Tuesday, April 4, 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
April 4, 2023City Council Meeting Agenda - Final
ZOOM WEBINAR PARTICIPATION
JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://us02web.zoom.us/j/81319539949
To participate telephonically, call any number below:
US: +1 669 900 9128 or +1 669 444 9171 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 or +1 346 248 7799 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 558 8656 or +1 646 931 3860 or +1 689 278 1000 or +1 301 715 8592 Webinar ID: 813 1953 9949
If prompted to enter a participant ID, press #.
PLEDGE OF ALLEGIANCE
ROLL CALL
PROCLAMATION
National Distracted Driving Awareness Month, April 2023 National Community Development Week, April 10 - 15, 2023
CITY OF CHAMPIONS
Commissioners and Committee Members, District 2
PUBLIC COMMENT PROCEDURES
If you wish to make a general public comment or comment on a specific agenda item, you are encouraged to attend the City Council meeting in person. 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.
April 4, 2023City Council Meeting Agenda - Final
PRESENTATION
Councilmember comments on presentations are generally limited to three minutes.
ID#23-186 Fiscal Year 2024 Community Budget Survey
Recommendation: No action required. This report presents information to the City Council regarding the FY 2024 Community Budget Survey results.
ID#23-228 Pension Unfunded Accrued Liability Update & Cost-Management Strategies Recommendation: No action required. This report presents information regarding Pension Update & Cost Management Strategies.
PUBLIC HEARINGS
ID#23-200
Establishment of new Industrial Wastewater Rates for Fiscal Years 2024 through 2028
Recommendation: Approve a Resolution establishing New Industrial Wastewater rates for fiscal years 2024 through 2028 that includes annual rate increases of 22% effective July 1, 2023 (FY 2024), 22% on July 1, 2024 (FY 2025), 2% on July 1, 2025 (FY 2026), 2% on July 1, 2026 (FY 2027), and 2% on July 1, 2027 (FY 2028); and implements a new four-part rate structure effective July 1, 2023.
ID#23-211
Residential Rental Registration
Recommendation: Adopt an Ordinance amending Chapter 17 (Housing) of the Salinas Municipal Code by adding Section 1 to incorporate Rental Registration requirements for residential rental units; and approve a Resolution amending the City of Salinas Schedule of Fees and Charges for City Services to incorporate applicable Residential Rental Registration fees, authorizing the establishment of a Residential Rental Registration enterprise fund with corresponding revenue and expense budget in the amount of $400,000 for a Residential Rental Registration Program.
CONSIDERATION
ID#23-201
Alisal Vibrancy Plan (AVP) Implementation
Recommendation: Approve a Resolution receiving and accepting the 2022-2023 AVP Implementation Report and updated AVP Implementation Budget for activities through fiscal year 2024.
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#23-225
Minutes
Recommendation: Approve minutes of March 16, 2023, and March 21, 2023.
ID#23-236 Financial Claims
Recommendation: Approve financial claims report.
ID#23-152
April 4, 2023City Council Meeting Agenda - Final
Authorization to over-hire five (5) Firefighters; Workforce Allocation Adjustment
Recommendation: Approve a Resolution to provide authorization to over-hire five Firefighters and one Administrative Fire Captain within the Fire Department.
ID#23-166 Certificate of Correction for the Parcel Map Recorded in the County of Monterey as Volume 12 of Parcel Maps at Page 75
Recommendation: Approve a Resolution accepting the Certificate of Correction for the parcel map recorded as Volume 12 of Parcel Maps at Page 75 in the County of Monterey to delete the area designated as "1.0 access denial" in accordance with Section 66472.1 of the Subdivision Map Act.
ID#23-174
Professional Service Agreement between the City of Salinas and Kimley Horn and Associates Inc.
Recommendation: Approve a Resolution approving a Professional Services Agreement between the City of Salinas and Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design; and authorizing the use of Special Const Assist - Fed & St Funds up to $411,970 for said agreement.
ID#23-185
City Hall Emergency Roof Repair
Recommendation: Approve a Resolution authorizing procurement by negotiated contract pursuant to City Code Section 12-27 for the Salinas City Hall Emergency Roof Repair and authorize the City Manager to execute a construction contract.
ID#23-195
Direct Purchase of One (1) PB Loader BC-6; Additional Allocation of Funding Recommendation: Approve a Resolution authorizing an additional expenditure of up to $7,041.16 above an original quote of $327,040.67 that was approved by City Council on September 14, 2021(Salinas City Council Resolution No. 22180) for the direct purchase of a PB loader BC-6 for a total purchase price of $334,081.83.
ID#23-199
Additional allocation of funding for the direct purchase of one (1) Ford 350 Transit from Salinas Valley Ford
Recommendation: Approve a Resolution authorizing an increase of up to $18,779.40 to CIP 9285 and transfer from the General Fund to the CIP Fund and use of General Fund fund balance in the same amount to purchase one new 2023 Ford Transit van for a total cost of $57,008.16.
ID#23-205
HVAC Maintenance Service Agreement
Recommendation: Approve a Resolution awarding HVAC service agreement for four city buildings to Environmental Systems Inc; and approve an appropriation of $26,975.00 to cover the services through the end of the fiscal year.
ID#23-206
Natividad Creek Park Restroom Rehabilitation Project (CIP 9346) Recommendation: Approve a Resolution approving the Plans and Specifications for the Natividad Creek Park Restroom Rehabilitation Project (CIP 9346) and rejecting all bids received in response to the City's Request for Proposals released on December 16, 2022.
ID#23-209
Agreement with One Workplace for Purchase and Installation of Workspace Improvements for the Permit Services Division at 65 W. Alisal Street
April 4, 2023City Council Meeting Agenda - Final
Recommendation: Approve a Resolution authorizing the City Manager to execute an agreement with One Workplace in an amount not to exceed $38,935 which includes a 10% contingency for the purchase and installation of workspace improvements for the inspector's room located at 65 W. Alisal Street at the Permit Center.
ID#23-214
Organic Materials Direct Service Provider Agreement between the City of Salinas, Atlas Organics and the Member Agencies of the Salinas Valley Solid Waste Authority
Recommendation:
Approve a Resolution to approve an organic materials direct service provider agreement between the member agencies of the Salinas Valley Solid Waste Authority, City of Salinas and Atlas Organics.
ID#23-222
Award of Contract for the Hebbron Family Center Demolition and Site Improvements
Recommendation: Approve a Resolution awarding a contract for the Hebbron Family Center demolition and site improvements to Randazzo Enterprises, Inc for the sum of $316,016.00.
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#23-226
a. Anticipated Litigation - California Government Code Section 54956.9(e)(3)), significant exposure to litigation one (1) potential case. b. Existing Litigation - California Government Code Section 54956.9(d)(1)), conference with legal counsel regarding, Jeffrey Mackay v. City of Salinas, et al. (Northern District of California Case No. 5:19-cv-02257-LHK) c. Existing Litigation - California Government Code Section 54956.9(a), conference with legal counsel regarding, Jesus Orozco vs. City of Salinas, Workers’ Compensation Appeals Board Case Numbers: ADJ10228400, ADJ10228398, ADJ10228399.
d. Labor Negotiations - California Government Code Section 54957.6, with its designated labor representatives Steven S. Carrigan, City Manager; Jim Pia, Assistant City Manager; Christopher A. Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Mark Roberts, Finance Director; Marina Horta-Gallegos, Human Resources Director; Sylvia Enriquez, Senior Human Resources Analyst; Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Management Employees, Confidential Non-Management
April 4, 2023City Council Meeting Agenda - Final
Employees, and Department Directors.
e. 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.
f. 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. g. Performance Evaluation and Labor - California Government Code §54957 and §54957.6, public employee performance evaluation and labor relations with unrepresented employee (City Manager).
ADJOURNMENT
_____________________________
Alexis Mejia, Assistant 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 and 54956. City Council agenda reports and other writings distributed to the legislative body 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 in accordance with California Government Code section 54597.5. The City Council may take action that is different than the proposed action reflected on the agenda.
Disability-related modification or accommodation, including auxiliary aids or services, may be requested by any person with a disability who requires a modification or accommodation in order to participate in the meeting. Language interpretation may be requested as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Requests should be referred to the City Clerk’s Office At 200 Lincoln Avenue, Salinas, 758-7381, as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the city by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.
PUBLIC NOTIFICATION
This agenda was posted on March 29, 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.
April 4, 2023City Council Meeting Agenda - Final
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-186, Version: 1
Fiscal Year 2024 Community Budget Survey
No action required. This report presents information to the City Council regarding the FY 2024 Community Budget Survey results.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: MARCH 21, 2023
DEPARTMENT: FINANCE
FROM: MARK ROBERTS, DIRECTOR OF FINANCE
TITLE: FISCAL YEAR 2024 COMMUNITY BUDGET SURVEY
RECOMMENDED MOTION:
No action is required. This report is for informational purposes only.
EXECUTIVE SUMMARY:
The budget process is designed to efficiently and effectively receive and incorporate community input, allow staff to prepare and present a proposed budget, and allow the City Council time to review and direct staff on the budget prior to adoption. For this administrative report, the Director of Finance will provide an overview of the results of the community budget survey, budget priority “pop-ups,” community budget meetings, and information regarding additional opportunities for the public may provide input on budget priorities and be engaged in the budget process.
BACKGROUND:
Although, internally, development of t he Fiscal Year 2023 budget began in February, City staff released a community budget survey in December 2022 and conducted forty “pop-ups” at various locations throughout the city, which, combined, obtained more than 4,300 responses from the public. In addition, staff conducted four community budget meetings in January and February 2023, with overall attendance totaling over 180.
Below are the opportunities staff affords the community to communicate their priorities and be engaged in the budget process:
▪ December 2022 – Online budget survey released
▪ January 25 – February 16, 2023 – Community budget meetings ▫ January 25, 2023, 6:00 – 8:00 PM Community Budget Meeting #1 (Salvation Army) ▫ January 31, 2023, 6:00 – 8:00 PM Community Budget Meeting #2 (City Hall) ▫ February 4, 2023, 10:00 AM – 12:00 PM Community Budget Meeting #3 (Zoom) ▫ February 16, 2023, 6:00 – 8:00 PM Community Budget Meeting #4 (Bread Box) ▪ April 20, 2023 – Measure E Oversight Committee (Department highlight presentation) ▪ April 20, 2023 – Measure G Oversight Committee (Department highlight presentation) ▪ May 2, 2023 (Regular City Council meeting, 4-6 pm) – Introduce Preliminary CIP Budget; Study Session (Department highlight presentation)
Page | 2
▪ May 23, 2023 (Regular City Council meeting, 4-6 pm) – Introduce Preliminary Operating Budget; Study Session (Department highlight presentation) ▪ June 13, 2023 (Regular City Council meeting) – Adopt CIP & operating budgets
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
This administrative report achieves the Council 2022-2025 Strategic G oal of Effective & Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The online survey, “pop-ups,” community budget meetings, and preparation of this report were a collaborative effort of all City departments.
FISCAL AND SUSTAINABILITY IMPACT:
The information referenced in this report represents no fiscal impact upon the City.
ATTACHMENTS:
Fiscal Year 2024 Community Budget Survey Results (Presentation)
C I T Y O F S A L I N A S
C I T Y O F S A L I N A S
Budget Development Calendar &
Opportunities for Public Input
1. December 6, 2022 – Budget process & timeline presented to City Finance Committee
2. January 25 – February 16, 2023 – Community budget meetings (online survey released Dec. 2022) ▪ January 25, 2023, 6:00 – 8:00 PM – Community Budget Meeting #1 (Salvation Army) ▪ January 31, 2023, 6:00 – 8:00 PM – Community Budget Meeting #2 (City Hall) ▪ February 4, 2023, 10:00 AM – 12:00 PM – Community Budget Meeting #3 (Zoom) ▪ February 16, 2023, 6:00 – 8:00 PM – Community Budget Meeting #4 (Bread Box)
3. March
21, 2023 (Regular City Council meeting) – Online survey results delivered to Council
4. April 20, 2023 – Measure E Oversight Committee (Department highlight presentation)
5. April 20, 2023 – Measure G Oversight Committee (Department highlight presentation)
6. May 2, 2023 (Regular City Council meeting) – Introduce Preliminary CIP Budget; Study Session (Department highlight presentation)
7. May 23, 2023 (Regular City Council meeting, 4-6 pm) – Introduce Preliminary Operating Budget; Study Session (Department highlight presentation)
8. June 13, 2023 (Regular City Council meeting) – Adopt operating & CIP budgets 4 Question 1: What City Council District do you live in? * 6 District 1 -
Carla
Viviana
Gonzalez
District 2 -
Tony Barrera
District 3 -
Steve
McShane
District 4 -
Orlando
Osornio
District 5 -
Andrew
Sandoval
District 6 -
Anthony
Rocha
None of the
above
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
What City Council District do you live in?
Responses
District 1 - Carla Viviana Gonzalez 18.07% 490
District 2 - Tony Barrera 12.91% 350
District 3 - Steve McShane 24.97% 677
District 4 - Orlando Osornio 9.04% 245
District 5 - Andrew Sandoval 7.89% 214
District 6 - Anthony Rocha 14.05% 381
None of the above 13.06% 354
Question 2: About Me *
7 None of the
above
I am a resident of
Salinas
I work in Salinas I am a business
owner/property
owner in Salinas
I am a student in
Salinas
I visit/have family
in Salinas
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
About Me (Select all that apply)
Responses
None of the above 0.89% 24
I am a resident of Salinas 81.96% 2222
I work in Salinas 39.10% 1060
I am a business owner/property owner in Salinas 16.82% 456 I am a student in Salinas 21.21% 575
I visit/have family in Salinas 27.78% 753
Question 3: Which Category Below Includes Your Age? *
8 17 or
younger
18-24 25-34 35-44 45-54 55-64 65 and over
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Which category below includes your age?
Responses
17 or younger 15.79% 427
18-24 9.24% 250
25-34 19.37% 524
35-44 18.82% 509
45-54 14.01% 379
55-64 10.98% 297
65 and over 11.79% 319
Question 4: Economic Prosperity , Equity , & Diversity 9 Business Attraction &
Job Creation
Image, Beautification
& Tourism
Small Business
Support
Agriculture Technology
& Innovation
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Economic Prosperity, Equity and Diversity
- Select your top 2 priorities.
Responses
Business Attraction & Job Creation 64.17% 1596
Image, Beautification & Tourism 48.01% 1194
Small Business Support 48.57% 1208
Agriculture Technology & Innovation 39.24% 976
Economic Prosperity, Equity and Diversity - A City where all persons have equitable access to prosperity through a diversified economy, jobs and educational/training opportunities (small business support, grants, workforce development).
Question 5: Housing Opportunities for All
10 Tenant & Landlord
Education & Support
Homeless Outreach &
Support
Homeownership
Promotion & Support
Incentivize & Facilitate
Housing Production
(ADUs, Fee Deferrals,
etc.)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Housing Opportunities for All - Select
your top 2 priorities.
Responses
Tenant & Landlord Education & Support 41.38% 1029
Homeless Outreach & Support 54.08% 1345
Homeownership Promotion & Support 63.01% 1567
Incentivize & Facilitate Housing Production (ADUs, Fee
Deferrals, etc.) 41.54% 1033
Housing Opportunities for All - A City with a diversity of housing types and affordability levels for its residents (rental assistance, affordable, tenant’s rights and first-time homebuyer education, homeless outreach/support).
Question 6: Healthy & Safe Community
11 Police Patrol & Traffic
Enforcement
Community
Engagement &
Violence Prevention
Fire/Inspection
Services
Improve Response
Times
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Healthy and Safe Community - Select
your top 2 priorities.
Responses
Police Patrol & Traffic Enforcement 67.11% 1669
Community Engagement & Violence
Prevention 71.25% 1772
Fire/Inspection Services 20.99% 522
Improve Response Times 40.65% 1011
Healthy and Safe Community - A City which strives to protect and improve the personal safety, health and welfare of the people who live, work, and visit (parks, recreation, open space, lighting, youth programs, neighborhood cleanups, police services, fire services, farmer’s markets).
Question 7: Youth are the Future
12 Sports & Recreation Neighborhood
Services, Volunteerism
& Community
Engagement
Parks Learning & Literacy
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Youth are the Future - Select your top 2
priorities.
Responses
Sports & Recreation 61.97% 1540
Neighborhood Services, Volunteerism & Community
Engagement 48.09% 1195
Parks 43.22% 1074
Learning & Literacy 46.72% 1161
Youth are the Future - A City where youth flourish and have equitable access to education, recreation and a healthy urban environment (sports and recreation, parks, youth enrichment programs, music and art).
Question 8: Livable & Sustainable Community
13 Trees Maintenance of City
Facilities (Recreation
Centers, Libraries,
etc.)
Green Infrastructure
(Green Areas Across
the City)
Stormwater (Flood
Control)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Livable and Sustainable Community -
Select your top 2 priorities.
Responses
Trees 44.15% 1098
Maintenance of City Facilities (Recreation Centers, Libraries, etc.) 67.31% 1674
Green Infrastructure (Green Areas Across the City) 52.39% 1303 Stormwater (Flood Control) 36.15% 899
Livable and Sustainable Community - A well-planned City with a thriving community core and commercial corridors, excellent infrastructure (streets, sidewalks, sewer, lighting, parks, trees and open spaces, libraries, and community facilities, etc.) that meet the unique and changing needs of the community.
Question 9: Connectivity, Access, & Mobility
14 Streets Pedestrian Safety &
Sidewalks
Bikeways, Greenways
& Trails
Lighting
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Connectivity, Access and Mobility - Select
your top 2 priorities.
Responses
Streets 76.04% 1891
Pedestrian Safety & Sidewalks 59.63% 1483
Bikeways, Greenways & Trails 24.09% 599
Lighting 40.25% 1001
Connectivity, Access and Mobility - An active City with a well-connected, eco-friendly network of multi-modal streets, bikeways, greenways and trails, and effective public transportation options.
Question 10: A Community to Celebrate
15 Public Art Art & Cultural
Programs
Community Events Community Spaces
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
A Community to Celebrate - Select your
top 2 priorities.
Responses
Public Art 27.10% 674
Art & Cultural Programs 52.23% 1299
Community Events 74.55% 1854
Community Spaces 46.12% 1147
A Community to Celebrate - A City that celebrates, promotes, preserves and honors the diversity, history, art, and culture of its community (plaza, public art, art and cultural programs, community events).
Question 11: How do you want to stay engaged?
16 Social Media Texts Email Mail
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
How do you want to stay engaged?
Responses
Social Media 53.59% 1218
Texts 10.34% 235
Email 30.40% 691
Mail 5.68% 129
“Salinas Bucks” Exercise
17 Guiding Principles 1/25/23 1/31/23 2/16/23 Total
Economic Prosperity, Equity, & Diversity $ 2,400 $ 1,900 $ 6,800 $ 11,100 Housing Opportunities for All $ 3,700 $ 8,800 $ 12,300 $ 24,800 Healthy & Safe Community $ 3,400 $ 2,700 $ 5,100 $ 11,200 Youth are the Future $ 2,200 $ 4,200 $ 5,200 $ 11,600 Livable & Sustainable Community $ 3,000 $ 2,600 $ 3,600 $ 9,200 Connectivity, Access, & Mobility $ 3,200 $ 7,000 $ 12,700 $ 22,900 A Community to Celebrate $ 1,900 $ 2,100 $ 3,800 $ 7,800 $-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Economic Prosperity,
Equity, & Diversity
Housing Opportunities
for All
Healthy & Safe
Community
Youth are the Future Livable & Sustainable
Community
Connectivity, Access, &
Mobility
A Community to
Celebrate
In Person Meetings - Salinas Bucks Activity
1/25/2023 1/31/2023 2/16/2023 TOTAL
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-228, Version: 1
Pension Unfunded Accrued Liability Update & Cost-Management Strategies No action required. This report presents information regarding Pension Update & Cost Management Strategies.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 4, 2023
DEPARTMENT: FINANCE
FROM: MARK ROBERTS, DIRECTOR OF FINANCE
TITLE: PENSION UAL UPDATE & COST-MANAGEMENT STRATEGIES
RECOMMENDED MOTION:
Staff recommends the City Council receive and accept this Pension Update & Cost Management Strategies staff report.
EXECUTIVE SUMMARY:
The City of Salinas’s (the “City”) unfunded accrued liability (“UAL”), also known as the net pension liability (“NPL”), has grown from $183 million as of fiscal year end 2017 to a projected $272 million as of fiscal year end 2023 . Annual costs to amortize this debt with CalPERS have risen from $10 million to $16 million over the last 6 years and are projected to grow another 80% by fiscal year 2031. Rising pension costs are one of the largest financial challenges facing agencies state-wide and are projected to impact the City’s budget significantly in the near future, potentially crowding out other critical priorities and projects. The presentation accompanying this staff report provides an overview of recent pension cost trends, projected future cost trends, and several cost- management strategies for City Council consideration.
BACKGROUND:
The City of Salinas, like most cities in California, has a UAL associated with its CalPERS pension plan. A UAL occurs when current
pension plan assets are not
projected to be sufficient to pay
projected pension costs in future
years. As of June 30, 2021 (the
most recent Ca lPERS valuation),
the City's UAL was $165 million.
CalPERS, however, has reported
an investment return of -7.5% for
fiscal year 2022 , which is
projected to increase the City's
UAL to approximately $ 238
million. CalPERS investment
earnings for fiscal year 2023 are
2023:
$272M
2022:
$238M
2021:
$165M
2020:
$216M
UAL
Balance
(FYE):
0.0% (est.)-7.5%21.3%4.7%Returns:
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
Millions
UAL Payments (6/30/2021
Actuarial Valuation)
New UAL Payments from
-7.5% FY 2022 Returns
New UAL Payments from
Hypothetical 0.0% FY
2023 Returns
Historical UAL
Payments
Page | 2
approximately 0% year to date, which, if unchanged, may drive the UAL to more than $270 million at the plan’s June 30, 2023 valuation. CalPERS effectively charges the City a 6.8% interest rate on this debt and requires a repayment schedule that escalates quickly over the next decade as shown in the chart above. Payments to amortize this debt have risen from $10 million in fiscal year 2018 to $16 million in fiscal year 2023 and are projected to rise to close to $30 million by the end of the decade.
Historical Efforts: The City has taken some proactive steps to control pension costs already. In April 2022, the City approved the establishment of a Section 115 Trust with PFM Asset Management of which the balance of assets, which is specially earmarked for pension expenses, is currently approximately $6.2 million. Benefits of a Section 115 Trust include (1) the ability to use the funds in the future to pay down the plan’s UAL or help smooth re quired CalPERS expenses; (2) enhanced budgetary flexibility; (3) investment diversification of pension assets away from CalPERS; and (4) increased investment earnings vs other City reserves. Additionally, the City has made Additional Discretionary Payments (“ADPs”) to CalPERS in fiscal year 2018 ($11 million) and fiscal year 2020 ($4 million) and has historically taken advantage of the prepayment discount offered by CalPERS by making a lump sum UAL payment at the beginning of each fiscal year. Currently, the prepayment discount is approximately 3. 3%. With pension costs increasing dramatically, however, staff believes additional action will be necessary.
Cost-Management Strategies: As noted above, the attached presentation provides an overview of the recent pension cost trends, as well as projected future trends. Most importantly, it discuss es options for the City to consider implementing in the short term , to proactively prepare for the imminent cost increases. Specifically, these options include setting aside reserves and/or surplus funds, dedicating them to address this pension challenge, either in the form of deposits to the Section 115 Trust or directly to CalPERS in the form of an ADP. The concept of a UAL restructuring (pension bond) will be briefly introduced, but this option is not being recommended at this time, due to current market conditions.
CEQA CONSIDERATION:
The City of Salinas has determined the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Monitoring the growth of revenues and expenditures, including determining when supplemental appropriations are necessary, supports the City of Salinas Strategic Plan 2023 -2025 goal of Effective Government.
FISCAL AND SUSTAINABILITY IMPACT:
Taking action to address the City’s rapidly growing UAL will enhance the City’s fiscal sustainability by mitigating the impact of the increase and enhancing budget predictability.
Page | 3
ATTACHMENTS:
City of Salinas Pension Unfunded Accrued Liability (UAL) Cost Management Strategies Discussion (Presentation)
CITY OF SALINAS
PENSION UNFUNDED ACCRUED LIABILITY (UAL)
COST MANAGEMENT STRATEGIES DISCUSSION
APRIL 4, 2023
2 Introduction to NHA Advisors
NHA was hired as the City’s Municipal Advisor in December 2021 NHA has 8 Practice Groups to optimally serve public agencies NHA’s Pension & Fiscal Sustainability Practice Group was established in 2014 and has since served 85+ California public agencies Education – NHA Summary Reports, White Papers, Newsletters, Workshops Financial Planning – CalPERS Sensitivity Analysis & Projection Modeling Cost Management Strategies – Section 115 Trusts, Additional Discretionary Payments (ADPs), POBs/UAL Restructurings
Stress Testing and Risk Assessment
Pension Funding Policy Development
Public Agencies Served by NHA Advisors*
*Engagements since 2012
3 Executive Summary
City of Salinas has a $165M CalPERS Unfunded Accrued Liability (“UAL”), as of the latest CalPERS valuation (6/30/2021)
23% decrease compared to previous valuation due to CalPERS strong investment returns of 21.3% in FY 2021 However, CalPERS reported investment returns of -7.5% for FY 2022, which is projected to offset the benefits of the strong investment returns in FY 2021
City’s UAL balance is projected to grow to $238M
This increase will be recorded in this summer’s CalPERS reports City’s UAL payments will be impacted in FY 2025
Additionally, CalPERS is currently underperforming for FY 2023, with investment returns estimated at
0.0% to date
City’s UAL Balance may increase to approximately $272M if CalPERS finished the year at 0.0% Continuing to plan for and evaluate options to manage variable costs is important for budget predictability and fiscal health
Cost management strategies:Section 115 Trust, Additional Discretionary Payments (“ADPs”), UAL Restructuring In April 2022, the City approved a Section 115 Trust with PFM Asset Management This Trust can be used to enhance budget predictability, limit the impacts of pension costs on the General Fund, and more 4 Table of Contents
I. Background on CalPERS Costs
II. Historical and Projected CalPERS Costs
III. Potential Cost Management Strategies
IV. Comparison of Section 115 Trust and ADP
V. Fiscal Health
VI. Conclusion
Appendix – Additional Pension Information
I. BACKGROUND ON CALPERS COSTS
6 $483 Million
$754 Million
$272 Million
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
$800Millions
CalPERS Pension Funded Status
Background on How CalPERS Works
Two Payments Made to CalPERS Annually
(1) Normal Cost (“NC”) = Annual cost for current employees (2) Unfunded Accrued Liability (“UAL”): Annual payment to amortize the “debt” to CalPERS
CalPERS actuaries calculate how much the City is required to have in its account with them to pay out benefits to City’s retirees over the next 30-40 years (Actuarial Liability) CalPERS annually calculates the Market Value of City’s assets held on account with them; Most public agencies have less assets than required to meet Actuarial Liability
This shortfall (i.e., the “UAL”) is not repaid all at once but amortized over time with the City paying down a portion each year (principal and interest)
CalPERS uses a “discount (i.e., interest) rate” of 6.80% CalPERS annually adjusts this repayment schedule by adding a new “base” (i.e., layer) which adds to (in bad investment years) or lowers (good investment years) the overall repayment schedule
Over the past 20 years, the addition of these “layers,” along with other CalPERS assumption changes, has created a very irregular repayment shape for most CalPERS public agencies
Actual Market
Value of Assets
Actuarial
Liability
Shortfall (UAL)
The numbers reported in this chart assume -7.5% investment returns for FY 2022, 0.0% investment returns for FY 2023, and
6.80% investment returns every year thereafter.
