Agenda Packet — Salinas City Council, January 9, 2024 (part 2 of 2)

RESOLUTION NO. (N.C.S.)

A RESOLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT NOT TO EXCEED OF $140,000 BETWEEN THE CITY OF SALINAS AND

CALIFORNIA PUBLIC RELATIONS & ADVOCACY FOR PHASE II OF THE

COMMUNITY OUTREACH FOR THE NO PARKING/STREET SWEEPING SIGNAGE

PROGRAM

WHEREAS, on August 12, 2022, a Request for Proposals (RFP) for providing community outreach for a “No Parking” street sweeping signage program was advertised on the “PlanetBids” website; and

WHEREAS, one submittal was received and reviewed based on the selection criteria listed in the RFP document; and

WHEREAS, a Professional Services Agreement for Phase 1 of the education and outreach campaign was successfully negotiated, and secured with said firm;

WHEREAS, it has been determined that a continuance of community education and outreach for 2024 (Phase 2) is necessary for a successful “No Parking” street sweeping signage campaign;

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

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALINAS, that the Professional Services Agreement between the City of Salinas and California Public Relations & Advocacy LLC for Phase II of the community outreach for the No Parking/Street Sweeping Signage Program in an amount not to exceed $140,000 is hereby approved; and

BE IT FURTHER RESOLVED that the C i t y M a n a g er is hereby authorized to execute the Agreement with California Public Relations & Advocacy, a limited liability company; and

BE IT FURTHER RESOLVED that the City Manager is authorized to execute extensions and/or non-substantive modifications to the Agreement, as necessary.

PASSED AND ADOPTED this 9th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Page 2 of 2 ends

APPROVED:

Kimbley Craig, Mayor

ATTEST:

Patricia M. Barajas, City Clerk
Form: Professional Services Agreement v. January 2021

Page 1 of 20 ends

California Public Relations & Advocacy
November 2023

AGREEMENT

FOR PROFESSIONAL SERVICES

BETWEEN

THE CITY OF SALINAS AND

CALIFORNIA PUBLIC RELATIONS &

ADVOCACY

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November 2023

Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4

1. Scope of Service. ................................................................................................................. 4

2. Term; Completion Schedule. ............................................................................................... 4

3. Compensation. ..................................................................................................................... 4

4. Billing. ................................................................................................................................. 4

5. Meet & Confer. .................................................................................................................... 5

6. Additional Copies................................................................................................................. 5

7. Responsibility of Consultant. ............................................................................................... 5

8. Responsibility of City. ......................................................................................................... 5

9. Acceptance of Work Not a Release. .................................................................................... 6

10. Indemnification and Hold Harmless. ................................................................................... 6

11. Insurance. ............................................................................................................................. 6

12. Access to Records. ............................................................................................................... 6

13. Non-Assignability. ............................................................................................................... 6

14. Changes to Scope of Work. ................................................................................................. 6

15. Ownership of Documents. ................................................................................................... 7

16. Termination. ......................................................................................................................... 7

17. Compliance with Laws, Rules, and Regulations. ................................................................ 8

18. Exhibits Incorporated. .......................................................................................................... 8

19. Independent Contractor. ....................................................................................................... 8

20. Integration and Entire Agreement. ....................................................................................... 8

21. Jurisdiction and Venue. ........................................................................................................ 8

22. Severability .......................................................................................................................... 8

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

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

25. Conflict of Interest. ............................................................................................................ 10

26. Headings. ........................................................................................................................... 10

27. Attorneys’ Fees .................................................................................................................. 10

28. Non-Exclusive Agreement. ................................................................................................ 10

29. Rights and Obligations Under Agreement. ........................................................................ 10

30. Licenses.............................................................................................................................. 10

31. Counterparts. ...................................................................................................................... 10

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

33. Joint Representation. .......................................................................................................... 11

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

35. No Waiver of Rights. ......................................................................................................... 11 Exhibit A- Insurance Requirements .............................................................................................. 13 Exhibit B- Scope of Service .......................................................................................................... 16

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AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SALINAS AND CALIFORNIA PUBLIC RELATINS & ADVOCACY

This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 9th day of January 2024, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and California Public Relations & Advocacy, a limited liability company (hereinafter “Consultant”).

RECITALS

WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and

WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.

NOW, THEREFORE, City and Consultant agree as follows:

TERMS

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

2. Term; Completion Schedule. This Agreement shall commence on 9 January 2024, and shall terminate on 9 January 2025, unless extended in writing by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties and may be terminated only pursuant to the terms of this Agreement.

3. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed One hundred forty thousand dollars ($140,000).

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

Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:

(A) A brief description of services performed;
(B) The date the services were performed;
(C) The number of hours spent and by whom;
(D) A brief description of any costs incurred; and

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(E) The Consultant’s signature.

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

City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. The City shall process undisputed portion immediately.

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

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

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

8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:

(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.

(B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.

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(C) Jim Pia, Interim City Manager, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.

(D) Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.

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

10. Indemnification and Hold Harmless.

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

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

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

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

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

14. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and

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compensation, an amendment to this Agreement shall be prepared describing such changes.

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

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

16. Termination.

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

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

(2) For any reason whatsoever.

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

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

(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and

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(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.

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

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

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

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

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

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

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

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

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

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23. Notices.

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

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

With a copy to:

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

(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:

Ashley Martinez – Principal
California Public Relations & Advocacy
1180 Rosecrans Street, Ste 188
San Diego, CA 92106
(916) 212-1951
[email protected]

(C) The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.

(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

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

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

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

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

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

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

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

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

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

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

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

35. No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof.

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

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

CITY OF SALINAS

____________________________
Kimbley Craig, Mayor

APPROVED AS TO FORM:

_________________________
□ Christopher A. Callihan, City Attorney, or
□ Rhonda Combs, Assistant City Attorney

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Exhibit A- Insurance Requirements

Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.

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

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

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

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

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

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

Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.

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

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

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

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

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

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

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

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

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

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

Subcontractors
Consultant shall require and verify that all sub-consultants and/or subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Maintenance of Insurance
Maintenance of insurance by Consultant as specified shall in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.

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Exhibit B- Scope of Service

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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-008, Version: 1
City Hall Emergency Roof Repair, Project No. 8170
Approve a Resolution authorizing Contract Change Order No. 8 to F C & Sons Roofing, Inc. for the City Hall Emergency Roof Repair Project No. 8170 in the amount of $118,056.40 and authorizing the Interim City Manager to execute all necessary documents related to Contract Change Order No. 8.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 9, 2024
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PE, PLS, PUBLIC WORKS DIRECTOR
BY: JONATHAN ESTEBAN, ASSISTANT ENGINEER

ADRIANA ROBLES, PE, CFM, CITY ENGINEER
TITLE: CITY HALL EMERGENCY ROOF REPAIR, PROJECT NO. 8170

RECOMMENDED MOTION:

A motion to approve a Resolution to authorize the City Manager to execute Contract Change Order No. 8 to F C & Sons Roofing, Inc. for the City Hall Emergency Roof Repair Project No. 8170 in the amount of $ 118,056.40 and authorize the City Manager to execute all necessary documents related to Contract Change Order No. 8.

EXECUTIVE SUMMARY:

In April 2023, City Council awarded an emergency construction contract to F C & Sons Roofing, Inc. for the City Hall Emergency Roof Repair Project in the amount of $646,271.

In October 2023, City Council authorized approval of Contract Change Order No. 4 along with 20% of the new contract total for cons truction contingencies for the City Hall Emergency Roof Repair Project.

Contract Change Order No. 8 for installation of new parapet wall and new supports for the existing HVAC unit equipment and penthouse on the roof of the first floor of City Hall in the amount of $118,056.40 is above the $100,000 threshold requiring council approval, per Policy 75-1.

BACKGROUND:

On April 4, 202 3, City Council approved Resolution No. 22627 awarding a n emergency construction contract to F C & Sons Roofing , Inc. for the City Hall Emergency Roof Repair Project, CIP No. 8170 in the amount of $ 646,271. On October 10, 2023, City Council approved Resolution No. 22810 authorizing approval of Contract Change Order No. 4 in the amount of $748,122 for removal/replacement of the metal deck and authorized 20% of the new contract total or $370,332.80 for construction contingencies for the City Hall Emergency Roof Repair Project No. 8170.

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Pursuant to Department Policy 75 -1, City Council approval and authoriza tion is required for Contract Change Orders exceeding $100,000 or 10% of the original contract amount. There are enough remaining contingency funds to approve Contract Change Order No. 8 for $118,056.40.

Table 1: Construction Cost Request Breakdown
Description Contract Amount Total Contract Allocation*
Original Contract $646,271.00 $743,211.65
Change Order No. 1 $412,031.00 $1,269,962.40
Change Order No. 2 $ 22,120.00
Change Order No. 3 $ 23,120.00
Change Order No. 4 $748,122.00 $2,221,996.80
Change Order No. 5 $ 46,708.00
Change Order No. 6 $ 67,945.00
Change Order No. 7 $ 45,739.00
Change Order No. 8 $118,056.40
TOTAL $2,130,112.40
*Total Contract Allocation includes contract allocations along with construction contingencies.

CEQA CONSIDERATION:

The City of Salinas has determined that the proposed action is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15301).

STRATEGIC PLAN INITIATIVE:

This project addresses the current City Council’s Goals of Operational Efficiency and Public Safety.

DEPARTMENTAL COORDINATION:

The Public Works Department is collaborating with Legal, Administration and Finance Departments.

FISCAL AND SUSTAINABILITY IMPACT:

Funding for Change Order No. 8 is available and appropriated in 3911.50.8170-66.4000.

ATTACHMENTS:

Resolution

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

A RESOLUTION AUTHORIZING APPROVAL OF CONTRACT CHANGE ORDER NO. 8 FOR THE FOR THE CITY HALL EMERGENCY ROOF REPAIR,
PROJECT NO. 8170

WHEREAS, On April 4, 2023, City Council, pursuant to Resolution No. 22627, awarded an emergency construction contract to F C & Sons Roofing, Inc. for the City Hall Emergency Roof Repair, Project No. 8170 in the amount of $646,271.00; and

WHEREAS, On October 10, 2023, City Council approved Resolution No. 22810 authorizing approval of Contract Change Order No. 4 in the amount of $748,122.00 for removal/replacement of metal deck and authorized 20% of the new contract total or $370,332.80 for construction contingencies for the City Hall Emergency Roof Repair Project No. 8170; and

WHEREAS, Contract Change Order No. 8 for installation of new parapet wall and new supports for the existing HVAC unit equipment and penthouse on the roof in the amount of $118,056.40 is above the $100,000.00 threshold requiring council approval, per Policy 75-1; and

WHEREAS, Department Policy 75-1 (Resolution No. 21528), requires Council approval for all contract change orders above $100,000 or above 10% of the contract amount; and

WHEREAS, there are sufficient remaining contingency funds to approve Contract Change Order No. 8 for $118,056.40; and

WHEREAS, the City of Salinas has determined that the proposed action is categorically exempt from environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15301).

NOW, THEREFORE, BE IT RESOLVED that the City Council approves Contract Change Order No. 8 to F C & Sons Roofing, Inc. for the City Hall Emergency Roof Repair, Project No. 8170, in the amount of $118,056.40 and authorizes the City Manager to execute all necessary documents related to Contract Change Order No. 8; and
PASSED AND APPROVED this 9th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

2 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#24-009, Version: 1
All-Way Stop Requests Along Freedom Parkway and Sconberg Parkway Approve a Resolution establishing All-Way STOP installation at the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard.

City of Salinas Printed on 1/5/2024Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 9, 2024
DEPARTMENT: PUBLIC WORKS, TRAFFIC AND TRANSPORTATION
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: GERARDO RODRIGUEZ, ASSISTANT ENGINEER

ADRIANA ROBLES, CITY ENGINEER
TITLE: ALL-WAY STOP REQUESTS ALONG FREEDOM PARKWAY

AND SCONBERG PARKWAY

RECOMMENDED MOTION:

A motion to approve a Resolution approving the installation of All-Way STOP at the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard.

EXECUTIVE SUMMARY:

Staff received a request to evaluate the potential of establishing All-Way STOPs at four intersections:

No. Intersection Warrant Finding
1 Freedom Parkway at Padova Drive Not Satisfied
2 Freedom Parkway at Tuscany Boulevard Satisfied
3 Sconberg Parkway at Monte Bella Boulevard Satisfied
4 Sconberg Parkway and Pavia Way Not Satisfied

All-Way STOPs are considered using a combination of quantitative and qualitative measures. Two intersections, Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard satisfy qualitative All -Way STOP establishment criteria and ar e recommended for installation.

BACKGROUND:

Public Works staff received a request from residents of the Monte Bella neighborhood to evaluate the potential of installing All -Way STOP controls at the intersection s of Freedom Parkway & Padova Drive, Freedom Parkway & Tuscany Boulevard, Sconberg Parkway & Monte Bella Boulevard, and Sconberg Parkway & Pavia Way. Staff performed a traffic analysis that utilizes a combination of quantitative and qualitative criteria recommended by the California – Manual on Traffic Control Devices (MUTCD).

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The quantitative criteria measure the volume of traffic (vehicles, pedestrians, and bicycle) entering the intersection from all approaches to measure delays experienced by side -street traffic trying to enter the intersection over a typical 8-hour day. Volumes are analyzed to determine if at least 300 vehicles per hour on the major street impact a combination of at least 200 vehicles, bicyclist, or pedestrians on the minor street. On streets where vehicles speeds exceed 40 M PH the suggested volumes threshold is analyzed at 70% or 80% of the normal threshold requirement. While none of the intersections satisfied the 8 -hour quantitative criteria, the Freedom Parkway & Tuscany Boulevard and Sconberg Parkway & Monte Bella Boulevard intersections satisfy the quantitative criteria for several hours of the day . The other two intersections do not satisfy any of the quantitative measures.

Qualitative criteria consider other contributing factors that may satisfy establishment criteria using engineering judgement. Factors analyzed in the qualitative analysis include elements such as land use generators (schools, business districts, etc.), geo metric conditions (blind curves, unimproved shoulders, etc.), and corridor planning measures (interim solution while larger, long -term improvements are being considered). When considering the qualitative criteria, both the Freedom Parkway & Tuscany Boulev ard and Sconberg Parkway & Monte Bella Boulevard intersections satisfy these criteria given the intersections proximities to schools, Monte Bella Elementary School and Bardin Elementary School, respectively. In addition, both intersections were identified as part of the Salinas Safe Routes to School planning efforts which identified intersections of concern by parents surveyed.

Traffic and Transportation Commission
The recommendation of establishing All -Way STOP installation at the intersections of Freedo m Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard was presented to the Traffic and Transportation Commission at its December 7, 2023, meeting. The Commission voted (5-0) recommending City Council approve a Resolution to establish All-Way STOPs at the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard.

CEQA CONSIDERATION:

The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15301, Class 1(c)) because the actions consist of operation and minor alteration of an existing City street.

STRATEGIC PLAN INITIATIVE:

The proposed all way STOP at the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard improves walking conditions and safe routes to school. This action supports the Council of “Public Safety” and “Infrastructure and Environmental Sustainability”.

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DEPARTMENTAL COORDINATION:

Street signs are installed and maintained by Public Works staff. Traffic enforcement is coordinated with the Police Department.

FISCAL AND SUSTAINABILITY IMPACT:

The estimated labor and material cost to install the multi-way stop at the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard is estimated to be $9,500 using the existing job order contract for traffic control devices. Alternatively, if the City’s maintenance staff is able to perform this work, depending on their availability, the cost will be significantly reduced. Sufficient funding is available in the current streets maintenance budget to fund the proposed all way stop.

ATTACHMENTS:

Resolution
Attachment 1: Freedom Pkwy at Tuscany Blvd Stop Warrant Analysis Attachment 2: Sconberg Pkwy at Monte Bella Blvd Stop Warrant Analysis Attachment 3: Freedom Pkwy at Padova Dr Stop Warrant Analysis Attachment 4: Sconberg Pkwy at Pavia Way Stop Warrant Analysis Attachment 5: All-Way Stop Signs Plan

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

A RESOLUTION OF THE SALINAS CITY COUNCIL APPROVING THE

INSTALLATION OF ALL WAY STOP AT THE INTERSECTIONS OF

FREEDOM PARKWAY AT TUSCANY BOULEVARD AND

SCONBERG PARKWAY AT MONTE BELLA BOULEVARD

WHEREAS, the City received a request to evaluate the intersections of Freedom Parkway & Padova Drive, Freedom Parkway & Tuscany Boulevard, Sconberg Parkway & Monte Bella Boulevard, and Sconberg Parkway & Pavia Way for installation of all way STOPs; and

WHEREAS, staff conducted a traffic analysis and determined Freedom Parkway & Tuscany Boulevard and Sconberg Parkway & Monte Bella Boulevard intersections satisfy the quantitative establishment criteria for several hours of the day and the other two intersections do not satisfy any of the quantitative measures; and

WHEREAS, the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard also meet qualitative criteria given their proximity to schools and being identified as areas of concern by parents in the Salinas Safe Routes to School surveys ; and

WHEREAS, on December 7, 20 23, the Traffic and Transportation Commission voted unanimously ( 5-0) to recommend City Council approve a Resolution approving the All -Way STOP installation at the intersections of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard; and

WHEREAS, the City of Salinas has determined that the implementing the parking restrictions is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15301, Class 1). The project consists of the operation, repair, or minor alteration of public streets involving no expansion of use. There would be no significant effect on the environment.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby approves the installation of all way All-Way STOP at the intersection s of Freedom Parkway at Tuscany Boulevard and Sconberg Parkway at Monte Bella Boulevard.

PASSED AND APPROVED this 9th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

2 APPROVED:

________________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
STOP Sign Applications(Two-Way STOP & Multi-Way STOP) Analysis Major Street:

Minor Street:

Study Dates:

A. Traffic Volume
vph
B. Restricted View
Yes X No
C. Crash History
Crash(es)
Crash(es)
A. Traffic Volume
Yes X No
B. Crash History
Crash(es)
C. Minimum Volumes
C1
C2
C3
85-th % Speed: MPH
85-th % Speed: MPH
Veh Peds Bikes Total Veh Peds Bikes Total Veh Peds Bikes Total Veh Peds Bikes Total 160 160 0 0 260 260 129 129
161 161 0 0 245 245 113 113
94 94 0 0 253 253 133 133
148 148 0 0 279 279 232 232
96 96 0 0 259 259 213 213
156 156 0 0 299 299 275 275
97 97 0 0 250 250 150 150
84 84 0 0 233 233 115 115
7390
14:00-15:00
15:00-16:00
43 Freedom Parkway E/O Tuscany Boulevard
Freedom Parkway W/O Tuscany Boulevard
Northbound
Tuscany Boulevard
Southbound
None
43 Satisfied
Yes
No
No
Interim Multi-Way STOP?
Freedom Parkway
Tuscany Boulevard
8/22/2023-8/24/2023
Two-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.06 02) Multi-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.07 04) The vehicular traffic volumes on the through street or highway exceed 6,000 vehicles per day(vph). 7:00-8:00
Hours
Eastbound
Freedom Parkway
Westbound
Freedom Parkway
0 The combined vehicular, pedestrian, and bicycle volume entering the intersection from the minor street approaches (total of both approaches) averages at least 200 units per hours for the same 8 hours, with an average delay to minor-street vehicular traffic of at least 30 seconds per vehicle during the highest hour; but If the 85th-percentile approach speed of the major-street traffic exceeds 40 mph, the minimum vehicular volumes warrants are 70 percent of the values provided in Items 1 and 2. 8:00-9:00
0 Restricted View Exist
Where traffic control signals are justified, the multi-way stop is an interim measure that can be installed quickly to control traffic while arrangements are being made for the installation of the traffic control signal.

Has a traffic signal warrant study been conducted for this intersection that recommends installation of a traffic control signal? If no, Interim Multi-Way Stop not recommended Five or more reported crashes in a 12-month period that are susceptible to correction by a multi-way stop installation. Such crashes include right-turn and left-turn collisions as well as right-angle collisions.

The vehicular volume entering the intersection from the major street approaches (total of both approaches) averages at least 300 vehicles per hour for any 8 hours of an average day; and A restricted view exists that requires road users to stop in order to adequately observe conflicting traffic on the through street or highway; and/or Crash records indicate that three or more crashes that are susceptible to correction by the installation of a STOP sign have been reported within a 12-month period, or that five or more such crashes have been reported within a 2-year period. (Such crashes include right-angle collisions involving road users on the minor-street approach failing to yield the right-of-way to traffic on the through street or Reason: No Parking on Major Street
0 16:00-17:00
17:00-18:00
18:00-19:00
19:00-20:00
D. 80% Minimum Values
B. Yes X No
C.1 X Yes No
C.2 Yes X No
A.

Yes X No
B.

