process requires that when an application is submitted it is forwarded to the appropriate City Commission for review and public hearing before a recommendation is made to the City Council. The policy states that naming of a public facility, or any parts ther eof, in recognition of an individual posthumously may only be considered if the individual had a recognized positive effect on the community and has been deceased for more than two (2) years. The application received to name a room or area at the John Steinbeck Library after Marlys Maher meets the criteria outlined in the Naming Policy.
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On October 11, 2022, the Library and Community Services Commission approved a motion to recommend to the City Council that a room or area at the John Steinbeck Library be named in honor of Marlys Maher. Notice for public hearing for this consideration was posted in the Monterey County Weekly’s edition of October 27, 2022.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed ac tion is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
This request support City Council’s Vision and Strategic Goals of Youth and Seniors, as well as Infrastructure and Environmental Sustainability by providing means to improve City facility that provides services for community members of all ages.
DEPARTMENTAL COORDINATION:
The Library & Community Services Department will work with the Finance department for procurement of services to create the signage for the area naming.
FISCAL AND SUSTAINABILITY IMPACT:
This motion requires the use of part of Marlys Maher bequeath to design and create naming signage for a room at the John Steinbeck Library.
ATTACHMENTS:
1. Application for Naming of City Buildings, Facilities and Property from Stephanie Loose
2. Resolution
City of Salinas
Application for Naming of City Buildings, Facilities and Property Applicant Name: _
Stephanie Loose
1295 Bellemeade Cir SW
Mableton, GA 30126-1201
Mailing Address: _
E-mail: t f26¾' hiin;J~ ~ Phone '7 /) D -// IJ5-? 0 rJ
Naming eguest ~
Building/Facilily~ Description (e.g., Parle,~ "" _ hf\ SkiM Location: • ..-380 L, ncoln 1/-ve,nuf -~ /, ~ , Name to honor, dividuaUs) or group Yes X. No - - -'--- - - -- - - - - Are you requesting to name only a portion of the site or facility? Yes )(_ No _ What is the proposed name? dl.r»J'f (!lo_ h'U"" Ion Yl-] Please indicate which criteria below pertain to your proposed naming request.
Yes \/..... No _ _ has made lasting and significant contributions to the protection of natural or cultural resources of the City of Salinas.
Yes \[__ No Has made substantial contributions to the betterment of a specific - - -- - facility or park consistent with the established standard for the facility, that has positively improved the quality of life for the citizens of Salinas.
Yes _ _ No~ Has made a significant contribution to economic vitality or is associated
with an economic development/redevelopment activity in the fulfillment of the City's mission.
Yes _ _ No _x__ Commemorates a significant historical event, cultural attribute, local landmark, or historical figure.
Yes X_ No _ _ Recognizes a person whose death marks an event of significance to the City as a whole.
Y es _ _ No l Preserves the geographic, environmental (relates to natural or physical features), historic or landmark connotation of particular significance to the area in which the land or facility is located, or for the City as a whole.
Yes -A- No _ _ The land, facility or the funds for the purchase, construction, renovation or maintenance was donated by the individual, family or organization.
Yes _ _ NoL An in-kind contribution or service of major and lasting significance was made for the acquisition of the land, facility, or the planning, development, construction, renovation or maintenance of a facility.
Yes _ _ No _)(._ Recognizes a benefactor organization, group or business that contributed to the site or facility.
Other
Justification
Please provide written justification supporting the proposed name, and any additional comments related to this application. Attach additional pages or supplemental information, if applicable.
Signature
Jlo1~0~~ Date /
110 W. Luis Street
Salinas, CA 93901
August2022
To Whom it May Concern,
Marlys Maher was a long-time member of The Friends of the Salinas Public Library. She believed in the mission of The Friends, a non-profit, public- benefit organization of volunteers who provide contributions to the Salinas Public Library.
These fund programs and purchases not within the library budget. The Friends also work to create public awareness of and community support for the library system and its programs.
As I began my tenure as an officer of the Friends 15 years ago, Marlys was there as a mentor and colleague. She shared her work as a volunteer in the Annual Big Book Sale which provided residents with books at low cost and money from the sale for the library system. I was the new FOSPL secretary and she also "showed me the ropes" of how to report carefully to the board. She edited my minutes to ensure clear goals and motions reflected our discussions
What I also remember was the friendship and leadership Marlys gave in support of Elizabeth Martinez as the Head Librarian at the Salinas Public Library. Marlys used her many years of knowing Salinas to assist Elizabeth who was new to the community, but not to libraries. This was vital as the library system was under the real prospect of closing permanently!
Marlys was not only a friend to The Friends, but a support of the entire library system. Marlys was there for the residents of Salinas as she wore many hats to boost the missions of the library and The Friends.
Respectfully,
'71.aAg, <:11.ida, "lno"l2ae
1wv_.:_ LEAGUE OF WOME VOTERS ~
~ OF MONTEREY COUNTY
1 August 2022
City Clerk of Salinas Patricia Barajas
City Hall
200 Lincoln Avenue
Salinas, CA 93901
Dear Ms. Barajas,
This letter is in support of the proposed naming of a room in the John Steinbeck Library for Marlys Maher. Marlys was an ardent advocate for libraries, for good government and for voter education. She lived in Salinas, worked until retirement as a librarian at Hartnell College, and was devoted to the community.
She helped establish the Foundation for Monterey County Free Libraries. She also took an active part in the Measure V campaign to restore the City of Salinas's library services after a financial crisis reduced its hours to 13 a week. A reporter once described her advocacy style as: "Salinas librarian comes out swinging."
Marlys was a longtime member of the League of Women Voters of the Salinas Valley (now combined into the League of Women Voters of Monterey County). She served in many roles in that organization including President and Voter Service Chair. In the early 1990's, she helped lead a two-year joint study by the Salinas Valley League and the Monterey League regarding public libraries, culminating in 1993 in our League's position on libraries, which remains the current League position, available at htt ps:// my.lwv.org/california/monterey county/libraries.
Because Marlys worked so tirelessly for the Salinas libraries, and for the ideals of good government, citizenship and education, we request that a room in the John Steinbeck Library be named in her honor.
Sincerely,
·mdMI~ h au10vn,
Marianne Gawain
President, League of Women Voters of Monterey County
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION TO APPROVE NAMING REQUEST FOR A ROOM OR AREA AT
THE JOHN STEINBECK LIBRARY IN HONOR OF MARLYS MAHER
WHEREAS, a naming request application was received to name a soon to be renovated room or area at the John Steinbeck Library in honor of Marlys Maher.; and
WHEREAS, Marly Maher was a longtime supporter and an advocate of the Salinas Public Library and her deep commitment to improve Salinas and its children literacy through library use, who passed away in July 2020.; and
WHEREAS, through her estate, Marlys bequeathed $297,671.18 to the Salinas Public Library for improvement at John Steinbeck Library.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes a room or area at the John Steinbeck Library be named in honor of Marlys Maher.
PASSED AND APPROVED this 6th day of December, 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#22-668, Version: 1
Fourth Substantial Amendment to City of Salinas United States Department of Housing and Urban Development FY 2019-2020 Annual Action Plan
Approve a Resolution authorizing the submission of a Fourth Substantial Amendment to the City of Salinas United States Department of Housing and Urban Development FY 2019-2020 Annual Action Plan; and authorize the City Manager or designee to execute, for and on behalf of the City, any agreements and related documents for CDBG-CV and ESG-CV funded projects and activities as outlined in the Fourth Substantial Amendment Summary to the FY 2019-2020 AAP.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: DECEMBER 6, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
BY: FRANCISCO BRAMBILA, COMMUNITY DEVELOPMENT
ANALYST
TITLE: FOURTH SUBSTANTIAL AMENDMENT TO UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FY
2019-2020 ANNUAL ACTION PLAN
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing:
1. the submission of a Fourth Substantial Amendment to the City of Salinas United States Department of Housing and Urban Development FY 2019-2020 Annual Action Plan; and
2. the City manager or designee to execute, for and on behalf of the City, any agreements and related documents for CDBG-CV and ESG-CV funded projects and activities as outlined in the Fourth Substantial Amendment Summary to the FY 2019-2020 AAP.
EXECUTIVE SUMMARY:
Through the Coronavirus Aid, Relief and Economic Security (CARES) Act, approved by Congress on March 27, 2020, the United States Department of Housing and Urban Development ( HUD) made available an additional $3.064 billion dollars for programs such as the Community Development Block Grant (CDBG) Program and Emergency Solutions Grants (ESG) Program.
HUD utilized its existing grant formula methodology to allocate funds to entitlement jurisdictions, such as the City of Salinas (City), supplemental FY 2019-2020 Annual Action Plan (AAP) CARES Act COVID-19 (CV) allocations. On April 2, 2020, HUD awarded the City FY 2019 -2020 CARES Act Phase 1 allocations of $1,190,782 for CDBG-CV and $ 617,245 for ESG-CV. A second allocation of $5,814,926 of FY 2019 -2020 CARES Act Phase 2 ESG -CV funding was allocated on June 9, 2020 and a third allocation of $1,209,375 of Phase 3 CDBG-CV funding was allocated on September 11, 2020. To date, three Substantial Amendments to the City’s FY 2019- 2020 AAP have been executed by the City to allow for the thoughtful allocation of most of the City’s awarded CV funds to various projects and acti vities, but a small portion remained unallocated for future consideration . This Fourth Substantial Amendment (Amendment) will allocate, consolidate, and reconcile all of the City’s awarded CV funding.
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BACKGROUND:
On May 26, 2020, the City Council conducted a public hearing to approve a Substantial Amendment to its FY 2019 -2020 AAP to accept and allocate $1,190,782 of HUD CDBG -CV Phase 1 funding and $617,245 of HUD ESG -CV Phase 1 funding. Shortly thereafter on June 9, 2020, HUD notified the City that it would receive an additional allocation of $5,814,926 of ESG- CV Phase 2 CARES Act funding. On June 23, 2020, the City Council conducted a public hearing and approved a Second Substantial Amendment to the FY2019-2020 AAP to allow for the receipt and compliant programming of both Phase 1 and Phase 2 CARES Act CDBG -CV and ESG-CV funds. On September 11, 2020, HUD again notified the City of an additional $1,209,375 in CARES Act Phase 3 CDBG-CV funding. In order to fully access this funding and move forward with planned projects , the City Council conducted a public hearing on January 19, 2021 and approved a Third Substantial Amendment to its FY 2019 -2020 AAP which included a small unallocated amount of awarded CDBG-CV and ESG-CV funding.
DISCUSSION:
A Substantial Amendment is a formal process that a jurisdiction can exercise to modify an existing HUD approved Consolidated Plan ( Con Plan ) or AAP. Amendment s are also required when seeking to fund new activities not previously identified in a Con Plan and AAP or if an increase in current activity funding or total activity beneficiaries exceeds a certain percentage threshold. The Amendment process requires a public notice outlining proposed Amendment actions, a minimum five (5) day public review and comment period, a public hearing, and approved Council Resolution authorizing submission to HUD.
Annually, the City, as a HUD entitlement jurisdiction, is required by HUD to submit an AAP for review and approval. The AAP serves as the City’s official grant application to HUD for its annual entitlement allocations of CDBG, HOME and ESG funds. The AAP describes eligible projects , programs, and funding amounts for each fund source as well as a description of its relationship to objectives contained in the City’s broader five-year Con Pla n. Per direction from HUD, jurisdictions awarded CV funds were required to execute a Substantial Amendment to accept and incorporate each of the additional one-time CV allocations into its FY 2019-2020 AAP. In follow up to three prior amendments, t his Fourth Substantial Amendment seeks to make final modifications and additions to various FY 2019-2020 AAP CDBG-CV and ESG-CV activities and funding amounts to allow for full, compliant expenditure of all funds within stipulated expenditure timeframes. The following tables list all activities, components, and funding amounts of the proposed fourth Amendment. C omplete descriptio ns are listed in the attached Substantial Amendment Summary.
CDBG-CV Allocation
Name of Organization Name of Activity Current
Funding
4th Sub.
Amendment
City of Salinas Administration $480,031 $480,031
City of Salinas Grow Salinas Fund – COVID-19 $332,069 $216,344 City of Salinas Economic Development Technical Assistance $400,000 $400,000 Page | 3
City of Salinas Housing Information and Referral Services & Fair Housing $400,000 $512,790
Salvation Army Homeless Encampment Meal Deliveries $76,679 $58,035 Downtown Streets Team Salinas Downtown Streets Team $238,000 $238,000 Eden Council for Hope
and Opportunity Fair Housing and Tenant/Landlord Services $84,000 $184,000 Food Bank for Monterey
County Food Bank for Monterey County $310,957 $310,957
To be determined To be determined $78,421 $0
Total CDBG-CV Funding: $2,400,157 $2,400,157
ESG-CV Allocations
Name of Organization ESG Component Existing
Funding
4th Sub.
Amendment
City of Salinas
Administration $643,216 $643,216
Street Outreach $25,000 $364,105
Emergency Shelter $708,890 $975,546
HMIS $50,000 $0
Community Homeless Solutions Emergency Shelter $1,606,631 $1,562,923 Downtown Street Teams Street Outreach $238,633 $575,740 Salvation Army Street Outreach $75,000 $78,098
Coalition of Homeless Service Providers Emergency Shelter $0 $100,000 HMIS $0 $37,545
Bay Area Community Service Emergency Shelter $0 $563,865 Central Coast Center for Independent Living Emergency Shelter $0 $569,743 Rapid Re-Housing $0 $179,500
Step Up on Second Change Emergency Shelter $0 $150,000
University Corporation at Monterey Bay Street Outreach $0 $150,000 Rapid Re-Housing $0 $231,890
Interim Inc. Street Outreach $0 $173,863
Emergency Shelter $0 $76,137
To be determined
Street Outreach $721,816 $0
Homeless Prevention $1,000,000 $0
Rapid Re-Housing $1,362,985 $0
Total ESG-CV Funding: $6,432,171 $6,432,171
DEPARTMENT COORDINATION:
The Community Development Department Housing & Community Development Division regularly coordinates and consults with the City Attorney, Finance Department, and HUD Region IX staff regarding its AAP projects, activities, and funding.
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).
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STRATEGIC PLAN INITIATIVE:
The receipt and administration of the HUD CARES Act CDBG-CV and ESG-CV funding will advance the City of Salinas Strategic Plan 2022 -2025 Goals and Strategies of Public Safety, Housing/Affordable Housing, and Effective and Culturally Responsive Government.
FISCAL AND SUSTAINABILITY IMPACT:
Applicable FY 2019 -2020 AAP Cares Act Covid -19 funds are appropriated and available in CDBG - Covid 19 and ESG-CV HUD fund accounts.
ATTACHMENTS:
Resolution
Substantial Amendment Summary
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION AUTHORIZING SUBMISSION OF A FOURTH SUBSTANTIAL
AMENDMENT TO THE CITY OF SALINAS UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FY 2019-2020 ANNUAL ACTION PLAN IN RESPONSE TO COVID-19
WHEREAS, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in response to the COVID -19 (CV) pandemic which was signed into law by President Donald Trump on March 27, 2020; and
WHEREAS, on May 26, 2020, the City Council approved a Substantial Amendment to its FY 2019 -2020 Annual Action Plan (AAP) to accept and program $1,190,782 of Community Development Block Grant (CDBG) -CV Phase 1 funds and $617,245 of Emergency Solutions Grants (ESG) -CV Phase 1 funds; and
WHEREAS, on June 23, 2020, the City Council approved a Second Substantial Amendment to its FY 2019-2020 AAP to accept $5,814,926 of ESG -CV CARES Act Phase 2 funds and reallocate $1,190,782 of CDBG -CV Phase 1 funds and $617,245 of ESG -CV Phase 1 funds; and
WHEREAS, on January 19, 202 1, the City Council approved a Third Substantial Amendment to the FY 2019-2020 AAP to initially accept and allocate $1,209,375 of CDBG-CV Phase 3 funds; and
WHEREAS, not all CDBG-CV and ESG -CV funds awarded by HUD have been previously allocated to eligible projects and activities; and WHEREAS, an Amendment to an AAP is required by HUD if a jurisdiction is seeking to fund new activities not previously identified in a Con Plan and AAP or if an increase in current activity funding or total activity beneficiaries exceeds a certain percentage; and WHEREAS, the FY 2019-2020 AAP describes the eligible proposed projects, programs, activities, and funding amounts for CDBG, CDBG-CV, HOME, ESG and ESG -CV and its relationship to the 2020-2024 Consolidated Plan (Con Plan) objectives; and WHEREAS, this Fourth Amendment to the FY 2019 -2020 AAP includes new eligible activities and the modification and reconciliation of all activities and funding amounts for the City’s CDBG-CV and ESG-CV allocations; and
WHEREAS, the City proposes to execute a Fourth Substantial Amendment to its FY 2019- 2020 AAP to seeks to make final modifications and additions to various CDBG-CV and ESG-CV activities and funding amounts to allow for full, compliant expenditure of all funds within stipulated expenditure timeframes as detailed in the Council Staff Report dated December 6, 2022 and entitled “Fourth Substantial Amendment to United States Department of Housing and Urban Development FY 2019 -2020 Annual Action Plan ” and outlined in Attachment B of the report entitled “City of Salinas Fourth Substantial Amendment Summary”; and 2 WHEREAS, a notice was posted at City Clerk’s Office, City Hall (200 Lincoln Avenue), City Permit Center (65 W. Alisal Street – 1st Floor), City Community Development Department Housing Division (65 W. Alisal Street – 2nd Floor), John Steinbeck Library (350 Lincoln Street), Cesar Chavez Library (615 Williams Road), El Gabilan Library (1400 N. Main St.), City Housing Division NOFA/RFP e -mail distribution list and on the City’s website at:
https://www.cityofsalinas.org/our-city-services/community-development/housing-and- community-development-division/rfps-public-notices on December 1 , 2022 requesting public review and comment regarding the proposed Amendment to the FY 2019-2020 AAP; and WHEREAS, the notice included a minimum HUD-approved five (5) day public review and comment period beginning on December 1, 2022, through December 6, 2022.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby approves the proposed Fourth Substantial Amendment to the FY 2019-2020 AAP and authorizes its submission to HUD.
BE IT FURTHER RESOLVED that the Salinas City Council hereby authorizes the City Manager or designee to execute, for and on behalf of the Cit y, any agreements and related documents for CDBG -CV and ESG -CV funded projects and activities as outlined in the Fourth Substantial Amendment Summary to the FY 2019-2020 AAP.
PASSED AND APPROVED this 6th day of December 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
____________________________
Kimbley Craig, Mayor
ATTEST:
_______________________________
Patricia M. Barajas, City Clerk
Consolidated Plan Salinas 1
OMB Control No: 2506-0117 (exp. 07/31/2015)
CITY OF SALINAS
FY 2019-2020 ANNUAL ACTION PLAN
FOURTH SUBSTANTIAL AMENDMENT SUMMARY
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Through the CARES Act, the United States Department of Housing and Urban Development (HUD) allocated COVID-19 (CV) funding allocations to the City of Salinas (City) for both the Community Development Block Grant (CDBG) and Emergency Solutions Grants (ESG) to support the preparation for and response to the community impacts of the CV pandemic. HUD’s distribution plan for the additional funding included multiple phases that would allow for quick access to funding necessary to address the immediate crisis resulting from the rising pandemic, as well as phases that would support post-pandemic community recovery.
In Phase 1, the City was allocated $1,190,782 in CDBG-CV and $617,245 in ESG-CV funds. The City amended the FY 2019-2020 Annual Action Plan (AAP) to receive and plan for the expenditure of these additional funds for COVID responses. On May 26, 2020, the City Council conducted a public hearing and approved a necessary Substantial Amendment to its FY 2019-2020 AAP to allow the City to receive and program project funding and activities.
On June 9, 2020, HUD notified the City that it would receive an additional $5,814,926 ESG-CV Phase 2 (2) Cares Act funding allocation. In order to accept this ESG -CV(2) funding, enhance coordination with other funding, and comply with CARES Act nonduplication of benefit requirements, the City approved a Second Substantial Amendment to its FY 2019-2020 AAP on June 23, 2020.
On September 11, 2020, the City was again notified by HUD that the City would receive an additional $1,209,375 in CDBG -CV Phase 3 (3) CARES Act funds. A Third Substantial Amendment to the FY 2019-2020 AAP was approved to received and allocate this new CDBG-CV(3) funding.
Per the Citizen Participation Plan a Substantial Amendment (Amendment) is defined as follows:
• For larger projects, over $200,000, an increase of 25 percent or more in project funding.
Changes that are less than $50,000 are not considered substantial. • An increase of 25 percent or more in project beneficiaries (i.e. income groups, limited clientele groups, residents of a targeted area) or a change in purpose, scope or location which would change the project beneficiaries by more than 25 percent or • A determination by the Community Development Director, that the change is substantial even though it falls below the standards in Section 1 and 2 above. • For ESG components, as long as the maximum 60% threshold for Street Outreach and Emergency Shelter is not exceeded, funding can be moved within the other components to meet expenditure requirements without a substantial amendment.
This Amendment to the FY 2019-2020 AAP is necessary because the City is proposing to add funding in excess of 25% to an existing approved project and the ESG components 60% threshold for Street Outreach and Emergency Shelter has exceeded.
This document represents the City’s Fourth Substantial Amendment to the FY 2019-2020 AAP which will reconcile and reallocate ESG-CV and CDBG-CV funding within its AAP.
Consolidated Plan Salinas 2
OMB Control No: 2506-0117 (exp. 07/31/2015)
FY 2019-2020 Annual Action Plan (July 1, 2019 through June 30, 2020) Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
Introduction
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Through the CARES Act, the United States Department of Housing and Urban Development (HUD) allocated COVID-19 (CV) funding allocations to the City of Salinas (City) for both the Community Development Block Grant (CDBG) and Emergency Solutions Grants (ESG) to support the preparation for and response to the community impacts of the CV pandemic. HUD’s distribution plan for the additional funding included multiple phases that would allow for quick access to funding necessary to address the immediate crisis resulting from the rising pandemic, as well as phases that would support post-pandemic community recovery.
This Fourth Substantial Amendment to the FY 2019-2020 AAP reallocates funding in the Phases 1, 2 and 3 of HUD’s CARES Act resource distribution plan. The goal and purpose of the HUD CARES Act funding is to respond, prepare and prevent COVID-19. The City will ensure that all proposed activities, programs and funding will be utilized to respond, prepare and prevent COVID-19.
AP-12 Participation - 91.105, 91.200(c)
Summary of citizen participation process/Efforts made to broaden citizen participation The AAP Amendment addresses the reallocation of funding from the CARES Act that will be available for a minimum public review and comment period of five (5) days per waiver of the federal regulations.
The draft A AP Amendment is available for comment from all interested members of the public from December 1, 2022 to June December 6, 2022
The AAP Amendment and the public notice document are available for review at City Clerk’s Office, City Hall (200 Lincoln Avenue), City Permit Center (65 W. Alisal Street – 1st Floor), City Community Development Department Housing Division (65 W. Alisal Street), John Steinbeck Library (350 Lincoln Street), Cesar Chavez Library (615 Williams Road), El Gabilan Library (1400 N. Main St.), City Housing Division NOFA/RFP e -mail distribution list and on the City’s website at:
https://www.cityofsalinas.org/our-city-services/community-development/housing-and-community- development-division/rfps-public-notices.
Please submit electronic, written or mailed comments to:
City of Salinas
Community Development Department Housing Division
Attn: Planning Manager
City of Salinas
65 W. Alisal Street, 2nd Floor
Salinas, CA 93901
[email protected]
Consolidated Plan Salinas 3
OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-15 Expected Resources – 91.220(c) (1,2)
The City of Salinas was awarded $ 6,432,171 in ESG-CV and $ 2,400,157 in CDBG-CV funds from two phases of CARES Act funds through three substantial amendments to the FY 2019-2020 Annual Action Plan. However, the City is not expected to be awarded additional funds. See table below which shows CARE Act funds awarded.
.
Program Source of
Funds Uses of Funds
Expected Amount Available Year 1 Expected
Amount
Available
Remainder
of ConPlan
$
Narrative
Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources
: $
Total:
$
CDBG-CV
(1)
Public-
Federal
Acquisition
Admin and Planning
Economic
Development
Housing
Public
Improvements
Public Services
$1,190,782 $0 $0 $1,190,782 $0
One-Time
Award of
funding -
CARES Act,
March 2020
CDBG-CV
(3)
Public-
Federal
Acquisition
Admin and Planning
Economic
Development
Housing
Public
Improvements
Public Services
$1,209,375 $0 $0 $1,209,375 $0
One-Time
Award of
funding -
CARES Act,
March 2020
ESG-CV
(1)
Public-
Federal
Admin and Planning
Essential Services
Street Outreach
Homeless
Prevention
Rapid Re-housing
Emergency Shelter
HMIS
$617,245 $0 $0 $617,245 $0
One-Time
Award of
funding -
CARES Act,
March 2020
ESG-CV
(2)
Public-
Federal
Admin and Planning
Essential Services
Street Outreach
Homeless
Prevention
Rapid Re-housing
Emergency Shelter
HMIS
$5,814,926 $0 $0 $5,814,926 $0
One-Time
Award of
funding -
CARES Act,
March 2020
Consolidated Plan Salinas 4
OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-20 Annual Goals and Objectives – 91.220(c)(3) &(e)
Goals Summary Information
The figures below represent estimates of allocation goals and objectives for the additional funding provided under the CARES Act. These figures are determined by the funding recipients’ priority needs.
AP-25 Allocation Priorities – 91.220(d)
Introduction
The amended percentages below are based on the amount of funds awarded by each new program funded by the CARES Act for federal Fiscal Year (FY) 2019-2020 for eligible activities that fall within that goal. The percentages below will depend on funding needs for activities within the specified goal categories.
Sort
Order Goal Name Start
Year
End
Year Category Geographic
Area
Needs
Addressed Funding Goal Outcome
Indicator
2 Enhanced
Homeless
Facilities and
Services
2015 2019 Homeless
City-Wide and
Chinatown and
Downtown Areas
Homeless
Services
Emergency
Shelters and
Other
Homeless
Facilities
CDBG-CV(1):
$502,669
CDBG-CV(3):
$314,679
ESG-CV(1):
$555,521
ESG-CV(2):
$5,233,434
Overnight/Emergency
Shelter/Transitional
Housing Beds added:
102 Beds
Public service activities
other than Low/Moderate
Income Housing Benefit:
600 Persons Assisted
Homeless Person
Overnight Shelter:
295 Persons Assisted
3 Enhanced
Neighborhood
Conditions
2015 2019
Non-Homeless
Special Needs
Non-Housing
Community
Development
City-Wide and
Alisal
Neighborhood
Revitalization
Strategy Area
Public
Services
Economic
Development
CDBG-CV(1):
$449,957
CDBG-CV(3):
$652,821
Public service activities
other than Low/Moderate
Income Housing Benefit:
2,400 Persons Assisted
Businesses assisted:
86 Business Assisted
4 Planning and
Program
Administration
2015 2019 Planning and
Administration City-Wide Planning and
Administration
CDBG-CV(1):
$238,156
CDBG-CV(3):
$241,875
ESG-CV(1):
$61,724
ESG-CV(2):
$581,492
Consolidated Plan Salinas 5
OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-38 Project Summary
Project Summary Information
18 Project Name CDBG-CV Planning and Program Administration Target Area Citywide
Goals Supported Planning and Program Administration
Needs Addressed Planning and Administration
Funding CDBG-CV: $480,031
Description To prepare, prevent, and respond to COVID-19 to cover additional administrative costs for COVID-19 activities.
Target Date December 31, 2021
Estimate the number and type of families
that will benefit from the proposed
activities
Not Applicable
Location Description Citywide
Planned Activities Program design and delivery of COVID-19 services 19 Project Name ESG Homeless Assistance for Entitlement Program and COVID-19 Response
Target Area City-Wide
Goals Supported Enhanced Homeless Facilities and Services Needs Addressed Emergency Shelters and Other Homeless Facilities Funding ESG-CV: $6,432,171
Description
The ESG Program will involve a range of activities to address homelessness.
These include the provision of outreach, shelters, prevention, rapid re-housing, and HMIS services. In addition, the City plans to provide a number of emergency services and expand shelter capacity (meeting social distancing requirements) to assist the homeless during the COVID-19 crisis.
Target Date December 31, 2021
Estimate the number and type of families
that will benefit from the proposed
activities
350 persons Assisted
102 Shelter Beds Added
295 Shelter Bed Nights Provided
Location Description Citywide
Planned Activities
Activities may include:
• Homeless Encampment Engagement - To respond to shelter-in-place order due to COVID -19 by providing basic need stipends, essential ou treach, engagement, supplies, and portable sanitation stations and engagements toat various homeless encampments. To minimize and prevent homeless encampment displacement and provide basic sanitation needs . (ESG-CV:
$25,000431,338) (50 persons assisted)
• Emergency Hotel/Motel VouchersProgram -– Provide motel/hotel vouchers or rooms Tto respond to the demands of getting the most vulnerable homeless populations off the streets and into a safe, decent, and sanitary conditions. To prevent the most vulnerable homeless populations from being out in unsafe and unsanitary conditions. (ESG-CV: $275,000819,743) (220 homeless overnight sheltered)
Consolidated Plan Salinas 6
OMB Control No: 2506-0117 (exp. 07/31/2015)
• Downtown Streets Team - DST will provide services into self -sufficiency to Team Members who comprised of unhoused individuals. The Team will be receiving social services to removed barriers for housing along with employment services to graduate them into regular employment as a respond to COVID -19. The Outreach Specialist will continue working with existing community partners towards Team Members goals related to shelter, housing, heath, mental health, substance abuse, employment, income, and self -sufficiency. While conducting 500 outreach interactions with unhoused individuals. (ESG -CV: $ 238,633575,740) ( 240 persons assisted)
• Food Distribution - Food distribution to homeless encampments. To respond to shelter-in-place order due to COVID -19 by increasing food distribution capacity to homeless encampments. To minimize and prevent homeless encampment displacement. (ESG -CV: $ 75,00078,098) (200 persons assisted)
• Warming Shelter and Trailer Set -Up - Upfront trailer setup costs (sewer, water, plumbing, electric, etc.). Prepare and respond to the pandemic in order to increase capacity (beds) for homeless individuals and families.(ESG-CV: $21,800) (110 beds added)
• Warming Shelter and Trailers Operations - Operational costs for Warming Shelter and three trailers which serves both homeless individuals and families. Prepare and respond to the pandemic in order to increase capacity (beds) for homeless ind ividuals and families. (ESG -CV: $489,285520,685) (325 homeless overnight sheltered)
• Chinatown Navigation Center Trailers and Sprung Structure Set-up -Upfront trailer setup costs (sewer, water, plumbing, electric, etc.). Prepare and respond to the pandemic in order to increase capacity (beds) for homeless individuals and families. (ESG-CV1: $412,090843,727) (60 beds added) • Chinatown Navigation Center, Trailers, and Sprung Operations -Operational costs for Chinatown Navigation Center and five trailers which serves both homeless individuals and families. Prepare and respond to the pandemic in order to increase capacity (beds) for homeless individuals and families. (ESG-CV: $1,117,3461,042,238) (110 homeless overnight sheltered) • SHARE Center – Operations of the Salinas H ousing Advancement, Resources & Education center to provide emergency shelter services , housing navigation and other resources to homeless households. Including the installation and operation of RV trailers. (ESG-CV: $606,807) • Rapid Rehousing Services – Services to be provided by Central Coast Center for Independent Living (CCCIL) & University Corpo ration at Monterey Bay, which include housing navigation, housing placement, & short- and medium-term rental assistance during the COVID-19 pandemic. (ESG-CV: $411,389)
• Emergency Motel Program – Program to be run by University Corporation at Monterey Bay and will provide stabilization services, case management , including engagement, housing preparation, and crisis planning for those individuals participating in the motel program during the COVID -19 pandemic. (ESG-CV: $150,000)
• MCHOME Program – Program to provide emergency temporary housing for those at ri sk of contracting COVID -19. Services include behavioral health Consolidated Plan Salinas 7
OMB Control No: 2506-0117 (exp. 07/31/2015)
assessments, referrals and linkages to housing and shelters, as well as food deliveries to participants of the motel program. (ESG-CV: $250,000) • HMIS – Provide for the HMIS data collection and maintenance for the homeless population in respond to COVID-19 (ESG-CV: $50,00037,545) • Program Administration – Provide for necessary staff time to plan, prepare and respond to deliver servi ces and facilities for the homeless during the COVID-19 crisis. (ESG-CV: $643,216)
• To Be Determined – As the Coronavirus situation changes, additional needs will surface, and the City will reserve funding to respond to those changing needs. Other needs may include: increased/extended shelter needs; rapid re-housing; homeless prevention; street outreach; and other essential services in order to respond, prevent, and prepare for COVID-19. (ESG-CV:
$3,084,801)
22 Project Name CDBG-CV Public Services and Economic Development for COVID -19 Response
Target Area City-Wide and Alisal Neighborhood Revitalization Strategy Area Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Services and Economic Development Funding CDBG-CV: $1,527,026
Description
The City Plans to provide economic development assistance to small businesses with loans or grants and technical assistance to small businesses and microenterprise businesses in order to respond to the COVID -19 pandemic. The City also plans to provide fair housing counseling, tenant/landlord mitigation, education, referral services, and general budget/financial counseling in order to respond to COVID -19. In addition, the City plans to allocate funding for food distribution to multiple homeless, non -profit service providers and general public in order to respond to the COVID-19 pandemic.
Target Date December 31, 2021
Estimate the number and type of families
that will benefit from the proposed
activities
2,400 Households
84 Businesses
Location Description Citywide
Planned Activities
Activities may include:
• Grow Salinas Fund - Recapitalize Grow Salinas fund to increase access to Capital to small business through loans or grants as a response to COVID - 19 by creating and retaining jobs. (CDBG-CV: $ 332,069216,344) (HUD Matrix Code 18A - LMC/LMA)
• Economic Development Technical Assistance - A portion of a business navigator to assist businesses with more than 5 employees in business recovery. (CDBG-CV: $50,000) (HUD Matrix Code 18B - LMC/LMA) • Economic Development Technical Assistance - Micro Business Enterprise - For a business navigator to assist microbusinesses safely to re -open, have access to economic recovery resources, and navigate local government processes. (CDBG-CV: $350,000) (HUD Matrix Code 18C - LMA/LMC) • ECHO Fair Housing and Tenant/Landlord Services - Provide fair housing counseling and tenant/landlord mitigation. Respond to evictions due to COVID-19 and assist with the additional demand for eviction mitigation. (CDBG-CV: $84,000184,000) (HUD Matrix Code 05J - LMC)
• City Housing Information and Referral Services - City to dedicate a Housing Analyst position to provide housing information, education, referral services, Consolidated Plan Salinas 8
OMB Control No: 2506-0117 (exp. 07/31/2015)
and general budget/financial counseling. (CDBG -CV: $ 320,000432,790) (HUD Matrix Code 05X - LMC)
• City Fair Housing - City to dedicate a portion of a Housing Analyst position time to provide fair housing and education services. (CDBG -CV:
$40,00080,000) (HUD Matrix Code 05J - LMC)
• Food Bank for Monterey County - Food distribution to multiple homeless, non- profit service providers, and general public. To respond to higher community- wide food demands by increasing food distribution capacity to multiple homeless, non -profit service providers, and general public. (CDB G-CV:
$310,957) HUD Matrix Code 05W - LMC)
• Downtown Streets Team - DST will provide services into self -sufficiency to Team Members who comprised of unhoused individuals. The Team will be receiving social services to removed barriers for housing along with employment services to graduate them into regular employment as a respond to COVID -19. The Outreach Specialist will continue working with existing community partners towards Team Members goals related to shelter, housing, heath, mental health, substance ab use, employment, income, and self-sufficiency. While conducting 400 outreach interactions with unhoused individuals. (CDBG-CV: $238,000)
• Food Distribution - Food distribution to homeless encampments. To respond to shelter -in-place order due to COVID -19 by increasing food distribution capacity to homeless encampments. To minimize and prevent homeless encampment displacement. (CDBG-CV: $76,67958,035.16)
• Amount to be determined: As the COVID19 situation changes, additional needs will surface, and the City will reserve funding to respond to those changing needs. (CDBG-CV: $78,421)
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-560, Version: 1
Housing Successor Agency Loan Agreement with Sun Rose Housing, LLC Approve a Resolution authorizing the City Manager or designee to execute, for and on behalf of the City, a Housing Successor Agency (HSA) Loan Agreement, and any other applicable documents with Sun Rose Housing, LLC for the construction of a 100% affordable housing development at 439 Soledad Street (Project); and authorizing an appropriation of $500,000 of HSA funds to fund the Project.