7 Now …
Sluggish returns outlook (<7%)
Assumptions have changed/changing
Discount Rate: 8.25% → 7.00% → 6.80%
Inflation rate (prices going up)
Mortality rates (people living longer)
Shorter (20 year) amortization
UAL payments have grown rapidly from
past changes, remain exposed to the
effects from future poor investment
returns and assumption changes
Why CalPERS Costs have Trended Higher
Then (late 1990s)…
Robust investment returns (10%+)
Retirement plans were “Super-
Funded” through the late 1990s
Earnings on funds were more than
adequate to cover retirement costs
Super-funded status induced
widespread retirement benefits
enhancements….
Historical PERS
Returns
5-Year: 6.7%
10-Year: 7.7%
20-Year: 6.9%
30-Year: 7.7%
II. HISTORICAL AND PROJECTED CALPERS COSTS
9 Historical and Projected UAL Payment Schedule
The City’s UAL Balance as of FYE 2021 is
23% lower than FYE 2020, but is
expected to increase 44% in the next
CalPERS valuation
The City’s UAL balance could increase
another 14% if CalPERS earns 0.0% in FY
2023
City’s $10M payment in 2018 has
increased to $16M in FY 2023.
Projected payments peak at nearly
$30M in FY 2031.
Rapidly increasing impact to City’s budget
Annual Pension Cost (UAL + Normal
Cost) is currently 17% of General Fund
Budget (includes General, Measure E, &
Measure G Funds) and projected to
increase to 27% in FY 2031
Note that the UAL will fluctuate
annually moving forward based on
future CalPERS investment returns &
assumption changes
2023:
$272M
2022:
$238M
2021:
$165M
2020:
$216M
UAL
Balance
(FYE):
Returns: 4.7% 21.3% -7.5% 0.0% (est.)
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
Millions
UAL Payments (6/30/2021
Actuarial Valuation)
New UAL Payments from
-7.5% FY 2022 Returns
New UAL Payments from
Hypothetical 0.0% FY
2023 Returns
Historical UAL
Payments
Source: CalPERS Pension Outlook Tool. Assumes FY 2022 returns of -7.5%, FY 2023 returns of 0.0%, and 6.80% returns from FY 2024 onward.
III. POTENTIAL COST MANAGEMENT STRATEGIES
11 Cost-Containment Strategies – Not Mutually Exclusive (1) Prepay UAL early in Fiscal Year (≈ 3.3% discount)
(2) Negotiate Cost Sharing With Employees
• Require employees to pay their share; new employees already governed by lower cost/benefit PEPRA plans • Negotiated cost sharing of the City’s share
(3) Fresh Start Amortization offered by CalPERS
• Pros: Smooths payment, shortens repayment period; reduces overall interest paid from shorter amortization period • Cons: New structure “locked-in” + increased annual payments in near term; still amortized at discount rate (4) Use Cash Reserves to Pay Extra (two options)
• Section 115 Trust – Separate trust solely dedicated to pension/OPEB → City has adopted a Section 115 Pension Trust • ADP – Reduce UAL through direct lump sum payment to CalPERS → City made an ADP in 2018 and 2020 • Choose optimal amortization bases to pay off
(5) Restructure All or Portion of Remaining UAL
• Restructure portion of UAL at lower bond interest rate and “smooth out” payments for enhanced budget predictability, near and mid-term potential savings, and preservation of cash for other critical activities Currently not
recommended;
Continue to
Monitor
Currently not
recommended
12 Use Cash Reserves: Section 115 Trust
What is it? Dedicated (restricted to pension/OPEB) account managed by 3rd party The City approved a Section 115 Pension Trust in April 2022; The Trust balance is $6.2M as of 12/31/2022 The target asset allocation for the Trust is 50% equity, 50% fixed income Pros:
Potential for increased investment returns vs. current General Fund reserves General Fund investments restricted by Government Code (limits types of instruments and maturities) Flexibility – more investment options than CalPERS and the City can decide when and how to use Longer-Term: Trust funds can grow over time and pay off full UAL in the future Shorter-Term: Apply during challenging budget years or to “smooth” payment spikes in UAL and/or Normal Cost
Diversify asset management away from CalPERS
Potential shock absorber for volatility from CalPERS investment performance & assumption changes Cons:
Market risk (dependent on type of investment portfolio) Note: The Trust will show up as an asset on the City’s financial statements, but will not technically offset UAL until funds are transferred to CalPERS
13 What is it? City makes Additional Discretionary Payment (“ADP”) directly to CalPERS and designates which amortization base(s) / layer(s) shall be paid off CalPERS will eliminate payments associated with the portion of the UAL paid off, essentially giving the City credit at the discount/interest rate (currently 6.8%) The City made an ADP to CalPERS in FY 2018 ($11.3M) and FY 2020 ($4.3M) Pros:
Reduced future payments
Reduced UAL / higher CalPERS funding ratio
Broader, less restrictive CalPERS investment portfolio has potential for higher returns Cons:
Re-investment and market timing risk with ADP funds
No options for other investment portfolios like there is with Section 115 Use Cash Reserves: ADP
14 Section 115 vs. CalPERS ADP Comparison
OPTION Section 115 Trust CalPERS ADP
Reduced UAL & UAL Payments with
CalPERS No Yes
Reduced Pension Liability in ACFR No (but the Trust will show up as an asset on the City’s financial statements) Yes
Control of Investment Strategy Yes No
Funds Managed By Trust Administrator (e.g., PFM Asset
Management for the City’s Trust) CalPERS
Flexibility in Uses Yes (annual pension or OPEB expense, ADP , OPEB, etc.) No
Savings Varies; Depends on when City utilizes
funds to pay liabilities
Immediate; Length of time varies based
on which amortization component is
paid off (City's amortization bases
currently range from 2 - 27 years)
Enhanced Budgetary Flexibility Yes No
How Many Agencies in CA Have Used? Over 300 (Estimated) CA agencies maintain Section 115 Trusts (>150 cities)
Historically, hundreds of ADPs made by
CA agencies annually
IV. COMPARISON OF
SECTION 115 TRUST AND ADP
16 Comparison of Section 115 Trust and ADP
$6 Million & $20 Million Deposit Amounts
$6 Million (City’s Current Trust Balance) $20 Million
*Assumes 6.80% Discount Rate, -7.5% FY 2022 Investment Returns, 0.0% FY 2023 Investment Returns, 6.80% Investment Returns from FY 2024 onward $0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
$22.0
$24.0
$26.0
$28.0
$30.0
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
Millions
Projected UAL Payments (CalPERS Pension Outlook Tool)*
ADP Net Payments
Section 115 Trust Net Payments
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
$22.0
$24.0
$26.0
$28.0
$30.0
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
Millions
Projected UAL Payments (CalPERS Pension Outlook Tool)*
ADP Net Payments
Section 115 Trust Net Payments
Trust savings more
optimally concentrated in
peak years
ADP savings distributed
across the next 13 years
17 Comparison of Section 115 Trust and ADP
Assumptions & Savings Summary
2 Different Deposit Amounts: $6M and $20M
Cost Management Strategy Section 115 Trust ADP
Deposit Assumptions
$6M by FYE 2023. For the $20M
scenario, the remaining balance
($14M) is deposited in 2024
$6M by FYE 2023. For the $20M
scenario, the remaining balance
($14M) is deposited in 2024
Assumed Interest Rate Benefit 5.00% 6.80%
Gross Savings $8.7M - $29.7M $8.6M - $28.0M
Gross Savings during Peak Payment
Years (2029 – 2036) $8.7M - $29.5M $5.0M - $17.3M
Additional Budget Flexibility from
Liquidity
$6M - $20M (equal to total amount
deposited)
$0 (funds deposited cannot be
retrieved from CalPERS
Average Annual Payment from
2023 - 2036 (Excludes Deposits) $22.5M - $24.0M $22.7M - $24.0M IV. FISCAL HEALTH
19 Economy
30%
Finances
40%
Institutional
Framework
10%
Management
20%
S&P Credit Scorecard
City’s “AA-” Issuer Credit Rating
Criteria and Summary
Economy:
Weak economy
Per capita buying income of 60.6% of national level
Weak county unemployment rate
Diverse taxpayer base
Finances:
Strong budgetary performance
Very strong budgetary flexibility
Very strong liquidity
Very weak debt and contingent liability profile
City’s plan to mitigate rising pension/OPEB costs may not sufficiently address the increasing obligation right away and may result in budgetary pressure
Management:
Very strong management
Strong financial policies and practices
Not Controllable
Controllable
“AA-” Issuer Credit Rating Summary
Policies and practices
Metrics include budgetary
performance, budgetary
flexibility, liquidity, debt and
contingent liabilities
Metrics include median
household income, per
capita effective buying
income, assessed values,
diversity of tax base, etc.
Source: Salinas Facilities Financing Authority S&P Rating Report (August 5, 2020) IV. CONCLUSION
21 Takeaways
Rising pension costs are a challenge facing most public agencies Salinas has taken steps in addressing this challenge (e.g., Adopting Section 115 Trust, ADPs) City should incorporate latest estimates into budget and planning process; conduct sensitivity analysis and conservatively plan for CalPERS underperformance
City can consider various cost management strategies, including Section 115 Trust deposits and ADPs A Section 115 Trust may be the most helpful as a shock absorber for BOTH revenue volatility and CalPERS volatility, given recessionary pressures
The City should consider additional deposits to the Trust Even at a $20 million Trust balance, the smoothed UAL payments are still projected to increase 50% over the next several years ADPs can also be considered; perhaps after the Section 115 Trust is built up to sufficient levels ADPs can be executed at any time from a Section 115 Trust; the Trust does not preclude the City from executing other strategies
UAL Restructuring could be evaluated in future if interest rates come down again (would require significant evaluation/risk assessment)
City could consider incorporating its current Section 115 Trust reserve policy into a comprehensive pension funding policy to provide additional detail on how it will apply various one-time monies and/or surplus towards pension and OPEB liabilities
APPENDIX –
ADDITIONAL PENSION INFORMATION
23 Background - Retirement Plans
2 Main CalPERS plans
Miscellaneous: 759 covered members
Safety (Police & Fire): 870 covered
members
PEPRA helpful to manage long term
pension costs for new employees
PEPRA (effective 2013) enacted revised
benefit levels for new plan members
However, over 99% of UAL is
attributable from Classic plans and not
reduced by PEPRA
MISCELLANEOUS PLANS
Benefit Group # of Actives % of Actives Benefit Formula Miscellaneous 281 100.0% 2.0% @ 55
2.0% @ 62
Total Active Members 281 100.0% -
Total Covered Members 759 - -
SAFETY PLANS
Benefit Group # of Actives % of Actives Benefit Formula Safety Police 151 64.0%
3.0% @ 50
3.0% @ 55
2.7% @ 57
Safety Fire 39 16.5% 3.0% @ 50
PEPRA Safety Fire T2 28 11.9% 2.5% @ 57
Safety Fire T2 18 7.6% 3.0% @ 55
Total Active Members 236 100% -
Total Covered Members 870 - -
24 UAL Payments are like a “Layer Cake”
More Layers Each Year; Increasing or Decreasing Height and Shape of “Cake” Note: The numbers and charts in this presentation are a representation of another California public agency’s CalPERS UAL and are provided here for educational purposes.
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Net UAL Payments
25 $-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
$22.0
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Millions
10-Year Fresh Start Analysis
UAL Payments (6/30/2021 Valuation) 10-Year Fresh Start Payments CalPERS “Fresh Start”
What is it? City can request new,
smoother amortization schedule with
CalPERS
Must be shorter that current term
Amortized at discount rate (currently 6.8%)
Pros:
Overall reduction in interest paid on UAL
UAL paid off sooner
Cons:
Near term payments are higher
All payment reductions are in later years
Very low present value savings
City can’t go back to old schedule
Fresh Start is not commonly utilized –
City could achieve same result using
either the ADP or Section 115 strategy
while maintaining some flexibility
Source: CalPERS Actuarial Reports (6/30/2021 valuation) Years 1-10: $57.6M Net
Increase in Total Payments
Years 11-27: $108.5M in
Cashflow Savings
26 Restructuring UAL using Debt
What is it? Borrow money to pay off all or a portion of UAL with CalPERS (i.e., very large ADP) Pension Obligation Bond (“POB”) is typically utilized Unsecured debt (no collateral required)
“Court Validation” to confirm UAL is a “debt” that can be refinanced Typically a 3-to-4-month process
Validation provides option to issue POBs now or anytime in the future (does not lock an agency into issuing) Alternative option is Lease Revenue Bond
Pros:
Restructuring the annual payments into a smoother, predictable schedule is core objective POB interest rates typically lower than CalPERS interest rate (6.8%) Given recent market volatility driven by Fed rate hikes to combat inflation, taxable interest rates for pension bonds are currently estimated at 6.00% or higher
Cons:
Re-investment risk and market timing risk of bond proceeds sent to CalPERS Since Spring 2020, approximately 85 - 95 California public agencies have restructured their UAL through debt financing Last California UAL restructuring was in August 2022
POBs are not recommended in today’s market due to higher interest rates (estimated at 6.00% or higher) NHA and staff will continue to monitor the market; robust evaluation/risk assessment would be recommended if strategy was ever pursued in future
POB Debt Service
Unrefunded UAL Payments
UAL Payments Before POB
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-200, Version: 1
Establishment of new Industrial Wastewater Rates for Fiscal Years 2024 through 2028 Approve a Resolution establishing New Industrial Wastewater rates for fiscal years 2024 through 2028 that includes annual rate increases of 22% effective July 1, 2023 (FY 2024), 22% on July 1, 2024 (FY 2025), 2% on July 1, 2025 (FY 2026), 2% on July 1, 2026 (FY 2027), and 2% on July 1, 2027 (FY 2028); and implements a new four-part rate structure effective July 1, 2023.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: April 4, 2023
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: BRIAN FRUS, SENIOR ENGINEER
TITLE: ESTABLISHMENT OF NEW INDUSTRIAL WASTEWATER
RATES FOR FISCAL YEARS 2024 THROUGH 2028
RECOMMENDED MOTION:
A motion to approve a resolution to establish new Industrial Wastewater rates for fiscal years 2024 through 2028 that 1) Includes annual rate increases of 22% effective July 1, 2023 (FY 2024), 22% on July 1, 2024 (FY 2025), 2% on July 1, 2025 (FY 2026), 2% on July 1, 2026 (FY 2027), and 2% on July 1, 2027 (FY 2028) and 2) Implements a new four-part rate structure effective July 1, 2023.
EXECUTIVE SUMMARY:
Twenty-three existing industries discharge to the Industrial Wastewater Collection and Conveyance System (IWCCS). A list of current industries is available as Exhibit A on the attached Resolution. Revenue under the current Industrial Wastewater rates is insufficient to meet operating and capital expenses for the next five years, fiscal year (FY) 2024 through FY 2028, and therefore revenue adjustments are needed. Recommended revenue increases are an average of 22% annually to industrial wastewater rates in FY 2024 and FY 2025 and 2% annually in FY 2026 through FY 2028. The City’s current Industrial Wastewater rates have been in effect since January 1, 2013.
Permits are issued by the City to the industrial dischargers for t hree-year terms. Dischargers are charged a fixed monthly service fee and variable fees based on their average monthly flow and biochemical oxygen demand (BOD) , a measure of water quality . Individual industrial customer increases will vary depending on allocated monthly capacity, flow contributed, and BOD. The has planned near-term development for the IWCCS adding two new dischargers with the potential longer-term development adding even more.
The proposed industrial wastewater rates are comprised of four components detailed below, also listed in Exhibit B on the attached Resolution:
A fixed monthly service charge (flat fee),
A monthly allocation reservation charge which is based on monthly allocation, A variable flow charge for the amount of wastewater con tributed to the industrial waste system,
And a variable charge for the pounds of BOD in wastewater contributed.
Page | 2
The recommended rates and rate structure are based on the cost of service (COS) analysis and provided a defensible nexus between the cost of service provided and rates charged. The analysis was completed using Water Environmental Federation standards alongside industry best practices.
Property-related fees and charges in California are governed by Proposition 218, which dictates that rates do n ot exceed the proportional cost of service. In addition to the proportionality requirements, Proposition 218 requires public agencies in California to meet procedural requirements for adoption of new or increased rates for property-related fees. The City must hold a public hearing to consider the proposed rate increases and must provide written notice at least 45 days in advance of said hearing to all customers subject to the proposed new or increased rates.
Any industry user that is directly liable to the public agency for payment of the property -related fees may submit a written protest against the new or increased rates at any time until the close of the public hearing. City Council may not adopt the proposed new or increased rates if more than 50 percent of the industry users directly liable for payment and with operations upon properties which the proposed rates will be imposed, submit written protests.
BACKGROUND:
The City of Salinas is planning on improvements to its IWCCS, which treats wastewater from 23 local agriculture‐based industries. The system is comprised of a network of piping and pump station, which covey wastewater to the Industrial Waste Treatment Facility (IWTF) for treatment and disposal.
The City retained Carollo, an independent rate co nsultant, to conduct an Industrial Wastewater Rate Study ( Rate Study) for the City’s industrial wastewater rates. The City’s last Study was completed in May 2012, with the current rate and rate structure last updated on January 1, 2013.
The key driver for this rate study is significant upcoming capital costs associated with necessary improvements and capacity expansions to the IWCCS system, including updates to increase reliability and redundancy of treatment and conveyance facilities, implement automation and control, and improve energy and operational efficiency. A Facility Plan currently in development by Carollo has identified approximately $28.0 million in near-term projects (including studies and investigations) and $41.5 million of long-term projects.
Major projects are comprised of improvements at the IWTF south of the City of Salinas in unincorporated Monterey County and the Airport Lift Station (Airport LS) at the south end of Airport Boulevard near Hansen Street in the City. Capital improvements include:
Aeration Lagoon expansion and addition of aerators
Pond automation and flow distribution
Pond 3 Pump Station expansion
Pond aeration motor efficiency upgrades
Influent Pump Station flow metering
Electrical equipment relocation
Backup power
Airport Lift Station upgrades
Page | 3
City staff and Carollo met with largest five IWTF industrial dischargers in separate meetings to discuss the upcoming projects and the results of the Rate Study. Two additional meetings were also held prior to the Public Hearing to give all industrial customers an opportunity to discuss and ask questions regarding the planned capital improvements and Rate Study results.
The attached Industrial User Rates and Fees Technical Memorandum also evaluated connection fees and rates for water deliveries for recycled water (recycled water rates) in addition to the industrial dischargers rates. Neither the connection fees nor the recycled water rates are subject to proposition 218 processes. Therefore, only the industrial rates are being brought to Council for consideration and establishment at this time. The connection fees and recycled water rates will be presented to Council for approval at a later date.
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. Be cause 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 proposed establishment of new Industrial Wastewater rates meets the City Council’s Strategic Plan Initiative of Infrastructure and Environmental Sustainability. The new rates will provide for fiscally responsible management and funding of the Industrial Waste Enterprise Fund, which will better allow for the improvement of City facilities.
DEPARTMENTAL COORDINATION:
This project has and will continue to rely on coordination between the Water, Waste and Energy (WWE) division in Public Works, Finance, Legal and the City Manager’s office. WWE oversee s the overall execution of the Rate Study , while coordinating with the City Manager, and with Finance and Legal for review of documents for consistency with established procedures, policy and statues.
FISCAL AND SUSTAINABILITY IMPACT:
The proposed rate increases will provide an additional $ 7.5 million in funds generated for the Industrial Waste Enterprise Fund from FY 2024 through FY 2028. During this five-year period, the rate increases provide enough revenue in each year to meet debt service coverage requirements of existing and projected debt, as well as allows the fund to maintain a minimum amount of cash Page | 4
on hand greater than or equal to 90 days of operation and maintenance expenditures to help mitigate any liquidity risks. The rate increases will help to fund necessary capital improvements to the IW CCS, as well as provide for financial longevity and ensure reliable, uninterrupted operation of the City’s industrial waste system.
AVAILABLE ALTERNATIVES
Council has the following alternatives:
1. Approve a resolution establishing new Industrial Wastewater rates for fiscal years 2024 through 2028, starting July 1, 2023; or
2. Reject approving the proposed new Industrial Wastewater rates. This alternative will delay the needed repair and expansion of the facility, possibly delaying planned industrial capacity growth.
ATTACHMENTS:
Industrial User Rates and Fees Technical Memorandum
Resolution
Exhibit A - Industrial Wastewater Users List
Exhibit B - Proposed Industrial Rate Structure
Page | 1
RESOLUTION NO. __________ (N.C.S.)
A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF NEW INDUSTRIAL WASTEWATER RATES FOR FISCAL YEARS 2024 THROUGH 2028
WHEREAS, the City of Salinas owns and operates an Industrial Wastewater Collection and Conveyance System (IWCCS) for industries within its service area; and WHEREAS, the City of Salinas levies charges for industrial wastewater services to the users shown in Exhibit A of this Resolution pursuant to Section 36 -27 of the Salinas Municipal Code; and
WHEREAS, the City of Salinas has established an Industrial Waste Enterprise Fund to fund the operations, maintenance, and capital improvements needed for the IWCCS; and WHEREAS, the City of Salinas commissioned Carollo Engineers to determine the annual rate-based revenue requirements of providing industrial wastewater collection services to users of that service; and
WHEREAS, the City Council has initiated proceedings to revise the industrial wastewater charges with an increase of 22% beginning on July 1, 2023, 22% beginning on July 1, 2024, 2% on July 1, 2025, 2% on July 1, 2026, and 2% on July 1, 2027; and WHEREAS, The proposed industrial wastewater rates implement a four-part rate structure consisting of the following components: 1) A fixed monthly service charge (flat fee), 2) A monthly allocation reservation charge which is based on monthly allocation, 3) A variable flow charge for the amount of wastewater contributed to the industrial waste system, and 4) A variable charge for the pounds of BOD in wastewater contributed; and WHEREAS, in accordance with Article XIID, §6 of the California Constitution, the Rate Study demonstrate that:
a. The revenues derived from the Industrial Wastewater Collec tor Fee do not exceed the Page | 2
funds required to provide industrial wastewater service. The rate is established at a level needed to fund on-going operation and maintenance of the IWCCS and to meet capital expenditures on the IWCCS;
b. The revenues derived from the Industrial Wastewater Collector Fee will not be used for any purpose other than industrial wastewater services;
c. The Industrial Wastewater Collector fee will not exceed the cost of providing industrial wastewater service attributable to each user;
d. The Industrial Wastewater Collector Fee pays for provision of industrial wastewater service and not for general governmental services.
WHEREAS, mailed notification of the proposed change to the calculation of the Industrial Wastewater Collector Fee was sent to all users on February 17th, 2023, in compliance with the required 45-day notice and comment period in accordance with Proposition 218 (Article XIID, §6 of the California Constitution); and
WHEREAS, this public hearing is conducted regarding the proposed changes to the Industrial Wastewater Collector Fee and all protests against the rates and other comments that will be considered.
Page | 3
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALINAS, consistent with the authority granted to the City Council:
1) The foregoing recitals are all true and correct and are incorporated herein by reference. 2) The City Council approves the rate structure shown in Exhibit B of this Resolution, which is incorporated herein by reference to be effective July 1, 2023, for an increase of 22% beginning on July 1, 2023, 22% beginning on July 1, 2024, 2% on July 1, 2025, 2% on July 1, 2026, and 2% on July 1, 2027 and implements a new four -part rate structure effective July 1, 2023.
PASSED AND APPROVED on this 4th day of April 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
___________________________
Kimbley Craig, Mayor
ATTEST:
_____________________________
Patricia M. Barajas, City Clerk
Page | 4
EXHIBIT A
Industrial Wastewater Users List
Braga Fresh Foods
Central Coast Cooling
Cool Pacific
Dandy Cooling
Fresh Express, Inc. (2 accounts)
General Farms Investment
GreenGate Fresh, LLLP
Growers Ice Co.
International Paper Co.
Ippolito International
Mann Packing
Monterey Fish Co.
Nunes Cooling, Inc.
OrganicGirl
SmartWash Solutions
Taylor Farms California (4 accounts)
Taylor Farms Retail, Inc.
Titan Frozen Fruit
WestRock
Page | 5
EXHIBIT B
Proposed Industrial Rate Structure
The proposed industrial wastewater rates are comprised of four components as shown in the table and detailed below:
A fixed monthly service charge (flat fee).
A monthly allocation reservation charge (flat fee) based on monthly allocation. A variable flow charge for the amount of wastewater contributed to the industrial waste system.
A variable BOD charge for the pounds of BOD in wastewater contributed.
Current Proposed Proposed Proposed Proposed Proposed
MONTHLY INDUSTRIAL WASTEWATER RATES 2023 2024 2025 2026 2027 2028 Annual Increase 22% 22% 2% 2% 2%
MONTHLY FIXED CHARGES
Monthly Service Charge (per account) 415.00$ 263.00$ 321.00$ 327.00$ 334.00$ 341.00$ Reserved Allocation Charge (per MG allocation) - 91.00$ 111.00$ 113.00$ 115.00$ 117.00$
VOLUMETRIC RATES
Flow (average monthly - $/MG) 1,036.00$ 1,389.00$ 1,695.00$ 1,729.00$ 1,764.00$ 1,799.00$ BOD (average monthly - $/lb) 0.28$ 0.29$ 0.35$ 0.36$ 0.37$ 0.38$
City of Salinas
Industrial Waste Treatment Facility
Improvements Project
Technical Memorandum
INDUSTRIAL USER RATES AND FEES
DRAFT | March 2023
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | i
pw://Carollo/Documents/CA/Salinas/201196-000000/03 Reports and Studies/02 Deliverables/Funding and Financing/Financial/TM_IndustrialUserRates&Fees Contents
Section 1 Background and Introduction 1
1.1 Study Background 1
1.2 Rate Development Process Overview 1
1.2.1 Revenue Requirements Analysis 2
1.2.2 Cost-of-Service Analysis 2
1.2.3 Rate Design 2
Section 2 Revenue Requirements Analysis 3
2.1 Revenue Requirements Prior to Rate Increases 3
2.1.1 Expenditures 3
2.1.2 Revenues 5
2.1.3 Cash Flow Test 5
2.1.4 Debt Coverage Test 5
2.1.5 Capital Planning and Reserves 6
2.2 Revenue Requirements with Recommended Rate Increase 6 Section 3 Cost of Service 7
3.1 Functional Cost Allocation 7
3.2 Rate Component Allocation 7
3.2.1 O&M Allocation 8
3.2.2 Allocation of Debt Service and Capital Expense 8
3.2.3 Allocation of FY 2024 Revenue Requirements 9
Section 4 Rate Design Analysis 10
4.1 Proposed Rate Structure 10
4.1.1 Monthly Fixed Charge 10
4.1.2 Reservation Capacity Charge 10
4.1.3 Flow Rate 10
4.1.4 BOD Rate 10
4.2 Proposed Rate Schedule 11
4.3 Rate Adoption 11
Section 5 Analysis of Water Delivery for Recycling 12
5.1 Revenue Requirement Analysis 12
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | ii
5.2 Cost Allocation and Water Demand Analysis 12
5.2.1 Operating Expenses 13
5.2.2 Capital Improvement Program 13
5.2.3 Debt Service 13
5.2.4 Water Delivery for Recycling Allocation Results 13
5.3 Rate Calculation 14
5.3.1 Proposed Rate Structure 14
5.3.2 Monthly Fixed Charge 15
5.3.3 Volume Rate 15
5.3.4 Rate Calculation Methodology 15
5.4 Calculation 15
5.5 Rate Adoption 16
Section 6 Connection Fee 17
6.1 Background 17
6.2 Statutory Considerations 17
6.3 Approach 18
6.4 Connection Fee Components 18
6.4.1 Calculating System Value 18
6.4.2 Calculating System Capacity 18
6.5 Connection Fee Methodology 19
6.6 Buy-In Methodology 19
6.7 Incremental Methodology 19
6.8 Hybrid Methodology 20
6.9 Industrial Wastewater Connection Fee 20
Tables
Table 1 Operating Expenditure Forecast ($ thousands) 3
Table 2 Annual Debt Service ($ thousands) 4
Table 3 Non-Operating Expenditure Forecast ($ thousands) 4 Table 4 Capital Expenditure Forecast ($ thousands) 4
Table 5 Revenue Forecast Prior to Rates and Fees Increase ($ thousands) 5 Table 6 Cash Flow Test Prior to Rates and Fees Increase ($ thousands) 5 Table 7 Debt Coverage Test Prior to Rates and Fees Increase ($ thousands) 6 INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | iii
Table 8 Reserves Target Test ($ thousands) 6
Table 9 Cash Flow with Recommended Revenue ($ thousands) 6 Table 10 Allocation of O&M Budget to Rate Components ($ thousands) 8 Table 11 Allocation of Debt Service and Capital to Rate Components ($ thousands) 9 Table 12 Projected FY 2024 Allocation of Rate Revenue Requirements to Rate Components ($ thousands) 9
Table 13 Current Industrial Wastewater System Rates 10
Table 14 Five-year Rate Schedule 11
Table 15 Capital Improvement Program Allocation 13
Table 16 Projected FY 2024 Revenue Requirements Allocated to Water Delivery Recycling 14 Table 17 Fixed Monthly Charge Calculation 15
Table 18 Volume Charge Calculation 15
Table 19 Proposed FY 2024 Rates for Water Delivery for Recycling 16 Table 20 Industrial Waste Connection Fee Calculations 20 Figures
Figure 1 Conceptual Overview of the Rate-Setting Process 2 Figure 2 FY 2024 Allocation Split Between Industrial Wastewater and Water Delivery for Recycling 14
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | iv
Abbreviations
$/AF cost per acre-foot
AF acre-feet
AWWA American Water Works Association
BOD biochemical oxygen demand
Carollo Carollo Engineers
CIP capital improvement program
City City of Salinas
CSIP Castroville Seawater Intrusion Project
Fac Plan Salinas Industrial Wastewater Capacity and Financial Analysis Report FY fiscal year
HUD United States Department of Housing and Urban Development IWCCS industrial waste collection and conveyance system IWTF industrial waste treatment facility
lb pounds
M1 Manual American Water Works Association M1 Manual: Principles of Water Rates, Fees, and Charges
M1W Monterey One Water
MCWRA Monterey County Water Resources Agency
MG million gallons
mgd million gallons per day
MOP manual of practice
MOP 27 Water Environment Federation Manual of Practice No. 27 Financing and Charges for Wastewater Systems
O&M operations and maintenance
PS pump station
PWM Pure Water Monterey
PWM Project Pure Water Monterey Groundwater Replenishment Project R&R repair and replacement
RTP regional treatment plant
Study industrial wastewater rate study
TM technical memorandum
VFD variable frequency drive
WEF Water Environment Federation
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 1
Section 1
BACKGROUND AND INTRODUCTION
The City of Salinas (City) owns and operates an industrial waste collection and conveyance system (IWCCS), which is separate from the City’s sanitary and storm sewer systems. The system accepts flow from local processing facilities, which are primarily for agricultural products, such as fresh produce washing and packaging operations. The wastewater is conveyed for disposal or recycling to the industrial waste treatment facility (IWTF) located south of the City along the Salinas River.
