Agenda Packet — Salinas City Council, January 24, 2023

Tuesday, January 24, 2023
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 Andrew Sandoval, 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

January 24, 2023City Council Meeting Agenda - Final

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.

ZOOM WEBINAR PARTICIPATION
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PLEDGE OF ALLEGIANCE

ROLL CALL

CITY OF CHAMPIONS
Brad Clinton, District 3 Resident

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 or attend the Zoom Webinar and use the "Raise Hand" icon. Public comment may also be submitted via email at [email protected] and will be entered into the record.

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.

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.

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January 24, 2023City Council Meeting Agenda - Final

PRESENTATION
Councilmember comments on presentations are generally limited to three minutes.

ID#23-032 2022 VISTA Update and Accomplishments
Recommendation: No action required. This report is presented for informational purposes only.

ID#23-059 Police Officer Staffing and Call Prioritization Recommendation: No action required. This report is presented for informational purposes only.

CONSIDERATION
ID#23-062 Review of Proclamation of Local Emergency: 2023 Winter Storms Recommendation: Consider finding that the local emergency related to the 2023 Winter Storms no longer exists.

ID#23-020 Monterey County Tourism Improvement District Renewal Recommendation: Approve a Resolution authorizing the renewal of the Monterey County Tourism Improvement District (MCTID).

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#23-015 Minutes
Recommendation: Approve minutes of December 13, 2022 and January 10, 2023.

ID#23-056 Financial Claims
Recommendation: Approve financial claims report.

ID#23-040 Amendment to Professional Services Agreement with CSG Consultants Recommendation: Approve a Resolution authorizing the City Manager to enter into an amendment to a professional services agreement entered on June 21, 2022, between the City of Salinas and CSG Consultants to include project/construction management services for the repairs/renovations of fire stations 1-6.

ID#23-045 Fire Station Security Camera Systems
Recommendation: Approve a Resolution amending an agreement approved by the City Council (Resolution No. 22510 (N.C.S.)) for the purchase and installation of Verkada security camera systems at all fire stations through MJ Communications to increase the total cost to an amount not exceeding $242,048.98.

ID#23-046 Direct Purchase of 3 Lifepack-15 Cardiac Monitors from Global Medical Response
Recommendation: Approve a Resolution approving the direct purchase of LIFEPAK-15 cardiac monitors from Global Medical Response in the total amount of $91,914.57.

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January 24, 2023City Council Meeting Agenda - Final
ID#23-053 Fire Supervisors Association 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 Fire Supervisors Association (FSA), for a term ending on December 31, 2025, and approving modification to the Classification - Salary Schedule for the wage adjustments.

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.

CLOSED SESSION
Receive public communications from the audience on Closed session items.

The City Council will recess to closed session pursuant to:

ID#23-060 a. 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.
b. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Alisal Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV00340.

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

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January 24, 2023City Council Meeting Agenda - Final
This agenda was posted on January 19, 2023 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.

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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-032, Version: 1
2022 VISTA Update and Accomplishments
No action required. This report is presented for informational purposes only.

City of Salinas Printed on 1/19/2023Page 1 of 1
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Housing Production VISTA
January 2022 - January 2023
January 10, 2023
Presented By:

David Vigil, Housing Coordinator VISTA
Community Development Department

Housing Element Annual Progress
Report
 Each jurisdiction is required to prepare
an annual progress report (APR) and
submit by April 1st
 APR provide updates on the
implementation of the Housing Element
and the progress being made in satisfying
the regional housing need allocation
(RHNA)
 Tables report on activity that happened in
the Calendar year

Preapproved Accessory Dwelling Unit
Plan Program
 Educational materials for the
preapproved plans
• Guidebook
 Outreach
• Workshops
• Website update
• Social Media
• Radio
 Research
• ADU financing
 Farmworker Housing Oversight Committee
• In 2018, the City commissioned the Salinas
and Pajaro Valley Farmworker Housing Study
and Action Plan
• The City of Salinas and the Monterey Bay
Economic Partnership (MBEP) support the
implementation of this plan through
coordination of the Farmworker Oversight
Committee
 Suitable Development Sites Tool
Regional Farmworker Housing Study
The Prohousing Designation
Program Application
 Prohousing Designation Program
authorized by the 2019-20 Budget Act
 Tasked HCD with designating
jurisdictions as “Prohousing” when
they demonstrate policies and
strategies to accelerate housing
production
 Beginning July 1, 2021 HCD began
accepting applications

Application Requirements
 Threshold Requirements
• Compliant Housing Element
• Current Annual Progress
Report
• Supportive zoning changes
• Housing law compliance
 Designation Benefits
• Priority processing
• Funding points
Affordable Housing Sustainable Communities Grant
Transformative Climate Communities
Infill Infrastructure Grant Program
Transit and Intercity Rail Capital Program
Other State housing and non-housing funding sources
1 2
3 4
5 30 Point
Minimum
Application Process
 Scoring mechanics
 Submittal timeline
 Application and guidelines released
December 15, 2022
 $26 million in funds available to
designated jurisdictions
 Applications will be considered for award
within six geographic designations
 The City may be able to receive up to
$1,680,000 in new funding
 City is on track to be 1st designated
Central Coast jurisdiction and awardee
Prohousing Incentive Pilot Program
Questions & Comments
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-059, Version: 1
Police Officer Staffing and Call Prioritization
No action required. This report is presented for informational purposes only.

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POLICE CHIEF ROBERTO FILICE
Police Officer Staffing
and
Call Prioritization
“We can do anything, but we can’t do
everything and still keep our
community the safest it can be.”
J A N U A R Y 9 , 2 0 2 3
P R E S E N T E R :

C H I E F R O B E R T O F I L I C E

POLICE CHIEF ROBERTO FILICE
2 18 Officer Vacancies (14 funded and 4 frozen)
143 Sworn Positions Filled
CURRENT STAFFING LEVELS (AS OF 1/1/2023)
‣ 4 Recruits in Academy
‣ 3 Officers in Field Training
‣ 12 Officers out on Medical (Total Disability or Light Duty) ‣ 5 Officers out on Protected Leave
‣ This does not include the 11 Sworn positions permanently eliminated as part of the FY 23 Budget process
Only 119 Fully Trained Officers on Duty

POLICE CHIEF ROBERTO FILICE

OFFICER DEPARTURES AT SPD
3 ‣ Since July 1, 2019, the Police Department has lost
46 Sworn Officers
‣ 13 Officers resigned to accept a position with
another jurisdiction
‣ 4 Officers retired to pursue a career outside of law
enforcement (construction, real estate, etc.)
‣ Officers are retiring with less years of service:
 FY 20 Average: 26.1 years of service
 FY 21 Average: 22.6 years of service
 FY 22 Average: 20.4 years of service

POLICE CHIEF ROBERTO FILICE
4 RECRUITMENT CHALLENGES
‣ Applicants for Police Officer and Police Recruit
positions continue to decline in quantity and quality
‣ Between January 2014 and May 2022, the City of
Salinas received 2,603 applications for sworn police
officer positions

POLICE CHIEF ROBERTO FILICE

MOVING FORWARD
‣ SPD is at critical staffing levels and data indicates this trend will be ongoing
‣ SPD must implement a Police Call Prioritization
and Call Response Strategy to ensure in-person
police officer response is dedicated to the highest
priority calls
‣ Some calls for service will receive a delayed or
alternate response
6 POLICE CHIEF ROBERTO FILICE

NEW PRIORITIZATION AND CALL RESPONSE
8 Normal Response Call by call basis No Response
In Progress Violent Crime
Homicides, ADW (245 & 246 PC) Normal
Domestic Violence Normal
Sexual Assaults Normal
Robbery Normal
Brandishing a weapon Normal
Fights in progress Normal
Kidnapping Normal
Arson Normal
Suicide Normal
Bomb Threat Normal
In Progress Criminal Acts
Vehicle Thefts Normal
Burglary Normal
Theft (484) Call by Call Basis
Fraud Call by Call Basis
Vandalism Call by Call Basis
Narcotics related offenses No Response
Trespassing Call by Call Basis
Prowler Call by Call Basis
Traffic Collisions with injury Call by Call Basis
In Progress Quality of Life Calls
Drunk in public Call by Call Basis
Traffic Collision non-injury No Response
Noise complaints No Response
Animal calls No Response
Prostitution/Loitering Call by Call Basis
Parking/AV/Traffic Complaints No Response
Call Elimination Tables & Response
Normal Response Call by Call Basis No Response

POLICE CHIEF ROBERTO FILICE

IN CLOSING
9 ‣ The decision to implement these changes was taken
after careful consideration and consultation with
sworn staff
‣ We must address our retention and recruitment
challenges with a multi-prong approach strategies
‣ Thank you for your ongoing support of the brave
men and women who serve our community – your
support is critical
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-062, Version: 1
Review of Proclamation of Local Emergency: 2023 Winter Storms Consider finding that the local emergency related to the 2023 Winter Storms no longer exists.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 10, 2023

DEPARTMENT: OFFICE OF THE CITY ATTORNEY

OFFICE OF THE CITY CLERK

FROM: CHRISTOPHER A. CALLIHAN, CITY ATTORNEY
PATRICIA M. BARAJAS, CITY CLERK

TITLE: RATIFICATION OF PROCLAMATION OF LOCAL EMERGENCY

RECOMMENDATION MOTION:

A motion ratifying the Director of Emergency Services’ Proclamation of a Local Emergency, first declared on January 4, 2023, due to the winter storm/atmospheric river that occurred on January 4 and 5, 2023, and finding that the emergency has abated because the actual and threatened conditions that led to the emergency no longer exist.

EXECUTIVE SUMMARY:

On January 4, 2023, pursuant to Salinas Municipal Code section 11A-6, the City Manager, acting as the Dir ector of Emergency Services, issued a Proclamation of Local Emergency due to the severe winter storm/atmospheric river that occurred on January 4 through January 5, 2023. A copy of the Proclamation is attached to this Report for reference. Pursuant to sect ion 11A-6, the City Council must ratify the Proclamation within seven days of its issuance and because the conditions that led to the issuance of the Proclamation no longer exist, the City Council is also asked to find that the emergency no longer exists.

DISCUSSION:

On January 3, 2023, the National Weather Services issued a Flood Watch for Monterey County in effect from late Tuesday (January 3, 2023) to Thursday (January 5, 2023) afternoon. The National Weather Services predicted severe rainfall and associated flooding, among other perils: “A potent Pacific storm will bring substantial rainfal l to the Bay Area and Monterey Bay Region on top of already saturated soils. Flooding caused by excessive rainfall is possible. As a result, [residents are encouraged to] look for rapid rises in area creeks, streams, and rivers. In addition, strong gusty winds will bring branches and trees down, which may cause localized damming of water ways.” Similarly, the Monterey County Office of Emergency Services issues a local proclamation and placed a Flood Watch in effect from January 4, 2023, at 4:00 A.M. until January 5, 2023, at 4:00 Page | 2
P.M. and issued a High Wind Warning to be in effect from January 4, 2023, at 4:00 A.M. until January 5, 2023, at 10:00 A.M.

As a result of these conditions, the Director of Emergency Services found that conditions and threatened conditions of extreme peril to the safety of persons or property existed within the city of Salinas, caused by the January 4 and 5, 2023, winter storm/ atmospheric river. Based on his findings, and because the City Council was not then in session, the Director issued a Proclamation of Local Emergency which allowed him to take certain actions, as necessary, to protect the City and its residents and businesses from the effects of the emergency. The Director’s Proclamation also allows the City to recover its costs associated with mitigating the impacts and the effects of the emergency . Once the City Council determines the emergency has ended, the Director’s emergency powers will also come to an end.

CEQA CONSIDERATION:

The City Council’s review and acknowledgement of the need for continuing the local emergency is exempt from environmental review under the California Environmental Quality Act (CEQA). (CEQA Guidelines section 15378)
STRATEGIC PLAN INITIATIVE:

The City Council’s acknowledgement of the continued existence of a local emergency supports the City Council’s goal of Public Safety.

FISCAL AND SUSTAINABILITY IMPACT:

The City Council’s ratification of the Proclamation of Local Emergency does not have a direct fiscal impact on the City, but will allow the City to recover its own costs in responding to the emergency.

DEPARTMENTAL COORDINATION
All of the City’s departments coordinated in the City’s response to the January 4-5, 2023, winter storm/atmospheric river emergency.

ATTACHMENTS:

Proclamation of Local Emergency

PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY BY THE DIRECTOR

OF EMERGENCY SERVICES OF THE CITY OF SALINAS
WHEREAT Section 11,A-6 of the Salinas Municipal Code empowers the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when the City Council is not in session; and
WHEREAS, due to an expected severe storm which is expected to produce a significant amount of rain over several hours and the expectation for flooding in some localized areas, on January 2,2023, the Monterey County Department of Emergency Management notified the public that the Monterey County Operational Area Emergency Operations Center will increase to a Level 1 (High) Activation beginning Wednesday, January 4, 2023, through the duration of the storm impacts expected to occur January 4 to January 5,2023; and WHEREAS, on January 3,2023, the National Weather Services has issued a Flood Watch for Monterey County in effect from late Tuesday (January 3,2023) to Thursday (]anuary S, ZO2g) afternoon. According to the National Weather Services: "A potent Pacific storm will bring substantial rainfall to the Bay Area and Monterey Bay Region on top of already saturated soils.

Flooding caused by excessive rainfall is possible. As a result, [residents are encouraged to] look for rapid rises in area creeks, streams, and rivers. In addition, strong gusty winds will bring branches and trees down, which may cause localized damming of water ways"; and WHEREAS, on ]anuary 3,2023, the Monterey County Office of Emergency Services issued a local proclamation because of the expected winter storm/atmospheric river and placed a Flood Watch in effect from January 4,2023, at 4:00 A.M. until January 5,2023, at 4:00 P.M. and issued a High Wind Waming to be in effect from January 4,2023, at 4:00 A.M. until January 5,2023, at 10:00 A.M.; and
WHEREAS, the Director of Emergency Services finds that conditions and threatened conditions of extreme peril to the safety of persons or property have arisen within the city of Salinas, caused by the January 4 and 5,2023, winter storm/atmospheric river; and WHEREAS, these conditions are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions; and
WHEREAS, the Director of Emergency Services is identified in Salinas Municipal Code section 114-5 as the City Manager and is provided powers delineated in Salinas Municipal Code

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./-////t
.;,r.all
section 11A-5 (to appoint an Assistant Director of Emergency 6Services) and section 114-6 (powers and duties during an emergency); and
WHEREAS, this Proclamation of Local Emergency will be ratified by the City Council within seven days of being issued.

NOW, THEREFORE, IT IS HEREBY PROCLAIMED by the Director of Emergency Services for the City of Salinas, that a local emergency exists throughout the city of Salinas and that said local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council; and
IT IS FURTHER PROCLAIMED AND REQUESTED that the Govemor of the State of Califomia find and proclaim Monterey County (to include all incorporated and unincorporated areas within said county) to be in a State of Emergency; and IT IS FURTHER PROCLAIMED AND ORDERED that the Director of Emergency Services Assistant Director of Emergency Services, who shall be appointed by the Director, are hereby designated as the authorized representatives of the City of Salinas for the purpose of receipt, processing, and coordination of all inquiries and requirements necessary to obtain available state and federal assistance; and
IT IS FURTHER ORDERED that a copy of this Proclamation of Local Emergency be forwarded to the State Director of the Govemor's Office of Emergency Services with a request that the State Director find the Proclamation of Local Emergency acceptable in accordance with provisions of the Califomia Disaster Assistance Ac! forward this Proclamation to the Govemor of Califomia for consideration and action; waive regulations that may hinder response and recovery efforts; and make all relevant funds available to the City of Salinas and all eligible community members and businesses, including, but not limited to aid provided by the Small Business Administration and aid made available by the Califomia Disaster Assistance Act, to assist the City of Salinas with an appropriate level of response, recovery, and mitigation measures; and
IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the Director of Emergency Services and the emergency organization of this City shall be those prescribed by state law, charter, ordinances, and resolutions of this City, and; that this emergency proclamation shall expire ]anuary 1L,202g, unless confirmed and extended by the City Council of the City of Salinas.

PASSED AND ADOPTED by the Director of Emergency Services for the City of Salinas, State of Califomia, this 4h day of Janu ary 2023.

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APPROVED:

Steven S. Carrigan, City Manager
Director of Emergency Services
APPROVED AS TO FORM:

Christopher A. Callihan, City Attomey
ATTEST:

Clerk
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Date
Date
Date
4 7077
207a

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Patricia M.
\-/'
I
I

AFFIDAVIT OF CUSTODIAN OF RECORDS

I, Patricia M. Barajas, declare:

I am a citizen of the United States and a resident of the County of Monterey. I am over the age of eighteen years and not a party to the within action. My business address is 200 Lincoln Avenue, Salinas, California 93901. I am the duly authorized custodian of records for the Salinas City Clerk’s Office.

I declare under penalty of perjury under the laws of the State of California that the document referenced below and attached hereto, is a full, true, and correct copy of official records of the City of Salinas as appear of record in my office.

 Minute Order – Salinas City Council Meeting of January 10, 2023  City of Salinas Local Emergency Order Proclamation – January 4, 2023.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Salinas, California, on January 18, 2023.

___________________________
Patricia M. Barajas, City Clerk

SALINAS CITY COUNCIL

MEETING MINUTE ORDER
JANUARY 10, 2023

ID#23-030 Review of Proclamation of Local Emergency: Winter Storm of January 4-5, 2023 Received report from City Attorney Christopher A . Callihan, requesting that the Salinas City Council ratify the Director of Emergency Services’ Proclamation of a Local Emergency, first declared on January 4, 2023 due to the winter storm/atmospheric river that occurred on January 4 and 5, 2023, and find that the emergency continues to exist as the storms have no t abated, the conditions remain, and are expected to continue. The Proclamation of a Local Emergency: Winter Storm, 2023, shall be extended thru January 24, 2023.

COUNCIL ACTION
Upon motion by Councilmember Barrera, second by Councilmember Rocha, the Sali ans City Council motioned to ratify the Director of Emergency Services’ Proclamation of a Local Emergency, declared on January 4, 2023 ; established findings that the emergency continues to exist as the storms have not abated; and extended the Proclamation of Local Emergency: Winter Storm, 2023 thru January 24, 2023.

Ayes: Councilmembers: Barrera, Gonz ález, McShane, Osornio, Rocha, Sandoval and Mayor Craig.

Noes: None
Abstain: None

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Salinas, California on January 18, 2023.

ATTEST:

_____________________________
Patricia M. Barajas
Salinas City Clerk

PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY BY THE DIRECTOR

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PASSED AND ADOPTED by the Director of Emergency Services for the City of Salinas, State of Califomia, this 4h day of Janu ary 2023.

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APPROVED:

Steven S. Carrigan, City Manager
Director of Emergency Services
APPROVED AS TO FORM:

Christopher A. Callihan, City Attomey
ATTEST:

Clerk
/ z
Date
Date
Date
4 7077
207a

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Patricia M.
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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-020, Version: 1
Monterey County Tourism Improvement District Renewal
Approve a Resolution authorizing the renewal of the Monterey County Tourism Improvement District (MCTID).

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 24, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: MICHAEL GOMEZ, ECONOMIC DEVELOPMENT ANALYST
THROUGH: LISA BRINTON, ASSISTANT DIRECTOR
TITLE: RESOLUTION OF CONSENT FOR MONTEREY COUNTY

TOURISM IMPROVEMENT DISTRICT RENEWAL

RECOMMENDED MOTION:

A motion to approve sthe attached Resolution of Consent for the renewal of the Monterey County Tourism Improvement District (MCTID).

EXECUTIVE SUMMARY:

Tourism Improvement Districts (TIDs) are special assessment districts authorized by the State that allow hospitality businesses to collect a fixed per -room-night surcharge levied on all overnight stays at hotels in the District to fund efforts to promote tourism within a particular region. On December 27, 2022, the City received a letter from the City of Monterey requesting the Salinas City Council adopt a Resolution of Consent for the renewal of the 2018 MCTID, which will expire December 31, 2023. Under the proposed MCTID Management District Plan , provided as an attachment to this report, the term of the MCTID would be renewed for ten (10) years (July 1, 2023 to June 30, 2033), annual assessments for Limited-Service Hotels in Salinas would increase from $1.50 to $2.00 per room night with an automatic $0.20 biennial increase beginning FY 2025- 26, and the Salinas Valley Tourism and Visitor’s Bureau (SVTVB) would continue to recei ve $0.50 of the per room night assessment collected in Salinas to operate the Salinas California Welcome Center for term of the District.

BACKGROUND:

A brief summary of the history of the Monterey County TID is provided below.

 In 2006, the City of Monterey formed a TID including all of Monterey County under the 1989 Law . The Monterey County Convention and Visitor’s Bureau (MCCVB) was designated as the nonprofit to manage the TID.

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 In 2013, the City of Salinas entered into Memorandum of Understanding (MOU) with the MCCVB, the Salinas Valley Tourism and Visitor’s Bureau (SVTVB), and the City of Monterey. The MOU established that $1.50 would be collected for every room -night in Salinas, with $1.00 to be remitted to the MCCVB for the administration of the TID and $0.50 to be remitted to the SVTVB to fund the operation of the Salinas California Welcome Center to promote tourism and increase overnight stays in Salinas.

 On August 29, 2018, the City of Monterey City Council took action to initiate the process of forming a new TID , also called the Monterey County Tourism Improvement District , under the 1994 Law. On September 18, 2018 , City of Salinas City Council adopted Resolution 21492 granting consent to the City of Monterey to establish the 2018 MCTID.

 On December 27, 2022, the City received a letter from the City of Monterey requesting the Salinas City Council adopt a Resolution of Consent for the renewal of the 2018 MCTID, which will expire December 31, 2023. The Monterey City Council December 20th MCTID Renewal staff report and adopted resolution are provided as an attachment to this report.

DISCUSSION:

The City of Monterey MCTID renewal process is provided as an attachment to this report. On January 9, 2023, the City of Salinas mailed an additional notice to Salinas lodging business operators informing them of the MCTID renewal process and providing a summary and link to the draft District Management Plan. The draft 2023 -2033 MCTID Management District Plan is provided as an attachment to this report. Key components of the District Plan that apply to the City of Salinas are listed below.

1. The MCTID is renewed for a ten (10) year term (July 1, 2023 to June 30, 2033).

2. The annual TID Assessment will be increased from $1.50 to $2.00 per -room night for Limited-Service Hotels/Motels.

3. There will be an a utomatic biennial increase of $0.20 beginning FY 2025 -26, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based on circumstances they deem significant.

4. Once per year, beginning on the anniversary of District renewal (July 1st), there is a 30-day period in which lodging business operators paying fifty percent (50%) or more of the assessment may protest and initiate proceedings to terminate the MCTID.

5. The appropriation of $.50 of the per room night TID assessment collec ted from Salinas lodging operators will continue to be passed through to the SVTVB to operat e the California Welcome Center for the term of the MCTID.

6. The City of Salinas will continue to be responsible for collecting the TID assessment from each lodging business located in the City of Salinas and remitting collected funds according to the MCTID District Management Plan. The City is permitted to retain up to 1% of the collected amount to cover its administrative costs.

Page | 3
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 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. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

STRATEGIC PLAN INITIATIVE:

The renewal of the MCTID furthers the City Council Goal of Economic Development . A portion ($.50) of TID assessments collected per room night will continue to be passed through to the SVTVB to operate the California Welcome Center with the objective of increasing the number of overnight stays within the City of Salinas . Increased tourism results in increased Transient Occupancy Tax (TOT) and sales tax revenues for the City and furthers the community’s economic health.

DEPARTMENTAL COORDINATION:

The request for MCTID renewal came through the City Clerk’s office. Community Development staff took the lead in preparing this item. The Finance Department was also notified of the proposed renewal.