City of Salinas Printed on 12/1/2022Page 1 of 1
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: DECEMBER 6, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
THROUGH: LISA BRINTON, ASSISTANT DIRECTOR
ROD POWELL, PLANNING MANAGER
BY: CRISTINA GONZALEZ, COMMUNITY DEVELOPMENT ANALYST TITLE: HOUSING SUCCESSOR AGENCY LOAN AGREEMENT WITH SUN
ROSE HOUSING, LLC
RECOMMENDED MOTION:
A motion to approve a Resolution:
1. authorizing the City Manager or designee to execute, for and on behalf of the City, a Housing Successor Agency (HSA) Loan Agreement, and any other applicable documents with Sun Rose Housing, LLC for the construction of a 100% affordable housing development at 439 Soledad Street (Project); and
2. authorizing an appropriation of $500,000 of HSA funds to fund the Project.
EXECUTIVE SUMMARY:
The City and Interim, Inc. (Interim) , a private nonprofit organization, are collaborating on a new eleven (11) unit supportive/transitional housing facility known as Sun Rose Apartments at 439 Soledad Street. The Project will replace an existing 8 -bedroom transitional housing facility with a new facility including an 8-bedroom transitional unit, nine (9) units of permanent supportive housing for persons with psychiatric disabilities who are homeless, chronically homeless, or at -risk of homelessness, and one manager’s unit (Project). On February 22, 2022, in response to the City’s annual Notice of Funding Availability (NOFA), Interim submitted an application requesting $500,000 in HSA funds to complete construction of the Project due a funding deficit related to inflation costs.
Staff reviewed Interim’s funding application and deemed it to be compliant with HSA eligible uses of housing development for low- and moderate-income residents, homeless prevention, and rapid re- housing. Staff recommends the execution of a zero percent interest loan in the amount of $500,000 with a 55-year affordability period.
BACKGROUND:
The Salinas Redevelopment Agency (the Former Redevelopment Agency), now known as HSA and City have entered into two previous funding agreements with Interim for renovation and development of Soledad House, located at 439 Soledad Street, to provide transitional and supportive services for very low - and low -income persons with psychiatric disabilities who are homeless, chronically
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homeless, or at-risk of homelessness. The first agreement was a First Amended and Restated Owner Participation and Grant Agreement (OPA), executed on May 2, 2000, between the HSA and Interim in amount of $80,000. Subsequently, on June 20, 2000, the City and Interim entered into a HOME Investment Partnerships Program (HOME) Funding Agreement (FA) to allocate FY 1999 -2000 HOME funds to support the further renovation of Soledad House.
On December 3, 2019, Interim formed a limited liability company, Sun Rose Housing, LLC (Owner) to acquire and demolish the Soledad House to make way for the Project. On February 11, 2021, City and Owner entered into the Community Development Block Grant (CDBG) Agreement. City Council approved Resolution No. 21912 authorizing the execution of Funding Agreements for projects identified in the Fiscal Year (FY) 2020 -21 Annual Action Plan (AAP ) and allocated $500,000 of CDBG funds for the construction of the Project. The Property’s existing HOME Funding Agreement, and the Former Redevelopment Agency OPA documents were transferred and assigned to the new Owner. The Assignment, Assumption and Second Modification Agreement of HOME Documents and the Assignment, Assumption and Second Modification Agreement of Owner Participation and Grant Agreement of HSA documents were executed on May 11, 2021.
On February 22, 2022, Interim applied to the City’s NOFA for FY 2021 -22 and requested an additional $500,000 in HSA funds to complete construction of the Project due to a budget deficit resulting from increased construction costs.
DISCUSSION:
Project Description
The Project is an 11-unit transitional/permanent supportive housing facility located at 439 Soledad Street in the City of Salinas. Project components include the following. One eight-bedroom unit (3,400 sq. ft.) providing transitional housing for eight residents who are homeless or at-risk of homelessness and who have psychiatric disabilities. Seven (7) one -bedroom apartment units (averaging 380 sq. ft.) each providing permanent supportive housing to one individual.
Two studio apartments (averaging 281 sq. ft.) providing permanent supportive housing to one individual.
One studio apartment (averaging 281 sq. ft.) to house a resident manager Two offices for supportive services, a community room with a computer area, a separate food preparation area, and a laundry room with two washers and two dryers.
Supportive Services
Supportive services will be offered to residences through a partnership under the MCHOME program, which is a collaborative of Interim and Monterey County Department of Health – Behavioral Health Bureau (MCBHB). The MCHOME program provides outreach, housing, and integrated services to homeless adults with psychiatric disabilities. Supportive services include mental health evaluation and medication, substance use treatment referrals, healthcare/dental service referrals , food, and personal care items. Program participants also receive assistance obtaining income through jobs or public benefits such as SSI, GA, food stamps, or Section 8 rent vouchers. The program model follows a rapid rehousing approach to move people off the street and into permanent supportive housing.
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NOFA Application and Loan Terms
While the Project was competitively bid, the cost of construction has increased by $1.2 million over the original professionally estimated budget due to rising material and labor cost resulting from the Pandemic and inflation. Interim has used value engineering to reduce the cost overrun, but the Project still has a budget deficit of $800,000. Interim decided to proceed with construction and to continue fundraising to avoid delaying the Project and potentially incurring additional inflation related construction costs for labor and materials.
During the City’s FY 2021-22 NOFA, Interim submitted an application requesting $500,000 in HSA funds to close the $800,000 budget gap to complete the Project. Staff have reviewed Interim’s funding application and have deemed it to be compliant with HSA eligible uses of housing development for low - and moderate -income residents, homeless prevention and rapid re -housing.
Projects like this offer clients culturally sensitive services that encourage s self-direction, hope, healing, and recovery. Client success translates into fewer homeless people living on the streets.
Loan Terms. Staff recommend the following loan terms.
Amount: $500,000
Interest: Zero percent (0%)
Term/Affordability Period: Fifty-five (55) years
Deed restrictions would be recorded against the property limiting occupancy to very low- and low- income individuals for the term of the Affordability Period.
CEQA CONSIDERATION:
Statutory Exemptions. The City of Salinas has determined that the Project is exempt from the California Environmental Quality Act (CEQA) Guidelines Section 15268(a) because the Project is a Ministerial Project.
STRATEGIC PLAN INITIATIVE:
Approval of the HSA Loan Agreement with Sun Rose Housing, LLC supports the City of Salinas 2022-2025 Strategic Plan Goals and Strategies of Housing/Affordable Housing and Effective and Culturally Responsive Government. This Project will produce housing for very low- and low-income residents who are homeless or at-risk of homelessness and who have psychiatric disabilities.
DEPARTMENTAL COORDINATION:
The agenda item and HSA Loan Agreement were prepared by CDD’s Housing and Community Development Division (Housing Division) in consultation with the City Attorney and in coordination with the Finance Department. Should the Council approve the HSA Loan Agreement, the Housing Division will be responsible for loan administration.
FISCAL AND SUSTAINABILITY IMPACT:
There is no impact to the General Fund. The source of funds for the proposed HSA Loan Agreement is the HSA – Affordable Housing fund which has sufficient funds available for the proposed use.
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ATTACHMENTS
1. Resolution
2. HSA Loan Agreement
RESOLUTION NO.__________ (N.C.S.)
A RESOLUTION AUTHORIZING THE EXECUTION OF A HOUSING SUCCESSOR
AGENCY LOAN AGREEMENT BETWEEN
THE CITY OF SALINAS AND SUN ROSE HOUSING, LLC.
WHEREAS, on May 2, 2000 , the Former Redevelopment Agency, now known as the Housing Successor Agency (H SA), and Interim entered into the First Amended and Restated Owner Participation and Grant Agreement (OPA) in amount of $80,000 for the renovation of the Soledad House to provide transitional and supportive services for very low - and low -income persons with psychiatric disabilities who are homeless, chronically homeless, or at -risk of homelessness; and
WHEREAS, on June 20, 2000, the City of Salinas (City) and Interim entered into a HOME Investment Partnerships Program (HOME) Funding Agreement to allocate $100,000 in FY 1999- 2000 HOME funds to support the further development of Soledad House; and
WHEREAS, in December 2019, Interim Inc. (Interim) formed the Sun Rose Housing, LLC, a California limited liability company ( Owner), and acquired the property at 439 Soledad Street; and
WHEREAS, on February 11, 2021, City and Owner entered into the Community Development Block Grant (CDBG) Agreement and allocated $500,000 of CDBG funds to replace an existing 8 -bedroom transitional hous ing facility with a new facility including an 8-bedroom transitional unit, nine (9) units of permanent supportive housing construction of the transitional unit on the project; and
WHEREAS, on May 11, 2021 , the City enter ed into an Assignment, Assumption and Second Modification Agreement of HOME Documents to reflect the modification to HOME Documents and transfer of covenant documents from the former p roperty to the Owner and the assignment and assumption of the HOME Documents from Interim to Owner; and
WHEREAS, on May 11, 2021, the City also entered into the Assignment, Assumption and Second Modification Agreement of Owner Participation and Grant Agreement to reflect the modification to the HSA documents and consent to the transfer of covenant documents from the former property to the Owner and the assignment and assumption of the HSA Documents from Interim to the Owner; and
WHEREAS, on February 22, 2022, and under the City’s annual Notice of Funding Availability, Interim submitted an application requesting $500,000 in HSA funds to complete construction of the Project due to a funding deficit related to inflation costs ; and to replace an existing 8-bedroom transitional housing unit with a new 11-unit proposal (the Project) composed of one 8-bedroom transitional unit, nine (9) units of permanent supportive for persons with psychiatric disabilities who are homeless, chronically homeless or at -risk of homelessness, and
one manager’s unit; and
WHEREAS, HSA funds can be used for housing development for low - and moderate- income residents as well as homeless prevention and rapid re -housing and this Project is eligible to received HSA funds as it serves very low - and low - income individuals with psychiatric disabilities who are homeless, chronically homeless or at-risk of homelessness; and
WHEREAS, t he City of Salinas has determined that the Project is exempt from the California Environmental Quality Act (CEQA) Guidelines Section 15268(a) because the Project is a Ministerial Project.
NOW, THEREFORE, BE IT RESOLVED , that the Salinas City Council hereby authorizes the City Manager or designee to execute, for and on behalf of the City, a Housing Successor Agency (HSA) Loan Agreement, and any other applicable documents with Sun Rose Housing, LLC for the construction of the Project at 439 Soledad Street (Project); and
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Salinas City Council authorizes an appropriation of $500,000 of HSA – Affordable Housing funds to fund the Project.
PASSED AND APPROVED this 6th day of December 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT: APPROVED:
_________________________________
Kimbley Craig, Mayor
ATTEST:
__________________________________
Patricia M. Barajas, City Clerk
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LOAN AGREEMENT
(Housing Successor LMIHAF Funds)
by and between
THE CITY OF SALINAS
and
SUN ROSE HOUSING, LLC
SUN ROSE APARTMENTS
Loan No.: _________________
December __, 2022
ii
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ARTICLE 1. DEFINITIONS AND EXHIBITS .................................................................... 2 Section 1.1 Definitions. ...................................................................................... 2 Section 1.2 Exhibits. .......................................................................................... 4 ARTICLE 2. PERMANENT LOCAL HOUSING ALLOCATION LOAN PROVISIONS ...... 4 Section 2.1 Loan. ............................................................................................... 4 Section 2.2 Interest. ........................................................................................... 4 Section 2.3 Use of Loan Funds. ......................................................................... 4 Section 2.4 Security. .......................................................................................... 5 Section 2.5 Disbursement of Loan Proceeds. .................................................... 5 Section 2.6 Repayment Schedule. ..................................................................... 6 Section 2.7 Reports and Accounting of Residual Receipts. ............................... 8 Section 2.8 Prepayment. .................................................................................... 9 Section 2.9 Subordination. ................................................................................. 9 Section 2.10 Nonrecourse.................................................................................. 10 ARTICLE 3. LOAN REQUIREMENTS ........................................................................... 11 Section 3.1 Applicability. .................................................................................. 11 Section 3.2 Information. ................................................................................... 11 Section 3.3 Records. ........................................................................................ 11 Section 3.4 Audits. ........................................................................................... 11 Section 3.5 Hazardous Materials. .................................................................... 11 Section 3.6 Maintenance and Damage. ........................................................... 14 Section 3.7 Fees and Taxes. ........................................................................... 14 Section 3.8 Notice of Litigation. ........................................................................ 15 Section 3.9 Non-Discrimination. ....................................................................... 15 Section 3.10 Relocation. .................................................................................... 15 Section 3.11 Insurance Requirements. .............................................................. 16 Section 3.12 Payment of Other Indebtedness; Notice of Defaults. .................... 17 Section 3.13 City Approval of Financing Amendments and Refinancing. .......... 17 Section 3.14 Monitoring Fee. ............................................................................. 17 ARTICLE 4. ASSIGNMENT AND TRANSFERS ........................................................... 18 Section 4.1 Definitions. .................................................................................... 18 Section 4.2 Purpose of Restrictions on Transfer. ............................................. 18 Section 4.3 Prohibited Transfers. ..................................................................... 19 Section 4.4 Permitted Transfers Without Prior City Approval. .......................... 19 Section 4.5 Permitted Transfers With Prior Approval. ...................................... 19 ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF BORROWER ................. 20 Section 5.1 Representations and Warranties. .................................................. 20 iii
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ARTICLE 6. DEFAULT AND REMEDIES ...................................................................... 22 Section 6.1 Events of Default. .......................................................................... 22 Section 6.2 Remedies. ..................................................................................... 23 Section 6.3 Right of Contest. ........................................................................... 24 Section 6.4 Remedies Cumulative. .................................................................. 24 ARTICLE 7. GENERAL PROVISIONS .......................................................................... 24 Section 7.1 Relationship of Parties. ................................................................. 24 Section 7.2 No Claims. .................................................................................... 25 Section 7.3 Amendments. ................................................................................ 25 Section 7.4 Indemnification. ............................................................................. 25 Section 7.5 Non-Liability of City Officials, Employees and Agents. .................. 25 Section 7.6 No Third-Party Beneficiaries. ........................................................ 25 Section 7.7 Discretion Retained by City. .......................................................... 26 Section 7.8 Notices, Demands and Communications. ..................................... 26 Section 7.9 Applicable Law and Venue. ........................................................... 26 Section 7.10 Parties Bound................................................................................ 26 Section 7.11 Attorneys' Fees. ............................................................................ 27 Section 7.12 Severability. .................................................................................. 27 Section 7.13 Force Majeure. .............................................................................. 27 Section 7.14 City Approval. ................................................................................ 27 Section 7.15 Waivers. ........................................................................................ 28 Section 7.16 Title of Parts and Sections. ........................................................... 28 Section 7.17 Entire Understanding of the Parties. ............................................. 28 Section 7.18 Multiple Originals; Counterpart. ..................................................... 28
Exhibit A: Legal Description of the Property
Exhibit B: Form of Deed of Trust
Exhibit C: Form of Promissory Note
Exhibit D: Form of Regulatory Agreement
Exhibit E: Form of Notice of Affordability Restrictions
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LOAN AGREEMENT
(HOUSING SUCCESSOR LMIHAF Funds)
SUN ROSE APARTMENTS
This Loan Agreement (this "Agreement") is entered into as of December __, 2022, by and between the City of Salinas, a California charter city and municipal corporation (the "City"), in its capacity as the housing successor to the dissolved Salinas Redevelopment Agency (the “Dissolved RDA”), and Sun Rose Housing, LLC, a California limited liability company (the "Borrower").
RECITALS
A. These Recitals refer to and utilize certain capitalized terms that are defined in Section 1.1 of this Agreement. The Parties intend to refer to those definitions in connection with the use of capitalized terms in these Recitals.
B. In accordance with California Health & Safety Code Section 34172, the Dissolved RDA was dissolved as of February 1, 2012. The Salinas City Council approved Resolution No. 20142 on January 10, 2012 electing to become the housing successor to the Dissolved RDA and to retain the housing assets and functions performed by the Dissolved RDA in accordance with Health and Safety Code Section 34176.
C. The City holds funds generated by housing assets of the Dissolved RDA, acting as the housing successor to the Dissolved RDA, and which are required to be deposited into the Low and Moderate Income Housing Asset Fund and used in accordance with Health and Safety Code Section 34176.1 (the "Housing Asset Fund").
The City is authorized to enter into this Agreement pursuant to California Health & Safety Code Section 34176(a)(1).
D. The Borrower owns certain real property located at 439 Soledad Street, Salinas, California (the "Property") on which the Borrower is replacing the existing 8- bedroom transitional housing dwelling with a new 8-bedroom transitional housing unit, and an additional 9 units of affordable housing all for persons with psychiatric disabilities who are homeless, chronically homeless, or at-risk of homelessness, and 1 manager's unit (the "Development").
E. The Borrower has requested a loan of Five Hundred Thousand Dollars ($500,000) from the Housing Asset Fund to cover cost overruns associated with the construction of the Development.
NOW, THEREFORE, the City and the Borrower agree as follows:
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ARTICLE 1.
DEFINITIONS AND EXHIBITS
Section 1.1 Definitions.
The following capitalized terms have the meanings set forth in this Section 1.1 wherever used in this Agreement, unless otherwise provided:
(a) "Agreement" means this Loan Agreement.
(b) "Area Median Income" means the most recent applicable County median family income published by HCD.
(c) "Borrower" means Sun Rose Housing, LLC, a California limited liability company, and its permitted successors and assigns hereunder. (d) "City" means the City of Salinas, a California charter city and municipal corporation.
(e) "Control" means (i) direct or indirect management or control of the managing member or members in the case of a limited liability company; (ii) direct or indirect management or control of the managing general partner or general partners in the case of a partnership and (iii) in the case of a corporation (a) boards of directors that overlap by fifty percent (50%) or more of their directors, or (b) direct or indirect control of a majority of the directors.
(f) "County" means the County of Monterey.
(g) ''Deed of Trust" means the Deed of Trust that will encumber the Development to secure repayment of the Loan. The form of the Deed of Trust is attached as Exhibit B.
(h) "Effective Date" means the date set forth in the first paragraph of this Agreement.
(i) "Event of Default" shall have the meaning set forth in Section 6.1 below.
(j) ''Hazardous Materials" shall have the meaning set forth in Section
3.5 below.
(k) "Hazardous Materials Claim" shall have the meaning set forth in Section 3.5 (b) below.
(l) "Hazardous Materials Law" shall have the meaning set forth in Section 3.5(b)
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(m) "HCD" means the California Department of Housing and Community Development.
(n) "HCD Loan" means a loan in the approximate total amount of $2,958,054 to Borrower from HCD for permanent financing for the Development. (o) "Loan" means the loan from the City to the Borrower in the total principal amount of Five Hundred Thousand Dollars ($500,000). (p) "Loan Documents" shall mean this Agreement, the Promissory Note, the Deed of Trust, the Notice of Affordability Restrictions and the Regulatory Agreement.
(q) "Monitoring Fee" means the fee described in Section 3.14. (r) "'Note" means the Promissory Note that will evidence the Borrower's obligation to repay the Loan. The form of the Note is attached is Exhibit C. (s) "Notice of Affordability Restrictions" means the Notice of Affordability Restrictions on Transfer of Property between the City and the Borrower to be recorded against the Property pursuant to Health and Safety Code Sections 33334.3 and/or 33413(c)(5), or successor provision. The form of the Notice of Affordability Restrictions is attached as Exhibit E.
(t) "Parties" means the City and the Borrower.
(u) "Party" means either the City and the Borrower.
(v) "Development" has the meaning set forth in Recital D. (w) "Property" means the real property located 439 Soledad Street, in the City of Salinas, County of Monterey, California, more particularly described in the attached Exhibit A.
(x) "Regulatory Agreement" means the Regulatory Agreement and Declaration of Restrictive Covenants between the City and the Borrower to be recorded on the Property pursuant to this Agreement. The Form of the Regulatory Agreement is attached as Exhibit D.
(y) "Residual Receipts" has the meaning set forth in Section
2.6(d)(iv).
(z) "Senior Lender" has the meaning set forth in Section 2.9(b). (aa) "Senior Loan" has the meaning set forth in Section 2.9. 4 1378\21\3401633.1
(bb) "Term" means the term of the Loan, commencing on the Effective Date and continuing for fifty-five (55) years from the issuance of the Certificate of Occupancy for the Development unless earlier terminated pursuant to this Agreement. (cc) "Transfer" shall have the meaning set forth in Section 4.1 below. (dd) "Unit" means one of the residential housing units constructed on the Property.
Section 1.2 Exhibits.
The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:
Exhibit A Legal Description of the Property
Exhibit B Form of Deed of Trust
Exhibit C Form of Note
Exhibit D Form of Regulatory Agreement
Exhibit E Form of Notice of Affordability Restrictions
ARTICLE 2.
PERMANENT LOCAL HOUSING ALLOCATION LOAN PROVISIONS
Section 2.1 Loan.
The City shall loan to the Borrower the principal amount of Five Hundred Thousand Dollars ($500,000). The obligation to repay the Loan shall be evidenced by the Note in the form attached as Exhibit C. The amount of the Loan may not be increased unless the City Council of the City approves such increase in its sole and absolute discretion.
Section 2.2 Interest.
(a) Subject to Section 2.2(b), the outstanding principal balance of the Loan shall bear no interest.
(b) In an Event of Default, interest on the Loan shall begin to accrue, as of the date of the Event of Default and continuing until such time as the Loan funds are repaid in full or the Event of Default is cured, at the default rate of the lesser of ten percent (10%), compounded annually, or the highest rate permitted by law.
Section 2.3 Use of Loan Funds.
(a) The Borrower shall use the Loan funds for reimbursement of construction costs of the Development.
(b) The Borrower shall not use the Loan funds for any other purpose without the prior written consent of the City.
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Section 2.4 Security.
The Borrower shall secure its obligation to repay the Loan, as evidenced by the Note, by executing the Deed of Trust, and recording it as a lien against the Property, subordinate only to existing deeds of trust recorded on the Property as of the Effective Date and a deed of trust securing the HCD Loan, liens for current real property taxes and assessments not yet due and payable and liens approved in writing by the City.
Section 2.5 Disbursement of Loan Proceeds.
The maximum amount of funds to be disbursed pursuant to this Section 2.5 shall not exceed the principal amount of the Loan. The Loan shall be disbursed in one lump sum in accordance with the following provisions of this Section 2.5. The City shall not be obligated to make any disbursements of the Loan unless the following conditions precedent are satisfied:
(a) There exists no Event of Default nor any act, failure, omission or condition that would constitute an Event of Default under this Agreement. (b) The Borrower has signed, notarized where applicable, and delivered to the City this Agreement, the Promissory Note, the Regulatory Agreement, the Notice of Affordability Restrictions and the Deed of Trust. (c) The Notice of Affordability Restrictions, the Regulatory Agreement and the Deed of Trust have been recorded against the Property in the official records of the County.
(d) Receipt of a written request from the Borrower setting forth the use of funds, the application of other sources of funds and the amount of Loan funds requested, and attached copies of all bills or invoices applicable to the costs incurred. (e) The City has received evidence reasonably satisfactory to the City that the Borrower exists in good standing at the time of the proposed disbursement. (f) The Borrower has delivered to the City a copy of the Borrower's organizational documents and a resolution authorizing the Borrower's execution of this Agreement, the Promissory Note, the Deed of Trust, the Notice of Affordability Restrictions and the Regulatory Agreement, and the transactions contemplated by the Loan Documents.
(g) The Borrower has furnished the City with evidence of the insurance coverage meeting the requirements of Section 3.11 below. (h) A title insurer reasonably acceptable to the City is unconditionally and irrevocably committed to issuing an ALTA Lender's Insurance Policy insuring the priority of the Deed of Trust in the amount of the Loan, subject only to such exceptions and exclusions as may be reasonably acceptable to the City, and containing such endorsements as the City may reasonably require.
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(i) The City shall exercise best efforts to disburse funds within thirty (30) days of receipt of the draw request and satisfaction of applicable disbursement preconditions.
Notwithstanding any other provisions of this Agreement, the City shall have no further obligation to disburse any portion of the Loan to the Borrower following: (1) termination of this Agreement; or (2) notification by the City to the Borrower of an Event of Default under the terms of this Agreement until such Event of Default is cured.
Section 2.6 Repayment Schedule.
(a) Annual Payments. Each year the Borrower shall make payments of principal and interest to the City in the amount equal to the City's Percentage of Fifty Percent (50%) of the Residual Receipts from the Development. The remaining fifty percent (50%) of Residual Receipts shall be paid to Borrower. Such annual payments shall be due and payable in arrears no later than May 1st of each year with respect to the previous calendar year, commencing on the earlier of (i) the first May 1st after the City's issuance of a certificate of occupancy for the Development, or (ii) May 1, 2023, (unless such date is extended in writing by the City Manager), and shall be accompanied by the Borrower's report of Residual Receipts for prior fiscal year (including an independent auditor's report regarding the auditor's review of Annual Operating Expenses). The Borrower shall provide the City with any documentation reasonably requested by the City to substantiate the Borrower's determination of Residual Receipts. Repayments shall be credited first to interest (if any), then to principal. Interest that has accrued but for which Residual Receipts are not available in a given year shall be deferred to the following year.
(b) Payment in Full. Regardless of the availability of Residual Receipts, all principal and interest on the Loan shall be due upon the earliest of:
(i) a Transfer of the Development other than a Transfer permitted or approved by the City as provided in Article 4; (ii) the occurrence of an Event of Default for which the City exercises its right to cause the Loan indebtedness to become immediately due and payable, or for which the Loan indebtedness is automatically specified to become immediately due and payable pursuant to applicable subsections of Section 6.1 below; or
(iii) the fifty-fifth anniversary date of the issuance of the certificate of occupancy for the Development.
(c) Special Definitions. The following special definitions shall apply for purposes of this Section 2.6:
(i) "Annual Operating Expenses" with respect to a particular calendar year shall mean the following: costs reasonably and actually incurred for operation and maintenance of the Development to the extent that they are consistent 7 1378\21\3401633.1
with an annual independent audit performed by a certified public accountant using generally accepted accounting principles; property taxes and assessments imposed on the Development; debt service currently due on a non-optional basis (excluding debt service due from residual receipts or surplus cash of the Development) on loans associated with development of the Development and approved by the City; property management fees (including payment of deferred property management fees, if any) and reimbursements, not to exceed fees and reimbursement which are standard in the industry and pursuant to management contracts approved by the City; premiums for property damage and liability insurance; utility services not paid for directly by tenants, including water, sewer, and trash collection; maintenance and repair of the Development; any annual license or certificate of occupancy fees required for operation of the Development; security devices; advertising and marketing; cash deposited into a replacements reserve account for capital replacements of the Development in an amount which is standard in the industry; cash deposited into an operating reserve in an amount which is standard in the industry; extraordinary operating costs specifically approved by the City; any City monitoring fees; payment of deductibles in connection with casualty insurance claims not normally paid from reserves; the amount of uninsured losses actually replaced, repaired or restored, and not normally paid from reserves; and other ordinary and reasonable operating expenses approved by the City and not listed above. Annual Operating Expenses shall not include the following:
depreciations, amortization, depletion or other non-cash expenses, or any amount expended from a reserve account.
(ii) "City's Percentage" means the percentage calculated by dividing (1) the original principal amount of the City Loan by (2) the sum of the original principal amount of the City Loan plus the original principal amounts of loans made by other lenders to Borrower payable from Residual Receipts. For example, if the City and HCD are the only lenders whose loans are to be repaid from Residual Receipts, and the HCD Loan is four (4) times greater than the City's Loan, then HCD shall be entitled to forty percent (40%) of the Residual Receipts and the City shall be entitled to ten percent (10%) of the Residual Receipts.
(iii) "Gross Revenue" with respect to a particular calendar year shall mean all revenue, income, receipts, and other consideration actually received from the operation and leasing of the Development. Gross Revenue shall include, but not be limited to: all rents, fees and charges paid by tenants, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry machines; the proceeds of business interruption or similar insurance; the proceeds of casualty insurance; and condemnation awards for a taking of part of all of the Development for a temporary period. Gross Revenue shall not include tenants' security deposits, loan proceeds, or similar advances.
(iv) "Residual Receipts" with respect to a particular calendar year shall mean the amount by which Gross Revenue exceeds Annual Operating Expenses.
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Section 2.7 Reports and Accounting of Residual Receipts. (a) Audited Financial Statement. In connection with the annual payments as set forth in Section 2.6(a), within one hundred twenty (120) days of the end of the Borrower's fiscal year, the Borrower shall furnish to the City an audited statement duly certified by an independent firm of certified public accountants approved by the City, setting forth in reasonable detail the computation and amount of Residual Receipts during the preceding calendar year.
(b) Books and Records. The Borrower shall keep and maintain on the Property, or at its principal place of business, or elsewhere with the City's written consent, full, complete and appropriate books, records and accounts relating to the Development, including all such books, records and accounts necessary or prudent to evidence and substantiate in full detail the Borrower's calculation of Residual Receipts.
Books, records and accounts relating to the Borrower's compliance with the terms, provisions, covenants and conditions of this Agreement shall be kept and maintained in accordance with generally accepted accounting principles consistently applied, and shall be consistent with requirements of this Agreement which provide for the calculation of Residual Receipts on a cash basis. All such books, records, and accounts shall be open to and available for inspection by the City, its auditors or other City authorized representatives at reasonable intervals during normal business hours.
Copies of all tax returns and other reports that the Borrower may be required to furnish any governmental agency shall at all reasonable times be open for inspection by the City at the place that the books, records and accounts of the Borrower are kept upon prior reasonable notice to the Borrower. The Borrower shall preserve records on which any statement of Residual Receipts is based for a period of not less than five (5) years after such statement is rendered, and for any period during which there is an audit undertaken pursuant to subsection (c) below then pending. (c) Audits. The receipt by the City of any statement pursuant to subsection (a) above or any payment by the Borrower or acceptance by the City of any loan repayment for any period shall not bind the City as to the correctness of such statement or such payment. Within three (3) years after the receipt of any such statement, the City or any designated agent or employee of the City, at any time, shall be entitled to audit the Residual Receipts and all books, records, and accounts pertaining thereto. Such audit shall be conducted during normal business hours at the principal place of business of the Borrower and other places where records are kept.
Immediately after the completion of an audit, the City shall deliver a copy of the results of such audit to the Borrower. If it shall be determined as a result of such audit that there has been a deficiency in a loan repayment to the City, then such deficiency shall become immediately due and payable with interest at the default rate set forth in this Agreement, determined as of and accruing from the date that said payment should have been made. In addition, if the Borrower's auditor's statement for any Development fiscal year shall be found to have understated Residual Receipts by more than five percent (5%), and the City is entitled to any additional Loan repayment as a result of said understatement, then the Borrower shall pay, in addition to the interest charges 9 1378\21\3401633.1
referenced hereinabove, all of the City's reasonable costs and expenses connected with any audit or review of the Borrower's accounts and records.
Section 2.8 Prepayment.
The Borrower may pay the principal and any interest due on the Loan in advance of the time for payment thereof as provided in this Agreement, without penalty; provided, however, that the Borrower acknowledges that the provisions of this Agreement will be applicable to the Development or the full Term, and the provisions of the Regulatory Agreement will be applicable to the Development or the full term of the Regulatory Agreement, even though the Borrower may have prepaid the Loan.
Section 2.9 Subordination.
The Deed of Trust and/or Regulatory Agreement may be subordinated to the deeds of trust and regulatory agreements recorded on the Property as of the Effective Date and the deed of trust securing the HCD Loan and regulatory agreement related to the HCD Loan (in each case, a "Senior Loan"), but only on condition that all of the following conditions are satisfied or on such other conditions approved in writing by the City:
(a) All of the proceeds of the proposed Senior Loan, less any transaction costs, must be used to provide construction and/or permanent financing for the Development.
(b) The proposed lender (each, a "Senior Lender") must be a state or federally chartered financial institution, a nonprofit corporation or a public entity that is not affiliated with Borrower or any of Borrower's affiliates, other than as a depositor or a lender.
(c) Borrower must demonstrate to the City's reasonable satisfaction that subordination of the Deed of Trust and/or Regulatory Agreement is necessary to secure adequate acquisition, construction and/or permanent financing to ensure the viability of the Development, including the operation of the Development as affordable housing, as required by the Loan Documents. To satisfy this requirement, Borrower must provide to the City, in addition to any other information reasonably required by the City, evidence demonstrating that the proposed amount of the Senior Loan is necessary to provide adequate construction and/or permanent financing to ensure the viability of the Development, and adequate financing for the Development would not be available without the proposed subordination.
(d) The subordination agreement(s) must be structured to minimize the risk that the Deed of Trust and/or Regulatory Agreement would be extinguished as a result of a foreclosure by the Senior Lender or other holder of the Senior Loan. To satisfy this requirement, the subordination agreement must provide the City with adequate rights to cure any defaults by Borrower, including: (i) providing the City or its successor with copies of any notices of default at the same time and in the same 10 1378\21\3401633.1
manner as provided to Borrower; and (ii) providing the City with a reasonable cure period to cure any default.
(e) The subordination(s) described in this Section may be effective only during the original term of the Senior Loan and any extension of its term approved in writing by the City.
(f) No subordination may limit the effect of the Deed of Trust and/or Regulatory Agreement before a foreclosure, nor require consent of the holder of the Senior Loan to exercise of any remedies by the City under the Loan Documents, except as otherwise agreed by City in a written subordination agreement. (g) Upon a determination by the City Manager that the conditions in this Section have been satisfied, the City Manager or his/her designee will be authorized to execute the approved subordination agreement without the necessity of any further action or approval.
(h) In the event there is a foreclosure of the Property, the Regulatory Agreement shall be revived according to its original terms if, during the original Regulatory Agreement term, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the Development or Property.
Section 2.10 Nonrecourse.
Except as provided below, the Borrower shall not have any direct or indirect personal liability for payment of the principal of or interest on, the Note or the performance of the covenants of the Borrower under the Deed of Trust (if any). The sole recourse of the City with respect to the principal of, or interest on, the Note and defaults by Borrower in the performance of its covenants under the Deed of Trust (if any) shall be to the Property pursuant to the Deed of Trust; provided, however, that nothing contained in the foregoing limitation of liability shall (a) limit or impair the enforcement against all such security for the Note of all the rights and remedies of the City thereunder, or (b) be deemed in any way to impair the right of the City to assert the unpaid principal amount of the Note as demand for money within the meaning and intendment of Section 431.70 of the California Code of Civil Procedure or any successor provision thereto. The foregoing limitation of liability is intended to apply only to the obligation for the repayment of the principal of, and payment of interest on the Note and the performance of the Borrower's obligations under the Deed of Trust, except as hereafter set forth; nothing contained herein is intended to relieve the Borrower of its obligation to indemnify the City under Sections 3.5(c) and 7.4 of this Agreement, or liability for (i) fraud or willful misrepresentation; (ii) the failure to pay taxes, assessments or other charges which may create liens on the Property that are payable or applicable prior to any foreclosure under the Deed of Trust (to the full extent of such taxes, assessments or other charges); (iii) the fair market value of any personal property or fixtures removed or disposed of by Borrower other than in accordance with the Deed of 11 1378\21\3401633.1
Trust; and (iv) the misappropriation of any proceeds under any insurance policies or awards resulting from condemnation or the exercise of the power of eminent domain or by reason of damage, loss or destruction to any portion of the Property.
ARTICLE 3.
LOAN REQUIREMENTS
Section 3.1 Applicability.
The Borrower shall comply with this Article 3 throughout the Term.
Section 3.2 Information.
The Borrower shall provide any information reasonably requested by the City in connection with the Property and the Development.
Section 3.3 Records.
(a) Borrower shall maintain complete, accurate, and current records pertaining to the Development for a period of ten (10) years after the creation of such records and shall permit any duly authorized representative of the City to inspect and copy records. Such records shall include all invoices, receipts, and other documents related to expenditures from the Loan funds. Records must be kept accurate and current.
(b) The City shall notify Borrower of any records it deems insufficient.
Borrower shall have twenty-one (21) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than twenty-one (21) days is reasonably necessary to correct the deficiency, then Borrower shall begin to correct the deficiency within twenty-one (21) days and correct the deficiency as soon as reasonably possible.
Section 3.4 Audits.