This technical memorandum (TM) provides a capacity fee model, rate model, and proposed rates for the industrial waste system. The proposed rates presented in this TM are based on projects developed in the Salinas Industrial Wastewater Capacity and Financial Analysis Report (Fac Plan), also prepared by Carollo Engineers (Carollo).
Twenty-three existing industries discharge to the IWTF with planned near-term development adding two new dischargers and longer-term development adding more. Permits are issued by the City to the industrial dischargers for three-year terms. Dischargers are charged monthly fees based on their average monthly flow and biochemical oxygen demand (BOD).
1.1 Study Background
The City retained Carollo, an independent rate consultant, to conduct an Industrial Wastewater Rate Study (Study) for the City’s industrial wastewater rates and forthcoming water delivery for recycling rates. The City’s last study was completed in May 2012, with the current rate and rate structure last updated January 1, 2013. The key driver for this rate study is significant upcoming capital costs associated with needed improvements and capacity expansions to IWTF and collection system. The Fac Plan identified approximately $28.0 million in near-term projects (including studies and investigations) and $41.5 million of long-term projects. Details of these project recommendations can be found in the Fac Plan. This Study is being conducted with the intent of establishing and implementing rates that would sufficiently finance these upcoming capital costs associated with collection system and IWTF expansion as well as typical annual system operations.
Another element of this Study is related to the development of an agreement between the City, Monterey County Water Resources Agency (MCWRA), and Monterey One Water (M1W) to deliver water for recycling from the IWTF. The IWTF has existing and proposed new infrastructure to transfer treated water to M1W’s Regional Treatment Plant (RTP) for further treatment and subsequent reuse by M1W and MCWRA. This rate study establishes an appropriate cost per acre-foot ($/AF) that M1W and MCWRA should pay to offset costs associated with water delivery for recycling.
1.2 Rate Development Process Overview
Carollo used an industry standard step-by-step approach when reviewing the City’s industrial wastewater rates. This approach is consistent with industry standards established within the Water Environment Federation (WEF) Manual of Practice (MOP) No. 27 Financing and Charges for Wastewater Systems (MOP 27).
This step-by-step approach is summarized and outlined in Figure 1.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 2
Figure 1 Conceptual Overview of the Rate-Setting Process
1.2.1 Revenue Requirements Analysis
The revenue requirements analysis tests the utility’s fiscal health. It compares the City’s forecasted revenues to its forecasted operations and maintenance (O&M) expenses, capital improvement costs, debt service, and reserve policies to determine the adequacy of the existing rates to recover costs. If the City falls short of any of these benchmarks, then rate revenue likely needs adjustments.
1.2.2 Cost-of-Service Analysis
The goal of the cost of service analysis is to identify an equitable and fair nexus between the costs incurred by the City and the rates assessed to each customer.
1.2.3 Rate Design
The rate design analysis ties together the preceding steps into final rates charged to each customer. The rates calculated in this step incorporate projected revenue requirements and the cost of service allocations into a fair and equitable cost recovery mechanism.
Revenue Requirement Analysis
Compares existing revenues of the City to
its operating, capital reserves, and policy
driven costs to establish the adequacy of
the existing cost recovery levels.
Cost-of-Service Analysis
Revenue requirements are assigned to
functional categories on a line-by-line
basis. Functional costs are allocated to
cost components based on engineeering
standards. Cost categories are further
allocated to each customer class based
on demand profiles.
Rate Design Analysis
The results of the customer class
allocation form the basis of the rate
design.
Rate Adoption
Adhere Propositon 218 process for City
Council to adopt and codify proposed
rates.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 3
Section 2
REVENUE REQUIREMENTS ANAL YSIS
The revenue requirements analysis has two main purposes – it serves as a means of evaluating each cost center’s fiscal health and adequacy of current rate levels; and it sets the basis for near- and long-term rate planning.
There are two tests utilized to define the recommended annual revenues necessary:
• Debt Service Coverage Test – Debt coverage is the amount of annual revenue in excess of the annual operating expenses and annual debt service that the City must generate. This is represented as a ratio of the annual debt service and is typically outlined in the official statement for each debt issuance. The City’s current debt coverage ratio minimum is 1.10 times the annual debt service.
However, the Study used a minimum of 1.20, as the City is in the process of applying for capital funding that may require a higher debt coverage ratio than the City’s existing requirement. • Reserve Test – End of year reserve balances for each of the City’s unrestricted reserves should meet minimum target balances.
If revenues fail only one of these tests, then that respective shortfall sets the revenue increase. If both tests are failed, the greater shortfall defines the required revenue increase.
Data was provided by City staff based on current projections for operating and non-operating expenditures, capital improvement program (CIP), debt service, as well as baseline revenues. The City also provided baseline reserve balances and restricted fund targets. Capital and operations costs will vary for a variety of reasons: Changes in flow discharges from industries, costs of consumables (such as electricity), pandemics, inflation, rainfall events, etc. The costs presented herein represent an estimate of the future costs required for the system.
2.1 Revenue Requirements Prior to Rate Increases
2.1.1 Expenditures
Table 1 summarizes the City’s operating and non-operating expenditures forecasted during the rate-setting period (fiscal year [FY] 2023 to FY 2028).
Table 1 Operating Expenditure Forecast ($ thousands)
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Salaries and Benefits $702 $724 $745 $885 $911 $938 Supplies and Materials $98 $101 $104 $107 $111 $114
Outside Services $638 $726 $759 $1,386 $1,779 $1,866
Other Charges $184 $252 $259 $267 $275 $283
Capital Outlay $19 $89 $2 $68 $120 $2
Total Operating Expenses $1,642 $1,891 $1,869 $2,713 $3,196 $3,203 Notes:
(1) T otals may not sum due to rounding .
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 4
Debt service during the study period consists of annual payments on outstanding and proposed debt obligations. Debt service on the existing 2015 Department of Housing and Urban Development (HUD) loan ends in FY 2025. Total proposed debt for the study period is $29.1 million, with $27.1 million to be issued during the rate-setting period. All proposed debt assumes a 30-year term and a 5.0 percent interest rate.
Total annual debt service payments range from $0.5 million to $1.9 million during the rate-setting period, as shown in Table 2.
Table 2 Annual Debt Service ($ thousands)
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Existing Debt Service $513 $519 $525 $- $- $-
Proposed Debt Service $- $887 $1,452 $1,452 $1,781 $1,781 Total Debt Service $513 $1,406 $1,977 $1,452 $1,781 $1,781 Notes:
(1) T otals may not sum due to rounding.
Debt service and cash or rate funded capital expenses are considered non-operating expenditures. Table 3 summarizes the City’s non-operating expenditures forecasted during the rate-setting period.
Table 3 Non-Operating Expenditure Forecast ($ thousands) Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Debt Service $513 $1,406 $1,977 $1,452 $1,781 $1,781 Rate Funded Capital $2,825 $691 $3,350 $3,100 $3,012 $2,581 Total Non-Operating Expenses $3,338 $2,097 $5,328 $4,552 $4,793 $4,362 Notes:
(1) T otals may not sum due to rounding.
Table 4 summarizes the City’s forecasted capital expenditures. Operating expenses are escalated annually by varying factors based on discussion with City staff. Most capital costs that were provided by City staff have been escalated to the respective years the costs are anticipated to occur in. In instances where capital costs were not already escalated by the City, costs were escalated annually by 3 percent.
Table 4 Capital Expenditure Forecast ($ thousands)
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Collection System $20 $1,289 $5,312 $2,503 $200 $800
Aeration Lagoon - Existing $654 $3,270 $1,526 $- $- $-
Selective Pond Flow Optimization $1,456 $7,279 $3,397 $- $- $- Pond 3 Pump Station (PS) Upgrade $255 $1,273 $594 $- $- $- Aeration Variable Frequency Drive
(VFD) Motor Upgrades $216 $1,080 $504 $- $- $-
Backup Power $- $- $618 $- $- $-
Treatment System - Future $- $- $- $333 $6,919 $1,427 Studies and Investigations $225 $- $- $- $- $-
Total Capital Expenses $2,825 $14,191 $11,950 $2,837 $7,119 $2,227 Notes:
(1) T otals may not sum due to rounding.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 5
2.1.2 Revenues
Table 5 summarizes the City’s forecasted revenues during the rate-setting period assuming no revenue increase to Charges for Service. There is an assumption of growth in industrial users accounts of one account annually in FY 2027 and FY 2028. There is also an assumption of connection fees revenue in FY 2027 and FY 2028 due to the assumed account growth. Connection fees are one-time fees assessed to new developments connecting to the industrial wastewater system. These fees are discussed in greater detail in Section 6 of this memo.
Table 5 Revenue Forecast Prior to Rates and Fees Increase ($ thousands) Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Operating Revenues
Charges for Services $2,900 $2,900 $2,900 $2,900 $3,323 $3,647 Other Revenues
Interest on Investments $47 $47 $47 $47 $47 $47
Connection Fee Revenue $- $- $- $- $4,424 $4,277
Revenues Prior to Increase $2,947 $2,947 $2,947 $2,947 $7,794 $7,971 Notes:
(1) T otals may not sum due to rounding.
2.1.3 Cash Flow Test
Table 6 summarizes the City’s forecasted revenues during the rate setting period, assuming no revenue increases. The City is projected to have a cash flow deficit beginning in FY 2023. However, in FY 2028 the City does have a cash flow surplus.
Table 6 Cash Flow Test Prior to Rates and Fees Increase ($ thousands) Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Revenues $2,947 $2,947 $2,947 $2,947 $7,794 $7,971 Expenses
Total Operating Expenses $1,642 $1,891 $1,869 $2,713 $3,196 $3,203 Debt Service $513 $1,406 $1,977 $1,452 $1,781 $1,781 Rate Funded Capital (PAYGO) $2,825 $691 $3,350 $3,100 $3,012 $2,581 Total Policy Expenditures $0 $0 $0 $0 $82 $0
Cash Flow Prior to Increase ($2,033) ($1,041) ($4,250) ($4,317) ($276) $407 Notes:
(1) T otals may not sum due to rounding.
2.1.4 Debt Coverage Test
Table 7 summarizes the debt coverage forecast during the rate-setting period. Debt service coverage is calculated as the ratio of the City’s net income to its annual debt service. Without rate increases, the City is projected to fall below its required debt service coverage ratio of 120 percent (1.20x) in FY 2024 through FY 2026. Growth projections and connection fee revenue in FY 2027 and FY 2028 bring the debt service coverage ration well over the 1.20x requirement.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 6
Table 7 Debt Coverage Test Prior to Rates and Fees Increase ($ thousands) Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Revenues $2,947 $2,947 $2,947 $2,947 $7,794 $7,971 IWTF and IWCCS Expenses $1,642 $1,891 $1,869 $2,713 $3,196 $3,203 Debt Service $513 $1,406 $1,977 $1,452 $1,781 $1,781 Debt Coverage (1.20x)
Coverage Ratio Prior to Increase 2.55 0.75 0.55 0.16 2.58 2.68
2.1.5 Capital Planning and Reserves
The projected reserve balances for the Industrial Wastewater Operating Fund are presented in Table 8.
Starting reserve fund balances for FY 2023 and current targets were provided by City staff. The City is not projected to meet its reserve policy targets throughout the rate-setting period, as shown in Table 8.
Table 8 Reserves Target Test ($ thousands)
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Beginning Balance $8,790 $6,758 $6,354 $3,521 $706 $2,334 Cash Flows ($2,033) ($1,041) ($4,250) ($4,317) ($276) $407 Ending Balance $6,758 $5,716 $2,104 ($796) $430 $2,741
Minimum Target $405 $466 $461 $669 $788 $790
Operating Revenue Balance
Above/(Under) Target $6,353 $5,250 $1,644 ($1,465) ($358) $1,951 Notes:
(1) T otals may not sum due to rounding.
2.2 Revenue Requirements with Recommended Rate Increase Based on the projected deficits in the debt service coverage test presented in Table 7, Carollo recommends annual revenue increases of 22.0 percent for FY 2024 and FY 2025, and 2.0 percent annual increases thereafter. This revenue plan shown in Table 9 is projected to generate enough revenue to meet all three financial tests and provide adequate financial capacity for unexpected future cashflow events.
Table 9 Cash Flow with Recommended Revenue ($ thousands) Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Annual Rate Increase 0.0% 22.0% 22.0% 2.0% 2.0% 2.0%
Revenues before Adjustment $2,900 $2,900 $2,900 $2,900 $3,323 $3,647 Additional Revenues from Increase $- $638 $1,416 $1,503 $1,823 $2,114 Non-Operating Revenues $47 $47 $47 $47 $4,471 $4,324
Less: Total Expenses ($4,980) ($3,988) ($7,197) ($7,264) ($8,071) ($7,565) Cash Flow After Increases ($2,033) ($403) ($2,833) ($2,815) $1,546 $2,520 Notes:
(1) T otals may not sum due to rounding.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 7
Section 3
COST OF SERVICE
The industrial wastewater system cost of service analysis is consistent with the MOP 27 standard methods to allocate the revenue requirements based on discharge characteristics. This analysis creates an equitable and fair basis for collecting rates from each customer. In the case of the City’s industrial waste system, there is only one customer class, industries. This analysis initially allocates costs to functional categories based on how the City’s system is designed and operated.
The functional cost allocation takes these projected revenue needs and allocates them to individual functional costs related to the City’s collection, treatment, and administrative processes. Each of the City’s expenses are allocated based on what function it serves. In the City’s case, these functions are flow, BOD, customer service and water delivery for recycling. Water delivery for recycling costs will not be recovered from industrial customers. The cost of service analysis for water delivery for recycling is discussed in detail in Section 5.
3.1 Functional Cost Allocation
The functional cost allocation assigns the revenue requirements for the test year (FY 2024) by major function. The Study developed a list of functions specific to the industrial wastewater system. Each functional category is allocated to specific rate components, which can easily be assigned to rates. The functional categories used for the City are listed below. • Influent PS.
• Aeration lagoon.
• Percolation ponds.
• Transfer PS.
• Water delivery for recycling.
• Solids removal.
• Backup power.
• Lift stations.
• Pipelines.
• Stormwater.
• Lab.
• Customer.
• As all others.
The City’s industrial waste budget was analyzed line by line to allocate each line item to one or more functional categories.
3.2 Rate Component Allocation
Industrial wastewater costs consist of both volumetric components and non-volumetric components. The volumetric components include flow and strength – BOD. The non-volumetric component includes costs associated with administrative functions.
The following describes each of the industrial wastewater rate components for the City:
Flow: Operating and capital costs incurred by the industrial waste system to handle the quantity of flows discharged to or collected by the system.
BOD: During treatment, microbial organisms consume dissolved oxygen while oxidizing the organic matter present in wastewater. BOD measures the quantity of oxygen required for that process. Expenses include costs incurred to remove and dispose of organic compounds.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 8
Customer Service: Costs related to administrative support activities, including accounting and customer service. These costs are common to all customers and are reasonably uniform across the different customer classes.
Carollo reviewed the operating budget, CIP, and debt service and allocated each line item to the appropriate functional category based on direction from City staff. The functionalized capital, debt, and O&M are then allocated to the appropriate rate components.
3.2.1 O&M Allocation
Carollo collaborated with City staff to allocate the industrial waste system operating expenses to functional categories and then to rate components. Table 10 summarizes the allocation of the functionalized O&M expenses to rate components for FY 2024.
Table 10 Allocation of O&M Budget to Rate Components ($ thousands) Description Total Value Flow BOD Customer
Service
Water
Delivery for
Recycling
Influent PS $155 100% 0% 0% 0%
Aeration Lagoon 674 0% 100% 0% 0%
Percolation Ponds 185 60% 40% 0% 0%
Transfer PS 42 100% 0% 0% 0%
Water Delivery for Recycling 65 0% 0% 0% 100%
Solids Removal 60 0% 100% 0% 0%
Backup Power 6 30% 70% 0% 0%
Lift Stations 52 100% 0% 0% 0%
Pipelines 12 100% 0% 0% 0%
Stormwater 12 100% 0% 0% 0%
Lab 47 30% 70% 0% 0%
Customer 71 0% 0% 100% 0%
As All Others 510 29% 61% 5% 5%
Total ($) $1,891 $546 $1,158 $98 $89
Total (%) 28.9% 61.2% 5.2% 4.7%
Notes:
(1) T otals may not sum due to rounding.
3.2.2 Allocation of Debt Service and Capital Expense
Carollo reviewed the existing debt documents provided by City staff and collaborated with staff to allocate CIP to functional categories and then rate components. Capital costs were allocated based on the near-term CIP. Existing debt service is allocated 100 percent to flow, while future debt service is based on the near-term CIP.
Table 11 summarizes the allocation of debt service and CIP to rate components.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 9
Table 11 Allocation of Debt Service and Capital to Rate Components ($ thousands) Description Total Value Flow BOD Customer
Service
Water
Delivery for
Recycling
Existing Debt Service $518 100% 0% 0% 0%
Debt Service - CIP 887 41% 39% 0% 20%
Non-Debt Capital Expense 691 41% 39% 0% 20%
Total ($) $2,097 $1,166 $615 $0 $316
Total (%) 55.6% 29.3% 0.0% 15.1%
Notes:
(1) T otals may not sum due to rounding.
3.2.3 Allocation of FY 2024 Revenue Requirements
The revenue requirements are allocated using the allocation percentages discussed previously in this section. Table 12 summarizes the allocation of FY 2024 revenue requirements into the rate components. As shown in the below table, the City’s costs are primarily split between flow (45 percent) and BOD (42 percent).
Table 12 Projected FY 2024 Allocation of Rate Revenue Requirements to Rate Components ($ thousands) Description FY 2024
Total Flow BOD Customer
Service
Water
Delivery for
Recycling
O&M Expenses $1,891 $546 $1,158 $97 $89
2015 HUD Loan Debt Service $518 $518 $- $- $-
CIP Debt Service $887 $364 $345 $- $178
Cash-funded Capital $691 $284 $269 $- $138
Total Expenses $3,988 $1,713 $1,773 $97 $405
Less: Cash Balance ($403) ($108) ($257) ($22) ($16)
Less: Other Non-rate
Revenue ($47) ($13) ($30) ($3) ($2)
Total ($) $3,538 $1,592 $1,486 $73 $388
Total (%) 45.0% 42.0% 2.0% 11.0%
Notes:
(1) T otals may not sum due to rounding.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 10
Section 4
RATE DESIGN ANAL YSIS
The rate design analysis ties together the prior two steps (revenue requirement analysis and cost of service analysis) into fair and equitable rates assessed to each customer. The City and Carollo explored alternative rate structure options, with the goal of equitable cost recovery and revenue stability for the utility.
Current rates shown in Table 13 were last updated January 1, 2013. The current rate structure has the following components:
• Monthly minimum service charge per account regardless of wastewater flow or BOD contributed. • Flow rate per MG of average monthly flow.
• BOD rate per pound of average monthly BOD contributed.
Table 13 Current Industrial Wastewater System Rates
Parameter Monthly Fee, $/unit
Flow – Average Monthly $1,036/million gallons (MG)/month BOD – Average Monthly $0.28/pounds (lb)/month
Minimum Industrial Waste Service Charge $415/month
4.1 Proposed Rate Structure
4.1.1 Monthly Fixed Charge
The fixed monthly charge will recover costs related to administrative support activities. These costs are common to all customers and are reasonably uniform across the different customer classes. This charge is a monthly fixed amount.
4.1.2 Reservation Capacity Charge
The reservation capacity charge recovers a portion of the debt service payment cost for CIP related debt.
The reservation capacity charge will be charged per MG of allocated capacity. This component of the customer bill will not vary month to month.
4.1.3 Flow Rate
The flow rate recovers its proportionate share of operating, capital, and debt service payment costs. The flow rate is per MG of average monthly flow.
4.1.4 BOD Rate
The BOD rate recovers its proportionate share of operating, capital, and debt service payment costs. The flow rate is per pounds of average BOD.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 11
4.2 Proposed Rate Schedule
Table 14 illustrates wastewater rates for industrial customers throughout the rate setting period.
Table 14 Five-year Rate Schedule
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Monthly Service Charge – per account $415 $263 $321 $327 $334 $341 Reservation Capacity Charge – per MG
of reserved capacity $- $91 $111 $113 $115 $117
Flow – per MG of average monthly $1,036 $1,389 $1,695 $1,729 $1,764 $1,799 BOD – per lb of average monthly $0.28 $0.29 $0.35 $0.36 $0.37 $0.38 Notes:
(1) B ill impacts will be variable per industry due to rate structure change and cost- of-service analysis results.
4.3 Rate Adoption
Property-related fees and charges in California are governed by Proposition 218, which dictates that rates do not exceed the proportional cost of service. In addition to the proportionality requirements, Proposition 218 requires public agencies in California to meet procedural requirements for adoption of new or increased rates for property-related fees. The City must hold a public hearing to consider the proposed rate increases and must provide written notice at least 45 days in advance of said hearing to all customers subject to the proposed new or increased rates. Any industry user that is directly liable to the public agency for payment of the property-related fees may submit a written protest against the new or increased rates at any time until the close of the public hearing. City Council may not adopt the proposed new or increased rates if more than 50 percent of the industry users directly liable for payment and with operations upon properties which the proposed rates will be imposed, submit written protests.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 12
Section 5
ANAL YSIS OF WATER DELIVERY FOR RECYCLING
The IWTF has been identified as a key source for water that may be recycled in Monterey County. The Pure Water Monterey (PWM) Groundwater Replenishment Project (original and expanded PWM Project) creates up to 10,150 acre-feet (AF) per year of safe, reliable and drought resilient water supplies for Monterey County communities. This helps the region respond to droughts, sensitive species and habitat needs, and groundwater adjudication and overdraft. M1W owns and operates the treatment associated with PWM. In 1998, the MCWRA initiated operation of the Castroville Seawater Intrusion Project (CSIP) to irrigate agricultural lands in the Salinas Valley with water delivery for recycling, offsetting groundwater use. Due to increased conservation M1W has seen reduced influent flows. At the same time because of the extended drought conditions both M1W and MCWRA have recognized the increased need for water delivery for recycling in the region.
The City’s proposed improvements to the IWTF system would provide operational and efficiency improvements as well as capacity reliability and redundancy enhancements for the industrial users while maximizing the potential for additional water delivery for recycling.
The City is working with M1W and MCWRA to develop a long-term agreement for recycling of the IWTF effluent. The IWTF has existing infrastructure to transfer treated water to M1W’s RTP for further treatment and subsequent reuse and there are plans for implementing new infrastructure to improve reliability and redundancy for the purpose of water delivery. This Study establishes an appropriate dollar per AF cost to offset expenses related to the delivery of water for recycling. This section summarizes and presents the results of Carollo’s analysis of cost of service of water delivery for recycling, along with the assumptions and inputs used, and the methodological basis of the analysis. The analysis herein sets the framework for new charges and fees associated with water delivery for recycling, but ultimately these will be outlined in the City’s final agreement terms with M1W and MCWRA. Thus the final agreement may differ from fees and charges outlined in this TM.
Note that the water delivery for recycling rates are not subject to proposition 218 processes as discussed in further detail in Section 5.5.
5.1 Revenue Requirement Analysis
The first step in calculating rates for water delivery for recycling is the revenue requirement analysis. This compares the City’s forecasted revenues to its forecasted operating and capital costs. There are multiple revenue requirement tests that can be considered such as cash flow, debt coverage, and reserves tests. If a deficit occurs, rates are recommended to increase until there is no longer a shortfall.
5.2 Cost Allocation and Water Demand Analysis
The City has not yet established separate accounting for water delivery for recycling and industrial wastewater; all expenses are tracked as one enterprise. However, the projected expenses – both operating and non-operating – will be accounted for separately and proportionately allocated to industrial wastewater and water delivery for recycling. For this analysis, the test year (FY 2024) expenses summarized in the previous section were allocated between industrial wastewater and water delivery for recycling.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 13
5.2.1 Operating Expenses
For the O&M budget, this Study provides an estimate of the percentage of costs associated with water delivery for recycling. This Study allocated the portion of budgeted costs based on these allocations.
Operating expenses were organized into salaries and benefits, supplies and materials, outside services other charges, and capital outlay. Within these categories, the City allocated some costs to water delivery for recycling. Based on discussions with M1W and MCWRA, a five-year average annual demand for water delivery for recycling is 1,000 AF per year. This value is used for the financial analysis used in this TM. Actual demand may vary for a variety of reasons, including drought conditions.
5.2.2 Capital Improvement Program
Carollo and City staff reviewed all capital improvement projects, and they were allocated in whole or in part to the system for water delivery for recycling based on the estimated level of benefit to the system. There were two projects partially or totally allocated to water delivery for recycling:
• Selective Pond Flow Optimization (partial allocation). • Pond 3 PS Upgrade (total allocation).
Table 15 shows the six-year CIP totals by project category and the allocation between industrial wastewater and water delivery for recycling.