X Yes No
C.

Yes X No
D.

Yes X No
X Yes No
X Yes No
Engineer's Stamp
Multi-Way STOP Analysis - Prepared by
Jaime O. Rodriguez, T.E. - Traffic Patterns
Where no single criterion is satisfied, but where Criteria B, C.1, and C.2 are all satisfied to 80 percent of the minimum values. Criterion C.3 is excluded from this condition.

Crash history satisfied to 80% of the minimum values
Major Street satisfied to 80% of the minimum values
Minor Street satisfied to 80% of the minimum values
Factors to consider in the Engineering Study for Multi-Way STOP Installation (Section 2B.07 05) Other criteria that may be considered in an engineering study include:

This Multi-Way STOP Analysis was determined in accordance with the recommendations set forth by the California - Manual on Uniform Traffic Control Devices (MUTCD) - 2014 Edition - Rev 7 and was conducted by a Registed Traffic Engineer within the State of California and Approved by the City of Salinas.

Multi-Way Stop Installation recommended at Freedom Parkway and Tuscany Boulevard Major Street(Functional Class):

Minor Street(Functional Class):

Would the installation of a Multi-Way STOP improve traffic operational characteristics of the intersection or the major street?
Locations near or adjacent to intersection that generate pedestrians.

Can the installation of the Multi-Way Stop eliminate vehicle/pedestrian conflicts at the intersection?
Locations where a road user, after stopping, cannot see conflicting traffic and is not able to negotiate the intersection unless conflicting cross traffic is also required to stop; and An intersection of two residential neighborhood collector (through) streets of similar design and operating characteristics where multi-way stop control would improve traffic operational characteristics of the intersection

STOP Sign Applications(Two-Way STOP & Multi-Way STOP) Analysis Major Street:

Minor Street:

Study Dates:

A. Traffic Volume
vph
B. Restricted View
Yes X No
C. Crash History
Crash(es)
Crash(es)
A. Traffic Volume
Yes X No
B. Crash History
Crash(es)
C. Minimum Volumes
C.1
C.2
C.3
85-th % Speed: MPH
85-th % Speed: MPH
Veh Peds Bikes Total Veh Peds Bikes Total Veh Peds Bikes Total Veh Peds Bikes Total 147 147 204 204 236 236 0 0
173 173 142 142 158 158 0 0
265 265 102 102 111 111 0 0
373 373 122 122 127 127 0 0
388 388 88 88 87 87 0 0
444 444 86 86 100 100 0 0
250 250 72 72 83 83 0 0
190 190 64 64 76 76 0 0
7017
50 Satisfied
No
No
No
Interim Multi-Way STOP?
Eastbound
Monte Bella Boulevard
Westbound
None
0 The combined vehicular, pedestrian, and bicycle volume entering the intersection from the minor street approaches (total of both approaches) averages at least 200 units per hours for the same 8 hours, with an average delay to minor-street vehicular traffic of at least 30 seconds per vehicle during the highest hour; but If the 85th-percentile approach speed of the major-street traffic exceeds 40 mph, the minimum vehicular volumes warrants are 70 percent of the values provided in Items 1 and 2. 14:00-15:00
Northbound
Sconberg Parkway
Southbound
Sconberg Parkway
No Parking on Major Street
0 Sconberg Parkway
Monte Bella Boulevard
40 16:00-17:00
17:00-18:00
18:00-19:00
19:00-20:00
8/22/2023-8/24/2023
Two-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.06 02) Multi-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.07 04) The vehicular traffic volumes on the through street or highway exceed 6,000 vehicles per day(vph). 7:00-8:00
Hours
8:00-9:00
0 Restricted View Exist
Where traffic control signals are justified, the multi-way stop is an interim measure that can be installed quickly to control traffic while arrangements are being made for the installation of the traffic control signal.

Has a traffic signal warrant study been conducted for this intersection that recommends installation of a traffic control signal? If no, Interim Multi-Way Stop not recommended Five or more reported crashes in a 12-month period that are susceptible to correction by a multi-way stop installation. Such crashes include right-turn and left-turn collisions as well as right-angle collisions.

The vehicular volume entering the intersection from the major street approaches (total of both approaches) averages at least 300 vehicles per hour for any 8 hours of an average day; and A restricted view exists that requires road users to stop in order to adequately observe conflicting traffic on the through street or highway; and/or Crash records indicate that three or more crashes that are susceptible to correction by the installation of a STOP sign have been reported within a 12-month period, or that five or more such crashes have been reported within a 2-year period. (Such crashes include right-angle collisions involving road users on the minor-street approach failing to yield the right-of-way to traffic on the through street or Reason:

Sconberg Parkway N/O Monte Bella Boulevard
Sconberg Parkway S/O Monte Bella Boulevard
15:00-16:00
D. 80% Minimum Values
B. Yes X No
C.1 X Yes No
C.2 Yes X No
A.

Yes X No
B.

X Yes No
C.

Yes X No
D.

Yes X No
X Yes No
X Yes No
Engineer's Stamp
Multi-Way STOP Analysis - Prepared by
Jaime O. Rodriguez, T.E. - Traffic Patterns
Monte Bella Elementary School
Bardin Elementary School
Other criteria that may be considered in an engineering study include:

Are left-turn collisions occurring?
The need for control left-turn conflicts;
The need to control vehicle/pedestrian conflicts near locations that generate high pedestrian volumes;
Major Arterial
Residential
Are there sight lines issues?
Where no single criterion is satisfied, but where Criteria B, C.1, and C.2 are all satisfied to 80 percent of the minimum values. Criterion C.3 is excluded from this condition.

Crash history satisfied to 80% of the minimum values
Major Street satisfied to 80% of the minimum values
Minor Street satisfied to 80% of the minimum values
Factors to consider in the Engineering Study for Multi-Way STOP Installation (Section 2B.07 05) Locations
Multi-Way Stop Installation recommended at Sconberg Parkway and Monte Bella Boulevard CERTIFICATION:

Major Street(Functional Class):

Minor Street(Functional Class):

Would the installation of a Multi-Way STOP improve traffic operational characteristics of the intersection or the major street?
Locations near or adjacent to intersection that generate pedestrians.

STOP Sign Applications(Two-Way STOP & Multi-Way STOP) Analysis Major Street:

Minor Street:

Study Dates:

Has a traffic signal warrant study been conducted for this intersection that recommends installation of a traffic control signal? If no, Interim Multi-Way Stop not recommended Five or more reported crashes in a 12-month period that are susceptible to correction by a multi-way stop installation. Such crashes include right-turn and left-turn collisions as well as right-angle collisions.

The vehicular volume entering the intersection from the major street approaches (total of both approaches) averages at least 300 vehicles per hour for any 8 hours of an average day; and Crash records indicate that three or more crashes that are susceptible to correction by the installation of a STOP sign have been reported within a 12-month period, or that five or more such crashes have been reported within a 2-year period. (Such crashes include right-angle collisions involving road users on the minor-street approach failing to yield the right-of-way to traffic on the through street or Freedom Parkway E/O Padova Drive
Freedom Parkway W/O Padova Drive
0 Interim Multi-Way STOP?
Eastbound
Freedom Parkway
Freedom Parkway
Padova Drive
8/22/2023-8/24/2023
Two-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.06 02) Multi-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.07 04) The vehicular traffic volumes on the through street or highway exceed 6,000 vehicles per day(vph).

Restricted View ExistA restricted view exists that requires road users to stop in order to adequately observe conflicting traffic on the through street or highway; and/or Reason: No Parking on Major Street
Northbound
Padova Drive
Southbound
None
57 Satisfied
No
No
No
4878
8:00-9:00
14:00-15:00
43 D. 80% Minimum Values
B. Yes X No
C.1 Yes X No
C.2 Yes X No
A.

Yes X No
B.

Yes X No
C.

Yes X No
D.

Yes X No
Yes X No
Yes X No
Engineer's Stamp
Multi-Way STOP Analysis - Prepared by
Jaime O. Rodriguez, T.E. - Traffic Patterns
Multi-Way Stop Installation recommended at Freedom Parkway and Padova Drive Major Street(Functional Class):

Minor Street(Functional Class):

Would the installation of a Multi-Way STOP improve traffic operational characteristics of the intersection or the major street?
Locations near or adjacent to intersection that generate pedestrians.

Are left-turn collisions occurring?
The need for control left-turn conflicts;
The need to control vehicle/pedestrian conflicts near locations that generate high pedestrian volumes;
Minor Arterial
Residential
Are there sight lines issues?
Locations
Monte Bella Community Park
Monte Bella Elementary School
Where no single criterion is satisfied, but where Criteria B, C.1, and C.2 are all satisfied to 80 percent of the minimum values. Criterion C.3 is excluded from this condition.

STOP Sign Applications(Two-Way STOP & Multi-Way STOP) Analysis Major Street:

Minor Street:

Study Dates:

The vehicular volume entering the intersection from the major street approaches (total of both approaches) averages at least 300 vehicles per hour for any 8 hours of an average day; and Sconberg Parkway N/O Pavia Way
Sconberg Parkway S/O Pavia Way
Interim Multi-Way STOP?
Sconberg Parkway
Pavia Way
8/22/2023-8/24/2023
Two-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.06 02) Multi-Way STOP Installation Criteria based on Guidance from California MUTCD 2014 Edition - Rev 7 (Section 2B.07 04) The vehicular traffic volumes on the through street or highway exceed 6,000 vehicles per day(vph). 0 Restricted View Exist
Where traffic control signals are justified, the multi-way stop is an interim measure that can be installed quickly to control traffic while arrangements are being made for the installation of the traffic control signal.

Has a traffic signal warrant study been conducted for this intersection that recommends installation of a traffic control signal? If no, Interim Multi-Way Stop not recommended A restricted view exists that requires road users to stop in order to adequately observe conflicting traffic on the through street or highway; and/or Crash records indicate that three or more crashes that are susceptible to correction by the installation of a STOP sign have been reported within a 12-month period, or that five or more such crashes have been reported within a 2-year period. (Such crashes include right-angle collisions involving road users on the minor-street approach failing to yield the right-of-way to traffic on the through street or Reason: No Parking on Major Street
0 Northbound
Sconberg Parkway
Southbound
Sconberg Parkway
20 Satisfied
No
No
No
3448
8:00-9:00
14:00-15:00
44 D. 80% Minimum Values
B. Yes X No
C.1 Yes X No
C.2 Yes X No
A.

Yes X No
B.

Yes X No
C.

Yes X No
D.

Yes X No
Yes X No
Yes X No
Engineer's Stamp
Multi-Way STOP Analysis - Prepared by
Jaime O. Rodriguez, T.E. - Traffic Patterns
Multi-Way Stop Installation recommended at Sconberg Parkway and Pavia Way Major Street(Functional Class):

Minor Street(Functional Class):

Would the installation of a Multi-Way STOP improve traffic operational characteristics of the intersection or the major street?
Locations near or adjacent to intersection that generate pedestrians.

Are left-turn collisions occurring?
The need for control left-turn conflicts;
The need to control vehicle/pedestrian conflicts near locations that generate high pedestrian volumes;
Major Arterial
Residential
Are there sight lines issues?
Locations
Monte Bella Community Park
Monte Bella Elementary School
Where no single criterion is satisfied, but where Criteria B, C.1, and C.2 are all satisfied to 80 percent of the minimum values. Criterion C.3 is excluded from this condition.

LL72 SF
R1-1ISP
R1-1ISRLR3-7(R),R3-7bP

SALINASCALIFORNIA
N
R3-7(R),R3-7bPISP
PM"STOP" TYP

PMREMOVE LEFT/RIGHT TURN ARROW
R1-1ISP
R1-1ISP
LL32 SF

SALINASCALIFORNIA N
PM"STOP" TYP
LEGENDSHEET NOTESSHEET TOTALISPSIGN CHARTSTOPR1-1
DESIGNED BY:CAD BY:PROJECT ENGINEER / MANAGER:CONSTRUCTION INSPECTION SUPERVISOR:CITY OF SALINASDATEREVISIONAPP.PROJ. NO(S)SHEET NO.FILE NO.OFFile Path:I:\PWTra\All-Way Stop Requests\Monte Bella\Stop Sign Exhibits.dwgPlot By:GERARDO RODRIGUEZPlot Date:12/4/2023 10:07 AM PUBLIC WORKS DEPARTMENTDATEAPPROVED FOR CONSTRUCTION:

REGISTERED PROFESSIONAL ENGINEERSTATE OF CALIFORNIACIVILNO. 69142ADRIANA ROBLES ADRIANA ROBLES, P.E.CITY ENGINEER DATEREVIEWED BY:

REGISTERED PROFESSIONAL ENGINEERSTATE OF CALIFORNIATRAFFICNO. 2284 JAIME O. RODRIGUEZ JAIME O. RODRIGUEZ, T.E.TRAFFIC ENGINEERGERARDO RODRIGUEZGERARDO RODRIGUEZTBDADRIANA ROBLES, P.E.ALL WAY STOP INSTALLATIONTITLE SHEET91201-1 0030'60'SCALE: 1"=30'
RLISITEM DESCRIPTIONQTYUNIT OFMEASURER3-7bPEXCEPTBICYCLESR3-7(R)RIGHT LANEMUSTTURN RIGHT City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-010, Version: 1
California Interagency Council on Homelessness Encampment Resolution Fund Program Grant Award Acceptance
Approve a Resolution authorizing the Interim City Manager or designee to accept a California Interagency Council on Homelessness Encampment Resolution Fund grant award in the amount of $8,081,101.25 and execute all required Agreements and related documents necessary to implement the grant program; and authorizing an additional appropriation of $8,081,101.25 to the ERF fund and the establishment of a corresponding ERF2 revenue budget.

City of Salinas Printed on 1/5/2024Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 9, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT

FROM: LISA BRINTON, COMMUNITY DEVELOPMENT DIRECTOR

THROUGH: ROD POWELL, ASSISTANT DIRECTOR

BY: KAYSHLA LOPEZ, HOMELESS SERVICES MANAGER

JACQUELINE SMITH, HOMELESS SERVICE MANAGER

TITLE: CALIFORNIA INTERAGENCY COUNCIL ON HOMELESSNESS

ENCAMPMENT RESOLUTION FUND PROGRAM GRANT

AWARD ACCEPTANCE

RECOMMENDED MOTION:

A motion to approve a Resolution authorizing:

1) the Interim City Manager or designee to accept a California Interagency Council on Homelessness Encampment Resolution Fund grant award in the amount of $8,081,101.25 and execute all required Agreements and related documents necessary to implement the grant program; and
2) an additional appropriation of $8,081,101.25 to the ERF fund and the establishment of a corresponding ERF2 revenue budget.

EXECUTIVE SUMMARY:

Homelessness is a serious ongoing problem in the City of Salinas and throughout Monterey County. In response to this continuing crisis, t he Community Development Department (CDD) continues to seek opportunities and propose innovative solutions to sustain and expand the City’s homeless services platform. On December 1, 2022, the California Interagency Council on Homelessness (CAL ICH ) released a second Notice of Funding Availability (NOFA) for the Encampment Resolution Funding (ERF) Program announcing $237,301,738 to fund actionable, person-centered proposals from local jurisdictions to resolve the experience of unsheltered homelessness for people residing in encampments. In response, CDD staff formulated and submitted a comprehensive ERF grant application on June 30, 2023, and on September 12, 2023, received subsequent notice of an $8,081,101.25 award. The proposed resolution will authorize the City’s acceptance and allocation of newly awarded ERF grant funds.

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BACKGROUND:

On December 1, 2022, the California Interagency Council on Homelessness (CAL ICH) released a second Notice of Funding Availability (NOFA) for the Encampment Resolution Fund (ERF) seeking proposals from local jurisdictions to fund projects that provide services to address the immediate crisis of experiencing unsheltered homelessness in encampments . Total funding available for award through the competitive ERF NOFA was $237,031,738.

In response to the NOFA, CDD staff built upon lessons learned from its prior CAL ICH ERF award, to formulate another comprehensive proposal by engaging additional collaborative agencies and also proposing an expansion of its existing homeless services. The submitted proposal included a new strategy to expand the Salinas Outreach and Response Team (SORT) and the addition of a broader direct services component within the City’s homelessness platform. Planned services include the direct provision of emergency shelter, case management, housing navigation, and rapid rehousing services. The proposal is inclusive of $4,230,225 million in leveraged funds focused on the Upper Carr Lake encampment.

On June 30, 2023, CDD staff submitted its proposal in accordance with the plann ed NOFA timeline. On September 12, 2023, the City received formal notice from Cal ICH advising its intent to award full funding of the City’s application.

Acceptance of this Cal ICH ERF award will allow the City to expand and fund services from the following collaborative agencies:

 Coalition of Homeless Services Providers ($117,451)
 Catholic Charities of the Diocese of the Monterey Peninsula ($908,745)  Valley Health Associates ($530,633)
 City of Salinas Emergency Motel Program and SORT ($1,923,616)

DEPARMENT COORDINATION:

The City’s Cal ICH ERF grant p rograms are administered by the City’s CDD – Housing & Community Development Division. CDD has and will continue to coordinate with the City’s Finance and Legal Departments to ensure full regulatory compliance and the efficient, full disbursement of funds.

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:

Acceptance of this Cal ICH ERF grant program award will assist the City in serving unhoused residents living in the Upper Carr Lake encampment move towards immediate and permanent Page | 3
housing options and supports the City of Salinas Strategic Plan 2022 -2025 Goal and Strategy of Housing/Affordable Housing.

FISCAL AND SUSTAINABILITY IMPACT:

There are no costs associated with accepting and appropriating the grant funds.

ATTACHMENTS:

Resolution
Cal ICH Notice of Intent to Fund

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

A RESOLUTION OF THE CITY COUNCIL AUTHORIZING ACCEPTNCE OF A

CALIFORNIA INTERAGENCY COUNCIL ON HOMELESSNESS ENCAMPMENT RESOLUTION FUND GRANT AWARD IN THE AMOUNT OF $8,081,101.25,

EXECUTION OF ALL REQUIRED AGREEMENTS AND RELATED DOCUMENTS

NECESSARY TO IMPLEMENT THE PROGRAM, AN ADDITIONAL
APPROPRIATION OF $8,081,101.25 TO THE CAL ICH ERF FUND, AND ESTABLISHMENT OF A CORRESPONDING ERF2 REVENUE BUDGET
WHEREAS, the California Interagency Council on Homelessness (CAL ICH) released a second Notice of Funding Availability (NOFA) for the Encampment Resolution Fund (ERF) with a total allocation of $237,031,738; and
WHEREAS, the ERF Program seeks to fund local projects that provide services to address the immediate crisis of experiencing unsheltered homelessness in encampments, to support people living in encampments onto paths to safe and stable housing and result in sustainable restoration of public spaces to their intended uses while safeguarding the needs of unhoused people seeking shelter; and
WHEREAS, the City of Salinas Community Development Department submitted a proposal on June 30, 2023, requesting $8,081,101.25, to address homeless encampments and the environmental impacts specifically at the Carr Lake encampment; and

WHEREAS, on September 12, 2023, the California Interagency Council on Homelessness ERF Program provided the City with an “Notice of Intent to Award” funds in the amount of $8,081,101.25 to the City of Salinas; and
NOW, THEREFORE, BE IT RESOLVED that the City Council approves a Resolution authorizing the Interim City Manager or designee to accept a grant award in the amount $8,081,101.25 from the California Interagency Council on Homelessness Encampment Resolution Fund Program and execute all required Agreements and related documents necessary to implement the program; and

BE IT FURTHER RESOLVED that the City Council authorizes an a dditional appropriation of $8,081,101.25 to the ERF fund and the establishment of a corresponding ERF2 revenue budget.

PASSED AND APPROVED this 9th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
2 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#24-011, Version: 1
Delegation of Authority - Industrial Disability Retirement Determinations Approve a Resolution authorizing the Interim City Manager to make and certify determinations of disability to the California Public Employees Retirement System (CalPERS) under Government Code Section 21152(c), 21156, and 21173.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: January 9, 2024
DEPARTMENT: HUMAN RESOURCES DEPARTMENT
FROM: Marina Horta-Gallegos, Human Resources Director TITLE: DELEGATION OF AUTHORITY TO MAKE DETERMINATIONS

REGARDING INDUSTRIAL DISABILITY RETIREMENT

RECOMMENDED MOTION:

A motion to approve a resolution authorizing the Interim City Manager to make and certify determinations of disability to the California Public Employees Retirement System (CalPERS) under Government Code Section 21152(c), 21156, and 21173.

EXECUTIVE SUMMARY:

A resolution is required by CalPERS to delegate authority to the Interim City Manager under Government Code Section 21152( c), 21156, and 21173 to make and certify determinations of disability to CalPERS.

BACKGROUND:

Assistant City Manager Jim Pia was appointed Interim City Manager effective October 4, 2023, with the separation of the former City Manager. The City Council appointed Jim Pia as the Interim City Manager until the appointment of a new City Manager is made.

