Salinas City Council
May 14, 2024

Tuesday, May 14, 2024
4:00 PM
City of Salinas
200 Lincoln Ave., Salinas, CA 93901
www.cityofsalinas.org

SALINAS ROTUNDA
City Council
Mayor Kimbley Craig
Councilmembers:

Carla Viviana González, District 1 - Tony Barrera, District 2 VACANT, District 3 - Orlando Osornio, District 4
Andrew Sandoval, District 5 - Anthony Rocha, District 6 Jim Pia, Interim City Manager
Christopher A. Callihan, City Attorney
City Clerk’s Office: (831) 758-7381
Meeting Agenda - Final

May 14, 2024City Council Meeting Agenda - Final

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PLEDGE OF ALLEGIANCE

ROLL CALL

PROCLAMATIONS & COMMENDATIONS
National Emergency Medical Services Week, May 19 - 25, 2024 National Poppy Day, May 24, 2024
Yolanda Cervantes, Former Police Community Advisory Committee Member

PUBLIC COMMENT PROCEDURES
If you wish to make a general public comment or comment on a specific agenda item, you are encouraged to attend the City Council meeting in person. Public comment may also be submitted via email at [email protected] and will be entered into the record.

PUBLIC COMMENT TIME RESTRICTIONS
Public comments generally are limited to two minutes per speaker; the Mayor may further limit the time for public comments depending on the agenda schedule.

GENERAL PUBLIC COMMENTS
Receive public communications on items that are not on the agenda and that are in the City of Salinas’ subject matter jurisdiction. Comments on Consent, Consideration, and Closed session items should be held until the items are reached. The public may request that the legislative body consider adding an item for consideration on a future agenda. The public may comment on scheduled agenda items, including closed session items, as they are considered.

PUBLIC HEARINGS

May 14, 2024City Council Meeting Agenda - Final
24-245 United States Department of Housing and Urban Development FY 2024-2025 Annual Action Plan
Recommendation: A resolution approving the City of Salinas' United States Department of Housing and Urban Development (HUD) Fiscal Year (FY) 2024-2025 Annual Action Plan (AAP) and its submittal to HUD; and authorizing the City Manager to incorporate any necessary modifications based upon community feedback and final HUD allocation prior to submissions to HUD; and authorizing the Mayor, or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications, or amendments related to the funding allocations set forth in the FY 2024-2025 AAP. 24-246 Submission of 2023 Permanent Local Housing Allocation Program Application and 5-Year Plan Amendment to California Department of Housing and Community Development
Recommendation: Approve a Resolution authorizing the submission of the City's annual application for 2023 Permanent Local Housing Allocation funds to the California Department of Housing and Community Development; submission of an amended Permanent Local Housing Allocation 5-Year Plan; appropriation of 2023 PLHA funds to General Ledger account fund SB2 (2951); and authorizing the Interim City Manager or designee to execute all applicable agreements.

CONSENT AGENDA
All matters listed under Consent Agenda may be enacted by one motion unless a member of the Council or the public requests discussion or a separate vote.

ID#24-265 Minutes
Recommendation: Approve minutes of May 7, 2024.

ID#24-259 November 5, 2024 General Municipal Election
Recommendation: Approve a Resolution ordering the November 5, 2024 General Municipal Election and ordering a Special Election for Councilmember District 3 for the City of Salinas, requesting consolidation with the November 5, 2024 election and requesting the County of Monterey Department of Elections to conduct the election.

ID#24-264 Acceptance of Sale of Jet West, LLC to Imperial Aviation, LLC dba Gate One
Recommendation: Approve a Resolution approving and authorizing the stock sale of Jet West, LLC to Imperial Aviation, LLC, dba Gate One and consenting to the assignment of the Lease Agreement and related permits and agreements from Jet West LLC to Imperial Aviation, LLC dba Gate One.

COUNCILMEMBERS’ REPORTS, APPOINTMENTS AND FUTURE AGENDA ITEMS Receive communication from Councilmembers on reports, appointments and future agenda items. Councilmember comments are generally limited to three minutes.

ADJOURNMENT
_____________________________
Patricia M. Barajas, City Clerk

May 14, 2024City Council Meeting Agenda - Final

AGENDA MATERIAL / ADDENDUM
Any addendums will be posted within 72 hours of regular meetings or 24 hours of special meetings and in accordance with Californian Government Code Section 54954.2 and 54956. City Council agenda reports and other writings distributed to the legislative body may be viewed at the Salinas City Clerk’s Office, 200 Lincoln Avenue, Salinas, and are posted on the City’s website at www.cityofsalinas.org in accordance with California Government Code section 54597.5. The City Council may take action that is different than the proposed action reflected on the agenda.

Disability-related modification or accommodation, including auxiliary aids or services, may be requested by any person with a disability who requires a modification or accommodation in order to participate in the meeting. Language interpretation may be requested as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Requests should be referred to the City Clerk’s Office At 200 Lincoln Avenue, Salinas, 758-7381, as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the city by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

PUBLIC NOTIFICATION
This agenda was posted on May 10, 2024 in the Salinas Rotunda and City's website.

Meetings are streamed live at https://salinas.legistar.com/Calendar.aspx, televised live on Comcast Channel 25 and on http://www.youtube.com/thesalinaschannel at 4:00 p.m. on the date of the regularly scheduled meeting and will be broadcast throughout the day on Friday, Saturday, Monday and Wednesday following the meeting. For the most up-to-date Broadcast Schedule for The Salinas Channel on Comcast 25, please visit or subscribe to our Google Calendar located at http://tinyurl.com/SalinasChannel25. All past City Council meetings may also be viewed on the Salinas Channel on YouTube at http://www.youtube.com/thesalinaschannel.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: 24-245, Version: 1
United States Department of Housing and Urban Development FY 2024-2025 Annual Action Plan A resolution approving the City of Salinas’ United States Department of Housing and Urban Development (HUD) Fiscal Year (FY) 2024-2025 Annual Action Plan (AAP) and its submittal to HUD; and authorizing the City Manager to incorporate any necessary modifications based upon community feedback and final HUD allocation prior to submissions to HUD; and authorizing the Mayor, or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications, or amendments related to the funding allocations set forth in the FY 2024-2025 AAP.

City of Salinas Printed on 5/10/2024Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MAY 14, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
BY: CRISTINA GONZALEZ, COMMUNITY DEVELOPMENT ANALYST
TITLE: UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT FY 2024-2025 ANNUAL ACTION PLAN
RECOMMENDED MOTION:

A motion to approve a Resolution:

1. approving the City of Salinas’ United States Department of Housing and Urban Development (HUD) Fiscal Year (FY) 2024-2025 Annual Action Plan (AAP) and authorizing its submittal to HUD; and

2. authorizing the Interim City Manager to incorporate any necessary minor modifications based upon community feedback and final HUD allocation prior to submissions to HUD; and

3. authorizing the Mayor, or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications, or amendments related to the funding allocations set forth in the FY 2024-2025 AAP.

EXECUTIVE SUMMARY:

The City of Salinas (City) currently administers three (3) federal HUD entitlement programs; Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Emergency Solutions Grants (ESG) , which have assisted and improved numerous low and moderate-income households and neighborhoods throughout the jurisdiction.

To remain eligible for annual allocations of its entitlement funds, the City must prepare and submit a FY 2024-2025 Annual Action Plan in support of its five -year Program Years (PY) 2020-2024 Consolidated Plan (Con Plan). The HUD submission deadline for the City’s FY 2024-2025 AAP is August 16, 2024.

BACKGROUND:

The City is currently operating in Year Four of its HUD approved Program Year 2020-2024 Consolidated Action Plan (Con Plan) which covers the period of July 1, 2020, through June 30, 2025.

The Con Plan was approved by the City Council on August 4, 2020, and provides a strategic, overarching 5-year plan for addressing identified needs and establishes priorities pertaining to HUD CDBG, HOME and ESG entitlement funding. The FY 2024-2025 AAP represents the City’s fifth Page | 2
and final year of proposed projects, activities, programs, and funding amounts to be implemented in alignment with the City’s HUD PY 2020-2024 Con Plan.

FY 2024-2025 Annual Action Plan (AAP)
In accordance with the City’s C itizen Participation Plan (CPP), and to assist in the development of the AAP, the City relied on the robust public participation and consultation for the creation of the existing Alisal Vibrancy Plan, Chinatown Revitalization Plan and the Parks, Rec & Libraries Master Plan t o self -direct its CDBG and ESG funds. To maintain responsiveness to the ever -changing development environment within its jurisdiction, the City continues to maintain an open application for “shovel ready” affordable housing projects seeking HOME funding. T he City continues to regularly engage with developers to best gauge projects, timelines, and potential amounts of funding, but has yet to receive an application for its FY 24-25 funding. The City is opting reserve this allocation and offer it to “shovel ready” affordable housing projects when available.

In preparation of Council’s consideration of this item, this year’s thirty (30) day AAP public comment period initiated with required publication and posting on April 13, 2024, and will conclude on May 14, 2024. Final funding recommendations are being presented to the City’s Housing and Land Use Committee to request support to move the item forward to the City Council for a final public hearing and consideration of approval. Barring the receipt of any significant comments that might require minor modifications, the approved AAP will be submitted to HUD prior to the August 16, 2024, deadline. If significant changes are required as a result of received public input, the City would then take appropriate action to amend its AAP.

The FY 2024-2025 AAP includes funding recommendations for each of the City’s HUD entitlement allocations as well as any accrued Program Income (PI). Annual funding available this year includes $2,015,627 (CDBG); $60,000 (CDBG PI); $812,241 (HOME FY 24-25); $100,000 (HOME PI); and $379,288 (HOME prior FY’s PI) and $182,225 (ESG). The following tables summarize proposed funding recommendations for FY 2024-2025 AAP CDBG, HOME and ESG projects and activities.

Community Development Block Grant (CDBG)
Agency Activity Staff
Recommendation
City of Salinas Program Administration (20%) $415,125
City of Salinas Sherwood Recreation Center – Phase 4 $1,360,502 Eden Council for Hope and
Opportunity
Fair Housing and Tenant/Landlord
Services $75,000
City of Salinas Housing Referrals and Tenant/Landlord
Services $25,000
City of Salinas Salinas Outreach and Response Team $200,000 Total $2,075,627
HOME Investment Partnerships Program
Agency Activity Staff
Recommendation
City of Salinas Program Administration (10%) $91,224
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CEQA CONSIDERATION:

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

STRATEGIC PLAN INITIATIVE:

This agenda item supports each of the City of Salinas Strategic Plan 2022-2025 Goals and Strategies including Economic Development, Housing/Affordable Housing, Infrastructure and Environmental Sustainability, Public Safety , Youth and Seniors , and Effective and Culturally Responsive Government.

DEPARTMENTAL COORDINATION:

The FY 24-25 AAP is administered by the City’s Community Development Department Housing and Community Development Division in coordination with the City Attorney, Public Works, Library and Community Services, and Finance departments.

FISCAL AND SUSTAINABILITY IMPACT:

It is estimated that the City is eligible to receive a total of $10,000,000 (CDBG), $4,000,000 (HOME) and $900,000 (ESG) of HUD funding allocation during the PY 2020-2024 Con Plan period. Council approval of the FY 2024-2025 AAP would make the City eligible to receive $3,070,093 in HUD FY 2024-2025 CDBG, HOME, and ESG entitlement funding. No General Fund impact is associated with this item.

ATTACHMENTS:

Resolution FY 2024-2025 AAP
FY 2024-2025 HUD Annual Action Plan – Draft
Future Agency to be Determined Future Affordable Housing Activity (Including Activity Delivery) $699,180
Future Agency to be Determined Future CHDO Activity to be Determined $501,125
Total $1,291,529
Emergency Solutions Grants (ESG)
Agency Activity Staff
Recommendation
City of Salinas Program Administration (7.5%) $13,667
City of Salinas Salinas Outreach and Response
Team $100,000
Community Homeless Solutions Rapid Re-housing Program $68,558 Total $182,225

RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL

APPROVING THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FY 2024-2025 ANNUAL ACTION PLAN AND AUTHORIZING

SUBMITTAL TO HUD

WHEREAS, the City of Salinas (City) receives and administers United States Department of Housing and Urban Development (HUD) entitlement Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME) and Emergency Solutions Grants (ESG) program funding; and

WHEREAS, the City is currently operating under its approved HUD Fiscal Year (FY) 2020-2024 Consolidated Plan (Con Plan) covering the period of July 1, 2020, through June 30, 2025, which sets forth a five-year strategic plan for addressing identified needs within the context of HUD entitlement CDBG, HOME and ESG funding; and

WHEREAS, the FY 202 4-2025 Annual Action Plan (AAP) describes proposed activities, projects, programs and funding amounts to be implemented with HUD CDBG, HOME and ESG funds; and

WHEREAS, the City relied on the robust public participation and consultation for the creation of the existing Alisal Vibrancy Plan, Chinatown Revitalization Plan and the Parks, Rec & Libraries Master Plan to self-direct HUD’s CDBG and ESG funds; and

WHEREAS, the City has a continuous open application for HOME related projects, but no projects were proposed by affordable housing developers; and

WHEREAS, per the City’s HUD Citizen Participation Plan (CPP), the draft FY 2024-2025 AAP is available for public review and comment for a minimum thirty (30) day period from April 13, 2024, to May 14, 2024; and

WHEREAS, the Housing and Land Use Committee held a meeting on April 30, 2024, to obtain further comments on the draft FY 2024-2025 AAP and unanimously recommended the proposed AAP move forward to the City Council for final consideration; and

WHEREAS, the City Council held a duly noticed public hearing on May 14, 2024 to obtain further comments on the draft FY 2024-2025 AAP; and

WHEREAS, the City will take appropriate action to incorporate any necessary modifications to its FY 2024-2025 AAP based upon community feedback received within the comment period and final HUD allocation prior to submissions to HUD; and

WHEREAS, the City must submit a FY 2024-2025 AAP to HUD for approval by August 16, 2024 in order to remain eligible to receive CDBG, HOME and ESG entitlement funding; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Salinas that it hereby approves the FY 202 4-2025 AAP submittals to HUD, authorizes the Interim City Manager to incorporate any necessary modifications to the approved plan based upon community feedback and final HUD allocation prior to the submission, and authorizes the Mayor or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications, and related documents implementing the funding allocations set forth in the AAP.

PASSED AND APPROVED this 14th day of May 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

______________________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk

DRAFT
City of Salinas
FY 2024-2025 Annual Action Plan
(July 1, 2024 through June 30, 2025)
C
ity of Salinas
Community Development Department, Housing Division
65 W. Alisal St.

Salinas, CA 93901
(831) 758
-7334

DRAFT
AAP FY 2023 SALINAS i
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table of Contents
Executive Summary ..................................................................................................................................... 1 ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ....................................................................... 1 The Process ................................................................................................................................................. 7 PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) .......................................................................... 7 PR-10 Consultation - 91.100, 91.200(b), 91.215(l) .................................................................................... 8 PR-15 Citizen Participation ...................................................................................................................... 14 Action Plan Expected Resources ............................................................................................................. 16 AP-15 Expected Resources – 91.220(c) (1, 2) ........................................................................................ 16 Annual Goals and Objectives ................................................................................................................... 20 AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) &(e) ............................................................ 20 AP-35 Projects – 91.220(d) ..................................................................................................................... 22 Projects .................................................................................................................................................... 23 AP-38 Projects Summary ........................................................................................................................ 23 AP-50 Geographic Distribution – 91.220(f) .............................................................................................. 28 Affordable Housing ................................................................................................................................... 29 AP-55 Affordable Housing – 91.220(g) .................................................................................................... 29 AP-60 Public Housing – 91.220(h)........................................................................................................... 30 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 30 AP-75 Barriers to affordable housing – 91.220(j) ..................................................................................... 32 AP-85 Other Actions – 91.220(k)............................................................................................................. 32 Program Specific Requirements .............................................................................................................. 35 AP-90 Program Specific Requirements – 91.220(l) (1,2,4) ...................................................................... 35 Appendix A: Public Outreach ................................................................................................................... 40 Public Meetings and Summary of Comments .......................................................................................... 40 Public Hearing Notice .............................................................................................................................. 42 Appendix B: Monitoring ............................................................................................................................ 43 Appendix C: SF 424 and Certifications .................................................................................................... 46 List of Tables
Table 1 – Responsible Agencies ................................................................................................................... 7 T
able 2 – Other local / regional / federal planning efforts ............................................................................ 11 Table 3 – Citizen Participation Outreach ..................................................................................................... 15 Table 4 - Anticipated Resources .................................................................................................................. 17 Table 5 – Goals Summary ........................................................................................................................... 20 Table 6 – Project Information ....................................................................................................................... 22 Table 7 – Project Summary ......................................................................................................................... 23 Table 8 - Geographic Distribution ................................................................................................................ 28 Table 9 - One Year Goals for Affordable Housing by Support Requirement ................................................ 29 Table 10 - One Year Goals for Affordable Housing by Support Type .......................................................... 29 DRAFT
AAP FY 2023-24 SALINAS 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
Salinas is a compact urban community within a unique agricultural setting. Unlike the vaguely defined boundaries and sprawl that characterize so much of urban California, the highly productive agricultural lands surrounding Salinas create a distinct urban-agricultural edge that serves as a reminder of the source of the area's economic well -being. The City lies at the north end of the Salinas Valley, known as "The Salad Bowl of the World," and with its mild climate and fertile soil, has become the processing and shipping point for one of the world's largest agricultural centers. Although agriculture forms its economic base, the economy has diversified substantially over the last 20 to 30 years.

This Fiscal Year (FY) 2024-2025 Annual Action Plan (AAP) outlines the final year of implementation of the City’s five- year Consolidated Plan (CP) covering FY 2020 through FY 2024. This AAP serves as the official application to the United States Department of Housing and Urban Development ( HUD) for Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Emergency Solutions Grants (ESG) funds for the City of Salinas (City). The AAP covers the planning period from July 1, 2024 through June 30, 2025.

2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview The FY 2020-2024 CP incorporates the following Performance Measure Objectives/Outcomes associated with each activity funded:

General Objective Categories - Activities will meet one of the following:
• Decent Housing (DH)
• A Suitable Living Environment (SL)
• Economic Opportunity (EO) General
Outcome Categories - Activities will meet one of the following:
• Availability/Accessibility (1)
• Affordability (2)
• Sustainability (3)
The strategies in th e CP, implemented through the A APs, are intended to coordinate with and build upon other established City plans and policies, particularly those set forth in the Salinas General Plan Housing Element ( HE), Regional AI, Economic Development Element (EDE), Alisal Vibrancy Plan (AVP), Chinatown Revitalization Plan (CRP) and Parks, Recreation and Libraries Master Plan ( PRLMP). Strategies also reflect input from residents, service providers, community stakeholders, staff, and City officials. Ranking of needs is based upon multiple factors, including:
• Goals, policies and objectives from the City’s HE, Regional AI, EDE, AVP, CRP, and PRLMP. • F
indings from the assessment of demographic and housing market conditions (detailed analyses contained in the Regional AI and ANSRA).
• St
affing resources, both for the City and relevant providers. • The severity of need among the identified groups and subgroups, including relative needs between income groups.
• Input received from the community.

DRAFT
AAP FY 2023-24 SALINAS 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Likely availability of funds over the coming years for various housing and community development activities, combined with consideration for the most effective use of the limited funds that fall under the purview of the City’s CDBG, HOME, and ESG entitlement programs.

Based upon these factors, needs are assigned one of two priority levels: High or Low, for the purpose of using CDBG, HOME, and ESG funds. The assigned priority represents a relative description of the amount of resources that the City expects to dedicate to the various needs. Assignment of a Low priority does not preclude the City from providing funding or support for activities addressing a particular need . A s such, decisions need to also consider not only the CP priorities, but also the availability of other funding and the priorities established by other entities such as the Housing Authority of the County of Monterey (HACM) and the State of California. The City’s priorities for the FY 2020-2024 CP are identified below:

High Priority:
• Affordable housing for low- and moderate-income households and those with special needs, including seniors, persons with disabilities, large households, and farmworkers, through new construction, rehabilitation, and acquisition/rehabilitation.
• Programs and services focused on the prevention of homelessness and the rapid rehousing of those recently homeless or in imminent risk of becoming homeless.
• Emergency shelters and other homeless facilities, as well as transitional housing for the formerly homeless, including runaway and emancipated youth.
• Public services for low- and moderate-income persons and those with special needs, such as recreational programs focusing on youth and children, particularly gang diversion activities. • Infrastructure improvements in underserved neighborhoods necessary to provide basic levels of safety and habitability.
• Public Facilities, including parks and recreation facilities, libraries, and community and neighborhood centers, particularly in underserved areas.
• Economic development activities to facilitate job creation and retention and job training programs. • Fair Housing and tenant/landlord activities.
• Planning and administration of housing and community development programs.

Low Priority:
• Increased homeownership opportunities for low- and moderate-income households. • Energy conservation opportunities in housing.

3. Evaluation of past performance
During the past year, the City undertook a range of housing and community development activities to benefit primarily low- and moderate -income residents, including persons with special needs. This section highlights some of the accomplishments. Detailed CD BG, HOME, and ESG funded activities are described in the Consolidated Annual Performance and Evaluation Report (CAPER) for FY 202 2-2023, which describes the City’s affordable housing and community development activities between July 1, 2022, through June 30, 2023 . A summary of the City’s accomplishments over the past year will be included in the FY 2023-24 CAPER, due September 28, 2024.

Affordable Housing Multi-Family and Single-Family:
 Monterey County Housing Authority Development Corporation (MCH ADC): The Parkside Manor Housing Development Project – Phase I is located at 1112 Parkside Street in the City of Salinas. In FY 2021- 22, the developer demolished 44 existing senior housing units and committed to the construction of 80 new senior residential units, along with supporting improved infrastructure and amenities. T he Parkside Manor Housing Development Project - Phase I received funding from FY 2019 -20 in the amount of $414,651, and from FY 2020-21 in the amount of $545,889. This project also received $60,000 for Activity Delivery from FY 2020-21 for a grand total of $1,017,540 of HOME funds. On November 23, 2022, construction of the building DRAFT
AAP FY 2023-24 SALINAS 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
was completed with had its grand opening on January 19,2023. City staff worked with the Housing Authority of the County of Monterey and collected all closeout documents. The HOME funds retainer ($19,150.80) was released to HACM on January 10, 2024. In FY 2023-24, City staff closed the project in IDIS.  Interim Inc., Sun Rose Apartments (CDBG): The Sun Rose Apartments project , located at 439 Soledad Street. This project demolished a single-family dwelling for construction of an 11 -unit transitional/permanent supportive housing facility with supportive ser vices for very low -income individuals with men tal health disabilities who are homeless, chronically homeless, or at -risk of homelessness. In FY2020-21, the City awarded Interim $500,000 of CDBG Funs for the construction of the project and $47,860 of Activity Delivery funds for a grand total of $547,860. In FY 2022-23, the City provided an additional $500,000 of HSA funds as a loan to provide gap financing due to budget deficit from inflation cost. The project was completed in September 2023. City staff are working with Interim Inc. staff to collect final closeout documents, release the retainer, and close the project IDIS.
 C
atalyst Apartments Rehabilitation Project: The rehabilitation of the Catalyst Apartments, an affordable rental complex, was spearheaded by Interim Inc., a non-profit developer, beginning March of 2021. The project was awarded $500,000 for the rehabilitation of the five unit one-bedroom apartment complex which will house individuals with mental disabilities and $50,000 for Activity Delivery. The rehabilitation included significant improvements to the building exterior, interior and common areas. The project was completed in January 2022. City and Interim staff reconciled all close out documents, issued the final payment, and close d the project in IDIS in June of 2023.

HO
ME-ARP: The Allocation Plan for the HOME American Rescue Plan (ARP) was developed and was submitted to HUD on March 2023. The City received an initial amount of $145,938.70 in January 2022 out of the total funds $2,918,774. The remaining funds to become available once HUD approves the allocation plan and substantial amendment to the FY 2021-22 AAP. Funding is earmarked to perform two key activities: (1) development and support of affordable housing and (2) provision of supportive services.

ESG Homeless Facilities and Services: The City continued to fund a variety of homeless services and facilities using ESG funds.
• Salinas Outreach and Response Team (SORT): The Salinas Outreach and Response Team continues to service the community as the primary homeless service coordination team for the City of Salinas. InFY 2023 the city total HUD ESG allocation was $182,225. Whereas a total of $100,000 was used to suppo rt the continued operations of the street outreach program. The service delivery outcomes are still underway and will be released in the FY 2023-2024 CAPER. As of now, a total of 56were enrolled and engaged in services with a total of 6housing placements.
• C ommunity Homeless Solutions Rapid Rehousing Program: In FY 2023-2024 the city provided HUD ESG rapid rehousing funding to the Chinatown Navigation Center a 24-hour shelter and housing navigation center located at 114 E. Lake Street in Salinas. The service delivery outcomes are still underway, to date during FY 2 023-24, a total of 300_ persons were served and 29 persons secured housing through financial assistance. • Additionally, the City provided funding for the development of Sun Rose Apartments, a supportive housing facility of 11 units to benefit individuals experiencing severe mental illness and homelessness.

N
eighborhood Conditions: During FY 2023-24, three public service programs were funded with CDBG funds; Salinas Outreach & Response Team (SORT) and Eden Council for Hope and Opportunity (ECHO) serving low and extremely low-income individuals, and the City of Salinas Housing Referrals and Tenant/Landlord Services. The total FY 23-24 outcomes will be posted in the CAPER. To date, SORT has engaged and provided street outreach services to a total of 110 individuals experiencing homelessness and ECHO assisted 163 low-income individuals. The City of Salinas Housing Referrals and Tenant/Landlord Services Project are currently under planning and development stages.

In FY 2022-23, the City continued to implement the rehabilitation of several public facilities:
• Hebbron Family Center Project: The Hebbron Family Center received $1,306,613 in CDBG Funds from a combination of FY 2020-21 and FY 2021-22 funds for the soft cost activities of this project. In addition to these DRAFT
AAP FY 2023-24 SALINAS 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
funds, this project also received $100,000 in Activity Delivery funds from FY 2020-21 and FY 2021-22. City Council approved two substantial amendments to FY 2020-21 and FY 2021-22 Annual Action Plans on May 24, 2022, and CDBG funds for this project are earmarked for soft costs including design, development, and project management. In FY 2022 -23, the NE PA Environmental Assessment for the project was completed submitted to HUD in November 2022. The City amended the NEPA EA for the project on September of 2023 and the City received the AUGF from HUD in November of 2023. The design and development team continued to work on the schematics and design of the new center and that scope of work has been finalized. The project continued into FY 2023 -24 as a Design -Build project and the project has been awarded. The project is expected be completed by December of 2025.
• Sherwood Recreation Center - Phase IV: The City ’s Community Development Department - Housing Division, Public Works and Library and Community Services Departments completed Phase III of this Project in May of 2021. As Phase III was being completed, City staff determined additional work was needed to make this facility fully operational. Funding for Phase IV of this project was first included under FY 2020 -21 AAP.