Borrower shall make available for examination at reasonable intervals and during normal business hours to City all books, accounts, reports, files, and other papers or property with respect to all matters covered by this Agreement, and shall permit City to audit, examine, and make excerpts or transcripts from such records. The City may make audits of any conditions relating to this Agreement.
Section 3.5 Hazardous Materials.
(a) Borrower shall keep and maintain the Development in compliance with, and shall not cause or permit the Development to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Development including, but not limited to, soil and ground water conditions. Borrower shall not use, generate, manufacture, 12 1378\21\3401633.1
store or dispose of on, under, or about the Development or transport to or from the Development any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily used in construction of projects like the Development or kept and used in and about residential property of this type. (b) Borrower shall immediately advise the City in writing if at any time it receives written notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Borrower or the Development pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials, ("Hazardous Materials Law"); (ii) all claims made or threatened by any third party against Borrower or the Development relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as "Hazardous Materials Claims"); and (iii) Borrower's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Development that could cause the Development or any part thereof to be subject to California Health and Safety Code, Sections 25220 et seq. or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Development under any Hazardous Materials Law.
(c) The City shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Borrower. Borrower shall indemnify and hold harmless the City and its councilmembers, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Development including without limitation: (i) all foreseeable consequential damages; (ii) the costs of any required or necessary repair, cleanup or detoxification of the Development and the preparation and implementation of any closure, remedial or other required plans; and (iii) all reasonable costs and expenses incurred by the City in connection with clauses (i) and (ii), including but not limited to reasonable attorneys' fees. This obligation to indemnify shall survive termination of this Agreement.
(d) Without the City's prior written consent, which shall not be unreasonably withheld, Borrower shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Development, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in the City's reasonable judgment, impair the value of the City's security hereunder; provided, however, that the City's prior consent shall not be 13 1378\21\3401633.1
necessary in the event that the presence of Hazardous Materials on, under, or about the Development either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain the City's consent before taking such action, provided that in such event Borrower shall notify the City as soon as practicable of any action so taken. The City agrees not to withhold its consent, where such consent is required hereunder, if either (i) a particular remedial action is ordered by a court of competent jurisdiction, (ii) Borrower will or may be subjected to civil or criminal sanctions or penalties if it fails to take a required action; (iii) Borrower establishes to the reasonable satisfaction of the City that there is no reasonable alternative to such remedial action which would result in less impairment of the City's security hereunder; or (iv) the action has been agreed to by the City.
(e) Borrower hereby acknowledges and agrees that (i) this Section is intended as the City's written request for information (and Borrower's response) concerning the environmental condition of the Development as required by California Code of Civil Procedure Section 726.5, and (ii) each representation and warranty in this Agreement (together with any indemnity obligation applicable to a breach of any such representation and warranty) with respect to the environmental condition of the Development is intended by the Parties to be an "environmental provision" for purposes of California Code of Civil Procedure Section 736.
(f) In the event that any portion of the Development is determined to be "environmentally impaired" (as that term is defined in California Code of Civil Procedure Section 726.5(e)(3)) or to be an "affected parcel" (as that term is defined in California Code of Civil Procedure Section 726.5(e)(1), then, without otherwise limiting or in any way affecting the City's or the trustee's rights and remedies under the Deed of Trust, the City may elect to exercise its rights under California Code of Civil Procedure Section 726.5(a) to (1) waive its lien on such environmentally impaired or affected portion of the Development and (2) exercise (a) the rights and remedies of an unsecured creditor, including reduction of its claim against the borrower to judgment, and (b) judgment, and (c) any other rights and remedies permitted by law. For purposes of determining the City's right to proceed as an unsecured creditor under California Code of Civil Procedure Section 726.5(a), the Borrower shall be deemed to have willfully permitted or acquiesced in a release or threatened release of hazardous materials, within the meaning of California Code of Civil Procedure Section 726.5(d)(1), if the release or threatened release of hazardous materials was knowingly or negligently caused or contributed to by any lessee, occupant, or user of any portion of the Development and the Borrower knew or should have known of the activity by such lessee, occupant, or user which caused or contributed to the release or threatened release. All costs and expenses, including (but not limited to) attorneys' fees, incurred by the City in connection with any action commenced under this paragraph, including any action required by California Code of Civil Procedure Section 726.5(b) to determine the degree to which the Development is environmentally impaired, plus interest thereon at the lesser of ten percent (10%) or the maximum rate permitted by law, until paid, shall be added to the indebtedness secured by the Deed of Trust and shall be due and 14 1378\21\3401633.1
payable to the City upon its demand made at any time following the conclusion of such action.
(g) Borrower shall indemnify, defend (with counsel reasonably chosen by the City), and hold harmless the City against all claims for damages, compensation, fines, penalties, attorneys' fees, relocation payments or other amounts that arise out of relocation obligations to residential tenants, homeowners, or businesses permanently or temporarily displaced by the Development. The provisions of this Section shall survive expiration of the Term or other termination of this Agreement, and shall remain in full force and effect.
Section 3.6 Maintenance and Damage.
(a) During the course of both construction and operation of the Development, Borrower shall maintain the Development in good repair and in a neat, clean and orderly condition. If there arises a condition in contravention of this requirement, and if Borrower has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Development.
(b) Subject to the availability of insurance proceeds and the requirements of Senior Lender(s), if any, and if economically feasible in the City's reasonable judgment, if any improvement now or in the future on the Property is damaged or destroyed, then Borrower shall, at its cost and expense, diligently undertake to repair or restore such improvement consistent with the plans and specifications approved by the City with such changes as have been approved by the City. Such work or repair shall be commenced no later than the later of one hundred twenty (120) days after the damage or loss occurs or thirty (30) days following receipt of the insurance proceeds, and shall be complete within one (1) year thereafter (or such longer period for the commencement and completion as may be extended by the City in its reasonable discretion). Any insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration, provided such insurance proceeds shall be sufficient for such purpose.
Section 3.7 Fees and Taxes.
Borrower shall be solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Property or the Development to the extent owned by Borrower and shall pay such charges prior to delinquency. However, Borrower shall not be required to pay and discharge any such charge so long as (a) the legality thereof is being contested diligently and in good faith and by appropriate proceedings, and (b) if requested by the City, Borrower deposits with the City any funds or other forms of assurance that the City in good faith from time to time determines appropriate to protect the City from the consequences of the contest being unsuccessful.
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Section 3.8 Notice of Litigation.
The Borrower shall promptly notify the City in writing of any litigation materially affecting the Borrower or the Property and the Development and of any claims or disputes that involve a material risk of such litigation.
Section 3.9 Non-Discrimination.
The Borrower covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 and Section 12955.2 of the Government Code, nor shall the Borrower or any person claiming under or through the Borrower establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Property and the Development. With respect to familial status, this Section 3.9 shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in this Section 3.9 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to this Section 3.9. The foregoing covenant shall run with the land and shall survive termination of this Agreement. This covenant shall not prevent the Borrower from applying all occupancy standards as set forth in the Regulatory Agreement.
Section 3.10 Relocation.
Borrower shall be responsible for complying and/or causing compliance with all applicable federal, state and local laws and regulations concerning the displacement and/or relocation of all eligible persons and/or businesses from the Property, including without limitation the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601, et seq.), and implementing regulations at 49 C.F.R. Part 24; Section 104(d) of the Housing and Community Development Act of 1974 and implementing regulations at 24 C.F.R. 42 et seq.; 24 C.F.R. 92.353; and 24 C.F.R. 570.606; and California Government Code Section 7260 et seq. and implementing regulations at 25 California Code of Regulations Sections 6000 et seq. Borrower is solely responsible for payment of any relocation benefits to any displaced persons and any other obligations associated with complying with such relocation laws. Records demonstrating compliance with applicable relocation requirements, must be retained for at least five (5) years after the date by which eligible persons and/or businesses displaced from the Property have received final payments.
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Section 3.11 Insurance Requirements.
The Borrower shall maintain the following insurance coverage throughout the Term of the Loan:
(a) Worker's Compensation insurance to the extent required by law, including Employer's Liability coverage, with limits not less than One Million Dollars ($1,000,000) each accident.
(b) Comprehensive General Liability insurance with limits not less than Two Million Dollars ($2,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for Contractual Liability, Personal Injury, Broad Form Property Damage, Products and Completed Operations. (c) Comprehensive Automobile Liability insurance with limits not less than Two Million Dollars ($2,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for owned, non-owned and hired vehicles, as applicable; provided, however, that if the Borrower does not own or lease vehicles for purposes of this Agreement, then no automobile insurance shall be required.
(d) Property insurance covering the Development, in form appropriate for the nature of such property, covering all risks of loss, but excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to the City, naming the City as a Loss Payee, as its interests may appear.
Flood insurance shall be obtained if required by applicable federal regulations. (e) The Borrower shall cause any general contractor or agent working on the Development under direct contract with the Borrower to maintain insurance of the types and in at least the minimum amounts described in subsections (a), (b), and (c) above, and shall require that such insurance shall meet all of the general requirements of subsections (f), (g), and (h) below. Subcontractors working on the Development under indirect contract with the Borrower shall be required to maintain the insurance described in subsections (a), (b), and (c) above. Liability and Comprehensive Automobile Liability insurance to be maintained by such contractors and agents pursuant to this subsection shall name as additional insured the City, its officers, agents, employees and members of the City Council.
(f) The required insurance shall be provided under an occurrence form, and Borrower shall maintain such coverage continuously so long as the Note is outstanding. Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in such annual aggregate limit, such annual aggregate limit shall be three times the occurrence limits specified above. (g) Comprehensive General Liability, Comprehensive Automobile Liability and Property insurance policies shall be endorsed to name as an additional insured the City, its officers, agents, employees and members of the City Council. 17 1378\21\3401633.1
(h) All policies and bonds shall be endorsed to provide thirty (30) days prior written notice of cancellation, reduction in coverage, or intent not to renew to the address established for notices to the City.
Section 3.12 Payment of Other Indebtedness; Notice of Defaults.
Borrower shall promptly pay the principal and interest when due on any other indebtedness related to the Development. Borrower shall promptly notify the City in writing of any defaults declared under any other financing for the Development by the lender of such financing.
Section 3.13 City Approval of Financing Amendments and Refinancing.
Borrower shall obtain prior written approval of the City of any material changes in terms of, material amendments to loan documents for, or refinancing of any loans secured by the Development, which approval may be withheld by the City upon a determination by the City that any such proposed change, amendment or refinancing will negatively affect the economic feasibility or the affordability of the Development, or the scheduled repayment of the Loan. Failure by the Borrower to obtain prior City approval of such changes, amendments or refinancing shall be a material default under this Agreement.
Section 3.14 Monitoring Fee.
Throughout the Term, the Borrower shall pay the City an annual fee of $1,250, which is 0.25% of the principal amount of the Loan (the "Monitoring Fee"), for monitoring the Borrower's compliance with the Loan Documents, including without limitation the Borrower's compliance with the operation of the Development as affordable housing in compliance with the Regulatory Agreement and with the requirements of the Regulatory Agreement. The Monitoring Fee shall be due each May 1st at the same time that annual payments, if any, are due pursuant to Section 2.6(a). If there are insufficient funds to pay the full Monitoring Fee in any year, the unpaid amount will be deferred and cumulate until funds are available to pay the then-current Monitoring Fee and then to pay, to the extent of available funding, the amounts of any deferred and unpaid Monitoring Fees. Interest shall not be payable on the any deferred Monitoring Fees. The Monitoring Fee is a separate charge to cover the City's costs of monitoring the Borrower's compliance under the Loan Documents and shall not be applied to interest (if any) or principal due under the Loan.
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ARTICLE 4.
ASSIGNMENT AND TRANSFERS
Section 4.1 Definitions.
As used in this Article 4, the term ''Transfer" means:
(a) Any total or partial sale, lease, assignment, or other conveyance, or any trust or power, or any transfer in any other mode or form, of or with respect to this Agreement or of any part of or interest in the Development, or any agreement to do any of the foregoing; or
(b) Any total or partial sale, assignment, or other conveyance, or any trust or power, or any transfer in any other mode or form, of, or with respect to, the membership interests in the Borrower, or any agreement to do any of the foregoing.
Section 4.2 Purpose of Restrictions on Transfer.
This Agreement is entered into solely for the purpose of providing assistance for the Borrower's development of the Property in accordance with the terms of this Agreement and the Regulatory Agreement. The qualifications and identity of the Borrower are of particular concern to the City, in view of:
(a) The importance of the Development to the general welfare of the community;
(b) The public aids that have been made available by law and by the government for the purpose of making such Development possible; (c) The reliance by the City upon the unique qualifications and ability of the Borrower to serve as the catalyst for development of the Property and upon the continuing interest which the Borrower will have in the Development to assure the quality of the use, operation, and maintenance deemed critical by the City in the development of the Property;
(d) The fact that a change in ownership or control of the Borrower of the Development, or of a substantial part thereof, or ally other act or transaction involving or resulting in a significant change in ownership or with respect to the identity of the parties in control of the Borrower or the degree thereof, is for practical purposes a transfer or disposition of the Development; and
(e) The importance to the City of the standards of use, operation, and maintenance of the Development. It is because of the qualifications and identity of the Borrower that the City is entering into this Agreement and that Transfers are permitted only as provided in this Agreement.
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Section 4.3 Prohibited Transfers.
The limitations on Transfers set forth in this Article 4 shall apply throughout the term of the Regulatory Agreement. Except as expressly permitted in this Agreement, the Borrower represents that it has not made or created, and agrees that it will not make or create or suffer to be made or created, any Transfer, either voluntarily or by operation of law, without the prior written approval of the City.
Any Transfer made in contravention of this Section 4.3 shall at the City's discretion be void and shall be deemed to be an Event of Default under this Agreement, whether or not the Borrower knew of or participated in such Transfer.
Section 4.4 Permitted Transfers Without Prior City Approval.
City consent is not required for the following:
(a) Rental of a Unit by the Borrower in the ordinary course of business and in compliance with the Regulatory Agreement.
(b) The granting of temporary or permanent easements or permits to facilitate construction of the Improvements.
(c) A sale or other transfer of the Development to Interim, Inc. provided that (i) prior to the Transfer the Borrower and the proposed transferee execute an assignment and assumption agreement reasonably satisfactory to the City evidencing the proposed transferee's acceptance and assumption of the obligations of the Borrower under this Agreement and any documents executed by the Borrower in connection with this Agreement; (ii) the Borrower establishes to the City's reasonable satisfaction that the proposed transferee possesses the necessary financial resources to undertake the Development and not impair the City's ability to be indemnified pursuant to those sections in the Agreement or any of the Loan Documents which provide for indemnification by the Borrower; and (iii) the conditions in Section 4.5 (a) – (c) are met.
(d) Any Transfer for the purpose of obtaining and securing financing, approved by the City, which is necessary to construct the Development, including the grant of a deed of trust, assignment of rents and security agreement, to secure the necessary funding.
(e) Any Transfer directly resulting from the foreclosure of a deed of trust, or the granting of a deed in lieu of foreclosure under a deed of trust, where the deed of trust secures financing approved by the City.
Section 4.5 Permitted Transfers With Prior Approval.
Except as permitted under Section 4.4, any Transfer shall be permitted during the Term of this Agreement only after (a) the City, has delivered to the Borrower its prior written approval of such Transfer, which approval may not be unreasonably withheld, 20 1378\21\3401633.1
and (b) the transferee has assumed the Borrower's future obligations under this Agreement by signing this Agreement or such other reasonable documentation as the City may require. Following completion of construction of the Improvements, the City shall not unreasonably withhold its consent to a proposed Transfer, provided that the City reasonably determines that the proposed transferee is qualified to operate the Development in compliance with the Regulatory Agreement including meeting the following requirements:
(a) the proposed transferee has at least five (5) years' experience operating multifamily rental housing developments comparable to the Development; (b) the proposed transferee has no record of loan defaults, maintenance problems, housing or building code violations, or substantiated fair housing complaints at properties it has owned or operated; and (c) the proposed transferee has satisfactory credit.
ARTICLE 5.
REPRESENTATIONS AND WARRANTIES OF BORROWER
Section 5.1 Representations and Warranties.
Borrower hereby represents and warrants to the City as follows:
(a) Organization. Borrower is duly organized, validly existing California limited liability company and is in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted.
(b) Authority of Borrower. Borrower has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.
(c) Authority of Persons Executing Documents. This Agreement and the Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered by the Borrower, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Borrower, and all actions required under Borrower's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken (to the extent such actions are required as of the date of execution and delivery of the above-named documents). 21 1378\21\3401633.1
(d) Valid Binding Agreements. This Agreement and the Loan Documents and all other documents or instruments which have been executed and delivered by the Borrower pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Borrower enforceable by and against it in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the rights of creditors generally and general principles of equity.
(e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Loan Documents by the Borrower or of any other documents or instruments executed and delivered, or to be executed or delivered by the Borrower, pursuant to this Agreement, nor the performance by the Borrower of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or City whatsoever binding on Borrower, or any provision of the organizational documents of Borrower, or will conflict with or constitute a breach of or a default under any agreement to which Borrower is a party, or will result in the creation or imposition of any lien upon any assets or property of Borrower, other than liens established pursuant hereto.
(f) Compliance With Laws; Consents and Approvals. The construction of the Development will comply with all applicable laws, ordinances, rules and regulations of federal, state and local governments and agencies and with all applicable directions, rules and regulations of the fire marshal, health officer, building inspector and other officers of any such government or City.
(g) Pending Proceedings. Borrower is not in default under any law or regulation or under any order of any court, board, commission or City whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Borrower, threatened against or affecting Borrower, or the Development, at law or in equity, before or by any court, board, commission or City whatsoever which might, if determined adversely to Borrower, materially and adversely affect Borrower's ability to repay the Loan or impair the security to be given to the City pursuant hereto. (h) Title to Development. At the time of recordation of the Deed of Trust, Borrower will have good and marketable fee title to the Development and there will exist thereon or with respect thereto no mortgage, lien, pledge or other encumbrance of any character whatsoever other than those liens approved in writing by the City, liens securing any of the Approved Financing or liens for current real property taxes and assessments not yet due and payable.
(i) Financial Statements. The financial statements of Borrower and other financial data and information furnished by Borrower to the City fairly present the information contained therein. As of the Effective Date, there has not been any adverse, material change in the financial condition of Borrower from that shown by such financial statements and other data and information.
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(j) Sufficient Funds. Borrower holds sufficient funds and/or binding commitments for sufficient funds to complete the construction of Development in accordance with the plans and specifications approved by the City.
ARTICLE 6.
DEFAULT AND REMEDIES
Section 6.1 Events of Default.
Each of the following shall constitute an "Event of Default" by Borrower under this Agreement:
(a) Failure to Make Payment. Failure to repay the principal and any interest on the Loan that is due and payable to the City pursuant to the Loan Documents (subject to any notice and cure periods set forth in the other Loan Documents).
(b) Breach of Covenants. Failure by Borrower to materially perform, comply with, or observe any of the conditions, terms, or covenants of any of the Loan Documents, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof by Borrower from City or, if the breach cannot be cured within thirty (30) days, Borrower shall not be in breach so long as Borrower is diligently undertaking to cure such breach and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other subsection of this Article 6, the specific provisions shall control. (c) Default Under Other Loans. Failure to make any payment or perform any of Borrower's covenants, agreements, or obligations under the documents evidencing and securing any loan or financing secured by the Development following expiration of all applicable notice and cure periods.
(d) Insolvency. A court having jurisdiction shall have made or entered any decree or order (i) adjudging Borrower to be bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization of Borrower or seeking any arrangement for Borrower or under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction, (iii) appointing a receiver, trustee, liquidator, or assignee of Borrower in bankruptcy or insolvency or for any of their properties, or (iv) directing the winding up or liquidation of Borrower, if any such decree or order described in clauses (i) to (iv), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days; or Borrower shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (i) to (iv), inclusive. The occurrence of any of the Events of Default in this paragraph shall act to accelerate automatically, without the need for any action by the City, the indebtedness evidenced by the Note.
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(e) Assignment; Attachment. Borrower shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution. The occurrence of any of the Events of Default in this paragraph shall act to accelerate automatically, without the need for any action by the City, the indebtedness evidenced by the Note.
(f) Suspension; Termination. Borrower shall have voluntarily suspended its business for more than sixty (60) consecutive days or, Borrower has dissolved or terminated. The occurrence of any of the Events of Default in this paragraph shall act to accelerate automatically, without the need for any action by the City, the indebtedness evidenced by the Note.
(g) Liens on Property and the Development. There shall be filed any claim of lien (other than liens approved in writing by the City) against the Development or any part thereof, or any interest or right made appurtenant thereto, or the service of any notice to withhold proceeds of the Loan and the continued maintenance of said claim of lien or notice to withhold for a period of twenty (20) days without discharge or satisfaction thereof or provision therefor (including, without limitation, the posting of bonds) satisfactory to the City.
(h) Condemnation. The condemnation, seizure, or appropriation of all or the substantial part of the Property and the Development, except that condemnation by the City shall cause the Loan to accelerate but shall not be an Event of Default. (i) Unauthorized Transfer. Any Transfer other than as permitted by Article 4.
(j) Representation or Warranty Incorrect. Any Borrower representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the City in connection with any of the Loan Documents, proving to have been incorrect in any material and adverse respect when made.
Section 6.2 Remedies.
The occurrence of any Event of Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the City or automatically where so specified, relieve the City of any obligation to make or continue the Loan and shall give the City the right to proceed with any and all remedies set forth in this Agreement and the Loan Documents, including but not limited to the following:
(a) Acceleration of Note. The City shall have the right to cause all indebtedness of the Borrower to the City under this Agreement and the Note, together with any accrued interest thereon, to become immediately due and payable. The Borrower waives all right to presentment, demand, protest or notice of protest or 24 1378\21\3401633.1
dishonor. The City may proceed to enforce payment of the indebtedness and to exercise any or all rights afforded to the City as a creditor and secured party under the law including the Uniform Commercial Code, including foreclosure under the Deed of Trust. The Borrower shall be liable to pay the City on demand all reasonable expenses, costs and fees (including, without limitation, reasonable attorney's fees and expenses) paid or incurred by the City in connection with the collection of the Loan and the preservation, maintenance, protection, sale, or other disposition of the security given for the Loan.
(b) Specific Performance. The City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require Borrower to perform its obligations and covenants under the Loan Documents or to enjoin acts on things which may be unlawful or in violation of the provisions of the Loan Documents. (c) Right to Cure at Borrower's Expense. The City shall have the right (but not the obligation) to cure any monetary default by Borrower under a loan other than the Loan. The Borrower agrees to reimburse the City for any funds advanced by the City to cure a monetary default by Borrower upon demand therefor, together with interest thereon at the lesser of the maximum rate permitted by law or ten percent (10%) per annum from the date of expenditure until the date of reimbursement.
Section 6.3 Right of Contest.
Borrower shall have the right to contest in good faith any claim, demand, levy, or assessment the assertion of which would constitute an Event of Default hereunder. Any such contest shall be prosecuted diligently and in a manner unprejudicial to the City or the rights of the City hereunder.
Section 6.4 Remedies Cumulative.
No right, power, or remedy given to the City by the terms of this Agreement or the Loan Documents is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Borrower and any other person.
Neither the failure nor any delay on the part of the City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
ARTICLE 7.
GENERAL PROVISIONS
Section 7.1 Relationship of Parties.
Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between 25 1378\21\3401633.1
the City and Borrower or its agents, employees or contractors, and Borrower shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement. Borrower has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. In regard to the purchase, construction, and operation of the Development, Borrower shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and shall include requirements in each contract that contractors shall be solely responsible for similar matters relating to their employees. Borrower shall be solely responsible for its own acts and those of its agents and employees.
Section 7.2 No Claims.
Nothing contained in this Agreement shall create or justify any claim against the City by any person that Borrower may have employed or with whom Borrower may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the purchase, construction, or operation of the Development, and Borrower shall include similar requirements in any contracts entered into for the purchase, construction, or operation of the Development.
Section 7.3 Amendments.
No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the Parties.
Section 7.4 Indemnification.
The Borrower shall indemnify, defend and hold the City, City Council members, officers, employees, agents, successors and assigns harmless against all claims made against it and expenses (including reasonable attorneys' fees) which arise out of or in connection with the purchase of the Development, or the development, construction, marketing and operation of the Development, except to the extent such claim arises from the grossly negligent or willful misconduct of the City. The provisions of this Section 7.4 shall survive the repayment of the Loan, the expiration of the Term, and the reconveyance of the Deed of Trust.
Section 7.5 Non-Liability of City Officials, Employees and Agents.
No member, official, employee or agent of the City shall be personally liable to Borrower in the event of any default or breach by the City or for any amount which may become due to Borrower or its successor or on any obligation under the terms of this Agreement.
Section 7.6 No Third-Party Beneficiaries.
There shall be no third-party beneficiaries to this Agreement. 26 1378\21\3401633.1
Section 7.7 Discretion Retained by City.
The City's execution of this Agreement in no way limits the discretion of the City in the permit and land use approval process in connection with construction of the Development.
Section 7.8 Notices, Demands and Communications.
Formal notices, demands, and communications between the Parties shall be sufficiently given if and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the Parties as follows:
City: City of Salinas
200 Lincoln Avenue
Salinas, CA 93901
Attention: City Manager
City of Salinas
City Attorney
200 Lincoln Avenue
Salinas, CA 93901
City of Salinas
Community Development Department, Housing
Division
65 W. Alisal Street, 2nd Floor
Salinas, CA 93901
Attention: Planning Manager
Borrower: Sun Rose Housing, LLC
604 Pearl Street
Monterey, California 93940
Attn: Executive Director
Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected Party may from time to time designate by mail as provided in this Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable).
Section 7.9 Applicable Law and Venue.
This Agreement shall be governed by California law. Venue for any legal action under this Agreement shall be Monterey County, California.
Section 7.10 Parties Bound.
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Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their heirs, executors, administrators, legal representatives, successors, and assigns. This Agreement is intended to run with the land and shall bind Borrower and its successors and assigns in the Property and the Development for the entire Term, and the benefit hereof shall inure to the benefit of the City and its successors and assigns.
Section 7.11 Attorneys' Fees.
If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing Party will have the right to recover its reasonable attorneys' fees and costs of suit from the other Party. Attorneys' fees for in-house City Attorney staff, if awarded, shall be calculated at the market rate.
Section 7.12 Severability.
If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
Section 7.13 Force Majeure.
In addition to specific provisions of this Agreement, performance by either Party shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; quarantine restrictions; freight embargoes; lack of transportation; or court order; or any other similar causes (other than lack of funds of Borrower or Borrower's inability to finance the construction of the Development) beyond the control or without the fault of the Party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the Party claiming such extension is sent to the other within ten (10) days from the commencement of the cause and such extension of time is not rejected in writing by the other Party within ten (10) days of receipt of the notice. In no event shall the City be required to agree to cumulative delays in excess of one hundred eighty (180) days.
Section 7.14 City Approval.
Whenever this Agreement calls for City approval, consent, or waiver, the written approval, consent, or waiver of the City Manager, or his or her designee as designated in writing, shall constitute the approval, consent, or waiver of the City, without further authorization required from the City Council. The City hereby authorizes the City Manager, or his or her designee as designated in writing, to deliver such approvals or consents as are required by this Agreement, or to waive requirements under this Agreement, on behalf of the City. Any consents or approvals required under this Agreement shall not be unreasonably withheld or made, except where it is specifically provided that a sole discretion standard applies. The City Manager, or his or her designee as designated in writing, is also hereby authorized to approve, on behalf of the 28 1378\21\3401633.1
City, requests by Borrower for reasonable extensions of time deadlines set forth in this Agreement. The City shall not unreasonably delay in reviewing and approving or disapproving any proposal by Borrower made in connection with this Agreement.
Section 7.15 Waivers.
Any waiver by the City of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to take action on any breach or default of Borrower or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Borrower to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by Borrower shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.
Section 7.16 Title of Parts and Sections.
Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of the Agreement's provisions.
Section 7.17 Entire Understanding of the Parties.
This Agreement constitutes the entire understanding and agreement of the Parties with respect to the Loan.
Section 7.18 Multiple Originals; Counterpart.
This Agreement may be executed in multiple original counterparts, each of which is deemed to be an original, and all such counterparts shall constitute one and the same instrument.
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WHEREAS, this Agreement has been entered into by the Parties as of the Effective Date.
APPROVED AS TO FORM
By: _____________________
Christopher A. Callihan,
City Attorney
CITY:
CITY OF SALINAS, a California charter city and
municipal corporation
By: __________________________________
Steven S. Carrigan
City Manager
BORROWER:
SUN ROSE HOUSING, LLC, a California limited
liability company
By: Interim, Inc., a California nonprofit public
benefit corporation,
its sole member/manager
By: _______________________
Barbara L. Mitchell,
Executive Director
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SALINAS,
COUNTY OF MONTEREY, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
COMMENCING AT THE PO INT OF THE BEND IN S OLEDAD STREET ON THE
EASTERN SIDE THEREOF AND IN THE CENTER O F THE SANJON DEL ALI SAL,
RUNNING THENCE SOUTH ERLY ON THE EASTERN SIDE OF SOLEDAD STR EET TO THE SOUTHERN LINE OF LOT 2, IN BLOCK 5, AS SHOWN ON THE M AP HEREINAFTER REFERRED TO; THENCE AT RIGHT ANGLES EASTERLY 140 FEET,
THENCE AT RIGHT ANGLES NORTHERLY TO THE CENTER OF SANJON AND THEN
IN THE CENTER OF SAID SANJON TO THE TO THE POINT OF BEGINNING, BEING LOTS 1 AND 2, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FI LED ON JUNE 7, 1902, IN THE OFFICE OF TH E COUNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA, IN BOOK 1, CITIES AND TOWNS, AT PAGE 28 THEREIN.
PARCEL 2:
THAT PART OF LOT 3, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FILED ON JUNE 7, 1902, IN THE OFF ICE OF THE
COUNTY RECORDER OF T HE COUNTY OF MONTERE Y, STATE OF CALIFORN IA, IN BOOK 1, CIT IES AND TOWNS, AT PA GE 28 THEREIN, LYING NORTHERLY OF
THE LINE COMMENCING AT A POINT ON THE EA STERN SIDE OF SOLEDA D STREET 280 2/5 FEET FROM THE NORTHERN CURB LINE OF JOHN STREET AND
RUNNING EASTERLY ON A LINE PARALLEL TO THE SOUTHERN LINE OF SAID LOT 3, TO THE EASTERN LINE OF SAID LOT 3, BEING ALL OF SAID LOT, EXCEPT THAT PORTION THEREOF CONVEYED BY C.F. LACEY, ET UX, TO E.M. STOLP BY DEED DATED JULY 8, 1919 AND RECORDED IN VOLUME 164 OF DEEDS AT PAGE 273, IN
THE OFFICE OF THE CO UNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA.
APN: 002-354-027
B-1
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EXHIBIT B
FORM OF DEED OF TRUST
[on following pages]
B-2
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Salinas
Community Development Department
Housing Division
65 W. Alisal Street, 2nd Floor
Salinas, California 93901
Exempt from recording fees
(Govt. Code §27383) and from
Documentary Transfer Tax
(Rev. and Taxation Code § 11922)
APN: 002-354-027
DEED OF TRUST WITH ASSIGNMENT OF RENTS,
SECURITY AGREEMENT, AND FIXTURE FILING
(Housing Successor LMIHAF Funds Loan – Sun Rose Apartments)
THIS DEED OF TRUST WITH ASSIGNMENT OF RENTS, SECURITY
AGREEMENT, AND FIXTURE FILING ("Deed of Trust") is made as of December __, 2022, by and among Sun Rose Housing, LLC, a California limited liability company ("Trustor"), Chicago Title Insurance Company, a California corporation, ("Trustee"), and the City of Salinas, a California charter city and municipal corporation ("Beneficiary").
FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness herein recited and the trust herein created, the receipt of which is hereby acknowledged, Trustor hereby irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, Trustor's fee interest in the property located in the City of Salinas, County of Monterey, State of California, that is described in the attached Exhibit A, incorporated herein by this reference ("Property").
TOGETHER WITH all interest, estates or other claims, both in law and in equity which Trustor now has or may hereafter acquire in the Property and the rents; TOGETHER WITH all easements, rights-of-way and rights used in connection therewith or as a means of access thereto, including (without limiting the generality of the foregoing) all tenements, hereditaments and appurtenances thereof and thereto; B-3
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TOGETHER WITH any and all buildings and improvements of every kind and description now or hereafter erected thereon, and all property of Trustor now or hereafter affixed to or placed upon the Property;
TOGETHER WITH all building materials and equipment now or hereafter delivered to said property and intended to be installed therein; TOGETHER WITH all right, title and interest of Trustor, now owned or hereafter acquired, in and to any land lying within the right-of-way of any street, open or proposed, adjoining the Property, and any and all sidewalks, alleys and strips and areas of land adjacent to or used in connection with the Property; adjoining the Property, and any and all sidewalks, alleys and strips and areas of land adjacent to or used in connection with the Property;
TOGETHER WITH all estate, interest, right, title, other claim or demand, of every nature, in and to such property, including the Property, both in law and in equity, including, but not limited to, all deposits made with or other security given by Trustor to utility companies, the proceeds from any or all of such property, including the Property, claims or demands with respect to the proceeds of insurance in effect with respect thereto, which Trustor now has or may hereafter acquire, any and all awards made for the taking by eminent domain or by and proceeding or purchase in lieu thereof of the whole or any part of such property, including without limitation, any awards resulting from a change of grade of streets and awards for severance damages to the extent Beneficiary has an interest in such awards for taking as provided in Paragraph 4.1 herein; and
TOGETHER WITH all of Trustor's interest in all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to said building or buildings in any manner.
All of the foregoing, together with the Property, is herein referred to as the "Security." To have and to hold the Security together with acquittances to Trustee, its successors and assigns forever.
FOR THE PURPOSE OF SECURING THE FOLLOWING OBLIGATIONS (the "Secured Obligations"):
a. Payment of just indebtedness of Trustor to Beneficiary as set forth in the Note (defined in Article 1 below) until paid or cancelled. Said principal and other payments shall be due and payable as provided in the Note. Said Note and all its terms are incorporated herein by reference, and this conveyance shall secure any and all B-4
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extensions thereof, however evidenced; and
b. Payment of any sums advanced by Beneficiary to protect the Security pursuant to the terms and provisions of this Deed of Trust following a breach of Trustor's obligation to advance said sums and the expiration of any applicable cure period, with interest thereon as provided herein; and
c. Performance of every obligation, covenant or agreement of Trustor contained herein and in the Loan Documents (defined in Section 1.2 below).
AND TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND AGREES:
ARTICLE 1.
DEFINITIONS
In addition to the terms defined elsewhere in this Deed of Trust, the following terms shall have the following meanings in this Deed of Trust:
Section 1.1 The term "Loan Agreement" means that certain Loan Agreement (Housing Successor LMIHAF Funds) between Trustor and Beneficiary, dated as of the same date as this Deed of Trust, providing for Beneficiary to loan to Trustor Five Hundred Thousand Dollars ($500,000) for construction of affordable housing on the Property.
Section 1.2 The term "Loan Documents" means this Deed of Trust, the Note, the Loan Agreement, the Notice of Affordability Restrictions on Transfer of Property, the Regulatory Agreement, and any other debt, loan, or security instruments between Trustor and Beneficiary relating to the Property.
Section 1.3 The term "Note" means that certain Promissory Note in the amount of Five Hundred Thousand Dollars ($500,000) of even date herewith executed by Trustor in favor of Beneficiary, the payment of which is secured by this Deed of Trust. (Copies of the Note are on file with Beneficiary and terms and provisions of the Note are incorporated herein by reference.)
Section 1.4 The term "Notice of Affordability Restrictions" means the Notice of Affordability Restrictions on Transfer of Property between the City and the Borrower to be recorded against the Property pursuant to Health and Safety Code Sections 33334.3 and/or 33413(c)(5), or successor provision.
Section 1.5 The term "Principal and Interest" means the aggregate of the amounts required to be paid under the Note.
Section 1.6 The term "Regulatory Agreement" means that certain Regulatory Agreement and Declaration of Restrictive Covenants between Trustor and B-5
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Beneficiary, dated of even date herewith, restricting the occupancy and rent levels of residential units in the Development to be constructed by Trustor on the Property.
ARTICLE 2.