The City is required to make and certify determinations of industrial disability for public safety members who qualify for industrial disability retirement , based on competent medical opinion, under the City’s contractual obligation with CalPERS. The City Manager was delegated authority by Resolution No. 18395 to make industrial disability determinations under section 2115 2(c) of the Government Code on behalf of the City of Salinas.

With the appointment of Assistant City Manager Jim Pia to the Interim City Manager position while the City Council recruits for the appointment of the next City Manager, CalPERS requires a resolution delegating authority to make and certify determinations of industrial disability to CalPERS by Interim City Manager Jim Pia, effective October 4, 2023, and until the appointment of the next City Manager is made.

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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:

The Human Resources Department coordinated with the Administration Department in this effort.

FISCAL AND SUSTAINABILITY IMPACT:

There is no fiscal impact to adopting the resolution.

ATTACHMENTS:

Resolution

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

RESOLUTION APPROVING DELEGATION OF AUTHORITY TO INTERIM CITY

MANAGER FOR DETERMINATIONS OF INDUSTRIAL DISABILITY RETIREMENT

WHEREAS, the City of Salinas (herein referred to as Agency) is a contracting agency of the California Public Employees’ Retirement System;

WHEREAS, the Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purposes of the Public Employee’s Retirement Law and such disability is “industrial” within the meaning of such law;

WHEREAS, the City of Salinas previously delegated authority under Government Code section 21152(c) to make such determinations to the position of City Manager;

WHEREAS, the City Council appointed the Assistant City Manager effective October 4, 2023 to the interim position of City Manager during the recruitment for the permanent City Manager position;

WHEREAS, the City Council has determined upon legal advice that it may delegate authority under Government Code section 21173 to make such determinations to the incumbent of the position of Interim City Manager.

BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that it does hereby delegate to the incumbent of the position of Interim City Manager, authority to make application on behalf of the Agency pursuant to Government Code section 21152 (c) for disability retirement of all employees;

BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF SALINAS that it does hereby delegate to the incumbent of the position of Interim City Manager under Government Code section 21156 and whether such disability is industrial and to certify such determinations and all other necessary information to the California Public Employees’ Retirement System.

PASSED AND APPROVED this 9th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Page | 4
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#24-012, Version: 1
AT&T Services Inc., 445 Airport Blvd. Facility Lease at the Salinas Municipal Airport Approve a Resolution authorizing the Interim City Manager to execute a Facility Lease Agreement between the City of Salinas and AT&T Services Inc., for property located at 445 Airport Blvd. Facility Lease (Salinas Municipal Airport).

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CITY OF SALINAS

CITY COUNCIL STAFF REPORT

DATE: JANUARY 9, 2024
DEPARTMENT: PUBLIC WORKS, AIRPORT DIVISION
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR

BY: BRETT J. GODOWN, C.M., C.A.E., AIRPORT MANAGER

TITLE: AT&T SERVICES INC., 445 AIRPORT BLVD. FACILITY LEASE

AT THE SALINAS MUNICIPAL AIRPORT

RECOMMENDED MOTION:

A motion to approve a resolution approving a lease agreement with AT&T Services Inc., for the facility located at 445 Airport Blvd. Facility Lease at the Salinas Municipal Airport and authorizing the Mayor to execute the lease agreement on behalf of the City.

EXECUTIVE SUMMARY:

AT&T Services Inc. (AT&T) first entered into a facility lease between the City of Salinas for 445 Airport Blvd. in 2007. The lease expired on November 30, 2023. AT&T has been a good tenant, and the City of Salinas and AT&T have negotiated a 15 -year agreement to continue AT&T’s tenancy. Airport Staff recommends that the City Council approve the accompanying resolution and lease with the associated terms and conditions.

BACKGROUND:

AT&T is a long-term tenant of 445 Airport Blvd., located at the Salinas Municipal Airport. Their 2007 lease expire d on November 30, 2023. AT&T desires to enter into a new lease to continue their tenancy. AT&T has been a good tenant, and the City Staff has negotiated the lease accompanying this report.

AT&T used the services of CBRE, a nationally recognized firm, to negotiate the lease. A primary concern for Airport Sponsors when negotiating leases is the Federal Aviation Administration (FAA) compliance measures such as the FAA Airport Compliance Manual - Order 5190.6B Airports and Federal Grant Assurances. Order 5190. 6B sets forth policies and procedures for the FAA Airport Compliance Program. It provides basic guidance in interpreting and administering airport sponsors' various continuing commitments to the United States as a condition for the grant of federal funds or the conveyance of federal property for airport purposes. The Order discusses the obligations outlined in the standard airport sponsor assurances, addresses the application of the assurances in the operation of public -use airports, and facilitates interpretation of the assurances.

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The lease accompanying this report has been reviewed against [grant assurances ]: Federal Requirements, Preserving Rights and Powers, Consistency with Local Plans, Consideration of Local Interest, Consultation with Users, Operations and Maintenance, Compatible Land Use, Economic Nondiscrimination, [no] Exclusive Rights, Fee and Rental Structure, Airport Revenues, Airport Layout Plan, Civil Rights, and Disadvantaged Business Enterprises.

At the December 21, 2023, meeting, the Airport Commission recommended approval of the item, thereby advancing the AT&T Services Inc., 445 Airport Blvd . lease at the Salinas Municipal Airport, to the City Council for final approval.

LEASE TERMS & CONDITIONS:

Proposed Transaction Terms:

 Premise: Approximately 6,356 square feet of building Approximately 29,000 square feet of land
 Uses: AT&T shall have the right to use the Leased Premises to conduct AT&T's business.

The historic uses include office space and storage space in conjunction with a communications company’s field office. Storage of vehicles and equipment.

 Original Term: five years.

 Options to Extend: two five-year options.

 Total Lease duration: 15 years.

 Rental Escalations: 3.5% starting on the 3rd year.

 Original Term Rental Schedule
From To Monthly Rent Annual Rent
12/1/2023 11/30/2024 $7,945.00 $95,340.00
12/1/2024 11/30/2025 $7,945.00 $95,340.00
12/1/2025 11/30/2026 $8,223.08 $98,676.90
12/1/2026 11/30/2027 $8,510.88 $102,130.59
12/1/2027 11/30/2028 $8,808.76 $105,705.16

 Maintenance and Repair: The maintenance and repair of the Premise is primarily the responsibility of AT&T. The City is responsible for the structural components of the building, such as the roof, foundation, and load-bearing components in the walls and ceiling. The City is also responsible for the maintenance of the green space areas.

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CEQA/NEPA CONSIDERATION:

The City of Salinas has determined that the proposed action is statutorily exempt as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15268(a)).

STRATEGIC PLAN INITIATIVE:

This action supports the City Council’s Strategic Plan Goals for Economic Development.

DEPARTMENTAL COORDINATION:

The Lease Agreement was reviewed as to form by the City Attorney.

FISCAL AND SUSTAINABILITY IMPACT:

AT&T will pay the Airport Enterprise Fund an annual base rent of $95,340 following the approval of the Lease Amendment.

ATTACHMENTS:

AT&T Services Inc., 445 Airport Blvd. Facility Lease

Resolution - AT&T Services Inc., 445 Airport Blvd. Facility Lease

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

A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF THE AT&T SERVICES INC., 445 AIRPORT BLVD. FACILITY LEASE AT THE SALINAS

MUNICIPAL AIRPORT

WHEREAS, in September of 2007 , by way of Resolution No. 19 305, AT&T Services Inc. (AT&T) entered into a long-term facility lease between the City of Salinas for 445 Airport Boulevard at the Salinas Municipal Airport; and

WHEREAS, the 2007 lease expired, and the City and AT&T desire to enter a new long- term facility lease for 445 Airport Blvd.; and

WHEREAS, the City and AT&T have negotiated a new facility lease agreement for AT&T’s use and occupancy of the Property; and

WHEREAS, pursuant to FAA Order 5190.6B and FAA Grant Assurance 25 – Airport Revenues, the revenue generated from this lease will be expended on the operation, maintenance, and capital development of the airport; and

WHEREAS, on September 28, 2021, the Salinas City Council adopted Resolution 22219 declaring the parcel of land containing th e Property to be Exempt Surplus Land as defined i n Government Code Section 54221; and

WHEREAS, Salinas Municipal Code Section 37 -10.070 allows the City Council to allow land owned or leased by the City of Salinas to be used in a manner that it finds to be proper and in the public interest; and

WHEREAS, Salinas Municipal Co de Section 12 -13 allows the City Council to approve leasing any City -owned real property if the Counci l determines that the real property interest leased will not be necessary for municipal purposes during the lease term.

WHEREAS, the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Because the proposed action and this matter have no potential to cause any effect on the environment or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines . Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby finds and determines that the above recitals and accompan ying Staff Report are true and correct and have served as the basis, in part, for the actions of the City Council set forth below; and

BE IT FURTH ER RESOLVED THAT the City Council hereby finds that the use of the property in accordance with the terms of the Lease is proper and in the public interest; and

BE IT FURTHER RESOLVED THAT the City Council hereby determines that the real property interest conveyed by the Lease will not be necessary for municipal purposes during the term of the Lease; and

BE IT FURTHER RESOLVED THAT the Mayor of Salinas is hereby authorized and directed, for and on behalf of the City of Salin as, to e xecute the attached AT&T Services Inc., Facility Lease for 445 Airport Blvd. at the Salinas Municipal Airport.

PASSED AND APPROVED this 9th day of January 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

APPROVED:

___________________________
Kimbley Craig, Mayor

ATTEST:

_____________________________
Patricia Barajas, City Clerk

1378\19\2688697.1

LEASE AGREEMENT

BETWEEN

THE CITY OF SALINAS AND
AT&T SERVICES, INC.

TABLE OF CONTENTS

Page

i
1378\19\2688697.1
ARTICLE 1. Definitions and Exhibits................................................................................ 1 Section 1.1 Definitions....................................................................................... 1 Section 1.2 Exhibits. .......................................................................................... 2 ARTICLE 2. Lease Provisions ........................................................................................... 3 Section 2.1 Premises. ......................................................................................... 3 Section 2.2 Use of the Premises. ........................................................................ 3 Section 2.3 Term. ............................................................................................... 3 Section 2.4 Rent. ................................................................................................ 4 Section 2.5 Security Deposit. ............................................................................. 5 Section 2.6 Taxes. .............................................................................................. 5 ARTICLE 3. Airport Use Restrictions................................................................................ 5 Section 3.1 Lessor's Reservations. ..................................................................... 5 Section 3.2 City of Salinas Regulations. ............................................................ 6 Section 3.3 Federal Requirements. .................................................................... 6 ARTICLE 4. Other Covenants ............................................................................................ 9 Section 4.1 Maintenance and Repair. ................................................................ 9 Section 4.2 Alterations. .................................................................................... 10 Section 4.3 Signs. ............................................................................................. 10 Section 4.4 Liens and Claims........................................................................... 10 Section 4.5 Right to Assign or Transfer........................................................... 11 Section 4.6 Right to Enter. ............................................................................... 12 Section 4.7 Abandonment. ............................................................................... 13 Section 4.8 Recording of Lease Forbidden. ..................................................... 13 Section 4.9 Licenses and Permits..................................................................... 13 ARTICLE 5. Risk Management ....................................................................................... 13 Section 5.1 Indemnification. ............................................................................ 13 Section 5.2 Insurance. ...................................................................................... 14 Section 5.3 Reporting Damage. ....................................................................... 14 Section 5.4 Disclaimer and Release; ADA Notice. ......................................... 14 Section 5.5 Hazardous Substances. .................................................................. 15 Section 5.6 Survival. ........................................................................................ 17

TABLE OF CONTENTS

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1378\19\2688697.1
ARTICLE 6. Default and Termination ............................................................................. 17 Section 6.1 Termination for Nonpayment of Rent by Lessee. ......................... 17 Section 6.2 Other Events of Default by Lessee. .............................................. 17 Section 6.3 Default by Lessor. ......................................................................... 17 Section 6.4 Future Expansion. ......................................................................... 18 Section 6.5 Force Majeure. .............................................................................. 18 Section 6.6 Insolvency. .................................................................................... 18 Section 6.7 Casualty......................................................................................... 19 Section 6.8 Eminent Domain. .......................................................................... 20 Section 6.9 Remedies Cumulative. .................................................................. 20 Section 6.10 Lease Termination ........................................................................ 20 ARTICLE 7. Miscellaneous Provisions ............................................................................ 21 Section 7.1 Notice. ........................................................................................... 21 Section 7.2 Venue and Applicable Law. .......................................................... 22 Section 7.3 Time. ............................................................................................. 22 Section 7.4 Third Party Beneficiaries. ............................................................. 22 Section 7.5 Integration; Amendment. .............................................................. 22 Section 7.6 Waiver. .......................................................................................... 22 Section 7.7 Interpretation. ................................................................................ 22 Section 7.8 Attorneys' Fees and Costs. ............................................................ 23 Section 7.9 Heirs, Successors, and Assigns. .................................................... 23 Section 7.10 Conflicts of Interest....................................................................... 23 Section 7.11 Relationship Between the Parties.................................................. 23 Section 7.12 Brokers. ......................................................................................... 23 Section 7.13 Multiple Originals. ........................................................................ 23 Section 7.14 Signatures. ..................................................................................... 23 Section 7.15 Termination of Previous Lease. .................................................... 24

1 1378\19\2688697.1

LEASE AGREEMENT

THIS LEASE AGREEMENT (“Lease”) is entered into this 1st day of February, 2024 (the "Effective Date") by and between the City of Salinas, a California charter city and municipal corporation of the State of California (“Lessor”), and AT&T Services, Inc., a Delaware corporation ("Lessee”).

WITNESSETH:

A. Lessor owns and operates the Salinas Municipal Airport in the City of Salinas, State of California; and

B. Lessee desires to lease a portion of Airport for the uses permitted and upon the terms and conditions herein.

NOW, THEREFORE, in consideration of the foregoing, the mutual promises and covenants set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:

ARTICLE 1. DEFINITIONS AND EXHIBITS
Section 1.1 Definitions.

The following capitalized terms have the meanings set forth in this Section 1.1 whenever used in this Agreement unless otherwise provided:
(a) "Additional Improvements" has the meaning given in Exhibit D. (b) "Airport" means the Salinas Municipal Airport in the City of Salinas, State of California.
(c) "Base Rent" has the meaning given in Section 2.4.
(d) "Building" has the meaning given in Section 2.1.
(e) “Cancellation Date” has the meaning given in Section 2.3(c). (f) “Cancellation Fee” has the meaning given in Section 2.3(c). (g) "City Code" has the meaning given in Section 3.2(b). (h) "Claims" has the meaning given in Section 5.1.
(i) “Clean and in Good Condition” has the meaning given in Section 6.9. (j) “Commercial Property” means property that is offered for rent or lease to persons operating, or intending to operate, a place of public accommodation as defined in Section 202 of Chapter 2 of Part 2 of Title 24 of the California Code of Regulations, or a facility

2 1378\19\2688697.1
to which the general public is invited, at those premises and has the meaning given in Section

5.4. (k) "Event of Default" means any material breach of this Lease beyond applicable notice and cure periods.
(l) “Extended Term” or “First Extended” has the meaning given in Section

2.3(b).
(m) "FAA" means the Federal Aviation Administration.
(n) "Land Use Plan" has the meaning given in Section 3.2(a). (o) "Lease" means this Agreement, as set forth in the opening paragraph. (p) "Lessee" means AT&T Services, Inc., a Delaware corporation, as set forth in the opening paragraph.
(q) “Lessee Released and Indemnified Parties" means Lessee and its directors, officers, employees, agents, representatives, volunteers, and assigns and as set forth in Section

5.1(b).
(r) "Lessor" means the City of Salinas, a California charter city and municipal corporation, as set forth in the opening paragraph.
(s) "Lessor Released and Indemnified Parties" means Lessor and its elected and appointed officials, officers, employees, representatives, volunteers, and agents and as set forth in Section 5.1(a).
(t) "Original Term" has the meaning given in Section 2.3(a). (u) "Part 21" has the meaning given in Section 3.3(c)(1). (v) "Part 77" has the meaning given in Section 3.3(d) and Title 14 Aeronautics and Space, Chapter I, Subchapter E, Part 77 – Safe Efficient Use, and Preservation of the Navigable Airspace.
(w) "Premises" means the Building leased to Lessee pursuant to Section 2.1. (x) "Rules" is defined in Section 3.2(a).

Section 1.2 Exhibits.

The following exhibits are attached to this Lease and are incorporated into it by this reference; provided, however, that any conflict between an exhibit and the main body of this Lease will be construed in favor of the latter:

Exhibit A Legal Description of the Premises
Exhibit B Depiction of the Premises
Exhibit C Permitted Uses of the Premises

3 1378\19\2688697.1
Exhibit D Description of the Lessee Improvements
Exhibit E Insurance Requirements
Exhibit F Rental Schedule

ARTICLE 2. LEASE PROVISIONS
Section 2.1 Premises.
(a) Demise of the Premises. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, approximately 6,356 square feet of building space in the building (“Building”) located at 445 Airport Boulevard, Salinas, CA 93905 (the "Premises").

Additionally, the Premises includes an adjacent parking area consisting of approximately 38 parking spaces. The Premises is described more particularly in Exhibit A and Exhibit B.

Section 2.2 Use of the Premises.

The Premises will be used only for the purposes described in Exhibit C. The Premises may not be used for any other purpose without Lessor's written authorization, in Lessor's sole discretion. Lessee may, at no additional rent, use a portion of the Premises, including the roof, to install, operate and maintain telecommunications antennae, satellite dishes or microwave, radio or other telecommunications equipment. Such installation shall be subject to the approval of the appropriate governing agencies, including the Salinas Planning Commission and the Salinas City Council. In the event Lessee determines to erect or install any telecommunications equipment on the roof portion of the Premises, Lessee shall be responsible for any improvements necessary to support the installation, operation and maintenance of any such telecommunications equipment and or any repairs to the roof caused by the installation, operation and maintenance of any such telecommunications equipment and shall also be responsible for restoring the Premises to its original condition at the expiration of its tenancy. Upon prior written approval of Lessor, which approval shall not be unreasonably withheld, conditioned or delayed, Lessee may bring in fiber optic services to the Premises.

Section 2.3 Term.
(a) Term. Except as otherwise specifically set forth in this Section, the initial term of this Lease shall be for a period of five (5) years commencing on the Effective Date of February 1, 2024, and ending January 31, 2029 (the “Original Term”), unless sooner terminated in the manner and under the conditions herein provided. Rent due pursuant to Section 2.4 begins upon the Effective Date, which is the commencement of the Original Term. (b) Extension Options. Provided Lessee is not in default under this Lease beyond any applicable notice and cure periods, Lessee may elect to renew this Lease for up to two (2) five (5) year periods (the “First Extended Term” or “Second Extended Term”) by giving City written notice of each such election not less than six (6) months prior to the expiration of the then current term, as may have previously been extended. If Lessee elects to renew, the First Extended Term and the Second Extended Term of the Lease, except as otherwise specifically set forth herein, shall be on the same terms and conditions as set forth herein, except that there shall be no option to extend beyond the Second Extended Term and Rent shall be calculated as provided in Section 2 of this Lease.

4 1378\19\2688697.1
(c) Cancellation Option. Lessee shall have the right to cancel this Lease following the last day of the thirty-sixth (36th) month (the “Cancellation Date”) following the Effective Date provided; however, Lessee provides City not less than nine (9) months prior written notice and pays a cancellation Fee, as defined herein. The “Cancellation Fee” shall be equal to three (3) months of the then current Base Rent. The Cancellation Fee shall be due and payable thirty (30) days prior to the Cancellation Date.

Section 2.4 Rent.
(a) Time and Place of Payments. Commencing on the Effective Date, Lessee shall pay Lessor Base Rent for the use and occupancy of the Premises on the first day of each calendar month throughout the Original Term and any Extended Term exercised by Lessee, without deduction, offset, prior notice or demand, except as otherwise set forth in this Lease.