FISCAL AND SUSTAINABILITY IMPACT:

Adoption of the Resolution of Consent, and the renewal of the MCTID will not have a direct impact on the General Fund. The City will pass the TID assessments collected from Salinas lodging businesses through to MCCVB and SVTVB accordance with the 2023-2033 District Management Plan. The City is permitted to retain up to 1% of the collected amount to cover its administrative costs. The TID assessment is collected in addition to the City’s Transient Occupancy Tax (TOT), and does not impact other City revenues.

ATTACHMENTS:

Proposed Resolution
City of Monterey Resolution 22-169 adopted December 20, 2022 City of Monterey Council Staff Report dated December 20, 2022 Monterey County Tourism Improvement District Management District Plan (DRAFT) City of Monterey MCTID Renewal Process
Notice to Salinas Hotel/Motel Owners dated January 9, 2022 1 RESOLUTION NO.___________ (N.C.S.)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SALINAS GRANTING

CONSENT TO THE CITY OF MONTEREY TO RENEW THE MONTEREY COUNTY

TOURISM IMPROVEMENT DISTRICT (MCTID)

WHEREAS, the City of Monterey initially created the MCTID in 2006 under the Parking and Business Improvement Area Law of 1989; and

WHEREAS, the MCTID was converted in 2019 under Property and Business Improvement District Law of 1994 by Resolution No. 18-147 for a five (5) year term, which ends December 31, 2023; and

WHEREAS, the City Council of the City of Monterey has requested consent to renew the MCTID in the City of Salinas with adoption of Monterey City Council Resolution No. 22-169, dated December 20, 2022; and

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).

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.

NOW, THEREFORE, BE IT RESOLVED, by the Salinas City Council that:

Section 1: The above recitals are true and correct.

Section 2: The City of Monterey is hereby granted consent to include the City of Salinas in the MCTID, for the renewal of the MCTID and future renewals.

Section 3: The City Clerk is hereby directed to transmit a certified copy of this Resolution to the Clerk of the City of Monterey City Council.

Section 4: This Resolution is effective upon its adoption.

PASSED AND APPROVED this 24th day of January 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

2 APPROVED:

________________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
RESOLUTION NO. 22-169 C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY

REQUESTING CONSENT OF THE COUNTY OF MONTEREY AND CITIES OF CARMEL-BY-

THE-SEA, DEL REY OAKS, GONZALES, GREENFIELD, KING CITY, MARINA, PACIFIC

GROVE, SALINAS, SAND CITY, SEASIDE, AND SOLEDAD TO CREATE THE MONTEREY

COUNTY TOURISM IMPROVEMENT DISTRICT

WHEREAS, the City Council of the City of Monterey desires to begin proceedings to form the Monterey County Tourism Improvement District (MCTID);

WHEREAS, certain lodging business owners have requested that the City Council of the City of Monterey create the MCTID; and

WHEREAS, a portion of the territory proposed to be included in the MCTID lies within the boundaries of the unincorporated areas of the County of Monterey and the cities of Carmel- by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad (the “Granting County and Cities”), as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment; and

WHEREAS, the area of the unincorporated areas of the County of Monterey and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad which lies within the boundaries of the proposed MCTID will, in the opinion of the City Council of the City of Monterey, be benefited by the improvements and activities, and the purpose sought to be accomplished by the work can best be accomplished by a single comprehensive scheme of work;

WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, 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 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.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that:

Section 1: The above recitals are true and correct.

Section 2: Consent of the County of Monterey and the cities of Carmel -by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad, through their Board of Supervisors and City Councils, is hereby requested to create DocuSign Envelope ID: 7C7CC4F7-A107-4C52-A72C-6C5DA3EF5E6E 2 the MCTID, and to grant to the City Council of the City of Monterey jurisdiction for all the purposes in connection with the creation, operation and future renewals of the proposed MCTID.

Section 3: The City Clerk is hereby directed to transmit a certified copy of this Resolution to the clerks of the Granting County and Cities.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this 20th day of December, 2022, by the following vote:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
ABSTAIN: 0 COUNCILMEMBERS: None

APPROVED:

ATTEST:

Mayor of said City

City Clerk thereof

DocuSign Envelope ID: 7C7CC4F7-A107-4C52-A72C-6C5DA3EF5E6E

EXHIBIT A
Council
Agenda Report
FROM:Nat Rojanasathira, Assistant City Manager
SUBJECT:Adopt a Resolution Declaring the City of Monterey’s Intention to Renew the Monterey County Tourism Improvement District (MCTID), to Levy an Assessment on Lodging Businesses Within Such District; and Fixing the Time and Place of a Public Hearing Thereon and Giving Notice Thereof; Adopt a Resolution Requesting Consent of the County of Monterey and cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad to Renew the Monterey County Tourism Improvement District (MCTID); and Adopt a Resolution Adopting Procedural Guidelines for the Formation of Property and Business Improvement Districts Under the Property and Business Improvement District Law of 1994 (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt a resolution declaring the City of Monterey’s intention to renew the Monterey County Tourism Improvement District (MCTID), to levy an assessment on lodging businesses within such district, and setting a public hearing to renew the MCTID and levy of assessments; adopt a resolution requesting consent of the County of Monterey and cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad to renew the MCTID; and adopt a resolution adopting procedural guidelines for the formation of property and business improvement districts under the Property and Business Improvement District Law of 1994
VALUE DRIVER:

Serve as stewards of the City’s financial resources through sound economic vitality efforts, streamlining operations, reasonable revenue enhancements, visionary long-term planning, fiscal transparency, and community partnerships.

POLICY IMPLICATIONS:

The City Council’s adoption of a Resolution of Intention to Renew the MCTID is part of the MCTID renewal process that would follow with a public meeting on January 17, 2023 and a public hearing on February 21, 2023 on the renewal of the MCTID and the levy of assessments on certain lodging businesses. Renewal of the MCTID requires approval from the City Council, and this step is necessary since the City of Monterey is serving as lead agency. Adoption of a Resolution Requesting Consent is needed from the County of Monterey and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad requesting their consent to include their jurisdiction in the renewed MCTID. Adoption of a Resolution Adopting Procedural Guidelines is needed to specify the petition and protest process, and tabulation process for the formation of Property and Business Improvement Districts.

FISCAL IMPLICATIONS:

If the MCTID is renewed, the City would continue to receive one percent (1%) of the amount collected within the City of Monterey toward the cost of administration. Because the MCTID programs are intended to increase visitation to the City, this action would likely result in an increase to the City’s Transient Occupancy Tax (Hotel Tax) and Sales Tax.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, 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 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. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council may choose not to adopt the resolution, which would stop the MCTID renewal process. This is not recommended since lodging business owners in Monterey have decided to pursue renewal of the MCTID, and there is no direct cost to the City.

DISCUSSION:

First launched in 2006 under the Property and Business Improvement Area Law of 1989 (’89 Law), the Monterey County Tourism Improvement District (MCTID) is a benefit assessment district proposed to continue as a revenue source to help fund marketing and sales promotion efforts for lodging businesses in Monterey County. In 2018, an effort to modernize the MCTID led to the disestablishment of the ’89 Law district and re-establishing the MCTID pursuant to the Property and Business Improvement District Law of 1994 (’94 Law). The five-year term of the MCTID will expire in 2023, and the required number of lodging business owners have submitted a written petition to renew the district.

The City of Monterey serves as the lead public agency administering the MCTID countywide.

Tourism improvement districts have been used successfully in other destination areas throughout the state to enhance tourism marketing and drive additional room nights to assessed lodging businesses. The renewed MCTID includes all lodging businesses located within the boundaries of the unincorporated areas of Monterey County and the cities of Carmel-by-the- Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad. The MCTID is funded through an assessment on lodging businesses based on room night stays in the lodging businesses and does not utilize City funding.

Lodging business owners decided to pursue renewal of the MCTID in order to continue a revenue source devoted to marketing Monterey County as a tourist, meeting, and event destination. If renewed, the MCTID would generate an initial annual budget of approximately $8,856,266, increasing biennially as assessment rates increase, for the promotion of travel and tourism specific to Monterey County.

Benefits of Tourism Improvement Districts

Tourism Improvement Districts (TIDs) are special assessment districts that allow lodging business owners to organize their efforts to fund and coordinate tourism marketing. Lodging business owners within the TID fund the TID, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TID.

TID benefits include:

Funds cannot be diverted for other government programs They are customized to fit the needs of each destination They allow for a wide range of services; including destination marketing, tourism promotion, and sales lead generation
They are designed, created, and governed by those who will pay the assessment They provide a stable funding source for tourism promotion

The key difference between TIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TID.

Management District Plan

The Management District Plan (Attachment 4) includes the proposed boundary of the renewed MCTID, a service plan and budget, and a proposed means of governance. The MCTID shall include all lodging businesses, existing and in the future, located within the boundaries of the unincorporated areas of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad. The MCTID is divided into two (2) benefit zones as described in the Plan.

The renewed MCTID would have a ten (10) year term, beginning July 1, 2023, and end ten (10) years from its start date. Once per year, beginning on the anniversary of district renewal, there is a 30-day period in which lodging business operators paying fifty percent (50%) or more of the assessment may protest and initiate proceedings to terminate the MCTID.

The cities and County shall be responsible for collecting the assessment on a monthly, bi- monthly, or quarterly basis (including any delinquencies, penalties, and interest) from each lodging business located within the boundaries of the MCTID. The cities and County shall make all reasonable efforts to collect the assessments from each lodging business. The cities and County shall forward the assessments to Monterey County Destination Marketing Organization, Inc. d.b.a. Monterey County Convention and Visitors Bureau (MCCVB), serving as the MCTID Owner’s Association, which will have the responsibility of managing MCTID programs as provided in the Management District Plan. The cities and the County may retain a fee equal to one percent (1%) of the amount of the assessment collected within their respective jurisdictions to cover their costs of collection and administration.

MCTID Renewal Process

December 20, 2022 RESOLUTION OF INTENTION TO RENEW (Attachment 1) Upon the submission of a written petition, signed by the lodging business owners in the renewed MCTID who will pay more than fifty percent (50%) of the assessments proposed to be levied, the City of Monterey City Council may initiate proceedings to renew the MCTID by the adoption of a resolution expressing its intention to renew the MCTID.

Petition Status: Petitions in favor of MCTID renewal were submitted by lodging businesses that represent more than fifty percent (50%) of the total MCTID assessment.

December 20, 2022 RESOLUTION REQUESTING CONSENT (Attachment 2) The City Council must request consent from the County of Monterey and cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad to be included in the renewed MCTID. Consent must be received from the cities and County prior to the final public hearing for their jurisdiction to be included in the renewed MCTID.

December 20, 2022 RESOLUTION ADOPTING PROCEDURAL GUIDELINES (Attachment 3) Procedural guidelines for the formation of the MCTID will be proposed in a separate resolution. These guidelines cover the petition process, protest submittals, protest requirements, protest withdrawals, majority protest, and tabulation process.

January 7, 2023 NOTICE
Written notice shall be mailed to the owners of all businesses proposed to be within the renewed MCTID.

January 17, 2023 PUBLIC MEETING
Allow public testimony on the renewal of the MCTID and levy of assessments. No Council action required.

February 21, 2023 FINAL PUBLIC HEARING; POTENTIAL ADOPTION OF RESOLUTION

OF FORMATION
If written or oral protests are received from the owners of lodging businesses in the renewed MCTID which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.

If protests totaling less than 50% proposed assessments are received, the Council, following the public hearing, may decide to renew the MCTID, and then shall adopt a resolution of formation.

Attachments: 1. Resolution of Intention

2. Resolution Requesting Consent

3. Resolution Adopting Procedural Guidelines

4. MCTID Management District Plan

5. Petitions Received as of December 15, 2022
c: City Attorney
MCTID Executive Director, c/o Monterey County Convention & Visitors Bureau Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments

2023-2033

MONTEREY COUNTY

TOURISM IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
November 2, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

ATTACHMENT 4

CONTENTS
I. OVERVIEW ........................................................................................................................................ 3 II. BACKGROUND ................................................................................................................................ 5 III. BOUNDARY ....................................................................................................................................... 7 IV. ASSESSMENT BUDGET AND SERVICES ................................................................................ 9 A. Annual Service Plan ................................ ................................ ................................ ....9 B. Annual Assessment Budget................................ ................................ ........................ 11 C. California Constitutional Compliance ................................ ................................ ........ 12 D. Assessment ................................ ................................ ................................ ................ 13 E. Penalties and Interest ................................ ................................ ................................ . 14 F. Time and Manner for Collecting Assessments ................................ ........................... 15

V. GOVERNANCE ............................................................................................................................... 16 A. Owners’ Association ................................ ................................ ................................ .. 16 B. Brown Act and California Public Records Act Compliance ................................ ........ 16 C. Annual Report ................................ ................................ ................................ ........... 16

APPENDIX 1 – LAW .................................................................................................................................... 17 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 28 APPENDIX 3 – BENEFITS BY HOTEL TYPE .................................................................................... 35 APPENDIX 4 - TOURISM ECONOMICS STUDY .............................................................................. 37

Prepared by
Civitas

(800)999-7781
www.civitasadvisors.com

ATTACHMENT 4

MCTID Management District Plan 3
November 2, 2022

I. OVERVIEW

Developed by the Monterey County Destination Marketing Organization, Inc. d.b.a. Monterey County Convention and Visitors Bureau (MCCVB), the Monterey County Tourism Improvement District (MCTID) is an assessment district which provides specific benefits to payors by funding group sales and services and marketing communications activities for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The MCTID was initially created in 2006 pursuant to the Parking and Business Improvement Area Law of 1989 and was converted in 2019 pursuant to the Property and Business Improvement District Law of 1994 for a five (5) year term. MCCVB and Monterey County lodging businesses now wish to renew the MCTID for a ten (10) year term. Pursuant to Streets and Highways Code §36620.5, the City of Monterey shall continue to act as the lead jurisdiction for renewing the MCTID. The City of Monterey shall continue to receive MCTID annual reports. Funds raised through the MCTID are meant to supplement the Jurisdiction Partnership investments so as to have a competitive budget and business plan.

Location: The renewed MCTID includes all lodging businesses located within the boundaries of the unincorporated areas of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad. The MCTID is divided into two (2) benefit zones, as shown on the map in Section IV.

Services: The MCTID is designed to provide specific benefits directly to payors by increasing demand for room night sales. Group business development and marketing communications activities will increase demand for overnight tourism and market Monterey County as a tourist, meeting and event destination, thereby increasing demand for room night sales for assessed businesses.

Budget: The total MCTID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $8,856,266. This assessment budget is expected to increase as the assessment rate increases are adopted pursuant to this Plan, but this budget is expected to fluctuate as room sales do.

Cost: The assessment is a fixed amount per occupied room per night. The assessment is based on the business hotel type. Based on the benefit received, assessments shall not be collected on: stays of more than thirty (30) consecutive days; stays at vacation time- share facilities; stays at vacation rentals; stays at RV parks; stays by any Federal or State of California officer or employee when on official business; and stays by any officer or employee of a foreign government who is exempt by reason of express provi sion of Federal law or international treaty. Initial assessment rates are:

Hotel Type Zone 1 Zone 2
Luxury $7.00 $7.50
Non-Luxury Full Service $4.50 $5.00
Limited Service $1.50 $2.00

Based on the provision of additional services and additional benefit to the lodging businesses, the assessment rate shall automatically increase biennially beginning in FY ATTACHMENT 4

MCTID Management District Plan 4
November 2, 2022
2025-26, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based upon circumstances that they deem significant. If the MCCVB Board’s TID Committee elects to cancel the automatic increase for that year, the MCCVB Board’s TID Committee may implement a cumulative increase at the next regularly scheduled rate increase.

Collection: The cities and County shall be responsible for collecting the assessment on a monthly, bi-monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the MCTID. The cities and County shall make all reasonable efforts to collect the assessments from each lodging business.

Duration: The renewed MCTID shall have a ten (10) year life, beginning July 1, 2023, or as soon as possible thereafter, and end ten (10) years from its start date. Once per year, beginning on the anniversary of MCTID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protes t and initiate a Monterey City Council hearing on MCTID termination.

Management: The MCCVB Monterey County Destination Marketing Organization, Inc. d.b.a.

Monterey County Convention and Visitors Bureau (MCCVB) shall continue to serve as the Owners’ Asso ciation for the MCTID. The MCCVB Board’s TID Committee shall continue to have full decision-making authority over the expenditure of MCTID funds as defined in Section V. The Owners’ Association is charged with managing funds and implementing activities in accordance with this Plan and must provide annual reports to the Monterey City Council.

ATTACHMENT 4

MCTID Management District Plan 5
November 2, 2022
II. BACKGROUND

A. Tourism Improvement District Overview
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TID. And, some cities, like Portland, Oregon a nd Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.

California’s TIDs collectively
raise over $300 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing riv alry for visitor
dollars, it is important
that Monterey County lodging
businesses continue to invest
in stable, lodging -specific
marketing programs.

TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TIDs allow lodging business owners to organize their efforts to increase demand for room night sales. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase demand for room night sales.

In California, most TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

B. Tourism Improvement District Benefits
There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.

ATTACHMENT 4

MCTID Management District Plan 6
November 2, 2022
C. MCTID History and Partnerships with Jurisdictions
The history of the Monterey County Tourism Improvement District (MCTID) is one of partnership.

The MCTID was first established in 2006 because the region’s hospitality industry recognized that TIDs create a reliable funding source for destination marketing.

Municipalities and the County of Monterey have historically demonstrated a commitment to fund tourism promotion. The renewed and expanded MCTID has been developed with this partnership in mind. The continued partnership is critical to the MCTID’s success, as the funds raised through both the TID , the municipalities and the County of Monterey will allow a competitive budget and business plan for the region’s destination marketing.

D. Looking Ahead

Market share, revenue, improved community connectivity

Focus Currently Investment in a Better Future
Sphere of Marketing
Reach
Primarily Regional paid media
advertiser
National Brand with paid media reach into
Midwest, East Coast – high value travelers
Meetings &
Conferences
Five-person sales team; primarily
focused on regional meetings;
limited booking incentive
Expand sales team; increase sales activities;
aggressive booking incentive; intensify focus
on corporate, incentive and Tour & Travel
Event Attraction &
Promotion
No proactive event attraction
effort; promotion limited to
social and PR (no paid media)
Dedicated program to attract advantageous
events; paid media support for select events
Transportation
Development
Tactical and reactive; lacking a
well-supported MCCVB/
Community strategy
Annual dedicated budget; strategically proactive
International Marketing One sales executive, limited co- op (VCA, Brand USA) marketing
Multi-country sales representation, significant
increase in direct sales and marketing
Luxury Initiative
Direct sales through involvement
with Virtuoso, ILTM, VCA;
limited marketing
Significant expansion (2-3X) of both sales and
marketing programs
Sustainable/Responsible
Travel
Consistent messaging through
unpaid (social & PR), limited
paid media; implementation of
See Monterey app
On-going paid media campaign; support shuttle
programs/promotion; in-market
collateral/signage;

ATTACHMENT 4

MCTID Management District Plan 7
November 2, 2022
III. BOUNDARY

The renewed MCTID shall include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the unincorporated areas of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad.

Lodging business means: any building, portion of any building, or group of buildings in which there are guest rooms or suites, including housekeeping units for transient guests, where lodging with or without meals is provided. Notwithstanding the previous sentence, lodging business does not include:
• Vacation time-share facilities;
• Vacation rentals, defined as a single family home, townhome, or condominium that is available for rent; and
• Recreational vehicle (RV) parks.

There are three types of lodging businesses in the MCTID: luxury, non-luxury full service, and limited service.

• Luxury lodging business means: a lodging business with an average daily rate of $500 or more, based on the previous year’s performance , with premium services and the highest quality ratings. Lodging businesses whose average daily rate increases to $500 or more will be assessed upon determination of the increase; likewise, lodging businesses whose average daily rate decreases to below $500 will not be assessed as a luxury lodging business upon determination of the decrease. Average daily rate figures shall be updated annually. Luxury lodging businesses may have restaurants, meeting spaces, exercise rooms, or spas, and have characteristics of five (5) star hotels. The luxury lodging business type includes properties classified as all-inclusive, boutique, and destination resorts by Smith Travel Research.

• Non-luxury full service lodging business means: a lodging business with a wide variety of onsite amenities, such as restaurants, meeting spaces, exercise rooms, or spas. non-luxury full service lodging businesses are often in the upscale or upper upscale class as defined by Smith Travel Research.

• Limited service lodging business means: a lodging business that offers limited facilities and amenities, typically withou t a full -service restaurant. Limited service lodging businesses are often in the economy, midscale, or upper midscale class as defined by Smith Travel Research.

A complete listing of lodging businesses within the proposed MCTID can be found in Appendix 2.

The proposed MCTID is divided into two (2) benefit zones, based on the special benefits and privileges granted to lodging businesses in each zone. The boundaries of each zone are shown in the map on the following page. A description of the boundaries of each zone is provided below:

Zone 1: Includes the unincorporated area of Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Sand City, Seaside, and Soledad.

Zone 2: Includes the City of Salinas. The boundaries of Zone 2 shall be the boundaries of the City of Salinas as may be amended from time to time.

ATTACHMENT 4

MCTID Management District Plan 8
November 2, 2022

ATTACHMENT 4

MCTID Management District Plan 9
November 2, 2022
IV. ASSESSMENT BUDGET AND SERVICES

A. Annual Service Plan
Assessment funds shall be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of Monterey of conferring the benefits or gra nting the privileges. The privileges and services provided with the MCTID funds are group business development and marketing communications activities available only to assessed lodging businesses. The assessment rate for each hotel type will be commensurate with privileges and services provided to assessed businesses in each hotel type as detailed in Appendix 4.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget shall be developed and approved by MCCVB. The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $8,856,266.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, with the exception of the Zone 2 assessment budget category of Salinas Visitor Services, the MCCVB TID Committee shall have the authority to adjust assessment budget allocations between the categories by no more than fifteen percent (15%) of the total assessment budget per year. Any changes to the assessment budget category allocations shall be included in the annual report to the City of Monterey. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the MCTID, any and all assessment funds may be used for the costs of defending the MCTID.

Each assessment budget category includes all costs related to providing that service. For example, the marketing communications assessment budget includes the cost of MCCVB s taff time dedicated to overseeing and implementing the marketing communications program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the assessment budget. The costs of Marketing
Communications,
$3,985,320 , 45%
Group Business Development,
$3,152,831 , 35.6%
Contingency Reserve,
$885,627 , 10%
City/County
Administration Fee,
$88,563 , 1%
Administration & Operations,
$619,939 , 7%
Salinas Visitor Services,
$123,988 , 1.4%
Initial Annual Assessment Budget - $8,856,266
ATTACHMENT 4

MCTID Management District Plan 10
November 2, 2022
an individual staff member may be allocated to multiple assessment budget categories. The staffing levels necessary to provide the services below shall be determined by the MCCVB on an as-needed basis.

Marketing Communications
The marketing communications program will promote assessed businesses as tourist, meeting, and events destinations. The marketing communications program will have a central theme of promoting Monterey County as a desirable place for overnight visits. The program will have the goal of generating overnight visitation and room sales at assessed businesses, and may include the following activities:
• Programs that develop and distribute content via paid, owned and earned channels to drive overnight visitation and room sales to assessed businesses; • Partnership marketing initiatives with Monterey Regional Airport for domestic marketing, plus cooperative programs for international marketing to reach farther -out prospective visitors to drive overnight visitation and room sales to assessed businesses; • Focus on high-priority, high-impact initiatives to drive overnight visitation and room sales to assessed businesses;
• Collaborations with transportation partners to make it easier to get to and around Monterey County to drive ideal overnight visitation and room sales to assessed businesses; • Drive familiarity and engagement for group audiences through targeted direct marketing and retargeting programs to complement Group Sales’ business development focus to drive overnight visitation and room sales to assessed businesses; and • Expand international marketing to drive overnight visitation and room sales to assessed businesses.

