Salinas City Council
September 12, 2023

TABLE OF CONTENTS
TS

PROJECT SUMMARY
Y
2 2

PROCEDURES AND REQUIRMENTS
A. Term of the Agreement 3
B.

Scope of Work
rk 3
C.
.

Budget Detail
ail 3
D.
.

Narrative and Financial Reports
ts 4
E.

Claim Form and Payment
nt
5 5
EXHIBIT A: TERMS AND CONDITIONS
NS
7 7
EXHIBIT B: CERTIFICATION AND COMPLIANCE FORM
M
2 2
Certification 25
EXHIBIT C: STATE REIMBURSABLE TRAVEL EXPENSES
ES

27 2
7 7
DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

PROJECT SUMMARY
AWARD AGREEMENT BETWEEN THE STATE LIBRARY and Salinas Public Library for the English as a Second Language Services project.

AWARD AGREEMENT NUMBER ESL21-3-59
This Award Agreement (“Agreement”) is entered into on July 1, 2023 by and between the California State Library (“State Library”) and Salinas Public Library, (“Grantee”).

This Award Agreement pertains to Grantee’s State-funded English as a Second Language Services project.

The Library Development Services Bureau (“LDS”) of the State Library administers state and federal funds in the form of awards.

The Grantee was selected by the State Library to receive state grant funds in the amount of $47,385 through the process adopted by the State Library in administering such grants.

The State Library and the Grantee, for the consideration and under the conditions hereinafter set forth in the Grant Agreement, agree as follows:

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

PROCEDURES and REQUIREMENTS
A. Term of the Agreement
The Grant term begins July 1, 2023, and ends June 30, 2024. The project’s final expenditure date is December 31, 2024. If completion of the project occurs prior to the end of the grant period, this will be the end date of the term of this agreement. Grant eligible program expenditures may begin no earlier than the start date. The project's final encumbrance period ends on June 30, 2024, and all eligible program costs must be expended by December 31, 2024.

B. Scope of Work

1. Grantee agrees to perform all activities specifically identified in the Grantee’s application and submitted to the State Library in response to the English as a Second Language Services project.

2. The following activities and deliverables to be performed by the Grantee include, but are not limited to the following:
• Maintain and keep records of expenditures related to the grant that are consistent with Generally Acceptable Accounting Practices (GAAP). • Make financial records available to the State Library upon request. • Work with the State Library staff to assure that funds are disbursed in compliance with the purpose of the grant.
• Prepare and submit required narrative and financial reports. • Procure equipment, and other supplies as needed for the project. • Issue contracts for services, personnel, and consultants as needed for the project.
• If applicable, make payments for services, including for hours worked and travel reimbursements, to consultants and contractors.
• Oversee the implementation of project activities.

C. Budget Detail
The State Library shall provide the Grantee funding for the expenses incurred in performing the Scope of Work and activities specified in the Grantee’s application. The Grantee shall request the distribution of grant funding consistent with its proposal and DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

the budget worksheet that was included with the application. Under no circumstances shall payments exceed the total grant amount identified in this Agreement.

D. Narrative and Financial Reports

1. The Grantee shall be responsible for submission of interim and final narrative and financial reports on the progress and activities of the project, to the California State Library, using the sample report documents provided by the California State Library.

2. All the reports must be current, include all required sections and documents, and must be approved by the Grant Monitor before any payment request can be processed. Failure to comply with the specified reporting requirements may be considered a breach of this Agreement and result in the termination of the Agreement or rejection of the payment request and/or forfeiture by the Grantee of claims for costs incurred that might otherwise have been eligible for grant funding. Any problems or delays must be reported immediately to the Grant Monitor. The financial reports shall reflect the expenditures made by the Grantee under the Agreement and may be incorporated into the same reporting structure as the narrative reports.

3. The reports shall be submitted by the following dates:

Reporting Period Report Due Date
July – December 2023-2024 Mid-Year Report Due January 31, 2024 January – Project
End Date
2023-2024 Final Report Due September 30, 2024

4. Failure to submit timely reports with the appropriate documentation by the due date may result in rejection of the payment request and/or forfeiture by the Grantee of claims for costs incurred that might otherwise have been eligible for grant funding.

5. The Grantee agrees to maintain records and supporting documentation pertaining to the performance of this grant, subject to possible audit for a minimum of five (5) years after final payment date or grant term end date, whichever is later. Please refer to Exhibit A, Terms and Conditions, for more information.

E. Claim Form and Payment

1. The California State Library shall provid e the Grantee payment as outlined in the payment schedule only if all requirements for claiming the funds as outline in this document have been met, and only for those activities and costs specified in the approved award application.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

2. The Grantee shall complete, sign, and submit Certification of Compliance form (Exhibit B) and the Financial Claim form (included in your award packet), to the California State Library within 14 days of receiving this award packet. These forms will be issued, signed, and submitted using the online signature and agreement platform, DocuSign, unless DocuSign is unallowable or inconsistent with practices and policies of the local jurisdiction. If the use of DocuSign is not acceptable to your organization, please contact your grant monitor regarding alternate options.

3. Any of the sums appearing under the categories in the approved budget may be adjusted with prior authorization from the California State Library Grant Monitor. This would be to increase the allotment with the understanding that there will be corresponding decreases in the other allotments so that the total amount paid by the California State Library to the Grantee under this Agreement shall not exceed the awarded amount, which shall be expended/encumbered during the grant period.

4. If the payment amount made by the California State Library exceeds the actual expenses incurred during the term of this Agreement, as reflected in the financial reports to be filed by the Grantee, the Grantee shall immediately refund the excess payment amount to the California State Library.

5. The Award payments will only be made to the Grantee. It is the Grantee’s responsibility to pay all contractors and subcontractors for purchased goods and services.

6. The Final Payment of 10% will be withheld and retained by the California State Library until all conditions agreed upon in this Agreement, including submission and grant monitor approval of the interim and final narrative and financial reports, have been satisfied.

7. Prompt Payment Clause
The California State Library will make payments to the Grantee in accordance with the Prompt Payment Clause under Government Code, section 927, et. seq.

The Grantee may typically expect payment within 45 days from the date a grant payment request is properly submitted and approved by the Grant Monitor.

8. Budget Contingency Clause
a. It is mutually agreed that if the Budget Act of the current fiscal year or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall no longer be in full force and effect. In this event, the California State Library shall have no liability to pay any funds whatsoever to the Grantee or to furnish any other considerations under this Agreement and the Grantee shall not be obligated to perform any provisions of this Agreement.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

b. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this Program, the California State Library shall have the option to either cancel this Agreement with no liability occurring to itself or offer an Agreement amendment to the Grantee to reflect the reduced amount.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

EXHIBIT A: TERMS and CONDITIONS

1. Accessibility: The State is responsible for ensuring that public websites are accessible to both the general public and state employees, including persons with disabilities. Grantee shall assist the State in meeting its responsibility. Therefore, all project materials generated by state funded programs must meet the California Accessibility Standards. Additionally all project materials designed, developed, and maintained shall be in compliance with the California Government Code, sections 7405 and 11135, and the Web Content Accessibility Guidelines 2.0, or a subsequent version, as published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success criteria.

However, if for some reason project material is not generated to be in compliance to meet these standards, please still submit it to the State Library. When submitting the material make sure to note that the material is not accessible by including “NOT ACCESSIBLE” in the file name.

The California State Library reserves the right to post project materials to its website that are in compliance with these standards.

2. Acknowledgment: The State of Californi a and the California State Library shall be acknowledged in all promotional materials and publications related to the English as a Second Language Services project.
a. Grant award recipients must ensure that the State of California receives full credit as the source of funds and that the California State Library, likewise, is acknowledged as the administrator.
b. Publications and information releases about the project must credit the State of California. An appropriate statement for a publication or project press release is:
“This [publication/project] was supported in whole or in part by funding provided by the State of California, administered by the California State Library.”
Grantees must include the above statement in any publications, vehicle wraps, and promotional materials, including websites. If space is limited the State Library logo and the following shortened acknowledgement statement is acceptable:
“Funding provided by the State of California.”
DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

c. This credit line on products of a pr oject, such as materials, is important to foster support from the public, and state funding sources. d. California State Library Logo: Use of the California State Library logo, which can be downloaded on the California State Library website, is required on any publication, vehicle wrap, or promotional material along with the above statement(s).
e. Photo Documentation: Digital photos are a great way to document the happenings of your project. It is recommended that you use a photo release form when taking photos of the public. You may use your library’s photo release form, or contact your grant monitor for the State Library’s form.

3. Agency: In the performance of this Agreement the Grantee and its agents and employees shall act in an independent capacity and not as officers, employees or agents of the California State Library. The Grantee is solely responsible for all activities supported by the grant. Nothing in this Agreement creates a partnership, agency, joint venture, employment, or any other type of relationship between the parties. The Grantee shall not represent itself as an agent of the California State Library for any purpose, and has no authority to bind the State Library in any manner whatsoever.

4. Amendment: No amendment or variatio n of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required.

No oral understanding or agreement not incorporated into this Agreement is binding on any of the parties. This Agreement may be amended, modified or augmented by mutual consent of the parties, subject to the requirements and restrictions of this paragraph.

5. Applicable law: The laws of the Sta te of California shall govern all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder. The parties hereby waive any right to any other venue. The place where the Agreement is entered into and place where the obligation is incurred is Sacramento County, California.

6. Assignment, Successors, and Assign s: The Grantee may not assign this Agreement or delegate its performance to any third-party person or entity, either in whole or in part, without the California State Library’s prior written consent. The provisions of this Agreement shall be binding upon and inure to the benefit of the California State Library, the Grantee, and their respective successors and assigns.

7. Audit and Records Access: The Grantee ag rees that the California State Library, the Department of General Services, the State Auditor, or their designated representatives shall have the right to review, audit, inspect and copy any records and supporting documentation pertaining to the performance of this Agreement. The Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after the final payment, or grant term end date, DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

whichever is later, unless a longer period of records retention is stipulated, or until completion of any action and resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. The Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, the Grantee agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement.

Examples of audit documentation may include, but not limited to, competitive bids, grant amendments, if any, relating to the budget or work plan, copies of any agreements with contractors or subcontractors if utilized, expenditure ledger, payroll register entries, time sheets, personnel expenditure summary form, travel expense log, paid warrants, contracts and change orders, samples of items and materials developed with grant funds, invoices and/or cancelled checks.

8. Authorized Representative: Grantee an d the California State Library mutually represent that their authorized representatives have the requisite legal authority to sign on their organization’s behalf.

9. Communication: All communications from either party, including an interim check-in at any time during the grant term, shall be directed to the respective grant manager or representative of the California State Library or Grantee. For this purpose, the following contact information is provided below

Salinas Public Library
Kristan Lundquist
350 Lincoln Avenue
Salinas, CA 93901
[email protected]
(831) 758-7222

California State Library
Allyson Jeffredo
900 N Street
Sacramento, CA 95814
[email protected]
916-603-6709

10. Confidentiality: Grantee will maintain as confidential any material it receives or produces that is marked Confidential or is inherently confidential or is protected by privilege. Grantee agrees to alert the State Library to this status in advance, and State Library agrees to maintain this status in conformity with the Public Records Act.

11. Contractor and Subcontractors: Nothing contained in this Grant Agreement or otherwise shall create any contractual relation between the State and any contractor or subcontractors, and no contract or subcontract shall relieve the Grantee of his or her responsibilities and obligations hereunder. The Grantee agrees to be as fully responsible to the State for the acts and omissions of its DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

contractors, subcontractors, volunteers, student interns and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Grantee. The Grantee’s obligation to pay its contractors and subcontractors is an independent obligation from the State’s obligation to make payments to the Grantee. As a result, the State shall have no obligation to pay or to enforce the payment of any monies to any contractor or subcontractor.

12. Copyright: Grantee owns and retains titles to any copyrights or copyrightable material from any original works that it creates within the scope of this Agreement in accordance with the federal Copyright Act. (17 U.S.C. 101, et seq.) Grantee is responsible for obtaining any necessary licenses, permissions, releases or authorizations to use text, images, or other materials owned, copyrighted, or trademarked by third parties and for extending such licenses, permissions, releases, or authorizations to the California State Library pursuant to this section. Also, the California State Library may upload, post or transmit copyrighted material produced or purchased with grant funds on a California State Library website for public access and viewing.

13. Discharge of Grant Obligations: The Grantee's obligations under this Agreement shall be deemed discharged only upon acceptance of the final report by California State Library. If the Grantee is a non-profit entity, the Grantee’s Board of Directors shall accept and certify as accurate the final report prior to its submission to California State Library.

14. Dispute Resolution: In the event of a dispute, Grantee will discuss the problem informally with the Grant Monitor. If unresolved, the Grantee shall file a written “Notice of Dispute” with the State Library Grant Monitor within ten (10) days of discovery of the problem. Within ten (10) days of receipt, the Grant Monitor shall meet with the Grantee for purposes of resolving the dispute. Any dispute arising under the terms of this Agreement which is not disposed of within a reasonable period of time, the Grantee may bring it to the attention of the State Librarian or the designated representative. The decision of the State Librarian or designated representative shall be final. Unless otherwise instructed by the Grant Monitor, the Grantee shall continue with its responsibilities under this Agreement during any dispute.

15. Drug-free Workplace: The Grantee certifies under penalty of perjury under the laws of California, that the Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et. seq.) and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying empl oyees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

b. Establish a Drug-Free Awareness Program to inform employees about all of the following:
1) The dangers of drug abuse in the workplace.
2) The Grantee’s policy of maintaining a drug-free workplace; 3) Any available counseling, rehab ilitation and employee assistance programs.
4) Penalties that may be imposed upon employees for drug abuse violations.
c. Require that every employee who works on the Agreement will:
1) Receive a copy of the Gran tee’s drug-free workplace policy statement.
2) Agrees to abide by the terms of the Grantee’s statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and grantee may be ineligible for award of any future state agreements if the California State Library determines that the grantee has made a false certification or violated the certification by failing to carry out the requirements as noted above.

16. Effectiveness of Agreement: This Agreement is of no force or effect until signed by both parties.

17. Entire Agreement: This Agreement supersedes all prior agreements, oral or written, made with respect to the subject hereof and, together with all attachments hereto, contains the entire agreement of the parties.

18. Exclusive Agreement: This is the entire Agreement between the California State Library and Grantee.

19. Executive Order N-6-22-Russia Sanctions: The Grantee shall comply with Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate grant agreements with, and to refrain from entering any new grant agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Grantee advance written notice of such termination, allowing Grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

20. Extension: The State Librarian or designee may extend the final deadline for good cause. The Grantee’s request for an extension of the grant period must be DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
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English as a Second Language Services
2023-2024 ESL21-3-59

made in writing and received by the California State Library at least 30 days prior to the final deadline.

21. Failure to Perform: The grant being utilized by the Grantee is to benefit the English as a Second Language Services project. If the Grant Monitor determines the Grantee has not complied with this Agreement, the Grantee may forfeit the right to reimbursement of any grant funds not already paid by the California State Library, including, but not limited to, the ten percent (10%) withhold.

22. Federal and State Taxes: The State Library shall not:
a. Withhold Federal Insurance Contributions Act (FICA) payments from Grantee’s payments or make FICA payments on the Grantee’s behalf; or
b. Make Federal or State unemployment insurance contributions on Grantee’s behalf; or
c. Withhold Federal or State income taxes from Grantee’s payments Grantee shall pay all taxes required on payments made under this Agreement including applicable income taxes and FICA.

23. Force Majeure: Neither the California State Library nor the Grantee, its contractors, vendors, or subcontractors, if any, shall be responsible hereunder for any delay, default, or nonperformance of this Agreement, to the extent that such delay, default, or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, flood, or other contingencies unforeseen by the California State Library or the Grantee, its contractors, vendors, or subcontractors, and beyond the reasonable control of such party.

24. Forfeit of Grant Funds and Repayment of Funds Improperly Expended: If grant funds are not expended, or have not been expended, in accordance with this Agreement, the State Librarian or designee, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the Grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the ten percent (10%) withhold, and/or to repay to the California State Library any funds improperly expended.

25. Fringe Benefit Ineligibility: Grantee agrees that neither the Grantee nor its employees and contract personnel are eligible to participate in any employee pension, health benefit, vacation pay, sick pay or other fringe benefit plan of the State of California or the State Library.

26. Generally Accepted Accounting Principles: The Grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

27. Grant Monitor: The Grant Monitor’s responsibilities include monitoring grant progress, and reviewing and approving Grant Payment Requests and other documents delivered to the California State Library pursuant to this Agreement.

The Grant Monitor may monitor Grantee performance to ensure Grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Monitor does not have the authority to approve any deviation from or revision to the Terms and Conditions (Exhibit A) or the Procedures and Requirements unless such authority is expressly stated in the Procedures and Requirements.

28. Grantee: the government or legal entity to which a grant is awarded and which is accountable to the California State Library for the use of the funds provided. a. The grantee will make reports to the State Librarian in such form and containing such information as may be required to ensure the proper used of funds consistent with the grantee’s application and award agreement. The grantee will keep such records and afford such access as the California State Library may find necessary to assure the correctness and verification of such reports.

29. Grantee Accountability: The Grantee is ultimately responsible and accountable for the manner in which the grant funds are utilized and accounted for and the way the grant is administered, even if the Grantee has contracted with another organization, public or private, to administer or operate its grant program. In the event an audit should determine that grant funds are owed to the California State Library, the Grantee is responsible for repayment of the funds to the California State Library.

30. Grantee Funds: It is mutually agreed that the Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete the project.

31. Independent Action: Grantee reserves the right to fulfill its obligations under this Agreement in an independent manner, at any location and at any time within the agreed-upon timeline. Grantee’s employees or contract personnel shall perform all services required by this Agreement, but their time need not be devoted solely to fulfilling obligations under this Agreement. Grantee shall furnish all equipment and materials used to meet its obligations, and complete the Project. The State Library shall not provide any personnel or other resources beyond the grant award, and is not required to provide training in connection with this Agreement.