Checks will be made payable to the City of Salinas, and will be delivered to:

City of Salinas
Office of the Finance Director, Attn: Airport Fund
200 Lincoln Avenue
Salinas, California 93901

The place and time of payment may be changed at any time by the Lessor upon thirty (30) days’ written notice to Lessee. Lessee assumes all risk of loss and responsibility for late payment charges.
(b) Amount of Rent.
(1) Base Rent. The monthly rate for the Premises for the first year of the Original Term equals Seven Thousand Nine Hundred Forty Five Dollars and No/100 ($7,945.00) per month (“Base Rent”). Base Rent and any additional rent required herein are collectively referred to as “Rent.”
(2) Utilities. Lessee shall arrange to have furnished all utilities, janitorial services, and trash removal and shall pay directly to such person or entity providing such utilities and services during the Original Term and any Extension Terms of this Lease exercised by Lessee. Such utilities and services shall not be included in Rent and shall be paid directly by Lessee to the applicable utility provider.
(3) Rent Increases. Annual rent increases are set forth on the Rental Schedule attached hereto as Exhibit F.
(c) Delinquent Rent. Rent is due on the first day of each month. Rent will be considered delinquent if it is not paid within ten (10) days after written notice from Lessor that the Rent payment is past due. The parties agree that Lessee's failure to pay rent before it becomes delinquent will cause Lessor to suffer losses or damages, including but not limited to transactions charges, collections costs, and the loss of use of funds, which would be difficult to predict and calculate in advance. To compensate for such losses, Lessee will pay a late fee equal to ten percent (10%) of the amount of unpaid rent that is due and owing at the time the rent became delinquent, which the parties agree represents a reasonable estimate of Lessor's damages.

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(d) Holdover Rent. In the event Lessee fails to surrender the Premises upon the expiration or earlier termination of this Lease, such continued occupancy shall be on a month-to- month holdover basis, subject to all other terms and provisions of this Lease with the exception of the Rent payable, which shall be equal to one hundred twenty-five percent (125%) of the last Base Rent amount payable prior to the expiration of the then-current term. This holdover rental amount shall be Lessor's exclusive right and remedy against Lessee and shall be deemed to cover all liabilities, obligations, damages, or charges that may be incurred by Lessor because of a holdover by Lessee. The foregoing shall not in any way limit any summary process rights available to Lessor pursuant to law.

Section 2.5 Security Deposit.

There will be no security deposit; however, at the expiration of this Lease, or any earlier termination, Lessee will return the Premises to Lessor in comparable or better condition and repair as it existed as of the Effective Date, normal wear and tear, damage from casualty, condemnation and any Lessor maintenance and repair obligations excepted.

Section 2.6 Taxes.
(a) Throughout the Original Term and any Extended Term exercised by Lessee, Lessee shall pay before delinquency all taxes and assessments imposed on any personal property or trade fixtures belonging to Lessee located at the Premises. In addition, Lessee will pay all applicable possessory interest tax that may be assessed or levied upon the Premises (“Possessory Interest Tax”), and any interest of Lessee therein, for the full term of this Lease.

ARTICLE 3.AIRPORT USE RESTRICTIONS
Section 3.1 Lessor's Reservations.
(a) Utilities. Lessor reserves the right, upon reasonable prior notice to Lessee, to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, stormwater sewers, pipelines, manholes, and connections; water, oil, and gas pipelines; telephone, telegraph and electric power lines; and the appliances and appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, under, and along any and all portions of the Premises. No right reserved by Lessor in this Subsection shall be so exercised by Lessor or any third party as to interfere unreasonably with Lessee’s permitted use or operations hereunder or to impair the security or any secured creditor of Lessee. Lessor further agrees that rights granted to third parties by reason of this clause shall contain provisions (i) prohibiting such third parties from unreasonably interfering with Lessee’s permitted use or operations hereunder or impairing the security of any secured creditor of Lessee, and (ii) requiring that the Premises will be restored as nearly as practicable to its original condition upon the completion of any construction. Lessor further agrees that should the exercise of these rights temporarily interfere with the use of any and all of the Premises by Lessee, the Rent and other charges due hereunder shall be reduced in proportion to the interference with Lessee’s use of the Premises. (b) Intentionally Deleted.

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(c) Other Federal Requirements. Lessee agrees that Lessee's use of the Premises, including any initial construction, all future construction, and any maintenance, repair, or modification of the Premises, will comply with all applicable Federal Aviation Regulations or other applicable federal statutes, regulations, or rules affecting airports or aviation as may now be in force or that may be hereafter adopted by any federal agency or instrumentality. This Subsection will be construed broadly to ensure compliance with applicable federal requirements.

Lessor covenants that Lessee’s use of the Premises is not in violation of any Federal Aviation Regulations, the Rules, or the Land Use Plan, and if Lessee’s permitted use under the Lease is ever prohibited by any Federal Aviation Regulations, the Rules, or the Land Use Plan, Lessee may terminate this Lease upon written notice to Lessor. (d) Intentionally Deleted.
(e) Airport Development. The City reserves the right to further develop, improve, and or promote the airport as it sees fit, regardless of the desires or views of Lessee, and without interference or hindrance. Lessee shall not have any expectation of or receive any rental abatement, refund, or reimbursement for loss of access to non-exclusive areas of the airport, such as the runways, taxiways, ramps, terminal, or airport. Tenant further understands that from time to time, the airport hosts community events at the airport that either promote aviation and/or the airport in the local community.

Section 3.2 City of Salinas Regulations.
(a) Airport Rules and Land Use Plan Incorporated. The Salinas Municipal Airport Rules and Regulations (the "Rules") and the Salinas Municipal Airport Land Use Plan (the "Land Use Plan"), as those documents may be amended or superseded from time to time, are incorporated into this Lease by this reference. Lessee will comply fully with the Rules to the extent they apply to Lessee’s operations in the Premises, and Lessee's use of the Premises will be consistent with the Land Use Plan.
(b) City of Salinas Municipal Code. Lessee agrees to comply with applicable provisions of the City of Salinas Municipal Code (the "City Code"), including but not limited to Chapter 4 (Public Property) and Chapter 37 (Zoning). Lessor agrees that the Premises are compliant with such provisions as of the date of this Lease. (c) Other Applicable Laws, Rules, and Regulations. Lessee further agrees to comply with all other applicable laws, rules, and regulations, for the use of the Premises, including any rules and regulations established by the Salinas City Council, the Salinas Airport Commission, and the Salinas Airport Manager.

Section 3.3 Federal Requirements.
(a) Subordination to Federal Agreements. This Lease is subordinate to the provisions and requirements of any existing or future agreement between Lessor and the United States of America, relative to the development, operation, or maintenance of the Airport.

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(b) Non-Exclusive Right. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of 49 U.S.C. sections 40103 (e) and 47107(a)(4). (c) Nondiscrimination.
(1) Lessee for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree that: no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the Premises; that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; that the Lessee shall use the Premises in compliance with all other requirements imposed by or pursuant to 49 C.F.R. Part 21 - Nondiscrimination in Federally Assisted Programs of the Department of Transportation – Effectuation of Title VI of the Civil Rights Act of 1964; 49 CFR Part 23 - Participation of Disadvantaged Business Enterprise in Airport Concessions; 49 CFR Part 26 - Participation By Disadvantaged Business Enterprises In Department Of Transportation Financial Assistance Programs and as said Regulations may be amended. (2) Lessee will furnish services on a reasonable and not unjustly discriminatory basis to all users and charge reasonable and not unjustly discriminatory prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers.
(3) Lessee assures that it will comply with pertinent statutes, Executive Orders and such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, age or handicap be excluded from participating in any activity conducted with or benefiting from Federal assistance. This provision obligates Lessee or its transferee for the period during which Federal assistance is extended to the airport program, except where Federal assistance is to provide, or is in the form of personal property or real property or interest therein or structures or improvements thereon. In these cases, the provision obligates the party or any transferee for the longer of the following periods: (a) the period during which the property is used by the sponsor or any transferee for a purpose for which Federal assistance is extended, or for another purpose involving the provision of similar services or benefits; or (b) the period during which the airport sponsor or any transferee retains ownership or possession of the property. In the case of contractors, this provision binds the contractors from the bid solicitation period through the completion of the contract. (d) Height Restrictions. Lessee by accepting this Lease expressly agrees for itself, its successors and assigns that it will not erect nor permit the erection of any structure or building nor permit object of natural growth or other obstruction on the land leased hereunder above a height as determined by the application of the requirements of 14 C.F.R. Part 77. In the event the aforesaid covenants are breached, Lessor reserves the right to enter upon the land hereunder and to remove the offending structure or object or cut the offending natural growth, all of which shall be at the expense of Lessee.

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(e) FAA Form 7460-1, Notice of Construction or Alteration. Lessee agrees to comply with the notification and review requirements of 14 C.F.R. Part 77 in the event future construction of a building is planned for the Premises or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises. This requires the submission of FAA Form 7460-1, Notice of Construction or Alteration to the FAA. (f) Interference. Lessee by accepting this Lease agrees for itself, its successors and assigns that it will not make use of the Premises in any manner which might interfere with the landing and taking off of aircraft or otherwise constitute a hazard. In the event the aforesaid covenant is breached, Lessor reserves the right to enter upon the Premises hereby Leased and cause the abatement of such interference at the expense of Lessee. (g) Right of Flight. There is reserved to Lessor, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through said airspace or landing at, taking off from, or operating on the airport premises. (h) Development of Landing Area. Lessor reserves the right to further develop or improve the landing area of the airport as it sees fit, regardless of the desires or views of Lessee and without interference or hindrance. If Lessee's use of and/or access to the Premises is at any time materially and adversely affected by such rights and activities of Lessor, Lessee has the right to either (i) abate Rent until the Premises is no longer materially and adversely affected or (ii) terminate this Lease upon written notice to Lessor. (i) Security. Lessee will conform to airport and Federal Aviation Administration safety and security rules and regulations regarding use of the airport operations area including runways, taxiways, aircraft aprons by vehicles, employees, customers, visitors, etc. in order to prevent security breaches and avoid aircraft incursions and vehicle/pedestrian deviations; will complete and pass airfield safe driving instruction program when required by the airport; and will be subject to penalties as prescribed by the airport for violations of the airport safety and security requirements.
(j) Facility Repairs. Lessor reserves the right but shall not be obligated to Lessee to maintain and keep in repair the landing area of the airport and all publicly owned facilities of the airport, together with the right to direct and control all activities of the (lessee, licensee, permittee, etc.) in this regard.
(k) War or National Emergency. This Lease and all the provisions of it are subject to whatever right the United States of America has affecting the control, operation, regulation, and taking over of the Airport or the exclusive or non-exclusive use of the Airport by the United States of America during the time of war or national emergency. If Lessee's use of and/or access to the Premises is at any time materially and adversely affected by such rights and activities of the United States Government, Lessee has the right to either (i) abate Rent until the Premises is no longer materially and adversely affected or (ii) terminate this Lease upon written notice to Lessor.

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ARTICLE 4. OTHER COVENANTS
Section 4.1 Maintenance and Repair.
(a) Lessee's Maintenance and Repair Obligations. Except as otherwise specifically provided in this Lease, Lessee will be solely responsible for keeping the Premises clean and in good condition and repair, reasonable wear and tear excepted, and for all repairs and maintenance for all interior non-structural repairs and maintenance, including maintenance of telephone, plumbing and electrical systems, and all appliances, lighting, and light bulbs, flooring ceilings, walls, doors, door locks, door frames, windows, window locks, window frames and pointed surfaces. Lessee shall maintain the Premises in an aesthetically pleasing manner, including without limitation removing debris on the Premises, replacing components that are broken or worn, refreshing painted surfaces associated with the Premises, ensuring the Premises is pest free, and preventing the accumulation of stored materials outside. Subject to the waiver provisions set forth in Exhibit E, Lessee will also be responsible for all damage or destruction of the Premises caused by any acts of Lessee or by Lessee's employees, agents, licensees, contractors, or sublessees, in addition to any invitees while such invitees are in the Premises. (b) Lessor's Right to Cure; Additional Rents. If, in the opinion of Lessor’s Airport Manager, the Premises are not being properly maintained as required hereunder, the Airport Manager shall, after giving at least ten (10) days prior written notice to Lessee and after a reasonable time to cure, cause such repair and maintenance to be made. The cost of such maintenance or repair will be added to the Rent and will be due immediately upon invoice. (c) Lessor's Maintenance and Repair Obligations. Lessor shall, at its own cost and expense, be responsible to repair and maintain the roof and all structural and systems components of the Premises, and all other items not otherwise the express responsibility of Lessee as set forth above. Lessor shall also be responsible, at its sole cost and expense, for all other replacements, repairs and maintenance to the Premises, including parking lot, roof and landscaping necessary to operate the Premises for the permitted use set forth herein. Lessor shall not be responsible, however, for maintenance and repairs to the roof caused by equipment installed or erected on the roof by Lessee. Notwithstanding the foregoing to the contrary, Tenant shall procure, keep in place, and be responsible for the costs associated with procuring and maintaining an HVAC service contract for the HVAC system serving the Premises. Tenant shall be responsible for maintenance and repairs for such HVAC system. In the event maintenance above and beyond regular servicing is required, Tenant shall not be required to expend more than Two Thousand Dollars ($2,000) per calendar year or more than One Thousand Dollars ($1,000) per transaction. Any expenses above these amounts will be the responsibility of Lessor. Regular servicing and maintenance repair includes but is not limited to replacing belts, motor and accompanying components, filters, thermostats, louvers, recharging cooling systems, leaks, repairing coils.
(d) Lessor’s Compliance with Laws. Lessor shall during the Original Term and any Extension Term, at Lessor’s sole cost and expense, and not as a charge to Lessee, be responsible for placing and keeping the Premises and all building systems including, but not limited to, structural, mechanical, electrical, plumbing, HVAC, fire and safety and security systems, elevators, restrooms, roof and parking lots, in compliance with all governmental

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regulations, codes, rules, laws and orders, including without limitation environmental laws, the ADA, and state and local accessibility requirements. Lessor shall not be responsible for correcting or curing any building systems or structural features constructed or altered by Lessee as a result of any alterations made by Lessee that are not in compliance with applicable laws, regulations and standards.
(e) Services. Lessor shall, at its sole cost, provide the following services: (i) maintenance of all life safety systems in the Premises as required by applicable laws, including, without limitation, any sprinkler systems, if applicable, and (ii) a property management representative of Lessor available and on call twenty-four (24) hours per day, seven (7) days per week.
(f) Failure to Maintain or Repair. If at any time during the Original Term or any Extended Term exercised by Lessee, Lessor fails to maintain or repair the Premises in the manner required herein, Lessee may, but shall not be required, to perform such maintenance or make the repairs or replacements on behalf of Lessor. Any sums expended by Lessee in doing so shall be offset against Rent until fully recouped.

Section 4.2 Alterations.

Lessee may make alterations, improvements and additions (“Alterations”) to the Premises only upon the prior review and written approval of Lessor, which approval shall not be unreasonably withheld, conditioned or delayed. All such Alterations shall be performed in compliance with all applicable laws, rules and regulations.

Section 4.3 Signs.

Lessee may post such signs as necessary and usual in the conduct of its business in and upon the Premises. Location, size, shape, and copy of all signs will be in accordance with the City Code, and will be approved by Lessor's Airport Manager, Community Development Department, and Permit Center prior to installation. Subject to all requirements of the City Code and other applicable laws, approval will not be withheld unreasonably.

Section 4.4 Liens and Claims.
(a) Possessory Interest. Lessee acknowledges that this lease may create a real property possessory interest subject to taxation. Without limiting Lessee's obligation pursuant to this Lease to pay taxes, assessments, property-related fees, and other charges and impositions associated with the Premises, payment of real property taxes levied on such possessory interest will be the sole responsibility of Lessee, with no right of offset of rent, charges, or other fees due under this Lease.
(b) No Liens. Lessee will pay all taxes, assessments, property related fees, and other charges and impositions that Lessee is obligated to pay under this Lease before the same become delinquent. Furthermore, Lessee will not permit or suffer any liens or encumbrances to be imposed upon the Premises, the Airport, or any building or structure thereon as a result of nonpayment of any obligation of Lessee. Neither will Lessee permit or suffer any lien, claim, or demand to be imposed upon the Premises, the Airport, or any building or structure thereon,

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arising from any work of construction, repair, restoration, or maintenance at or on the Premises (except liens, claims, or demands suffered by or arising from the actions of Lessor). (c) Payment Bonds. To ensure the completion of works of improvement and to protect the Premises from liens, prior to the commencement of any work of construction, repair, restoration, or maintenance at or on the Premises, which exceeds Fifty Thousand and No/100 Dollars ($50,000.00) in cost, Lessee shall furnish to Lessor's Airport Manager, at no cost to Lessor, payment bonds approved as to form by the Lessor's City Attorney in the full amount of the total cost of the contract or contracts for the work. (d) Contesting Charges. Notwithstanding anything to the contrary in this Section, with prior notice to Lessor, Lessee may contest any tax, assessment, fee, charge, imposition, claim, or demand for payment that may become a lien on the Premises if left unpaid, provided that nonpayment is permitted only during the pendency of any contest without the foreclosure of the lien or the imposition of any fine or penalty that could become a debt of Lessor. Lessee will prosecute any contest diligently and will provide such security as may be requested by, and acceptable, to Lessor to hold Lessor and the Premises free from liability. (e) Payment by Lessor. If Lessee fails to pay any amount required by this Section to be paid by Lessee, Lessor will have the right, but not the duty, on five (5) days' prior written notice to Lessee, pay, discharge, or adjust such obligation for Lessee's benefit. On written demand from Lessor, Lessee will, as additional rent, reimburse Lessor within thirty (30) days for the full amount expended by Lessor, together with interest from the date of payment at the lesser of ten percent (10%) or the maximum amount allowed by law.

Section 4.5 Right to Assign or Transfer.

Lessee shall have the right to assign or otherwise sublet the Premises, or any portion thereof, only as specifically set forth in this Section. (a) Controlled and Related Entities; Merger and Consolidation. Lessee shall have the right the right to assign or sublease or otherwise permit occupancy of all or any portion of the Premises to any entity which is controlled by or which controls or is under the common control with Lessee or AT&T, Inc. Lessee may also transfer this Lease to any successor entity, whether by merger, consolidation or otherwise, or to any entity that purchases all or substantially all of Lessee’s assets. No such sublease or assignment shall require Lessor’s approval or consent and Lessee shall have the right to keep all of the profit, if any, therefrom. (b) Uncontrolled and Unrelated Entities. Lessee shall have the right to assign or sublease or otherwise permit the occupancy of all or any portion of the Premises to any unrelated entities only upon Lessor’s prior written approval and consent, which approval and consent shall not be unreasonably withheld, conditioned or delayed. Lessee’s unaffiliated subtenants and assignees shall have the right to assign and to sublet their portion of the Premises only upon Lessor’s prior written approval and consent, which approval and consent shall not be unreasonably withheld, conditioned or delayed. Any profits from any sublease or assignment under this Section 4.5(b) shall be split equally between Lessor and Lessee after Lessee’s costs of subletting or assigning, including commissions, legal fees, tenant improvements and other

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concessions reasonably required to induce an assignee or subtenant, have first been deducted.

Within thirty (30) days after any such assignment or subletting, Lessee shall provide Lessor with a full accounting of all its costs and expenses incurred for such subletting or assignment and shall pay Lessor any profits then due and owing.
(c) Recapture. Lessor shall have no right to recapture the Premises, or any portion thereof, in the event of any sublease or assignment permitted hereunder. (d) Limitations on Assignment or Sublease; No Release. At no time shall any sublease or assignment extend beyond the Original Term or any Extended Term(s) of this Lease exercised by Lessee. Any assignment or sublease performed hereunder shall not constitute a release of Lessee from the obligations or performance of the terms and conditions of this Lease. (e) Grounds for Withholding Consent. Except as provided in Section 4.5(a), it is agreed and understood that Lessor may withhold Lessor's consent to any assignment, transfer, sublease, or encumbrance under the following circumstances:
(1) If a proposed assignee or sublessee will not covenant in writing to keep, perform, and be bound by each and all the covenants and conditions of this Lease, and to assume any previously accrued obligations hereunder.
(2) If Lessee is in default under this Lease beyond any applicable notice and cure period at such time in any respect.
(3) If construction, repair, or demolition of improvements on the Premises is in progress, or if said construction, repair, or demolishment is incomplete. (4) Until a determination has been made by Lessor that the assignee, transferee, or other successor in interest of Lessee can pay rent and operate in accordance with the standards required by Lessor.
(5) Lessor is not satisfied, in its sole and absolute discretion, that Lessee is willing and able to discharge any proposed encumbrance. (f) Incorporation of Lease; Effect of Assignment. Any document that purports to assign, sublease, transfer, or encumber the Premises or any part thereof, will incorporate directly or by reference all provisions of this Lease unless otherwise amended in writing. Upon any assignment or transfer approved by Lessor, Lessee will be relieved of any further obligations arising under this Lease after the effective date thereof.

Section 4.6 Right to Enter.

Lessor reserves the right by its officers, employees, agents, and contractors, to enter the Premises upon prior notice at reasonable times (except in cases of emergency), (i) for any reason otherwise authorized und er this Lease, including as allowed in Section 3.1; (ii) to inspect the Premises and to ensure compliance with this Lease; (iii) in furtherance of any maintenance obligation of Lessor; (iv) to post notices, including notices of non -responsibility for improvements, alterations, or repairs if an d when Lessor desires to do so; and (v) whenever

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reasonably necessary in the interest of public health or safety. When taking such action as described above, Lessor, and its authorized officers, employees and representatives shall use all commercially reasonable efforts to protect Lessee’s property and personnel from loss and injury and to avoid interfering with the conduct of Lessee’s business.