Group Business Development
The group business development program will develop business leads for meetings and events that convert to room nights for as sessed businesses. The group business development program will have a central theme of promoting Monterey County as a desirable place for overnight group visits. The program will have the goal of generating overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Group marketing initiatives to ensure target customer destination familiarity to drive overnight visitation and room sales to assessed businesses;
• A business development model ensuring highly qualified leads and efficient use of Owners’ Association resources in developing new business opportunities to drive overnight visitation and room sales to assessed businesses;
• Focus on business development platform: engage, action, transaction, participation to drive overnight visitation and room sales to assessed businesses; • Familiarization trips (FAMs) and site inspections to drive overnight visitation and room sales to assessed businesses;
• Strategic client services designed to make attendee’s destination choice easier to drive overnight visitation and room sales to assessed businesses; • Visitor services programs designed to extend stays at assessed businesses and increase visitor spending;
• Strategic business development services designed to identify, qualify, and pursue new business opportunities that best fit the destination’s profile, targeting the ideal opportunities from key deployed markets to drive overnight visitation and room sales to assessed businesses; and • Tour and travel sales programs to fill shoulder seasons and need periods for the destination to drive overnight visitation and room sales to assessed businesses.

ATTACHMENT 4

MCTID Management District Plan 11
November 2, 2022
Salinas Visitor Services
The Salinas Visitor Services portion of the assessment budget shall be utilized for funding visitor services activities for the benefit of generating overnight visitation and room night stays at Zone 2 lodging businesses. The Salinas Visitor Services program will provide visitors with brochures, maps, and information regarding local events. The Salinas Visitor Services assessment budget shall be the amount collected annually from the additional $0.50 assessment in Zone 2.

MCCVB Administration and Operations
The MCCVB administration and operations portion of the assessment budget shall be utilized by the MCCVB for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

City/County Administration Fee
The cities and County may retain a fee equal to one percent (1%) of the amount of the assessment collected, within their respective jurisdictions, to cover their costs of collection and administration.

Contingency/Reserve
The assessment budget includes a contingency line item to account for lower than anticipated collections or higher than anticipated program costs, if any. Up to ten percent (10%) of the assessment budget may be allocated to the contingency/reserve in any given year. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discret ion of the TID Committee. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the TID Committee. Contingency/reserve funds may be spent on TID activities or administrative and renewal costs in such proportions as determined by the Committee. The reserve fund may be used for the costs of renewing the TID.

B. Annual Assessment Budget
The assessment is a fixed amount per occupied room per night. The assessment is based on the business hotel type. Based on the provision of additional services and additional benefit to the lodging businesses, the assessment rate shall automatically increase biennially beginning in FY 2025-26 for both Zone 1 and Zone 2 , unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based upon circumstances that they deem significant. If the MCCVB Board’s TID Committee elects to cancel the automatic increase for that year, the MCCVB Board’s TID Committee may implement a cumulative increase at the next regularly scheduled rate increase. Because services shall remain constant for the Salinas Visitor Services program (brochures, maps, and i nformation regarding local events for visitors), the additional rate of $0.50 per annum in Zone 2 shall remain static over the life of the district. The biennial assessment increase in both Zone 1 and Zone 2 (notwithstanding the static $0.50 rate in Zone 2), shall be $0.90 per paid occupied room per night for luxury lodging businesses, $0.60 per paid occupied room per night for non-luxury full service lodging businesses, and $0.20 per paid occupied room per night for limited service lodging businesses.

The assessment budget is projected at an initial budget of $8,856,266, increasing biennially for a total of $111,645,780 through 2033. This amount is expected to fluctuate as occupancy rates increase at assessed businesses and when the assessment rate is increased. The following table demonstrates the estimated assessment budget over the life of the district , based on existing lodging bus inesses, following the rate increase schedule. Any new lodging businesses that commence business within the MCTID during the ten (10) year term shall be assessed using the same methodology listed in Section IV (D).

ATTACHMENT 4

MCTID Management District Plan 12
November 2, 2022
Estimated Annual Assessment Budget
Fiscal
Year
Marketing
Comm.

Group Bus.

Devel.

Salinas Visitor
Services
(Zone 2 Only)
Contingency
/ Reserve
Admin &
Operations
City/County
Admin Fee Total
2023-24 $3,985,320 $3,152,831 $123,988 $885,627 $619,939 $88,563 $8,856,266 2024-25 $3,985,320 $3,152,831 $123,988 $885,627 $619,939 $88,563 $8,856,266 2025-26 $4,504,690 $3,563,710 $140,146 $1,001,042 $700,730 $100,104 $10,010,422 2026-27 $4,504,690 $3,563,710 $140,146 $1,001,042 $700,730 $100,104 $10,010,422 2027-28 $5,024,060 $3,974,590 $156,304 $1,116,458 $781,520 $111,646 $11,164,578 2028-29 $5,024,060 $3,974,590 $156,304 $1,116,458 $781,520 $111,646 $11,164,578 2029-30 $5,543,430 $4,385,469 $172,462 $1,231,873 $862,311 $123,187 $12,318,734 2030-31 $5,543,430 $4,385,469 $172,462 $1,231,873 $862,311 $123,187 $12,318,734 2031-32 $6,062,801 $4,796,349 $188,620 $1,347,289 $943,102 $134,729 $13,472,890 2032-33 $6,062,801 $4,796,349 $188,620 $1,347,289 $943,102 $134,729 $13,472,890 Total $50,240,601 $39,745,898 $1,563,041 $11,164,578 $7,815,205 $1,116,458 $111,645,780

C. California Constitutional Compliance
The MCTID assessment is not a property -based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the MCTID assessment is a business -based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the MCTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the cities and County of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public , businesses in general, or parcels of land, but rather to serve the specific businesses within the MCTID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the MCTID, and are narrowly tailored. MCTID funds shall be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non -assessed lodging businesses in MCTID activities, or to directly generate sales for non -assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

The assessment imposed by this MCTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is the generation of room night sales. The specific benefit of increased demand for room night sales for assessed lodging businesses shall be provided only to lodging businesses paying the district assessment, with MCTID activities promoting lodging businesses paying the MCTID assessment. The MCTID activities will be designed to generate room night sales at each assessed lodging businesses. Because they are necessary to provide the MCTID activities that specifically benefit the assessed lodging

1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
ATTACHMENT 4

MCTID Management District Plan 13
November 2, 2022
businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the MCTID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product .”4 The legislature has recognized that marketing and promotions services like those to be provided by the MCTID are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specif ic government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
MCTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services . The full amount assessed shall be used to provide the services described herein.

Excluding Zone 2 funds managed by the City of Salinas, funds shall be managed by the MCCVB, and reports submitted on an annual basis to the City of Monterey. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from MCTID-funded activities, be featured in advertising campaigns, and benefit from other MCTID-funded services. Non -assessed lodging businesses will not receive these, nor any other, MCTID-funded services and benefits.

The MCTID-funded activities are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non -assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non -MCTID funds. MCTID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The assessment is a fixed amount per occupied room per night. The assessment is based on the business hotel type. Based on the provision of additional services and additional benefit to the lodging businesses, the assessment rate shall automatically increase biennially beginning in FY 2025-26, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based upon circumstances that they deem significant. If the MCCVB Board’s TID Committee elects to cancel the automatic increase for that year, the MCCVB Board may implement a cumulative increase at the next regularly scheduled rate increase. Because services shall remain constant for the Salinas Visitor Services program (brochures, maps, and information regarding local events for visitors), the additional rate of $0.50 per annum in Zone 2 shall not be increased over the life of the district. The biennial assessment

3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
ATTACHMENT 4

MCTID Management District Plan 14
November 2, 2022
increase shall be $0.90 per paid occupied room per night for luxury lodging businesses, $0.60 per paid occupied room per night for non-luxury full service lodging businesses, and $0.20 per paid occupied room per night for limited service lodging businesses. Based on the benefit received, assessments shall not be collected on: stays of more than thirty (30) consecutive days; stays at vacation time -share facilities; stays at vacation rentals; stays at RV parks; stays by any Federal or State of California officer or employee when on official business; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. The assessment increase schedule is illustrated in the table below.

Zone 1 Zone 2
Fiscal
Year Luxury Non-Luxury
Full Service
Limited
Service Luxury Non-Luxury
Full Service
Limited
Service
2023-24 $ 7.00 $ 4.50 $ 1.50 $ 7.50 $ 5.00 $ 2.00 2024-25 $ 7.00 $ 4.50 $ 1.50 $ 7.50 $ 5.00 $ 2.00 2025-26 $ 7.90 $ 5.10 $ 1.70 $ 8.40 $ 5.60 $ 2.20 2026-27 $ 7.90 $ 5.10 $ 1.70 $ 8.40 $ 5.60 $ 2.20 2027-28 $ 8.80 $ 5.70 $ 1.90 $ 9.30 $ 6.20 $ 2.40 2028-29 $ 8.80 $ 5.70 $ 1.90 $ 9.30 $ 6.20 $ 2.40 2029-30 $ 9.70 $ 6.30 $ 2.10 $ 10.20 $ 6.80 $ 2.60 2030-31 $ 9.70 $ 6.30 $ 2.10 $ 10.20 $ 6.80 $ 2.60 2031-32 $ 10.60 $ 6.90 $ 2.30 $ 11.10 $ 7.40 $ 2.80 2032-33 $ 10.60 $ 6.90 $ 2.30 $ 11.10 $ 7.40 $ 2.80

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the MCTID assessment is identified separately it shall be disclosed as the “MCTID Assessment.” As an alternative, the disclosure may in clude the amount of the MCTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of, the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
The MCTID shall reimburse the cities and County for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent MCTID assessment are sought to be recovered in the same collection action by the cities or County, the MCTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment or the estimated assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent assessment on or before a period of thirty (30) days following the date on which the assessment first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the ATTACHMENT 4

MCTID Management District Plan 15
November 2, 2022
assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the cities or County determine that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto, in addition to the penalties stated in paragraphs 1 and 2 of this section.

4. Interest: In addition the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment required to be paid.

6. Audit Deficiency: If, upon audit by the cities or County, a lodging business is found to be deficient in either its return or its remittances or both, the cities or County shall immediately invoice the lodging business for the amount of the net deficiency plus a penalty of ten percent (10%) of the net deficiency. If the lodging business fails or refuses to pay the deficient amount and applicable penalties within thirty (30) days of the date of the invoice, an additional ten percent (10%) penalty shall be added to the origi nal deficiency. In addition to the penalties imposed, any lodging business that fails to remit payment of billed audit deficiencies within thirty (30) days of the date of the invoice shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties.

F. Time and Manner for Collecting Assessments
The MCTID assessment shall be implemented beginning July 1, 2023, or as soon as possible thereafter, and end ten (10) years from its start date. The cities and County shall be responsible for collecting the assessment on a monthly, bi-monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging b usiness located in their respective jurisdictions . The cities and County shall make all reasonable efforts to collect the assessments from each lodging business. The cities and County shall forward the assessments collected to the Owners’ Association, except for the additional assessments in Zones 2.

ATTACHMENT 4

MCTID Management District Plan 16
November 2, 2022
V. GOVERNANCE

A. Owners’ Association
The Monterey City Council , through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the O wners’ Association of the MCTID as defined in Streets and Highways Code §36612. Monterey County Destination Marketing Organization, Inc. d.b.a. Monterey County Convention and Visitors Bureau (MCCVB) shall continue to serve as the Owners’ Association for the MCTID. The MCCVB Board’s TID Committee shall continue t o have full decision -making authority over the expenditure of MCTID funds. The TID Committee shall be comprised solely of assessed lodging business representatives. The number of seats on the TID Committee from each MCTID jurisdiction shall reflect the pro portional assessment revenue derived from each MCTID jurisdiction. Notwithstanding the forgoing, the City of Salinas shall have full decision-making authority over the expenditure of funds raised by the additional $0.50 assessment rate on all lodging busin ess types in Zone 2.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the MCCVB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The MCCVB shall present an annual report at the end of each year of operation to the Monterey City Council pursuant to Streets and Highways Code §36650 (see Appendix 1) . The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient deta il to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied.

ATTACHMENT 4

MCTID Management District Plan 17
November 2, 2022
APPENDIX 1 – LAW

*** THIS DOCUMENT IS CURRENT THROUGH THE 2022 SUPPLEMENT *** (ALL 2021 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the ATTACHMENT 4

MCTID Management District Plan 18
November 2, 2022
incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.

36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, in stalling, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

ATTACHMENT 4

MCTID Management District Plan 19
November 2, 2022

36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code , the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or main tenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.

36614. “Property”

“Property” means real property situated within a district.

ATTACHMENT 4

MCTID Management District Plan 20
November 2, 2022
36614.5. “Property and business improvement district”; “District”

“Property and business improvement distri ct,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

“Special benefit” means, for purposes of a property -based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

ATTACHMENT 4

MCTID Management District Plan 21
November 2, 2022
36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 p ercent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on p roperty or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, inclu ding the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries o f a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial ATTACHMENT 4

MCTID Management District Plan 22
November 2, 2022
year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maint enance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property -based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such ATTACHMENT 4

MCTID Management District Plan 23
November 2, 2022
businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that re spective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed impr ovements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, main tenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activiti es that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property o r businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property -based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

36627. Notice and assessment diagram
ATTACHMENT 4

MCTID Management District Plan 24
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Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and ma y impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benef it to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

ATTACHMENT 4

MCTID Management District Plan 25
November 2, 2022

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general ci rculation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision ( a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to ATTACHMENT 4

MCTID Management District Plan 26
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be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The managemen t district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.

ATTACHMENT 4

MCTID Management District Plan 27
November 2, 2022
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, a ny remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All o utstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

ATTACHMENT 4

MCTID Management District Plan 28
November 2, 2022
APPENDIX 2 – ASSESSED BUSINESSES

Business Name Business Address City/State/Zip Type
ABV Presidents Inn MUNRAS MTY 1150 MUNRAS AVE MONTEREY, CA 93940 Limited Adams Motel/Boronda Inn 2086 N. Main St. Salinas, CA 93906 Limited ADOBE INN 1919 GRAND CANAL BL.#B5 STOCKTON CA 95207 Full Aloha Motel 235 Kern St. Salinas, CA 93905 Limited
ANDRIL MOTEL & COTTAGES 569 ASILOMAR BLVD PACIFIC GROVE, CA 93950-3701 Limited ARAMARK Sports & Entertainment 800 ASILOMAR BLVD PACIFIC GROVE, CA 93950-3704 Limited AUBERGE CARMEL PO BOX J CARMEL CA 93921 Luxury
BAYSIDE INN 2055 NORTH FREMONT ST. MONTEREY, CA 93940 Limited BEACHCOMBER INN 1996 SUNSET DR PACIFIC GROVE, CA 93950-3787 Limited Bernardus Lodge 415 W CARMEL VALLEY RD Carmel Valley, CA 93924-9417 Luxury Best 5 Motel/Lakshmi Hotel Group 1010 Fairview Ave. Salinas, CA 93905 Limited BEST WESTERN DE ANZA INN 2141 NORTH FREMONT ST MONTEREY, CA 93940 Limited Best Western Marina State Beach 3290 DUNES DR MARINA, CA 93933 Limited BEST WESTERN MONTEREY INN 825 ABREGO MONTEREY, CA 93940 Limited Best Western Salinas
Monterey/Western Hotel Corp 175 Kern St. Salinas, CA 93905 Limited Best Western Salinas Valley Inn 187 Kern St. Salinas, CA 93905 Limited BEST WESTERN INN AND SUITES 4258 CESAR CHAVEZ ST San Francisco, CA 94131-1815 Limited BEST WESTERN-PARK CREST 1100 MUNRAS AVENUE MONTEREY, CA 93940 Limited BIDE A WEE INN AND COTTAGES 221 ASILOMAR BLVD PACIFIC GROVE, CA 93950-2093 Limited Big Sur Campground & Cabins 47000 HIGHWAY 1 BIG SUR, CA 93920-9556 Limited Big Sur Lodge 47225 HIGHWAY 1 BIG SUR, CA 93920-9542 Full Big Sur River Inn 46800 HIGHWAY 1 BIG SUR, CA 93920-9693 Full

BLU PACIFIC HOTEL (FORMERLY
COMFORT INN-MTY BAY) 2050 NO. FREMONT ST. MONTEREY, CA 93940 Limited Blue Sky Lodge 10 FLIGHT RD Carmel Valley, CA 93924-9617 Limited BORGS MOTEL 1315 SKYVIEW DR BURLINGAME, CA 94010-6236 Limited Budget Inn Motel/BMN LLC 219 John St. Salinas, CA 93901 Limited BUTTERFLY GROVE INN 1073 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2357 Limited Cabana Holiday 8710 Prunedale North Rd SALINAS, CA 93907-1371 Limited California Inn Motel 736 N. Main St. Salinas, CA 93906 Limited CANDLE BAY INN 2118 NO. FREMONT ST. MONTEREY, CA 93940 Limited CANDLELIGHT INN P.O. Box 101 CARMEL CA 93921 Limited CANNERY ROW INN 200 FOAM ST. MONTEREY, CA 93940 Limited Capitol Motel/Jainika Corporation 2110 N. Main St. Salinas, CA 93906 Limited Captain's Inn At Moss Landing 8122 MOSS LANDING RD Moss Landing, CA 95039-9617 Limited CARMEL BAY VIEW INN 700 UNIVERSITY AV.#150 SACRAMENTO CA 95825 Limited CARMEL COTTAGE INN PO BOX 5805 CARMEL CA 93921 Limited CARMEL COUNTRY INN PO BOX 3756 CARMEL CA 93921 Limited CARMEL FIREPLACE INN INC. P.O. BOX 5245 CARMEL CA 93921 Limited CARMEL GARDEN INN PO BOX 5547 CARMEL CA 93921 Limited CARMEL GREEN LANTERN INN PO BOX 1114 CARMEL CA 93921 Limited ATTACHMENT 4

MCTID Management District Plan 29
November 2, 2022
CARMEL INN & SUITES P.O. BOX 1295 CARMEL CA 93921 Limited CARMEL LODGE P.O.BOX 4235 CARMEL CA 93921 Limited
Carmel Mission Inn 3665 RIO RD CARMEL, CA 93923-8609 Full CARMEL OAKS INN P.O. BOX 3696 CARMEL CA 93921 Limited CARMEL RESORT INN P.O. BOX 2106 MONTEREY CA 93942 Limited Carmel River Inn 26600 OLIVER RD CARMEL, CA 93923-9219 Limited CARMEL TRADEWINDS INN P. O. BOX 3403 CARMEL CA 93921 Limited Carmel Valley Lodge 8 FORD RD Carmel Valley, CA 93924-9511 Limited Carmel Valley Manor 8545 CARMEL VALLEY RD CARMEL, CA 93923-9556 Full Carmel Valley Ranch 1 OLD RANCH RD CARMEL, CA 93923-8551 Luxury CARMEL WAYFARER INN P.O. BOX 1896 CARMEL CA 93921 Limited CARMEL'S TOWN HOUSE LODGE P.O. BOX 3574 CARMEL CA 93921 Limited CARRIAGE HOUSE INN PO BOX 101 CARMEL CA 93921 Limited Casa Linda Motel 1109 N. Main St. Salinas, CA 93906 Limited CASA MUNRAS HOTEL 700 MUNRAS AVENUE MONTEREY, CA 93940 Full Casa Palmero 1518 CYPRESS DR PEBBLE BEACH, CA 93953 Luxury CASA VERDE INN 2113 NO. FREMONT ST. MONTEREY, CA 93940 Limited CENTRELLA INN 612 CENTRAL AVE PACIFIC GROVE, CA 93950-2611 Limited Ciudad Del Rey Motel 50620 MESA VERDE RD KING CITY, CA 93930 Limited CLARION HOTEL 1046 MUNRAS AVENUE MONTEREY, CA 93940 Limited COACHMAN'S INN PO BOX 3073 MONTEREY CA 93940 Limited COLTON INN 707 PACIFIC ST MONTEREY, CA 93940 Limited
COMFORT INN 140 RESERVATION RD MARINA, CA 93933-2522 Limited Comfort Inn & Suites/Shakti LLC 181 Kern St. Salinas, CA 93905 Limited Comfort Inn Monterey Airport 1200 OLMSTED RD MONTEREY, CA 93940 Limited COMFORT INN-CARMEL BY THE SEA P.O. BOX 3838 CARMEL CA 93921 Limited Contenta Inn 20 VIA CONTENTA Carmel Valley, CA 93924-9501 Limited Continental Motel 1165 N. Main St. Salinas, CA 93906 Limited COUNTRY INN & SUITES 3288 DUNES DR MARINA, CA 93933 Limited Country Inn/Meldi Inc 126 John St. Salinas, CA 93901 Limited Courtyard Salinas 17225 EL RANCHO WAY SALINAS, CA 93907-1732 Limited CVI INVESTORS PO BOX 3185 CARMEL CA 93921 Limited
CVI INVESTORS PO BOX 3185 CARMEL CA 93921 Limited
CYPRESS INN P.O. Box Y CARMEL CA 93921 Limited
Days Inn 1130 Broadway St KING CITY, CA 93930 Limited
DAYS INN 1288 MUNRAS AVENUE MONTEREY, CA 93940 Limited DAYS INN - SAN CARLOS 850 ABREGO MONTEREY, CA 93940 Limited DEER HAVEN INN 750 CROCKER AVE PACIFIC GROVE, CA 93950-3727 Limited Deetjen's Big Sur Inn 48865 HIGHWAY 1 BIG SUR, CA 93920-9512 Full Discovery Inn 1106 Fremont Blvd. Seaside, CA 93955 Limited

ECONO LODGE (MONTEREY
FAIRGROUNDS INN) 2042 NO. FREMONT ST. MONTEREY, CA 93940 Limited EconoLodge Bay Breeze Inn 2049 Fremont Blvd Seaside, CA 93955 Limited Economy Inn 214 John St. Salinas, CA 93901 Limited
Economy Inn 1131 Fremont Blvd. Seaside, CA 93955 Limited ATTACHMENT 4

