Agenda Packet — Salinas City Council, May 16, 2023 (part 9 of 9)

SCI Consulting Group
January 1, 2023

AGREEMENT

FOR PROFESSIONAL SERVICES

BETWEEN

THE CITY OF SALINAS AND SCI

CONSULTING GROUP

Page 2 of 14 ends

SCI Consulting Group
January 1, 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. ................................................................................................. 6

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 .......................................................................................................................... 8

23. Notices. ................................................................................................................................ 9

24. Nondiscrimination................................................................................................................ 9

25. Conflict of Interest. .............................................................................................................. 9

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

Page 3 of 14 ends

SCI Consulting Group
January 1, 2023

32. Legal Representation. ........................................................................................................ 10

33. Joint Representation........................................................................................................... 10

34. Warranty of Authority........................................................................................................ 11

35. No Waiver of Rights. ......................................................................................................... 11 Exhibit A- Insurance Requirements.............................................................................................. 12 Exhibit B- Scope of Service...........................................................Error! Bookmark not defined.

Page 4 of 14 ends

SCI Consulting Group
January 1, 2023

AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SALINAS AND SCI CONSULTING GROUP
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this ____ day of May, 2023, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and SCI Consulting Group, (hereinafter “Consultant”).

RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.

NOW, THEREFORE, City and Consultant agree as follows:

TERMS

1. Scope of Service. The project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto and incorporated herein by reference.

2. Term; Completion Schedule. This Agreement shall be deemed to have commenced on January 1, 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. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $180,000.

4. Billing. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice.

Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
(A) A brief description of services performed;
(B) The date the services were performed;
(C) The number of hours spent and by whom;
(D) A brief description of any costs incurred; and

Page 5 of 14 ends

SCI Consulting Group
January 1, 2023
(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.

Page 6 of 14 ends

SCI Consulting Group
January 1, 2023
(C) Lisa Brinton, Community Development Director, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret, and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D) Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.

9. Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.

10. Indemnification and Hold Harmless.

Consultant shall defend, indemnify, and hold harmless the City and its officers, officials, employees, volunteers, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder, including the performance of work of any of Consultant’s subcontractors or agents, or Consultant’s failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.

11. Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.

12. Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours.

Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.

13. Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.

Page 7 of 14 ends

SCI Consulting Group
January 1, 2023
compensation, an amendment to this Agreement shall be prepared describing such changes.

Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.

15. Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.

16. Termination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
(2) For any reason whatsoever.
(B) Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
(1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense. (C) In the event that this Agreement is terminated by City for any reason, Consultant shall:
(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and

Page 8 of 14 ends

SCI Consulting Group
January 1, 2023
(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.

17. Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.

18. Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.

19. Independent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.

20. Integration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.

21. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.

Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.

22. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.

Page 9 of 14 ends

SCI Consulting Group
January 1, 2023

23. Notices.
(A) Written notices to the City hereunder shall, until further notice by City, be addressed to:

Courtney Grossman
City of Salinas
65 W. Alisal Street, Suite 201
Salinas, California 93901
With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:

SCI Consulting Group
4745 Mangels Boulevard
Fairfield, CA 94534
(C) The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice. (D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

24. Nondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.

Page 10 of 14 ends

SCI Consulting Group
January 1, 2023
of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.

26. Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.

27. Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.

28. Non-Exclusive Agreement. This Agreement is non-exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.

29. Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.

30. Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.

31. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.

32. Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.

33. Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.

Page 11 of 14 ends

SCI Consulting Group
January 1, 2023

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.

Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.

IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.

CITY OF SALINAS
____________________________
Steve Carrigan
City Manager
APPROVED AS TO FORM:
_________________________
Christopher A. Callihan, City Attorney

CONSULTANT
___________________________________
John Bliss, P.E., President
SCI Consulting Group

Page 12 of 14 ends

SCI Consulting Group
January 1, 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”): Insurance Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (B) Automobile Liability: ISO Form CA 0001 covering any auto, or if Consultant has no owned autos, hired and non-owned, with limits no less than $1,000,000 per accident for bodily injury and property damage.
(C)Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
(D)Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.

If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

Page 13 of 14 ends

SCI Consulting Group
January 1, 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.

Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.

Self-Insured Retentions
Self-insured retentions must be declared by Consultant to and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.

4. A copy of the claims reporting requirements must be submitted to the City for review.

Page 14 of 14 ends

SCI Consulting Group
January 1, 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.