Subsequently, in FY 2021-22 AAP, additional CDBG funds w added to the project for a grand total $1,728,633 for the direct construction and improvements of the project. In addition to these funds, this project also received $170,000 in Activity Delivery funds from FY 2020 -21 and FY 2021 -22. In April of 2022, C ity staff completed an exempt environmental review record for the soft cost activities of this project. During FY 2021- 22, City staff were also working on the Memorandum of Records as well as the completion of the NEPA Environmental Review for this project , but th at was temporarily placed on hold as the City conducted a substantial amendment. The substantial amendment de -obligated the original funds from the Sherwood Recreation Center and obligated the funds to the Hebbron Family Center. Substantial Amendment numbe r two (2) to FY 2020-21 de-obligated $728,633 of CDBG Entitlement Funds for the renovation activities of this project and $70,000 of CDBG Entitlement Funds towards Activity Delivery. The de -obligated funds were obligated to the Hebbron Family Center. The amounts de-obligated from the Sherwood Recreation Center – Phase IV were re-obligated under the City’s FY 2022-23 AAP as it is the City’s intent to carry forward with this project. On December 2022, the City completed an Exempt ERR for emergency roo f repairs due a severe storm. On November 2022, City staff released a Request for Qualifications (RFQ) for a Project and Construction Management consultant to assist the Housing and Community Development Division with several public facility projects. This RFQ included the Sherwood Recreation Center – Phase IV. The RFQ closed on December 2022 with two proposals submitted. City staff reviewed proposals and conducted interviews. CSG Consultants, Inc. (CSG) were the selected company to assist the City with these servi ces.

The City entered into a Master Services Agreement with CSG in February of 2023. CSG begun the design phase of the project as well as the CEST level ERR for the construction pieces of the project. The design and environmental review phase of the project are expected to be completed by December 2023. The project is expected be completed by June 2024.
• Chinatown Neighborhood Improvements: CDBG Entitlement funds were allocated towards the Chinatown Neighborhood Improvements Project in FY 202 2-23 AAP. A tota l of $ 607,980 in CDBG Entitlement Funds were allocated to several potential construction projects in the Salinas Chinatown neighborhood. In addition to these funds, this project also received $30,000 in Activity Delivery funds from FY 2022-23. In FY 2022-23 ,
C
ity staff attended community meetings and worked with stakeholders in prioritizing Capital Improvement Project(s) in their neighborhood as a result of the Chinatown Revitalization Plan. City staff will complete a N
EPA Environmental Review(s) for identified projects and move forward with the design and construction. In August 2022, City staff completed an Exempt Environmental Review Record for the soft cost activities of the project. On the RFQ for Project and Construction Management that was released in December 2022, this project was included. City staff have engaged CSG to begin working on the project. The City also started collaborating with the Public Works Department to narrow down a more specific project in the Chinatown neighborhood that can be accomplished with the awarded CDBG funds. • First United Methodist Church: FUMC, located at 404 Lincoln Avenue, obtained its demolition and building permits for the reconstruction of their kitchen and bathroom remodel. The demolition work was completed i n
De
cember of 2020. In FY 2021-22, expenditure in the amount of $17,255.19 was disbursed for architectural services and drawings. The building permit was approved, and the project was sent out to bid during the first DRAFT

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quarter of FY 2021-22. FUMC selected CRW Industries Inc as their general contractor and the building permit was issued in January 2022. In FY 2021 -22, inspections for plumbing, framing, electrical and mechanical components were completed. The project was schedule d to be completed in FY 20 22-23, yet d ue to construction supply shortages, the project completion was delayed, and an extension was granted for construction and expenditure of funds to September 2023. In FY 2022 -23, the City disbursed $326,814.54 and retained 5% of the funds ($24,743.10) until project completion. The project was completed in June 2024. • Buckhorn Early Childhood Development Center: The Alisal Union School District (AUSD) and City of Salinas completed the Environmental Assessment for the Early Childhood Development Center and obta in its Authority to Use Grant Funds (AUGF) in November of 2020. After the completion of these two milestones, the City and AUSD have continued to work in the Community Development Block Grant (CDBG) and the Land Use Disposition (LDA) Agreements. These two agreements are almost finalized, and it is expected that these agreements will be executed in the first quarter of FY 2022-23. AUSD submitted this project to the California Division of the State Architect (DSA) for review and approval. DSA approval is expected to be accomplish by May 2023. The project broke ground in September 2023 and is expected to be completed by January 2025 and placed in operations by May 2025.
• Natividad Creek and Closter Park Restroom Rehabilitation Projects: The rehabilitation of t his facility includes ADA upgrades and interior remodel of restrooms. The City funded the project in FY 2019 -20 with CDBG Entitlement Funds in the amount of $442,070. This project is coordinated internally between the City of Salinas’s Community Development, Public Works, and Library & Community Services Departments. In FY 2021-22, City received the Authority to Use Grands Funds (AUGF) from HUD in November of 2021. The Memorandum of Record (MOR) was executed in January 2022, upon the allocation of CDBG Enti tlement Funds. In FY 2022-23, City staff released two Request for Proposals (RFP), in December 2022 and April 2023, but was unable to award contract. After the two unsuccessful RPF’s, staff directly requested proposals from contractors, and awarded the con tract to HA Construction on June 20, 2023. Contractor began rehabilitation of the project in September 2023 and is expected to complete construction by Summer 2024.

CDBG-CV
The City received $1,190,782 of CDBG-CV1 funds and $1,209,375 of CDBG-CV3 funds, for a total of $2,400,157 in CDBG-CV funds through a Substantial Amendment to the FY 2019- 20 AAP. The City continued to expend the CV funds over the FY 2023-2024 period. Specifically, the following activities were underway:
 City of Salinas Housing Information and Re ferral Services: The City of Salinas has been providing housing information, education, and referral services to Salinas residents through the Emergency Rental Assistance Program (ERAP), created in response to the Covid -19 Pandemic. As of June 2023, the Ci ty of Salinas has assisted 272 households through the ERAP Program.  Economic Development Technical Assistance : The Salinas Business Navigator assisted about 285 unduplicated businesses and 233 duplicated businesses. Of those 389 were located in the ANSRA, 292 were existing businesses and 97 were new. About 129 were located outside of this area and 97 were existing and 32 were new. Additionally, businesses were assisted through emails, phone calls, in -person appointment, acquiring and renewing business licenses and city permits and compliance, referrals to community business organizations and promotion of workshops.

ESG-CV
• The City also received $617,245 as ESG -CV1 funds and $5,814,926 in ESG -CV2 funds, for a total of $6,432,171 in ESG-CV funds through a Substantial Amendment to the FY 2019-20 AAP. The City expended the remaining CV funds over the FY 2022-2023 period. The outcomes of these projects can be found in FY 2022-23 CAPER. The projects were closed prior to FY 23-24.

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4. Summary of citizen participation process and consultation process Consultation Meetings: The City conducted one virtual (via Zoom) Public Workshop on March 14, 2024, to discuss its funding California Housing and Community Development (HCD) FY 2024-25 ESG application, award timeline, and to provide technical assistance to interested agencies.

Public Review of Draft Documents: A minimum 30-day public review of this AAP will be held from April 13, 2024 through May 14, 2024. Copies of the Draft AAP will be made available to the public at the following locations:
• Online at the City of Salinas website: http://www.cityofsalinas.org/ • Request via email at [email protected]
During the FY 2020 -2024 CP period, t he final CP, Substantial Amendments (Amendments) , Annual Action Plans (AAPs), ANRSA and CAPER are also available upon request at Salinas City Hall.

Public Hearing: The City Council will conduct a public hearing on May 14, 2024, regarding the City's CDBG, HOME, and ESG allocations and approval of the Annual Action Plan for submittal to HUD. This public hearing will be streamed live at https://salinas.legistar. com/Calendar.aspx and televised live on Channel 25 on the date of the regularly scheduled meeting and will be broadcast throughout the week following the meeting.

The final Consolidated Plan, Substantial Amendments, Annual Action Plans and Consolidated Annual Performance and Evaluation Reports will be available for five years at the Salinas’ Community Development Department.

5. Summary of public comments
TBD.

6. Summary of comments or views not accepted and the reasons for not accepting them TBD.

7. Summary
The City has made diligent and good faith efforts to reach out to all segments of the community that may benefit from the City’s CDBG, HOME, and ESG programs.

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The Process
PR-05 Lead & Responsible Agencies 24 CFR 91.200(b)

1. Describe agency/entity resp onsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following agencies/entities are responsible for preparing the CP and the administration of each grant program and funding source.

Agency Role Name Department/Agency
Lead Agency SALINAS Community Development Department Housing Division CDBG Administrator SALINAS Community Development Department Housing Division HOME Administrator SALINAS Community Development Department Housing Division ESG Administrator SALINAS Community Development Department Housing Division Table 1 – Responsible Agencies
Narrative
The City’s CDBG, HOME, and ESG p rograms are administered by the Housing Division of the Cit y’s Community Development Department. In addition, the City also administers California Department of Housing and Community Development (HCD) ESG and Senate Bill 2 Permanent Local Housing Allocation (PLHA) program funds, California Emergency Solutions and Housing (CESH) funds, Local Housing Trust Fund (LHTF), Prohousing Incentive Program (PIP), and Cal ICH Encampment Resolution (ERF) and Family Homeless Challenge (FHC) funding.

The City was awarded $15 million in Emergency Rental Assistance Program (ERAP) to help low-income families in our community with rental and utility assistance during the COVID-19 pandemic. ERAP ended December 2023.

Consolidated Plan Public Contact Information
For matters concerning the City ’s CDBG, HOME and ESG program s, please contact Francisco Brambila, Acting Planning Manager, City of Salinas Community Development Department – Housing Division, 65 W. Alisal Street, 2nd Floor, Salinas, CA 93901, by phone at (831) 758-7334 and/or via e-mail at [email protected].

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PR-10 Consultation - 91.100, 91.200(b), 91.215(l)

1. Introduction
As part of the development of this AAP , the City consulted and coordinated with non-profit organizations, affordable housing providers, and government agencies regarding the needs of its low- and moderate-income community. These outreach efforts are summarized in the Executive Summary and Citizen Participation sections of this AAP and provided in Appendix A to this AAP.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health , and service agencies (91.215(I)).

The City conducted outreach to various agencies and organizations including:
• Non-profit service providers that cater to the needs of low- and moderate-income households and persons with special needs;
• Local churches and faith-based organizations;
• Groups addressing the needs of individuals exiting institutions; • Schools;
• Affordable housing providers;
• Housing advocates;
• Housing professionals;
• Public agencies (such as school districts, health and social services providers, public works); • Economic development and employment organizations; and • Community and neighborhood groups.

City staff regularly communicate and consult with various nonprofits and public agencies that serve the City’s low- and moderate-income residents and special needs groups to identify needs and plans for future activities. The City has established a Housing and Land Use Committee and Technical Advisory Committee for Housing Policies and Programs to provide additional opportunities and forums for residents, agencies, and organizations to discuss housing and community development needs and plans.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

On an ongoing basis, City Community Development Department staff participate in the following meetings: Continuum of Care (CoC) Leadership Council, CoC Coalition of Homeless Service Providers (CHSP), Coordinated Assessment and Referral System (CARS), HMIS committees facilitated by the CoC, Salinas Downtown Community Board (SDCB) for the Chinatown Area, and CoC Ten-Year Plan to End Homelessness (Lead Me Home Plan), to identify the housing and supportive service needs of its unhoused residents and to consider develop viable, efficient, and outcome-based solutions.

The City is also the Administrative Entity (AE) for the California Department of Housing and Community Development (HCD) Emergency Solutions Grants (ESG), HCD California Emergency Solutions and Housing (CESH) funds, and Cal ICH Encampment Resolution Funding (ERF) and Family Homeless Challenge (FHC) Grant programs and utilizes these funds to further support operations of the newly constructed SHARE Center at 845 E. Laurel Drive in partnership with the County of Monterey. These funds are also used to operate the Salinas Outreach and Response Team (SORT) that DRAFT

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facilitates referrals to homeless services programs and providers and seeks to facilitate partnerships and coordination of services.

The City was allocated Homeless Housing Assistance and Prevention (HHAP) funding from the Coalition of Homeless Services Providers (CHSP) and utilizes HHAP, HCD ESG and HCD CESH funding to support the operations of the Chinatown Navigation Center (CNC) and Sprung at 115-125 E. Lake Street and provide emergency shelter, street outreach, homeless prevention, rapid re -housing services, and to support the Homeless Management Information System (HMIS).

The City spearheaded the planning and implementation of the local CoC 2022 Point-in-Time Count (PIT) within its city limits in collaboration with the Coalition of Homeless Service P roviders. The City actively participated in the development of the CoC’s Lead Me Home Plan. The City co-facilitates Outreach and Rapid Rehousing meetings with other service providers to plan and coordinate efforts and initiatives to end homelessness in Monterey County. The City and the County also oversee the operations of the SHARE Center and the Emergency Shelter Motel program operations. The City makes significant effort to coordinate with the County of Monterey, the City’s Police and Public Works Department to address homelessness.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS.

The Coalition of Homeless Service Providers (CHSP) is a group of private, nonprofit, and public organizations working together to address the complex issue of homelessness. In 2011, Monterey and San Benito Counties merged into one CoC to create an integrated, regional approach to addressing homelessness. The City is a voting member of CHSP and serves as the lead agency and administrative entity for HCD ESG and HCD CESH funds on behalf of the local CoC service area (Monterey and San Benito Counties).

In 2019, the CHSP facilitated a streamlined update of the Lead Me Home Plan. A full comprehensive update of the Lead Me Home Plan (LMHP) was completed in 2020 and was unanimously endorsed by the Salinas City Council on February 1, 2021. The LMHP sets forth the following priorities:
• Assure Access to Adequate Housing: Provide a full continuum of housing options and services to help people who are homeless or at-risk access and maintain permanent housing. • Provide Services, Keep People Housed: Provide integrated, wraparound services to facilitate long -term residential stability.
• Support Economic Stability: Increase economic security for people experiencing or most at- risk of homelessness by providing opportunities to access an income sufficient to afford housing. • Return to Housing: Enhance all medical discharge planning efforts and make housing status a central focus of all exit planning.
• Efforts to Prevent Criminalization of Homelessness: Prevent criminalization of homelessness by supporting the creation of a homeless court or other alternative court programs, homeless outreach teams that divert people experiencing homelessness to community resources, psychiatric emergency response teams, efforts to link people experiencing homelessness with supports and services rather than jail.

CHSP is the local lead HMIS agency for the CoC service area (Monterey and San Benito Counties). In addition, CHSP organizes and coordinates a series of ongoing, highly targeted, HMIS related meetings and trainings designed to enhance data quality, refine policy, and streamline activities at an agency and CoC level. The CoC Leadership Council approved the City to be the Administrative Entity (AE) for the HCD ESG, and HCD CESH programs. The HCD ESG and HCD CESH program funding serves as leverage to other federal and local funding.

The City continues to partner and collaborate with several agencies and jurisdictions to provide outreach, shelter, homeless prevention, and rapid re -housing services to unhoused residents. These programs have been highly successful and continue to demonstrate a tremendous and continued need for these services.

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Describe Agencies, groups, organizati ons, and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities DRAFT

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The following agencies attended the City’s NOFA application workshop and discussed needs in Salinas.

Identify any Agency Types not consulted and provide rationale for not consulting.

All applicable agencies and agency types were consulted.

Other local/regional/state/federal planning efforts considered when preparing the Plan.

Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care (CoC) Coalition of Homeless
Service Providers (CHSP)
Potential funding allocations to address homeless
needs will complement the CoC Strategy.

Lead Me Home Coalition of Homeless
Service Providers (CHSP)
Potential funding allocations to address homeless
needs will be consistent with the Lead Me Home
Plan.

Salinas Plan City Potential funding allocations to address housing and homeless needs will be consistent with the Salinas
Plan.

Economic Development
Element (EDE) of General
Plan
City
Implementation Plan supports youth job training and
Alisal economic development, retention, and
expansion for microbusiness through access to
technical assistance and capital.

Urban Greening Plan City Environmental
Resources Program
Eastside/Alisal is one of three neighborhoods
studied for techniques to improve the quality of life
for residents at the neighborhood level through
enhanced public places and improved open space
to connect people with nature and with each other.

Chinatown Revitalization Plan
(CRP) City
Sets forth recommendations and implementation
strategies to address the housing, access, mobility,
and socioeconomic needs of the neighborhood.

Alisal Vibrancy Plan (AVP) City
Communicates the collective vision of those who
live and work in the Alisal and implement
community-created solutions for strengthening its
neighborhoods.

Parks, Recreation & Libraries
Master Plan (PRLMP) City
This Plan focuses on the system of parks, open
space, and recreational facilities and programs,
which promotes quality of life and healthy lifestyles.

Regional Analysis of
Impediments to Fair Housing
Choice (AI)
City
This study assesses the fair housing conditions in
the participating jurisdictions (Salinas, Seaside,
Monterey, and the Monterey Urban County).

Salinas Housing Element
2023-2031 City
Outlines the City plan of action for facilitating the
development and preservation of housing between 2021
and 2029.

Table 2 – Other local / regional / federal planning efforts

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Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) The City will continue to promote and participate in regional efforts to address housing, community development, and economic development issues, and to enhance coordination between p ublic and private agencies, social service , health, and housing providers, as well as the development community, including:

Monterey County - The City and County coordinate, collaborate and jointly fund the SHARE Center operations in Salinas and an Emergency Motel Shelter Program to assist individuals and families experiencing homelessness.

Coalition of Homeless Services Providers (CHSP) - CHSP is the lead agency for the CoC network and HMIS coordinator. Part of the Coalition’s role within the CoC is to assess gaps in service and develop programs, creating a web of services that leaves no local need unmet. The City is a voting member of the CHSP.

State HCD Continuum of Care (CoC) Programs- The City is the AE for HCD ESG , HCD CESH and Cal ICH programs. California Interagency Council on Homelessness (Cal ICH) – The City was recently awarded two grants from Cal ICH. Encampment Resolution Funding (ERF) seeks to fund local demonstration project that provide services to address the immediate crisis of experiencing unsheltered homelessness in encampments, to support people living in encampment onto paths to safety and stable housing and result in sustainable restoration of public spaces to their intended uses while safeguarding the needs of unhoused people seeking shelter. The Family Homeless Challenge (FHC) seeks to address and end family homelessness by making families’ experiencing homelessness rare, brief, and one-time.

Transportation Agency for Monterey County (TAMC) - TAMC exists to provide regional planning and coordination of transportation issues and funding. The City actively participates in the oversight of TAMC activities and coordinates its own transportation improvement program with that of this regional agency.

Association of Monterey Bay Area Governments (AMBAG) - AMBAG is the designated Metropolitan Planning Organization (MPO) and Council of Governments (COG) organized to serve as a permanent forum for col laboration, planning and study of regional issues of mutual interest to the counties and cities in Monterey, San Benito, and Santa Cruz counties. The City is an active participant in the governance of AMBAG.

Regional Analysis of Impediments to Fair Housing Choice (AI) - The City (lead agency) coordinated wit h the Monterey Urban County (unincorporated areas, Del Rey Oaks, Greenfield, Sand City, and Gonzales), the cities of Monterey and Seaside, as well as with HACM to prepare a Regional AI study. The Regional AI was completed in 2019.

Fair Housing and Tenant-L andlord Services - The City has implemented its own Fair Housing and Preservation Program and has contracted with Eden Council for Hope and Opportunity (ECHO) to provide fair housing and tenant- landlord services and conduct an annual fair housing audit. ECHO assisted in the community outreach process for the Regional AI.

Chinatown Revitalization Plan (CRP): The City and its Chinatown neighborhood partners have undertaken a community-led planning process to continue the revitalization of this critical and culturally important neighborhood located near the Intermodal Transportation Center (ITC) and Salinas Downtown. The process builds on the extensive work from the 2007 and 2010 Plans to develop updated recommendations and implementation strategies to addres s the housing, access, mobility, and socioeconomic needs of the neighborhood. Economic conditions have slowed the implementation of strategies detailed in prior planning efforts. New economic conditions required an updated study to meet the current needs of the neighborhood. The updated CRP will support the social, environmental, and economic health of Salinas’ historic Chinatown district. The strategies, recommendations, and concepts developed through this planning process will guide both future private, public, and social investment. Short and long -term strategies will help identify priorities that will support City staff and partners in proactively managing neighborhood land and resources.

The CRP was completed in December of 2019, and it is currently under the implementation phase. The CRP goals, programs, and objectives have been incorporated into this CP and AAP.

Alisal Vibrancy Plan (AVP): The Alisal community and City staff continue to collaborate and engage on the Alisal Vibrancy Plan. Since 2013, residents and community organizers have advocated for a community-driven plan focused DRAFT

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on East Salinas. The purpose of the plan is to communicate the collective vision of those who live and work in the Alisal area and to implement community-created solutions for strengthening its neighborhoods. The AVP is an opportunity to improve the quality of life for East Salinas families by creating a more vibrant, equitable and healthy community in a way that builds upon the social and cultural wealth of th e Alisal. The AVP was adopted in November 2019. Goals, programs, and objectives in the AVP have been incorporated into this CP and ANRSA.

Alisal Neighborhood Revitalization Strategy Area (ANRSA) – The City’s ANRSA was updated along with the City’s FY 2020-2024 Consolidated Plan. The ANRSA is consistent with and serves as an implementation tool for the Alisal Vibrancy Plan.

Parks, Recreation & Libraries Master Plan (PRLMP) – This Master Plan is a city-wide plan that focuses on updating the vision for Salinas' system of parks, open space, and recreational facilities and programs. CDBG funds may be used to implement the improvements outlined in the Master Plan.

Sixth Cycle Housing Element 2023-2031 – City Council adopted the 2023-2031 Housing Element on December 5, 2023, and the state found this document to be in substantial compliance on February 8, 2024. The Housing Plan provides a strategy for utilizing federal funding to address the jurisdiction's overall housing and community development needs.

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PR-15 Citizen Participation

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting For FY 2024-2025, the City's Citizen Participation process involved the following:
• Public Meeting: The City conducted a HCD ESG FY 2024 NOFA Application Workshop (virtual) on March 14,2024, to assist applicants with the funding application process. • Publicity: Bilingual (Spanish-English) information about the NOFA Application Workshop was distributed through a public notice posted at all three City libraries, City Hall, and Community Development Department facilities and distributed to community partners via email blasts; publication on the City website; publication of the public notice in The Monterey County Herald (English & Spanish language) meeting notices posted in City Hall, City Council chambers, and the City’s Permit Center. • Public Review of Draft Documents: A minimum 30-day public review will be held from April 13 through May 14, 2024. Copies of the Draft Action Plan will be made available for the public at the following locations: City’s website; Salinas City Hall; and Salinas Community Development Department. • Public Hearing: The City Council will conduct a public hearing on May 14, 2024, regarding the City's CDBG, HOME, and ESG allocations. This public hearing was streamed live at https://salinas.legistar.com/Calendar.aspx and televised live on Channel 25 on the date of the regularly scheduled meeting and will be broadcast throughout the week following the meeting. For the most up-to-the- minute Broadcast Schedule for The Salinas Channel on Comcast 25, please visit or subscribe to our Google Calendar located at http://tinyurl.com/salinas25. Recent City Council meetings may also be viewed on the Salinas Channel on YouTube at http://www.youtube.com/thesalinaschannel.

The final Consolidated Plan , Substantial Amendments, Annual Action Plans and Consolidated Annual Performance and Evaluation Reports will be available for five years at the Salinas’ Community Development Department.

Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/
attendance
Summary of
comments
received
Summary of comm
ents not accepted
and reasons
URL (If
applicable)
1 Community
Meetings
Minorities

Non-English
Speaking:

Spanish

Non-
Targeted/
Broad
Community

A total of 10 residents,
businesses,
community
stakeholders, and staff
attended the
Application Workshop
on March 14, 2024.

Comments are
summarized in
Appendix A
All comments were
accepted
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Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/
attendance
Summary of
comments
received
Summary of comm
ents not accepted
and reasons
URL (If
applicable)
2 Newspaper
Ad
Minorities

Non-
Targeted/
Broad
Community
Notice was published
in The Monterey
County Herald.

Notices regarding the
30-day public
comment period (April
13 – May 14, 2024).

N/A N/A
3 30-Day
Public
Review
Minorities

Non-English
Speaking:

Spanish

Non-
Targeted/
Broad
Community
A minimum 30-day
public review was held
from April 13, 2024,
through May 14, 2024.

Copies of the Draft
Action Plan were
made available for the
public at the following
locations: City’s
website; Salinas City
Hall; City Libraries,
Housing Distribution
Group and Salinas
Community
Development
Department.

N/A N/A
4 Public
Hearing
Minorities

Non-English
Speaking:

Spanish
Non-
Targeted/
Broad
Community
On April 30, 2024, a
Housing and Land Use
Committee was
conducted before the
City Council to adopt
the FY 2024-2025
Action Plan.

N/A N/A
Table 3 – Citizen Participation Outreach
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Action Plan Expected Resources
AP-15 Expected Resources – 91.220(c) (1, 2)
Introduction
The City is an entitlement jurisdiction for CDBG, HOME, and ESG funds, and anticipates receiving $2,015,627 in CDBG funds, $812,241 in HOME funds, and $ 182,225 in ESG funds for FY 2024-2025. The City also has approximately $379,288 in unallocated HOME Program funds from previous fiscal years. In addition, the CDBG program anticipates Program Income (PI) of $60,000 and the HOME program anticipates PI of $100,000. Both CDBG PI and HOME PI are incorporated into the City's annual budgeting process.

Backup Projects/Potential Additional Funding
Alternate projects may be possible depending on funding levels of PI, carry over funds or additional funding from HUD.

The AAP will recommend the following non-public service alternate projects:
 Housing Services Program (HSP) which includes the Housing Accessibility Assistance (HAA) grant, Lead - Based Paint (LBP) grant, emergency repairs and single-family housing rehabilitation loans;  Energy conservation improvements;
 Predevelopment, site acquisition/improvement, and/or construction of affordable housing;  Acquisition and rehabilitation of multi-family or single-family housing to be rented to low- and moderate-income renters in the City in conjunction with a non -profit housing developer or non -profit housing organization that provides supportive services and management; and
 Public facilities and infrastructure improvement projects.

DRAFT

AAP FY 2023-24 SALINAS 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
Program
Source
of
Funds
Uses of Funds
Expected Amount Available Year 4 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description Annual
Allocation: $
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG Public -
federal
Acquisition
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
2,015,627 60,000 0 2,075,627 0
The current CP period
covers from July 1, 2020,
through June 30, 2025.

This is the last fiscal year
and action plan covered by
the FY 2020-2024 in the
Con Plan.

HOME Public -
federal
Acquisition
Homebuyer assistance
Homeowner rehab
Multifamily rental new
construction
Multifamily rental rehab
New construction for
ownership
TBRA
812,241 100,000 379,288 2,973,834 0
The current CP period
covers from July 1, 2020,
through June 30, 2025.

This is the last fiscal year
and action plan covered by
the FY 2020-2024 in the
Con Plan.

ESG public -
federal
Conversion and rehab for
transitional housing
Financial Assistance
Overnight shelter
Rapid re-housing (rental
assistance)
Rental Assistance
Services
Transitional housing
182,225 0 0 182,225 0
The current CP period
covers from July 1, 2020,
through June 30, 2025.

This is the last fiscal year
and action plan covered by
the FY 2020-2024 in the
Con Plan.

