RESOLUTION NO. _______(N.C.S.)
A RESOLUTION APPROVING AN AGREEMENT FOR SERVICES BETWEEN THE
CITY OF SALINAS AND FLUID RESOURCE MANAGEMENT
WHEREAS, on April 15, 2022, a City of Salinas pump station malfunction resulted in an unauthorized discharge of untreated wastewater; and
WHEREAS, the incident resulted in a violation of State Water Code and imposition of an administrative civil liability by the State Water Resources Control Board which may be suspended pending successful implementation of certain Enhanced Compliance Actions; and WHEREAS, the City of Salinas Lift Station Control Upgrade Project is such an Enhanced Compliance Actions that will be implemented to upgrade the controls for the Lake Street Lift Station; and
WHEREAS, staff is proposing to use Fluid Resource Management on a sole-source basis given their intimate familiarity with the project having developed the scope and design solution along with the analysis performed under the Sanitary Sewer Master Plan; and WHEREAS, an Agreement has been successfully negotiated with Fluid Resource Management.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALINAS, consistent with the authority granted to the City Council pursuant to Salinas City Code Section 12-27, the Agreement for Service between the City of Salinas and Fluid Resource Management to upgrade the controls for the Lake Street Lift Station for an amount not to exceed $69,000, is hereby approved; and
BE IT FURTHER RESOLVED that the Mayor of Salinas is hereby authorized and directed, for and on behalf of the City of Salinas, and as its act and deed, to execute the attached Agreement for Services between the City of Salinas, a Charter City, and Ellison Environmental Incorporated, dba Fluid Resource Management, a California Corporation; and BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to execute extensions and/or non-substantial modifications to the Agreement, as necessary.
PASSED AND APPROVED this 20th day of June 2023, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Agreement for Services v. November 2022 Page 1 of 8
Fluid Resource Management
June, 2023
AGREEMENT FOR SERVICES BETWEEN
THE CITY OF SALINAS AND FLUID RESOURCE MANAGEMENT
Lake Street Lift Station Control Upgrade
THIS AGREEMENT is executed this 20th day of June, 2023, (“Agreement” or “Contract”) between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Ellison Environmental Incorporated, dba Fluid Resource Management (hereinafter “Contractor”).
IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:
1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: custom retrofit and integration of new controls, expansion of the existing Supervisory Control and Data Acquisition (SCADA) system, installation of new variable frequency drive (VFD) contactors, and ensuring all new systems interface with the alarm notification circuit. Scope of work is further described in Contractor’s Proposal dated 20th day of December, 2022, Attachment B.
2. Timeliness. Contractor shall perform all tasks in a timely fashion, as set forth more specifically in Section 3 below. Failure to so perform is hereby deemed a material breach of this Agreement, and City may terminate this Agreement with no further liability hereunder, or the city may agree in writing with Contractor to an extension of time.
3. Term. The work under this Agreement shall commence on the 27th day of June, 2023 and shall be completed by the 26th day of June, 2024, unless City grants a written extension of time as set forth in Section 2 above.
4. Payment. City agrees to pay and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, an amount not to exceed Sixty Nine Thousand Dollars ($69,000.00), as more fully described in title of Contractors fee schedule, Attachment B. Contractor has no right of reimbursement for expenses under this Agreement.
Compensation shall become due and payable 30 days after City’s approval of Contractor’s submission of monthly written invoices to the City. The payment of any compensation shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed.
5. Meet & Confer. Contractor 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 City to insure timely and adequate performance of this Agreement.
6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.
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Fluid Resource Management
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7. Indemnification. Contractor shall hold harmless, defend at its own expense, and indemnify City and its officers, officials, employees, agents, and volunteers from and against all liability, claims, damages, losses, and/or expenses including reasonable City attorney fees arising from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the sole negligence or willful misconduct of the City.
8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.
9. Termination. City may terminate this Agreement upon ten days’ written notice. The amount of damages, if any, as a result of such termination may be decided by negotiations between the parties or before a court of competent jurisdiction.
10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.
11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.
12. Entire Agreement. This Agreement constitutes the entire Agreement between the parties hereto and supersedes any and all prior agreements, whether oral or written, relating to the subject matter thereof. Any modification of the Agreement will be effective only if it is in writing signed by both parties hereto.
13. Validity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated in any way.
14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
15. Laws. Contractor agrees that in the performance of this Agreement it will comply with all applicable State, Federal and local laws and regulations. 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. The City’s Labor Compliance policy shall be adhered to by Contractor throughout the duration of this job and/or as required by State law as stipulated in Attachment C.
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Fluid Resource Management
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IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first written above.
CITY OF SALINAS
__________________________________
Steve Carrigan
City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney
CONTRACTOR
___________________________________
By (Printed Name):___________________
Its (Title):___________________________
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Fluid Resource Management
June, 2023
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (“CGL”): Insurance Services Office (“ISO”) Form 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 $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO Form CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
4. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards): with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate, on an annual basis.
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Contractor requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the Contractor shall cause the insurer shall to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, 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.
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Fluid Resource Management
June, 2023
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
1. The City, 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 Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’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).
2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO 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 Contractor’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.
4. A copy of the claims reporting requirements must be submitted by Contractor to the City.
5. If the services involve lead-based paint or asbestos identification/remediation, the Contractor’s Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractor’s Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the City.
Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Verification of Coverage
Contractor shall furnish the City with original Certificates of Insurance including an additional insured endorsement and all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins.
However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’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.
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Fluid Resource Management
June, 2023
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.
Maintenance of Insurance
Maintenance of insurance by Contractor as specified shall in no way be interpreted as relieving Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.
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.
Surety Bonds
Contractor shall provide the following Surety Bonds:
1. Payment bond
2. Performance bond
3. Maintenance bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty, a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.
If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.
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Fluid Resource Management
June, 2023
Attachment B
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Attachment B
Attachment - C
Attachment C
DEPARTMENT OF INDUSTRIAL RELATIONS’ STATE LABOR CODE
Labor Law Requirements
(CCR Title 8, Section 16421)
This public works project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). All work shall be in accordance with wage scales and applicable determinations made by the Director of the DIR, as provided by Article 2, Chapter 1, Division 2, Part 7 of the Labor Code of the State of California, commencing with §1771.
Penalties for violations may be applied by the DIR pursuant to the Labor Code §1813 and §1815. The Contractor shall indemnify, hold harmless, and defend the City (with counsel reasonably approved by the City) against any claim for damages, compensation, fines, penalties, or other amounts arising out of the failure or alleged failure of any person or entity (including Contractor and its subcontractors) to pay prevailing wages as determined pursuant to Labor Code §1720, and hereby agrees to, §§1771-1774; to employ apprentices pursuant to Labor Code §1777.5 et seq., and/or to comply with the other applicable provisions of Labor Code §1720 et seq., §§1771-1774, §1777.5 et seq., and the implementing regulations of the DIR in connection with the scope of work. This indemnification section shall survive the expiration of the Term.