Table 15 Capital Improvement Program Allocation
Projects FY 2023 - FY 2028(2) Industrial Wastewater
% Allocation
Water Delivery for
Recycling
Collection System $10,124 100.0% 0.0%
Aeration Lagoon - Existing 5,451 100.0% 0.0%
Selective Pond Flow Optimization $12,131 50.0% 50.0%
Pond 3 PS Upgrade $2,122 0.0% 100.0%
Aeration VFD Motor Upgrades $1,800 100.0% 0.0%
Backup Power $617 100.0% 0.0%
Treatment System - Future $8,679 100.0% 0.0%
Studies and Investigations $225 100.0% 0.0%
Total CIP $41,149 $32,911 $8,237
Total % Allocation 80.0% 20.0%
Notes:
(1) All dollars in thousands.
(2) T otals may not sum due to rounding .
5.2.3 Debt Service
CIP-related debt service was based on the allocation of the six-year (FY 2023 to FY 2028) CIP associated with water delivery for recycling. No existing debt service was allocated to water delivery for recycling.
5.2.4 Water Delivery for Recycling Allocation Results The share of expenses in FY 2024 allocated to water delivery for recycling is shown in Table 16.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 14
Table 16 Projected FY 2024 Revenue Requirements Allocated to Water Delivery Recycling Description FY 2024
Total
Industrial
Wastewater
Water Delivery
for Recycling
Customer
Service(2)
O&M Expenses $1,891 $1,705 $89 $97
2015 HUD Loan Debt Service $518 $518 $- $-
Debt Service - CIP $887 $709 $178 $-
Cash-Funded Capital $691 $553 $138 $-
Total Expenses $3,988 $3,486 $405 $97
Less: Cash Balance ($403) ($365) ($16) ($22)
Less: Other Non-rate Revenue ($47) ($43) ($2) ($3)
Revenue Requirement $3,538 $3,077 $388 $73
Revenue Requirement Allocation 87.0% 11.0% 2.0%
Notes:
(1) All figures in thousand dollars.
(2) C ustomer service is further allocated between industrial waste and water delivery for recycling based on total number of accounts (22 industrial customers and 1 water delivery for recycling customer).
Figure 2 shows the final FY 2024 revenue requirement split between industrial wastewater and water delivery for recycling once the customer costs were allocated.
Figure 2 FY 2024 Allocation Split Between Industrial Wastewater and Water Delivery for Recycling
5.3 Rate Calculation
5.3.1 Proposed Rate Structure
As part of the Study, the City and Carollo explored alternative rate structure options, with the goal of equitable cost recovery for the City and monthly bill stability for M1W and MCWRA. After discussions with City staff, this Study recommends the following rate structure.
Industrial
Wastewater
89%
Water Delivery for
Recycling
11%
FYE 2024
Revenue Requirement = $3.54 M
$ 3.15 M
$ 0.39 M
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 15
5.3.2 Monthly Fixed Charge
The fixed monthly charge will recover costs related to administrative support activities. These costs are common to all customers and are reasonably uniform across the different customer classes. The purpose of a fixed charge is to provide both the City and M1W and MCWRA financial predictability and stability despite potential variability in water delivery for recycling use. The debt service payment cost for CIP related debt is also included in the fixed monthly charge.
5.3.3 Volume Rate
The volume rate recovers the operating and remaining capital costs incurred by the industrial wastewater system to manage and treat wastewater to a standard required by its waste discharge requirements. The management includes efforts to maximize the wastewater available for recycling while treatment is to make the water more suitable for recycling than if left untreated.
5.3.4 Rate Calculation Methodology
To calculate the rates, Carollo took the following step-by-step approach:
1. Calculate the total revenue requirements projected for FY 2024 for water delivery for recycling.
2. Separate those costs into two categories:
a. Customer (administration-related) and debt service costs. b. All other water delivery for recycling related costs.
3. Divide the customer and debt service costs by 12 months to get the monthly fixed charge.
4. Divide all other costs by the total projected FY 2024 volume of water delivery for recycling. This provides the volume rate ($/AF).
5.4 Calculation
The calculation of each rate component for water delivery for recycling is shown in Table 17.
Table 17 Fixed Monthly Charge Calculation
Description Test Year - FY 2024
Customer/Administration Costs $3,297
Debt Service Costs $177,562
Total Costs $180,859
Months 12
Fixed Monthly Charge per Month $15,072
The calculation of the volume rate is shown in Table 18.
Table 18 Volume Charge Calculation
Description Test Year - FY 2024
All other related costs for water delivery for recycling $209,977 Projected flow to M1W and MCWRA for water
delivery for recycling (AF) 1,000
Volume Rate ($/AF) $210
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 16
Table 19 shows the recommended FY 2024 fixed monthly charge and volume rate for water delivery for recycling. It is recommended that both the fixed and volume components of the rates are escalated annually by the same percentages proposed in the industrial wastewater rate adjustments.
Table 19 Proposed FY 2024 Rates for Water Delivery for Recycling Existing Rate Class FY 2024
Fixed Monthly Charge (dollars per month) $15,072
Volume Rate ($/AF) $210
All in $/AF(1) $391
Notes:
(1) A ll in cost is the total water delivery for recycling revenue requirement divided by 1,000 AF.
5.5 Rate Adoption
Property-related fees and charges in California are governed by Proposition 218, which dictates that rates do not exceed the proportional cost of service. Because water delivery for recycling is an optional service in the City, and thus not a property-related fee, Proposition 218 does not extend to the City’s rates for water delivery for recycling. However, the City’s industrial wastewater rates are governed by Proposition 218.
Therefore, any revenues recovered by the industrial wastewater rates are attributable to the costs to serve those users. Similarly, costs attributable to serving water delivery for recycling to M1W and MCWRA will be recovered through a separate revenue stream. In conjunction with this analysis, Carollo conducted an industrial wastewater comprehensive rate study. That study allocated costs directly to water delivery for recycling forming the basis for this rate analysis.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 17
Section 6
CONNECTION FEE
6.1 Background
Connection fees, sometimes referred to as capacity fees or system development charges, are one-time fees assessed on new system connections for industrial waste service. The City builds this system based on future estimates of capacity required to serve industrial customers. The connection fee quantifies the cost to create system capacity to serve a new connection.
The City does not currently charge a connection fee to new customers connecting to the industrial wastewater system. Carollo relied on industry best practice and California statutory guidance when developing the analysis in the Study. As with any fee analysis, the City prioritizes cost of service as a foundation of setting the connection fee. Several additional key criteria were at the center of this analysis:
• Does the connection fee represent a reasonable nexus to the costs incurred by the City on behalf of future customers and the benefits received?
• Is the connection fee methodology consistent with standards established in the American Water Works Association (AWWA) M1 Manual: Principles of Water Rates, Fees, and Charges (M1 Manual), and the MOP 27?
• Do the methodology and the resulting recommendations meet City policies and adhere to applicable legal requirements?
• Is the allocation approach consistent with industry practices and relevant California statutory requirements, particularly Government Code §54999.7 and §66013? • Is it expected that the allocation approach will remain appropriate for use by the City in the future? • Is the fee equitable for current and future ratepayers and do they reflect system investment contributions?
Note that the connection fees are not subject to the proposition 218 process, as it is a one-time fee for the developer versus an ongoing fee for service for the end user or property owner. Connection fees are governed under a different code, discussed in the section below.
6.2 Statutory Considerations
Connection fees, also known as impact fees or capacity charges, in California are subject to the requirements of Government Code Sections §54999.7 and §66013. Connection fees are “charges for facilities in existence at the time the charge is imposed or charges for new facilities to be constructed in the future which are of benefit to the person or property being charged.” Section §66013 provides that capacity charges “shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed.” Section §54999.7 establishes a similar cost of service requirement for serving public agencies, including schools.
This analysis should not be considered a legal opinion or guidance, but rather, a documentation of data and assumptions that support the City’s connection fee as a reasonable recovery of costs from new connections for providing industrial wastewater service.
INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 18
6.3 Approach
This fee was calculated based on anticipated near-term and long-term CIP projects required to increase the capacity of the IWCCS and IWTF. The connection fee is calculated for the anticipated users that have been identified as future tenants to the Salinas Ag Industrial Center and Merrill Street Campus. These users are anticipated to connect to the system between 2027 and 2030.
The connection fee is based on a relatively straightforward calculation: Divide system value by system capacity, yielding an estimate of the cost to build capacity for one baseline connection. This is demonstrated in Equation 1.
Equation 1 Connection Fee Conceptual Formula
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐹𝐹𝐶𝐶𝐶𝐶 = 𝑆𝑆
𝑆𝑆𝑆𝑆𝐶𝐶
𝐶𝐶𝑆𝑆 𝑉𝑉
𝑉𝑉𝑉𝑉𝑉𝑉
𝐶𝐶
𝑆𝑆
𝑆𝑆𝑆𝑆𝐶𝐶
𝐶𝐶𝑆𝑆 𝐶𝐶
𝑉𝑉
𝐶𝐶𝑉𝑉
𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆
Despite this simple equation, quantifying system value and capacity inputs can be complex and will vary from utility to utility based on several factors, including but not limited to:
• Age, size, and density of the system.
• Planned expansion capital projects.
• Anticipated growth.
• Available source of water supply.
• Ability to discharge treated industrial wastewater.
Selecting the most appropriate methodology for any agency depends on the nature of the system, the level of planned investment, and the projected need for system capacity. The methodologies available and the rationale behind choosing each is further detailed later in this section.
An important consideration – and what often presents the most difficulty – is using a system value assumption that matches the system capacity assumption. The two should be in alignment. System value should not be included that is not represented by the system capacity, and vice versa.
This step is further complicated by the nature of investments, as it is sometimes challenging to delineate the infrastructure (or a portion thereof), repairs, or replacements serving only future connections.
6.4 Connection Fee Components
6.4.1 Calculating System Value
The first component of the capacity fee is system value. This can be the value of the existing system, future system, or a combination of both, depending on which methodology is chosen. Regardless of the methodology selected, it is vital that this value represents the capacity (not demand) served in the denominator.
6.4.2 Calculating System Capacity
The denominator of the capacity fee is system capacity. For the IWCCS system, calculation is straightforward using million gallons per day (mgd) as the per unit quantity to be divided into system value and yield a per unit fee.
One challenge is determining “true” system capacity. Using an example of the utility with 50 mgd of treatment capacity, total system capacity may differ from that due to bottlenecks in the system that limit new connections. For instance, the treatment plant may be able to accept flow of up to 50 mgd based on INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 19
capacity at the headworks, but there are treatment components that are substantially less, such as firm pumping capacity or seasonal discharge limits on a receiving stream that are substantially less. Therefore, it is important to not just look at the rated capacity but at the whole system and identify where the true bottlenecks to new connections are.
6.5 Connection Fee Methodology
There are three widely accepted methodologies for calculating connection fees, with two primary methods being the buy-in and incremental, and a combination of the two called the hybrid method. For this Study, Carollo calculated connection fees using the incremental method.
6.6 Buy-In Methodology
The buy-in method is most appropriate when existing capacity is sufficient to serve both existing and projected future connections and capital investment projects for new capacity are minimal. Utilities that fit this profile typically have some “buffer capacity” at hand where new connections can benefit from existing capacity that has been built before the agency needs to plan further expansion.
The purpose of the buy-in method is to recover costs that have already been incurred by the City. Existing customers have paid for this system over time through their user rates (through direct capital financing or retired debt). The buy-in method for a connection fee provides a mechanism to reimburse existing system users for carrying the costs of constructing system capacity that is available for future users.
Equation 2 Buy-In Connection Fee Formula
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐹𝐹𝐶𝐶𝐶𝐶 = 𝐸𝐸
𝐸𝐸𝐶𝐶𝑆𝑆
𝐶𝐶𝐶𝐶𝐶𝐶𝐸𝐸 𝑆𝑆
𝑆𝑆𝑆𝑆𝐶𝐶
𝐶𝐶𝑆𝑆 𝑉𝑉
𝑉𝑉𝑉𝑉𝑉𝑉
𝐶𝐶
𝐸𝐸
𝐸𝐸𝐶𝐶𝑆𝑆
𝐶𝐶𝐶𝐶𝐶𝐶𝐸𝐸 𝑆𝑆
𝑆𝑆𝑆𝑆𝐶𝐶
𝐶𝐶𝑆𝑆 𝐶𝐶
𝑉𝑉
𝐶𝐶𝑉𝑉
𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆 (𝑆𝑆𝐸𝐸𝑚𝑚)
6.7 Incremental Methodology
In contrast with the “backward-looking” buy-in method that looks at historical system investment and capacity, the incremental method is “forward-looking” based on planned expansion and growth of the system. Where the buy-in methodology looks at the unit cost of existing capacity in the system, the incremental methodology reflects the marginal cost of adding capacity to a system that cannot serve forecasted demand with existing infrastructure. The incremental method can be neatly summed up by the philosophy of “growth pays for growth.” There are two components to the incremental methodology: future expansion CIP and available existing capacity.
To estimate the cost of future capacity, the CIP is allocated to either the repair and replacement (R&R) of existing assets or the installation of new assets for new capacity. The costs are allocated in present day dollars, regardless of project timing.
Not all projects fit entirely in one allocation or the other. Some projects may serve both categories. For instance, pipe R&R can have an expansion element to it if the pipe replacement is upsized from the original pipe diameter and adds capacity. Projects can also serve to bolster resiliency, rather than expanding or replacing existing capacity. Once the projects are allocated between R&R and growth, the expansion CIP portion of the equation is ready.
When there is available existing capacity within the built system that is being repaired or replaced as a prerequisite to supporting new connections, it is appropriate to include that capacity in the incremental methodology because it was built not for current users but for future users. To estimate this value of the existing system available for connections, this analysis multiplies the value of the existing system from the INDUSTRIAL USER RATES AND FEES | INDUSTRIAL WASTE TREATMENT FACILITY IMPROVEMENTS PROJECT | CITY OF SALINAS DRAFT | MARCH 2023 | 20
buy-in methodology by the percent of total capacity that is subscribed. Total subscribed capacity is the difference between total capacity and total demand.
Similar to the buy-in method, the incremental method calculation divides system value by the capacity in mgd served by those assets. However, because it is critical for the value used in the numerator to represent the capacity in the denominator, the incremental capacity fee divides the sum of expansion CIP and available asset value by net future capacity available for new connections (the difference of future system capacity and existing capacity), as seen in Equation 3.
Equation 3 Incremental Capacity Fee Formula
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐹𝐹𝐶𝐶𝐶𝐶 = 𝐸𝐸𝐸𝐸𝐶𝐶𝑉𝑉𝐶𝐶𝑆𝑆
𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶 +
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝐶𝐶 𝐶𝐶𝑜𝑜 𝐸𝐸𝐸𝐸𝐶𝐶𝑆𝑆𝐶𝐶
𝐶𝐶𝐶𝐶𝐸𝐸 𝐴𝐴
𝐴𝐴𝑉𝑉𝐶𝐶𝑉𝑉𝑉𝑉𝐴𝐴𝑉𝑉𝐶𝐶 𝐶𝐶𝑉𝑉𝐶𝐶𝑉𝑉𝐶𝐶𝐶𝐶
𝐶𝐶𝑆𝑆
𝐹𝐹𝑉𝑉𝐶𝐶
𝑉𝑉𝐹𝐹𝐶𝐶 𝑆𝑆𝑆𝑆𝑆𝑆𝐶𝐶𝐶𝐶𝑆𝑆 𝐶𝐶𝑉𝑉𝐶𝐶𝑉𝑉𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆 (𝑆𝑆𝐸𝐸𝑚𝑚) − 𝐸𝐸𝐸𝐸𝐶𝐶𝑆𝑆 𝐶𝐶𝐶𝐶𝐶𝐶𝐸𝐸 𝑆𝑆𝑆𝑆𝑆𝑆𝐶𝐶𝐶𝐶𝑆𝑆 𝐶𝐶𝑉𝑉𝐶𝐶𝑉𝑉𝐶𝐶𝐶𝐶
𝐶𝐶𝑆𝑆 (𝑆𝑆𝐸𝐸𝑚𝑚)
6.8 Hybrid Methodology
For agencies with build-out on the horizon but still with significant expansion CIP planned, a hybrid approach is often appropriate. It combines elements of both methods to form one connection fee. For the valuation component, both buy-in and incremental approaches are included: the existing system value along with expansion projects. To match the capacity reflected in the asset values above, the summed system values are divided by the total of mgd served at the end of the CIP forecast, as shown in Equation 4.
Equation 4 Hybrid Capacity Fee Formula
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐹𝐹𝐶𝐶𝐶𝐶 = 𝑉𝑉𝑉𝑉𝑉𝑉
𝑉𝑉𝐶𝐶 𝐶𝐶𝑜𝑜 𝐸𝐸𝐸𝐸𝐶𝐶𝑆𝑆𝐶𝐶
𝐶𝐶𝐶𝐶𝐸𝐸 𝐴𝐴𝑆𝑆𝑆𝑆𝐶𝐶𝐶𝐶
𝑆𝑆 + 𝐸𝐸𝐸𝐸𝐶𝐶𝑉𝑉𝐶𝐶𝑆𝑆
𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶
𝑇𝑇𝐶𝐶
𝐶𝐶𝑉𝑉𝑉𝑉 𝐶𝐶𝐹𝐹
𝐶𝐶𝑃𝑃𝐶𝐶𝐶𝐶
𝐶𝐶𝐶𝐶𝑚𝑚 𝐶𝐶𝑉𝑉𝐶𝐶𝑉𝑉𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆 (𝑆𝑆𝐸𝐸𝑚𝑚)
6.9 Industrial Wastewater Connection Fee
The projects presented in Chapter 3 of the Fac Plan will provide added capacity to the industrial waste collection system and treatment facility. The industrial wastewater connection fee calculation using the incremental method is summarized in Table 20.
Table 20 Industrial Waste Connection Fee Calculations
System Treatment Collection Total
Future Systems Improvements ($ millions) $16.5 $1.0
Less: Grant Funded Projects (0.0) (0.0)
Total City Funded Future Value $16.5 $1.0
System Capacity (mgd)
Additional Future System Capacity 3.6 3.0
Connection Fee ($/mgd) $4,582,769 $333,333 $4,916,102
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-211, Version: 1
Residential Rental Registration
Adopt an Ordinance amending Chapter 17 (Housing) of the Salinas Municipal Code by adding Section 1 to incorporate Rental Registration requirements for residential rental units; and approve a Resolution amending the City of Salinas Schedule of Fees and Charges for City Services to incorporate applicable Residential Rental Registration fees, authorizing the establishment of a Residential Rental Registration enterprise fund with corresponding revenue and expense budget in the amount of $400,000 for a Residential Rental Registration Program.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 4, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
BY: BEATRIZ TRUJILLO, COMMUNITY DEVELOPMENT ANALYST
TITLE: RESIDENTIAL RENTAL REGISTRATION
RECOMMENDED MOTION:
A motion to:
1. adopt an Ordinance amending Chapter 17 (Housing) of the Salinas Municipal Code by adding Article I to incorporate Residential Rental Registration requirements for residential rental units; and
2. approve a Resolution amending the City of Salinas Schedule of Fees and Charges for City Services to incorporate applicable Residential Rental Registration fees, authorizing the establishment of a Residential Rental Registration enterprise fund with corresponding revenue and expense budget in the amount of four hundred thousand dollars ($400,000) for a Residential Rental Registration P rogram, and authorizing the appropriation of all Residential Rental Registration fees collected to the Residential Rental Registration enterprise fund.
EXECUTIVE SUMMARY:
The City has adopted the Salinas Plan and the Alisal Vibrancy Plan which both call for a Rental Registration a nd Inspection Program. Rental registration programs are often used by local jurisdictions as a tool to promote community health and safety through the identification of residential rental units and corresponding up to date emergency contact information. This minimally collected information is also vital in supporting cities in: 1) assessing current rental housing stock and future rental housing need, 2) developing and implementing required Housing Elements in support of the additional production of ren tal units, and 3) providing a robust platform for much- needed Fair Housing services, such as linkages to mediation assistance, access to potential rental support and landlord incentives, and relevant information regarding applicable legislation and regulations and locally available resources.
Since 2018, staff have convened 22 meetings with a broad, representative group of community stakeholders to discuss various proposals and solicit feedback on potential program models, Page | 2
mandates, service components, and funding sources. Based upon the results of these community consultation efforts, as well as guidance received from the Housing Policy Technical Advisory Committee (TAC), a proposed program model focusing on a Residential Rental Registration has been developed. Additional TAC recommendations included the deferral of any rental inspection component until appropriate safeguards and resources are in place to prevent potential displacement or support required relocation. The proposed Residential Rental Regis tration Program that would result from an adopted Ordinance is designed to incorporate additional cost-neutral landlord and tenant benefits and appropriate dedicated staffing when fully operational.
BACKGROUND:
The proposed Rental Registration Ordi nance is derivative of community feedback offered and inclusive of preferred service concepts brought forward from the City’s adopted Salinas Plan in 2018. Initially conceptualized as a Rental Registration and Inspection Program ( Salinas Plan Item NR05) with the expressed intent of helping to improve the quality of the City’s rental stock and a potential revenue source for Code Enforcement staff. Following adoption of the Salinas Plan, the City engaged its author, the National Resource Network (NRN), to assist in the design of an initial program. In August 2019 , as part of this work, NRN held a community meeting to solicit public input on the proposed program. Based upon initial feedback received and concerns brought forward regarding potential displacement that might result from a proposed inspection component, the City opted to establish a Housing Policy Technical Advisory Committee (TAC) comprised of community advocates, housing developers, property managers, and private sector professional organization representatives to assist in formulating an equitable, acceptable model.
Upon its inception, CDD staff convened several progressive meetings with the TAC from December 2019 through to the onset of the Covid-19 pandemic in March 2020. Concurrent to these initial TAC discussions in February 202 0, Council also adopted the Alisal Vibrancy Plan (AVP) and its recommendation to establish a Rental Registration and Inspection Program (Items HN 2.2a, 3.1a).
Following a reduction of Covid cases and relaxation of widely imposed contact restrictions, TAC discussions resumed via teleconferencing in April 2021 and continued through December 2021. On January 18, 2022, staff presented a proposed model for the rental registration program outlining the program’s design, fees, and budget and received direction from Council to draft an ordinance based on the proposed model, but to conduct additional outreach before returning.
DISCUSSION:
Following direction provided by Council in January 2022, staff, in consultation with external counsel, moved forward to create a first draft of the proposed Residential Rental Ordinance. TAC members received an initial presentation of the draft Ordinance o n July 27, 2022 and were encouraged to share and solicit input from additional stakeholders and provide written comment in anticipation of additional discussions with the Community Development Department Director and CDD Housing and Code Enforcement Divisi on staff. To facilitate general awareness and solicit additional public input, CDD Housing Division staff also presented information in a series of four (4) public meetings held in February and March 2023.
Throughout the development of the Residential Rental Registration Ordinance, TAC and AVP stakeholders have provided varying opinions and levels of support for a Residential Rental Page | 3
Registration Ordinance and program. Assumed stances have essentially aligned with one of the following options:
support for the implementation of a full -service Residential Rental Registration and Inspection Program as recommended by in the City’s adopted Salinas Plan and AVP no support for any type of program whatsoever – whether Registration only or Registration and Inspection
support for a limited Residential Rental Registration Program with no inspection component.
The proposed Ordinance and Resolution represents a consensus of compromise from TAC members representing both landlords and tenants within the City’s jurisdictions. It also should be noted that earlier community meetings resulted in widespread fear of displacement and increases in rent should an inspection program be implemented.
Ordinance Overview
CDD’s Housing and Community Development Division will assume administrative responsibility and provide Residential Registration Program staffing as part of its Fair Housing services. Following an initial start-up period and the use of previously dedicated funding approved by Council, fees will be collected in accordance to the Ordinance’s proposed Fee Schedule and subsequent applicable revisions of the City’s Fee Schedule for program -restricted uses and supports , thus eliminated the need for any General Fund support.
Units Requiring Registration:
All residential rental properties including single family and multi-family residences and non-owner occupied Accessory Dwelling Units (ADUs). Vacant, on-market, units will require registration in anticipation of imminent occupancy.
Exempted Units:
Subsidized Residential Rental Units/Affordable Deed Restricted Units Owner-occupied ADUs
Mobile Home Spaces
Required Information Collected:
Landlord name, address, phone number and email
Assessor’s Parcel Number (APN) and Street Address of each rental unit Number of bedrooms and bathrooms and square footage of each rental unit Business License number, where applicable
Property Manager name, address, phone number and email, if applicable
Optional Information Collected:
Monthly rent charged for each rental unit and specific utilities included, if applicable General occupancy status of each rental unit (vacant or occupied) Rental subsidy (housing voucher, etc.) received for each rental unit, if applicable
Page | 4
Fees:
The proposed Resolution related to fees associated with implementation of a Residential Rental Registration Ordinance would establish an initial, annual fee structure with amounts based upon the total number of rental units associated with an individual parcel.
Number of Units per
Parcel
Annual Registration Fee
1 $20.00
2-4 $35.00
5-9 $60.00
10-24 $75.00
25-49 $120.00
50-99 $225.00
100+ $350.00
*A Late Fee of 10% per month may be applied for failure to register applicable units within established application and renewal periods
Rental Registration Program
CDD’s Housing and Community Development Division will assume administrative responsibility and provide Residential Registration Program staffing as part of its Fair Housing services platform.
Following an initial start-up period and the use of remaining available funding previously allocated by Council, the proposed Fee Resolution and schedule are intended to create a cost-neutral program supported by the collection of annual fees that would then be directed back to support the Program’s staffing, systems and services, thus eliminating the need for any Ge neral Fund support. However, based upon perspective obtained from other jurisdictions, initial years of implementation of similar programs in other jurisdictions have often resulted in lower than anticipated revenues and additional sources of funding may be necessary. In consideration of a potentially low collection of initial revenue, staff have identified other potential fundings sources, such as CDBG, that may be leveraged in support of initial operations.
Budget:
Description Proposed
Budget
Planning Manager – (0.05 FTE) $11,497.33
Community Development Analyst – (1.0 FTE) $158,720.21 Administrative Analyst – Housing (1.0 FTE) $119,488.51 Software & Systems Supports $10,000.00
Tenant/Landlord Services & Resources $100,000.00
Total $399,706.05
Page | 5
Implementation timeline:
The proposed Rental Registration Program is planned to operate in tandem with the City’s July 1- June 30 fiscal year calendar under the initial implementation timeline.
Year 1 Implementation
FY 2023-24
Year 2 Operations
FY 2024-25
Registration July 1 – September 30, 2023 July 1 – July 31, 2024 Late Notice Issuance October 1 – November 14, 2023 August 1, 2024 Late Fee Assessment November 15, 2023 September 14, 2024
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 app lies 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 acti vity 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 proposed Residential Rental Registration Ordinance and accompanying Fee Resolution each support the City of Salinas Strategic Plan 2022-2025 Goals and Strategies of including Economic Development, Housing/Affordable Housing, and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
Significant coordination and engagement with internal and external City partners have served as a foundation to the development of the proposed Ordinance and Fee Resolution. Ongoing, multi-year engagement of stakeholders, community advocates and professional have been essential in formulating a viable, mutually acceptable proposal. Notable internal contributions have come from CDD’s Housing and Code Enforcement Divisions and internal IT staff, Fire Department Prevention staff, and the City Attorney.
FISCAL AND SUSTAINABILITY IMPACT:
Implementation of the proposed Ordinance is intended to be cost-neutral and self-funded through the collection of annual fee revenues and with no intended impact to the General Fund. The approval Page | 6
of this resolution will require the creation of a new Residential Rental Registration enterprise fund to ensure revenue and expenses are appropriated as legally required by the State of California.
ATTACHMENTS:
Ordinance – Residential Rental Registration
Resolution – Residential Rental Registration Fees and Enterprise Fund PowerPoint – Residential Rental Registration
1378\26\3267651.3
ORDINANCE NO. _______ (N.C.S.)