32. Indemnification: Grantee agrees to indemnify, defend and save harmless the State of California, the California State Library and its officers, employees, and agents, from any and all claims, losses, and liabilities accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
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or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Grantee in the performance of this Agreement.

33. License to Use: The California State Library reserves a fully paid-up, royalty-free, nonexclusive, sub-licensable and irrevocable license to reproduce, publish, prepare derivative works, distribute or otherwise use, and to authorize third parties to use, any material received or maintained by Grantee in connection with this Agreement. This includes intellectual property, with or without third- party rights. All such usages will be for public library and State governmental purposes:

a. The copyright in any work developed under this grant, sub-grant, or contract under this grant or sub-grant; and
b. Any rights of copyright to which a Grantee, sub-grantee, or a contractor purchases ownership with grant support.

34. Limitation of Expenditure: Expenditure for all projects must conform to the grantee’s approved budget and with applicable State laws and regulations. The total amount paid by the California State Library to the Grantee under this agreement shall not exceed $47,385 and shall be expended/encumbered in the designated award period.

During the award period, the grantee may find that the awarded budget may need to be modified. Budget changes, requests for additional funds, or requests for reductions in award funding must be discussed with the assigned State Library Grant Monitor and a Grant Award Modification may be required to be submitted according to the instructions. Approval is by the State Librarian or their designee. Adjustments should be reported on the next financial report. Any adjustments in approved budgets must be documented and documentation retained in project accounts.

35. Lobbying: Grantee confirms that the grant funds will not be used for the purposes of lobbying or otherwise attempting to influence legislation, as those purposes are defined by the U.S. Internal Revenue Code of 1986.

36. Non-Discrimination Clause: During this grant period, the Grantee and the Grantee’s contractors, and subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
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sex, age, sexual orientation, or military and veteran status. Grantee shall insure that the evaluation and treatment of contractors, employees and applicants for employment are free from such discrimination and harassment.

Additionally, Grantee, contractors, and subcontractors, if applicable, shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by the California State Library to implement such article.

Grantee shall permit access by representatives of the Department of Fair Employment and Housing and the California State Library upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the California State Library shall require ascertaining compliance with this clause. Grantee, and its contractors, and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Grantee shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement.

37. Notices: All notices and other communications in connection with this Agreement shall be in writing, and shall be considered delivered as follows:
a. Electronic Mail (E-mail): When sent by e-mail to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
b. DocuSign (e-signature platform): When sent via DocuSign a notification will be sent to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
c. Grants Management System: When sent via / uploaded to the California State Library’s Grants Management System a notification will be sent to the last e-mail address of the recipient known to the party giving notice.

Notice is effective upon transmission.
d. Personally: When delivered personally to the recipient’s physical address as stated in this Agreement.
e. U.S. Mail: Five days after being deposited in the U.S. Mail, postage prepaid, and addressed to recipient’s address as stated in this Agreement.

38. Order of Precedence: The performance of this Agreement shall be conducted in accordance with the Terms and Conditions, Procedures and Requirements, DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
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Certificate of Compliance, Project Summary, Activities Timeline, and Budget, of this Agreement, or other combination of exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as “Terms”).

Grantee’s California State Library-approved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply:
a. Grant Agreement Coversheet and any Amendments thereto b. Terms and Conditions
c. Procedures and Requirements
d. Certificate of Compliance
e. Project Summary
f. Grantee’s Application (including Budget and Activities Timeline) g. All other attachments hereto, including any that are incorporated by reference.

39. Payment:
a. The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Project Summary and Activity Timeline included in the project application. California State Library shall provide funding to the Grantee for only the work and tasks specified in the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement.
b. The Grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget and shall obtain the Grant Monitor’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application, or the approved Budget prior to performing the changed work or incurring the changed cost. If the Grantee fails to obtain such prior written approval, the State Librarian or designee, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. c. The Grantee shall request funds in accordance with the funding schedule included in this agreement.
d. Ten percent (10%) will be withheld from the Payment Request (if applicable) and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld.
e. Lodgings, Meals and Incidentals: Grantee’s eligible costs are limited to the amounts authorized in the California State Administrative Manual (see Exhibit C or contact the Grant Monitor for more information). f. Payment will be made only to the Grantee.
g. Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements.

40. Personal Jurisdiction: The Grantee consents to personal jurisdiction in the State of California for all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.

Native American Tribal grantees expressly waive tribal sovereign immunity as a defense to any and all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.

41. Personnel Costs: Any personnel expenditures to be paid for with grant funds must be computed based on actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for their regular job duties, including a proportionate share of any benefits to which the employee is entitled.

42. Pledge: This Agreement shall not be interpreted to create any pledge or any commitment by the State Library to make any other or further grants or contributions to Grantee, or any other person or entity in connection with the Project. It is mutually agreed that Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete outcomes or deliverables.

43. Privacy Protection: Both parties agree to protect the confidentiality of any non- public, personal information that may be contained in materials received or produced in connection with this Agreement, as required by Civil Code, section 1798, et. seq.

44. Prohibited Use: The expenditure under this program shall not be used to supplant Grantee efforts in other grant programs provided by the California State Library.

45. Public Records Act: Material maintained or used by the California State Library is considered “public record” under the Public Records Act (PRA) at Government Code, sections 6250, et. seq. This includes the Interim and Final reports, and any other written communications between the parties. Grantee agrees to ensure that all content contained in its written reports are appropriate for publication.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

Said material, along with all other reports, documentation and data collected during the term of the Agreement, will be subject to disclosure unless it qualifies for exemption under the PRA in whole or in part. Grantee agrees to alert the State Library as to a basis for exemption, if any exists.

46. Publicity Obligations: Grantee will notify the State Library of any promotional materials or publications resulting from the grant no later than five (5) days in advance of distribution, whether they are print, film, electronic, or in any other format or medium. Copies of all promotional materials will be provided to the State Library. Grantee will acknowledge the State Library’s support as noted above. Grantee agrees that the State Library may include information about this grant and its outcomes in its own annual reports, with specific reference to Grantee, and may distribute such information to third parties.

47. Records: Communications, grant related documents, data, original receipts, and invoices must be maintained by Grantee and shall be made available to the State Library upon request. Grantee agrees to maintain adequate grant program records and adequate financial records consistent with generally accepted accounting practices, and to retain all records for at least five (5) years after the end-of-term. The State Library may monitor or conduct an onsite evaluation of Grantee’s operation to ensure compliance with this Agreement, with reasonable advance notice.

48. Reduction of Waste: In the performance of this Agreement, Grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate.

49. Reimbursement Limitations: Under no circumstances shall the Grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid for through another funding source. The Grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other California State Library funded program.

50. Reports and Claims: It is the responsibility of the grantee make the required reports and claims to the California State Library.
a. The grantee shall be responsible for submitting to the State Library Narrative Reports detailing progress and activities. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

b. The grantee shall be responsible for submitting to the State Library Financial Reports reflecting grantee expenditure activity. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
c. To obtain payment hereunder the grantee shall submit authorized claims provided by the State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit.
d. The final 10% of the grant award (if applicable) is payable only upon approval of all final reports and receipt of claim form. Failure to provide timely reports is a serious breach of an award recipient’s administrative duty under the award.
e. Payment will be provided to cover the expenditures incurred by the grantee for the project in the following manner:
o $47,385
upon execution of the agreement and submission of claim by the grantee organization.

51. Self-Dealing and Arm’s Length Transactions: All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’s- length transactions and not the result of, or motivated by, self-dealing on the part of the Grantee or any employee or agent of the Grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended.

52. Severability: If any part of this Agreement is found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement, but the remainder of the provisions in the Agreement will remain in full force and effect.

53. Site Visits: The Grantee shall allow the California State Library to access and conduct site visits, with reasonable notice, at which grant funds are expended and related work being performed at any time during the performance of the work and for up to ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved. A site visit may include, but not DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

be limited to, monitoring the use of grant funds, provide technical assistance when needed, and to visit the State funded project.

54. Termination: The Agreement shall be subject to termination by the State Librarian or designee upon notice to the Grantee at least thirty (30) days prior to the effective date of termination. In the event this agreement is terminated, the Grantee shall deliver to the State Librarian copies of all reports, accounting, data, and materials prepared up to the date of termination. The State Librarian shall determine and pay the Grantee for necessary and appropriate expenditures and obligations up to the date of termination which have not been covered by prior installments previously paid to the Grantee. Upon such termination, the unused portion of the grant award must be returned to the California State Library within 45 days. If funding has been advanced to the Grantee, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 45 days of the notice of termination.

55. Timeline: Time is of the essence to this Agreement. It is mutually agreed between the parties that the grant application and the timeline included therein are part of the Agreement.

56. Unused Funds: At the end-of-term Grantee agrees to return any unexpended or unaccounted for funds to the State Library, or to submit a written request for an extension of the grant period. Funds will be considered unexpended or unaccounted if they were: (1) not used for their intended purpose, or (2) used inconsistent with the terms of this Agreement.

Funds will also be considered unaccounted for, and must be returned, if the proposal outcomes or deliverables are materially incomplete by the end-of-term or earlier termination, as determined by the State Library in its sole discretion.

57. Waiver of Rights: California State Library shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by California State Library. No delay or omission on the part of California State Library in exercising any rights shall operate as a waiver of such right or any other right. A waiver by California State Library of a provision of this Agreement shall not prejudice or constitute a waiver of California State Library’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by California State Library, nor any course of dealing between California State Library and Grantee, shall constitute a waiver of any of California State Library’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of California State Library is required under this Agreement, the granting of such consent by California State DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

Library in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of California State Library.

58. Work Products: Grantee shall provide California State Library with copies of all final products identified in the Work Plan and Application. Grantee shall also provide the State Library with copies of all public education and advertising material produced pursuant to this Agreement.

59. Worker’s Compensation: The State of California will not provide Workers’ Compensation insurance for Grantee or Grantee’s employees or contract personnel. If Grantee hires employees to perform services required by this Agreement, Grantee shall provide Workers’ Compensation insurance for them.

The Grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the Labor Code, and the Grantee agrees to comply with such provisions before commencing the performance of the work of this Agreement.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

EXHIBIT B: CERTIFICATION of COMPLIANCE FORM

1. AUTHORIZED REPRESENTATIVE: I certify that the authorized representative named below is the legally designated representative of the Grantee for this Grant Agreement and project and is authorized to receive and expend funds in order to administer this grant program.

2. I certify that all information provided to the California State Library for review in association with this award is correct and complete to the best of my knowledge, and as the authorized representative of the Grantee, I commit to the conditions of this award, and I have the legal authority to do so.

3. I certify that any or all other participants or contractors in the grant program have agreed to the terms of the application/grant award and have entered into an agreement(s) concerning the final disposition of equipment, facilities, and materials purchased for this program from the funds awarded for the activities and services described in the attached, as approved and/or as amended in the application by the California State Librarian.

4. The authorized representative, on behalf of the Grantee, certifies that the Grantee will comply with all applicable requirements of State and Federal laws, regulations, and policies governing this program, to include the requirements listed below in this Certification of Compliance Form.

5. The authorized representative, on behalf of the Grantee, hereby certifies to the California State Library, for an award of funds in the amount $47,385. This award will provide library services as set forth in the Project Application as approved and/or as amended by the California State Librarian.

6. STATEMENT OF COMPLIANCE: Grantee has, unless exempted, complied with the non-discrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102).

7. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug- free workplace by taking the following actions:
a. Publish a statement notifying empl oyees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

2) the person's or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the compan y's drug-free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Grantee may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Grantee has made false certification or violated the certification by failing to carry out the requirements as noted above. (Gov. Code § 8350 et. seq.)

8. CONFLICT OF INTEREST: Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the status of any person rendering services or involved with the Agreement, the California State Library must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code § 10410):
a. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code § 10411):
a. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (Pub. Contract Code § 10420).

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub.

Contract Code § 10430 (e)).

9. LABOR CODE/WORKERS' COMPENSATION: Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code § 3700).

10. AMERICANS WITH DISABILITIES ACT: Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et. seq.)

11. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

12. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all Grantees that are not another state agency or other governmental entity.

13. DRUG FREE WORKPLACE:
a. Continue to provide a drug-free workplace by complying with the requirements in 2 C.F.R. part 3186 (Requirements for Drug-Free Workplace (Financial Assistance)). In particular, the recipient must comply with drug- free workplace requirements in subpart B of 2 C.F.R. part 3186, which adopts the Government-wide implementation (2 C.F.R. part 182) of sections 5152-5158 of the Drug-Free Workplace Act of 1988 (P. L. 100-690, Title V, Subtitle D; 41 U.S.C. §§ 701-707).
b. This includes but is not limited to: making a good faith effort, on a continuing basis, to maintain a drug-free workplace; publishing a drug- free workplace statement; establishing a drug-free awareness program for the employees; taking actions concerning employees who are convicted of violating drug statutes in the workplace.

14. ACCESSIBILITY: The organization receiving this award, as listed in the certification section below, and all program staff, will ensure all project materials will meet California accessibility standards.

15. NON-DISCRIMINATION: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with all California non-discrimination laws.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

16. ACKNOWLEDGEMENT: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with California State Library acknowledgement requirements.

Certification

ORGANIZATION
Name: Address (official and complete):

PROJECT COORDINATOR
Name:

Email: Phone:

GRANTTEE AUTHORIZED REPRESENTATIVE
Name: Title:

Email: Phone:

Signature: Date:

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D [email protected]
Kristan Lundquist
In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

Authorized Representative Signature

ORGANIZATION
Name: Address (official and complete):

AUTHROIZED REPRESENTATIVE
Signature: Date:

Printed Name of Person Signing: Title:

STATE OF CALIFORNIA
Agency Name: California State Library Address: 900 N Street, Sacramento, CA 95814 Signature: Date:

Printed Name of Person Signing: Title: California State Librarian DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D 7/13/2023
Greg Lucas
Kristan Lundquist
In Process
Salinas Public Library
English as a Second Language Services
2023-2024 ESL21-3-59

EXHIBIT B: STATE REIMBURSABLE TRAVEL EXPENSES
Rates are subject to change per State of California, Department of Human Resources Please Check State of California, Department of Human Resources Website for updated expenses:
http://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx Mileage:

Rate subject to change
$0.56 per mile – approved business/travel expense
Meals:

Receipts are required
$7.00 – Breakfast
$11.00 – Lunch
$23.00 – Dinner
$5.00 - Incidentals
Meals Note: Lunch can only be claimed if travel is more than 24 hours. Incidental charge may be claimed once for every 24-hour period and should cover incidental expenses, such as but not limited to, tip, baggage handling, etc.

Hotel:

Receipts are required
and MUST have a zero
balance.
$ 90.00 plus tax for all counties/cities not listed below $ 95.00 plus tax for Napa, Riverside, and Sacramento
Counties
$ 110.00 plus tax for Marin County
$ 120.00 plus tax for Los Angeles, Orange, and Ventura
Counties, and Edwards AFB. Excluding the city of Santa
Monica
$ 125.00 plus tax for Monterey and San Diego Counties
$ 140.00 plus tax for Alameda, San Mateo and Santa
Clara Counties
$ 150.00 plus tax for the City of Santa Monica
$ 250.00 plus tax for San Francisco County
Out of State: Prior authorization must be obtained, as well as three print-out hotel quotes. Actual receipt must be included with authorization and additional quotes.

Hotel Note: If the above approved reimbursable hotel rates cannot be secured, please contact your grant monitor to obtain an excess lodging form. This form must be approved prior to actual travel.

AIRLINE TICKETS:

Itinerary and receipts are
required
Actual reasonable fees pertaining to airline travel will be reimbursed. Business, First Class, or Early Bird Check-in fee is not an approved reimbursable expense.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process

5 June 2023
RE: Contractor and Grantee Compliance with Economic Sanctions Imposed in Response to Russia’s Actions in Ukraine

Dear Grantee,

You are receiving this notification because you currently have an active grant through the California State Library.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (EO) regarding sanctions in response to Russian aggression in Ukraine. The EO is located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf.

The EO directs all agencies and departments that are subject to the Governor’s authority to take certain immediate steps, including notifying all contractors and grantees of their obligations to comply with existing economic sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law.

This correspondence serves as a notice under the EO that as a contractor or grantee, compliance with the economic sanctions imposed in response to Russia’s actions in Ukraine is required, including with respect to, but not limited to, the federal executive orders identified in the EO and the sanctions identified on the U.S. Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country- information/ukraine-russia-related-sanctions). Failure to comply may result in the termination of contracts or grants, as applicable.

Please note that for any agreements or grants valued at $5 million or more, a separate notification will be sent outlining additional requirements specified under the EO.

Annly Roman
California State Library
900 N Street
Sacramento, CA 95814
DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process

California Library Literacy and English Acquisition Services

FINANCIAL CLAIM

PAYMENT IN FULL

CERTIFICATION
I hereby certify under penalty of perjury: that I am the duly authorized representative of the claimant herein; that this claim is in all respects true, correct and in accordance with law and the terms of the agreement; and that payment has not previously been received for the amount claimed herein.

By

(Signature of the Authorized Representative)

(Print Name) (Title)

*Legal payee name must match the payee’s federal tax return. Warrant will be made payable to payee name. Payee discrepancies in name and/or address may cause delay in payment. If you need to change payee name and/or address, please contact Fiscal Services at [email protected].