The Federal and State Labor Law requirements applicable to the Agreement are composed of, but not limited, to the following items:
1. Payment of Prevailing Wage Rates: All contractors, including subcontractors, shall pay no less than the prevailing rate of wages (Labor Code §1775), including the rates for holidays and overtime work (Labor Code §§1813 and 1815), to all workers employed in the execution of the contract (Labor Code §1774), pursuant to Labor Code §§1720-1784. The prevailing rates are those issued as wage determinations by the DIR, for each craft, classification and type of work. The current wage rate information can be found at the DIR’s website at:
https://www.dir.ca.gov/oprl/DPreWageDetermination.htm.
Copies of the prevailing rate of per diem wages are on file at City’s Public Works Department (principal place of office). Contractor shall post a copy of the determination of the Director of DIR of the prevailing rate of per diem wages at each job site.
2. Apprentices: Contractor and subcontractors shall employ registered apprentices on this public works Agreement pursuant to Labor Code §1777.5. All contractors on this project (prime and subcontractors) are required to submit the Division of Apprenticeship Standards’ (“DAS”) Public Works Contract Award Information (DAS 140) form to all applicable apprenticeship committees no later than 10 days before commencing work. Additionally, all contractors are required to request registered apprentices (DAS 142 form).
Penalties for failure to pay prevailing wages (for non-exempt projects) and failure to employ apprentices include forfeitures and debarment under Labor Code §§1775 and 1777.7.
3. Certified Payroll Records: All contractors, including subcontractors, must maintain and file certified payroll records (“CPRs”) pursuant to Labor Code §1776. Additionally, all contractors and subcontractors must furnish certified payroll records into the DIR’s Electronic Certified Payroll Reporting (“eCPRs”) database
(https://efiling.dir.ca.gov/eCPR/pages/eCPROnlineForm.jsp). Penalties apply to Contractor and any Subcontractors for failure to do so under Labor Code §1777.
Attachment - C
4. Subcontracting: Contractors are required to list all subcontractors hired to perform work on this public works agreement.
5. Proper Licensing/Registration: All contractors and subcontractors are required to be properly licensed, in accordance with the Provisions of Chapter 9 of Division 3 of the Business and Professions Code and subject to the requirements of §4104 of the Public Contract Code. In addition, all contractors including subcontractors must submit proof of current registration to perform public work, pursuant to Labor Code §1771.1. Contractors are required to be properly licensed and to require all subcontractors to be properly licensed. Penalties for employing workers while unlicensed under Labor Code §1021 and under the California Contractors License Law, found at Business and Professions Code §7000 et. seq.
6. Job Site Notices: Contractors are required to post all required notices (posters) on the job site in an area accessible to all workers, including subcontractors. Posters must be readable and placed in visible areas allowing workers to access the posters before, during, and after work shifts. Jobsites with multiple locations must include a portable poster board to ensure continued access to the information. Posters placed in foreman, supervisor, or employee vehicles, in an offsite job trailer, or inside a temporary restroom do not meet the posting requirement. Posters may be printed from the DIR’s website at: http://www.dir.ca.gov/wpnodb.html.
7. Nondiscrimination in Employment – Equal Employment Opportunity (“EEO”):
Employment discrimination is prohibited, pursuant to Labor Code §1777.6, the Government Code, and Title VII of the Civil Rights Act of 1964.
8. Kickbacks Prohibited: Contractors and subcontractors are prohibited from recapturing wages illegally by accepting or extracting “kickbacks” from employee wages pursuant to Labor Code §1778.
9. Acceptance of Fees Prohibited: Contractors and subcontractors are prohibited from accepting fees for registering any person for public work or for filling work orders on public works contracts, pursuant to Labor Code §§1779 and 1780.
10. Unfair Competition Prohibited: Contractors and subcontractors are prohibited from engaging in unfair competition as specified under Business and Professions Code §§17200 - 17208.
11. Workers’ Compensation: Contractors and subcontractors must be properly insured for Workers’ Compensation under Labor Code §1861. Contractor hereby represents that Contractor is aware of the provisions of Section 3700 of the Labor Code, which require every employee to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor will comply with such provisions before commencing the performance of the work of this agreement.
12. OSHA: Contractors and subcontractors must abide by the Occupational, Safety, and Health Laws and regulations that apply.
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-426, Version: 1
California Department of Housing and Community Development Homekey Program Round 3 Approve a Resolution authorizing the submittal of a Joint Application to the California Department of Housing and Community Development (“HCD”) for Homekey Round 3; and authorizing the City Manager or designee to finalize a Memorandum of Understanding with Bay Area Community Services Housing Corporation (BACS) to acquire ten (10) residential properties throughout the City to serve as immediate housing for persons experiencing persistent homelessness.
City of Salinas Page 1 of 1 Printed on 6/15/2023
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: JUNE 20, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
BY: ROD POWELL, ASSISTANT DIRECTOR - ACTING
TITLE: AUTHORIZATION TO SUBMIT A JOINT APPLICATION TO THE
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT FOR HOMEKEY ROUND 3
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the submittal of a Joint Application to the California Department of Housing and Community Development (“HCD”) for Homekey Round 3 including the following actions:
a) authorizing the City Manager or designee to finalize a Memorandum of Understanding with Bay Area Community Services Housing Corporation (BACS) to acquire ten (10) residential properties throughout the City to serve as immediate housing for persons experiencing persistent homelessness; b) approving a local match contribution of up to $2 million in City HOME American Rescue Plan (HOME ARP) and City Permanent Local Housing Allocation (PLHA) funds to serve as the required four years of operating match and up to $800,000 in City American Rescue Plan Act (ARPA) funds to support required project development costs; and
c) approving the HCD Authorizing Resolution authorizing the submission of a Joint Application to and Participation in the Homekey Program for the acquisition of up to ten (10) residential properties throughout the City to serve as immediate housing for persons experiencing chronic homelessness in the amount not to exceed $20 million dollars.
EXECUTIVE SUMMARY:
On March 29, 2023, HCD announced the availability of approximately $736 million of Homekey Program Round 3 grant funding to build upon the success of its first two funding rounds of the Homekey program. This significant investment seeks to continue a statewide effort to rapidly expand affordable housing options for persons experiencing homelessness or at risk of homelessness, and who are impacted by or at increased risk for medical diseases or conditions.
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Through the submission of a Homekey Program Round 3 application, the City and its program partner and co-applicant, Bay Area Community Services (BACS), will access available acquisition and operational funding for the rapid development and occupancy of up to ten (10) residential properties throughout the City that will create 10-15 units of much needed housing for chronically homeless families. This opportunity represents the most expedient and cost-effective way to increase the City’s stock of affordable housing for unsheltered families.
BACKGROUND:
On March 29, 2023, the HCD released a Homekey Program Round 3 NOFA for $736 million. The City seeks to apply for Homekey Round 3 funding as soon as possible due to the first come, first served nature of the funding. The City has identified its existing, experienced shelter operator and experienced Homekey Round 1 awardee, BACS, as its application partner for this Homekey Program Round 3 application. BACS has over 50 years of extensive experience and expertise acquiring and managing traditional and non-traditional housing models including small-site, scattered properties throughout the greater Bay Area region. In 2020, BACS partnered with the City of Oakland on a unique proposal for the first round of State of California Project Homekey funding. This model utilizes BACS pioneering “Project Reclamation” approach of single-family home acquisition and was one of the only applications that was supported through the inaugural Project Homekey program. The project type was so successful in allowing for rapid acquisition and occupancy that BACS and the City of Oakland were each honored with the Enterprise Community Partner award for innovation in Homekey projects.