MAINTENANCE AND MODIFICATION OF
THE PROPERTY AND SECURITY
Section 2.1 Maintenance and Modification of the Property by Trustor.
Trustor agrees that at all times prior to full payment of the sum owed under the Note, Trustor will, at Trustor's own expense, maintain, preserve, and keep the Security or cause the Security to be maintained and preserved in good condition.
Trustor will from time to time make or cause to be made all repairs, replacements, and renewals deemed proper and necessary by it. Beneficiary shall have no responsibility in any of these matters or for the making of improvements or additions to the Security.
Trustor agrees to pay fully and discharge (or cause to be paid fully and discharged) all claims for labor done and for material and services furnished in connection with the Security, diligently to file or procure the filing of a valid notice of cessation upon the event of a cessation of labor on the work or construction on the Security for a continuous period of thirty (30) days or more, and to take all other reasonable steps to forestall the assertion of claims of lien against the Security of any part thereof. Trustor irrevocably appoints, designates and authorizes Beneficiary as its agent (said agency being coupled with an interest) with the authority, but without any obligation, to file for record any notices of completion or cessation of labor or any other like notice that Beneficiary deems necessary or desirable to protect its interest in and to the Security or the Loan Documents; provided, however, that Beneficiary shall exercise its rights as agent of Trustor only in the event that Trustor shall fail to take, or shall fail to diligently continue to take, those actions as hereinbefore provided.
Upon demand by Beneficiary, Trustor shall make or cause to be made such demands or claims, as Beneficiary shall reasonably specify upon laborers, materialmen, subcontractors or other persons who have furnished or claim to have furnished labor, services or materials in connection with the Security. Nothing herein contained shall require Trustor to pay any claims for labor, materials or services which Trustor in good faith disputes and is diligently contesting provided that Trustor shall, within thirty (30) days after the filing of any claim of lien, record in the Office of the Recorder of Monterey County, a surety bond in an amount 1 and 1/2 times the amount of such claim item to protect against a claim of lien.
Section 2.2 Granting of Easements.
Trustor may not grant easements, licenses, rights-of-way or other rights or privileges in the nature of easements with respect to any property or rights included in the Security except those required or desirable for installation and maintenance of B-6
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public utilities including, without limitation, water, gas, electricity, sewer, telephone and telegraph, or those required by law. As to these exceptions, Beneficiary will grant and/or direct Trustee to grant such easements.
Section 2.3 Assignment of Rents.
As part of the consideration for the indebtedness evidenced by the Note, Trustor hereby absolutely and unconditionally assigns and transfers to Beneficiary all the rents and revenues of the Property including those now due, past due, or to become due by virtue of any lease or other agreement for the occupancy or use of all or any part of the Property, regardless of to whom the rents and revenues of the Property are payable.
Trustor hereby authorizes Beneficiary or Beneficiary's agents to collect the aforesaid rents and revenues and hereby directs each tenant of the Property to pay such rents to Beneficiary or Beneficiary's agents; provided, however, that prior to written notice given by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of Trustor in the Loan Documents, Trustor shall collect and receive all rents and revenues of the Property as trustee for the benefit of Beneficiary and Trustor shall apply the rents and revenues so collected to the sums secured by this Deed of Trust with the balance, so long as no such breach has occurred, to the account of Trustor, it being intended by Trustor and Beneficiary that this assignment of rents constitutes an absolute assignment and not an assignment for additional security only. Upon delivery of written notice by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of Trustor in the Loan Documents, and without the necessity of Beneficiary entering upon and taking and maintaining full control of the Property in person, by agent or by a court-appointed receiver, Beneficiary shall immediately be entitled to possession of all rents and revenues of the Property as specified in this Section 2.3 as the same becomes due and payable, including but not limited to rents then due and unpaid, and all such rents shall immediately upon delivery of such notice be held by Trustor as trustee for the benefit of Beneficiary only; provided, however, that the written notice by Beneficiary to Trustor of the breach by Trustor shall contain a statement that Beneficiary exercises its rights to such rents. Trustor agrees that commencing upon delivery of such written notice of Trustor's breach by Beneficiary to Trustor, each tenant of the Property shall make such rents payable to and pay such rents to Beneficiary or Beneficiary's agents on Beneficiary's written demand to each tenant therefor, delivered to each tenant personally, by mail or by delivering such demand to each rental unit, without any liability on the part of said tenant to inquire further as to the existence of a default by Trustor.
Except for the financing previously approved by the Beneficiary, Trustor hereby covenants that Trustor has not executed any prior assignment of said rents, that Trustor has not performed, and will not perform, any acts or has not executed and will not execute, any instrument which would prevent Beneficiary from exercising its rights under this Section 2.3, and that at the time of execution of this Deed of Trust, there has been no anticipation or prepayment of any of the rents of the Property for more than two (2) months prior to the due dates of such rents. Trustor covenants that Trustor will not hereafter collect or accept payment of any rents of the Property more than two (2) months prior to the due dates of such rents. Trustor further covenants that Trustor will B-7
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execute and deliver to Beneficiary such further assignments of rents and revenues of the Property as Beneficiary may from time to time request.
Upon Trustor's breach of any covenant or agreement of Trustor in the Loan Documents, Beneficiary may in person, by agent or by a court-appointed receiver, regardless of the adequacy of Beneficiary's security, enter upon and take and maintain full control of the Property in order to perform all acts necessary and appropriate for the operation and maintenance thereof including, but not limited to, the execution, cancellation or modification of leases, the collection of all rents and revenues of the Property, the making of repairs to the Property and the execution or termination of contracts providing for the management or maintenance of the Property, all on such terms as are deemed best to protect the security of this Deed of Trust. In the event Beneficiary elects to seek the appointment of a receiver for the Property upon Trustor's breach of any covenant or agreement of Trustor in this Deed of Trust, Trustor hereby expressly consents to the appointment of such receiver. Beneficiary or the receiver shall be entitled to receive a reasonable fee for so managing the Property.
All rents and revenues collected subsequent to delivery of written notice by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of Trustor in the Loan Documents shall be applied first to the costs, if any, of taking control of and managing the Property and collecting the rents, including, but not limited to, attorney's fees, receiver's fees, premiums on receiver's bonds, costs of repairs to the Property, premiums on insurance policies, taxes, assessments and other charges on the Property, and the costs of discharging any obligation or liability of Trustor as lessor or landlord of the Property and then to the sums secured by this Deed of Trust, and thereafter, to subordinate deeds of trust, if any. Beneficiary or the receiver shall have access to the books and records used in the operation and maintenance of the Property and shall be liable to account only for those rents actually received. Beneficiary shall not be liable to Trustor, anyone claiming under or through Trustor or anyone having an interest in the Property by reason of anything done or left undone by Beneficiary under this Section 2.3.
If the rents of the Property are not sufficient to meet the costs, if any, of taking control of and managing the Property and collecting the rents, any funds expended by Beneficiary for such purposes shall become indebtedness of Trustor to Beneficiary secured by this Deed of Trust pursuant to Section 3.3 hereof. Unless Beneficiary and Trustor agree in writing to other terms of payment, such amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof and shall bear interest from the date of disbursement at the rate stated in Section 3.3.
Any entering upon and taking and maintaining of control of the Property by Beneficiary or the receiver and any application of rents as provided herein shall not cure or waive any default hereunder or invalidate any other right or remedy of Beneficiary under applicable law or provided herein. This assignment of rents of the Property shall terminate at such time as this Deed of Trust ceases to secure indebtedness held by Beneficiary. The rights of the Beneficiary under this Section 2.3 are subject to the rights of any senior mortgage lender.
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ARTICLE 3.
TAXES AND INSURANCE; ADVANCES
Section 3.1 Taxes, Other Governmental Charges and Utility Charges.
Trustor shall pay, or cause to be paid, at least fifteen (15) days prior to the date of delinquency, all taxes, assessments, charges and levies imposed by any public authority or utility company which are or may become a lien affecting the Security or any part thereof; provided, however, that Trustor shall not be required to pay and discharge any such tax , assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves adequate to pay any liabilities contested pursuant to this Section. With respect to taxes, special assessments or other similar governmental charges, Trustor shall pay such amount in full prior to the attachment of any lien therefor on any part of the Security; provided, however, if such taxes, assessments or charges may be paid in installments, Trustor may pay in such installments. Except as provided in clause of the first sentence of this paragraph, the provisions of this Section shall not be construed to require that Trustor maintain a reserve account, escrow account, impound account or other similar account for the payment of future taxes, assessments, charges and levies.
In the event that Trustor shall fail to pay any of the foregoing items required by this Section to be paid by Trustor, Beneficiary may (but shall be under no obligation to) pay the same, after Beneficiary has notified Trustor of such failure to pay and Trustor fails to fully pay such items within seven (7) business days after receipt of such notice. Any amount so advanced therefor by Beneficiary, together with interest thereon from the date of such advance at the maximum rate permitted by law, shall become an additional obligation of Trustor to Beneficiary and shall be secured hereby, and Trustor agrees to pay all such amounts.
Section 3.2 Provisions Respectin g Insurance.
Trustor agrees to provide insurance conforming in all respects to that required under the Loan Documents during the course of construction and following completion, and at all times until all amounts secured by this Deed of Trust have been paid and all other obligations secured hereunder fulfilled, and this Deed of Trust reconveyed.
All such insurance policies and coverages shall be maintained at Trustor's sole cost and expense. Certificates of insurance for all of the above insurance policies, showing the same to be in full force and effect, shall be delivered to Beneficiary upon demand therefor at any time prior to Beneficiary's receipt of the entire Principal and Interest and all amounts secured by this Deed of Trust.
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Section 3.3 Advances .
In the event Trustor shall fail to maintain the full insurance coverage required by this Deed of Trust or shall fail to keep the Security in accordance with the Loan Documents, Beneficiary, after at least seven (7) days prior notice to Trustor, may (but shall be under no obligation to) take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment thereof; and all amounts so advanced therefor by Beneficiary shall become an additional obligation of Trustor to Beneficiary (together with interest as set forth below) and shall be secured hereby, which amounts Trustor agrees to pay on the demand of Beneficiary, and if not so paid, shall bear interest from the date of the advance at the lesser of ten percent ( 10%) per annum or the maximum rate permitted by law.
ARTICLE 4.
DAMAGE, DESTRUCTION OR CONDEMNATION
Section 4.1 Awards and Damages.
All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or in any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property ("Funds") are hereby assigned to and shall be paid to Beneficiary by a check made payable to Beneficiary.
Beneficiary is authorized and empowered (but not required) to collect and receive any Funds and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner, as Beneficiary shall determine at its sole option.
Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by Beneficiary may be released to Trustor upon such conditions as Beneficiary may impose for rebuilding of the improvements on the Property. Application of all or any part of the Funds collected and received by Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. The rights of Beneficiary under this Section are subject to the rights of any senior mortgage lender.
ARTICLE 5.
AGREEMENTS AFFECTING THE PROPERTY; FURTHER ASSURANCES;
PAYMENT OF PRINCIPAL AND INTEREST
Section 5.1 Other Agreements Affecting Property.
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Trustor shall duly and punctually perform all terms, covenants, conditions and agreements binding upon it under the Loan Documents and any other agreement of any nature whatsoever now or hereafter involving or affecting the Security or any part thereof.
Section 5.2 Agreement to Pay Attorneys' Fees and Expenses.
In the event of any Event of Default (as defined below) hereunder, and if Beneficiary should employ attorneys or incur other expenses for the collection of amounts due or the enforcement of performance or observance of an obligation or agreement on the part of Trustor in this Deed of Trust, Trustor agrees that it will, on demand therefor, pay to Beneficiary the reasonable fees of such attorneys and such other reasonable expenses so incurred by Beneficiary; and any such amounts paid by Beneficiary shall be added to the indebtedness secured by the lien of this Deed of Trust, and shall bear interest from the date such expenses are incurred at the lesser of ten percent (10%) per annum or the maximum rate permitted by law. Attorneys' fees for in-house City Attorney staff of Beneficiary, if awarded, shall be calculated at the market rate.
Section 5.3 Payment of the Principal and Interest.
Trustor shall pay to Beneficiary the Principal and Interest and any other payments as set forth in the Note in the amounts and by the times set out therein.
Section 5.4 Personal Property.
To the maximum extent permitted by law, the personal property subject to this Deed of Trust shall be deemed to be fixtures and part of the real property and this Deed of Trust shall constitute a fixture filing under the California Commercial Code.
As to any personal property not deemed or permitted to be fixtures, this Deed of Trust shall constitute a security agreement under the California Commercial Code.
Section 5.5 Financing Statement.
Trustor shall execute and deliver to Beneficiary such financing statements pursuant to the appropriate statutes, and any other documents or instruments as are required to convey to Beneficiary a valid perfected security interest in the Security.
Trustor agrees to perform all acts which Beneficiary may reasonably request so as to enable Beneficiary to maintain such valid perfected security interest in the Security in order to secure the payment of the Note in accordance with its terms. Beneficiary is authorized to file a copy of any such financing statement in any jurisdiction(s) as it shall deem appropriate from time to time in order to protect the security interest established pursuant to this instrument. Trustor shall pay all costs of filing such financing statements and any extensions, renewals, amendments, and releases thereof, and shall pay all reasonable costs and expenses of any record searches for financing statements, and releases thereof, as the Beneficiary may reasonably require. Without the prior written consent of the Beneficiary, Trustor shall not create or suffer to be created B-11
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pursuant to the California Commercial Code any other security interest in the Security, including replacements and additions thereto.
Section 5.6 Operation of the Security.
Trustor shall operate the Security (and, in case of a transfer of a portion of the Security subject to this Deed of Trust, the transferee shall operate such portion of the Security) in full compliance with the Loan Documents.
Section 5.7 Inspection of the Security.
At any and all reasonable times upon a seventy-two (72) hour notice, Beneficiary and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right, without payment of charges or fees, to inspect the Security.
Section 5.8 Nondiscrimination.
Trustor herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Security, nor shall Trustor itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Security. The foregoing covenants shall run with the land.
ARTICLE 6.
HAZARDOUS WASTE
Section 6.1 Compliance with Environmental Laws.
Trustor shall keep and maintain the Property in compliance with, and shall not cause or permit the Property to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. Trustor shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily kept and used in and about residential property, and during construction B-12
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only, such as may be customarily kept and used in the course of the senior rental housing construction.
Section 6.2 Notice to Beneficiary.
Trustor shall immediately advise Beneficiary in writing if at any time it receives written notice of (a) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Trustor or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials ("Hazardous Materials Law"); (b) all claims made or threatened by any third party against Trustor or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (a) and (b) above hereinafter referred to a "Hazardous Materials Claims"); and (c) Trustor's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be subject to a land use restriction pursuant to California Health and Safety Code, Sections 25220 et seq. or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law.
Section 6.3 Beneficiary Right to Participate; Indemnification of Beneficiary.
Beneficiary shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Trustor. Trustor shall indemnify and hold harmless Beneficiary and its councilmembers, supervisors, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (a) all foreseeable consequential damages; (b) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (c) all reasonable costs and expenses incurred by Beneficiary in connection with clauses (a) and (b), including but not limited to reasonable attorneys' fees.
Section 6.4 Remedial Action.
Without Beneficiary's prior written consent, which shall not be unreasonably withheld, Trustor shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in Beneficiary's reasonable judgment, impair the value of Beneficiary's security hereunder; provided, however, that Beneficiary's prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or B-13
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welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain Beneficiary's consent before taking such action, provided that in such event Trustor shall notify Beneficiary as soon as practicable of any action so taken. Beneficiary agrees not to withhold its consent, where such consent is required hereunder, if either (a) a particular remedial action is ordered by a court of competent jurisdiction, (b) Trustor will or may be subjected to civil or criminal sanctions or penalties if it fails to take a required action; (c) Trustor establishes to the reasonable satisfaction of Beneficiary that there is no reasonable alternative to such remedial action which would result in less impairment of Beneficiary's security hereunder; or (d) the action has been agreed to by Beneficiary.
Section 6.5 Environmental Provision and Impairment.
Trustor hereby acknowledges and agrees that (a) this Article is intended as Beneficiary's written request for information (and Trustor's response) concerning the environmental condition of the Property as required by California Code of Civil Procedure Section 726.5, and (b) each representation and warranty in this Deed of Trust or any of the other Loan Documents (together with any indemnity applicable to a breach of any such representation and warranty) with respect to the environmental condition of the property is intended by Beneficiary and Trustor to be an "environmental provision" for purposes of California Code of Civil Procedure Section 736.
In the event that any portion of the Property is determined to be "environmentally impaired" (as that term is defined in California Code of Civil Procedure Section 726.5(e)(3)) or to be an "affected parcel" (as that term is defined in California Code of Civil Procedure Section 726.5(e)(1)), then, without otherwise limiting or in any way affecting the Beneficiary's or the Trustee's rights and remedies under this Deed of Trust, the Beneficiary may elect to exercise its rights under California Code of Civil Procedure Section 726.5(a) to (1) waive its lien on such environmentally impaired or affected portion of the Property and (2) exercise (a) the rights and remedies of an unsecured creditor, including reduction of its claim against the Trustor to judgment, and (b) any other rights and remedies permitted by law. For purposes of determining the Beneficiary's right to proceed as an unsecured creditor under California Code of Civil Procedure Section 726.5(a), the Trustor shall be deemed to have willfully permitted or acquiesced in a release or threatened release of hazardous materials, within the meaning of California Code of Civil Procedure Section 726.5(d)(1), if the release or threatened release of hazardous materials was knowingly or negligently caused or contributed to by any lessee, occupant, or user of any portion of the Property and the Trustor knew or should have known of the activity by such lessee, occupant, or user which caused or contributed to the release or threatened release. All costs and expenses, including (but not limited to) attorneys' fees, incurred by the Beneficiary in connection with any action commenced under this paragraph, including any action required by California Code of Civil Procedure Section 726.5(b) to determine the degree to which the Property is environmentally impaired, plus interest thereon at the rate specified in the Note until paid, shall be added to the indebtedness secured by this B-14
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Deed of Trust and shall be due and payable to the Beneficiary upon its demand made at any time following the conclusion of such action.
The Trustor is aware that California Civil Code Section 2955.5(a) provides as follows: "No lender shall require a borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the improvements on that real property in an amount exceeding the replacement value of the improvements on the property."
ARTICLE 7.
EVENTS OF DEFAULT AND REMEDIES
Section 7.1 Events of Default.
The following shall constitute an "Event of Default" following the expiration of any applicable notice and cure periods: (a) failure to make any payment to be paid by Trustor under the Loan Documents; (b) failure to observe or perform any of Trustor's other covenants, agreements or obligations under the Loan Documents, including, without limitation, the provisions concerning discrimination; or (c) failure to make any payment or perform any of Trustor's other covenants, agreements, or obligations under any other debt instruments or regulatory agreement secured by the Property; which default shall not be cured within the times and in the manner provided therein.
Section 7.2 Acceleration of Maturity.
If an Event of Default shall have occurred and be continuing, then at the option of Beneficiary, the amount of any payment related to the Event of Default and the unpaid Principal and Interest of the Note shall immediately become due and payable, upon written notice by Beneficiary to Trustor (or automatically where so specified in the Loan Documents), and no omission on the part of Beneficiary to exercise such option when entitled to do so shall be construed as a waiver of such right.
Section 7.3 Beneficiary's Right to Enter and Take Possession.
If an Event of Default shall have occurred and be continuing, Beneficiary may:
(a) Either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any Event of Default or Notice of Default (as defined below) hereunder or invalidate any act done in response to such Default or pursuant to such Notice of Default and, notwithstanding the continuance in possession of the Security, B-15
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Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any Event of Default, including the right to exercise the power of sale;
(b) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (c) Deliver to Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause Trustor's interest in the Security to be sold ("Notice of Default and Election to Sell"), which notice Trustee or Beneficiary shall cause to be duly filed for record in the Official Records of Monterey County; or
(d) Exercise all other rights and remedies provided herein, in the instruments by which Trustor acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law.
Section 7.4 Foreclosure by Power of Sale.
Should Beneficiary elect to foreclose by exercise of the power of sale herein contained, Beneficiary shall give notice to Trustee ("Notice of Sale") and shall deposit with Trustee this Deed of Trust which is secured hereby (and the deposit of which shall be deemed to constitute evidence that the unpaid Principal and Interest is immediately due and payable), and such receipts and evidence of any expenditures made that are additionally secured hereby as Trustee may require. (a) Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and Election to Sell and after Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by Trustor according to California Civil Code Section 2924g(b), at public auction to the highest bidder, for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed or any matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale, and Trustor hereby covenants to warrant and defend the title of such purchaser or purchasers.
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shall apply the proceeds of sale to payment of: (i) the unpaid Principal and Interest under the Note; (ii) all other amounts owed to Beneficiary under the Loan Documents; (iii) all other sums then secured hereby; and the remainder, if any, to Trustor. (c) Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice of Sale.
Section 7.5 Receiver.
If an Event of Default shall have occurred and be continuing, Beneficiary, as a matter of right and without further notice to Trustor or anyone claiming under the Security, and without regard to the then value of the Security or the interest of Trustor therein, shall have the right to apply to any court having jurisdiction to appoint a receiver or receivers of the Security (or a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case of entry as provided herein, and shall continue as such and exercise all such powers until the date of confirmation of sale of the Security, unless such receivership is sooner terminated.
Section 7.6 Remedies Cumulative.
No right, power or remedy conferred upon or reserved to Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity.
Section 7.7 No Waiver.
No delay or omission of Beneficiary to exercise any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy, or shall be construed to be a waiver of any such Event of Default or acquiescence therein; and every right, power and remedy given by this Deed of Trust to Beneficiary may be exercised from time to time and as often as may be deemed expeditious by Beneficiary. No consent or waiver, expressed or implied, by Beneficiary to or any breach by Trustor in the performance of the obligations hereunder shall be deemed or construed to be a consent to or waiver of obligations of Trustor hereunder. Failure on the part of Beneficiary to complain of any act or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by Beneficiary of its right hereunder or impair any rights, power or remedies consequent on any Event of Default by Trustor.
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If Beneficiary (i) grants forbearance or an extension of time for the payment of any sums secured hereby, (ii) takes other or additional security or the payment of any sums secured hereby, (iii) waives or does not exercise any right granted in the Loan Documents, (iv) releases any part of the Security from the lien of this Deed of Trust, or otherwise changes any of the terms, covenants, conditions or agreements in the Loan Documents, (v) consents to the granting of any easement or other right affecting the Security, or (iv) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not, except by its express terms, release, discharge, modify, change or affect the original liability under this Deed of Trust, or any other obligation of Trustor or any subsequent purchaser of the Security or any part thereof, or any maker, co-signer, endorser, surety or guarantor (unless expressly released); nor, except by its express terms, shall any such act or omission preclude Beneficiary from exercising any right, power or privilege herein granted or intended to be granted in any Event of Default then made or in any subsequent Event of Default, nor, except as otherwise expressly provided in an instrument or instruments executed by Beneficiary shall the lien of this Deed of Trust be altered thereby.
Section 7.8 Suits to Protect the Security.
Beneficiary shall have power to (a) institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the Security and the rights of Beneficiary as may be unlawful or any violation of this Deed of Trust, (b) preserve or protect its interest (as described in this Deed of Trust) in the Security, and (c) restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement for compliance with such enactment, rule or order would impair the Security thereunder or be prejudicial to the interest of Beneficiary.
Section 7.9 Trustee May File Proofs of Claim.
In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting Trustor, its creditors or its property, Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by Trustor hereunder after such date.
Section 7.10 Waiver.
Trustor waives presentment, demand for payment, notice of dishonor, notice of protest and nonpayment, protest, notice of interest on interest and late charges, and diligence in taking any action to collect any sums owing under the Note or in proceedings against the Security, in connection with the delivery, acceptance, performance, default, endorsement or guaranty of this Deed of Trust.
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ARTICLE 8.
MISCELLANEOUS
Section 8.1 Amendments.
This instrument cannot be waived, changed, discharged or terminated orally, but only by an instrument in writing signed by Beneficiary and Trustor.
Section 8.2 Reconveyance by Trustee.
Upon written request of Beneficiary stating that all sums secured hereby have been paid or forgiven, and upon surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee shall reconvey the Security to Trustor, or to the person(s) legally entitled thereto.
Section 8.3 Notices.
If at any time after the execution of this Deed of Trust it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered United States mail, return receipt requested, postage prepaid and (a) if intended for Beneficiary shall be addressed to:
City of Salinas
65 W. Alisal Street
Salinas, California 93901
Attention: Housing Division Planning Manager
With a copy to:
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, CA 93901
and (b) if intended for Trustor shall be addressed to:
Sun Rose Housing, LLC
604 Pearl Street
Monterey, California 93940
Attn: Executive Director
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Any notice, demand or communication shall be deemed given, received, made or communicated on the date personal delivery is effected or, if mailed in the manner herein specified, on the delivery date or date delivery is refused by the addressee, as shown on the return receipt. Either party may change its address at any time by giving written notice of such change to Beneficiary or Trustor as the case may be, in the manner provided herein, at least ten (10) days prior to the date such change is desired to be effective.
Section 8.4 Successors and Joint Trustors.
Where an obligation is created herein binding upon Trustor, the obligation shall also apply to and bind any transferee or successors in interest. Where the terms of the Deed of Trust have the effect of creating an obligation of Trustor and a transferee, such obligation shall be deemed to be a joint and several obligation of Trustor and such transferee. Where Trustor is more than one entity or person, all obligations of Trustor shall be deemed to be a joint and several obligation of each and every entity and person comprising Trustor.
Section 8.5 Captions.
The captions or headings at the beginning of each Section hereof are for the convenience of the parties and are not a part of this Deed of Trust.
Section 8.6 Invalidity of Certain Provisions.
Every provision of this Deed of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court or other body of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the unsecured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid or applied to the full payment of that portion of the debt which is not secured or partially secured by the lien of this Deed of Trust.
Section 8.7 Governing Law.
This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California.
Section 8.8 Gender and Number.
In this Deed of Trust the singular shall include the plural and the masculine shall include the feminine and neuter and vice versa, if the context so requires.
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Section 8.9 Deed of Trust, Mortgage.
Any reference in this Deed of Trust to a mortgage shall also refer to a deed of trust and any reference to a deed of trust shall also refer to a mortgage.
Section 8.10 Actions.
Trustor agrees to appear in and defend any action or proceeding purporting to affect the Security.
Section 8.11 Substitution of Trustee.
Beneficiary may from time to time substitute a successor or successors to any Trustee named herein or acting hereunder to execute this Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee herein named or acting hereunder. Each such appointment and substitution shall be made by written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when duly recorded in the proper office of the county or counties in which the Property is situated, shall be conclusive proof of proper appointment of the successor trustee.
Section 8.12 Acceptance by Trustee.
Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action of proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
[Signature on following page]
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IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first above written.
TRUSTOR:
SUN ROSE HOUSING, LLC, a California limited
liability company
By: Interim, Inc., a California nonprofit public
benefit corporation,
its sole member/manager
By: _______________________
Barbara L. Mitchell,
Executive Director
[Signature to be notarized]
1378\21\3401633.1
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________
Name: __________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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EXHIBIT A
PROPERTY DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SALINAS,
COUNTY OF MONTEREY, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
COMMENCING AT THE PO INT OF THE BEND IN S OLEDAD STREET ON THE
EASTERN SIDE THEREOF AND IN THE CENTER O F THE SANJON DEL ALI SAL,
RUNNING THENCE SOUTH ERLY ON THE EASTERN SIDE OF SOLEDAD STR EET TO THE SOUTHERN LINE OF LOT 2, IN BLOCK 5, AS SHOWN ON THE M AP HEREINAFTER REFERRED TO; THENCE AT RIGHT ANGLES EASTERLY 140 FEET,
THENCE AT RIGHT ANGLES NORTHERLY TO THE CENTER OF SANJON AND THEN
IN THE CENTER OF SAID SANJON TO THE TO THE POINT OF BEGINNING, BEING LOTS 1 AND 2, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FI LED ON JUNE 7, 1902, IN THE OFFICE OF TH E COUNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA, IN BOOK 1, CITIES AND TOWNS, AT PAGE 28 THEREIN.
PARCEL 2:
THAT PART OF LOT 3, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FILED ON JUNE 7, 1902, IN THE OFF ICE OF THE
COUNTY RECORDER OF T HE COUNTY OF MONTERE Y, STATE OF CALIFORN IA, IN BOOK 1, CIT IES AND TOWNS, AT PA GE 28 THEREIN, LYING NORTHERLY OF
THE LINE COMMENCING AT A POINT ON THE EA STERN SIDE OF SOLEDA D STREET 280 2/5 FEET FROM THE NORTHERN CURB LINE OF JOHN STREET AND
RUNNING EASTERLY ON A LINE PARALLEL TO THE SOUTHERN LINE OF SAID LOT 3, TO THE EASTERN LINE OF SAID LOT 3, BEING ALL OF SAID LOT, EXCEPT THAT PORTION THEREOF CONVEYED BY C.F. LACEY, ET UX, TO E.M. STOLP BY DEED DATED JULY 8, 1919 AND RECORDED IN VOLUME 164 OF DEEDS AT PAGE 273, IN
THE OFFICE OF THE CO UNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA.
APN: 002-354-027
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EXHIBIT C
FORM OF PROMISSORY NOTE
[on following pages]
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PROMISSORY NOTE SECURED BY DEED OF TRUST
(Housing Successor LMIHAF Funds Loan – Sun Rose Apartments)
Loan Amount: $500,000 Salinas, California
December __, 2022
FOR VALUE RECEIVED, SUN ROSE HOUSING, LLC, a California limited liability company (the "Borrower''), promises to pay to the CITY OF SALINAS, a charter city and municipal corporation (the "Holder"), the principal sum of Five Hundred Thousand Dollars ($500,000), disbursed by the Holder to the Borrower pursuant to that certain Loan Agreement (Housing Successor LMIHAF Funds ), dated as of the same dat e as this promissory note secured by a deed of trust (the " Note"), as may be amended or implemented from time to time (the " Loan Agreement"), or so much as is disbursed to Borrower, plus interest thereon pursuant to Section 2 below.
1. Borrower's Obligation. This Note evidences the Borrower's obligation to pay the Holder the principal amount of Five Hundred Thousand Dollars ($500,000) (the "Loan"), for the funds loaned to the Borrower by Holder to finance the development of the Property pursuant to the Loan Agreement. All capitalized terms not otherwise defined in this Note shall have the meanings set forth in the Loan Agreement.
2. Interest. The outstanding principal balance of this Note shall bear no interest; provided, however, if an Event of Default occurs, interest on the principal balance shall begin to accrue, as of the date of the Event of Default (following expiration of applicable notice and cure periods), and continuing until such time as the Loan funds are repaid in full or the Event of Default is cured, at the default rate of ten percent (10%) compounded annually, or the highest rate permitted by law (whichever is lower).
3. Term and Repayment Requirements.
(a) The term of this Note (the ''Term") shall commence with the date of this Note and shall expire fifty-five (55) years after the date of issuance of the Certificate of Occupancy for the Development.
(b) All principal and interest, if any, on the Loan shall, at the option of the Holder, be due and payable upon the earliest of: (i) a Transfer other than a Transfer permitted or approved by the Holder as provided in the Loan Agreement; (ii) the occurrence of an Event of Default for which the Holder exercises its right to cause the Loan indebtedness to become immediately due and payable; or (iii) the expiration of the Term specified in (a) above.
(c) This Note shall be due and payable as set forth in Section 2.6 of the Loan Agreement.
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4. No Assumption. This Note shall not be assumable by the successors and assigns of Borrower without the prior written consent of the Holder, or as set forth in the Loan Agreement.
5. Security. This Note is secured by a Deed of Trust, Assignment of Rents, Security Agreement, and Fixture Filing (the "Deed of Trust") dated as of the same date as this Note, wherein the Borrower is Trustor and the Holder is the Beneficiary, recorded against the Property.
6. Terms of Payment.
(a) All payments due under this Note shall be paid in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts.
(b) All payments on this Note shall be paid to the Holder at the following address: City of Salinas, 200 Lincoln Avenue, Salinas, CA 93901; Attention:
Finance Department, or to such other place as the Holder may from time to time designate in writing.
(c) All payments on this Note shall be without expense to the Holder, and the Borrower agrees to pay all costs and expenses, including re-conveyance fees and reasonable attorney's fees of the Holder, incurred in connection with the payment of this Note and the release of any security hereof.
(d) Notwithstanding any other provision of this Note, or any instrument securing the obligations of the Borrower under this Note, if, for any reason whatsoever, the payment of any sums by the Borrower pursuant to the terms of this Note would result in the payment of interest which would exceed the amount that the Holder may legally charge under the laws of the State of California, then the amount by which payments exceeds the lawful interest rate shall automatically be deducted from the principal balance owing on this Note, so that in no event shall the Borrower be obligated under the terms of this Note to pay any interest which would exceed the lawful rate.
7. Default.
(a) Any of the following shall constitute an "Event of Default" under this Note:
(i) Any failure to pay, in full, any payment required under this Note when due following written notice by the Holder of such failure and ten (10) days opportunity to cure;
(ii) Any failure in the performance by the Borrower of any other term, condition, provision or covenant set forth in the Loan Documents subject to the applicable notice and cure period set forth therein;
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(iii) Title to all or any part of the Property and in the Deed of Trust securing this Note is sold, conveyed, encumbered, alienated, or transferred, except if consented to by Holder or permitted under the Loan Agreement; (iv) In the event Borrower dissolves, terminates, or ceases to function; or
(v) Upon occurrence of an event described under Section
6.1(c), (d), (e), (f), (g), (h), or (j) of the Loan Agreement. (b) Upon the occurrence of such an Event of Default, the entire unpaid principal balance, together with all interest thereon, and together with all other sums then payable under this Note and the Deed of Trust shall at the option of the Holder become immediately due and payable upon written notice by the Holder to the Borrower without further demand.
(c) The failure to exercise the remedy set forth in subsection 7(b) above or any other remedy provided by law upon the occurrence of one or more of the foregoing Events of Default shall not constitute a waiver of the right to exercise any remedy at any subsequent time in respect to the same or any other Event of Default.
The acceptance by the Holder hereof of any payment which is less than the total of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the foregoing remedies or options at that time or at any subsequent time, or nullify any prior exercise of any such remedy or option, without the express consent of the Holder, except as and to the extent otherwise provided by law.
8. Prepayment. This Note may be prepaid at any time without premium or penalty, provided all interest due on the principal being prepaid will be due at time of prepayment. Notwithstanding any prepayment of this Note, Borrower shall abide by the terms and conditions of the Regulatory Agreement (as defined in the Loan Agreement) for the duration of the entire term of the Regulatory Agreement as defined in the Loan Agreement).
9. Waivers.
(a) The Borrower hereby waives diligence, presentment, protest and demand, and notice of protest, notice of demand, and notice of dishonor of this Note.
The Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time, and that the Holder may accept further security or release any security for this Note, all without in any way affecting the liability of the Borrower. (b) No extension of time for payment of this Note or any installment hereof made by agreement by the Holder with any person now or hereafter liable for payment of this Note shall operate to release, discharge, modify, change or affect the original liability of the Borrower under this Note, either in whole or in part.
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(c) The obligations of the Borrower under this Note shall be absolute and the Borrower waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reason whatsoever. (d) Failure of Holder to assert any right under this Note shall not be deemed a waiver of such right.
10. Nonrecourse Obligation. The Loan is a nonrecourse obligation of the Borrower. Neither the Borrower nor any other party shall have any personal liability for repayment of the Loan. The sole recourse of Holder under the Loan documents for repayment of the Loan shall be the exercise of its rights against the Property and related security under the Deed of Trust.
11. California Law. This Note and the legality, validity and performance of the terms hereof shall be governed by, enforced, determined, and construed in accordance with the laws of the State of California.
12. Attorney's Fees. Borrower agrees to pay all costs of collection when incurred, including without limitation, reasonable attorney's fees and expenses (whether or not suit is filed hereon) and court costs. Attorneys' fees for in-house City Attorney staff of Holder, if awarded, shall be calculated at the market rate. Such costs shall be added to the balance of principal then due.
13. Binding Obligation. This Note shall be binding upon Borrower and Borrower's heirs, legal representatives, successors, and assigns.
14. Time is of Essence. The times for the performance of any obligations hereunder shall be strictly construed, time being of the essence.
15. Entire Understanding. This Note, together with the Loan Agreement, the Deed of Trust, and any other applicable Loan Document, contain the entire agreement between the Borrower and the Holder as to the Loan.