AN ORDINANCE OF THE CITY OF SALINAS ADDING ARTICLE[XX] OF THE
SALINAS MUNICIPAL CODE TO REQUIRE REGISTRATION OF ALL
RESIDENTIAL RENTAL PROPERTIES WITHIN THE CITY OF SALINAS City Attorney Impartial Analysis
This Ordinance incorporates a requirement into the Salinas Municipal Code that all residential rental properties be registered with the City of Salinas and provide certain information including information identifying the owner and information describing the rental unit.. This Ordinance applies to all residential rental properties including single-family and multi-family, as well as non-owner-occupied Accessory Dwelling Units (ADUs). Vacant, on-market, units will also require registration in anticipation of imminent occupancy. Subsidized residential rental units/affordable deed restricted units, owner-occupied ADUs, and mobile home spaces are exempt. An annual registration fee would be required to fund the program.
WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City of Salinas ("City") has broad authority to maintain the public peace, health and safety of its community and preserve the quality of life for its residents and may make and enforce all regulations and ordinances using its police powers to do so; and
WHEREAS, the City , with direction from the City Council, has developed goals, objectives, policies, and action programs that directly address the City's housing needs; and
WHEREAS, according to the Monterey County Analysis of Impediments of Fair Housing Choice, published in 2019, 54.9 percent of Salinas residents are renters and an essential part of our community; and
WHEREAS, on December 4, 2018, the National Resource Network presented the Salinas Ten-Year Plan to the City Council, providing a series of recommendations designed to allow the City to maintain long-term fiscal solvency, maintain its key services, and address the housing affordability crisis; and
WHEREAS, one recommendation contained in the Salinas Ten-Year Plan is to establish a feasibility study for a residential rental registry and inspection program; and
WHEREAS, the City adopted the FY 2020 – FY 2024 Consolidated Plan ("CP") for housing in August 2020, and indicated in the CP that engaging in "Fair Housing and tenant/landlord activities" was of high priority to the City; and
WHEREAS, the City does not currently track res idential rents, and there is no current source for obtaining that information specific to the City, making it difficult to ascertain the effect of rents and housing conditions on the potential displacement of residents; and
1378\26\3267651.3
WHEREAS, the City Council directed City Staff to conduct a study session on November 27, 2018, to gather the perspective and information necessary to address housing conditions and housing affordability in the City; and
WHEREAS, on January 26th, 2019, the City Council directed staff to prepare an ordinance for City Council consideration that would require owners of residential rental properties to provide the City with basic annual information regarding R esidential R ental Units , including optional information; and
WHEREAS, the City through a series of 22 meetings has made diligent efforts to engage, collaborate and solicit input from community stakeholders regarding the Residential Rental Registry Program; and
WHEREAS, on January 18 th, 2022, staff presented a proposed rental registration model, and Council directed staff to draft an ordinance based on the proposed model; and
WHEREAS, City staff will continue to collaborate with a variety of stakeholders, including landlords and tenants, to identify potential program services and opportunities to collect data; and
WHEREAS, the City Council finds and determines that the R esidential Rental Registry Ordinance codified in Article17 is adopted pursuant to the City's police power authority to protect the public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SALINAS AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The City Council finds that the above Recitals are true and correct and are incorporated herein by reference.
SECTION 2. Amendment of Article17 of the Municipal Code. Article 17 of the Salinas Municipal Code is hereby amended to update Article I, "Residential Rental Registry" to read as follows:
ARTICLE17 – HOUSING
ARTICLE I – Residential Rental Registration
Section 17-01.01 – Findings and Purpose
a) Findings.
The City Council finds and declares as follows:
1. The City has a substantial government interest in regulating the relationship between Landlords and Tenants in order to increase, certainty, stability and fairness within the rental market.
1378\26\3267651.3
2. The City finds that this Ordinance requires only the registration of Residential Rental Units and the collection of fees associated with the registry.
3. The Ordinance codified in this Article is being adopted pursuant to the City's police power authority to protect the public health, safety and welfare.
b) Purpose.
The purpose of this Article is to adopt regulations for Landlords to register their residential rental units and provide related information to the City on an annual basis. The registration process will allow the City to collect, monitor and analyze the characteristics of the residential rental units and actual rents in Salinas. Collected data will be pre sented in an annual report to the City Council. The registration fees collected pursuant to this Article will be used to provide services, including referrals to mediation and legal services, education opportunities, and landlord/tenant resources, to Landlords an d Tenants in the City. This Article supports the City's housing goals and protects public health, safety, and welfare for the residents of Salinas. This Article and its implementation are intended to protect the privacy of individual Tenants and the proprietary information of Landlords, the public release of which could result in a competitive disadvantage.
Section 17-01.02 – Definitions
a) Business License means the license required of Landlords pursuant to Salinas Municipal Code Chapter 19 – Licenses.
b) City means the City of Salinas.
c) Department shall mean the Community Development Department of the City of Salinas.
d) Effective Date of this Article shall be ______________________, 2023.
e) Community Development Director means the director of the Community Development Department of the City of Salinas or their designee. A designated representative may include City staff and/or a Party or organization contracted by the City to provide the necessary services to implement the procedures contained in this Chapter.
f) Landlord means an owner, lessor, or sublessors who receives or is entitled to receive Rent for the use and occupancy of any Residential Rental Unit or portion thereof, and includes any legal entity or other individu als, employees, agents, contractors, and subcontractors that comprise or represent the Landlord.
g) Rent means a fixed period for compensation paid by a Tenant at fixed intervals to a Landlord for the possession and use of a Residential Rental Unit as defined by the rental agreement between the Landlord and the Tenant. Rent exclu des pass-through costs and
1378\26\3267651.3
ancillary costs paid separately to the Landlord for parking, storage, utilities, water, garbage, or any other fee or charge associated with the Residential Rental Unit.
h) Residential Rental Registry Fees means the fee required to be paid by a Landlord pursuant to Section 17-01.04.
i) Residential Rental Registry Information means the information required to be submitted to the City by the Landlord pursuant to this Chapter.
j) Residential Rental Unit means a habitable structure offered for Rent and used as a place of permanent or customary and usual abode of a Tenant. R esidential Rental Units include a single-family residence, an accessory dwelling unit, a building, a group of buildings or a portion of a building used and/or designed as dwellings. A R esidential Rental Unit shall not include:
1. Unpermitted conversions of garage, sheds or other accessory structures.
2. Housing accommodations in hotels, motels, group housing, supportive housing, transitional housing, general residential care, and bed and breakfasts as those terms are defined in Division 2 of Article 1 of Chapter 37 of the Salinas Municipal Code.
k) Tenant means any renter, tenant, subtenant, lessee or subless ee of a R esidential Rental Unit, or any group of renters, tenants, subtenants, lessees, or sublessees of a R esidential Rental Unit, or any other person entitle to the use of occupancy of such Residential Rental Unit, or any successor of any of the foregoing.
Section 17-01.03 – Registration of Residential Rental Units a) Initial Registration. A Landlord must register every Residential Rental Unit that is subject to the provisions of this Article within forty-five (45) calendar days of the Effective Date of this Chapter. Registration must be completed using forms provided by the City. The forms provided by the City shall include a secure internet website with an interface for submitting the information required by this Article. Registration is complete only when all required information has been provided to the City and all outstanding fees and penalties, if applicable, have been paid. Upo n completion of the initial registration of a R esidential Rental Unit, the City shall issue a registration statement which shall include the renewal date for the registration of the applicable Units. The City may issue a citation and impose a late penalty should a Landlord fail to register their Residential Rental Units within forty- five (45) calendar days of the Effective Date of this Article.
b) Renewal. Unless a registration statement provides otherwise, registration of R esidential Rental Units shall expire on June 30 of the same year when registration statement was issued. Registration of Residential Rental Units shall be renewed annually between July 1 and July 31, or by the date stated on the registration statement. Registration statements shall expire annually on June 30 or the date on the registration statement . The City may
1378\26\3267651.3
issue a citation and impose a late penalty should a Landlord fail to register their Residential Rental Units by July 31.
c) Residential Rental Registry Information. At minimum, the following information below shall be provided as part of initial and renewal registration of a Residential Rental Unit.
Failure to provide information required or providing false information shall be a violation of the Salinas Municipal Code, chargeable as a misdemeanor or infraction.
1. The name, mailing address, phone number and email of the Landlord;
2. The street address and/or Assessor's Parcel Number (APN) of each R esidential Rental Unit for rent or lease;
3. The number of bedrooms and bathrooms in each Rental Unit, including square footage, for rent or lease;
4. The Business License number, where applicable, to each Residential Rental Unit; and
5. If applicable, the name, address, phone number and email of Property Manager
Additionally, landlords will be asked to provide the following optional information:
1. The current amount of the monthly rent charged for each Residential Rental Unit, identifying whether the monthly rent includes specified utilities (water/sewer, refuse/recycle, natural gas, electricity, etc.);
2. The occupancy status of each Residential Rental Unit (e.g., vacant or occupied);
3. Whether or not the unit’s monthly rent is subsidized (e.g. housing voucher or another subsidy).
d) Termination of Exemption . When a R esidential R ental Unit that was exempt from this Article becomes governed by this Article, the Landlord must register the Residential Rental Unit with the City within forty-five (45) calendar days after the City provides notice that the exemption has ended.
e) Registration Amendment . A Landlord shall notify the City if there is a change to the registration information for any Residential Rental Unit. A Landlord shall contact the City within forty-five (45) calendar days of change in a Residential Rental Unit's ownership or management, or a change in the owner's or manager's contact information.
f) Administrative Regulations . The Community Development Director may promulgate administrative regulations and operational procedures to implement the provisions of this Article.
1378\26\3267651.3
g) Collecting and Keeping Confidential Residential Rental Registry Information.
1. The City Council recognizes that the Re sidential Rental Registry Information, if publicly disclosed, could reveal the rent that a Tenant pays for a Residential Rental Unit or proprietary information of a Landlord could create a competitive disadvantage for every Landlord required to comply with this Article.
The City Council also recognizes that the Public Records Act (Government Code §§ 6250, et seq.) generally requires that the City make available to the public information in its possession that relates to the conduct of the public's business. The Public Records Act contains a number of exceptions intended to protect the privacy of individuals and the proprietary information of businesses that is in the City's possession only because of a legal requirement to provide it to the City in connection with a regulatory program. Subject to Section 17-01.03(g)(4).
City Council declares that the R esidential R ental Registry Information shall be received in confidence, and that the public interest in nondisclosure of the Residential R ental Registry Information clearly outweighs the public interest in disclosure. Notwithstanding the foregoing, this Section 17-01.03(g) identifies limited Residential Rental Registry Information that shall be made available to the public.
2. The City Council anticipates that Residential Rental Registry Information will be kept in a secure database. The database containing Residential Rental Registry Information shall be created and maintained such that it can generate reports containing only the following, individually or in combination:
a) the number of Residential Rental Units per building expressed as a range of the number of Residential Rental Units per building; b) the number and type of rooms in a Residential Rental Unit, with the Rental Units grouped by number of bedroom s and not listed individually;
c) the size of Residential Rental Units, expressed in square feet; d) the Rent for R esidential R ental Units, classified only by size of Residential R ental Units in square feet and number and type of rooms;
e) average Rent for R esidential R ental Units by size of R esidential Rental Units in square feet or number of rooms for any period of time covered by the Residential Rental Registry Information; or f) the average length of occupancy or vacancy of Rental Units, classified only by size of Rental Units in square feet or number and type of rooms.
1378\26\3267651.3
The Residential Rental Registry Information listed in this paragraph shall be the only Residential Rental Registry Information released in response to a request made under the Public Records Act. The City will not disclose R esidential R ental Registry Information for R esidential Rental Units in a manner that identifies the building in which they are located or the R ent for any individual Rental Unit.
Residential Rental Registry Information shall not include identifying information regarding an individual Tenant or Landlord.
3. The Community Development Director may generate additional reports f rom the Residential Rental Registry Information database for the purposes of this Article.
Such reports shall be released to the public only if kept in the normal course of City business and only after redacting any Residential Rental Registry Information that would improperly in trude into personal privacy of Tenants or reveal Landlord proprietary information that could result in a competitive disadvantage.
4. The Community Development Director, in consultation with the City Attorney, may authorize the release of other R esidential R ental Registry Information that would be otherwise confidential if they determine that the release is legally required or the public interest in disclosure would clearly outweigh the public interest in nondisclosure.
Section 17-01.04 – Rental Registry Fees
a) Rental Registry Fees. Each Landlord shall pay the required Residential Rental Registry Fee as set forth in Resolution No________ . The fees established in Resolution No. _______ shall be integrated into the City's Schedule of Fees and Charges for City Services by resolution, as required by Chapter 11B of the Salinas Municipal Code.
The Residential Rental Registry Fee shall be imposed annually for each rental property owned by the Landlord. The Residential Rental Registry Fees required by this section are in addition to and not in lieu of any general business license tax that might be required by Chapter 19 of the Salinas Municipal Code. The fees shall be used to defray the reasonable costs associated with the implementation and administration of this Article, including costs of maintenance of a residential r ental registry database, enforcement of the registration required by this Article, outreach, education, and other related services as deemed appropriate by the Community Development Director pursuant to Section 17-01.05 of this Article.
b) Late Fees; Penalties . A Landlord's failure to pay the annual Residential R ental Registration Fees required by this section shall result in the City taking the following actions:
1. Issue a delinquency notice to the landlord that provides up to forty-five (45) calendar days to pay the amount due.
1378\26\3267651.3
2. If not paid within forty-five (45) calendar days following the issuance of the delinquency notice, the City shall assess a penalty of ten (10) percent of the Residential Rental Registry Fee, due and payable with the compliance fee on the first day of the month following the due date provided in the delinquency notice.
3. For every forty-five (45) calendar days thereafter that the Residential R ental Registry Fees remain unpaid, the City shall assess a penalty of ten (10) percent of the Rental Registry Fee. If the Rental Registry Fee s remain unpaid within one - hundred eighty (180) calendar days following the issuance of the delinquency notice, the Landlord shall be subject to a citation described in Division 1 (Administrative Citations) of Article 5 of Chapter 1 of the Salinas Municipal Code.
The City may collect any past due Residential Rental Registry Fees and late payment penalties by use of all available legal means, including, but not limited to, means available for the collection of judgments, liens, and actions for recovery of money. The City also may recover its collection costs.
c) Residential Re ntal Registry Fees Pass -Through. A Landlord may not recover any portion of the Residential Rental Registry late fees, or any associated late penalties, from Tenant(s).
d) Exemptions. This section shall not apply to the following Residential Rental Units:
1. Subsidized Residential Rental Units . One hundred percent of R esidential R ental Units in the h ousing developments are restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable to persons and families or very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
2. Accessory Dwelling Units. Legal accessory dwelling units, junior accessory dwelling units, and secondary dwelling units, if the primary dwelling is owner - occupied. If the primary dwelling is presently or has previously been held out for rental, then both units are subject to this Section 17-01.04.
3. Mobile Home Spaces. A lot or space of land in a Mobile Home Park where a Mobile Home is or may be located. Mobile Home and Mobile Home Park shall have the same meaning as the definitions of "mobile home" defined in Section 798.3 of the Civil Code and "mobile home park" defined in Section 798.4 of the Civil Code, respectively, as those sections may be amended from time to time, or their successor code sections.
1378\26\3267651.3
Section 17-01.05 – Provision of Services
a) In addition to being used for the administration and enforcement of the residential rental registration requirement, the Residential Rental Registry Fees provided for in Section 17-01.04 of this Article shall be used by the Community Development Director for the provision of services to Landlords and Tenants in the City. These services may include, without limitation, the following:
1. Website content to landlord/tenant services and resources;
2. Referrals to landlord/tenant resources which may include dispute resolution services through website content and a dedicated phone line and email;
3. Education and outreach to landlords and tenants, such as handouts, mailings and webinars, about rights and obligations; and
4. Any other services for Landlords and Tenants as deemed appropriate by the Community Development Director.
b) Notwithstanding paragraph ( a), n othing in this Section 17-01.05 is intended to authorize the Community Development Director to establish a rental housing inspection program or to provide rental housing inspection services without the prior approval of the Council.
Section 17-01.06 – Miscellaneous
a) Annual Review. The Community Development Director shall annually prepare a report to the Council assessing the effectiveness of the program established under this Article and may recommend changes.
b) Business License . All Landlords shall possess a Business License, as r equired by Salinas Municipal Code Chapter 19 for any R esidential R ental Unit subject to the provisions of this Article. Submission of Residential Rental Registry Information shall be a prerequisite to a complete application for a Business License required by Section 19-9 of Chapter 19 of the Salinas Municipal Code.
Section 17-01.07 – Enforcement
a) Any person violating any provision or failing to comply wit h any of the requirements of this Article shall be deemed guilty of a misdemeanor or an infraction and may be subject to the penalties prescribed in Section 1-01.08 of the Salinas Municipal Code.
b) In addition to an Administrative Remedy or penalties available to the City, in law or equity, the City may enforce the terms of this Article through the administrative citation
1378\26\3267651.3
procedures provided in Division 1 (Administrative Citations) of Article 5 of Chapter 1 of the Salinas Municipal Code.
c) The City Attorney may bring a civil action to seek redress for any violation(s) under this Article on behalf of the City. In any such relief, the City shall recover all civil penalties prescribed in Division 1 (Administrative Citations) of Article 5 of Chapter 1 of the Salinas Municipal Code, and any other relief the court deems proper.
SECTION 3. Compliance with the California Environmental Quality Act. Approval of this ordinance is exempt from environmental review under the general rule in California Environmental Quality Act ("CEQA") Guidelines Section 15061(b)(3). The activity is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment.
SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this articleis for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter.
SECTION 5. Publication. Prior to the expiration of fifteen (15) calendar days from the passage thereof, the ordinance or a summary thereof shall be posted or published as may be required by law, and thereafter the same shall be in full force and effect.
SECTION 6. Effective Date. This Ordinance shall take effect and be enforced thirty (30) calendar days after the date of its adoption.
PASSED AND ADOPTED on ____________________, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________
Kimbley Craig, Mayor
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney
1378\26\3267651.3
ATTEST:
__________________________________
Patricia M. Barajas, City Clerk
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL AMENDING THE CITY OF
SALINAS SCHEDULE OF FEES AND CHARGES FOR CITY SERVICES TO
INCORPORATE APPLICABLE RESIDENTIAL RENTAL REGISTRATION FEES,
AUTHORIZING THE ESTABLISHMENT OF A RESIDENTIAL RENTAL
REGISTRATION ENTERPRISE FUND WITH CORRESPONDING REVENUE AND
EXPENSE BUDGET IN THE AMOUNT OF FOUR HUNDRED THOUSAND DOLLARS
FOR A RESIDENTIAL RENTAL REGISTRATION PROGRAM, AND AUTHORIZING
THE APPROPRIATION OF ALL RESIDENTIAL RENTAL REGISTRATION FEES
COLLECTED TO THE RESIDENTIAL RENTAL REGISTRATION ENTERPRISE FUND
WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City of Salinas ("City") has broad authority to maintain the pu blic peace, health and safety of its community and preserve the quality of life for its residents and may make and enforce all regulations and ordinances using its police powers to do so; and
WHEREAS, according to the Monterey County Analysis of Impediments of Fair Housing Choice, published in 2019, 54.9 percent of Salinas residents are renters and an essential part of our community; and
WHEREAS, in 2019 Council established a Housing Policy Technical Advisory Committee (TAC) to assist staff in formulating a viable Ordinance and related program model ; and
WHEREAS, throughout the period of January 2020 to December 2021 staff convened a total of sixteen TAC meetings to solicit input and receive feedback in regard to proposed regulation, program design and services; and
WHEREAS, on January 18th, 2022, staff presented a proposed rental registration model , and received direction from Council to draft an ordinance based on the proposed model; and
WHEREAS, it is Council’s intention to create a cost -neutral, self-sustaining Residential Rental Registration Program supported by the collection of annual registration fees; and
WHEREAS, the proposed Resolution is subject to review and revision from City Council to ensure cost recovery; and
WHEREAS, pursuant to Government Code 66018, a public hearing was duly noticed on March 17th, 2023; and
WHEREAS, on ________________, 2023, the City of Salinas adopted and codified Ordinance Number _____ (N.C.S.) establishing Residential Rental Registration fees in Chapter 17, Article I of the Salinas Municipal Code; and
2 NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby amends the City of Salinas Schedule of Fees and Charges for City Services to incorporate applicable Residential Rental Registration Fees attached as Exhibit A; and
BE IT FURTHER RESOLVED that the Salinas City Council hereby authorizes the establishment of a Residential Rental Registration enterprise fund with corresponding revenue and expense budget in the amount of four hundred thousand dollars ($400,000) for a Residential Rental Registration Program; and
BE IT FURTHER RESOLVED that the Salinas City Council hereby authorizes the appropriation of all Residential Rental Registration fees collected to the Residential Rental Registration enterprise fund,
BE IT FURTHER RESOLVED that the adoption of the proposed Residential Rental Registration fees is not a project as defined by the California Environmental Quality Act (CEQA) as it is not a government funding mechanism which does not involve any commitment to any specific project (CEQA Guidelines Section 15378(b)(4)).
BE IT FURTHER RESOLVED that this Resolution shall take effect thirty (30) calendar days after the date of its approval
PASSED AND APPROVED this 4th day of April 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
3 EXHIBIT A
RESIDENTAL RENTAL REGISTRATION FEES
Residential Rental Registration Fees
Number of Units Annual Registration Fee
1 $20.00
2-4 $35.00
5-9 $60.00
10-24 $75.00
25-49 $120.00
50-99 $225.00
100+ $350.00
Residential Rental Registration
Community Development Department
April 4, 2022
Executive Summary
o Rental registration programs are tool for jurisdictions to:
Promote community health and safety
Collect vital information about rental stock
Develop & implement Housing Elements
Boost Fair Housing services and resources for landlords and tenants o Call to enact from both the Salinas Plan and AVP
o 22 stakeholder meetings since 2018
o Housing Policy Technical Advisory Committee (TAC)
Initial deferment of an inspection component
Support of cost-neutral, self-sustaining program with dedicated staffing Background
2018
Salinas Plan - called for
Rent
al Registration and
Inspection
2019
AVP – called for Rental
Regis
tration and Inspection
National Resource Network
Community Feedback
TAC Meeting: Dec
2020
TAC Meetings: Jan, Feb,
Mar
Proposal
- Rental
Registration only
2021
Program Research
Stak
eholder Feedback
TAC Meetings: Apr, May,
Jul, Nov, Dec
2022
Staff - Proposed a
Residential
Rental
Registration Model
Draft ordinance
TAC Feedback: Jul, Aug
2023
Ordinance final draft
Outreach
and Feedback:
Feb, March
Adoption: April
Implementation: July
Ordinance Overview
Units Requiring Registration: Exceptions:
All residential rental properties
o single family and multi-family
residences
o non-owner occupied Accessory
Dwelling Units (ADUs).
Vacant, on-market, units will require
registration in anticipation of imminent
occupancy
Subsidized Units
Affordable Deed Restricted Units
Owner-occupied ADUs
Mobile Homes
Online registration portal
Information to be collected
Required: Optional:
• Landlord name, address, phone number and email
• Assessor’s Parcel Number (APN) and Street Address
• Number of bedrooms, bathrooms and square footage
If applicable:
o Business License Number
o Property Manager name, address, phone number
and email
• Occupancy status
• Rental subsidy, if applicable
• Monthly rent and specific
utilities includ
ed, if applicable
Fees
Number of Units on a Parcel Registration Fee
1 $20.00
2-4 $35.00
5-9 $60.00
10-24 $75.00
25-49 $120.00
50-99 $225.00
100+ $350.00
A Late Fee of 10% per month may be applied for failure to register applicable units within established application and renewal periods
Program Budget
Description Proposed Budget
Planning Manager – Housing (0.05 FTE) $11,497.33
Community Developmen
t Analyst – Housing (1.0 FTE)* $ 158,720.21
Administrative Analyst – Housing (1.0 FTE) $119,488.51
Software & software admin $10,000.00
Landlord-Tenant Services and Resources $100,000.00
Total $399,706.05
In consideration of a potentially low collection of initial revenue, City CDBG funds may be leveraged in support of initial operations.
Benefits
• Centralized repository for emergency
contact information
• Tenant and landlord resources
• Mediation services
• Dedicated staffing
• Supports the assessment and
development of current and future
affordable housing
• Closed-loop linkages to other
available City services and programs
Implementation Timeline
Year 1 Implementation
FY 2023-24
Year 2 Operations
FY 2024-25
Registration July 1 – September 30, 2023 July 1 – July 31, 2024 Late Notice Issuance October 1 – November 14, 2023 August 1, 2024 Late Fee Assessment November 15, 2023 September 14, 2024 Outreach
Past outreach effort:
2 meetings with Monterey
Association of Realtors
1 meeting with housing advocates
2 pop-ups with community
members
On Going Awareness Campaign
Pop-ups
Surveys
Community meetings
Soft launch with stakeholders
CEQA Consideration Strategic Plan Goals & Strategies
The City of Salinas has
determined that the
proposed action is not a
project as defined by the
California Environmental
Quality Act (CEQA) per
Guidelines Section 15378.
Economic Development
Housing/Affordable Housing
Effective and Culturally
Responsive Government
Departmental Coordination Fiscal and Sustainability Impact Internal CDD coordination:
Code Enforcement
IT staff
Inter-departmental coordination:
Fire
Finance
Legal
new Residential Rental Registration
enterprise fund
Cost-neutral, self-funded program
from collected registration fees
Leverage of other available Fair
Housing supports and CDD
programs/initiatives
The collection of annual fees will
make the Residential Rental
Registration cost-neutral/self-
funded program
Recommendation
A motion to:
1. adopt an Ordinance amending Chapter 17 (Housing) of the Salinas Municipal Code to amend Section 1 to incorporate the regulation of Residential Rental Units; and
2. approve a Resolution amending the City of Salinas Schedule of Fees and Charges for City Services to incorporate applicable Residential Rental Registration fees, authorizing the establishment of a Residential Rental Registration enterprise fund with corresponding revenue and expense budget in the amount of four hundred thousand dollars ($400,000) for a Residential Rental Registration Program, and authorizing the appropriation of all Residential Rental Registration fees collected to the Residential Rental Registration enterprise fund.
Questions & Comments
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-201, Version: 1
Alisal Vibrancy Plan (AVP) Implementation
Approve a Resolution receiving and accepting the 2022-2023 AVP Implementation Report and updated AVP Implementation Budget for activities through fiscal year 2024.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 4, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: LISA BRINTON, ASSISTANT DIRECTOR
MARIA CONTRERAS, MANAGEMENT ANALYST
OSCAR RESENDIZ, ASSOCIATE PLANNER
TITLE: ALISAL VIBRANCY PLAN (AVP) IMPLEMENTATION
RECOMMENDED MOTION:
Motion to adopt a resolution to receive and accept the 2022-2023 AVP Implementation Report and updated AVP Implementation Budget for activities through fiscal year 2024 with funds appropriated through fiscal year 2023.
EXECUTIVE SUMMARY:
In November 2019, the City Council unanimously accepted the Alisal Vibrancy Plan (AVP) as a strategic planning document. The AVP is an action-oriented, comprehensive strategy for Salinas’ Alisal (East Salinas) neighborhoods. The Plan’s purpose is to communicate the collective vision, goals, and desires of those who live, work, worship, and shop in the Alisal. The AVP Implementation Plan, developed in collaboration with the AVP Implementation Committee, prioritizes short-term activities to improve the cleanliness, appearance, safety and infrastructure, and parks and open space in the Alisal, and to promote economic development of the Alisal.