DISCUSSION:
The City’s Homekey Program Round 3 application with BACS would seek to acquire up to ten (10) residential properties within the City’s jurisdiction to provide 10-15 new affordable housing units for those experiencing chronic homelessness. In this model, BACS will provide property acquisition and renovation on project residences as well as property management. Additionally, BACS will also serve as the operating partner providing a supportive ‘care coordination’ model of light case management including employment development and assistance, benefit access and mental health support, financial assistance and money management, and other supportive services.
This project model does not require any additional City match for supportive services as the model seeks to serve those who are currently served by local referring service providers and/or are working but are not otherwise able to afford current market-rate rents.
As the current local operator of the SHARE Center, BACS is intimately familiar with the City’s need to provide additional housing opportunities for families and is well positioned to facilitate and move some of those currently residing in or waitlisted for entry to the SHARE Center into these new housing opportunities. It is estimated that occupancy of acquired residences will occur within thirty (30) days of the close of escrow. Initial and future residents will be referred to the project through the Coordinated Access and Referral System (CARS) administered by the Coalition for Homeless Services Providers (Coalition) on behalf of the Salinas/Monterey/San Benito Continuum of Care (CoC). The City and BACS will also seek to use additional supportive Housing Choice Vouchers through coordination and partnership with the Housing Authority County of Monterey (HACM).
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The City and BACS are prepared and well positioned to apply prior to the end of the Round 3 application period on July 28, 2023 and are poised to move quickly upon an award of Homekey funds. BACS’ Housing Corporation has over 50 years of expertise in acquiring and managing traditional and non-traditional properties. Currently, it owns more than 300 units of affordable, single-family homes across the greater Bay Area region – 129 of which were acquired as part of the inaugural 2020 Project Homekey awards. BACS’ Real Estate Development Team has strong quality control procedures around building design and quality. A long-established relationship with banking partner, West America, has resulted in a special loan product which allows the nonprofit to quickly and competitively secure move-in ready properties under all cash, 30-day close offers.
BACS will be responsible for completing required due diligence including an Appraisal, Property Needs Assessment, and any required Environmental Reports. The City will facilitate the consideration and resolution of any necessary land-use or zoning changes to include outreach to adjacent property owners to provide notification about the proposal and to incorporate features to minimize impacts. The City and BACS will also continue to coordinate with the Coalition to formalize the selection process of Homekey residents and the use of local Emergency Housing Vouchers to include the potential submission of an application to the HACM for future Project Based Vouchers. Any vouchers brought to the project by future residents will offset and reduce the total amount of actual operational costs incurred by the City.
HCD anticipates providing award announcements to applicants within 45 days of submission with the issuance of Standard Agreements to follow shortly after.
Project Timeline
June 20, 2023 – Council Approval to submit Homekey Round 3 Application July 28, 2023 – Submit Homekey Round 3 Application to HCD August 1 – October 31, 2023 – Anticipated HCD award notification September 1 – December 31, 2023 – Estimated Issuance of Standard Agreements and Disbursement of Funds
September 1 – January 31, 2024 – Estimated start of acquisition of properties October 1, 20223 – Estimated start of occupancy
The anticipated total amount requested in this Homekey Round 3 Application to HCD for this project is $10 million including $8.5 million for acquisition and development costs and $1.5 million for operating subsidy. However, HCD recommends that jurisdictions request double the anticipated grant award resulting in a total request of $20 million for the project. In this case, the attached HCD Resolution includes a respective total amount not to exceed $20 million for the project.
CEQA CONSIDERATION:
The City of Salinas has determined 140: (a) Notwithstanding any other law, the California Environmental Quality Act (Division 13 (commencing with section 21000) of the Public Resources Code) shall not apply to any project, including a phased project, funded pursuant to section 50675.1.3 if all of the following requirements, if applicable, are satisfied: (1) No units were Page | 4
acquired by eminent domain. (2) The units will be in decent, safe, and sanitary condition at the time of their occupancy. (3) The project proponent shall require all contractors and subcontractors performing work on the project to pay prevailing wages for any proposed rehabilitation, construction, or major alterations in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (4) The project proponent obtains an enforceable commitment that all contractors and subcontractors performing work on the project will use a skilled and trained workforce for any proposed rehabilitation, construction, or major alterations in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. (5) The project proponent submits to the lead agency a letter of support from a county, city, or other local public entity for any proposed rehabilitation, construction, or major alteration work. (6) Any acquisition is paid for, in whole or part, with public funds. (7) The project provides housing units for individuals and families who are experiencing homelessness or who are at risk of homelessness. (8) Long-term covenants and restrictions require the units to be restricted to persons experiencing homelessness or who are at risk of homelessness, which may include lower income and very low-income households, as defined by Section 50079.5, for no fewer than 55 years. (9) The project does not result in an increase in the existing onsite development footprint of structure, structures, or improvements by more than 10 percent. The Project qualifies for the exemption because it would meet all of these requirements.
STRATEGIC PLAN INITIATIVE:
The Project will help advance the following City of Salinas Strategic Plan 2022-2025 Goals and Strategies of Housing/\Affordable Housing by securing a grant to provide much needed permanent housing and wrap around services to those experiencing chronic homelessness.
DEPARTMENTAL COORDINATION:
The grant will be administered by the City’s Community Development Department (CDD). CDD will continue to work with the City Manager, Finance Director, and City Attorney to finalize the application and Memorandum of Understanding with BACS and to facilitate any necessary actions to complete the acquisition and development process.
FISCAL AND SUSTAINABILITY IMPACT:
To maximize HCD funding, jurisdictions must agree to provide sufficient local match to support any identified development gap funding and four (4) years of operational subsidy to secure three years of grant match funding from the state. The local match can include emergency housing vouchers (EHVs). The amount for four years of operational rental subsidy for ten (10) units assuming no EHVs is approximately $2 million. If a household living in these projects has a housing voucher, the total amount of operational rental subsidy provided by the City would be reduced. The City and BACS will seek to assist future residents to obtain a housing voucher through the Housing Authority of the County of Monterey and will also seek additional funding from the County and Continuum of Care to help subsidize these projects, thus reducing the City’s commitment.
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CDD’s Housing and Community Development Division has identified multiple funding sources to serve as City’s required $2 million operating match requirement including City HOME ARP and PLHA. Staff also recommends allocating $800,000 in City ARPA funds currently dedicated to the development of affordable housing as the required development gap funding source.
If this project receives a Homekey grant award, it may be necessary to return to City Council to formally appropriate the local match as required by the funding source. At that time, City Council may revisit the breakdown of funding if other funding sources are secured or identified.