Table 4 - Anticipated Resources
DRAFT

AAP FY 2023-24 SALINAS 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied:

Affordable Housing: In Salinas’ programs, the most frequent example of leveraging occurs in the development of new affordable housing projects. Due to the high cost of developing housing, it is essential for non-profit housing developers to construct new projects by leveraging and matching financial resources from a variety of sources. No matter the primary source of funding (e.g., federal Low -income Tax Credits, HUD Section 811 financing, USDA housing programs), none will finance the entire cost to develop housing. Salinas uses both CDBG and HOME funds to leverage the participation of other funders.

The flexibility inherent in CDBG rules makes it particularly appropriate for pre-d evelopment process as critical support for non -profits that often are pressed for pre- development funds. Similarly , HOME guidelines emphasize the importance of using HOME to fill in ‘financing gaps’ that often result when projects face more rigid requirements established either by particular loan regulations, or due to the degree of competition for other financing.

Publ
ic Services : For the Public Services subrecipients CDBG funding is often an essential source of funds to access other funds.

Public Facilities and Infrastructure Improvements: Th ere are also other more subtle forms of leverage. Public investment in a particular neighborhood (upgrading water mains or installing traffic signals or street lighting) can be an inducement for additional investment by area property owners affected by the improvements.

Home Match Requirements: Pu rsuant to HUD regulations, all participating jurisdictions (PJs) must contribute or match 25 cents for each dollar of HOME funds spent on affordable housing. The HOME statute allows for a reduction of the matching contribution requirement under three conditions: 1) fiscal distress, 2) severe fiscal distress, and 3) fo r Presidentially declared major disasters. When a local jurisdiction meets one of these distress conditions, it is determined to be in fiscal distress and receives a 50 percent reduction of match. If a local jurisdiction satis fies both distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent reduction of match. As of FY 2023, the City is considered fiscally distressed and receives a 50 percent reduction in HOME match requirement, based on the City’s per capita income ($23,707 ) and poverty level ( 14.24 percent). The City has adequate accrued match from Housing Asset Funds (former redevelopment funds) to be ‘banked’ against its future match requirements.

ESG Match Requirements: T
he ESG program has a dollar-for-dollar match requirement. Federal (non-ESG), state, local, and private funds may be used as a match. The City’s ESG match requirement is satisfied with a variety of funding sources. Subrecipients are required to provide their planned ESG match at the time of funding application submission and with the actual match reported at the end of the program year.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan:

The City is working on establishing several new public/community facilities on City-owned properties:

Chinatown Navigation Center (CNC)
The City purchased the property located on 10- 12 Soledad Street in the Chinatown neighborhood using Salinas Redevelopment Agency (SRA) funds for a future use to be determined. This site was originally intended to serve as a Homeless Services Facilit y; however, due to other needs in the community, the proposed facility was moved to a nearby property at 115-125 East Lake Street and is now operating under multiple funding sources as the Chinatown Navigation Center (CNC). The services provided at the CNC are intended for the City’s unhoused residents and include restrooms, showers, and access to Community Homeless Solutions and other supportive services staff who can conduct outreach to facilitate the needs of individuals requesting services. The City has already entered into a long- term lease agreement for the property and has installed five donated trailers through Governor Gavin Newson’s Office.

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AAP FY 2023-24 SALINAS 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
In addition to the CNC’s existing structures, the City purchased and constructed a Sprung Structure in 2020 to add an additional 51 beds at the CNC site and increase its overall bed capacity to 61. 1081 Buckhorn Drive
The City purchased 1081 Buckhorn Drive with HUD Economic Development Initiatives (EDI) funds with the specific objective to develop a childcare center. This 0.8- acre property is located immediately outside of the ANRSA; it is expected that this Early C hildhood Development Center will primarily serve neighboring Alisal residents. The City continues to work with the Alisal Union School District (AUSD) to develop the site for the District’s Early Childhood (Preschool) and Day Care programs. The City first took an initial Exclusive Negotiating Rights Agreement (ENRA) to City Council on August 15, 2017, and has entered into necessary ENRA extensions with AUSD to allow for the continued due diligence process on the property . The AUSD continues its public engagement process for the project to include various stakeholders and determine future programming and funding for the Center. AUSD and City of Salinas completed the Environmental Assessment (EA) for the Early Childhood Development Center and obtain its Authority to Use Grant Funds (AUGF) in November of 2020. Following the EA & AUGF, AUSD and City of Salinas executed the Land Use Disposition (LDA) Agreement in September of 2022 and the Community Development Block Grant Agreement (CDBG) in August of 2022. AUSD submitted this project to the Division of the State Architect (DSA) for its review in December of 2022 and approval was granted in June of 2023. Construction began in September of 2023. AUSD and City of Salinas signed the CDBG Agreement – Amendment No. One in March of 2024 to allow and encourage AUSD to expend funds more expeditiously, instead of waiting to access the funds in the later stages of construction. As of April 2024, AUSD expensed 90% of the allocated funds . It is anticipated that this project will be completed and in operation by June of 2025.
10-1
2 Soledad Street
The City also owns 10-12 Soledad Street, which is currently being used to provide additional parking capacity for CNC staff as well as for the Salinas Outreach and Response Team (SORT) who are currently operating out of the Moon Gate Plaza development. The City is also assessing adjacent properties in Soledad Street to determine if a larger project can be constructed in the future. Future uses for this site are still yet to be determined. 37-3 9 Soledad Street

The Republic Café is a two-story building with approximately 6,490 square feet of usable space in poor condition due to fire damage and decades of deferred maintenance. This building is the only one in Chinatown currently on the National Register of Historic Places (July 2011) and it was originally built in 1942. The Republic Café is located in a multicultural rich neighborhood in its architecture style and annual events such as the Asian and Obon Festival.

Strategic plans like the Salinas Chinatown Revitalization Plan (December 2019) and the Alisal Neighborhood Revitalization Strategy Area (August 2020 ) support increased economic activity for businesses and expanded community programming for residents. A key priority identified in the Chinatown Revitalization Plan is to support the creation of cultural spaces and an Asian Museum/Cultural Center for Chinatown. The Republic Café has the potential of becoming a museum with five (5) live-work affordable housing units on the second floor. The City and the Asian Cultural Experience (ACE) have partnered to purchase the property and develop the Republic Café into a Cultural Center. ACE is a multi-ethnic non-profit organization dedicated to the historical and cultural preservation of Chinatown.

Founded in 2007, ACE brings together members of the Chinese, Japanese, Filipino communities, students and faculty from California State University – Monterey. The project is on a temporary hold as the City works to achieve site control.

On April 19, 2024, the City made contact with representative who provided updated litigation progress . The City is projected to close escrow by end of July 2024. This will allow the City to continue with rehabilitation plans for the site.

DRAFT

AAP FY 2023-24 SALINAS 20
OMB Control No: 2506-0117 (exp. 09/30/2021)

Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) &(e) Goals Summary Information
Sort
Order Goal Name Start
Year
End
Year Category Geographic
Area
Needs
Addressed Funding Goal Outcome
Indicator
1 Increased
Decent and
Affordable
Housing
2024 2025 Affordable
Housing
Alisal
Neighborhood
Revitalization
Strategy Area

Affordable
Rental
Housing
Opportunities
HOME:
$821,017
Rental units
constructed:
5 Household Housing
Unit
2 Enhanced
Homeless
Prevention,
Services, and
Facilities
2024 2025 Homeless Chinatown
Area
Enhanced
Homeless
Prevention,
Services, and
Facilities
ESG:
$168,558
Public service
activities other than
Low/Moderate
Income Housing
Benefit:
50 Persons Assisted
TBRA/Rapid Re-
Housing: 15
Households Assisted.
3 Enhanced
Neighborhood
Conditions
2024 2025
Non-
Homeless
Special
Needs
Non-Housing
Community
Development
Alisal
Neighborhood
Revitalization
Strategy Area
Chinatown
Area
Public
Services

Public
Facilities and
Infrastructure
Improvements

Economic
Development
CDBG:
$1,660,502

Public service
activities other than
Low/Moderate
Income Housing
Benefit:
80 Persons Assisted

Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit:
50,000 Persons
Assisted
4 Planning and
Program
Administration
2024 2025 Planning and
Administration N/A Planning and
Administration
CDBG:
$415,125
HOME:
$91,224
ESG:
$13,667
N/A
Table 5 – Goals Summary
DRAFT

AAP FY 2023-24 SALINAS 21
OMB Control No: 2506-0117 (exp. 09/30/2021)

Goal Descriptions
1 Goal Name Increased Decent and Affordable Housing
Goal
Description
The City will pursue a range of activities to expand affordable housing opportunities for low- and moderate-income households, including those with special needs (seniors, large households, farmworkers, disabled, homeless, etc.) . Emphasis will be on affordable rental housing due to funding limitations and urgency of needs. The City will actively pursue opportunities through new construction, rehabilitation, acquisition/rehabilitation, and preservation. In addition, the City will continue to aid individual homeowners to make necessary repairs, code corrections, energy conservation features, and accessibility improvements.
2 Goal Name Enhanced Homeless Prevention, Services, and Facilities Goal
Description
In addition to ESG and CDBG, the City intends to leverage multiple grant funds to coordinate services and facilities for the homeless, with focused efforts in the Carr Lake, Chinatown and Downtown area s. The City's strategy for addressing homeless needs is three -pronged: 1) homeless prevention; 2) homeless services; and 3) homeless facilities. The intent is to reduce the risk of homelessness and address the needs of those rendered homeless using a
Continuum of Care approach by supporting services and facilities that complement the existing Continuum of Care system.
3 Goal Name Enhanced Neighborhood Conditions
Goal
Description
The City will provide a range of community developm ent activities, including community and supportive services, expansion/improvement to community facilities and infrastructure, and economic development activities. The City will coordinate services and improvements in a manner that concentrate investments in specific neighborhoods in order to provide more lasting and impactful improvements.
4 Goal Name Planning and Program Administration
Goal
Description
The City will continue to implement the CDBG, HOME, and ESG programs in compliance with all applicable regulations and requirements. The caps for program administration costs (20 percent for CDBG, 10 percent for HOME, and 7.5 percent for ESG) do not provide adequate funds to perform all the general planning, program implementation, reporting, and monitori ng functions required by these programs. Therefore, as allowed by HUD, the City allocates a portion of the funding to activity delivery costs that are directly associated with implementation of specific activities or programs.

Estimate the number of extremely low -income, low -income, and moderate -income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b)

The city is not currently funding any specific activities for affordable housing but has set-aside $821,017 in HOME funds to fund a CHDO activity as well as another affordable housing activity. The City intends to initiate a Request for Proposal (RFP) using HUD and State funding for affordable housing activities at the beginning of the Fiscal Year.

DRAFT

AAP FY 2023-24 SALINAS 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-35 Projects – 91.220(d)
Introduction
During FY 2024-2025, the City will pursue a range of housing and community development activities using CDBG, HOME, and ESG funds.
# Project Name
1 Sherwood Recreation Center – Phase 4
2 ECHO Housing Fair Housing and Tenant/Landlord Services 3 City of Salinas – Housing Referrals and Tenant/Landlord Services 4 Salinas Outreach and Response Team
5 HOME Program Planning and Administration
6 ESG SALINAS - Projects and Administration
7 CDBG Program Planning and Administration
8 HOME to be determined
Table 6 – Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs.

Inadequate funding is the most significant obstacle for serving the underserved needs. The extent of needs in Salinas far exceeds the available funding from the CDBG, HOME, and ESG programs.

Most activities to be pursued by the City with CDBG, HOME, and ESG funds will be leveraged with a variety of funding sources, including grants from State, Federal, and local governments; private foundations; capital development funds; general funds; private donations of funds or services; and other various funding sources. For the provision of affordable housing, the City partners with non- profit housing developers such as Eden Housing, Inc., Interim, Inc., MidPen Housing Corporation (MidPen), Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and Housing Authority of the County of Monterey (HACM) which all utilize a multi-layer approach to funding affordable housing. The City is looking to expand the number of non-profit housing developers that are operating within City limits for FY 2024-2025. To achieve this, the City launched a Housing Forum to provide information on funding opportunities and land disposition.

The HOME program requires that for every HOME dollar spent, the local jurisdiction must provide a 25 percent match with non -federal dollars. However, given the distressed conditions of Salinas, the City consistently receives a 50 percent reduction in the match requirements. HUD has also approved a HOME wavier which includes the CHDO set aside requirement.

Given the limited annual allocations in CDBG funds, the City may pursue the use of the Section 108 loan guarantee within the five-year CP period in order to support large-scale projects.

DRAFT

AAP FY 2023-24 SALINAS 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-38 Projects Summary
Project Summary Information
Table 7 – Project Summary
1 Project Name Sherwood Recreation Center – Phase 4
Target Area Not applicable
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Facilities and Infrastructure Improvements Funding CDBG: $ 1,360,502
Description
Funds will be used to provide Phase IV improvements and rehabilitation to the Sherwood Recreation Center.

Matrix Code: 03F
National Objective: LMA
Presumed Benefit: No
Target Date 06/30/2025
Estimate the number and type of families that will
benefit from the proposed activities This project would benefit the 50,000 low/moderate income persons citywide.

Location Description The Sherwood Recreation Center is located at 920 N. Main Street Salinas, CA 93906 Planned Activities Phase IV involves the completion of the multi-phase community recreation center project. 2 Project Name ECHO Housing Fair Housing and Tenant/Landlord Services Target Area Not applicable
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Services
Funding CDBG: $75,000
Description
ECHO Housing conducts a yearly fair housing audit, fair housing counseling and tenant/landlord mediation. Respond to evictions and assist with the additional demand for eviction mitigation.

Matrix Code: 05J
National Objective: LMC
Presumed Benefit: No
Target Date 06/30/2025
DRAFT

AAP FY 2023-24 SALINAS 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and type of families that will
benefit from the proposed activities This program anticipates assisting 100 persons Location Description Services are provided citywide. ECHO Housing is located at 22551 2nd St Ste 200, Hayward, CA 94541
Planned Activities
Services include responding to inquiries; conducting investigations of fair housing complaints; conducting a fair housing audit; providing tenant/landlord counseling; facilitating tenant/landlord conciliation and mediations; conducing outreach and quarter ly trainings and check -ins with City staff.
3 Project Name City of Salinas - Housing Referrals and Tenant/Landlord Services Target Area Not applicable
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Services
Funding CDBG: $25,000
Description
Legal clinics to prevent displacement and/or eviction, provide individualized legal assistance to qualified households.

Matrix Code: 05K
National Objective: LMC
Presumed Benefit: No
Target Date 06/30/2025
Estimate the number and type of families that will
benefit from the proposed activities This program anticipates assisting 150 persons Location Description Services are provided citywide.
4 Project Name Salinas Outreach and Response Team
Target Area Not applicable
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Services
Funding CDBG: $200,000
Description
To conduct Street Outreach to unsheltered residents and provide essential services, including referrals, basic needs gear, and engagement to homeless encampments.

Matrix Code: 03T
National Objective: LMC
Presumed Benefit: Yes
Target Date 06/30/2025
DRAFT

AAP FY 2023-24 SALINAS 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and type of families that will
benefit from the proposed activities This program anticipates assisting 100 persons Location Description Services are provided citywide. City Hall is located at 200 Lincoln Avenue Salinas, CA 93901 Planned Activities
Activities include engag e and case manage a minimum of 100 unsheltered individuals and corresponding entries/updates into HMIS; provide Coo rdinated Entry Assessments (CARS), conducting trips to distribute supplies, water, and other essentials during to foster rapport building and to increase engagement.
5 Project Name HOME Program Planning and Administration Target Area Not applicable
Goals Supported Planning and Program Administration
Needs Addressed Planning and Administration
Funding HOME: $91,224
Description
The City is allocating 10 percent from the FY 2024-2025 allocation and program income received.

This line item will provid e for the planning and administration activities to implement the City's HOME program.

Target Date 06/30/2025
Estimate the number and type of families that will
benefit from the proposed activities
The delivery of the City's various HOME-funded programs and activities will benefit the City's low- and moderate-income persons and those with special needs.

Location Description The HOME program is administered by the Housing Division of the Community Development Department. City Hall is located at 200 Lincoln Avenue Salinas, CA 93901 Planned Activities The City will perform all planning, administration, monitoring, and review functions in compliance with HUD regulations.
6 Project Name ESG SALINAS - Projects and Administration Target Area Not applicable
Goals Supported Planning and Program Administration
Enhanced Homeless Prevention, Services, and Facilities
Needs Addressed Enhanced Homeless Prevention, Services, and Facilities Planning and Administration
Funding ESG: $182,225
Description The ESG Program will involve a range of activities to address homelessness. These include the provision of outreach, shelters, prevention, rapid re-housing, and HMIS services.

Target Date 06/30/2025
DRAFT

AAP FY 2023-24 SALINAS 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and type of families that will
benefit from the proposed activities
The agencies funded anticipate providing assistance to homeless and at -risk homeless persons as follows:
• City – 50 persons with outreach activities ($ 100,000) and program administration ($13,667)
• Community Homeless Solutions – Rapid Re-Housing ($68,558); 15 homeless persons assisted
Location Description The City's homeless programs are being delivered by multiple agencies to assist the homeless families and individuals citywide. City Hall is located at 200 Lincoln Avenue Salinas, CA 93901 Planned Activities
The following activities are planned:
• Community Homeless Solutions – Rapid Re-Housing (37.6 percent) • City – Homeless outreach (54.9 percent) and ESG Administration (7.5 percent) 7 Project Name CDBG Program Planning and Administration Target Area Not applicable
Goals Supported Planning and Program Administration
Needs Addressed Planning and Administration
Funding CDBG: $415,125
Description This line item is to provide for the general program planning and administration of the CDBG program.

Target Date 06/30/2025
Estimate the number and type of families that will
benefit from the proposed activities
The delivery of various CDBG -funded programs and activities will benefit low - and moderate - income persons in the City, along with persons with special needs, such as the youth, homeless, elderly, and disabled.

Location Description
The CDBG program is administered by the Housing Division of the Community Development Department located at 65 West Alisal Street, Salinas. City Hall is located at 200 Lincoln Avenue Salinas, CA 93901
Planned Activities The City will perform all program planning, administration, monitoring, and review functions in compliance with HUD regulations.
8 Project Name HOME Future Affordable Housing Activity To Be Determined Target Area Not applicable
Goals Supported Increased Decent and Affordable Housing Needs Addressed Affordable Rental Housing Opportunities Funding HOME: $1,200,305
DRAFT

AAP FY 2023-24 SALINAS 27
OMB Control No: 2506-0117 (exp. 09/30/2021)
Description Project to be determined in the future to allocate HOME funds.

Target Date 06/30/2025
Estimate the number and type of families that will
benefit from the proposed activities To be determined
Location Description To be determined
Planned Activities To be determined
DRAFT

AAP FY 2023-24 SALINAS 28
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed.

The City's strategy is to focus its investment in a most impactful manner by providing significant investments in two target areas, its Chinatown HUD designated Slum and Blight target area and its Alisal Neighborhood Revitalization Strategy Area (NRSA). The Chinatown area’s HUD Slum and Blight designation derives from isolation from the rest of the City and i ts prevalence of serious issues such as homelessness, unreported violence, and a high percentage of low- and moderate-income residents. Most public services are available to residents citywide. However, by nature and/or location of some of the activities/programs, most residents from the ANRSA and Chinatown would significantly benefit from many of these programs. For the upcoming year, the majority of CDBG funds will be used to benefit the Chinatown area and to make improvements to the City’s Sherwood Recreation Center Phase IV to benefit the entire community.

The City’s geographic distribution of funds does not add up to 100% as some programs/projects are not located in any single target area, nor are they available city- wide. Programs/projects that are not in a target area or available city - wide are qualified by LMC and are not required to be in a target area.

Geographic Distribution
Target Area Percentage of Funds
Alisal Neighborhood Revitalization Strategy Area 0%
Chinatown Area 0%
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically These two areas represent the most distressed neighborhoods in the City. These areas have the highest concentration of poverty and substandard living conditions. The Alisal area includes some of the most distressed neighborhoods in Salinas. The area faces challenges such as inadequate public infrastructure, high levels of unemployment, high levels of poverty, and violent criminal activity. Within the ANRSA, 26 percent of all residents’ lives in poverty, a higher proportion than the City overall (14.24 percent).

The 12 blocks that form the Chinatown area are located primarily within Census Tract 18.02 Block Group (BG) 2. This BG has an approximate population of 1,200, with 81 percent being low and moderate income.

Discussion
See discussions above.

DRAFT

AAP FY 2023-24 SALINAS 29
OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Under the City's Affordable Housing Goal, the City proposes to reserve 90 percent of the available HOME funds for an affordable housing project to be determined in the future. For the purpose of this AAP, an estimated five rental uni ts are assumed to be assisted with HOME funds.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 5
Special-Needs 0
Total 5
Table 9 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 5
Rehab of Existing Units 0
Acquisition of Existing Units 0
Total 5
Table 10 - One Year Goals for Affordable Housing by Support Type

Discussion
This summary includes only the uses of CDBG and HOME funds for the improvement and provision of long- term affordable housing.

DRAFT

AAP FY 2023-24 SALINAS 30
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
Introduction
HACM owns and manages 32 housing developments in Salinas (879 units). These developments have been converted from Public Housing to Project-Based Rental Assistance. Nineteen of the 22 HACM housing complexes in Salinas are concentrated within the ANRSA.

Actions planned during the next year to address the needs to public housing.

The City is not directly involved in the planning and development of public housing in the City. B ased on the current policy direction of HUD, no new public housing will be developed. However, the City works closely with HACM to create affordable housing in the community.

Actions to encourage public housing residents to become more involved in management and participate in homeownership.

HACM’s Family Self -Sufficiency (FSS) program is designed to help families with a Housing Choice Voucher ( HCV) establish a savings account and find stable employment. FSS is a Federal Government program that offers the opportunity of homeownership and other options to clients that successfully complete the five-year program. Programs and services through FSS may i nclude career counseling, job training, credit counseling and homeown ership preparation. The program helps prepare residents for HACM’s Homeownership Program, allowing first- time homebuyers to use their HCV to help with monthly homeownership expenses.

If the PHA is designated as troubled, describe the manner in which financi al assistance will be provided or other assistance.

Not applicable.

Discussion
See discussions above.

AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City proposes to utilize CDBG and ESG funds to provide assistance to the City's homeless and special needs populations:

Homeless:
• Community Homeless Solutions Chinatown Navigation Center – Rapid Re-Housing Program • City of Salinas – Salinas Outreach and Response Team (SORT) Fair Housing:
 ECHO – Fair Housing and Tenant/Landlord Services that benefit many special needs groups such as seniors and disabled.

Describe the jurisdictions one -y ear goals and actions for reducing and ending homelessness including:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs.

The City implements outreach services with in-house staff the Salinas Outreach and Response Team and coordinates services with partner outreach agencies such as Interim Inc . and other specialized outreach programs. The City DRAFT

AAP FY 2023-24 SALINAS 31
OMB Control No: 2506-0117 (exp. 09/30/2021)
provides ESG funding to Community Homeless Solutions, which operates the Chinatown Navigation Center and its Rapid Re-Housing program to transition those unhoused to permanent housing options.

Addressing the emergency shelter and transitional housing needs of homeless persons For the FY 2024-2025, the ESG program includes funding to support Community Homeless Solutions Chinatown Navigation Center - rapid rehousing services program to place those staying at the CNC into permanent housing options. The City and County also provide funding from local resources to support the operations of the SHARE Center.

The City and County have also partnered to run an Emergency Motel Shelter program which provi des emergency shelter support services, and housing navigation support to individuals and families experiencing homelessness. The City was awarded Cal ICH Encampment Resolution Grant Funding which also pr ovides emergency motel funding to support the operations of the Emergency Motel Program which services unhoused resident living in encampments within the City of Salinas.

Furthermore, the Chinatown Navigation Center Rapid Rehousing program, funded with ESG rapid rehousing funds, will include the provision of rent subsidies, housing relocation stabilization services, financial assistance and housing navigation to program participants. This program will help prevent homelessness or shorten the period of time that individuals experience homelessness.

Helping low -i ncome individuals and families avoid becoming homeless, especially extremely low -income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

Several agencies, such as the Natividad Medical Center and the Monterey County Family and Children’s Services provide discharge planning and placement assistance. The Natividad Medical Center Mental Health Unit and Salinas Valley Memorial Hospital work with community agencies to assist in finding the appropriate level of care and housing.

The Monterey County Family and Children’s Services provides discharge planning and placement assistance to youth leaving foster care through a Transitional Independent Living Plan beginning when the youth turn 16 years old and every year thereafter.

Discussion
See discussions above.

DRAFT

AAP FY 2023-24 SALINAS 32
OMB Control No: 2506-0117 (exp. 09/30/2021)
One-year goals for the number of households to be provided housing using HOPWA for:

Short-term rent, mortgage, and utility assistance to prevent homelessness of the individual or family NA Tenant-based rental assistance NA
Units provided in housing facilities (transitional or permanent) that are being developed, leased, or operated NA
Units provided in transitional short-term housing facilities developed, leased, or operated with HOPWA funds NA
Total NA

AP-75 Barriers to affordable housing – 91.220(j)
Introduction
The most critical barrier to affordable housing in Salinas is the need for decent and affordable housing far exceeds the City's available resources. The City will continue to aggressively pursue funding available at the local, state, and federal levels to supplement its limited funds.

The City values its partnership with non-profit housing developers such as CHISPA, MidPen, Eden Housing, Inc. , HACM, and Interim Inc. in pursuing innovative strategies to addressing the City affordable housing needs, including providing more permanent housing options for the homeless.

Actions it planned to remove or a meliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment.

The City's Inclusionary Housing Program is an effective strategy for providing affordable housing in the community and to help achieve the goal of de -concentrating affordable housing in the A NRSA, allowing residents other locational choices. The State of California also passed SB 329 in 2019, prohibiting housing discrimination against persons using public assistance (including Housing Choice Vouchers) to pay for housing. This source of income protection could potentially open housing options for many of the City’s low- and moderate-income households. The City has updated its Inclusionary Housing Ordinance to enhance the program's effectiveness. This update was completed in June 2017.

The City completed the update to its Housing Element for the 2023 -2031 period. As part of this update, the City identified constraints to housing development, particularly affordable housing. The Housing Element included strategies for expanding the City’s affordable housing inventory . The City has also received the CA HCD Pro Housing Designation.

Discussion
See discussions above.

AP-85 Other Actions – 91.220(k)
Introduction
The extent of housing and community development needs in Salinas far exceeds the City's funding capacity. To utilize its lim ited funding in the most cost -effective manner, the City targets its investments in the most distressed neighborhoods in the community.

Actions planned to address obstacles to meeting underserved needs.

Unhoused city residents are among the most underserved groups in Salinas and available ESG funding continues to fall far below what is needed to address the City's homeless issues. In response, the City continues to take the lead to serve as the Administrative Entity for additional ESG allocations from HCD ESG and HCD CESH programs for the CoC DRAFT

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service area (Monterey and San Benito Counties). Additionally, the City is an active, collaborative partner with the local CoC on the completion of a comprehensive update of the Regional Monterey and San Benito Counties 10 yr. Plan to End Homelessness (Lead Me Home Plan).

Through SORT, ESG funds were used to coordinate employment development for homeless individuals through partnership with Elijah House Foundation Work Crew Program, participants gain needed work experience while being gainfully employed, have an opportunity to sharpen soft skills and gain a wealth of transferable knowledge and other skills.