State of California, State Library Fiscal Office

ENY: 2021 ITEM NO: 6120-2131-0001, Chapter 240, Statutes of 2021 PURCHASING AUTHORITY NUMBER: CSL-6120 REPORTING STRUCTURE: 61202000 COA: 5432000 PROGRAM #: 5312

By Date
(State Library Representative)
Grant Award #: ESL21-3-59 Date:

Invoice #:

ESL21-3-59-01 PO #:

Payee Name: Salinas Public Library
(Legal name of authorized agency to receive, disburse and account for funds*) Complete Address:

Street Address, City, State, Zip Code (Warrant will be mailed to this address) Amount Claimed: $47,385 Type of Payment:
(Payable Upon Execution of Agreement) ☐ PROGRESS
Grantee Name: Salinas Public Library ☐ FINAL (Name on Award Letter and Agreement) ☒ IN FULL
Project Title: English as a Second Language ☐ AUGMENT
For Period From: upon execution to end of grant period
DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
STATE OF CALIFORNIA – DEPARTMENT OF FINANCE

PAYEE DATA RECORD
(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)
Section 1 – Payee Information
NAME (This is required. Do not leave this line blank. Must match the payee’s federal tax return) BUSINESS NAME, DBA NAME or DISREGARDED SINGLE MEMBER LLC NAME (If different from above) MAILING ADDRESS (number, street, apt. or suite no.) (See instructions on Page 2)

CITY, STATE, ZIP CODE E-MAIL ADDRESS
Section 2 – Entity Type
Check one (1) box only that matches the entity type of the Payee listed in Section 1 above. (See instructions on page 2) CORPORATION (see instructions on page 2)☐ SOLE PROPRIETOR / INDIVIDUAL ☐ MEDICAL (e.g., dentistry, chiropractic, etc.)☐ SINGLE MEMBER LLC Disregarded Entity owned by an individual ☐ PARTNERSHIP
☐ ESTATE OR TRUST
☐ LEGAL (e.g., attorney services)
☐ EXEMPT (e.g., nonprofit)
☐ ALL OTHERS
Section 3 – Tax Identification Number
Enter your Tax Identification Number (TIN) in the appropriate box. The TIN must match the name given in Section 1 of this form. Do not provide more than one (1) TIN.

The TIN is a 9-digit number. Note: Payment will not be processed without a TIN. •
•
•
•
•
•
For Individuals, enter SSN.

If you are a Resident Alien, and you do not have and are not eligible to get an SSN, enter your ITIN.

Grantor Trusts (such as a Revocable Living Trust while the grantors are alive) may not have a separate FEIN. Those trusts must enter the individual grantor’s SSN.

For Sole Proprietor or Single Member LLC (disregarded entity), in which the sole member is an individual, enter SSN (ITIN if applicable) or FEIN (FTB prefers SSN).

For Single Member LLC (disregarded entity), in which the s ole member is a business entity, enter the owner entity’s FEIN. Do not use the disregarded entity’s FEIN.

For all other entities including LLC that is taxed as a corporation or partnership, estates/trusts (with FEINs), enter the entity’s FEIN.

Social Security Number (SSN) or
Individual Tax Identification Number (ITIN)
___ ___ ___ -___ ___ - ___ ___ ___ ___
OR
Federal Employer Identification Number
(FEIN)
___ ___ - ___ ___ ___ ___ ___ __
_ ___
Section 4 – Payee Residency Status (See instructions)

☐ CALIFORNIA RESIDENT – Qualified to do business in California or maintains a permanent place of business in California. ☐ CALIFORNIA NONRESIDENT – Payments to nonresidents for services may be subject to state income tax withholding. ☐No services
performed in California
☐Copy of Franchis
e Tax Board waiver of state withholding is attached.

Section 5 – Certification
I hereby certify under penalty of perjury that the information provided on this document is true and correct.

Should my residency status change, I will promptly notify the state agency below.

NAME OF AUTHORIZED PAYEE REPRESENTATIVE TITLE E-MAIL ADDRESS SIGN

ATURE DATE TELEP
HONE (include area code)
Section 6 – Paying State Agency
Please return completed form to:

STATE AGENCY/DEPARTMENT OFFICE UNIT /SECTION
MAIL

ING ADDRESS FAX TELE
PHONE (include area code)

CITY STAT E ZIP CODE E-MAI L ADDRESS
Print Form
Reset Form
DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D 916-603-7157
Ca. State Library
95814 [email protected]
Admin/Accounting
Sacramento
900 N Street
CA
In Process

STATE OF CALIFORNIA – DEPARTMENT OF FINANCE

PAYEE DATA RECORD
(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)

GENERAL INSTRUCTIONS
Type or print the information on the Payee Data Record, STD 204 form. Sign, date, and return to the state agency/department office address shown in Section 6.

Prompt return of this fully completed form will prevent delays when processing payments.

Information provided in this form will be used by California state agencies/departments to prepare Information Returns (Form1099).

NOTE: Completion of this form is optional for Government entities, i.e. federal, state, local, and special districts.

A completed Payee Data Record, STD 204 form, is required for all payees (non-governmental entities or individuals) entering into a transaction that may lead to a payment from the state. Each state agency requires a completed, signed, and dated STD 204 on file; therefore, it is possible for you to receive this form from multiple state agencies with which you do business.

Payees who do not wish to complete the STD 204 may elect not to do business with the state. If the payee does not complete the STD 204 and the required payee data is not otherwise provided, payment may be reduced for federal and state backup withholding. Amounts reported on Information Returns (Form 1099) are in accordance with the Internal Revenue Code (IRC) and the California Revenue and Taxation Code (R&TC).

Section 1 – Payee Information
Name – Enter the name that appears on the payee's federal tax return. The name provided shall be the tax liable party and is subjec t to IRS TIN matching (when applicable).
• Sole Proprietor/Individual/Revocable Trusts – enter the name shown on your federal tax return. • Single M
ember Limited Liability Companies (LLCs) that is disregarded as an entity separate from its owner for federal tax purposes - enter the name of the individual or business entity that is tax liable for the business in section 1. Enter the DBA, LLC name, trade, or fictitious name under Business Name. • Note: for the Stat
e of California tax purposes, a Single Member LLC is not disregarded from its owner, even if they may be disregarded at the Federal level. • Partnerships, Estates/Trusts, or Corporations – enter the entity name as shown on the entity’s federal tax return. The name provided in Section 1 must match to the TIN provided in section 3. Enter any DBA, trade, or fictitious business names under Business Name.

Business Name – Enter the business name, DBA name, trade or fictitious name, or disregarded LLC name.

Mailing Address – The mailing address is the address where the payee will receive information returns. Use form STD 205, Payee Data Record Supplement to provide a remittance address if different from the mailing address for information returns, or make subsequent changes to the remittance address.

Section 2 – Entity Type
If the Payee in Section 1 is a(n)… THEN Select the Box for… Individual ● Sole Proprietorship ● Grantor (Revocable Living) Trust disregarded for federal tax purposes Sole Proprietor/Individual Limited Liability Company (LLC) owned by an individual and is disregarded for federal tax purposes Single Member LLC-owned by an individual Partnerships ● Limited Liability Partnerships (LLP) ● and, LLC treated as a Partnership Partnerships Estate ● Trust (other than disregarded Grantor Trust) Estate or Trust Corporation that is medical in nature (e.g., medical and healthcare services, physician care, nursery care, dentistry, etc. ● LLC that is to be taxed like a Corporation and is medical in nature Corporation-Medical
Corporation that is legal in nature (e.g. , services of attorneys, arbitrators, notary publics involving legal or law related matters, etc.) ● LLC that is to be taxed like a Corporation and is legal in nature Corporation-Legal
Corporation that qualifies for an Exempt status, including 501(c) 3 and domestic non-profit corporations. Corporation-Exempt Corporation that does not meet the qualifications of any of the other corporation types listed above ● LLC that is to be taxed as a Corporation and does not meet any of the other corporation types listed above Corporation-All Other
Section 3 – Tax Identification Number
The State of California requires that all parties entering into business transactions that may lead to payment(s) from the st ate provide their Taxpayer Identification Number (TIN). The TIN is required by R&TC sections 18646 and 18661 to facilitate tax com pliance enforcement activities and preparation of Form 1099 and other information returns as required by the IRC section 6109(a) and R&TC section 18662 and its regulations.

Section 4 – Payee Residency Status
Are you a California resident or nonresident?
• A corporation will be defined as a "resident" if it has a permanent place of business in California or is qualified through the Secretary of State to do business in California.
• A partnership is considered a resident partnership if it has a permanent place of business in California. • An estate i
s a resident if the decedent was a California resident at time of death. • A trus
t is a resident if at least one trustee is a California resident. o For i
ndividuals and sole proprietors, the term "resident" includes every individual who is in California for other than a temporary or transitory purpose and any individual domiciled in California who is absent for a temporary or transitory purpose. Generally, an individual who comes to California for a purpose that will extend over a long or indefinite period will be considered a resident. However, an individual who comes to perform a particular contract of short duration will be considered a nonresident.

For i
nformation on Nonresident Withholding, contact the Franchise Tax Board at the numbers listed below:

Withhol
ding Services and Compliance Section: 1-888-792-4900 E-mail address: [email protected] For hea
ring impaired with TDD, call: 1-800-822-6268 Website: www.ftb.c a.gov
Section 5 – Certification
Provide the name, title, email address, signature, and telephone number of individual completing this form and date completed. In the event that a SSN or ITIN is provided, the individual identified as the tax liable party must certify the form. Note: the signee may differ from the tax liable party in this situation if the signe e can provide a power of attorney documented for the individual.

Section 6 – Paying State Agency
This section must be completed by the state agency/department requesting the STD 204.

Privacy Statement
Section 7(b) of the Privacy Act of 1974 (Public Law 93-579) requires that any federal, state, or local governmental agency, which requests an individual to disclose their social security account number, shall inform that individual whether that disclosure is mandatory or voluntary, by which statutory or other authority such number is solicited, and what uses will be made of it. It is mandatory to furnish the information requested. Federal law requires that payment for which the requested information is not provided is subject to federal backup withholding and state law imposes noncompliance penalties of up to $20,000. You have the right to access records containing your personal information, such as your SSN. To exercise that right, please contact the business services unit or the accounts payable unit of the state agency(ies) with which you transact that business.

All questions should be referred to the requesting state agency listed on the bottom front of this form.

DocuSign Envelope ID: 7DB0C899-EA1D-43CE-96C4-1DB6EB857F9D In Process
RESOLUTION NO. _________ (N.C.S.)

A RESOLUTION TO ACCEPT THE CALIFORNIA LIBRARY LITERACY SERVICES GRANT AWARD IN THE AMOUNT OF $47,385 IN SUPPORT OF ADULT ESL LITERACY, AND

AUTHORIZE RECEIPT OF FUNDS
WHEREAS, the California Library Literacy Services granted funding in the amount of $47,385 in support of Adult ESL literacy programs for Salinas Public Library; and

WHEREAS, this grant will establish the Library’s ESL literacy programs and provide greater learning opportunity that matches the needs of our community; and

WHEREAS, the Library and Community Services Director or their designee is hereby authorized to take whatever additional action may be necessary to effectuate the intent of this resolution.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorize the receipt of Adult ESL Literacy funds for this grant in the amount of $47,385 and authorizes the establishment of the CLLS – Adult ESL Literacy fund appropriation totaling $47,385 and corresponding revenue budget with no matching funds required.

PASSED AND APPROVED this 12th day of September, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
____________________________________
Kimbley Craig, Mayor

ATTEST:
______________________________
Patricia M. Barajas, City Clerk

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-550, Version: 1
Amendment to Professional Services Agreement with MV Cheng & Associates, Inc.

Approve a Resolution authorizing the City Manager to execute an amendment to a professional services agreement with MV Cheng & Associates, Inc. (“MV Cheng”) for accounting, financial reporting, and other finance-related services for an additional amount of $50,000; and approving payment of $19,681.25 to MV Cheng for the cost of services previously provided to the City during Fiscal Year 2022-23.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: SEPTEMBER 12, 2023
DEPARTMENT: FINANCE
FROM: JIM PIA, ACTING FINANCE DIRECTOR
BY: NICK LUCIANO, CONFIDENTIAL OFFICE TECHNICIAN TITLE: AMENDMENT TO PROFESSSIONAL SERVICES AGREEMENT
WITH MV CHENG & ASSOCIATES, INC.

RECOMMENDED MOTION:

Staff recommends the City Council approve a resolution:

1) Authorizing the City Manager to execute a n amendment to a professional services agreement with MV Cheng & Associates, Inc. (“MV Cheng”) for accounting, financi al reporting, and other finance -related services for an additional amount of fifty thousand dollars ($50,000); and

2) approving payment of $19,681.25 to MV Cheng for the cost of services previously provided to the City during Fiscal Year 22-23.

BACKGROUND:

Several positions have been vacant in the Department of Finance over the past two years, a nd, 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 that the Departmen t 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 fi nancial statements, and to assist in training staff. To acquire the resources needed, the City entered into an agreement with MV Cheng on April 12, 2023. 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 nineteen thousand six hundred eighty -one dollars and twenty-five cents ($119,681.25). Since the total cost exceeds the contract l imit and the City Manager’s authority by nineteen thousand six hundred eighty -one dollars and twenty -five cents ($19,681.25), Council approval of the additional amount is required. In addition, approval of an Page | 2
amendment adding fifty-thousand dollars ($50,000) to the existing two-hundred thousand dollar ($200,000) agreement that commenced on July 1, 2023 is requested, so the services may continue to be received until Finance’s senior staff positions have been filled.

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 Counc il 2022 -2025 Strategic Goal of Effective Government.

FISCAL AND SUSTAINABILILTY 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:

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 AMENDMENT TO 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 completing these tasks; 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 April 12, 2023, 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 nineteen thousand six hundred eighty-one dollars and tw enty-five cents ($19,681.25); 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 I T RESOLVED that the Salinas City Council approves payment of nineteen thousand six hundred eighty-one dollars and twenty-five cents ($19,681.25) to MV Cheng & Associates, Inc. for the cost of services previously provided to the City during Fiscal Year 22-23; and

BE IT FURTHER RESOLV ED that the Salinas City Council authorizes the City Manager to execute a n amendment to 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 an amount of fifty thousand dollars ($50,000).

PASSED AND APPROVED this 12th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:
2 ABSTAIN:

APPROVED:

______________________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-551, Version: 1
2024 City Council Meeting Calendar
Approve the 2024 City Council Meeting Calendar.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: SEPTEMBER 12, 2023
DEPARTMENT: ADMINISTRATION
FROM: STEVEN S. CARRIGAN, CITY MANAGER
BY: ALEXIS MEJIA, ASSISTANT CITY CLERK
TITLE: 2024 CITY COUNCIL MEETING CALENDAR

RECOMMENDED MOTION:

A motion to approve the City Council meeting calendar for 2024.

RECOMMENDATION:

Staff recommends that the City Council approve the 2024 City Council meeting calendar to assist with the scheduling of City Council meetings.

BACKGROUND:

The Municipal Code states that City Council meetings will be held on Tuesdays [City Code section 2-01.01]. The proposed schedule for 2024 staggers meetings to allow adequate time for report preparation and review. As in past years, the calendar includes breaks for holidays, vacations, and conferences. Meetings would not be held on the Tuesdays that have been outlined on the attached draft calendar. This year, we added a special City Council meeting to take place on a Wednesday in December to Administer the Oath of Office following the approval of the 2024 Canvass of Election.

CEQA CONSIDERATION:

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

STRATEGIC PLAN INITIATIVE:

The City Council calendar supports the Council Goal of “Operational Efficiencies”.

DEPARTMENTAL COORDINATION:

Page | 2
The City Clerk’s Office is responsible for recommending a meeting calendar that supports all departments with direction from the City Manager.

FISCAL AND SUSTAINABILITY IMPACT:

No fiscal and sustainability impact.

ATTACHMENTS:

Salinas City Council 2024 Meeting Calendar
2024 Conference Schedule

The City of Salinas will not meet on: Study Session:

January 2, 16, 30 July 2, 9, 16, 23, 30 – SUMMER RECESS May 21 - BUDGET February 13, 27 August 13, 27
March 26 September 3, 17 Special Council Meeting:

April 2, 16, 30 October 1, 15, 29 December 4 – ADMINISTRATION OF OATH OF OFFICE May 28 November 5, 26
June 4, 25 December 10, 17, 24, 21 – HOLIDAY RECESS

2024 COUNCIL MEETING CALENDAR
January

S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31

February

S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29

March

S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 April

S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30

May

S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31

June

S M T W T F S
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 July

S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31

August

S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

September

S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

October

S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

November

S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

December

S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31

2024 Conference Schedule

LEAGUE OF CAL CITIES
New Mayor and Council Members: January 24-26
City Managers Conference: February 7-9
City Attorneys Spring Conference: May 8-10
City Clerks New Law and Elections Seminar: December

CITY CLERKS ASSOCIATION OF CALIFORNIA
City Clerks Annual Conference: April 3-5

INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION
Annual Conference: September 21-25

NATIONAL LEAGUE OF CITIES
Congressional City Conference: March 11-13
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-561, Version: 1
United States Postal Service Building (USPS) - Office Space Lease Approve a Resolution approving an Office Space Lease Agreement between the City of Salinas and the USPS, for office space on the first floor of the Post Office building located at 100 W. Alisal Street, Salinas, California.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: SEPTEMBER 12, 2023
DEPARTMENT: ADMINISTRATION
FROM: STEVEN S. CARRIGAN, CITY MANAGER
BY: JIM PIA, ACTING FINANCE DIRECTOR TITLE: UNITED STATES POSTAL SERVICE (USPS) BUILDING – LEASE

RECOMMENDED MOTION:

A motion to approve a Resolution approving the City of Salinas lease agreement with the USPS for office space on the first floor Post Office Building located at 100 W . Alisal Street, Salinas, California.

RECOMMENDATION:

Staff recommends that City Council a pprove the attached Lease Agreement between the City of Salinas, as Lessee, and the U.S. Postal Service, as Lessor, for office space within the Post Office Building located at 100 W. Alisal Street, for use as administrative office space for various City of Salinas Department functions.

DISCUSSION:

Under the Salinas Recovery Plan of the American Rescue Plan Act (ARPA), the City Council allocated approximately $11.5 million for Public Facilities, including just over $5 million to necessary adaptations to City Hall. Council then approved a Roof repair to the City Hall building on April 4, 2023. The significant work on the project began in mid -August, following the move of nearly 30 staff members and all of the furnishings of the Lincoln Street first floor side of the building. The displacement of staff and Council offices is affecting multiple city departments who require additional space.

The City Manager’s Office, including the City Clerk, reviewed possible options, and worked with the USPS to identif y space that could work for the City. The City negotiated the attached Lease and terms that would work for our needs.