ATTACHMENTS:
Resolution
State HCD Authorizing Resolution for Joint Application to and Participation in the Homekey Program
RESOLUTION NO. (N.C.S.)
AUTHORIZATION TO SUBMIT A JOINT APPLICATION TO THE CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR
HOMEKEY ROUND 3
WHEREAS, The California Department of Housing and Community Development (HCD) released a Notice of Funding Availability on March 29, 2023, announcing the availability of approximately $735 million in Homekey Program Round 3 funding to build upon the success of the first two rounds of the Homekey program and to continue statewide efforts to rapidly expand affordable housing options for persons experiencing homelessness or at risk of homelessness and who are impacted by COVID-19; and
WHEREAS, there continues to be a demonstrated need within the City for permanent housing for those experiencing chronic homelessness as demonstrated by the over five hundred individuals currently on the waitlist for the SHARE Center; and
WHEREAS, affordable supportive housing is one of the most expensive housing types to provide and the Homekey Program provides a unique funding opportunity to address the gap in financing this type of housing; and
WHEREAS, the Homekey Program is a tailored opportunity for local public agencies to acquire a broad range of housing types to quickly increase their community's capacity to respond to homelessness and the current COVID-19 pandemic; and
WHEREAS, the City has identified an existing, local shelter operator and experienced Homekey Round 1 awardee, Bay Area Community Services Housing Corporation, as its application partner for a Homekey Program Round 3 application; and WHEREAS, the City seeks to submit a timely application to the HCD for the Homekey Program Round 3 funding to purchase ten (10) residential properties throughout the City of Salinas, County of Monterey for immediate permanent housing for those experiencing chronic homelessness; and
WHEREAS, on June 14, 2023, the City and its Homekey partner participated in the required Homekey Round 3 Pre-Application Consultation with HCD staff and are continuing to work directly with an assigned Homekey Program Ambassador and HCD Technical Assistance consultant to formulate and submit an innovative, competitive application as soon as possible; and WHEREAS, the governing entity of Bay Area Community Services H o u s i n g C o r p o r a t i o n will also provide and approved HCD Co-Applicant Resolution and will facilitate required due diligence i t e m s including the appraisals, physical needs assessments, any required environmental reports, and title reports of properties to be acquired and would own and operate the oroperties; and
WHEREAS, the City of Salinas has determined that the proposed projects, if funded through Homekey Round 3, would be statutorily exempt from CEQA under the Health and Safety Code Section 50675.1.4; and
WHEREAS, to maximize the operational subsidy from the Homekey Round 3 Program, local jurisdictions must provide four (4) years of subsidy as a local match and close any identified development funding gaps; and
WHEREAS, a local operating match of up to $2 million has been identified including HUD HOME American Rescue Plan (HOME ARP) and HCD Permanent Local Housing Allocation (PLHA) funds; and
WHEREAS, $800,000 of City of Salinas American Rescue Plan Act (ARPA) funds have been identified as required development gaps funds for the application; and WHEREAS, it has been determined that the proposed action is exempt from the California Environmental Quality Act (CEQA) under the statutory exemptions added by AB 140 to Health and Safety Code section 50675.1.4.
NOW, THEREFORE, BE IT RESOLVED, that the Salinas City Council does hereby authorize and direct City staff to submit an application to HCD for the Homekey Program Round 3 including the following actions:
a) authorizing the City Manager or designee to finalize a Memorandum of Understanding with Bay Area Community Services to be executed by the Mayor; and b) approving a local required operating match of up to $2 million consisting of HOME ARP and PLHA funds and the required development gap funding of up to $800,000 from City ARPA funds; and
BE IT FURTHER RESOLVED, that the Salinas City Council does hereby approve an HCD Authorizing Resolution authorizing a Joint Application to and Participation in the Homekey Program for the acquisition of up to ten (10) residential properties located throughout the City to serve as immediate housing for those experiencing chronic homelessness in the amount not to exceed $20,000,000.
PASSED AND APPROVED this 20th day of June 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT: APPROVED:
Kimbley Craig, Mayor
ATTEST:
Patricia M. Barajas, City Clerk
AUTHORIZING RESOLUTION
RESOLUTION NO. ______
A RESOLUTION OF THE GOVERNING BODY OF CITY OF SALINAS AUTHORIZING
JOINT APPLICATION TO AND PARTICIPATION IN THE HOMEKEY PROGRAM WHEREAS:
A. The Department of Housing and Community Development (“Department”) has issued a Notice of Funding Availability, dated March 29, 2023 (“NOFA”), for the Homekey Program (“Homekey” or “Program”). The Department has issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section 50675.1.3 (Assem. Bill No. 140 (2021-2022 Reg. Sess.), § 20.).
B. CITY OF SALINAS (“Co-Applicant”) desires to jointly apply for Homekey grant funds with BAY AREA COMMUMNITY SERVICES HOUSING
CORPORATION (“Corporation”). Therefore, Co-Applicant is joining Corporation in the submittal of an application for Homekey funds (“Application”) to the Department for review and consideration.
C. The Department is authorized to administer Homekey pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code). Homekey funding allocations are subject to the terms and conditions of the NOFA, the Application, the Department-approved STD 213, Standard Agreement (“Standard Agreement”), and all other legal requirements of the Homekey Program.
THEREFORE, IT IS RESOLVED THAT:
1. Co-Applicant is hereby authorized and directed to submit a joint Application to the Department in response to the NOFA, and to jointly apply for Homekey grant funds in a total amount not to exceed $20,000,000.
2. If the Application is approved, Co-Applicant is hereby authorized and directed to enter into, execute, and deliver a Standard Agreement in a total amount not to exceed $20,000,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey funds from the Department and to participate in the Homekey Program, and all amendments thereto (collectively, the “Homekey Documents”).
3. Co-Applicant acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
4. The City Manager or designee, is authorized to execute the Application and the Homekey Documents on behalf of Co-Applicant for participation in the Homekey Program.
PASSED AND ADOPTED this 20th day of June, 2023, by the following vote:
AYES: [ #_] NAYES: [ #_] ABSTAIN: [ #_] ABSENT: [ #_]
The undersigned, Patricia M. Barajas, City Clerk of Co-Applicant, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the governing body adopted at a duly convened meeting on the date above-mentioned, and that the resolution has not been altered, amended, or repealed.
SIGNATURE: ________________________ DATE: _____________________ NAME: _____________________________ TITLE: _____________________ [NOTICE AND INSTRUCTIONS APPEAR ON THE FOLLOWING PAGE]
NOTICE AND INSTRUCTIONS
1. Notice. The Department is providing this template Authorizing Resolution as informational guidance only. The Department encourages each Co-Applicant to consult with professional legal counsel during the development of its own formal, legally binding statement that it is authorized to apply to and participate in the Homekey Program.
a. Please note, however, that any limitations or conditions on the authority of the signatory or signatories to execute the Application or the Homekey Documents may result in the Department rejecting the Authorizing Resolution.
2. Accuracy, Verification. The Department will verify that this Authorizing Resolution comports with the legal authority and composition of Co-Applicant’s governing body.