16. Notices. All notices given under this Note shall be made inwriting and shall be deemed received when personally delivered, received by the United States Mail, certified, return receipt requested, addressed as follows:
To Borrower: Sun Rose Housing, LLC
604 Pearl Street
Monterey, California 93940
Attn: Executive Director
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To Holder: City of Salinas
Community Development Department, Housing
Division
65 W. Alisal Street, 2nd Floor
Salinas, California 93901
Attn: Community Development Director
With a copy to: City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
17. Amendment or Modification. The terms of this Note may only be amended or modified by a written agreement executed by Borrower and Holder.
[Signature on following page]
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IN WITNESS WHEREOF, the Borrower executed this Note as of the date first written above.
BORROWER:
Sun Rose Housing, LLC,
a California limited liability company
By: Interim, Inc., a California nonprofit public
benefit corporation,
its sole member/manager
By: _______________________
Barbara L. Mitchell,
Executive Director
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EXHIBIT D
FORM OF REGULATORY AGREEMENT
[on following pages]
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Salinas
Community Development Department
Housing Division
65 W. Alisal Street, 2nd Floor
Salinas, California 93901
Exempt from recording fees
(Govt. Code §27383) and from
Documentary Transfer Tax
(Rev. and Taxation Code § 11922)
______________________________________________________________________ APN: 002-354-027
REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
(Housing Successor LMIHAF Funds Loan – Sun Rose Apartments)
This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement") is made and entered into as of December __, 2022, by and between the City of Salinas, a charter city and municipal corporation (the "City"), and Sun Rose Housing, LLC, a California limited liability company (the "Owner").
RECITALS
A. These Recitals refer to and utilize certain capitalized terms that are defined in Section 1.1 of this Agreement. The Parties intend to refer to those definitions in connection with the use of capitalized terms in these Recitals.
B. In accordance with California Health & Safety Code Section 34172, the Dissolved RDA was dissolved as of February 1, 2012. The Salinas City Council approved Resolution No. 20142 on January 10, 2012 electing to become the housing successor to the Dissolved RDA and to retain the housing assets and functions performed by the Dissolved RDA in accordance with Health and Safety Code Section 34176.
C. The City holds funds generated by housing assets of the Dissolved RDA, acting as the housing successor to the Dissolved RDA , and which are required to be deposited into the Low and Moderate Income Housing Asset Fund and used in accordance with Health and Safety Code Section 34176.1 (the "Housing Asset Fund").
The City is authorized to enter into this Agreement pursuant to California Health & Safety Code Section 34176(a)(1).
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D. The Owner owns certain real property loc ated at 439 Soledad Street, Salinas, California (the " Property") on which the Owner is replacing the existing 8 - bedroom transitional housing dwelling with a new 8 -bedroom transitional housing unit , and an additional 9 units of affordable housing all for persons with psychiatric disabilities who are homeless, chronically homeless, or at -risk of homelessness, and 1 manager's unit (the "Development").
E. The Owner has requested a loan of Five Hundred Thousand Dollars ($500,000) from the Housing Asset Fund to cover cost overruns associated with the construction of the Development.
F. In consideration of the loan of funds from the Housing Asset Fund by the City to the Owner, Owner has agreed to maintain five (5) of the Development's Units as affordable to Extremely Low Income Households for the Term of this Regulatory Agreement and to further agree to observe all the terms and conditions set forth below.
A total of five (5) Units shall be restricted under this Agreement.
G. To ensure that the Development will be used and operated in accordance with these conditions and restrictions, the City and the Owner wish to enter into this Regulatory Agreement.
THEREFORE, the City and the Owner hereby agree as follows:
ARTICLE 1.
DEFINITIONS
Section 1.1 Definitions. When used in this Agreement, the following terms shall have the respective meanings assigned to them in this Article 1. (a) "Adjusted Income" means the total anticipated annual income of all persons in a household, as calculated in accordance with 25 California Code of Regulations Section 6914. In the event that no such program exists, the City shall provide the Owner with a reasonably similar method of calculation of adjusted income as provided in said Section 6914.
(b) "Agreement" means this Regulatory Agreement and Declaration of Restrictive Covenants.
(c) "Area Median Income" means area median income adjusted by actual household size for households in the most recent Monterey County median family income published by HCD, available at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income- limits.shtml. If such income determinations are no longer published, or are not updated for a period of at least eighteen (18) months, then the City shall provide the Owner with other income determinations which are reasonably similar with respect to methods of calculation to those previously published by HCD.
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(d) "City" means the City of Salinas, California, a charter city and municipal corporation.
(e) "Closing Date" means the date of recordation of this Agreement. (f) "Extremely Low Income" means an Adjusted Income that is less than or equal to the maximum income for extremely low income households, adjusted for actual household size, as calculated pursuant to Health and Safety Code Section 50106 and published annually for Monterey County by HCD in Title 25, Section 6932, California Code of Regulations, or successor provision. (g) "Extremely Low-Income Household" means a household with an Adjusted Income that does not exceed Extremely Low Income. (h) "Extremely Low-Income Rent" means the maximum allowable Rent for an Extremely Low-Income Unit pursuant to Section 2.2(a) below. (i) "Extremely Low-Income Units" means the Units in the Development to be made available and occupied by Extremely Low-Income Households pursuant to Section 2.1 of this Agreement.
(j) "HCD" means the California Department of Housing and Community Development.
(k) "Management Agent" means the experienced management agent selected by the Owner for the management of the Development pursuant to Section 5.2 of this Agreement.
(l) "Owner" means Sun Rose Housing, LLC, a California limited liability company, and any of its permitted successors or assigns. (m) "Development" means the affordable rental housing located at 439 Soledad Street in the City of Salinas where the Owner is replacing the existing 8- bedroom transitional housing dwelling with a new 8-bedroom transitional housing unit, and an additional 9 units of affordable housing all for persons with psychiatric disabilities who are homeless, chronically homeless, or at-risk of homelessness, and 1 manager's unit, as well as all recreational and common area improvements, landscaping, parking and related improvements, as the same may from time to time exist on the Property. (n) "Property" means the real property described in Exhibit A attached hereto and incorporated herein.
(o) "Rent" means the total monthly payment by the tenant of a Restricted Unit for the following: use and occupancy of the Restricted Unit, land and associated facilities, including parking (other than parking services acquired by the tenant on an optional basis); any separately charged fees assessed by the Owner which are required of all tenants, other than security deposits; the cost of an adequate level of service for utilities paid by the tenant, including garbage collection, sewer, water, D-5
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electricity, gas and other heating, cooking and refrigeration fuel, but not telephone service; any other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than the Owner, and paid by the tenant.
(p) "Rent Subsidies" shall have the meaning set forth in Section 2.2(c).
(q) "Restricted Units" means the five (5) Extremely Low Income Units restricted under this Agreement.
(r) "Term" means the period of time beginning on the Closing Date and ending on the later of the date fifty-five (55) years after issuance of a certificate of occupancy for the Development or December 31, 2078.
(s) "Units" means the residential rental units to be developed by the Owner on the Property.
ARTICLE 2.
AFFORDABILITY COVENANTS
Section 2.1 Occupancy Requirement. Five (5) of the Units shall be rented to and occupied by or, if vacant, available for occupancy by households as follows:
Unit Type
Extremely
Low
Income
Total
Studio (non-transitional unit) 2 2
1 Bedroom (non-transitional unit) 3 3
Total 5 5
Section 2.2 Allowable Rent.
(a) Subject to Section 2.3 below, the Rent charged to tenants of the Extremely Low Income Units shall not exceed 30% of 30% of Area Median Income levels for the applicable Unit size, as published annually by HCD, including a reasonable utility allowance set by the County Housing Authority. (b) At least sixty (60) calendar days prior to increasing the Rent on any Restricted Unit, the Owner shall submit to the City a schedule of proposed Rent increases. Households occupying Restricted Units shall be given at least thirty (30) days written notice prior to any increase in the Rent. The Rent may only be increased one time per year and the Rent level following an increase, or upon a new occupancy, shall not exceed the Rent level set forth in subsection (a).
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(c) The Development may receive Development Based Section 8 vouchers or other rental subsidies (the "Rental Subsidies"). In the event of any conflict among this Agreement or the program rules governing the Rental Subsidies regarding Rent increase, the program rules governing Rent increases for the Rental Subsidies program shall prevail. The Owner shall in good faith apply for and accept all renewals available of the Rental Subsidies. If, during the Term, any change in federal law occurs or any action (or inaction) by Congress or any federal or State agency occurs, which results in a reduction, termination or nonrenewal of the Rental Subsidies, such that the rental subsidy projected on the budget for the Development is reduced or no longer available, the Owner shall notify City in writing immediately and shall make every effort to find alternative subsidies or financing structures that would maintain the occupancy and rent restrictions on Restricted Units as set forth in this Agreement. Upon termination of the Rental Subsidies, the Owner may request to increase the Rent on one or more of the Extremely Low Income Units if Owner demonstrates to the satisfaction of the City that such rental increase is necessary to maintain the Development’s continued fiscal integrity due to factors that could not be reasonably foreseen and no alternative Rental Subsidies are available, the City shall agree to such rental increase.
Section 2.3 Increased Income of Tenant Households.
(a) Non-Qualifying Household. If upon recertification of income for a tenant of an Extremely Low Income Unit, the Owner determines that tenant's Adjusted Income has increased and exceeds the qualifying income for an Extremely Low Income Household, the tenant may continue to occupy the Unit. Upon expiration of the tenant's lease, such tenant's monthly Rent may be increased to one-twelfth of 30% of the actual Adjusted Income of the tenant upon sixty (60) days written notice to the tenant, and the Owner shall rent the next available Unit to an Extremely Low Income Household to comply with the requirements of Section 2.1 above.
(b) Termination of Occupancy. Upon termination of occupancy an Extremely Low Income Unit by a tenant, such Unit shall be deemed to be continuously occupied by an Extremely Low Income Household until such Unit is reoccupied, at which time the income character of the Unit (e.g., Extremely Low Income) shall be redetermined.
Section 2.4 Lease Provisions. The Owner shall include in leases or rental agreements for all of the Restricted Units provisions which authorize the Owner to immediately terminate the tenancy of any household if one or more of its members misrepresents any fact material to that household's qualification to occupy a Restricted Unit. Each lease or rental agreement of a Restricted Unit shall also provide that the household is subject to annual certification in accordance with Section 4.1 below, and that, if the household's income increases above the applicable limits for household income which initially qualified that household for the Restricted Unit, such household's Rent will be subject to an increase.
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ARTICLE 3.
OPERATION AND MAINTENANCE
OF THE DEVELOPMENT
Section 3.1 Use as Rental Housing. The Owner shall operate the Development only as rental housing. No part of the Development shall be operated as transient housing.
Section 3.2 Compliance with Loan Documents. The Owner shall comply with all the terms and provisions of any document relating to any loan for the Development.
Section 3.3 Condominium Conversion. The Owner shall not convert Units in the Development to condominium or cooperative ownership or sell condominium or cooperative conversion rights in the Development or the Property during the Term of this Agreement.
Section 3.4 Taxes and Assessments. The Owner shall pay any real and personal property taxes, assessments, and charges and all franchise, income, employment, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Property; provided, however, that the Owner shall have the right to contest in good faith, any such taxes, assessments, or charges. In the event the Owner exercises its right to contest any tax, assessment, or charge against it, the Owner, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges, and interest.
Section 3.5 Nondiscrimination. All of the Units shall be available for occupancy on a continuous basis to members of the general public, subject to income eligibility criteria. Except as permitted or required by Owner's lenders and only in accordance with all applicable laws, the Owner shall not give preference to any particular class or group of persons in renting the Units. There shall be no discrimination against or segregation of a person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 and Section 12955.2 of the Government Code, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Property.
With respect to familial status, the third sentence of this Section 3.5 shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the this Section 3.5 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to this Section 3.5. All deeds, leases or contracts made or entered into by Owner as to the Units or the Development or portion thereof, shall D-8
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contain covenants concerning discrimination as prescribed by the Loan Agreement.
The Owner shall include a statement in all advertisements, notices, and signs for the availability of the Units for rent to the effect that the Owner is an Equal Housing Opportunity Provider.
Nothing in this Section 3.5 is intended to require the Owner to change the character, design, use, or operation of the Development from, or to require the Owner to obtain licenses or permits other than those required for, a rental housing development.
ARTICLE 4.
INCOME CERTIFICATION AND REPORTING
Section 4.1 Income Certification. The Owner shall obtain, complete, and maintain on file, immediately prior to initial occupancy of each Restricted Unit and annually thereafter, income certifications from each tenant household renting any of the Restricted Units. The Owner shall make a good faith effort to verify that the income provided by an applicant seeking to occupy a Restricted Unit or a household then occupying a Restricted Unit in an income certification is accurate by taking one or more of the following steps as a part of the verification process: (a) obtain a pay stub for the most recent pay period; (b) obtain a W-2 form or an income tax return for the most recent tax year; (c) conduct a credit agency or similar search; (d) obtain an income verification form from the applicant's current employer; (e) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies; or (f) if the applicant is unemployed and has no such income verification information, obtain another form of independent verification. Copies of tenant income certifications shall be available to the City upon request.
Section 4.2 Annual Report to the City. On March 1st of each year commencing on the first March 1st after the City's issuance of a Certificate of Occupancy for the Development, the Owner shall submit a report to the City, in a form reasonably approved by the City. Such report shall include for each Restricted Unit, the Rent and the income and size of the household occupying the Restricted Unit. The report shall also state the date the tenancy commenced for each Restricted Unit and such other information as the City may be required by law to obtain.
Section 4.3 Additional Information. The Owner shall provide any additional information reasonably requested by the City. The City shall have the right to examine and make copies of all books, records or other documents of the Owner which pertain to any Unit during normal business hours.
Section 4.4 Records. The Owner shall maintain complete, accurate and current records pertaining to the Units, and shall permit any duly authorized representative of the City (during business hours and upon not less than a seventy-two (72) hour notice) to inspect records, including records pertaining to income and household size of tenant households of the Restricted Units.
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ARTICLE 5.
PROPERTY MANAGEMENT
Section 5.1 Management Responsibilities. The Owner is specifically responsible, subject to its obligations herein, for all management functions with respect to the Development, including without limitation the selection of tenants, certification and recertification of household size and income of tenants in Restricted Units, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The City shall have no responsibility over management of the Development.
Section 5.2 Management Agent; Budget; Periodic Reports. (a) Management Agent. The Development shall at all times be managed by an experienced management agent (the "Management Agent") reasonably acceptable to the City, with demonstrated ability to operate affordable rental housing complexes similar to the Development in a manner that will provide decent, safe, and sanitary housing and a well-maintained complex. The Owner shall submit for the City's approval the identity of any proposed Management Agent. The Owner shall also submit such additional information about the background, experience, and financial condition of any proposed Management Agent as is reasonably necessary for the City to determine whether the proposed Management Agent meets the standard for a qualified Management Agent set forth above. If the proposed Management Agent meets the standard for a qualified Management Agent set forth above, the City shall approve the proposed Management Agent by notifying the Owner in writing. Unless the proposed Management Agent is disapproved by the City within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved. Interim, Inc. is hereby approved as the initial Management Agent of the property.
(b) Performance Review. Upon request of the City, the Owner shall cooperate with the City in the review of the management practices and financial status of the Development. The purpose of any requested review will be to enable the City to determine if the Development is being operated and managed in accordance with the requirements and standards of this Agreement.
(c) Annual Budget. The Owner shall provide the City for its review and approval, not later than thirty (30) days prior to commencement of each Fiscal Year, the annual budget for the upcoming Fiscal Year, which shall be in a form acceptable to the City. Unless the proposed annual budget, including without limitation, expenses for payroll, administration, property management costs, and replacement and operating reserves is disapproved by the City within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved.
Failure to comply with the provisions of this Section shall constitute a default under this Agreement, and the City may enforce this provision through any legal remedy available to it.
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(d) Development Reserves. The Owner shall maintain operating reserves and replacement reserves for the Development as required by other lenders or financing sources for the Development and as the Owner deems financially prudent. (e) Books, Records and Reports. The Owner shall provide the City, by May 1 of each Fiscal Year, a report showing the actual income and expenditures with respect to the Development for the immediately preceding Fiscal Year and the status of all reserve funds, including without limitation, an annual audited financial statement for the Development prepared by a Certified Public Accountant approved by the City. (f) Replacement of Management Agent. If, as a result of a periodic review, the City determines in its reasonable judgment that the Development is not being operated and managed in accordance with the requirements and standards of this Agreement, the City shall deliver notice to the Owner of its intention to cause replacement of the Management Agent and the reasons for such intention. Within fifteen (15) days of receipt by the Owner of such written notice, the City and the Owner shall meet in good faith to consider methods for improving the financial and operating status of the Development, including, without limitation, replacement of the Management Agent. If, after such meeting, the City elects to proceed with the replacement of the Management Agent, the City shall so notify the Owner in writing within fifteen (15) days following the meeting. Thereupon, the Owner shall promptly dismiss the Management Agent and appoint as the Management Agent a person or entity meeting the standards for a Management Agent set forth in subsection (a) above and approved by the City, pursuant to subsection (a) above. Any contract for the Management Agent of the Development entered into by the Owner shall be approved in advance by the City and shall provide that the contract can be terminated as set forth above. The Owner's failure to dismiss the Management Agent in accordance with this subsection (f) shall constitute a default under this Agreement, and the City may enforce this provision through any legal remedy available to it.
Section 5.3 Management Plan. The Owner shall submit to the City for review and approval a plan for managing the Development (the "Management Plan"). The Management Plan shall address in detail how the Owner and the Management Agent plan to manage and maintain the Development in detail, and shall include appropriate financial information and documentation. The Owner and the Management Agent shall abide by the terms of the Management Plan in managing and maintaining the Development.
Section 5.4 Maintenance and Security. The Owner shall, at its own expense, maintain the Development and the Property in good condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions for the benefit of the occupants. The Owner shall not commit or permit any waste on or to the Development or the Property, and shall prevent and/or rectify any physical deterioration of the Development or the Property. The Owner shall provide adequate ongoing security equipment and services for the Development and the Property, including at a minimum fencing around the Property prior to and during construction. The Owner shall maintain D-11
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the Development and the Property in conformance with all applicable state, federal, and local laws, ordinances, codes, and regulations and the Management Plan.
Section 5.5 Insurance Coverage. The Owner shall cause to have in full force and effect during the Term of this Agreement insurance coverage as required by this the Loan Agreement.
Section 5.6 Property Damage or Destruction. If any building or improvements erected by the Owner on the Property shall be damaged or destroyed by an insurable cause, the Owner shall, at its own cost and expense, but subject to the extent and availability of sufficient insurance proceeds and other lender requirements, diligently repair or restore the Property to its pre-damage or destruction condition. Such work or repair shall be commenced within one hundred twenty (120) days after the damage or loss occurs and shall be completed within one (1) year thereafter. All insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration and, if such insurance proceeds shall be insufficient for such purpose.
Section 5.7 Hazardous Materials. During the Term of this Agreement, the Owner shall comply with all of the obligations with respect to Hazardous Materials in the Loan Agreement.
ARTICLE 6.
MISCELLANEOUS
Section 6.1 Term. The provisions of this Agreement shall apply to the Property for the entire Term. This Agreement shall bind any successor, heir or assign of the Owner, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, with or without the approval of the City, except as expressly released by the City.
Section 6.2 Subordination. This Agreement shall be subordinated in priority only to the liens and encumbrances approved by the City or otherwise approved in writing by the City in its reasonable discretion as provided in the Loan Agreement.
Section 6.3 Transfer and Encumbrance of Property. Except as otherwise provided herein or the Loan Agreement, the Owner shall not make or permit any sale, assignment, conveyance, lease (other than the rental of the Units to eligible tenant occupants), or transfer of the Property or any part thereof, without the prior written consent of the City during the Term of this Agreement.
Section 6.4 Non-Liability of Officials, Employees and Agents. The City shall not be personally liable to the Owner for any obligation created under the terms of this Agreement except in the case of actual fraud, willful misconduct or sole gross negligence by such person.
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Section 6.5 Indemnity. Notwithstanding the insurance coverage required herein, the Owner shall indemnify and hold the City free and harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including without limitation attorneys' fees) which the City may incur as a direct or indirect consequence of (a) the Owner's negligent or willful failure to perform any obligations as and when required by this Agreement; (b) any failure of any of the Owner's representations or warranties to be true and complete; or (c) any negligent or willful act or omission by the Owner or any contractor, subcontractor, management agent, or supplier with respect to the Development or the Property, except where such losses are caused by the sole gross negligence, or willful misconduct of the City. The Owner shall pay immediately upon the City's demand any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend the City in any court action, administrative action, or other proceeding brought by any third party arising from the Development or the Property. The Owner's duty to indemnify the City for acts, failures to act, or misrepresentations occurring during the Term shall survive the Term of this Agreement.
Section 6.6 Covenants to Run With the Land. The City and the Owner hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the City expressly releases such conveyed portion of the Property from the requirements of this Agreement. (a) Enforcement. If the Owner fails to perform any obligation under this Agreement, and fails to cure the default within thirty (30) days after the City has notified the Owner in writing of the default or, if the default cannot be cured within thirty (30) days, fails to commence to cure within thirty (30) days and thereafter diligently pursue such cure, the City shall have the right to enforce this Agreement by any or all remedies provided at law or in equity, including without limitation bringing an action at law or in equity to compel the Owner's performance of its obligations under this Agreement, and/or for damages.
Section 6.7 Attorneys' Fees and Costs. In any action brought to enforce this Agreement, the prevailing party shall be entitled to all costs and expenses of suit, including attorneys' fees. Attorneys' fees for in-house City Attorney staff, if awarded, shall be calculated at the market rate. This Section 6.7 shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute.
Section 6.8 Recording and Filing. The City and the Owner shall cause this Agreement, and all amendments and supplements to it, to be recorded in the Official Records of the County of Monterey.
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Section 6.9 Governing Law. This Agreement shall be governed by the laws of the State of California, except those provisions preempted by federal law.
Section 6.10 Amendments. This Agreement may be amended only if approved by the City and only by a written instrument executed by all the parties hereto or their successors in title, and duly recorded in the real property records of the County of Monterey, California.
Section 6.11 Notices. All notices given or certificates delivered under this Agreement shall be deemed received on the delivery or refusal date shown on the delivery receipt, if: (a) personally delivered by a commercial service which furnishes signed receipts of delivery or (b) mailed by certified mail, return receipt requested, postage prepaid, addressed as follows:
City: City of Salinas
200 Lincoln Avenue
Salinas, CA 93901
Attention: City Manager
With a copy to: City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, CA 93901
Owner: Sun Rose Housing, LLC
604 Pearl Street
Monterey, California 93940
Attn: Executive Director
Any of the parties may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or communications shall be sent.
Section 6.12 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be affected or impaired thereby.
Section 6.13 Regulatory Agreement Controls. In the event that any provisions of the Agreement and other agreements on the Property conflict, the terms of the most restrictive agreement shall control and/or regulate the property.
Section 6.14 Relationship of Parties. The relationship of the Owner and the City during the Term of this Agreement shall not be construed as a joint venture, equity venture, or partnership. The City does not undertake and does not assume any responsibility or duty to the Owner or any third party with respect to the operation of the D-14
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Development or the actions of the Owner. The Owner shall have no authority to act as an agent of the City or to bind the City to any obligation.
Section 6.15 Waiver. Any waiver by the City of any obligation in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to take action on any breach or default of the Owner or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to the Owner to perform any obligation under this Agreement shall not operate as a waiver or release from any of its other obligations under this Agreement. Consent by the City to any act or omission by the Owner shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.
Section 6.16 Other Agreements. The Owner represents that it has not entered into any agreements that would restrict or compromise its ability to comply with the terms of this Agreement.
Section 6.17 Consent and Approvals. Any consent or approval by the City or the Owner required under this Agreement shall not be unreasonably delayed or withheld, unless otherwise provided in this Agreement. Any approval required under this Agreement shall be in writing and executed by an authorized representative of the party granting the approval.
Section 6.18 City Actions. Except where approval by the City Council is expressly required in this Agreement, all references in this Agreement to City action (including approvals, consents or extensions of time) shall mean action by the City Manager of the City or the City Manager's designee.
Section 6.19 Counterparts. This Agreement may be executed in counterparts which shall together constitute one document.
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IN WITNESS WHEREOF, the City and the Owner have executed this Agreement by duly authorized representatives, all on the date first written above.
CITY:
CITY OF SALINAS, a California charter city and
municipal corporation
By: __________________________________
Steven S. Carrigan
City Manager
OWNER:
SUN ROSE HOUSING, LLC,
a California limited liability company
By: Interim, Inc., a California nonprofit public
benefit corporation,
its sole member/manager
By: _______________________
Barbara L. Mitchell,
Executive Director
[Signatures to be Acknowledged by Notary]
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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________
Name: ____________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________
Name: ___________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SALINAS,
COUNTY OF MONTEREY, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
COMMENCING AT THE PO INT OF THE BEND IN S OLEDAD STREET ON THE
EASTERN SIDE THEREOF AND IN THE CENTER OF THE SA NJON DEL ALISAL,
RUNNING THENCE SOUTH ERLY ON THE EASTERN SIDE OF SOLEDAD STRE ET TO THE SOUTHERN LINE OF LOT 2, IN BLOCK 5, AS SHOWN ON THE M AP HEREINAFTER REFERRED TO; THENCE AT RIGHT ANGLES EASTERLY 140 FEET,
THENCE AT RIGHT ANGLES NORTHERLY TO THE CENTER OF SANJON AND THEN
IN THE CENTER OF SAID SANJON TO THE TO THE POINT OF BEGINNING, BEING LOTS 1 AND 2, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FI LED ON JUNE 7, 1902, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA, IN BOOK 1, CITIES AND TOWNS, AT PAGE 28 THEREIN.
PARCEL 2:
THAT PART OF LOT 3, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FILED ON JUNE 7, 1902, IN THE OFFICE OF THE
COUNTY RECORDER OF T HE COUNTY OF MONTERE Y, STATE OF CALIFORN IA, IN BOOK 1, CITIES AN D TOWNS, AT PAGE 28 THEREIN, LYING NORTH ERLY OF
THE LINE COMMENCING AT A POINT ON THE EA STERN SIDE OF SOLEDA D STREET 280 2/5 FEET FROM THE NORTHERN CURB LINE OF JOHN STREET AND
RUNNING EASTERLY ON A LINE PARALLEL TO THE SOUTHERN LINE OF SAID LOT 3, TO THE EASTERN LINE OF SAID LOT 3, BEING ALL OF SAID LOT, EXCEPT THAT PORTION THEREOF CONVEYED BY C.F. LACEY, ET UX, TO E.M. STOLP BY DEED DATED JULY 8, 1919 AND RECORDED IN VOLUME 164 OF DEEDS AT PAGE 273, IN
THE OFFICE OF THE CO UNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA.
APN: 002-354-027
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EXHIBIT E
FORM OF NOTICE OF AFFORDABILITY RESTRICTIONS
[on following pages]
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL, TO:
City of Salinas
Community Development Department
Housing Division
65 W. Alisal Street, 2nd Floor
Salinas, CA 93901
Exempt from recording fees
(Govt. Code §27383) and from
Documentary Transfer Tax
(Rev. and Taxation Code § 11922)
(Space above for Recorder's Use)
APN: 002-354-027
NOTICE OF AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
NOTICE IS HEREBY GIVEN, that as of December __, 2022, the City of Salinas, a charter city and municipal corporation (the "City"), to carry out certain obligations under the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), has required Sun Rose Housing, LLC, a California limited liability company (the "Owner"), to enter into certain affordability covenants and restrictions entitled, Regulatory Agreement and Declaration of Restrictive Covenants (the "Restrictions"), with reference to a housing development (the "Development") situated on that certain real property (the "Property"), located in the City of Salinas, and further described in Exhibit A, incorporated herein by reference. The street address of the Property is 439 Soledad Street, Salinas, California and the assessor’s parcel number for the Property is 002-354-027. The affordability covenants and restrictions contained in the Restrictions include without limitation and as further described in the Restrictions:
1. Five (5) units in the Development are restricted for occupancy by extremely low income households, at rents affordable to extremely low
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income households.
2. Additional requirements concerning operation, management, and maintenance of the Development are also imposed by the Restrictions.
In the event of any conflict between this Notice of Affordability Restrictions on Transfer of Property (the "Notice") and the Restrictions, the terms of the Restrictions shall prevail.
The Restrictions were recorded concurrently herewith in the Official Records of Monterey County, and shall remain in effect until the later of the date that is fifty-five (55) years after the issuance of a Certificate of Occupancy or December 31, 2078.
This Notice is being recorded and filed by the City in compliance with Health and Safety Code Sections 33334.3(f)(3) and (4), as amended effective this date, and shall be indexed against the City and the Owner.
[Signatures on Following Pages]
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IN WITNESS WHEREOF, the parties have executed this Notice of Affordability Restrictions on Transfer of Property on or as of the date first written above.
OWNER:
SUN ROSE HOUSING, LLC,
a California limited liability company
By: Interim, Inc., a California nonprofit
public benefit corporation,
its sole member/manager
By: _______________________
Barbara L. Mitchell,
Executive Director
CITY:
CITY OF SALINAS, a California charter
city and municipal corporation
By: ___________________________
Steven S. Carrigan
City Manager
[Signatures to be Acknowledged by Notary]
1378\13\2280265.2
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________
Name: ___________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
1378\13\2280265.2
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________
Name: __________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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EXHIBIT A
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY
OF SALINAS, COUNTY OF MONTEREY, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
COMMENCING AT THE POINT OF THE BEND IN SOLEDAD STREET ON
THE EASTERN SIDE THEREOF AND IN THE CENTER OF THE SANJON
DEL ALISAL, RUNNING THENCE SOUTHERLY ON THE EASTERN SIDE OF SOLEDAD STREET TO THE SOUTHERN LINE OF LOT 2, IN BLOCK 5, AS SHOWN ON THE M AP HEREINAFTER REFER RED TO; THENCE AT RIGHT ANGLES EASTERLY 140 FEET, THENCE AT RIGHT ANGLES
NORTHERLY TO THE CENTER OF SANJON AND THEN IN THE CENTER
OF SAID SANJON TO THE TO THE POINT OF BEGINNING, BEING LOTS 1 AND 2, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S. SPRING'S ADDITION TO SALINAS CITY", FILED ON JUNE 7, 1902, IN THE OFFICE
OF THE COUNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA, IN BO OK 1, CITIES AND TOW NS, AT PAGE 28 THEREIN.
PARCEL 2:
THAT PART OF LOT 3, IN BLOCK 5, AS SHOWN ON THE MAP OF "F.S.
SPRING'S ADDITION TO SALINAS CITY", FILE D ON JUNE 7, 1902, I N
THE OFFICE OF THE CO UNTY RECORDER OF THE COUNTY OF
MONTEREY, STATE OF CALIFORNIA, IN BOOK 1, CITIES AND TOWNS, AT PAGE 28 THEREIN, LYING NORTHERLY OF T HE LINE
COMMENCING AT A POIN T ON THE EASTERN SID E OF SOLEDAD
STREET 280 2/5 FEET FROM THE NORTHERN CU RB LINE OF JOHN
STREET AND RUNNING E ASTERLY ON A LINE PARALLE L TO THE SOUTHERN LINE OF SAID LOT 3, TO THE EASTERN LINE OF SAID LOT 3, BEING ALL OF SAID LOT, EXCEPT THAT PO RTION THEREOF CONVEYED BY C.F. LAC EY, ET UX, TO E.M. S TOLP BY DEED DATED JULY 8, 1919 AND REC ORDED IN VOLUME 164 OF DEEDS AT P AGE 273, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF MONTEREY, STATE OF CALIFORNIA.
APN: 002-354-027
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-671, Version: 1
2022 Building Standards Codes and Local Amendments
Adopt an Ordinance adopting the 2022 California Building Standards Code along with the related local amendments.
City of Salinas Printed on 12/1/2022Page 1 of 1
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Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: NOVEMBER 23, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT & FIRE DEPARTMENTS
FROM: MEGAN HUNTER, DIRECTOR
SAMUEL KLEMEK, FIRE CHIEF
BY: MELISSA GUILFOYLE, ADMINISTRATIVE ANALYST
SKYLAR THORTON, BATALLION CHIEF/FIRE MARSHAL
LORENZO SANCHEZ, CODE ENFORCEMENT MANAGER
MICHAEL LOOMIS, ACTING BUILDING OFFICIAL
TITLE: AN ORDINANCE ADOPTING THE 2022 CALIFORNIA BUILDING
STANDARDS CODE AND LOCAL AMENDMENTS
RECOMMENDED MOTION:
A motion to adopt the 2022 California Building Standards Code along with the related local amendments.
EXECUTIVE SUMMARY:
Every three years, the City adopts the newest version of the California Building Standards Code to establish consistent minimum requirements to safeguard public health, safety, and general welfare attributed to the built environment. The California Building Standards Code includes multiple sections such as the Fire and California Green Building Standards Codes.
On November 5, 2019, the City adopted the California 2020 California Building Standards Code with local amendments, which took effect on January 1, 2020. This year, the California Building Standards Commission published the new California Building Standards Code on July 1, 2022.
This code is required to take effect on January 1, 2023. Jurisdictions are able to make amendments to th is code. For several cycles, the City has adopted modifications to the California Green Building Standards Code related to recycling of construction debris and to the Fire Code to address the unique local climatic, topographic, and geological conditions of Salinas.
BACKGROUND:
Every three years, the California Building Standards Commission publishe s the new California Building Standards Code in July, which is supposed to take effect on January 1st on the subsequent year. The City last adopted the new code cycle on No vember 5, 2019 for the 2020 California Building Standards Code. At that time, the City adopted local amendments to the California Green Building Standards Code related to construction debris recycling requirements in . The Fire Code Page | 2
was also amended to reflect the unique local climatic, topographic, and geological conditions of Salinas. In addition to the California Building Standards Code , t he City adopted the 2018 International Property Maintenance Code (IPMC) , which i s the basis for administration of code enforcement requirements.
DISCUSSION:
Every three years, the California Building Standards Commission adopts specific language, codes and building standards applicable throughout California in order to establish consistent minimum requirements to safeguard public health, safety, and general welfare attributed to the built environment. The most recent documents were published and adopted by the Building Standards Commission on July 1, 2022 and will become State law on January 1, 2023.
In addition to the California Building Standards Code, the City is adopting the newest cycle of the International Property Maintenance Code (IPMC), which was published in 2021. The 2021 IPMC is the basis for administration of code e nforcement requirements , establishing minimum maintenance standards for all existing facilities related to e quipment, light, ventilation, heating, sanitation, and fire safety. The IPMC also assigns responsibility for this code to owners, regulates the use of existing structures, and provides administration, enforcement and penalties.
With the adoption of the Building Standards by reference, the City may amend the codes as reasonably necessary based upon climactic, topographical, or geological conditions as outlined in Health and Safety Code Section 18941.5 for Building Standards Law, Health and Safety Code Section 17958 for State Housing Law, or Health and Safety Code Section 13869.7 for Fire Protection Districts.
The City of Salinas’ local amendments to the codes are carried over from the previous code cycle amendments and reflect changes within the California Green Building Standards and Fire Codes.
The California Green Building Standards Code is amended to address prior Council direction regarding the amount of construction and demolition waste which is to be recycled or reused. The Fire Code is being amended to reflect the local experience, equipment and staffing required by the Fire Department.
To implement these codes and amendments, the City adopts an ordinance that codifies them in Chapters 9 and 13 of the Salinas Municipal Co de for the regulation and the governance of the conditions and maintenance of all property, buildings, and structures; for the standards for supplied utilities and facilities and other physical things and conditions essential to ensure that structures are safe, sanitary, and fit for occupation and use; for the condemnation of buildings and structures unfit for human occupancy and use and the demolition of structures; and for the issuance of permits and the collection of fees.
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).
In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to Page | 3
activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This report supports the City of Salinas Strategic Plan goals and Objectives for Infrastructure and Environmental Sustainability, Public Safety, and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The report was collaborated by and created by the Community Development and Fire.
FISCAL AND SUSTAINABILITY IMPACT:
Adoption of the 2022 California Building Standards Code will not have a fiscal impact on the City’s budget. Fees are collected to recover costs associated with plan check and inspection for all building permits.
ATTACHMENTS:
2022 California Building Standards Code Ordinance
Exhibit A: Fire Findings and Table
PowerPoint
ORDINANCE NO. (N.C.S.)