Page | 2
CEQA CONSIDERATION:

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

DEPARTMENTAL COORDINATION:

Finance, Public Works, Legal, Human Resources and Administration have worked together to find workable workstations for employees. This additional space w as discussed by the affected Departments.

FISCAL AND SUSTAINABILITY IMPACT:

Costs associated with the minimum two -year period include total rent of $60,887.64 with renewal options as necessary. These costs will be assigned to the ARPA City Hall Project. (3911.50.8170)
Attachments
Lease attachments

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

A RESOLUTION APPROVING FACILITY LEASE AGREEMENT BETWEEN CITY

OF SALINAS AND THE UNITED STATES POSTAL SERVICE, FOR OFFICE SPACE LOCATED AT 100 WEST ALISAL ST.

BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the lease agreement between the City of Salinas and the United States Postal Service is approved and the Council hereby appoints the City Manager or designee as our authorized representative to execute the lease and documents for office space located at 100 West Alisal Street.

PASSED AND APPROVED this 12th day of September 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

______________________________
Kimbley Craig, Mayor

ATTEST:

_______________________________
Patricia M. Barajas, City Clerk

CERTIFICATE OF COVERAGE

PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF EVIDENCE ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR

NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE MEMORANDUM(S) OF COVERAGE BELOW.

THIS CERTIFICATE OF COVERAGE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE

ISSUING COVERAGE PROVIDER, AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: IF THE CERTIFICATE HOLDER IS AN ADDITIONAL COVERED PARTY, THE MEMORANDUM OF COVERAGE MUST BE ENDORSED. A STATEMENT ON THIS CERTIFICATE

DOES NOT CONFER RIGHTS TO THE CERTIFICATE HOLDER IN LIEU OF SUCH ENDORSEMENT(S).

IMPORTANT: IF SUBROGATION IS WAIVED, SUBJECT TO THE TERMS AND CONDITIONS OF THE MEMORANDUM(S) OF COVERAGE AN ENDORSEMENT MAY BE REQUIRED. A STATEMENT ON

THE CERTIFICATE DOES NOT CONFER RIGHTS TO THE CERTIFICATE HOLDER IN LIEU OF SUCH ENDORSEMENT(S).

NAMED COVERED PARTY

PROGRAM AFFORDING COVERAGE
A:

B:

C:

COVERAGES

THIS IS TO CERTIFY THAT THE COVERAGE IS AFFORDED TO THE ABOVE NAMED MEMBER, AS PROVIDED BY THE MEMORANDUM(S) OF COVERAGE, FOR THE PERIOD SHOWN BELOW, NOT WITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE COVERAGE AFFORDED BY THE PROGRAM DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDITIONS OF SUCH MEMORANDUM(S) OF COVERAGE. THE FOLLOWING COVERAGE IS IN EFFECT.

JPA

LTR TYPE OF COVERAGE MEMORANDUM NUMBER COVERAGE EFFECTIVE

DATE (MM/DD/YY)

COVERAGE EXPIRATION

DATE (MM/DD/YY) LIMITS
GENERAL LIABILITY EACH OCCURRENCE $
COMMERCIAL GENERAL LIABILITY FIRE DAMAGE (Any one fire) $ CLAIMS MADE OCCUR MED EXPENSE (Any one person) $
PERSONAL & ADV INJURY $
GENERAL AGGREGATE $
GEN’L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ MEMOR-

ANDUM PROJECT LOC

AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT
(Ea accident)
$
ANY AUTO $

ALL OWNED AUTOS

SCHEDULED AUTOS

HIRED AUTOS

NON-OWNED AUTOS
WORKERS’ COMPENSATION AND

EMPLOYERS LIABILITY

ANY PROPRIETOR/PARTNER/

EXECUTIVE/OFFICER/MEMBER
EXCLUDED?

IF YES, DESCRIBED UNDER SPECIAL

PROVISION BELOW
WC

STATUTORY
LIMITS
OTHER
E.L. EACH ACCIDENT $
E.L. DISEASE – EA EMPLOYEE $
E.L. DISEASE – POLICY LIMIT $
OTHER
OTHER

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL/PROVISIONS

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED MEMORANDUM(S) OF COVERAGE

BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE

DELIVERED IN ACCORDANCE WITH THE MEMORANDUM(S) OF COVERAGE PROVISIONS.

AUTHORIZED REPRESENTATIVE

DATE (MM/DD/YYYY)
9/1/2023
Alliant Insurance Services, Inc.
560 Mission Street, 6th Floor
San Francisco CA 94105
City of Salinas
200 Lincoln Avenue
Salinas CA 93901
ACCEL
A
Public Entity Liability
ACC2324SAL119
7/1/2023
7/1/2024
$1,000,000
$2,000,000
$1,000,000
Per Occ
Aggregate
S.I.R.

If required by written contract with the Named Covered Party, United States Postal Service is covered as Additional Covered Party as respects the Outlease Agreement No. RMH 6.7.19 for lease of premises, located at Salinas Steinbeck Station, 100 W Alisal St, Salinas CA 93901-9998. Term of Agreement: October 1, 2023 - September 30, 2025.

Written notice must be provided to the United States Postal Service within thirty (30) days of the effective date of any reduction in coverage under, or termination or cancellation of, any of the policies described herein.

Subject to policy terms, conditions and exclusions.

United States Postal Service
475 L'Enfant Plaza, SW, Room 6670
Washington DC 20260-1862
A Joint Powers Authority

ACCEL
Authority for California Cities Excess Liability
c/o Alliant Insurance Services
C
orporation Insurance License No. 0C36861
560 Mission Street, 6th Floor, San Francisco, CA 94105
www.accelpool.org

AUTHORITY FOR CALIFORNIA CITIES EXCESS LIABILITY (ACCEL) A

JOINT POWERS AUTHORITY

EXCESS LIABILITY COVERAGE

ADDITIONAL COVERED PARTY ENDORSEMENT

It is understood and agreed that in accordance with Section III. WHO IS A COVERED PARTY paragraph D. that th
e following person or organization named below is included as an additional covered party for Bodily Injury and Property Damage, but only with respect to facilities or personal property owned by such person or organization and used by the Member Agency or for liability arising out of operations performed by or on behalf of the Member Agency for such person or organization so designated.

Additional Covered Party

Limit of Liability

Description of Activity or Location of Facilities Used

If required by written contract with the Named Covered Party, United States Postal Service is covered as Additional Covered Party as respects the Outlease Agreement No. RMH 6.7.19 for lease of premises, located at Salinas Steinbeck Station, 100 W Alisal St, Salinas CA 93901-9998.

Term of Agreement: October 1, 2023 - September 30, 2025.

Written notice must be provided to the United States Postal Service within thirty (30) days of the effective date of any reduction in coverage under, or termination or cancellation of, any of the policies described herein.

Subject to policy terms, conditions and exclusions.

Notwithstanding any requirement, term or condition of any contract or agreement to which this coverage may apply, th
e coverage afforded an additional covered party shall be subject to all the terms, exclusions and conditions of this Memorandum of Excess Liability Coverage (07/23) as otherwise applicable.

This endorsement is part of the Memorandum of Excess Liability Coverage (07/23) and is effective on the date shown below.

All other terms and conditions remain unchanged.

Policy Period: July 1, 2023 to July 1, 2024

Member Agency: City of Salinas

Endorsement No.: 2324-SAL-046

Issued to: United States Postal Service
475 L'Enfant Plaza, SW, Room 6670
Washington DC 20260-1862

Date Issued: 9/1/2023

Authorized Representative for ACCEL
Alliant Insurance Services, Inc.

United States Postal Service $ 1,000,000 occ
$
2,000,000
aggregate

Outlease Agreement
RMH 6.7.19

Facility Name/Location Finance/Sublocation No. Project Number:

Salinas Steinbeck Station 056702-G01
100 W Alisal St Frnt
Salinas, CA 93901-9998

THIS OUTLEASE AGREEMENT (“Outlease”), is entered into by and between the UNITED STATES POSTAL SERVICE, hereinafter called Lessor, and City of Salinas, hereinafter called the Lessee, whose address is 200 Lincoln Avenue, Salinas, CA 93901, to use and occupy the property hereinafter described under the terms and subject to the conditions contained herein.

1. Premises: In consideration of the rents, covenants and agreements hereinafter on the part of Lessee to pay, keep, and perform, t he Lessor does demise and lease to the Lessee and Lessee hereby leases from Lessor , the following described premises (the "Premises"): The Premises are located in a building (the "Building") having a municipal address of 100 W Alisal St, Salinas CA 93901-9998. The Premises are located on the first floor, and the approximate location as described in Exhibit "A" attached hereto and incorporated herein. The parties agree that the rentable area of the Premises is approximately 1,428 square feet.

2. Outlease Term: T he fixed term of this Outlease shall begin on October 1, 2023 (“Outlease Commencement Date”), and end on September 30, 2025, unless terminated prior thereto pursuant to the terms hereof (hereinafter referred to as the “Outlease Term”).

3. Rental Ra te: Beginning on the Outlease Commencement Date and for each calendar month, Lessee shall pay the Lessor rent (“Rent”), as set out in the schedule below, which shall be due and payable on a monthly basis in advance, without demand or set-off, in the amount of:
3a.

Months Monthly Rent Annual Rent
10/01/2023 – 09/30/2024 $2,500.00 $30,000.00
10/01/2024 – 09/30/2025 $2,573.97 $30,887.64
3b.

Renewal Monthly Rent Annual Rent
10/01/2025 – 09/30/2026 $2,651.19 $31,814.28
10/01/2026 – 09/30/2027 $2,730.72 $32,768.64
10/01/2027 – 09/30/2028 $2,812.65 $33,751.80

A security deposit of $5,000.00 is due in advance of the Outlease Commencement Date (“Security Deposit”) and must be made payable to the “Disbursing Officer, USPS” and submitted to the Contracting Officer along with signed copies of this Outlease. The Lessor shall hold the Security Deposit until the end of the Outlease Term and shall release the same after the Contracting Officer is satisfied in its reasonable discretion that the Lessee is not in default under this Outlease and has restored the Premises in accordance with Sections 9 and 11.

Outlease Agreement
RMH 6.7.19

All payments shall be made payable to the “Disbursing Officer, USPS”, and shall contain the following identification number: 056702-G01.

All Rent payments are due and payable on the 1 st of each month (“Rent Due Date”) in accordance with the above schedule and should be delivered to the Accounting Service Center, US Postal Service, Disbursing Office, P.O. Box 21888, Eagan MN 55121-0888. If Lessee fails to pay the Rent or any other payment due to Lessor within 10 calendar days after the Rent Due Date, then (without limiting Lessor’s rights and remedies including without limitation Section 20 below) Lessee shall pay Lessor a late fee of ten percent (10%) of th e amount of such payment for each and every instance during the Outlease Term and any Renewal Term, if any, that Rent is not paid on the Rent Due Date.

4. Renewal Option(s): The Outlease shall automatically renew for three (3) – one (1) year renewal term(s) (“Renewal Terms”), subject to the underlying Outlease Agreement, unless Lessee provides Lessor written notice, no later than sixty (60) days prior to the end of the then- current term, of Lessee’s intent not to renew the next term. The Annual rental rates for the Renewal Term(s) are as stated above in 3b.

5. Termination: Lessor has the right to terminate and reclaim the Premises at no cost or liability to Lessor by providing Lessee 30 days’ written notice. Such termination shall become effective on the date set forth in such notice.

6. Use: Lessee shall use the Premises exclusively for: Administrative Office Use for City of Salinas. Lessee shall use reasonable care in the occupation and use of the Premises and shall not interfere with Lessor’s operations. Lessee, Lessee’s agents, employees, invitees and visitors may use the Premises only for lawful purposes consistent with the requirements of applicable laws, codes and regulations, and shall comply fully with the Rules and Regulations Governing Conduct on Postal Property, 39 C.F.R., Part 232, promulgated by Lessor, attached hereto and incorporated herein as Exhibit C (“Lessor Rules”) which may be revised from time to time. Lessee agrees not to use the Premises in any way which, in the reasonable judgment of the Lessor, poses a hazard to the Lessor, or other tenants or occupants in the Building, the general public, the Premises or the Building in part or whole. Lessee will not use or occupy the Premises for any disorderly, unlawful or extra -hazardous purposes, or for any purpose that will constitute waste, nuisance or unreasonable annoyance to Lessor or other tenants or occupants of the Building or the general public, or for any purpose prohibited by Lessor’s Rules.

7. Inspection: L essee has inspected and kno ws the condition of the Premises and agrees to accept same in its ‘as is’ condition including wear and tear thereafter, with all faults, including defects seen and unseen and all conditions natural and artificial and including environmental conditions , without any representation of any kind, express or implied. Lessee accepts all responsibility to inspect the Premises for patent and latent defects and in entering into this Outlease, Lessee has not been induced by , and has not relied upon, any representations, warranties, or statements, whether express or implied by Lessor, or any agent, employee, or representative of Lessor that are not expressly set forth herein. Lessee’s decision to lease the Premises is based solely upon lessee’s own inspection, examination and analysis of the Premises. It is further understood that Lessor shall have no liability to Lessee for the condition of the Premises and Lessor leases the Premises to Lessee without any obligation on the part of Lessor to make any additions, improvements or alterations thereto.

8. Indemnification: Lessor shall not be responsible for damages to property or injuries to persons which may arise from or be incident to the use and occupation of the leased Premises, nor for damages to the property or injuries to the person of Lessee or of others who may be on said Premises at Lessee’s invitation. Lessee shall indemnify, release and hold Lessor harmless from liability for any and all claims for such damages or injuries to the property, the Premises, or to any persons.

9. Repairs, Alterations and Improvements: Lessee shall not make any additions, improvements, repairs, or alterations to the Premises without the prior written consent of Lessor in each and every instance. If this provision is violated, Lessee is liable for the cost of removal and restoration, plus applicable administrative cost. In the event the Lessor consents to the Lessee making any additions, improvements, repairs, or alterations to the Premises, Lessee shall remain liable for the cost of removal and restoration in accordance with Section 11 below, plus applicable administrative cost.

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Lessee acknowledges that the building is historic and that Lessor is thus subject to certain requirements under the National Historical Preservation Act (“NHPA”) and approval of the State Historic Preservation Office (“SHPO).

Lessor’s consent, if granted, for any repairs, alterations or improvements under this Section 9 will be conditioned upon Lessor’s ability to satisfactorily comply with various requirements of the NHPA and its implementing regulations, including, without limitation, completion of the process under Section 106 of the regulations implementing the NHPA, which compliance shall be at the sole cost and expense of the Lessee. Such compliance and resulting restrictions, if any, on repairs and/or alterations or improvements, shall not be deemed to be unreasonable withholding, conditioning or delay of consent.

10. Maintenance: L
essee shall at its sole cost and expense, maintain in good repair and tenantable condition the Premises which shall include but is not limited to : 1) interior window coverings; 2) walls; 3) floors, floor tiles, and coverings; 4) lights, bulbs, lighting, fixtures ; 5) telecommunication services and data services; and 6) Lessee’s alterations and Improvements, if any. Lessee shall also be responsible for cosmetic repairs including but not limited to repair and replacement of the carpet, wall and window coverings and painting in the Premises. In the event Lessee fails to maintain the Premises, the Lessor may engage in maintenance and repair of the Premises at Lessee’s expense.

Lessee shall reimburse the Postal Service for all such costs of maintenance and repair plus applicable administrative costs within ten (10) business days of a request therefor from the Lessor.

Lessor shall, except as otherwise specified herein and except for damages resulting from the act or o missions or the negligence of the Lessee, its employees, agents, contractors, licensees, or invitees, maintain in good r epair and tenantable condition the Building shell elements which include: the foundation, roof, structure, and base building systems that service the Premises which include the heating, cooling and ventilation f or the building (“HVAC”), electrical, plumbing and life safety systems for the Building, and any and all equipment, fixtures, and appurtenances, whether severable or nonseverable, furnished by the Lessor under this Outlease.

Janitorial: Lessee is responsible for janitorial services which includes trash removal within the Premises at Lessee’s sole cost and expense.

Snow removal: Lessor is responsible for snow and ice removal from sidewalks and entranceways and if parking is part of the Premises, from parking lots, driveways and drive aisles.

11. Surrender and Restoration:
a. Lessee assumes all responsibility and liability to restore the Premises. Upon the expiration, or early termination of this Outlease, Lessee shall at its sole costs and expense (i) vacate the Premises, (ii) remove its personal property therefrom, (iii) yield and place Lessor in peaceful possession of the Premises, free and clear of any liens, claims or encumbrances caused by Lessee and (iv) restore t he Premises to “broom clean” condition and to as good as a condition that the Premises existed at the commencement of this Outlease, including, without limitation, removal of any alterations, Improvements or additions Lessee made to the Premises which the Lessor requests Lessee to remove, ordinary wear and tear and damage by the elements excepted. b. In the event Lessee fails to remove its personal property and such alterations, Improvements or addition s as may be required to be removed, and resto re the Premises to the aforesaid condition stated in this Section 11a. by the expiration or earlier termination of the Term or Renewal Term, (i) then upon Lessor notice to Lessee, such failure shall constitute Lessee’s abandonment of all property (personal or otherwise) and items in the Premises, and Lessor may restore the Premises which may include removal of such items and disposal of the same in any manner Lessor deems appropriate, include through sale by such means and on such terms as Lessor determines appropriate, and without further notice and without any liability or obligation to Lessor; and (ii) Lessee shall reimburse Lessor for all costs of such removal, storage, disposal and restoration of the Premises plus applicable administrative costs, upon demand. If Lessee shall fail to so vacate and surrender the Premises to Lessor as aforesaid on or before the expiration of the Outlease Term or any earlier termination date, in addition to any and all remedies that Lessor may have at law or at equity, Lessee shall be deemed to be a holdover tenant.

12. Sublease and Assignment:

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Lessee shall have no right to assign or sublease this Outlease. Lessee shall neither transfer, or assign this Outlease or any of its rights hereunder, nor sublet the Premises or any part thereof or any property thereon nor grant any interest, privilege or license whatsoever in connection with this Outlease. Any transfer, assignment, or sublease in violation of this clause shall constitute an Event of Default under Section 20.