Co-Applicant must timely notify the Department, in writing, of any factors that limit its ability to provide an Authorizing Resolution which is materially in line with this template.
3. Dollar Amounts of Grant Awards. The Department recommends identifying an authorized dollar amount that is at least double the anticipated award (based on current formula calculations). Award amounts are subject to change. If Co-Applicant is ultimately awarded an amount in excess of the amount identified in the Authorizing Resolution, the Department will require a new Authorizing Resolution from CoApplicant before execution of a Standard Agreement.
4. Authorized Signatory or Signatories, Designee. Co-Applicant, as a state, regional, or local public entity, may designate an authorized signatory by title only. In addition, Co-Applicant may authorize multiple signatories, so long as there is clarifying language as to whether the signatories are authorized to execute the Homekey Documents individually or collectively. In addition, Co-Applicant may authorize a designee of the authorized signatory to execute the Homekey Documents. In such case, Co-Applicant must append a supporting document (e.g., memorandum, meeting notes of official action), which indicates the name and title of the designee who is authorized to legally bind the governing body.
5. Vote Count. Please fill out the field by every voting category (i.e., Ayes, Nayes, Abstain, Absent). If none, please indicate zero (0) for that field. The vote count must comport with the legal authority and membership of the Co-Applicant’s governing body.
6. Certification of Authorizing Resolution. The individual who certifies the Authorizing Resolution cannot also be authorized to execute the Homekey Documents on behalf of Co-Applicant.
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-427, Version: 1
Professional Services Agreement with MV Cheng & Associates, Inc.
Approve a Resolution authorizing the City Manager to execute a professional services agreement with MV Cheng & Associates, Inc. (“MV Cheng”) for accounting, financial reporting, and other finance-related services for a not-to-exceed amount of two hundred thousand dollars ($200,000), and approving payment of $1,645 to MV Cheng for the cost of services previously provided to the City.
City of Salinas Page 1 of 1 Printed on 6/15/2023
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: JUNE 20, 2023
DEPARTMENT: FINANCE
FROM: MARK ROBERTS, DIRECTOR OF FINANCE
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH MV CHENG &
ASSOCIATES, INC. FOR ACCOUNTING, FINANCIAL
REPORTING, AND OTHER FINANCE-RELATED SERVICES
RECOMMENDED MOTION:
Staff recommends the City Council approve a resolution:
1) authorizing the City Manager to execute a professional services agreement with MV Cheng & Associates, Inc. (“MV Cheng”) for accounting, financial reporting, and other financerelated services for a not-to-exceed amount of two hundred thousand dollars ($200,000), and
2) approving payment of $1,645 to MV Cheng for the cost of services previously provided to the City.
BACKGROUND:
Several positions have been vacant in the Department of Finance over the past two years, and, currently, one-half of the department’s senior staff positions, i.e., the professionals and supervisors/managers primarily responsible for the City’s accounting, financial reporting, and budget functions, are vacant. It is imperative the Department of Finance have sufficient resources to perform these functions, to ensure timely and accurate completion of accounting entries and adjustments, to avoid errors and unnecessary delays in the completion of the City’s annual audit and preparation of its financial statements, and to train staff. To acquire the resources needed, the City entered into an agreement with MV Cheng on July 22, 2022. The not-to-exceed amount of the agreement was one hundred thousand dollars ($100,000) and was signed by the City Manager, as the amount is within his approval authority. However, the cost of services received totaled one hundred one thousand six hundred forty-five dollars ($101,645). Since the total cost exceeds the contract limit and the City Manager’s authority by one thousand six hundred forty-five dollars ($1,645), Council approval of the additional amount is required. In addition, approval of a new agreement is requested, so the services may continue to be received until Finance’s senior staff positions have been filled and adequately trained.
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CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Adoption of the recommended resolution achieves the Council 2022-2025 Strategic Goal of Effective Government.
DEPARTMENTAL COORDINATION:
Preparation of this staff report was accomplished with the assistance of the City Attorney’s Office.
FISCAL AND SUSTAINABILITY IMPACT:
MV Cheng & Associates’ consulting fees will be based upon hourly rates for actual work performed, in accordance with the following schedule:
Staff Allocation Hourly Rate
Level 1 Consultant $150
Level 2 Consultant $125
ATTACHMENTS:
Professional Services Agreement with MV Cheng & Associates, Inc.
Resolution
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SALINAS
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH MV CHENG & ASSOCIATES, INC. FOR ACCOUNTING, FINANCIAL REPORTING,
AND OTHER FINANCE-RELATED SERVICES
WHEREAS, accounting, financial reporting, and budgeting are essential functions of the City of Salinas; and
WHEREAS, due to several staff vacancies, the City’s Department of Finance, which is responsible for these functions, requires assistance in performing them; and WHEREAS, MV Cheng & Associates, Inc. (“MV Cheng”) is qualified by experience and ability to perform accounting, financial reporting, and other finance-related services; and WHEREAS, on July 22, 2022, the City entered into a professional services agreement to receive such services from MV Cheng; and
WHEREAS, the total cost of services provided by MV Cheng exceeded the agreement’s contract limit by one thousand six hundred forty-five dollars ($1,645); and WHEREAS, MV Cheng & Associates, Inc. is willing to perform accounting, financial reporting, and other finance-related services for the period July 1, 2023, through December 31, 2023, with an additional one-year option.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council approves payment of one thousand six hundred forty-five dollars ($1,645) to MV Cheng & Associates, Inc. for the cost of services previously provided to the City; and BE IT FURTHER RESOLVED that the Salinas City Council authorizes the City Manager to execute a professional services agreement with MV Cheng & Associates, Inc. for accounting, financial reporting, and other finance-related services for the period of July 1, 2023, through December 31, 2023, with an additional one-year option for a not-to-exceed amount of two hundred thousand dollars ($200,000).
PASSED AND APPROVED this 20th day of June 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
2 APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
AGREEMENT
FOR PROFESSIONAL SERVICES
BETWEEN
THE CITY OF SALINAS AND MV CHENG
& ASSOCIATES, INC.