Page i
Proposal
Exhibit B

CITY OF SALINAS
In Response to:

Revised Scope – Commercial Cannabis Tax
Assessments
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 1 ends

Scope of Work
SCI Team will conduct a project kick-off meeting with City staff to establish project priorities and goals, communication protocols, and timelines. Further, we will gather and review all applicable information needed to perform the required tasks. SCI will be available to meet via teleconference call on a regular basis when work is in progress and will be available to attend regularly scheduled coordination meetings as necessary when work is in progress.

1. Commercial Cannabis Tax Assessments
The SCI Team, led by the David Siris of The Pun Group for this task, will provide comprehensive annual auditing of cannabis businesses in order to ensure that the City receives full payment of all Measure L taxes, and ensuring compliance with applicable laws.

We will perform the following steps to deliver the services requested by the City:

Cannabis
Business Gross
Receipts and
Square Footage
Taxes
• Evaluate consistency between gross receipts and other information reported on financial statements to what was reported to the CDTFA for sales and use tax, cannabis excise tax, and/or cultivation tax.
• Evaluate consistency between gross receipts reported on financial statements to gross receipts reported to the City.
• Verify cultivation canopy as compared to maximum canopy reported on the business license application.

Collection and
Audit
of any Cannabis
Tax
• Ensure each cannabis facility is complying with applicable portions of the City’s Code and is submitting the true amount of gross receipts and tax. • Review business license tax returns submitted by the business and collected by the City and compare to each business’s records for the time period identified by the City to determine accuracy and timeliness of gross receipts returns filed with the City.
• Trace and verify the gross receipts reported on the quarterly gross receipts returns prepared by the business to gross receipts recorded in the business’s accounting records to verify that these were in accordance with the City’s regulations. • Verify reasonableness of reported revenues
• We will issue all reports to the City in accordance with applicable standards from generally accepted auditing standards (GAAS).
• The report for each cannabis business license tax audit will include the following information:
• The overall conclusion of whether or not the cannabis business paid all required business license taxes and fees for the time period specified. • Any exceptions, errors, or areas of noncompliance were identified as a result of the procedures performed. This includes any significant deficiency in the design or operation of the internal control structure, including but not limited to the following areas: cash handling, inventory control, point of sale systems, and any other areas City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 2 ends

that the auditor deems necessary for purposes of accurately reporting business license taxes due to the City.
• Express an opinion regarding the taxes remitted to the City by the cannabis business, or state that an opinion cannot be expressed in the auditor’s report. If the Firm concludes, it cannot express an overall opinion. The engagement team will state the reasons, therefore, in the auditor’s report.
• Examine records and documentation that demonstrates that all cannabis goods have been obtained from, and are provided to, other licensed cannabis businesses and that details all the revenues and expenses, and assets and liabilities of the business.
• Examine books of account, invoices, copies of orders and sales, shipping instructions, bills of lading, weigh bills, bank statements including canceled checks and deposit slips, and all other records necessary to show all transactions of the cannabis business.

State Rule
Making
Interpretation
and
Implementation
• Check for compliance with the latest officially approved state regulations for cannabis businesses across the supply chain. Licensees are required to comply with all rules and regulations pertaining to their license type, as well as follow all other applicable state laws.

Deliverables:
• Prepare and send notification letters to each cannabis business • Annual Financial Audit and Audit Report for each cannabis business

2. Compliance Inspections and Reporting
For this task, Kyle Tankard of SCI will provide onsite facility inspections for each commercial cannabis business and report to the City the results of inspections relative to the City’s local regulations and ordinances, conditions of approval, and State law. SCI will prepare an inspection checklist for each cannabis activity. Prior to conducting each inspection, SCI will prepare notification to the businesses to schedule inspections. Following the inspection, SCI will provide the City with a written report detailing the results of the compliance inspection including photo documentation of any violations. SCI will provide follow-up support to the City and cannabis businesses to provide recommendations to address and correct any deficiencies.

Among the elements and activities SCI will inspect and monitor are as follows:
• Product: Inventory management, seed-to-sale tracking, packaging and labeling verification, product testing protocols, etc.
• Record Retention: Review and confirm employee records, business records, tax information records, transportation manifests, video surveillance retention, equipment certifications, training programs and safety programs.

City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 3 ends

• Security and Surveillance: Verify video surveillance equipment, camera placement, alarm systems, locks, facility access control, security guards, occupational badges, and other security and safety processes.
• Facility Compliance: Verify facility’s operational compliance including waste management, odor control, pesticide and solvent storage, signage, cash handling procedures, product shipment and receival procedures, etc.