13. Taxes and Other Reimbursable Charges: In the event that any tax which shall include but is not limited to a state or local tax or sales tax, is imposed upon the occupancy, use, possession, or leasehold interest of or in the real property herein leased, the obligation for the payment of the tax will be wholly that of the Lessee. Lessee shall pay the same when due without offset or deduction to payments due to the Lessor. In addition, the taxing authority shall provide evidence of such payment to Lessor.

14. Insurance:
a. If the Premises or any part of the Premises is damaged by fire or other casualty resulting from any act or negligence of Lessee or any of Lessee's agents, contractors, invitees, licensees, or employees, rent shall not be diminished or abated while such dam ages are under repair, and Lessee shall be responsible for the costs of repair not covered by insurance.
b. Lessee shall obtain and furnish to Lessor, at no cost to the Lessor, not later than the Outlease Commencement Date, a commercial general liability insurance policy naming Lessor as an additional named insured. Lessee’s insurance coverage must meet the following minimum requirements:
1) Commercial General Liability Limits
a. Each Occurrence: $1,000,000
b. Damage to Rented Premises: $250,000 (each occurrence) c. Medical Expense: N/A
d. Personal & Advertising Injury: N/A
e. General Aggregate: $2,000,000
The certificate must include the following language under the “Description of Operations” section at the bottom of the certificate: “Written notice must be provided to the United States Postal Service within thirty (30) days of the effective date of any reduction in coverage under, or termination or cancellation of, any of the policies described herein.”
c. Lessee shall maintain insurance throughout the Outlease Term and any renewal thereof and furnish a copy of the Certificate to the Lessor upon request and on no less than an annual basis to the Real Estate Specialist at the following address: USPS, Attn: Sean M. Ford, 475 L’Enfant Plaza, SW, Room 6670, Washington, DC 20260-1862. Failure to provide and maintain the aforementioned insurance policy, with the required endorsement, in accordance with this section may result in termination of this Outlease at the option of the Lessor.
d. In all cases wherein Federal, state or local governmental bodies are asserting they are self -insured, Lessor at its option may approve in writing a waiver of the Insurance requirements in this Section 14. Lessee shall provide Lessor with documentation that is acceptable to Lessor in its sole and absolute discretion of evidence of such self-insurance prior to Lessee’s occupancy to satisfy the obligations of this section 14.

15. Utilities: Except for telephone and/or other telecommunication services which includes, but is not limited to, internet and cable services which are Lessee’s responsibility, Lessor shall furnish Lessee with all utilities as presently installed in its as- is condition that serve the Premises. Lessor’s responsibility incl udes payment of the utility bills from the service providers. Utilities will include electricity, gas, water and sewer for the Premises.

16. Signs: Lessee is prohibited from placing or installing signage which includes but is not limited to Lessee’s name and location on the exterior of the Building.

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17. Entry: The Lessor reserves the right to enter the Premises at all reasonable hours to inspect it, show same or to make such repairs, additions or alterations as Lessor considers necessary. Exercise of any such right in accordance with the terms of this Section 17 shall not be considered a constructive eviction or a disturbance of Lessee's business or occupancy. Lessor shall provide Lessee with at least 24 hours prior notice of such entry, provided, however, that Lessor shall have the right to enter the Premises without prior notice in the event of an emergency.

18. Parking: Lessee shall have access to 0 reserved parking spaces.

19. Building Hours & Access: The Building’s normal hours of operation are from 7:30 AM to 5:00 PM, local time, Monday through Friday, with the exception of Federal holidays (“ Building’s Normal Operating Hours”). See Addendum.

The parties understand that from time to time and in emergency situations, the Lessor, at its own discretion, may be unable to allow or provide access to the Premises on a 24 hour a day, 7 day a week, 365 days per year basis, and may be unable to provide advance notice of such. In no event shall Lessor be liable to Lessee, its invitees, or other third parties for any damages or losses based on its failure to provide access to the Premises in the case of such emergency.

However, to the extent that Lessor is unable to provide uninterrupted access to the Lessee during its Building Normal Operating Hours, the Lessee may be entitled to a rent abatement that is proportionate to the amount of time during which its access is so interrupted, unless such interruption is due to fire or other casualty, Acts of God, acts of a public enemy, riot or insurrection, vandalism, or other similar events or due to the negligent act or omission of Lessee, its agents, contractors, invitees, licensees, or employees.

20. Default by Lessee: The occurrence of any one or more of the following events shall constitute a default and breach of this Outlease by Lessee (hereinafter “Event of “Default”): (i) Lessee fails to make any payment of Rent on the Rent Due Date or any other payment required to be made by the Lessee under this Outlease, when due, and such failure shall continue for a period of ten (10) days after Lessor has given Lessee written notice of such failure; or (ii) Lessee abandons the Premises for thirty days or more, or fails to observe or perform any term, covenant, condition or the provisions of this Outlease required to be observed or performed by Lessee, where such failure is not cured to the full satisfaction of the Lessor within 30 days after written notice by the Lessor to Lessee of said failure Upon such Event of Default by Lessee, the Lessor, at its option, without further notice or demand, shall have the right to any one or more of the following remedies in addition to all other rights and remedies provided at law or in equity or elsewhere herein: (a) declare this Outlease ended and terminated and may re-enter the Premises and remove all persons or things therefrom, and the Lessee hereby expressly waives all service of any demand or notice prescribed by any law or statute whatsoever; and (b) Lessor may enter the Premises and eject Lessee, forcibly or otherwise, without regard to any law or statute to the contrary, dispose of Lessee’s personal property in the Premises as deemed in the best interest of the Lessor, and Lessee shall be liable for such damages as Lessor may incur.

21. Quiet Possession: Lessor covenants and warrants that upon performance by Lessee of its obligations hereunder, Lessor will keep Lessee in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Premises during the term of this Outlease.

22. Recording: This Outlease shall not be recorded.

23. Notice: Any notice, or advice to or demand given hereunder shall be in writing, and shall be sent by certifie d mail with return receipt or express mail with tracking, provided, however, that electronic notice shall be permitted provided that such electronic notice is confirmed by return electronic mail acknowledgement from the recipient and is followed by notice given by one of the other methods listed above. Notice shall be deemed to have been given or made on the day when the notice is deposited in the mail by certified mail/return receipt requested or express mail with tracking or the date of the electronic submission to the following addresses or to such other address as either party may hereafter from time to time specify in writing for such purpose.

If to Lessee: City of Salinas
Attn: Jim Pia
200 Lincoln Avenue
Salinas, CA 93901

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If to Lessor: Sean Ford, Real Estate Specialist
475 L’Enfant Plaza, SW, Room 6670
Washington, DC 20260-1862

24. Compliance with Environmental Laws:
a. Definitions.
“Environmental Laws” mean all federal, state or local statutes, laws, ordinances, rules or regulations, relating to protection of human health or the environment, including but not limited to (i) all laws relating to the release of Hazardous Materials into the air, surface water, groundwater or land, or relating to the reporting, investigation or remediation of, licensing, manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials; (ii) all laws pertaining to the protection of the health and safety of employees; and (iii) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601 et seq.; the Hazardous Materials Transportation Act as amended 49 U.S.C. §1801 et seq.; the Resource Conservation and Recovery Act, as amended 42 U.S.C. §6901 et seq.; and the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1251 et seq.
“Hazardous Materials” mean (i) any toxic substance or hazardous waste, substance or related material, or any pollutant or contaminant that is or may hereafter be define d as or included in the definition of “hazardous substances,” “toxic substances,” “hazardous materials,” “hazardous waste” or words of similar import under any and all Environmental Laws; (ii) petroleum, radon gas, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, transformers or other equipment that contain dielectric fluid containing levels of polychlorinated biphenyls in excess of federal, state or local safety guidelines, whichever are more stringent; and (iii) any substance, gas material or chemical that is or may hereafter be defined as or included in the definition of “hazardous substances,” “toxic substances,” “hazardous materials,” “hazardous waste” or words of similar import under any Environmental Laws.

b. Lessee shall comply with Environmental Laws in the use and occupancy of the Premises. Lessee will not cause or permit the storage, use, generation, or disposition of any Hazardous Materials in, on, or about the Premises and the Building, by Lessee, its agents, employees, or contractors, except in such small amounts as are necessary to conduct Lessee’s normal business operations (e.g., cleaning products, inks and toners, and pest control products).

Lessee shall not permit the Premises to b e used or operated in any manner that may cause the Premises or the Building to be contaminated by any Hazardous Materials in violation of any Environmental Laws. Lessee will immediately advise the Lessor in writing of ( i) any and all enforcement, cleanup, remedial, removal, or other governmental or regulatory actions instituted, completed, or threatened pursuant to any Environmental Laws relating to any Hazardous Materials affecting the Premises; and ( ii) all claims made or threatened by any third party against Lessee, Lessor, or the Premises relating to damage, contribution, cost recovery, compensation, loss, or injury resulting from any Hazardous Materials on or about the Premises. Notwithstanding the foregoing, in the event any activity of Lessee involves storage on the Premises, shipping to or from the Premises or any use on the Premises of a material, chemical or agent that qualifies as a Hazardous Material under Environmental Laws, Lessee may request Lessor’s consent to permit use of such Hazardous Materials on the Premises, which is subject to Lessor’s written approval which Lessor may approve or deny in its sole and absolute discretion. If Lessor approves the use of Hazardous Materials, then Lessee shall comply with all Environmental Laws and shall provide the Contracting Officer with copies of all licenses, permits or authorizations for the use, shipment, storage or transport of the Hazardous Materials as well as copies of any citations or listing of infractions and subsequent corrections by the Lessee. Copies of any changes in any and all licenses or permits must be forwarded to the Contracting Officer. Where more than one environmental law applies, the more stringent shall apply. If any Environmental Laws require the filing of periodic reports by the Lessee, it shall be the obligation of Lessee under this Outlease to file a copy of any such periodic report(s) with the Lessor’s Contracting Officer at the same time such report(s) is filed with the federal, state or local government or its assignee. c. Lessor reserves the right to inspect the Premises at any reasonable time to ascertain if any Outlease violations occur. If any contamination, violation or hazardous condition, as reasonably determined by the Contracting

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Officer, occurs due to the handling, use, storage or transfer by Lessee of such Hazardous Materials, whether such contamination, violation or hazardous condition is discovered during the Outlease term or after expiration or termination thereof, Lessee shall be solely responsible for removal or remediation of the hazardous or toxic condition in accordance with Environmental Laws. Notwithstanding any other clause in this Section or in the Outlease, Lessee shall remove all of Lessee’s Hazardous Material s from the Premises at the expiration or termination of the Outlease and provide copies of all permits, notices and manifests required for such removal to Lessor. Lessee’s failure to comply wi th the provisions of this section shall be grounds for termination of this Outlease for default. Receipt by Lessor of notices, reports, or any other information or documentation required herein shall not impose any responsibility on Lessor to supervise the affairs of Lessee nor relieve Lessee of its responsibility to comply fully with all applicable laws and regulations. The rights and remedies of Lessor provided in this section are in addition to any other rights and remedies which may be available to Le ssor by law or under this Outlease. Lessee hereby indemnifies Lessor and its officers, agents, representatives, and employees from all claims, loss, damage, actions, causes of action, expense and/or liability, including the cost of defense, resulting from, brought for, or on account of any violation of this clause. This indemnity shall survive any termination or expiration of the Outlease Term or any Renewal Term.

25. Asbestos Containing Material (ACM):

For the purposes of this Section 25, “Asbestos-Containing Material” (ACM) means any material containing more than 1% asbestos as determined by using the method specified in 40 CFR Part 763, Subpart E, Appendix E. “Friable asbestos material” means any ACM that, when dry, can be crumbled, pulverized, or reduced to powder by hand pressure.

The Premises may, or may not, contain ACM. It is Lessee's responsibility to review the [Asbestos Survey] a copy of which Lessor has provided to Lessee. Lessee acknowledges receipt and review of the complete Asbestos Survey, as evidenced by the cover page and summary of the pages (the entire Asbestos Survey is not included due to its voluminous nature) in Exhibit B attached hereto and incorporated herein. Lessee understands and agrees that the Asbestos Survey is provide d for informational purposes only. Should Lessee contract for custodial services or any other services (including construction, repairs, etc.), Lessee shall notify its contractor of the existence of ACM, where applicable, and provide its contractor with a copy of any Asbestos Survey. Neither Lessee nor its contractor or any other party is entitled to rely on the accuracy of the Asbestos Survey.

In the event Lessee performs any alteration, repair or work within the Premises and Lessee subsequently discovers or identifies ACM in the Premises, Lessee shall provide written notice to the USPS Contracting Officer within 48 hours of discovery of the ACM. Lessee agrees at Lessee’s sole cost and expense to remove and/or abate any friable ACM and to coordinate all work with Lessor. Lessee further agrees to provide Lessor copies of all documents, including sampling, lab work, tests and test results tests related to the ACM and performance of the work.

Any renovation or alteration performed by Lessee impacting or potentially impacting ACM requires the prior written approval of the USPS Contracting Officer and in the event of such approval Lessee shall coordinate all work with the Lessor. In performance of any work that impacts or potentially impacts ACM, Lessee shall comply with all applicable local, state, and federal laws, as well as all USPS requirements, including USPS asbestos policies, plans, management instructions, and environmental policies (“Lessor Asbestos Requirements”). Lessee must keep complete records of all such activity and transfer them to Lessor at the termination of the Outlease.

Lessee agrees to require its contractor to act only in accordance with Lessor Asbestos Requirements. Should Lessee or any contractor providing services to or at the Premises have any questions or concerns regarding Lessor’s Asbestos Requirements, Lessee shall contact Lessor prior to undertaking any action at the Premises.

Lessee hereby indemnifies, releases, and holds harmless Lessor from any and all claims, losses, etc. in any way arising out of any work or activity performed related to this Section 25.

26. Compliance with Laws: Lessee shall, and shall ensure that its employe es, agents, affiliates, representatives and contractors, identify and fully comply with all laws, including, but not limited to, (i) federal, state, municipal and local laws, codes and regulations, (ii) the rules, orders, regulations and requirements of governmental departments and

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bureaus, and (iii) all codes, laws, ordinances and regulations of any public authority having jurisdiction over the Premises and pertaining to Lessee’s use, occupancy and condition of the Premises and all machinery, equipment and furnishings therein (hereinafter “Laws”). Lessee shall use due care in the occupation and use of the Premises. If any permits are required in order to allow Lessee to lawfully improve the Premises and to occupy and conduct its business in the Premises, then Lessee shall obtain and keep current such permits at Lessee's expense and promptly deliver a copy thereof to Lessor.

27. Holding Over: If Lessee occupies the Premises beyond the Outlease Term or any properly exercised Renewal Term, without Lessor's written consent ("Hold Over"), Lessee shall be deemed to occupy the Premises on a month to month basis, terminable by either party on thirty (30) days written notice to the other party and all of the terms and provisions of this Outlease shall be applicable during that period, except that Lessee shall pay Lessor a monthly rental rate equal to one hundred fifty percent (150%) of the monthly rent applicable hereunder at the expiration of the previous Outlease Term or applicable Renewal Term, prorated for the number of days of such holding over. If Lessee refuses to vacate after receiving a notice of termination as provided in this section, Lessee shall be deemed a Lessee at sufferance and Lessor may use self -help, or may institute a forcible detainer or similar action against Lessee or any other party in possession of the Premises, or pursue any other remedy available at law or in equity.

28. Governing Law: This Outlease shall be governed, construed and interpreted by, through and under federal law. In the event there is no applicable federal law, the laws of the State of California shall apply.

29. Final Agreement: This Outlease terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties.

30. No Waiver: The failure of Lessor to insist in any one or more i nstance upon performance of any of the terms, covenants, or conditions of this Outlease shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant, or condition. Lessee’s obligation with respect to such future performance shall continue in full force and effect.

31. Headings: The headings used in this Outlease are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Outlease.

32. Successors: The provisions of this Outlease shall extend to and be binding upon Lessor and Lessee and their respective legal representatives, successors and assigns.

33. Authority. Each party represents that it ha s caused this Outlease to be executed on its behalf as of the date writ ten below by a representative empowered to bind that party with respect to the undertakings and obligations contained herein.

34. General Conditions: This Outlease is subject to the General Conditions, attached hereto and incorporated herein as Exhibit D.

35. Counterparts. This Outlease may be executed in counterparts, which together shall constitute a single instrument.

The parties agree that if the signature(s) of either Lessor or the Lessee on this Outlease or any amendments, addendums, or other records associated with this Outlease is not an original but is a digitally encrypted signature, then such digitally encrypted signature shall be as enforceable, valid and binding as, and the legal equivalent to, an authentic original wet signature penned manually by its signatory.

Privacy Act Statement: Your information will be used to process your Outlease Agreement. Collection is authorized by 39 USC 401. Providing the information is voluntary, but if not provided, we may not process your request. We may only disclose your information as follows: in relevant legal proceedings; to law enforcement when the USPS or requesting agency becomes aware of a violation of law; to a congressional office at your request; to entities or individuals under contract with USPS; to entities authorized to perform audits; to labor organizations as required by law; to federal, state, local or foreign government agencies regarding personnel matters; to the Equal Employment Opportunity Commission; to the Merit Systems Protection Board or Office of Special Counsel; to the Department of the Treasury under the Treasury Offset Program computer matching to establish an identity; and to financial institutions or

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payees to facilitate or resolve issues with payment services. For more information regarding our privacy policies visit usps.com/privacy policy.

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ADDENDUM

Additional clauses for properties with a USPS presence and/or other Lessees:

• Tenant shall have access to the premises outside of Building’s Normal Operating Hours, with permission from Postmaster. Tenant will have a key to access premises as needed.

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EXECUTED BY LESSEE this _____ day of _________, _______.