CONTENTS
RECITALS ................................................................................................................................. 1 TERMS ....................................................................................................................................... 1
1. Scope of Services. ................................................................................................................ 1
2. Term; Completion Schedule. ............................................................................................... 1
3. Compensation. ..................................................................................................................... 1
4. Billing. ................................................................................................................................. 1
5. Meet & Confer. .................................................................................................................... 2
6. Additional Copies. ............................................................................................................... 2
7. Responsibility of Consultant. ............................................................................................... 2
8. Responsibility of City. ......................................................................................................... 2
9. Acceptance of Work Not a Release. .................................................................................... 3
10. Hiring of Consultant’s Associates and/or Sub-contractors. ................................................. 3
11. Indemnification and Hold Harmless .................................................................................... 3
12. Insurance. ............................................................................................................................. 3
13. Access to Records. ............................................................................................................... 3
14. Non-Assignability. ............................................................................................................... 4
15. Changes to Scope of Work. ................................................................................................. 4
16. Ownership of Documents. ................................................................................................... 4
17. Termination. ......................................................................................................................... 4
18. Compliance with Laws, Rules, and Regulations. ................................................................ 5
19. Exhibits Incorporated. .......................................................................................................... 5
20. Independent Contractor. ....................................................................................................... 5
21. Integration and Entire Agreement. ....................................................................................... 5
22. Jurisdiction and Venue. ........................................................................................................ 6
23. Severability .......................................................................................................................... 6
24. Notices. ................................................................................................................................ 6
25. Nondiscrimination................................................................................................................ 7
26. Conflict of Interest. .............................................................................................................. 7
27. Headings. ............................................................................................................................. 7
28. Attorneys’ Fees .................................................................................................................... 7
29. Non-Exclusive Agreement. .................................................................................................. 7
30. Rights and Obligations Under Agreement. .......................................................................... 7
31. Licenses................................................................................................................................ 7
32. Counterparts. ........................................................................................................................ 7
33. Legal Representation. .......................................................................................................... 8
34. Joint Representation. ............................................................................................................ 8
35. Warranty of Authority.......................................................................................................... 8
36. No Waiver of Rights. ........................................................................................................... 8 Exhibit A – Insurance Requirements ........................................................................................ 10 Exhibit B – Scope of Services .................................................................................................. 13 Exhibit C – Fees ........................................................................................................................ 15 Form: Professional Service Agreement v. January 2021 Page 1 of 15 MV Cheng & Associates
June 2023
AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND MV CHENG & ASSOCIATES, INC.
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 20th day of June 2023, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and MV Cheng & Associates, Inc., a California S Corporation (hereinafter “Consultant”).
RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, City and Consultant agree as follows:
TERMS
1. Scope of Services. Consultant shall provide accounting, financial reporting, and other finance-related services, as set forth in Exhibit B, attached hereto, and incorporated herein by reference.
2. Term; Completion Schedule. This Agreement shall commence on July 1, 2023, and shall terminate on December 31, 2023, unless extended in writing by either party upon thirty (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties upon the same terms and conditions for one (1) additional one- (1-) year term 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 C. The total amount of compensation to be paid under this Agreement shall not exceed $200,000.
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, as applicable, 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; and
(D) The Consultant’s signature.
Form: Professional Service Agreement v. January 2021 Page 2 of 15 MV Cheng & Associates
July 2022
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.
City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.
5. Meet & Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.
6. Additional Copies. If City requires additional copies of reports, or any other material which Consultant is required to furnish as part of the services under this Agreement, Consultant shall provide such additional copies as are requested, and City shall compensate Consultant for the actual costs related to the production of such copies by Consultant.
7. Responsibility of Consultant. By executing this Agreement, Consultant agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, Consultant further agrees and represents to City that the Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted practices in this area to the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the projects for which the services are rendered under this Agreement.
8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City. (B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C) The Director of Finance, 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 Form: Professional Service Agreement v. January 2021 Page 3 of 15 MV Cheng & Associates
July 2022
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. Hiring of Consultant’s Associates and/or Sub-contractors. City agrees that each of Consultant’s associates and/or sub-contractors will only be able to obtain a direct contract or professional services agreement with City, only after the expiration of this Agreement and only after two (2) years from the expiration date of this Agreement. City agrees to hire an associate and/or sub-contractor of Consultant as a full-time, permanent, fully benefited employee of City, only if City has performed a recruitment and the associate and/or sub-contractor has billed 960 hours to City. City agrees to hire one associate and/or sub-contractor of Consultant as a parttime, non-benefited employee only if the associate and/or sub-contractor has billed 960 hours to City and City pays a fee of 5% of the associate and/or sub contractor’s annualized wages based on the hourly rate charged, to Consultant. If City employs associate and/or sub-contractor of Consultant through another temporary service or staffing agency, City agrees to pay a fee of 10% of the associate and/or sub contractor’s annualized wages based on the hourly rate charged, to Consultant.
11. 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.
12. Insurance. Consultant shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.
13. 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.
Form: Professional Service Agreement v. January 2021 Page 4 of 15 MV Cheng & Associates
July 2022
14. 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.
15. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes.
Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.
16. 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.
17. 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 C 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 Form: Professional Service Agreement v. January 2021 Page 5 of 15 MV Cheng & Associates
July 2022
expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense. (C) In the event that this Agreement is terminated by City for any reason, Consultant shall:
(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and (2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.
18. 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.
19. 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.
20. 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.
21. 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.
Form: Professional Service Agreement v. January 2021 Page 6 of 15 MV Cheng & Associates
July 2022
22. 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.
23. 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.
24. Notices.
(A) Written notices to the City hereunder shall, until further notice by City, be addressed to:
Director of Finance
City of Salinas
City Hall
200 Lincoln Avenue
Salinas, California 93901
With a copy to:
City Attorney
City of Salinas
City Hall
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
Misty Cheng, President & CEO
MV Cheng & Associates, Inc.
102 W. 24th St.
Upland, CA 91784
[email protected]
(C) The execution of any such notices by the Director of Finance 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 Director of Finance 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. If agreed upon by both parties, such notices may be delivered via electronic mail (i.e., e-mail).
Form: Professional Service Agreement v. January 2021 Page 7 of 15 MV Cheng & Associates
July 2022
25. 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.
26. 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.
27. 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.
28. 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.
29. 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.
30. 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.
31. 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.
32. 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.
Form: Professional Service Agreement v. January 2021 Page 8 of 15 MV Cheng & Associates
July 2022
33. 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.
34. 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.
35. 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.
36. No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof.
Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
Form: Professional Service Agreement v. January 2021 Page 9 of 15 MV Cheng & Associates
July 2022
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, or
□ Rhonda Combs, Assistant City Attorney
CONSULTANT
___________________________________
By (Printed Name): ___________________
Its (Title): ___________________________
Form: Professional Service Agreement v. January 2021 Page 10 of 15 MV Cheng & Associates
July 2022
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).
Form: Professional Service Agreement v. January 2021 Page 11 of 15 MV Cheng & Associates
July 2022
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant, its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultant to and approved by the City. At the option of the City, Consultant shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Form: Professional Service Agreement v. January 2021 Page 12 of 15 MV Cheng & Associates
July 2022
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.
Form: Professional Service Agreement v. January 2021 Page 13 of 15 MV Cheng & Associates
July 2022
Exhibit B – Scope of Services
Accounting, financial reporting, and budgeting services may include, but are not limited to, assisting the City of Salinas (“City”) as described below.
Coordinate annual audit and development of financial statements.