Deliverables:
• Conduct onsite facility inspections
• Provide written report detailing the findings of inspections • Provide follow-up support and recommendations
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 4 ends

Budget Estimate
In consideration for the Tasks as detailed in the Scope of Work, the estimated compensation is detailed below by task:

Work Plan Fee

1. Commercial Cannabis Tax Assessments $ *6,500 (per audit per permit)

2. Compliance Inspections & Reporting $ 1,700 (perinspection perfacility) *If the initial audit period for a cannabis permit is less than 1 year (12 months) the fee will be prorated by each quarter (3 months) at $1,625 for each quarter audited. If the permit holder’s audit period is equal to or less than 1 month the City has the option to defer the audit and add that audit period the next audit period (for example: if the initial audit period is 1 month, the City can defer that 1 month to the following 12 month audit period for a total of 13 months). If a permit holder has multiple permits for different cannabis business types, the fee for the audit of each additional permit will be $6,500 if the businesstype’s grossrevenue is greater than $100,000 and $3,250 if the gross revenue is equal to or less than $100,000.

SCI Staff Hourly Rate
John Bliss, President $ 290
Kyle Tankard, Cannabis Services Leader $ 300
Arcelia Herrera, Senior Cannabis Consultant $ 250
The Pun Group Staff Hourly Rate
Ken Pun, Engagement Partner $ 200
Venessa Burke, Partner $ 200
David Siris, Manager $ 175
Masood K. Yousufzai, Assistant Manager $ 150
Incidental costs incurred for the purchase of additional travel and other out-of-pocket expenses will be reimbursed at actual cost, with the total not to exceed $750 per year without prior authorization from the City. The scope of services includes one face-to-face staff planning meeting. Any additional face-to-face meetings, if required, shall be billed at the rate of $1,500 per person, per meeting. SCI is available to meet via teleconference call on a regular basis at no additional charge.

City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 5 ends

City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 6 ends

Project Schedule
Timeline
Project start date January 1, 2023
Financial Audits 2021 May 2023 – August 2023
Compliance Inspections June 2023
Financial Audits 2022 August 2023 – December 2023
Financial Audits 2023 – Kick Off March 2024 – June 2024 Compliance Inspection June 2024
Commercial Cannabis Tax Assessments
The Pun Group is available to begin the Commercial Cannabis Tax Assessments upon execution of the contract. An initial meeting with the City’s dedicated team will be coordinated to determine the competition schedule of the audits of business licenses and finalize the report template. On average, a typical financial audit takes 4-6 weeks.

Compliance Inspections & Reporting
SCI is available to begin onsite compliance inspections for operational cannabis businesses upon execution of the contract. If conducting annual inspections, the inspections will take place midyear for each cannabis facility. If additional inspections are requested, they will be scheduled proportionately throughout the year.

City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 7 ends

General Contract Requirements
Proof of Insurability
City of Salinas
Proposal for Commercial Cannabis Tax Assessments
By SCIConsultingGroup, May 2023

Page 8 ends

Concurrence with Contract Provisions
The SCI Team accepts the provisions of the City’s standard contract as attached to the RFP.

Furthermore, The SCI Team understands that under certain circumstances, and subject to the discretion of the City, some provisions of the contract may be modified upon final contract negotiations with the selected consultant.
1 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SALINAS AND SCI CONSULTING GROUP
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 26th day of April 2022, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and SCI Consulting Group (hereinafter “Consultant”).

NOW, THEREFORE, City and Consultant agree as follows:

TERMS

1.Scope of Service. The project contemplated and the scope of Consultant’s services are described in Exhibit B, attached hereto and incorporated herein by reference.

2.Term; Completion Schedule. This Agreement shall commence on April 26, 2022, and shall terminate on August 9, 2022, for task 1 and December 31, 2022, for task 2 unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties, and may be terminated only pursuant to the terms of this Agreement.

3.Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $150,000.

4.Billing. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to City, describing its services and costs for the period covered by the invoice. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:

A. A brief description of services performed;
B. The date the services were performed;
C. The number of hours spent and by whom;
D. A brief description of any costs incurred; and
DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 2 E. The Consultant’s signature.

Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.

5.Meet & Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.

6.Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.

7.Responsibility of Consultant. By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.

8.Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A)Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City. (B)Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C)Megan Hunter, Community Development Director, or her designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 3 have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D)Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.

9.Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the work performed.

10.Indemnification and Hold Harmless.

11.Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.

12.Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to Consultant by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours. Consultant shall provide proper facilities to City’s representative(s) for such access and inspection.

13.Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of Consultant. This Agreement is personal to Consultant and shall not be assigned by it without express written approval of the City.

14.Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 4 changes. Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.

15.Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for the services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify the Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant.