AN ORDINANCE ADOPTING THE 2022 BUILDING STANDARDS CODE AND
LOCAL AMENDMENTS
WHEREAS, the City of Salinas has adopted and codified Chapters 9 and 13 of the Municipal Code for the regulation and the governance of the conditions and maintenance of all property, buildings, and structures; for the standards for supplied utilities and facilitie s and other physical things and conditions essential to ensure that structures are safe, sanitary, and fit for occupation and use; for the condemnation of buildings and structures unfit for human occupancy and use and the demolition of structures; and for the issuance of permits and the collection of fees therefore; and
WHEREAS, every three years, the California Building Standards Commission adopts specific language, codes and building standards applicable throughout California to provide consistent minimum requirements to safeguard public health, safety, and general welfare attributed to the built environment; and
WHEREAS, on November 5, 2019, the City adopted the last code cycle, the 2020 California Building Standards Code with local amendments to the California Green Building Standards related to recycling of construction debris and to the Fire Code to address the unique local climatic, topographic, and geological conditions of Salinas;
WHEREAS, the California Building Standards Commission published the new California Building Standards Code on July 1, 2022; and
WHEREAS, amendments, additions, and deletions to the California Building Standards Code, adopted by a city pursuant to Health and Safety Code Section 18941.5 for Building Standards Law, Health and Safety Code Section 17958 for State Housing Law or Health and Safety Code Section 13869.7 for Fire Protection Districts, together with all applicable portions of the California Building Standards Code, become effective 180 days after publication or January 1, 2023; and
WHEREAS, California Health and Safety Code Section 18941.5 for Building Standards Law, Health and Safety Code Section 17958 for State Housing Law or Health and Safety Code Section 13869.7 for Fire Protection Districts authorize the City to adopt local changes and modifications to the California Building Standards Code when the City makes findings that the local changes and modifications are reasonably necessary because of local climactic, topographical, or geological conditions; and
WHEREAS, the Salinas City Council has made findings in support of the local changes and modifications set forth herein; and
WHEREAS, the City Council of the City of Salinas hereby finds and determines that the City is committed to continuing protecting the public health, safety, welfare and environment by compliance with AB 939, achieving a minimum of 50% reduction of tonnage going to landfills; and
WHEREAS, in order to meet the aforesaid mandate, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 and subsequent additions and amendments (codified at California Public Resou rces Code section 40000 et seq.) requires the City to promote the reduction of solid waste and reduce the stream of solid waste going to landfills through the preparation, adoption and implementation of source reduction and recycling elements; and
WHEREAS, failure to achieve reduction goals and implement diversion programs may subject the City to penalties of up to $10,000 per day; and
WHEREAS, the California Green Building Standards Code (Cal Green Code) requires 65% waste diversion from all new construction and demolition projects requiring building permits, as well as specific additions and remodels; and
WHEREAS, debris from demolition and construction of buildings represents a large portion of the volume of waste presently generated within the City, and much of said debris is particularly suitable for reuse; and
WHEREAS, the City's commitment to the reduction of waste and to compliance with State law requires the establishment of programs for recycling and salvaging construction and demolition materials and resulted in the passage of the Construction and Debris Ordinance, which was reaffirmed on November 5, 2019 with the adoption of the last code cycle in 2020; and
WHEREAS, the City Council continues to recognizes that requiring demolition and construction debris to be diverted from landfills and reused with adoption of the new 2022 code may in some respects add modestly to the cost of construction and demolition, but in other respects may make possible some cost recovery and cost reduction; and
WHEREAS, the City Council of the City of Salinas does herewith find that the City of Salinas has certain climatic, geologic, and topographical features that can have a deleterious effect on emergency services such as fire protection and emergency medical services; and
WHEREAS, the City Council of the City of Salinas finds that the modifications and changes to the 2022 California Fire Code are reasonably necessary because of the following local climatic, geological, and topographical conditions as identified in Attachment A; and
WHEREAS, certain amendments to the 2022 California Fire Code serve to mitigate to the extent possible said deleterious effects; and
WHEREAS, Section 50022.1 through 50022.10, inclusive, of the Government code and Sections 17958.7 and 18941.5 of the Health and Safety Code, provide authority for the adoption by reference of codes, or portion of such codes:
WHEREAS, the City Council held a duly noticed public hearing on December 6, 2022, where members of the public had an opportunity to c omment on the code adoption and the proposed local amendments thereto; and
WHEREAS, the City Council finds this ordinance to be exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because adoption of this ordinance has no potential to cause a significant adverse effect on the environment.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS AS FOLLOWS:
SECTION 1. Salinas City Code Chapter 9, Article I is hereby repealed in its entirety and replaced with the following:
Article I. California Building Standards Code
The City of Salinas adopts the 2022 edition of the California Code of Regulations, Title 24, also referred to as the California Building Standards Code. The standards incorporate 13 parts of the official triennial compilation and publication. The provisions of th e Standards Code apply to the regulation, construction, alteration, relocation, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal and demolition of every building or structure or any appurtenances connected or a ttached to such buildings or structures; the same is made a part hereof, as if fully set forth in this ordinance, with the additions, insertions, deletions, modifications and changes as more particularly set forth in this article; providing for the issuanc e of permits and collection of fees therefore; repealing ORDINANCE No. 2621 of the City of Salinas and all other parts of laws in conflict therewith.
Article I -A - California Administrative Code
Section 9-1. Adopted by reference.
The California Admin istrative Code, Part 1, 2022 edition is hereby adopted as the Administrative Code for the City of Salinas, in the State of California.
Article I -B - California Building Code - Volume 1 and 2
Section 9-2. Adopted by reference.
The California Building Code Volumes 1 and 2, 2022 edition, are hereby adopted as the Building Codes for the City of Salinas, in the State of California for regulating the construction, alteration, movement, enlargement, replacement, repair, equipment, used and occupancy, location, maintenance, removal and demolition of every building or structure or any appurtenances connected or attached to such buildings or structures.
Article I - C - California Residential Code
Section 9-3. Adopted by reference.
The California Residential Code, Part 2.5, 2022 edition is hereby adopted as the Residential Code for the City of Salinas, in the State of California for regulating the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal and demolition of every detached one-and two-family dwelling, townhouse not more than three stories above grade plane in height with a separate means of egress and structures accessory thereto throughout the State of California.
Article I -D - California Electric Code
Section 9-4. Adopted by reference.
The California Electric Code, Part 3, 2022 edition is hereby adopted as the Electric Code for the City of Salinas, in the State of California, for regulating the design, construction, quality of materials, erection, installation, alteration, repair, location, relocation, replacement, addition to, use or maintenance of electrical systems as herein provided; providing for the issuance of permits and collection of fees therefor; and the same is adopted and made a part hereof, as if fully set out in this ordinance, with the additions, insertions, deletions, modifications and changes, if any, as more particularly set forth in this article.
Article I -E - California Mechanical Code
Section 9-5. Adopted by reference.
The California Mechanical Code, Part 4, 2022 edition is hereby adopted as the Mechanical Code for the City of Salinas, in the State of California regulating and governing the design, construction, quality of materi als, erection, installation, alteration, repair, location, relocation, replacement, addition to, use or maintenance of mechanical systems as herein provided; providing for the issuance of permits and collection of fees therefore; and the same is made a part hereof, as if fully set forth in this ordinance, with the additions, insertions, deletions, modifications and changes, if any, as more particularly set forth in this article.
Article I -F - California Plumbing Code
Section 9-6. Adopted by reference.
The California Plumbing Code, Part 5, 2022 edition is hereby adopted as the Plumbing Code for the City of Salinas, in the State of California regulating and governing the design, construction, quality of materials, erection, installation, alteration, repai r, location, relocation, issuance of permit and collection of fees therefore; and the same is adopted and made a part hereof, as if fully set out in this ordinance, with the additions, insertions, deletions, modifications and changes, if any, as more particularly set forth in this article.
Article I -G - California Energy Code
Section 9-7. Adopted by reference.
The California Energy Code, Part 6, 2022 edition is hereby adopted as the Energy Code for the City of Salinas, in the state of California regulating and governing the design, construction, quality of materials, installation, alteration, repair, replacement, use or maintenance of energy conserving systems and components as herein provided; providing for the issuance of permits and collection of fees therefor; and the same is made a part hereof, as if fully set forth in this ordinance, with the additions, insertions, deletions, modifications and changes, if any, as more particularly set forth in this article.
Article I -H - California Historical Building Code
Section 9-8. Adopted by reference.
The California Historical Building Code, Part 8, 2022 edition is hereby adopted as the Historical Building Code for the City of Salinas, in the State of California regulating the preservation, restoration, rehabilitation, relocation or reconstruction of buildings or properties designated as qualified historical buildings or properties
Article I -I – California Fire Code
Section 9-9 – [Adopted.]
See Chapter 13, Article II
Article I -J - California Existing Building Code
Section 9-10. Adopted by reference.
The California Existing Building Code, Part 10, 2022 edition is hereby adopted as the Existing Building Code for the City of Salinas, in the State of California regulating the repair , alteration, change of occupancy, addition and relocation of existing buildings.
Article I -K - California Green Building Standards Code
Section 9-11. Adopted by reference.
The California Green Building Standards Code, Part 11, 2022 edition is hereby adopted as the Green Building Standards Code for the City of Salinas, in the state of California regulating and governing the design, construction, quality of materials, installation, alteration, repair, replacement, use or maintenance of energy conserving and green building systems and components as herein provided; providing for the issuance of permits and collection of fees therefore; and the same is made a part hereof, as if fully set forth in this ordinance, with the additions, insertions, deletions, modifications and changes, if any, as more particularly set forth in this article.
Section 9-11.1 Amendments to the California Green Building Standards Code.
The following changes and modifications are hereby made to Sections 4.408 and 5.408 of the California Green Building Code referenced in Section 9-11:
(a) Replace Sections 4.408 and 5.408 of the California Green Building Code with requirements of the "Ordinance of the City Council of the City of Salinas Establishing a Program to Require Deconstruction, Demolition and Construction Material Recovery and Diversion from Landfills" which is set forth in Section 9-11.2, et seq.:
Section 9-11.2- Definitions.
For purposes of this article the following definitions apply:
(a) "Bonafide processor/facility" means: A facility which recycles, composts or otherwise recovers materials or a re-use facility for which a permit has been issued by the Monterey County Integrated Waste Management Task Force.
A facility may be certified if the owner or operator of the facility s ubmits documentation satisfactory illustrating:
1. That the facility has obtained all applicable federal, state, and local permits, and is in full compliance with all applicable regulations; and
2. The percentage of incoming waste from construction, demolition and alteration activities that is diverted from landfill disposal meets the required minimum percentages set forth in this article; and
3. All loads are weighed by scale(s) certified as accurate by the county of Monterey, division of weights and measures.
(b) "Contractor" means any person or entity holding, or required to hold, a contractor's license of any type under the laws of the state of California, or who performs (whether as contractor, subcontractor or owner -builder) any construction, demolition, remode ling, or landscaping service relating to buildings or accessory structures in the city of Salinas.
(c) "Construction" means all building, landscaping, remodeling, addition, removal or destruction involving the use or disposal of designated recyclable and reu sable materials as defined below.
(d) "Construction and demolition debris" or "C&D debris" means)" means recyclable and non- recyclable waste building materials, packaging and rubble resulting from construction, remodeling, repair and demolition operations on pavements, foundations, houses, commercial buildings and other structures, and includes mixed waste, with more specific definitions for the purposes of this chapter, as follows:
1. Discarded materials generally considered to be not water soluble and non-hazardous in nature, including but not limited to steel, glass, brick, concrete, asphalt material, pipe, gypsum, wallboard, and lumber from the deconstruction, demolition and construction of a structure as part of a construction or demolition project or from the renovation of a structure and/or landscaping, and including rocks, soils, tree remains, trees, and other vegetative matter that normally results from land clearing, landscaping and development operations for a construction project.
2. Clean cardboard, paper, plastic, wood, and metal scraps from any construction and/or landscape project.
3. Non-construction and demolition debris wood scraps.
4. Non-hazardous wastes that are generated at construction or demolition projects provided such amounts are consistent with best management practices of the industry; hazardous wastes such as materials contaminated with asbestos and lead -based paint are specifically excluded from C&D debris.
5. Mixing of construction and demolition debris with other types of solid waste will not be classified as material recovery for C&D debris and will be charged as solid waste.
(e) "Covered project" means any construction, demolition or renovation project that requires a permit and is subject to the diversion and reporting requirements set forth in this article, except as defined in Section 9-11.8.
(f) "Demolition/deconstruction" means the removal or destruction involving the use or disposal of designated recovered and reusable materials as defined below.
(g) "Designated recyclable and reusable materials" mean:
1. Masonry building materials and all products generally used in construction, including but not limited to, asphalt, concrete, rock, stone and brick.
2. Wood materials including any and all dimensional lumber, fencing or construction wood that is not chemically treated, creosoted, CCA pressure treated, contaminated or painted.
3. Vegetative materials including trees, tree parts, shrubs, stumps, logs, brush or any other type of plants that are cleared from a site for construction or other use.
4. Metals including all metal scrap such as, but not limited to, pipes, siding, window frames, doorframes, slate and fences.
5. Roofing materials, including wood shingles as well as asphalt, stone and slate based roofing material.
6. Salvageable materials, including but not limited to wallboard, doors, windows, fixtures, toilets, sinks, bathtubs, architectural remnants, and appliances.
7. Any other materials which the city or designee determines can be recycled or reused due to the identification of a recycling facility, reuse facility, or market accessible to the city, including facilities which can further sort mixed C&D debris through mechanical and/or manual processes in order to remove additional materials for reuse or recycling.
(h) "Exclusive franchisee" means any person or association, or the agents or employees thereof, with whom the city shall have duly contracted under the terms hereinafter set forth in this article to collect, transport through the streets, alleys, or public ways of the city, and dispose of, all solid waste produced and/or collected within the limits of the city.
(i) "Hardscape Improvements" means swimming pools, driveways, parking lots, walkways, patios and decks.
(j) "Hazardous Materials" means any construction o r demolition debris, such as asbestos or lead- based paint that exceeds state of California thresholds for such classification and is required to have special disposal procedures. Hazardous materials are specifically excluded from C&D debris.
(k) "Inert solids" means concrete, fully cured asphalt, asphalt roofing shingles, brick, ceramics, clay and clay products.
Sec. 9-11.3. - Transportation of demolition and construction debris.
In accordance with Chapter 14, Sections 14-10-070 and 14-10-110 of the Municipal Code, it is unlawful for any person or business, other than the city's exclusive franchisee, to collect or transport any C&D debris within the city. Accordingly, any generator of C&D debris within the city must enter into a contract with the exclusive franchisee for the removal of C&D debris, unless one or more of the following conditions are met:
(a) In cases where recyclable materials are source separated from C&D debris for sale or donation including, but not limited to those collected through privat e arrangements between the generator and the collector and where the generator is not paying for the material to be removed, as defined in Chapter 14, Section 14-12. a.2 of the Municipal Code; or
(b) C&D debris (a) removed from a premises by a licensed contractor as an incidental part of a total construction, remodeling or demolition service offered by that contractor, rather than as a separately contracted or subcontracted hauling service using st orage vehicles (debris boxes removed from vehicle do not comply) or similar apparatus, or (b) directly loaded into a fixed body vehicle owned by either the generator or generator's employee and hauled directly to a bonafide processing facility, as defined in Chapter 14, Section 14 -
12.a.1 of the Municipal Code.
Sec. 9-11.4. - Diversion requirements.
For each covered project, one hundred percent of inert solids and at least sixty-five percent of the remaining C&D debris shall be diverted from landfill disposal in accordance with the provisions of this article, except as provided in Section 9-11.8.
Every applicant, general contractor, subcontractor and/or owner of property on which a covered project occurs shall be responsible for compliance with the pr ovisions of this article.
Diversion requirements shall be met by submitting and following a waste reduction and recycling plan that achieves the following:
(a) Deconstructing and salvaging all or part of the structure as practicable; and
(b) Directing one hundred percent of inert solids to bonafide facilities for reuse or recycling; and
(c) Either:
1. Directing all mixed C&D debris to a bonafide processor approved by the city, or
2. Source separating non-inert materials, such as cardboard and paper, wood, metals, green waste, new gypsum wallboard, tile, porcelain fixtures, and other easily recycled materials, and directing them to a bonafide facility for recycling and taking the remainder (but no more than fifty percent by weight) to a designated transfer or disposal facility. In this option, calculations must be provided to show that fifty percent of demolition and construction debris (in addition to one hundred percent of inert solids) has been diverted.
Separate calculations will be required for the demolition portion and for the construction portion of projects involving both demolition and construction.
Determination of acceptability and designation as C&D debris is solely the re sponsibility of the bonafide processor, landfill, or transfer station representative.
Sec. 9-11.5. - Information required before issuance of permit.
As a condition precedent to issuance of any permit (in cases of federal property, before building or demolition is to commence) for a construction, demolition or renovation project that involves the production of C&D debris, the applicant must include a proposed waste reduction and recycling plan, on a form provided by the city, as part of the permit applicat ion. The plan shall include the following information:
(a) Project type, description, location, and contact information; (b) Types of C&D debris to be generated by the project; (c) How the C&D debris will be handled (source separated on-site and/or mixed); (d) Specify how the C&D debris will be transported to a bonafide facility; (e) Signed owner/agent attest.
The city shall provide to each permit applicant a current list of bonafide facilities that accept and recycle various types of materials generated from construction and/or demolition projects.
Sec. 9-11.6. - On-site practices.
During the term of the demolition and/or construction project, the permittee shall demonstrate compliance with the diversion requirements of this article and maintain records of all diverted and disposed materials, measured by weight in tons. The city will evaluate and monitor each project to confirm the percentage of materials recycled, salvaged, or otherwise diverted from the project based on information provided by the permittee.
Structures and/or hardscape improvements planned for demolition shall be made available for deconstruction, salvage, and recovery prior to demolition.
It shall be the responsibility of the owner, the general contractor and all subcontractors to recover the maximum feasible amount of salvageable materials prior to demolition.
Recovered and reusable materials from the deconstruction phase may be given or sold on the premises or may be removed to a reuse warehouse or other reuse f acility for storage or sale and shall be counted towards the diversion requirements of this article.
The use of debris boxes and/or the collection and removal of C&D debris by a hauler or business other than the exclusive franchise must be consistent with the provisions of this article and the city's franchise agreement.
Sec. 9-11.7. - Reporting.
The permittee shall submit documentation to the city, which proves compliance with the requirements of this chapter, prior to the issuance of a certificate of o ccupancy or the final inspection. The documentation shall consist of a complete and final waste reduction and recycling report, describing diversion activities and showing actual tonnage data for all diverted and disposed materials, supported by legible re ceipts, weight tags, invoices or other records of measurement from bonafide facilities, the exclusive franchisee or a licensed contractor as prescribed in Section 09.04.030.2 of this article. The report shall include the following information:
(a) Identify the type and quantity (in tons) of materials recycled, reused, salvaged and/or disposed;
(b) Identify how the materials were handled (source separated or mixed); (c) Identify how the C&D debris was transported to a bonafide facility; (d) Identify where the materials were taken for recycling or disposal.
Sec. 9-11.8. - Diversion exemptions.
Neither a waste reduction and recycling plan nor an administrative fee shall be required for the following:
(a) Projects that meet the exceptions set forth in Sections 4.408 and 5.408 of the California Green Building Standards Code, as amended;
(b) Projects that are not subject to the California Building Code; (c) Projects for which a building permit is not required;
(d) Roofing projects only (See Section 09.04.090 below); (e) Work for which only a plumbing, electrical or mechanical permit is required; (f) Seismic tie-down projects;
(g) The installation or replacement of shelves;
(h) Installation of pre-fabricated patio enclosures and covers where no foundation or other structural building modifications are required;
(i) Installation of swimming pools and spas excavation that does not exceed sixteen square feet, and any related construction or alterations necessary for pool or spa equipment or accessories, not to any other portion of the project;
(j) Installation of pre-fabricated accessories such as signs or antennas where no structural building modifications are required;
(k) The building official shall have the authority to render interpretations of this article and to adopt policies and procedures in order to clarify the application of its provisions, including diversion exemptions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose of this article. Such policies and procedures shall not have the effect of waiving requirements specifically provided for in this article.
Sec. 9-11.9. - Voluntary compliance.
Applicants for permits exempted from the requirements of this article may voluntarily complete a waste reduction waste reduction and recycling plan.
Sec. 9-11.10. - Administrative fee.
As a condition precedent to issuance of any permit (in cases of federal property, before building or demolition is to commence) for a building, roofing, or demolition project that involves the production of C&D debris, the applicant shall pay to the city a fee sufficient to compensate the city for expenses incurred in ensuring compliance with these provisions. The amount of this fee shall be determined in accordance with the then current resolution of the city council determining the same.
Sec. 9-11.11. - Compliance.
(a) At any time during demolition or construction, a city building inspector may inspect the site and contractor's on-site practices to ensure compliance with this section. Should on- site practices not comply with this chapter, a 'stop-work' order may be issued until such time that compliance is demonstrated.
(b) At the end of construction, the city may not approve a final inspection or certificate of occupancy unless the project has been determined to be in full compliance with the diversion requirements of this Chapter; or
(c) The project may be determined to be in "substantial compliance" if the applicant has made a "good faith effort" to comply, but for an unfore seen reason could not fully comply. In the case of substantial compliance, the applicant shall present documentation of good faith efforts upon consultation with and verification by the Salinas Valley Solid Waste Authority, which shall serve as meeting the compliance requirements of this Chapter; or
(d) The project may be determined to be "non -compliant", in which case the applicant is not in substantial compliance or has failed to submit the required documentation. If it is determined that the applicant is not in compliance, a civil penalty calculated as two percent of the total project valuation will be assessed, and the certificate of occupancy or final inspection may not be issued until the penalty is paid.
Article I -L - California Reference Standards Code.
Section 9-12. Adopted by reference.
The California Reference Standards Code, Part 12, 2022 edition is hereby adopted as the Reference Standards Code for the City of Salinas, California
Article I – M – Housing and Enforcement Code
Section 9-13. Adopted by reference.
The International Property Maintenance Code 2021 edition is hereby adopted as the Property Maintenance Code for the City of Salinas, in the State of California, for regulating and governing the conditions and maintenance of all existing residential and nonresidential structures and all existing premises and constitute minimum requirements and standards for premises, structures, equipment and facilities for light, ventilation, space, heating, sanitation, protection from the elements, a reasonable level of safety from fire and other hazards, and for a reasonable level of sanitary maintenance; the responsibility of owners, an owner's authorized agent, operators and occupants; the occupancy of existing structures and premises, and for administration, enforcement and penalties; and the same is adopted and made a part hereof, as if fully set out in this ordinance, with the additions, insertions, deletions, modifications and changes, if any, as more particularly set forth in this article.
Sec. 9-13.1. - Administration.
In the event of any conflict between any provision of the Property Maintenance Code and Article II of Chapter 9 or any other provision or section of the City Code, the City Code shall take priority and precedence and the provisions and sections of the City Code shall control.
Division II. - Employee Housing Act.
Sec. 9-13.2. - City responsibility.
Pursuant to the authority granted by the state law and regulations hereinafter specified, the city assumes the responsibility for the enforcement of Division 2, Part 9, Chapter 4 (commencing at Section 2610), of the Labor Code, known as the Employee Housing Act, and Title 25, Chapter 2 (commencing at Section 2000), of the California Code of Regulations, effective as of January 1,1972.
Sec. 9-13.3. - County director of public health and city building official to enforce.
The Monterey County director of public health and his or her representatives pursuant to the provisions of Article II of Chapter 16 of this Code shall administer and enforce this article and the state law and regulations specified in Section 9 -13.2 of this article, except that the building official of the city shall administer and enforce all laws, regulations and ordinances applicable to the construction of labor camps.
Sec. 9-13.4. - Fees.
(a) Every person applying for a permit to operate a labor camp shall pay a fee to the Monterey County director of health services in an amount set by the county of Monterey board of supervisors.
(b) The fees for a permit to construct a labor camp shall be those specified in Article I of Chapter 9 of this Code relating to the construction of buildings, or any ordinance of the city superseding it, and shall be paid to the building official of the city.
Article I-N Delegation of Authority; Enforcement and Penalties.
Sec. 9-14. - Authority of building official.
The building official of the City of Salinas is hereby designated to administer, implement and enforce this Article I and all codes and standards adopted and set forth herein.
Sec. 9-14.1. - Enforcement and penalties.
(a) Any person who violates a provision of this article or who fails to comply with any of the requirements set forth herein o r in any of the codes adopted in this article or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under this article, shall be guilty of a misdemeanor, punishable by a fine or not more than one thousand dollars or by imprisonment not exceeding thirty days, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a se parate offense. Alternatively, and in the discretion of the city attorney, any such violation may be prosecuted administratively pursuant to the city's administrative remedies ordinance or pursuant to any other remedy available under the law or in equity.
(b) The application of the above penalty shall not be held to prevent the enforced removal of prohibited conditions.
Sec. 9-14.2. - Costs of enforcement.
Costs of enforcement, including administrative costs, penalties and attorney’s fees shall be borne by and shall become a personal obligation of the property owner, property owner's agent, operator, occupant, and/or the responsible person or entity and may be recoverable by the city by all available legal remedies. In addition to this personal obligation and all other remedies provided by law, the city may collect any judgment, fee, cost or charge, including any permit fees, fines, late charges or interest incurred by it in enforcing the provisions of this chapter. In the event any such costs remain unpai d after ninety days, the same shall constitute a lien or, in the alternative, an assessment against the real property on which the violation occurred. The cost of enforcement shall constitute an assessment against the respective lots or parcels of land on which such violation exists, and as thus made and confirmed shall constitute a lien on the property for the amount of such assessments, respectively, until paid. Such lien shall, for all purposes, be on parity with the lien of state, county and city taxes.
Article I-O. - Rooftop Solar Energy Permitting Process
Sec. 9-15. - Definitions.
Except where the context otherwise requires, definitions given in this section govern the construction of this article.
(a) "Building official" means the chief building official or his or her assistants acting on his or her behalf.
(b) "Electronic submittal" means the utilization of one or more of the following:
1. Email;
2. The Internet;
3. Facsimile.
(c) "Small residential rooftop solar energy system" means all of the following:
1. A solar energy system that is no larger than ten kilowatts alternating current nameplate rating or thirty kilowatts thermal.
2. A solar energy system that conforms to all applicable state fire, structural, electrical, and other building codes as adopted or amended by the city and all state and city health and safety standards.
3. A solar energy system that is installed on a single or duplex family dwelling.
4. A solar panel or module array that does not exceed the maximum legal building height as defined by the city planning commission.
(d) "Solar energy system" means either of the following:
1. Any solar collector or other solar energy device whose primary purpose is to provide for the collection, storage, and distribution of solar energy for space heating, space cooling, electric generation, or water heating.
2. Any structural design feature of a building, whose primary purpose is to provide for the collection, storage, and distribution of solar energy for electricity generation, space heating or cooling, or for water heating.
(e) "Specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
Sec. 9-15.210. - Purpose.
This article adopts an expedited, streamlined solar permitting process pursuant to the Solar Rights Act, as amended by AB 2188 (Chapter 521, Statutes 2014) to achieve timely and cost- effective installations of small residential rooftop solar energy systems. This article encourages use of solar systems by removing unreasonable barriers, minimizing costs to property owners and the city, and expanding the ability of property owners to install solar energy systems.
Sec. 9-15.215. - Applicability.
(a) This chapter applies to the permitting of all small residential rooftop solar energy systems in the city of Salinas.
(b) Small residential rooftop solar energy systems legally established or permitted prior to the effective date of this article are not subject to the requirements of this article unless physical modifications or alterations are undertaken that materially change the size, type, or components of a small rooftop energy system in such a way as to require new permitting.
(c) Routine operation and maintenance or like-kind replacements shall not require a permit.
Sec. 9-15. 220. - Solar energy system requirements.
(a) All solar energy systems shall meet applicable health and sa fety standards and requirements imposed by the state and the city.
(b) Solar energy systems for heating water in single-family residences and for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined by the California Plumbing and Mechanical Code. (c) Solar energy systems for producing electricity shall meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electron ics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the public utilities commission regarding safety and reliability.
Sec. 9-15. 225. - Duties of community development department and building official.
(a) All documents required for the submission of an expedited solar energy system application shall be made available to the public and accessible via the city website. (b) Electronic submittal of required permit applications and docume nts by email, the Internet, or facsimile shall be made available to all small residential rooftop solar energy system permit applicants.
(c) An applicant's electronic signature shall be accepted on all forms, applications, and other documents in lieu of a wet signature.
(d) The community development department shall create a standard plan and checklist of all requirements with which small residential rooftop solar energy systems shall comply to be eligible for expedited review.
(e) The small residential rooftop solar system permit process, standard plan(s), and checklist(s) shall substantially conform to recommendations for expedited permitting, including the checklist and standard plans contained in the most current version of the California Solar Permitting Guidebook adopted by the Governor's Office of Planning and Research.
(f) Fees prescribed for permitting of small residential rooftop solar energy system must comply with Government Code § 65850.55, Government Code § 66015, Government Code § 66016, and State Health and Safety Code § 17951, as the same may be amended from time- to-time.
Sec. 9-15. 230. - Plan review and inspection requirements.
(a) The community development department shall create an administrative, nondiscretionary review process to expedite approval of small residential rooftop solar energy systems within thirty -days of the effective date of this article. The building official shall issue the permit within three business days of receipt of a complete standard or electronic application that meets the requirements of the approved checklist and standard plan.
(b) Review of the application shall be limited to the building official's review of whether the application meets local, state, and federal health and safety requirements. (c) If the building official determines the application would be in violation of local, state and/or federal health and safety requirements, the building official will make written findings, within three days, based upon substantive evidence in the record that the proposed installation would have a specific, adverse impact upon public health or safety and there is no feasible method to satisfactorily mitigate or avoid, as defined, the adverse impact. Such findings shall include the basis for the rejection of the pote ntial feasible alternative for preventing the adverse impact. (d) Any condition imposed on an application shall be designed to mitigate the specific, adverse impact upon health and safety at the lowest possible cost. (e) "A feasible method to satisfactori ly mitigate or avoid the specific, adverse impact" includes, but is not limited to, any cost -effective method, condition, or mitigation imposed by the city on another similarly situated application in a prior successful application for a permit. The city s hall use its best efforts to ensure that the selected method, condition, or mitigation meets the conditions of subparagraphs (A) and (B) of paragraph (1) of subdivision (d) of Section 714 of the Civil Code defining restrictions that do not significantly in crease the cost of the system or decrease its efficiency or specified performance.
(f) If an application is deemed incomplete, a written correction notice detailing all deficiencies in the application and any additional information or documentation required to be eligible for expedited permit issuance shall be sent to the applicant for resubmission.
(g) Only one inspection may be required and performed by the community development department for small residential rooftop solar energy systems eligible for ex pedited review.
(h) The inspection shall be done in a timely manner and should include consolidated inspections. An inspection will be scheduled within two business days of a request. (i) If a small residential rooftop solar energy system fails inspection, a subsequent inspection is authorized but need not conform to the requirements of this article.
SECTION 2. Salinas City Code Chapter 13, Article II is hereby repealed in its entirety and is replaced with the following:
Article II. California Fire Code
Sec. 13-8. Adoption of California Fire Code.
The City of Salinas adopts the 2022 edition of the California Fire Code, regulating and governing the safeguarding of life and property from fire and explosion hazards arising from the storage, handling and use of hazardous substances, materials and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises in the City of Salinas; providing for the issuance of permits and collection of fees therefore; repealing ORDINANCE No. 2584 2621 of the City of Salinas and all other ordinances or parts of laws in conflict therewith.
That a certain document, three (3) copies of which are on file in the Community Development Department at 65 West Alisal Street, Salinas, California being marked and designated as the California Fire Code, 2022 edition, including Appendix Chapters B, C, D , E, F, G, & I as published by the International Code Council, be and is hereby adopted as the Fire Code of the City of Salinas, in the State of Ca lifornia regulating and governing the safeguarding of life and property from fire and explosion hazards arising from the storage, handling and use of hazardous substances, materials and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises as herein provided; providing for the issuance of permits and collection of fees therefore; and each and all of the regulations, provisions, penalties, conditions and terms of said Fire Code on file in the Community Developm ent Department are hereby referred to, adopted, and made a part hereof, as if fully set out in this legislation, with the additions, insertions, deletions and changes, if any, prescribed in this ordinance.
Sec. 13-9. Amendments to the California Fire Code.
(a) Section 101.1 is amended to read as follows:
101.1 Title. These regulations shall be known as the Fire Code of the City of Salinas, hereinafter referred to as “this code.”
(b) Section 103 is amended to read as follows:
103 The fire prevention bureau.
103.1 General. The fire prevention bureau is established within the jurisdiction under the direction of the fire code official. The function of the bureau shall be the implementation, administration and enforcement of the provisions of this code.
1) This code shall be enforced by the fire prevention bureau within the Salinas, California, fire department, which is established, and which shall be operated under the supervision of the chief of the fire department.
2) A report of the fire prevention bureau contai ning statistics and information of all proceedings under this code shall be made a part of the annual Fire Department report and will be transmitted to the city manager and the city council. The chief of the fire department shall in his discretion recomme nd any amendments to this code.
(c) Section 103.2 is deleted
(d) Section 104.12 is added to read as follows:
104.12 – Cost Recovery
104.12.1 Purpose. The purpose of this Section is to establish authority to obtain reimbursement from responsible individuals for the expenses of any emergency response and/or enforcement action by the City of Salinas to protect the public from fire or hazardous substances and situations.
104.12.2 Reimbursement
1) In accordance with the Health and Safety Code Section 13000 et seq., an individual who acts negligently or in violation of the law and thereby requires the jurisdiction to provide an emergency response to a danger p osed by a fire or hazardous substance shall be liable for reimbursement to the agency for the costs incurred. 2) In accordance with Government Code Sections 53150 through 53158, any individual who is under the influence of an alcoholic beverage or any drug o r the combined influence of an alcoholic beverage or any drug, and whose negligent operation of a motor vehicle, boat or vessel or civil aircraft caused by that influence proximately causes any incident and thereby requires the agency to provide an emergency response shall reimburse the agency for the cost incurred.
(e) Section 105.1.1.1 is added to read as follows:
105.1.1.1 Permits required. All permits and inspections conducted by the Salinas Fire Department shall be charged a fee, as mandated in the Salinas City Code Chapter 11B -4 Schedule of Fees and Service Charges.
(f) Section 105.3.9 is added to read as follows
105.3.9 Expense Recovery. The purpose of this section is to establish authority to obtain reimbursement from responsible individuals for permits, inspections, and associated enforcement action by the Salinas Fire Department, to protect the public from fire or substances and situations.
(g) Section 105.6.50 is added to read as follows:
105.6.50 Christmas Tree Lots. An operational permit issued by the Salinas Fire Department and required in addition to any other permit or approval which may be required under the City Code, is required to operate a Christmas tree lot with or without flame proofing services.
(h) Section 109.4 is amended to read as follows:
109.4 Violation Penalties. Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor, punishable by a fine of not more than one thousand dollars or by imprisonment not exceeding thirty days, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense. Alternatively, and in the discretion of the City Attorney, violations may be prosecuted administratively pursuant to the provisions of the City of Salinas Municipal Code or pursuant to any other remedy available to the City under the law or in equity. The application of the above penalty shall not be held to prevent the enforced removal of prohibited conditions.
(i) Section 109.4.1 is amended to read as follows:
109.4.1 Abatement of violation. In addition to the imposition of the penalties herein described, the fire code official is authorized to institute appropriate action to prevent unlawful construction or to restrain, correct or abate a vio lation; or to prevent illegal occupancy of a structure or premises; or to stop an illegal act, conduct of business or occupancy of a structure on or about any premises. Any violation of this code shall be deemed a public nuisance pursuant to City of Sali nas Municipal Code. In the event that a public nuisance is not abated in accordance with the fire code official’s order or the order of the Board of Appeals, if any, the fire code official may proceed to abate the nuisance by force account, contract, or an y other method deemed most expedient by the fire code official or the Board, as the case may be. The cost of such abatement may be charged to the owner of record, or assessed to the property in a manner provided in the City of Salinas Municipal Code.