Downtown Street Team (DST) provide employment training for homeless individuals through neighborhood cleanup activities, and supportive services to help these individuals gain self-sufficiency.

Two areas in the City – ANRSA and Chinatown – both have concentrated issues relating to disproportionate housing needs and inadequate/aging community facilities and infrastructure. By establishing these areas as target areas, the City prioritizes allocating resources to benefit these neighborhoods.

Actions planned to foster and maintain affordable housing.

For FY 2024-2025, the City is setting aside all its HOME allocation and program income (except for 10 percent for administration) for affordable housing development. No specific project has been identified yet. The City will continue to pursue other affordable housing projects with non-profit partners in the County.

Actions planned to reduce lead-ba
sed paint hazards.

As required as a condition of receiving HUD funds, the City complies with HUD's Lead Safe Housing Regulation (Title 24, Part 35). Primary compliance is through City Housing Services Program staff. Potential project sites with housing units constructed prior to 1978 are tested by a certified lead inspection firm (for lead paint and, where applicable, for other possible materials containing lead, such as ceramic tiles). When found, lead remediation is performed by certified LBP contractors before the rehabilitation contractor is permitted to begin work. In addition, regardless of date -of- construction, rehabilitation sites are inspected for failing paint surfaces (chipping, flaking) during the initial rehabilitation evaluation. If such deteriorating paint is found, lead testing is performed, and the necessary steps taken if lead is found.

All general contractors involved in the Rehabilitation/Housing Accessibility Assistance grants have received their certification as an EPA Renovation, Repair and Painting (RRP) contractor.

Lead-based paint testing, remediation and abatement activities are expensive. While such activities are eligible items for rehab loans, the cost was found to be a deterrent to potential rehab clients. The City had established a lead hazard grant program whereby rehabilitation clients are provided a grant sufficient to cover most -if not all- the costs of lead abatement. The lead testing and lead hazard grant policies also ap ply to participants in the Housing Accessibility Assistance (HAA) program, also administered by the Housing Services Program. Due to the COVID-19 Pandemic and shift in funding priorities, the program was suspended. The City is working on re-establishing program within the next two to three years.

Actions planned to reduce the number of poverty-l
evel families.

As a California municipality, the City has very limited control over the existe nce of poverty among its residents.

Nevertheless, the City’s actions – particularly with regard to the use of federal funds covered under this plan – can work to assist those households and individuals currently facing poverty. While the FY 2024-2025 AAP does not propose to allocate funding for business assistance, the City allocated FY 2020-2021 CDBG funds to the Grow Salinas Fund Program, which provided grants to support small businesses by providing low interest loans to help them expand and grow their businesses. This program helped provide employment opportunities for low - and moderate-income residents and increased income for small businesses. The CDBG funds were exhausted, and the City is supporting the program through general funds.

Actions planned to develop institutional structure.

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The City collaborates with the County of Monterey to develop a joint funding application process/system to help reduce administrative work associated with its funding application and program reporting. Use of City Data Services allows for more efficient and accurate management of the funds.

The City has established a Housing and Land Use Committee to provide an additional forum for non -profits, stakeholders, and members of the public to communicate directly with the City regarding housing and community development needs and plans for future projects. The Housing and Land Use Committee is tasked with the objective of enhancing coordination and improving the effectiveness and efficiency in the City utilizing its entitlement HUD funds. Specifically, the Housing and Land Use Committee serves as a formal recommendation body to the City Council regarding housing related items.

The City utilizes CDBG and ESG funds to provide a range of supportive services. The City will also continue to monitor and evaluate the changing needs within the City to determine how best to fund various agencies to assist the low - moderate income residents with CDBG and ESG public services funds.

Actions planned to enhance coordination between public and private housing an d social service agencies.

The City partners with the Housing Authority of the County of Monterey, MidPen Housing Inc., CHISPA, Eden Housing, Inc., and Monterey County Housing Inc. to collaborate on multifamily housing projects, gap financing, and provide Federal, State and Local resource funds. Through this network of public and private housing agencies, the City is able to expand housing and community development programs in the City. The City also uses the internally developed housing distribution list for special events to communicate with stakeholders and agencies as well as coordinate programs and services within our community. Lastly, the City recently started to use an HCD developed list of over 500 housing developers distributed throughout California to inform them of potential funding opportunities within the City.

In 2023, the City also hosted the Housing and Development Forum, which was a hybrid event (in-person and virtual), to inform the public and private housing agencies, nonprofit developers, housing advocates and community members regarding funding opportunities for future projects in the City.

Discussion
See discussions above.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l) (1,2,4) Introduction
This section a ddresses the regulatory requirements of the CDBG, HOME, and ESG programs not covered in the previous sections.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100.00%

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HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

No other forms of HOME investments beyond those previously described.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City suspended its First -Time Homebuyer Program in 2014. Existing loans will be subject to the City's recapture/resale provisions. Pursuant to HUD’s HOME recapture regulations the City has chosen to recapture the entire principal loan balance (direct homebuyer subsidy) to the extent there are net proceeds after the sale of a home and repayments of the first mortgage and closing costs. This indebtedness is due and payable upon sale or transfer of the property, prior to the expiration of the period of affordability, to the extent there are sufficient “net proceeds”. Net proceeds are defined as the amount of sale proceeds remaining (if any) after payment of any superior loan(s) (Other than HOME funds) and customary closing costs. If upon the voluntary or involuntary sale of a property prior to the expiration of the period of affordability there are insufficient net proceeds to pay the balance remaining of the First -Time Homebuyer Program, the homebuyer is relieved from any further obligation to pay the indebtedness.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

The City suspended its First -Time Homebuyer Program in 2014. Existing loans will be subject to the City's recapture/resale provisions. Pursuant to HUD’s HOME recapture regulations the City has chosen to recapture the entire principal loan balance (direct homebuyer subsidy) to the extent there are net proceeds after the sale of the home and repayments of the first mortgage and closing costs. This indebtedness is due and payable upon sale or transfer of the property, prior to the expiration of the period of affordability, to the extent there are sufficient “net proceeds”. Net proceeds are defined as the amount of sale proceeds remaining (if any) after payment of any superior loan(s) (Other than HOME funds) and customary closing costs. If upon the voluntary or involuntary sale of a property prior to the expiration of the period of affordability there are insufficient net proceeds to pay the balance remaining of the First -Time Homebuyer Program, the homebuyer is relieved from any further obligation to pay the indebtedness.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refina ncing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City has no plan to use HOME funds to refinance existing debt.

Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment) All subrecipients receiving funding must establish and consistently apply these written standards:

An initial evaluation to determine program eligibility of individuals and/or families will be conducted by the agencies/service providers. It will establish the kind and the amount of assistance needed for rapid rehousing DRAFT

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funds. Evaluations will be conducted in accordance with the requirements set forth under §576.400(d) and the written standards established under §576.400(e).

Agencies/service providers will reassess the eligibility of individuals and/or families; the kind and amount of assistance needed for program participants receiving homelessness prevention services will be reassessed monthly and quarterly for program participants receiving rapid re- housing assistance. Each reassessment of eligibility will ascertain that:
• The program participant does not have an annual income that exceeds 30% of the median family income for the area, as determined by HUD;
• The program participant lacks sufficient resources and support network necessary to retain housing without ESG assistance.

In order to be funded with ESG funds, an agency/service provider is required to be a collaborative member of the CoC. This avoids d uplication of services and allows a smooth transition and/or delivery of services rendered. In addition, the collaborative further engages and coordinates resources to improve streamlining of current programs and funding strategies and provide ongoing training as procedures and bylaws are ratified and refined.

The City will allow ESG-funded agencies that provide rapid re-housing and homelessness prevention services to determine the prioritization of eligible families. In addition, CHSP established basic registration and screening processes (intake, referral, eligibility, documentation verification, case notes, to name a few) that allow all agencies a more consistent determination on the initial risk assessment during the intake process.

ESG-funded agencies that provide rapid re -housing and homelessness prevention services may determine the share of rent and utilities costs that each participant must pay. However, if applicants show income, they must pay 30 percent of their adjusted monthly income towards rent.

ESG-funded agencies shall assist individuals and/or families for no more than 24 months, during any 3-year period – this in accordance with the general conditions under §576.103 and §576.104. Program participants receiving rapid re-housing assistance are required to be re-evaluated at least once every year and those receiving homeless prevention assistance must be re-evaluated at least once every three months. As mandated by HUD, all program participants receiving project-based rental assistance must have a lease that is for a period of one year, regardless of the length of rental assistance.

Rental assistance may be provided for short -term (up to 4 months) or medium- term (from 4 to 24 months). Rent in arrears is paid to the owner of the housing at the time the security deposit and 1st month’s rent are paid. After 4 months, if program participants need additional financial assistance to remain housed, they must be evaluated for eligibility to receive up to 20 additional months of medium-term rental assistance. Case Managers will provide ongoing case management to transition program participants to independence.

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

CHSP is in the process of developing an assessment system. Due to geography and other factors, the CoC has implemented a “coordinated” assessment and referral system as opposed to centralized asses sment and referral. The Coordinated Assessment and Referral System (CARS) is intended to offer multiple locations to those seeking to access services; each agency doing intake using the same set of agreed- upon assessment and targeting tools; makes referrals using the same criteria; and has access to the same set of referrals. The CARS is designed to improve service provision and data efficiency and improvement through a standardized access and assessment process for all clients and a coordinated referral process for clients to receive prevention, h ousing, and/or other related services. Key CARS strategies include: 1) Tailor to local needs and systems; 2) Ensure access for all in geographic area; 3) Implement in parts/pieces; 4) Use HMIS; 5) ID available resources in system; 6) Quality assurance; and 7) Test and adjust.

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3. Identify the process for making sub- awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

The City is an “Entitlement City” and as such receives a funding allocation relating to population from HUD. The funding, subject to federal budget authorization, is provided on an annual basis and coincides with the City’s July 1 through June 30, fiscal year.

To distribute funds previously mentioned, the City typically conducts an annual Notice of Funding Availability (NOFA). The NOFA process begins with published notices in the local newspapers, both in English and Spanish.

Notifications are sent out to the various non-profit agencies and local service providers. A workshop is held by City staff to assist with proposals and to inform applicants of changes and new regulations.

The application is available online by visiting www.citydataservices.net. All proposals must be submitted electronically. A deadline is provided for the submission of proposals. It is normally a minimum of thirty (30) days from the day the NOFA application notice is published. Applications that are incomplete, lack required attachments, or applications submitted after the published deadline are not to be considered for funding. After the closing date, proposals are first reviewed for completeness and then evaluated against applicable HUD regulations, the City’s CP, City Council goals and objectives, and other related City policies (e.g., General Plan). Funding recommendations are developed by staff from the City’s Housing Division, the CoC, and external County agency staff, taking into account total available funds, applicant experience, project readiness and feasibility, leveraging of funds, track record with City (when applicable), and likelihood for timely use of HUD funds.

Staff recommendations are forwarded to the Housing and Land Use Committee for a formal recommendation to City Council. Then recommendations are taken to City Council for final approval The City Council meets regarding the draft CP and AAP to obtain public and Councilmember comment. Advance notice is published in The El Sol (Spanish) and The Californian (English) newspapers to allow for a minimum thirty ( 30) day public review and comment period in adherence to the City’s CPP. The City Council is the final local decision-making body over HUD entitlement funding and approves recommendations and authorizes the submittal of the CP and AAP and other required documents to HUD.

4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.

Under § 576.405(a) of the Interim Rule, all subrecipients are required to meet the homeless participation requirement, which calls for not less than one homeless or formerly homeless individual on the board or other equivalent policymaking entity. All agencies currently receiving ESG funding meet the homeless pa rticipation requirement by having a formerly homeless person on its board or policymaking entity. This is critical because City standard policies dictate that applicants not meeting this requirement will not be considered for funding.

5. Describe performance standards for evaluating ESG.

The following performance standards for evaluating ESG activities were developed in consultation with the CoC using the format detailed in Section 427(b) of the McKinney -Vento Act (as amended by the Hearth Act). These standards will be used to evaluate each ESG subrecipient’s effectiveness in targeting those most in need, lowering the number of homeless persons, reducing the amount of time people are homeless, and mitigating housing barriers for the participants. Housing Division s taff will continue to work closely with the CoC as well as the subrecipients this year and over time to determine the reasonableness of these standards.

Barriers faced by individuals and families (participants) to the length of time participants remain homeless:
• extent to which participants experience repetitive homelessness • effectiveness of subrecipient in reaching the homeless • overall reduction in the number of homeless
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• job and income growth
• success at reducing the number of participants who become homeless Plan of the subrecipient to:
• reduce the number of participants who become homeless • reduce the length of time participants remain homeless • identify participants who become or remain homeless through collaboration with local education agencies • fulfill other criteria such as: addressing the needs of all relevant subpopulations incorporating comprehensive strategies for reducing homelessness setting quantifiable performance measures setting timelines for completion of specific tasks identification of specific funding sources for planned activities identification of individual/group/agency responsible for overseeing implementation of specific strategies • exercise authority to use funds under section 422(j)
Discussion
See discussions above.

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Appendix A: Public Outreach
Public Meetings and Summary of Comments

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AAP FY 2023-24 SALINAS Appendix-41
OMB Control No: 2506-0117 (exp. 09/30/2021)
Notices and Flyers

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AAP FY 2023-24 SALINAS Appendix-42
OMB Control No: 2506-0117 (exp. 09/30/2021)
Public Hearing Notice

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Appendix B: Monitoring
The City Housing Division maintains accurate records, both program and financial, pertaining to community development activities, including housing and emergency shelter grant activities. Emergency Solutions Grant (ESG) and CDBG-funded public service activities are monitored continuously. Documentation, including activity reports, are required for the submission of all payment requests. All loan servicing functions (pay -offs, partial payments, subordinations, annual affidavits, etc.) of outstanding loans in the City loan portfolio are also handled in -house using City Data Services interactive computer software system.

Housing Staff contracted with a labor compliance consultant as well as collaborates with the City’s Compliance Officer to ensure compliance with federal labor standards requirements (e.g., Davis -Bacon) for all Capital Improvement Projects (CIPs) assisted with CDBG entitlement funds. Further , staff oversee compliance with all federal labor standards requirements on a project-by-project basis for all other CDBG- and HOME-assisted projects, beginning with contract drafting and pre -construction conferences and proceeding through the necessary contractor submittals to project close -out. In limited instances, qualified subrecipients (e.g., HACM, CHISPA and MidPen Inc. ) have the resources to oversee federal labor standards with their own staff or enter into a service contract with a Labor Compliance Consulting entity to oversee all federal labor compliance responsibilities. The PW Compliance Officer as well as Housing Division staff attend and have attended labor compliance training when available through the State or Federal agencies to stay abreast of any regulatory changes.

The City continues to implement its formal process of executing a Memorandum of Record (MOR) with other City Departments upon allocation of CDBG funds for Capital Improvement Projects (CIPs). The MOR continues to serve as an alternate method to a Funding Agreement for ensuring program compliance for federally assisted capital improvement projects. Since implementation of the MOR process, compliance issues have declined, and successful compliance has increased.

The City has also implemented various steps to further ensure compliance by all CIPs with applicable CDBG program regulations. The MOR was enhanced to include additional language pertaining to submittal of reports in a timely manner. This will assist with early detection of critical project impediments with potential to impact the annual CDBG Timeliness Ratio criteria and will allow for implementation of effective remediation steps. Further language was added to the MOR regarding compliance with 24 CFR Part 570.505 applicable to real property within the City’s control which was acquired or improved in whole or in part using CDBG funds in excess of $25,000 and Change of Use Requirements for all Public Facilities & Improvements eligible under §570.201(c). A key focus during assessments is compliance with the adopted Consolidated Plan and the City's Housing Element, plus support to the City Council’s Goals. Information gathered is employed to evaluate progress towards established goals; to confirm compliance with statutory and regulatory requirements of governing federal legislation (e.g., National Affordable Housing Act); to determine possible revisions to City policy and procedure, including the Consolidated Plan and Housing Element; and, to prepare performance reports such as this document.

Monitoring Consolidated Plan and HUD Program compliance: The primary action in this regard occurs during the review of proposals received as a result of the Notice of Funding Available (NOFA). Proposals are evaluated and compared based upon the policies and priorities in place and then City staff’s allocation recommendations are based upon the results of this analysis. Any proposed amendments to the Action Plan during the program year are also evaluated on this basis. In each case, the various timeliness rules, with respe ct to commitment and expenditure of funds, are also considered. All funding agreements contain deadlines governing timely use of funds; Salinas has a long -standing record of meeting CDBG, HOME, and ESG commitment and drawdown standards. Subrecipient funding agreements DRAFT

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require compliance with not only the relevant federal regu lations and OMB guidance but are drafted to ensure that funded activities are carried out as contemplated in the Action Plan. Housing Division staff continues to closely monitor the performance of other City departments whenever they receive allocations of the federal funds in question through the implementation of the Memorandum of Record (MOR) used for program and reporting compliance of CDBG assisted projects.

Compliance with housing standards: Compliance with housing standards is ongoing. Housing Division staff schedule visits to assisted housing sites following completion of construction or rehabilitation. Recipients of deferred payment rehabilitation loans are evaluated every five years to determine feasibility and continued use of a deferred loan or conversion to amortized loans; the process includes a site visit to determine the upkeep of the unit and gathering of financial household information to determine eligibility. Desk monitoring of completed new construction projects is conducted to determine the appropriate intervals for performing site visits; in addition, almost all major projects receive restricted financing from other sources (e.g., federal tax credits, State funds), which typically include rigorous ongoing monitoring requirements.

In addition, the transition of the multi-family reporting process into the CDS database was completed in FY 2013. The CDS database tracks all funded CDBG and HOME multi -family projects from award phase, construction phase to project completion. Thereafter, the project moves into the annual reporting category where it will remain active, meaning Annual Data Collection Forms will be submitted until the expiration of the affordability period. This provides Grantees with a more efficient data gathering process and offers a more consistent method in collecting annual reports and reviewing data for compliance. City staff continues to work with the CDS database programmers to ensure accurate compliance with project’s income/rent restrictions. Various challenges were encountered as numerous affordable housing projects have multiple rent/income restrictions imposed by other program regulations such as the City’s Inclusionary Housing Program and the former Salinas Redevelopment Agency (SRA). Thus, making it arduous to achieve comprehensive program compliance for each restricted unit. Staff continues to research and implement system changes in order to attain comprehensive program compliance for all existing affordable housing projects.

As stated previously, City staff continues to enforce revised reporting policies for all CDBG and HOME projects. Annual, Quarterly or Monthly Reporting is accomplished through CDS. Grantees continue to submit Quarterly Progress Reports (QPR) with reporting periods as follows: Period 1- July 1 to September 30; Period 2-October 1 to December 31; Period 3-January 1 to March 31; and Period 4 -April 1 to June 30. Current reporting requirements during Period four for all CDBG and HOME assisted projects remains the same as prior years as grantees are required to submit an Annual Project Narrative following the end of the fiscal year.

All active FTHB program participants are monitored to determine that homeowners are using subject properties as their principal place of residence, maintaining proper hazard insurance and are current on property taxes. Additional monitoring takes place throughout the year as homeowners contact staff to receive information on refinancing, subordination, loan payoff or just to ask questions about their loans. During these consultations, staff confirms that the information provided matches information in their project file.

As part of the City’s deferred rehabilitation loan program, staff prepared a plan to monitor these loans every five years as stipulated in their agreement; subject properties will be monitored for: deferred loan continued eligibility, using home as their principal place of residence, maintaining proper hazard insurance and are current on property taxes. The City also utilizes CDS as a notification tool to remind staff when a loan is due for a review.

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Public Services: Staff prepares an annual Monitoring Plan. Monitoring of program progress, accomplishments, and compliance with HUD program rules is an ongoing activity conducted by staff by means of thorough review of monthly reimbursement requests, monthly activity reports, and rate of expenditures.

Staff completes a Risk Assessment of every subrecipient every year and in most cases, a Desk Review Monitoring, utilizing two checklists designed for that purpose. The Desk Review Monitoring draws on information in the file, but also documents submitted during the application process (e.g. annual agency audit) since most have submitted applications for the following fiscal year.

The Monitoring Plan normally identifies the agencies to be monitored on -site. The City has been conducting virtual monitoring and electronic review of project flies. The results of the Desk Review Monitoring guide staff in the selection of agencies for the on-site review. Monitoring standards used are HUD’s forms under CDBG standards “Checklist for On-site Monitoring of a Subrecipient” in the “Managing CDBG, A Guidebook for Grantees on Subrecipient Oversight”.

Forms used to complete the monitoring visit are in the “CPD Grantee Monitoring Handbook” under CDBG Entitlement depending upon the type of activity provided. Staff notifies the agency of potential monitoring visit dates to conduct an onsite visit and requests review of program documents such as but not l imited to agency payroll ledgers, employee timecards, receipts for other claimed expenses, the most recent financial audit, personnel policies, equal opportunity policy, case files, and client files that support the reported data for Salinas clients (as noted on the monthly Activity Data Report). After the monitoring visit, a follow-up letter is sent stating the results of the visit. If there are any issues or signs of non-compliance, it is discussed in detail with the program manager/executive director to assist in bringing the agency in compliance at the exit conference.

CDBG-Public Facilities: Public Facility Improvement Projects (where improvements have been completed) are required to annually submit an “Annual Data Collection Form” designed to capture service data such as: the total number of direct beneficiaries, race and ethnicity of each beneficiary, and all data required under HUD’s Community Planning and Development Performance Measurement System. The City’s Housing staff has currently transitioned all open projects to the CDS website, thus streamlining the reporting process and creating an improved database of all funded projects.

As in prior reports, all data continues to be gathered on a monthly and/or quarterly and annual basis. Upon receipt of data, staff continues to review to ensure compliance with appropriate national objectives.

CDBG-Capital Improvement Projects: Staff continues to monitor projects during the design phase, bid opening phase, construction phase and completion phase to ensure compliance with all applicable federal provisions (i.e., Davis- Bacon, Minority Business Enterprise/Women Business Enterprise, Section 3, Executive Order 11246, Executive Order 11063, and Title 24 CFR Part 85). The City continues to revise and improve its ex isting tools to assist with project monitoring during these phases. Such tools include Federal Labor Compliance Checklist; Contractor and Subcontractor Compliance Worksheet; Quarterly Progress Report; and monthly or bi-weekly correspondence with the subrecipient or assigned City of Salinas Building Inspector. Additionally, the City continues to review the previously developed standard CDBG-Bid Specification Package that includes all applicable federal forms and provisions to ensure all forms and data are current. City will continue to assess current process and research better methods for ensuring compliance with all federal provisions. Currently, the established process continues to significantly reduce the amount of staff time previously required to achieve compliance.

As previously reported, Labor compliance in Capital Improvement Projects continues to be a high priority. The Housing Division staff continues to increase their knowledge regarding the Federal labor compliance regulations and continue to attend State and Federal Labor Compliance trainings. Labor compliance consultant(s) was brought on board to assist with monitoring of federal and state provisions.

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Appendix C: SF 424 and Certifications

UNITED STATES DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT
FY 2024-2025 ANNUAL ACTION PLAN
Francisco Brambila, Acting Planning Manager
Community Development Department
May 14, 2024
Background
 HUD Annual Action Plan (AAP)
 Final Year of City’s PY 2020-2024 Consolidated Plan
 Strategic Plan for use of CDBG, HOME and ESG funds
 Describes Planned Activities and Funding
Timeline
 Start of Public Comment Period April 13, 2024
 Housing and Land Use Committee April 30, 2024
 End of Public Comment Period May 14, 2024
 City Council Public Hearing May 14, 2024
 HUD AAP Submission Deadline August 16, 2024
FY 2024-2025 AAP Allocations
Funding Source Amount

CDBG HOME ESG
FY 24-25 Final Allocation $2,143,629 $729,681 $177,152
Estimated Program Income $60,000 $100,000 $0
Prior FY’s Allocations $0 $379,288 $0
Total $2,203,629 $1,208,969 $177,152
CDBG Funding Recommendations
Agency Program HLUC Amount
City of Salinas Program Administration (20%) $415,125 $440,726 City of Salinas Sherwood Recreation Center – Phase IV $1,360,502 $1,462,903 Eden Council for Hope
and Opportunity
Fair Housing and Tenant/Landlord
Services $75,000 $75,000
City of Salinas Housing Referrals & Tenant/Landlord
Services $25,000 $25,000
City of Salinas Salinas Outreach and Response Team $200,000 $200,000 Total Funding $2,075,627 $2,203,629
HOME Funding Recommendations
Agency Program HLUC Amount
City of Salinas Program Administration (10%) $82,968 $91,224 City of Salinas Future Affordable Housing
Activity $637,261 $699,180
Future Agency to be
determined Future CHDO Activity $488,740 $501,125
Total Funding $1,208,969 $1,291,529
ESG Funding Recommendations
Agency Program ESG
Component HLUC Amount %
City of Salinas Program
Administration Administration $13,667 $13,286 7.5%
City of Salinas
Salinas Outreach
and Response
Team
Street
Outreach* $100,000 $95,308 53.8%
Community
Homeless Solutions
Rapid Re-Housing
Program
Rapid
Rehousing $68,558 $68,558 38.7%
* No more than 60% to be used for Street
Outreach and Emergency Shelter Total $182,225 $182,225 100% CEQA Consideration
 The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) per Guidelines Section 15378.

Strategic Plan Initiative
 Economic Development
 Housing/Affordable Housing
 Infrastructure and Environmental Sustainability
 Public Safety
 Youth and Seniors
 Effective and Culturally Responsive Government
Departmental Coordination
 Finance
 Legal
 Library and Community Services
 Public Works
Fiscal and Sustainability Impact
 No General Fund Impact
 All AAP FY 2024-2025 Projects are funded with HUD CDBG, HOME and ESG Entitlement Funds
Recommendation
A motion to approve a Resolution:

1. approving the City of Salinas’ United States Department of Housing and Urban Development FY 2024-2025 Annual Action Plan and its submittal to HUD; and

2. authorizing the City Manager to incorporate any necessary minor modifications to the FY 2024-2025 AAP based upon community feedback and final HUD allocations prior to submissions to HUD; and

3. authorizing the Mayor, or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications, or amendments related to the funding allocations set forth in the FY 2024-2025 AAP.

Questions & Comments
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: 24-246, Version: 1
Submission of 2023 Permanent Local Housing Allocation Program Application and 5-Year Plan Amendment to California Department of Housing and Community Development Approve a Resolution authorizing the submission of the City’s annual application for 2023 Permanent Local Housing Allocation funds to the California Department of Housing and Community Development; submission of an amended Permanent Local Housing Allocation 5-Year Plan; appropriation of 2023 PLHA funds to General Ledger account fund SB2 (2951); and authorizing the Interim City Manager or designee to execute all applicable agreements.

City of Salinas Printed on 5/10/2024Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MAY 14, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT

FROM: LISA BRINTON, DIRECTOR

THROUGH: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER

BY: CRISTINA GONZALEZ, COMMUNITY DEVELOPMENT ANALYST

TITLE: SUBMISSION OF 2023 PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM APPLICATION AND 5 -YEAR PLAN

AMENDMENT TO CALIFORNIA DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT

RECOMMENDED MOTION:

A motion to approve a Resolution authorizing:

1. submission of the City’s annual application for 2023 Permanent Local Housing Allocation to the California Department of Housing and Community Development; and

2. submission of an amended Permanent Local Housing Allocation 5-Year Plan; and

3. appropriation of PLHA funds to General Ledger account fund SB2 (2951); and

4. the Interim City Manager or designee to execute all applicable agreements.