16.Termination.

A. City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:

1. If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or

2. For any reason whatsoever.

B. Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:

1. In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.

C. In the event that this Agreement is terminated by City for any reason, Consultant shall:

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 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 5 this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.

D. In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.

E. The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.

17.Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.

18.Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.

19.Independent Contractor. It is expressly understood and agreed by both parties that Consultant, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee or servant of the City.

20.Integration and Entire Agreement. This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.

21.Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas. Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.

22.Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.

23.Notices.
(A)Written notices to the City hereunder shall, until further notice by City, be addressed to:

DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 6 Courtney Grossman
City of Salinas
65 W. Alisal Street, Suite 201
Salinas, California 93901
With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B)Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:

SCI Consulting Group
4745 Mangels Boulevard
Fairfield, CA 94534
(C)The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice. (D)All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

24.Nondiscrimination. During the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.

25.Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.

DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 7 26.Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.

27.Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.

28.Non-Exclusive Agreement. This Agreement is non-exclusive and both City and Consultant expressly reserves the right to contract with other entities for the same or similar services.

29.Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.

30.Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of Consultant, its representatives, agents or subcontractors by federal, state or local law, Consultant warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.

31.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.

32.Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.

33.Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.

34.Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.

35.No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof. Failure on the part DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 8 of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.

IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.

CITY OF SALINAS
____________________________
Kimbley Craig
Mayor
APPROVED AS TO FORM:
____________________________
Christopher A. Callihan
City Attorney
ATTEST:
_____________________________
Patricia Barajas
City Clerk

CONSULTANT
_____________________________
John Bliss, P.E., President
SCI Consulting Group
DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 9 Exhibit A
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

A. Commercial General Liability (“CGL”): Insurance Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

B. Automobile Liability: ISO Form CA 0001 covering any auto, or if Consultant has no owned autos, hired and non-owned, with limits no less than $1,000,000 per accident for bodily injury and property damage.

C. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

D. Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.

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 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 10 of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.

Self-Insured Retentions
Self-insured retentions must be declared by Consultants 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:

DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 11 1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.

4. A copy of the claims reporting requirements must be submitted to the City for review.

Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 12 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 DocuSign Envelope ID: 05836FBA-00D6-41E6-ADA7-30CA19C2BA99 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-340, Version: 1
Assembly Bill 513 (Rodriguez) and Senate Bill 831 (Caballero) Consider approving a Resolution expressing the City of Salinas’s support of Assembly Bill 513 and Senate Bill 831.

City of Salinas Page 1 of 1 Printed on 5/10/2023
powered by Legistar™
Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: May 16, 2023
DEPARTMENT: CITY ATTORNEY’S OFFICE
FROM: CHRISTOPHER A. CALLIHAN, CITY ATTORNEY
TITLE: ASSEMBLY BILL 513 (RODRIGUEZ)
SENATE BILL 831 (CABALLERO)
RECOMMENDED MOTION:

A motion to approve a Resolution expressing the City of Salinas’s support of AB 513 and SB 831.

RECOMMENDATION:

It is recommended that the City Council consider approving a Resolution expressing the City of Salinas’s support of AB 513 and SB 831.

BACKGROUND:

On April 18, 2023, Council member Rocha, with the support of Council members González and Osornio, requested the City Council consider whether to support AB 513 and SB 831.

Assembly Bill 513
Assembly Bill 513 (Rodriguez) is titled the California Individual Assistance Act. This bill proposes to enact the California Individual Assistance Act (which would be administered by the California Office of Emergency Services [Cal OES]) to establish a grant program to provide financial assistance to local agencies, community-based organizations, and individuals for specified costs related to a disaster. The intent of this bill is to “provide local agencies, communitybased organizations, and individuals with the assistance they need to quickly recover following a disaster.”1
Under this bill, funds from the Disaster Assistance Fund may be used to provide financial assistance to local agencies, community-based organizations, and individuals for several purposes, including the following:
 To fund personnel costs, equipment costs, translation services, and the cost of supplies and materials used during disaster response activities, incurred as a result of a state of

1 “Community-based organization” is defined in the bill to mean “a public or private nonprofit organization of demonstrated effectiveness that represents a community or significant segments of a community and provides support and services to individuals in the community.”
Page | 2
emergency proclaimed by the Governor, excluding the normal hourly wage costs of employees engaged in emergency work activities.
 To reimburse local agencies or community-based organizations that provide individual and family grants.
 To provide direct individual and family grants, including housing assistance and other needs assistance, to individuals. “Other needs assistance” is defined in the bill to mean “assistance to offset expenses and losses in income not covered by insurance or by other financial assistance resources,” including, but not limited to, the following:
o Income losses;
o Costs to clean, repair, or replace essential personal property items; o Costs that are reasonable and necessary to make the essential living areas of a primary residence safe, sanitary, and functional; and
o Medical, dental, and funeral expenses resulting from the local emergency.  To fund necessary and required site preparation costs for evacuation and local assistance centers as deemed necessary.

