2022 County-City Downtown Government Center MOU Page 1
UPDATED
MEMORANDUM OF UNDERSTANDING
between
THE COUNTY OF MONTEREY
and
THE CITY OF SALINAS
regarding the
MUTUAL PLANNING OF GOVERNMENT FACILITIES
in
DOWNTOWN SALINAS
This Memorandum of Understanding (MOU) is between the County of Monterey (“County”) and the City of Salinas (“City”), which hereafter may be referred to as “Parties”, regarding the mutual planning of government facilities in downtown Salinas (“Government Center”).
WHEREAS, the Parties recognize that downtown Salinas encompasses Monterey County’s largest concentration of local and State government offices, including the County Administrative Offices, the State Superior Court (“Courts”), and Salinas City Hall; and WHEREAS, this concentration of government activity generates significant government- related business activity, such as legal, real estate, development, accounting, and financial services; and
WHEREAS, government workers represent the largest share of downtown employment and, by their proximity to commercial businesses in the downtown, generate a considerable amount of direct downtown economic activity through visitors, shopping, meals, and entertainment; and WHEREAS, the County and the City each own and/or lease a significant share of downtown properties, and in particular those properties within and adjoining the Government Center, which is bounded by Salinas Street to the east, Central Avenue to the north, Capitol Street to the west and West San Luis Street to the south (Exhibit B); and WHEREAS, the County and the City each recognize that the continued concentration of government offices in downtown Salinas is beneficial for the efficient and effective provision of many government services and functions, and is essential for the economic health and well-being of downtown Salinas; and
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WHEREAS, in May 2012 the Parties approved resolutions to execute a Memorandum of Understanding (“MOU”) to set forth mutual understandings and actions regarding a Government Center planning effort; and
WHEREAS, the original term or “period of performance” of the MOU was three years, with an expiration date of May 8, 2015; and
WHEREAS, the County and City mutually funded and participated in the preparation of the Salinas Downtown Vibrancy Plan (herein referred to as the “Downtown Vibrancy Plan” or “DVP”) and in 2015 each accepted the DVP as a strategic planning document to guide the revitalization of Downtown Salinas including a comprehensively planned Government Center; and WHEREAS, the County and City mutually agree to work together to plan a Government Center that connects to downtown as provided in the Downtown Vibrancy Plan, Chapter 5 “Stimulating Development Activity”, Section 5.2.2 Government Center, (page 59) and the goals defined in Figure 5-3 “Catalyst Improvements Government Center” (Exhibit D); and WHEREAS, on April 29, 2015, the Parties approved an amendment to extend the term of the MOU to October 31, 2015 to allow additional time for City and County staff to update the document; and
WHEREAS, on February 9, 2016, the Parties approved a new MOU with a term of December 15, 2015, to October 31, 2020, incorporated DVP implementation actions, a Schedule of Performance, and an annual review process; and
WHEREAS, while many accomplishments have been achieved to date, there are still many actions and projects related to DVP implementation and the Downtown Government Center that will need to be undertaken and/or implemented over the course of the next five (5) years; and WHEREAS, given that continued City and County coordination of these efforts is vital, an update to the MOU is beneficial to ensure continued collaboration on planning of a multi- agency campus style government center as provided in the DVP; and WHEREAS, in August 2019, City and County approved Amendment No. 1 to the Lease of City Property on the south side of West Alisal Street (Parking Lots 6 and 17) allowing the County to use the entire property for persons responding to juror summons or serving as jurors, except for the one (1) space for Salinas Library book mobile parking and two (2) ADA accessible parking spaces for visitors to the adjacent Recreation Center; and WHEREAS, on June 22, 2021, City and County entered into a License Agreement to provide for 85 parking spaces for County employees to park within the City-owned City Hall Parking Lot and along Lincoln Avenue, until such time that an alternative parking solution is available or either party desires to terminate said agreement per the agreed upon terms; and WHEREAS, also on June 22, 2021, County agreed to put on hold the Capital Improvement Project for surface parking at Gabilan and Church Streets (Project 8419) and to redirect up to $500,000 of project funding for Fiscal Year 2021-2022 to match City funding toward feasibility analysis and planning activities for a proposed joint parking solution; and DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 2022 County-City Downtown Government Center MOU Page 3
WHEREAS, Section 15061 (b) (3) of the CEQA Guidelines states that when it can be seen with certainty that there is no possibility that the activity in question, in this case the adoption of an MOU, may have a significant effect on the environment, the activity is not subject to CEQA; and
WHEREAS, this MOU only outlines the City’s and County’s intent for planning and policy coordination for the Downtown Government Center and Downtown Salinas including a phased approach for conducting due diligence and feasibility activities for joint use parking facilities, all of which can be seen with certainty to have no possible significant effect on the environment; and
WHEREAS, if recommended policies or actions progress to a “project” level further CEQA analysis will be required to address potential environmental impacts of a proposed project.