EXECUTIVE SUMMARY:

On December 29, 2023, the California Department of Housing and Community Development (HCD) released the 2023 Permanent Local Housing Allocation Program (PLHA) Program Local Government Formula Component Notice of Funding Availability (NOFA) advising of an inten ded Salinas allocation of $863,162. In response staff has prepared an application for these funds and is proposing an amendment to the City of Salinas (City) PLHA 5-Year Plan to allow for utilization of the funds in alignment with the City Council’s goals and commitments.

BACKGROUND:

In May 2021 , HCD approved the City’s PLHA 5-Year Plan (Plan) with a pot ential award of $6,041,082 for the five-year period. HCD requires submission of an application after the release of yearly NOFAs in order to award funds. The City has submitted applications for the first three years of NOFAs and has been awarded $1,006,846 for year one (2019), $1,564,592 for year two (2020), and $1,722,182 for year three (2021). As a compliant jurisdiction, the City anticipates an allocation of $863,162 for year four (2023 NOFA).

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PLHA program funds are intended to fund housing-related projects and programs that assist in addressing the unmet housing needs of local communities. Based upon engagement and analysis, the City’s current plan includes varying annual percentage allocations of PLHA funds to four (4) eligible activities:
 Extremely low-, very low-, low-, or moderate-income affordable housing development  Accessory Dwelling Unit (ADU) production
 Matching Funds to Local Housing Trust Funds (LHTF)
 Homeless Services Assistance
HCD grants cities with flexibility to craft and amend a Plan that allows jurisdictions to best meet and respond to the immediate and long-term housing needs within the community. With this in mind and in recognition of the fluid and ever -changing environment of homeless services funding, staff recommend the submission of an allowable Plan amendment reflective of the current, critical homeless needs within the community and funding towards the development of low -income multifamily rental units. The Plan amendment will fund three of the four eligible activities, affordable housing development, ADU production, and Homeless services assistance. More specifically, the Plan amendment seeks to adjust percentages in years 4 and 5 to recognize and fulfill the City’s prior commitment to the Homeless service assistance projects and to continue the commitment of funding towards the development of low -income multifamily rental units. Plan years 1, 2 and 3 remained unchanged.

The tables below better illustrate the proposed amendment to the Plan.

Current PLHA 5-Year Plan Allocation
Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
Affordable Housing Development 75% 0% 70% 40% 40%
ADU Production 0% 10% 0% 10% 10%
Matching Funds to LHTF 0% 0% 0% 30% 30%
Homeless Services Assistance 20% 85% 25% 15% 15%
Totals 100% 100% 100% 100% 100%

Proposed Amendment to PLHA 5-Year Plan
Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
Affordable Housing Development 75% 0% 70% 40% 55%
ADU Production 0% 10% 0% 10% 10%
Matching Funds to LHTF 0% 0% 0% 0% 0%
Homeless Services Assistance 20% 85% 25% 45% 30%
Totals 100% 100% 100% 100% 100%
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Fourth Year Allocation Application
Activity Description Year 4  Amount
Program Administration  5%  $43,158
Affordable Housing
Development 40%  $345,265
ADU Production 10%  $86,316
Homeless Services Assistance 45%  $388,423
Total  100%  $863,162
As required by HCD, the City initiated the required 10-day public notice on April 26, 2024, inviting public review and comment. Copies of applicable documents were made available online, in person at the City’s Permit Center, and through email request. The City’s Housing and Land Use Committee received an initial presentation and review of this item on April 30, 2024, in anticipation of the required Council public hearing scheduled for May 14, 2024. City will submit application and amendment to HCD by May 31, 2024.

CEQA CONSIDERATION:

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:

Application and acceptance of the City’s 2023 PLHA allocation and amendment to the City’s 5-Year PLHA Plan supports City of Salinas 2022 -2025 Strategic Plan Goals and Strategies of Housing/Affordable Housing and Effective and Culturally Responsive Government.

DEPARTMENTAL COORDINATION:

This agenda item is administered by the CDD’s Housing and Community Development Division in consultation with the City Attorney and in coordination with the Finance Department.

FISCAL AND SUSTAINABILITY IMPACT:

This item has no impact to the City’s General Fund . PLHA funds will be appropriated to existing General Ledger account fund SB2 (2951).

ATTACHMENTS:

Resolution
HCD PLHA Resolution
2023 PLHA Streamlined Application
PLHA 5-Year Plan Amendment

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

A RESOLUTION OF THE CITY OF SALINAS CITY COUNCIL AUTHORIZING THE

SUBMISSION OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF

HOUSING AND COMMUNITY DEVELOPMENT PERMANENT LOCAL HOUSING ALLOCATION PROGRAM AND 5-YEAR PLAN AMENDMENT

WHEREAS, in May 2021, the California Department of Housing and Community Development (HCD) approved the City’s Permanent Local Housing Allocation (PLHA) program 5-Year Plan (Plan) with a potential award of $6,041,082 for the five-year period; and

WHEREAS, the City of Salinas (City) is an eligible local government that can apply for the PLHA Program to administer one or more eligible activities; and

WHEREAS, HCD may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement and other contracts between HCD and PLHA grant recipients; and

WHEREAS, the City has submitted ap plications for the first three years of NOFAs and has been awarded $1,006,846 for year one (2019), $1,564,592 for year two (2020), and $1,722,182 for year three (2021) to advance affordable housing development, facilitate ADU production, and expand homeless services assistance; and

WHEREAS, the City intends to submit an annual PLHA application to request its fourth year allocation in the amount of $863,162 to the HCD; and

WHEREAS, the City intends to amend its 5-Year Plan to reallocate allocated percentages of funds among selected eligible actives for years four and five to recognize and fulfill the City’s prior commitment to the homeless service assistance projects and to continue the commitment of funding towards the development of low-income multifamily rental units; and

WHEREAS, HCD requires a 10-day comment period for the amendment and the City published a notice on April 26, 2024 in the Herald newspaper with a public comment period ending on May 14, 2024; and

WHEREAS, The City’s Housing and Land Use Committee received a presentation and reviewed this item on April 30, 2024.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City to submit its fourth year allocation application PLHA funds to HCD; and

BE IT FURTHER RESOLVED that the City Council hereby authorizes City to submit the City’s Amended 5 -Year Plan to H CD for review and approval and it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts the City may have with HCD as outlined in the State Resolution; and

BE IT FURTHER RESOVLED that the City Council hereby authorizes the appropriation of PLHA funds to General Ledger account fund SB2 (2951); and

BE IT FURTHER RESOLVED that the City Council hereby authorizes the Interim City Manager or designee to execute all applicable agreements.

PASSED AND APPROVED this 14th day of May 2024, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED

_________________________________
Kimbley Craig, Mayor

ATTEST

_________________________
Patricia M. Barajas, City Clerk
1 Resolution Number: __________
City of Salinas

AUTHORIZING RESOLUTION OF CITY OF SALINAS

AUTHORIZING THE APPLICATION AND AMENDING THE PLHA PLAN FOR THE

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM

A necessary quorum and majority of the Council members of City of Salinas, a municipality (“Applicant”) hereby consents to, adopts and ratifies the following resolution:

A. WHEREAS, the Department is authorized to provide up to $296 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)).

B. WHEREAS, the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 12/29/2023 under the Permanent Local Housing Allocation (PLHA) Program;
C. WHEREAS, the City of Salinas is an eligible Local government who has applied for program funds to administer one or more eligible activities, or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation.

D. WHEREAS, the Department may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other c ontracts between the Department and PLHA grant recipients;
NOW THEREFORE BE IT RESOLVED THAT:

1. If Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all c ontracts Applicant may have with the Department.

2 2. Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix B of the current NOFA $6,041,082 in accordance with all applicable rules and laws.

3. Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules, and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.

4. Pursuant to Sections 302(c)(4) and 302(c)(5) of the Guidelines, Applicant’s PLHA Plan Amendment for the 2020-2023 Allocations is attached to this resolution, and Applicant hereby adopts this PLHA Plan Amendment and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines.

5. If applicable: Applicant certifies that it was delegated by ____________________ to submit an application on its behalf and administer the PLHA grant award for the formula allocation of PLHA funds, pursuant to Guidelines Section 300(c) and 300(d), and the legally binding agreement between the recipient of the PLHA funds and the Applicant is submitted with the PLHA application.

6. If applicable: Applicant certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), “entity” means a housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation.

7. If applicable: Applicant certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest.

8. If applicable: Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements.

9. If applicable: Applicant certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A), (B) and (C).

10. If applicable: Applicant certifies that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government-approved underwriting of the Project for a term of at least 55 years.
3 11. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.

12. The City Manager is/are authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate.

PASSED AND ADOPTED at a regular meeting of the City of Salinas this 14th day of, May 2024, by the following vote:

AYES:

ABSTENTIONS:

NOES:

ABSENT:

Signature of Approving Officer: _____________________________ Kimbley Craig, Mayor

CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, Officer of Patricia M. Barajas does hereby attest and certify that the attached Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the City of Salinas which was du ly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.

ATTEST: ________________________________________
Signature of Attesting Officer

___________________________________
Print Name and Title of Attesting Officer
Final Filing Date: June 30, 2027
at 4:00 P.M. PST
Permanent Local Housing Allocation
(PLHA) Formula Allocation
Application Form for Previous Awardees
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
Department of Housing and Community Development
Program Design and Implementation, PLHA Program
2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833 Email: [email protected]
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/permanent- local-housing-allocation
DRAFT
Threshold items are indicated in "blue" cells.

Sponsor must complete the following worksheets in the PLHA Formula Allocation Application.

Formula Allocation Application
"Red" shaded cells indicate the Sponsor has failed to meet a requirement of the program. Cells in the worksheet shaded in "red" indicate that the Applicant has failed to meet the minimum required.

Applications must be on the Department’s forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format and 'save as' .xls or .xlsx.

Do not 'save as' .xlsm or .pdf format. For application errors please fill out the Application Support worksheet and email the entire workbook to Application Support for application errors at [email protected].

General Instructions (Additional instructions and guidance are given throughout the Formula Allocation Application in "red" text and in cell comments.

Guideline references are made with "§" and the corresponding guideline section number. "Yellow" cells are for Sponsor input. Failure to provide the required attachments and documentation may disqualify your application from consideration. An Applicant must submit a complete application and other documents consistent with the deadlines stated in this NOFA. Applications submitted in response to this NOFA must meet the threshold requirements set forth in this section and in PLHA Guidelines Section 302.

Required attachments are indicated in "orange" throughout the Streamline Application. Failure to provide the required attachments and documentation may disqualify your application from consideration. Electronically attached files must use the naming convention in the PLHA Application. For Example: "App1 Tin" or "Reuse Plan".

Instructions Rev. 03/18/24
When opening this file, a yellow banner at the top may appear with a button that says "Enable Content". It is essential that you click this box so that the macros are enabled. Enabling macros is necessary for full worksheet functionality. Macros do not work with Microsoft's Excel version for Apple Mac.

This NOFA will remain open to eligible applicants through June 30, 2027.

Applications must be submitted electronically to the Department’s HCD Portal Sign In website. To receive an award of CY 2020 funds, applicants are required to submit an application and demonstrate a fully compliant Housing Element and submittal of the applicable Annual Progress Report(s) no later than February 29, 2024. All CY 2020 funds should be requested by June 30, 2024.

Urban County
Checklist
IncludedX
Application and Adopting the
PLHA Plan (2020-2023
Allocations) Reso
Pursuant to section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for 2020-2023 allocations is attached to this resolution, and Applicant certifies compliance with all public notice, comment, and hearing requirements in accordance with the Guidelines.

Document DescriptionElectronic File Name
Disclosure of Application (California Public Records Act Statutes of 1968 Chapter 1473): Information provided in the application will become a public record available for review by the public, pursuant to the California Public Records Act Statutes of 1968 Chapter 1473. As such, any materials provided will be disclosable to any person making a request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including but not limited to, bank accounts, personal phone numbers and home addresses. By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request."
Included?
Included
Included
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content.

PLHA webpage for Plan Adoption Resolution Document , located under the Forms tab.

Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301.

Provide a copy of the signed application. Signature in blue ink preferred.

Included
X App1 TIN Provide a signed Gov't TIN Form
X Plan Adoption Reso
Threshold
Requireme
Included
X Applicant Delegation
Agreement Legally binding agreement between Delegating and Administering Local Governments. Included X Executed Application
X Reuse Plan
PLHA Page 2     Instructions & Checklist
DRAFT
Yes
Yes
Yes
$0.00
Salinas
2020 PLHA Formula Allocation Amount: $0.00
§300(a) and (b) Eligible Applicants for the Entitlement and Non-Entitlement fo rmula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC , Section §5306 and Non-entitlement local governments.

Applicant: City of Salinas
Jim Pia
City:

Address:

County:

Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to anothe r Local Government in its 2020 application, the Applicant (for which information is required below) continues to be the administering Local Government, which received the award. The PLHA award will be made to the Applicant (upon meeting threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement.

Eligible Applicants §300
200 Lincoln Avenue
Which NOFA year(s) are you applying for with this application? 2023 Only $0
$0
$863,162
Allowable Local Admin (5%):

Allowable Local Admin (5%):

Allowable Local Admin (5%):

Admin requested?
Eligible Applicant Type: Entitlement
Local Government Recipient of PLHA Formula Allocation:

Admin requested?
Admin requested?2022 PLHA Formula Allocation Amount: $43,158.00 2021 PLHA Formula Allocation Amount:
§302(c)(5) Applicant certifies that the Plan has not reallocated more than 10 percent of funds among Activities from the approved 5-year Plan included in the PLHA program Standard Agreement, Exhibit E.

No
CA
[email protected]
§300(e) Applicant does not have uncommitted PLHA funds greater than permitted by Section 300(e). Yes §503(b) Applicant has submitted the PLHA Annual Report by July 31 (if applying before July 31), or has submitted the PLHA Annual Report due by July 31 (if applying on or after July 31). Yes
Zip Code:
65 West Alisal StreetAddress:

Lisa Brinton
CA
City: 93901
Yes
§302(a) Housing Element compliance: Applicant and Delegating Local Government's if applicable Housing Element was adopted by the Loca l Government’s governing body by the application submittal date and subsequently determined to be in substantial compliance with state Housin g Element Law pursuant to Government Code Section 65585.

Salinas
Yes
Contact Name:

Address:

Local Government Formula Allocation Rev. 03/18/24
This streamlined application form is limited to Applicants who applied for and received an award from the 2020, 2021, and/or 2022 Formula Allocation NOFA.

Yes
If a reallocation of more than 10 percent of funds was made, Applicant has attached an amended Plan that has been discusse d and approved at a publicly- noticed meeting of the governing body.

CA Zip: 93901 MontereyState:
§302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant.

Threshold Requirements
Title:
93901
§302(b) Applicant and Delegating Local Government have submitted the c urrent or prior year's Annual Progress Report to the Department of Housing and Community Development pursuant to Government Code Section 65400. Yes Did Applicant receive an award from the 2020, 2021, and/or 2022 NOFA Formula Allocation? Title: Community Development
Director
State:

Contact Email:

Interim City Manager
200 Lincoln Avenue
(831) 758-7387
Date
Certifications
Jim Pia
Authorized Representative Printed Name
Interim City Manager
Title
On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block.

Signature
§302(c)(8) If a program income reuse plan was not submitted with the 2020 application, has Applicant attached a program income reuse plan describing how repaid loans and/or accrued interest will be reused for eligible activities specified in Section 301? File Name: Application and Plan Adoption
Reso
Salinas
[email protected]
Auth Rep. Email: Phone:

Yes
File Name: Reuse Plan Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301. Uploaded to HCD? Auth Rep Name:

N/A
N/A
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content.

PLHA webpage for Application and Plan Adoption Resolution Document Uploaded to HCD?
Contact Phone:

SalinasCity:

Yes
Zip Code:
831-758-7381
State:

PLHA Page 3 Formula Allocation Application
DRAFT
Final Filing Date: June 30, 2027
at 4:00 P.M. PST
Gustavo Velasquez, Director
Department of Housing and Community Development
Program Design and Implementation, PLHA Program
2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833 Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/permanent- local-housing-allocation
Email: [email protected]
Business, Consumer Services and Housing Agency
Permanent Local Housing Allocation
(PLHA) Formula Allocation
5-Year Plan Amendment Form
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
DRAFT
§301 Eligible Activities
PLHA Formula - Amendment for years 2020, 2021, 2022, 2023 Rev. 03/18/24 Eligible Applicant Type: Entitlement
Local Government Recipient of PLHA Formula Allocation: Salinas §300 Eligible Applicants
§300(a) and (b) Eligible Applicants for the Entitlement and Non-Entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments.

Applicant: City of Salinas
Address: 200 Lincoln Avenue
County: Monterey
Auth Rep Name: Jim Pia Title: Interim City Manager Auth Rep. Email: [email protected] Phone: 831-758-7381 City: Salinas State: CA Zip: 93901
Zip Code: 93901
Contact Name: Lisa Brinton Title: Community Development Director Contact Email: [email protected] Contact Phone: (831) 758-7387 Address: 200 Lincoln Avenue City: Salinas State: CA
File Name:

Application and/or Adopting the
PLHA Plan (2020-2023
Allocations) Reso
Pursuant to section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for 2020- 2023 allocations is attached to this resolution, and Applicant certifies compliance with all public notice, comment, and hearing requirements in accordance with the Guidelines.

Yes Uploaded to
HCD? Yes
Zip Code: 93901
§300(d) Is Applicant delegated by another Local government to administer on its behalf its formula allocation of program funds? No §300(d) If Applicant answered "Yes" above, has the Applicant attached the legally binding agreement required by §300(c) and (d)?
A sample agreement can be
found by double clicking on
the icon to the right
N/A
Address: 65 West Alisal Street City: Salinas State: CA
File Name: Gov TIN Provide a signed Gov't TIN Form Uploaded to HCD? Yes File Name: Applicant Delegation Agreement Legally binding agreement between Delegating and Administering Local Governments (sample provided—just click on icon in row 19, column AH) Uploaded to HCD? N/A §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. No §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. No
§301(a)(5) Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing. No §301(a) Eligible activities are limited to the following: Select below:
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to Extremely low-,Very low-, Low-, or Moderate-income households, including necessary operating subsidies. Yes §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.

Yes
Document
PLHA Page 2 Formula Allocation Application
DRAFT
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. No §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project.

No
§301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

Yes
§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. No §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. No PLHA Page 3 Formula Allocation Application
DRAFT
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.

The City's 6th Cycle Housing Element which will cover from 20223 through 2031 aims to expand the City’s affordable housing inventory by the following amounts: extremly/very low (920 units); low (600 units); moderate (1,692 units) and above moderate (3,462 units).

Through Program 2: Financial Assitnce and Gap Financing, the City’s aims to provide gap-financing for nonprofit housing developments. For this reason, the City will allocate 75% of the HCD PLHA grant funding in year one (1),70% in year three (3), 40% in year four (4) and 55% in year five (5). The aforementioned Division Street project, falls within the Alisal Neighborhood Revitalization Strategy Area, supporting Action H-5 of the City’s Housing Element. Additionally, Policy H-6 encourages the provision of housing and services for individuals experiencing homelessness through the use of state and federal programs. The City is proposing to leverage 20% of HCD PLHA funds in year one (1), 85% in year two (2), 25% in year three (3), 45% in year four (4), and 30% in year five (5) for best practices such as rapid rehousing, rental assistance, supportive/case management services, operating and capital costs to permenant supportive housing projects to reduce homelessness.

Activities Detail (Activities Detail (Must make a selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §302(c)(4) Plan Rev. 03/18/24
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.

The City of Salinas (City) will allocate HCD Permanent Local Housing Allocation (PLHA) funds to three (3) activities: 1) providing gap financing for construction of multi-family and senior affordable rental housing projects within the City, targeted to households that are 60% AMI or below; 2) creating an ADU Program which provides revolving loans to moderate or low-income households to accelerate ADU production; and 3) supporting the implementation of the Continuum of Care’s 10 Year Plan to Reduce Homelessness, including rapid rehousing, rental assistance, and supportive/case management services to assist in securing or retaining housing; operating and capital costs for Navigation Center and the emergency shelter (Chinatown Navidation Center and SHARE Center) and new construction, rehabilitation, and preservation of permanent and transitional housing (Step Up in Salinas, Step Up on Fairview, and Step Up on Sanborn). §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).

The City will allocate all Activity 1 funding to provide gap financing for construction of multi-family and senior affordable rental housing projects within the City, targeted to households that are 60% AMI or below. There are multiple affordable housing projects in our 5-year pipeline including Parkside Manor Apartments (senior housing), 855 East Laurel Drive (100% affordable rental Multifamily housing project), Division Street Project is on City owned property (Mixed Use/Multifamily housing), and Alisal Marketplace Apartments (Mixed Use/Multifamily housing) is on City owned property. All units produced through these projects that receive PLHA funding will be occupied by households at or below 60% AMI. Over the next five (5) years, the City anticipates this funding will contribute to the production of at least five (5) affordable housing complexes for Activity 1. All new units will have an affordability restriction of 55 years. The City will prioritize affordable housing projects at 60% AMI or below that are essentially “shovel ready”. If multiple projects meet these criteria, the City will conduct a formal Request for Proposal and each application will be rated and ranked similar to the City’s HUD HOME Investment Partnership Program.

File Name: Plan Adoption Reso §302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content. Uploaded to HCD? Yes PLHA Page 4 302(c)(4) Plan
DRAFT
Submit 2023 PLHA Application and Amend
the City’s PHLA 5-Year Plan
Francisco Brambila, Acting Planning Manager
Community Development Department
May 14, 2024
Executive Summary
 December 29, 2023, HCD released the 2023 Permanent Local Housing Allocation Program (PLHA) NOFA
 City's allocation is $863,162
 Application to the California Department of Housing and Community Development Permanent Local Housing Allocation Program and 5-Year Plan Amendment.

Discussion
City of Salinas Current PLHA 5-Year Plan Allocation (2019-2023) Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
Affordable Housing Development 75% 0% 70% 40% 40%
ADU Production 0% 10% 0% 10% 10%
Matching Funds for Local Housing Trust Funds 0% 0% 0% 30% 30% Homeless Services Assistance 20% 85% 25% 15% 15%
Total 100% 100% 100% 100% 100%
City of Salinas Amended PLHA 5-Year Plan Allocation (2019-2023 ) Activity Description Percent Budget Per Year
1 2 3 4 5
Program Administration 5% 5% 5% 5% 5%
Affordable Housing Development 75% 0% 70% 40% 55%
ADU Production 0% 10% 0% 10% 10%
Matching Funds for Local Housing Trust Funds 0% 0% 0% 0% 0% Homeless Services Assistance 20% 85% 25% 45% 30%
Total 100% 100% 100% 100% 100%
City of Salinas PLHA - Fourth Year Allocation Application Activity Description Year 4 Amount
Program Administration 5% $43,158
Affordable Housing Development 40% $345,265
ADU Production 10% $86,316
Homeless Services Assistance 45% $388,423
Total 100% $863,162
Public Notice/Engagement
 10-Day Public Comment Notice published on April 28, 2024, ends on May 14, 2024
 Housing & Land Use Committee meeting on April 30, 2024 Department Coordination
Administered by CDD Housing & Community Development Division in coordination with:
City Attorney
Finance Department
CEQA
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act Guidelines Section 15378.

Strategic Plan 2022-25 Goals and Strategies
 Housing/Affordable Housing
 Funding furthers housing production and homeless services activities Fiscal & Sustainability Impact
 No General Fund Impact
 Annual allocations must be expended within 5 years
Recommendation
Motion to approve a Resolution authorizing:

1. submission of City’s annual application for 2023 PLHA funds to State HCD; and

2. submission of an amended PLHA 5-Year Plan; and

3. appropriation of 2023 PLHA funds to General Ledger
account fund SB2 (2951); and

4. the City Manager or designee to execute all applicable agreements
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-265, Version: 1
Minutes
Approve minutes of May 7, 2024.

City of Salinas Printed on 5/10/2024Page 1 of 1
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200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
City of Salinas
Meeting Minutes - Unofficial
City Council
Mayor Kimbley Craig
Councilmembers:

Carla Viviana González, District 1 - Tony Barrera, District 2 Steve McShane, District 3 - Orlando Osornio, District 4 Andrew Sandoval, District 5 - Anthony Rocha, District 6 Jim Pia, Interim City Manager
Christopher A. Callihan, City Attorney
City Clerk’s Office: (831) 758-7381
4:00 PM SALINAS ROTUNDATuesday, May 7, 2024

PLEDGE OF ALLEGIANCE

ROLL CALL
Councilmember Tony Barrera
Councilmember Carla Viviana Gonzalez
Councilmember Steve McShane
Councilmember Orlando Osornio
Councilmember Anthony Rocha
Councilmember Jose Andrew Sandoval
Mayor Kimbley Craig

Present: 7 -

GENERAL PUBLIC COMMENTS
Received public comment from members of the public in attendance and on Zoom.

PROCLAMATIONS & COMMENDATIONS
The Salinas City Council proclaimed and commended:

Asian American, Native Hawaiian, and Pacific Islander Heritage Month, May 2024 National Police Week and Peace Officers Memorial Day, May 15 - 21, 2024 National Public Works Week, May 19 - 25, 2024
Older Americans Month, May 2024
Asian Cultural Experience 15th Annual Fair
David J. R. Mack, Former Measure E Oversight Committee Member

PUBLIC HEARING
ID#24-210 Republic Services Garbage and Recycling Rates FY 24-25 Received report from Senior Civil Engineer Jamie Platz regarding the Republic Services proposed rates for Solid Waste, Recycling, and Green Waste Collection Services for Fiscal Year 2024-25. Fees reflect an increase of 4.18% (or $1.40) for a 32-gallon residential trash service from $33.47 to $34.87 per month. The increase consists of

May 7, 2024City Council Meeting Minutes - Unofficial

2.33% ($0.78) (4.0% CPI increase to the collection element of the rate) for Republic Services CPI, 0.94% (or $0.31) for SVSWA AB 939 fees, 0.29% (or $0.10) for recycling processing, and 0.63% (or $0.21) for City franchise fees. Commercial services monthly rate for a customer with a 3-cubic yard bin collected once per week will increase 4.41% (or $22.97) from $521.23 to $544.20 per month. The increase consists of 2.61% (or $13.61) (4.0% CPI increase to the collection element of the rate) for Republic Services CPI, 1.13% (or $5.91) for SVSWA AB 939 fees, and 0.66% (or $3.45) for City franchise fees. Commercial customers continue to have the option to reduce their monthly rates by taking advantage of recycling opportunities and/or by reducing service levels for underutilized capacity. Official report filed with the City Clerk.

The following audience members commented on the report:

Eric Petersen
David Maisonneuve
Jose Guerra, Monte Bella
Malcom, Monte Bella
Chris Barrera, Advocate for the Republic Services Drivers German Hernandez, Republic Services General Manager
MOTION
Councilmember Barrera moved to continue the proposed annual adjustment to June 18, 2024 and directed staff to provide the City Council with additional information regarding the previously requested performance audit of Republic Services. Motion was second by Councilmember Sandoval.