This bill would direct the Cal OES Director to adopt regulations to govern the administration of the program and would require the Director to enter into agreements with local agencies or community-based organizations to retroactively provide individual and family grants for specific disaster events, including the December 2022/January 2023 and the February 2023 severe winter storms and flooding that impacted Monterey County (Federal Emergency Management Agency Declarations DR-4683-CA and DR-4699-CA, respectively).

If approved by the State Legislature, this bill would take effect immediately as an urgency statute.

Assembly Speaker-Elect Rivas and Senator Caballero are both co-authors of this bill.

Senate Bill 831
Senate Bill 831 (Caballero) is titled the Lawful Permanent Resident Pilot Program. This bill would authorize the Governor to enter into an agreement with the federal government to establish a workgroup to develop a pilot program for an agricultural employee, as defined in the bill, who meets specified eligibility criteria, including that they have lived continuously in the United States for five years, to be granted lawful permanent resident status. 2 In addition to having lived in the
United States for five years, an agricultural employee may be eligible for lawful permanent resident status under the pilot program if the individual meets all of the following:
 They have demonstrated good moral character; and
 They have not been convicted of a crime.

Once the pilot program is established, the Department of Community Services and Development would establish an application process which would include, but not be limited to, all of the following:
 The payment of application fees to the Department and any federal entity to obtain lawful permanent resident status;
 A criminal history background check; and

2 “Agricultural employees” is defined to mean “one engaged in agriculture” to include “farming in all its branches, and, among other things, includes the cultivation and tillage of the soil, the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities…, the raising of livestock, bees, furbearing animals, or poultry, and any practices (including any forestry or lumbering operations) performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market and delivery to storage or to market or to carriers for transportation to market.” Page | 3
 A national security check.

Between one-third to half of all farmworkers in the United States reside in California, which would include about 500,000 to 800,000 people, according to the Center for Farmworker Families.3 And, approximately 75% of California’s farmworkers are undocumented.4 This bill is an attempt to both create a path to citizenship for undocumented farmworkers and to stabilize California’s agricultural workforce. Senator Caballero described the bill as “[c]reating a pathway to permanent residency status [that] allows our undocumented friends, families, and neighbors to come out of the shadows, to live lives free of fear and allow them to qualify for the safety net programs that they deserve and pay into.”
Should the City Council choose to express its support for either of both of these pieces of legislation, letters would be drafted for those Council members in support and then sent to the appropriate state offices and agencies.

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 item relates to the City Council’s Strategic Goal of providing effective and culturally responsive government.

DEPARTMENTAL COORDINATION:

The City Attorney’s Office will coordinate with the City’s Administration on preparation and transmittal of letters in support of either or both of these pieces of legislation, as determined by the City Council.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct impact on the City’s General Fund with the City Council’s support of these pieces of legislation.

ATTACHMENTS:

Resolution
AB 513
SB 831

3 https://farmworkerfamily.org/information
4 https://farmworkerfamily.org/information
Page | 4
RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL IN SUPPORT OF ASSEMBLY BILL 513 (RDRIGUEZ)—THE CALIFORNIA INDIVIDUAL ASSISTANCE ACT—AND SENATE BILL 831 (CABALLERO)—THE LAWFUL PERMANENT RESIDENT PILOT

PROGRAM
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the Salinas City Council supports both Assembly Bill 513 (Rodriguez) and Senate Bill 831 (Caballero) and directs the preparation of letters from the City Council to the appropriate state offices and agencies expressing the City Council’s support thereof; and
BE IT FURTHER RESOLVED that the Salinas City Council encourages the State Legislature to affirmatively act on both pieces of legislation without delay.

PASSED AND APPROVED this 24th day of May 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
AMENDED IN ASSEMBLY APRIL 20, 2023
AMENDED IN ASSEMBLY APRIL 10, 2023
AMENDED IN ASSEMBLY MARCH 20, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 513
Introduced by Assembly Member Rodriguez Members Rodriguez and Robert Rivas
(Coauthors: Assembly Members Addis, Vince Fong, Pellerin, Soria, and Wood)
(Coauthors: Senators Caballero, Hurtado, and McGuire)
February 7, 2023
An act to add Article 4.5 (commencing with Section 8688) to Chapter

7.5 of Division 1 of Title 2 of the Government Code, relating to disaster assistance, and making an appropriation therefor. therefor, and declaring the urgency thereof, to take effect immediately.
legislative counsel’s digest
AB 513, as amended, Rodriguez. California Individual Assistance Act.