MCTID Management District Plan 30
November 2, 2022
EL CASTELL MOTEL 2102 NORTH FREMONT MONTEREY, CA 93940 Limited El Dorado Motel/Café Main Street 1351 N. Main Salinas, CA 93906 Limited El Rey Motel 443 W. Market St. Salinas, CA 93901 Limited El Sombrero Motel/Ramesh J. Patel 210 Abbott St. Salinas, CA 93901 Limited Embassy Suites 1441 Canyon Del Rey Blvd. Seaside, CA 93955 Full Esalen Institute 55000 HIGHWAY 1 BIG SUR, CA 93920-9546 Full Fairview Inn 1060 Fairview Ave. Salinas, CA 93905 Limited Fernwood Resort 47200 HIGHWAY 1 BIG SUR, CA 93920-9542 Limited Fireside Inn 640 Broadway St KING CITY, CA 93930 Limited FOREST LODGE PO BOX 6286 CARMEL CA 93921 Limited
Gateway Lodge 1909 Fremont Blvd. #3128 Seaside, CA 93955 Limited Glen Oaks Big Sur 47080 HIGHWAY 1 BIG SUR, CA 93920-9556 Limited Gorda Cabin Rental 7801 HIGHWAY 1 BIG SUR, CA 93920 Limited GOSBY HOUSE INN 643 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2691 Limited GREEN GABLES INN PO BOX 3073 MONTEREY, CA 93942-3080 Limited H.I. Resort Condominium Assoc, Inc 120 HIGHLAND DR CARMEL, CA 93923-9607 Full Hacienda House 505 CORRAL DE TIERRA RD SALINAS, CA 93908-8950 Limited HAMPTON INN 17777 Center Court Dr. #725 MARINA, CA 93933 Limited Hampton Inn & Suites/Salinas Hotel
Investors 523 Work St. Salinas, CA 93901 Limited
HAMPTON INN (formerly LaQuinta) 2401 DEL MONTE AVENUE MONTEREY, CA 93940 Limited HHLP SANCTUARY ASSOCIATES 3295 DUNES RD MARINA, CA 93933-2002 Full Hidden Valley Inn 102 W CARMEL VALLEY RD Carmel Valley, CA 93924-9573 Limited Highlands Inn 140 HIGHLAND DR CARMEL, CA 93923-9607 Limited HILTON GARDEN INN 1000 AGUAJITO RD MONTEREY, CA 93940 Full HOFSAS HOUSE INC. P.O. BOX 1195 CARMEL CA 93921 Limited Holiday Inn Express 1400 Del Monte Blvd. Seaside, CA 93955 Limited HOLIDAY INN EXPRESS 443 WAVE STREET MONTEREY, CA 93940 Limited Holiday Inn Express & Suites 195 Kern St. Salinas, CA 93905 Limited Holiday Inn Express & Suites
Marina 189 SEASIDE AVE MARINA, CA 93933-2505 Limited
Holman Ranch, LLC 60 HOLMAN RD Carmel Valley, CA 93924-9620 Limited HOME 2 SUITES 1534 Fremont Blvd Suite D MARINA, CA 93933 Limited HORIZON INN P. O. BOX 1693 CARMEL CA 93921 Limited
HOTEL 1110 1110 DEL MONTE AVENUE MONTEREY, CA 93940 Limited HOTEL ABREGO 755 ABREGO ST. MONTEREY, CA 93940 Full
HOTEL CARMEL 8000 S Arizona Grand Pkwy PHOENIX AZ 85044 Limited HOTEL PACIFIC 300 PACIFIC STREET MONTEREY, CA 93940 Limited HOWARD JOHNSON 416 RESERVATION RD MARINA, CA 93933-3320 Limited Howard Johnson Inn/Ambakari, Inc 131 John St. Salinas, CA 93901 Limited HYATT REGENCY MONTEREY ONE OLD GOLF COURSE RD. MONTEREY, CA 93940 Full IHG ARMY POM Presidio of Monterey MONTEREY, CA 93940 Full Inn at King City 4 Broadway Cir. KING CITY, CA 93930 Limited Inn At Moss Landing Point 8425 MOSS LANDING RD D Moss Landing, CA 95039-9679 Limited ATTACHMENT 4

MCTID Management District Plan 31
November 2, 2022
Inn At Spanish Bay, Attn: David
Hoopingarner 2700 17 MILE DR PEBBLE BEACH, CA 93953 Luxury Inn at the Pinnacles 32025 Stonewall Canyon Rd SOLEDAD, CA 93960 Limited INN BY THE BAY MONTEREY 936 MUNRAS AVENUE MONTEREY, CA 93940 Limited Inns of California 1215 De La Torre Salinas, CA 93905 Limited INTERCONTINENTAL – The Clement 750 CANNERY ROW MONTEREY, CA 93940 Full JABBERWOCK 598 LAINE ST. MONTEREY, CA 93940 Limited
Keefers Inn 615 Canal St KING CITY, CA 93930 Limited
LA PLAYA HOTEL 8000 S Arizona Grand Pkwy PHOENIX AZ 85044 Luxury LAGUNA LODGE 430 RESERVATION RD MARINA, CA 93933-3320 Limited LAMPLIGHTER INN PO BOX 6286 CARMEL CA 93921 Limited Laurel Inn 801 W. Laurel Dr. Salinas, CA 93906 Limited
Lincoln Green Inn 26200 CARMELO ST CARMEL, CA 93923-9134 Limited LOBOS LODGE P.O. Box L-1 CARMEL CA 93921 Limited
LONE OAK MOTEL 2221 NO. FREMONT ST. MONTEREY, CA 93940 Limited Los Laureles Lodge 313 W CARMEL VALLEY RD Carmel Valley, CA 93924-9415 Full LOVERS POINT INN 9600 Blue Larkspur Ln Ste 101 MONTEREY, CA 93940-6585 Limited Lucia Lodge 62400 HIGHWAY 1 BIG SUR, CA 93920-9533 Limited MARIPOSA INN 1386 MUNRAS AVENUE MONTEREY, CA 93940 Limited MARRIOTT SPRINGHILL SUITES 215 10TH ST MARINA, CA 93933-6004 Limited MARTINE INN PO BOX 330 PACIFIC GROVE, CA 93950-0321 Limited MERRITT HOUSE 386 PACIFIC ST. MONTEREY, CA 93940 Limited Mission Ranch 26270 DOLORES ST CARMEL, CA 93923-9218 Full Monarch Inn 633 Broadway St. KING CITY, CA 93930 Limited MONARCH RESORT 1111 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2312 Limited MONTE VERDE INN PO BOX 394 CARMEL CA 93921 Limited
MONTE VERDE INN EAST P.O.BOX 394 CARMEL CA 93921 Limited MONTEREY BAY INN 242 CANNERY ROW MONTEREY, CA 93940 Limited MONTEREY BAY LODGE 55 CAMINO AGUAJITO MONTEREY, CA 93940 Limited MONTEREY FIREPLACE INN 2362 N. Fremont MONTEREY, CA 93940 Limited MONTEREY FIRESIDE MOTEL 1131 TENTH ST. MONTEREY, CA 93940 Limited MONTEREY HOSTEL 778 HAWTHORNE ST. MONTEREY, CA 93940 Limited MONTEREY HOTEL 406 ALVARADO MONTEREY, CA 93940 Limited
MONTEREY MARRIOTT 350 CALLE PRINCIPAL MONTEREY, CA 93940 Full MONTEREY OCEANSIDE INN 2030 DEL MONTE AVENUE MONTEREY, CA 93940 Limited MONTEREY PENINSULA INN 1101 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2312 Limited Monterey Pines Inn 1298 MUNRAS AVENUE MONTEREY, CA 93940 Limited MONTEREY PLAZA 400 CANNERY ROW MONTEREY, CA 93940 Full
MONTEREY SURF INN 1200 MUNRAS AVENUE MONTEREY, CA 93940 Limited MONTEREY TIDES HOTEL 2600 SAND DUNES DRIVE MONTEREY, CA 93940 Full MOTEL 6 2124 NORTH FREMONT MONTEREY, CA 93940 Limited
Motel 6 #0639/G6 Hospitality
Property LLC 1257 De La Torre Salinas, CA 93905 Limited MOTEL 6 #1026 100 RESERVATION RD MARINA, CA 93933-2517 Limited ATTACHMENT 4

MCTID Management District Plan 32
November 2, 2022
Motel 6 #1370/G6 Hospitality
Property LLC 140 Kern St. Salinas, CA 93901 Limited
MOTEL 6 MONTEREY DOWNTOWN 1240 MUNRAS AVENUE MONTEREY, CA 93940 Limited Motel 6 Soledad 152 San Felipe Rd Soledad CA 93960 Limited Mountain Paradise 17717 CACHAGUA RD Carmel Valley, CA 93924-9319 Limited MUNRAS INN 1010 MUNRAS AVE MONTEREY, CA 93940 Limited
NORMANDY INN 700 UNIVERSITY AV.#150 SACRAMENTO CA 95925 Limited OCEAN VIEW LODGE P. O. BOX 1693 CARMEL CA 93921 Limited OCM LIGHTHOUSE LODGE LLC 1150 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2360 Limited OLD MARINA INN 3110 DEL MONTE BLVD MARINA, CA 93933-3049 Limited OLD MONTEREY INN 500 MARTIN STREET MONTEREY, CA 93940 Limited OLD SAINT ANGELA INN 321 CENTRAL AVE PACIFIC GROVE, CA 93950-2934 Limited OLYMPIA MOTOR LODGE PO BOX 51907 PACIFIC GROVE, CA 93950-6907 Limited Pacific Best Inn 1141 Fremont Blvd. Seaside, CA 93955 Limited PACIFIC GARDENS INN 701 ASILOMAR BLVD PACIFIC GROVE, CA 93950-3701 Limited PACIFIC GROVE INN PO BOX 2106 MONTEREY, CA 93942-2215 Limited PACIFIC GROVE PLAZA PO BOX 476 PACIFIC GROVE, CA 93950-0476 Limited PACIFIC INN MONTEREY 2332 NORTH FREMONT ST. MONTEREY, CA 93940 Limited PADRE OAKS MOTEL 1278 MUNRAS AVE MONTEREY, CA 93940 Limited Pal Rest Easy LLC 196 Infantry RD Fort Hunter Liggett, CA 93928 Limited Parkfield Inn 70403 PARKFIELD RD SAN MIGUEL, CA 93451 Limited PELICAN INN 2058 NO. FREMONT ST. MONTEREY, CA 93940 Limited Pessagno Winery 1645 RIVER RD SALINAS, CA 93908-8751 Limited PINE ACRES LODGE 1380 LEAD HILL BLVD 201 ROSEVILLE, CA 95661-2997 Limited PINE INN P.O. Box 250 CARMEL CA 93921 Full
PORTOLA HOTEL & SPA 2 PORTOLA PLAZA MONTEREY, CA 93940 Full Post Ranch Inn 47900 HIGHWAY 1 BIG SUR, CA 93920-9576 Luxury Prunedale Motor Lodge 1017 EL CAMINO REAL N PRUNEDALE, CA 93907-3359 Limited Prunedale Motor Lodge Cabins 1017 EL CAMINO REAL N PRUNEDALE, CA 93907-3359 Limited Quail Lodge And Golf Club 8205 VALLEY GREENS DR CARMEL, CA 93923-9512 Luxury Quality Inn 1190 Broadway St. KING CITY, CA 93930 Limited QUALITY INN - FAIRGROUNDS 2075 NO. FREMONT ST. MONTEREY, CA 93940 Limited QUALITY INN - MUNRAS (Arbor Inn) 1058 MUNRAS AVENUE MONTEREY, CA 93940 Limited Quality Inn/Om Namah 144 Kern St Salinas, CA 93905 Limited RAMADA INN 323 RESERVATION RD MARINA, CA 93933-3218 Limited RAMADA LTD. CARMEL HILL 1182 CASS STREET MONTEREY, CA 93940 Limited

RED LION INN (FORMERLY BAY
PARK HOTEL) 1425 MUNRAS AVENUE MONTEREY, CA 93940 Full
RED ROOF INN 2227 N FREMONT ST MONTEREY, CA 93940 Limited Residence Inn Salinas 17215 EL RANCHO WAY SALINAS, CA 93907-1732 Limited Rex Motel/Parshottambhai M Ahir 305 Kern St. Salinas, CA 93905 Limited Ripplewood Resort 47047 HIGHWAY 1 BIG SUR, CA 93920 Full Riverside Campground 47020 HIGHWAY 1 BIG SUR, CA 93920-9556 Limited RODEWAY INN 2041 FREMONT ST MONTEREY, CA 93940 Limited
Rodeway Inn (Formerly Knights Inn) 1374 MUNRAS AVENUE MONTEREY, CA 93940 Limited ATTACHMENT 4

MCTID Management District Plan 33
November 2, 2022
ROSEDALE INN 4781 SAN LUCAS WAY SAN JOSE, CA 95135-2345 Limited Sai Enterprises DBA Motel 6 3 Broadway Cir. KING CITY, CA 93930 Limited Salinas Travel Inn/MJ Nahal Inc 425 Monterey St. Salinas, CA 93901 Limited Salinas Valley Motel/Aatray Hotels,
Inc/BAPS LLC 2100 N. Main St. Salinas, CA 93906 Limited Sand Castle Inn 1011 La Salle Ave. Seaside, CA 93955 Limited Sand Dollar Inn (formerly Magic
Carpet Inn) 1875 Fremont Blvd Seaside, CA 93955 Limited Sandpiper Inn 2408 BAY VIEW AVE CARMEL, CA 93923-9118 Limited SEA VIEW INN 35 W.POPLAR AV. SAN MATEO CA 94402 Limited SeaLamp Inn 2201 Del Monte Blvd. Seaside, CA 93955 Limited Seaside Inn 1986 Del Monte Blvd. Seaside, CA 93955 Limited SEVEN GABLES INN 301 N CANON DR STE 302 BEVERLY HILLS, CA 90210-4724 Limited Silver Saddle 705 Broadway St KING CITY, CA 93930 Limited Soledad Motel 8 1013 Front St Soledad CA 93960 Limited
SPINDRIFT INN 652 CANNERY ROW MONTEREY, CA 93940 Full
STAGE COACH LODGE 1111 10 ST MONTEREY, CA 93940 Limited Steinbeck Lodge/Travelodge/J S Inc 109 John St. Salinas, CA 93901 Limited STONEHOUSE INN 5130 COMMERCIAL CIRCLE CONCORD CA 94520 Limited Stonepine Estate Resort 150 E CARMEL VALLEY RD Carmel Valley, CA 93924-9605 Full SUNSET HOUSE PO BOX 6286 CARMEL CA 93921 Limited
SUNSET INN 133 ASILOMAR BLVD PACIFIC GROVE, CA 93950-2094 Limited SUPER 8 - FREMONT 2120 NO. FREMONT ST. MONTEREY, CA 93940 Limited SUPER 8 - MUNRAS 1300 MUNRAS AVENUE MONTEREY, CA 93940 Limited Super 8/Ram Hotels LLC 131 Kern St. Salinas, CA 93906 Limited Sure Stay Hotel 1893 Fremont Blvd. Seaside, CA 93955 Limited SVENDSGAARD'S INN PO BOX 101 CARMEL CA 93921 Limited
TALLY HO INN P.O. Box 3726 CARMEL CA 93921 Limited Tehama Golf Club, LLC 25000 Via Malpaso Canada
Woods CARMEL, CA 93923 Limited
THE BRIARWOOD INN PO BOX 5245 CARMEL CA 93921 Limited THE BRIARWOOD INN II PO BOX 5245 CARMEL CA 93921 Limited THE COLONIAL TERRACE P.O. BOX 1375 CARMEL CA 93921 Limited The Holly Farm 9200 CARMEL VALLEY RD CARMEL, CA 93923-9574 Limited THE HOMESTEAD 26270 DOLORES ST. CARMEL CA 93923 Limited The Inn at 1252 Monterey 1252 MUNRAS AVENUE MONTEREY, CA 93940 Limited The Inn at 1252 Monterey 1262 MUNRAS AVENUE MONTEREY, CA 93940 Limited The Lodge At Pebble Beach Attn:

David Hoopingarner 1500 CYPRESS DR PEBBLE BEACH, CA 93953 Luxury THE SEA BREEZE INN 1100 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2362 Limited THE STEVENSON MONTEREY 675 MUNRAS AVENUE MONTEREY, CA 93940 Limited THE VAGABOND'S HOUSE PO BOX 2747 CARMEL CA 93921 Limited Thunderbird Motel 1933 Fremont Blvd. #3128 Seaside, CA 93955 Limited Tickle Pink Motor Inn 155 HIGHLAND DR CARMEL, CA 93923-9601 Limited TRAVELODGE - FAIRGROUNDS 2030 N. FREMONT ST MONTEREY, CA 93940 Limited ATTACHMENT 4

MCTID Management District Plan 34
November 2, 2022
Treebones Resort 71895 HIGHWAY 1 BIG SUR, CA 93920-9573 Limited Vendange Carmel Inn & Suites 24815 CARPENTER ST CARMEL, CA 93923 Limited Ventana Big Sur 48123 HIGHWAY 1 BIG SUR, CA 93920-9538 Luxury VICTORIAN INN 487 FOAM STREET MONTEREY, CA 93940 Limited

VILLA FRANCA (FORMERLY EL
DORADO INN) 900 MUNRAS AVENUE MONTEREY, CA 93940 Limited Vision Quest Safari Bed & Breakfast 400 RIVER RD SALINAS, CA 93908-9627 Limited Wagon Wheel Motel 1217 N. Main St. Salinas, CA 93906 Limited

WAVE STREET INN (PREVIOUSLY
OTTER INN) 571 WAVE ST MONTEREY, CA 93940 Limited
WAYSIDE INN PO BOX 101 CARMEL CA 93921 Limited
Western Motel/Western Skylodge
LLC 6 S. Wood St. Salinas, CA 93906 Limited
WILKIES INN 1038 LIGHTHOUSE AVE PACIFIC GROVE, CA 93950-2424 Limited Willow Lodge 719 S. Main St. Salinas, CA 93901 Limited
Zen Mtn Center/Tassajar Springs
C/O Ccao Controlle 39171 TASSAJARA RD CARMEL VALLEY, CA 93924- 9316 Limited

*List as of October 2022
ATTACHMENT 4

MCTID Management District Plan 35
November 2, 2022
APPENDIX 3 – BENEFITS BY HOTEL TYPE

PROGRAMS / ACTIVITIES Luxury
Non-
Luxury
Full
Service
Limited
Service
General: Inclusion in Sales, Marketing, and Promotional Opportunities* X X X General: Listing on www.SeeMonterey.com with direct link to hotel page X X X General: Inclusion on SeeMonterey Online travel planning app X X X General: Inclusion on SeeMonterey Consumer Brochures X X X General: Access to SeeMonterey research reports and insights X X X General: Represented by SeeMonterey at industry conferences & events X X X Consumer: Opportunity to participate in Consumer Marketing Campaigns X X X Consumer: Public Relations participation opportunities X X X Consumer: Familiarization Tour (Press & Influencer) Opportunities X X X Consumer: Inclusion Opportunity in Social Media Efforts X X X Consumer: Inclusion Opportunity in Destination Video & Photo Shoots X X X Consumer: New project & special event opportunities X X X Travel Trade: Trade Show Opportunities X X X
Travel Trade: Sales Mission Opportunities X X X
Travel Trade: Lead Opportunities X X X
Travel Trade: Familiarization Tour Leads (Press & Travel Trade) Opportunities X X X
Meetings/Group: Brochure Inclusion (Mention) X X X
Meetings/Group: Familiarization Tours X X
Meetings/Group: Tradeshow Participation X X
Meetings/Group: Site Inspections X X
Meetings/Group: Marketing Campaigns X X
Meetings/Group: Brochure Inclusion (Full Page) X X
Inclusion in SeeMonterey destination partnership with Virtuoso Network X ATTACHMENT 4

MCTID Management District Plan 36
November 2, 2022
Representation a luxury travel conferences (e.g. ILTM) X Representation at VCA luxury travel week X
Featured in Luxury Advertising Campaign X
Featured in Luxury Public Relations Campaign X
* Each property that meets the minimum criteria of the client, journalist, or meeting planner will be promoted.

ATTACHMENT 4

MCTID Management District Plan 37
November 2, 2022
APPENDIX 4 - TOURISM ECONOMICS STUDY

ATTACHMENT 4
2 Introduction
Monterey visitor economy: overview and trends
MCCVB performance
Growing the visitor economy
Competitive funding analysis
Impact of TID funding on Monterey’s economy
Appendix 1: The impact of TIDs
Appendix 2: The ROI of destination marketing
1 2
3 4
5 6

TABLE OF

CONTENTS
ATTACHMENT 4
Introduction1
ATTACHMENT 4
4 In 2019, visitors to Monterey County spent a total of $3.2 billion locally and booked 3.1 million rooms. Total visitor spending increased 43% from 2011 to 2019. The revenue generated by the Monterey County Tourism Improvement District (TID) and the work performed by the Monterey County Convention and Visitors Bureau (MCCVB) is a major factor in this accelerated growth.

This report provides a comprehensive overview of the TID and its impact on Monterey’s tourism sector and overall economy. It highlights key trends over the past decade and quantifies how TID funding benefits hotels across the county.

Right now, Monterey is experiencing a strong recovery from the pandemic. Continued support and a renewal of the TID will support these trends into the future and ensure that the county’s visitor economy reaches its full potential.

Introduction
ATTACHMENT 4
5 In 2019, visitors spent
$3.2 billion in Monterey
County, supporting
40,480 jobs and $2.1
billion in local income
(including direct,
indirect, and induced
impacts).

Key findings
From 2011 to 2019,
spending in Monterey
increased 43%, faster
than the state and
region.

MCCVB’s group sales
team was increasing its
bookings prior to the
pandemic and provided
an ROI of 14-1.

MCCVB sales and
marketing are integral
to increasing spending
per visitor and driving
visitation in the off-
season.

Monterey County’s TID
will generate $2.3 billion
in visitor spending over
the next decade.

Adopting the MCCVB’s
proposed assessment
would generate an
additional $2.2 billion,
greatly accelerating post-
pandemic growth.

ATTACHMENT 4
Monterey Visitor Economy:

Overview and Trends2
ATTACHMENT 4
7 Importance of the visitor economy
Visitors to Monterey County spent $3.2 billion in 2019. Most of this spending accrued to the accommodations and food services sectors.

This spending directly generated (i.e., not including indirect and induced effects) 27,160 jobs, $1.4 billion of income, and $298 million in state and local taxes.

Monterey County represents approximately one-third of the Central Coast region’s tourism sector and 2% of the state’s tourism sector. *Much of this report focuses on 2019 (fiscal or calendar year) as a benchmark for a typical year.

In 2019*, visitors spent $3.2 billion in Monterey County, supporting 40,480 jobs and $2.1 billion in local income** Key tourism indictors in Monterey County, 2019
Dollar figures in millions
Sources: Dean Runyan Associates, Tourism Economics
**totals include indirect and induced impacts calculated by Tourism Economics Monterey Visitor Economy:

Overview and Trends
Total visitor spending $3,241
Accommodations $879
Food Service $967
Food Stores $78
Local Tran. & Gas $267
Arts, Ent. & Rec. $394
Retail Sales $520
Visitor Air Tran. $24
Other $112
Total Earnings** $2,161
Direct earning $1,420
Total jobs** 40,480
Direct jobs 27,160
Total S&L taxes** $398
Direct S&L taxes $298
ATTACHMENT 4
8 Trends in the visitor economy
Meanwhile earning and jobs increased 65% and 32%, respectively.

Visitor spending increased 43% from 2011 to 2019. Growth of the visitor economy* in Monterey Dollar figures in billions
Source Dean Runyan Associates
*earnings and jobs include direct impacts only
0 5
10 15
20 25
30 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Thousands
Spending (left axis)
Earnings (left axis)
Jobs (right axis)
Monterey Visitor Economy:

Overview and Trends
ATTACHMENT 4
9 Hotel sector KPIs
From FY2016-2019, ADR grew from $192 to $224, a 17% increase over three years
RevPAR grew to $164 from $137, a 20% increase.

Hotel occupancy increased to 73% from 71%.

Hotel performance metrics were all strengthening in the years prior to the pandemic.

Hotel sector KPIs in Monterey County
Dollars
Source Dean Runyan Associates
Monterey Visitor Economy:

Overview and Trends
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0
$50
$100
$150
$200
$250
$300
2016 2017 2018 2019 2020 2021
Occupancy (right axis)
ADR (left axis)
RePAR (left axis)
ATTACHMENT 4
10 Visitor spending share
In 2019, Monterey County accounted for 34.7% of all spending in the Central Coast region, up from 32.5% in 2011. This increase of 2.2% may seem small; but given that visitors spent $9.4 billion dollars in the region in 2019, the 2.2% increase represents an additional $202 million in visitor spending injected into Monterey’s economy.

Monterey has been capturing an increasing share of the
region's tourism market.

Monterey share of visitor spending in the Central Coast region Share of total regional spending
Source: Dean Runyan Associates
* Includes Monterey, San Benito, San Luis Obispo, Santa Barbara, and Ventura Counties

31.0%

31.5%

32.0%

32.5%

33.0%

33.5%

34.0%

34.5%

35.0%

35.5%
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey Visitor Economy:

Overview and Trends
ATTACHMENT 4
11 Visitor spending comparisons
Monterey County outpaced three of four nearby leisure-oriented counties from 2011-2019, including Sonoma, San Luis Obispo, and Santa Barbara.