SUBSTITUTE MOTION
Councilmember McShane moved to approve a Resolution finding the proposed annual adjustments to Republic Services of Salinas' Schedule of Service Fees and Schedule of Rates for Residential and Commercial Customers effective July 1, 2024, to be within the terms of the Collection Services Agreement as presented. Motion was second by Mayor Craig. Motion failed by the following votes: AYES: Councilmembers McShane, Osornio and Mayor Craig. NOES: Councilmembers: Barrera, Gonzalez, Rocha and Sandoval.

Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, the City Council moved to continue the proposed annual adjustment to June 18, 2024 and directed staff to provide the City Council with additional information regarding the previously requested performance audit of Republic Services. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember Rocha and Councilmember Sandoval
4 -
Noes: Councilmember McShane, Councilmember Osornio and Mayor Craig3 -

Enactment No:

CONSIDERATION
ID#24-149 Pavement Management and Street Selection Policy Received report from City Engineer Adriana Robles regarding the Pavement Management and Street Selection Policy update to strategically distribute funding to address pavement deterioration. Allocation of funding to Major Streets allows for available funds to be used more effectively on roadways used. Following a two-phase process that incorporates Social Factors for Residential Street, prioritization will provide an equalization and socially conscious distribution of available pavement improvement funds

May 7, 2024City Council Meeting Minutes - Unofficial
to better address pavement needs. Official report filed with the City Clerk.

The following audience members commented on the report:

Malcom
Eric Petersen
Peter Szalai
Mary Ann Worden
Jose Guerra
Upon motion by Councilmember Barrera, seconded by Councilmember Gonzalez, Resolution accepting the findings of the 2023 Pavement Management Program Update and approving the Pavement Management and Street Selection Policy was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember Osornio, Councilmember Rocha and Councilmember Sandoval
5 -
Noes: Councilmember McShane and Mayor Craig2 -

Enactment No: RES 22953

CONSENT AGENDA
ID#24-277 Minutes
Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, the minutes of April 23, 2024 were approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -
ID#24-269 Financial Claims
Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, the financial claims report was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -
ID#24-154 Professional Services Agreement with MNS Engineers, Inc. for Construction Management Services for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510
Upon motion by Councilmember Rocha, seconded by Councilmember McShane, Resolution authorizing the Interim City Manager to negotiate and execute a Professional Services Agreement with MNS Engineers, Inc. for construction management services for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510 in an amount not to exceed $1,829,248 was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

May 7, 2024City Council Meeting Minutes - Unofficial

Enactment No: RES 22954
ID#24-156 Boronda Road Congestion Relief Project Phases 1 and 2A (CIP 9510) - Sparling Ranch Credits Purchase
Upon motion by Councilmember Rocha, seconded by Councilmember Sandoval, Resolution authorizing the Interim City Manager to enter into an Agreement with South Bay Conservation Resources, LLC for the purchase of 11.06 Sparling Ranch Conservation Credits in an amount not to exceed $608,300 for the Boronda Road Congestion Relief Project Phases 1 and 2A was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22955
ID#24-211 Compact Utility Tractor and Verticutter-Seeder Purchase Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing the Interim City Manager to execute the purchase of one (1) 2024 John Deere 2025R Compact Utility Tractor, (1) Verticutter-Seeder and allow for a 10% contingency for a total amount not to exceed $56,532 was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22956
ID#24-221 Surplus Vehicles and Equipment for Disposal
Upon motion by Mayor Craig, seconded by Councilmember Sandoval, Resolution pursuant to Salinas Municipal Code section 12-15 declaring vehicles and equipment surplus and authorizing their disposal was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22957
ID#24-230 Envisio Solutions, Inc. Public Dashboard Software Annual Subscription Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing the Interim City Manager to execute the annual subscription agreement with Envision Solutions, Inc. (Envisio) for an amount not to exceed $31,500.00 for a 1-year subscription to the Envisio public dashboard software, licenses, and online support services was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

May 7, 2024City Council Meeting Minutes - Unofficial

Enactment No: RES 22958
ID#24-235 2024-2025 Restriping Prioritization List
Upon motion by Councilmember Gonzalez, seconded by Councilmember Osornio, Resolution approving the 2024-2025 Restriping Prioritization List was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 222959
ID#24-251 Emergency Sherwood Hall HVAC Control System Replacement Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing the Interim City Manager to execute all necessary documents related to the emergency HVAC Control System Replacement at Sherwood Hall through the existing on-call service contract with ESI for $196,312 to include a 20% ($39,262) contingency for a total amount not to exceed $235,574 was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22960
ID#24-252 Granicus, LLC Subscription Renewal - Government Experience Cloud Solution
Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing a subscription renewal with Granicus, LLC for Government Experience Cloud solution in an amount not to exceed $36,933.75 for FY 2024/25 was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22961
ID#24-253 Granicus, LLC Subscription Renewal - Government Transparency Suite Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing the subscription renewal with Granicus, LLC to provide a legislative agenda management and meeting efficiency solution in an amount not to exceed $40,938.14 and authorizing the Interim City Manager to enter into an agreement with Granicus LLC for the subscription renewal was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22962

May 7, 2024City Council Meeting Minutes - Unofficial
ID#24-256 Amendment No 1 to On-Call Master Service Agreements Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing Amendment No.1 to the Master Services Agreement (MSA) for Professional Services to for On-Call Master Architectural Services, Civil Engineering and Project Management, Material Testing, NPDES Support Services, Land Surveying, and Traffic and Transportation Services, to establish a not to exceed limit of three million dollars ($3,000,000) for each contract was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22963 - 22968
ID#24-257 Memorandum of Understanding with Public Safety Cadets Upon motion by Councilmember McShane, seconded by Councilmember Sandoval, Resolution authorizing the Interim City Manager to execute a Memorandum of Understanding with Public Safety Cadets was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22969
ID#24-258 Direct Purchase of MBIS Multimodal Expert Workstation for Fingerprint Processing
Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing the direct purchase of the MBIS Multimodal Expert Workstation from IDEMIA, previously approved via Resolution 22050, for an updated cost not to exceed $42,607.50 was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22970
ID#24-262 Fire Apparatus Direct Purchase
Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution authorizing the direct purchase of one (1) fire engine and one (1) aerial ladder truck from Golden State Fire Apparatus, Inc. for a total not to exceed $2,945,094.88; and authorizing the appropriation of $120,094.88 to CIP 9540 was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22971

May 7, 2024City Council Meeting Minutes - Unofficial
ID#24-278 Modification to the Classification - Salary Schedule, Reclassification, and Workforce Allocation Adjustment
Upon motion by Councilmember Barrera, seconded by Councilmember Sandoval, Resolution modifying the Classification - Salary Schedule to 1) add the classifications of Permit Analyst, Assistant Public Works Director/City Engineer, Retired Annuitant - Senior Civil Engineer, and Senior Wastewater Operator; 2) approve the recommended reclassifications and workforce adjustments in the Community Development Department, Finance and Public Works Departments; 3) approve a recruitment and retention incentive for the Police Services Records Division non-sworn staff (Supervising Police Services Technician and Police Services Technician classifications) was approved. The motion carried by the following vote:

Ayes: Councilmember Barrera, Councilmember Gonzalez, Councilmember McShane, Councilmember Osornio, Councilmember Rocha, Councilmember Sandoval and Mayor Craig
7 -

Enactment No: RES 22972
COUNCILMEMBERS’ REPORTS, APPOINTMENTS AND FUTURE AGENDA ITEMS

CLOSED SESSION
The City Council recessed to closed session at 7:00 p.m. pursuant to:

ID#24-261 a. Pending Litigation - California Government Code Section 54956.9(a), conference with legal counsel regarding Louis Montano, et al. v. City of Salinas, et al. (Monterey County Superior Court Case no. 21CV003635).

PUBLIC DISCLOSURE
Pursuant to California Government Code section 54957.1, there were no reportable actions on closed session matters.

ADJOURNMENT
APPROVED:
__________________________
Mayor/Chair
ATTEST:
__________________________
City Clerk/Secretary

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-259, Version: 1
November 5, 2024 General Municipal Election
Approve a Resolution ordering the November 5, 2024 General Municipal Election and ordering a Special Election for Councilmember District 3 for the City of Salinas, requesting consolidation with the November 5, 2024 election and requesting the County of Monterey Department of Elections to conduct the election.

City of Salinas Printed on 5/10/2024Page 1 of 1
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Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MAY 14, 2024
DEPARTMENT: ADMINISTRATION
FROM: JIM PIA, INTERIM CITY MANAGER
PATRICIA M. BARAJAS, CITY CLERK
BY: ALEXIS MEJIA, ASSISTANT CITY CLERK
TITLE: NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION

RECOMMENDED MOTION:

Approve a Resolution ordering the November 5, 2024 General Municipal Election and ordering a Special Election for Councilmember District 3 for the City of Salinas , requesting consolidation with the November 5, 2024 election, and requesting the County of Monterey Department of Elections conduct the election.

EXECUTIVE SUMMARY:

Salinas City Charter provides for elections to be held in accordance with California Elections Code as long as they are not in conflict with the Charter. California Elections Code Division 10 outlines the general provisions and procedures for the conduct of local and consolidated elections. The terms of Councilmembers’ District 1, 4, 6 and the office of the Mayor are set to expire following the November 5, 2024 election and certification of the results.

Council is asked to consider ordering an election pursuant to California Elections Code section 10002 and Salinas City Charter section 3.3, order a Special Election for the vacated District 3 City Council seat in accordance with City Charter section 2.7, requesting that the County of Monterey Department of Elections conduct the election, and request that it be consolidated with the regularly scheduled November 5, 2024, General Municipal Election.

BACKGROUND:

Pursuant to Salinas City Charter Article 2 Section 2.5 and 2.6 , the following Council seats shall expire in November 2024: Mayor ( Kimbley Craig ); Council members District 1 (Carla V.

Gonzalez); District 4 (Orlando Osornio); and District 6 (Anthony Rocha). The Mayor is elected at-large for a two-year term. Councilmembers are elected by district for a four-year term.

Additionally, at the City Council meeting of April 9, 202 4 District 3 Councilmember Steve McShane formally announced his resignation from District 3 effective May 10, 2024 leaving a vacancy in the District 3 Councilmember seat. On April 23, 2024 the City Council considered Page | 2
options to fill the vacancy consistent w ith Charter Section 2.7 and voted to appoint a resident of District 3 to fill the vacancy from June 11, 2024 thru a Special Election to be consolidated with the November 5, 2024 General Municipal Election. The District 3 term will be a 2 -year term to align with the completion of the previous Councilmember (McShane) 4-year term.

In keeping with the California Elections Code, the regular nomination filing period opens on Monday, July 15, 2024, and closes on Friday, August 9, 2024. The regular filing period will be extended to Wednesday, August 14, 2024, for any office for which the incumbent does not file or fails to qualify in accordance with Election code 10225 and Charter Section 2.5 . The municipal election shall be consolidated with the Presidential General Election on November 5, 2024. The resolution authorizes the City Clerk to procure the services of the County of Monterey Department of Elections for conducting the election. Notice of the election for officers must be published by no later than July 3, 2024. August 9, 2024 is the last day to request consolidation of the election or add initiatives to the November 5, 2024 ballot.

The City Clerk, as the Elections Official for the City of Salinas hereby requests the City Council’s authorization to consolidate the election for the aforementioned offices to be held on November 5, 2024.

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:

Consolidating the election on November 5, 2024, with the General Election and authorizing the Monterey County Elections Department to conduct the election on the City’s behalf supports the City Council’s strategic goal of Effective & Culturally Responsive Government.

DEPARTMENTAL COORDINATION:

The City Clerk is charged with the duty of conducting the election pursuant to California Elections Code section 320 with consultation from the City Attorney as needed.

FISCAL AND SUSTAINABILITY IMPACT:

County of Montere y Department of Elections estimates that Salinas’ share for the cost of the election to be between $ 7.00 to $10.00 per registered voter, for a total estimated cost to the City between $472,885 and $675,550. Consolidating the City’s General Municipal Election with the General Election provides cost sharing with other jurisdictions within the County. Partial funding will be included in the Proposed FY 2024/25 Budget. Should additional appropriation be required, the City will include it in the Mid-Year Budget process.

ATTACHMENTS:

Resolution
Page | 3
Monterey County Election letter and Documents, April 24, 2024 Page | 1

RESOLUTION NO. _________ (N.C.S)

RESOLUTION ORDERING THE NOVEMBER 5, 2024 GENERAL MUNICIPAL

ELECTION AND ORDERING A SPECIAL ELECTION FOR COUNCILMEMBER DISTRICT 3 FOR THE CITY OF SALINAS, REQUESTING CONSOLIDATION WITH THE NOVEMBER 5, 2024 ELECTION, AND REQUESTING THE COUNTY OF

MONTEREY DEPARTMENT OF ELECTIONS CONDUCT THE ELECTION

WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city or district may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the city or district relating to the conduct of an election. The city or district shall reimburse the county in full for the services performed upon presentation of a bill to the City or district ; and

WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and

WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district, city or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation. The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and

WHEREAS, pursuant to Elections Code Section 13307, whenever an election called by a district, city, or other political subdivision has offices to be filled, it is required to fix and determine the number of words that a candidate may submit on the candidate's statement to be either 200 or 400 words and to determine if the candidate shall be responsible for the cost of the statement; and

WHEREAS, Elections Code Section 15651 requires the city to determine the means and manner in which a tie vote is to be resolved in the event that two or more persons receive an equal number of votes and the highest number of votes ("tie votes") for an office to be voted upon; and

WHEREAS, various district, county, state and other political subdivision elections may be or have been called to be held on November 5, 2024; and

NOW THEREFORE, BE IT RESOLVED AND ORDERED that the governing body Page | 2

of the City of Salinas hereby orders an election be called and consolidated with any and all elections also called to be held on November 5, 2024 insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the Board of Supervisors of the County of Monterey to order such consolidation under Elections Code Section 10401 and 10403.

BE IT FURTHER RESOLVED AND ORDERED that pursuant to Elections Code Section 10002 said governing body hereby requests the Board of Supervisors to permit the County of Monterey Department of Elections to provide any and all services necessary for conducting the election and agrees to pay for said services.

BE IT FURTHER RESOLVED AND ORDERED that the County of Monterey Department of Elections conduct the election for the purpose of electing five (5) Members to said governing body on the November 5, 2024 ballot.

RECITALS

SECTION I. The General Municipal Election for the year 2024 is hereby called and shall be held in Salinas, under and by virtue of the provisions of Article 3 of the Charter of said City and California Elections Code, on the 5th day of November 2024, said date being the first Tuesday following the first Monday in November 2024. Said election shall also include the office of District 3 Councilmember to fill the vacancy consistent with Charter Section 2.7 and Salinas City Council action of April 23, 2024 for a two-year term.

SECTION II. The following officers of Salinas shall be elected at said General Municipal Election, to wit:

 Mayor, one (1), for a term of two years from the City at large.  District No. 1, one (1) Councilmember for a term of four years.  District No. 3, one (1) Councilmember for a term of two years.  District No. 4, one (1) Councilmember for a term of four years.  District No. 6, one (1) Councilmember for a term of four years.

SECTION III. Nomination papers shall be filed with the Salinas City Clerk’s Office not later than 4:00 p.m. on Friday, August 9, 2024, except that the nomination filing period will be extended to 4:00 p.m. on Wednesday, August 14, 2024 for the office of Mayor, District 1, District 3, District 4, or District 6 if the incumbent does not f ile or fails to qualify by close of the regular nomination period on August 9, 2024.

SECTION IV. Pursuant to the provisions of Section 13307 of the Elections Code of the State of California, the City Council has determined that candidates for office may f ile a written statement of qualifications with their nomination papers, said statement not to exceed 200 words in length, with those candidates filing said statements to pay the cost of such statement as determined by the Registrar of Voters.

SECTION V. The official ballot to be used at said election shall conform to the provisions Page | 3

of the Charter of said City and the laws of the State of California with relation thereto.

SECTION VI. The City authorizes the Registrar of Voters to consolidate this election with any other election to be held on November 5, 2024 for the convenience of the registered voters and to effectuate any cost savings by such consolidation.

SECTION VII. The County of Monterey Department of Elections is hereby directed to publish such notices as are provided by law for the holding of the municipal election, which said notices shall be published in an adjudicated newspaper and circulated in the City of Salinas and hereby designated for that purpose.

SECTION VIII. Said General Municipal Election shall be held and conducted, and the votes thereof canvassed, and the return thereof made, and the results thereof ascertained and determined as herein provided, and in all particulars not described by this Resolution, said General Municipal Election shall be held as provided by law for the holding of municipal elections in said City; and the Registrar of Voters of the County of Monterey is authorized to canvass the return and certify the results to said Council of Salinas.

SECTION IX. Pursuant to Salinas Charter Section 3.4 for any municipal election for Mayor or for Councilmember, there shall be no choice between candidates by reason of two or more candidates having received an equal number of votes, then the City Council shall proceed to determine the election of such candidates by lots.

SECTION X. The City Clerk shall enter the results into the record following receipt of the declared results in accordance with Elections Code Section 10264. The City Clerk shall sign and deliver to each person elected a certificate of election and administer the oath of office to each person elected. This Resolution shall be forthwith entered upon the minutes of this Council and kept and maintained by the City Clerk of Salinas.

SECTION XI. The City Clerk is hereby authorized and directed to certify to the due adoption of this Resolution and to transmit a certified copy to the Department of Elections and the County of Monterey Board of Supervisors .

PASSED AND APPROVED this 14th day of May 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

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#24-264, Version: 1
Acceptance of Sale of Jet West, LLC to Imperial Aviation, LLC dba Gate One Approve a Resolution approving and authorizing the stock sale of Jet West, LLC to Imperial Aviation, LLC, dba Gate One and consenting to the assignment of the Lease Agreement and related permits and agreements from Jet West LLC to Imperial Aviation, LLC dba Gate One.

City of Salinas Printed on 5/10/2024Page 1 of 1
powered by Legistar™

Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MAY 14, 2024
DEPARTMENT: PUBLIC WORKS, AIRPORT DIVISION
FROM: DAVID JACOBS, PE, LS, DIRECTOR
BY: MATTHEW NELSON, AIRPORT MANAGER
TITLE: ACCEPTANCE OF SALE OF JET WEST INC. TO IMPERIAL

AVIATION, LLC DBA GATE ONE

RECOMMENDED MOTION:

It is recommended that City Council approve a resolution approving and authorizing the stock sale of Jet West LLC to Imperial Aviation, LLC, dba Gate One and consenting to the assignment of the Lease Agreement and related permits and agreements from Jet West LLC to Imperial Aviation, LLC dba Gate One.

EXECUTIVE SUMMARY:

The stock sale and consenting of the assignment of the Lease Agreement and related permits and agreements would allow the sale between Jet West LLC and Gate One.

BACKGROUND:

The City of Salinas (“City”) and Jet West, Inc. (“Jet West”) entered into a Lease Agreement effective October 1, 2009, for a forty -year term, pursuant to which the City granted Jet West the right to use certain parts of the Salinas Municipal Airport (“Airport”) for certain permitted uses including the use of office space, hangar space, and aircra ft parking areas. Jet West has been a successful tenant of the Airport since coming to Salinas and continues to be an asset to the Airport.

More specific Lease Agreement terms are provided below for the Council’s reference.

Jet West has informed the Airpor t Manager that they intend to sell their operations to Imperial Aviation, LLC dba Gate One and has requested the City to consent to the assignment of the Lease Agreement and all related permits and agreements to Gate One so that Gate One may commence operations at the Airport and take over the space currently occupied by Jet West. The Lease Agreement allows Jet West to assign its interest in the Lease Agreement subject to the City’s prior consent.

Page | 2
At the April 25, 2024, meeting, the Airport Commission recom mended approval of the item, thereby advancing the sale of Jet West Inc. to Imperial Aviation, LLC dba Gate One, to the City Council for final approval.

Use of Leased Premises

A. The permitted uses include the following:

1. Aircraft maintenance and repair services including sales of parts and accessories.

2. Operation of a fully accredited pilot training school.

3. Operation of an air taxi service.

4. Aircraft rental.

5. Aircraft leasing and/or sales.

6. Sales of pilot supplies and reference materials.

7. Sale of aircraft petroleum products.

8. Temporary or long-term storage of aircraft; and

9. Operation of a rental car service or facilitation of such service through a car rental operator.

B. Fuel Facility. Lessee leases a fuel facility on the Airport owned by the Lessor, as more particularly shown and described on Exhibit A (CCA Fuel Lease) for the purposes of operating a fuel facility.

Term of Leased Premises

A. Term: All space other than fuel facility. The term of this Lease for the Leased Premises, with the exception of the fuel Facility portion, shall be for a period of forty (40) years commencing on October 1, 2009 (Commencement Date) and ending on September 31, 2049 ("Termination Date") unless extended or sooner terminated in the manner and under the conditions herein provided (the "Original Term"). Lessor grants to Lessee an option to extend this Lease for a period of ten (10) years.

B. Term: Fuel Facility. The term of this Lease for the Fuel Facility portion of the Leased Premises shall be a period of 20 years commencing on December 1 2, 2006, and ending on December 11, 2026, with an option to renew for a period of 10 years.

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:

This action supports the City Council’s Goals of Effective and Culturally Responsive Government.

Page | 3
DEPARTMENTAL COORDINATION:

The process of administering these projects involve the following department s: Public Works, Finance, and Legal. Public Works Department overs ees the development of the project’s plans, specifications, and estimates. The Finance Department administer s the proper appropriation of funds. T he Legal Department review s pertinent documents/contracts to ensure the City is in compliance with applicable laws and regulations.

FISCAL AND SUSTAINABILITY IMPACT:

There is no impact to the City’s General Fund.

ATTACHMENTS:

Resolution
Original Lease between the City of Salinas and Jet West, Inc.

CCA Fuel Lease
Resume of Buyer

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

A RESOLUTION ACCEPTING THE SALE OF JET WEST INC. TO IMPERIAL AVIATION, LLC. AT THE SALINAS MUNICIPAL AIRPORT AND CONSENTING TO THE ASSIGNMENT OF THE LEASE AGREEMENT FROM JET WEST INC. TO IMPERIAL

AVIATION, LLC

WHEREAS, Jet West, Inc. desires to enter into the stock sale of Jet West LLC (“Jet West”) to Imperial Aviation, LLC, dba Gate One (“Gate One”) and cons enting to the assignment of the Lease Agreement and related permits and agreements; and

WHEREAS, Jet West intends to sell their operations to Gate One and has requested the City to consent to the assignment of the Lease Agreement and all related permits and agreements to Gate One so that Gate One may commence operations at the Airport and take over the space currentl y occupied by Jet West.

WHEREAS, The Lease Agreement allows Jet West to assign its interest in the Lease Agreement subject to the City’s prior consent.

WHEREAS, at the April 25, 2024 Airport Commission meeting, the Airport Commission recommended City Council approve the sale of Jet West to Gate One.

THEREFORE, BE IT RESOLVED that City Council consents to the assignment of the Lease Agreement from Jet West Inc. to Imperial Aviation, LLC.

PASSED AND APPROVED this 14th day of May 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

___________________________
Kimbley Craig, Mayor

ATTEST:

- 2 -
_____________________________
Patricia M. Barajas, City Clerk
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SALINAS MUNICIPAL AIRPORT

LEASE AGREEMENT
This Lease Agreement ("Lease") is entered into by and between the City of Salinas, a municipal corporation of the State of California (hereinafter referred to as "Lessor") and Jet West LLC, a Nevada limited liability company hereinafter referred to as "Lessee").

RECITALS
WHEREAS, Lessor owns and operates an airport in the City of Salinas, State of California, commonly known and described as Salinas Municipal Airport {hereinafter .. Airport''); and
WHEREAS, Lessee desires to lease office and hangar space and aircraft parking areas at the Airport in and adjacent to 280 Mortensen A venue and 70 Mortensen A venue; and
WHEREAS , it is mutually agreed ~ the letting hereunder is upon and subject to the following terms, covenants, conditions, and provisions, and Lessee covenants~ as a material part of the consideration of this Lease, to keep, perfonn, and comply with each and all of said terms, covenants, conditions, and provisions by Lessee to be kept, perfonned, and complied with, and this Lease is made upon the condition of such petformance and compliance.

NOW, THEREFORE, in mutual consideration of the terms, covenants, and conditions contained herein the parties hereby agree as follows:

TERMS

1. Leased Premises. The premises leased to Lessee are herein referred to as the "Leased Premises", are a portion of the Airport, and are more accurately described and shown on the Exhibits attached hereto and incorporated herein by reference. Such Leased Premises include hangar and office space consisting of a 6,400 sq. ft. maintenance hangar, 4,500 sq. ft. of office and classroom space and 1,400 sq. ft. of shop and warehouse space (all as shown on Exhibit A), 144 sq. ft. of terminal building office space (as shown on Exhibit ID, a City-owned underground fueling facility comprised of two 12,000 gallon fuel storage tanks, one for l 0011 and one for Jet A (in the location shown on Exhibit C), and 50,000 sq. ft. of aircraft parking ramp located adjacent to the hangar, office and other spaces described above (as shown on Exhibit D).

2. Use of Leased Premises.

A. Permitted Uses. Lessee hereby leases the Leased Premises for the following purposes:

Salinas Municipal Airport
Jet Wost FBO Lease
August 27, 2009

---------

1. Aircraft maintenance and repair services including sales of parts and accessories;

2. Operation of a fully accredited pilot training school;

3. Operation of an air taxi service;

4. Aircraft rental;

5. Aircraft leasing and/or sales;

6. Sales of pilot supplies and reference materials;

7. Sale of aircraft petroleum products;

8. Temporary or long tenn storage of aircraft ; and

9. Operation of a rental car service or facilitation of such service through a car rental operator.

B. Fuel Facility. Lessee hereby leases a fuel facility on the Airport and owned by the Lessor, as more particularly shown and described on Exhibit C (or a replacement site as provided in section 3 B ohhis Lease), for the purpose of operating a fuel facility (the ''Fuel Facility" as follows):

1. Use and maintenance of an underground aviation fuel facility and ancillary improvements.

2. Storage and dispensing of petroleum products to the public and storage of refueling trucks and ancillary equipment. Petroleum products may be brought onto the Airport for the subsequent use and sale (line service) of said products by Lessee, as follows:
a. Petroleum products to be received and sold by Lessee to the public shall consist of aircraft fuel, oil, and lubricants;
b. Lessee may receive and sell other petroleum products for which there is no provision in this Agreement. if Lessee first obtains written approval from Lessor's Airport Manager. Said approval shall be accompanied by additional fees, charges or payments, which will be determined by Lessor and which shall be paid by Lessee as consideration for the additional privileges;
c. Lessee shall have the right to employ and train persons to dispense said petroleum products;
d. Lessee is hereby authorized to have not more than four (4) fuel servicing vehicles ("refuelers'') on Airport. Additional vehicles must be approved beforehand by Lessor's Airport Manager;
e. Lessee agrees that all petroleum product storage, pwnping or distribution facilities used by Lessee on Airport shall meet all requirements of, and be in strict compliance with all applicable laws, ordinances, and regulations of any governmental authority;
f. Lessee may dispense petroleum products on common areas of Airport and upon such areas for which Lessee has received prior consent from Lessor's Airport Manager.