(j) Section 109.4.2 is added to read as follows
109.4.2 Enforcement . The fire code official and her/his designees, pursuant to the provisions of Section 836.5 of the Penal Code of the State of California, are hereby authorized to arrest a person without a war rant whenever they have reasonable cause to believe that the person has committed a violation of any of the provisions of this Code in their presence. Upon making such an arrest, the fire code official or her/his delegated subordinate shall prepare a cita tion and release the person arrested pursuant to Section 853.6 of the Penal Code of the State of California, the provisions of which are hereby adopted by reference as part of this Section.
(k) Section109.5 is added to read as follows:
109.5 Recordation of notice of fire code violation.
1) Whenever the fire chief or his or her duly authorized representative finds a fire code violation in any building or on any premises, the fire chief may cause to be recorded in the office of the county recorder a notice of the pendency of fire code violation abatement proceedings.
Such notice shall describe the property and shall certify:
a. That there exists as to any building on the property or upon the premises, as appropriate, a fire code violation; and
b. That the owner has been notified.
2) Whenever the fire code violation has been corrected to the satisfaction of the fire chief so that the fire code violation no longer exists, and a notice has been recorded pursuant to the subsection 1of this section, the fire chief shall cause to be recorded a new notice in the office of the county recorder certifying that there no longer exists a fire code violation as to any building on the property, or upon the premises, whichever is appropriate.
(l) Section 111.4 is amended to read as follows:
113.4 Failure to comply. It is unlawful for any person, firm or corporation to violate or fail to comply with any lawful order of the fire code official; fail to comply with an order by the Board of Appeals; within the time fixed therein. Every such violation shall be deemed a misdemeanor and shall be punishable by a fine of not more than $1000.00 plus court assigned fees or by imprisonment not exceeding 1 year in the county jail, or both such fine and imprisonment. Alternatively, and in the discretion of the City Attorney, violations may be prosecuted administrativ ely pursuant to the provisions of the Salinas Municipal Code or pursuant to any other remedy available to the City under the law.
(m) Section 202 is amended to add definitions as follows:
All weather driving surface. An all-weather driving surface shall be asphalt, concrete or other approved driving surface capable of supporting the imposed load of Salinas Fire Department fire apparatus weighing at least 75,000 pounds, and as approved by the Fire Code Official
Combustible Vegetation is material that in its natural state will readily ignite, burn and transmit fire from the vegetative growth to any structure; this includes ground fuels which are any native or landscape vegetation not considered a tree and generally in contact with the ground.
Fire Hazard is anything that increases or could create an increase of the hazard or menace of fire to a greater degree than customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguis hing fire or anything or act which could obstruct, delay, hinder or interfere with the operations of the fire department or egress of occupants in the event of fire.
Hookah. A smoking device that consists of a bowl mounted on a vessel of water which is provided with a long tube and arranged so that smoke is drawn through the water where it is cooled and up the tube to the mouth.
Legal representative of the jurisdiction. It shall mean the city attorney of the city of Salinas, or his or her designee.
Municipality. As applied to the area within the contiguous boundaries of the City of Salinas, it shall mean the City of Salinas.
Public Nuisance. The unreasonable, unwarranted and/or unlawful use of property, which causes inconvenience, danger or damage to oth ers, either to individuals and/or to the general public. Nuisances may include, but not be limited to noxious smells, noise, burning, unauthorized collections or storage of hazardous materials.
Structure means a residence and attached garage, building or related facility that is designed primarily for human use or habitation. Decking, fences, detached garages, sheds, gazebos, shade covers, and similar facilities are not considered structures for the purposes of determining fire protection requirements.
Travel time is the estimated time it would take for a responding agency to travel from the fire station to the furthest structure in a proposed development project, determined by measuring the safest, most direct, appropriate, and reliable route with conside ration given to safe operating speeds for heavy fire apparatus.
Response Time is the elapsed time from the fire department’s receipt of the first alarm to when the first fire unit arrives at the scene.
(n) Section 307.2.1 is amended to read as follows:
Section 307.2.1 is amended to read as follows:
307.2.1 Authorization. Where required by state or local law or regulations, open burning shall only be permitted with prior approval from the Monterey Bay Air Resource District, provided that all conditions specified in the authorization are followed. During the “Declared open burn season” (As declared by the Monterey Bay Air Resource District) pile burning is allowed, at the discretion of the Fire Chief, when the “Guidelines for Pile Burning” (published by the California Department of Forestry and Fire Protection or Monterey Bay Air Resource District) are strictly adhered to.
(o) Section 307.6 is added to read as follows:
307.6 General burning prohibitions. Trash, yard waste, rubbish and paper are prohibited as fuel for bonfires, recreational fires, and fires in outdoor fireplaces . Smoke or odor emissions from bonfires, recreational fires and use of outdoor fireplaces that make such fires hazardous shall be prohibited. The fire code official is authorized to order the extinguishment of a fire which creates a nuisance to neighboring properties or adds to a hazardous situation. A complaint to the fire code official shall be prima facie evidence of a nuisance.
(p) Section 310.2 is amended to add the following:
Section 310.2 Prohibited Areas. Exception: Smoking lounges, sometimes referred to as “hookah cafes” shall be subject to review and approval by the City of Salinas and Monterey County Health Department. The following is a list of Salinas Fire Department requirements:
1) Adequate ventilation is required when heating coals. A mechanical exhaust hood system that is listed shall be installed to provide ventilation. A building permit is required to install a mechanical exhaust hood system.
2) The mechanical exhaust hood fan shall be on at all time s while coals are being prepared.
3) Whenever hot coals are removed from the preparation area, they shall be placed in a ceramic, metal, or other noncombustible container. Open mesh containers shall not be used.
4) Coal containers shall not be placed on combus tible materials, such as tablecloths or furniture. All devices used to transfer coals from the container to the hookah pipe shall be of a non-combustible material.
5) Hookah pipes shall be securely fastened in place to prevent overturning. An approved clasp or hook may be used to secure the pipe to a table or other stationary object. A shield or other approved device shall be applied to the top of the pipe to prevent accidental contact of patrons to exposed coals. A protective device may be a cap constructed of aluminum foil so that the height is not less than two inches above the top of the coals.
6) Used coals shall not be discarded in such a manner that could cause ignition of combustible materials. Used coals shall be removed and placed into a sealed metal or ceramic container with a lid (no openings other than the lid). The container shall be labeled “Hot Coals Only”. The container shall not be placed within ten feet of other combustible materials, including combustible floors, walls, partitions, or within two feet of openings of the building. Hot ashes shall be thoroughly cooled (at least 24 hours) before being discarded.
7) The occupant load of a business shall be determined by the Salinas Fire Department. If an occupant load is 50 or more all requirements of the California Fire and Building Code shall apply for assembly occupancy. Requirements for assembly occupancies shall apply.
8) 2-A:10-B:C type fire-extinguishers shall be installed in approved locations.
(q) Section 503.1 is amended to read as follows:
503.1 Where required. Fire apparatus access roads shall be provided and maintained in accordance with Sections 503.1.1 through 503.1.3., and Appendix D
(r) Section 503.2.31 is amended to read as follows:
503.2.1 Dimensions.
1) Fire apparatus access roads shall have an unobstructed improved width of not less than twenty feet (20′), and twenty -six feet (26’) where there is a fire hydrant or fire department connection present, exclusive of shoulders.
Exceptions:
a. Approved security gates in accordance with Section 503.6. Gated entrances with card readers, guard stations or center medians, are allowed, provided that each lane is not less than fifteen feet (15′) wide.
b. Driveway and parking aisle reductions, in accordance with Salinas City Code, Chapter 37 Zoning. Article V, Division 2, as approved by the fire code official.
c. All fire apparatus access roads shall have an unobstructed vertical clearance of not less than thirteen feet six inches (13′6″). Vertical clearances or road widths shall be increased when, in the opinion of the fire code official, vertical clearances or road widths are not adequate to provide fire apparatus access.
Exception: Upon approval of the fire code official, vertical clearances or road width may be reduced as long as the reduction does not impair access by fire apparatus. In cases where the vertical clearance has been reduced, approved signs shall be installed and maintained indicating the amount of vertical clearance.
(s) Section 503.2.3 is amended to read as follows:
Section 503.2.3 Surface. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus not less than 75,000 lbs., unless authorized by the fire code official, and shall be provided with an approved all weather driving surface.
Alternate Fire Apparatus Access Surface . Alternative fire apparatus surfaces such as “Grass Crete", "Turf Block ", or similar -type materials may be used under certain conditions. An Alternate Materials and Methods request in accordance with California Fire Code Appendix Chapter 1, Section 104.9 shall be submitted to the Fire Code Official prior to installation. The submittal shall include the design criteria based upon the imposed load of fire apparatus. The alternate surface shall be:
a. Marked, with the lane at the curb delineated with lights, bollards, paint, and/or contrasting material.
b. Structurally sound to preclude movement or disbanding with soil movement.
c. Field tested by the contractor in the presence of the fire code official. Contact the local fire agency for sp ecifications on testing. Testing may include driving the alternate surface by a weight-verified vehicle. Prior to testing, the soil shall be soaked.
d. Prior to final approval, the engineer of record (civil or soils engineer) shall certify the installation.
(t) Section 503.2.4 is amended to read as follows:
Section 503.2.4 Turning Radius. The turning radius of a fire apparatus access road shall be a minimum of 40 feet outside turning radius and 20’ inside turning radius, or as approved by the fire code official.
(u) Section 503.2.6 is amended to read as follows:
Section 503.2.6 - Bridges and elevated surfaces. When a bridge or an elevated surface is part of a fire apparatus access road, the bridge shall be constructed and maintained in accordance with AASHTO HS -20 (25 ton). Bridges and elevated surfaces shall be designed for a live load sufficient to carry the imposed loads of fire apparatus. Vehicle load limits shall be posted at both entrances to bridges when required by the fire code official.
Where elevated surfaces designed for emergency vehicle use are adjacent to surfaces which are not designed for such use, approved barriers, approved signs or both shall be installed and maintained when required by the fire code official.
(v) Section 503.2.7 is amended to read as follows:
Section 503.2.7 Grade. The gradient for a fire apparatus access roadway shall not exceed 10%. Grades exceeding 10% (incline or decline) shall not be permitted without mitigation.
The fire code official may require additional mitigation measures as deemed appropriate.
(w) Section 503.2.8 is amended to read as follows:
Section 503.2.8 Angles of approach and departure. The angles of approach and departure shall not exceed 8 degrees, or as approved by the fire code official.
(x) Section 503.3 is amended to read as follows:
Section 503.3 Marking. Where required by the fire code official, fire apparatus access roads shall be marked or other approved notices or markings as a fire lane, as set forth in California Vehicle Code section 22500.1 (public) or 22658(a) (private), and Salinas Fire Department standards. Signs or notices shall be maintained in a clean and legible condition at all times and is replaced or repaired when necessary to provide adequate visibility. The designation shall be indicated by:
1) A sign immediately adjacent from the designated place that include “NO PARKING - FIRE LANE” signs, on both sides of interior access roadways in locations where vehicle parking would encroach on the required 20 - 26-foot clear width of roadway at 30-foot intervals, and/or
2) All raised curbs shall be painted red with the words “NO PARKING - FIRE LANE” stenciled 4 inches high at 30-foot intervals, or
3) In absence of raised curb, outline or paint the place in red, and in contrasting color, marking the outline of the roadway with the words “NO PARKING - FIRE LANE” stenciled 4 inches at 30-foot intervals, and which are clearly visible from a vehicle.
4) Fire apparatus access roads utilizing an approved "Alternate Surface" in section 503.3.3 fire lane shall be marked immediately adjacent to the fire access edge, delineated with lights, bollards, paint, and/or contrasting material.
(y) Section 503.4.2 shall be added to read as follows:
503.4.2 Roadway Design Features. Roadway design features, to included but not limited to, speed bumps, speed humps, speed control dips, modern roundabouts, raised medians, low- volume local streets, etc., which may interfere with eme rgency apparatus responses shall not be installed on fire access roadways, unless they meet design criteria approved by the fire code official.
(z) Section 503.6 is amended to read as follows:
503.6 Security gates. No person shall install a security gate or security device across a fire access roadway without the fire code official's approval. All gates providing access from a road to a driveway shall be located a minimum of thirty feet (30′) from the nearest edge of the roadway and shall be at least two feet wider than the width of the traffic lane(s) serving the gate. An automatic gate across a fire access roadway or driveway shall be equipped with an approved emergency key -operated switch overriding all command fu nctions and opening the gate. A gate accessing more than four (4) residences or residential lots or a gate accessing hazardous institutional, educational or assembly occupancy group structure, shall also be equipped with an approved emergency traffic contr ol-activating strobe light sensor or other device approved by the fire code official, which will activate the gate on the approach of emergency apparatus with a battery back -up or manual mechanical disconnect in case of power failure. An automatic gate shall meet fire department policies deemed necessary by the fire code official for rapid, reliable access. An automatic gate serving more than one (1) dwelling or residential lot in existence at the time of adoption of this chapter is required to install an a pproved emergency key -operated switch or other mechanism approved by the fire code official, at an approved location, which overrides all command functions and opens the gate. A property owner shall comply with this requirement within ninety (90) days of r eceiving written notice to comply. Electric gate openers, where provided, shall be listed in accordance with UL 325. Gates intended for automatic operation shall be designed, constructed and installed to comply with the requirements of ASTM F2200.
(aa) Section 505.3 is added to read as follows:
505.3 Response map updates. Any new development, which necessitates updating of emergency response maps by virtue of new structures, hydrants, roadways or similar features, shall be required to provide map updates in a PDF and/or CAD format, as approved by the fire code official, or compatible with current department mapping services.
(bb) Section 506.1 is amended to add the following after the first paragraph:
Section 506.1 Where required. All buildings equipped with a monitored fire alarm system fire sprinkler system, and or other automatic fire protection system shall have an approved key box on site in an approved location. Where hazardous materials are stored an approved keyed cabinet shall be onsite in an approved location. The cabinet shall contain, but shall not limited to containing, hazardous materials data, MSDS (Material Safety Data Sheets), pre-fire plans, building floor plans and evacuation procedures.
(cc) Section 507.3 is amended to read as follows:
Section 507.3 Fire flow requirements . Fire flows for buildings or portions of buildings and facilities shall be based on Appendix B or the standard published by the Insurance Services Office, "Guide for Determination of Required Fire Flow".
(dd) Section 507.5 amended to read as follows:
Section 507.5 Fire hydrant systems. Fire hydrant systems shall comply with Sections 507.5.1 through 507.5.6, Appendix C, and NFPA 291.
(ee) Section 510.1 is amended to add the following after the third exception:
Section 510.1 Emergency Responder Radio Coverage. Where public safety radio system signal levels are anticipated to fall below the acceptable limits as set forth in section 510.4, the Fire Code Official may allow for a mitigation fee to be assessed to augment the coverage of the regional public safety radio system to achieve the minimum signal strength standards as an alternate to a building specific communication system.
(ff) Section 903.2 is amended to add the following after the first paragraph:
Section 903.2 Where Required Existing non -sprinklered commercial buildings, other than as noted in 903.2.11 – 903.2.11.4, will be allowed to use 2-hour separation walls with rated openings with full smoke detection systems on both sides to automatically close rated openings in lieu o f sprinklers when additional square footage is added, provided that the addition does not exceed occupancy fire sprinkler requirements in sections 903.2.1 through 903.2.10.
Area separation walls or types of construction shall not be used to eliminate the requirement for automatic sprinkler systems when the total square footage of a building exceeds occupancy fire sprinkler requirements in sections 903.2.1 through 903.2.12.
(gg) Section 903.3.1.3 is amended to add the following after the first paragraph:
Section 903.3.1.3 NFPA 13D Sprinkler Systems
1) Leak testing. All new fire sprinkler systems installed in Group R -3 occupancies shall be tested by installer at time of installation, and witnessed by fire code official, for leakage by undergoing a hydrostatic test made at 200 psi for a two -hour duration.
2) Local water flow alarms. Local water flow alarms shall be provided on all sprinkler systems. Local water flow alarms shall be powered from the main kitchen refrigerator circuit. The local water flow alarm shall be clearly audible from within the master bedroom at an audibility level of not less than 75 dBa. Where no kitchen exists in the building, the water flow alarm shall be powered from the bathroom lighting circuit.
(hh) Section 903.3.5.1 is amended to read as follows:
903.3.5.1 Domestic services. Where the domestic service provides the water supply for the automatic sprinkler system, the supply shall be in accordance with this section.
Automatic sprinkler systems may be connected to the domestic water -supply main when approved by the fire code official, provided the domestic water supply is of adequate pressure, capacity and sizing for the combined domestic and sprinkler requirements.
Each water system supplying both domestic and fire protection systems shall have a single indicating-type control valve after the meter, arranged to shut off both the domestic and the sprinkler systems and may have a separate shut -off valve for the domestic system only.
The location of any control valve shall be approved by the fi re code official. A separate shut-off valve is not required for the domestic water supply in multi -purpose piping systems.
(ii) Section 907.8.6 is added as follows:
Section 907.8.6 False Alarms.
To reduce the number of false and nuisance alarms, and to encourage inspection, testing and maintenance of fire alarm systems, the Salinas Fire Department shall assess a fee to the responsible party, as established by the City Council pursuant to Salinas Municipal Code, Chapter 11B. Additional penalties and fees may be assessed for each and every subsequent response. A false alarm is defined as; “any alarm system activation that triggers a fire department response that is not the result of a fire or fire-related smoke conditions”.
(jj) Section 5001.5.1.1 is added to read as follows:
5001.5.1.1 HMMP approved location. The hazardous materials management plan shall be placed in an approved location, in a keyed box or other method of storage as approved by the fire code official or designated representative.
(kk) Section 5601.1 shall be amended to read as follows:
Section 5601.1 Scope. For explosives requirements see California Code of Regulations, Title 19, Division 1, Chapter 10. For fireworks requirements see California Code of Regulations, Title 19, Division 1, Chapter 6 . For the regulation of the possession, use, storage, sale, and display of fireworks within the City of Salinas see Salinas Municipal Code, Chapter 13A.
(ll) Section 5704.2.9.6.1 is amended as follows:
Section 5704.2.9.6.1 Locations where above-ground tanks are prohibited.
Establishment of geographic limits of districts in which storage of Class I and II flammable or combustible liquids in aboveground tanks is prohibited.
1) The limits in which the storage of flammable or combustible liquids in above - ground tanks outside of buildings, and in CFC Section 5706.2.4.4 in which these tanks are restricted or are prohibited, are hereby established and designated as, all land within the present or future corporate limits of the city except in certain zoning districts within the city as established by Chapter 37 of the Salinas Municipal Code, and is allowed as follows:
A Agriculture
IGC General Commercial
CT Thoroughfare-Commercial
IBP Business Park
IBP Business Park
IG General Industrial
2) In IG, IBP, CT, ICG and A zones, the aboveground storage of Class I flammable or Class II or IIIA combustible liquids shall be permitted providing that the tank is listed as an insulated, vehicle impact, and projectile-resistant aboveground tank for flammable or combustible liquids, and that no more than three tanks per parcel and business occupancy are installed that exceed two thousand gallons (12 618L) individual or six thousand gallons (50 472L) aggregate capacity.
3) This section shall not be applicable to be construed so as to prohibit the construction new bulk plants exclusively utilizing underground storage tanks and tank vehicle bottom loading procedures.
(mm) Section:5806.2 is amended as follows:
Section 5806.2 Limitations.
Establishment of geographic limits of districts in which storage of flammable cryogenic fluids in stationary containers is restricted for the protection of heavily populated or congested areas.
(a) The limits in which storage of flammable cryogenic fluids in stationary containers is prohibited and permitted by exception are established as follows:
A Agriculture
IGC General Commercial
CT Thoroughfare-Commercial
IBP Business Park
IG General Industrial
(nn) Section 6104.2 is amended as follows:
Section 6104.2 Maximum capacity within established limits.
Establishment of geographic limits of districts in which bulk storage of liquefied petroleum gases is restricted for the protection of heavily populated or congested areas.
The limits restricting the storage of liquefied petroleum gas are established and designated as, all land within the present or future corporate limits of the city except in certain zoning districts within the city as established by Chapter 37 of the Salinas Municipal Code, and is allowed as follows:
A Agriculture
IGC General Commercial
CT Thoroughfare Commercial
IBP Business Park
IG General Industrial
(a) In IG zones, individual tank capacity shall not exceed one thousand two hundred gallons water capacity, with an aggregate not to exceed two thousand four hundred gallons water capacity.
(b) In IBP, CG, CT and A zones, the aggregate capacity shall not exceed five hundred gallons water capacity.
(c) No stationary storage tank shall be located within one hundred fifty feet of any A, E, I or R occupancy as specified in the California Building Code.
(d) No stationary storage shall be located less than ten feet from the nearest street or sidewalk.
SECTION 3. CEQA CONSIDERATIONS. The adoption of this Ordinance is “ Not a Project” as defined by the California Environmental Quality Act (CEQA) Section 15378. In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the pro posed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Any subsequent discreti onary projects resulting from this action will be assessed for CEQA applicability.
SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The Salinas City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, cl ause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. EFFECTIVE DATE. This ordinance shall take effect and be in for ce thirty days from and after its adoption. The Building Standards Code will take effect on January 1, 2023 consistent with State law.
SECTION 5. The City Clerk of the City of Salinas is hereby directed to cause the following summary of this ordinance to be published by one (1) insertion in The Monterey Herald , a newspaper of general circulation printed, published, and circulated in the city of Salinas and hereby designated for that purpose by the Council of Salinas: “Chapters 9 and 13 of the Salinas City Code is hereby amended to adopt the most recent editions of the California Building Standards Code with local amendments.”
PASSED AND ADOPTED this 6th day of December 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_________________________________
Kimbley Craig, Mayor
ATTEST:
___________________________________
Patricia Barajas, City Clerk
APPROVED AS TO FORM:
Christopher A. Callihan, City Attorney
1 Attachment A – Findings and Explanations
ATTACHMENT “A”
FINDINGS and EXPLANATIONS
FOR REVISION OF THE CITY OF SALINAS FIRE DEPARTMENT AMENDMENTS TO THE 2022 CALIFORNIA FIRE CODE OF THE CALIFORNIA CODE OF REGULATIONS TITLE 24, PART 9
As required by Health and Safety Code section 17958 and 18941.5 the City of Salinas does herewith make express findings that amendments to the 2022 California Fire Code are nece ssary for the protection of the public health, safety, and welfare due certain climatic, topographic, or geological features existing in the City of Salinas.
The following matrix lists the City of Salinas amendments and the corresponding express findings .
Minor editorial changes or typographical corrections to the Fire Code are not shown in these findings.
The full texts of the proposed California Fire Code amendments are shown in Ordinance Article II of Chapter 13 of the Salinas City Code.
Definitions:
Climatic The average course or condition of the weather at a particular place over a period of many years, as exhibited in absolute extremes, means and frequencies of given departures from these means (i.e., of temperature, wind velocity, precipitation and other weather elements).
Topography The configuration of landmass surface, including its relief (elevation) and the position of its natural and man-made features that affect the ability to cross or transit a terrain.
Geological Scientific study of the Earth, including its composition, structure, physical properties, and history. Geology is commonly divided into sub-disciplines concerned with the chemical makeup of the Earth
Webster’s Third New California Dictionary.
Climatic Considerations:
There are two types of climates: macro and micro. A macro climate affects an entire region and gives the area a general environmental context. A micro climate is a specific variation that could be related to the other two factors, topography and geography. A micro climate may cover a relatively small area or be able to encompass an entire community, as opposed to another community in the same county.
Climatic consideration should be given to the extremes, means, and anomalies of the following weather elements:
1. Temperatures
2. Relative humidity
3. Precipitation and flooding conditions
4. Wind speed and duration of periods of high velocity
5. Wind direction
6. Fog and other atmospheric conditions.
2 Attachment A – Findings and Explanations
Topographical Considerations:
Topographic considerations should be given to the presence of the following topographical elements:
1. Elevation and ranges of elevation
2. Location of ridges, drainages and escarpments
3. Percent of grade (slope)
4. Location of roads, bridges and railroads
5. Other topographical features, such as aspect exposure
This information becomes an important part of creating an analysis of flood prone because topography and elevations are key elements (along with access roads) that create the need for fixed fire protection requirements in this code.
Geological Considerations:
Geological considerations should be evaluated to determine the relationship between man -made improvements (creating an exposure) and factors such as the following:
1. Fuel types, concentration in a mosaic and distribution of fuel types
2. Earthquake fault zone
3. Hazardous material routes
4. Artificial boundaries created by jurisdictional boundaries
5. Vulnerability of infrastructure to damage by climate and topographical concerns
Earthquake fault zones are the final component of the findings that suggest the need for fixed fire protection systems in a jurisdiction.
MATRIX OF FINDINGS and EXPLANATIONS
2022 California Fire Code Amendments
Chapters or Sections Description of Change Finding
Number(s) 1
Salinas City Code Chapter 13-9, Article II. Amendments to the California Fire Code (a) Section 101.1 The code allows the local jurisdiction to fill in the jurisdictions name. This change provides the name ‘City of Salinas’.
N/A
(b) Section 103.1
The first change (1) clarifies that the enforcement of the CFC shall be enforced by the fire prevention bureau and (2) sets the precedent for an annual Fire Department Report that is presented to council annually.
N/A
(c) Section 103.2 This section is removed as amendment (b) establishes enforcement responsibilities.
N/A
(d) Sections 104.12.1
and 104.12.2
Establishes the authority to obtain reimbursement from responsible individuals for the expenses of any emergency response and/or enforcement action by the City of Salinas.
N/A
3 Attachment A – Findings and Explanations
(e) Section 105.1.1.1
Specifies that all permits and inspections shall be charged a fee, and specifies that fee by referencing the current fee and charge report.
N/A
(f) Section 105.3.
Establishes the authority to obtain reimbursement from
responsible individuals or entities for permits, inspections, and associated enforcement action by the Salinas Fire
Department(SFD), to protect the public from fire or substances and situations.
N/A
(g) Section 105.6.50 Adds the requirement for an operational permit to operate a Christmas tree lot.
N/A
(h), (i),
(j), (k)
Section 109.4 to
109.4.2 and 109.5
Provides specific language in regards to persons who violate the prov isions of the fire code without; or in violation , of a permit. It provides specific rules for Penalties, Abatement of the Violation, Enforcement of the Code with regards to the Penal Code and provides recordation requirements of the violation.
N/A
(l) Section 111.4 Provides provisions to address failures of compliance with regards to violations of the code.
N/A
(m) Section 202 Adds 10 definitions to the Fire Code. All (n) Section 307.2.1 Adds required approvals from the Monterey Bay Air Resource District and the City prior to any” Open Burn” permits. All (o) Section 307.6
Provides general burni ng prohibitions of Trash, yard waste, rubbish and paper as fuel for bonfires, recreational fires, and fires in outdoor fireplaces. Additionally, provides
authorization for the SFD to extinguish a fire which creates a nuisance or adds to a hazardous situation.
All
(p) Section 310.2
Requires smoking lounges or “hookah cafes” to be subject to review and approval by the City of Salinas and Monterey County Health Department.
4, 5
(q) Section 503.1 Brings Appendix D – “Fire Apparatus Access Roads” into the body of the Fire Code. 1,2,3,4
(r),(s),
(t),(u),
(v) and
(w)
Sections 503.2.1,
503.2.3, 503.2.4,
503.2.6, 503.2.7,
and 503.2.8
Addresses maneuverability, access and turning radius in regards to fire department apparatus. Additionally, it set’s limits for minimum designed imposed loads, elevated surfaces, maximum grades and approach and departure angles of access roadways.
ALL
(x) Section 503.3 Provides specific locations and details for marking of curbs, fire lanes and access roads. 2, 4
(y) Section 503.4.2
Provides requirements for roadway design features including speed bumps, modern roundabouts and other traffic calming devices to be reviewed by the Fire Code Official.
1,2,4
(z) Section 503.6
Requires review of security gates or devices across a fire access roadway. It also provides specific widths and traffic
requirements with regards to traffic lanes, functionality of electric and manual gates along with specific occupancy requirements.
2,3,4
4 Attachment A – Findings and Explanations
(aa) Section 505.3
Requires maps – in electronic format, to be submitted to the Fire Code Official, compatible with current department
mapping services.
3,4
(bb) Section 506.1
Requires buildings with Hazardous Materials to provide an approved access key box on site at an approved location .
Additionally the MSDS sheets, building floor plans and
evacuations procedures shall be kept together in an approved location.
2, 3, 4, 5
(cc) Section 507.3
References and provides an alternative standard by referencing the Insurance Services Office, “Guide for Determination of Required Fire Flow”.
All
(dd) Section 507.5 References and provide s an alternative standard for Fire Hydrant Systems compliant with NFPA 291. All
(ee) Section 510.1
Provides an additional exception which would allow a
mitigation fee to be paid to the city to augment to coverage of a regional public safety radio system.
TBD
(ff) Section 903.2
Allows for separation walls and smoke detection systems instead of sprinklers for buildings of certain size and occupancy.
All
(gg) Section 903.3.1.3
Adds two additional requirements of 13D sprinklers. Leak testing and flow alarms are required prior to final of the installed system.
All
(hh) Section 903.3.5.1
Allows for domestic water-supply connection when approved by the Fire Code Official; additionally, it requires a single indicating control valve after the meter, but may be provided with a separate shut off-valve.
All
(ii) Section 907.8.6 Provides language to charge fees for false and nuisance alarms. 3, 4 (jj) Section 5001.5.1.1 Requires the hazardous materials management plan shall be placed in an approved location 1, 2, 3, 5
(kk) Section 5601.1
Amends the code to reference the State Fire Marshal ’s
regulations for handling of explosives. Additionally it references fireworks requirements back to Chapter 13A of Municipal Code.
3, 4, 5
(ll) Section 5704.2.9.6.1 Amends the code to address locations of where and how certain above-ground storage tanks are allowed. All
(mm) Section 5806.2 Amends to code to address locations of where and how certain fluids are contained based upon populated areas. All
(nn) Section 6104.2 Provides maximum capacity of bulk storage of LPG with established limits based upon populated areas. All
1 Administrative Standards does not require justification pursuant to HSC 17958, HSC 18941.5 or HSC 13869
5 Attachment A – Findings and Explanations
Findings for the Fire Code
Finding 1
The City of Salinas is situated in the Salinas Valley on California’s Central Coast in between the Santa Lucia and Gabilan mountain ranges. Potential flood conditions are a concern in to the City of Salinas.
The most flood prone areas include either side of the creeks, in the vicinity o f the airport, and the reclamation ditch which runs northwest -southwest through the City. The Natividad Creeks and Carr Lake are also prone to flooding during more intense storms. Flood in the low, central areas of the City of Salinas would affect the direct movement of fire apparatus. Two large fires at the same time during flood conditions would be disastrous. Automatic fire sprinklers may be the only fire control inside buildings within the flood area. Any delay in structural firefighting could allow a fire on our many wood shake or wood shingled structures to quickly involve a number of buildings. Additional fire apparatus and equipment from other communities responding on a mutual aid request may not be able to reach some fire areas. Access could be ob structed due to flooded streets and/or damaged bridges.
Automatic fire sprinkler systems would reduce demands on firefighting forces and protect buildings, which may be otherwise inaccessible to the fire department during flood conditions.
Further, the flood conditions described above carry the potential for overcoming the ability of the fire department to aid or assist in evacuations, rescues, and the emergency tasks demands inherent in such situations. The potential for the aforementioned flooding cond itions to result in limiting fire department emergency vehicular traffic, with resulting overtaxing fire department personnel, may further cause a substantial or total lack of protection against fire for the buildings and structures located within the jurisdiction.
Finding 2
All of Salinas is located within Seismic Design Category D according to Section 1613A of the 2022 California Building Code. Category D consists of the second highest potential risk category due to the frequency and magnitude of eart hquake activity nationwide. Seismic activity in this area occurs frequently and the real potential exists from four “active” faults. The greatest seismic threats are the San Andreas, and Calaveras Faults. The potential effects of earthquake activity incl ude isolating the City of Salinas from the surrounding area and restricting or eliminating internal circulation due to the potential for collapsing of highway overpasses and underpasses, along with other bridges in the district, and the potential for verti cal movement rendering surface travel unduly burdensome or impossible. Should an earthquake occur, built-in fire protection such as automatic fire sprinklers will allow the fire department to concentrate its efforts on areas of severe damage while the spri nkler systems will contain fires in areas where the water system still has pressure. Reduction in size of aboveground storage tanks containing flammable and combustible liquids and explosive materials will enhance the ability to contain fire as the result of such conditions.
Finding 3
Highway 101 bisects the City of Salinas. Transportation vehicles carrying known toxic, flammable, explosive, and hazardous materials heavily travel this highway. The potential for release or threatened release of a hazardous material along this route and others within the district is likely given the volume 6 Attachment A – Findings and Explanations
transported daily. Incidents of this nature will normally require all available emergency response personnel to prevent injury and loss of life and to prevent, as far as practicable, property loss.
Emergency personnel responding to such aforementioned incidents may be unduly impeded and delayed in accomplishing an emergency response as a result of this situation. With the potential result of undue and unnecessary risk to the protection of life and public safety and, in particular, endangering residents and occupants in buildings or structures without the protection of automatic fire sprinklers.
Finding 4
The City of Salinas is limited in its growth due to surrounding farmlands. This has caused high concentration of buildings and population density, whereby industrial areas of the City encroach and are in close proximity to commercial thoroughfare, business and residential areas. Restricting or prohibiting the storage , handling and use of certain explosive materials and flammable and combustible liquids is a means to reduce the hazard to life.
Finding 5
Prevailing north/south winds in the Salinas Valley increase the danger of a fire spreading from the place of origin, thereby increasing the need for built-in fire protection.
2022 California
Building
Standards
Code Adoption
MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
SAM KLEMEK, FIRE CHIEF
SKYLAR THORNTON, BAT TALION CHIEF/FIRE MARSHAL
LORENZO SANCHEZ, CODE ENFORCEMENT MANAGER
CITY COUNCIL – DECEMBER 6, 2022
Executive Summary
The California Building Standards Commission published the new California Building Standards Code on July 1, 2022
This code is required to take effect on January 1, 2023 Establishes consistent minimum requirements to safeguard public health, safety, and general welfare attributed to the built environment Jurisdictions are able to make amendments to this code City of Salinas modified:
California Green Building Standards Code related to recycling of construction debris Fire Code to address the unique local climatic, topographic, and geological conditions of Salinas
Background
Every three years, the California Building Standards Commission publishes the new California Building Standards Code
Publication in July to take effect on January 1st on the subsequent year The City last adopted the code cycle on November 5, 2019 City adopted local amendments to the California Green Building Standards Code related to construction debris recycling requirements Fire Code was amended to reflect the unique local climatic, topographic, and geological conditions of Salinas
The 2018 International Property Maintenance Code (IPMC) was also adopted as the basis for administration of code enforcement requirements Discussion
California Building Standards Commission adopts specific language, codes and building standards applicable throughout California
The Building Standards Commission published the California Building Standards Code on July 1, 2022 and will become State law on January 1, 2023 City also is adopting the 2021 International Property Maintenance Code Basis for administration of code enforcement requirements, establishing minimum maintenance standards for all existing facilities related to equipment, light, ventilation, heating, sanitation, and fire safety
The City of Salinas’ local amendments include:
California Green Building Standards Code based to reduce the amount of construction and demolition waste
Fire Code to reflect the local experience, equipment and staffing required by the Fire Department
To implement these codes and amendments, the City adopts an ordinance that codifies them in Chapters 9 and 13 of the Salinas Municipal Code CEQA
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).
Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378.
Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
Strategic Plan
This report supports the City of Salinas Strategic Plan goals and Objectives for Infrastructure and Environmental Sustainability, Public Safety, and Effective and Culturally Responsive
Government.
Recommendation
A motion to adopt the 2022
California Building Standards
Code along with the related local
amendments.
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-684, Version: 1
Minutes
Approve minutes of November 15, 2022.
See Legistar Link
City of Salinas Printed on 12/1/2022Page 1 of 1
powered by Legistar™
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-670, Version: 1
Financial Claims
Approve the financial claims report.