NOW, THEREFORE,
AGREEMENT
The Parties hereby set forth their understandings and actions (including the Schedule of Performance attached to this MOU as Exhibit A) required for the planning and development of a Government Center consistent with the 2015 Downtown Vibrancy Plan. The Parties agree to continue to provide staff and financial resources as mutually agreed upon and to take the actions specified in this MOU to support the implementation of strategies and actions recommended in the Downtown Vibrancy Plan for the Government Center and other County and City-owned and leased facilities located in the downtown including, but not limited to, the area, facilities and parcels identified in Exhibit B. The Parties further agree the recitals set forth above are true and correct.
I. Parking Planning Activities
Parties agree to work collaboratively toward a long-term consolidated parking solution consistent with the DVP, including a joint use parking facility (“Parking Facility”) and associated feasibility and planning activities (“Planning Activities”).
During Planning Activities, the Parties agree to:
1. Designate staff (the “Project Managers”) who will meet at least monthly to coordinate Parking Facility activities;
2. Meet regularly, no less than monthly or more frequently as necessary to coordinate the timely completion of Planning Activities to:
a. Jointly develop project goals, objectives, and actions; b. Work collaboratively to review proposals and scopes of work for requested Planning Activities; and
c. Share Project progress and expenditure reports;
3. Contribute 50% of the costs of Planning Activities as outlined in Exhibit A, and as authorized for the Parking Facility, as outlined in Exhibit C. Exhibit C may be updated and total funding increased if subsequent funding is authorized without the need for DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 2022 County-City Downtown Government Center MOU Page 4
revision to this MOU and upon mutual agreement of the Parties. The City Manager and the County Administrative Officer are specifically authorized to administratively revise Exhibit C as necessary and mutually agreed upon to address new or changed circumstances or make other revisions to implement the understandings of this MOU;
4. Individually fund staff time for the roles and responsibilities outlined in this MOU and Exhibit A – Schedule of Performance Parking Facility ;
5. Ensure that all vendor procurement activities and/or RFPs are conducted and reviewed collaboratively, fairly, and transparently, including joint input;
6. Share relevant property and environmental records, reports, and studies as they become available;
7. Bring forward any approval documents related to the Parking Facility to its respective governing body for consideration; and
8. Negotiate in good faith to determine the appropriate ownership/leasing structure and agreement for a Parking Facility, including identifying roles for the long-term management and financial support of the Parking Facility (the “Site Management Agreement”).
A. County of Monterey agrees to:
1. Devote and fund personnel and other resources as may be reasonably required to conduct Planning Activities related to the Parking Facility in coordination with the City, subject to available funding;
2. Reimburse the City upon receipt of an invoice according to County processes and as described in Exhibit C;
3. Provide other support to City necessary for the efficient completion of Planning Activities.
Such support may include, but not be limited to, scope of work development, consultant selection, review of prepared documents, provision of documents and information in the County’s possession, management of third-party contracts, processing of any necessary entitlements and permits, and other such support including participating in community engagement activities, as may be mutually agreed upon; and
4. As “Good Neighbor,” keep State Courts informed on progress of Planning Activities.
B. City of Salinas agrees to:
1. Devote and fund personnel and other resources to coordinate and lead Parking Facility Planning Activities, in collaboration with the County and other community partners, subject to available funding;
2. Submit invoices to the County for reimbursement of accrued Planning Activity expenditures according to City processes and as described in Exhibit C; DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 2022 County-City Downtown Government Center MOU Page 5
3. Develop and lead a community engagement strategy with concurrence from the County; and
4. Should the Courts choose to participate as a Parking Facility partner, negotiate with the Courts to address future parking facility needs within the Parking Facility in coordination and consultation with the County.