Salfuu Municipal Allport
Jet West FBO Lease
August 27, 2009
Page2 of30
----------

3. Lessee shall not perform maintenance on any refueler or other vehicle on any aircraft-parking ramp (other than ramp area within the Leased Premises) or on any common area of the Airport.

C. Use Restrictions.

1. Lessee agrees that in the furnishing of any services pursuant to this Lease, Lessee shall comply with the Commercial Operating Standards adopted by the Salinas City Council on June 16, 2009 (attached as Exhibit E), as the same ~y reasonably be amended from time to time, and shall further comply with all applicable state and local laws, rules, and regulations, and applicable Federal Aviation Administration Regulations.
l . Lessee shall not use the Leased Premises or any part thereof, nor permit them to be used for any purpose(s) other than for those described above. Lessee shall not do or permit to be done on the Leased Premises any act or thing which constitutes a nuisance or which may disturb the quiet enjoyment of Lessor, any other tenant of Lessor or private businesses on adjacent land or neighboring property. If Lessor notifies Lessee that such a nuisance or disturbance exists, Lessee shall immediately abate such nuisance or disturbance. If Lessee fails to immediately eliminate or abate such nuisance or disturbance, Lessor may take any steps necessary to abate the nuisance or disturbance, including but not limited to entering the Premises and abating the nuisance or disturbance at Lessee's expense.

3. Term.

A. Jerm: All Space Other Than Fuel Facility. The term of this Lease for the Leased Premises, with the exception of the Fuel Facility portion, shall be for a period of forty (40) years commencing on October 1, 2009 ("Commencement Date") and ending on September 31, 2049 ("Termination Date"), Wlless extended or sooner terminated in the manner and under the conditions herein provided (the "Original Term").

With respect to this portion of the Leased Premises, Lessor hereby grants to Lessee an option to extend this Lease for a period often (10) years from and after the Termination Date at a rental to be determined as hereafter provided. Lessor reserves the right to review, change, and modify the terms and conditions set forth herein before any extension of this Lease becomes effective. Said option shall be exercised by Lessee by delivering to Lessor notice in writing of Lessee's intent to exercise such option which shall be delivered not less than 180 days before the expiration of the Original Term provided above.

B. Tenn: Fuel Facility. The term of this Lease for the Fuel Facility portion of the Leased Premises shall be for a period of five years (5) years commencing on October I, 2009 ("Commencement Date") and ending on September 31, 2014 ("Termination Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009

Date"), unless extended or sooner terminated in the manner and under the conditions herein provided (the "Fuel Facility Original Term'~.

With respect to this portion of the Leased Premises, Lessor hereby grants to Lessee two options to eKtend this Lease for a period of five (S) years each from and after the expiration date of the then preceding term at a rental to be detennined as hereafter provided. Lessor reserves the right to review, change, and modify the tenns and conditions set forth herein before any extension of this Lease becomes effective. Said options shall be exercised by Lessee by delivering to Lessor notice in writing of Lessee's intent to exercise such option which shall be delivered not less than 180 days before the expiration of the preceding term.

When the Fuel Facility bas been mutually determined to be no longer fit for the use intended or when Lessee elects at the end of the Fuel Facility Original Tenn or any applicable extension period to have the fuel tanks end associated equipment removed pursuant to section 6 D of this Lease, Lessor agrees to provide comparable and adequate space for the construction of a new fuel facility in the general area of the existing leasehold. Lessee shall be allowed to continue to make use of the existing Fuel Facility until the new fil.cility is operational. Once the new facility is in operation, Lessee shall swrender the old facility to Lessor and the new facility shall thereafter become part of the Leased Premises. Lessor's obligations under section 6 D of this Lease with respect to the old facility shall not become operative until after the old facility has been surrendered by Lessee.

4. Regt; fuel Flowage Fees ; Utilities.

A. In General. During the Original Tenn and the Fuel Facility Original Tenn and any extended terms thereof, rent shall be paid subject to the terms of this section.

B. Security Deposit There shall be no security deposit required under this Lease; however. at the expiration of this Lease, or any earlier tennination thereof, Lessee shall return the Leased Premises to the Lessor in comparable or better condition and repair as it existed as of the Commencement Date, nonnal wear and tear, damage from casualty, condemnation, and any City maintenance and repair obligations excepted.

C. Base Rent: All Space Other than Fuel Facility. Rent for the Leased Premises other than the Fuel Facility shall be payable at the option of the Lessee in either annual or equal monthly installments initially at the rate of four thousand dollars ($4,000) per month or forty eight thousand dollars ($48,000) per annum.

D. Base Rent: Fuel Facility. Rent for the Fuel Facility portion of the Leased Premises shall be payable at the option of the Lessee in either annual or equal monthly installments initially at the rate of one thousand dollars ($1.000) per month or twelve thousand dollars ($12,000) per annum. In the event that Lessee elects to pay said rent annually, said payment shall be due and payable on the annual anniversary date of the Commencement Date.

Salinas Municipal Airport
Jet Wert FBO Lease
August 27, 2009

E. Due Date. In the event that Lessee elects to pay rent on a monthly basis, said rent shall be due and payable on the first day of each calendar month. Checks should be made payable to the City of Salinas and be delivered to the City of Salinas at 200 Lincoln Avenue, Salinas, California 93901> Office of the Finance Director, ATIN: Airport Fund.

F. AdjUS1ment of Rent After the two and one half (2 Yi) year anniversary of the Commencement Date (the "Adjustment Date"}, and upon every two and one half (2 Yl) year anniversary thereafter of the Commencement Date, all rent due under this Lease, whether for the Fuel Facility or for all other space and whether the same shall be paid annually or in equal monthly installments, shall be increased at a rate equal to the percent change in the Consumer Price Index for "All Urban Consumers" for San Francisco/Oakland/San Jose, California during such two and one half (2 ~)year period (the "Adjusted Renf ').

Regardless of the index publication dates, the rental adjustments herein shall only occur on the applicable Adjustment Date. Until the rent adjustment can be actually calculated in accordance with this Lease, Lessee shall continue to make payments at the existing rental rate. When the adjustment is calculated, the balance of rents due at the adjusted rate, from tlle applicable Adjustment Date through the date of calculation, shall be paid to Lessor within thirty (30) days of written notice by the Lessor. In no event shall the Adjusted Rent due under this Lease as established by the Consumer Price Index, be less than the rent in existence immediately prior to the Adjustment Date.

Delay by the parties in computing or collecting the adjusted rent or the acceptance by the Lessor of the incorrect amount of adjusted minimum rent shall not relieve Lessee of its obligations to pay such adjusted rent to the Lessor. Lessee waives any applicable statute of limitations and defenses such as waiver or estoppels which could defeat the City's right to collect the adjusted rent.

0. Fuel and Oil Flowage Fees. Lessee shall pay, or shall arrange with Lessee's fuel and oil supplier(s) for such supplier(s) to pay, to Lessor a gallonage fee of eight cents ($0.08) per gallon of fuel and eight cents ($0.08) per gallon of oil brought or delivered onto the Airport by, for, or on behalf of Lessee. The gallonage fee may be adjusted by Lessor's City Council, from time to time, as is commercially reasonable. The gallonage fee shall be payable to Lessor on a monthly basis on the fifteenth day of each calendar month (calculated on the basis of fuel and oil delivered during the preceding calendar month). If Lessee's supplier(s) fail(s) to make payment on the fifteenth day of each calendar month, then upon written notice of such non-payment by Lessor to Lessee, Lessee shall within ten (10) days of the date of such notice pay the flowage fees owed.

Lessor may require that Lessee or Lessee's supplier(s), when making payment of amounts due Lessor hereunder, accompany the payment with complete and accurate delivery invoices showing the date and number of gallons delivered onto the Airport.

Regardless of whether payment is ma.de by Lessee's supplier(s), Lessee shall also keep true and accurate records and accounts of all of its deliveries of fuel and oil onto said Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009

Allport. Lessor's Airport Manager, or other duly authorized agent of Lessor, shall have the right to inspect Lessee's delivery and payment records, but before engaging in any audit or inspection of Lessee's records, the Airport Manager or other agent shall first exhaust all reasonable efforts to obtain the requested information from Lessee's supplier(s), as applicable. Lessee shall bear the cost of any audit or metering which establishes that Lessee has underpaid the gallonage fee by ten percent (10%) or more.

False reporting of fuel sales and inaccurate record keeping may be grounds by Lessor to terminate the Lease.

H. Delinquent Rent or Fuel Flowage Payments. If Lessee fails to pay the rent or after notice of non-paYII1ent by Lessee's supplier(s) the fuel flowage fees when due, Lessee will pay, in addition to the unpaid rents or unpaid fuel flowage fees, ten percent (10%) of the delinquent rent per month or ten percent (10%) of the delinquent fuel tlowage fee measured from the date when due and payable under the terms of this Lease until the same shall be paid In the event that Lessee elect& to rent in annual installments, rent shall be considered delinquent if not paid within fifteen (15) days following the annual anniversary date of the Commencement Date of this Lease. In the event that Lessee elects to pay rent in monthly installments, rent shall be considered delinquent if not paid by the tenth day of each month. With respect to fuel flowage fees, such fees shall be considered delinquent if not paid by the twenty fifth day of each month.

I. Hold-Over Rent. In the event the Lessee fails to surrender the Leased Premises upon the Termination Date, such continued occupancy shall be on a month-to· month holdover basis as described in section 35 of this Lease. The foregoing shall not in any way limit any summary process rights available to the City pursuant to law.

J. Utilities. In addition to the monthly rent payment, Lessee shall pay for all water, gas, power, telephone, sewage, garbage, landscaping, janitorial and rubbish disposal, and all other services and utilities supplied to the Leased Premises (other than that portion located within the Terminal Building). The costs of bringing utilities of gas, electricity, sewage, drainage, telephone and water to the Leased Premises as may be necessary, shall be borne by Lessee. Lessee shall pay a proportionate share of costs for utilities/services on a monthly basis for the Airport Terminal Building, the costs of which cannot be easily distinguished between Lessor and Lessee, as follows:

1. Janitorial Service. Lessee shall pay a monthly fee of $66.85 for its share of the total cost of the janitorial cleaning of the lobby and restrooms of the Airport Terminal Building; and

2. Refuse. Lessee shall pay a monthly fee of$8.88 for refuse removal.

Lessor and Lessee shall renegotiate the proration of these and other utility costs, including sewer and water costs, if the u.Se of the Terminal Building by patrons, employees, subtenants of Lessee becomes greater than anticipated.

SaliDas Municipal Airport
Jet West FBO Lease
August 27, 2009

S. Leasehold Improvements.

A. No improvement, including landscaping, shall be erected or placed on the Leased Premises and no alterations shall be made in the improvements and facilities constructed on the Leased Premises without the prior written approval of Lessor, said approval not to be unreasonably withheld. One ( 1) complete copy of plans for all buildings and improvements and for subsequent changes therein or alterations thereof shall, within fifteen (1 S) days after approval thereof by Lessor, be signed by Lessee and deposited with Lessor.

B. Lessee shall construct and/or install all site improvements required by Lessor consistent with City development standards, including, but not limited to, drainage, utilities, parking, paving, landscaping, lighting, and fencing.

C. Lessee shall be allowed use of the existing public parking lot adjacent to the Leased Premises for the parking of automobiles in common with the public.

D. Lessee shall cause to be made, executed and delivered to Lessor, prior to the date of commencement of any work in or on the Leased Premises, corporate surety bonds approved as to fonn and as to surety by Lessor, with Lessee's contractor or contractors as principal, and Lessor as an additional obligee, each in the sum of one hundred percent (1000/o) of the amount of the contract for (a) the said required work in accordance with the approved plans and specifications, and (b) to provide that if Lessee or its contractor or contractors fail to pay for any materials, provisions or other supplies, used in or upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, that the surety will pay the same, in an amount not exceeding the swn specified in the bond, and also, in case suit is brought upon the bond, a reasonable attorney's fee as set by the court.

E. Before commencing any work of improvement, Lessee shall ensure that all of its employees and/or all employees of any contractors retained by Lessee, are covered by Workers Compensation Insurance covering full liability for compensation under the Workers Compensation Insurance and Safety Act, for any person injured while performing any work or labor incidental to the work in or on the Leased Premises. Such coverage shall be obtained by a carrier authorized to act under the laws of the State of California, reasonably acceptable to Lessor.

F. Lessee shall design any new improvements so as to meet all applicable guidelines and regulations of the Federal Aviation Administration (FAA), the California Department of Transportation (Division of Aeronautics), and the City of Salinas. Lessor makes no warranties as to the suitability of the location identified for the purpose intended, particularly with respect to height and setback requirements, and all other State and Federal regulations.

Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009

6. Renair and Maintenance of Leased Premises and Equipment.

A. Lessor shall, at its own cost and expense, repair and maintain the roof and exterior walls of the offices and other buildings within the Leased Premises in good working order and repair. Lessee agrees to maintain the Leased Premises and all improvements conducted therein, in good order and repair and to keep said premises in a neat, clean, and orderly condition. This includes, but is not limited to, the prevention of accumulation of any refuse or waste materials that might constitute a fire hazard or a public or private nuisance. Lessee shall, at all times during the full term of this Lease and any renewals and at its sole cost and expense, keep and maintain all interior and exterior of all buildings, structures, and other improvements it contracts on said premises in good order and repair, including all necessary janitorial services and the whole.of said premises from weeds and rubbish in a clean, sanitary, and neat condition.

B. Lessor or its authorized representative shall have the right during normal business hours, to inspect the Leased Premises, except for any parts thereof deemed by Lessee to contain valuable property and confidential matters unless accompanied by Lessee or an agent or representative thereof, to determine if the provisions of this Lease are being complied with. If in the opinion of Lessor
1 s Airport Manager the Leased
Premises are not being properly maintained, the Salinas Airport Manager may, after giving written notice to Lessee and after a reasonable time for the Lessee to cure such default, cause such repair and maintenance to be made. The cost of such repair or maintenance shall become a debt of the Lessee and shall be added to the rent due and payable under this Lease. If said Lessee does not pay such costs promptly, this Lease shall be deemed to be in default and Lessor shall be entitled to all legal remedies provided hereunder.

C. Lessee agrees to indemnify and save harmless Lessor against all actions, claims, and damages by reason of Lessee's failure to keep ~d maintain the Leased Premises, and any buildings. improvements, facilities or equipment located thereon, or by reason of its nonobservance or non-performance of any law, ordinance, regulation or order of competent governmental authority applicable thereto.

D. Throughout the term of this Lease, Lessee shall be solely responsible for the maintenance and repair of the Fuel Facility. When the Fuel Facility has been mutually determined to be no longer fit for the use intended or when Lessee so elects at the end of the Fuel Facility Original Term or any applicable extension period, Lessor agrees at its sole cost and expense to remove the fuel tanks and associated equipment from the Leased Premises. If, during the course of the fuel tank removal, contamination of underlying soil is found and is determined to have been caused by the fuel tanks, Lessor agrees at its sole cost and expense to pay for clean up and remediation of any contaminated soil.

7. Restoration of Lease d Premises in Termin al Buildin2. If during the tenn hereof any office space within the Tenninal Building or any part thereof shall be damaged or destroyed by fire or other casualty, Lessor may in its sole discretion and at its sole cost and expense, either (a) repair or restore said improvements, in accordance with the City's Zoning Code and building requirements in effect at that time, or (b) tear down and Salinas Municipal Allport
Jet West FBO Lease
August 27, 2009

remove the same from the Leased Premises and Lessee's rent shall thereafter be proportionately abated.

Nothing in this section or elsewhere in this Lease shall prevent Lessee from otherwise carrying, at its own expense, any insurance as it deems necessary to protect its interests herein.
8 . .film!. Lessee shall have the right to post such signs as are necessary and usual in the conduct of its business in and upon the Leased Premises. Location, size, shape, and copy of all signs exposed shall be in accordance with the Salinas City Code and approved by Lessor's Airport Manager and the Community Development Department and Engineering and Transportation Services Department prior to installation.

9. Title to Improvements.

A. Upon the expiration of the Original Term, or upon any sooner termination (pursuant to an actual default by Lessee of the terms and conditions of this Lease, thereby giving rise to the termination of the Lease, by means of negotiation or adjudication) of this Lease, all leasehold improvements shall, without compensation to Lessee, then automatically and without any act of Lessee or any third party become Lessor's property.

Lessee shall surrender the improvements to Lessor in reasonably good condition and repair, ordinary wear and tear and casualty excepted, free and clear of all liens and encumbrances, other than those, if any, permitted under this Lease or otherwise created or constructed by Lessor. Lessee shall execute, acknowledge, and deliver to Lessor any instnnnent requested by Lessor as necessary in Lessor's opinion to perfect Lessor's right, title, and interest in the improvements. Lessee shall redeliver possession of said Leased Premises to Lessor in substantially the same condition that existed immediately prior to Lessee's entry thereon, reasonable wear and tear, damage by the elements, earthquakes, acts of God, and any act of war excepted.

B. All improvements and fixtures made or attached to the Leased Premises shall be and become upon the termination of this Lease, or at the sooner termination of Lessee's tenancy, the property of Lessor and shall not be removed by Lessee unless Lessee is directed to do so by Lessor; provided, however, if Lessee is not in default in the payment of rent or in the perfonnance of its obligations under this Lease, it may remove from said premises, at its sole expense, such personal property, including machinery and ''trade fixtures," which are not an integral part of the premises, and which can be removed without damage to the premises, and provided the same may be removed prior to the expiration of this Lease or any extension thereof. In no event will furniture, fixtures, and equipment, or other personal property. be removed until all rental due Lessor has been paid in full. All machines, equipment, material, appliances, and fixtures now or hereafter installed or placed by Lessee on or in the Leased Premises or the improvements for the generation and distribution of air, water, heat, electricity, light, fuel or refiigeration, or for ventilating or air-conditioning purposes, or for sanitary or drainage purposes, or for the exclusion of vermin, or insects, or for the removal of dust. refuse, or garbage, and including all awnings, window shades, drapery rods and brackets, screens, Salinas Municipal Airport
Jet West FBO Lease
August 27. 2009

floor coverings, incinerators, carpeting and all other fixtures used in the operation of the Improvements, together with all additions to, substitutions for, changes in or replacements of, the whole or any or all of said articles of property, shall be deemed integral parts of the Leased Premises and the Improvements for purposes of this Lease.

C. If during the term hereof the improvements or any part thereof (other than any office space within the Terminal Building) shall be damaged or destroyed by fire or other casualty, Lessee may, at its cost and expense, either (a) 'repair or restore said improvements, in accordance with the City's Zoning and Building requirements in effect at that time, or (b) tear down and remove the same from said premises. If Lessee shall elect to repair or restore said improvements, the work thereon shall commence within one hundred eighty (180) days after the damage occurs and shall be completed with due diligence.

D. If Lessee shall e~ect not to repair or restore said improvements, Lessee shall, at its sole expense, within one hundred eighty (180) days after said damage occurs, tear down and remove all parts thereof remaining and the debris resulting from said fire or other casualty and otherwise cleanup said premises, including but not limited to filling all excavations and removing all foundations, debris, and other parts of said buildings remaining after same are removed, and peacefully surrender possession of said premises to Lessor in a clean and orderly condition. Failure by Lessee to do so sha11 constitute a breach of the covenants and conditions of thi~ Lease. After completion of the above work to the satisfaction of Lessor, Lessee may give written notice to terminate this Lease and shall then immediately comply with the requirements of this Lease.

E. Upon surrender of the improvements by Lessee to Lessor, Lessee shall have no responsibility pursuant to the terms of this section for the restoration of the improvements.

10. Eminent Domain.

A. If at any time during the term hereof the Leased Premises or any part thereof are taken by public authority by the laws of eminent domain, then and in every case the leasehold.estate and interest of Lessee in said premises, or any part thereof taken, shall forthwith cease and terminate, and all compeDSation awarded by reason of the taking of the leased land and improvements, except those installed by Lessee, thereon shall be payable to and be the sole property of Lessor. Notwithstanding the foregoing, Lessee shall have the right to make a claim for compensation for the other leasehold improvements, the value of Lessee's leasehold interest, relocation expenses, and business loss caused by such taking and as allowed by law.

B. If only a portion of the Leased Premises is so taken by the powers of eminent domain, Lessee may elect to terminate this Lease giVing one hundred twenty (120) days prior written notice of Lessee's intention to terminate.

Saliiw Municipal Airpon
Jet West FBO Lease
August 27, 2009

C. If such public taldng shall prevent Lessee's use and occupancy of the Leased Premises and Improvements, then Lessee shall have the option to terminate this Lease, which option to terminate shall be conditioned upon Lessee's removing or restoring said Leased Premises, at the sole option of Lessor, and paying to Lessor any rent accruing. hereunder to the date of termination, and all unpaid truces and assessments then accrwng upon said premises.

D. Any compensation which would otherwise be payable under this paragraph to Lessee shall be paid directly to any encumbrancer of the leasehold interest, to the extent of such encumbrance.

11. Termination by Lessor. Notwithstanding Lessor's right to termination this Lease as elsewhere provided herein, Lessor may temtlnate this Lease as follows:

A In the event Lessor should require the Leased Premises in connection with the future expansion and/or operation of the Airport, Lessor may, upon six (6) months written notice, term~nate this Lease, provided however, Lessor agrees to make all reasonable efforts to find a new location within the Airport acceptable to Lessee for the Leased Premises and the improvements.

B. Should Lessor alter its proposed plan of development of the Airport in a manner that would preclude Lessee from operating under the terms of this Lease and relocation of the Leased Premises is not feasible; or should any other government agency assume control of the Airport or any portion thereof in a manner that would preclude Lessee from operating under the tenns of this Lease; or should it occur that during the term of this Lease any governmental action, law or ordinance should come into effectt the tenns of which so restrict the use to which the Leased Premises can be put that Lessee is unable to use the Leased Premises in the manner contemplated herein (and no other suitable location is available for relocation), Lessor will, upon written request from Lessee, terminate this Lease or extend the tenn of this Lease for the period of time Lessee's operation is so precluded; and no rent shall accrue during said period.

C. If this Lease is cancelled under the provisions of this Section, commencing wi1hin thirty (30) days of Lessor's notice to terminate pursuant to this section, Lessor and Lessee shall attempt to agree upon the fair market value of Lessee's interest in the business located on the Leased Premises including, but not limited to, the fixtures and improvements installed or constructed by Lessee and located on the Leased Premises (the ''Fair Market Value").

If Lessor and Lessee are unable to agree upon the Fair Market Value within sixty (60) days thereafter, then each party shall designate, by written notice, to the other party within ten (10) days after expiration of said sixty (60) day period, a real estate appraiser who shall be a member of any nationally recognized professional real estate association that examines its designated members and who has at least five (5) year's full-time commercial appraisal experience in the area in which the Leased Premises are located, to Salinas Municipal Airport
Jet West FBO Lease
August 271 2009

appraise and to determine the Fair Market Value. If either party fails to designate an appraiser, the appraiser selected by the other party shall detennine the Fair Market Value.

If two appraisers are designated, the two shall promptly meet in an attempt to set the Fair Market Value. If the two are unable to agree within twenty (20) days after their designation, within ten (10) days after the expiration of the twenty (20) day period provided to them. they shall appoint a third appraiser who meets the qualifications stated above. Each party shall pay the fee of the appraiser.it designates an<;l one-half the cost of the third appraiser.

Within twenty (20) days after the selection of the third appraiser, a majority of the appraisers shall set the Fair Market Value. If a majority of the appraisers are unable to agree, then the average of the three appraisals shall be the Faj.r Market Value; provided, however, if the low appraisal is more than five percent (5%) lower than the middle appraisal, then the low appraisal shall be disregarded in averaging the appraisals. After the Fair Market Value has been set, the appraisers shall immediately notify the parties in writing.

In detennining the Fair Market Value, the scope and extent of the appraisal shall be detennined at the time Lessor provides written notice pursuant to this section or at the time the appraisers are attempting to establish the Fair Market Value, whichever is applicable. At a minimum, the appraisals shall evaluate the monthly amount which the Leased Premises could be expected to return to Lessor if offered for lease on the open market under normal circumstances, given due consideration to other properties located in the immediate geographic vicinity ofthe ·Leased Premises and similar relevant matters.

Improvements and fixtures placed upon the Leased Premises by Lessee since the Commencement Date of this Lease shall be considered in arriving at the Fair Market Value.

12. Termination by LeHee. ln the event Lessor ceases or substantially restricts the use of the Airport as an Airport for reasons beyond the control of Lessor, including without limitation, war, civil unrest, acts of terrorism, and acts of God, and Lessee can no longer fully used the Leased Premises for the purposes contemplated in this Lease, Lessee's rent and all other charges payable under this Lease shall immediately be proportionally abated and Lessee may upon three (3) months written notice terminate this Lease. Lessor shall have no liability for any damages to Lessee in the event of such change in Lessor's use of the Airport. If the Airport does not meet its obligatjons as a public airport pursuant to the sponsor's assurances given by Lessor to the United Stated Government under the Airport and Airway Improvement Act of 1982, as the same may be amended from time to ti.me, Lessee may upon three (3) months written notice terminate this Lease, without prejudice to Lessee's ability to pursue recovery of damages from Lessor or any other legal or equitable remedies.

13. Reservations.

Salin.as Municipal Airport
Jct West FBO Lease
August 27, 2009

A The Leased Premises are accepted AS-IS by Lessee subject to any and all existing easements and encumbrances. Lessor reserves the right to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water 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 and along any and all portions of the Leased Premises. No right reserved by Lessor in this clause shall be so exercised as to interfere unreasonably with Lessee's operations hereunder or to impair the security or any secured creditor of Lessee.

B. Lessor agrees that rights granted to third parties by reason of this clause shall contain provisions that the surface of the Leased Premises shall 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 Leased Premises by Lessee. the rental shall be reduced in proportion to the interference with Lessee's use of the Leased Premises.

C. Lessor reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or view of the Lessee and without interference or hindrance.

D. The Lessor reserves the right, but shall not be obligated to the 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 in this regard.

E. This Lease shall be subordinate to the provisions and requirements of any existing or future agreement between the Lessor and the United States, relative to the development, operation or maintenance of the Airport.

F. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from erecting> or permitting to erect, any building or other structures on the Airport which, in the opinion of Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft.

G. Lessor reserves and excepts from this Lease all that portion of the real property herein leased which is super adjacent to a plane sixty (60) feet above and parallel to the existing ground surface of said real property (which portion is hereby referred to as "Super adjacent Air Space,.).

H. Lessor further reserves and excepts from this Lease, and Lessee hereby grants to Lessor (insofar as the hereinafter described easements and rights in any manner or to any extent that affect the Leased Premises, any improvements which may be made thereon, and Lessee's leasehold or other interest therein and Lessee's use, occupancy or enjoyment thereof):

Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009

1. An avigation easement over and laterally adjacent to the Leased Premises and any improvements which may be made thereon, including but not limited to the easement and right to fly, or cause or permit flight by any person of, any aircraft of and all kinds now or hereafter know, in, through, across or about any portion of said super adjacent air space and any air space laterally adjacent thereto; and

2. The easement and right to cause or create, or permit to be caused or created, such noise, vibration, currents and other effects of air, illumination and fuel consumption which may arise or occur:
(a) from or during the use of said avigation easement and such flight as is described in subsection H.1; hereinabove, or
(b) from or during the use by such aircraft of any Salinas Municipal Airport facilities, including but not limited to the landing, storage, repair, maintenance, operation, warm-up and take-off of such aircraft, upon, within or about said Airport, and the approach and departure of aircraft to or from such Airport The easements and rights herein reserved and excepted by Lessor, and the easements and rights herein granted by Lessee to Lessor, shall be deemed both in gross and also appurtenant to each and every portion of the real property of the Salinas Municipal Airport (save and except the Leased Premises herein described).