Prepare, collect, assemble, review, and/or edit schedules, documents, and information required by the auditor’s prepared-by-client (“PbC”) list, including:
management’s discussion and analysis;
transmittal letter;
Governmental Standards Accounting Board Statement No. 34 (GASB 34) – □ program revenues,
□ allocation of governmental-activities depreciation expense to functions, □ allocation of changes in compensated absences to governmental functions, □ allocation of changes in total other post-employment benefits liability to governmental functions,
□ net position calculation worksheet;
GASB 54 fund balance calculation worksheet;
schedules, documents, and information necessary for compliance with other applicable GASB pronouncements, e.g., Statement Nos 68, 72, 75, 84, 87, and 96; internal service fund charge allocations;
allocation of residual capital outlays to functions/programs; notes to the financial statements and supporting schedules; listings and descriptions of commitments and contingencies required for note disclosure; descriptions of subsequent events for note disclosure (if any); journal entries and supporting documents for prior period adjustments (if any); budgetary comparison schedules for the general funds and all major special revenue funds;
supplementary combining balance sheets; combining statements of revenues, expenditures, and changes in fund balances; and budgetary comparison schedules for non-major funds;
statistical section schedules;
additions and deletions (i.e., assets, liabilities, and equity) for agency funds.
Review and edit financial statements, including performing reconciliations as necessary.
Coordinate printing, publication, and submission of ACFR to Government Finance Officers Association and/or California Society of Municipal Finance Officers for award, if applicable.
Coordinate financial and compliance audit of the Successor Agency to the former Salinas Redevelopment Agency.
Coordinate required Single Audit of Federally Assisted Grant Programs.
Prepare financial reports for submission to State Controller and other agencies.
Prepare responses to analytical review questions from auditors.
Review general ledger balances and prepare adjusting entries as necessary.
Form: Professional Service Agreement v. January 2021 Page 14 of 15 MV Cheng & Associates
July 2022
Prepare budget schedules.
Review and reconcile budget schedules
Train staff on the following procedures, including developing manuals:
▪ subledger maintenance;
▪ year-end closing;
▪ payroll review and approval;
▪ audit procedures.
Review internal controls.
Advise City on best accounting, financial reporting, & budgeting practices.
Develop financial policies & ordinances.
Perform other finance-related services.
Form: Professional Service Agreement v. January 2021 Page 15 of 15 MV Cheng & Associates
July 2022
Exhibit C – Fees
Accounting, Financial Reporting, & Other Finance-Related Services Consultant’s all-inclusive fee for accounting, financial reporting, and other finance-related services shall be based upon hourly rates for actual work performed, in accordance with the following schedule:
Level 1 Consultant $150
Level 2 Consultant $125
Expenses (Out-of-Pocket)
Out-of-pocket travel expenses will be borne by Consultant.
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-428, Version: 1
Fiscal Year 2023-24 Assessment and Maintenance District Levies Transmittal to the Monterey County Tax Collector
Approve a Resolution authorizing staff to transmit to the Tax Collector’s office of the County of Monterey the annual levies for assessment and maintenance district fees and charges and agreeing to indemnify and defend Monterey County with respect to challenges to the levy on the City’s behalf.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: JUNE 20, 2023
DEPARTMENT: FINANCE
FROM: MARK ROBERTS, DIRECTOR OF FINANCE
BY: MONA SOTELO, PAYROLL SUPERVISOR
TITLE: RESOLUTION AUTHORIZING TRANSMITTAL OF FISCAL
YEAR 2024 ASSESSMENT AND MAINTENANCE DISTRICT
LEVIES TO THE MONTEREY COUNTY TAX COLLECTOR
RECOMMENDED MOTION:
Staff recommends the City Council approve a resolution authorizing transmittal of the levies for collection of the City’s assessment and maintenance district fees and charges for fiscal year 2024 to Monterey County and agreeing to indemnify and defend Monterey County with respect to challenges to the levy and collection of the assessments on the City’s behalf.
EXECUTIVE SUMMARY:
The City Council approves this resolution annually as it is required by Monterey County before the City’s assessment and maintenance district charges are levied and collected on property tax bills.
BACKGROUND:
Annually, the City of Salinas transmits assessment bond and maintenance district levies to Monterey County to be included on property tax bills for collection. A list of the levies for fiscal year 2024 is attached to this report for reference. The assessments related to the bonds are fixed at the time the bonds were originally issued unless there are subsequent parcel splits or a change in paying agent fees. No parcel splits occurred for this year’s assessment. The Maintenance District levies are determined by Public Works staff and are submitted to City Council for approval on August 8, 2023.
Staff has reviewed the City assessment and maintenance district levies for fiscal year 2024 and has concluded that the City is in compliance with all applicable laws. The City’s existing assessment districts are pledged to bond repayment. Existing maintenance districts are in compliance since there are no changes to the method of calculating assessments.
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Before it will agree to collect the assessments on the City’s behalf, the County requires the City Council to approve a resolution holding the County harmless from any action brought against the County for collection of the City’s levies.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Adoption of the recommended resolution would achieve the City Council 2022-2025 Strategic Goal of Effective Government.
FISCAL AND SUSTAINABILITY IMPACT:
The levies for assessment bonds ($561,668) and maintenance districts ($2,001,871) must be transmitted to Monterey County by August 1, 2023, to be posted to the property tax rolls for collection. These funds must be collected to pay assessment district bondholders and the cost of maintenance in the City’s six districts during fiscal year 2024.
ATTACHMENTS:
Exhibit A - Assessment and Maintenance District Levies, City of Salinas, Fiscal Year 2024 Resolution
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SALINAS AUTHORIZING TRANSMITTAL OF FISCAL YEAR 2024 ASSESSMENT AND
MAINTENANCE DISTRICT LEVIES TO THE MONTEREY COUNTY TAX
COLLECTOR
WHEREAS, the County of Monterey collects certain taxes, assessments, and propertyrelated fees or charges on behalf of local taxing entities in the county, including the City of Salinas; and
WHEREAS, the passage of Proposition 218 at the November 1996 election established requirements regarding imposition of certain of the taxes, assessments, fees, and charges by taxing entities in the county, many of which are unclear and may be subject to legal challenge; and WHEREAS, the County of Monterey believes it may be named in lawsuits alleging violations of Proposition 218 merely because it collects the taxes, assessments, fees, or charges at issue; and
WHEREAS, to avoid incurring such costs, the County of Monterey Auditor-Controller has asked each taxing entity in the county to adopt a resolution by no later than August 1, 2023, agreeing to defend the County and hold it harmless in any lawsuit as a condition to agreeing to collect any taxes, assessments, fees, or charges for the taxing entity for fiscal year 2024; and WHEREAS, the City Council finds and determines that it is in the interests of its citizens to comply with the request of the Auditor-Controller for defense and indemnification in such lawsuits notwithstanding the fact that the County is obligated to collect the taxes, assessments, fees, and charges for fiscal year 2024 transmitted by the City without such an agreement for defense and indemnity.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Salinas agrees to defend any action, suit or other proceeding brought against the County of Monterey, its officers, employees and agents alleging that the adoption, levy, imposition, or collection of a tax, assessment, fee or charge of the city, which the county collects on behalf of the city for fiscal year 2023-24, violates, fails to comply with, or is otherwise unlawful under Proposition 218, the defense will be by counsel selected by the City, provided that the county tenders defense to the city in a timely manner and cooperates with the city in defense of the action; and BE IT FURTHER RESOLVED that the City Council of the City of Salinas agrees to pay or satisfy any judgment rendered against the County of Monterey, its officers, employees and agents in every such action, suit, or other proceeding, including any claims for refunds and interest thereon, legal fees and court costs and administrative expenses of the County of Monterey to correct the tax rolls as a result of such action, suit or proceeding, for which the City has provided the county defense pursuant to the provisions of this resolution. 2 PASSED AND APPROVED this 20th day of June, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
EXHIBIT A
ASSESSMENT AND MAINTENANCE DISTRICT LEVIES
CITY OF SALINAS
FISCAL YEAR 2024
MAINTENANCE DISTRICTS
68200 Airport Business Center $ 14,468.00
69300 North East Area 959,750.00
69600 Harden Ranch Area 155,164.00
65200 Vista Nueva 29,890.00
65600 Mira Monte 122,762.00
69100 Monte Bella 719,837.00
Total $2,001,871.00
ASSESSMENT DISTRICT
65910 Reassessment District #2016 $ 55,000.00
SPECIAL TAX DISTRICT
69110 Community Facilities District 2016-1 (Monte Bella), IA1 $ 178,118.48 69115 Community Facilities District 2016-1 (Monte Bella), IA2 $ 149,949.72 69120 Community Facilities District 2016-1 (Monte Bella), IA3 $ 178,600.04 $ 506,668.24
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-430, Version: 1
FY 23-24 Workforce Allocation Adjustment; Classification and Salary Schedule Modification and Reorganization Plan for Community Development
Approve a Resolution adjusting the workforce allocation for Administration, and the Community Development Departments and approve a reorganization of the Community Development Department Permit Services Division with modification of the Classification - Salary Schedule to include the classifications of Communications Specialist, Chief Building Official, and Permit Center Manager.