City of Salinas Printed on 12/1/2022Page 1 of 1
powered by Legistar™
Number Date Status Transaction Amount
462664 11/08/2022 Open $6,440.09
462665 11/08/2022 Open $19,783.00
462666 11/08/2022 Open $7,330.00
462667 11/15/2022 Open $158.44
462668 11/15/2022 Open $113.75
462669 11/15/2022 Open $189.00
462670 11/15/2022 Open $418.00
462671 11/15/2022 Open $189.00
462672 11/15/2022 Open $1,206.57
462673 11/15/2022 Open $212.00
462674 11/15/2022 Open $17.50
462675 11/15/2022 Open $395.00
462676 11/15/2022 Open $395.00
462677 11/15/2022 Open $1,500.00
462678 11/15/2022 Open $670.22
462679 11/15/2022 Open $627.97
462680 11/15/2022 Open $228.22
462681 11/15/2022 Open $1,910.50
462682 11/15/2022 Open $1,500.00
462683 11/15/2022 Open $12,505.92
462684 11/15/2022 Open $383.82
462685 11/15/2022 Open $717.23
462686 11/15/2022 Open $1,637.26
462687 11/15/2022 Open $211.25
462688 11/15/2022 Open $957.24
462689 11/15/2022 Open $940.52
462690 11/15/2022 Open $645.23
462691 11/15/2022 Open $633.81
462692 11/15/2022 Open $7,907.01
462693 11/15/2022 Open $2,673.02
462694 11/15/2022 Open $80,727.00
462695 11/15/2022 Open $80.00
462696 11/15/2022 Open $100.00
462697 11/15/2022 Open $100.00
462698 11/15/2022 Open $100.00
462699 11/15/2022 Open $497.27
462700 11/15/2022 Open $51,019.70
462701 11/15/2022 Open $1,934.00
462702 11/15/2022 Open $2,133.31
462703 11/15/2022 Open $125.00
462704 11/15/2022 Open $9,850.05
462705 11/15/2022 Open $616.98CEB
Catholic Charities of the Diocese of Monterey
CCSLI Inc
CDW-G
California Water Service
California Water Service
Carollo Engineers, Inc
CACEO
CACEO
CACEO
Award Company Of America
Benitez Security Services, Inc
Business Journal Publications, Inc.
Aramark Uniform & Career Apparel Group, Inc
Arrowhead Forensics
Assured Aggregates Company Inc
Ana Rueda De Vidales dba JAV Language Solutions
Andrew T Stein Dba ParkInk
Applied Maintenance Supplies & Solutions LLC
All Pets Hospital
Amazon.Com
American Supply Company
Acme Car Wash (William Pierce Inc)
AdvancedGeo, Inc
Alco Water
4 Imprint
72 Hour LLC dba Chevrolet of Watsonville/National
Ace Hardware
Alliance Career Training Solutions
Alliance Career Training Solutions
Maureen Kane & Associates
Shinobu Okano
Skylar Thornton
Tanya Crawford
Nicholas Thomas
Sam Klemek
Sean Valenzuela
Employment Development Department
Heidi Niggemeyer
Melissa Roman
U.S. Bank National Association ND
Employment Development Department
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
user: Josephine Fernandez Pages: 1 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462706 11/15/2022 Open $32,356.00
462707 11/15/2022 Open $9,195.83
462708 11/15/2022 Open $754.00
462709 11/15/2022 Open $4,631.25
462710 11/15/2022 Open $100.00
462711 11/15/2022 Open $1,700.53
462712 11/15/2022 Open $100.00
462713 11/15/2022 Open $6,581.71
462714 11/15/2022 Open $1,767.74
462715 11/15/2022 Open $607.06
462716 11/15/2022 Open $167.58
462717 11/15/2022 Open $240.70
462718 11/15/2022 Open $60,489.69
462719 11/15/2022 Open $602.38
462720 11/15/2022 Open $450.00
462721 11/15/2022 Open $387.69
462722 11/15/2022 Open $86.99
462723 11/15/2022 Open $459.98
462724 11/15/2022 Open $420.00
462725 11/15/2022 Open $371.28
462726 11/15/2022 Open $1,104.00
462727 11/15/2022 Open $2,571.11
462728 11/15/2022 Open $198.17
462729 11/15/2022 Open $273.00
462730 11/15/2022 Open $230.00
462731 11/15/2022 Open $50,306.30
462732 11/15/2022 Open $718.75
462733 11/15/2022 Open $4,240.35
462734 11/15/2022 Open $1,413.16
462735 11/15/2022 Open $2,975.84
462736 11/15/2022 Open $3.75
462737 11/15/2022 Open $275.00
462738 11/15/2022 Open $87.75
462739 11/15/2022 Open $5,855.00
462740 11/15/2022 Open $582.86
462741 11/15/2022 Open $3,651.12
462742 11/15/2022 Open $563.09
462743 11/15/2022 Open $2,574.36
462744 11/15/2022 Open $2,150.00
462745 11/15/2022 Open $3,779.71
462746 11/15/2022 Open $200.00
462747 11/15/2022 Open $1,898.04Ingram Book Company
HROD, Inc
Hydro Turf
ICMA
Greatmats.Com Corporation
Green Valley Industrial Supply
Ground Zero Analysis, Inc
Golden State Emergency Vehicle Service Inc
Goldfarb and Lipman
Granite Rock Co
First Alarm Security & Patrol Inc dba An Allied Un
G2Solutions, Inc
Global Water Technology, Inc
FAST Services
Fastenal Company
Ferguson US Hodings, Inc dba Ferguson Enterprises
Edilcia Perez dba Ella Fitness
Emergency Response Training Inc dba Defibthis Emer
ESRI
Dymaxion Research Ltd
East Bay Tire Company
Edges Electrical Group, LLC
Discount School Supply
Don Chapin Inc
DTS Hunter Service Inc
Danielle Clayton
Dataflow Business Systems Inc
Direct TV LLC
Comcast (Business)
Community Homeless Solutions
Consolidated Electrical Distributors, Inc.
Coast Automotive Warehouse Inc
Comcast (Business)
Comcast (Business)
Cintas
CivicPlus, LLC
CMP-1, Llc dba Boronda Manor
Charlie D. Zarza
Chrisp Company
Christopher Knapp
Central Coast Center For Independent
Central Coast Center For Independent
user: Josephine Fernandez Pages: 2 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462748 11/15/2022 Open $144.00
462749 11/15/2022 Open $580.67
462750 11/15/2022 Open $679.25
462751 11/15/2022 Open $4,150.00
462752 11/15/2022 Open $7,800.00
462753 11/15/2022 Open $57.85
462754 11/15/2022 Open $87.29
462755 11/15/2022 Open $509.72
462756 11/15/2022 Open $10,065.00
462757 11/15/2022 Open $487.85
462758 11/15/2022 Open $135,036.00
462759 11/15/2022 Open $600.00
462760 11/15/2022 Open $5,208.00
462761 11/15/2022 Open $60.01
462762 11/15/2022 Open $504.14
462763 11/15/2022 Open $370.00
462764 11/15/2022 Open $270.00
462765 11/15/2022 Open $8,728.35
462766 11/15/2022 Open $458.05
462767 11/15/2022 Open $48,346.74
462768 11/15/2022 Open $1,495.00
462769 11/15/2022 Open $86.50
462770 11/15/2022 Open $30.59
462771 11/15/2022 Open $5,760.00
462772 11/15/2022 Open $211.23
462773 11/15/2022 Open $5,931.22
462774 11/15/2022 Open $4,589.13
462775 11/15/2022 Open $1,038.61
462776 11/15/2022 Open $5,966.80
462777 11/15/2022 Open $131.07
462778 11/15/2022 Open $652.15
462779 11/15/2022 Open $1,406.00
462780 11/15/2022 Open $4,700.57
462781 11/15/2022 Open $1,195.00
462782 11/15/2022 Open $323.70
462783 11/15/2022 Open $1.00
462784 11/15/2022 Open $201.89
462785 11/15/2022 Open $1,187.87
462786 11/15/2022 Open $990.25
462787 11/15/2022 Open $226.15
462788 11/15/2022 Open $9,000.00
462789 11/15/2022 Open $2,678.00Safety-Kleen Systems, Inc.
RELX Inc. dba LexisNexis, Division of RELX Inc.
Rent-A-Fence.com, Inc
Robert Half International, Inc dba Accountemps, Of
Quality Water Enterprises
RDO Equipment Company
Regional Government Services
Preferred Alliance Inc.
Pure Gold Forensics, Inc
Pure Water
Patricia Meraz
Petsmart
Pinnacle Medical Group Inc dba Pinnacle Healthcare
Pacific Gas and Electric Company
Pacific Truck Parts Inc
Pape Machinery, Inc.
North American Catholic Educational Programming Fo
Office Depot Business Service Division
One Workplace L Ferrari, LLC dba Peninsula Busines
Monterey Signs, Inc.
Monterey Transfer and Storage Inc
My Chevrolet
Monterey One Water
Monterey One Water
Monterey Pen Engineering
Midwest Tape, LLC dba Midwest Tape
Mila Rianto
Monterey County Weekly
McGilloway, Ray, Brown and Kaufman
McLaughlin Painting
Michael Spencer dba Tire & Wheel World
Kimley Horn And Assoc Inc
LexisNexis Risk Data Management Inc Accurint Acct
Marina Hotels CI LLC dba Country Inn & Suites
John P. Falkenberg
Johnson Associates
Kelly-Moore Paint Company
Jahaira Paola Navarro dba Dance Into Fitness with
Jan Roehl Dba Jan Roehl Consulting
Jay Darwin Olsznowski
Interactive Data, LLC dba IDI
Interstate Battery System Inc
user: Josephine Fernandez Pages: 3 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462790 11/15/2022 Open $350.00
462791 11/15/2022 Open $449.81
462792 11/15/2022 Open $60.40
462793 11/15/2022 Open $1,060.00
462794 11/15/2022 Open $6,777.70
462795 11/15/2022 Open $9,058.62
462796 11/15/2022 Open $81,526.64
462797 11/15/2022 Open $1,524.84
462798 11/15/2022 Open $211.09
462799 11/15/2022 Open $572.93
462800 11/15/2022 Open $25.00
462801 11/15/2022 Open $400.00
462802 11/15/2022 Open $100.00
462803 11/15/2022 Open $570.00
462804 11/15/2022 Open $255.40
462805 11/15/2022 Open $347.69
462806 11/15/2022 Open $1,395.01
462807 11/15/2022 Open $1,321.92
462808 11/15/2022 Open $15,907.75
462809 11/15/2022 Open $4,450.00
462810 11/15/2022 Open $1,734.54
462811 11/15/2022 Open $792.34
462812 11/15/2022 Open $104.83
462813 11/15/2022 Open $3,535.01
462814 11/15/2022 Open $4,369.04
462815 11/15/2022 Open $337.32
462816 11/15/2022 Open $718.02
462817 11/15/2022 Open $1,669.50
462818 11/15/2022 Open $232.27
462819 11/15/2022 Open $18.90
462820 11/22/2022 Open $55.50
462821 11/22/2022 Open $89.50
462822 11/22/2022 Open $98.35
462823 11/22/2022 Open $425.85
462824 11/22/2022 Open $170.01
462825 11/22/2022 Open $9.57
462826 11/22/2022 Open $18,920.31
462827 11/22/2022 Open $10,800.00
462828 11/22/2022 Open $1,959.71
462829 11/22/2022 Open $6,733.00
462830 11/22/2022 Open $1,733.01
462831 11/22/2022 Open $1,668.00Amazon.Com
AJ's Equipment Company
Alison Heller-Ono dba Worksite International
All Pets Hospital
7 Eleven
ABAG Power Purchasing Pool
AdvancedGeo, Inc
Brian Johnson
Gabriel Gonzalez
Roberto Filice
Patricia Beltran
Alberto Duran
Blake Ziebell
W W Grainger Inc
WCAF, LLC dba Watsonville Ford
WCDJR LLC dba Watsonville Chrysler Dodge Jeep Ram
Verizon Wireless
Verizon Wireless
Vision Service Plan
Valley Saw Shop
Vegetable Growers Supply Company
Veritiv Operating Company Formerly xpedx
Tri County Concrete and Supply, Inc
U.S. Bank National Association ND
UTG, Inc
The Ed Jones Company, Incorporated
Thomson-West/Barclays
Tiffanys Body Shop
Suthided Livingston
T-Mobile USA
Target Pest Control
Summit Uniform
Sunlite Auto Glass, Inc
Sunstar Media
Silver and Wright LLP
Smith and Enright Landscaping
Sturdy Oil Company
SettlementOne Screening Corporation dba PeopleFact
Shaw HR Consulting Inc
Shawn Miguel Russell dba Russell Investigations
Salinas Urgent Care Doctors On Duty
San Lorenzo Lumber
user: Josephine Fernandez Pages: 4 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462832 11/22/2022 Open $8,246.75
462833 11/22/2022 Open $1,782.70
462834 11/22/2022 Open $210.00
462835 11/22/2022 Open $959.21
462836 11/22/2022 Open $645.23
462837 11/22/2022 Open $12,040.47
462838 11/22/2022 Open $168.13
462839 11/22/2022 Open $9,120.75
462840 11/22/2022 Open $21.99
462841 11/22/2022 Open $120.33
462842 11/22/2022 Open $990.00
462843 11/22/2022 Open $46.12
462844 11/22/2022 Open $61.62
462845 11/22/2022 Open $45,000.00
462846 11/22/2022 Open $3,061.56
462847 11/22/2022 Open $6,457.50
462848 11/22/2022 Open $13,425.00
462849 11/22/2022 Open $525.00
462850 11/22/2022 Open $770.11
462851 11/22/2022 Open $2,995.00
462852 11/22/2022 Open $140.00
462853 11/22/2022 Open $7,800.00
462854 11/22/2022 Open $28,351.33
462855 11/22/2022 Open $370.50
462856 11/22/2022 Open $140.37
462857 11/22/2022 Open $3,653.75
462858 11/22/2022 Open $360.70
462859 11/22/2022 Open $575.50
462860 11/22/2022 Open $51,223.36
462861 11/22/2022 Open $2,055.87
462862 11/22/2022 Open $300.00
462863 11/22/2022 Open $10,841.01
462864 11/22/2022 Open $4,950.00
462865 11/22/2022 Open $276.98
462866 11/22/2022 Open $709,573.82
462867 11/22/2022 Open $38,079.08
462868 11/22/2022 Open $664.01
462869 11/22/2022 Open $828.57
462870 11/22/2022 Open $451.71
462871 11/22/2022 Open $339.99
462872 11/22/2022 Open $1,037.10
462873 11/22/2022 Open $1,005.90Extra Space Management Inc Elite K-9, Inc
Enterprise Holdings, Inc dba Ean Services, Llc Ser
Extra Space Management Inc
Dudek
East Bay Tire Company
Edges Electrical Group, LLC
Dilbeck And Sons
Discount School Supply
Don Chapin Inc
Consolidated Electrical Distributors, Inc.
Dana Cornelison
Dataflow Business Systems Inc
Coast Automotive Warehouse Inc
Comcast (Business)
Community Homeless Solutions
Central Coast Systems Inc
Cintas
ClientFirst Consulting Group, LLC dba ClientFirst
Canine Development Group Inc
Carl Warren & Company, LLC
Central Coast Center For Independent
Cagwin & Dorward, LLC
California Water Service
Candid dba Foundation Center
BrightView Landscape Services, Inc
C3 Engineering, Inc.
Cadence Team, Inc
Badge Frame, Inc.
Bearing Engineering Company
Brandon Wright dba Centricity GIS, LLC
AT&T Mobility
AT&T Mobility
Axon Enterprise, Inc.
AT and T
AT and T
AT and T
Ana Rueda De Vidales dba JAV Language Solutions
Applied Maintenance Supplies & Solutions LLC
Aramark Uniform & Career Apparel Group, Inc
American Supply Company
Amerigas
user: Josephine Fernandez Pages: 5 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462874 11/22/2022 Open $1,084.81
462875 11/22/2022 Open $1,654.04
462876 11/22/2022 Open $2,789.87
462877 11/22/2022 Open $170,123.15
462878 11/22/2022 Open $5,200.00
462879 11/22/2022 Open $1,020.00
462880 11/22/2022 Open $311.62
462881 11/22/2022 Open $197.69
462882 11/22/2022 Open $251.28
462883 11/22/2022 Open $5.45
462884 11/22/2022 Open $22,207.20
462885 11/22/2022 Open $15,752.34
462886 11/22/2022 Open $1,343.05
462887 11/22/2022 Open $311.76
462888 11/22/2022 Open $84.60
462889 11/22/2022 Open $2,330.59
462890 11/22/2022 Open $13,364.47
462891 11/22/2022 Open $684.29
462892 11/22/2022 Open $1,104.47
462893 11/22/2022 Open $10,000.00
462894 11/22/2022 Open $228.00
462895 11/22/2022 Open $1,301.17
462896 11/22/2022 Open $678.57
462897 11/22/2022 Open $109.96
462898 11/22/2022 Open $32,812.00
462899 11/22/2022 Open $538.20
462900 11/22/2022 Open $160.00
462901 11/22/2022 Open $391.20
462902 11/22/2022 Open $33,764.14
462903 11/22/2022 Open $28,086.52
462904 11/22/2022 Open $27,108.97
462905 11/22/2022 Open $2,000.00
462906 11/22/2022 Open $1,663.79
462907 11/22/2022 Open $815.11
462908 11/22/2022 Open $620.27
462909 11/22/2022 Open $1,400.40
462910 11/22/2022 Open $683.96
462911 11/22/2022 Open $8,750.00
462912 11/22/2022 Open $392.05
462913 11/22/2022 Open $968.05
462914 11/22/2022 Open $177.00
462915 11/22/2022 Open $9,772.80Monterey Signs, Inc.
Monterey County The Herald
Monterey County The Herald
Monterey Sanitary Supply Inc Altius Medical
Mission Communications, LLC
Mity-Lite, Inc.
Monterey County Health Department
Life Assist
Long Valley Leasing
Midwest Tape, LLC dba Midwest Tape
LAZ KARP Associates, LLC
LAZ KARP Associates, LLC
Leon De Asis
Kronos Incorporated
L.N. Curtis & Sons
LAZ KARP Associates, LLC
Kanco Inc. / Mighty Auto Parts
Karla's Janitorial & Suppliers, LLC
Kosmont & Associates, Inc. dba Kosmont Companies
Johnson Electronics
Jose Daniel Barrera dba Signa Signs & Graphics
Jose Luis Corral dba Salinas Pizza
Interstate Battery System Inc
Jensco Inc Dba J M Electric
Jimmy Vanhove dba Precision K9
Ines Mendoza
Ingram Book Company
Interim Inc
Hinderliter De Llamas and Associates
Home Depot Credit Services
Hydro Turf
Green Valley Industrial Supply
Greens Camera Shop
Harris and Associates
Glasswork by Design
Gold Star Motors dba Gold Star Buick GMC
Green Rubber Kennedy Ag
First Alarm Security & Patrol Inc dba An Allied Un
First United Methodist Church Salinas
Forrest L. Story dba Public Sector Excellence
Fastenal Company
Ferguson US Hodings, Inc dba Ferguson Enterprises
user: Josephine Fernandez Pages: 6 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462916 11/22/2022 Open $900.00
462917 11/22/2022 Open $591.00
462918 11/22/2022 Open $82.73
462919 11/22/2022 Open $21,061.25
462920 11/22/2022 Open $135.13
462921 11/22/2022 Open $5,833.33
462922 11/22/2022 Open $155.00
462923 11/22/2022 Open $1,349.50
462924 11/22/2022 Open $28,479.96
462925 11/22/2022 Open $630.00
462926 11/22/2022 Open $257.68
462927 11/22/2022 Open $1,750.00
462928 11/22/2022 Open $345.68
462929 11/22/2022 Open $128,086.46
462930 11/22/2022 Open $2,306.31
462931 11/22/2022 Open $364.62
462932 11/22/2022 Open $2,025.00
462933 11/22/2022 Open $50,009.48
462934 11/22/2022 Open $20.75
462935 11/22/2022 Open $1,217.21
462936 11/22/2022 Open $171.83
462937 11/22/2022 Open $5,567.50
462938 11/22/2022 Open $150.00
462939 11/22/2022 Open $6,806.25
462940 11/22/2022 Open $87.65
462941 11/22/2022 Open $398.70
462942 11/22/2022 Open $285.00
462943 11/22/2022 Open $161.75
462944 11/22/2022 Open $1,434.85
462945 11/22/2022 Open $426.76
462946 11/22/2022 Open $16,902.07
462947 11/22/2022 Open $5,096.82
462948 11/22/2022 Open $963.05
462949 11/22/2022 Open $245.94
462950 11/22/2022 Open $560.00
462951 11/22/2022 Open $24.02
462952 11/22/2022 Open $2,408.00
462953 11/22/2022 Open $2,700.00
462954 11/22/2022 Open $158.24
462955 11/22/2022 Open $696.38
462956 11/22/2022 Open $86,319.00
462957 11/22/2022 Open $262.50Summit Uniform
Star Sanitation Services
Stommel Inc dba Lehr
Sturdy Oil Company
Snap-On Tools Corporation
Somach Simmons & Dunn
Special Services Group LLC
Shepard AV LLC dba McCune Audio Visual Lighting
Smart and Final Iris
Smith and Enright Landscaping
Sentry Alarm System
Shape Inc.
Sharpline Solutions, Inc
Safety-Kleen Systems, Inc.
San Lorenzo Lumber
Scott's PPE and Recon
Russell Branson dba Russ Branson Consulting
Ruth Maria Milla-Leon dba Andersen's Lock & Safe
S & L Investments dba Salinas Valley ProSquad
Rexel USA, Inc dba Platt Electric Supply
Rincon Consultants, Inc.
Russell Auria Pest Control Services
Premier Builders, Inc.
Pure Water
Republic Services of Salinas
Pacific Truck Parts Inc
Pape Machinery, Inc.
Pedro C Estrada Dba Estrada Janitorial Service
Pacific Crest Engineering Inc.
Pacific Gas and Electric Company
Pacific Gas and Electric Company
One Workplace L Ferrari, LLC dba Peninsula Busines
Operation Freedom Paws
Oriental Trading Company Inc
National Development Council
Natividad Medical Center
Office Depot Business Service Division
Municipal Maintenance Equipment dba MME
MV Cheng & Associates Inc.
My Jeep
Monterra Ranch Of Monterey Home Owner's Associatio
MP 21 Soledad Street, L.P.
user: Josephine Fernandez Pages: 7 of 8 Wednesday, November 23, 2022 Number Date Status Transaction Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 11/8/2022 - To Payment Date: 11/23/2022 Payee Name
462958 11/22/2022 Open $275.00
462959 11/22/2022 Open $800.00
462960 11/22/2022 Open $2,115.14
462961 11/22/2022 Open $4,848.37
462962 11/22/2022 Open $1,168.97
462963 11/22/2022 Open $856.00
462964 11/22/2022 Open $2,993.31
462965 11/22/2022 Open $398.50
462966 11/22/2022 Open $32,270.05
462967 11/22/2022 Open $92.53
462968 11/22/2022 Open $37,128.54
462969 11/22/2022 Open $1,277.51
462970 11/22/2022 Open $4,596.05
462971 11/22/2022 Open $873.92
462972 11/22/2022 Open $894.60
462973 11/22/2022 Open $94,779.13
462974 11/22/2022 Open $1,880.00
462975 11/22/2022 Open $1,111.59
462976 11/22/2022 Open $10,508.32
462977 11/22/2022 Open $2,858.36
462978 11/22/2022 Open $417.37
462979 11/22/2022 Open $636.65
462980 11/22/2022 Open $10,754.65
462981 11/22/2022 Open $1,750.00
462982 11/22/2022 Open $49.01
462983 11/22/2022 Open $1,563.00
462984 11/22/2022 Open $1,563.00
462985 11/22/2022 Open $40.25
462986 11/22/2022 Open $57.20
462987 11/22/2022 Open $759.71
462988 11/22/2022 Open $54.99
462989 11/22/2022 Open $1,563.00
462990 11/22/2022 Open $1,563.00
462991 11/22/2022 Open $1,563.00
462992 11/22/2022 Open $1,563.00
462993 11/22/2022 Open $1,563.00
462994 11/22/2022 Open $1,563.00
462995 11/22/2022 Open $1,563.00
$2,861,036.66Type Check Totals:
General Account - General Account Totals
Spectrum Auto Touch Up Inc.
Swinerton Builders
William & Teresa Nippes
Raymond Handling Concepts Corp
Rod Bane
Samir Panjwani
Jennifer Scudder c/o Scudder Roofing Sun Energy
Oscar Pioquinto-Morales
Paden & Bletscher Construction Inc.
Billy Dzuy Nguyen
California Rodeo
Cati Case c/o Lovotti Inc
Willdan Financial Services
Worldpac
Alvarado Street Brewery
Walmart c/o Capitol One
WCAF, LLC dba Watsonville Ford
Wilbur-Ellis Company
W W Grainger Inc
W&M Marketing Group Inc dba B-Impressed Branding
Wallace Group A California Corporation
Verizon Wireless
Vintage Contractors, Inc
VNA Community Services Inc
Valley Saw Shop
Vals Plumbing and Heating Inc
Verizon Wireless
U.S. Bank National Association ND
United Parcel Service
University Corporation at Monterey Bay
Tri County Fire Protection
Trowbridge Enterprises dba Palace Art and Office S
U.S. Bank National Association dba U.S. Bank Equip
The Ed Jones Company, Incorporated
Trentman Corp. dba Interstate Sales/T-Man Traffic
Tri County Concrete and Supply, Inc
Target Pest Control
Tehama Golf Club LLC
user: Josephine Fernandez Pages: 8 of 8 Wednesday, November 23, 2022 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#22-620, Version: 1
Professional Service Agreement with Ecology Action of Santa Cruz for the Salinas Active Transportation Plan
Approve a Resolution approving an agreement for Professional Services between the City of Salinas and Ecology Action of Santa Cruz for the Active Transportation Plan; and authorizing the use of Active Transportation Plan funds up to $212,136.18 for the agreement with Ecology Action of Santa Cruz for the Salinas Active Transportation Plan.
City of Salinas Printed on 12/1/2022Page 1 of 1
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Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: DECEMBER 6, 2022
DEPARTMENT: PUBLIC WORKS, TRANSPORTATION & TRAFFIC DIVISION FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: ANDREW EASTERLING, TRAFFIC ENGINEER
TITLE: PROFESSIONAL SERVICE AGREEMENT BETWEEN THE CITY
OF SALINAS AND ECOLOGY ACTION OF SANTA CRUZ FOR
THE SALINAS ACTIVE TRANSPORTATION PLAN
RECOMMENDED MOTION:
A motion to approve a Resolution 1) approving the agreement for Professional Services between the City of Salinas and Ecology Action of Santa Cruz for the Active Transportation Plan ; and 2) authorizing the use of Active Transportation Plan funds up to $212,136.18 for the agreement with Ecology Action of Santa Cruz for the Salinas Active Transportation Plan.
BACKGROUND:
The City of Salinas is well-positioned to increase walking and bicycling for transportation. It has a mild climate most of the year, is relatively flat and has an existing 95 miles of connected bikeways. However, there are substan tial gaps in the current bicycle network and much of the network is in relatively disconnected islands that create barriers to bicycling on streets with high speed and volumes of vehicles and create safety issues when people bike on streets without a dedicated facility. In addition, although the sidewalk network in Salinas is generally well developed, there are some gaps and the sidewalks in many areas need repair or replacement.
The City’s current bicycle and pedestrian plans were developed in the early 2 000s, and there is a need for an update compressive active transportation planning document. Additionally , the City completed an Active Transportation Existing Conditions and Needs Assessment in 2018 identifying the need for further active transportation planning. The City of Salinas and Ecology Action partnered on a Caltrans Sustainable Transportation Planning Grant to develop an Active Transportation Plan. The City of Salinas was the prime applicant and Ecology Action was a co - applicant. The team was successful, and Caltrans awarded a grant in the of $394,844 to the City of Salinas for the Active Transportation Plan. Grant funds will help the City and Ecology Action conduct outreach to build upon and integrate the work that was already completed to d eliver an updated and comprehensive Active Transportation Plan.
The City of Salinas Active Transportation Plan will build from the 2018 Salinas Active Transportation Needs Assessment and other current work, and provide systematic, iterative community en gagement, focusing on critical agency stakeholders as well as disadvantaged Page | 2
communities, in developing a community supported set of implementable active transportation project improvements that will encourage active modes and increase safety for all. This plan develops the strategy to improve bicycle and pedestrian connectivity and safety by expanding existing bicycle networks, improving pedestrian circulation, reducing vehicle trips, creating complete streets, and building a healthy and livable community. The plan is intended to act as a combined update of the 2004 Pedestrian Plan and the 2002 Bikeways Plan and provide a strategy for city -wide sustainable transportation growth and opportunities to support connection and integration into the regional active transportation network. This plan will help the City build consensus around key projects that can continue Salinas’ success in supporting active transportation. The plan will include a robust outreach effort that uses a diverse set of tools to meet people where they are at, a community driven prioritization process to select projects for design and implementation, discussion and agreement on the policy and programmatic improvements to support the network, and a design process that will result in concepts that are feasible and fundable.
In consideration for the current COVID -19 environment, some public outreach efforts, and stakeholder meetings will be held on-line and in-person.
The proposed agreement for Professional Services between the City of Salinas and Ecology Action of Santa Cruz establishes the terms, conditions and responsibilities between the City and Ecology Action for the scope of work to develop the Active Transportation Plan.
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:
Development of the Active Transportation Plan supports the City Council goals of “Infrastructure and Environmental Sustainability” and “Public Safety”
DEPARTMENTAL COORDINATION:
Public Works will oversee the development of the Active Transportation Plan. Public Works will work closely with the Community Development Department and coordinate with the General Plan Update. The Finance Department provide s fiscal monitoring and reporting information for the grant agreement.
FISCAL AND SUSTAINABILITY IMPACT:
This action authorizes the use of Active Transportation Plan funds (CIP: 5800 .50.9349) up to $212,136.18 for the agreement with Ecology Action of Santa Cruz to develop the Salinas Active Transportation Plan. There is sufficient funding available in CIP 5800.50.9349.
ATTACHMENTS:
Resolution
Attachment 1: Professional Services between the City of Salinas and Ecology Action of Santa Cruz
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION 1) APPROVING THE AGREEMENT FOR PROFESSIONAL
SERVICES BETWEEN THE CITY OF SALINAS AND ECOLOGY ACTION OF SANTA CRUZ FOR THE ACTIVE TRANSPORTATION PLAN; AND 2) AUTHORIZING THE USE OF ACTIVE TRANSPORTATION PLAN FUNDS (CIP: 5800.50.9349) UP TO $212,136.18 FOR THE AGREEMENT WITH ECOLOGY ACTION OF SANTA CRUZ FOR THE SALINAS ACTIVE TRANSPORTATION PLAN.
WHEREAS, Ecology Action of Santa Cruz was a co-applicant on the Caltrans a Sustainable Transportation Planning Grant to develop an Active Transportation Plan; and
WHEREAS, Ecology Action of Santa Cruz 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.
WHEREAS, the City’s application was awarded $394,844 in Transportation Planning Grant Program funds and the City is providing $76,156 in matching funds;
WHEREAS, the City has a master fund agreement with Caltrans to receive state funds and is responsible for regional transportation planning and implementation;
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).
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby approves the agreement for Professional Services between the City of Salinas and Ecology Action of Santa Cruz for the Active Transportation Plan and authorizes the City Manager to sign the agreement on behalf of the City; and
BE IT FURTHER RESOLVED that the Salinas City Council hereby approve a Resolution authorizing the use of Active Transportation Plan funds ( CIP: 5800.50.9349) up to $212,136.18 for the agreement with Ecology Action of Santa Cruz for the Salinas Active Transportation Plan.
PASSED AND APPROVED this 6th day of December 2022, by the following vote:
AYES:
NOES:
ABSENT:
2 ABSTAIN:
APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Form: Professional Services Agreement v. January 2021 Page 1 of 16 Ecology Action of Santa Cruz
November 2022
AGREEMENT
FOR PROFESSIONAL SERVICES
BETWEEN
THE CITY OF SALINAS AND ECOLOGY
ACTION OF SANTA CRUZ
Form: Professional Services Agreement v. January 2021 Page 2 of 16 Ecology Action of Santa Cruz
November 2022
Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4
1. Scope of Service. ................................................................................................................. 4
2. Term; Completion Schedule. ............................................................................................... 4
3. Compensation. ..................................................................................................................... 4
4. Billing. ................................................................................................................................. 5
5. Meet & Confer. .................................................................................................................... 5
6. Additional Copies................................................................................................................. 5
7. Responsibility of Consultant. ............................................................................................... 5
8. Responsibility of City. ......................................................................................................... 6
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. ............................................................................................................... 7
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. ....................................................................................... 9
21. Jurisdiction and Venue. ........................................................................................................ 9
22. Severability .......................................................................................................................... 9
23. Notices. ................................................................................................................................ 9
24. Nondiscrimination.............................................................................................................. 10
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. ...................................................................................................................... 11
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32. Legal Representation. ........................................................................................................ 11
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 .......................................................................................................... 16
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November 2022
AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND ECOLOGY ACTION OF SANTA CRUZ
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 Ecology Action of Santa Cruz, a 501(c)3 non-profit organization, with its principle place of business located at 877 Cedar Street, Suite 240, Santa Cruz, CA 95060 (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.
WHEREAS, the Sustainable Transportation Planning Grant Program was created to support the California Department of Transportation's ("Caltrans") mission to provide a safe, sustainable, integrated and efficient transportation system to enhance California's economy and livability;
WHEREAS, the City and the Consultant submitted an application for the Sustainable Transportation Planning Grant for the City of Salinas Active Transportation Plan;
WHEREAS, the City’s application was awarded $394,844 in Transportation Planning Grant Program funds and the City is providing $76,156 in matching funds;
WHEREAS, the City has a master fund agreement with Caltrans to receive state funds and is responsible for regional transportation planning and implementation;
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 November ___, 2022, and shall terminate on June 25, 2025, 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 as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement
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shall not exceed two hundred twelve thousand, one hundred thirty-six dollars, and eighteen cents ($212,136.18).
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.
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.
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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) Steve Carrigan, City Manager, or his 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 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,
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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.
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
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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 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.
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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:
City Manager
City of Salinas
200 Lincoln Avenue
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:
Amelia Conlen
Ecology Action
877 Cedar Street, Suite 240
Santa Cruz, CA 95060
(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.
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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.
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.
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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 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
____________________________
Steve Carrigan
City Manager
APPROVED AS TO FORM:
_________________________
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□ Christopher A. Callihan, City Attorney, or
□ Rhonda Combs, Assistant City Attorney
CONSULTANT
___________________________________
By: ___________________
Its: ___________________________
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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 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 S tatutory 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 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.
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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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Exhibit B- Scope of Service
[Scope of Service; Compensation]
Scope of Work Checklist
The Scope of Work (SOW) is the official description of the work that is to be completed during the contract. Tasks 1-6 outlined in the SOW are for illustrative purposes only.
Applications with missing components will be at a competitive disadvantage. Please use this checklist to make sure your Scope of Work is complete.
Scope of Work Checklist
() Ensure these items are completed prior to submitting to Caltrans Use the Fiscal Year 2022-23 template provided
Include the activities discussed in the grant application List all tasks using the same title as stated in the Project Cost and Schedule Include task numbers in accurate and proper sequencing, consistent with the Cost and Schedule
Exclude sub-task numbers; only include sub-headings
Exclude tasks for project management and/or staff/consultant coordination; these activities should be spread among relevant tasks
Include a thorough Introduction to describe relevant background, related planning efforts, the project and project area demographics, including a description of the disadvantaged community involved with the project, if applicable
Include a thorough and accurate narrative description of each task
Task 01 is a required task. It must be titled “Project Administration”, it cannot exceed 5% of the grant award amount, and only the grantee and sub- recipient(s) can charge against this Task. This Task must only include the following activities and deliverables:
• Caltrans and grantee Project kick-off meeting at the start of the grant • Invoicing and quarterly reporting to Caltrans
• DBE Reporting (federal grants only)
Include Task 02 for the procurement of a consultant (if needed). This task is for the grantee and sub-recipient(s) only.
Include detailed public participation and services to diverse communities in the Public Outreach Task (excluding technical projects)
Identify public outreach strategies in a manner that provides flexibility and allows for a diverse range of outreach methods (both in-person and on-line), considering the current COVID-19 environment (excluding technical projects) Include a Task(s) for a Draft and Final product. The draft plan must include an opportunity for the public to provide feedback (excluding technical projects).
Include a summary of next steps your agency will take towards implementing the project in the Final Product
List achievable project deliverables for each Task
EXCLUDE environmental, complex design, engineering work, and other ineligible activities outlined in the Grant Application Guide