14. Lease Subordinate to Agreements with the U.S.A. This Lease shall be 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 rnainte~ce of the Airport.

15. War or National Emergency. This Lease and all the provisions hereof sball be subject to whatever right the United States Oovenunent has affecting the control, operation, regulation and taking over of said Airport or the exclusive or non~exclusive use of the Airport by the United States during the time of war or national emergency.

16. Use to Conform to Federal Aviation Administration Regulations. Lessee agrees that Lessee's use of the Leased Premises, including any future construction, modification or alteration thereon, shall comply with applicable Federal Aviation Regulations now in force or those that may hereafter be adopted by Federal authority.

17. lJ.se to Conform to City of Salinas Regulations. Lessee agrees to comply at all times with all applicable provisions of the Salinas City Code including, but not limited to, Chapter 4, Airport, and Chapter 3 7, Zoning, of said Code. Lessee further agrees to comply with all the rules and regulations established by the Salinas City Council, the Salinas Airport Commission and the Salinas Airport Manager for the use of the Leased Premises and all other portions of the Salinas Municipal Airport.

Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009

18 Non-Discrimination. Lessee, for itself, its personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree to furnish all services on a fair, equal and non-discriminatory basis to all users; and charge fair, reasonable, and not unjustly discriminatory prices for each unit or service, provided that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers.

19. Equal Opportunity Plan. Lessee assures that it will undertake an equal opportunity program as may be required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. Lessee assures that no person shall be excluded on those grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. Lessee assures that it will require that its covered sub organizations provide assurance to Lessee that they similarly will undertake equal opportunity programs and that they will require assurances from their sub organizations, as may be required by 14 CFR Part 152, Subpart E, to the same effort.

20. Non-Exclusive Right. Nothing herein contained shall be construed to grant or authorize the granting of an exclusive right for the use of any landing areas or air navigation facility at the Airport .

21. Lessee Agreements.

A. Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations and Ordinance No. 1719 of the City of Salinas, dated November 21, 1977, in the event future construction of a building is planned for the Leased Premises, or in the event of any planned modification or alteration of any present or future building or structure on the Leased Premises.

B. Lessee expressly agrees for itself, its successors and assigns that it will not erect or peanit the erection of any structure or object, nor permit the growth of any tree on the Leased Premises to penetrate the transitional surfaces, as defined in Federal Aviation Regulations and Ordinance No. 1719 of the City of Salinas. In the event the aforesaid covenants are breached, Lessor reserves the right to enter upon the Leased Premises and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of the Lessee.

C. By accepting this Lease Lessee agrees for itself, its successors and assigns that it will not make use of the Leased Premises in any manner which might interfere with the landing and taking off of aircraft from Salinas Municipal Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, Lessor reserves the right to enter upon the Leased Premises and cause the abatement of such interference at the expense of Lessee.

Salinas Municipal Airport
Iet West FBO Lease
August 27, 2009

22. Use of Public Airport Facilities. Lessee is granted the non·exclusive use of all public Airport facilities, including but not limited to taxiways, runways, aprons, navigational aids, and facilities relating thereto, for pmposes of landings, take.offs, and taxiing of Lessee's aircraft. All such use shall be in accordance with the laws of the United States of America, the State of California, and the rules and regulations promulgated by their authority with reference to aviation and air navigation, and in accordance with all reasonable and applicable rules, regulations and ordinances of Lessor now in force or hereafter prescribed or promulgated by ordinance or by law.

23. Taxes and Assessments. Lessee shall pay all taxes (including possessory interest tax) and assessments that may be levied upon the Leased Premises, any and all buildings and improvements and other property situated therein, and any interest of Lessee therein, for the full term of this Lease.

24. Insurance.

A. Lessee shall, throughout the duration of this Lease, maintain comprehensive general liability and property damage insurance, or commercial general liability insurance, covering all operations .of Lessee, its agen~ and employees, performed in connection with this Lease including but not limited to premises and automobile.

B. Lessee shall maintain the following limits:

General Liability
Combined Single Limit Per Occurrence ..................... ... ......... ........... $1 million General Aggregate ... .................................................................... $2 million (I'he policy shall cover on an occurrence or an accident basis, and not on a claims made basis.)
Automobile Liability
Combined Single Limit Per Occurrence ........................... , ...... $1 million (l'he policy shall cover on an occurrence or an accident basis, and not on a claims made basis.)
Worker's Compensation ........ .......................................... Statutory Limits Employer's Liability Insurance: ........... .......... ............................... $1 million per employee and per accident for bodily injury or disease.

All Risk Property Insurance (Covering all real and personal property of the City and occupied or used by the Lessee, and all real and personal property of the Lessee utiltzed or stored at the Leased Premises, all at fall value.

Property insurance against all risk of loss to any tenant improvements or betterments, including flood, as determined by the City 's Risk and Benefits Analyst.)
Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009

Facility Replacement Coverage (Covering the Leased Premises and equipment and structures located therein and all furnishings or equipment owned by the City and also located thereon, in no event less than the full replacement value. against the perils of fire and extended coverage, including demolition.)
F1're Insurance
Fire Legal Liability ... ...... ... ... ... ..... . ... ..... .... ...... ...... ... .... .... .... ... ..... $100,000 Fire insurance with extended coverage and debris cleanup provisions, in an amount equal to ninety percent (900/6) of actual cash value of all improvements installed by Lessee in or on the Leased Premises.

Additional Insurance Coverages ... ......... ............... ....... .. As Required by the Lessor
C. All insurance companies affording coverage to the Lessee shall be required to add the City of Salinas as an "additional insured " under the insW'ance policy and provide a copy of the insured additional endorsement.

D. All insurance companies affording coverage to the Lessee shall be insurance organizations authorized by the Insurance Commissioner of the State Department of Insurance to transact the business of insurance in the State of California and having an AM Best Rating of no less than A' B.

E. All insurance companies affording coverage shall provide thirty (30) days written notice to the City of Salinas should the policy be cancelled or reduced in coverage before the expiration date. For the purposes of this notice requirement, any material change prior to expiration shall be considered cancellation.

F. Lessee sh.all provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance or a binder, in a fonn meeting the reasonable satisfaction of Lessor's Risk and Benefits Analyst, concurrently with the submittal of this Lease. A statement on the insurance certificate which states that the insurance company "will endeavor' to notify the certificate holder, "but failure to maiJ such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives" does not satisfy the requirements of subsection (e) herein.

Lessee shall ensure that the above quoted language is stricken from the certificate by the authorized representative of the insurance company.

G. Lessee shall provide a substitute certificate of insurance no later than ten (10) days prior to the policy expiration date. Failure by Lessee to provide such a substitution and extend the policy expiration date shall be considered a material default by Lessee. In the event Lessee is unable to provide a substitute certificate of insurance within the time prescribed in this subsection, Lessee shall provide written confirmation of renewa4 in a form satisfactory to the City's Risk and Benefits Analyst, to act as proof of insurance only until such time as a certificate of such insurance has been received by Lessor.

Salinas Municipal Airport Pago 17 of30
Jet West FBO Lease
August 27, 2009
H. Maintenance of insurance by Lessee as specified in the Lease shall in no way be interpreted as relieving Lessee of any responsibility whatsoever and Lessee may carry, at its own expense, such additional insurance as it deems necessary.

I. In addition to requiring statutory Workers' Compensation insurance pursuant to Section 5 .I herein, Lessee shall also require all contractors and subcontractors who perfonn work on the Leased Premises to maintain general liability insurance in an amount of no less than $1 million combined single limit per occurrence which complies with all of the provisions of subsections (C) through (G) above. Lessee shall provide City with copies of such insurance certificates upon request.

J. Any specialized use exposing the Lessor to an abnormally high risk (determined by Lessor and/or the Risk and Benefits Analyst) will require coverage equal to the amount of the additional exposure.

K. Any use of City-owned property is prohibited until such time as the prospective Lessee has submitted an approved certificate of insurance. If the Lessee fails at any time to maintain the required insurance, action shall be taken to terminate said tenancy.

L. Lessees who sublease, thereby incurring additional risk, shall be required to provide insurance covering the sublease or subtenancy or shall be required to provide proof that said sub lessee or subtenant has and maintains sufficient insurance covering the sublease or subtenancy.

M. Periodic Review oflnsurance· Coverage. All insurance coverage and limits required under this section shall be subject to periodic review on every fifth anniversary of the Commencement Date at which time the City may require additional or different coverage types and limits as set forth herein in order to meet changed circumstances or con~tions that exist at the time of such periodic review.

N. Waiver of Subrogation . Lessee, to the extent and limits of insurance coverage applicable under any policy of insurance procured as required under this Lease, releases the Lessor, its officers, employees, and agents from any claims for damage to any person or to the Leased Premises, or any part thereof including the buildiiigs, fixtures, personal property, and other improvements or alterations located thereon, of either the Lessor or the Association, including loss of income, that are caused by or result from risks insured against under any iDSW'ance policies required by this Lease Agreement and in force at the time of any such damage.

Lessee shall cause each such insurance policy obtained by it to provide that the insurance company waives all rights of recovery by way of subrogation against the .

Lessor in connection with any damage covered by such policy. Lessor shall not be.liable to Lessee or to any other party for any damage caused by tire or any other risk insured against under any property insurance policy carried under the terms of this Lease, to the Salinas Municipal Airport Page 18 of 30
Jet West FBO Lease
Aogust27, 2009
extent and limits of coverage applicable under any policy of insurance procured as required under this Lease.
2S. Common Airport Areas. Lessee shall have the privilege of using, in common with others to whom such privileges may also be given by Lessor, such airplane runways as are provided in the Salinas Municipal Airport for the take-off and landing of airplanes.

Lessee shall also be entitled, in common with others to whom such privileges may also be given by Lessor, to such of the following services as may be provided by said Airport, to facilitate the take-off and landing of aircraft at and the flying of aircraft within and about said Airport, to wit: landing light, floodlights, signals and other such facilities. Such privileges however, shall be subject to all rules and regulations now in effect or hereafter established by the City of Salinas governing or controlling such privileges, uses or operations, and shall be subject to the payment of all such fees or charges as the City of Salinas may now or hereafter impose for such privileges, uses and operations.

26. Liens a.nd Claims.

A. Lessee shall not suffer or permit to be enforced against Lessor's title to the Leased Premises, or any thereof, any lien, claim or demand arising from any work of construction, repair, restoration, maintenance or removal as herein provided, or otherwise arising (except liens, claims or demands permitted by, suffered by or arising from the actions of Lessor).

B. Lessee shall pay all such liens, claims and demands before any action is brought to enforce the same against the Leased Premises; and Lessee agrees to hold Lessor and said land free and harmless from all liability for any and all such liens, claims or demands, together with all costs and expenses in connection therewith. except for liens permitted by Lessor.

C. Should Lessee fail or refuse to pay any lien, claim or demand arising out of the construction, repair, restoration, maintenance and use of the Leased Premises and the buildings and improvements hereon, or any other claim charge or demand which Lessee has agreed to pay under the covenants of this Lease, Lessee or its authorized encumbrances, if any, shall. within thirty (30) days provide written notice from Lessor to Lessee or its said encumbrancer, pay and discharge the same or shall furnish to City, in a form satisfactory to City, sufficient security to hold Lessor and said land free from all liability for such lien, claim or demand and all costs and expenses in connection therewith. Should Lessee or its said encumbrancer, within said thirty (30) days period. not pay discharge said lien, claim or demand or not provide said security to Lessor, then Lessor may at its own option, either treat such failure or refusal as a breach of or default under this lease, or may pay any such lien, claim or demand, or settle or discharge any action therefore or judgment thereon, and all costs, expenses and other sums incurred or paid by Lessor in connection therewith shall be repaid to Lessor by Lessee upon written demand, together with interest thereon at the rate often percent (10%) per annwn from the date of payment until repaid, and any default in such repayment shall constitute a breach of the covenants and conditions of this Lease.

Salinas Municipal Airport
Jet West FBO Lease
August27,2009

27. Right to Assign or Transfer.

A. Lessee agrees to not encumber, assign or otherwise transfer this Lease, or any right or interest herein, without the prior written consent of Lessor, and no such encumbrance, assignment or transfer, whether voluntary or involuntary, by operation of law, under legal process or proceedings, or otherwise, shall be valid or effective without such prior written consent. The Lessor shall not unreasonably withhold its consent to the encumbrance, assignment or transfer of the Lease, or the Lessee's right or interest to any of the improvements. Upon the granting of consent of the transfer by Lessor, Lessor and Lessee shall enter into an "Assignment of Lease by Lessee" in a form to be mutually agreed upon by the parties.

B. If Lessee hereunder is a corporation or an unincorporated association or a partnership, the transfer, assignment or hypothecation of any stock or interest in said corporatio~ association or partnership, in the aggregate in excess of twenty-five percent (25%) shall be deemed an assignment within the meaning of this lease. The following transfers are excepted from the provisions of this paragraph:

1. Transfer or assignment of stock or interest to a shareholder or member of the same corporation, association, or partnership.

2. Transfer or assignment of stock or interest to a spouse, child, or grandchild of a shareholder or member.

3. Transfer or assignment of stock to a lender pursuant to a lender who has obtained a pennitted encumbrance ofLessee's ·int.erest in this Lease.

C. Should Lessee attempt to make or suffer to be made any such encwnbrance, assignment, or transfer, except as aforesaid, or should any right or interest of Lessee hereunder or in or to the improvements be transferred or sold by or under colll"t order or legal process, or otherwise, then any of the foregoing events shall be deemed a breach of this Lease and thereupon Lessor may, at its option, terminate this Lease forthwith by written notice thereof to Lessee, or exercise other rights provided by law or in this Lease to be exercisable by Lessor in the event of any default or breach under this Lease. Should Lessor consent to any such encumbrance, assignment, or transfer., such consent shall not constitute a waiver of any of the restrictions of this clause and the same shall apply to each and every encumbrance, assignment, or transfer hereunder and shall be severally binding upon each and every encumbrancer, assignee, transferee, and other successor in interest of Lessee.

D. Lessor agrees that it will not unreasonably withhold its consent to any assignment, or transfer requiring its prior approval hereunder, but Lessor may withhold such consent:

Salinas Municipal Airport
Jet West FBO Lease
August 27, 2009
Page20 of30

1. If the proposed assignee shall not covenant in writing to keep, perform and be bound by each and all the covenants and conditions of this Lease herein provided to be kept and performed by Lessee and to assume any previously accrued obligations hereunder.

2. If this Lease is in default at such time in any res~t.

3. If the construction, or demolishment of the improvements on the Leased Premises is in progress, or if said construction or demolisbment 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.

E. Any document that purports to assign. transfer, or encumber the Leased Premises or any part thereof, shall incorporate directly or by reference all provisions of this Lease unless otherwise amended in writing.

F. Lessee shall be permitted to sublet the portion of the Leased Premises only to third parties deemed acceptable by Lessor in writing. Failure to inform Lessor's Airport Manager of such subletting shall constitute a material breach of this Lease.

28. Default.

A. In the event Lessee shall default in the performance of any condition or covenant in this Lease (except the payment of rent), Lessor may, at its option, take such action as provided in paragraph C hereof, but only if Lessee fails to rectify said default within thirty (30) days after written notice thereof is served upon Lessee by Lessor. In the event, however., that the default is of such nature that the same cannot be rectified in such thirty (30) day period, then such default shall be deemed to be rectified if Lessee shall have commenced the compliance of the provisions hereof breached by it within said thirty (30) day period and shall with all diligence prosecute work or perform the particular provisions until the same shall have been fully rectified or performed.

B. In the event Lessee should fail to pay any instalhnent of rent or pay any other sum due provided in this Lease to be paid by Lessee at the time or times herein specified, Lessor may, at its option, take such action as provided in paragraph C hereof, but only if said default is not rectified within ten (10) days after written notice thereof is served on Lessee by Lessor.
c. In the event Lessee shall fail to pay rent or any other swn provided in this Lease, or in the event of any other breach of this Lease by Lessee, then Lessor, in addition to and without prejudice to any other right or remedy of Lessor hereunder, shall have immediate right of re-entry and may remove all persons and personal property from the Leased Premises, and such personal property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Lessee. Should Lessor elect Salinas Mtm.icipal Airport
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to re-enter, as herein provided, or should Lessor take possession pursuant to legal proceedings or pursuant to any notice provided by law, Lessor may either terminate this Lease or may from time to time, without terminating this Lease, relet premises or any part thereof for such term or terms (extending. at Lessor's option. beyond the term of this lease) and at such rental or rentals and upon such other terms and conditions as Lessor in its sole discretion may deem advisable with the right to make alterations and repairs to the Leased Premises. Upon such reletting:

1. Lessee shall be immediately liable to pay to Lessor, in addition to any indebtedness other than rent hereunder, the cost and expenses of such reletting and of any such alterations and repair, incurred by Lessor, and the amount, if any, by which the rent reserved in this Lease for the period of such reletting (up to but not beyond the term of this Lease) exceed the amount agreed to be paid as rent for the Leased Premises for such period of such reletting; or

2. At the option of Lessor, rents received by Lessor from such re letting shall be applied: first, to the payment of any indebtedness hereunder of Lessee to Lessor, other than rent due; second, to the payment of any costs and expenses of such reletting and of any such alterations and repairs; third, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be paid by Lessor and applied in payment of future rent as the same may become due and payable hereunder.

3. If Lessee has been credited with any rent to be received by such reletting under Option (1 ), and such rent shall not be promptly paid to Lessor by the new tenant, or if such rentals received from such reletting under Option (2) during any month be less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to Lessor. Such deficiency shall be calculated and paid monthly. No such re-entry or taking posse ssion of the Leased Premi ses by Lessor shall be construed as an election· by Lessor to tenninate this Lease unless a written notice of such intention be given to Lessee or unless the tennination thereof be decreed by a court of competent jurisdiction. Notwithstanding any such reletting without termination, Lessor may at any time thereafter elect to tenninate this Lease for any breach, in adclition to any other remedy available to Lessor hereunder, Lessor may recover from Lessee all damages which Lessor may incur by reason of such breach, including any cost of recovering the Leased Premises, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of stated. term, all of which amount shall be immediately due and payable from Lessee to Lessor.

29. Indemnification and Hold Hannlw. This Lease is made upon the express condition that Lessor, its officers and employees are to be free from liability and claim for damages by reason of any injury to any person or persons, including Lessee. or property. of any kind whatsoever or to whomsoever belonging, including Lessee's, from any cause or causes whatsoever while in or upon or in any way connected with the Leased Premises or Lessee's use thereof, or from the failure of Lessee to keep the Leased Premises and all improvements and other property therein in good, safe and sanitary Salinas Municipal Airport . Page 22 of30
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condition, or otherwise connected with Lessee's use of the Leased Premises or of other parts of the Salinas Municipal Airport during the term of this Lease. Lessee hereby covenant and agrees to defend, indemnify and save harmless Lessor, its officers and employees from all liability, loss, cost and obligations on account of or arising out of or resulting from any such injuries or losses however occtnring except to the extent caused by the willful or negligent acts of Lessor, or of officers or employees of Lessor acting within the course and scope of their employment by Lessor.

30. Abandonment, Etc,. Except as may be herein in this Lease otherwise expressly provided, Lessee shall not vacate or abandon the Leased Premises at any time during the tenn of this Lease; and if Lessee shall abandon, vacate or surrender said premises or be dispossessed by process of law or otherwise, any property belonging to Lessee and left on the Leased Premises shall be deemed, at the option of Lessor, to be abandoned.

31. Co-ordinates. Co-ordinates used in the description in this lease are based upon the "Horizontal Control Net California Plan Co-ordinates, Zone 4," for the City of Salinas, on file in the office of the City Engineer of the City of Salinas.

32. Bankruptcy. Etc .. Either (a) the appointment of a receiver to take possession of all or substantially all of the assets of Lessee, or (b) a general assignment by Lessee for the benefit of creditors, or ( c) any action taken or suffered by Lessee under any insolvency or bankruptcy act, shall constitute a breach of this Lease by Lessee. Notwithstanding the above provisions, the filing of any invohmtary petition in bankruptcy against Lessee shall not constitute a breach of this Lease, unless and until there is an adjudication in such involuntary bankruptcy proceedings that Lessee is bankrupt, which adjuctication shall constitute a breach of this Lease.

33. Waivers. The waiver by Lessor of any breach of any term, covenant or condition contained in this lease shall not be deemed to be a waiver of such term, covenant or condition in any subsequent breach of the same or any other term, covenant or condition; and the consent or approval by Lessor to or of any act by Lessee requiring Lessor's consent or approval shall not be deemed to waive or render unnecessary Lessor's consent or approval to or of any subsequent similar acts by Lessee, and the subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant or condition other than the failure of Lessee to pay the particular rent so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent.

34. Litigation Involving Lease. In the event Lessor is made a party to any litigation concerning this Lease or the Leased Premises of any act or omission by Lessee, Lessee shall hold Lessor harmless from all Joss or liability, including reasonable attorney's fees incurred by Lessor in such litigation. Further, Lessee shall at its own expense, upon written request by Lessor, defend any such suit or action brought against Lessor, its officers, agents and employees. lhls section specifically includes any liability arising out of or in connection with separate agreements that Lessor may execute with third parties for services, volunteer or otherwise, relating to or in support of airport activities. In case Salinas Municipal Airport Page 23 of 30
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suit shall be brought to interpret or to enforce this Lease, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shal~ be entitled to recover their reasonable attorneys' fees in addition to such costs as may be allowed by the court.

35. Holding Over. Any holding over after the expiration of this Lease with the consent of Lessor shall be construed to be a tenancy from month to month at a monthly rental equal to one twelfth of the rental for the year immediately preceding the expiration of said term, and shall otherwise be on the terms and conditions herein in this Lease specified so far a applicable, except that there shall be no right to extend the term of this Lease.

36. Lessee's Assumption and Waiver . This Lease is made upon the express condition, and (in consideration of Lessor's lea.sing the Leased Premises as herein provided) Lessee covenants, that Lessee hereby voluntarily assumes all risk of loss, damage or injury to the person or property of Lessee (including the leasehold interest of Lessee herein), and of its agents or employees, and of any other person in or about the Leased Premises, which during the term of this Lease may be caused by or arise or occur in any manner from:

A. Flight of any aircraft of any and all kinds now or hereafter known in, through, across, around or about any portion of the airspace over the Leased Premises; or B. Noise, vibration, cWTents and other effects of air, illumination and fuel consumption, or fear thereof, arising or occUITing from or during such flight, or from or during the use by such aircraft of Salinas Municipal Airport facilities, including but not limited to landing, storage, repair, maintenance, operation, warm-up and take-off of such aircraft, and the approach and departure of aircraft to or from said Airport.

Lessee hereby waives and releases Lessor, its officers,. employees, agents and contractors, from any and all claims or causes of action which it may now or hereafter have against Lessor, its officers, employees, agents or contractors, for any loss, damage or injury as outlined in subsections A and B of this paragraph.

37. Construction of Lease. Whenever the singular number is used in this Lease and when required by the context, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders .. If there be more than one Lessee designated in or signatory to this lease, the obligations hereunder imposed upon Lessee shall be joint and several; and the tenn "Lessee" as used herein shall refer to each and every of said signatory parties severally as well as jointly. Each tenµ and provision of this Lease performable by Lessee shall be construed to be both a covenant and a conditi9n.

This instrument contains all of the agreements and conditions entex:ed into and made by and between the parties hereto and may not be modified orally or in any manner other than by an agreement in writing signed by all parties hereto or their respective successors in interest.

38. '.I!!!!!· Time is and shall be of the essence of each term and provision of this Lease.

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39. Material Breach. Each and every material term, condition, covenant and provision of this Lease is and shall be deemed to be a material part of the consideration for Lessor's entry into this Lease, and any breach hereof by Lessee shall be deemed to be a material breach.

40. Notices. Except as is otherwise herein provided, all notices, statements, demands, requests~ consents, approvals, authoriz.ations, offers, agreements, appointments or designations hereunder by either party shall be in writing and shall be sufficiently given and served upon the other party if sent by mail, postage prepaid and addressed as follows:

If to Lessor, the same shall be addressed to:

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

City Attorney
City of Salinas
200 Lincoln A venue
Salinas, California 93901
or to such other place as Lessor may by such similar notice in writing designate.

If to Lessee, the same shalJ be addressed to:

JetWestLLC
9400 Mcintosh Drive
Monterey, California 93940
or to such other place as Lessee may by such similar notice in writing designate.

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

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.

41. Heirs, Soccesson. and Assigns. All of the covenants, agreements, conditions and undertakings herein contained shall, subject to the provisions as to assignments, apply to and bind the representatives, heirs, executors, administrators, successors and/or assigns of Salinas Municipal Airport Page 25 of 30
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all the parties hereto; and all the parties hereto shall be jointly and severally liable hereunder.

42. Captions. The various headin~ and numbers herein and the grouping of the provisions of this Lease into separate sections and paragraphs are for the purpose of convenience only and shall not be considered part hereof.

43. J!artial lnvglidlty . If any term, covenant, condition or provision of this Lease is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

44. Hazardous Substpnm.

A. Pursuant to Health and Safety Code Section 25359.7, Lessor hereby represents and warrants that Lessor docs not know, and has no reasonable cause to believe, that any release of Hazardous Materials (as hereafter defined) has come to be located on or beneath the Leased Premises. Lessor shall notify Lessee in writing within a reasonable time of any material release of Hazardous Materials and of any Hazardous Materials that have come to be located beneath the Salinas Municipal Airport. Lessor acknowledges that the presence of such Hazardous Materials might adversely affect water supply from the Improvements or require Lessee to install additional water treatment equipment. If Lessee cannot treat any water contaminated by suc.h Hazardous Materials to the levels required by applicable law, Lessee shall have the right to terminate this Lease on sixty (60) days notice.to Lessor.

B. Lessee shall comply with all statutes, laws, ordinances, rules, regulations, and precautions now or hereafter mandated or advised by any federal, state, local or other govern.mental agency (collectively, "Environmental Laws'') with respect to the use, generation, storage, or disposal of hazardous, toxic, or radioactive materials (collectively, ''Hazardous Materials"). As herein used, Hazardous Materials shall include, but not be limited to, those materials identified in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30, as amended from time to time, and those substances defined as "hazardous substances," "hazardous materials, ''hazardous wastes," "chemicals known to cause cancer or reproductive toxicity," "radioactive materials,,, or other similar designations in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C.

Section 6901 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101etseq.,33 U.S.C. Section 1251 et seq., 42 U.S.C. Section 300(£) et seq., 42 U.S.C. 7401 et seq., California Health and Safety Code Section 25250 et seq., California Water Code Section 13000 et seq., California Health and Safety Code Section 39000 et seq. and any other Environmental Laws now or hereafter in effect Lessee shall not cause, or allow anyone else to cause, any Hazardous Materials to be used, generated., stored, or disposed of on or about the Leased Premises, other than reasonable quantities of chemicals required from time to time for the treatment of water to be supplied from the Premises to Salinas Municipal Airport
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