II. Land Use
Land use coordination efforts between the Parties will consider the Government Center’s relationship with surrounding land uses and plans and will incorporate the vision identified within the Downtown Vibrancy Plan into all future land use planning activities in the downtown. The Parties agree to coordinate on facilities master planning efforts for the Government Center that make optimal use of existing facilities for the Parties while planning for future governmental activities, functions, and spatial needs. Coordination includes, but is not limited to,
1. City conducting a facility needs and fiscal assessment for a new or renovation of Salinas City Hall facility;
2. City continuing to analyze parking demand for existing and planned uses;
3. County conducting a facility needs study and fiscal assessment for consolidating County departmental facilities at the Government Center campus; and
4. County conducting a parking demand study for existing and planned uses.
The Parties further agree to:
1. Provide mutual support and assistance for enabling the continued and expanded presence of primary State (Courts), federal, and other agency offices in the downtown to ensure the effective provision of services;
2. Explore mixed use and/or affordable housing opportunities on City and County-owned property in the downtown area;
3. Evaluate the potential reuse, preservation or replacement of County or City-owned historic buildings in the downtown; and
4. Collaborate to identify potential locations and funding sources for the provision of community open space in the downtown.
III. Mobility and Safety
The Parties shall collaborate on efforts to provide for attractive, safe, and convenient pedestrian linkages and green/open spaces between and among all government facilities, Main Street, and multi-modal transportation facilities in accordance with the Downtown Vibrancy Plan.
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IV. Other Provisions
1. The Parties agree to explore partnerships and to co-leverage funding wherever the potential exists, to fund capital improvements for buildings and infrastructure deemed to be mutually beneficial to the development of the Government Center. These may include, but are not limited to, various forms of financing, the formation of an Enhanced Infrastructure Financing District (EIFD), the formation of a Community Benefit District (CBD), and State and federal resources.
2. The Parties intend that this MOU and any subordinate documents do not constitute an entitlement for development, such development being the subject of other actions by public entities or of permits to be sought at later times. It is also the intent of the Parties that this MOU does not constitute a “project” for purposes of the California Environmental Quality Act (“CEQA”), and that any future development as may be described herein be subject to all requirements of law, including CEQA. Execution of the MOU constitutes a good faith agreement to work toward the mutual policy objectives as outlined herein, reserving for the future any specific project approvals or plans. Any specific project approvals shall become effective if and only after such applications have been considered by the City and/or County in their sole discretion following the conduct of all legally required procedures, including without limitation, all required environmental review processes and all other applicable governmental approvals.
3. The Parties agree to commence and use their best efforts to complete the actions within the projected timeframes set forth in the Schedule of Performance attached to this MOU as Exhibit A.
4. Right of Entry. The Parties and their representatives shall have full rights to enter upon the other Party’s property (the “Property”) to conduct inspections and investigations in accordance with this MOU. In connection with such entry and investigation, the Parties and their representatives shall:
a. Provide 24-hour notice to the other Party prior to entry; b. Repair and restore any damage it may cause;
c. Indemnify, defend and hold the other Party, its decision making body (Board of Supervisors or City Council) and its officers, employees and agents harmless from any and all claims, liabilities, damages, losses, expenses, costs and fees (including attorneys’ fees and costs), with the exception of any injury or death to City or County staff or their consultants which may proximately arise out of the Parties’ or their consultants’ entry upon the Property or the investigation(s) and test(s) which the Parties may conduct, arising out of the negligent or intentional acts of the Parties or dangerous conditions on the Property for which the property owner should know or have known to exist, provided, however, that this indemnity shall not apply to matters arising from the results of the Party conducting investigations, tests and inspections (e.g., this indemnity shall not apply to any diminution in value or remediation costs incurred by the property owner if the other Party’s DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 2022 County-City Downtown Government Center MOU Page 7
investigations were to discover an environmental condition that required remediation); and
d. Maintain insurance or a self-insured program with the following limits: $1 million general liability, and workers compensation insurance as statutorily required.
V. General Provisions
1. This MOU is effective from March 22, 2022, and shall remain in force until March 21, 2027, unless extended or sooner terminated by mutual consent of the Parties. The period of performance may be extended or shortened by written agreement of the Parties. The City Manager and the County Administrative Officer are specifically authorized to extend the period of performance of this MOU for up to one year. The City Council and Board of Supervisors shall approve any extension in the period of performance which exceeds one year.
2. Either Party hereto may terminate this MOU at any time by giving thirty (30) days written notice to the other Party. Upon termination, each Party shall remain responsible for reimbursement for Planning Activities as provided earlier in this document up through the effective date of termination. Documents prepared and information collected as a part of the Planning Activities shall remain the joint property of the City and County, and neither Party shall utilize said documents or information for any purpose without the express written permission of the other Party.
3. This MOU shall be reviewed by the City Council and the Board of Supervisors in January of each year following the effective date of this MOU. As part of the annual review, a written report shall be prepared by the City Manager and County Administrative Officer, or their designees, documenting the progress of this MOU. The annual review shall include a status update to the Schedule of Performance showing the completion and funding status of each action and any revisions from the previous year’s report. The annual report shall be made available to the downtown stakeholders for review and comment before the consideration of the report by either the City Council or Board of Supervisors.