Monterey exhibited strong growth compared to other nearby leisure-oriented counties.

Visitor spending growth in Monterey and local competitors Index (2011=100)
Source: Dean Runyan Associates
90 100
110
120
130
140
150
160
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
Sonoma
Napa
San Luis Obispo
Santa Barbara
Monterey Visitor Economy:

Overview and Trends
ATTACHMENT 4
12 Tourism employment growth comparisons
Direct employment in Monterey County reached 27,160 in 2019, up from 20,510 in 2011. This represents an increase of 32% over that time period, which is slightly faster than growth in the state and region.

Direct tourism employment in Monterey has grown at an
accelerated rate.

Direct tourism employment growth in Monterey, the region, and the state Index (2011=100)
Source: Dean Runyan Associates
90 95
100
105
110
115
120
125
130
135
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
Central Coast
California
Monterey Visitor Economy:

Overview and Trends
ATTACHMENT 4
13 Hotel sector growth comparisons
Hotel room revenue in Monterey outpaced 10 competing destinations and grew almost 8% faster than the state.

Monterey led its competition in terms of room revenue
growth over the three years prior to the pandemic.

Room revenue growth in Monterey and competitors, FY2017-2019* Percent total growth
Source: STR
*We use a shorter time horizon due to data limitations

17.8%

17.6%

11.8%

10.3%

10.2%

10.0%

9.4%

8.8%

8.3%

7.1%

6.6%

4.3%
0% 10% 20%
Monterey County
South Lake Tahoe
San Francisco/San Mateo
Sonoma County,
San Jose/Santa Cruz
California
San Diego
Palm Springs
Santa Barbara/Santa Maria
Newport Beach/Dana Point
Napa County
Laguna Beach
Monterey Visitor Economy:

Overview and Trends
ATTACHMENT 4
14 Visitor spending comparisons
While Monterey’s strong performance is notable over the entire decade, the county achieved particularly robust growth in the later half of the decade.

Between 2015 and 2019, visitor spending in Monterey increased 20%, outpacing both the region (+17%) and the state (+19%).

Visitor spending increased at a faster rate in Monterey than in the state or region.

Visitor spending growth in Monterey, the region, and the state Index (2011=100)
Source: Dean Runyan Associates
90 100
110
120
130
140
150
2011 2012 2013 2014 2015 2016 2017 2018 2019
Monterey
Central Coast
California
Monterey Visitor Economy:

Overview and Trends
ATTACHMENT 4
MCCVB Performance3
ATTACHMENT 4
16 Advertising ROI
In the first half of FY2022, media campaigns run by the MCCVB generated awareness of Monterey County as a tourism destination in 4.2 million households in both drive and fly markets. These newly aware households made 115,261 trips to Monterey County and spent $136.8 million locally.

These ads produced an ROI of 75-to-1.

MCCVB advertising generates a significant ROI in drive and fly markets.

MCCVB advertising performance by market type, mid-year FY2022 Source: SMARI
MCCVB Performance
Drive Fly Total
Aware households created 2,500,000 1,700,000 4,200,000
Influenced trips to Monterey 45,857 69,404 115,261
Influenced visitor spending (millions) $44.0 $92.8 $136.8 Ad spending (millions) $0.7 $1.1 $1.8
ROI 62-to-1 84-to-1 75-to-1
ATTACHMENT 4
17 Group sales performance
The sales teams booked 255 events in FY2019, up from 250 in FY2016.

Meanwhile, rooms booked increased to 69,000 from 61,200, a 13% increase over the same time period.

The average size of events also increased in this time period, growing to 271 rooms per event from 245.

The MCCVB’s group sales team was increasing its bookings prior to the pandemic.

MCCVB Performance
MCCVB group sales
Rooms booked
Source: MCCVB
215
220
225
230
235
240
245
250
255
260
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2016 2017 2018 2019
Rooms
Events
ATTACHMENT 4
18 Group sales return on investment
The events booked by the MCCVB sales team resulted in 96,800 total room sales and $44 million in visitor spending. This provided an ROI of 14-to-1 when measured against their $3.1 million budget.

The MCCVB’s group sales team generated a substantial ROI in FY2019.

MCCVB Performance
MCCVB group sales performance, FY2019
Source: MCCVB; Tourism Economics
*This includes bookings in the event room block and an estimation of outside the block bookings from Tourism Economics’ and Destination International‘s Event Impact Calculator. ** Includes spending by the event organizer.

Total event rooms* 96,800
Spending per room** $455
Total Spending (millions) $44.0
Sales and group services expenses (millions) $3.1
Group sales ROI 14-to-1
ATTACHMENT 4
19 Group sales and seasonality
While group sales* remain low in November and December, they create a substantial boost in the shoulder months of Jan.-Apr. and Sep.-Oct. when transient (i.e., not group or contract) room bookings are lower. *As reported by STR, which includes additional rooms beyond what the MCCVB books.

Group sales help fill out the off-peak “shoulder” seasons for the Monterey visitor economy.

MCCVB Performance
Seasonality of room bookings in Monterey County, 2018
Monthly share of annual rooms
0%
2%
4%
6%
8%
10%
12%
14%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Transient rooms
Group rooms
Source: STR
ATTACHMENT 4
Growing the Visitor Economy4
ATTACHMENT 4
21 Overcoming supply constraints
This section reviews ways to increase the economic impact of tourism given current supply constraints
While a 73% occupancy rate may leave an impression that there are numerous available rooms, this is close to full capacity for a leisure destination. It is rare to see non-urban destinations (cities fill weekdays and ‘low’ seasons with business travelers) maintain annual occupancy rates above 75%.

Therefore, increasing the economic impact of tourism in Monterey County largely depends on some combination of increasing room inventory, increasing visitor spending per booked room, and filling out the shoulder periods (especially weekdays).

Monterey’s pre-pandemic occupancy rate was nearing full capacity.

Growing the Visitor Economy
Occupancy rate in Monterey County and competing destinations, FY2019 Source: STR
82%
78%
75%
75%
75%
73%
73%
72%
71%
70%
68%
62%
0% 20% 40% 60% 80% 100%
San Francisco/San Mateo
San Diego
California
San Jose/Santa Cruz
Sonoma County
Monterey County
Newport Beach/Dana Point
Laguna Beach,
Napa Valley
Santa Barbara/Santa Maria
South Lake Tahoe
Palm Springs
ATTACHMENT 4
22 Importance of visitor value
To maximize the value of each visitor, the MCCVB can concentrate on the domestic-fly and overseas markets. The domestic-fly market spends 42% more than the drive market, and the overseas* market spends 192% more than the domestic drive market.
*The overseas spending estimate is a statewide average that comes from Tourism Economics’ International State Travel database and includes data inputs from a dozen sources including the NTTO, the BEA, and VisaVue Travel. This includes spending in California, but not spending on travel to the US.

Visitors from greater distances spend significantly more per trip.

Growing the Visitor Economy
Spending per trip by origin market
Sources: SMARI; Tourism Economics Dollars per trip
*California figure – calendar year 2020, other figures FY2021 $959
$1,364
$2,799
$0 $1,000 $2,000 $3,000
Domestic drive
Domestic fly
Overseas*
ATTACHMENT 4
23 Importance of visitor value
Compared to the domestic drive market, the domestic fly market spends 31% more per night, the business conference market spends 158% more, and the overseas* market spends 190% more.
*The overseas origin market estimate uses San Jose data, the closest available data point, and comes from Tourism Economics’ Global City Travel database. This uses data inputs from a dozen sources including the NTTO, the BEA, and VisaVue Travel.

This includes spending in San Jose, but not spending on travel to the US.

Visitors from greater distances spend significantly more per night.

Growing the Visitor Economy
Spending per night by origin market
Sources: SMARI; Tourism Economics Dollars per night
*San Jose figure – calendar year 2020, other figures FY2021 ** Includes spending by the event organizer.
$153
$201
$455
$561
$0 $100 $200 $300 $400 $500 $600
Domestic drive
Domestic fly
Business conference**
Overseas*
ATTACHMENT 4
24 Boosting the low season
While Monterey’s 73% annual occupancy rate is quite high for a non-urban leisure destination, MCCVB can realize the opportunity to increase low- season bookings.

If the six low-season months (average occupancy 64%) matched the occupancy rate of the six high-seasons months (80%), Monterey would see an increase of 354,000 rooms booked—a 10% increase over its current total.

MCCVB is also well-positioned to increase off-season
bookings.

Growing the Visitor Economy
Seasonality and potential new booking in Monterey, 2019 Sources: STR; Tourism Economics
*Potential new room bookings if these months could match the high-season occupancy rate of 80%.

Rooms booked Occupancy rate Potential new bookings*
Jan 214,000 56% 93,000
Feb 215,000 64% 53,000
Mar 253,000 68% 44,000
Apr 277,000 75% 18,000
May 290,000 76% --
Jun 302,000 82% --
Jul 319,000 84% --
Aug 317,000 83% --
Sep 291,000 79% --
Oct 295,000 77% --
Nov 248,000 67% 49,000
Dec 210,000 55% 97,000
Total 3,231,000 354,000
ATTACHMENT 4
Competitive Funding Analysis5
ATTACHMENT 4
26 TID overview
Full-service hotels are assessed $2.00 and other hotels are assessed $1.00. In FY2019, the TID (tourism improvement district) generated $4.2 million of funding dedicated for tourism promotion through the MCCVB and represented the largest source of funding for tourism promotion in the county.

The Monterey County TID assessment that funds the MCCVB ranges from $1.00 to $2.00.

Competitive Funding Analysis
Monterey hotel sector and TID details by scale, FY2019
Source: MCCVB, STR
ADR Room revenue % of Revenue
Current Avg TID per
Room Assumption
Current TID
Contribution
Contribution % of
Total TID
Luxury $455 $294,000,000 41% $2.00 $1,293,000 31%
Upper Upscale $229 $134,000,000 19% $1.50 $875,000 21%
Upscale $180 $48,000,000 7% $1.25 $333,000 8%
Upper Midscale $185 $75,000,000 10% $1.15 $468,000 11%
Midscale $179 $39,000,000 5% $1.00 $218,000 5%
Economy $132 $133,000,000 18% $1.00 $1,013,000 24%
Total $231 $724,000,000 100% $0.00 $4,201,000 100%
ATTACHMENT 4
27 TID rate comparison
This set includes the MCCVB’s competitive set and additional DMOs that disclosed their assessment rate to Destinations International (DI).

Since the assessment is a major source of revenue for the MCCVB (and the majority of other DMOs on this list), this results in a limited tourism promotion budget for Monterey County. Increasing the TID assessment rate could generate additional funding and provide competitive funding for tourism promotion in Monterey County.
*Monterey’s per room assessment scheme results in an overall rate of 0.6% of room revenue.

Monterey’s TID assessment of 0.6%* is much lower than the competitive set average of 2.1%.

Competitive Funding Analysis
TID assessment rates in Monterey and competitors
TID assessment rate
Sources: Dean Runyan Associates; Tourism Economics

4.0%

3.0%

2.9%

2.3%

2.1%

2.0%

1.5%

1.0%

0.6%
0% 2% 4% 6%
Stockton
Huntington Beach
Newport Beach
Palm Springs
Pasadena
San Francisco
Average
Anaheim
Portland
Sonoma County
Napa Valley
San Diego
Orange County
Los Angeles
San Luis Obispo
Mendocino County
Monterey County
ATTACHMENT 4
28 Napa County, CA
Monterey
County, CASanta Barbara, CA
Sonoma
County, CA
Stockton, CA
Ventura,
CA San Luis
Obispo, CA***
Huntington
Beach, CA
Palm Springs,
CA
Lake Tahoe, CA
Newport,
CA
$0
$5
$10
$15
$20
$25
0 2 4 6 8 10 12 14 16
Thousands
Competitive funding analysis
This analysis compares destinations’ DMO budgets relative to the size of the local tourism sector (as measured by hotel room inventory). This analysis shows that Monterey County tourism promotion is underfunded compared to the line of best fit (the dotted line).

We chose to conduct a pre-pandemic analysis to provide perspective on a ‘normal’ level of DMO spending and room inventory, as the pandemic has caused severe swings.

Tourism promotion in Monterey County is underfunded
relative to local competitors.

Competitive Funding Analysis
Hotel, rooms (000’s)
Sources: Tourism Economics, DI, STR
*2018 or 2019 depending on destination’s reporting
** San Luis Obispo has greatly increased their DMO’s budget recently. The destination will likely spend close to $10m in 2022, up from $4.6m in this analysis.

Hotel rooms and DMO revenue in competing destinations, pre-pandemic* DMO budget, millions
Competitive
funding line
ATTACHMENT 4
29 Competitive funding analysis
Examining the same data as the prior slide, we see that Monterey County provides $630 of tourism promotion spending for every hotel room, 38% below the set average.

Monterey County’s tourism promotion budget is 38% below the set average.

Competitive Funding Analysis
Funding dollars per hotel room
Sources: Tourism Economics, DI, STR
*2018 or 2019 depending on destination’s reporting
** San Luis Obispo has recently increased their DMO’s budget, and their figure may double in 2022.

Tourism promotion funding per room in select destinations, pre-pandemic $2,000
$1,536
$1,328
$1,310
$1,031
$1,012
$865
$687
$634
$630
$624
$484
$0 $1,000 $2,000 $3,000
Huntington Beach, CA
Napa County, CA
Palm Springs, CA
Sonoma County, CA
Santa Barbara, CA
Average
Newport, CA
Lake Tahoe, CA
Ventura, CA
Monterey County, CA
Stockton, CA
San Luis Obispo, CA**
ATTACHMENT 4
Impact of TID Funding on the
Monterey Economy6
ATTACHMENT 4
31 Importance of visitor value
Increasing or decreasing the TID assessment rate would do little to change Monterey’s price competitiveness amongst its main competitors. Economically, elimination of the TID is unlikely to produce any positive benefit on room demand. Tourism Economics modeling on behalf of STR has consistently found hotel room demand to be highly inelastic at the market level. That is, while an individual property may gain or lose share within a market based on price, a market-wide shift in rate has no appreciable impact on room demand.

The impact of the loss of tourism promotion funding would in all likelihood far exceed any possible negative effect of higher room costs. We also note that from FY2016-2019, ADR increased 17% while the occupancy rate grew to 73% from 71%. This indicates that price sensitivity does not seem to be a major factor for visitors.

In sum, eliminating the TID would not impact hotels’ price competitiveness but would appreciably undercut Monterey’s competitive market position in the absence of concerted destination sales and marketing.

Changing the TID assessment rate would not impact local hotels’ price competitiveness.

Impact of TID Funding on the Monterey Economy
Dollars
Source: STR
* The US Open boosted room rates in Monterey County FY2019.

Average room rate in Monterey and competitors, FY2019*
$353
$333
$251
$226
$224
$200
$199
$181
$172
$171
$169
$131
$0 $100 $200 $300 $400
Laguna Beach
Napa County
San Francisco/San Mateo
Newport Beach/Dana Point
Monterey County
Santa Barbara/S anta Maria
San Jose/Santa Cruz
Sonoma County,
Palm Springs
California
San Diego
South Lake Tahoe
ATTACHMENT 4
32 Importance of visitor value
Based on prior calculations of paid media and group sales ROIs, we estimate that the MCCVB has an organizational ROI of 47-to-1 (i.e., one dollar of MCCVB funding generates $47 of visitor spending).

The MCCVB generated an ROI of $47-to-$1.

Sources: SMARI; MCCVB; Tourism Economics
MCCVB organizational ROI calculations
Impact of TID Funding on the Monterey Economy
Value Source / calculation
Paid media ROI on visitor spending 75-to-1 See 'MCCVB Performance' section Paid Media expenses share of total DMO budget 56% MCCVB Group Sales ROI on visitor spending 14-to-1 See 'MCCVB Performance' section Group sales share of total DMO budget 33% MCCVB
Organization ROI on visitor spending 47-to-1 (75 * 61%) + (14 * 33%) ATTACHMENT 4
33 Scenario development
Here we evaluate the impact of changes to the TID structure via three scenarios. In the Baseline Scenario the TID structure remains the same, in the TID elimination scenario the TID is removed, and in the Alternative TID Scenario the TID structure is changed to a three-tiered flat assessment that begins at $1.50 for limited-service hotels, $4.50 for full-service hotels, and $7.00 for luxury properties with biennial escalators.

We provide additional details on the three scenarios in fiscal year 2025, as this is the first year without a “cool-down” or “ramp-up” effect (i.e. the full effect of a funding increase/decrease will not be felt in the first two years of budget changes as lags exists between assessments being collected, distributed, media spending being increased/decreased, consumers making travel plans, and visitors actually traveling).

In 2025, our Baseline Scenario forecasted MCCVB’s revenue is $9.0 million.

In the TID Elimination Scenario, the MCCVB receives $4.0 million, a decrease of $5.0 million. We estimate a 47-to-1 ROI on this lost funding spending, which results in $233 million of lost visitor spending.

Changes in the TID could create an impact of several hundred million dollars.

Impact of TID Funding on the Monterey Economy
MCCVB revenue and visitor spending in three scenarios, FY2025 Dollar figures in millions
TID Elimination
Scenario
Baseline
Scenario
Alternative
Assessment Scenario
TID revenue $0.0 $5.0 $9.8
Jurisdiction investment $4.0 $4.0 $4.0
Total MCCVB revenue $4.0 $9.0 $13.8
Revenue change relative to baseline -$5.0 -- $4.8
Anticipated ROI revenue change* 47-to-1 -- 42-to-1
Change in visitor spending -$233 -- $204
Total visitor spending $3,157 $3,391 $3,594
Sources: SMARI; MCCVB; Tourism Economics
In the Alternative Assessment Scenario, the MCCVB receives $13.8 million in revenue, an increase of $4.8 million. To be conservative and account for diminishing marginal returns on new funding, we estimate a 42-to-1 ROI on this new funding, which results in $204 million of gained visitor spending.

ATTACHMENT 4
34 '19-'32
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Growth Spending $3,189 $2,529 $2,197 $2,751 $3,295 $3,342 $3,391 $3,440 $3,525 $3,576 $3,627 $3,680 $3,733 $3,787 17% Earnings $1,387 $1,239 $991 $1,179 $1,405 $1,418 $1,431 $1,445 $1,473 $1,487 $1,501 $1,515 $1,529 $1,543 10% Jobs 26,895 23,765 19,342 24,226 28,431 28,265 28,100 27,936 28,053 27,890 27,727 27,565 27,404 27,244 2% Local taxes $168 $130 $114 $143 $172 $175 $178 $182 $186 $190 $193 $196 $200 $204 19% Sales tax $72 $58 $50 $63 $75 $76 $77 $78 $80 $81 $82 $83 $83 $84 15% TOT $71 $53 $47 $60 $72 $74 $76 $78 $80 $82 $84 $86 $88 $90 23% State taxes $142 $109 $96 $115 $143 $147 $153 $156 $159 $162 $164 $166 $169 $171 19% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Spending 100 79 69 86 103 105 106 108 111 112 114 115 117 119 Earnings 100 89 71 85 101 102 103 104 106 107 108 109 110 111 Jobs 100 88 72 90 106 105 104 104 104 104 103 102 102 101 Local taxes 100 78 68 85 103 105 106 108 111 113 115 117 119 121 Sales tax 100 81 70 87 104 105 106 108 110 111 113 114 115 117 TOT 100 75 66 84 101 104 106 109 112 115 117 120 123 126 State taxes 100 77 68 81 101 104 108 110 113 114 116 118 119 121 Baseline Scenario forecast
In our Baseline Scenario, visitor spending grows to $3.8 billion in FY2032**.

Impact of TID Funding on the Monterey Economy
Monterey County’s visitor economy, Baseline Scenario*
Dollar figures in millions
Sources: SMARI; MCCVB; Tourism Economics
*Fiscal years
**Based on MCCVB projections of hotel revenue
Monterey County’s visitor economy, Baseline Scenario
Index, (FY2019=100)
ATTACHMENT 4
35 TID Elimination scenario
The TID Elimination scenario results in $2.3 billion dollars of lost spending over the next decade.

Impact of TID Funding on the Monterey Economy
Monterey County’s visitor economy, TID Elimination Scenario Dollar figures in millions
Source: Tourism Economics
*annual average
These spending losses result in losses of $939 million in earnings, $120 million in local taxes, and an average of 1,759 jobs annually. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total losses Baseline Scenario visitor spending $3,189 $2,529 $2,197 $2,751 $3,295 $3,342 $3,391 $3,440 $3,525 $3,576 $3,627 $3,680 $3,733 $3,787 -- Lost TID Scenario visitor spending -- -- -- -- $3,221 $3,192 $3,157 $3,201 $3,280 $3,325 $3,370 $3,416 $3,463 $3,510 -- Lost spending -- -- -- -- $73 $150 $233 $239 $245 $251 $257 $263 $270 $277 $2,259 Lost earnings -- -- -- -- $31 $64 $98 $100 $102 $104 $106 $108 $111 $113 $939 Lost jobs* -- -- -- -- 633 1,270 1,933 1,941 1,949 1,957 1,966 1,974 1,982 1,990 1,759 Lost local taxes -- -- -- -- $3.8 $7.9 $12.3 $12.6 $12.9 $13.3 $13.7 $14.1 $14.5 $14.9 $120 Sales tax -- -- -- -- $1.7 $3.5 $5.4 $5.5 $5.6 $5.8 $5.9 $6.0 $6.2 $6.3 $52 TOT -- -- -- -- $1.6 $3.2 $5.1 $5.3 $5.4 $5.6 $5.8 $6.0 $6.2 $6.4 $51 Lost state taxes -- -- -- -- $3.2 $6.6 $10.6 $10.8 $11.1 $11.4 $11.6 $11.9 $12.2 $12.5 $102 ATTACHMENT 4
36 TID Elimination scenario
The TID elimination scenario results in $2.3 billion dollars of lost spending over the next decade.

Impact of TID Funding on the Monterey Economy
Future visitor spending growth in Monterey, two scenarios Dollars, billions
Source: Tourism Economics
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5Thousands
Lost
Repeat
Baseline
TID Elimination
$2.3bn lost
over 10 years
ATTACHMENT 4
37 Alternative Assessment Scenario
The Alternative Assessment Scenario results in $2.2 billion dollars of gained spending over the next decade.

Impact of TID Funding on the Monterey Economy
Monterey County’s visitor economy, Alternative Assessment Scenario Dollar figures in millions
These spending gains result in gains of $920 million in earnings, $118 million in local taxes, and an average of 1,716 jobs annually. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total gains Baseline Scenario visitor spending $3,189 $2,529 $2,197 $2,751 $3,295 $3,342 $3,391 $3,440 $3,525 $3,576 $3,627 $3,680 $3,733 $3,787 -- Alternative Assessment Scenario visitor spending -- -- -- -- $3,349 $3,448 $3,594 $3,638 $3,766 $3,812 $3,906 $3,953 $4,048 $4,096 -- Gained spending -- -- -- -- $55 $106 $204 $199 $242 $236 $279 $273 $316 $310 $2,218 Gained earnings -- -- -- -- $23 $45 $86 $83 $101 $98 $115 $112 $129 $126 $920 Gained jobs* -- -- -- -- 471 896 1,688 1,613 1,923 1,842 2,132 2,047 2,317 2,228 1,716 Gained local taxes -- -- -- -- $2.9 $5.6 $10.7 $10.5 $12.8 $12.5 $14.8 $14.6 $16.9 $16.7 $118 Sales tax -- -- -- -- $1.7 $3.5 $5.4 $5.5 $5.6 $5.8 $5.9 $6.0 $6.2 $6.3 $52 TOT -- -- -- -- $1.6 $3.2 $5.1 $5.3 $5.4 $5.6 $5.8 $6.0 $6.2 $6.4 $51 Gained state taxes -- -- -- -- $2.4 $4.7 $9.2 $9.0 $10.9 $10.7 $12.6 $12.4 $14.3 $14.0 $100 Source: Tourism Economics
*annual average
ATTACHMENT 4
38 Alternative Assessment Scenario
The Alternative Assessment Scenario results in $2.2 billion dollars of gained spending over the next decade.