Section 4.7 Abandonment.

Lessee may not abandon, vacate, or surrender the Premises during the Original Term or any Extended Term exercised by Lessee, except as otherwise provided in this Lease. In the case of any unauthorized abandonment coupled with the failure to pay Rent, Lessor may reenter and relet the Premises. Mere failure to operate the Premises will not constitute abandonment provided Lessee continues to maintain the Premises and pay all Rent and other obligations hereunder. Any belongings or other property left on the Premises following termination of this Lease or abandonment of the Premises will, at the option of Lessor, be deemed abandoned.

Section 4.8 Recording of Lease Forbidden.

Lessee will not record this Lease, or a memorandum or abstract of it, and will not cause or permit any other person to do the same on its behalf, without express written permission from Lessor's Airport Manager.

Section 4.9 Licenses and Permits.

Lessee has obtained or, will obtain at such time as may be necessary, each and every approval, license or permit as may be necessary to operate the Premises as contemplated hereunder.

ARTICLE 5. RISK MANAGEMENT
Section 5.1 Indemnification.

Lessee will indemnify, hold harmless, and defend (with counsel reasonably acceptable to Lessor) the City of Salinas, its elected and appointed officials, officers, employees, representatives, volunteers, and agents (hereinafter collectively the “Lessor Released and Indemnified Parties”) against any and all claims, actions, causes of action, liabilities, costs (including reasonable attorneys' fees), expenses, liens, judgments, damages, or civil or administrative fines (collectively, "Claims") to the extent caused by Lessee's use of the Premises, including, without limitation, Claims for property damage, personal injury, or wrongful death; provided, however, that Lessee's indemnification obligation does not extend to Claims arising out of the negligence or willful misconduct of the Lessor Released and Indemnified Parties.

Lessor will indemnify, hold harmless, and defend (with counsel reasonably acceptable to Lessee) Lessee, its directors, officers, employees, representatives, and agents (hereinafter collectively the “Lessee Released and Indemnified Parties”) against any and all Claims, to the extent caused by Lessor's use of the Premises, including, without limitation, Claims for property damage, personal injury, or wrongful death; provided, however, that Lessor's indemnification obligation does not extend to Claims arising out of the negligence or willful misconduct of the Lessee Released and Indemnified Parties.

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Section 5.2 Insurance.

Lessee will provide insurance coverage in types and amounts, and subject to such conditions, as specified in Exhibit E.

Section 5.3 Reporting Damage.

Lessee will report any transaction or occurrence at or relating to the Premises for which Lessor may have significant exposure to liability. Such report will be made immediately by phone at the following number: (831) 758-7214, and within five (5) business days in writing, to Lessor's Airport Manager or such other person as Lessor may designate in writing. The written report will describe the incident in reasonable detail, including a description of the nature of the damages and the identity and contact information (if available) of any witnesses. The report will also identify any insurance policy that may be available to cover the damage.

Section 5.4 Disclaimer and Release; ADA Notice.
(a) General Release.

Lessee agrees that this is a commercial lease negotiated in good faith and that it was provided a reasonable opportunity prior to entering into this Lease to inspect the Premises and to conduct such due diligence as it, in its discretion, has deemed appropriate.

Lessee accepts the Premises subject to and as provided in this Lease in its current "as-is" condition, including all faults or defects, zoning conditions, or hazardous conditions known or unknown (if any).

Notwithstanding anything to the contrary herein, this Subsection shall not be construed to hold Lessor Released and Indemnified Parties harmless for liability for the breach of this Lease or for intentional and active fraud, willful misconduct, or gross negligence. (b) Bailee Release. It is hereby agreed and understood that Lessor in no way purports to be a bailee, and is therefore not responsible in any way for any damage to the property of Lessee or Lessee's contractors, agents, employees, guests, or invitees. (c) CASp Notice. Pursuant to Civil Code Section 1938, Lessor is required to advise Lessee of the following:

A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.

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(d) CASp Inspection. Lessee and Lessor mutually agree if either party obtains a CASp inspection, the cost of the CASp Inspection will be the responsibility of the party who contracts the CASp inspector, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Premises will be shared or divided based on the context or reason of the violation. For purposes of this Section 5.4 only, Lessee is responsible for all costs and expenses of complying with federal, state and local statues, regulations and guidelines imposing standards for accessibility applicable to the Premises with respect to the following:
(1) Violations arising from Lessee’s or its sublessee’s tenancy, occupancy; business operations, or change in existing use;
(2) Violations arising from Lessee’s or its sublessee’s improvements, maintenance, or modification to the Premises.

Lessee's failure to comply with such laws shall be subject to Lessee's obligations stated within this Lease, including, without limitation, in Section 5.1.

Lessor is responsible for all costs and expenses of complying with federal, state and local statues, regulations and guidelines imposing standards for accessibility applicable to the Premises with respect to the following:
(3) Violations of access corridors up to but not including the Premises; (4) Violations within, about, on the Premises outside the responsibility of Lessee.
(e) Assumption of Risks and Waiver. Provided such risks are not caused by the actions of Lessor, its agents, employees or contractors, Lessee assumes all risks associated with the use of the Airport and Premises for aviation purposes, including, without limitation, risks (including without limitation any psychological risks) associated with noise, vibration, currents and other effects of air, illumination, and fuel consumption. Lessee expressly waives any and all claims whatsoever against the Lessor Released and Indemnified Parties arising in any manner out of the normal operation of the Airport as an airport, and waives any nuisance claim Lessee may have against another lessee or licensee of Airport property so long as the lessee or licensee is in full compliance with all applicable laws, as well as with its lease or license. Lessees within the scope of the foregoing waiver are intended beneficiaries of the waiver.

Section 5.5 Hazardous Substances.
(a) Notice of Releases. Pursuant to Health and Safety Code Section 25359.7, Lessee will notify Lessor in writing within a reasonable time after Lessee obtains knowledge of any material release of hazardous substances and of any hazardous substances that have come to be located beneath the Airport.
(b) Removal of Hazards. Prior to the expiration of this Lease, Lessee will, at its sole expense, remove all items of personal property from the Premises, including but not limited to all flammable substances and hazardous materials and wastes (as defined by state and federal

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law) at the time of expiration of this Lease to the extent released or deposited by Lessee and to the extent the presence of which violates applicable Law. Lessee will have no liability or responsibility for removal of flammable substances or hazardous materials and wastes migrating to beneath the Premises or existing prior to the Effective Date. (c) Availability of Records. Lessee shall make available for inspection to Lessor all records relating to the maintenance, release, mitigation, cleanup, and disposal of any hazardous substances on the Premises.
(d) Compliance with Applicable Laws. Lessee shall comply with all federal, state, and local laws and regulations relating to hazardous materials and wastes it uses, stores, releases, or discharges on the Premises during the term of this Lease and shall timely comply with the orders of any governmental agencies relating thereto. Lessee will be responsible for meeting current stormwater pollution prevention best management practices, as identified by Lessor in Lessor’s Storm Water Pollution Prevention Plan, as it may be amended from time to time, and to the extent same applies to Lessee’s business in the Premises. Such practices include, without limitation:
(1) Providing a labeled and stocked spill kit on site;
(2) Proper storage and labeling of hazardous substances or components of potentially hazardous substances;
(3) Providing personnel with appropriate routine spill response training; (4) Keeping repair, construction, and maintained appropriately covered from wet weather;
(5) Making appropriate use of drip pans, dry cleanup models, and spill and overflow protection; and
(6) Removing pollutants offsite as necessary or appropriate.

Lessee understands and agrees that failure to comply with such best practices may result in Lessee no longer being included by Lessor in Lessor’s participation in the general permit of the California State Water Resources Control Board concerning storm water discharges. (e) Indemnification. Without limiting Lessee's indemnification obligations in any manner under this Lease, Lessee agrees to hold harmless, indemnify, and defend the Lessor Released and Indemnified Parties for any liability to the extent caused by Lessee's breach of this Section 5.5. Notwithstanding the foregoing, Lessee shall not be in breach of this Lease as a result of the presence in the Premises of minor amounts of hazardous or toxic materials which are in compliance with all applicable laws, ordinances and regulations and are customarily used in Lessee’s normal business operations conducted from the Premises. (f) Lessor hereby represents that the Premises and the Building and the surrounding real property, comply with, and Lessor is not in violation of, and has not violated, in connection with the ownership, use, maintenance or operation of the Premises, any applicable federal, state,

17 1378\19\2688697.1
county, regional or local statutes, laws, regulations, rules, ordinances, codes, standards, orders, licenses and permits of any governmental authorities related to environmental, health or safety matters (collectively, “Environmental Laws”). Lessor shall, at its own expense, promptly observe and comply with all present and future Environmental Laws, and all regulations or standards as are or may be promulgated thereunder. The representations contained in this Section

5.5(f) shall survive the expiration or earlier of this Lease.

Section 5.6 Survival.

Lessee's duties under this Article survive the termination of this Lease.

ARTICLE 6. DEFAULT AND TERMINATION
Section 6.1 Termination for Nonpayment of Rent or Other Charges by Lessee.

Lessee's failure to pay rent or any other charge due to Lessor under this Lease within ten (10) days following written notice from Lessor that the rent or any other charge is overdue will constitute an Event of Default. Upon the occurrence of such Event of Default, Lessor will provide Lessee with written notice of the default. Unless the default is cured or waived within thirty (30) days of such notice, or unless the parties reach some other agreement in writing regarding payment of the amount due, Lessor may take whatever action under California law or in equity as may appear reasonably necessary to enforce performance or observance of any obligations, agreements, or covenants of Lessee under this Lease, including without limitation, termination of this Lease in accordance with applicable California law. In the event of such default, Lessor’s remedies shall be cumulative, and no remedy expressly provided for in this Lease, Article, or Section shall be deemed to exclude any other remedy allowed by applicable California law.

Section 6.2 Other Events of Default by Lessee.

In the case of any Event of Default under this Lease other than as described in Section

6.1, Lessee will cure the default on thirty (30) days' written notice from Lessor; provided that if a cure cannot reasonably be accomplished within such time, Lessee will commence a cure within thirty (30) days and will diligently pursue a cure as quickly as reasonably possible. If the default is not timely cured, Lessor may take whatever action at law or in equity as may appear reasonably necessary to enforce performance or observance of any obligations, agreements, or covenants of Lessee under this Lease, including without limitation, termination of this Lease in accordance with applicable California law. In the event of such default, Lessor’s remedies shall be cumulative, and no remedy expressly provided for in this Section shall be deemed to exclude any other remedy allowed by applicable California law.

Section 6.3 Default by Lessor.

If Lessor shall fail to fulfill any covenant or provision of this Lease on its part to be performed and fail to remedy such failure within thirty (30) days after Lessee shall have given Lessor written notice of such failure, then the same shall be an event of default and Lessee shall have all rights, powers and remedies available at law or equity. Without limiting the rights described above, in the event that (i) Lessor for any reason, other than by reason of any default

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by Lessee, fails to fulfill any covenant or provision of this Lease on its part to be performed, and (ii) such failure materially and adversely interferes with the conduct of Lessee’s business conducted from the Premises, as reasonably determined by Lessee, and (iii) such failure is not remedied within five (5) business days after Lessor receives actual notice of such failure, then (x) Rent shall be abated as of the date of such failure until such failure is remedied, and (y) Lessee shall have the right, but not the obligation, to remedy Lessor’s failure and charge Lessor for the reasonable cost of such remedy, which charges shall be payable by Lessor within ten ( 10) days of Lessee’s demand therefor, and upon Lessor's failure to pay the same, Lessee shall have the right to credit such cost against any future installments of Rent until such cost is fully recouped by Lessee. In addition, if such failure is not remedied within thirty (30) days after Lessee shall have given Lessor written notice of such failure, then Lessee shall have the right to terminate this Lease by giving Lessor written notice.

Section 6.4 Future Expansion.

Lessor may, upon twelve (12) months' prior written notice, terminate this Lease in the event that it requires the Premises in connection with the future expansion or operation of the Airport. Lessor will abate any rent due from Lessee accordingly and will pay Lessee the fair market value of the Tenant Improvements and any Additional Improvements constructed with Lessor's permission, less the amount of the Tenant Improvements Allowance (if any).

Section 6.5 Force Majeure.
(a) Termination by Lessor. Lessor may terminate this Lease, on such notice as is reasonable under the circumstances, due to an act of God, war, civil unrest, terrorism, the action of another government agency, or for otherwise for good cause not reasonably within Lessor's control, that would prevent Lessee's use of the Premises as contemplated under this Lease, and that gives rise to a need to regain possession of the Premises. Lessor will abate any rent due from Lessee accordingly and will pay Lessee the fair market value of the Tenant Improvements and any Additional Improvements constructed with Lessor's permission, less the amount of the Tenant Improvements Allowance (if any).
(b) Termination by Lessee. If, due to an act of God, war, civil unrest, terrorism, the action of another government agency, or for otherwise for good cause not reasonably within Lessor's control, Lessee can no longer use the Premises as contemplated under this Lease, Lessee may, upon three (3) months' written notice, terminate this Lease. Lessor will abate Lessee's rent during such period of notice and will refund any prepaid rent for the period following termination but will otherwise have no liability for any damages to Lessee.

Section 6.6 Insolvency.

Insolvency by Lessee will constitute an Event of Default under this Lease. Insolvency includes any circumstance in which Lessee has, (i) made a general assignment for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors (provided that the filing of any involuntary petition in bankruptcy against Lessee will not constitute a breach of this Lease unless and until there is an adjudication that Lessee is bankrupt); (iii) suffered the appointment of a receiver to take possession of all or

19 1378\19\2688697.1
substantially all of its assets and such appointment shall not been vacated, set aside or stayed within ninety (90) days from the date of such appointment; (iv) suffered the attachment or other judicial seizure of all or substantially all of its assets and such attachment or judicial seizure shall not been vacated, set aside or stayed within ninety (90) days from the date of such attachment or judicial seizure; (v) admitted in writing it inability to pay its debts as they come due; or (vi) made an offer of settlement, extension or composition to its creditors generally.

Section 6.7 Casualty.
(a) Lessor's Right to Restore. If the Premises are totally or partially damaged or destroyed by fire, earthquake or other casualty, Lessor will have the right but not the obligation, to restore the Premises by repair or rebuilding. Lessor will provide Lessee a written notice within thirty (30) says following the date of such damage stating whether Lessor has elected to terminate this Lease or to repair the Premises. If Lessor fails to provide such timely notice, Lessee may, upon ten (10) days' prior written notice, terminate this Lease. If Lessor provides such timely notice and elects to repair or rebuild, and thereafter is able to commence such restoration within ninety (90) days from the date of damage and can demonstrate that the Premises can be restored within 180 days, this Lease shall remain in full force and effect. If Lessor is unable to restore the Premises within this time, or if Lessor elects not to restore, then either party may terminate this Lease by giving the other written notice. Upon such election to terminate, the rent under this Lease will be due and payable only through the date of damage. If this Lease is not terminated, the rent due and payable under this Lease will be abated or reduced to the extent that the damage interferes with Lessee's reasonable use of the Premises until such portion of the Premises is restored.
(b) Lessee's Right to Terminate. Notwithstanding the provisions of Subsection (a), if the Premises are so damaged as to materially and adversely affect Lessee's ability to conduct its normal business operations, as reasonably determined by Lessee, Lessee will have the right at its option to terminate the Lease upon written notice to Lessor given within thirty (30) days following the date of such damage and rent under this Lease will be due and payable only through the date that such notice is given.
(c) No Obligation to Restore. If Lessor elects to repair and restore, Lessor will restore the Premises to substantially its condition to that prior to the occurrence or damage, provided that Lessor will not be obligated to repair or restore any alterations, additions, fixtures, equipment or improvements which have been installed by Lessee, whether or not Lessee has the right or obligation to remove the same or is required to leave the same on the Premises as of the expiration or earlier termination of this Lease, unless Lessee, in a manner satisfactory to Lessor, assures payment in full of all costs as may be incurred by Lessor in connection therewith. If there be any such alterations, fixtures, additions equipment or improvements installed by Lessee and Lessee does not assure or agree to assure payment of all cost of restoration or repair as aforesaid, Lessor will have the right to determine the manner in which the Premises will be restored so as to be substantially as the Premises existed prior to the damage occurring of this Lease, as if such alterations, additions, fixtures, equipment or improvements installed by Lessee had not then been made or installed.

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(d) No Liability for Loss or Interruption of Business. In no event will Lessor be responsible for any loss or interruption to Lessee’s business caused by damage or destruction to the Premises or during the repair or reconstruction thereof regardless of the cause of damage or destruction or the extent of insurance coverage. The parties agree that the rights and obligation of the parties in the event of damage or destruction of the Premises will be governed by this Lease.

Section 6.8 Eminent Domain.

This Lease will terminate automatically if the entire Premises are acquired by eminent domain or sale in lieu of eminent domain. All compensation for the Premises will be payable to Lessor, except that Lessee will have the right to make a claim to the public agency acquiring the property for compensation for its tenant Improvements and additional improvements, relocation expenses, and business losses, as allowed by law. If only a portion of the Premises is acquired by eminent domain or sale in lieu of eminent domain, Lessee may terminate this Lease on thirty (30) days prior written notice; provided that termination will be effective only after Lessee pays any rent, taxes, assessments, property related fees, or other charges due and owing to the date of the termination.

Section 6.9 Remedies Cumulative.

Remedies provided under this Article for any Event of Default are cumulative with any other remedy that may be available to either party under California law or in equity. For greater clarity, a termination resulting from future expansion (in compliance with Section 6.3), Force Majeure, casualty, or eminent domain will be deemed a no-fault termination, and not an Event of Default, and remedies therefor will be limited as provided in this Article.

Section 6.10 Lease Termination
At the expiration or early termination of this Lease, Lessee shall surrender the Premises to Lessor in the condition required by this Lease. Prior to surrender: (a) Lessee shall remove all Alterations installed after the Effective Date designated by Landlord to be removed and shall restore the Premises and the Building to the condition existing immediately prior to the installation of such Alterations; provided Lessee shall have no obligation to remove any Alterations or Tenant Improvements existing in the Premises as of the Effective Date except that upon sixty (60) days written notice, the Airport Manager has the discretion to require Lessee to remove the following from the Premises at the expiration or early termination of the Lease: (i) the recycling center, all personal property contained therein and the awning structure over the top thereof, and (ii) the metal fence and gate surrounding the Premises; (b) Lessee shall remove all personal property and trade fixtures from the Premises and all of its signs from the Building; and (c) Lessee shall repair all damage caused by the installation or removal of any such Alterations, Tenant Improvements, personal property, signage or trade fixtures. Lessee shall deliver the Premises to Lessor in “clean and in good condition,” subject to reasonable wear and tear (consistent with Lessee’s repair and maintenance obligations under this Lease) and damage by condemnation or casualty that is not required to be repaired by Lessee pursuant to this Lease.

Clean and good condition, for the purposes of this Lease, shall include the following: Carpets professionally steam cleaned, the floor (if applicable) to be mop clean, windows cleaned inside and out, broken, cracked, or missing windows repaired or replaced; all light fixtures and bulbs in

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operating conditions; walls are clean and free of stains, holes or other markings on wall and floors as a result of business operations are repaired; all doors are in good mechanical operating condition, the office space shall be fumigated for pests or Lessee in-lieu of fumigating the building Lessee can demonstrate through receipts participation in regular pest control; and water fixtures and valves are leak-free and operable. Electrical outlets and breaker boxes shall have appropriate covers/lids. Lessee shall be responsible for ensuring the building is surrendered to the City in a state of condition that does not present a safety hazard.

ARTICLE 7. MISCELLANEOUS PROVISIONS
Section 7.1 Notice.

Unless otherwise provided in this Lease, all notices required to be given under this Lease will be in writing and will be sent by (i) certified mail, postage prepaid, return receipt requested, (ii) express delivery or overnight courier service with a delivery receipt, (iii) personal delivery with a delivery receipt, or (iv) electronic mail with a mandatory copy delivered by one of the previous three methods, to the address of the parties shown as follows (or as either party may designate in writing):

If to Lessor: Airport Manager
Salinas Municipal Airport
30 Mortensen Avenue
Salinas, CA 93905
With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, CA 93901

If to Lessee: AT&T GRE Lease Administration
One AT&T Way
Room S1C26
Bedminster, NJ 07921

With a copy to:

AT&T Services, Inc.
208 S. Akard Street
Dallas, TX 75202
Attn: AVP Senior Legal Counsel/Real Estate

Notice will be deemed given upon delivery if personally delivered or five (5) days following deposit in the mail, if so deposited. Other methods of notice, including electronic mail, may be used to give notice if consented to in writing by the parties.