This report summarizes 2022-2023 implementation activities and planned activities through fiscal year 2024. This update also presents the AVP Implementation Plan and Budget for the approximately $4.425 million dollars the City Council appropriated in the FY 2021-2022 and FY 2022-2023 Capital Improvement Project (CIP) Budget s for immediate and short -term implementation activities. Starting in 2023, staff is piloting Envisio, a project implementation tracking and report ing software platform , to document and share AVP implementation progress through narrative reports, analytics, and a public dashboard. Enviso report templates, updated AVP Implementation Budget Allocation Charts, and a table breaking down project versus planning activity spending are provided as attachments to this staff report.
BACKGROUND:
Page | 2
Over 2,000 residents and community stakeholders participated in a community -led engagement process that resulted in the identification of more than 150 strategies and community recommendations that evolved into goals, policies and actions that are the “heart” of the AVP.
In May 2021, AVP Steering Committee and Working Group members were invited to form an AVP Implementation Committee (Committee). The Committee’s primary objectives are to maintain community at the center of AVP implementation and to develop and monitor the AVP Implementation Plan and Budget. Community Development, Public Works, and Library and Community Services staff provided the Committee information and support to develop priority and budget allocation recommendations which were presented to City Council in October 2021.
In 2022-2023, AVP Implementation continues to be centered around the Committee’s five priority areas and includes multiple projects and activities that focus on the areas of the E. Alisal Corridor, Youth: Parks and Recreation, and Economic Development. Since May 2021, staff met fourteen (14) times with the Committee via Zoom to provide AVP implementation updates and guide priorities. In addition, staff have conducted outreach at eight (8) events/community meetings to engage the community in discussion regarding district identity, public art, and other proposed improvements. Staff met with the Implementation Committee on March 15th to review the 2022- 2023 implementation update, Envisio reporting templates, and budget allocation and project and planning expenditures.
DISCUSSION:
Envisio Tracking and Reporting Software Platform
In August 2022, the City’s Innovation Team, led by the Information Technology Department , selected AVP implementation to pilot Envis io, a project implementation tracking and reporting software platform that documents and shares implementation progress through narrative reports , analytics, and a public dashboar d. Community Development, Public Works and Library and Community Services staff worked collaboratively with the Envisio team to build the framework of goals, policies and actions and the reporting template to track AVP implementation.
The Envisio plat form promotes efficiency and transparency as it allows for cross division and department collaboration and contribution to manag e, report, and share AVP implementation progress with the public. Current AVP priority goals, policies, and actions, including w orkplans and checklists have been entered into the Enviso platform . Screen shots of the AVP set up and report template examples are provided as attachments to this report. The next step will be to launch a public dashboard to illustrate AVP implementatio n progress. Both reports and the dashboard will be updated quarterly going forward. Key 2022-2023 AVP implementation activities are listed below by AVP short-term implementation priority.
2022-2023 AVP Implementation Activity Highlights
Appearance Completed Breadbox Mural (Pictures attached to this report.) Selected artist for California Beautification Underpass Project Page | 3
Awarded Alisal District Identity Master Plan contract Cleanliness Launched Alisal Street Corridor Ambassador Program Initiated conversations with Downtown Streets Inc. (DSI, through the Salinas Downtown Street (DST) Program) , and Hope Services to establish a consistent Corridor Maintenance Program in the Alisal area Contracted Alisal commercial corridor Street/Sidewalk clean up (July 2022)
Began street sweeping “no parking” signage community engagement program
Safety and
Infrastructure
Selected recommended Streetscape Master Plan consultant Secured grant funds for the Active Transportation Plan Update and selected recommended consultant
Included Master Trail Network analysis and design as part of A ctive Transportation Plan Update scope of work
Upgraded streetlight LED bulbs in Fairview Neighborhood Completed Transit -Oriented Development Study – Background Conditions Report (Collaboration with MST)
Secured grant funds for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design
Parks and
Open Space
Selected consultant and awarded contract to design and manage construction of park improvements at Closter and El Gabilan parks Selected consultant team and awarded contract to design and manage construction of new Hebbron Family Center
Released request for bids for trail improvements at Cesar Chavez Community Park
Released RFP for preparation of Cesar Chavez Master Plan Economic
Development
Launched Marketing and Technology Grant Program
Implemented Shop Local Initiatives in collaboration with SUBA
Collaboration and Partnerships
The City alone is not responsible for AVP implementation. Staff has continued to build partnerships to successfully carry out AVP activities . Two examples this past year include the small business support and economic development activities with the Salinas United Business Association (SUBA) and the 2022 Alisal MOU with the County of Monterey.
SUBA. Within the last year, SUBA has worked collaboratively in partnership with the city staff to develop and execute shop local initiatives to promote Alisal businesses, identify business ambassadors to champion volunteer clean-up efforts along the E. Alisal Street commercial corridor,
connect businesses with city support services, and
offer training opportunities to its members.
Page | 4
County of Monterey. The City Council approved the 2022 Alisal Memorandum of Understanding (Alisal MOU) with the County of Monterey in November 2022 . The three (3) primary areas of coordination and planning are:
1. Development of a Division Avenue Opportunity Site Master Plan Concept
2. Mobility and connectivity to and between parks, government facilities and services
3. Coordination of resources and expansion of health and mental health services
Alisal MOU activities to date include:
the preparation of a draft Exclusive Negotiating Rights Agreement with the Housing Authority of Monterey County for the development of affordable housing on city/successor agency owned property at E. Market Street and N. Sanborn Road, County’s completion of a facility needs assessment for the Youth Detention Facility, and the selection of an Active Transportation Plan Update consultant, which includes development of a Master Trail Network Plan in the Alisal as part of the scope of work.
The next step in Spring 2023 will be to seek consultant services to suppo rt the preparation of a Master Plan for the Greater Division Avenue area, which includes both city and county owned properties.
AVP Implementation Plan Budget
The AVP Implementation Plan Budget, presented to City Council in October 2021, was organized by priority “buckets” focused on improving the cleanliness, appearance, safety and infrastructure, and parks and open space in the Alisal, and promoting the economic development of the Alisal.
Similar to the City’s American Rescue Plan Act (ARPA) funding budget, the AVP budget was presented at a high level to provide flexibility to take advantage of emerging opportunities that meet the Plan’s identified priority actions.
The 2021-2022 AVP Implementation Budget has been updated to reflect the proposed allocation of the approximately $1.5 million in additional funding appropriated to AVP implementation through the FY 2022-2023 CIP Budget. Allocation continues to be based on AVP implementation activities and emerging opportunities. Pie charts illustrating 2021-2022 and 2022 -2024 budget allocation are provided as an attachment to this staff report. The biggest change in allocation is from Economic Development activities to Parks and Open Space improvement projects. This shift is based in emerging opportunities to undertake impactful park improvements at El Gab ilan and Cesar Chavez Parks. A table showing the list of projects and planning activity expenditures, encumbrances, and allocation by priority area to date is also provided as an attachment to this report.
CEQA CONSIDERATION:
The Alisal Vibrancy Plan and Implementation Plan are strategic planning documents. The action of receiving this report is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines section 15378). If recommended AVP policies or actions progress to Page | 5
a “project” level further CEQA analysis will be required to address potential environmental impacts of the proposed project.
STRATEGIC PLAN INITIATIVE:
The short-term actions identified in the AVP Implementation Plan focus on improvements to the E. Alisal Corridor, Youth: Parks and Recreation, and Economic Development which advance the City Council’s 2022 -2025 Strategic Goals and Strategies of Economic Development, Public Safety, and Youth and Seniors. AVP implementation is listed as a strategy under the goal of Economic Development.
DEPARTMENTAL COORDINATION:
The Co mmunity Development Department’s Advance d Planning and Project Implementation (APPI) Division led AVP preparation and is leading coordination of Plan implementation working closely with Public Works and Library and Community Services staff to further traff ic and infrastructure and recreation facility and park priority improvements . APPI coordinate s with Public Works and Library and Community Services staff to prepare AVP Implementation progress updates, identify areas of opportunity, refine proposed activities, and develop budget estimates.
FISCAL AND SUSTAINABILITY IMPACT:
There is no direct fiscal impact from receiving this AVP Implementation update on implementation activities undertaken in FY 2022-2023. It is recommended that Council approve the updated 2022- 2024 AVP Implementation Budget appropriations for upcoming priority projects and plans through fiscal year 2024 with funds appropriated through fiscal year 2023.
ATTACHMENTS:
1. Resolution – Accepting AVP Implementation Report and 2022-2024 Budget
2. Envisio AVP Implementation Set Up, Progress Report Templates, and Report Example
3. AVP Budget Allocation Charts
4. AVP Project and Planning Activity Expenditure List
5. Breadbox Mural Implementation Photos
RESOLUTION NO. (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL ACCEPTING
THE 2022-2023 ALISAL VIBRANCY PLAN IMPLEMENTATION
REPORT AND APPROVING UPDATED 2023 AVP
IMPLEMENTATION BUDGET
WHEREAS, on November 5, 2019, by Resolution 21731, the Salinas City Council unanimously accepted the Alisal Vibrancy Plan (“AVP”) as a strategic planning document; and
WHEREAS, the AVP is an action -oriented, comprehensive strategy for Salinas’ Alisal (East Salinas) neighborhoods; and
WHEREAS, AVP implementation is a pri ority City Council Economic Development Goal Strategy (2022-2025); and
WHEREAS, in May 2021, the AVP Implementation Committee identified the five priority areas of Appearance, Cleanliness, Safety and Infrastructure, Parks and Open Space, and Economic Development with multiple projects and activities focused on enhancing th e E. Alisal Corridor and safety of primary commercial corridors , improving recreation facilities and parks, and small business support; and
WHEREAS, the Salinas City Council requested th at staff regularly provide AVP implementation updates; and
WHEREAS, the Alisal Vibrancy Pla n and Implementation Plan are strategic planning documents. The action of receiving this report is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines section 15378); and
WHEREAS, if recommended AVP policies or actions progress to a “project” level further CEQA analysis will be required to address potential environmental impacts of the proposed project.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby receives and accept s the 2022-2023 AVP Implementation Report and updated AVP Implementation Budget for activities through fiscal year 2024 with funds appropriated through fiscal year 2023.
PASSED AND ADOPTED this 4th day of April 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Kimbley Craig, Mayor
ATTEST:
Patricia M. Barajas, City Clerk
AVP ENVISIO GOALS, POLICIES AND ACTIONS
High Level Status Update
Alisal Vibrancy Plan (AVP)
Current Reporting Date: Mar 31, 2023
Report Created On: Mar 15, 2023
5 Goal
Overall Summary
%
Status Pending 38.71
On Track 58.06
Upcoming 3.23
Status
0 100
Progress
8%
% #
Status Pending 25.0 2
On Track 75.0 6
Goal 1
Owner: Lisa Brinton
Project/Policy: 3 Action Item: 8
Appearance Improve the Appearance of the Alisalʼs Commercial Corridors (ED 1)
% #
Status Pending 66.67 2
On Track 33.33 1
Goal 2
Owner: Lisa Brinton
Project/Policy: 2 Action Item: 3
Cleanliness Improve the Cleanliness of the Alisal's Commercial Corridors (ED 1)
% #
On Track 100.0 7
Goal 3
Owner: Lisa Brinton
Project/Policy: 4 Action Item: 7
Safety/Infrastructure Ensure that Streets, Parks, and Public Spaces in the Alisal are Safe. (GOAL HS 1.) Create healthy, safe, and sustainable transportation and infrastructure systems in East Salinas (Chapter 8). % #
Status Pending 50.0 3
On Track 50.0 3
Goal 4
Owner: Lisa Brinton
Project/Policy: 2 Action Item: 6
Parks and Open Space Create and Support a Diverse, Well-Maintained, and Culturally Relevant Network of Parks and Gathering Spaces. (YAP 6)
% #
Status Pending 71.43 5
On Track 14.29 1
Upcoming 14.29 1
Goal 5
Owner: Lisa Brinton
Project/Policy: 3 Action Item: 7
Economic Development Foster Business Creation, Retention, Expansion, and Attraction (ED2)
Plan Summary
Progress 19%
Status
Progress 1%
Status
Progress 3%
Status
Progress 10%
Status
Progress 0%
Status
Appearance
Improve the Appearance of the Alisalʼs Commercial Corridors (ED 1) Owner: Lisa Brinton
% #
Status Pending 25.0 2
On Track 75.0 6
Cleanliness
Improve the Cleanliness of the Alisal's Commercial Corridors (ED 1) Owner: Lisa Brinton
% #
Status Pending 66.67 2
On Track 33.33 1
Safety/Infrastructure
Ensure that Streets, Parks, and Public Spaces in the Alisal are Safe. (GOAL HS 1.) Create healthy, safe, and sustainable transportation and infrastructure systems in East Salinas (Chapter 8).
Owner: Lisa Brinton
% #
On Track 100.0 7
Parks and Open Space
Create and Support a Diverse, Well-Maintained, and Culturally Relevant Network of Parks and Gathering Spaces. (YAP 6)
Owner: Lisa Brinton
% #
Status Pending 50.0 3
On Track 50.0 3
Economic Development
Foster Business Creation, Retention, Expansion, and Attraction (ED2) Owner: Lisa Brinton
% #
Status Pending 71.43 5
On Track 14.29 1
Upcoming 14.29 1
Goal 1 Progress 19%
Funded
Project/Policy: 3 Action Item: 8
Goal 2 Progress 1%
Funded
Project/Policy: 2 Action Item: 3
Goal 3 Progress 3%
Project/Policy: 4 Action Item: 7
Goal 4 Progress 10%
Project/Policy: 2 Action Item: 6
Goal 5 Progress 0%
Project/Policy: 3 Action Item: 7
Plan progress report
Alisal Vibrancy Plan (AVP)
Current Reporting Date: Mar 31, 2023
Report Created On: Mar 15, 2023
1 Goal
1 Project/Policy
1 Action Item
Report Legend Priority No Update Overdue
Overall Summary
%
On Track 100.0
Status
0 100
#
Progress
10%
Appearance
Improve the Appearance of the Alisalʼs Commercial Corridors (ED 1) Owner: Lisa Brinton
% #
On Track 100.0 1
Develop District Identity Themes and Design Guidelines that Enhance the Character of the Alisal in a Consistent Manner that Reflects its History and Culture (ED 3.1.a) Owner: Lisa Brinton
% #
On Track 100.0 1
Develop Alisal District Identity Master Plan (ADIMP)
Owner: Maria Contreras
Update provided by Lisa Brinton on Mar 15, 2023 18:21:03 Accomplishments: On October 7, 2023, the City released a Request for Proposals (RFP) for the preparation of a District Identity Master Plan for the Alisal. The City received four proposals by the November 7, 2022, deadline.
Consultant selection was divided into three phases.
City sta reviewed, rated, and ranked the written proposals based on qualifications and experience related to the requested scope of work.
The top three firms were selected to move forward to a panel interview.
Panelists included a member from the Library and Community Services Commission, AVP Implementation Committee, and the Salinas United Business Association.
Sta conducted reference checks on the two highest ranking consultant teams. Prior to final selection, sta debriefed with the community panelists to discuss their rankings.
Panelists and City sta came to a consensus that Urban Field Studio (UFS) met all the requirements of the RFP scope of work and demonstrated community engagement experience. Sta then proceeded to negotiate the final scope of work and budget.
On February 21, 2023 Council approved Agreement for Professional Services with Urban Fields Studio Oakland for an total amount not to exceed $380,340.00.
Kick of meeting was held March 2, 2023
Site visit conducted March 17, 2023
Roadblocks:
None for this reporting period. This action item is on track.
Goal 1 Progress 10%
Funded
Project/Policy: 1 Action Item: 1
Project/Policy 1.1 Progress 10%
Funded
Action Item: 1
Action Item 1.1.1
Oct 07, 2022 - Jun 30, 2024 On Track
Progress 10%
Funded
AVP BUDGET ALLOCATION CHARTS
Appearance,
$775,000.00 , 26%
Cleanliness,
$565,000.00 , 19%
Safety/Infrastructure,
$350,000.00 , 11%
Parks Projects,
$550,000.00 , 18%
Economic
Development,
$775,000.00 , 26%
AVP Budget Allocation FY 2021-2022
Appearance
Cleanliness
Safety/Infrastructure
Parks Projects
Economic Development
FY 2021-2023AVP Project vs Planning Activities
Project Planning
Appearance Clean Ca Grant
Writing $25,000.00
Breadbox Mural Project $25,000.00
District Identity
RFQ/RFP - Consultant $380,340.00
Clean Ca Local Grant
Matching Amount 12% +
Clean Ca Beautification
contribution
$256,000.00
Tree Planting &
Trimming $43,620.00
Cleanliness Volunteer Cleaning
Efforts $25,000.00
Ongoing Maintenance
and Establishment of a
consistent Corridor
Maintenance Program
$365,860.00
Safety and
Infrastructure
Crosswalk Enhancements
(Madeira to Sanborn) $48,855.00
Streetscape Master
Plan RFQ/RFP -
Consultant
$400,000.00
Fairview lighting $18,405.00
Parks and
Open Space &
Recreation
Facilities
Cesar Chavez Park:
Installation and cost of
exercise equipment
$250,000.00
Cesar Chávez Park
Master Plan -
Consultant
$350,000.00
El Gabilan Park: Design
and construction $471,085.00
Prep/Paint Breadbox &
Closter Rec Center for
mural projects
$45,201.00
Trail Network Master
Plan RFP/RFQ -
Consultant
$200,000.00
Economic
Development
Social Media and Online
Business Presence grant $75,000.00
Local Artist Support $150,000.00
Total
$1,774,026.00 $1,355,334.00
AVP Funded Mural at the Breadbox
(Artist: Juan Pozos, Local artist)
1st weekend (02/4-02/5)
2nd weekend (02/10-02/11)
3rd and 4th weekend (02/25-02/26 & 03/4-03/05)
AVP IMPLEMENTATION REPORT
Lisa Brinton, Community Development Assistant Director
Salinas City Council
April 04, 2023
ENVISIO TRACKING AND REPORTING PLATFORM
ENVISIO SET UP
Envisio Tracking and Reporting Public Dashboard
ENVISIO DASHBOARD
Joshua
Lawyer and MJ
Lindo Lawyer
Market Street
APPEARANCE
APPEARANCE
Alisal District Identity Master Plan
CLEANLINESS
Safe Routes to School Sidewalk Art & Programming
Art Committee
Call for Artists
Community Voting
Art installation
Community Celebration
& Artist Recognition
SAFETY AND INFRASTRUCTURE
Alisal Streetscape Master Plan
SAFETY AND INFRASTRUCTURE
El Gabilan Park – Play Lot
PARKS AND OPEN SPACE
Cesar Chavez Park Trail and Master Plan
PARKS AND OPEN SPACE
AVP Business Marketing & Technology Program –
Micro Grants
https://ndc.smapply.io/prog/salinas_marketing_technology_grant_program/ Shop Local Initiatives
ECONOMIC DEVELOMENT
2022 Alisal MOU
AVP Implementation Budget
FY 2021-2023 A VP Project and Planning Activities
Project Planning
Appearance Clean Ca Grant Writing $25,000.00
Breadbox Mural Project $25,000.00
District Identity RFQ/RFP - Consultant $380,340.00
Clean Ca Local Grant Matching Amount 12%
+ Clean Ca Beautification contribution $256,000.00
Tree Planting & Trimming $43,620.00
Cleanliness Volunteer Cleaning Efforts $25,000.00
Ongoing Maintenance and Establishment of a
consistent Corridor Maintenance Program $365,860.00
Safety and Infrastructure Crosswalk Enhancements (Madeira to Sanborn) $48,855.00
Streetscape Master Plan RFQ/RFP -
Consultant $400,000.00
Fairview lighting $18,405.00
Parks and Open Space &
Recreation Facilities
Cesar Chavez Park: Installation and cost of
exercise equipment $250,000.00 Cesar Cháve z Park Master Plan - Consultant $350,000.00
El Gabilan Park: Design and construction $471,085.00
Prep/Paint Breadbo
x & Closter Rec Center for
mural projects $45,201.00
Trail Network Master Plan RFP/RFQ -
Consultant $200,000.00
Economic Development Marketing and Technology Microgrants $75,000.00 Local Artist Support $150,000.00
Total $1,774,026.00 $1,355,334.00
AVP IMPLEMENTATION REPORT
Lisa Brinton, Community Development Assistant Director
Salinas City Council
April 04, 2023
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-225, Version: 1
Minutes
Approve minutes of March 16, 2023, and March 21, 2023.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-236, Version: 1
Financial Claims
Approve financial claims report.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Number Date Status Payee Name
Transaction
Amount
465320 03/17/2023 Open California Water Service $16,618.63 465321 03/21/2023 Open 72 Hour LLC dba Chevrolet of Watsonville/National $1,166.76 465322 03/21/2023 Open ABAG Power Purchasing Pool $18,920.31 465323 03/21/2023 Open All Safe Security Alarm $33.00
465324 03/21/2023 Open ALTEC INDUSTRIES, INC. $13.90
465325 03/21/2023 Open Amazon.Com $182.13
465326 03/21/2023 Open American Supply Company $5,376.95 465327 03/21/2023 Open Ana Rueda De Vidales dba JAV Language Solutions $771.22 465328 03/21/2023 Open Andrew Easterling $180.00
465329 03/21/2023 Open Andrew McLaughlin $100.00
465330 03/21/2023 Open Applied Concepts, Inc-Stalker Radar $431.18 465331 03/21/2023 Open Aramark Uniform & Career Apparel Group, Inc $634.62 465332 03/21/2023 Open AT&T Mobility $21.99
465333 03/21/2023 Open AT&T Mobility $119.78
465334 03/21/2023 Open Bay Area Community Services Inc. $73,240.90 465335 03/21/2023 Open BFS Landscape Architects $22,447.25 465336 03/21/2023 Open Cagwin & Dorward, LLC $1,003.00
465337 03/21/2023 Open California Towing and Transport $250.00 465338 03/21/2023 Open California Water Service $178.11 465339 03/21/2023 Open Canon Financial Services Inc $659.18 465340 03/21/2023 Open Canon Solutions America Inc $1,464.75 465341 03/21/2023 Open Canon Solutions America Inc $225.63 465342 03/21/2023 Open Carl Warren & Company, LLC $3,900.00 465343 03/21/2023 Open CDW-G $2,576.65
465344 03/21/2023 Open Central Coast Center For Independent $19,476.15 465345 03/21/2023 Open Charlie D. Zarza $780.00
465346 03/21/2023 Open Cintas $1,200.18
465347 03/21/2023 Open ClientFirst Consulting Group, LLC dba ClientFirst $682.50 465348 03/21/2023 Open Coast Automotive Warehouse Inc $583.10 465349 03/21/2023 Open Colantuono, Highsmith & Whatley, PC $339.62 465350 03/21/2023 Open Community Homeless Solutions $56,482.91 465351 03/21/2023 Open CorVel Corporation Inc dba CorVel Enterprise Compa $18,054.25 465352 03/21/2023 Open CPS HR Consulting $557.90
465353 03/21/2023 Open CSC Of Salinas $21.65
465354 03/21/2023 Open Dataflow Business Systems Inc $62.06 465355 03/21/2023 Open Dilbeck And Sons $3,257.00
465356 03/21/2023 Open Don Chapin Inc $931.31
465357 03/21/2023 Open East Bay Tire Company $5,827.45
465358 03/21/2023 Open Economic & Planning Systems, Inc. $13,335.00 465359 03/21/2023 Open Eden Council for Hope and Opportunity $8,962.82 465360 03/21/2023 Open Edilcia Perez dba Ella Fitness $247.00 465361 03/21/2023 Open Edwards Truck Center Inc $38.10
465362 03/21/2023 Open EMC Planning Group Inc $9,551.30 General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 user: Josephine Fernandez Pages: 1 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465363 03/21/2023 Open Environmental Systems, Inc of Northern California $126,065.00 465364 03/21/2023 Open Envisio Solutions, Inc $30,000.00 465365 03/21/2023 Open Fastenal Company $3,023.28
465366 03/21/2023 Open Fed Ex $20.91
465367 03/21/2023 Open Ferguson US Hodings, Inc dba Ferguson Enterprises $306.63 465368 03/21/2023 Open Fire Suppression Innovations dba Greenfire $10,084.18 465369 03/21/2023 Open Fresno Oxygen & Welding Suppliers, Inc. $113.83 465370 03/21/2023 Open G2Solutions, Inc $10.50
465371 03/21/2023 Open Golden State Emergency Vehicle Service Inc $987.27 465372 03/21/2023 Open Golden State Truck and Trailer Repair $19,185.92 465373 03/21/2023 Open Goldfarb and Lipman $136.00
465374 03/21/2023 Open Granite Rock Co $2,406.34
465375 03/21/2023 Open Green Rubber Kennedy Ag $52.51
465376 03/21/2023 Open Green Valley Industrial Supply $25.78 465377 03/21/2023 Open Gregory Hurst $37.00
465378 03/21/2023 Open HD Supply White Cap Construction Supply $412.39 465379 03/21/2023 Open Hydro Turf $633.95
465380 03/21/2023 Open International Association for Property and Evidenc $65.00 465381 03/21/2023 Open Interstate Battery System Inc $141.58 465382 03/21/2023 Open Interview Now, Inc $7,046.25
465383 03/21/2023 Open Jahaira Paola Navarro dba Dance Into Fitness with $698.75 465384 03/21/2023 Open Jimenez Autobody Parts, Inc dba C & J Auto Parts $43.70 465385 03/21/2023 Open Johnson Associates $267.61
465386 03/21/2023 Open Julio Gil dba Central Coast Sign & Design $2,460.59 465387 03/21/2023 Open Karen Kramer Dba Kramer Workplace investigations $9,354.00 465388 03/21/2023 Open Karla's Janitorial & Suppliers, LLC $6,300.00 465389 03/21/2023 Open Kelly-Moore Paint Company $323.15 465390 03/21/2023 Open Kimley Horn And Assoc Inc $5,906.97 465391 03/21/2023 Open Kosmont & Associates, Inc. dba Kosmont Companies $3,885.70 465392 03/21/2023 Open Kysmet Security & Patrol $308.00 465393 03/21/2023 Open Lakeshore Learning Materials $773.36 465394 03/21/2023 Open LAZ KARP Associates, LLC $28,748.03 465395 03/21/2023 Open Life Assist $1,607.33