Existing law, the California Disaster Assistance Act, requires the Director of Emergency Services to provide financial assistance to local agencies for their personnel costs, equipment costs, and the cost of supplies and materials used during disaster response activities, incurred as a result of a state of emergency proclaimed by the Governor, subject to specified criteria. The act continuously appropriates moneys in the Disaster Assistance Fund and its subsidiary account, the Earthquake Emergency Investigations Account, without regard to fiscal year, for purposes of the act.

96 This bill would enact the California Individual Assistance Act to establish a grant program to provide financial assistance to local agencies, community-based organizations, and individuals for specified costs related to a disaster, as prescribed. The bill would require the director to allocate from the fund, subject to specified conditions, funds to meet the cost of expenses for those purposes. By authorizing increased expenditure of moneys from a continuously appropriated fund for a new purpose, the bill would make an appropriation.

This bill would authorize the director to adopt regulations, as determined to be necessary, to govern the administration of the program.

The bill would require the director to enter into agreements with local agencies or community-based organizations to retroactively provide individual and family grants for specific disaster events.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes.

State-mandated local program: no.

The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares the purpose line 2 of this act is to establish in California a program within the Office line 3 of Emergency Services to quickly provide assistance to California line 4 residents following the declaration of a local or state emergency line 5 that may not warrant federal disaster assistance for individuals. line 6 SEC. 2. Article 4.5 (commencing with Section 8688) is added line 7 to Chapter 7.5 of Division 1 of Title 2 of the Government Code, line 8 to read:
line 9
line 10 Article 4.5. California Individual Assistance Act line 11
line 12 8688. This article shall be known and may be cited as the line 13 California Individual Assistance Act.
line 14 8688.1. It is the intent of the Legislature to provide local line 15 agencies, community-based organizations, and individuals with line 16 the assistance they need to quickly recover following a disaster. line 17 8688.2. Unless the provision or context otherwise requires, the line 18 definitions in this section govern the construction of this article:
line 19 (a)  “Community-based organization” means a public or private line 20 nonprofit organization of demonstrated effectiveness that represents 96 AB 513 — 2 —
line 1 a community or significant segments of a community and provides line 2 support and services to individuals in the community. line 3 (b)  “Disaster” means a fire, flood, storm, tidal wave or tsunami, line 4 earthquake, act of terrorism, epidemic, extreme heat or cold event, line 5 or other similar calamity that the Governor determines presents a line 6 threat to public safety.
line 7 (c)  “Housing assistance” means assistance available to line 8 homeowners and renters to repair disaster-related damages not line 9 covered by insurance or by other governmental financial assistance line 10 programs, including, but not limited to, costs that are reasonable line 11 and necessary to make the essential living areas of a primary line 12 residence safe, sanitary, and functional.
line 13 (d)  “Individual” means a person residing in California. line 14 (e)  “Individual and family grants” means housing assistance line 15 and other needs assistance provided pursuant to this article. line 16 (f)  “Local emergency” means a condition of extreme peril to line 17 persons or property proclaimed as such by the governing body of line 18 the local agency affected, in accordance with Section 8630. line 19 (g)  “Other needs assistance” means assistance to offset expenses line 20 and losses in income not covered by insurance or by other financial line 21 assistance resources, including, but not limited to, any of the line 22 following:
line 23 (1)  Income losses.
line 24 (2)  Costs to clean, repair, or replace essential personal property line 25 items.
line 26 (3)  Medical, dental, and funeral expenses resulting from the line 27 local emergency.
line 28 (4)  Other potentially eligible expenses authorized by the director. line 29 (h)  “Unusual circumstances” means unavoidable delays that line 30 result from recurrence of a disaster, prolonged severe weather line 31 within a one-year period, or other conditions beyond the control line 32 of the applicant.
line 33 8688.3. (a)  From the Disaster Assistance Fund, and subject to line 34 the conditions specified in this article, the director shall allocate line 35 funds to meet the cost of expenses for the purposes described in line 36 subdivision (b).
line 37 (b)  Moneys from the Disaster Assistance Fund may be used to line 38 provide financial assistance to local agencies, community-based line 39 organizations, and individuals for the following purposes:
96 — 3 — AB 513
line 1 (1)  To fund local agency and community-based organization line 2 personnel costs, equipment costs, translation services, and the cost line 3 of supplies and materials used during disaster response activities, line 4 incurred as a result of a state of emergency proclaimed by the line 5 Governor, excluding the normal hourly wage costs of employees line 6 engaged in emergency work activities.