Impact of TID Funding on the Monterey Economy
Future visitor spending growth in Monterey, two scenarios Dollars, billions
Source: Tourism Economics
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0Thousands
Lost
Repeat
Baseline
Alternative Assessment
$2.2bn gained
over 10 years
ATTACHMENT 4
39 Scenario comparison
The changes in TID funding create a notable impact on the future path of the visitor economy.

Impact of TID Funding on the Monterey Economy
Future visitor spending growth in Monterey, three scenarios Dollars, billions
Source: Tourism Economics
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5Thousands
Alternative Assessment
Baseline
TID Elimination
ATTACHMENT 4
Appendix: The National Impact of
Tourism Improvement Districts
ATTACHMENT 4
41 National study of TID benefits
The study finds that tourism improvement districts (TIDs) provide a competitive advantage for destinations. By examining TID impacts on room demand, revenue, and visitor spending, this white paper explores that ground-breaking research and explains how TIDs enhance economic impacts in destinations.

The following pages review a collaborative research project on the impact of TIDs performed by Tourism Economics.

The Impact of Tourism Improvement Districts
ATTACHMENT 4
42 Destination sample
The analysis covers 100 cities, including 29
TID destinations and 71 non-TID
destinations.

The Impact of TIDs
Cities included in Tourism Economics’ TID impact analysis ATTACHMENT 4
43 Room demand regression model
Our approach to estimate the effect of TID on room demand included:

1. 100 US destinations (counties); 29 TID destinations and 71 non-TID destinations

2. Oxford Economics databank was utilized for relevant macroeconomic indicators, namely, GDP and employment (at county level)

3. The final panel dataset consisted of 100 cross-sections and 30 time periods (1990-2019), totaling 3,000 observations
The Impact of TIDs
log 𝑅𝑜𝑜𝑚 𝑑𝑒𝑚𝑎𝑛𝑑 = 𝑏1 + 𝑏2 × log 𝐴𝑟𝑡𝑠&𝑅𝑒𝑐 𝐺𝐷𝑃
+𝑏3 × log 𝑇𝑜𝑡𝑎𝑙 𝐺𝐷𝑃 + 𝑏4 × 𝑇𝐼𝐷𝑑𝑢𝑚𝑚𝑦 + 𝑒𝑟𝑟𝑜𝑟
Where 𝑇𝐼𝐷𝑑𝑢𝑚𝑚𝑦 = 1 for a TID city, and 0 otherwise.
• The model sought to test whether a positive and significant relationship existed between the dependent variable, 𝑅𝑜𝑜𝑚 𝑑𝑒𝑚𝑎𝑛𝑑, and the independent variable 𝑇𝐼𝐷𝑑𝑢𝑚𝑚𝑦 ; a positive 𝑏4 coefficient with a small p-value. • The other two independent variables, Arts & Rec 𝐺𝐷𝑃 and 𝑇𝑜𝑡𝑎𝑙 𝐺𝐷𝑃, were employed as control variables to control for a destination’s size and its relative importance as a tourist destination.
• Below are the regression results indicating a positive and highly significant 𝑏4 coefficient.
• The results suggest that when controlled for size and importance of a destination as a tourist destination, across our sample of 100 cities, there was an average

2.12% difference in room demand between years in which a destination had an active TID and years without a TID. Results are statistically significant with a 99% confidence level.

ATTACHMENT 4
44 High-level view
Visually, we can observe that TID destinations outperformed non-TID markets in the latest upcycle.

The Impact of TIDs
Total hotel room revenue
TID vs. non-TID cities growth
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2002 2004 2006 2008 2010 2012 2014 2016 2018
Total hotel room revenue
TID vs. Non-TID cities growth
Source: STR, Civitas, Tourism Economics
TID cities
Non -TID cities
Total hotel room revenue
TID vs. non-TID cities (2002=100)
80%
100%
120%
140%
160%
180%
200%
220%
240%
260%
2002 2004 2006 2008 2010 2012 2014 2016 2018
Total hotel room revenue
TID vs. Non-TID cities (2002=100)
Source: STR, Civitas, Tourism Economics
TID cities
Non -TID cities
ATTACHMENT 4
45 TID growth premium: demand
The Impact of TIDs
Room demand growth premium*
2003-2019
-0.12%

0.34%
-0.20%
-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%
Before TID After TID
The demand premium is calculated as the difference between an average 3-year growth in TID cities and non-TID cities prior to the TID (“Before TID”) and post the TID (“After TID”).
• Before authorizing a TID, growth in cities that eventually had a TID was 12 basis points slower compared to growth in TID cities. • After authorizing a TID, growth in TID cities was 34 basis points faster compared to non-TID cities.
• Swing of 0.5% in room demand.

On average, a destination gains 0.5% in demand growth per year after a TID is put in place.
“Premium” is measured as the difference in growth rates between TID and non-TID destinations Source: STR, Tourism Economics
ATTACHMENT 4
46 TID growth premium: revenue
The Impact of TIDs
Room revenue growth premium*
2003-2019
The revenue premium is calculated as the difference between an average 3-year growth in TID cities and non-TID cities prior to the TID (“Before TID”) and post the TID (“After TID”).
• Before authorizing a TID, growth in TID cities was 24 basis points faster compared to growth in non-TID cities
• After authorizing a TID, growth in TID cities was 130 basis points faster compared to non-TID cities
• Gain of 1.1% in room revenue.

On average, a destination gains 1.1% in revenue growth per year after a TID is put in place.
“Premium” is measured as the difference in growth rates between TID and non-TID destinations Source: STR, Tourism Economics

0.24%

1.30%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%
Before TID After TID
ATTACHMENT 4
47 TID room demand lift
The Impact of TIDs
Average annual hotel room demand
TID cities
The 29 TID destinations in our model grew to generate 7,027,654 rooms in 2019. Without the boost generated by the TIDs, these destinations would have only generated 6,878,260 rooms.

On average, our modeling indicates that TIDs produce a 2.1% lift in hotel room demand.

Sources: STR, Civitas, Tourism Economics
6,878,260
7,027,654
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
7,000,000
7,500,000
Average annual hotel room demand
TID cities
Source: STR, Civitas, Tourism Economics
Actual room
demand
Estimated room
demand in
absence of TID
ATTACHMENT 4
48 TID room demand lift
The Impact of TIDs
Average annual hotel room demand
TID cities (millions)
The 29 TID destinations in our model grew to generate $1.12 billion in room revenue in 2019. Without the boost generated by the TIDs, these destinations would have only generated $1.07 billion in room revenue.

On average, our modeling indicates that TIDs produce a 4.5% lift in hotel room revenue.

Sources: STR, Civitas, Tourism Economics
$1,067
$1,118
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Average annual hotel room revenue
TID cities (millions)
Actual room revenue
Estimated room
revenue in
absence of TID
ATTACHMENT 4
49 Economic benefits of TIDs
Tourism promotion funding provided by TIDs results in more visitors and visitor spending, and this spending represents a new injection to the local economy with many downstream benefits . In total, benefits are felt on three levels.
• Direct Impacts: Visitors create direct economic value within a discreet group of sectors (e.g., recreation, transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within each sector. • Indirect Impacts: Each directly affected sector also purchases goods and services as inputs (e.g., food wholesalers, utilities) into production.

These impacts are called indirect impacts.
• Induced Impacts: Lastly, the induced impact is generated when employees whose wages are generated whether directly or indirectly by visitors, spend those wages in the local economy.

The impacts of TIDs go beyond just the hotel and tourism sector.

The Impact of Tourism Improvement Districts
RETAIL

ENTERTAINMENT/REC

FOOD & BEVERAGE

LOCAL TRANSPORTATION

LODGING

AIR TRANSPORTATION
SALES
GDP
JOBS
INCOME
TAXES
ATTACHMENT 4
Appendix 2: The ROI of Destination Marketing
ATTACHMENT 4
51 The ROI of Destination Marketing
Many state and local CVBs and DMOs conduct periodic assessments of marketing effectiveness. There are several goals of these studies, including understanding how specific marketing campaigns are perceived by households, how effective the campaigns are in having an impact on households’ intent to travel to a given destination, and which target markets are showing differing level of responsiveness to marketing.

Frequently these studies include a specific analysis of the ROI of marketing spending in the form of a quantitative assessment of the level of incremental visitor spending and tax revenues that are attributable to destination marketing.

These studies use a variety of methods and are measuring the impact of a range of different campaigns across different situations. For example, a specific study may look at incremental visitors attracted by a state-level marketing campaign conducted by a state that attracts travelers from a range of national markets, while another study may focus on the results of a more targeted regional campaign carried out by a city-level CVB. While the results of a specific study pertain most directly to the situation that was analyzed and the corresponding assumptions, it is appropriate to consider broader inferences from the research. We analyzed recent studies that included an estimate of the incremental visitor spending attributable to advertising campaign spending.

For example, in a fairly typical approach, a study would:
• Use a survey to analyze the effect of a specific advertising campaign on households’ travel to a given destination, such as by analyzing the impact on actual travel among those that had observed the advertising or by analyzing the impact on households’ intentions to travel; • Project that effect to the broader set of households in the marketing area to estimate the number of incremental visits attributable to the campaign;
• Apply typical levels of spending per visitor to estimate incremental visitor spending; and,
• Compare incremental visitor spending to the level of advertising spending to estimate the ROI.

Tourism Economics summarized the estimates of incremental visitor spending per dollar of advertising campaign spending from these studies in the table on the following page
ATTACHMENT 4
52 The ROI of Destination Marketing
Estimates of incremental visitor spending per dollar of advertising campaign spending from the set of studies we analyzed is summarized in the adjacent table, supporting the following observations:

Overall, we observe that recent marketing campaigns by destination marketing organizations at the metro/regional level have generated approximately $53 of incremental visitor spending per dollar of advertising spending.

These ROI estimates relate directly to advertising spending. It is also appropriate to consider a visitor spending ROI relative to total CVB operating costs, or relative to public funding. As an example of the former approach, Meet Minneapolis reports the ratio of visitor spending associated with events tracked in its group sales management system to total CVB operating costs has averaged $33 in recent years. This excludes almost all leisure visitor spending.

As an example of an ROI based on public funding, the Florida state government recently analyzed the return on investment for public funding of Visit Florida.

The analysis attributed Visit Florida’s public funding (excluding, for example, significant private funding for cooperative advertising and promotions) to generating $11.2 billion of visitor spending during the three-year-period through FY 2013, representing a visitor spending ROI of $97, and a state tax revenue ROI of $3.2 ($3.20 of state tax revenue generated by each $1 of state funding).

Marketing ROI matrix
Sources: Local studies compiled by Tourism Economics
ATTACHMENT 4
53 For more information:
[email protected]
Tourism Economics is an Oxford Economics company with a singular objective: combine an understanding of the travel sector with proven economic tools to answer the most important questions facing our clients. More than 500 companies, associations, and destination work with Tourism Economics every year as a research partner. We bring decades of experience to every engagement to help our clients make better marketing, investment, and policy decisions. Our team of highly-specialized economists deliver:
• Global travel data-sets with the broadest set of country, city, and state coverage available • Travel forecasts that are directly linked to the economic and demographic outlook for origins and destinations • Economic impact analysis that highlights the value of visitors, events, developments, and industry segments • Policy analysis that informs critical funding, taxation, and travel facilitation decisions • Market assessments that define market allocation and investment decisions Tourism Economics operates out of regional headquarters in Philadelphia and Oxford, with offices in Belfast, Dubai, Frankfurt, and Ontario.

Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Our best-of-class global economic and industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic, social and business impact. Headquartered in Oxford, England, with regionalcenters in London, New York, and Singapore, Oxford Economics has offices across the globe in Belfast, Chicago, Dubai, Miami, Milan, Paris, Philadelphia, San Francisco, and Washington DC, we employ over 400 full-time staff, including 300 professional economists, industry experts and business editors—one of the largest teams of macroeconomists and thought leadership specialists.

About Tourism Economics
ATTACHMENT 4
City of Monterey MCTID Renewal Process

December 20, 2022 - RESOLUTION ADOPTED - INTENTION TO RENEW The City of Monterey received Petitions in favor of MCTID by lodging businesses that represent more than fifty percent (50%) of the total MCTID assessment to renew the MCTID.

December 20, 2022 - RESOLUTION ADOPTED - REQUESTING CONSENT The Monterey City Council requested consent from the County of Monterey and cities of Carmel- by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad to be included in the renewed MCTID. Consent must be received from the cities and County prior to the final public hearing for their jurisdiction to be included in the renewed MCTID.

December 20, 2022 - RESOLUTION ADOPTED - PROCEDURAL GUIDELINES Procedural guidelines for the formation of the MCTID have been proposed. Those guidelines cover the petition process, protest submittals, protest requirements, protest withdrawals, majority protest, and tabulation process.

January 7, 2022 - NOTICE
Written notice was mailed by the City of Monterey to the owners of all businesses proposed to be within the renewed MCTID.

January 17, 2023 - PUBLIC MEETING
Allow public testimony on the renewal of the MCTID and levy of assessments. No Council action required.

February 21, 2023 - CITY OF MONTEREY FINAL PUBLIC HEARING; POTENTIAL

ADOPTION OF RESOLUTION OF FORMATION

If written or oral protests are received from the owners of lodging businesses in the renewed MCTID which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.

If protests totaling less than 50% proposed assessments are received, the Council, following the public hearing, may decide to renew the MCTID, and then shall adopt a resolution of formation.

January 9, 2023

To Whom It May Concern:

The City of Salinas has received a letter from the City of Monterey requesting the City of Salinas take to council and consider the renewal of the Monterey County Tourism Improvement District (“MCTID”), which would replace the existing TID. At this time, you should have received a notice from the City of Monterey notifying you of a public meeting and public hearing concerning the renewal of the MCTID and levy of an assessment on business within the MCTID zones. The City of Salinas would like to formally notify Hotel/Motel Owners and Operators at the City’s intent to consent to the renewal of the Monterey County Tourism Improvement District on the January 24, 2023 City Council meeting. The current TID assessment is $1.50 per-room night for Limited-Service Hotels/Motels.

The proposed TID will have the following amendments:

1. Renewed to a ten (10) year term

2. Assessment will be increased from $1.50 to $2.00 per-room night for Limited-Service Hotels/Motels. ($1.50 will be provided to the Monterey County Convention and Visitor Bureau (MCCVB) and the remainder $0.50 will be utilized to fund the Salinas Welcome Center.)

3. Automatic biennial increase of $0.20 beginning FY 2025 -26, unless the MCCVB Board’s TID Committee votes not to implement the automatic increase based on circumstances they deem significant. (Welcome Center $0.50 will not increase through the term of the MCTID)

4. Once per year, beginning on the anniversary of this district renewal, there is a 30 -day period in which lodging business operators paying fifty percent (50%) or more of the assessment may protest and initiate proceeds in to terminate the MCTID

The transition from the old to the renewed MCTID is anticipated to take place July 1, 2023, and end ten (10) years from its start date. The City of Sali nas will continue to be responsible for collecting the assessment from each lodging business located in the City of Salinas.

City of Monterey MCTID Renewal Process

December 20, 2022 RESOLUTION ADOPTED - INTENTION TO RENEW The City of Monterey received Petitions in favor of MCTID by lodging businesses that represent more than fifty percent (50%) of the total MCTID assessment to renew the MCTID.

December 20, 2022 RESOLUTION ADOPTED - REQUESTING CONSENT The Monterey City Council requested consent from the County of Monterey and cities of Carmel-by-the- Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Pacific Grove, Salinas, Sand City, Seaside, and Soledad to be included in the renewed MCTID. Consent must be received from the cities and County prior to the final public hearing for their jurisdiction to be included in the renewed MCTID. The City of Salinas will take to Council on January 24, 2023 requesting council consent.

December 20, 2022 RESOLUTION ADOPTED - PROCEDURAL GUIDELINES Procedural guidelines for the formation of the MCTID have been proposed. Those guidelines cover the petition process, protest submittals, protest requirements, protest withdrawals, majority protest, and tabulation process.

January 7, 2023 NOTICE
Written notice shall be mailed to the owners of all businesses proposed to be within the renewed MCTID.

January 17, 2023 PUBLIC MEETING
Allow public testimony on the renewal of the MCTID and levy of assessments. No Council action required.

January 24, 2023 CITY OF SALINAS PUBLIC MEETING
City of Salinas will take to council to adopt Resolution consenting to the renewal of the MCTID

February 21, 2023 CITY OF MONTEREY FINAL PUBLIC HEARING; POTENTIAL ADOPTION

OF RESOLUTION OF FORMATION

If written or oral protests are received from the owners of lodging businesses in the renewed MCTID which will pay more than fifty percent (50%) of the assessments proposed to be levied a nd protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.

If protests totaling less than 50% proposed assessments are received, the Council, following the public hearing, may decide to renew the MCTID, and then shall adopt a resolution of formation.

If you have any questions feel free to contact Jennifer Johnson, Vice President of Operations for the Monterey County Convention and Visitors Bureau at [email protected] or 831-657-6406. The above QR c ode will allow you to view the MCTID Management Plan and City of Monterey adopted Resolutions.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-015, Version: 1
Minutes
Approve minutes of December 13, 2022 and January 10, 2023.

City of Salinas Printed on 1/19/2023Page 1 of 1
powered by Legistar™
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-056, Version: 1
Financial Claims
Approve financial claims report.

City of Salinas Printed on 1/19/2023Page 1 of 1
powered by Legistar™
Number Date Status
Transaction
Amount
463787 01/10/2023 Open $95,203.85
463788 01/10/2023 Open $650.92
463789 01/10/2023 Open $43.49
463790 01/10/2023 Open $10,711.78
463791 01/10/2023 Open $29.97
463792 01/10/2023 Open $10.00
463793 01/10/2023 Open $272.56
463794 01/10/2023 Open $503.02
463795 01/10/2023 Open $594.87
463796 01/10/2023 Open $838.29
463797 01/10/2023 Open $336.88
463798 01/10/2023 Open $295.00
463799 01/10/2023 Open $645.23
463800 01/10/2023 Open $9,120.75
463801 01/10/2023 Open $70.00
463802 01/10/2023 Open $4,363.88
463803 01/10/2023 Open $991.84
463804 01/10/2023 Open $500.19
463805 01/10/2023 Open $100.00
463806 01/10/2023 Open $100,000.00
463807 01/10/2023 Open $1,766.23
463808 01/10/2023 Open $3,277.11
463809 01/10/2023 Open $2,500.00
463810 01/10/2023 Open $14,121.00
463811 01/10/2023 Open $399.00
463812 01/10/2023 Open $46.79
463813 01/10/2023 Open $688.21
463814 01/10/2023 Open $295.00
463815 01/10/2023 Open $607.06
463816 01/10/2023 Open $54.07
463817 01/10/2023 Open $240.70
463818 01/10/2023 Open $4,298.08
463819 01/10/2023 Open $301.38
463820 01/10/2023 Open $18,054.25
463821 01/10/2023 Open $1,000.00
463822 01/10/2023 Open $242.83
463823 01/10/2023 Open $152,051.46
463824 01/10/2023 Open $141.72
463825 01/10/2023 Open $1,249.82
463826 01/10/2023 Open $72.39
463827 01/10/2023 Open $175.00
463828 01/10/2023 Open $8,495.00
Alco Water
Alco Water
Alhambra and Sierra Spring DS Waters of America LP
General Account - General Account
Check
2NDNATURE, LLC
Alameda Electrical Distributors
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
Analgesic Services Inc
Aramark Uniform & Career Apparel Group, Inc
AT and T
American Supply Company
American Textile and Supply Inc
Ana Rueda De Vidales dba JAV Language Solutions
Alhambra and Sierra Spring DS Waters of America LP
Alhambra and Sierra Spring DS Waters of America LP
Amazon.Com
California Water Service
CDW-G
Central Coast Marketing
Cal Line Equipment Company
California Association for Local Economic Developm
California Department of Transportation
AT&T Mobility
Avolve Software Corp
Bound Tree Medical
Comcast (Business)
Comcast (Business)

CONCERN
Coast Automotive Warehouse Inc
Collin Mitchell
Comcast (Business)
Central Coast YMCA
Check In Systems Inc
Cintas
Efrain Contreras dba Century Metals, LLC
Elmer's Auto Parts
Emergency Response Training Inc dba Defibthis Emer
CSC Of Salinas
Don Chapin Inc
Edges Electrical Group, LLC
Consolidated Electrical Distributors, Inc.

CorVel Corporation Inc dba CorVel Enterprise Compa
Cristina Sifuentes
ESO Solutions Inc
user: Josephine Fernandez Pages: 1 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
463829 01/10/2023 Open $817.27
463830 01/10/2023 Open $508.33
463831 01/10/2023 Open $1,035.03
463832 01/10/2023 Open $1,057.47
463833 01/10/2023 Open $500.00
463834 01/10/2023 Open $8.25
463835 01/10/2023 Open $8,231.25
463836 01/10/2023 Open $2,633.12
463837 01/10/2023 Open $458.85
463838 01/10/2023 Open $19,153.06
463839 01/10/2023 Open $34,743.83
463840 01/10/2023 Open $40.20
463841 01/10/2023 Open $1,836.61
463842 01/10/2023 Open $9,822.25
463843 01/10/2023 Open $689.00
463844 01/10/2023 Open $2,775.00
463845 01/10/2023 Open $170.00
463846 01/10/2023 Open $10,500.00
463847 01/10/2023 Open $1,871.37
463848 01/10/2023 Open $200.00
463849 01/10/2023 Open $321.49
463850 01/10/2023 Open $19,000.00
463851 01/10/2023 Open $6,030.12
463852 01/10/2023 Open $367.00
463853 01/10/2023 Open $8,552.17
463854 01/10/2023 Open $267.88
463855 01/10/2023 Open $97.65
463856 01/10/2023 Open $675.00
463857 01/10/2023 Open $78,599.20
463858 01/10/2023 Open $30,886.53
463859 01/10/2023 Open $4,625.00
463860 01/10/2023 Open $599.00
463861 01/10/2023 Open $2,625.00
463862 01/10/2023 Open $509.72
463863 01/10/2023 Open $1,523.39
463864 01/10/2023 Open $186.00
463865 01/10/2023 Open $100.00
463866 01/10/2023 Open $759.14
463867 01/10/2023 Open $302.29
463868 01/10/2023 Open $4,152.94
463869 01/10/2023 Open $16,621.23
463870 01/10/2023 Open $797.40
G2Solutions, Inc
Granicus LLC
Granite Construction Company
First Alarm
First American Title Company
Francisco DeLeon
Fastenal Company
Ferguson US Hodings, Inc dba Ferguson Enterprises
J.J. Keller and Associates Inc
Jan Roehl Dba Jan Roehl Consulting
Joaquin Vasquez Dba Rose Backflow Services
Home Depot Credit Services
Ingram Book Company
Instrument Technology Corporation
Granite Rock Co
Griffin Structures, Inc
Griffin Structures, Inc
Law Offices of Roy C Gunter III
Lexipol LLC
Life Assist
Julio Gil dba Central Coast Sign & Design
K&D Landscaping, Inc
Kimley Horn And Assoc Inc
John E Arriaga Dba J.E.A. and Associates
Johnson Associates
Juan A Avila dba Juan Avila Photography
Municipal Resource Group LLC
My Chevrolet
My Jeep
Monterey County Convention And Visitors Bureau
Monterey County Health Department
Monterey Transfer and Storage Inc
Midwest Tape, LLC dba Midwest Tape

MIS CORP
MNS Engineers, Inc
Pacific Gas and Electric Company
Owen Equipment Sales
Pacific Gas and Electric Company
Pacific Gas and Electric Company
Natividad Medical Center
New Image Landscape Company
Office Depot Business Service Division
user: Josephine Fernandez Pages: 2 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
463871 01/10/2023 Open $797.66
463872 01/10/2023 Open $427.35
463873 01/10/2023 Open $80.00
463874 01/10/2023 Open $667.50
463875 01/10/2023 Open $210.00
463876 01/10/2023 Open $234.75
463877 01/10/2023 Open $316.55
463878 01/10/2023 Open $37,529.26
463879 01/10/2023 Open $150.99
463880 01/10/2023 Open $1,414.99
463881 01/10/2023 Open $998.25
463882 01/10/2023 Open $9,000.00
463883 01/10/2023 Open $6,006.25
463884 01/10/2023 Open $70.00
463885 01/10/2023 Open $2,476.07
463886 01/10/2023 Open $36,737.25
463887 01/10/2023 Open $47,760.60
463888 01/10/2023 Open $20,000.00
463889 01/10/2023 Open $1,063.42
463890 01/10/2023 Open $797.28
463891 01/10/2023 Open $565.00
463892 01/10/2023 Open $5,000.00
463893 01/10/2023 Open $2,680.58
463894 01/10/2023 Open $610.00
463895 01/10/2023 Open $640.00
463896 01/10/2023 Open $670.00
463897 01/10/2023 Open $7,240.31
463898 01/10/2023 Open $255.00
463899 01/10/2023 Open $800.00
463900 01/10/2023 Open $382.38
463901 01/10/2023 Open $4,217.34
463902 01/10/2023 Open $23,551.92
463903 01/10/2023 Open $33.68
463904 01/10/2023 Open $375.10
463905 01/10/2023 Open $1,465.97
463906 01/10/2023 Open $163.84
463907 01/10/2023 Open $1,001.19
463908 01/10/2023 Open $1,211.65
463909 01/10/2023 Open $38.01
463910 01/10/2023 Open $4,786.10
463911 01/10/2023 Open $275.63
463912 01/10/2023 Open $1,097.21
Pacific Gas and Electric Company
PARS Retirement Services
RDO Equipment Company
Regional Government Services
RELX Inc. dba LexisNexis, Division of RELX Inc.