465396 03/21/2023 Open Marina Hotels CI LLC dba Country Inn & Suites $101,528.00 465397 03/21/2023 Open Martin Sandoval dba Lock Stock N' Barrel $99.00 465398 03/21/2023 Open MBS Business Systems $368.57
465399 03/21/2023 Open MCSI Water Systems Management $447.26 465400 03/21/2023 Open Medics For Life Inc $340.00
465401 03/21/2023 Open Miracle Playsystems, Inc. $2,743.35 465402 03/21/2023 Open Monterey Bay Chapter of the International Code Cou $300.00 465403 03/21/2023 Open Monterey County Business Council $500.00 465404 03/21/2023 Open Monterey County Emergency Communications Dept $865,246.00 465405 03/21/2023 Open Monterey County Health Department $6,156.00 user: Josephine Fernandez Pages: 2 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465406 03/21/2023 Open Monterey County The Herald $382.80 465407 03/21/2023 Open My Chevrolet $297.21
465408 03/21/2023 Open O'Reilly Auto Parts $63.85
465409 03/21/2023 Open Office Depot Business Service Division $794.78 465410 03/21/2023 Open Omar Garcia $375.00
465411 03/21/2023 Open One Workplace L Ferrari, LLC dba Peninsula Busines $7,325.91 465412 03/21/2023 Open Pacific Gas and Electric Company $3,459.15 465413 03/21/2023 Open Pacific Truck Parts Inc $975.30
465414 03/21/2023 Open Pavement Engineering, Inc $19,255.00 465415 03/21/2023 Open Pedro C Estrada Dba Estrada Janitorial Service $2,400.00 465416 03/21/2023 Open Pinnacle Medical Group Inc dba Pinnacle Healthcare $758.00 465417 03/21/2023 Open PJ Trucking Academy LLC $11,100.00 465418 03/21/2023 Open Preferred Alliance Inc. $65.00
465419 03/21/2023 Open Pure Water $54.13
465420 03/21/2023 Open Quality Water Enterprises $41.08 465421 03/21/2023 Open R3 Consulting Group, Inc. $410.00 465422 03/21/2023 Open RDO Equipment Company $325.22
465423 03/21/2023 Open Rent-A-Fence.com, Inc $117.99
465424 03/21/2023 Open Republic Services of Salinas $572.34 465425 03/21/2023 Open Republic Services of Salinas $1,303.60 465426 03/21/2023 Open Rexel USA, Inc dba Platt Electric Supply $13,404.98 465427 03/21/2023 Open Rincon Consultants, Inc. $1,657.50 465428 03/21/2023 Open RLV Inspection Services dba Win Home Inspections $710.00 465429 03/21/2023 Open Russell Branson dba Russ Branson Consulting $10,762.50 465430 03/21/2023 Open Safety-Kleen Systems, Inc. $752.82 465431 03/21/2023 Open Same Day Shred $45.00
465432 03/21/2023 Open San Lorenzo Lumber $211.43
465433 03/21/2023 Open Shaw HR Consulting Inc $735.00
465434 03/21/2023 Open SHI International Corp $26,622.00 465435 03/21/2023 Open Silicon Valley Mtry Bay Council Inc Boy Scouts of $613.00 465436 03/21/2023 Open Smith and Enright Landscaping $934.21 465437 03/21/2023 Open Star Sanitation Services $163.24 465438 03/21/2023 Open Stommel Inc dba Lehr $296.73
465439 03/21/2023 Open Sturdy Oil Company $2,888.58
465440 03/21/2023 Open SWRCB Accounting Office $1,016.00 465441 03/21/2023 Open Target Pest Control $350.00
465442 03/21/2023 Open Thomson-West/Barclays $347.69
465443 03/21/2023 Open Tiffanys Body Shop $1,881.96
465444 03/21/2023 Open Tri County Fire Protection $1,452.93 465445 03/21/2023 Open Tyler Business Forms $269.17
465446 03/21/2023 Open U.S. Bank National Association ND $19,007.96 465447 03/21/2023 Open United Parcel Service $70.66
465448 03/21/2023 Open United Site Services $375.10
user: Josephine Fernandez Pages: 3 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465449 03/21/2023 Open University Corporation at Monterey Bay $1,209.63 465450 03/21/2023 Open Valley Fabrication Inc $9,803.60 465451 03/21/2023 Open Valley Saw Shop $147.27
465452 03/21/2023 Open Vals Plumbing and Heating Inc $5,578.02 465453 03/21/2023 Open Verizon Wireless $2,238.65
465454 03/21/2023 Open Verizon Wireless $1,115.74
465455 03/21/2023 Open Verizon Wireless $2,676.79
465456 03/21/2023 Open Verizon Wireless Services LLC $38.01 465457 03/21/2023 Open W W Grainger Inc $3,798.20
465458 03/21/2023 Open WCAF, LLC dba Watsonville Ford $47.84 465459 03/21/2023 Open Whitson & Associates Inc dba Whitson Engineers $2,590.00 465460 03/21/2023 Open Worldpac $439.91
465461 03/21/2023 Open Angel Duarte $143.06
465462 03/21/2023 Open Angelita Fontelar c/o Modus Rex LLC $1,160.05 465463 03/21/2023 Open Palomo Fabrication Shop $154.00
465464 03/21/2023 Open Soarmates, LLC $275.50
465465 03/21/2023 Open Angel Gonzalez $128.57
465466 03/21/2023 Open Anissa Torres $79.00
465467 03/21/2023 Open Anthony Rocha $446.38
465468 03/21/2023 Open Beatriz Trujillo $242.82
465469 03/21/2023 Open Blake Ziebell $528.00
465470 03/21/2023 Open Claudia Qualtire $55.50
465471 03/21/2023 Open Eric Ruloph $18.00
465472 03/21/2023 Open Ernesto Valdez $237.75
465473 03/21/2023 Open Jose Arreola $18.00
465474 03/21/2023 Open Jose Fletes $528.00
465475 03/21/2023 Open Justin Heckman $79.00
465476 03/21/2023 Open Kimbley Craig $3,247.34
465477 03/21/2023 Open Kristan Lundquist $1,395.82
465478 03/21/2023 Open Leadership Monterey County $2,000.00 465479 03/21/2023 Open Manuel Martinez $185.00
465480 03/21/2023 Open Martha Guizar $55.50
465481 03/21/2023 Open Orlando Osornio $387.38
465482 03/21/2023 Open Robert Asamoto $240.00
465483 03/21/2023 Open Sophia Rome $294.04
465484 03/21/2023 Open Tanya Crawford $358.75
465485 03/21/2023 Open Thomas Melia $237.75
465486 03/21/2023 Open Secretary of State $40.00
465487 03/21/2023 Open Secretary of State $40.00
465488 03/24/2023 Open Alco Water $3,717.59
465489 03/24/2023 Open Pacific Gas and Electric Company $108,998.01 465490 03/24/2023 Open RCA Investments Inc dba Long Beach BMW Motorcycles $33,933.73 465491 03/24/2023 Open RCA Investments Inc dba Long Beach BMW Motorcycles $33,933.73 user: Josephine Fernandez Pages: 4 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465492 03/28/2023 Open Adolfo Lopez $89.50
465493 03/28/2023 Open Jaskiart Bhardwaj $228.00
465494 03/28/2023 Open Jeff Alford $220.75
465495 03/28/2023 Open Sam Klemek $51.75
465496 03/28/2023 Open Skylar Thornton $259.00
465497 03/28/2023 Open Contra Costa County Sheriff's Department $101.00 465498 03/28/2023 Open 2NDNATURE, LLC $12,406.00
465499 03/28/2023 Open 72 Hour LLC dba Chevrolet of Watsonville/National $512.33 465500 03/28/2023 Open Accounting Unit Manifest Fees Dept of Toxic Substa $141.07 465501 03/28/2023 Open Accounting Unit Manifest Fees Dept of Toxic Substa $23.77 465502 03/28/2023 Open Ace Hardware $52.15
465503 03/28/2023 Open Alhambra and Sierra Spring DS Waters of America LP $262.27 465504 03/28/2023 Open All Safe Security Alarm $135.00
465505 03/28/2023 Open Amazon.Com $603.42
465506 03/28/2023 Open American Council Of Engineering dba ACEC Californi $177.91 465507 03/28/2023 Open American Supply Company $2,155.97 465508 03/28/2023 Open Ana Rueda De Vidales dba JAV Language Solutions $210.61 465509 03/28/2023 Open Analgesic Services Inc $753.00
465510 03/28/2023 Open Applied Maintenance Supplies & Solutions LLC $643.41 465511 03/28/2023 Open Aramark Uniform & Career Apparel Group, Inc $634.62 465512 03/28/2023 Open Asap Alisal Signs And Printing $27.64 465513 03/28/2023 Open Ashley T. Martinez dba California Public Relations $4,550.00 465514 03/28/2023 Open AT and T $178.49
465515 03/28/2023 Open B & H Foto & Electronics Corp $3,575.69 465516 03/28/2023 Open Bandit Systems Inc dba Bandit Systems $7,357.36 465517 03/28/2023 Open Bear Electrical Solutions Inc $35,397.00 465518 03/28/2023 Open Bear Electrical Solutions Inc $131,773.41 465519 03/28/2023 Open Bergkamp Incorporated $3,175.27
465520 03/28/2023 Open Blue 360 Media, LLC $1,122.68
465521 03/28/2023 Open Breakout Prison Outreach dba California Youth Outr $15,370.07 465522 03/28/2023 Open Brodart Company $95.60
465523 03/28/2023 Open Cal Line Equipment Company $5,684.01 465524 03/28/2023 Open CALIFA Group $12,720.00
465525 03/28/2023 Open California Towing and Transport $125.00 465526 03/28/2023 Open California Water Service $672.17 465527 03/28/2023 Open Carollo Engineers, Inc $51,342.81 465528 03/28/2023 Open Catholic Charities of the Diocese of Monterey $78,363.12 465529 03/28/2023 Open CDW-G $25,977.42
465530 03/28/2023 Open Central Coast Center For Independent $8,715.94 465531 03/28/2023 Open Central Coast Commercial Tire Center Inc $80.00 465532 03/28/2023 Open Cintas $1,100.75
465533 03/28/2023 Open Coalition of Homeless Services Providers $14,831.18 465534 03/28/2023 Open Coast Automotive Warehouse Inc $272.19 user: Josephine Fernandez Pages: 5 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465535 03/28/2023 Open Coast Counties Truck & Equipment Co dba Coast Coun $24.53 465536 03/28/2023 Open Comcast (Business) $588.69
465537 03/28/2023 Open Community Homeless Solutions $34,184.10 465538 03/28/2023 Open Condor Security Of America Inc $7,563.78 465539 03/28/2023 Open County Of Santa Clara Office Of The Sheriff Depart $6,392.56 465540 03/28/2023 Open Craftwater Engineering, Inc $5,853.10 465541 03/28/2023 Open CSC Of Salinas $391.69
465542 03/28/2023 Open David E. Ramos, MD, Inc $7,200.00 465543 03/28/2023 Open DKF Solutions Group LLC $999.00
465544 03/28/2023 Open Downtown Streets, Inc $52,683.17 465545 03/28/2023 Open E2 Consulting Engineers, Inc $59,894.50 465546 03/28/2023 Open East Bay Tire Company $6,809.24
465547 03/28/2023 Open Economic & Planning Systems, Inc. $3,746.25 465548 03/28/2023 Open Ed Cardoza dba Happy Birds $1,100.00 465549 03/28/2023 Open Eden Council for Hope and Opportunity $8,118.25 465550 03/28/2023 Open Edges Electrical Group, LLC $116.99 465551 03/28/2023 Open Envision Ware Inc $33,219.97
465552 03/28/2023 Open Eric Ruloph $150.00
465553 03/28/2023 Open Fastenal Company $780.41
465554 03/28/2023 Open Ferguson US Hodings, Inc dba Ferguson Enterprises $9,038.00 465555 03/28/2023 Open First Alarm $2,566.55
465556 03/28/2023 Open First Trust Alarm Company Inc $301.50 465557 03/28/2023 Open Formax, LLC $1,680.00
465558 03/28/2023 Open Fresno Oxygen & Welding Suppliers, Inc. $490.74 465559 03/28/2023 Open Golden State Emergency Vehicle Service Inc $66.28 465560 03/28/2023 Open Goldfarb and Lipman $1,706.50
465561 03/28/2023 Open Granite Construction Company $20.00 465562 03/28/2023 Open Granite Rock Co $7,275.32
465563 03/28/2023 Open Griffin Structures, Inc $33,702.29 465564 03/28/2023 Open Harris and Associates $300.00
465565 03/28/2023 Open Home Depot Credit Services $3,594.51 465566 03/28/2023 Open Hudu Technologies, Inc $1,954.80 465567 03/28/2023 Open Hydro Turf $281.75
465568 03/28/2023 Open Industrial Machine Shop $1,073.13 465569 03/28/2023 Open Ingram Book Company $6,701.27
465570 03/28/2023 Open Interstate Battery System Inc $1,578.10 465571 03/28/2023 Open James Lewis $2,400.00
465572 03/28/2023 Open Jeffrey D. Premo dba Premo Roofing Company $4,400.00 465573 03/28/2023 Open Jeffrey D. Premo dba Premo Roofing Company $129,220.00 465574 03/28/2023 Open Jensco Inc Dba J M Electric $584.50 465575 03/28/2023 Open Johnson Electronics $705.97
465576 03/28/2023 Open Jose Reyes dba The Tint Shop $600.00 465577 03/28/2023 Open Kimball Midwest $315.74
user: Josephine Fernandez Pages: 6 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465578 03/28/2023 Open Kimley Horn And Assoc Inc $22,192.50 465579 03/28/2023 Open Kyle Umidon dba Northern California's Emergency $9,585.00 465580 03/28/2023 Open Las Casas de Madera Cooperative, Inc $3,916.00 465581 03/28/2023 Open Leon De Asis $2,000.00
465582 03/28/2023 Open Life Assist $69.88
465583 03/28/2023 Open Lizette Vasquez $807.66
465584 03/28/2023 Open Mackay Motor Parts, Inc dba Napa Auto Parts $101.85 465585 03/28/2023 Open Martin Sandoval dba Lock Stock N' Barrel $89.00 465586 03/28/2023 Open Midwest Tape, LLC dba Midwest Tape $4,400.69 465587 03/28/2023 Open Monica Cabrera Petty Cash Custodian $177.93 465588 03/28/2023 Open Monterey County District Attorney $19,874.41 465589 03/28/2023 Open Monterey County District Attorney $9,587.32 465590 03/28/2023 Open Monterey County Election Department $205,158.63 465591 03/28/2023 Open Monterey County Fire Chiefs Assoc $35.00 465592 03/28/2023 Open Monterey County Health Department $192,813.55 465593 03/28/2023 Open Monterey County Weekly $693.00
465594 03/28/2023 Open MP 21 Soledad Street, L.P. $507.00 465595 03/28/2023 Open MP 21 Soledad Street, L.P. $2,325.00 465596 03/28/2023 Open MP 21 Soledad Street, L.P. $14,625.00 465597 03/28/2023 Open National Development Council $5,833.33 465598 03/28/2023 Open NetFile Inc $2,500.00
465599 03/28/2023 Open O'Reilly Auto Parts $419.39
465600 03/28/2023 Open Office Depot Business Service Division $1,381.37 465601 03/28/2023 Open One Workplace L Ferrari, LLC dba Peninsula Busines $814.69 465602 03/28/2023 Open Oriental Trading Company Inc $166.96 465603 03/28/2023 Open Pacific Gas and Electric Company $2,658.37 465604 03/28/2023 Open Pacific Truck Parts Inc $1,740.17 465605 03/28/2023 Open Pape Machinery, Inc. $20,961.80
465606 03/28/2023 Open Pedro C Estrada Dba Estrada Janitorial Service $570.00 465607 03/28/2023 Open Peninsula Messenger, LLC $210.00 465608 03/28/2023 Open Petsmart $480.63
465609 03/28/2023 Open Protel Communications, Inc dba Protelesis Corporat $153.76 465610 03/28/2023 Open Quality Water Enterprises $41.08 465611 03/28/2023 Open RDO Equipment Company $31.31
465612 03/28/2023 Open Regional Government Services $465.84 465613 03/28/2023 Open Republic Services of Salinas $1,604.16 465614 03/28/2023 Open Rexel USA, Inc dba Platt Electric Supply $818.61 465615 03/28/2023 Open Russell Auria Pest Control Services $345.00 465616 03/28/2023 Open S & L Investments dba Salinas Valley ProSquad $1,697.98 465617 03/28/2023 Open Salinas Valley Roofing Company $3,757.06 465618 03/28/2023 Open Sentry Alarm System $1,411.50
465619 03/28/2023 Open Smart and Final Iris $828.07
465620 03/28/2023 Open Smith and Enright Landscaping $4,370.00 user: Josephine Fernandez Pages: 7 of 8 Wednesday, March 29, 2023 Number Date Status Payee Name
Transaction
Amount
General Account - General Account
Check
City of Salinas
Payment Register
From Payment Date: 3/15/2023 - To Payment Date: 3/28/2023 465621 03/28/2023 Open Sonetics Corporation dba Firecom $1,638.84 465622 03/28/2023 Open Sport Supply Group Inc dba BSN Sports $2,393.42 465623 03/28/2023 Open Stommel Inc dba Lehr $10,877.90
465624 03/28/2023 Open Sturdy Oil Company $3,464.80
465625 03/28/2023 Open Summit Safety LLC dba Summit Sign & Safety $366.24 465626 03/28/2023 Open Sunlite Auto Glass, Inc $398.13
465627 03/28/2023 Open Target Pest Control $255.00
465628 03/28/2023 Open Tri County Fire Protection $158.10 465629 03/28/2023 Open U.S. Bank National Association ND $18,997.51 465630 03/28/2023 Open United Parcel Service $79.87
465631 03/28/2023 Open University Corporation at Monterey Bay $29,610.79 465632 03/28/2023 Open Valley Fabrication Inc $3,846.80 465633 03/28/2023 Open Valley Saw Shop $753.43
465634 03/28/2023 Open Vals Plumbing and Heating Inc $1,954.99 465635 03/28/2023 Open Vegetable Growers Supply Company $667.89 465636 03/28/2023 Open Venissa Rosa Petty Cash Custodian $87.80 465637 03/28/2023 Open Verizon Wireless $6,239.66
465638 03/28/2023 Open Verizon Wireless $1,001.23
465639 03/28/2023 Open Verizon Wireless $3,832.30
465640 03/28/2023 Open Verizon Wireless $2,131.63
465641 03/28/2023 Open W W Grainger Inc $229.43
465642 03/28/2023 Open Walmart c/o Capitol One $2,143.97 465643 03/28/2023 Open WCAF, LLC dba Watsonville Ford $1,396.68 465644 03/28/2023 Open WCDJR LLC dba Watsonville Chrysler Dodge Jeep Ram $3,759.51 465645 03/28/2023 Open Western Growers Service Corp. $10,000.00 465646 03/28/2023 Open Worldpac $311.27
$3,398,912.88
General Account - General Account Totals
Type Check Totals:
user: Josephine Fernandez Pages: 8 of 8 Wednesday, March 29, 2023 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-152, Version: 1
Authorization to over-hire five (5) Firefighters; Workforce Allocation Adjustment Approve a Resolution to provide authorization to over-hire five Firefighters and one Administrative Fire Captain within the Fire Department.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: April 4, 2023
DEPARTMENT: ADMINISTRATION
FROM: Steven S. Carrigan, City Manager
Sam Klemek, Fire Chief
BY: Marina Horta-Gallegos, Human Resources Director
TITLE: AUTHORIZATION TO OVER -HIRE FIVE FIREFIGHTER S;
WORKFORCE ALLOCATION ADJUSTMENT
RECOMMENDED MOTION:
Staff recommends that the City Council provide authorization to over -hire five Firefighter s and one Administrative Fire Captain within the Fire Department.
BACKGROUND:
The authorized workforce for the Fire Department consists of 103 personnel of which 92 are currently filled suppression staff. However, the department regularly operates with at least seven or more less personnel due to industrial leave, job protected leave, or operational activities. This results in significant overtime due to minimum staffing requirements and long-term acting assignments. In addition to battalion company acting assignments, the department has staffed up to two suppression Captains in Administration to support training and Emergency Medical Services (EMS) functions in addition to other operation al activities. These assignments have necessitated backfilling at 10% out -of-class pay and , when coupled with overtime , significantly impacts the department’s overtime budget. Staff have costed the impact at an annual cost of approximately $1,230,000.
Staff recommend piloting an over-hire of five Firefighters and adding one Administrative Fire Captain. A permanent Administrative Fire Captain will eliminate the need for the 10% out -of- class pay while supporting the administrative functions of the Fire Department and further backfilling which we anticipate will reduce overtime. The Firefighter positions would need to be filled externally . The hiring process for Firefighters takes several months to accomplish with recruitment, application screening, interviews, background investigation, and medical and psychological exams. The hiring process is followed by a Fire Academy which can run up to approximately sixteen weeks. With anticipated retirements we expect the over-hires to be absorbed in the approved workforce through attrition.
Page | 2
Staff anticipate that the propo sed action will help reduce overtime, eliminate some long-term acting assignments, and allow for daily minimum staffing sufficient to staff apparatus without overtime.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed action meets the Effective and Culturally Responsive Government Council goal.
DEPARTMENTAL COORDINATION:
The Fire Department, Finance Department, and Human Resources coordinated in this effort.
FISCAL AND SUSTAINABILITY IMPACT:
The cost for five Firefighters and one Administrative Captain is approximately $1,000,000. Assets and fund balance from the current fiscal year are expected to be sufficient to meet minimal fiscal impacts this year. The cost will need to be included in the FY 2024 budget.
ATTACHMENTS:
Resolution
Page | 3
RESOLUTION AUTHORIZING FIVE FIREFIGHTR RECRUIT OVER-HIRE AND FY 22-23 WORKFORCE ALLOCATION ADJUSTMENT
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that an over-hire of five Firefighters is approved and the Fire Department workforce will reflect the addition of one Administrative Fire Captain.
PASSED AND APPROVED this 4th day of April 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#23-166, Version: 1
Certificate of Correction for the Parcel Map Recorded in the County of Monterey as Volume 12 of Parcel Maps at Page 75
Approve a Resolution accepting the Certificate of Correction for the parcel map recorded as Volume 12 of Parcel Maps at Page 75 in the County of Monterey to delete the area designated as “1.0 access denial” in accordance with Section 66472.1 of the Subdivision Map Act.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 4, 2023
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PE, PLS, DIRECTOR
BY: ADRIANA ROBLES, PE, CFM, CITY ENGINEER
TITLE: CERTIFICATE OF CORRECTION FOR THE PARCEL MAP
RECORDED IN THE COUNTY OF MONTEREY AS VOLUME 12
OF PARCEL MAPS AT PAGE 75
RECOMMENDED MOTION:
A motion to approve a Resolution accepting the Certificate of Correction for the parcel map recorded as Volume 12 of Parcel Maps at Page 75 in the County of Monterey to delete the area designated as “1.0 access denial” in accordance with Sections 66469 & 66472.1 of the Subdivision Map Act.
EXECUTIVE SUMMARY:
As part of a preapplication review with the developer of 1012 and 1016 Abbott St, s taff received a request to delete the strip of land designated as “1.0 access denial”. The contract City Surveyor and staff have reviewed the request and made findings in accordance with Sections 66469 & 66472.1 of the Subdivision Map Act.
BACKGROUND:
On September 21, 2022 , staff met with the development team of 1012 and 1016 Abbott St. The proposed development require s access along East Blanco Road to facilitate internal circulation.
The proposed site plan was reviewed by staff and access along East Blanco Road was determined to be acceptable. Development of the site will require a lot consolidation of two parcels, APN 002- 881-043 and 002-881-015. The parcels were created in 1978 through a parcel map recorded in the County of Monterey as Volume 12 Parcel Maps at Page 75. Said map identified a “1.0 access denial” segment along the East Blanco Road frontage. A review of the map was found to contain errors that the applicant would like to correct to delete the “1.0 access denial”. The following findings were made:
1. The map does not specifically dedicate the “access denial rights”.
2. The map does not provide acceptance of the “access denial rights”.
Page | 2
In accordance with Section 66472.1 of the Subdivision Map Act, a determination needs to be made that the “access denial rights” are no longer appropriate or necessary and that the modification does not impose any additional burden on the fee owners.
Staff has determined that the access denial rights are no longer necessary, and modification of the access denial rights do not create a burden on the fee owners. Deletion of the “1.0 access denial” area would facilitate the redevelopment two parcels that contain a shuttered business and vacant lot.
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:
This project addresses the current City Council’s goal of Economic Development.
DEPARTMENTAL COORDINATION:
The Public Works department coordinates review of entitlement applications and map changes with the Community Development Department.
FISCAL AND SUSTAINABILITY IMPACT:
Review fees are paid by the applicant in accordance with the Council approved Schedule of Fees and Services Charges. No impacts to the General Fund are anticipated.
ATTACHMENTS:
Resolution
Certificate of Correction
RESOLUTION NO.____________(N.C.S.)
A RESOLUTION ACCEPTING THE CERTIFICATE OF CORRECTION FOR THE PARCEL MAP RECORDED AS VOLUME 12 OF PARCEL MAPS AT PAGE 75 IN THE COUNTY OF MONTEREY TO DELETE THE AREA DESIGNATED AS “1.0 ACCESS DENIAL” IN ACCORDANCE WITH SECTIONS 66469 & 66472.1 OF THE
SUBDIVISION MAP ACT
WHEREAS, in 2022, staff met with the development team of 1012 and 1016 Abbott Street and,
WHEREAS, the proposed site plan requires access along East Blanco Road to facilitate internal circulation; and,
WHEREAS, the subject parcels were created th rough a parcel map recorded as Volume 12 Parcel Maps at Page 75 in the County of Monterey; and, WHEREAS, said Parcel Map contains a “1.0 access denial” segment along the frontage of East Blanco Road; and
WHEREAS, the map does not specifically dedicate the “access denial rights”; and WHEREAS, the map does provide acceptance of the “access denial rights”; and WHEREAS, the “access denial rights” are no longer appropriate or necessary; and WHEREAS, modification of the “access denial rights ” does not impose any additional burden on the fee owners; and
WHEREAS, the map is consistent with the General Plan, the zoni ng code and the Subdivision Map Act; and
WHEREAS, the proposed site plan is consistent with Sal inas Mun icipal Code section 31-401.10; and
WHEREAS, the map would not result in violations to the Salinas City Codes.
NOW, THEREFORE, BE IT RESOLVED BY THE SALINAS CITY COUNCIL that pursuant to Salinas Municipal Code sections 31-1202 and 31-401.10 the City Council accepts the Certificate of Correction for the parcel map recorded as Volume 12 of Parcel Maps at
accordance with 66469 & 66472.1 of the Subdivision Map Act.
PASSED AND APPROVED this 4th day of April 2023 by the following vote:
YES:
NOES:
ABSENT: APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_______________________________
Patricia M. Barajas, City Clerk
When Recorded mail to: THIS SPACE IS RESERVED
Morton & Pitalo, Inc. FOR THE RECORDER’S USE
600 Coolidge Drive
Suite 140
Folsom, CA 95630
Attention: Michael J. Chiara, P.L.S.
CERTIFICATE OF CORRECTION
NOTICE IS HEREBY GIVEN THAT THE PARCEL MAP OF FILED FOR RECORD ON MARCH 22, 1978 IN BOOK 12 OF PARCEL MAPS, AT PAGE 75, MONTEREY COUNTY RECORDS, IS HEREBY CORRECTED IN ACCORDANCE WITH SECTIONS 66469 & 66472.1 OF THE SUBDIVISION MAP ACT AS FOLLOWS:
SHEET 1 OF 1 – THE AREA DESIGNATED AS “1.0 ACCESS DENIAL” IS HEREBY DELETED.
(1) THE MAP DOES NOT SPECIFICALLY DEDICATE THE “ACCESS DENIAL RIGHTS”; (2) THE MAPS DOES NOT PROVIDE ACCEPTANCE OF THE “ACCESS DENIAL RIGHTS” (3) IN ACCORDANCE WITH SECTION 66472.1 OF THE SUBDIVISION MAP ACT, THE CITY OF SALINAS HAS DETERMINED THAT CHANGES IN CIRCUMSTANCES THAT:
a. MAKE THE “ACCESS DENIAL RIGHTS” NO LONGER APPROPRIATE OR NECESSARY; b. THE MODIFICATION DOES NOT IMPOSE ANY ADDITIONAL BURDEN ON THE FEE OWNERS;
THE NAME OF FEE OWNERS AT THE TIME OF RECORDATION OF PARCEL MAP WAS:
JOSEPHINE BRAGA, ANNA CALVELLO, IRMA, O’GRADY AND EVELYN WATERS
CERTIFICATE OF SURVEYOR
THIS IS TO CERTIFY THAT THE ABOVE CERTIFICATE OF CORRECTION WAS PREPARED BY OR UNDER THE DIRECTION AND CONTROL OF THE UNDERSIGNED REGISTERED LAND SURVEYOR.
__________ _______________________________ ___ DATE JEROME R. JONES, LS 4922
LICENSE EXPIRES: DECEMBER 31, 2024
CERTIFICATE OF CITY ENGINEER
THIS IS TO CERTIFY THAT THIS CERTIFICATE OF CORRECTION HAS BEEN EXAMINED THIS ____DAY OF ________________________, 2023 FOR CONFORMANCE WITH THE REQUIREMENTS OF SECTIONS 66469 AND 66472.1 OF THE SUBDIVISION MAP ACT.