FEDERAL / STATE / LOCAL

GOVERNMENT ENTITY

By executing this Outlease, Lessee certifies that Lessee is not a USPS employee or contract employee (or an immediate family member of either), or a business organization substantially owned or controlled by a USPS employee or contract employee (or an immediate family member of either).

Name of Gov’t entity: ___________________________; ___________ Gov’t entity

By: ________________________________ _____________________________________ Print Name & Title Signature

__________________________________ _____________________________________ Print Name & Title Signature

Lessee’s Address: _____________________
City: _______________________
State: ______________________
Zip + 4: ____________________
E-mail:________________________

Lessee’s Telephone Number(s): _______________ FAX: __________________________

Federal Tax Identification No.: ________________________

_________________________________________ _________________________________________ Witness Witness

d. Where the Lessee is a local, state, federal or governmental agency or entity (“Government Entity”), the Outlease must be accompanied by documentary evidence affirming the authority of the signatory, officer, agent, or agents, to execute the Outlease so to b ind the Government Entity, for which he or she (or they) purports to act. The usual evidence required to establish such authority is in the form of a Contracting Officer warrant, delegation of authority, or the equivalent of a corporate seal or resolution duly attested by a corporate secretary/managing members/managing partners. Such resolutions, when required, must contain the essential stipulations embodied in the Outlease. The names and official titles of the signatories or officers who are authorized to sign the Outlease must appear in the document.

Any notice to Lessee provided under this Outlease or under any law or regulation must be in writing and submitted to Lessee at the address specified above, or at an address that Lessee has otherwise appropriately directed in writing. Any notice to the Postal Service provided under this Outlease or under any law or regulation must be in writing and submitted to “Contracting Officer, U.S. Postal Service” at the address specified below, or at an address that the Postal Service has otherwise directed in writing.

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ACCEPTANCE BY THE UNITED STATES POSTAL SERVICE

Date: _______________

Letitia Russell ____________________________________ Contracting Officer Signature of Contracting Officer

Address of Contracting Officer
PO Box 27497,
Greensboro, NC 27498-1103

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Exhibit A

Suite 127, inclusive of Rooms 127A, B, C, D, E and F – Bathroom, consisting of approximately 1,428 square feet, in the Salinas Steinbeck Station Post Office
100 W Alisal Street, Salinas, CA 93901-9998

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Exhibit B

Asbestos

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Exhibit C

Rules and Regulations

A. APPLICABILITY
These rules and regulations apply to all real property under the charge and control of the Postal Service, to all Lessees, tenant agencies, and to all persons entering or on such property. These rules and regulations shall be posted and kept posted at a conspicuous place on all such property.

B. RECORDING PRESENCE
Except as otherwise ordered, properties must be closed to the public after normal business hours. Properties also may be closed to the public in emergency situations and at such times as may be necessary for the orderly conduct of business.

Admission to properties when such properties are closed to the public may be limited to authorized individuals who may be required to sign the register and display identification documents when requested by security force personnel or other authorized individuals.

C. GENERAL RESTRICTIONS

1. Preservation of Property. Improperly disposing of rubbish, spitting, creating any hazard to persons or things, throwing articles of any kind from a building, climbing upon the roof or any part of a building, or willfully destroying, damaging, or removing any property or any part thereof, is prohibited.

2. Conformity with Signs and Directions. All persons in and on the property shall comply with official signs of a prohibitory or directory nature, and with the directions of security force personnel or other authorized individuals.

3. Inspection. Purses, briefcases, and other containers brought into, while on, or being removed from the property are subject to inspection. However, items brought directly to a postal facility ’s customer mailing acceptance area and deposited in the mail are not subject to inspection, except as provided by section 274 of the Administrative Support Manual. A person arrested for violation of this section may be searched incident to that arrest.

D. SPECIFIC RESTRICTIONS

1. Disturbances. Disorderly conduct, or conduct which creates loud and unusual noise, or which obstructs the usual use of entrances, foyers, corridors, offices, elevators, stairways, and parking lots, or which otherwise tends to impede or disturb the public employees in the performance of their duties, or which otherwise impedes or disturbs the general public in transacting business or obtaining the services provided on property, is prohibited.

2. Gambling. Participating in games for money or other personal property, the operating of gambling devices, the conduct of a lottery or pool, or the selling or purchasing of lottery tickets, is prohibited on postal premises. This prohibition does not apply to the vending or exchange of state lottery tickets at vending facilities operated by licensed blind persons where such lotteries are authorized by state law.

3. Alcoholic Beverages and Drugs. A person under the influence of an alcoholic beverage or any drug that has been defined as a “controlled substance” may not enter postal property or operate a motor vehicle on postal property. The possession, sale, or use of any “controlled substance” (except when permitted by law) or the sale or use of any alcoholic beverage (except as authorized by the Postmaster General or designee) on postal premises is prohibited.

The term “controlled substance” is defined in section 802 of title 21 U.S.C.

4. Smoking and Sale of Tobacco Products in Vending Machines. a. Smoking (defined as having a lighted cigar, cigarette, pipe, or other smoking material) is prohibited in all postal buildings and office space, including public lobbies.
b. The sale of tobacco products in vending machines located in or around postal property is prohibited. The distribution of free samples of tobacco products in or around postal property is also prohibited. The term “tobacco product” means cigarettes, cigars, little cigars, pipe tobacco, smokeless tobacco, snuff, and chewing tobacco.

Outlease Agreement
RMH 6.7.19

5. Soliciting, Electioneering, Collecting Debts, Vending, and Advertising. Soliciting alms and contributions, campaigning for election to any public office, collecting private debts, commercial soliciting and vending, (including but not limited to, the vending of newspapers and other publications), the display or distribution of commercial advertising on postal premises, soliciting signatures on petitions, polls, or surveys (except as otherwise authorized by Postal Service regulations), and impeding ingress to or egress from post offices are prohibited. These prohibitions do not apply to:
a. Commercial or nonprofit activities performed under contract with the Postal Service or pursuant to the provisions of the Randolph-Sheppard Act;
b. Posting notices on bulletin boards as authorized in POSTAL OPERATIONS MANUAL 221.525; c. The solicitation of Postal Service and other federal military and civilian personnel for contributions by recognized agencies as authorized by the Manual on Fund Raising Within the Federal Service issued under Executive Order 10927 of March 13, 1961.

6. Leafleting, picketing, etc. Leafleting, distributing literature, picketing, and demonstrating by members of the public are prohibited in lobbies and other interior areas of postal buildings open to the public. Public assembly and public address, except when conducted or sponsored by the Postal Service, are also prohibited in lobbies and other interior areas of postal buildings open to the public

7. Voter registration. Voter registration may be conducted on postal premises only in full accordance with the requirements of 39 CFR 232.1(h)(4).

8. Placement of furniture, etc. Except as part of postal activities or activities associated with those permitted under section D.7 above, no tables, chairs, freestanding signs or posters, structures, or furniture of any type may be placed in postal lobbies or on postal walkways, steps, plazas, lawns or landscaped areas, driveways, parking lots, or other exterior spaces.

9. Depositing Literature. The depositing or posting of handbills, flyers, pamphlets, signs, posters, placards, or other literature except official postal and other governmental notices and announcements on the grounds, walks, driveways, parking and maneuvering area, exteriors of buildings and other structures, or on the floors, walls, stairs, racks, counters, desks, writing tables, window ledges, or furnishings, in interior public areas on postal premises is prohibited. This prohibition does not apply to:
a. Posting notices on bulletin boards as authorized in 221.525, POSTAL OPERATIONS MANUAL. b. Interior space assigned to tenancies for their exclusive use.

10. Photographs for News, Advertising, or Commercial Purposes.

Except as prohibited by official signs or the direc tions of security force personnel or other authorized personnel or a federal court order or rule, photographs for news purposes may be taken in entrances, lobbies, foyers, corridors, or auditoriums when used for public meeting. Other photographs may be taken only with the permission of the local postmaster or installation head.

11. Dogs and Other Animals. Dogs and other animals, except those used to assist persons with disabilities, must not be brought upon postal property for other than official purposes.

12. Vehicular and Pedestrian Traffic
a. Drivers of all vehicles in or on postal premises shall drive in a careful and safe manner at all times and shall comply with signals and directions of security force personnel, other authorized individuals, and all posted traffic signs. b. The blocking of entrances, driveways, walks, loading platforms, or fire hydrants is prohibited. c. Parking without authority, parking in unauthorized locations or in locations reserved for other persons, or continuously in excess of 18 hours without permission, or contrary to the direction of posted signs is prohibited.

The section may be supplemented by the postmaster or installation head from time to time by the issuance and posting of specific traffic directives as may be required. When so issued and posted, such directives shall have the same force and effect as if made a part thereof.

Outlease Agreement
RMH 6.7.19

13. Weapons and Explosives. No person while on postal property shall carry firearms, other dangerous or deadly weapons, or explosives, either openly or concealed, or store the same on postal property, except for official purposes.

E. NONDISCRIMINATION
There must be no discrimination by segregation or otherwise against any person or persons because of race, color, religion, national origin, sex, age (persons 40 years of age or older are protected), reprisal (discrimination against a person for having filed or for having participated in the processing of an EEO complaint_29 CFR 1613.261- 262), or physical or mental handicap, in furnishing, or by refusing to furnish to such person or persons the use of any facility of a public nature, including all services, privileges, accommodations, and activities provided on postal property.

F. PENALTIES AND OTHER LAW

1. Alleged violations of these rules and regulations are heard and the penalties prescribed herein are imposed, either in a Federal District Court or by a federal magistrate in accordance with applicable court rules. Questions regarding such rules should be directed to the regional counsel for the region involved.

2. To the extent applicable under 39 CFR Part 232, whoever shall be found guilty of violating the rules and regulations in this notice while on property under the charge and control of the Postal Service is subject to fine of not more than $50 or imprisonment of not more than 30 days or both. Nothing contained in these rules and regulations shall be construed to abrogate any other federal laws or regulations or any state or local laws and regulations applicable to any area in which the property is situated.

3. Members of the U.S. Postal Security Force shall exercise the powers of special policemen provided by 40 U.S.C. 318 and shall be responsible for enforcing the regulations in this notice in a manner that will protect Postal Service property.

Postal inspectors, Office of Inspector General Criminal Investigators, and other persons designated by the chief Postal Inspector may likewise enforce regulations in this notice.

Outlease Agreement
RMH 6.7.19

Exhibit D

General Conditions

1. Contingent Fees/Brokers
a. The Lessee warrants that no person or selling agency has been employed or retained to solicit or obtain this Outlease for a commission, percentage, brokerage, or contingent fee, except bona fide employees or bona fide, established commercial or selling agencies employed by the Lessee for the purpose of obtaining business. b. For licensed employees or established commercial brokerage agencies employed by the parties for the purpose of leasing space for a brokerage commission, each party agrees to pay its respective agent a commission in accordance with the respective agreement(s) between the respective party and its agent/broker. c. For breach or violation of this warranty, the Postal Service has the right to annul this contract without liability or to deduct from the contract price or otherwise recover the full amount of the commission, percentage, brokerage fee, or contingent fee.

2. Non-Discrimination: The Lessee agrees that they will not discriminate by segregation or otherwise against any person or persons because of race, color, religion, national origin, sex, age (persons 40 years of age or older are protected), reprisal (discrimination against a person for having filed or for having participated in the processing of an EEO complaint 29 CFR 1613.261-262), or physical or mental handicap, in furnishing, or by refusing to furnish to such person or persons the use of any facility of a public nature, including all services, privileges, accommodations, and activities provided herein.

3. Relocation: Lessee acknowledges that it acquires no right by virtue of execution of this Outlease to claim any benefits under Title 39, Code of Federal Regulations, Part 777 (Relocation Assistance and Real Property Acquisition Policies).

4. Gratuities or Gifts (Clause 1-5: March 2006)
a. The Postal Service may terminate this contract for default if, after notice and a hearing, the Postal Service Board of Contract Appeals determines that the Lessee or the Lessee’s agent or other representative:
i. Offered or gave a gratuity or gift (as defined in 5 CFR 2635) to an officer or employee of the Postal Service; and
ii. Intended by the gratuity or gift to obtain a contract or favorable treatment under a contract. b. The rights and remedies of the Postal Service provided in this clause are in addition to any other rights and remedies provided by law or under this contract.

5. Incorporation by Reference: In addition to the foregoing, the following clauses are incorporated in this contract by reference. The text of incorporated terms may be found in the Contract Clauses section of the Postal Service’s Supplying Principles and Practices manual, which is accessible on-line or upon request.

Clause 9-7, Equal Opportunity (March 2006)
1 Clause 9-13, Affirmative Action for Handicapped Workers (March 2006)2 Clause 9-14, Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (February 2010)3

1For contracts aggregating payments of $10,000 or more. 2For contracts aggregating payments of $10,000 or more. 3For contracts aggregating payments of $25,000 or more.

Facility Name:__________________________ Fin/Sub No._____________________ Address: ______________________________ City, ST, ZIP:___________________

Effective March 1, 2014 (Revision 2) Appendix A_Conflict of Interest Certification Real Estate Conflict of Interest Certification
To avoid actual or apparent conflicts of interest, the United States Postal Service (“Postal Service”) requires the following certification from you as a potential Tenant/Landlord/Licensor/Supplier/Contractor to the Postal Service. Please check all that apply in item A below. Further, please understand that the Postal Service will be relying on the accuracy of the statements made by you in this certification in determining whether to proceed with any possible transaction with you.

I, _____________________________________ hereby certify to the Postal Service as follows:
[PRINT: name of potential Tenant/Landlord/ Licensor/Supplier/Contractor]

A. (Check all that apply) I am:
(i) _______A Postal Service employee;
(ii) ______The spouse of a Postal Service employee;
(iii) ______A family member of a Postal Service employee; (Relationship) _________________ (iv) ______An individual residing in the same household as a Postal Service employee ; (v) ______I am one of the individuals listed in (i) through (iv) above AND a controlling shareholder or owner of a business organization leasing or licensing space or intending to lease or license space to/from the Postal Service; OR
(vi) _____ None of the above.

B. (Complete as applicable):
i. I have the following job with the Postal Service( Title) ___________________________ (Location)__________________________________
ii. My Spouse who works for the Postal Service holds the following job:
(Title) ___________________________ ( Location)__________________________________ iii. My family member who works for the Postal Service holds the following job:
(Title) ___________________________ ( Location)__________________________________ iv. My household member who works for the Postal Service holds the following job:
(Title) ___________________________ ( Location)__________________________________

C. If you have checked “none of the above” and during the lease or license term or any renewal term, you do fall into any of the categories listed in A (i) through (v) above, you shall notify the Postal Service Contracting Officer in writing within 30 days of the date you fall into any of the such categories and shall include an explanation of which of the above categories now applies.

D. The person signing this certification has full power of authority to bind the potential Tenant/Landlord/ Supplier/Contractor named above.

Executed this _____ day of ________, 20___ by

BY:___________________________________
[Insert Signature]

BY:___________________________________
[PRINT: name of entity or person]

Title:__________________________________
[Insert title]

Facility Name:__________________________ Fin/Sub No._____________________ Address: ______________________________ City, ST, ZIP:___________________

Effective March 1, 2014 (Revision 2) Appendix A_Conflict of Interest Certification

[INTERNAL USE ONLY: 1) If A(vi) ‘none of the above’ is selected, stop, file form with the lease/license/out- sublease. 2) If other items are selected, submit form to [email protected]. File form and Ethics determination with the lease/license/out-sublease.]
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-564, Version: 1
Purchase and Sales Agreement for 1028 Larkin Circle
Approve a Resolution authorizing the Mayor to execute a Purchase and Sales Agreement (PSA) in the amount of $690,000 for a single-family residence located at 1028 Larkin Circle in the City of Salinas utilizing the American Rescue Plan Act (ARPA) funding for the purchase.

City of Salinas Printed on 9/7/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: SEPTEMBER 12, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
BY: MICHAEL GOMEZ, ECONOMIC DEVELOPMENT ANALYST
TITLE: PURCHASE AND SALES AGREEMENT FOR 1028 LARKIN
CIRCLE

RECOMMENDED MOTION:

A motion to approve a Resolution authorizing the Mayor to execute a Purchase and Sales Agreement (PSA) in the amount of six hundred ninety thousand dollars ($690,000) for a single- family residence located at 1028 Larkin Circle in the City of Salinas utilizing the American Rescue Plan Act (ARPA) funding for the purchase.

EXECUTIVE SUMMARY:

In recognition of the critical need for more affordable housing in Salinas, the City Council appropriated $7 million from the American Rescue Plan Act (“ARPA”) to the Affordable Housing Production Fund. Since then, staff have been working diligently to ide ntify projects that would advance the City’s affordable housing goals. On August 23, 2023, during closed session, staff presented the opportunity to City Council to acquire 1028 Larkin Circle, a single-family residence that has potential for construction of an Accessory Dwelling Unit (ADU). After receiving Council direction, City staff reached out to the realtor with a purchase price of six hundred ninety thousand dollars ($690,000), contingent on the appraised value and pending completion of the City’s 5-day due diligence period. Escrow would close within 5 days after execution of the Purchase and Sales Agreement but not before receipt of the appraisal report.

The Community Develop ment Department Economic Development Division will manage the property and with the support of the Housing Division will develop a rental plan consistent with Fair Housing regulations to rent the Property to a family that is extremely low, very low, or low income. Citizenship or residency would not be a requirement to apply.

BACKGROUND:

The 2015-2023 Housing Element identified that a significant portion of Salinas’ households are considered “cost burdened”. Households are considered cost burdened when they spend more than 30% of their income on rent, mortgage, and other housing needs. Among renters, almost 53 percent Page | 2
of households paid more than 30 percent of their income towards housing costs. Almost 49 percent of owner -households paid more than 30 percent of income towards housing costs . Over the subsequent years, affordability has gotten even more challenged. As a result, the City Council has made providing affordable housing a strategic plan priority. O n November 16, 20 21, Council approved Resolution 22250 appropriating $7 million ($7,000,000) from the American Rescue Plan Act (“ARPA”) to the Affordable Housing Production Fund authorizing the funds to be used for predevelopment, acquisition, construction, plans, and studies. Staff have been actively soliciting proposals for the use of these funds from developers and has also explored opportunities for the City to acquire both developed and undeveloped properties for housing. In reviewing properties for acquisition, staff discovered 1028 Larkin Circle (Assessor’s Parcel Number [APN] 261-732- 019-000), which is unique in that it is comprised of 4 bedrooms 2 baths on a 9,235 sqft lot that has potential for the construction of an ADU.