Pure Water
Quality Water Enterprises
Rancho Cielo Youth Center
Pinnacle Medical Group Inc dba Pinnacle Healthcare
PLM Lender Services Inc
Preferred Alliance Inc.

Salinas Valley Tourism And Visitors Bureau
San Jose Motosport, Inc dba San Jose BMW
San Lorenzo Lumber
Safety-Kleen Systems, Inc.

Salinas Toyota
Salinas Valley Ford Inc
Roy Hastings dba R.L. Hastings & Associates LLC
Russell Branson dba Russ Branson Consulting
Ruth Maria Milla-Leon dba Andersen's Lock & Safe
Stommel Inc dba Lehr
Target Pest Control
Tehama Golf Club LLC
State Bar Of California
State Bar Of California
State Bar Of California
Shaw HR Consulting Inc
Simplot AB Retail Sub Inc
SpeakWrite LLC
Valley Saw Shop
Verizon Wireless
Verizon Wireless
United Parcel Service
United Site Services
Valley Fabrication Inc
Thomson-West/Barclays
TK Elevator Corporation
U.S. Bank National Association ND
Voyager
Verizon Wireless
Verizon Wireless
Vikki Balestra
user: Josephine Fernandez Pages: 3 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
463913 01/10/2023 Open $1,910.99
463914 01/10/2023 Open $51,070.13
463915 01/10/2023 Open $12,946.88
463916 01/10/2023 Open $2,510.00
463917 01/10/2023 Open $193.53
463918 01/10/2023 Open $380.19
463919 01/10/2023 Open $2,450.00
463920 01/10/2023 Open $312.00
463921 01/10/2023 Open $636.28
463922 01/10/2023 Open $237.50
463923 01/10/2023 Open $198.17
463924 01/10/2023 Open $163.50
463925 01/10/2023 Open $359.50
463926 01/10/2023 Open $370.03
463927 01/17/2023 Open $289.86
463928 01/17/2023 Open $175.00
463929 01/17/2023 Open $6,074.26
463930 01/17/2023 Open $330.00
463931 01/17/2023 Open $347.07
463932 01/17/2023 Open $275.00
463933 01/17/2023 Open $977.29
463934 01/17/2023 Open $2,423.50
463935 01/17/2023 Open $392.96
463936 01/17/2023 Open $558.82
463937 01/17/2023 Open $4,418.74
463938 01/17/2023 Open $168.49
463939 01/17/2023 Open $11,998.11
463940 01/17/2023 Open $1,572.31
463941 01/17/2023 Open $436.99
463942 01/17/2023 Open $1,014.79
463943 01/17/2023 Open $13,259.20
463944 01/17/2023 Open $85,749.00
463945 01/17/2023 Open $1,000.00
463946 01/17/2023 Open $13,333.77
463947 01/17/2023 Open $5,223.75
463948 01/17/2023 Open $13,425.00
463949 01/17/2023 Open $1,062.07
463950 01/17/2023 Open $20,513.12
463951 01/17/2023 Open $425.00
463952 01/17/2023 Open $395.46
463953 01/17/2023 Open $13,984.26
463954 01/17/2023 Open $81,254.30
Wallace Group A California Corporation
Wallace Group A California Corporation
Walmart c/o Capitol One
W W Grainger Inc
Wallace Group A California Corporation
Jared Reyes
Jose Andrew Sandoval
Sylvia Enriquez
Bryan Cupak
David Puckett
Francisco DeLeon
WCDJR LLC dba Watsonville Chrysler Dodge Jeep Ram
ATN Associates LLC dba Center for Executive
Blake Ziebell
American Supply Company
AP Triton, LLC
Applied Maintenance Supplies & Solutions LLC
All Safe Security Alarm
Amazon.Com
American Assoc Of Airport Executive
Ace Hardware
Adriana Robles
Alco Water
B F T LP dba Pet Waste Eliminator
Bay Area Community Services Inc.

Benitez Security Services, Inc
AT and T
AT&T Mobility
Automotive and Industrial
Arrowhead Forensics
Assured Aggregates Company Inc
AT and T
Candido Martinez Dba Welders Fabrication and Desig
Canon Solutions America Inc
CDW-G
Cadence Team, Inc
California Water Service
California Water Service
Brandon Wright dba Centricity GIS, LLC
BrightView Landscape Services, Inc
C3 Engineering, Inc.

Central Coast Center For Independent
user: Josephine Fernandez Pages: 4 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
463955 01/17/2023 Open $2,339.55
463956 01/17/2023 Open $1,023.75
463957 01/17/2023 Open $38,914.19
463958 01/17/2023 Open $2,311.92
463959 01/17/2023 Open $7,146.00
463960 01/17/2023 Open $2,896.20
463961 01/17/2023 Open $167.58
463962 01/17/2023 Open $33,320.31
463963 01/17/2023 Open $406.22
463964 01/17/2023 Open $18,054.25
463965 01/17/2023 Open $172.36
463966 01/17/2023 Open $326.00
463967 01/17/2023 Open $86.99
463968 01/17/2023 Open $261.20
463969 01/17/2023 Open $2,500.00
463970 01/17/2023 Open $3,959.27
463971 01/17/2023 Open $441.37
463972 01/17/2023 Open $36.56
463973 01/17/2023 Open $2,632.50
463974 01/17/2023 Open $1,261.17
463975 01/17/2023 Open $348.35
463976 01/17/2023 Open $8,775.00
463977 01/17/2023 Open $2,358.11
463978 01/17/2023 Open $6,175.00
463979 01/17/2023 Open $113.83
463980 01/17/2023 Open $360.00
463981 01/17/2023 Open $791.90
463982 01/17/2023 Open $26,191.89
463983 01/17/2023 Open $3,554.18
463984 01/17/2023 Open $495.00
463985 01/17/2023 Open $7.73
463986 01/17/2023 Open $401.50
463987 01/17/2023 Open $315.33
463988 01/17/2023 Open $676.35
463989 01/17/2023 Open $144.00
463990 01/17/2023 Open $190.00
463991 01/17/2023 Open $260.00
463992 01/17/2023 Open $1,429.54
463993 01/17/2023 Open $174.58
463994 01/17/2023 Open $148.45
463995 01/17/2023 Open $77.70
463996 01/17/2023 Open $242.54
Comcast
Comcast (Business)
Community Homeless Solutions
CMP-1 Llc dba The Pointe at Westlake
CMS Communication Inc
Coastal Monterey Properties, LLC dba Garden Court
Cintas
ClientFirst Consulting Group, LLC dba ClientFirst
Don Chapin Inc
East Bay Tire Company
Edges Electrical Group, LLC
Danielle Clayton
Direct TV LLC
Division Of The State Architect
Consolidated Electrical Distributors, Inc.

CorVel Corporation Inc dba CorVel Enterprise Compa
CSC Of Salinas
Francis Enos dba Francis Enos Fire Pump Repair
Fresno Oxygen & Welding Suppliers, Inc.

Glasswork by Design
Ferguson US Hodings, Inc dba Ferguson Enterprises
Fifth Asset, Inc dba Debtbook
First Alarm Security & Patrol Inc dba An Allied Un
Elmer's Auto Parts
Environmental Systems, Inc of Northern California
Fastenal Company
HD Supply White Cap Construction Supply
Home Depot Credit Services
Interactive Data, LLC dba IDI
Grant Writing USA
Green Valley Industrial Supply
Harris and Associates
Golden State Emergency Vehicle Service Inc
Granite Construction Company
Granite Rock Co
L.N. Curtis & Sons
Johnson Associates
Jose Luis Corral dba Salinas Pizza
Kelly-Moore Paint Company
International Assoc of Chiefs of Police
International Association for Property and Evidenc
Interstate Battery System Inc
user: Josephine Fernandez Pages: 5 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
463997 01/17/2023 Open $56,883.26
463998 01/17/2023 Open $440.05
463999 01/17/2023 Open $668.21
464000 01/17/2023 Open $427.67
464001 01/17/2023 Open $11,192.00
464002 01/17/2023 Open $86.09
464003 01/17/2023 Open $375.00
464004 01/17/2023 Open $59,168.74
464005 01/17/2023 Open $31,250.00
464006 01/17/2023 Open $26.00
464007 01/17/2023 Open $6,973.05
464008 01/17/2023 Open $8,728.35
464009 01/17/2023 Open $220.92
464010 01/17/2023 Open $900.00
464011 01/17/2023 Open $3,350.42
464012 01/17/2023 Open $8,845.00
464013 01/17/2023 Open $147.70
464014 01/17/2023 Open $2,500.00
464015 01/17/2023 Open $79.52
464016 01/17/2023 Open $1,863.16
464017 01/17/2023 Open $8,200.00
464018 01/17/2023 Open $4,402.90
464019 01/17/2023 Open $415.51
464020 01/17/2023 Open $632.03
464021 01/17/2023 Open $61,565.00
464022 01/17/2023 Open $210.00
464023 01/17/2023 Open $959.09
464024 01/17/2023 Open $7,500.00
464025 01/17/2023 Open $42.40
464026 01/17/2023 Open $47.00
464027 01/17/2023 Open $3,442.50
464028 01/17/2023 Open $2,292.94
464029 01/17/2023 Open $2,859.41
464030 01/17/2023 Open $24,847.00
464031 01/17/2023 Open $205.63
464032 01/17/2023 Open $1,000.00
464033 01/17/2023 Open $278.97
464034 01/17/2023 Open $4,821.34
464035 01/17/2023 Open $285.00
464036 01/17/2023 Open $8.78
464037 01/17/2023 Open $47,737.30
464038 01/17/2023 Open $130.75
LAZ KARP Associates, LLC
LexisNexis Risk Data Management Inc Accurint Acct
Monterey County Office of Education
Monterey County Recorders
Monterey County Tax Collector
Midwest Tape, LLC dba Midwest Tape

MIS CORP
Monterey County Convention And Visitors Bureau
Life Assist
Mackay Motor Parts, Inc dba Napa Auto Parts
McLaughlin Painting
NetFile Inc
O'Reilly Auto Parts
Office Depot Business Service Division
Motion Picture Licensing Corporation
MV Cheng & Associates Inc.

My Jeep
Monterey One Water
Monterey One Water
Monterra Ranch Of Monterey Home Owner's Associatio
Petsmart
Public Sector Personnel Consultants
Pure Water
Pacific Truck Parts Inc
Pedro C Estrada Dba Estrada Janitorial Service
Peninsula Messenger, LLC
OIN Investments Inc dba Real Property Management
Pacific Gas and Electric Company
Pacific Gas and Electric Company
Rhonda Combs
Ruth Maria Milla-Leon dba Andersen's Lock & Safe
S & L Investments dba Salinas Valley ProSquad
Republic Services of Salinas
Response Training Group
Rexel USA, Inc dba Platt Electric Supply
Quality Water Enterprises
R3 Consulting Group, Inc.

Refrigeration Supplies Distributor
San Lorenzo Lumber
Safety-Kleen Systems, Inc.

Salinas Valley Ford Inc
Salinas Valley Ford Inc
user: Josephine Fernandez Pages: 6 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
464039 01/17/2023 Open $180.00
464040 01/17/2023 Open $12.08
464041 01/17/2023 Open $760.00
464042 01/17/2023 Open $6,391.15
464043 01/17/2023 Open $2,674.15
464044 01/17/2023 Open $573.09
464045 01/17/2023 Open $25,714.51
464046 01/17/2023 Open $25.00
464047 01/17/2023 Open $100.00
464048 01/17/2023 Open $66.15
464049 01/17/2023 Open $2,340.14
464050 01/17/2023 Open $115.65
464051 01/17/2023 Open $2,520.00
464052 01/17/2023 Open $830.30
464053 01/17/2023 Open $51.64
464054 01/17/2023 Open $3,533.16
464055 01/17/2023 Open $25,401.24
464056 01/17/2023 Open $622.22
464057 01/17/2023 Open $48.90
464058 01/17/2023 Open $6,206.27
464059 01/17/2023 Open $828.30
464060 01/17/2023 Open $47,869.84
464061 01/17/2023 Open $3,328.66
464062 01/17/2023 Open $302.69
464063 01/17/2023 Open $1,324.91
464064 01/17/2023 Open $202.50
464065 01/17/2023 Open $4,916.40
464066 01/17/2023 Open $3,209.01
464067 01/17/2023 Open $292.35
464068 01/17/2023 Open $493.20
464069 01/17/2023 Open $40.00
464070 01/17/2023 Open $1,563.00
464071 01/17/2023 Open $225.75
464072 01/17/2023 Open $57.20
464073 01/17/2023 Open $2,023.35
464074 01/17/2023 Open $40.00
464075 01/17/2023 Open $40.00
464076 01/17/2023 Open $47.00
464077 01/17/2023 Open $40.00
464078 01/17/2023 Open $47.00
464079 01/17/2023 Open $9,450.00
464080 01/17/2023 Open $161.75
Shaw HR Consulting Inc
Shepard AV LLC dba McCune Audio Visual Lighting
State Water Resource Control Board
Sentry Alarm System
SettlementOne Screening Corporation dba PeopleFact
The Prophet Corp. dba Gopher Sport
Total Imaging Solutions, LLC
Tri County Concrete and Supply, Inc
Target Pest Control
The Bakery Station LLC
The Beistle Company dba Fire Smart Promotions
Stommel Inc dba Lehr
Sturdy Oil Company
Sunstar Media
Verizon Wireless
Verizon Wireless
Verizon Wireless
Valley Fabrication Inc
Valley Saw Shop
Verizon Wireless
Tri County Fire Protection
U.S. Bank National Association dba U.S. Bank Equip
U.S. Bank National Association ND
Worldpac
Antuan Goldman
Bogard Construction
Wayne Lagger dba LPS Tactical & Personal Security
WCAF, LLC dba Watsonville Ford
WCDJR LLC dba Watsonville Chrysler Dodge Jeep Ram
Verizon Wireless
W W Grainger Inc
Wald, Ruhnke & Dost Architects, LLP
Veronica Carrillo
Yabel Bucio
Advanced Computer Tech Solutions, Inc dba Alliance
Jaina Garcia
Jose Cortez
Manuel Gomez
Carlos Arcega c/o Solcius LLC
Catie Case c/ Lovotti Inc
Greg Goldman
Angel Gonzalez
user: Josephine Fernandez Pages: 7 of 8 Thursday, January 19, 2023 Number Date Status
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 1/5/2023 - To Payment Date: 1/18/2023 Payee Name
464081 01/17/2023 Open $385.50
464082 01/17/2023 Open $632.25
464083 01/17/2023 Open $385.50
464084 01/17/2023 Open $385.50
464085 01/17/2023 Open $111.00
464086 01/17/2023 Open $385.50
464087 01/17/2023 Open $385.50
464088 01/17/2023 Open $161.75
464089 01/17/2023 Open $181.50
464090 01/17/2023 Open $204.00
464091 01/17/2023 Open $385.50
464092 01/17/2023 Open $163.50
464093 01/17/2023 Open $385.50
464094 01/17/2023 Open $161.75
464095 01/17/2023 Open $294.00
464096 01/17/2023 Open $385.50
464097 01/17/2023 Open $17.00
464098 01/17/2023 Open $385.50
464099 01/17/2023 Open $163.50
464100 01/17/2023 Open $271.75
464101 01/17/2023 Open $385.50
464102 01/17/2023 Open $163.50
464103 01/17/2023 Open $799.00
464104 01/17/2023 Open $5,675.00
$1,993,644.68
Cameron Lane
Cameron Mitchell
David Crabill Jr.

Austin Scaggs
Brandon Kuschill
Byron Gansen
Anthony Avila
Anthony Rocha
Johnathan Flores
Jonathan Juarez
Michael Rivera
Gabriela Contreras
Isidoro Medrano
John McNeil
Ermelinda Reyes
Estefania Vargas
Evan Adams

SBRPSTC
Type Check Totals:

General Account - General Account Totals
Steven Villaneda
Zachary Dunagan
D-Prep, Inc.

Robert Balaoro
Ruben Sanchez
Sophia Rome
user: Josephine Fernandez Pages: 8 of 8 Thursday, January 19, 2023 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-040, Version: 1
Amendment to Professional Services Agreement with CSG Consultants Approve a Resolution authorizing the City Manager to enter into an amendment to a professional services agreement entered on June 21, 2022, between the City of Salinas and CSG Consultants to include project/construction management services for the repairs/renovations of fire stations 1-6.

City of Salinas Printed on 1/19/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 24, 2023
DEPARTMENT: FIRE DEPARTMENT
FROM: SAM KLEMEK, FIRE CHIEF
BY: ESTEFANIA VARGAS, MANAGEMENT ANALYST
TITLE: AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SALINAS AND CSG CONSULTANTS

RECOMMENDED MOTION:

A motion to approve a Resolution:

1. Authorizing an amendment to the professional services agreement entered on June 21 st, 2022, between the City of Salinas and CSG Consultants to include project/construction management services for the repairs/renovations of fire stations 1-6;

2. Amending the original amount of compensation on the professional services agreement to incorporate construction/project management fees, not exceeding 10% o f total project/construction costs plus $17,500 to complete Phase 1 of the project and allow a 10% contingency on total project/construction management services;

3. Extending the agreement expiration until the exhaustion of Fire Department ARPA funding or until the end of the ARPA funding spending period, whichever comes first; an

4. Authorizing the City Manager, upon approval of the City Attorney, to execute agreements for the completion of projects under the scope of the agreement, utilizing Fire Department ARPA allocations available in account 3911 and allowing for a 10% contingency.

EXECUTIVE SUMMARY:

On September 14, 2021 , the City Council approved a resolution accepting the City of Salinas ARPA funds allocation and designating funds for public facilities, including toward the renovation of Fire Stations. On June 21, 2022, the City Council passed a resolution authorizing the renewal of the agreement for professional services with CSG Consultants Inc. Salinas Fire Department is requesting an amendment to the current agreement, to include the additional scope of work for the project/construction management of renovation work for Fire Stations 1 -6. Due to the expertise needed, staffing constraints, and competing priorities, the Fire Department needs construction/project management services to successfully expend ARPA funding by 2026.

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BACKGROUND:

In 2017, the Salinas Fire Department contracted Wald Ruhnke & Dost Architects to conduct a Fire Station Improvement Feasibility Study and assist the City in meeting its immediate and future funding priorities. The study foun d that various levels of renovation and new construction are needed to tend to urgent deferred maintenance items and bring all fire stations into a state of good repair. In 2020, the Fire Department conducted a Standards of Cover Assessment that incorporated a capital asset assessment on fixed facilities. The study found all fire stations to be in fair to poor condition. In 2021, the City Council allocated $2.9 million in ARPA funding toward renovating and repairing all fire stations. Due to staffing constraints and the level of expertise needed to manage construction projects, as well as the workload capacity of Public Works Engineering and Fire Administration, the outsourcing of the management of the projects is needed. Outsourcing the management of the projects will allow Salinas Fire to complete much-needed deferred maintenance repairs and improvements using ARPA funding. ARPA funds must be obligated by the City Council by December 31, 2024, and expended by December 31, 2026. After careful consideration of qualified vendors, Fire Administration requested and received a quote from CSG Consultants, an established City of Salinas vendor. CSG Consultants has been successfully providing building official, technical permitting , and inspection services for the City of Salinas Permit Services Center over the years.

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 activities that 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. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability

STRATEGIC PLAN INITIATIVE:

These actions support the Council’s strategic goals of Infrastructure and Environmental Sustainability and Public Safety.

DEPARTMENTAL COORDINATION:

The Salinas Fire Department worked with the Legal Department to explore extending the agreement of a current vendor. Salinas Fire will work closely with City Administration, Public Works Engineering , and the Finance Department through the execution of the agreement, expending of funds, and renovation projects.

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FISCAL AND SUSTAINABILITY IMPACT:

Funds are appropriated and available in the Fire Department’s 3911- American Rescue Plan Act (ARPA) account.

ATTACHMENTS:

Resolution
Exhibit B: Scope of Services

RESOLUTION NO.____________(N.C.S.)

A RESOLUTION AUTHORIZING AN AMENDMENT TO THE PROFESSIONAL

SERVICES AGREEMENT WITH CSG CONSULTANTS AND AUTHORIZING THE

CITY MANAGER TO EXECUTE AGREEMENTS FOR THE RENOVATION OF FIRE STATIONS 1-6

WHEREAS, On September 14, 2021, the City Council passed a resolution accepting the City of Salinas ARPA funds allocation and designating funds for the renovation of public facilities, including $2.9 million for fire stations; and,
WHEREAS, The Salinas Fire Department has conducted multiple studies to assess deferred maintenance needs and renovation feasibility of all fire stations and found all stations to be in fair-poor condition; and,
WHEREAS, On June 21, 2022, the City Council passed a resolution authorizing the renewal of the agreement for professional services with CSG consultants; and, WHEREAS, The Salinas Fire Department is in need of project/construction management services and found that CSG Consultants, a current City of Salinas vendor, is an experienced public facility project/construction management provider; and
WHEREAS, ARPA funds must be obligated by the City Council by December 31, 2024, and expended by December 31, 2026; and,
WHEREAS, The Salinas Fire Department is requesting an extension to the professional services agreement between the City of Salinas and CSG consultants, to include project/construction management services for fire stations 1-6, in an amount not to exceed 10% of the total project/construction costs plus $17,500 to complete Phase 1 of the project, and allowing a 10% contingency; and,
WHEREAS, The City Council can delegate authority to the City Manager to execute agreements and expend funds for the renovation of fire stations 1-6 using ARPA funding.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes an amendment to the professional services agreement between the City of Salinas and CSG Consultants to include project/management services until the expiration of the ARPA funds spending period.; and

BE IT FURTHER RESOLVED that the City Council authorizes the use of funds from ARPA account 3911 in an amount not to exceed 10% of total project/construction costs plus $17,500 to complete Phase 1 of the project and allow for a 10% contingency for project/construction management services; and

BE IT FURTHER RESOLVED that the City Council grants the City Manager authority, upon approval of the City Attorney, to execute agreements for the renovation of fire stations 1-6 using account 3911 ARPA funds toward project costs and allowing for a 10% contingency.