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Section 7.2 Venue and Applicable Law.

This Lease will be governed, construed, and interpreted according to the laws of the State of California, and in any legal proceeding necessary to interpret or enforce this Lease or any part of it, the parties agree to submit to the jurisdiction of, and venue in, the courts of the State of California in the County of Monterey.

Section 7.3 Time.

Time is of the essence with respect to all obligations of the parties under this Lease.

Section 7.4 Third Party Beneficiaries.

This Lease is not intended to create, nor will it be in any way interpreted to create, any third-party beneficiary rights, except as expressly and unequivocally provided herein. For greater clarity, the Lessor Released and Indemnified Parties and Lessee Released and Indemnified Parties are intended beneficiaries of those provisions making reference to the same.

Section 7.5 Integration; Amendment.

This Lease contains the entire understanding of the parties relating to the subject matter hereof and supersedes other prior and contemporaneous oral and written agreements, understandings, and representations between the parties. No amendment to this Lease will be binding unless agreed to in a writing executed by both parties.

Section 7.6 Waiver.

No waiver of any provision of this Lease will constitute a continuing waiver of that provision or a waiver of any other provision. No waiver will be binding unless duly executed in writing by both parties hereto.

Section 7.7 Interpretation.
(a) Neutral Interpretation. This Lease includes the contributions of both parties, each of which has had the opportunity to consult competent counsel, and the rule stated in Civil Code Section 1654 that an agreement be construed against its drafter will not apply to this this Lease.
(b) Severability. If any term or provision of this Lease is held by a court of jurisdiction to be invalid or unenforceable, the remaining terms of the Lease will be valid and enforceable except to the extent that the original intent of the parties would be frustrated thereby. (c) Headings. Headings contained in this Lease are for ease of reference only and will not alter the meaning of any provision hereof.
(d) Gender and Number. In this Lease, the masculine includes the feminine and neuter, and vice versa, and the singular includes the plural, and vice versa, as the context admits or requires.

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(e) Parties' Intent. Any rule of construction notwithstanding, this Lease will be construed in the manner that best effectuates its purposes to the fullest extent permitted under law.

Section 7.8 Attorneys' Fees and Costs.

Attorney's fees and costs will be available pursuant to Civil Code Section 1717 in any action between the parties arising out of this Lease. Attorney’s fees for in-house City Attorney staff, if awarded, shall be calculated at the market rate for civil litigation attorneys in the County of Monterey.

Section 7.9 Heirs, Successors, and Assigns.

This Lease, subject to the provisions as to assignment, transfer, and subleases, applies to bind the permitted representatives, heirs, executors, administrators, executors, and assigns of both parties.

Section 7.10 Conflicts of Interest.

To Lessee’s knowledge, no one affiliated with it having a prohibited conflict of interest pursuant to Government Code Section 1090 or the Political Reform Act (Government Code Section 87100, et seq.) has participated in the making of this Lease, and Lessee shall advise Lessor should it obtain knowledge of facts giving rise to such a conflict.

Section 7.11 Relationship Between the Parties.

The parties to this Lease are independent contractors, and no agency, joint venture, partnership, employee, co-employer, or similar relationship exists between them; accordingly, no party has the authority to bind the other.

Section 7.12 Brokers.

Each party represents that it has not dealt with any broker, agent, or other intermediary who is or may be entitled to be paid a commission or finder's fee in connection with this Lease, except Lessee’s broker, CBRE, Inc., whose commission shall be paid by Lessee pursuant to a separate agreement. Each party agrees to indemnify the other and hold it harmless from all liabilities arising from breach of the representations stated above.

Section 7.13 Multiple Originals.

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

Section 7.14 Signatures.

Each person executing this Lease represents and warrants that he or she is fully authorized to bind his or her respective party hereto.

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Section 7.15 Termination of Previous Lease.

Upon the Effective Commencement Date hereof, that certain Salinas Municipal Airport Lease Agreement dated September 11, 2007, by and between Lessor and Lessee, as amended by that certain First Amendment to Lease dated June 28, 2017, and that certain Option Extension Exercise Notice dated May 16, 2018 (collectively, the “Previous Lease”), shall terminate and be of no further force and effect, except for (i) issues of defaults by either party or unpaid rent and other monetary obligations due Lessor, and (ii) provisions of the Previous Lease that are specifically said to survive the expiration or earlier termination of said Previous Lease.

[Signatures on Following Page]

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IN WITNESS WHEREOF, the parties have executed this Lease effective as of the Effective Date.

CITY OF SALINAS,
a California charter city and municipal
corporation

By: _____________________________

Name: Kimbley Craig
Title: Mayor

RECOMMENDED FOR APPROVAL

By: _____________________________

Name: Brett J. Godown, C.M., C.A.E.

Title: Airport Manager

APPROVED AS TO FORM

By: _____________________________

Name: Christopher A. Callihan or Rhonda
Combs
Title: City Attorney or Assistant City
Attorney

ATTEST

By: _____________________________

Name: Patricia M. Barajas
Title: City Clerk

AT&T SERVICES, INC.,
a Delaware corporation

By: _____________________________

Name: Dean Peterson
Title: Sr Manager, Portfolio Management
& Transactions

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EXHIBIT A
Legal Description of the Premises
(None)

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EXHIBIT B
Depiction of the Premises

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Depiction of the Premises – 445 Airport Blvd, Building Layout

9.9'
115.8 sq ft 116.8 sq ft
209.2 sq ft
108 sq ft
162.8 sq ft

17.7'
580.4 sq ft
1,116.9 sq ft
500 sq ft
488 sq ft

29.5'

9.2'

11.7'

19.8'
Entrance/
Exit
Entrance/
Exit
167.9 sq ft
542 sq ft

12.6'

5.6' 7.9' 6' 8.1' 3.8'
25'

16.3' 10.8' 31.5' 13.9'

11.7'

10.5'

11.7'
162.6 sq ft368.6 sq ft 113.4 sq ft175.2 sq ft
445 Airport Blvd.

Approx Total Square Feet: 6,356

8.7'

16.6'
9'
12'

11.4'

33.7'

45.8'

8.7'
167.9 sq ft

19.3'

23.1'

12.7'

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EXHIBIT C
Permitted Uses of the Premises
A. Condition of Leased Premises. Except as otherwise provided herein, Lessee expressly acknowledges its acceptance of the Premises in its "As-Is, Where-Is" condition.

B. Zoning Classification. Lessee understands and acknowledges the Premises are located within a Public/Semipublic (PS) Zoning District and that Lessee's use and occupancy of the Premises shall be subject to those use regulations applicable to such zoning districts, in ad dition to all other applicable standards or provisions of federal, state or local law.

City covenants that Lessee's intended use as a general office space, parking area, storage and work center complies with the current Public/Semipublic (PS) Zoning District use regulations and the Land Use Plan.

C. Permitted Use. Lesse shall have the right to use the Premises for the purpose of conducting Lessee's business and any other lawful use to which the Premises may be put. Such use shall be conducted in a prudent and businesslike manner and in full compliance with all terms and conditions of this Lease and all applicable federal, state and local laws, regulations and standards.

D. Prohibited Uses. Lessee agrees not to keep or use upon the Premises, nor permit to be kept thereon, any article or commodity which would operate to increase the rate of insurance upon the Premises because of its hazardous nature unless Lessee agrees to pay any increase in any insurance premiums payable to City as a result of the placement of any article or commodity on the Premises within thirty (30) days after receipt of notice of such increase.

E. Federal Aviation Re gulations. Lessee understands and acknowledges that the Premises are located on land adjacent to and owned by the Salinas Municipal Airport.

Lessee further understands and acknowledges that the Premises and all activities conducted and services performed on the Premises are subject to federal oversight and control including, but not limited to, the airspace directly above the Premises. Lessee further understands and acknowledges that portions of the Premises are or may be subject to runway and airspace protection zones governed by federal and state authorities. Lessee will maintain the Premises, operate its equipment, and direct its personnel in airspace sensitive areas as directed by the City and under the City's control, consistent with federal and state requirements. City shall provide Lessee with notice of applicable federal and state regulations relative to runway and airspace protections zones and to Lessee's obligations under this Lease.

Other than with respect to the Premises , Lessee, its employees, and agents are expressly prohibited from accessing or gaining entry to any facilities owned or operated by either the Salinas Municipal Airport or the Federal Aviation Administration located on or near the Premises without prior consent.

Lessee shall also employ all reasonable efforts to prevent its invitees and guests from accessing or gaining entry to any such facilities.

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EXHIBIT D
Description of the Lessee Improvements

NONE

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EXHIBIT E
Insurance Requirements
A. Coverage shall be at least as broad as:

1. Commercial General Liability (“CGL”): Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits of $1,000,000 per occurrence. The general aggregate limit shall be twice the required occurrence limit. Lessee shall maintain damage to premises rented insurance on the Premises with extended coverage and debris -cleanup provisions in an amount of $1,000,000. Products and completed operations coverage is not required provided that Lessee remains a holding company and does not engage in manufacturing or providing other services.

2. Workers’ Compensation: Workers’ Compensation insurance, if applicable due to Lessee having or acquiring employees, as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of $1,000,000 per accident for bodily injury, disease per employee and policy limit.

3. Property: Property i nsurance against all risk of loss to any Lessee -owned or controlled property, including property at full replacement cost with no coinsurance penalty provision and including City of Salinas as a joint loss payee for the Improvements, Additional Improvements, and betterments in or on the Premises . Lessee self-insures this risk.

4. Automobile Liability: Insurance for any Lessee -owned or hired automobiles, and non-owned automobiles, with $1,000,000 each accident for bodily injury and property damage. (This is required if Lessee is permitted to drive vehicles on any airport airside locations.)

B. Other Insurance Provisions:

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

(1) Additional Insured Endorsement - The liability policies shall include the City of Salinas, its elected and appointed officials, officers, employees, representatives, volunteers, and agents (hereinafter collectively the “City”) as Additionally Insured vi a endorsement as respects to this Lease, except for Workers Compensation, Employer Liability and Lessee self-insured property coverage.

(2) Waiver of Subrogation Endorsement – To the extent permitted by law, Lessee hereby grants to City of Salinas a waiver of subrogation which any insurer may acquire

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against City of Salinas, its officers, officials, employees, and volunteers, from Lessee by virtue of the payment of any loss. Lessee agrees to carry any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Salinas has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by Lessee, its employees, agents, and subcontractors , except for Lessee’s self -insured property coverage where Lessee shall include The City of Salinas as joint loss payee in lieu of waiver of subrogation and such status as joint loss payee shall void the requirement for waiver of subrogation for Lessee’s self-insured property coverage

(3) Primary and Non -contributing Coverage - All required insurance policies and all renewals thereof shall be primary and non-contributing; the required insurance policy shall be primary over any other insurance, deductible, or self -insurance maintained by the City and non-contributory with respect to the City.

(4) Cancellation - Lessee will provide at least 30 days written notice to the City of Salinas, of cancellation or non-renewal of any required coverage that is not replaced, except ten (10) days shall be allowed for cancellation of non-payment of premium.

(5) Acceptability of Insurers - Insurance is to be placed with insurers eligible to conduct business in the state with a current A.M. Best rating of no less than A-: VII.

(6) Verification of Coverage – Lessee shall furnish the City with Certificates of Insurance including an additional insured endorsement and all required amendatory endorsements to the City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive Lessee’s obligation to provide them.

(7) Special Risk or Circumstances - City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances, but only to the extent that it is required of similar operations at the Airport, once per Term, with 60 days advanced written notice to Lessee.

(8) Self-Insured Retentions - Lessee shall have the right to self -insure the coverages required in subsection (a) provided that throughout the term of this Lease, (i) Lessee or its parent company maintains a tangible net worth of $100,000,000; (ii) Lessee uses an independent third party administrator to manage all claims; (iii) Lessee maintains sufficient capital reserves, as approved annually by Ernst & Young or any successor auditing company; and (iv) Lessee assumes defense obligations as required by the indemnification clause.

(9) Sublessees, Contractors, and Subcontractors - Lessee shall endeavor to require all sublessees, contractors, and subcontractors who perform work on the Premises to maintain general liability insurance in an amount of no less than $1 million combined single limit

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1378\19\2688697.1
per occurrence which complies with all o f the provisions in this Insurance section above, including providing an additional insured endorsement in favor of the City, and Lessee shall provide City with copies of such insurance certificates and endorsements at the initiation of any sublease betwee n Lessee and a sublessee as well as upon request by the City. Furthermore, before commencing or allowing commencement of any work of improvement, Lessee shall ensure that all of its employees and/or all employees of any sublessees, contractors and subcontr actors, are covered by workers’ compensation insurance.

(10) Waiver of Subrogation - Notwithstanding anything stated in this Lease to the contrary, Lessor and Lessee, for themselves and for their respective insurers, do hereby mutually release each other from any and all claims, demands, actions and causes of action that each may have or claim to have against the other (in cluding, but not in limitation of the foregoing, all rights of subrogation accruing to any insurers of the parties) for loss of or damage to the property of the other, whether real or persona l, caused by or resulting from any casualty of the type covered by fire or extended coverage insurance, based on coverage for 100% replacement cost, without regard for whether such insurance is then in effect, and notwithstanding that any such loss or damage may be due to or result from the negligence of either of the parties or their respective officers, employees or agents. Lessor and Lessee will each endeavor to secure the inclusion in or an endorsement on any fire and extended coverage insurance policy insuring their respective property (whether real or personal) provisions by which a waiver of such subrogation is effected or authorized to be effected by the insured; provided, however, that a failure by either party to secure such inclusion or endorsement as aforesaid shall not in any manner affect the provisions of the above mutual release.

E-4
1378\19\2688697.1

EXHIBIT F
Rental Schedule
Original Term
From To Monthly Rent Annual Rent
2/1/2024 1/31/2025 $7,945.00 $95,340.00
2/1/2025 1/31/2026 $7,945.00 $95,340.00
2/1/2026 1/31/2027 $8,223.08 $98,676.90
2/1/2027 1/31/2028 $8,510.88 $102,130.59
2/1/2028 1/31/2029 $8,808.76 $105,705.16

First Extended Term
From To Monthly Rent Annual Rent
2/1/2029 1/31/2030 $9,117.07 $109,404.84
2/1/2030 1/31/2031 $9,436.17 $113,234.01
2/1/2031 1/31/2032 $9,766.43 $117,197.20
2/1/2032 1/31/2033 $10,108.26 $121,299.10
2/1/2033 1/31/2034 $10,462.05 $125,544.57

Second Extended Term

From To Monthly Rent Annual Rent
2/1/2034 1/31/2035 $10,828.22 $129,938.63
2/1/2035 1/31/2036 $11,207.21 $134,486.49
2/1/2036 1/31/2037 $11,599.46 $139,193.51
2/1/2037 1/31/2038 $12,005.44 $144,065.29
2/1/2038 1/31/2039 $12,425.63 $149,107.57

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-013, Version: 1
Acceptance of California Aid to Airports Program (CAAP) Annual Credits for Eligible Projects at the Salinas Municipal Airport FY 2023-2024
Approve a Resolution accepting the appropriation of $40,000 to the Airport Enterprise Fund from the State of California, Department of Transportation, California Aid to Airports Program (CAAP) for eligible projects at the Salinas Municipal Airport; and authorize the Airport Manager and Finance Director to execute all required documentation with respect to the application for and the acceptance of State of California, Department of Transportation, California Aid to Airports Program (CAAP) funding.

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CITY OF SALINAS

CITY COUNCIL STAFF REPORT

DATE: JANUARY 9, 2024
DEPARTMENT: PUBLIC WORKS, AIRPORT DIVISION
BY: DAVID JACOBS, PUBLIC WORKS DIRECTOR
FROM: BRETT J. GODOWN, AIRPORT MANAGER, C.M., C.A.E.

TITLE: ACCEPTANCE OF CALIFORNIA AID TO AIRPORTS PROGRAM (CAAP) ANNUAL CREDITS FOR ELIGIBLE PROJECTS A T THE
SALINAS MUNICIPAL AIRPORT FY2023-2024

RECOMMENDED MOTION:

A motion for the City Council to approve a resolution:

1. Approving the acceptance and appropriation of $ 40,000 to the Airport Enterprise Fund from the State of California, Department of Transportation, California Aid to Airports Program (CAAP) for eligible projects at the Salinas Municipal Airport; and

2. Authorizing and empowering the Interim City Manager, or designee, and Finance Director to execute on behalf of the City of Salinas all required documentation with respect to the application for and the acceptance of State of California, Department of Transportation, California Aid to Airports Program (CAAP) funding.

EXECUTIVE SUMMARY:

The Salinas Municipal Airport receives an annual credit of $10,000 from the State of California, Department of Transportation, California Aid to Airports Program (CAAP) . It can accumulate a maximum of five years ($50,000) , which the City has accumulated four years ($40,000). The accompanying staff report, Resolution , and Annual Credit Disbursement Request form support staff’s recommendation for the City Council to (1) approve th e acceptance and appropriation of $40,000 to the Airport Enterprise Fund from CAAP and (2) authorize and empower the Airport Manager and Finance Director to execute on behalf of the City of Salinas all required documentation with respect to the application for the acceptance of the State of California, Department of Transportation, California Aid to Airports Program (CAAP) funding.

BACKGROUND:

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Public-use airports in the S tate of California, through the State Aeronautics Act through the California Aid to Airports Program (CAAP), receive an annual non-discretionary grant of $10,000 (annual credit).

These funds are paid to public entities upon request for expenditure on preapproved eligible projects. Eligible public entities may submit applications for the withdrawal of credited funds for expenditure on proposed projects in letter form to the department for review and approval. Credits payable under this program are credited to individual airport subaccounts annually and may be accumulated for a maximum five-year period.

The City of Salinas has accumulated four years of annual credits totaling $ 40,000. City Staff desires to withdraw and appropriate $40,000 of credited funds for expenditure to improve the airfield area by purchasing new FAA Certified airfield signage and a paint sprayer capable of and configured to spray airport [runway and taxiway] paint.

At the December 21, 2023, Airport Commission meeting, the Airport Commission recommended City Council adopt the resolution as presented.

CEQA/NEPA CONSIDERATION:

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

STRATEGIC PLAN INITIATIVE:

The project complements the City Council’s Goals of Effective and Culturally Responsive Government.

DEPARTMENTAL COORDINATION:

The process of administering these particular projects involves Public Works, Finance, and Legal Departments. The Finance Department will administer the proper disbursement of funds, and the Legal Department will review pertinent documents/contracts to ensure compliance with applicable laws and regulations.

FISCAL AND SUSTAINABILITY IMPACT:

There will be no impact on the City’s General Fund. There is no local matching component. The Airport Enterprise Fund has no financial obligation to participate in the program or accept the annual credit. The State of California Department of Transportation's California Aid to Airports Program (CAAP) appropriates $10,000 annually to every qualifying public-use airport in the State of California. The City of Salinas has accumulated four years of credits totaling $ 40,000. The Page | 3
credits will be allocated and appropriated to the department’s operation budget ( 6100.50.5340-

62.2000 Supplies & Materials Building Maintenance Supplies) for $40,000.

ATTACHMENTS:

Resolution - A Resolution Accepting California Aid to Airports Program (CAAP) Annual Credits for Eligible Projects at the Salinas Municipal Airport

State of California, Department of Transportation, California Aid to Airports Program (CAAP) – Annual Credit Disbursement Request Form

- 1 -
RESOLUTION NO. __________________ (N.C.S.)

A RESOLUTION ACCEPTING CALIFORNIA AID TO AIRPORTS PROGRAM (CAAP)

ANNUAL CREDITS FOR ELIGIBLE PROJECTS AT THE SALINAS MUNICIPAL

AIRPORT

WHEREAS, public-use airports in the State of California, by way of the State Aeronautics Act, through the California Aid to Airports Program (CAAP) , receive an annual non-discretionary grant of $10,000 (annual credit); and

WHEREAS, credits payable under this program are credited to individual airport subaccounts annually and may be accumulated for a maximum period of five years; and

WHEREAS, these funds are paid to public entities upon request for expenditure on preapproved eligible projects; and

WHEREAS, the City of Salinas has accumulated four years of credits totaling $40,000 and desires to expend those credits on eligible purchases.

THEREFORE, BE IT RESOLVED that the Salinas City Council approves the acceptance and appropriation of $ 40,000 to the Airport Enterprise Fund from the State of California, Depa rtment of Transportation, California Aid to Airports Program (CAAP) for eligible p urchases at the Salinas Municipal Airport; and

BE IT FURTHER RESOLVED, the City Council authorizes and empowers the Interim City Manager, or designee, and Finance Director to execute on behalf of the City of Salinas all required documentation with respect to the application for and the acceptance of State of California, Department of Transportation, California Aid to Airports Program (CAAP) funding.