__________ ____________________________________ DATE ADRIANA ROBLES, RCE 69142
EXPIRES: JUNE 30, 2024
CITY ENGINEER, CITY OF SALINAS
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-174, Version: 1
Professional Service Agreement between the City of Salinas and Kimley Horn and Associates Inc.
Approve a Resolution approving a Professional Services Agreement between the City of Salinas and Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design; and authorizing the use of Special Const Assist - Fed & St Funds up to $411,970 for said agreement.
City of Salinas Printed on 3/29/2023Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 4, 2023
DEPARTMENT: PUBLIC WORKS, TRANSPORTATION & TRAFFIC DIVISION FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: ANDREW EASTERLING, TRAFFIC ENGINEER
TITLE: PROFESSIONAL SERVICE AGREEMENT BETWEEN THE CITY
OF SALINAS AND KIMLEY HORN AND ASSOCIATES INC.
RECOMMENDED MOTION:
A motion to approve a Resolution 1) approving the agreement for Professional Services between the City of Salinas and Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design; and 2) authorizing the establishment of appropriations and a corresponding revenue budget in the Public Works Grants – Fed. & St.
Fund of up to $411,970 for the agreement with Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design.
EXECUTIVE SUMMARY:
The City of Salinas City Council approved Resolution No. 21731 on November 5, 2019, accepting the Alisal Vibrancy Plan as a key strategic planning document. A goal within the Alisal Vibrancy Plan is to improve internet capabilities. The City of Salinas applied for and was awarded $470,304 of Local Agency Technical Assistance (LATA) grant funds to develop the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design with support from Kimley Horn and Associates. On February 21, 2023, the City accepted grant funds by Council Resolution No. 22593. Staff recom mends the approval of the agreement for Professional Services between the City of Salinas and Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design.
BACKGROUND:
The Alisal Vibrancy Plan (AVP) was the result of years of visioning, community organizing, and relationship building between the City of Salinas and Alisal residents. The AVP’s purpose is to communicate the collective vision, goals and desires of those who live, work, and shop in the Alisal. Over 2,000 residents and community stakeholders participated in a community - led engagement process that resulted in more than 150 strategies. Community recommendations evolved into goals, policies and actions that are the documented as implementation actions in the final Alisal Vibrancy Plan. Several goals within the Transportation and Infrastructure related to improving internet capabilities. Specifically, goals T3.1c, T3.1d, and T3.1e, shown below, Page | 2
describe implementation actions for the City to perform in order to fulfill community identified needs.
TI 3.1.c – Improve Internet Capabilities. Work with internet service and utility providers to improve broadband internet connectivity and speeds in the Alisal. Partner with nonprofits or similar groups to provide reduced cost or free access to low -income residents and businesses.
TI 3.1.d - Promote and expand free WIFI zones. Improve wireless internet speed and free accessibility at City facilities and schools.
TI 3.1.e – Install Dark Fiber. After completing the fiber network from Hartnell College to the new Public Safety Building along West Alisal Street, continue installing the network along East Alisal Street to the Hartnell College Alisal Campus.
On February 24, 2022, the California Public Utilities Commission (CPUC) established the LATA grant program and implemented current requirements and guidelines for the program. The LATA grant program provides funding to assist California cities and tribes in their efforts to provide high- speed broadband to unserved Californians. The grant program provides reimbursement for pre - construction expenses that facilitate development of broadband network deployment projects to areas in need. Grants may be used to reimburse eli gible costs such as environmental, feasibility, and engineering design studies or reports, needs assessments, market studies, broadband strategic plans, and business plans, forming a joint powers authority, and consultant and community-based organization services.
The City of Salinas submitted a grant application for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design with support from Kimley Horn . The scope of work would include network design services for priority areas in and around unserved/underserved areas within the City of Salinas. The network design process will include engineering drawings and standard specifications for the City's fiberoptic network for a constructible network design that is shovel -ready and for a priority unserved/underserved area. The project will determine cost estimations for budgeting and planning purposes. The project will develop an implementation strategy. This project will be completed well within the 24-month timeline. The City was awarded $470,304 in grant funds to develop the plan.
On August 16, 2022, the City published a Request for Qualifications for Civil Engineering and Project Management, Traffic & Transportation, and National Pollutant Discharge Elimination System (NPDES), Support Services. The scope of work included c ivil engineering and project management Services relate to providing broad civil engineering works which include traffic & transportation, structural design/engineering, National Pollutant Discharge Eliminatio n System (NPDES), environmental, construction support, construction management, grant writing, and planning services from preliminary project concept through construction. Kimley Horn submitted a proposal and was selected for award by an evaluation commit tee. A traffic and transportation on-call contract was awarded to Kimley Horn and Associates, on January 10, 2023, by Council Resolution 22563. Kimley Horn and Associates is specially trained, experienced, and competent to perform the services for the Sa linas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design. Additionally , the consultant is willing to render such professional services, and has provided a project proposal for $411,970. Staff recommends the Page | 3
approval of the agreement for Professional Services between the City of Salinas and Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design.
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 Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Netwo rk Design supports the City Council’s Goals of “Economic Development” and “Infrastructure and Environmental Sustainability”.
DEPARTMENTAL COORDINATION:
The Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design will be devel oped by Public Works in close coordination with Community Development, and Information Technology Division. The Finance Department will assist in the project accounting.
FISCAL AND SUSTAINABILITY IMPACT:
There is no impact to the General Fund and this p roject is 100% funded by a state grant with no local match. This action authorizes the establishment of appropriations and a corresponding revenue budget in the Public Works Grants – Fed. & St. Fund of up to $411,970 for the agreement with Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design.
ATTACHMENTS:
Resolution
Attachment 1: Professional Services between the City of Salinas and Kimley Horn and Associates Inc.
Attachment 2: Resolution No. 22593
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION 1) APPROVING THE AGREEMENT FOR PROFESSIONAL
SERVICES BETWEEN THE CITY OF SALINAS AND KIMLEY HORN AND ASSOCIATES INC. FOR THE SALINAS BROADBAND MASTER PLAN AND ALISAL NEIGHBORHOOD BROADBAND FIBER NETWORK DESIGN; AND 2)
AUTHORIZING THE USE OF SPECIAL CONST ASSIST – FED & ST FUNDS UP TO $411,970 FOR THE AGREEMENT WITH KIMLEY HORN AND ASSOCIATES INC.
FOR THE SALINAS BROADBAND MASTER PLAN AND ALISAL NEIGHBORHOOD BROADBAND FIBER NETWORK DESIGN.
WHEREAS, the City of Salinas City Council approved Resolution No. 21731 on November 5, 2019, accepting the Alisal Vibrancy Plan as a key strategic planning document; and
WHEREAS, a goal within the Alisal Vibrancy Plan is to improve internet capabilities; and
WHEREAS, the City of Salinas applied for $470,304 of Local Agency Technical Assistance grant funds to develop the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design with support from Kimley Horn and Associates; and
WHEREAS, On February 21, 2023, the City accepted grant funds by Council Resolution No. 22593;
WHEREAS, A traffic and transportation on-call contract was awarded to Kimley Horn and Associates, on January 10, 2023, by Council Resolution No. 22563; and
WHEREAS, Kimley Horn and Associates is specially trained, experienced, and competent to perform the services for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design; 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).
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby approves a Resolution approving the agreement for Professional Services between the City of Salinas and Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design; and
BE IT FURTHER RESOLVED that the Salinas City Council hereby approves a Resolution authorizing the establishment of appropriations and a corresponding revenue budget in the Public Works Grants – Fed. & St. Fund of up to $411,970 for the agreement with Kimley Horn and Associates Inc. for the Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design.
2 PASSED AND APPROVED this 4th day of April 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Form: Professional Services Agreement v. January 2021 Page 1 of 16 Kimley-Horn and Associates, Inc.
August. 2022
AGREEMENT
FOR PROFESSIONAL SERVICES
BETWEEN
THE CITY OF SALINAS AND
KIMLEY-HORN AND ASSOCIATES, INC.
Form: Professional Services Agreement v. January 2021 Page 2 of 16 Kimley-Horn and Associates, Inc.
January, 2023
Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4
1. Scope of Service. ................................................................................................................. 4
2. Term; Completion Schedule. ............................................................................................... 4
3. Compensation. ..................................................................................................................... 4
4. Billing. ................................................................................................................................. 4
5. Meet & Confer. .................................................................................................................... 5
6. Additional Copies................................................................................................................. 5
7. Responsibility of Consultant. ............................................................................................... 5
8. Responsibility of City. ......................................................................................................... 5
9. Acceptance of Work Not a Release. .................................................................................... 6
10. Indemnification and Hold Harmless. ................................................................................... 6
11. Insurance. ............................................................................................................................. 6
12. Access to Records. ............................................................................................................... 6
13. Non-Assignability. ............................................................................................................... 6
14. Changes to Scope of Work. ................................................................................................. 7
15. Ownership of Documents. ................................................................................................... 7
16. Termination. ......................................................................................................................... 7
17. Compliance with Laws, Rules, and Regulations. ................................................................ 8
18. Exhibits Incorporated. .......................................................................................................... 8
19. Independent Contractor. ....................................................................................................... 8
20. Integration and Entire Agreement. ....................................................................................... 8
21. Jurisdiction and Venue. ........................................................................................................ 8
22. Severability .......................................................................................................................... 9
23. Notices. ................................................................................................................................ 9
24. Nondiscrimination................................................................................................................ 9
25. Conflict of Interest. ............................................................................................................ 10
26. Headings. ........................................................................................................................... 10
27. Attorneys’ Fees .................................................................................................................. 10
28. Non-Exclusive Agreement. ................................................................................................ 10
29. Rights and Obligations Under Agreement. ........................................................................ 10
30. Licenses.............................................................................................................................. 10
31. Counterparts. ...................................................................................................................... 10
Form: Professional Services Agreement v. January 2021 Page 3 of 16 Kimley-Horn and Associates, Inc.
January, 2023
32. Legal Representation. ........................................................................................................ 10
33. Joint Representation. .......................................................................................................... 11
34. Warranty of Authority........................................................................................................ 11
35. No Waiver of Rights. ......................................................................................................... 11 Exhibit A- Insurance Requirements .............................................................................................. 13 Exhibit B- Scope of Service .......................................................................................................... 16
Form: Professional Services Agreement v. January 2021 Page 4 of 16 Kimley-Horn and Associates, Inc.
January, 2023
AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND KIMLEY-HORN AND ASSOCIATES, INC.
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this ____ day of , 2023, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and KIMLEY-HORN AND ASSOCIATES, INC., a North Carolina corporation, (hereinafter “Consultant”).
RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and
WHEREAS, Consultant and City entered into a master service agreement for traffic and transportation on-call services by Council Resolution No 22563 (executed January 10, 2023); and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, City and Consultant agree as follows:
TERMS
1. Scope of Service. T he project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto and incorporated herein by reference.
2. Term; Completion Schedule.
This Agreement shall commence on ____________, 2023
and shall terminate on June 30, 2024, unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties, and may be terminated only pursuant to the terms of this Agreement.
3. Compensation. C
ity hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed four hundred eleven thousand, nine hundred seventy dollars ($411,970).
4. Billing.
Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice.
Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
Form: Professional Services Agreement v. January 2021 Page 5 of 16 Kimley-Horn and Associates, Inc.
January, 2023
(A) A brief description of services performed;
(B) The date the services were performed;
(C) The number of hours spent and by whom;
(D) A brief description of any costs incurred; and
(E) The Consultant’s signature.
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.
City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.
5. Meet
& Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.
6. Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.
7. Responsibility of Consultant. By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.
8. R
esponsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(
A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.
Form: Professional Services Agreement v. January 2021 Page 6 of 16 Kimley-Horn and Associates, Inc.
January, 2023
(B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C) Steve Carrigan, City Manager, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D) Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.
9. A
cceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.
10. I
ndemnification and Hold Harmless.
Consultant agrees to indemnify, including the cost to defend, City and its officers, officials, employees, and volunteers from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant and its employees or agents in the performance of services under this contract, but this indemnity does not apply to liability for damages arising from the sole negligence, active negligence, or willful acts of the City; and does not apply to any passive negligence of the City unless caused at least in part by the Consultant (aka Design Professional).
11. In
surance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.
12. A
ccess to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours.
Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.
13. No
n -Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.
Form: Professional Services Agreement v. January 2021 Page 7 of 16 Kimley-Horn and Associates, Inc.
January, 2023
14. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes.
Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.
15. O
wnership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.
16. T
ermination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
(2) For any reason whatsoever.
(B) U
pon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
(
1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.
(C) In the event that this Agreement is terminated by City for any reason, Consultant shall:
Form: Professional Services Agreement v. January 2021 Page 8 of 16 Kimley-Horn and Associates, Inc.
January, 2023
(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and
(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.
17. C
ompliance with Laws, Rules, and Regulations . Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.
18. E
xhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.
19. I ndependent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.
20. In
teg ration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.
21. J
urisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.
Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.
Form: Professional Services Agreement v. January 2021 Page 9 of 16 Kimley-Horn and Associates, Inc.
January, 2023
22. S everability . If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.
23. N
otices.
(A) Written notices to the City hereunder shall, until further notice by City, be addressed to:
City Manager
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
With a copy to:
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
Kimley-Horn and Associates
Attn: Elbert Chang
1300 Clay Street, Suite 325
Oakland, CA 94612
(C) The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.
(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.
24. N
ondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion,
Form: Professional Services Agreement v. January 2021 Page 10 of 16 Kimley-Horn and Associates, Inc.
January, 2023
ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.
25. C
onflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.
26. H
eadings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.
27. A
ttorney s’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.
28. No
n -Exclusive Agreement. This Agreement is non-exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.
29. R
ights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.
30. L
icenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.
31. C
ounterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
32. L
egal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any
Form: Professional Services Agreement v. January 2021 Page 11 of 16 Kimley-Horn and Associates, Inc.
January, 2023
statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.
33. J
oint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.
34. Warranty of Authority.
Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.
35. No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof.
Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
I
N WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.
CITY OF SALINAS
____________________________
Steve Carrigan, City Manager
APPROVED AS TO FORM:
_________________________
□ Christopher A. Callihan, City Attorney, or
□ Rhonda Combs, Assistant City Attorney
CONSULTANT
___________________________________
By (Printed Name): ___________________
Form: Professional Services Agreement v. January 2021 Page 12 of 16 Kimley-Horn and Associates, Inc.
January, 2023
Its (Title): ___________________________
Form: Professional Services Agreement v. January 2021 Page 13 of 16 Kimley-Horn and Associates, Inc.
January, 2023
Exhibit A- Insurance Requirements
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant , his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
(A) Commercial General Liability (“CGL”): Insuranc e Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (B) Automobile Liability: ISO Form CA 0001 covering any auto, or if Consult ant has no owned autos, hired and non- owned, with limit s no less than $1,000,000 per accident for bodily injury and property damage.
(C) Workers’ Compensation insurance as required by the State of California, with S tatutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
(D) Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Salinas,
its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Exhibit B - Scope and Services
Form: Professional Services Agreement v. January 2021 Page 14 of 16 Kimley-Horn and Associates, Inc.
January, 2023
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to C ity a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver o f subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultant to and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Dat e prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Form: Professional Services Agreement v. January 2021 Page 15 of 16 Kimley-Horn and Associates, Inc.
January, 2023
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all sub-consultants and/or subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Maintenance of Insurance
Maintenance of insurance by Consultant as specified shall in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.
For
m: Professional Services Agreement v. January 2021 Page 16 of 16 Kimley-Horn and Associates, Inc.
January, 2023
Ex
hibit B- Scope of Service
[Scope of Service; Compensation]
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712 October 28, 2022
(via email)
Mr. Andrew Easterling, PE, TE, PTOE
City of Salinas
Public Works Department
200 Lincoln Avenue
Salinas, CA 93901
RE: Proposal for Salinas Broadband Master Plan and Alisal Neighborhood Broadband Fiber Network Design
Dear Andrew:
Thank you for inviting Kimley-Horn and Associates, Inc. (Kimley-Horn) to provide professional services to the Salinas Broadband Master Plan. Alisal Neighborhood Broadband Fiber Network Design. Attached is our scope and fee based on our various meetings and discussion with the City.
We look forward to continuing our partnership with the City on this transformative project.
Very best regards,
KIMLEY-HORN AND ASSOCIATES, INC.
Elbert Chang, PE, TE
PE No. C61548 and TR2244
Project Manager
Exhibit B - Scope and Services
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712
PROJECT UNDERSTANDING
The City of Salinas desires to extend the City’s fiber network to Alisal Neighborhood Revitalization Area to provide low-cost, high-speed broadband to this key unserved/underserved neighborhood.
The fiber network would serve as a foundation for providing free public Wi-Fi from City-owned facilities and serve as a model for extending free public Wi-Fi___33 to other areas of the City. The Project will also develop a Master Plan that includes developing a broadband operations and maintenance plan, governance model alternatives analysis, identifying funding sources, and public- private partnership opportunities with broadband service providers to provide and increase digital access for underserved/unserved households throughout the City. It will provide preliminary design and cost estimates for projects to bridge the digital divide.
SCOPE OF SERVICES
Task 1: Project Management and Meetings
Immediately following receipt of notice-to-proceed, Kimley-Horn will schedule a project kick-off meeting with the City to review project objectives, project schedule, coordination with other groups, City and Consultant roles, and other pertinent items. This task includes monthly progress meetings. Kimley-Horn will prepare meeting agenda and meeting notes capturing action items and key decisions. Meetings are assumed to be held virtually.
Kimley-Horn shall prepare a project schedule with major milestones to the City for approval. The project schedule shall include each task, subtasks, milestones, submittals, and meetings. Kimley- Horn anticipates using MS-Project and will present the initial schedule to the City for review and approval. The project schedule will be update monthly.
Other elements of this task include general project management and coordination, including management of project staff, quality control, schedule, and project accounting. Monthly project invoices will be prepared and submitted. This task assumes that the project design duration of up to 13 months.
Kimley-Horn will provide Detailed Project Information to support CPUC Quarterly Reporting by the City. Kimley-Horn will coordinate with City on standard reporting format to be completed by Kimley-Horn for each quarter through June 30, 2024. Kimley-Horn will address up to one set of comments by City for each submittal. Kimley-Horn will responds to up to one set of questions by CPUC per submittal.
This task includes presentation on project progress at up to 1 public meeting (City Council or community meetings). Kimley-Horn will confirm purpose of public meetings and required exhibits with City project manager. Kimley-Horn will provide written updates for inclusion with city Staff reports.
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712 Task 1 Deliverables
All deliverables will be submitted to the City electronically. § Initial project schedule and monthly schedule updates § Monthly progress reports and invoices
§ Meeting agenda/notes
§ CPUC Quarterly Reports
Task 2: Data Collection/Existing Conditions
To aid in the evaluation and design tasks of this project, Kimley-Horn will request the following materials from the City/Stakeholders:
§ Existing as-builts
§ City Fiber Network
§ Utility information of City-owned facilities
§ Network information of City buildings.
§ Up-to-date contact list (phone number, email, and address, as available) of utility companies § Right-of-way maps
Kimley-Horn will submit utility request letters to utility companies with potential facilities in the project vicinity. These utilities will typically consist of PG&E, television, cable, and municipal utilities such as water, storm drain, and sanitary sewer. It is assumed that the City will provide a list of contact information for utility company representatives within the project area.
After the review of City-provided documentation, Kimley-Horn will conduct a field review of the project area to check the existing infrastructure information provided by the City and record observed deficiencies. During the field review, Kimley-Horn will evaluate traffic signal cabinet infrastructure, building termination points, connecting conduit and pull box infrastructure. Kimley- Horn will request a field walkthrough of project buildings with City IT to review building fiber access points, building cabling/routing, and placement for major communications equipment.
Task 2 Deliverables
All deliverables will be submitted to the City electronically. § Utility Request letters
§ Summary Memo of fieldwork findings
Task 3: Gap Analysis and Preliminary Projects
Kimley-Horn will hold and schedule one workshop with City staff to obtain feedback regarding priority sites, broadband uses, broadband needs, current projects/programs, and “wishlist” items in the context of a comprehensive community vision that includes partnership between City, private service providers, and community groups. Key underserved areas already identified by the City
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712 include the Alisal Neighborhood Revitalization Area, Chinatown and parts of downtown. Kimley- Horn will summarize workshop outcomes and identify broadband infrastructure goals for equitable public use, economic development, and City operations purposes that are consistent with the City’s overall policies, priorities, and aspirations.
As an optional task, Kimley-Horn will provide support for additional community outreach and coordination with City staff for additional input to include with the City’s existing conditions and gap analysis.
Kimley-Horn will review fiber network and city facility information (gathered in Task 2) along with workshop feedback to identify gaps in the existing City infrastructure and summarize them with a high-level, city-wide network diagram. Kimley-Horn will prepare a list of strategic enhancements to the network to support broadband access and service for underserved/unserved households. The enhancements will be broken into projects matching project objectives and provide a description of project limits.
Task 3 Deliverables
§ Summary of Existing Conditions Technical Memo
§ Conceptual City/Community Network Design
§ Preliminary Broadband Project List-Draft
Task 4: Alisal Neighborhood Fiber Network Design
Kimley-Horn will prepare construction documents for installation of high-speed fiber-optic network for the Alisal Neighborhood. The Alisal fiber network will include redundant rings that connect to the City’s fiber-optic network and key City and community facilities in the Alisal Neighborhood, including Hartnell East, community buildings, and parks. The fiber network shall provide free public Wi-Fi using City facilities and assets, including building, traffic signals, and streetlights. The design will include system integration to the City’s network at City Hall and private ISP access at Hartnell West.
Prepare Project Base Map
Upon completion of the field review, Kimley-Horn will create a base map in AutoCAD of the project limits and project buildings. Kimley-Horn will prepare the base map using high-resolution, orthogonally rectified aerials retrieved from Nearmap PhotoMaps TM. The base mapping will be reviewed and supplemented based on field observations.
35% Design Documents
Kimley-Horn will prepare 35% level construction documents that identify key network communication hubs, Wi-Fi access points, and fiber-optic cable runs. Fiber interconnect conduits sheets will be prepared at 1=40. Potential network system integration items will be identified.
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712 65% Plans, Specifications, and Estimate (PS&E) documents Kimley-Horn will review City comments on the 35% design documents and provide preliminary comment response. Kimley-Horn will meet virtually with City to review. Based on outcome, Kimley- Horn will prepare 65% Plans, Specifications, and Estimate (PS&E) documents showing installation of fiber-optic cable network in existing and new conduits, fiber termination equipment, communications equipment, and details for connection to the existing City fiber network. The plans will include enough detail to provide reviewers a full review of project intent, including electrical details, communications network layout, new equipment locations, splice boxes and pull boxes, conduit/cable routing, cabinet modifications, and end equipment integration.
We anticipate the plan set will consist of the following sheets:
§ Cover Sheet (1 sheet)
§ General Notes (1 sheets)
§ Key Maps (2 sheets)
§ System Diagram (up to 4 sheets)
§ Fiber Optic Interconnect Plans (approximately 16 sheets) Project Technical specifications will be a full draft with initial boilerplate language and anticipated project elements and requirements. They will be based on the City’s specifications from the recent Smart Corridor Project currently under construction.
The engineer’s opinion of probable cost will be developed based on other similar project construction costs and bid results from the area. It will consist of a complete bid list and quantities at the current design stage, and include a contingency and possible alternate bid items that may need to be considered based on the project’s construction budget.
Based on the 65% design, Kimley-Horn will identify system integration items requiring further coordination for successful network performance
90% PS&E Documents
Upon completion of the 65% design review by the City and comment review meeting, Kimley-Horn will advance design to 90% level. Kimley-Horn anticipates the following sheets being added to the set:
§ Construction Details (up to 4 sheets)
§ Fiber Hub and termination Details (up to 2 sheets) – showing building entry and termination details
§ Splice Diagrams (up to 7 sheets) – documenting proposed fiber communication channels and rings.
Project Specifications and Cost Estimate will be updated to include additional design elements.
As part of the 90% Design effort, Kimley-Horn will coordinate with City IT and other network provides to resolve system integration issues identified in the 65% design
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712 100% Final Bid Ready PS&E Documents
Upon completion of the 95% design review by the City and comment review meeting, Kimley-Horn will produce a file bid-ready set for advertisement. It is assumed that comments at this stage will be editorial in nature and any design changes at this point will be treated as additional services.
Task 4 Deliverables
All deliverables will be submitted to the City electronically. § Project Base Map
§ 35% PS&E documents
§ 65% PS&E documents with comment response mark-ups
§ 95% PS&E documents with comment response mark-ups
§ 100% Final – Bid Ready PS&E documents with comment response mark-ups Task 5: Alisal Neighborhood WiFi Network Preliminary Design Under this task, Kimley-Horn will coordinate with to identify wireless technology trends, and potential private partners to provide free public Wi-Fi for the Alisal Neighborhood.
Wireless Technology Research and Private Partnership Outreach Kimley-Horn will work with the City to identify potential private ISP and wireless carriers that may be interested in a public private partnership. Kimley-Horn will work with City to identify feasibility of offering various City broadband assets to private partners, including § Existing conduit, buildings, rooftops
§ Existing poles and policies for installing aerial fiber and wireless equipment.
Kimley-Horn will review wireless technology offerings and design requirements on the City’s network to support them and the recommended viability of such technology.
Preliminary PG&E Outreach
Kimley-Horn will coordinate with City to explore electrical and structural requirements for installing wireless network equipment (e.g., microwave repeater radios, mesh network, Wi-Fi access points) on streetlights (City-owned and PG&E owned), traffic signals and buildings. As an optional task, Kimley-Horn will provide PG&E traffic negotiations technical support consisting of providing unit and circuit electrical loads for new equipment, responding the PG&E questions, and providing calculations and documentation in a format acceptable to PG&E. As an optional task, Kimley-Horn will provide structural analysis for radio attachment details.
Wireless Network Design
Based on the information gather above, Kimley-Horn will prepare conceptual design for City wireless network connected to the City’s fiber network. The conceptual design will include typical functional location scenarios, required radio and communications equipment, and network integration
kimley-horn.com 1300 Clay Street, Suite 325, Oakland, CA 94612 510 625 0712 requirements. The conceptual design will be presented in graphical format with summary technical memo.
Based on the conceptual design, Kimley-Horn will prepare preliminary design for public Wi-Fi network for the Alisal Neighborhood. The preliminary design will include high-level site and path analysis (based on google earth), supplemented by visual surveys, and identify key nodes and community wireless access points. ROM cost estimate will be provided for budgetary purposes Task 5 Deliverables
§ Wireless Network Conceptual Design and requirements
§ Alisal Preliminary Network Design and Cost Estimate
Task 6: Implementation Plan
Under this task, Kimley-Horn will prepare DRAFT implementation plan elements to be included into the City Broadband Master Plan
Develop Fiber Network Operations Maintenance Plan
Kimley-Horn will confirm with City near-peer public agencies and research their operations and maintenance agreements and costs. Kimley-Horn will develop a summary table with measures to strengthen the City’s existing network and mitigate fiber damage, including high-level effort and costs.
Kimley-Horn will conduct a workshop with City Departments (including public works, transportation, and IT) to identify roles and responsibilities for maintaining fiber, current processes, maintenance/reporting gaps, and feasibility of implementing various network-strengthening efforts identified above.
Based on information collected above, Kimley-Horn will develop a fiber network maintenance plan.
The fiber network maintenance plan will include the following:
§ Needed technical support and reporting tools
§ Annual ongoing Maintenance needs and cost estimates (bare minimum) § Identify high-level key responsibilities by different departments Governance Structures Alternative Analysis
Kimley-Horn will research alternative governance structures operations and maintenance of broadband network. This includes partnering with other jurisdictions in Monterey County such as the South Salinas Valley Broadband Authority (SSVBA) and member agencies of King City, Greenfield, Soledad, Gonzales, and Monterey County, and connection to the California State Broadband Middle Mile Network.