DISCUSSION:

1028 Larkin Circle (“Property”) is currently owned by a Trust, the Property was offered for sale with an asking price of six hundred and seventy-five thousand dollars ($675,000). It is a single- story property with approximately 1,232 square feet of living space on a 9,235 square foot lot built in 1978. The Property has been well maintained, both exterior and interior are in good condition.

The only immediate anticipated improvements to the Property are the addition of a water softener system, replacement of the stove, and converting the nonpermitted living space in the garage to a standard 2-car garage.

After closed session on August 23 rd, staff contacted the agent representing the owner s of 1028 Larkin Circle, which has been on the market since August 15, 2023. Staff negotiated a purchase price of six hundred and ninety thousand dollars based upon real estate comps for similar properties. The property did receive two additional offers that fell through for no fault of the property. This purchase price is contingent on an appraisal of the property’s fair market value. The sellers Brokerage firm , Steinbeck Real Estate , will receive 3.0% of the purchase price as compensation for the sale in escrow with the City receiving a 2% credit from the purchase price .

Escrow will close following the execution of the P SA, the completion of the City’s 5-day due diligence period, and receipt of an appraisal report. City staff has reviewed the property home inspection report, wood destroying pests and organisms’ inspection report, and Preliminary Title Report and will coordinate an appraisal report. Based on the information from the reports received, staff believes the property to be in good condition with normal wear and tear that is expected for the age of the home.

CEQA CONSIDERATION:

The City of Salinas has determined that the proposed action , acquisition of an existing single- family residence, is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the Page | 3
environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

STRATEGIC PLAN INITIATIVE:

The proposed acquisition supports the City of Salinas Strategic Plan 2023-2025 goal of Housing/Affordable Housing. This acquisition represents an increase in local affordable housing stock and will provide a stable, long-term housing opportunity for up to one large low-income family and potentially two with the construction of an ADU on the property.

DEPARTMENTAL COORDINATION:

CDD’s Economic Development Division continues to coordinate with both the Housing and Permit Services Divisions of the Department in identifying and vetting viable properties.

Additional consultation regarding the preparation of the draft PSA has also occurred with the City Attorney.

FISCAL AND SUSTAINABILITY IMPACT:

Council approved Resolution 22250 appropriating $7 million ($7,000,000) from the American Rescue Plan Act (“ARPA”) to the Affordable Housing Production Fund. The Purchase Price for the Property is six hundred and ninety thousand dollars with the estimated escrow cost of three thousand and sixteen dollars ($3,016.00). As part of the resolution, City Council would authorize the expenditure of six hundred and ninety dollars for the purchase of the property and use of the Housing Production CIP for escrow expenditures.

Upon taking ownership, the City will assume responsibility for ongoing property maintenance costs, remediation and repair, and property taxes. The annual costs of property maintenance will be minimal as this property has been kept in good condition. Property taxes will initially be approximately $8,625 per year. These ongoing costs will be covered by the rental income received from the Property.

ATTACHMENTS:

1. Resolution

2. PSA – 1028 Larkin Circle – Draft, including a Legal Description, Grant Deed, and Certificate of Acceptance

3. Aerial Photograph – 1028 Larkin Circle

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RESOLUTION NO. (N.C.S.)

A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A PURCHASE AND SALES AGREEMENT FOR THE ACQUISITION OF 1028 LARKIN CIRCLE

WHEREAS, in recognition of the critical need for more affordable housing in Salinas, the City Council approved Resolution 22250 appropriating $7 million from the American Rescue Plan Act (“ARPA”) to the Affordable Housing Production Fund to be used for predevelopm ent, acquisition, construction, plans, and studies; and

WHEREAS, staff have been working diligently to develop ARPA projects that would advance the City’s affordable housing goals and identified the potential acquisition of 1028 Larkin Circle (Assessor’s Parcel Number [APN] 261-732-019-000 “the Property” ), a single family residence owned by a Trust; and

WHEREAS, the Property is a single-story residence built in 1978 that contains approximately 1,232 square feet of living space, 4 bedrooms and two baths, and two car garage on a 9,235 square feet lot that has potential for the development of an Accessory Dwelling Unit (ADU); and

WHEREAS, on August 23, 2023, during closed session staff received Council direction to pursue acquisition of the Property and subsequently reached out to the real estate agent representing the owners with a purchase price of six hundred and ninety thousand dollars ($690,000), contingent on the appraised value and pending completion of the City’s 5-day due diligence period; and

WHEREAS, the negotiated price is fifteen thousand dollars over the original sales price based upon real estate comps for similar properties and the potential of construction of an ADU, the City will receive a 2% credit from the purchase price, and

WHEREAS, escrow would close within 5 days after execution of the Purchase and Sales Agreement but not before receipt of the appraisal report; and

WHEREAS, the purchase of the Property will support the City of Salinas Strategic Plan 2022-2025 goal of Housing/Affordable Housing by providing much needed affordable housing to low-income families.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby authorizes the Mayor to enter into a Purchase and S ales Agreement for the acquisition of 1028 Larkin Circle and authorizes the expenditure of ARPA funds for this purchase.

PASSED AND APPROVED this 12th day of September 2023, by the following vote:

AYES:

NOES:

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ABSENT:

ABSTAIN:

APPROVED:

_______________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk

1 PURCHASE AND SALES AGREEMENT
(1028 Larkin Circle)

This Purchase and Sales Agreement (“Agreement”) is dated as of September 12, 2023 (“Effective Date”) and is being entered into by and the City of Salinas, a California charter city and municipal corporation hereinafter referred to as “ Buyer”, and Roselyn K. Varma, Successor Trustee of the HJL Trust UTD 6/16/2016 , hereinafter referred to as “Seller”, for the acquisition by Buyer of certain real property described below.

RECITALS

A. The Seller is the owner in fee of that certain real property consisting of approximately 9,235 square feet of land generally located at 1028 Larkin Circle (Assessor’s Parcel Number [APN] 261-732-019-000) in the City of Salinas, County of Monterey, State of California (“Property”) as more particularly described in the attached “Exhibit A”.

B. The Property is a was built in 1978 that is in good condition and consists of a single-story family residence with approximately 1,232 square feet of living space.

NOW, THEREFORE, Buyer and Seller agree as follows;

1. Agreement to Sell and to Purchase. Buyer agrees to buy the Property from Seller and Seller agrees to sell the Property to City upon the terms and for the consideration set forth in this Agreement.

2. Purchase Price. The purchase price of the Property is six hundred and ninety thousand dollars ($690,000) to be paid in cash to the Seller by the Buyer at the Close of Escrow.

3. Opening Escrow. Seller has opened Escrow with Chicago Title CO -5212300659 to complete the transaction (the “Escrow Holder”). The Buyer shall deposit the Purchase Price into escrow within five (5) days after execution of the Agreement, said money shall be refundable until such time as buyer has waived all contingencies. The Buyer and S eller shall execute and deliver written instructions to the Escrow Holder to accomplish the terms hereof, which instructions shall be consistent with this Agreement.

4. Close of Escrow. The Close of Escr ow shall occur within five (5) business days after execution of the Purchase and Sales Agreement but not before receipt of appraisal report and after all of the following conditions shall be established , prior to or concurrently with, and as conditions of, the Close of Escrow:

4.1. The Seller shall have executed and delivered to the Buyer or the Escrow Holder all documents and instruments required to be executed and delivered, all in form and substance

2 satisfactory to both Buyer and the Escrow Holder, and Buyer shall have submitted full payment of the Property Purchase Price.

4.2. There shall exist no condition, event or act which would constitute a breach or default under this Agreement which upon the giving of notice or the passage of time, or both, would constitute such a breach or default.

4.3. All representations and warranties of the parties contained herein shall be true and correct as of the Close of Escrow.

4.4. The Sale is contingent on the following items:
 The appraised value at a minimum of purchase price
 Review of Seller Documents 5 days after execution of the Agreement  Review of Preliminary “Title” Report 5 days after execution of the Agreement
 Review of Common Interest Disclosure
 Review of Leased or Liened items
Any and all expenses incurred relating to inspecting the Property by Buyer shall be borne by Buyer.

4.5. Ad valorem taxes, if any, shall be prorated as of the date of conveyance of the Property from the Seller to the Buyer. Seller and the Buyer shall each pay half of the cost of title insurance, transfer tax, Escrow Holder document preparation, recordation fees, premiums of owners and lenders title insurance and the escrow fees of the Escrow Holder, if any, and any additional costs to close the escrow. The costs borne by Buyer are in addition to the Purchase Price for the Property.

5. Conveyance of Title and Possession. Seller agrees to convey by Grant Deed (in substantially the form shown on the attached (Exhibit B) to Buyer all of Seller’s title and interest in and to the Property. Notwithstanding anything to the contrary set forth herein, the Seller makes no representation or warranty regarding title to the Property or the removal of any Exceptions from title to the Property. Further, Seller has no obligation to provide title to the Property clear of encumbrances and shall not incur any liability for title defects unless Seller expressly agrees to remove one or more encumbrances pursuant to this Section; however, Buyer shall not be obligated to accept title to the Property unless it is conveyed free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, taxes and other title or survey matters (“ Exceptions”) except such matters which are acceptable to the Buyer, in Buyer’s sole discretion, following Buyer’s review of a title report to be provided by the Seller or Escrow Company.

6. Title Insurance Policy. Escrow Holder shall, following recording of the Deed, provide Buyer with a standard owner’s CLTA (or extended coverage ALTA, at the request of Buyer) policy of title insurance in the amount of the Purchase Price, issued by the Title

3 Company, together wit h any endorsements and additional coverage reasonably requested by Buyer, showing fee simple title to the Property vested in Buyer, subject only to the Exceptions set forth in Section 5 approved by Buyer and the printed exceptions and stipulations in the policy. Title charges shall be evenly split by the by the Buyer and Seller.

7. Condition of Property.

7.1. Seller agrees to maintain the Property in its current condition, subject to ordinary wear and tear from the time this Agreement comes into effect until the Closing. Buyer recognizes that Seller, along with any licensed real estate agent(s) involved in this transaction, make no claims as to the validity of any property disclosure information. Buyer is requir ed to p erform their own inspections, tests, and investigations to verify information provided by the Seller.

7.2 All the following items shall be included in the Purchase Price: stove, refrigerator, dishwasher, all existing fixtures (except mirrors in bathrooms) and fittings that are attached to the Property; existing electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar power systems, built-in appliances and appliances for which special openings are encasements have been made , window and door screens, awnings, shutters, window coverings (which includes blinds, curtains, drapery, shutters or any other materials that cover any portion of the window) and any associated hardware and rods, attached floor coverings, television antennas, satellite dishes, air coolers/conditioners , garage door openers/remote controls, mailbox, in-ground landscaping, water features and fountains, water softeners, water purifiers, light bulb s (including smart bulbs) and stove, oven , refrigerator, microwave, home control devices. Seller shall remove any personal items which Seller chooses to keep before the close of escrow.

Seller represents that all items included in the purchase price, are owned by the Seller and shall be transferred free and clear of liens and encumbrances and are transferred without Seller warranty regardless of value.

7.3 Buyer specifically acknowledges and agrees that the Seller is selling and the Buyer is buying the Property not relying on any representations or warranties of any kind whatsoever, express or implied, from the Seller as to any matters concerning the Property, including without limitation (1) the quality, nature, adequacy, and physical condition of the Property (including, without limitation, topography, climate, air, water rights, water, gas electricity, utility services, grading, drainage, sewers, access to public roads and related conditions); (2) the quality, nature, adequacy, and physical condition of soils, geology, and groundwater; (3) the existence, quality, nature, adequacy, and physical condition of utilities serving the Property; (4) the development potential of the Property, and its use, habitability, merchantability, or fitness, suitability, value or adequacy of the property for any particular purpose; (5) the zoning or other legal status of the Property or any other public or private restrictions on the use of the Property; (6) the compliance of the Property or its operation with any applicable codes, laws, regulations, statutes, ordinances, covenants, conditions, and restrictions of any governmental or quasi -governmental entity or of

4 any other person or entity; (7) the presence or absence of hazardous materials on, under or about the Property or the adjoining and neighboring properties; and (8) the condition of title to the Property.

The Buyer affirms that it has not relied on the skill or the judgment of the Seller or any of its respective agents, employees or contractors to select or furni sh the Property for any particular purpose, and that the Seller makes no warranty that the Property is fit for any particular purpose. The Buyer acknowledges that it shall use its independent judgment and make its own determination as to the scope and the breadth of its due diligence investigation which investigation of the physical, environmental, economic, and legal condition of the Property (including, without limitation, whether the Property is located in an area which is designated as a special flood hazard area, dam failure inundation area, earthquake fault zone, seismic hazard zone, high fire severity area or wildland fire area, by any federal, state or local entity). The Buyer undertakes and assumes all risks associated with all matters pertaining to the Property location in any area designated as a special flood hazard area, dam inundation area, earthquake fault zone, seismic hazard zone, h igh fire severity area or wildland fire area, by any federal, state or local entity.

7.4. Survival. The terms and the conditions of this section 7 shall expressly survive the Close of Escrow, shall not merge with the provisions of the Grant Deed, or any other closing documents and shall be deemed to be incorporated by reference into the Grant Deed. The Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the Property furnished by any contractor, agent, employee, servant or other person. The Buyer acknowledges that the Purchase Price reflects the “as is” nature of this sale and any faults, liabilities, defects or other adverse matters that may be associated with the Property. The Buyer has fully reviewed the disclaimers and waivers set forth in this Agreement with the Buyer’s counsel and understands the significance and effect thereof.

7.5. Acknowledgement. The Buyer acknowledges and agrees that (i) to the extent required to be operative, the disclaimers of warranties contained in this section are “conspicuous” disclaimers for purposes of all applicable laws and other legal requirements, and (ii) the disclaimers and other agreements set forth in such sections are an integral part of this Agreement, that the Purchase Price has been adjusted to reflect the same and that the Seller would not have agreed to sell the Property to the Buyer for the Purchase Price without the disclaimers and other agreements set forth in this section.

7.6. Buyer’s Release of the Seller. The Buyer, on behalf of itself and anyone claiming by, through or under the Buyer, hereby waives its right to recover from and fully and irrevocably releases the Seller and its representatives and agents (“Released Parties”) from any and all claims, responsibility and/or liability that the Buyer may have or hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, expenses, demand, action or cause of action arising from or related to (i) the condition (including any construction defects, errors, omissions or other conditions, latent or otherwise), valuation, salability or utility of the Property, or its

5 suitability for any purpose whatsoever, (ii) any presence of Hazardous Materials (as her einafter defined), and (iii) any information furnished by the Released Parties under or in connection with this Agreement.

7.7. Scope of Release. The release set forth in section 7.4 hereof includes claims of which the Buyer is presently unaware or whic h the Buyer does not presently suspect to exist which, if known by the Buyer, would materially affect the Buyer’s release of the Released Parties.

The Buyer specifically waives the provision of any statute or principle of law that provides otherwise. In this connection and to the extent permitted by law, the Buyer agrees, represents and warrants that the Buyer realizes and acknowledges that factual matters now unknown to the Buyer may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses, and expenses which are presently unknown, unanticipated and unsuspected, and the Buyer further agrees, represents, and warrants that the waivers and releases herein have been negotiated and agreed upo n in light of that realization and that the Buyer nevertheless hereby intends to release, discharge, and acquit the Sellers from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses, and expenses. Accordingly, the Buyer, on behalf of itself and anyone claiming by, through or under the Buyer, hereby assumes the above-mentioned risks and hereby expressly waives any right the Buyer or anyone claiming by, through or under the Buyer, may have under Section 1542 of the California Civil Code, which reads as follows:

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with debtor.”

Notwithstanding the foregoing, this release shall not apply to, nor shall the Seller be released from, the Seller’s actual fraud or misrepresentation.

8. Hazardous Materials. As used in this Agreement, the term “Hazardous Materials” shall mean any substance, material, or waste which is or becomes, regulated by any local governmental authority, the County of Monterey, the State of California, any regional governmental authority, or the United States Government, i ncluding, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley-Tanner Hazardous Substance Acc ount Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable

6 asbestos, (vii) polychlorinated biphenyls, (viii) methyl tertiary butyl ether, (ix) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (x) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §§6901, et seq. (42 U.S.C. §6903) or (xi) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§9601, et seq.

8.1. Compliance with Laws. The Buyer hereby covenants and agrees to comply with all Hazardous Materials laws applicable to it.

8.2. Indemnity. Without limiting the generality of the indemnification set forth elsewhere in this Agreement, the Buyer hereby agrees to indemnify, protect , and hold harmless the Seller from and against any and all claims, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, judgments, remedial action requirements, enforcement actions of any kind, and all costs and expenses incurred in connection therewith (including, but not limited to, reasonable attorney fees and expenses), arising directly or indirectly, in whole or in part, out of the failure of Buyer or any other person or entity to comply with the Hazardous Materials laws. The foregoing indemnity shall further apply to any residual contamination on or under the Property, including but not limited to the presence of lead-based paint or asbestos, or affecting any natural resources, and to any contamination of any property or natural resources arising in connection with the generation, use, handling, treatment, storage, transport or disposal or any such Hazardous Materials, and irrespective of whether any of such activities were or will be undertaken in accordance with Hazardous Materials laws. The provisions of this subsection shall survive expiration or termination of this Agreement, and shall remain in full force and effect.

8.3. No Limitation. The Buyer hereby acknowledges and agrees that the Buye r’s duties, obligations, and liabilities under this Agreement, including, without limitation, under sections 8.1 and 8.2 above, are in no way limited or otherwise affected by any information the Seller may have concerning the Property and/or the presence w ithin the Property of any Hazardous Materials, whether the Seller obtained such information from the Buyer or from its own investigations.