PASSED AND APPROVED this 9th day of January 2024 by the following vote:

AYES:

NOES:

ABSENT:

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#24-019, Version: 1
Second Amendment to the Agreement with MV Cheng & Associates, Inc. for Accounting Services Adopt a resolution authorizing the City Manager to negotiate and execute a Second Amendment to the Professional Services Agreement with MV Cheng & Associates, Inc. (MV Cheng & Associates) for accounting and financial reporting services to increase the maximum compensation from $250,000 to $350,000 and exercise the option to extend the term one additional year through December 31, 2024.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: JANUARY 9, 2024
DEPARTMENT: FINANCE
FROM: SELINA ANDREWS, ASSISTANT FINANCE DIRECTOR
TITLE: SECOND AMENDMENT TO THE AGREEMENT WITH MV
CHENG & ASSOCIATES, INC. FOR ACCOUNTING SERVICES

RECOMMENDED MOTION:

A motion to approve a resolution authorizing the Interim City Manager to negotiate and execute a Second Amendment to the Professional Services Agreement with MV Cheng & Associates, Inc. (MV Cheng & Associates) for accounting and financial reporting services to increase the maximum compensation from $ 250,000 to $350,000 and exercise the option to extend the term one additional year through December 31, 2024.

EXECUTIVE SUMMARY:

The City experienced a period of significant turnover of key management positions of Finance Director and Assistant Finance Director, and technical positions of Accounting Manager, Senior Accountant, and Management Analysts at the close of FY 2021-22 and into FY 2022-23 resulting in significant delays in financial reporting and critical reconciliations. While the Finance Department continues its transitional period and has had success in filling some key leadership positions, there continues to be a need to increase capacity in the area of governmental accounting.

MV Cheng & Associates has identified a well-qualified individual with 20 years of governmental accounting experience. Through this engagement, the City will increase its capacity to perform timely reconciliations, complete the prior year-end close process, conduct timely annual audits, and continue to document desk procedures for business continuity. The department hopes to fill its technical positions in the coming months while continuing to develop existing staff.

BACKGROUND:

At the close of FY 2021 -22, the Finance Department experienced an overwhelming number of changes in key management and highly technical positions. The Finance Director, Assistant Finance Director, Accounting Manager, Senior Accountant, and Management Analyst positions were all vacant within months of one another. Further complicating the lack of staffing was an increase in volume and complexity of governmental financial reporting due to new accounting pronouncements issued by the Governmental Accounting Standards Board.

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In July 2022, the City entered into a Professional Services Agreement with MV Cheng & Associates for higher level classification consultants similar to an Assistant Finance Director and Accounting Manager to assist with complex general ledger reconciliations , coordination of the City’s external audit, financial reporting, prepar ation of the Annual Comprehensive Financial Report (ACFR), and preparation of the Single Audit Report.

Given that the Finance Director and Assistant Finance Director , Senior Accountants, and Management Analysts positions were still vacant, the City entered into a First Amendment of its Agreement with MV Cheng & Associates in September 2023 to assist in management and technical capacities.

While the City has been successful in recruiting professionals to fill the Assistant Finance Director, Accounting Manager , Management Analyst, and Senior Accountant position s, a Senior Accountant position remains vacant. The effects of the ongoing vacancies and recent recruitments, which take time to train and onboard, continue to impact routine reconciliations, year-end, annual audits, and day to day operations. To help mitigate this, the City is recommending the continued use of consultants through MV Cheng & Associates at a lower classification level such as that of a Senior Accountant. Continuing the use of the consultant is critical to increase capacity while the department attempts to fill vacancies during its busiest times with the close of the prior year, annual audits, and the development of the FY 2024-25 budget.

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:

Approval of the recommended resolution achieves the Council 2022 -2025 Strategic Goal of Effective Government.

DEPARTMENTAL COORDINATION:

This staff report was coordinated with the City Manager’s Office and City Attorney’s Office.

FISCAL AND SUSTAINABILITY IMPACT:

Funds are available and appropriated in 1000.20.2030-63.5900.

ATTACHMENTS:

Resolution
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SALINAS

AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE A SECOND 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 twenty -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.

WHEREAS, the Salinas City Council approved 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

WHEREAS, the Salinas City Council authorized 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, 20 23, through December 31, 2023, with an additional one -year option, for an amount of fifty thousand dollars ($50,000).

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the Interim City Manager to negotiate and execute a Second Amendment to the Professional Services Agreement with MV Cheng & Associates, Inc. (MV Cheng & Associates) for accounting and financial reporting services to increase the maximum compensation from $250,000 to $350,000 and exercise the option to extend the term one additional year through December 31, 2024.

PASSED AND APPROVED this 9th day of January 2024, by the following vote:

2 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#24-021, Version: 1
Modification to the Classification - Salary Schedule and Workforce Allocation Adjustment Approve a Resolution modifying the Classification - Salary Schedule to reflect the minimum wage rate of $16.00 per hour effective January 1, 2024 and adjustments to impacted classifications; cost of living and wage adjustments due January 8, 2024 to include Retired Annuitant classifications and temporary Senior Planner; the addition of the previously authorized Plan Check Engineer; and additionally approve workforce allocation adjustments for the Community Development and Public Works Departments.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: January 9, 2024
DEPARTMENT: HUMAN RESOURCES
FROM: MARINA HORTA-GALLEGOS, HUMAN RESOURCES DIRECTOR TITLE: MODIFICATION TO THE CLASSIFICATION – SALARY SCHEDULE

AND WORKFORCE ALLOCATION ADJUSTMENT

RECOMMENDED MOTION:

It is recommended that the City Council approve a Resolution to 1) amend the Classification -Salary Schedule for temporary employee salaries and impacted classifications to comply with the state minimum wage pursuant to SB 3 and amended Minimum Wage Order (MW- 2024); 2) adjust classifications with previously authorized cost of living and wage adjustments due in the first full pay period of January starting January 8, 2024, to include Retired Annuitant classifications and wage adjustment for the temporary Senior Planner classification ; and 3) add the previously authorized Plan Check Engineer classification to the Classification -Salary Schedule. Additionally, staff recommend adjustments to the FY 2023 -2024 workforce including 1) adding nine grant funded limited -term positions to the Community Development workforce; 2) reclassifying the limited -term Senior Accounting Technician in Community Development to a regular position; 3) replacing two vac ant Community Outreach Assistants in the Permit Center with Permit Center Clerks and adjusting the salary range for the Permit Center Clerks and impacted Permit Services Technicians; 4) adding one Public Service Maintenance Worker I/II to the Public Works Department; 5) replacing the vacant Senior Facility Maintenance Mechanic with a Facility Maintenance Mechanic; and 6) replacing an existing Assistant Engineer vacancy with a Junior Engineer in the Water, Waste and Energy Division of the Public Works Department.

EXECUTIVE SUMMARY:

Staff recommends that the City Council approve the attached Resolution modifying the Classification – Salary Schedule to reflect 1) the minimum wage rate of $1 6.00 per hour effective January 1, 20 24 and adjustments to impacted classifications; 2) cost of living and wage adjustments due January 8, 2024 to include Retired Annuitant classifications and temporary Senior Planner; 3) the addition of the previously authorized Plan Check Engineer ; and additionally approve w orkforce allocation adjustments for the Community Development and Public Works Departments.

BACKGROUND:

SB 3 provided for six stepped annual increases from $10.00 per hour to $15.00 per hour, between January 1, 2017 and January 1, 2022 and provided for a minimum wage adjustment annually based on CPI measurements starting in 2023 . Consistent with the provisions of SB 3, t he current rate of $1 5.50 per Page | 2
hour is increasing to $1 6.00 per hour effective January 1, 202 4. T he City of Salinas has several classifications that f all below the $ 16.00 per hour range. Therefore, it is necessary to take action to adjust the Classification-Salary Schedule to reflect the increase of any salary ranges that are below the $16.00 hourly rate to comply with the current state law.

Pursuant to previously negotiated and authorized Compensation Plans and Memoranda of Understanding, the following u nits are due a cost-of-living adjustment effective in the first full pay period of January starting January 8 , 2024: Confidential Management, Fire Supervisors Association, and the Salinas Firefighters – IAFF Local 1270. Staff recommend adjustments to the temporary retired annuitant classifications and the temporary Senior Planner. Additionally, pursuant to the Salinas Municipal Employees Association MOU, the following positions are due a wage adjustment of two and a half percent (2.5%) in base pay: Fire Inspector, Literacy Specialist, Network Systems Specialist, and Supervising Police Services Technician.

Staff recommends the addition of the Plan Check Engineer classification to the salary schedule, which was previously approved and also recommend the addition of the following limited-term, grant funded positions to the Community Development workforce : Four 3-year limited-term Community Outreach Assistants, one 3 -year limited term Community Development Analyst , one 3 -year limited -term Homeless Services Manager, one 3-year limited-term Administrative Analyst, and two 2 -year limited- term Administrative Analyst. The Community Development Department also seeks to replace vacant Community Outreach Assistants with Permit Center Clerks to better address customer service needs in the Permit Center and adjust the salary range for these positions. It will also be necessary to adjust the salary range for the Permit Services Technicians to address compaction with the Permit Center Clerks ; and recommend replacing the authorized limited-term Senior Accounting Technician in the Housing Division of Community Development with a regular Senior Accounting Technician.

Lastly, staff recommend 1) adding one Public Service Maintenance Worker I/II to the Streets Division of the Public Works Department to have a full second crew to help address streets and sidewalk repairs; 2) replacing the vacant Senior Facility Maintenance Mechanic with a Facility Maintenance Mechanic; and 3) replacing the vacant Assistant Engineer in the Water, Waste and Energy Division of Public Works with a Junior Engineer to support the activities of the Division and facilitate recruitment for the 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, and Public Works Departments collaborated in this effort.

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FISCAL AND SUSTAINABILITY IMPACT:

There may be adjustments necessary in the mid -year budget and next fiscal year’s budget to reflect the increase in minimum wage for 2024. The cost-of-living and wage adjustments due in January 2024 have been budgeted for the fiscal year and the term of the agreements. No other impacts are anticipated for the balance of the fiscal year.

ATTACHMENTS:

Resolution
Exhibit A – Recommended Classification - Salary Schedule Adjustments Exhibit B – Classification – Salary Schedule
Page | 4
RESOLUTION NO. _________ (N.C.S.)

RESOLUTION AMENDING THE CLASSIFICATION - SALARY SCHEDULE AND

WORKFORCE ALLOCATION ADJUSTMENT
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the Classification -Salary Schedule previously adopted by the City Council by Resolution is hereby amended to include: 1) the classifications of Plan Check Engineer ; 2) adjusted salary range for Permit Center Clerks, Permit Services Technicians; temporary Senior Planner; and 3) classifications falling below the minimum wage rate of $1 6.00 per hour and impacted classifications; and 4) previously authorized cost of living and wage adjustments due January 8, 2024 ; and the workforce for the Public Works Department and Community Development is adjusted.

Attached as Exhibit B is the amended Classification - Salary Schedule.

PASSED AND APPROVED this 9th day of January 2024, 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#23-714, Version: 1
Red Light Abatement Act Ordinance
Consider adopting an Ordinance to amend the Salinas Municipal Code to provide for the abatement of public nuisances.

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CITY OF SALINAS

CITY COUNCIL STAFF REPORT

DATE: DECEMBER 5, 2023
DEPARTMENT: CITY ATTORNEY’S OFFICE

FROM: CHRISTOPHER A. CALLIHAN, CITY ATTORNEY

TITLE: RED LIGHT ABATEMENT ORDINANCE

RECOMMENDED MOTION:

It is recommended that the City Council consider adopting an ordinance related to abatement of public nuisances resulting from prostitution activities.

EXECUTIVE SUMMARY:

Members of the community and members of the Salinas City Council ha ve expressed concern regarding impacts to the community from the presence of an increased number of minimally clothed women who appear to be loitering for the intent to engage in prostitution. The neighborhoods in the King Street, Roosevelt Street, and North Madeira Avenue areas have been most impacted have expressed their concerns directly to the City Council on several occasions.

With a recent change to State law, it is no longer a violation of the Penal Code for an individual to loiter with the intent to engage in prostitution (though it is still a crime for an individual to engage in prostitution). To help mitigate the impacts of this recent change to State law, the proposed ordinance codifies the State’s Red Light Abatement Act into the Salinas Municipal Code thereby allowing for the City to take legal action to abate public nuisances that result from prostitution activities.1

BACKGROUND:

On July 1, 2022, Governor Newsom signed Senate Bill 357—The Safer Streets for All Act—(SB 357 Weiner) into law thereby repealing provisions of State law related to loitering with the intent to commit prostitution. SB 357 also allows a person who has been convicted of loitering, to petition the trial court for resentencing or dismissal, and the sealing of records. In su pport of SB 357, the bill’s author, State Senator Weiner (11th District) stated that the criminal provision of loitering with the intent to engage in prostitution “results in the disproportionate criminalization of trans, Black and Brown women, and perpetu ates violence toward sex workers…This criminal provision is

1 The Red Light Abatement Act is codified at Penal Code sections 11225-11235.

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inherently discriminatory and targets people not for any action but simply based on how they look.

People who engage in sex work deserve to be treated with dignity and respect.”2

A copy of SB 357 is included with this Report for reference.

When Governor Newsom signed SB 357 into law, he acknowledged there may be “unintended consequences” from the implementation of this legislation and that additional action may be needed to “mitigate any such impacts.”3 A copy of Governor Newsom’s Signing Message is included with this Report for reference.

At several recent City Council meetings, members of the community (particularly those within the King Street, Roosevelt Street, and North Madeira Avenue nei ghborhoods) have expressed their concerns and their frustrations with the increase in the number of women who appear to be loitering for the intent to engage in prostitution. Community members have provided public testimony that numerous minimally clothed women are frequently in these neighborhoods and have entered upon private property and knocked on doors with the intent to engage in prostitution. Other residents have provided public testimony that they have observed individuals engaged in sex acts in car parked along the streets in these neighborhoods and that they have observed hotels and motels in these areas as being regularly used for prostitution activities. Council members have also expressed concern regarding these activities and the impacts on the community and have asked the City Manager, City Attorney, and Police Chief to identify measures to mitigate the impacts of these illegal prostitution activities.

As one means of mitigating the impacts on the community from illegal prostitution activities, it is recommended that the City Council adopt an ordinance making it clear that the use of any property for the purpose of prostitution is a nuisance which shall be enjoined, abated, and prevented, and for which damages may be recovered, whether it is a public or a private nuisance. This allows the City to combat prostitution by directing enforcement against the property owners who allow prostitution to occur on their property(ies).

STRATEGIC PLAN INITIATIVE:

The proposed ordinance supports the City Council’s goals of Public Safety and Effective and Culturally Responsive Government (City of Salinas Strategic Plan 2022-2025).

DEPARTMENTAL COORDINATION:

The City Attorney’s Office, City Manager’s Office, and Police Department coordinated on this Report and Ordinance.

2 https://sd11.senate.ca.gov/news/20220620-senator-wiener%E2%80%99s-legislation-repeal-discriminatory- loitering-law-targeting-sex-workers
3 https://www.gov.ca.gov/wp-content/uploads/2022/07/SB357-Signing-Message-7.01.2022.pdf?emrc=14a4d2 Page | 3
FISCAL AND SUSTAINABILITY IMPACT:

Adoption of the proposed ordinance would not have a direct impact on the City’s General Fund.

The only fiscal impact to the City would be related to City staff time should circumstances arise where the ordinance would need to be enforced.

ATTACHMENTS:

Ordinance
SB 357
Governor Newsom’s Signing Message

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ORDINANCE NO. ________ (N.C.S.)

AN ORDINANCE RELATING TO THE ABATEMENT OF PUBLIC NUISANCES

City Attorney Impartial Analysis

This ordinance incorporates the California Red Light Abatement Act into the Salinas Municipal Code and provides the City with an additional enforcement remedy to mitigate the effects of prostitution activities within the city.

WHEREAS, Article XI, Section 7 of the Calif ornia Constitution provides authorization for the City to enact and to enforce ordinances regulating conditions which constitute public nuisances or health hazards; and

WHEREAS, California Government Code section 38771, et seq., authorizes the City Counci l to declare public nuisances and to establish procedures for the abatement of such nuisances, and to recover the costs associated with nuisance abatement proceedings; and

WHEREAS, it is in the public interest to enact public nuisance abatement procedures to provide notice and due process to property owners and other persons who cause or maintain public nuisances on private property within the City; and

WHEREAS, members of the community have provided public testimony regarding the impacts on their neighbo rhoods directly resulting from prostitution activities, including the presence of prostitution activities at all hours of the day and at various hotels and motels throughout Salinas.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS as follows:

SECTION 1. The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 2. Salinas Municipal Code section 1-01.16 is hereby a dded to the Salinas Municipal Code to read as follows:

Sec. 1-01.16. California Red Light Abatement Act.

The City may: (1) declare that a public nuisance exists whenever any member of the public creates, causes, commits, permits, or maintains any condition or performs or causes to be performed any activity that falls within the scope of the definition of “public nuisance” as set forth in Penal Code section 11225; and (2) commence any action or proceeding pursuant to the California Red Light Abatement Act to abate the public nuisance, to pursue all other remedies against the violator, to seek the imposition of all penalties against the violator and to recover any and all costs from the violator.

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SECTION 3. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper published and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)

SECTION 4. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines section 15061(b)(3)).

SECTION 5.  Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

The Salinas City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, clause, and phase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 6.  Effective Date. This Ordinance will take effect thirty (30) days from and after its adoption.

PASSED AND ADOPTED this ____ day of __________________, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

________________________________________
Kimbley Craig, Mayor

ATTEST:

__________________________________
Patricia M. Barajas, City Clerk

APPROVED AS TO FORM:

__________________________________
Christopher A. Callihan, City Attorney
Senate Bill 357

OFFICE OF THE GOVERNOR
JUL O 1 2022
To the Members of the California State Senate:

I am signing Senate Bill 357, which repeals provisions of the law related to loitering with intent to commit prostitution. This bill additionally allows a person, who has been convicted of loitering, to petition the trial court for resentencing or dismissal, and the sealing of records.

The author brought forth this legislation because the crime of loitering has disproportionately impacted Black and Brown women and members of the LGBTQ community. Black adults accounted for 56.1 % of the loitering charges in Los Angeles between 2017-2019, despite making up less than 10% of the city's population.

To be clear, this bill does not legalize prostitution. It simply revokes provisions of the law that have led to disproportionate harassment of women and transgender adults. While I agree with the author's intent and I am signing this legislation, we must be cautious about its implementation. My Administration will monitor crime and prosecution trends for any possible unintended consequences and will act to mitigate any such impacts.

Sincerely,
Gavin Newsom
GOVERNOR GAVIN NEWSOM• SACRAMENTO, CA 95814 • (916) 445-2841 ~
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-699, Version: 1
California Senate Bill 329 (Dodd): City Council Compensation Consider adopting an Ordinance amending the Salinas Municipal Code to increase compensation for the Mayor and City Council Members.

City of Salinas Printed on 11/30/2023Page 1 of 1
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CITY OF SALINAS

CITY COUNCIL STAFF REPORT

DATE: November 14, 2023
DEPARTMENT: CITY MANAGER’S OFFICE
CITY ATTORNEY’S OFFICE

FROM: JIM PIA, INTERIM CITY MANAGER
CHRISTOPHER A. CALLIHAN, CITY ATTORNEY

TITLE: CALIFORNIA SB 329 (DODD): CITY COUNCIL COMPENSATION

RECOMMENDED MOTION:

It is recommended that the City Council consider whether to amend the Salinas Municipal Code to increase Council member compensation.

EXECUTIVE SUMMARY:

On June 29, 2023, Governor Newsom signed SB 329 (Dodd) into law which amended Government Code section 36516 thereby allowing cities to adjust Council member compen sation to reflect inflation as measured by the California Consumer Price Index. This legislation was intended to increase the compensation schedule for Council members in general law cities. SB 329 allows cities to increase the compensation to adjust for inflation in order to help keep city councils more diverse by allowing people from across different income leve ls to serve the public and support their families. Increases would require a majority vote of the City Council.

SB 329 requires that an ordinance to increase council member compensation be considered in an open session with at least two regular meetings. The ordinance must include findings demonstrating the need for the increased compensation and there must be at le ast seven days between the introduction and the adoption of the ordinance.

SB 329 goes into effect on January 1, 2024 , meaning that should the Salinas City Council adopt an ordinance to increase Council member compensation, such increase could not take e ffect until January 1, 2024; however, the City Council can adopt such an ordinance now so that it may be effective January 1, 2024.

A copy of SB 329 is attached to this Report for reference.