line 7 (2)  To reimburse local agencies or community-based line 8 organizations that provide individual and family grants. line 9 (3)  To provide direct individual and family grants, including line 10 housing assistance and other needs assistance, to individuals. line 11 (4)  To fund indirect administrative costs and any other assistance line 12 deemed necessary by the director.
line 13 (5)  To fund necessary and required site preparation costs for line 14 evacuation and local assistance centers as deemed necessary by line 15 the director.
line 16 8688.4. (a)  When certified by the director, claims of line 17 community-based organizations and local agencies shall be line 18 presented to the Controller for payment out of funds made available line 19 for that purpose.
line 20 (b)  The director shall adopt regulations, as determined to be line 21 necessary, to govern the administration of the program authorized line 22 by this article in accordance with the Administrative Procedure line 23 Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of line 24 Division 3). These regulations shall include specific eligibility line 25 requirements, a procedure for local agencies and community-based line 26 organizations to request the implementation of this article, and a line 27 method for evaluating these requests by the Office of Emergency line 28 Services.
line 29 8688.5. An allocation may be made to a local agency, line 30 community-based organization, or an individual, if, within 10 days line 31 after the actual occurrence of a disaster, the local agency has line 32 proclaimed a local emergency and that proclamation is acceptable line 33 to the director, or upon the order of the Governor when a state of line 34 emergency proclamation has been issued.
line 35 8688.6. A local agency, community-based organization, or an line 36 individual shall make application to the director for state financial line 37 assistance pursuant to this article within 60 days after the date of line 38 the proclamation of a local emergency. The director may extend line 39 the time for this filing only under unusual circumstances. 96 AB 513 — 4 —
line 1 8688.7. The director shall develop procedures for a local agency line 2 or community-based organization to receive an advance of funds line 3 to expedite the delivery of individual and family grants following line 4 a disaster.
line 5 8688.8. Notwithstanding any other law, including Section line 6 8688.6, the director shall enter into agreements with local agencies line 7 or community-based organizations to retroactively provide line 8 individual and family grants for the following events:
line 9 (a)  The December 20, 2022, magnitude 6.4 earthquake off the line 10 Northern California coastline near the City of Ferndale in line 11 Humboldt County.
line 12 (b)  The severe winter storms, flooding, landslides, and mudslides line 13 for areas designated in the Federal Emergency Management line 14 Agency declaration DR-4683-CA for the period December 27, line 15 2022, to January 31, 2023, inclusive.
line 16 (c)  The severe winter storms, straight-line winds, flooding, line 17 landslides, and mudslides for areas designated in the Federal line 18 Emergency Management Agency declaration DR-4699-CA for line 19 the period February 21, 2023, to ____, inclusive. line 20 SEC. 3. This act is an urgency statute necessary for the line 21 immediate preservation of the public peace, health, or safety within line 22 the meaning of Article IV of the California Constitution and shall line 23 go into immediate effect. The facts constituting the necessity are:
line 24 In order to mitigate the extent and severe impact of recent line 25 disasters on individuals and families, the Legislature finds and line 26 declares it is necessary for this act to take effect immediately.

O
96 — 5 — AB 513
AMENDED IN SENATE MARCH 22, 2023
SENATE BILL No. 831
Introduced by Senator Caballero
February 17, 2023
An act to amend Section 17002 of the Unemployment Insurance Code, relating to CalWORKs. An act to add Article 9 (commencing with Section 12092) to Chapter 1 of Part 2 of Division 3 of Title 2 of the Government Code, relating to agricultural workers.
legislative counsel’s digest
SB 831, as amended, Caballero. CalWORKs: job creation.

Department of Community Services and Development: pilot program:
lawful permanent residents.

Existing law sets forth the duties of the Department of Community Services and Development respecting certain community programs in the state, including administering the Naturalization Services Program that provides funding to community-based organizations to assist lawful permanent residents in obtaining citizenship.

This bill would authorize the Governor to enter into an agreement with the federal government to establish a workgroup to develop a pilot program for an agricultural employee, as defined, who meets specified eligibility criteria, including that they have lived continuously in the United States for 5 years, to be granted lawful permanent resident status. The bill would authorize the department to administer the pilot program, and establish an application process and eligibility criteria for that program, as specified.