4. The Schedule of Performance may be revised upon the written consent and agreement of both Parties. The City Manager and the County Administrative Officer are specifically authorized to administratively revise the Schedule of Performance as necessary to address new or changed circumstances, add, delete, or modify actions or completion dates, or make other revisions as necessary to implement the understandings of this MOU. The City Manager and County Administrative Officer shall have the right to refer any proposed revision of the Schedule of Performance to the City Council and Board of Supervisors for their consideration. The City Manager and County Administrative Officer shall inform the City Council and Board of Supervisors of any changes in the Schedule of Performance.
5. This MOU constitutes the entire agreement and understanding between the Parties, and supersedes any prior or contemporaneous agreement, or understandings, if any, with regard to the purposes of this MOU. Except as may be specifically identified within this MOU, any changes or modifications shall be accomplished by a written amendment to this MOU executed by the duly authorized representatives of the Parties.
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6. In the event of a dispute arising out of the performance of this MOU, either Party may send a written notice of dispute to the other Party. Within fifteen working days of receipt of such notice, the notified Party shall respond and agree to a meeting for the purpose of negotiating a settlement or procedure for settlement of the dispute.
7. Except as provided under “Right of Entry” in Section 1 above, the Parties shall defend, indemnify and hold each other and their respective officers, employees, and agents harmless from and against any and all liability, loss, expense, including reasonable attorney’s fees, or claims for injury or damages arising out of the performance of this MOU, but only in proportion to and to the extent such liability, loss, expense, attorney’s fees, or claims for injury or damages are caused by or result from the negligent acts or omissions or willful misconduct of their respective officers, agents, or employees.
8. Any notice to be given to the parties hereunder shall be addressed as follows (until notice of a different address is given to the Parties):
COUNTY OF MONTEREY
County Administrative Officer
168 W. Alisal St.
Salinas, CA 93901-2439
Copy: County Counsel
Housing and Community Development Department
CITY OF SALINAS
City Manager
200 Lincoln Avenue
Salinas, CA 93901
Copy: City Attorney
Community Development Department
SIGNATURES CONTINUED ON NEXT PAGE
DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 5/6/2022
5/6/2022
2022 County-City Downtown Government Center MOU Page 10
EXHIBIT A
SCHEDULE OF PERFORMANCE
PARKING FACILITY
The Parties endeavor to comply with the following schedule and milestones in relation to Planning Activities related to a Parking Facility.
Action Item Lead Party Completion Date
Assembly of existing technical studies and
fiscal analysis County
Within 60 days
following adoption of
this MOU
Coordination with Parking Facility partners
(e.g., California Superior Courts) City On-going
Development of preliminary funding strategy
for construction and operations City Spring 2022
Development of community engagement and
participation strategy for all stages of Planning
Activities
City/County Spring 2022
Development of preliminary site control
agreement(s) County Summer 2022
Confirmation of Lead Agency, determination of
final project description, and commencement of
CEQA review City/County Summer 2022
Review existing technical studies and fiscal
analysis and identify any additional technical
studies and/or fiscal analysis required for CEQA
or project financing.
City Summer 2022
Development of final draft funding strategy for
construction and operations City
Concurrent with
completion of CEQA
technical studies
DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 2022 County-City Downtown Government Center MOU Page 11 Action Item Lead Party Completion Date
Finalize design and obtain entitlements and
permits City
Within six months of
completion of CEQA
technical studies and
draft funding strategy
Preparation and certification of documentation
necessary for CEQA compliance City
Within six months of
completion of CEQA
technical studies and
draft funding strategy
Preparation of final construction, site control,
and operation agreements City
Concurrent with
certification of
documentation
necessary for CEQA
compliance
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EXHIBIT B
CITY/COUNTY-OWNED OR LEASED PROPERTY WITHIN
THE GOVERNMENT CENTER
The table below describes potential real property owned or leased (controlled) by the City and County that are within the Government Center defined by Section 5.2.2 of the Downtown Salinas Vibrancy Plan.
City/
County
Controlled
Description/
Square footage Address APN Current Use
County Surface parking
lot: 46,681 square
feet.
300
Cayuga
Street
002322018 Employee parking
County Surface Parking
Lot; west portion:
64,865 of 135,886
square feet
230
Church
Street
002235028 Employee parking
County Offices; east
portion: 71,021 of
135,886 square
feet
230
Church
Street
002235028 Open space/vacant
City-
owned;
County
long- term
lease
Offices, surface
parking: 53,151 of
148,647 square
feet leased by the
County
105/111 W.