PASSED AND APPROVED the 24th day of January 2023 by the following vote:

AYES:

NOES:

ABSENT: APPROVED:

______________________________
Kimbley Craig, Mayor

ATTEST:

______________________________
Patricia M. Barajas, City Clerk

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

1 November 16, 2022
Samuel Klemek, EMT-P
Fire Chief
City of Salinas Fire Department
65 W. Alisal Street
Salinas, CA 93901
Re: Project Management and Construction Management for Renovation of the Salinas Fire Stations 1-6 Facilities

CSG Consultants, Inc. (CSG) is pleased to present this proposal to the City of Salinas Fire Department (SFD) to provide Project Management and Constructio n Management (PM & CM) services for the above referenced project (project).

For this project,
Peykan Abbassi, PE, will serve as the Point of Contact and performs PM & CM services for the City of Salinas (City). Mr. Abbassi brings over 30 years of engineering management experience for large projects in municipal government. His contact information is as follows:
(714) 568-1010 phone | (818) 800-6326 cell | [email protected]

Summary
The purpose of this proposal is to provide project and construction management services for the completion of renovation work at the Fire Station 1 -6 facilities. This will include the selection of a n architectural firm to provide a building assessment and to complete design packages for bids.

This proposal is based on information from the following:
• A 2019 Community Risk Assessment Final Report that included a general description of some of the items to be addressed during renovation work at each facility. • A September 27, 2022, email from SFD that identified repair projects at each facility with the priority ranking and status for each item of work. Some of the repair work has been listed as being in progress. • A job-walk between SFD and CSG personnel on October 13, 2022 to do a preliminary assessment of the scope of work for six (6) facilities.

During the job walk, renovation work at Fire Station No. 1 was identified as the top priority. As such, this proposal has been structured to be completed in three (3) phases to meet this priority requirement.

Scope of Work
Project Management

1. Provide project management oversight of all aspects of the fire stations renovation project from design consultant selection through construction and acceptance of the completed work.

2. Collaborate extensively with City representatives, contracted project vendors, and key internal and external stakeholders to ensure long- and short-term plans are met.

3. Serve as primary point of contact for the project.

4. Prepare and present project status reports to City representatives and other key stakeholder groups.

5. Assist with the preparation and execution of projec t-related documents including contracts, amendments, informational notices, press releases, presentations, etc.

6. Work with the City representatives to develop proje ct plans, set targets for milestones, allocate resources and adhere to deadlines.

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

2 7. Work with selected City representatives to develop administrative and operational policies and procedures for the ongoing operation of the facilities.

Construction Management

1. Oversee construction site, general contractor, and workers to ensure a high level of quality and safety.

2. Ensure that all work is performed in accordance with approved manuals and procedures.

3. Ensure that the renovation of the fire stations is constructed and documented in accordance with the contract documents and good engineering practices.

4. Provide technical support to the City representatives regarding the project.

5. Develop and maintain project cost/change controls, and project budget and accounting records.

6. Evaluate proposed change orders, manage change orde r negotiations, and make recommendations to City representatives.

7. Coordinate and monitor schedule updates, invoices, and submittals.

8. Assist in managing and reviewing the progress of contractors’ construction schedules.

9. Review weekly and monthly reports on the status and progress of the contracts, including project costs and potential changes.

10. Report the status of the project to City on a weekly basis and as requested.

11. Attend project meetings as requested.

12. Host weekly construction meetings with representati ves from the City, general contractor, subcontractors, and third parties.

13. Manage project closeout including jurisdictional re quirements, systems training, client deliverables, and warranty walks.

Work Breakdown and Proposed Fee
CSG Consultants recommend that the renovation work for the fire stations be performed in two (2) phases to maintain continuity of operations.

1. Phase I:
• Prepare RFP and assist the City with selection of the Architect. • Assist the City with management of the selected Arc hitect who will complete a building assessment for updated as-built drawings, then deve lop the schematic and design development documents and cost estimate for Fire Station No. 1-6.

2. Phase II (Fire Station No. 1):
• Assist the City with management of the selected Architect who will develop a complete set of construction documents for bid.
• Assist the City with bid and award and construction of the project. The construction Management and Inspection also includes the task re quired labor compliance monitoring activities as described below:

Labor Compliance

1. Monitors and audits contractors’ certified payro ll, timecards, payroll ledger and various supporting documents to verify the accuracy of contractors’ compliance with wage, labor and apprenticeship laws and fair employment practices

2. Conducts construction jobsite interviews

3. Conducts audits and field investigations pertain ing to contracted labor compliance provisions ensuring compliance with Department of Industrial Relations (DIR) Prevailing Wage Determinations

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

3 3. Phase III (Fire Stations No. 2-6):
• Assist the City with management of the selected Architect who will develop a complete set of construction documents for bid.
• Assist the City with bid and award and construction of the project. The construction Management and Inspection also includes the task re quired labor compliance monitoring activities as described below:

Labor Compliance

2. Conducts construction jobsite interviews

3. Conducts audits and field investigations pertain ing to contracted labor compliance provisions ensuring compliance with Department of Industrial Relations (DIR) Prevailing Wage Determinations
Design work on Phase III for Sire Stations No. 2-6 can begin immediately after completion of the construction documents for work on fire station No. 1 in Phase II.

The CSG proposed fee to perform the project managem ent and construction management efforts is as follows:

1. For services to complete the work of Phase I, the p roposed fee is $17,500. This fee includes two (2) in-person meetings with the City.

2. For services to complete the work of Phases II and III, the proposed fee will be 10% of the estimated construction costs established above.

Additional services that may be needed will not be performed without prior authorization from the City.

We look forward to working with the City of Salinas Fire Department. If you have any questions or require additional information, please contact Cyril Charles, Sr. Project Manager ( [email protected] ) or myself in the contact information provided below.

Sincerely,

Peykan Abbassi, PE, Vice President
(818) 800-6326 cell

[email protected]

Encl.: Preliminary Job Walk Assessment (10/13/22)

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

4 Additional services requested by the City of will be billed at the following rates:

CSG Consultants Schedule of Fees
October 27, 2022

PROFESSIONAL STAFF HOURLY RATE
Principal Engineer $185.00
Sr. Project Manager $165.00
Asst. Project Manager $ 95.00
Meetings:

In person meetings $1500.00 /Meeting

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

5 PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT
FOR
RENOVATION OF THE SALINAS FIRE STATIONS 1-6 FACILITIES

PRELIMINARY JOB WALK ASSESSSMENT
OCTOBER 13, 2022

For this Fire Station No. 1, the following were noted during the job walk:

1. Per SFD, work on this facility is priority No. 1 work. SFD understands that the most cost effective and efficient method to complete this work would requir e relocation of operations and this can be accommodated.

2. An assessment of the plumbing system in the bathroom areas that have drainage problems related to frequent blockage is required. (Could be a design issue.)

3. There are electrical issues that may be related to lack of capacity.

4. A complete remodel of the kitchen is required. There are electrical power issues and non-working appliances.

5. New flooring is required throughout the day room (w here floor is being replaced, except for the sleeping areas, VCT should be used). Carpets are not an acceptable floor finish.

6. A full height retractable divider is to be installed in the day room.

7. A new cooling system should be installed. (There is no air-conditioning in the building, only heating from gas furnaces.)

8. Complete interior painting of the building is required.

9. An upgrade to the meeting room layout is required.

FIRE STATION NO. 1

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

6 10. Since the renovation work may require new lighting fixtures, and HVAC diffusers and grilles, the installation of new ceiling tiles throughout the affected areas should be included since there was damage to the many of the tiles from roof leaks.

11. Provide new concrete paving in the parking lot.

12. Replacement of the rear (west) apparatus bay doors to match the front doors is required.

13. Complete replacement of the vent extractor system for the trucks since the existing system vendor is out of business and parts are no longer available.

14. An evaluation by the design consultant of the options to reduce the response time and path of travel for employees to get to the trucks.

15. Privacy screens to be added to the dormitory.

16. Add a card reader system for the building entry.

During the job walk it was observed that:

1. A new roof had been installed

2. A new metal fascia had been installed

3. Fencing, gate, and generator replacement work has been scheduled by the City. An option discussed was to place this work on hold to be completed with the other work listed above for a complete project.

4. The building is non-sprinklered. Since this is an essential facility, should sprinklers be added?

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

7 For this Fire Station No. 2, the following were noted during the job walk:

1. This building is sprinklered.

2. A complete remodel of the kitchen is required (priority no. 2).

3. The complete painting of interior and exterior is required.

4. Demolition and replacement of the existing onsite storage shed with a new storage shed to be included.

5. Signage “Keep Clear” upgrade to front of station for truck emergency egress is required.

6. A solution to the workout room open to the apparatus bay and exposed to the exhaust emissions is required.

7. A new cooling system should be installed. (There is no air-conditioning in the building, only heating.)

8. New paving in the parking lot is required.

9. Complete replacement of the vent extractor system for the trucks is required since the existing system vendor is out of business and parts are no longer available.

10. SFD noted that this is a backup only apparatus bay, and when the truck is fully backed up the clearance between the rear of the truck and the adjacent wall/door does not allow for a free and easy pedestrian pathway. Is there a solution?

FIRE STATION NO. 2

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

8 For this Fire Station No. 3, the following were noted during the job walk:

1. A complete remodel of the kitchen is required.

2. A new cooling system (maybe a central system) is required since there are non-working window air-conditioning systems at this facility.

3. Complete replacement of the vent extractor system for the trucks is required since the existing system vendor is out of business and parts are no longer available.

4. The dormitory is directly connected to the apparatus bay and exposed to the exhaust emissions.

A solution is required.

5. A solution to the workout room open to the apparatus bay and exposed to the exhaust emissions is required.

6. There are numerous leaks throughout the building so a new roof may be required.

7. There are significant plumbing issues that may require a building drain and sewer replacement.

8. Complete painting of interior and exterior should be included.

9. Demolition of the training tower with a 1-story underground that will backfill should be included.

10. Bathroom remodel to be discussed. Facility does not have a co-ed bathroom and a shower with two small heads. Access to the shower is limited and not code compliant.

11. Provide dividers in the dormitory area.

12. The area for the staff jackets and other clothing is not ventilated.

13. Floor covering replacement is required.

14. The building is non-sprinklered.

FIRE STATION NO. 3

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

9 For Fire Station No. 4, the following were noted during the job walk:

1. Complete repair/replacement of vehicle ramp at front of building is required.

2. New paving in the parking lot is required.

3. Exterior painting is required.

4. A complete remodel of the kitchen is required (priority no. 2 work).

5. Windows and bay doors in this building are single pane and require upgrade to more energy efficient double pane windows.

6. There are non-working window air-conditioning systems at this facility, so a new central system is proposed.

7. Complete replacement of the vent extractor system for the trucks is required since the existing system vendor is out of business and parts are no longer available

FIRE STATION NO. 4

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

10 For Fire Station No. 5, the following were noted during the job walk:

1. There is no air-conditioning at this facility, so a new central air-conditioning system is requested.

2. There was localized water damage at some windows and wall areas that require investigation.

3. Complete replacement of the vent extractor system for the trucks is required since the existing system vendor is out of business and parts are no longer available.

4. A solution to the workout room open to the apparatus bay and exposed to the exhaust emissions.

FIRE STATION NO. 5

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

11 From field visit on 10/12/22, the following were noted during the job walk:

1. There is no air-conditioning at this facility, so a new central system is proposed

2. A solution to the workout room open to the apparatus bay and exposed to the exhaust emissions.

3. Complete interior and exterior painting should be included.

4. Complete replacement of the vent extractor system for the trucks since the existing system vendor is out of business and parts are no longer available

5. Replacement of the apparatus room doors is required.

FIRE STATION NO. 6

CSG PROPOSAL TO SALINAS FIRE DEPARTMENT

PROJECT MANAGEMENT AND CONSTRUCTION MANAGEMENT FOR
RENOVATION OF SALINAS FIRE STATIONS 1-6 FACILITIES

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-045, Version: 1
Fire Station Security Camera Systems
Approve a Resolution amending an agreement approved by the City Council (Resolution No. 22510 (N.C.S.)) for the purchase and installation of Verkada security camera systems at all fire stations through MJ Communications to increase the total cost to an amount not exceeding $242,048.98.

City of Salinas Printed on 1/19/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 24, 2023
DEPARTMENT: SALINAS FIRE DEPARTMENT
FROM: SAMUEL KLEMEK, FIRE CHIEF
BY: ESTEFANIA VARGAS, MANAGEMENT ANALYST
TITLE: FIRE STATIONS SECURITY CAMERA SYSTEMS

RECOMMENDED MOTION:

A motion to approve a resolution amending an agreement approved by the City Council (Resolution No. 22510 (N.C.S.)) for the purchase and installation of Verkada s ecurity camera systems at all fire stations through MJ Communications to increase the total cost to an amount not exceeding $242,048.98.

EXECUTIVE SUMMARY:

The Fire Department has identified the need for enhanced surveillance camera systems across all fire stations. The Information Technology division has recommended Verkada Security Camera Systems, purchased, and installed through MJ Communications, to fit the needs of all fire stations and meet network requirements . An amendment to the previous resolution is being requested to accommodate for equipment and labor that will help the Fire Department comply with the legally required retention policy for public facility video.

BACKGROUND:

Ensuring and maintaining the safety of the Fire Department personnel and City assets has been a top priority of the Salinas Fire Department. Over the past several years, the department has experienced equipment theft and/or break-ins to staff vehicles across all fire stations. In addition, due to the location of several stations and the surrounding transient population, personnel continue to experience safety concerns. The Salinas Fire Department needs to install security camera systems at all fire stations in the city to protect City and staff assets, as well as ensure the safety of personnel. The Fire Department worked on an agreement with MJ Communications to purchase and install Verkada security camera systems across all fire stations . Verkada integrates well with the network and infrastructure requirements in the City and w ill provide the department with a proactive crime prevention system. The current quote obtained from MJ communications for the purchase and installation of the systems at all stations is $220,044.53.

Page | 2
CEQA CONSIDERATION:

Not a Project . The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

STRATEGIC PLAN INITIATIVE:

Approving the proposed resolution will support the City Council’s Strategic Plan Goal of Public Safety.

DEPARTMENTAL COORDINATION:

The Fire Department sought recommendations on camera systems from the Information Technology division , to ensure compatibility with network and infrastructure systems. The department will also seek to coordinate with the Information Technology division during the installation. Additionally, the Fire Department will coordinate with the Finance Department during the purchasing process.

FISCAL AND SUSTAINABILITY IMPACT:

$220,044.53 for this procurement and a 10% contingency for a total not to exceed $242,048.98, and related costs are ready and available for use in the Fire Department’s American Rescue Plan Act (ARPA) Fund appropriations.

ATTACHMENTS:

Resolution
MJ Communications Quotes

1 RESOLUTION NO. (N.C.S.)

RESOLUTION AUTHORIZING THE DIRECT PURCHASE OF SECURITY CAMERAS

FOR THE SALINAS FIRE STATIONS

WHEREAS, the City Council previously approved Resolution No. 22510 (N.C.S.) approving the purchase of security cameras for the City’s fire station facilities; and,

WHEREAS, an amendment to the professional services agreement is required to accommodate for equipment and labor that will help the Fire Department comply with the legally required retention policy for public facility video; and,

WHEREAS, the Salinas Fire Department has experienced equipment theft and/or break - ins to staff vehicles across all fire stations; and,

WHEREAS, due to the location of several stations and the surrounding transient population, personnel continue to experience safety concerns; and,

WHEREAS, the Salinas Fire Department has obtained quotes for camera systems across all fire stations, to mitigate and prevent crime and ensure the safety of personnel; and,

WHEREAS, MJ Communication has quoted the department $220,044.53 for the purchase and installation of the Verkada camera systems across all fire stations; and,

WHEREAS, the department is requesting the agreement with MJ Communications to incorporate a 10% contingency; and,

WHEREAS, the City Council can approve this purchase pursuant to Salinas Municipal Code Section 12 -27 ( exception to low-bid-based competition) in contracting for equipment, materials, supplies , and services and pursuant to Salinas Municipal Code 12 -28.080 (local purchasing preference); and

WHEREAS, the total purchase and installation cost cannot exceed $242,048.98.

NOW, THEREFORE, BE IT RESOLVED that pursuant to Salinas Municipal Code sections 12-27 and 12-28.080 the Salinas City Council authorizes the Purchasing Agent to enter into an agreement with MJ Communications to complete the purchase of the security camera systems for a total cost not to exce ed $242,048.98 and to take whatever additional action may be necessary to complete the purchase approved in this resolution.

PASSED AND APPROVED this 24th day of January 2023, by the following vote:

AYES:

NOES:

2 ABSENT:

ABSTAIN:

APPROVED:

______________________________
Kimbley Craig, Mayor
ATTEST:

________________________________
Patricia M. Barajas, City Clerk

Quote
DATE MJ Communications, Inc.

Dec 5, 2022 P. O. Box 10023 Salinas, CA 93912
(831) 214-6960
License; 1063397
[email protected]
Att: Samuel Klemek
Project: Salinas Fire Stations Security Cameras

Scope; Verkada Security Cameras 1 Year Recording

Remove a total of 25 Verkada cameras from the six Salinas Fire Stations and send back 26 to Verkada Manufacure, since one hasn’t been installed at FS5. This 26 cameras were included on the original approved quote.

Return 8) New Verkada Cameras to Verkada Manufacture. This 8) Cameras were approved as part of the change order.

Re-install a total of 34) New Verkada Cameras with 2 TB each of local storage giving 365 days of video storage as requested. Verkada Cloud will be use to pull the video from each camera. Cameras will get re-install at the same locations metioned on the Original Quote and on the Change Order. 6) FS1, 6) FS2, 7)FS3, 5) FS4, 5) FS5 and 7) FS6

Total Cost including Original Quote, Change Order and this new Quote;

Labor $55,974.00, Parts including freight, lift rental $150,634.33 plus Tax $13,436.20 for the sum of $220,044.53 Quote Expiration Date 12-12-22

Approved by; ___________________________ Date; ____________ Print Name

P.O. #______________________________________
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-046, Version: 1
Direct Purchase of 3 Lifepack-15 Cardiac Monitors from Global Medical Response Approve a Resolution approving the direct purchase of LIFEPAK-15 cardiac monitors from Global Medical Response in the total amount of $91,914.57.

City of Salinas Printed on 1/19/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 24, 2023
DEPARTMENT: FIRE DEPARTMENT
FROM: SAMUEL KLEMEK, FIRE CHIEF
BY: ESTEFANIA VARGAS, MANAGEMENT ANALYST
TITLE: DIRECT PURCHASE OF LIFEPAK-15 CARDIAC MONITORS

RECOMMENDED MOTION:

It is recommended that the City Council a pprove a resolution approving the direct purchase of LIFEPAK-15 cardiac monitors from Global Medical Response in the total amount of $91,914.57.

EXECUTIVE SUMMARY:

The Fire Department is in need of replacing three LIFEPAK-15 cardiac monitors , as they have exceeded their serviceable lifespan. The acquisition of this equipment will provide interoperable lifesaving cardiac monitor devices for the next 8 to 10 years. Funds for this purchase are available in the General Fund 4520 Emergency Medical Services account.

BACKGROUND:

Cardiac monitors are mandatory equipment required by Paramedics to perform advanced life support (ALS) interventions in the event of a cardiac arrest. This equipment is also required by the California Emergency Medical Services Authority (CA-EMSA) and the Salinas Fire Department’s Paramedic Agreement with the Monterey County EMS Agency. Currently, the department has (3) LIFEPAK 15 V1 cardiac monitors that were purchased in 2009 and are no longer supported by the manufacturer. The purchase will provide all frontline emergency response apparatus the ability to maintain currently serviceable cardiac monitors and to provide continue d advance emergency medical care. Cardiac monitors are vital to the effective delivery of advanced paramedic patient care and to the efficiency of emergency medical service operations. The Salinas Fire Department received a quote from Global Medical Response for the purchase of 3 LIFEPAK-15 Cardiac Monitors, associated equipment, and required service contracts for a total of $79,925.71. The Fire Department is requesting an additional 15% contingency for a tota l amount not to exceed $91, 914.57.

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).

Page | 2

STRATEGIC PLAN:

This purchase supports the City Council’s strategic goal of Public Safety.

DEPARTMENTAL COORDINATION:

The Fire Department will coordinate with the Finance Department throughout the purchasing process.

FISCAL AND SUSTAINABILITY IMPACT:

Funds are appropriated and available in the General Fund 4520 Emergency Medical Services account for the total amount requested ($91,914.57).

ATTACHMENTS:

Resolution
Global Medical Response Quotation
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION AUTHORIZING THE PURCHASE OF THREE
LIFEPAK 15 CARDIAC MONITORS FROM GLOBAL MEDICAL RESPONSE

WHEREAS, the Fire Department has a need to replace 3 LIFEPAK-15 cardiac monitors that have exceeded their serviceable lifespan; and

WHEREAS, the replacement of these lifesaving devices will meet the requirements of the Paramedic provider agreement with the Monterey County EMS Agency; and

WHEREAS, Global Medical Response can provide the three LIFEPAK-15 cardiac monitors, respective equipment and service contracts for a total cost of $79,925.71; and

WHEREAS, the Fire Department is requesting a 15% contingency, for a total not to exceed amount of $91,914.57; and,

WHEREAS, purchasing the LIFEPAK 15 cardiac monitors is vital to the delivery of advance Paramedic patient care; supports a safe ; livable community , and allows for efficient emergency medical services operations maint aining interoperability for fire department operations; and

WHEREAS, funding for this purchase is available in the General Fund 4520 Emergency Medical Services account; and,

WHEREAS, the City Council has the authority to approve direct purchases of goods and services under Salinas Municipal Code Section 12-27 and Section 12-28.080; and

WHEREAS, the City Council finds that the criteria of Section 12-27 are met.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the Purchasing Officer to complete the purchase authorized by this Resolution and to sign all necessary contracts upon review and approval of the City Attorney.

PASSED AND APPROVED this 24th day of January 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

2 APPROVED:

________________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-053, Version: 1
Fire Supervisors Association Memorandum of Understanding; Modification to Classification - Salary Schedule
Approve a Resolution authorizing the City Manager to sign the Memorandum of Understanding (MOU) with the Fire Supervisors Association (FSA), 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: January 24, 2023
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: FIRE SUPERVISORS ASSOCIATION 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 Fire Supervisors Association (FSA), 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 FSA and authorizing modification to the Classification – Salary Schedule for the FSA salary adjustment.

EXECUTIVE SUMMARY:

The MOU between the City and the FSA expired on December 31, 2022. Representatives of the City and the FSA met and conferred in good faith through the collective bargaining process and have reached a tentative agreement on the terms of a new MOU consistent with City Council direction. The attached MOU between the City and FSA 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 February 2023; 2% effective in January 2024 and 2% effective in January 2025
 Education Incentive: eliminated; $4,800 rolled into base pay  On-call Pay: For standby afterhours and on weekends
 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 FSA adjustments over three years, totals approximately $561,000.

ATTACHMENTS:

Resolution
Memorandum of Understanding with FSA
Classification – Salary Schedule

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RESOLUTION NO. _________ (N.C.S.)

A RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING FOR

THE FIRE SUPERVISORS ASSOCIATION 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 Fire Supervisors Association, for a term through December 31, 2025, and authorizing the corresponding modification to the Classification – Salary Schedule.

APPROVED this 24th day of January 2023, 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#23-060, Version: 1
a. 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.
b. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Alisal Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV00340.

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Salinas City CouncilJanuary 24, 2023

Salinas City Council
January 24, 2023