Existing law creates the California Work Opportunity and Responsibility to Kids Act, which is referred to as CalWORKs. Existing law requires the Employment Development Department to perform

98 specified duties relating to job creation in connection with CalWORKs, including establishing a council of corporate executives to provide ongoing advice and assistance to the department in recruiting private employers to hire recipients of aid. Existing law requires the department, in consultation with the council, to establish a clearinghouse for information for private sector employers to obtain information about assistance and resources for hiring CalWORKs recipients.

This bill would make nonsubstantive changes to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no yes.

State-mandated local program: no.

The people of the State of California do enact as follows:
line 1 SECTION 1. Article 9 (commencing with Section 12092) is line 2 added to Chapter 1 of Part 2 of Division 3 of Title 2 of the line 3 Government Code, to read:
line 4
line 5 Article 9. Lawful Permanent Resident Pilot Program line 6
line 7 12092. As used in this article, the following terms apply:
line 8 (a)  “Agricultural employee” has the same meaning as that term line 9 is defined in subdivision (b) of Section 1140.4 of the Labor Code. line 10 (b)  “Department” means the Department of Community Services line 11 and Development.
line 12 (c)  “Lawful permanent resident” has the same meaning as that line 13 term is defined in Section 1101(a)(20) of Title 8 of the United line 14 States Code.
line 15 (d)  “Pilot program” means the pilot program for an agricultural line 16 employee to be granted lawful permanent resident status, as line 17 described in this article.
line 18 12092.1. The Governor, on behalf of this state, may enter into line 19 an agreement with the federal government to establish a workgroup line 20 to develop a pilot program for an agricultural employee who has line 21 lived continuously in the United States for five years to be granted line 22 lawful permanent resident status.
line 23 12092.2. (a)  Upon implementation of the pilot program, the line 24 department may administer the pilot program.
line 25 (b)  The department may establish an application process for line 26 the pilot program, which includes, but is not limited to, all of the line 27 following:
98 SB 831 — 2 —
line 1 (1)  The payment of application fees to the department and any line 2 federal entity to obtain lawful permanent resident status. line 3 (2)  A criminal history background check.
line 4 (3)  A national security check.
line 5 12092.3. The department may establish eligibility criteria for line 6 an agricultural employee to be eligible for lawful permanent line 7 resident status. An agricultural employee may be eligible for lawful line 8 permanent resident status under the pilot program if the individual line 9 meets all of the following:
line 10 (a)  They have lived continuously in the United States for five line 11 years.
line 12 (b)  They have demonstrated good moral character. line 13 (c)  They have not been convicted of a crime.
line 14 SECTION 1. Section 17002 of the Unemployment Insurance line 15 Code is amended to read:
line 16 17002. In carrying out the provisions of this division, the line 17 department shall conduct activities, including, but not limited to, line 18 all of the following:
line 19 (a)  Establish a council of corporate executives consisting of 13 line 20 members drawn from the business community, including, but not line 21 limited to, retired or former chief executive officers of major line 22 California corporations. Seven members shall be appointed by the line 23 Governor, three shall be appointed by the Senate Committee on line 24 Rules, and three shall be appointed by the Speaker of the Assembly. line 25 Appointments shall be made no later than January 31, 1998. This line 26 council shall provide ongoing advice and assistance to the line 27 department in recruiting private employers to hire recipients of line 28 aid.
line 29 (b)  In consultation with the council described in subdivision line 30 (a), establish a clearinghouse for information on the internet or line 31 other forms of toll-free communication for private sector employers line 32 to obtain information about assistance and resources for hiring line 33 CalWORKs recipients and to register their pledges to assist the line 34 state in finding the jobs necessary to meet the local welfare-to-work line 35 goals throughout the state.
line 36 (c)  In consultation with the council described in subdivision line 37 (a), provide a forum for leaders in faith-based communities, and 98 — 3 — SB 831
line 1 other civic leaders, to assist the state in promoting welfare-to-work line 2 goals as part of the civic duty of their constituents.

O
98 SB 831 — 4 —
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-349, Version: 1
a. Performance Evaluation and Labor Relations - California Government Code Section 54957 and 54957.6, public employee performance evaluation and labor relations with unrepresented employee (City Manager).
b. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Santa Rita Union High School District, et al. v. City of Salinas et al., Monterey County Superior Court Case No. 20CV000242.
c. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Alisal Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV00340.

City of Salinas Page 1 of 1 Printed on 5/10/2023
powered by Legistar™

Salinas City CouncilMay 16, 2023

Salinas City Council
May 16, 2023