The Finance Committee received a report on September 12, 2023, regarding Council member compensation and SB 329. The Finance Committee did not make a specific recommendation to the City Council whether to increase Council member compensation, but instead recommended Page | 2
that this item be considered by the City Council onl y after the City had made progress toward approving new contracts with City labor groups.

BACKGROUND:

On June 29, 2023, Governor Newsom signed SB 329 into law, allowing general law cities to increase Council member compensation. The State Legislature (and the City of Salinas) last adjusted these amounts in 1984. Currently, Government Code section 36516 authorizes a City Council to enact an ordinance to provide each member of the city council a salary, with a maximum base limit based upon the populatio n of the city in accordance with a specific schedule. Any increases in salary are also limited and cannot exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted.

SB 329 amends Government Code section 36516 to increase the maximum amount of salaries identified in the schedule. SB 329 also authorizes the salary of council members to be increased beyond the specified maximum to an amount not exceeding the greater of either 5 % for each calendar year from the operative date of the last adjustment of the salary or an amount equal to inflation since January 1, 2024, based on the California Consumer Price Index (Not to exceed 10% per calendar year).

No ordinance can be enacted or amended to provide automatic future increases in salary and the electors can consider the question of whether city council members should receive a salary and the amount of the salary may be submitted to the electors. Any retirement, health and welfare benefits, federal social security benefits, or reimbursement for the actual and necessary expenses are not included for purposes of determining salary under section 36516.

Salinas is a charter city and, therefore, this new law applies to Salinas because Charter Section 5.3 authorizes the City Council to be compensated in an amount authorized by State law for cities of a similar size, with additional compensation for the Mayor:1

Section 5.3 Compensation

The monthly salary of the Mayor and the members of the City Council shall be set by ordinance. The monthly salary shall not exceed the amount authorized by State law for cities of a similar size; provided however, that the salary of the Mayor may be set at a higher amount that the salary of the members of the City Council.

Salinas Municipal Code section 2-01.02 sets the current amounts of compensation for the Mayor and Council members:

Sec. 2-01.02. City Councilmember compensation.

1 Charter Section 5.3 (formerly Section 9) was added to the City Charter by the voters at the November 6, 1984 election. A copy of Resolution No. 11970 declaring the results of the election is attached to this report for reference.

Page | 3
Members of the city council shall receive as compensation for their service s a monthly salary of six hundred dollars each and the mayor shall receive a monthly salary of eight hundred dollars.

Compensation for the council and for the mayor may be increased beyond the amount provided for in this section by an ordinance or an amen dment to this section, provided the total amount of compensation, and the percent of any increase, shall not exceed the compensation and increase as provided for in Government Code Section 36516.

Pursuant to Government Code section 36516(a)(2) (E), the com pensation for Salinas Council members may be up to and $2,550 per month, and may be increased beyond that i f the increase does not exceed (1) an amount equal to 5% for each calendar year from the operative date of the last adjustment of the salary (not compounded); or (2) an amount equal to inflation since January 1, 2024, based on Consumer Price Index (CPI).

Currently, the Mayor receives an annual salary in the amount of $9,600 and each Council member receives an annual salary in the amount of $7,200, excluding benefits. 2 Combined, the annual salary for the Mayor and Council members is $52,800, excluding benefits. Increasing each of the Mayor and Council members’ salaries to the amount of $2,550 per month would result in an annual salary for each in the amount of $30,600. The combined annual salary for the Mayor and Council members would thus be increased by $161,400 to $214,200:

Position Current Annual Salary
(Mayor-$800;
Council members-$600)
Increased Annual Salary
($2,550 per month)
Mayor $9,600 $30,600
Council member D1 $7,200 $30,600
Council member D2 $7,200 $30,600
Council member D3 $7,200 $30,600
Council member D4 $7,200 $30,600
Council member D5 $7,200 $30,600
Council member D6 $7,200 $30,600
Total $52,800 $214,200

Examples from Other Cities.

The following is provided to inform the City Council of the amounts of compensation paid to Mayors and Council members from some other California cities:

City Monthly Compensation—Monterey County Cities Population

2 In addition to their monthly salary, the Mayor and Council members receive benefits including health care, retirement, auto allowance, Medicare and Social Security, and reimbursement of expenses.

Page | 4
Monterey3 Mayor: $1,417.50. Council member: $965.25

26,845
Soledad4 Mayor: $612 Council member: $512 26,230 Greenfield Mayor: $481 Council member: $361 19,917 King City Mayor: $450 Council member: $350 13,817 Marina Mayor: $250 Council member: $200 22,068 Seaside Mayor: $400 Council member: $340 29,790 Gonzales Mayor: $400 Council member: $400 8,300 Monthly Compensation--Comparator Cities5
Monterey
County
Supervisor: $13,219 (full-time positions) 430,368
Santa Cruz
County
Chair: $11,901 Supervisor: $11,822 (full-time positions)_
262,051
San Jose Mayor: $17,450

Council member: Varies from a range of $12,203 to $11,613 (full-time positions)
959,256
Sunnyvale Mayor: $3,884 Council member: $2,913 156,317 Hayward Mayor: $3,474 Council member: $2,081 159,800 Oxnard Mayor: $1,701 Council member: $1,701 197,477 Gilroy Mayor: $1,475 (maximum) Council member: $984 (maximum) 60,078 Watsonville Mayor: $689 Council member: $578 49,876 Hollister Mayor: $600 Council member: $400 42,891

Options Available to the City Council.

Ultimately, the City Council has options: The City Council could choose not to increase City Council compensation, could choose not to increase City Council compensation at this time, or could choose to increase Cit y Council compen sation by a lesser than the maximum amount permitted.

This bill was sponsored by Cal Cities (formerly League of California Cities). A copy of Cal Cities’ June 14, 2023, letter is attached to this Report for reference.

STRATEGIC PLAN INITIATIVE:

An increase to the City Council’s compensation would support the City Council’s Goal of an effective and culturally responsive government.

3 Effective January 1, 2024.
4 All of the salary figures for these six cities and population counts for all of the cities and counties in this chart are from 2022 and are taken from the California State Controller’s “Government Compensation in California” website:
https://publicpay.ca.gov/Reports/PositionRpts.aspx?year=2022&rpt=1 .

Salinas’s population is listed at 159,475.
5 The comparator cities are those used by the City of Salinas for its recent compensation survey.

Page | 5
DEPARTMENTAL COORDINATION:

The City Attorney’s Office, City Manager’s Office, City Clerk’s Office, and Finance Department coordinated on this Report and draft Ordinance.

FISCAL AND SUSTAINABILITY IMPACT:

An increase to the City Council’s compensation would have an impact to the City’s General Fund.

The total impact is dependent upon the increase approved by the City Council.

ATTACHMENTS:

Salinas City Council Resolution No. 11970
SB 329
Cal Cities’ June 14, 2023, Letter to Governor Newsom
Draft Ordinance

Page | 6
ORDINANCE NO. _________ (N.C.S.)

AN ORDINANCE AMENDING SALINAS MUNICIPAL CODE SECTION 2-01.02 TO

INCREASE COMPENSATION FOR THE MAYOR AND CITY COUNCIL MEMBERS

City Attorney Impartial Analysis

Consistent with Senate Bill 329 (Dodd), this Ordinance amends the Salinas Municipal Code to increase the compensation for the Mayor and City Council members.

WHEREAS, Salinas Charter Section 5.3 authorizes the City Council to be compensated in an amount permitted by State law for general law cities with the same population, with additional compensation for the Mayor; and

WHEREAS, Council members are currently receiving a monthly salary of $600 and the Mayor $800, with those amounts having been set in 1984; and

WHEREAS, on June 29, 2023, the Governor signed SB 329 into law, allowing for Council member pay increase in general law cities. The State Legislature last adjusted these amounts in 1984.

Effective January 1, 2024, Government Code section 36516 auth orizes up to $2,550 per month, based on Salinas’s population; and

WHEREAS, under the new law, Council member salaries may be increased beyond $2,550 per month if the increase does not exceed: (1) an amount equal to 5% for each calendar year from the last adjustment—in this case 1984 (not compounded); or (2) an amount equal to inflation since January 1, 2024, based on the CPI; and

WHEREAS, the City Council agrees with the author of SB 329, Senator Bill Dodd (D-Napa), that:

No one runs for City Council in order to make money. But the low levels of pay make it much harder for them to balance their careers and personal obligations with the calling to serve their community. The Legislature has not raised the base pay amounts for City Council members since 1984. It’s time those amounts caught up with the present economic reality, especially with the rapid increase in inflation we’ve seen recently. Raising the pay wi ll also make it easier for members of marginalized communities to serve. City Councils should be reflective of the communities they represent, and I believe raising their compensation is an important step to achieving that equitable outcome.

WHEREAS, the City Council agrees with Cal Cities (formerly the League of California Cities), which supported SB 329 for the following reasons:

Page | 7
Lengthy time commitments and limited pay discourage many, especially low - income residents, single parents, people of color, a nd young people, from running for public office. For many, being a council member is a full-time commitment with part-time pay. Cal Cities is proud to sponsor this important legislation that lessens barriers for those interested in governing at the local l evel. This overdue reform is another tool communities can choose to use that can help ensure our city councils are reflective of the residents who live, work, and play in their communities.

WHEREAS, the cost of living in Salinas is extremely high. 6 In August 2022, an editorial in the Monterey County Weekly urged increasing compensation for city elected officials7; and

WHEREAS, a first reading of this Ordinance was held on _________________, 2023.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS as follows:

SECTION 1. The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 2. Salinas Municipal Code section 2-01.02 is hereby amended to read as follows:

Sec. 2-01.02. City Councilmember compensation.

a. Effective January 1, 2024, Members of the city council shall receive as compensation for their services a monthly salary of _________________ dollars each and the mayor shall receive a monthly salary of ___________________ dollars.
b. The compensation set forth in this subsection (a) is exclusive of any amounts paid by the city for retirement, health, and other benefits, provided that the same benefits are available and paid by the city for its employees.
c. Compensation for the council and for the mayor may be increased beyond the amount provided for in this section by an ordinance or an amendment to this section, provided the total amount of compensation, and the percent of any increase, shall not exceed the compe nsation and increase as provided for in Government Code Section 36516. d. This ordinance does not and shall not provide for automatic future increases in the compensation.

SECTION 3. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed effective January 1, 2024, or the effective date of this Ordinance, whichever is later.

SECTION 4. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper pu blished and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)

6 https://www.sfgate.com/bayarea/article/salinas-ca-ranked-seventh-most-expensive-to-live-18467574.php 7 https://www.montereycountyweekly.com/opinion/local_spin/monterey-county-s-city-council-members-volunteer- we-should-pay-them/article_e93b1500-18ff-11ed-ace1-f3ae82571b6d.html Page | 8
SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines section 15061(b)(3)).

SECTION 6.  Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

SECTION 7.  Effective Date. This Ordinance will take effect thirty (30) days from and af ter its adoption.

PASSED AND ADOPTED this ____ day of __________________, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

________________________________________
Kimbley Craig, Mayor

ATTEST:

__________________________________
Patricia M. Barajas, City Clerk

APPROVED AS TO FORM:

__________________________________
Christopher A. Callihan, City Attorney

ORDINANCE NO. _________ (N.C.S.)

AN ORDINANCE AMENDING SALINAS MUNICIPAL CODE SECTION 2-01.02 TO

INCREASE COMPENSATION FOR THE MAYOR AND CITY COUNCIL MEMBERS

City Attorney Impartial Analysis

Consistent with Senate Bill 329 (Dodd), this Ordinance amends the Salinas Municipal Code to increase the compensation for the Mayor and City Council members.

WHEREAS, Council members are currently receive a monthly salary of $600 and the Mayor $800, with those amounts having been set in 1984; and

WHEREAS, on June 29, 2023, the Governor signed SB 329 into law, allowing for Council member pay increase in general law cities. The State Legislature last adjusted these amounts in 1984.

Effective January 1, 2024, Government Code section 36516 author izes up to $2,550 per month, based on Salinas’s population; and

WHEREAS, the City Council agrees with the author of SB 329, Senator Bill Dodd (D-Napa), that:

City Council members have one of the hardest jobs in California government. They deal with a wide range of issues, from street maintenance to emergency response duties. And all to often, they do this job with very little financial compensation. No one runs for City Council in order to make money. But the low levels of pay make it much harder for them to balance their careers and personal obligations with the calling to serve their community. The Legislature has not raised the base pay amounts for City Council members since 1984. It’s time t hose amounts caught up with the present economic reality, especially with the rapid increase in inflation we’ve seen recently. Raising the pay will also make it easier for members of marginalized communities to serve. City Councils should be reflective of the communities they represent and I believe raising their compensation is an important step to achieving that equitable outcome.

WHEREAS, the City Council agrees with Cal Cities (formerly the League of California Cities), which supported SB 329 for the following reasons:

Lengthy time commitments and limited pay discourage many, especially low - income residents, single parents, people of color, and young people, from running for public office. For many, being a council member is a full-time commitment with part-time pay. Cal Cities is proud to sponsor this important legislation that lessens barriers for those interested in governing at the local level. This overdue reform is another tool communities can choose to use that can help ensure our city councils are reflective of the residents who live, work, and play in their communities.

WHEREAS, the cost of living in Salinas is extremely high. 6 In August 2022, an editorial in the Monterey County Weekly urged increasing compensation for city elected officials7; and

WHEREAS, a first reading of this Ordinance was held on November 14, 2023.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS as follows:

SECTION 1. The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 2. Salinas Municipal Code section 2-01.02 is hereby amended to read as follows:

Sec. 2-01.02. City Councilmember compensation.

a. The Mayor and Members of the City Council shall each receive as compensation for their services a monthly salary of two thousand five hundred fifty dollars ($2,550) dollars. b. The compensation set forth in subsection (a) of this section is exclusive of any amounts paid by the City for retirement, health, and other benefits, provided that the same benefits are available and paid by the City for its employees.
c. Compensation for the Mayor and the City C ouncil may be increased beyond the amount provided for in this section by an ordinance or an amendment to this section, provided the total amount of compensation, and the percent of any increase, shall not exceed the compensation and increase as provided for in Government Code Section 36516. d. This Ordinance does not and shall not pr ovide for automatic future increases in the compensation.

SECTION 4. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper published and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)

SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines section 15061(b)(3)).

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

SECTION 7. Effective Date. This Ordinance will take effect thirty (30) days from and after its adoption.

PASSED AND ADOPTED this 5th day of December, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

________________________________________
Kimbley Craig, Mayor

ATTEST:

__________________________________
Patricia M. Barajas, City Clerk

APPROVED AS TO FORM:

__________________________________
Christopher A. Callihan, City Attorney

RESOLUTION NO. 11970 ( N. C. S.)

A RESOLUTION OF THE COUNCIL OF SALINAS DECLARING

CANVASS OF RETURNS AND RESULT OF A SPECIAL

MUNICIPAL ELECTION
WHEREAS, by proceedings heretofore duly had and taken, a special municipal election was held in Salinas on November 6,. 1984; and
WHEREAS, said special municipal election was held on said date in accordance with law, and the votes thereat received and canvassed, and the returns thereof ascertained, determined and declared, in all respects as required by law;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF SALINAS as follows:

1. The City Clerk of Salinas is hereby instructed to enter this resolution on the minutes of this Council as a statement of the result of said election.

2. The total number of ballots cast in the City of Salinas at said special municipal election was 27, 400

3. That at said special municipal election so held on
November 6, 1984, there was 1 charter amendment proposed and placed on the ballot for the consideration of the electors of Salinas, and which said proposed charter amendment was submitted to the electors for a Yes or No vote on said proposed amendment substantially in the form that follows:

Shall Section 9 of the Charter of Salinas be amended to read:

Sec. 9. Same - Compensation.

The monthly salary of the Mayor and the
members of the City Council shall be
adopted by ordinance. The monthly
salary shall not exceed the amount
authorized by State law for cities of
a similar size; provided however, that
the salary of the Mayor may be set at
a higher amount than the salary of the
members of the City Council"?
YES 15, 216
NO 8, 924
4 That 15, 216 votes were cast in favor of the adoption of said Charter Amendment ( Measure E) by the electors of said City voting on said measure at said election; that 8, 924 votes 1-
were cast against said measure by the electors of said City voting on said Measure at said election; and that said proposed Charter Amendment ( Measure E) carried.

PASSED AND ADOPTED this 13th day of November ,
1984, by the following vote:

AYES: Councilmembers Paul D. Grennan, Russell Jeffries, Bill O' Brien, Phyllis Price
NOES: None
ABSENT: P4ayor James_ B. Barnes
ATTEST:

Mayor p.]ro item
2-

MONTEREY COUNTY

I ELECTION DEPARTMENT
408) 424- 7621. P. O. BOX 1848, 93902 - 201 MAIN STREET, SALINAS, CALIFORNIA 93901 ROSS J. UNDERWOOD BETTY L. BLOOMER
REGISTRAR OF VOTERS ASST. REGISTRAR OF VOTERS

C E R T I F I C A T I O N O F
STATEMENT OF VOTES CAST AT THE NOVEMBER 6, 1984 GENERAL ELECTION I, ROSS J. UNDERWOOD, Registrar of Voters of the County of Monterey, State of California, hereby certify that the attached STATEMENT OF VOTES CAST accurately reflect the total number of votes cast for each Candidate and/ or For and Against each Measure as submitted to the voters at the PRESIDENTIAL GENERAL ELECTION OF NOVEMBER 6, 1984 held within the County of Monterey and the many sub - jurisdictions within said County having consolidated their election with the aforementioned Presidential General Election.

I HEREBY SET MY HAND AND SEAL THIS 16TH DAY OF NOVEMBER 1984.

County of Monterey

SPECIAL MUNICIPAL ELECTION CITY OF ALINAS MAYOR/ COUNCIL SALARY 9 241
31 2751 23ti
punmoou/ 45- 72,
i^

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

June 14, 2023

The Honorable Gavin Newsom
Governor, State of California
1021 O Street, Suite 9000
Sacramento, CA 95814

RE: SB 329 (Dodd) Cities: City Council Members: Compensation.

Request for Signature

Dear Governor Newsom,

The League of California Cities (Cal Cities) requests your signature on SB 329 (Dodd), which would allow general law cities to adjust council member salaries for inflation. The Legislature has not raised the base pay amounts for City Councilmembers since 1984. SB 329 is a long overdue measure that would allow for city councils to increase council salaries to catch up to the present economic reality while also ensuring local government salary transparency.

Existing law sets a pay schedule that must be approved by the City Council through an ordinance or by the voters as a ballot measure. These amounts are determined by the population size of a city and set by state law. The lowest tier is cities up to 35,000 in population, with compensation up to three hundred dollars ($300) per month. The highest tier is cities with over 250,000 population, up to one thousand dollars ($1,000) per month.

However, these amounts have not been adjusted since 1984 despite significant increases in the cost of living.

Lengthy time commitments and limited pay discourage many, especially low-income residents, single parents, people of color, and young people, from running for public office.

For many, being a council member is a full-time commitment with part-time pay.

Cal Cities is proud to sponsor this important legislation that lessens barriers for those interested in governing at the local level. This overdue reform is another tool cities can choose to use that can help ensure our city councils are reflective of the residents who live, work, and play in their communities.

For these reasons, Cal Cities requests your signature on SB 329 (Dodd). If you have any questions, do not hesitate to contact me at (916) 658-8214.

Sincerely,

Johnnie Pina
Legislative Affairs, Lobbyist

cc: The Honorable Senator Bill Dodd
Christy Bouma, Legislative Affairs Secretary, Office of Governor Gavin Newsom Ronda Paschal, Deputy Legislative Secretary, Office of Governor Gavin Newsom

Senate Bill No. 329
CHAPTER 27
An act to amend Section 36516 of the Government Code, relating to local government. [ Approved by Governor June 29, 2023. Filed with Secretary of State June 29, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 329, Dodd. Cities: city council members: compensation.

Existing law authorizes a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city, as specified. Existing law authorizes that amount to be increased by the city council by an amount that does not exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted. Existing law provides for the procedures by which a city may enact ordinances.

This bill would increase the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill would authorize the salary of council members to be increased beyond the specified maximums to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council.

Digest Key
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no Bill Text

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:

SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation.
(b) Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.

SEC. 2. Section 36516 of the Government Code is amended to read:
36516. (a) (1) A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2). (2) The salaries approved by ordinance under paragraph (1) shall be as follows:
(A) In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month.
(B) In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month.
(C) In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month.
(D) In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month.
(E) In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month.
(F) In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month. (3) For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance. (4) The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. (B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.
(5) No ordinance shall be enacted or amended to provide automatic future increases in salary. (b) Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.
(c) Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body. (d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees.
(e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. (f) A city council member may waive any or all of the compensation permitted by this section. (g) (1) For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council. (2) At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting. (3) At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.

Salinas City CouncilJanuary 9, 2024

Salinas City Council
January 9, 2024