9. Provision Not Merged with Deeds. Unless otherwise specifically set forth herein, none of the provisions of this Agreement are intended to or shall be merged by any grant deed transferring title to any real property which is the subject of this Agreement from Seller to Buyer or any successor in interest, and any such grant deed shall not be deemed to affect or to impair the provisions and the covenants of this Agreement.

10. Brokers. Seller has hired Steinbeck Real Estate, Broker Department of Real Estate License #01934055 to perform representation on their behalf, they shall be entitled to payment for their services as outline d in their separate written agreement . Buyer is representing itself and shall receive credit of 2% of the Purchase Price in escrow. No other brokerage commission, finder’s fee

7 or other compensation of any kind is due or owing to any person or entity in connection with this Agreement. Each party agrees to and does hereby indemnify and hold the other free and harmless from any against any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying party in connection with this Agreement.

11. Waiver, Consent, and Remedies. Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder, as appropriate, and any breac h thereof by Buyer or Seller shall be deemed a material default hereunder by such breaching party.

Either party may specifically and expressly waive in writing any portion of this Agreement or any breach thereof, but no such waiver shall constitute a furt her or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other.

12. Attorney’s Fees. In the event any declaratory or other legal or equitable action is instituted between Seller, Buyer and/or Escrow Holder in connection with this Agreement then, as between Buyer and Seller, the prevailing party shall be entitled to recover from the losing party all of its costs and expenses, including court costs, reasonable attorneys’ fees, expert witness fees, and all fees, costs and expenses incurred on any appeal or in collection of any judgment.

13. Notices. Any notice, request, demand, consent, approval or other communication required or permitted hereunder or by law shall be validly given or made only if in writing and delivered in person to an officer or duly authorized representative of the other party, or deposited in the United States mail, duly certified or registered (return receipt requested), postage prepaid, or delivered through another reasonably acceptable method, and addressed to the party for whom intended, as follows:

If to Buyer: City of Salinas
200 Lincoln Avenue
Salinas, California 93901
Attn: City Manager

With a Copy to: City of Salinas
200 Lincoln Avenue
Salinas, California 93901
Attn: City Attorney

8 If to Seller: Roselyn K. Varma
12 West Gabilan St
Salinas, CA 93901

14. Gender and Number. In this Agreement (unless the context requires otherwise), the masculine, feminine and neuter genders and the singular and the plural shall be deemed to include one another, as appropriate.

15. Entire Agreement. This Agreement and its attachments constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and the final, complete and exclusive expression of the terms and conditions thereof. All prior agreements, representations, negotiations and unde rstanding of the parties hereto, oral or written, express or implied, are hereby superseded and merged herein.

16. Captions. The captions used herein are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions hereof.

17. Governing Law. This Agreement and the exhibits attached hereto have been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California.

18. Counterparts. This Agreement may be executed in counterparts, each of which when executed shall, regardless of the date of its execution and delivery, be deemed an original, and all counterparts together shall constitute one and the same instrument.

19. Invalidity of Provision. If any provision of this Agreement as applied to any party or to any circumstance shall be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law ) any other provision of this Agreement, the application of any such provision under circumstances different from those adjudicated by the court, or the validity or enforceability of this Agreement as a whole.

20. Amendments. No addition to or modification o f any provision contained in this Agreement shall be effective unless fully set forth in writing by Buyer and Seller.

21. Time of Essence. Time is of the essence of each provision of this Agreement.

22. Survival. All agreements, representations and warranties contained herein shall survive the Closing.

9 23. Binding Upon Successors. The terms and conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assig ns and successors of the parties hereof.

24. Parties no Co-Venturers. Nothing in this Agreement is intended to or does establish the parties as partners, co-venturers or principal and agent with one another.

25. Action by the City. Except as may be otherwise specifically provided in this Agreement, whenever any approval, notice, direction, finding, consent, request, waiver or other action by the City is required or permitted under this Agreement, such action may be given, made or taken by the City Manager or by any person who shall have been designated in writing to the Buyer by the City Manager without further approval by the City Council. Any such action shall be in writing.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set fort h above.

CITY OF SALINAS

__________________________
Kimbley Craig, Mayor

APPROVED AS TO FORM:

___________________________
Christopher A. Callihan, City Attorney

SELLER

____________________________
Roselyn K. Varma
Successor Trustee

10 11

EXHIBIT A

Legal Description

Real property in the City of Salinas, County of Monterey, State of California, described as follows:

APN: 261-732-019-000

Lot 53, in Block 3, as shown on that certain map entitled, "Tract No. 830, Unit No. 3, Laurel West", filed June 14, 1978 in Volume 13, Maps of "Cities and Towns", at Page 79, in the Office of the County Recorder of the County of Monterey, State of California.

EXCEPTING THEREFROM any and all water, but without the right of entry or to make any withdrawal of water which will result in damage to any building or structure, as granted in the Deed to California Water Service Company, a California Corporation, recorded June 19, 1978 in Reel 1252, Page 457, of Official Records

ALSO EXCEPTING THEREFROM all minerals, coals, oils, petroleum, gas and kindred substances under and in said land, but without the right of entry of the surface thereof, but with the right however, to drill in through or under said land or to explore, develop or take all minerals, coals, petroleum, gas and other kindred substances in and from said land, all such operations to be conducted only below a depth of five hundred feet below the surface thereof, also excepting all adjacent dedicated streets, as excepted in the Deed from Muster Corporation, a California Corporation, recorded September 20, 1979 in Reel 1359, Page 1169, of Official Records.

12 EXHIBIT B

RECORDING REQUESTED BY

City Clerk
City of Salinas
200 Lincoln Avenue
Salinas, California 93901

WHEN RECORDED MAIL TO
AND MAIL TAX STATEMENTS TO:

City of Salinas

65. W Alisal St
Salinas, CA 93901

EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code §6103

(ABOVE SPACE FOR RECORDER’S USE
ONLY)
* This Instrument is exempt from payment of Documentary Transfer Tax pursuant to Section 27383.2 (Transfer to government entity) of the Revenue and Taxation Code, as amended. Transfer Tax $0.00

GRANT DEED
For valuable consideration, ROSELYN K. VARMA, SUCCESSOR TRUSTEE OF THE HJL TRUST UTD 6/16/2016,
Hereby GRANT(S) to City of Salinas, a California charter city and municipal corporation, does hereby REMISE, RELEASE AND FOREVER QUITCLAIM, all of the right, title and interest of Grantor in and to that certain real property situated in the City of Salinas, County of Monterey, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this reference.

Dated this ____ day of ______________, 2023.

____________________________
Roselyn K. Varma
Successor Trustee

13 Attachment No. 1

Legal Description

Real property in the City of Salinas, County of Monterey, State of California, described as follows:

Lot 53, in Block 3, as shown on that certain map entitled, "Tract No. 830, Unit No. 3, Laurel West", filed June 14, 1978 in Volume 13, Maps of "Cities and Towns", at Page 79, in the Office of the County Recorder of the County of Monterey, State of California.

EXCEPTING THEREFROM any and all water, but without the right of entry or to make any withdrawal of wa ter which will result in damage to any building or structure, as granted in the Deed to California Water Service Company, a California Corporation, recorded June 19, 1978 in Reel 1252, Page 457, of Official Records

ALSO EXCEPTING THEREFROM all minerals, c oals, oils, petroleum, gas and kindred substances under and in said land, but without the right of entry of the surface thereof, but with the right however, to drill in through or under said land or to explore, develop or take all minerals, coals, petroleum, gas and other kindred substances in and from said land, all such operations to be conducted only below a depth of five hundred feet below the surface thereof, also excepting all adjacent dedicated streets, as excepted in the Deed from Muster Corporation , a California Corporation, recorded September 20, 1979 in Reel 1359, Page 1169, of Official Records APN: 261-732-019-000

14 CERTIFICATE OF ACCEPTANCE
City Resolution No.: ______

THIS IS TO CERTIFY THAT the interest in real property conveyed by the deed or grant dated ________________, 2023 from
ROSELYN K. VARMA, SUCCESSOR TRUSTEE OF THE HJL TRUST UTD 6/16/2016 to

CITY OF SALINAS, A CALIFORNIA CHARTER CITY AND MUNICIPAL

CORPORATION
is hereby accepted by order of the Salinas City Council on September12, 2023, (or by the undersigned officer or agent on behalf of the City of Salinas pursuant to authority conferred by Resolution 5849 of the Salinas City Council adopted on November 22, 1965 ), and the grantee consents to recordation thereof by its duly authorized officer.

DATE:

Kimbley Craig, Mayor

Aerial Photography of Property and Surrounding Area

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-566, Version: 1
Permit Center Reorganization, Reclassification, and Workforce Allocation Adjustment Approve a Resolution amending the FY23-24 workforce for the Permit Services Division of the Community Development Department.

City of Salinas Printed on 9/7/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: September 12, 2023
DEPARTMENT: ADMINISTRATION
FROM: STEVE CARRIGAN, CITY MANAGER
BY: JIM PIA, ACTING FINANCE DIRECTOR

LISA BRINTON, COMMUNITY DEVELOPMENT DIRECTOR

DAVID JACOBS, PUBLIC WORKS DIRECTOR

MARINA HORTA-GALLEGOS, HUMAN RESOURCES DIRECTOR

TITLE: REORGANIZATION, RECLASSIFICATION, WORKFORCE
ALLOCATION ADJUSTMENT AND CLASSIFICATION SALARY –

SCHEDULE MODIFICATION

RECOMMENDED MOTION:

It is recommended that the City Council approve a Resolution to reclassify specified positions and amend the FY 23-24 workforce for the Administration, Community Development, Finance, and Public Works Departments and modify the Classification – Salary Schedule. Specifically, staff request to reclassify the vacant Permit Center Manager to Assistant Community Development Director , vacant Senior Plan Check Engineer to Plan Check Engineer , vacant Deferred Compensation Technician to Payroll Technician, vacant Technology and Innovation Officer to Information Systems Manager, one Senior Civil Engineer to Deputy City Engineer, and one vacant Public Service Maintenance Worker (PSMW) III to PSMW IV.

RECOMMENDATION:

Staff recommends that the City Council ap prove the attached Resolution to approve the recommended reclassifications and amend the FY 23-24 workforce for the Administration, Community Development, Finance, and Public Works Department s to include one additional Assistant Community Development Director by reclassifying the vacant Permit Center Manager and adding one Plan Check Engineer in the place of the vacant Senior Plan Check Engineer. In the Finance Department, the Deferred Compensation Technician to be reclassified to a Payroll Technician and Technology and Innovation Officer to Information Systems Officer . In Public Works, the Senior Civil Engineer overseeing Engineering/Capitol Improvement Projects to be reclassified to Deputy City Engineer. The Deputy City Manager would be added to the Classification – Salary Schedule. Lastly, the vacant PSMW III would be reclassified to PSMW IV.

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BACKGROUND:

Community Development Department
The Community Development Department currently has approximately 60 authorized full-time positions and an operating budget of $ 8.3M. The department’s main functions are planning, planning implementation, permitting, management of federal funding, housing facilitation, homes services, code enforcement, business retention and expansion and small business development.

The current organizational structure divides oversight of the various divisions between the Director and the Assistant Director. Specifically, the Assistant Director provides oversight for Advanced Planning and Implementation (APPI) , Housing and Community Development, and Code Enforcement. The Director provides direct oversight over the remaining divisions while planning and directing the goals, functions, and initiatives of the entire Department. The new Community Development Director assumed leadership as the FY 23-24 budget and workforce were being finalized.

The Department retained the services of Municipal Resources Group to assist with an assessment of the Permit Center (Permit Services Division). This process included employee input to review staffing , duties, workflow, customer service, and communication, among other things. Following employee feedback and a review of the current staffing, vacancies, and organizational structure, it is recommended that the vacant Permit Center Manager be reclassified to an Assistant Community Development Director with management and direct oversight of the Permit Center . Under the direction of the Community Development Director, this position will exercise general supervision over inspection services, building plan check, code enforcement and building permit operations. By leading the multi-disciplinary teams, he/she will ensure proper coordination of all applications received, timely service to all customers, collection of fees and coordination with the plan check staff and other City departments.

Separately, plan checking currently has two authorized Senior Plan Check Engineers and with one recent vacancy, the department recommends underfilling the position with a Plan Check Engineer. This will allow for career growth opportunities and anticipate this will be less challenging to fill.

Finance Department

The Finance Department recommends reclassifying the vacant Deferred Compensation Technician to Payroll Technician. A Payroll Technician would be able to assume existing deferred compensation accounting, posting, reconciliation functions and provide additional support to the Payroll Supervisor.

Additionally, the Information Technology (IT) Division was set to shift from the Finance Department to Administration although the IT division has historically been overseen by the Finance Director. Upon further review, it is recommended that the IT division remain in the Finance Department. This shift would have increased the Administration Department workforce by more than fifty percent (50%).

Keeping the IT division within Finance provides a status quo in Finance and provides the City Manager with a more manageable span of control over the existing positions in Administration, those recently added and those being studied and recruited . Staff further recommends reclassifying the vacant Technology and Innovation Officer to the previously authorized Information Systems Manager.

IT staff are temporarily overseen by the City Clerk while the City prepares to recruit for the Information Systems Manager and fills the Assistant Finance Director and Finance Director vacancies.

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Public Works

The Public Works Engineering division is currently divided into five divisions. Currently, two division head positions are vacant. The Department proposes to reclassify the incumbent Senior Civil Engineer overseeing Engineering (Capital Improvement Projects) to a Deputy City Engineer. This is the first step of several as the Department evaluates the current structure, existing staffing, and vacancies.

Additionally, the Maintenance Services division recommends reclassifying one PSMW III vacancy to a level IV position to balance the number of lead staff in the Sewer/NPDES Streets division.

CEQA CONSIDERATION:

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

STRATEGIC PLAN INITIATIVE:

The proposed action meets the Effective and Culturally Responsive Government Council goal.

DEPARTMENTAL COORDINATION:

Human Resources , Administration, Community Development , Finance, and the Public Works Departments collaborated in this effort.

FISCAL AND SUSTAINABILITY IMPACT:

None. The Permit Center is funded by an enterprise fund. The difference in salary between the Permit Center Manager and Assistant Community Development Director will be offset this fiscal year with salary savings from the vacant Permit Center Manager position and the underfilling of the Senior Plan Check Engineer will provide additional salary savings.

The reclassifications of the Deferred Compensation Technician and Technology and Information Officer are cost neutral.

The reclassification of the Senior Civil Engineer and PSWM III will be offset this fiscal year with salary savings.

ATTACHMENTS:

Resolution
Current Organizational Charts
Revised Organizational Charts
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
15 Deputy City Engineer 55.0612 9,544 57.8158 10,021 60.7090 10,523 63.7408 11,048 66.9314 11,601 70.2815 12,182

Page | 4
RESOLUTION NO. _________ (N.C.S.)

RESOLUTION APPROVING THE FY 23-24 WORKFORCE ALLOCATION ADJUSTMENT, RECLASSIFICATIONS, AND CLASSIFICATION – SALARY SCHEDULE MODIFICATION

BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the approved FY 23 -24 workforce for the Administration, Community Development, Finance, and Public Works Departments reflect the recommended reclassifications, workforce adjustments, and Classification – Salary Schedule modification.

Department Existing Recommended
Administration IT Division Remove IT Division
Community Development Permit Center Manager Assistant Community Development Director Community Development Senior Plan Check Engineer Plan Check Engineer Finance Deferred Compensation Technician Payroll Technician Finance IT Division
Finance Technology & Innovation Officer Information Systems Manager Public Works Senior Civil Engineer Deputy City Engineer Public Works PSMW III PSMW IV

PASSED AND ADOPTED this 12th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
Kimbley Craig, Mayor

ATTEST:
______________________________
Patricia Barajas, City Clerk

ADMINISTRATION DEPARTMENT
Organizational Chart by Division

CITY MANAGER'S
OFFICE

CITY CLERK

ADMIN SUPPORT

COMMUNITY DEVELOPMENT DEPARTMENT
Organizational Chart by Division

COMMUNITY

DEVELOPMENT

DIRECTOR

ADMINISTRATION

ASSISTANT

COMMUNITY

DEVELOPMENT

DIRECTOR

CURRENT

PLANNING

ADVANCED

PLANNING &

PROJECT

IMPLEMENTATION

ECONOMIC

DEVELOPMENT

HOUSING &

COMMUNITY

DEVELOPMENT

ASSISTANT

COMMUNITY

DEVELOPMENT

DIRECTOR
CODE

ENFORCEMENT
PERMIT

SERVICES

FINANCE DEPARTMENT
Organizational Chart by Division

FINANCE

DIRECTOR

ADMINISTRATION

ACCOUNTING

PURCHASING

INFORMATION

TECHNOLOGY

REVENUE AND

LICENSING

PUBLIC WORKS DEPARTMENT (ENGINEERING & TRANSPORTATION)
Organizational Chart by Position

ENGINEERING AND TRANSPORTATION
Organizational Chart by Division

PUBLIC WORKS

DIRECTOR

ADMINSTRATION
CITY

ENGINEER

ENGINEERING

DEVELOPMENT

ENGINEERING

WATER WASTE
& ENERGY

TRAFFIC &

TRANSPORTATION

STORMWATER

COMPLIANCE
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-570, Version: 1
a. Labor Negotiations - California Government Code Section 54957.6, with its designated labor representatives Steven S. Carrigan, City Manager; Jim Pia, Assistant City Manager/Acting Finance Director; Christopher A. Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Marina Horta- Gallegos, Human Resources Director; Sylvia Enriquez, Senior Human Resources Analyst; Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Management Employees, Confidential Non-Management Employees, and Department Directors.
b. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Santa Rita Union High School District, et al. v. City of Salinas et al., Monterey County Superior Court Case No. 20CV000242.
c. Pending Litigation - California Government Code Section 54956.9(d)(1), conference with legal counsel regarding, Alisal Union School District, et al. v. City of Salinas, et al., Monterey County Superior Court Case No. 20CV00340.

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