Alisal
Street
002331010 County parking; city vehicle
parking
City Government
Offices: 105,745
square feet
200
Lincoln
Avenue
002246014 City Hall, former Police
Department, and Council
Rotunda
City Surface parking
and office: 6
parcels; 40,100
square feet
106-122
Lincoln
Avenue
002245002
-008
City employee parking
City Surface Parking:
26,785
210
Salinas
Street
pending Employee and public parking
City Surface Parking 219
Salinas
Street
002042029 Public Parking
City 23,719 square foot
parcel with office
building
65 West
Alisal
Street
002345018 Salinas Permit Center
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EXHIBIT C
FUNDING AND REIMBURSEMENT TERMS
BACKGROUND
On June 22, 2021, the County Board of Supervisors authorized $500,000 to be funded from CIP FY 21-22 (Project 8419) to match the City funding to conduct feasibility analysis and planning activities for the proposed Parking Facility.
It is recognized that periodically the County or City may authorize additional funds for the project, and it is the intent of the parties that this Exhibit C be updated administratively to reflect updated funding as periodically approved by the Board or Council.
DUTIES AND RESPONSIBILITIES
Financial Contribution to Planning Activity Costs
The Parties agree to contribute equally toward the costs associated with Planning Activities of the Parking Facility, as outlined in Exhibit A, for a total not to exceed amount of $600,000 ($300,000 each). Each party is responsible for contributing and funding staff time related to this agreement, which is in addition to the $600,000.
The County will retain its remaining allocated funds of $200,000 to directly fund its staff time, for the completion of a downtown parking needs analysis for County facilities, or other County- specific analyses or activities deemed necessary by staff. Should County determine the full amount of $200,000 is not needed for its staff time and internal analyses, the Parties may agree to each equally increase the funds available for costs associated with the Planning Activities equal to the amount remaining.
Project Status and Financial Accounting Reports
Not less than quarterly, the Parties agree to provide the other with a project status report for activities conducted and financial accounting of expenditures to include a running total of expenditures to date and forecast of anticipated expenditures for Planning Activity costs for the Parking Facility. The Parties’ respective financial accounting shall include a summary of all expenditures on Planning Activities. Expenditure summary is to include, but not limited to, a breakdown of time, individual completing the work, hourly rates, expenses, and any further information necessary.
Payment Provisions
Parties warrant that the costs charged for services under the terms of the MOU are not in excess of those charged to any other party for the same services by the same individuals.
Reimbursement of City Expenditures
City will submit invoices to the County for reimbursement of accrued expenditures for Planning Activity costs incurred by the City. All consultant invoices shall include a detailed breakdown of the time worked on each task, the individual completing the work, the hourly rates, and expenses, receipts for all materials and supplies, and any further information necessary to substantiate DocuSign Envelope ID: 816187FC-9872-4DE3-9E83-B63A4A7CDAA4 2022 County-City Downtown Government Center MOU Page 14 expenditures. County shall reimburse the City for one-half of City’s actual costs. For contracts managed by City, County shall, in addition to reimbursing actual costs, reimburse the City for its administrative overhead at a rate equal to one-half of its generally applicable administrative overhead rate, not to exceed fifteen percent (15%).
Invoices shall be submitted electronically to the County Public Works, Facilities and Parks Department via email to [email protected], with a copy to Lindsay Lerable ([email protected]) and Dave Pratt ([email protected]). County shall pay the City an amount not to exceed $300,000 for Planning Activity costs incurred by the City. County will provide reimbursement in accordance with the County’s processes upon receipt of an invoice from the City.
Reimbursement of County Expenditures
County will submit invoices to the City for reimbursement of accrued expenditures for Planning Activity costs incurred by the County. All consultant invoices shall include a detailed breakdown of the time worked on each task, the individual completing the work, the hourly rates, and expenses, receipts for all materials and supplies, and any further information necessary to substantiate expenditures. City shall reimburse the County for one-half of County’s actual costs.
For contracts managed by County, City shall, in addition to reimbursing actual costs, reimburse the County for its administrative overhead at a rate equal to one-half of its generally applicable administrative overhead rate, not to exceed fifteen percent (15%).
Invoices shall be submitted electronically to the City Economic Development Division via email to Andy Myrick at [email protected]. City shall pay the County an amount not to exceed $300,000 for Planning Activity costs incurred by the County. City will provide reimbursement in accordance with the City’s processes upon receipt of an invoice from the County.
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EXHIBIT D
SALINAS DOWNTOWN VIBRANCY PLAN
FIGURE 5-3: Catalyst Improvements Government Center
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