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CITY OF SALINAS
COUNCIL STAFF REPORT
_________________________________________________________________________________ DATE: June 20, 2023
Department: HUMAN RESOURCES
FROM: Marina Horta-Gallegos, Human Resources Director
SUBJECT: FY 23-24 WORKFORCE ALLOCATION ADJUSTMENT;
CLASSIFICATION AND SALARY SCHEDULE MODIFICATION AND
REORGANIZATION PLAN FOR COMMUNITY DEVELOPMENT
RECOMMENDED MOTION:
It is recommended that the City Council approve a Resolution adjusting the workforce allocation for Administration, and the Community Development Departments and approve a reorganization of the Community Development Department Permit Services Division with modification of the Classification – Salary Schedule to include the classifications of Communications Specialist, Chief Building Official, and Permit Center Manager.
RECOMMENDATION:
Staff recommends that the City Council approve a Resolution adjusting the workforce for Administration and the Community Development Department and approve a reorganization of the Community Development Department, Permit Services Division, that includes a newly created Permit Center Manager and Chief Building Official and modification of the Classification – Salary Schedule.
BACKGROUND:
The newly approved FY 23-24 budget includes a “placeholder’ Project Coordinator to support the functions of the Community Relations Manager in Administration. Staff request to replace the Project Coordinator with a Communications Specialist. The Communications Specialist is a classification that better aligns with the needs of the Communications team and eliminates the need to revise the Project Coordinator job description.
The Community Development Department proposes to replace the vacant Planning Manager position in the Economic Development Division with a Senior Economic Development Manager. The Senior Economic Development Manager was previously replaced by a Planning Manager to better align division heads across the Planning Divisions and Housing; however, efforts to fill a Planning Manager to oversee the Economic Development Division were unsuccessful.
Additionally, the Community Development Department proposes to reorganize the Permit Services Division to include a Chief Building Official to oversee the technical functions of the division and a newly created Permit Center Manager position to oversee permit services and staff. Permit services were overseen by the former Community Development Director with a contract Building Official handling technical function. The contract Building Official provides limited services, and the recent departure of the former Director has necessitated the need to implement the contemplated reorganization sooner than anticipated.
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) (SEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed action meets the Effective and Culturally Responsive Government Council goal.
DEPARTMENTAL COORDINATION:
The Human Resources Department coordinated this effort with Administration and the Community Development Department.
FISCAL AND SUSTAINABILITY IMPACT:
The workforce allocation adjustments will not require any additional funding. The Communications Specialist will be funded at the same level as the Project Coordinator. The difference in salary between the Planning Manager and Senior Economic Development Manager of approximately $1,000 per month will be covered by salary savings.
The new Permit Center Manager position will be funded through the Enterprise Funds and the Chief Building Official is currently budgeted.
ATTACHMENTS:
Resolution
Exhibit A – Salary Schedule
RESOLUTION NO. _________ (N.C.S.)
RESOLUTION APPROVING FY 23-24 WORKFORCE ALLOCATION ADJUSTMENT AND
PERMIT CENTER REORGANIZATION AND
MODIFICATION TO CLASSIFICATION – SALARY SCHEDULE
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the workforce for the Community Development Department will reflect the elimination of one Planning Manager and one Permit Center Manager/Building Official and will reflect the addition of one Senior Economic Development Manager, one Chief Building Official, one Permit Center Manager. The Project Coordinator in Administration will be replaced with one Communications Specialist and the Classification – Salary Schedule will be modified to include the new classifications.
PASSED AND APPROVED this 20th day of June 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
____________________________________
Kimbley Craig, Mayor
ATTEST:
______________________________
Patricia M. Barajas, City Clerk
Exhibit A
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
16 Communications Specialist 34.6134 6,000 36.3451 6,300 38.1606 6,615 40.0733 6,946 42.0764 7,293 44.1826 7,658 15 Permit Center Manager 45.0733 7,813 47.3295 8,204 49.6967 8,614 52.1817 9,045 54.7842 9,496 57.5251 9,971 15 Chief Building Official 55.0612 9,544 57.8158 10,021 60.7090 10,523 63.7408 11,048 66.9314 11,601 70.2815 12,182 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-378, Version: 1
a. Real Property Negotiations - California Government Code Section 54956.8, conference with real property negotiators City Manager Steven S. Carrigan, City Attorney Christopher A. Callihan, and Community Development Director Lisa Brinton, to discuss the terms and sale of real properties located at 219 Salinas Street (APN 002242029000, Parking Lot 1); 210 Salinas Street (APN TNPAPN 000142, Parking Lot 8); 122 Lincoln Avenue (APN 002245008000, Parking Lot 12), 128 Lincoln Avenue (APN 002245007000, Parking Lot 12), 118 Lincoln Avenue (APN 002245005000, Parking Lot 12), 120 Lincoln Avenue (APN 0022458006000, Parking Lot 12), 112 Lincoln Avenue (APN 002245004000, Parking Lot 12).
b. Real Property Negotiations - California Government Code Section 54956.8, conference with real property negotiators City Manager Steven S. Carrigan, City Attorney Christopher A. Callihan, Community Development Director Lisa Brinton, and Assistant Community Development Director Rod Powell to discuss the terms and sale of real properties located at 14-16 Soledad Street (APN 002194006000), 23 Soledad Street (APN 002191026000), 25 Soledad Street (APN 002191027000), and 29 Soledad Street (APN 002191015000).
c. 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.
d. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Alisal Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV00340.
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